study on scm

Cement

This document has been prepared by Ruchira Mehta and Ajay D'souza (Head of Research). For any queriesplease get in touch with our client servicing desk. ([email protected]. Ph -022-66913561)

Annual Review July 2008

Contents Part A: Margins to be under pressure Executive summary A-1 Demand growth to sustain, albeit slower than the last 5 years A-3 Excess capacity will lead to a fall in prices A-13 Cement companies will lack pricing flexibility A-23 Part B: State of the industry Industry characteristics B-1 Products and technology B-13 Cement manufacturing process B-21 Region-wise scenario B-29 Player profile B-37 Part C: Industry statistics Demand supply C-1 State profile C-29 Raw material C-45 Tariffs C-57 Market share and financials C-59 Exports C-67 Cost C-71

Summary CRISIL Research expects

cement consumption to

increase at a CAGR of 8 per

cent over the next 5 years.

However, cement capacity

additions of 115 million tonnes

(translates of around 60 per

cent of existing capacity) will

lower operating rates. Adding

to the woes of cement

companies, large bunching up

of capacities is expected in

2009-10 and 2010-11. We

therefore expect cement prices

to fall by as much as Rs 15-20

per bag over the next 2 years

(2008-09 and 2009-10) as

operating rates dip.

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CRISIL RESEARCH CEMENT ANNUAL REVIEW A-i

Sections

Executive summary A-1

1.0 Demand growth to sustain, albeit slower than the last 5 years A-3

- Cement consumption to register a CAGR of 8 per cent over

the next 5 years A-3

- Housing sector to be the key demand driver A-4

- Infrastructure investments to continue to boost cement consumption A-5

- Commercial construction to continue, albeit at a slower pace A-6

- Industrial projects A-6

- Eastern region dependent on industrial projects A-7

- Southern region - growth momentum to continue A-8

- Net outbound movement to decline marginally A-9

- Western region A-9

- Central region - cement consumption to be sustained A-10

2.0 Excess capacity will lead to a fall in prices A-13

- Capacities in excess of 100 million tonnes to be added over

the next 5 years A-13

- AV Birla Group betting on northern markets A-15

- Blending to increase marginally A-21

- Blending calculation A-22

3.0 Cement companies will lack pricing flexibility A-23

Box

1.0 Demand growth to sustain, albeit slower than the last 5 years

01 Demand forecasting methodology A-3 Charts


01 Region-wise key indicators A-4

02 Net outbound movement (domestic) in the northern region in 2007-08 A-7

03 Net outbound movement (domestic) in southern region in 2007-08 A-9

Continued�

Opinion July 2008

A-ii CRISIL RESEARCH CEMENT ANNUAL REVIEW

�continued Figures

Executive summary

01 Demand-supply scenario in cement industry A-1

02 Operating Margins on downward trend A-2


01 Growth in cement consumption A-3

02 Comparison of infrastructure investments - 2001-02 to 2006-07 and

2006-07 to 2011-12 A-5

03 Cement consumption and production � North A-6

04 Cement consumption and production � East A-8

05 Cement consumption and production � South A-8

06 Cement consumption and production � West A-10

07 Cement consumption and production � Central A-11

2.0 Excess capacity will lead to a fall in prices

01 Incremental cement capacity and consumption A-13

02 Net cement capacity additions and clinker operating rates A-14

03 Clinker operating rates and cement prices A-14

04 Clinker utilisation rates under different scenarios -all-India A-15

05 Company-wise capacity share in northern region (2007-08) A-16

06 Company-wise capacity share in northern region (2012-13) A-16

07 North � Clinker operating rates and cement prices A-16

08 North � Net cement capacity additions A-16

09 East � Clinker operating rates and cement prices A-17

10 East � Net cement capacity additions A-17

11 Company-wise capacity share in eastern region (2007-08) A-17

12 Company-wise capacity share in eastern region (2012-13) A-17

13 South � Clinker operating rates and cement prices A-18

14 South � Net cement capacity additions A-18

15 Company-wise capacity share in southern region (2007-08) A-19

16 Company-wise capacity share in southern region (2012-13) A-19

17 West � Clinker oprating rates and cement prices A-19

18 West � Net cement capacity additions A-19

19 Company-wise capacity share in western region (2007-08) A-20

20 Company-wise capacity share in western region (2012-13) A-20

21 Central � Clinker operating rates and cement prices A-20

22 Central � Net cement capacity additions A-20

23 Company-wise capacity share in central region (2007-08) A-21

24 Company-wise capacity share in central region (2012-13) A-21

25 Product mix A-21

continued�

CRISIL RESEARCH CEMENT ANNUAL REVIEW A-iii


3.0 Cement companies will lack pricing flexibility

01 Cement capacity and consumption A-23

02 Power cost v/s operating expenses A-24

03 Non-coking coal price movement A-24

04 Road freight v/s diesel prices A-24 Tables


01 Housing demand forecast A-4


01 Blending calculation A-22


01 Operating margins A-25

CRISIL RESEARCH CEMENT ANNUAL REVIEW A-1

Cement consumption to increase at a CAGR of 8 per cent over the next 5 years CRISIL Research expects domestic cement consumption to register a CAGR of 8.0 per cent in the next 5 years. This is marginally lower than the 8.2 per cent CAGR recorded in the preceding 5 years. Growth in the northern and southern regions is expected to be higher than the all-India average. However, cement consumption in the western region, which rose by 8.1 per cent (CAGR) over the last 5 years, is expected to be sluggish in the subsequent corresponding period on the back of the expected slowdown in residential and commercial construction over the next 2-3 years. Capacities in excess of 100 million tonnes to be added over the next 5 years CRISIL Research expects 115 million tonnes (additional clinker capacity of 90 million tonnes) of cement capacity to be added from 2008-09 to 2012-13, compared to 37 million tonnes (additional clinker capacity of 28 million tonnes) added in the previous 5 years. This new capacity translates to 55-65 per cent of the existing cement capacity in the country, the bulk of which are likely to get commissioned in 2009-10 and 2010-11. Most of the additions are expected to come up in the South. Figure 1: Demand-supply scenario in cement industry

0

75

150

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300

375

2003

-04

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-05

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-06

2006

-07

2007

-08

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-09P

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-10P

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-11P

2011

-12P

2012

-13P

(mn tonnes)

Cement Capacity Cement Consumption

P: Projected Note: Cement consumption includes large as well as mini cement plants. Source: CRISIL Research Cement prices to take a beating Cement prices have been on an upward trajectory (CAGR of 11 per cent) over the last 5 years on the back of a steady increase in clinker operating rates. However, the large capacity expansions are expected to weigh down on price realisations starting 2009-10. Hence, CRISIL Research expects cement prices to fall by as much as Rs 15-20 per bag over the next 2 years (2009 and 2010) as operating rates dip.

Executive summary

A-2 CRISIL RESEARCH CEMENT ANNUAL REVIEW

Margins under pressure Cement companies, which were able to increase realisations at a much faster pace due to the robust operating environment, will be able to only partially pass on input cost increases in 2008-09. In 2009-10 and 2010-11, when large capacities are expected to come on-stream, pass through of input cost increases will be difficult. Therefore, CRISIL Research expects cement companies to face margin pressures over the next 3 years. Figure 2: Operating Margins on downward trend

0%

5%

10%

15%

20%

25%

30%

35%

2003

-04

2004

-05

2005

-06

2006

-07

2007

-08

2008

-09P

2009

-10P

P: Projected Source: CRISIL Research


Cement consumption to register a CAGR of 8 per cent over the next 5 years CRISIL Research expects domestic cement consumption to register a CAGR of 8.0 per cent in the next 5 years, which is marginally lower than the 8.2 per cent CAGR recorded in the previous corresponding period. Growth in the northern and southern regions, although lower than the last 3 years, is expected to outpace the all-India average. Cement consumption in the western region, which rose by 8.1 per cent (CAGR) over the last 5 years, is likely to be sluggish in the subsequent 5 years on the back of the expected slowdown in residential and commercial construction over the next 2-3 years. Figure 1: Growth in cement consumption

8.9

7.7

9.8

8.1 8.29.0

6.6

9.2

6.8

5.2

6.1

8.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2002-03 to 2007-08 2008-09 to 2012-13P

(CAGR %)

North East South West Central All-India

P: Projected Note: Cement consumption includes large as well as mini cement plants. Source: CRISIL Research

Box 1: Demand forecasting methodology

In the long term, growth in cement demand tends to exhibit correlation with the country's overall GDP growth. Taking this into account, the methodology used in our study derives future cement demand by using the regression model. In order to estimate cement demand accurately, cement-GDP relationship has been split into three components.

GDP

GFCF

GFCF - Construction

Domestic cement consumption

First, GDP and gross fixed capital formation (GFCF) were regressed to arrive at the estimation for GFCF. This was followed by an estimation of GFCF-construction by regressing the same with GFCF. On regressing GFCF-construction with domestic cement consumption, it was observed that cement demand would increase at a CAGR of 7.6 per cent over the next 5 years.



Chart 1: Region-wise key indicators

CENTRAL

EAST

SOUTH

WEST

NORTH 2002-03 2007-08

Cement capacities 26.2 36.2

Cement production 24.1 36.2

Cement operating rates (%) 92% 100%

Blending Ratio 1.16 1.36

Cement Consumption 22.5 34.5

SOUTH 2002-03 2007-08






EAST 2002-03 2007-08






WEST 2002-03 2007-08






CENTRAL 2002-03 2007-08






2002-03 2007-08






ALL INDIA

Note: All numbers are in million tonnes, except where stated. Source: CRISIL Research

Housing sector to be the key demand driver The housing market has witnessed a boom in the last 5 years on the back of increasing affordability, change in the demographic pattern, nuclearisation of families due to urbanisation and growing penetration of finance. Housing, which accounts for 60-65 per cent of total cement consumption, is likely to grow at a healthy rate due to rising income levels, migration trends and strong growth potential. We expect the total housing stock, estimated at around 146 million units, to increase by 3 per cent (CAGR) from 2008 to 2012, i.e. the addition of around 4.6 million units, annually. Table 1: Housing demand forecast 2008 2012

Estimated housing stock (million units) 146.3 164.7

Estimated floor space area (bn sq ft) 112.9 135.8

Source: CRISIL Research


CRISIL Research has analysed the real estate market in Mumbai, Chennai, Delhi, Kolkata, Pune, Bengaluru, Hyderabad and Kochi from 2008 to 2010. (For more details on CRISIL Research�s view on cities, please refer to our special report - City Views.) Our estimations of the expected supply in the residential, commercial and retail segments in these cities during the period suggests that around 10 per cent of the cement demand from the real estate industry will come from these eight cities. Higher interest rates and steep rise in real estate prices, risk to housing demand In the last 5 years, lower interest rates coupled with increasing penetration of housing finance played a significant role in boosting housing demand. However, in the last 1-2 years, while interest rates have risen, resulting in higher EMI outgo, capital values of housing has also increased significantly across India. This has resulted in housing becoming �unaffordable� for a large section of potential buyers in the lower income category.

Infrastructure investments to continue to boost cement consumption We believe that infrastructure investments, which comprise 20-22 per cent of total cement consumption, will provide significant impetus for growth in cement consumption. Construction investments are expected to double over the next 5 years, from Rs 4.7 trillion in 2002-03 to 2006-07 to Rs 9.2 trillion between 2006-07 and 2011-12. Roads and power will continue to occupy a substantial share in infrastructure and industrial investments. (For additional details, refer Construction Annual Review July 2008.) Roads have been the largest beneficiary of the infrastructure boom as its intensity of construction is the highest amongst all sectors taken into consideration. (The majority of investments are expected for the National Highway Development Project.) Overall in the roads sector, CRISIL Research expects investments to the tune of Rs 2,446 billion over the next 5 years (2006-07 to 2011-12). Other sectors such as power, ports, airports, railways and irrigation are expected to witness considerable investments as well, thereby pushing up cement consumption. Figure 2: Comparison of infrastructure investments - 2001-02 to 2006-07 and 2006-07 to 2011-12

1.21.7 2.0 1.8 2.1

3.2

11.7

4.5

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Power Roads Telecom Railways Irrigation Urban infra Ports Airports

(Rs in billion)

0.0

2.0

4.0

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8.0

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14.0

(times)

2001-02 to 2006-07 2006-07 to 2011-12 Growth multiple



Commercial construction to continue, albeit at a slower pace The commercial construction segment can be divided into four parts - retail, office space, hotels, and other civil structures such as hospitals, multiplexes and schools, all of which are registering strong growth that is translating into healthy cement consumption. Also, CRISIL Research expects the IT and ITeS industries to register a CAGR of 17.8 per cent and 22 per cent over the next 5 years, respectively, due to global cues. During the previous corresponding period, the IT and ITeS industries rose at a CAGR of 33 per cent and 34 per cent, respectively. The organised retail industry in India expanded at a healthy pace of over 28 per cent in 2006-07 on the back of the influx of large domestic and international conglomerates looking to tap the local opportunity and capture market share. Hence, the total organised retail market size, which was estimated at around Rs 679 billion in 2006-07, is expected to increase to Rs 2,366 billion by 2012. Industrial projects With the Indian economy growing at an average of 8 per cent in last 3 years, demand from all end-user segments has risen substantially. This has resulted in the majority of industries such as steel, cement, paper and petrochemicals operating at high utilisation rates to meet demand. Consequently, all major players have announced capacity expansion plans that are in various stages of implementation. Thus, industrial investments are expected to surge nearly three-fold, from Rs 2,867 billion in 2002-03 to 2006-07 to Rs 7,841 billion between 2007-08 and 2011-12. Northern region - real estate and infrastructure to drive demand CRISIL Research expects cement consumption in the next 5 years (2007-08 to 2012-13) to mirror the growth recorded in the previous corresponding period of 9 per cent (CAGR). The primary demand driver will continue to be real estate construction activity in Delhi and Gurgaon. In addition, Delhi�s hosting of the 2010 Commonwealth Games will drive cement demand as support infrastructure is put in place in the city. Urban infrastructure projects such as the Delhi Metro Rail and road projects by Road Infrastructure Development Company of Rajasthan Ltd (RIDCOR) as well as the Gems and Jewellery Park and Manesar IT SEZ in Haryana along with the upcoming commercial complexes in Jaipur is expected to boost cement consumption in this region. Figure 3: Cement consumption and production � North

22.5

34.5

53.1

24.1

36.2

54.3

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2002-03 2007-08 2012-13P

(mn tonnes)

Consumption Production



North caters to a large portion of the cement demand from Uttar Pradesh Since 2003-04, around 80 per cent of the cement produced in the North is consumed within the eight states that form this region. Further, in comparison to the western, central and eastern regions, cement production is the highest in the northern region. Therefore, around 20 per cent of the cement produced within the region is despatched to states outside this region such Uttar Pradesh, Madhya Pradesh and Gujarat. Hence, there is no export of cement from the region. CRISIL Research believes that this trend will continue with Himachal Pradesh increasing its share of cement to northern Uttar Pradesh. Chart 2: Net outbound movement (domestic) in the northern region in 2007-08

CENTRAL

EAST

SOUTH

WEST

(mn tonnes) 2002-03 2007-08Cement sold to other regions 4.9 7.1Cement despatches coming from other regions 1.9 3.9

Note: Figures in parenthesis are for 2002-03. Arrows refer to cement despatches from the southern region to different states. Source: CRISIL Research

Eastern region dependent on industrial projects CRISIL Research estimates cement consumption to increase at a CAGR of 6 per cent in the next 5 years (2007-08 to 2012-13). This is slower than the 7 per cent registered in the preceding 5 years (2002-03 to 2007-08). Although substantial investments are scheduled to take place in this region - especially in the north eastern states - we believe that cement offtake will slow down marginally as the cement consumption will primarily be driven by industrial projects, which are not cement-intensive. Further, some of the large industrial projects that are expected to come up in the region have been postponed due to various issues.


The key consumption centers are West Bengal, Orissa, Bihar and Chattisgarh, with West Bengal absorbing the maximum quantum of cement. Also, for the next 2 years, residential and commercial real estate development in the Kolkata metropolitan area is expected to at least maintain its current momentum.

Figure 4: Cement consumption and production � East

18

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2002-03 2007-08 2012-13P

(mn tonnes)



Southern region - growth momentum to continue CRISIL Research expects cement consumption to rise by 9 per cent (CAGR) over the next 5 years (2007-08 to 2012-13), which is identical to the growth registered in the previous 5 years (2002-03 to 2007-08). The key demand drivers are residential, commercial and retail construction in the tier I and II cities in this region, irrigation projects in Andhra Pradesh, the upcoming international airport in Chennai and the metro rail project in Bengaluru, amongst others. Thus, the main consumption centers are Andhra Pradesh, Tamil Nadu and Karnataka.

Figure 5: Cement consumption and production � South

32.2

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81.3

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(mn tonnes)




Net outbound movement to decline marginally In 2007-08, around 88 per cent of the cement produced in the southern region was consumed within the region. CRISIL Research believes that this trend will continue and net outbound, as a per cent of production, will decline from 11 per cent in 2007-08 to 9 per cent in 2012-13. Of the cement that is despatched, more than 90 per cent is to Maharashtra, which was also the highest cement consuming state in the country in 2007-08.

Chart 3: Net outbound movement (domestic) in southern region in 2007-08

CENTRAL

EAST

SOUTH

WEST

(mn tonnes) 2002-03 2007-08Cement sold to other regions 4.4 6.2Cement despatches coming from other regions 0.3 0.8

Note: Figures in parenthesis are for 2002-03. Arrows refer to cement despatches from southern region to different states. Source: CRISIL Research

Western region CRISIL Research expects cement consumption to register a CAGR of 6.8 per cent in the next 5 years (2007-08 to 2012-13) as compared to 8.0 per cent in previous 5 years (2002-03 to 2007-08). We believe that the reason for the tapering off in consumption is due to the expected slowdown in residential and commercial construction over the next 2-3 years. Further, more than 90 per cent of cement exports from India is from the western region, bound primarily for the Middle East. With the Middle East witnessing an increase in cement capacity, cement exports from India, more particularly from the western region, is expected to decline, pulling down cement consumption from the West in the near future.


Figure 6: Cement consumption and production � West

24.5

36.1

50.1

19.3

28.7

38.7

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2002-03 2007-08 2012-13P

(mn tonnes)


P: Projected Note: Cement consumption includes large as well as mini cement plants. Source: CRISIL Research Historically, the region consumes more than 80 per cent of the cement it produces. Further, amongst all the regions, the West has predominantly been a cement-deficit region. Thus, cement despatches to this region is the highest - Gujarat receives cement from Rajasthan and Maharashtra from Karnataka. However, going forward, CRISIL Research believes that although around 90 per cent of cement produced within the region will be consumed by Gujarat and Maharashtra, the net inbound shall be in the same range due to cost-efficiencies. (In 2007-08, around 60 per cent of cement despatched from Karnataka to Maharashtra was from plants near the border.)

Central region - cement consumption to be sustained CRISIL Research estimates cement consumption in the central region to increase at a CAGR of 6.1 per cent in next 5 years (2007-08 to 2012-13) as against 5.2 per cent in previous 5 years (2002-03 to 2007-08). Cement consumption in the region is primarily driven by housing and infrastructure projects in both states, i.e. Madhya Pradesh and Uttar Pradesh. Projects such as Harsi Main Canal project in Gwalior, SEZs coming up in Noida like the Greater Noida IT SEZ project and the 1,047-km Ganga Expressway are expected to boost cement consumption in this region.


Figure 7: Cement consumption and production � Central

19

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2002-03 2007-08 2012-13P

(mn tonnes)


P: Projected Note Cement consumption includes large as well as mini cement plants. Source: CRISIL Research

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Capacities in excess of 100 million tonnes to be added over the next 5 years In the last 5 years (2003 to 2008), cement consumption in India rose at a CAGR of 8.2 per cent on the back of increased real estate construction activity and infrastructure spends. During this period, cement capacity expanded at a CAGR of 4.8 per cent, resulting in clinker operating rates moving up from 83 per cent in 2001-02 to 95 per cent in 2007-08. Figure 1: Incremental cement capacity and consumption

114.7

79.3

65

45.7

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100

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140

Net cement capacities added Additional cement demand

(mn tonnes)

2002-03 to 2007-08 2008-09 to 2012-13P


CRISIL Research expects 115 million tonnes (additional clinker capacity of 90 million tonnes) of capacity to be added between 2008-09 and 2012-13, compared to 37 million tonnes (additional clinker capacity of 28 million tonnes) added in the previous 5 years. This new capacity translates to 55-65 per cent of the country�s existing cement capacity. The bulk of capacity additions are likely to come up between 2009-10 and 2010-11, with the majority expected in the South. Large capacity additions to pull down operating rates With the setting up of new cement capacities, CRISIL Research expects clinker operating rates to decline - clinker operating rates, which were in the range of 85-95 per cent from 2003-04 to 2007-08, is expected to be in the region of 75-80 per cent between 2009-10 and 2012-13. This dip in operating rates will impact cement prices.



Figure 2: Net cement capacity additions and clinker operating rates

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Cement capacity addition (mn tonnes) Utilisation rates (%)

P: Projected Source: CRISIL Research Cement prices to decline by Rs 15-20 per bag in the next 2 years Cement prices have been on an upward trajectory (CAGR of 11 per cent) during the last 5 years on the back of a steady increase in clinker operating rates. However, the commissioning of large-scale capacities is expected to dampen this beginning 2009-10. Hence, CRISIL Research expects cement prices to fall by as much as Rs 15-20 per bag over the next 2 years (2009 and 2010) over cement prices in 2007-08 as operating rates decline. Figure 3: Clinker operating rates and cement prices

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2002-03 2007-08 2012-13P

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%)

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)

Clinker operating rates Prices


Based on our projected demand growth of 8 per cent for the next 5 years, the additional cement consumption will be 80 million tonnes. Therefore, if operating rates are to be maintained, we believe that the industry requires 90 million tonnes of additional cement capacity. We are of the view that any additional cement capacity above 90 million tonnes will start exerting pressure on cement prices.


Lower capacity addition not to significantly alter situation CRISIL Research has built scenarios wherein only 90 per cent or 80 per cent of base capacities come on-stream and analysed their impact on clinker operating rates. Even if lower cement capacities get commissioned, clinker operating rates, at best, will be in the range of 80-85 per cent from 2009-10 to 2012-13. (Our observation on cement prices makes us believe that it tends to rise when clinker operating rates start breaching the 90 per cent level.) In a scenario where almost 20 per cent of cement capacities come on-stream, the South stands to benefit as over one-third of the country�s capacity additions is expected in this region. Hence, lower capacity additions will improve operating rates, consequently cushioning any steep fall in cement prices. Figure 4: Clinker utilisation rates under different scenarios -all-India

75%

79%

83%

87%

91%

95%

2002-03 2004-05 2006-07 2008-09P 2010-11P 2012-13P

All-India expected clinker utilisation rates 90% of base capacities added

80% of base capacities added

`


AV Birla Group betting on northern markets CRISIL Research expects cement capacities in the North to increase at a CAGR of 8.9 per cent over the next 5 years, with Grasim Industries the primary contributor to this augmentation. The company, which commissioned a 4.4-million-tonne brownfield cement plant in Shambhupura, Rajasthan, is setting up a 4.5-million-tonne greenfield cement plant in Kotputhali, Rajasthan. The plant is expected to come on-stream in the third quarter of 2008-09. Following this, the share in capacity terms of large companies, except for Grasim Industries, will decline marginally.


Figure 5: Company-wise capacity share in

northern region (2007-08)


northern region (2012-13)

(per cent)

Ambuja Cements

18

ACC14

Shree Cement17

JK Synthetics11

Grasim9

Others31

(per cent)

Shree Cement9

JK Synthetics7

Grasim24

Others32

ACC13

Ambuja Cements

15

Source: CRISIL Research Source: CRISIL Research

The surge in cement consumption has also prompted other companies to set up cement plants in the limestone-rich clusters of Rajasthan (Chanderia) and Himachal Pradesh - Rajasthan has the fourth largest cement-grade limestone reserves, with total availability of 7,634 million tonnes (proven equivalent 4,763 million tonnes). Around 35 per cent of the expected cement capacity in the North is likely to be set up in Himachal Pradesh. Southern-based player, India Cement, has entered this region with the intention of setting up plants in Rajasthan and Himachal Pradesh. Northern market will be able to absorb the additional capacities The northern market is likely to be the only area in India which will be able to absorb the additional cement capacity that comes up in the region. As a result, clinker operating rates are expected to be in the range of 85-90 per cent over the next 5 years. However, cement prices are likely to fall more moderately in the northern region than others.

Figure 7: North � Clinker operating rates and

cement prices

Figure 8: North � Net cement capacity

additions

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Eastern region to be the worst-affected on account of capacity additions CRISIL Research expects cement capacities to increase at a CAGR of 9.5 per cent over the next 5 years, while cement consumption will grow at a much slower rate of 6.5 per cent. This is likely to further push down operating rates to 65-70 per cent levels in the projected 5 years compared to 75-80 per cent recorded in the preceding 5 years. More than 50 per cent of cement capacities coming up in the East are in Chattisgarh as the Bilaspur limestone cluster is located in the state. Currently, most of the active production centers are also located within this state. Amongst companies, in terms of installed cement capacity, Lafarge had the largest share in 2007-08, which we believe will remain in 2012-13 as well. Figure 9: East � Clinker operating rates and

cement prices

Figure 10: East � Net cement capacity

additions

60

64

68

72

76

80

2002-03 2007-08 2012-13P

Clin

ker

op

erat

ing

rat

es (

%)

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50

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200

250

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ces

(Rs

per

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)


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6

8

10

2008-09P 2009-10P 2010-11P 2011-12P 2012-13P

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eastern region (2007-08)


eastern region (2012-13)

(per cent)

UltraTech Cement

13

Lafarge19

Others40

Ambuja Cements

11

ACC17

(per cent)

Lafarge22

Others43

Ultratech Cement

6

Ambuja Cements

18

ACC11



Southern region - maximum capacity additions The South comprises three prime limestone clusters, and hence, around 35 per cent of India�s cement plant expansions, both greenfield and brownfield, are coming up in this region. Of this, around 65 per cent of the capacity is coming up in Andhra Pradesh. CRISIL Research, therefore, expects cement capacity in the South to increase at a CAGR of 11.2 per cent over the next 5 years (2007-08 to 2012-13). This region is highly fragmented, which we believe will remain in the near future. The largest capacity additions are by UltraTech Cement and JK Cement � total in excess of 3 million tonnes. Further, a large number of mini cement plants in this region such as Sagar Cements and Raghuram Cements are expanding their capacities. Hence, the share of �others� in the pie-chart below will increase from 51 per cent in 2007-08 to 57 per cent in 2012-13. Therefore, although India Cement is increasing its capacity by 2.2 million tonnes in 2009-10, its share in terms of capacity, in the South will decline from 16 per cent in 2007-08 to 12 per cent in 2012-13. Meanwhile, cement consumption increased at a CAGR of 9.8 per cent over the last 5 years (2002-03 to 2007-08) whereas capacity rose by only 4.6 per cent (CAGR). Hence, prices in the southern region rose the maximum - a CAGR of 12 per cent - on the back of clinker operating rates moving up from a low of 80 per cent in 2002-03 to 95 per cent in 2007-08. However, with large capacities planned in the South, CRISIL Research believes clinker operating rates will fall back to 80 per cent by 2012-13, leading to a decline in cement prices. Figure 13: South � Clinker operating rates and

cement prices

Figure 14: South � Net cement capacity

additions

0

20

40

60

80

100

2002-03 2007-08 2012-13P

Op

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es (

%)

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southern region (2007-08)


southern region (2012-13)

(per cent)

India Cements16

Madras Cement10

Grasim7Dalmia

Cements6

Others51

ACC10

(per cent)

Dalmia Cements

8

Others57

Grasim4

Madras Cement9

India Cements12

ACC10


Western region - largest demand center in the country; to see decline in prices CRISIL Research expects cement capacity to increase at a CAGR of 11.6 per cent over the next 5 years (2007-08 to 2012-13) as against a 3.8 per cent increase (CAGR) in the last 5 years (2002-03 to 2007-08). Cement consumption, which has been robust, is expected to be in the range of 7.0 per cent in the subsequent 5 years. Cement prices in the last 3 years rose at a CAGR of 19 per cent. However, given the expected demand-supply scenario, CRISIL Research believes that prices are set to decline as clinker operating rates move down from 96 per cent in 2007-08 to 82 per cent in 2009-10. Figure 17: West � Clinker oprating rates and

cement prices

Figure 18: West � Net cement capacity

additions

40

55

70

85

100

2002-03 2007-08 2012-13P

Op

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rat

es (

%)

0

50

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(Rs

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)

Clinker operating rates Prices0

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Maximum capacity augmentation will take place in 2009-10 - to the tune of 7.9 million tonnes. Sanghi Cements is setting up a 4.5-million-tonne greenfield plant in Lakhpat, Gujarat, which will be commissioned at the start of 2009-10. Binani Cement, a new entrant in this territory, is also expected to set up cement plants in Gujarat. Though, this is likely to bring down UltraTech Cement�s share in capacity, the company will continue to retain its leadership position in 2012-13. Figure 19: Company-wise capacity share in

western region (2007-08)


western region (2012-13)

(per cent)

UltraTech Cement

34

Ambuja Cements

23

Others20

Century Textiles

5

Grasim9

Sanghi Cements

9

(per cent)

Sanghi Cements

14

Ambuja Cements

17

UltraTech Cement

20

Century Textiles

7 Grasim5

Others37


Central region to witness steep fall in operating rates CRISIL Research expects cement capacity to increase at a CAGR of 10 per cent over the next 5 years (2007-08 to 2012-13). Birla Corporation Ltd is aggressively expanding in this region by augmenting its capacity to the tune of 4.8 million tonnes over the next 2 years. Hence, its market share, in terms of installed cement capacity, will increase from 8 per cent in 2007-08 to 20 per cent in 2012-13. Figure 21: Central � Clinker operating rates and

cement prices

Figure 22: Central � Net cement capacity

additions

0

20

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120

2002-03 2007-08 2012-13P

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Over the last 5 years, cement consumption rose at a CAGR of 5.2 per cent while net cement capacity increased at a CAGR of 5.4 per cent. Hence, this tight demand-supply scenario led to the rise in prices - at a CAGR of 7.0 per cent over the last 3 years. As the estimated installed cement capacity will surpass the expected consumption, CRISIL Research believes that prices will decline. Thus, cement operating rates, which have moved from 91 per cent levels in 2004-05 to around 95 per cent in 2007-08, are expected to contract to 70-75 per cent in the next 2 years. Figure 23: Company-wise capacity share in

central region (2007-08)


central region (2012-13)

(per cent)

Century Textiles12

ACC14

Jaypee Group26

Others28

Grasim12

Birla Corporation8

(per cent)

Century Textiles

9

ACC17

Jaypee Group19Others

26

Grasim9

Birla Corporation

20


Blending to increase marginally In the last 5 years, the blending ratio in the cement industry increased from 1.19 in 2002-03 to 1.32 in 2007-08. CRISIL Research expects this to rise further to 1.37 in 2012-13. Cement producers opt for increased levels of blending as it provides manufacturers the flexibility to contain costs during a down-cycle. Given that cement consumption will increase at a CAGR of 8 per cent over the next 5 years, we believe that this incremental addition in blending is likely to result in an additional supply of 8 million tonnes. Also, the proportion of blended cement is expected to move from 74 per cent in 2007-08 to 80 per cent in 2012-13. Figure 25: Product mix

(2007-08)

PBFS8

OPC26

PPC66

(per cent)(2012-13)

PPC72

PBFS8

OPC20

(per cent)



The necessity to produce increased volume of blended cement is: • Clinker substitution by cheaper material • Freight reduction by split locating grinding capacity near blending sources • Conservation of dwindling limestone reserves • Cost savings in terms of power and fuel

Blending calculation The potential blending is calculated after taking into account the projected cement production for 2012-13 and forecasting the blending ratio. The blending ratio has been calculated after taking a view of the projected variety-wise mix of cement and considering the industry benchmarks of the maximum blending possible on key varieties of cement - portland pozzolona cement (PPC) and portland blast furnace slag cement (PBFSC) have been considered for estimating the blending potential. The OPC-PPC-PBFSC ratio (the variety-wise mix) 5 years hence was calculated after taking into account the current mix and the availability of fly ash and slag. The blending ratio for 2012-13 was arrived at after taking into account the variety-wise product mix and technical aspects relating to blending (which put a cap on the maximum amount of fly ash/slag that can be blended with clinker). Thus, the blending ratio calculated was analysed in the light of our projections of cement production in 2012-13 in order to arrive at the maximum capacity addition possible through blending. The workings for the same are summarised in the following table:

Table 1: Blending calculation Projected production* - cement 2012-13 238 (a) Projected blending ratio - 2012-13 1.37 (b) Projected production - clinker 2012-13 173.4 (c=(a/b) Existing blending ratio - 2007-08 1.32 d Cement projection in 2012-13 at current blending 228.8 (e=(c*d)) Blending potential (mt) 8.7 ((a)-(e)) *Cement production is estimated on the basis of the consumption in 2012-13. Source: CRISIL Research

Fly ash Fly ash, India�s primary source of pozzolana, is mainly derived from thermal power plants. In 2006-07, around 54 million tonnes of fly ash was generated, of which around 42 per cent was utilised by the cement industry. In the near future, CRISIL Research expects around 43 million tonnes of fly ash to be added to the existing capacity. Thus, we believe that utilisation at existing rates will continue and there will be no supply constraints of fly ash. Slag After fly ash, slag produced as a waste product by steel plants is the most popular blending material. Due to source concentration, freight consideration dictates its geographic usage. Its usage is the highest in the eastern region as cement plants are situated in the vicinity of steel plants. We believe that the maximum limit permitted by the Bureau of Industrial Norms (BIS), i.e. 55 per cent can be mixed with clinker, shall be followed in the near future as well.


Cement prices expected to soften on back of large capacity additions Cement companies have planned capacity expansions to the tune of 115 million tonnes (clinker capacity of 90 million tonnes) over the next 5 years. This is in excess of the projected cement consumption in the country, which is likely to increase at a CAGR of 8 per cent over this period. Hence, post expansions, CRISIL Research expects operating rates to decline significantly, resulting in the softening of cement prices. Figure 1: Cement capacity and consumption

0

50

100

150

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250

300

350

2003

-04

2004

-05

2005

-06

2006

-07

2007

-08

2008

-09P

2009

-10P

2010

-11P

2011

-12P

2012

-13P

(mn tonnes)

Cement capacity Cement consumption

P: Projected Note: Cement consumption includes large and mini cement plants. Source: CRISIL Research

Cement companies, which were able to increase realisations at a much faster pace due to the robust operating environment, will be able to only partially pass on increases in input costs in 2008-09. In 2009-10 and 2010-11, when large capacities are expected to come on-stream, pass through of input cost increases will be difficult. Therefore, CRISIL Research expects cement companies to face margin pressures over the next 3 years. Power and fuel costs to increase at a CAGR of 6 per cent over next 2 years The energy cost of cement companies has risen sharply as landed cost of coal (used to fire the klin and generation of captive power) has increased considerably in 2008-09. (After a gap of 3.5 years, state-owned Coal India Ltd raised coal prices by 10-15 per cent.) Hence, CRISIL Research expects domestic coal prices to increase in excess of 10 per cent during the year. Meanwhile, cement companies dependent on imported coal will witness a much sharper appreciation in prices. International non-coking coal prices (Newcastle, Australia), which rose by 44 per cent (y-o-y) in 2007, peaked at $140 per tonne in June 2008 - a doubling of prices over a 1-year period. CRISIL Research expects prices to hover in this range in 2008-09, and then decline by 10-15 per cent in 2009-10.



Based on the fuel mix and probable changes in this mix, we estimate power and fuel costs to increase by around 14 per cent (y-o-y) in 2008-09, and remain relatively stable in 2009-10. Figure 2: Power cost v/s operating expenses Figure 3: Non-coking coal price movement

15

17

19

21

23

25

27

29

31

33

35

2003-04 2004-05 2005-06 2006-07 2007-08

(Rs/bag)

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90

(Rs/bag)

Power and fuel Operating expenses

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2005 2006 2007 2008F 2009F

(Rs/ tonne)

Domestic Imported

F: Forecast Note: For further reference on coal, please refer to our Annual Review 2008 on the coal sector. Source: CRISIL Research

Freight costs to increase at a CAGR of 8 per cent over the next 2 years Freight costs account for over 20 per cent of operating costs. With the average lead distance that cement travels in excess of 500 kms, the share of road transportation is on a declining trend as cement companies prefer rail wherever possible since the price differences per tonne kilometer is significant. Based on the transportation mix of the cement industry, CRISIL Research believes that freight costs will increase by 12 per cent (y-o-y) in 2008-09 and by 5 per cent in 2009-10. Figure 4: Road freight v/s diesel prices

-

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1998

-99

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-00

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-01

2001

-02

2002

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2003

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2005

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-07

2007

-08

(Rs.

per

to

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e/km

)

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

((R

s/lit

re)

Road Diesel prices

Notes 1) Diesel prices are average of Mumbai and Delhi. 2) For further reference, please refer to our Domestic Freight Transportation Services report. Source: CRISIL Research, IOCL


Operating margins to be under pressure In 2008-09, operating margins will come under pressure as operating costs will increase on the back of a surge in coal prices and higher freight rates. Cement companies will be constrained in passing on these cost increases to consumers on account of fresh cement capacities expected to get commissioned during this period. Further, the government�s frequent intervention to restrict any hike in retail cement prices will cap any increase in realisations. CRISIL Research therefore expects net realisations to fall by 2 per cent in 2008-09 and by 7 per cent in 2009-10 [due to the estimated 40 million tonnes of cement capacities (net) to be added during the year]. Consequently, operating margins will be on a downward trajectory. Table 1: Operating margins (Rs/bag) 2004-05 2005-06 2006-07 2007-08 2008-09P 2009-10P

Net realisations (ex indirect taxes) 111 112 146 172 172 157

Distribution 17 19 23 29 32 34

Net sales realisations (ex excise and freight) 94 92 123 143 140 123

Operating expenditure 75 71 77 87 94 95

Raw material, stores etc 25 23 26 28 29 30

Power and fuel 32 31 31 34 38 38

Sales and marketing 4 3 4 5 6 6

Wages and salaries 6 5 6 7 7 7

Other manufatcuring expenses 5 5 6 7 7 8

Other expenses 4 4 4 6 6 6

Operating profits 19 22 46 56 47 28

Operating margins 17.1% 19.4% 31.3% 32.7% 27.0% 18.0%

P: Projected


Hike in interest rates to add to cement companies� woes With large capacity expansions planned, the rise in interest rates is expected to impact companies that have taken significant recourse to debt financing. Adding to the woes of the cement companies will be the pressure on operating margins, which will reduce cash accruals.

CRISIL RESEARCH CEMENT ANNUAL REVIEW B-i

Sections

1.0 Industry characteristics B-1

- Industry B-1

- Cost elements B-2

2.0 Products and technology B-13

- Types of cement B-13

- Ready-mix concrete B-16

- Process B-17

- Plant and equipment B-18

- Types of RMC B-18

- Advantages of RMC B-18

- RMC market in India B-19

3.0 Cement manufacturing process B-21

- Raw materials B-21

- Process profile B-22

4.0 Region-wise scenario B-29

- North B-29

- South B-30

- East B-32

- West B-33

- Central region B-35

5.0 Player profile B-37

- Associated Cement Companies Ltd B-37

- Ambuja Cements Ltd B-39

- UltraTech Cement Ltd B-41

- Grasim Industries Ltd B-43

- Jaiprakash Associates Ltd B-45

- India Cements Ltd B-47

- Madras Cements Ltd B-49

- Shree Cement Ltd B-51 Charts

1.0 Industry characteristics

01 Cement � Factors influencing demand B-6

02 Cement � Factors affecting domestic supply B-9

3.0 Cement manufacturing process

01 Manufacturing process of mini-cement plants B-25

Continued�

State of the industry July 2008

B-ii CRISIL RESEARCH CEMENT ANNUAL REVIEW



01 Industry structure B-1

02 Coal requirement vs coal allocation B-3

03 Consumption (region-wise) B-4

04 Infrastructure spending B-7

2.0 Products and technology

01 Variety-wise cement production B-16


01 Process profile B-23

4.0 Region-wise scenario

01 North � Market share (2007-08) B-29

02 North � Domestic market prices B-30

03 South � Market share (2007-08) B-31

04 South � Domestic market prices B-31

05 East � Market share (2007-08) B-32

06 East � Domestic market prices B-33

07 West � Market share (2007-08) B-34

08 West � Domestic market prices B-34

09 Central � Market share (2007-08) B-35

10 Central � Domestic market prices B-36

5.0 Player profile

01 ACC � Proportion of consumption by various states (2006-07) B-38

02 ACC � Market share and rank (2006-07) B-38

03 ACC � Break up as a per cent of sales (Mar-02) B-38

04 ACC � Break-up as a per cent of sales (Dec-07) B-38

05 GACL � Proportion of consumption by various states (2006-07) B-40

06 GACL � Mkt share and rank (2006-07) B-40

07 GACL � Break-up as a per cent of sales (Jun-02) B-40

08 GACL � Break-up as a per cent of sales (Dec-07) B-40

09 UltraTech Cement Ltd � Proportion of consumption by various states

(2006-07) B-42

10 UltraTech Cement Ltd � Market share & rank (2006-07) B-42

11 UltraTech Cement Ltd � Break-up as a per cent of sales (Mar-04) B-42

12 UltraTech Cement Ltd � Break-up as a per cent of sales (Mar-07) B-42

13 Grasim India Ltd � Proportion of consumption of varoius states B-44

14 Grasim India Ltd � Market share & rank (2005-06) B-44

15 Grasim India Ltd � Input costs as per cent of cost of sales (2001-02) B-44

16 Grasim India Ltd � Input costs as per cent of cost of sales (2006-07) B-44

17 Jaiprakash Associates Ltd � Proportion of consumption by various states

(2005-06) B-46 continued�

CRISIL RESEARCH CEMENT ANNUAL REVIEW B-iii


5.0 Player profile

18 Jaiprakash Associates Ltd � Market share & rank (2005-06) B-46

19 Jaiprakash Associates Ltd � Break-up as a per cent of sales (Mar-02) B-46

20 Jaiprakash Associates Ltd � Break-up as a per cent of sales (Mar-07) B-46

21 India Cements Ltd � Proportion of consumption (2006-07) B-48

22 India Cements Ltd � Market share & rank (2006-07) B-48

23 India Cements Ltd � Break-up as a per cent of sales (Mar-02) B-48

24 India Cements Ltd � Break-up as a per cent of sales (Mar-07) B-48

25 Madras Cement � Proportion of consumption by various states (2005-06) B-50

26 Madras Cement � Market share & rank (2005-06) B-50

27 Madras Cement � Break-up as a per cent of sales (Mar-02) B-50

28 Madras Cement � Break-up as a per cent of sales (Mar-07) B-50

29 Shree Cement � Proportion of consumption by various states (2006-07) B-52

30 Shree Cement � Market share & rank (2006-07) B-52

31 Shree Cement � Break-up as a per cent of sales (Mar-02) B-52

32 Shree Cement � Break-up as a per cent of sales (Mar-07) B-52 Tables


01 Industry Status B-2

02 Power and fuel requirement in cement manufacturing process B-2

03 Events during the period of government control B-10

04 Events during the period of partial de-control B-10

05 Events post de-control B-11


01 White cement � Capacity and production B-20


01 North � Capacity/ production/ operating rate B-29

02 South � Capacity/ production/ operating rate B-30

03 East � Capacity/ production/ operating rate B-32

04 West � Capacity/ production/ operating rate B-33

05 Central � Capacity/ production/ operating rate B-35

5.0 Player profile

01 ACC � As of December 31, 2007 B-37

02 ACC � Key financial indicators B-39

03 GACL � As of December 31, 2007 B-39

04 GACL � Key financial indicators B-41

05 UltraTech Cement Ltd � As of December 31, 2007 B-41

06 UltraTech Cement Ltd � Key financial indicators B-43 continued�

B-iv CRISIL RESEARCH CEMENT ANNUAL REVIEW

�continued Tables

5.0 Player profile

07 Grasim India Ltd � As of December 31, 2007 B-43

08 Segment revenue � Cement business B-44

09 Grasim India Ltd � Key financial indicators B-45

10 Jaiprakash Associates Ltd � As of December 31, 2007 B-45

11 Segment revenue � Cement business B-46

12 Jaiprakash Associates Ltd � Key financial indicators B-47

13 India Cements Ltd � As of December 31, 2007 B-47

14 India Cements Ltd � Key financial indicators B-49

15 Madras Cement � As of December 31, 2007 B-49

16 Madras Cement � Key financial indicators B-51

17 Shree Cement � As of December 31, 2007 B-51

18 Shree Cement � Key financial indicators B-53

CRISIL RESEARCH CEMENT ANNUAL REVIEW B-1

Industry The Indian cement industry comprises 130 large cement plants with an installed capacity of 198.62 million tonnes as on March 2008 and more than 365 mini cement plants constituting 6 million tonnes of effective capacity. The industry can be broadly classified into three categories: The first category consists of players having a pan India presence � Holcim-controlled ACC and Ambuja (36.8 million tonnes) and Aditya Birla-controlled Grasim, Century Textile and UltraTech (38.4 million tonnes). CRISIL Research expects leadership to alternate between the two players as both are adding capacities through greenfield and brownfield projects. The second category comprises players whose presence is confined to one region and have a firm hold in their respective markets. This segment includes players such as Lafarge (East), India Cement (South), Jaypee Group (North and Central), Shree Cement (North), Birla Corp, Binani, Dalmia and Madras Cement amongst others. This segment�s capacity is 63.9 million tonnes, which is approximately 36.4 per cent of the industry size. Several players from this segment like Lafarge and Binani are planning to set up capacities outside their present region of operations to expand their reach along with tapping opportunities present (in other regions) as well. The third category consists of stand-alone players, which constitutes a combined capacity of 36.6 million tonnes. Players such as CCI, J&K Cement and Panyam Cements fall into this category. These players are local players who run the risk of getting marginalised. Figure 1: Industry structure

(per cent)

Other players21 Pan-India players

43

Regional players36

Notes 1) Pan India players include the Holcim Group consisting of ACC and Ambuja Cements Ltd and

Aditya Birla Group comprising Grasim Industries, UltraTech and Century Textile. 2) Regional players include India Cement, Shree Cement, Madras Cement, Birla Corp, Lafarge, Binani Cement,

Jaypee Group etc. 3) Others include CCI, J&K Cement, Paynam Cement, Penna Cement, Mangalam Cement etc. Source: CMA


B-2 CRISIL RESEARCH CEMENT ANNUAL REVIEW

Table 1: Industry Status Industry status No. of companies Share of capacity (million tonnes) % share of total capacity

1997-98 2002-03 2007-08 1997-98 2002-03 2007-08 1997-98 2002-03 2007-08

Large players (pan India) 4 4 2 31 63 75 32.5% 45.2% 42.8%

Regional players 12 12 14 22 43 64 23.2% 31.2% 36.4%

Standalone players 41 34 35 43 33 37 44.3% 23.6% 20.8%

Total 57 50 51 96 139 176 100.0% 100.0% 100.0%


Cost elements There are four major costs associated with the production of cement: 1. Power and fuel costs 2. Raw material costs 3. Selling expenses 4. Other expenses 1. Power and fuel The cement industry is power-intensive with power and fuel costs constituting approximately 30 per cent of the cost of sale of cement, and hence has a major impact on the company�s operating expenditure. Coal is used to fire the kiln and different varieties of fuel (diesel, coal, pet coke and lignite) is used to grind the clinker in the kiln. The power requirements of cement plants vary according to the heat treatment process. The wet process requires 1,300-1,600 kilo calories (kcal) per kg of clinker and 110-115 kWh of power to manufacture 1 tonne of cement, while the dry process requires only 750-950 kcal per kg of clinker and 120-125 kWh of power. Even though the dry process utilises more electricity, the wet process consumes much more fuel and is more energy intensive than the dry process.

Table 2: Power and fuel requirement in cement manufacturing process Energy required in process Power required in klin

(kcal per kg of clinker) (kwh per tonne of cement)

Wet process 1,300-1,600 110-115

Dry process 750-950 120-125


While a large portion of the power requirement is met through state electricity boards, increasingly companies are opting for captive power plants to reduce costs and dependence on state electricity boards where power cuts are frequent. In 2006-07, 82.2 million tonnes of cement was produce using captive power plants, which works out to be around 52.8 per cent of the total cement production.


The Indian cement industry primarily uses coal, pet coke and lignite for its fuel requirement. Apart from depending on the receipts against linked quota, the cement industry has to rely on the open market as the allocation is not sufficient to meet its coal requirement. The primary allocation of coal in India is to the power and steel sectors with the cement industry receiving only 3.5 per cent of the total production. Figure 2: Coal requirement vs coal allocation

0

5

10

15

20

25

30

2001 2002 2003 2004 2005 2006 2007

(mn tonnes)

Coal against linkages Coal required

Source: CMA

2. Raw material The second major component in the production of cement is raw material costs, which primarily constitutes limestone cost. Raw material accounts for 30-40 per cent of cost of sales. Cement plants are generally located near limestone quarries, as limestone cannot be transported over long distances. Hence clinker plants are clustered around 10 limestone deposits � Himachal, Saurashtra, Tiruchirapalli, Satna, Gulbarga, Chandrapur, Bilaspur, Chanderia, Nalgonda and Yerraguntla. As on December 2007, there was around 105 million tonnes of capacity around these clusters, which constitutes around 87 per cent of the industry size. Apart from limestone, other raw materials used by the cement industry are fly ash, slag and gypsum. 3. Selling expenses In the cement sector, the manufacturing facilities and end-user markets are at considerable distances from each other, primarily because cement plants are located near limestone reserves. (Limestone reserves are confined to certain regions and cannot be transported over long distance.) Hence, cement has to travel a considerable distance to reach the end-users. And since cement is a low-value, high-volume commodity, transporting it to the end-user accounts for a significant portion of the cost for cement manufacturers - it constitutes more than 10 per cent of cost of sale of cement. There are three key modes of transportation used by the cement industry i.e. road, rail and sea, with road and rail contributing more than 90 per cent of the despatches. In order to control freight costs, companies strategically locate the clinker units closer to limestone reserves whereas the grinding units are set up closer to consumption centres, primarily because transporting clinker is cheaper than transporting cement, and blending material like fly ash or slag may not be available near the limestone reserve.


Rail is the preferred mode of transport over long distances (over 500 kms) because of its lower cost. However, the availability of wagons and the distance needs to be considered. The cement industry also benefits as cement is classified as a priority commodity when it comes to transportation of cement. On the other hand, road transportation is better for short distances and bulk transportation as it minimises secondary handling and secondary freight costs. The sea route is the cheapest mode of transportation, but only coastal players can take advantage of this mode as they can transport clinker and cement more economically within the country as well as to other regions. 4. Other expenses Other expenses include employee costs, administration expenses, and repair and maintenance charges amongst others. These account for 15-20 per cent of the cost of sales. Value chain The industry�s supply chain primarily comprises raw material suppliers, cement manufacturers, distributors and end-users. Typically, companies enter into agreements with respective state governments and coal companies to source limestone, power and coal, respectively. The primary distributors in the supply chain are wholesalers (large traders with a margin of Rs 1-2 per bag) and retailers (small traders with a margin of Rs 5-6 per bag). Wholesalers-cum-retailers operate in small towns or rural areas. Cement industry � regional in nature Cement is a high-volume, low-value commodity. Transporting over long distances adds to the cost, resulting in lower margins to the players. This makes cement a regional commodity where lower distribution cost makes it remunerative to producers. Cement consumption varies region-wise because the demand-supply balance, per capita income and level of industrial development differ in each state and region.

In 2006-07, the South accounted for the largest share of consumption (44.0 per cent) followed by the North (29.9 per cent), West (28.7 per cent), East (24.0 per cent) and the central region (22.4 per cent).

Figure 3: Consumption (region-wise)

0

5

10

15

20

25

30

35

40

45

50

2002-03 2003-04 2004-05 2005-06 2006-07

(mn tonnes)

North East South West Central

Source: CMA


Seasonality of demand and cyclicality of the industry Cement demand is seasonal with demand declining during the monsoons due to a slowdown in construction activity. The monsoons extend from June to September across India (except in parts of Tamil Nadu and Kerala, where the monsoon extends from November to January). Consequently, demand is at its nadir during the July-September quarter and highest during the January-March quarter. Demand peaks in March and is at a trough in August. In addition, the cement industry, like most capital-intensive commodity industries, is cyclical in nature with respect to supply. Given the high gestation period of 24-30 months, there is a time lag between capacity build-up and cement demand. Demand for cement is linked to economic growth. Hence, when the economy is strong, demand increases. As a result, the profitability of players rises, leading to capacity additions by existing players and the entry of new players. However, since it takes 2 -2.5 years to build a cement plant, it is likely that before completion, demand could decrease or stagnate, or the capacity additions could exceed demand. This can lead to a fall in cement prices, and the industry could face a downturn, leading to players reducing operating rates or shutting down capacities. Demand dynamics Cement demand is closely linked to the growth of the construction sector. (A regression analysis of cement demand and investments in the construction sector shows a high correlation of 0.99 and moderate elasticity of 0.55.). Consequently, cement demand has posted a healthy growth rate of around 8.34 per cent since 1996-97 till 2007-08, propelled by the increased focus on infrastructure development, and higher demand from the housing sector and industrial projects.


Chart 1: Cement � Factors influencing demand

Cement demand

Segmentwise offtake

Offtake from corporate projects other than

housing/infrastructure (2)

Government offtake from infrastructure projects. This

includes bridges, wells, dams, other public works,

concretisation of roads, ports and railways (3)

Offtake from private infrastructure projects. This

includes roads, ports and power (4)

Other offtake, such as commercial structures (5)

Seasonality

Repair work (1, 2, 3, 4, 5)

Offtake from the housing sector (1)

Cement availability

Domestic supply

Imports

Per capita income

Government outlay

Access to finance Housing finance schemes

Estimated housing shortage

Rural income

Urban income

Exchange rate

International prices

Customs duty

Agricultural output

Global demand-supply

Access tocapital

Govt regulations such as ULCRA

Land availability

FDI/govt policy regarding privatisation

Internal accruals

Capital market

Credit availability

Disbursement policy of financial

institutions

Funding from overseas markets

FDI: Foreign direct investment; Govt: Government; ULCRA: Urban Land Ceiling Regulation Act Note Cement availability is equal to cement supply plus imports less exports.



Demand drivers Cement demand is primarily derived from housing (60-65 per cent), infrastructure (20-25 per cent), commercial construction (10-15 per cent) and industrial segments (5-10 per cent). Demand has grown at a healthy pace of over 8.5 per cent (CAGR) during the last 5 years on the back of strong demand registered in its end-user segments. Housing Housing accounts for a major portion of total domestic cement demand - approximately 60-65 per cent. Housing activity has remained buoyant during the past few years due to the government�s favourable housing policies such as tax incentives and higher plan allocation. The growing middle class along with rising income levels significantly contributed towards the growth in the housing segment. Infrastructure Increased government focus on infrastructure development is expected to further propel cement demand, as more infrastructure development is required to sustain a GDP growth rate of above 7.5 per cent. The allocation towards development has increased over the years, leading to higher demand for cement.

Figure 4: Infrastructure spending

-

500

1,000

1,500

2,000

2,500

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

(Rs bn)

Power Roads Telecom Airports Irrigation Ports Railways Urban infrastructure


Commercial construction The commercial construction sector can be divided into retail, office space, hotels and other civil structures such as hospitals, multiplexes and schools amongst others, all of which are witnessing strong growth. This directly translates into healthy cement demand. The organised retail industry in India grew at a healthy pace of over 28 per cent in 2006-07 on the back of the influx of large domestic and international conglomerates looking to tap the retail opportunity and capture a larger market share. The size of the total organised retail market was estimated at around Rs 679 billion in 2006-07, which is expected to increase at a healthy pace.


Also, with India emerging as an important back-office destination, large global companies are setting up facilities in the country. Construction of commercial complexes and office spaces have increased in most large cities such as Mumbai, the national capital region (NCR), Chennai, Bangalore, Pune and Hyderabad. In the IT and ITES space as well; there are sizeable investments being made by domestic and global IT companies, which is contributing to the growth in construction activity, and thereby, increasing the offtake of cement.

Industrial investments The strong growth in India has resulted in operating rates peaking in industries such as steel, aluminium, textiles and petrochemicals. These industries have announced expansion projects to address growing demand, which are at advance stages of implementation, leading to higher intake of cement. End-users The main purchasers of cement are the government, institutional buyers and retail buyers. Government The government obtains cement at competitive prices due to its purchase process. The government buys cement through two routes - direct tenders or purchase through the Director General of Supplies and Disposals (DGSAND). The DGSAND receives cement rates from various cement companies, selects the vendor, and distributes it amongst government agencies registered with DGSAND. The government gets 60 per cent of its total requirement through the direct tendering process and the remaining 40 per cent through DGSAND. Institutional buyers (other than the government) Institutional buyers like builders buy cement from either cement companies or wholesalers. Bulk purchases are Rs 10-15 lower per bag than retail purchases. Typically, the civil engineers and contractors decide on the variety and brand of cement to be purchased. Retail buyers Retail buyers include the housing segment, which procures from retailers as they have low requirements. Consequently, retail buyers have less pricing flexibility than institutional buyers. In the case of retail buyers, the mason decides the variety and brand of cement to be purchased.


Chart 2: Cement � Factors affecting domestic supply

Domestic supply

Supply from existing large/mini cement units

Supply from additions

(new/expansions)

Cement/clinker exports

Cement imports

Operating rates

Operative installed capacity

Capacity added

Operating rate(new units are capable of operating at 75 per

cent, 80 per cent and 100 per cent during the first 3 years of operation)

Landed cost of imports

Domestic prices

Technology

Maintenance related shut-downs

Producer efforts to rationalise supplies

Aggregate installed capacity

Non-operational capacity

Domestic demand-supply

Availability of finance

Seasonality

Demand-supply in the export destination

International cement/clinker prices

Facilities, such asships/captive jetties

Customs duty

Demand-supply of cement exporting

countries

Exchange rate

Port handling facility


Supply in the cement industry is influenced by factors such as demand growth and the level of consolidation in the region. Currently, the industry�s capacity utilisation has been at around 95 per cent, thus indicating strong demand.


Brief on the cement industry Evolution of the cement industry The cement industry is a core sector and one of the keys for the country�s growth. (Cement is one of the most basic construction materials, and hence, an essential item for the infrastructure development.) Cement production commenced in India as early as 1914. The first cement unit was set up at Porbandar in 1914 with a capacity of 1,000 tonnes per annum. The industry�s installed capacity as of March 2008 was 198 million tonnes.

The growth of the cement industry, however, has been uneven with the majority of capacity additions taking place only during the last decade. Government regulations stunted the growth of the industry - in the past, the government regulated the industry through licencing, price and distribution controls. The removal of these controls resulted in rapid progress in terms of new capacity creation and higher production, which saw the country move from cement scarcity to a surplus position. India currently ranks as the second largest cement producer in the world. The evolution of the cement industry in India can be broadly classified into three periods - the period up to partial de-control (up to 1982), the period up to total de-control (1982-89) and the period after total de-control (after 1989 to date). The following table summarises the events in the cement industry: Table 3: Events during the period of government control Period Events

1942 Free on rail (FOR) destination price of cement fixed on a cost-plus basis.

1946-1952 Cost of production of ACC used as a basis for fixing cement prices. Freight

equalisation system introduced simultaneously.

1958 Introduction of three tier retention price scheme, whereby retention prices are

decided based on the age of the plant and technology employed.

Jan-66 Price and distribution controls lifted.

Jan-68 Price and distribution controls re-imposed.

Apr 1969 - May 1979 Period of single price regime; total distribution control.

Cement industry grew at around 4.0 per cent during this period as against the

high growth rates in the past.

Sep-77 Government guarantees 12 per cent post-tax return on the net worth of new

cement companies.


Table 4: Events during the period of partial de-control Period Events

Feb-82 Companies allowed to sell 33 per cent of their production in the open market,

while price and distribution controls enforced for the remaining production.

1985-86 Proportion of cement for free market sale increased to 50 per cent.



Table 5: Events post de-control Period Events

Mar-89 Price and distribution controls removed completely.

Jul-91 Industrial licencing abolished for new capacities.

Apr-08 Government banned cement exports.

Jun-08 Ban on the cement exports partially lifted and the exports

from the Gujarat ports are allowed.



Types of cement Cement is classified into various categories based on its composition and specific end-uses. Primarily cement is classified into portland, blended and speciality cement. Portland cement Portland cement is the most common type of cement in general usage, as it is a basic ingredient of concrete. A mixture of limestone and clay is ground and burnt at a very high temperature to form clinker. The clinker is ground to a fine powder with the addition of gypsum (up to 5 per cent) to form portland cement. The essential components of portland cement are lime, silica, alumina and iron oxide. There are different types of portland cement, which differ based on their chemical composition; however, the manufacturing process remains the same. Portland cement consists of tricalcium silicate or C3S, dicalcium silicate or C2S, tricalcium aluminate or C3A, and tetracalcium aluminoferrite or C4AF. [C = CaO - calcium oxide (calcia), S = SiO2 - silicon dioxide (silica), A = Al2O3 - aluminium oxide (alumina), F = Fe2O3 - iron oxide (ferric oxide)]. The varying proportion of these constituents imparts diverse properties to the different types of portland cement. Ordinary portland cement In ordinary portland cement (OPC), C2S accounts for 20-60 per cent of the total composition, C3S 20-60 per cent, C3A 0-16 per cent and C4AF 1-16 per cent. Although OPC is suitable for all types of civil engineering works, it cannot be used for mass concrete work like multi-storeyed buildings. Moderate heat portland cement

OPC, when mixed with water and allowed to hydrate, generates a considerable amount of heat, which is not suitable for mass concrete work. However, the heat generated during hydration can be lowered by altering the chemical composition of the cement. Such cement is called moderate heat portland cement (MHPC). This cement is more resistant to sulphate as compared with OPC. Rapid hardening cement Rapid hardening cement (RHC) is a special-purpose cement used for urgent repairs (like airport runway repairs). RHC or high early strength cement develops compressive strength within 24 hours, as compared with 28 days in the case of OPC. The average particle size is smaller in this cement due to which it gains strength more quickly than ordinary cement. It generates more heat in the early stages and can be useful in cold weather concreting. However, its principal use is in manufacturing pre-cast concrete units where the high early strength of the concrete permits quick re-use of moulds and formwork.



Sulphate-resistant cement The compressive strength of concrete, which is made using OPC, MHPC and RHC, deteriorates on account of continued contact with soil and water, which are rich in sulphates. Sulphate-resistant cement (SRC) is a type of portland cement, which contains less than 5 per cent tricalcium aluminate (C3A). It is used for marine construction or in places that are rich in sulphates. Oil well cement

Oil wells are drilled at depths of 500 metres or more. After the drilling operation, the wells are lined with an annulus made of cement concrete. Since the temperature at these depths is over 1,000 degree Celsius (0C), if portland cement grout is pumped into the well, it would set instantly and obstruct the 'cementation' or setting process. Hence, the cement used for lining oil wells should be able to withstand setting time by up to 40-120 minutes, and thereafter, set within 24 hours. In addition, it should have a strength of over 100 kg per cm2. In oil well cement (OWC), the percentage of tricalcium aluminate (C3A) is reduced to less than 3 per cent of its total composition in order to control/modify the setting time. In India, according to the Bureau of Industrial Standards (BIS), there are nine types of OWC, depending on the type of construction and the specific application. White cement

White cement is portland cement made from specially selected raw materials, usually pure chalk and white clay (kaolin), containing very small quantities of iron oxides and manganese oxides. The chemical complexes formed with iron oxide present in the cement raw meal give OPC cement its grey colour. However, if the proportion of iron oxide is reduced to less than 0.4 per cent, cement becomes white in colour. Iron oxide improves the burning of raw meal; however, it is difficult to burn the raw meal for white cement, on account of the low content of iron oxide. As white cement has all the physical properties of OPC, it can be used in all types of construction where OPC is used; however, its usage is limited, as it is more expensive than OPC. Blended cement In order to produce blended cement, certain natural or man-made compounds such as pozzolona, slag and sandstone are mixed with portland cement clinker and ground finely. Blended cement is more suitable for certain applications as compared to portland cement. Blended cement is also called low-heat cement as it generates lesser heat during hydration compared with OPC. This cement is used for large concrete works such as dams and piers. Blended cement minimises the risk of developing contraction cracks on account of the lower heat of hydration. Portland blast furnace slag cement

Blast furnace slag (a waste product of the pig iron furnace) can be used to produce slag cement. However, blast furnace slag does not have cementitious properties if it is cooled slowly and ground finely; hence, it is cooled quickly or quenched and subsequently ground to acquire cementitious properties. The quenching process is called 'granulation', and the slag is known as granulated blast furnace slag.


Granulated blast furnace slag is mixed with lime or OPC clinker and ground to form slag cement. Portland blast furnace slag cement (PBFSC) is the most widely used slag cement, and contains 25-65 per cent of slag, 5-6 per cent of gypsum and Portland cement clinker. Apart from having OPC properties, PBFSC has other properties such as lower heat of hydration and higher sulphate resistance. Super sulphate cement, another type of slag cement, is prepared by grinding granulated slag, anhydrite and clinker in the proportion of 70:15:15. This cement is more sulphate-resistant than PBFSC or SRC. Portland pozzolona cement

Pozzolona is a clay (natural or synthetic), which when ground with lime/clinker and mixed with water, produces cementitious compounds. Highly reactive pozzolona or fly ash is mixed with Portland cement clinker and ground with 5-6 per cent gypsum to form Portland pozzolona cement (PPC). PPC contains up to 25 per cent pozzolona or fly ash. It has a lower heat of hydration as compared with OPC, and is also relatively more resistant to sulphates. As a standard, fly ash can be used to the extent of 15-35 per cent. It has the physical properties of OPC, and hence, can be used for all types of construction work for which OPC is used. However, in PPC the shrinkage is lesser as compared with OPC. Masonry cement Most varieties of cement when mixed with sand and water get converted into mortar, which is coarse and not water retentive. Masonry cement is a more plastic mortar and is used for masonry work such as laying, binding and plastering bricks. Portland clinker is ground with limestone, sandstone or granulated slag in the proportion of 1:1 to produce masonry cement. Some quantities of hydrated lime and/or a plasticiser are added to impart higher plasticity. Speciality cement Speciality cement has several special properties and is used in specific applications. Expansive cement/shrinkage compensated cement Concrete prepared from portland cement or blended cement shrinks on setting and hardening. Cement should expand on setting and hardening when it is used for pre-stressed, pre-fabricated concrete products and as a grout for filling cracks. This cement is prepared by increasing the proportion of gypsum and aluminous cement clinker to Portland cement clinker while grinding. Super high strength cement

This type of cement is required for urgent repairs of important concrete structures like foundation pillars. It is prepared in jet mills by finely grinding portland cement clinker with a higher proportion of tricalcium silicate. The tricalcium silicate content is around 60 per cent of the clinker and its fineness should be at least 600 kg per cm2.


Alinite cement A special low-energy cement process has been developed to manufacture cement, in which over 5 per cent calcium chloride is added to the raw meal while grinding. As the burning point of raw meal is lowered significantly, less fuel is required for burning. The calcium chloride is vapourised and condensed in the kiln dust, which is re-circulated. A part of the chloride gets attached to the clinker components and increases its compressive strength. This process is still in the development stage. However, it would be viable if sufficient by-product waste and calcium chloride is available at low cost.

Product mix The product mix in the cement industry has changed significantly over the last 5 years. While OPC accounted for a major portion of the cement production, recently cement producers have shifted to higher production of blended cement. The following graph shows the share of various types of cement in the overall production in 2006-07 vis-à-vis 2002-03. Figure 1: Variety-wise cement production

As on March 2002-03

PPC39

PBFS10

OPC51

(per cent)As on March 2006-07

OPC31

PPC61

PBFS8

(per cent)


The proportion of blended cement has risen from 49 per cent in 2002-03 to 69 per cent in 2006-07, primarily due to better margins offered in PPC, growing acceptability in the market and less pressure on the natural reserves of limestone.

Ready-mix concrete Introduction Ready-mix concrete (RMC) is a mixture of cement, aggregate, water and other ingredients, which are weighed and batched at a centrally located plant and directly placed at the construction site without undergoing any further treatment. The operations are carried in factory-like conditions and are completely automated. Hence, RMC is a value-added, semi-finished product and results in superior quality concrete.


RMC is used extensively in many countries such as the US, Australia, New Zealand and England, where 70-95 per cent of all the concrete comes from central batch plants. In India, a few large projects have operated RMC plants for several years. However, the first commercial RMC plant was set up in 1992 at Pune. Demand The main factors that could influence domestic demand for RMC include: • Consumer (contractors and engineers) education by RMC suppliers. • Competitive pricing of RMC could lead to higher offtake if the price difference between RMC and site mixed

concrete (SMC) is reduced. • Emergence of high cement consuming centres around metro cities. • Increasing quality consciousness of the user segment. • Entry of multinational construction agencies and foreign consultants. • Entry of private players in infrastructure projects. (RMC demand from sub-contractors is likely to improve if

the government sub-contracts infrastructural construction projects on a turnkey basis to contractors who are responsible for material supplies.)

• Increased supply of the product would result in higher offtake. At present, there are very few RMC suppliers in India.

Reasons for the slow growth in RMC consumption The initial controls on cement pricing and distribution hindered the RMC business, owing to the shortage of cement. (Cement is an important component of RMC.) Apart from having easy access to cement, RMC also requires technical competence to manufacture the concrete (to ensure mixes with the desired properties). Presently, the usage of RMC is restricted because of its higher price vis-à-vis SMC and the inadequate facilities at construction sites to utilise RMC effectively. Also, in India, labour is less expensive as compared with RMC; as a result, most medium and small-scale builders opt for SMC. Logistics is another hurdle for RMC as it is difficult for RMC trucks to pave through small and narrow roads where the building is being constructed. These agitator trucks being bulky, occupy a large part of the road, causing traffic bottlenecks. This apart, the additional taxes on RMC prove to be an impediment. Also, new marketing initiatives need to be undertaken because either users are unaware of the product or are not convinced of its benefits. This is important, as RMC supply should match potential demand. If supply is less than demand, then the potential business is lost. However, if supply exceeds demand, the per unit cost of concrete increases due to idle capacity. Moreover, RMC is considered economically viable only if it is sold within a radius of 30-40 km from the plant. If the distance between the plant and construction site is more, the wet concrete would harden in the mixer itself. The only positive development has been the mandatory usage of RMC in time-bound projects.

Process Cement is stored in silos, and aggregates (sand and stone chips) are stored in stockpiles or hoppers. These are then transported to an elevated tower for batching. The batched materials are then fed into the mixer, where they are mixed at a regulated speed, in order to obtain the concrete mix of the desired quality.


Plant and equipment A typical RMC facility includes a central batching and mixing plant, revolving transit mixers, and concrete pumps and conveyors. The following operations are carried out at the central batching and mixing plant: • Storage of materials • Weighing as per the required proportion mix • Discharging the weighed materials to the mixer • Mixing Batching and control operations are completely automated. A batching and mixing plant can store around 100 mixes. (A mix is a particular proportion of cement and aggregate.) The revolving transit mixer could be a truck mixer or truck agitator, which is used to transport RMC to the construction site. The mixer continuously agitates the mix to prevent early stiffening. Concrete pumps and conveyors are used to pump concrete at the construction site. The daily output of a RMC plant is not directly dependent on the capacity of the batching unit, instead, it is influenced by the per truck capacity, number of trucks and the daily number of trips. The daily number of trips is determined by the transport time, which depends on the distance between the RMC plant and construction site, transportation bottlenecks and road conditions. Typically, three round trips are undertaken daily.

Types of RMC There are two types of RMC • Central mixed RMC: The mixing is done at the central plant. The mixed concrete is transported in an agitator

truck, which revolves slowly, in order to prevent segregation and early stiffening of the mix. In the majority of developed countries, 70-95 per cent of all concrete comes from central batch plants.

• Transit mixed RMC: The materials are batched at a central plant. However, they are mixed in a mixer truck, at the site, or mixed immediately before the concrete is discharged.

Advantages of RMC RMC offers certain advantages over SMC: • Quality control: RMC ensures quality (in terms of strength, durability and performance), as all the

constituents are weighed in the required proportions and mixed at the RMC unit. This is especially useful for projects that require high quality control. Moreover, the quantity of additives (fly ash, plasticisers and retarders) can be monitored in order to ensure superior quality of the cement.

• Faster speed of construction: This is due to the continuous mechanised operations, which is especially important for large, time-bound construction projects.

• Eco-friendly: RMC is considered to be a 'clean product' due to the absence of used cement bags and dust at the construction site.

• Convenience for congested sites: RMC eliminates the need to stockpile raw materials required to make concrete at the project site.

• Lower wastage: Cement wastage is minimised due to bulk handling and storage.


• Simplifies procurement and storage of raw materials: The user is relieved of logistics of supply and storage of

multiple raw materials at the site. • Reduces manpower requirements: Manpower expenses are reduced due to lower labour and supervisory

requirements. • Range of concrete grades: The RMC plant has the flexibility to manufacture a wide range of concrete due to

computerised batching process. • Correct proportions of ingredients: Computerised batching operations result in accurate proportions for the

various raw materials.

RMC market in India RMC is still in at a nascent stage in India, as only 5-10 per cent of cement production is converted into RMC, as against 70 per cent in developed countries. Reportedly, the growth of RMC is predominantly driven by the metro cities. Bangalore is the largest market for RMC owing to the several construction activities in the city (IT campuses, flyovers and government sponsored infrastructure projects). Bangalore continues to lead in the consumption of RMC in the country. The high consumption in Bangalore has led cement majors like ACC Ltd, Ready Mix (India) Ltd, Grasim Industries and L&T Concrete to set up RMC plants in the city. Essential requirements to set up a new plant • Adequate water supply at the plant�s site. If potable water is not available in and around the location of the

plant, water has to be transported from distant locations, thereby further pushing up costs. • Concrete consumption around the site, as the concrete has to be transported.

Players As on March 31, 2007, the large players in the domestic RMC market were L&T Concrete, RMC Readymix (India) Pvt Ltd, Grasim Industries and ACC Ltd with a market share of 29, 15, 13 and 8 per cent, respectively. These players account for around 65 per cent of the total market share in India. In May 2008, Lafarge bought out L&T Concrete for Rs 14 billion. Lafarge would be buying out 58 concrete plants of L&T Concrete, which have an estimated volume of 4.1 million metric cubic capacity. Earlier in the year, Lafarge started its first RMC operations in Raipur, Chattisgarh. White cement Introduction

White cement has all the physical properties of OPC (is also called grey cement), and can be substituted for OPC. However, its use is limited to tiles and flooring, as it is more expensive. White cement is produced under a fixed manufacturing process, with smaller quantities of iron and manganese. Although white cement and grey cement have similar physical properties, they cannot be produced in the same plant.


OPC is grey in colour due to the chemical complexes formed with iron oxide present in the cement raw meal. Moreover, haematite, bauxite and limestone are heated using coal, which gives cement its dark colour. When the proportion of iron oxide in cement is reduced to less than 0.4 per cent, cement turns white in colour. Thus, the use of haematite is minimised for manufacturing white cement, and it is replaced by pure silica or sand. Also, the clinker for white cement is burnt using fuel oil instead of coal. Special cooling techniques are also used to manufacture white cement. White cement in India

In India, white cement is primarily used as filler between ceramic tiles or for decorative purposes. For cement to retain its whiteness, the ash content in coal has to be minimal. However, as the ash content of domestic coal is high, gas or oil is used as a fuel to manufacture white cement. The white cement market in India is small as it is nearly three-times expensive than grey cement. White cement is expensive because the usage of pure silica adds to the production cost. This apart, freight costs are higher owing to limited supply and spread-out markets. The excise duty on an ad valorem basis and higher temperature (requiring more oil) further adds to production costs.

Players Grasim and JK Synthetics are the two major players in the white cement market. Grasim's white cement plant at Khangar, Rajasthan is the largest cement plant in India. The plant�s total installed capacity of white cement is 1.1 million tonnes.

Table 1: White cement � Capacity and production Grasim 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Installed capacity 000 tonnes 400 400 400 400 475 475 475

Production 000 tonnes 252 268 310 311 315 350 365

Capacity utilisation % per cent 63 67 78 78 66 74 77

Travancore 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Installed capacity 000 tonnes 30 30 30 30 30 30 n.a.

Production 000 tonnes 30 19 22 27 23 24 n.a.

Capacity utilisation % per cent 100 65 75 90 77 80 n.a.

JK Cement 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Installed capacity 000 tonnes 300 300 300 300 300 350 400

Production 000 tonnes 186 184 200 216 124 227 249

Capacity utilisation % per cent 62 61 67 72 41 65 62

n.a.: Not available



Raw materials The essential raw materials to manufacture cement is limestone or chalk, which is used for producing clinker. Clinker, the intermediate product, is the key ingredient of cement and is a raw material for manufacturing cement with additives such as bauxite, iron ore and gypsum. Depending on the grade of the limestone, additives such as silica, alumina and iron ore are added to achieve the product�s quality. The required grade, constituting lime, should be 40-41 per cent in the limestone, and accordingly the additives are added. Fuels like coal, pet coke, natural gas, lignite or oil can be used. The industry has even begun considering the usage of alternate fuels such as agro wastes, waste oils, animal meal and rice husk owing to the shortage of fuel like coal and rising fuel prices. The choice of fuel depends on its availability, cost, the efficiency level and process employed. The general process of manufacturing cement from mining limestone from the quarry to the final product is as follows: Limestone benching, drilling and blasting To make cement, it is necessary to have the required minimum constituents in limestone. For that the company takes a sample of the limestone at various levels in the form of steps, which are called benches and determines the quality assurance, as quality varies, and compares it with the standard required. This is called limestone benching. Limestone benching is done so that additives can be added accordingly for giving the basic characteristics. Once the limestone is benched, it is drilled and broken into small pieces. This is known as blasting. Blasting is of two types � primary blasting and secondary blasting. Primary blasting is the first stage where the limestone is broken into pieces. If these are not small then a second blasting is done. Usually, the pieces are made by primary blasting. After blasting, the excavation process takes place, which is also known as limestone raising, where the limestone is taken from the quarry to the factory for crushing. Crushing Limestone is crushed and reduced to a size suitable for storage and blending. The raw materials are then ground in a grinder. The size of the crushed material required depends on the type of the grinding mill. Generally, crushing is done in a primary and a secondary crusher. The primary crusher could be a fully mobile and self-propelled unit operating near the quarry face, a semi-mobile unit moved at infrequent intervals, or a static unit. The secondary crusher is a static unit and is used if required. Pre-homogeneous stage

Crushed limestone is packed, as this is important while transporting the crushed limestone, and transported onto the reclaimer stage. This is the pre-homogeneous stage where additives like silica, alumina and iron ore are added to spread it in such a way so as to make it of uniform quality. This helps in reducing the variations in the chemical characteristics of limestone.



Raw mill grinding Reclaiming is followed by raw milling, where the raw-meal is grounded into a fine powder to be burnt in the kiln. The raw meal must be finely ground so that it reacts fully on passing through the kiln. There are various types of milling systems such as vertical roller mill (used for bigger capacity) and ball roller mill (used for smaller capacity). The selection of a particular mill is influenced by the type of raw material available, power consumed and the project outlay. Modern milling systems use separators/classifiers, which separate the fine product and return the coarse materials to the grinding unit. Blending and storage Raw milling is followed by blending and storage. Blending is done in silos. Typically, two or more silos are used in a series or in parallel with a total capacity of at least one day's raw-meal feed. The raw-meal is continuously circulated and blended in the first silo; it then passes to the second silo for further homogenisation (perfect blending and mixing of various constituents). Alternatively, blending and storage could be combined in a single large silo wherein the blending occurs on extraction through a series of orifices at the base, with limited fluidisation. Pre-heating stage and kiln After the raw meal is blended, it is heated in a rotary kiln. In modern cement plants, before the heat treatment in the kiln, the raw meal is heated in a pre-heater or/and a pre-calcinator system in order to ensure a higher degree of burning and enhance the product�s quality. The vertical cyclone chambers are used through which raw material passes through the kiln and the hot gases are used to pre-heat the material as they swirl through the cyclones which rises more then 200 feet from the kiln. The kiln is a refractory, lined with refractory bricks for insulation throughout its high-heat zones. The kiln is cylindrical and marginally inclined to a horizontal position (typically with a gradient of 3-4 degrees), and rotates at 2-4 revolutions per minute. It is an important constituent of the cement-making process. The solid material, which passes down the kiln while it rotates, flows in the opposite direction to the flame. Gas, oil or pulverised coal is used to ignite the flame at the lower or front end of the kiln. The various processes occurring in the kiln include evaporation of water, thermal decomposition of clay minerals (at 300-650 0C), calcite formation (at 800-950 0C), liquid formation (at around 1,250 0C), and the formation of clinker (at over 1,400 0C). The clinker from the kiln passes into a cooler, where convective air flow cools the clinker for subsequent handling and grinding. The heat is reclaimed and recycled to the kiln as secondary combustion air. Other gases reclaimed from the suspension pre-heater (SP), pre-calcinator systems, and the cooler are used as primary combustion air in the kiln. The excess air from the cooler is cleaned and released into the atmosphere.

Process profile There are four processes of heat treatment - dry process, wet process, semi-wet process and semi-dry process. Till the 1970�s, the wet process technology accounted for a major share of the cement industry . But since the early 1980�s, the use of the dry process increased significantly.


In 1950, there were only 33 kilns in India, out of which 32 were wet-based and 1 was running on the semi-dry process. In 2006, there were 162 kilns, out of which 128 were based on the dry process, 26 on wet process and 8 on semi-dry process. Figure 1: Process profile

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Dry process The dry process is commonly used across the world to manufacture cement. In the dry process, the kiln feed has moisture content of around 0.5 per cent. The feed is fed into a suspension pre-heater, which consists of a system of cyclones. In the cyclone system, the kiln feed is re-circulated and heated by a mixture of counter-current and co-current flow of exhaust gases coming from the kiln. The gas temperature at the pre-heater inlet and exit are typically around 500C and 3500C, respectively. At the kiln inlet, the temperature is above 7500C for solids and 1,2000C for gases. Alternately, the ground raw meal is fed into a pre-calcinator. In a pre-calcinator, the raw meal is partly calcined (by up to 90 per cent) by burning over 50 per cent of the total fuel requirement. (Calcination is de-carbonation of the calcium carbonate content in the ground raw meal. De-carbonation can be achieved in less than a minute in a pre-calcinator.) The temperature of the kiln feed entering the kiln could be above 9000C. The rotary kiln, in which the remaining heat treatment occurs, is shorter, as compared with that used in the wet process. The length/diameter ratio (L/D) is 15-18. The maximum temperature that the material attains on passing through the hottest zone of the kiln is around 1,4500C. The nodules of clinker formed are in a partially molten state. The surface temperature of the clinker reduces to around 1,1000C, before it passes on to a cooler. Wet process In the wet process, the kiln feed has moisture content of 30-40 per cent and de-flocculants to enable pumping. The slurry feed is fed directly through the upper end of the kiln. Generally, the kiln has a diameter of around 6 metres and is around 200 metres in length. Steel chains are hung in the dry zone near the upper end of the kiln to transfer heat from the hot gases to the moist slurry feed. Towards the end of the chain (located at the upper end of the


kiln), the slurry feed forms nodules, which are dried and partly de-carbonated. Further down the kiln, the feed is fully de-carbonated to form clinker. Semi-wet process The semi-wet process is a modification of the wet process. The slurry is dehydrated in a filter press to form a cake with moisture content of around 20 per cent. The kiln feed is fed directly into a long chained kiln or a pre-heater and a short kiln. (The pre-heater could be a moving Lepol grate or disintegrator cyclone system.) Semi-dry process In the semi-dry process, the raw meal is pre-treated as in the dry process. In an inclined rotating dish or drum, the raw meal is made into nodules of around 15 mm spheres, with moisture content of around 12 per cent. The nodules are then fed into a moving grate, where partial drying, pre-heating and partial de-carbonation takes place prior to the kiln stage. The subsequent treatment is similar to that in the dry process. Cement grinding Cement is produced by grinding cooled clinker with gypsum (hydrated calcium sulphate). Either naturally available gypsum or chemically manufactured gypsum is used. Gypsum is added to regulate the setting time of cement. The clinker is ground in a ball mill, which is a tubular mill partly filled with steel balls. Vertical roller mills (VRM) have provided a breakthrough in the area of grinding. The VRM draws 20-30 per cent less electricity compared to ball mill system, apart from its higher drying capacity. Another breakthrough that has come in the cement industry is the application of the high pressure grinding rolls (HPGR). HPGR has been widely used in the Indian cement industry for upgrading the existing ball mill systems. There are two basic cement grinding systems - open circuit and closed circuit - which are used in HPGR. The open circuit system is found in old cement plants and mini cement plants. In this system, the material is not re-circulated after passing through the grinding mill. The mill diameter is up to 2.5 metres, with a L/D ratio of around 5.5. Modern cement plants employ the closed circuit system. In this system, the material from the grinding mill is taken to an air separator or a classifier; here it is separated, based on the particle size into a 'fine product' stream and a 'coarse reject' stream. The coarse reject stream is returned to the grinding mill for re-grinding. The mill diameter is up to 4.5 metres, with a L/D ratio of around 3. The coarse reject stream is re-circulated at a rate similar to that of the clinker feed. The closed circuit grinding system is more efficient than the open circuit system on account of the re-circulation of the coarse reject feed (resulting in lower wastage) and lower power consumption (especially for higher compression cements). However, for OPC-33, there is no significant energy saving, since power is required to operate the air separator and ancillary equipments, such as elevators. The overall power consumption is 35-40 kWh per tonne of cement for both open and closed circuit grinding systems. In the case of cement with higher compression strength such as rapid hardening cement (400 kg per cm2), OPC-43 and OPC-53 grades, 3-5 per cent of energy is saved as compared with the open circuit grinding system where the energy consumption is 55 kWh per tonne.


The following chart illustrates the cement manufacturing process, right from raw material quarrying up to the bagging of the cement. Chart 1: Manufacturing process of mini-cement plants

Stockpiles

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Manufacturing process of mini-cement plants In India, most mini-cement plants use the vertical shaft kiln (VSK) technology, which is different from the technology used by the large cement plants. The VSK technology uses the semi-dry process, which involves: • Crushing of limestone and other raw materials to a size of up to 12 mm. • Proportioning of the raw material and fuel (in general, coke breeze) based on the raw meal composition. • Preparing nodules by adding water to the raw meal in a pan-type noduliser. • Feeding the nodules to the vertical shaft kiln. In the kiln, the nodules are dried, calcined, sintered and cooked

as the nodules travel down the kiln and get converted to clinker. • Grinding the clinker and gypsum in a grinding mill to obtain ordinary portland cement.

Use of alternate fuels The cement industry is thermal energy intensive. The average heat generated during the process is 3,200-3,300 kilo joules per kg. Burning fossil fuels, such as pulverised coal/oil in the rotary kiln, generates high-grade heat. However, as these fuels are becoming progressively expensive and difficult to procure, there is an increasing need for alternate fuels for kilns. However, alternate fuels like agro wastes, waste oils, animal meal and rice husk are being tested, and on the basis of the method used for manufacturing, costs effectiveness, availability will be seen and subsequently implemented. Usage of fly ash and slag in blended cement In the last few years, blended cement has increased in popularity over OPC due to advantages such as increased production, low cost of production and less pressure on natural minerals like limestone. Further, all concerns regarding the quality and properties of blended cement have been eroded as it is being accepted all across India. This increased acceptance is a positive sign for the cement industry as they can produce more cement with the current capacity by increasing their blending ratio. Typically, there are two types of blending materials that are used by the cement industry: Fly ash

Fly ash is a finely divided residue resulting from the combustion of pulverised bituminous coal or sub-bituminous lignite in thermal power plants, which consists of inorganic mineral constituents of coal and organic matter that are not fully burnt. It is generally grey in colour and refractory in nature. Owing to its pozzolanic properties, fly ash can be mixed with clinker to form portland pozzolana cement (PPC). When fly ash is added to cement it improves its strength, durability and reduces emission of carbon dioxide but there is a limit to which cement manufacturers can use fly ash per tonne of cement as properties of cement starts changing beyond a level. This limit has been defined by the BIS as 35 per cent.


Slag After fly ash, slag � produced as a waste material by steel plants - is the next best option for blending material. Slag is a non-metallic product consisting essentially of glass containing silicates of lime and other bases, and is obtained as a by product in the manufacture of pig iron in blast furnace and electric furnace. Granulated slag is used in the manufacture of portland slag cement (PSC). Slag cement can be used for all plain and reinforced concrete constructions, mass concreting structures such as dams, reservoirs, swimming pools, river embankments and bridge piers amongst others. It is beneficial where low heat of hydration and resistance to alkali-silica reaction are required for structures in harsh environments where chemical and mildly acidic waters are encountered (where the use of OPC is not recommended), for marine constructions, dykes and wharves where there is sulphatic water. In short, PSC can be used wherever OPC is used. Slag adds strength and durability to concrete. Slag cement also improves concrete's plastic properties such as workability and finish. From an environmental perspective, its use in concrete makes concrete �greener�; not only is it a recycled material, but, for each cubic yard of concrete in which it replaces portland cement, slag cement significantly reduces energy consumption and greenhouse gases emitted in the production of concrete raw materials. The upper limit specified by the BIS in case of slag cement is 55 per cent. Although the cement industry has largely tried to be energy efficient industry, there still exists the need for improvement. The cement industry should look at the ways of appropriate pre-blending facilities for raw materials and energy efficient equipments for the auxiliary/minor operations. They should also look at building bulk loading and transportation facilities as well as advance computerised kiln control systems.


Cement, being a high-volume, low-value commodity, cannot be transported over long distances thus making the industry regional in nature. The demand-supply situation in the Indian cement industry varies from region to region - there could be a surplus scenario in one whereas a deficit scenario could exist in another. Also, some regions have the advantage of exporting cement. Therefore, the dynamics vary between regions, and hence it is important to understand the regional dynamics in order to have a comprehensive understanding of the country�s cement industry. North States included: Uttarakhand, Delhi, Haryana, Himachal Pradesh, Jammu & Kashmir, Punjab, Chandigarh and Rajasthan. The demand for cement in the northern region increased at a CAGR 19.3 per cent from 2003-04 to 2007-08. Hence, clinker production (from which cement is derived) rose at a CAGR of 6.7 per cent during the period under consideration. In line with this, capacity grew at a CAGR of 4.7 per cent, leading to high utilisation rates. This translated to an increase in prices across the region. Table 1: North � Capacity/ production/ operating rate mn tonnes 2003-04 2004-05 2005-06 2006-07 2007-08

Clinker capacity 22.1 23.0 23.8 24.4 26.6

Clinker production 20.7 21.9 23.0 23.3 26.8

Capacity utilisation 94% 95% 96% 95% 100%

Source: CMA, CRISIL Research

Key markets and players: The key markets in the northern region are Rajasthan, Punjab and Haryana. Rajasthan is the highest consumption state in the North at around 16.2 million tonnes in 2007-08. The high demand is due to the increase in road construction i.e. projects like concretisation and inter-linking village roads as well as demand from commercial malls and housing. Figure 1: North � Market share (2007-08)

(per cent)

ACC17

Grasim12

Gujarat Ambuja13

JK Synthetics7

Shree Cement13

Birla Corp7

Others31




Top players: Top players in the northern region are ACC, Gujarat Ambuja Cement Ltd (GACL), Grasim, Shree Cement, Birla Corporation Ltd and JK Synthetics Ltd. These players account for over 70 per cent share of the north Indian market, thus making the region reasonably consolidated. Figure 2: North � Domestic market prices

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Demand drivers: The demand in the northern region has been driven by construction of roads in several states, the hydel projects in Himachal Pradesh and setting up of commercial complexes in and around the NCR region. Delhi had been witnessing demand from the metro rail project and infrastructure preparations for the 2009 Commonwealth Games. States like Punjab and Haryana have registered increase in housing demand along with higher government spending on infrastructure facilities in order to attract industrial investments. Cities like Chandigarh, Jaipur, Gurgaon and Noida have been witnessing large scale residential as well as commercial construction.

South States included: Andhra Pradesh, Karnataka, Kerala, Tamil Nadu, Andaman & Nicobar Islands, Goa, and Pondicherry.

The South has large cement capacities in India due to the vast amounts of limestone reserves available in the region. Demand for cement in the region has grown at a rapid pace of 11.4 per cent between 2003-04 to 2007-08.. On the production front, clinker production increased at a CAGR of 8.9 per cent during the same period under consideration, while capacities rose by mere 3.8 per cent, thus leading to a surge in operating rates, which went up from 78.0 per cent in 2003-04 to 95.0 per cent in 2007-08. The strong growth in demand resulted in an increase in prices from Rs 141 per bag of 50 kgs in 2003-04 to Rs 242 per bag of 50 kgs in 2007-08.

Table 2: South � Capacity/ production/ operating rate mn tonnes 2003-04 2004-05 2005-06 2006-07 2007-08






Key markets: Tamil Nadu, Andhra Pradesh and Karnataka have been the key markets in the southern region. In 2007-08, there was thrust on infrastructure and housing, amongst others, that led to a modest cement demand growth of 10.6 per cent (y-o-y) in 2007-08. Amongst various states in the southern region, Andhra Pradesh registered the highest growth in demand i.e. 17 per cent (y-o-y) on account of various infrastructure projects undertaken by the government and private sector. Top players: The top five players in the South are India Cements, Grasim-UltraTech, Madras Cements, ACC and Chettinad Cement. India Cements enjoys the largest market share. However, following Grasim�s acquisition of L&T�s cement plants (now named as UltraTech), both companies are fighting for the numero uno position. The graph below gives the market share of all the major players in southern India.

Figure 3: South � Market share (2007-08)

(per cent)

Others42

Grasim8

ACC8

Madras Cements11

Chettinad Cement6

UltraTech8

India Cements17


Figure 4: South � Domestic market prices

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Demand drivers: Real estate development has augmented cement demand in the southern region. Infrastructure projects like irrigation in Andhra Pradesh along with the upcoming international airport in Chennai and other projects like the Bangalore Metro Rail are expected to contribute towards the strong demand.


East States included: Assam, Bihar, Chattisgarh, Jharkand, Meghalaya, Orissa, Sikkim and West Bengal The eastern region is primarily an industrial belt due to abundant mineral reserves. Demand in the region is primarily on account of industrial activities that are not cement intensive, thus translating to low cement demand. However, demand picked up in 2004-05, mainly due to the increase in housing and commercial construction (IT and ITES projects) activities in West Bengal. Hence, the utilisation rates in this region, which were around 75 per cent during the last 5 years, are the lowest on a pan-India basis. Table 3: East � Capacity/ production/ operating rate mn tonnes 2003-04 2004-05 2005-06 2006-07 2007-08





Key markets: The high consumption states are West Bengal, Orissa and Bihar. Demand growth in West Bengal has been around 6 per cent CAGR (2003-04 to 2007-08) whereas Chattisgarh - a natural resource rich state - rose at a CAGR of around 28 per cent during the same period. The largest supplier of cement is Chattisgarh while the largest consumer is West Bengal. However, the central region also meets some of eastern region�s demand. In 2007-08, the production in Chattisgarh was 9.8 million tonnes while consumption was 3.8 million tonnes, whereas in West Bengal, the production was around 3.5 million tonnes and consumption around 7.2 million tonnes. Top players: The French player, Lafarge enjoys the largest market share in the region followed by ACC. The other players are Century Textiles and UltraTech. The eastern region enjoys the highest level of consolidation in the country with the top five players accounting for close to 70 per cent of the market share.

Figure 5: East � Market share (2007-08)

(per cent)

Others25

UltraTech13

Lafarge19

Gujarat Ambuja9

ACC17

Century Textiles10

Grasim7



Figure 6: East � Domestic market prices

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Demand drivers: West Bengal has been witnessing increasing housing demand along with commercial complexes (IT and ITeS projects) followed by Jharkand and Orissa, which are witnessing increased industrial and infrastructural projects along with the canal lining project and other small industrial projects in Chattisgarh.

West States included: Maharashtra and Gujarat The demand for cement in the western region increased at a CAGR 9.4 per cent during the last 5 years. However, due to a higher base, clinker production rose marginally at a CAGR of 1.2 per cent from 2003-04 to 2007-08, and capacity additions at a CAGR of 0.9 per cent. This resulted in operating rates hovering above 90 per cent in the last 5 years, indicating strong demand in the region.

Table 4: West � Capacity/ production/ operating rate mn tonnes 2003-04 2004-05 2005-06 2006-07 2007-08





Key markets: Maharashtra, which is the highest consuming state (around 13 per cent of the total domestic demand in 2007-08) in the country, has registered a demand growth of 8.8 per cent (CAGR) in the last 5 years, whereas the demand growth in Gujarat was higher at a CAGR of 10.5 per cent during the same time period. Top players: Both, the Grasim-UltraTech group and ACC-GACL group, have a presence in the western market, with market share of 31 and 29 per cent, respectively. Other key players in region are Kesoram Industries, Orient Cement and Sanghi Industries. The market share of the major players is shown in the graph below.


Figure 7: West � Market share (2007-08)

Others29

Kesoram Inds7

ACC8

Grasim9

Gujarat Ambuja20

UltraTech22

Sanghi Industries Ltd5

(per cent)


The western region has the advantage of exporting excess quantity of cement to regions like the Middle East, which is witnessing strong growth rates due to the construction boom. However, in April 2008, to reign in rising domestic cement prices, the government banned cement exports indefinitely which was revoked in June 2008.

Figure 8: West � Domestic market prices

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Demand drivers: The western region has been experiencing robust commercial (complexes and shopping malls) and housing demand. Cities like Pune are becoming hubs for IT and ITES parks, and commercial complexes. Ahmedabad has also been witnessing an increase in investments, which is creating strong demand for cement.


Central region States included: Uttar Pradesh and Madhya Pradesh Madhya Pradesh (MP) has large limestone deposits in the Satna cluster. The demand for cement has increased at a CAGR of 7.7 per cent from 2003-04 to 2007-08. Hence, clinker production rose at a CAGR of 5 per cent in the same period under consideration. There are no limestone reserves in Uttar Pradesh (UP). But being one of the largest markets, players have set up grinding units in the state as companies prefer to have grinding units close to consumption centres. Table 5: Central � Capacity/ production/ operating rate mn tonnes 2003-04 2004-05 2005-06 2006-07 2007-08



Capacity Utilisation 97% 97% 98% 96% 98%


Key markets: UP is the second largest consuming state in the country - around 9 per cent of the total domestic consumption. The consumption in the state has increased at a CAGR of 5 per cent during the last 5 years. Apart from catering to the state�s own requirement, MP dispatches significant quantities of cement to UP and Bihar. Top players: Jaiprakash Industries is the largest player in the region with the market share of over 19 per cent followed by ACC with a market share of 17 per cent. Other prominent players in the region are Century, Grasim and Prism Cement. The top five players in the industry account for more than 65 per cent of the total market share. Figure 9: Central � Market share (2007-08)

(per cent)

Others34

Prism Cement9

Jaiprakash Inds19

ACC18

Grasim10Century Textiles

10



Figure 10: Central � Domestic market prices

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Demand drivers: The demand in the region is primarily derived from various infrastructure projects being implemented in UP and urban housing in MP.


Associated Cement Companies Ltd Background Associated Cement Companies Ltd (ACC) was formed in 1936 by amalgamating 10 cement companies promoted by Tata, Khatau, Dinshaw and Kellick. A new association was forged between ACC and the Holcim group of Switzerland in 2005. In 2005, Holcim and Gujarat Ambuja entered into a strategic alliance to acquire a 34.17 per cent stake in ACC through Ambuja Cement India Ltd. The current promoter Ambuja Cement India Ltd, through a strategic partnership with Gujarat Ambuja Cement Ltd and Holcim, holds around 43 per cent of the company's equity while institutional investors have around 36 per cent, and individuals hold around 21 per cent. ACC�s core business is cement with a prime focus on RMC. It also provides consultancy services, plant erection and plant management contracts. ACC has also extended its services overseas to the Middle East, Africa and South America, where it has provided technical and managerial consultancy to a number of consumers, and also helps in the operation and maintenance of cement plants. ACC's operations are spread throughout the country with 14 modern cement factories. The company also has a subsidiary called as ACC Concrete Ltd, which has 16 modern RMC plants across India. It sells cement under the brand names ACC Super, ACC Sureksha, ACC Surakhya and ACC Samrat amongst others. The shareholding pattern as on December 31, 2007 is given below: Table 1: ACC � As of December 31, 2007 Category % of total shares

Promoters holding (Holcim Group) 43.0

Institutions 36.2

Mutual funds/UTI 3.1

Banks, FI's, insurance cos and governments 18.0

Foreign institutional investors 15.1

Others 20.8

Total equity holding 136

Source: Company

ACC has a pan-India presence (14 plants) and ranks among the top players across all regions. Its growth has been chiefly organic, and to a lesser extent, through brownfield capacity additions. In 2005, the company merged two of its subsidiaries, DCSL and Bargah Cement with itself. ACC�s capacity was around 18.25 million tonnes as on March 2007-08. The company has a healthy operating rate of over 90 per cent for last 3 years, indicating strong demand.

5.0 Player profile


Figure 1: ACC � Proportion of consumption by

various states (2006-07)

Figure 2: ACC � Market share and rank

(2006-07)

(per cent)

Punjab11Karnataka

10

Uttar Pradesh17

Maharashtra13

Others49

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Mkt share Rank

Source: CMA Source: CMA

The company�s despatches have been increasing at 3 per cent (CAGR) over the last 4 years i.e. 2002-03 to 2006-07. ACC�s pan-India presence helps it mitigate risks that might arise due to slowdown in a particular region. Around 51 per cent consumption in 2006-07 was covered by four states, namely UP (17 per cent), Maharashtra (14 per cent), Punjab (11 per cent) and Karnataka (9 per cent). The company�s market share in these states are; UP � 19.7 per cent, Maharashtra � 14 per cent, Punjab � 30.9 per cent and Karnataka � 16.1 per cent. Even though ACC is one of the oldest and largest producers of cement in India, it lagged its peers in operating efficiency until a few years ago. Raw materials and power account for the largest chunk of costs. The company has tried to make their cost structure favourable by opting for captive power plants and going in for higher level of blending thus enhancing profitability.

Figure 3: ACC � Break up as a per cent of sales

(Mar-02)

Figure 4: ACC � Break-up as a per cent of sales

(Dec-07)

(per cent)

Power and Fuel22

Materials Costs27

Operating Margins

15Selling Exps18

Employee Costs

7Other

Manufacturing Exps

6

Other Exps5

(per cent)

Other Exps22

Selling Exps13

Other Manufacturing

Exps0

Employee Costs

5

Power and Fuel17

Materials Costs13Operating

Margins30



Table 2: ACC � Key financial indicators 31-Dec-05 31-Dec-06 31-Dec-07

Operating income Rs million 32,035 57,678 70,750

Operating margins per cent 17.8 29.5 33.0

Net profits Rs million 5,337 12,369 14,273

Net margins per cent 16.7 21.4 20.2

RoCE (return on average capital employed) per cent 28.9 43.4 52.4

Gearing times 0.50 0.25 0.25

Net cash accruals to debt times 0.67 1.53 -

Interest coverage times 8.2 24.0 27.1

Current ratio times 1.01 1.19 1.09

Note:

The figures for December 31, 2005 are for 9 months i.e. from April 2005 to December 2005, owing to

changes in the year end.

Source: Annual reports, CRISIL Research

The company�s operating margins improved from 29.5 per cent in 2005-06 to 33.0 per cent in 2006-07 due to the improvement in realisations. Other key parameters like operating margins, gearing, and interest coverage have registered healthy growth rates, indicating a good credit profile. The company is expected to post healthy growth in revenues in the medium term led by volume growth on the back of a rise in demand from end-user segments like housing and infrastructure. Also, its multi-location advantage will help offset any slowdown that may arise in a particular region.

Ambuja Cements Ltd Background Ambuja Cements Ltd, the flagship company of the Ambuja Group, was set up in 1986. Switzerland-base Holcim holds the largest share (16.5 per cent) in the company. The company recently amalgamated Ambuja Cement Eastern Ltd with itself (w.e.f January 2006) thus consolidating its presence in other parts of the country as well. The company also holds marginal stake in ACC through Ambuja Cement India Ltd (ACIL). (ACL holds a 22 per cent stake in ACIL, its joint venture with Holcim, which in turn holds a 42.97 per cent stake in ACC.) Its subsidiaries are Cement Ambuja International Ltd, Ceylon Ambuja Cements Pvt Ltd and Indo Nippon Special Cements Ltd. The company sells its cement under the Ambuja Cement brand. The shareholding pattern as on December 31, 2007 is given below: Table 3: GACL � As of December 31, 2007 Category % of total shares

Promoters holding (Holcim Group) 46.5

Institutions 37.6


FIs, banks, insurance companies and government 13.5


Others 16.0


Source: Company


It has 12 cement plants out of which six are grinding units. As on December 2007, GACL�s capacity stood at 15.3 million tonnes per annum. The company has been operating at a healthy rate of above 90 per cent for the last 3 years. GACL has been witnessing a healthy growth rate in its despatches, which is rising by 8.49 per cent (CAGR) for last 4 years. Around 50 per cent despatches are covered by 3 states i.e. Gujarat (14.11 per cent), Maharashtra (25.75 per cent) and Punjab (11.18 per cent). The market share of GACL in these states is: Gujarat � 19.72 per cent, Maharashtra � 19.7 per cent and Punjab � 28.69 per cent. Figure 5: GACL � Proportion of consumption by

various states (2006-07)

Figure 6: GACL � Mkt share and rank

(2006-07)

(per cent)

Others49

Punjab11

Maharashtra24

Gujarat14

0

5

10

15

20

25

30

35

Maharashtra Gujarat Punjab

per

cen

t o

f m

arke

t sh

are

0

1

2

3

Ran

k

Mkt share Rank


The company is considered to be one of the least cost producers of cement in the world. Its drive for cost leadership has been powered by various productivity improvements and cost-cutting measures. For GACL, the largest cost is power followed by raw materials. Figure 7: GACL � Break-up as a per cent of sales

(Jun-02)

Figure 8: GACL � Break-up as a per cent of sales

(Dec-07)

(per cent)

Other manufacturing

exps2

Employee costs4

Power and fuel23

Other exps4

Selling exps & freight

14

Operating margins

33

Materials costs20

(per cent)

Operating margins

34

Materials costs18

Power and fuel20

Employee costs4

Other manufacturing

exps2

Other exps3


19



Table 4: GACL � Key financial indicators 30-Jun-05 31-Dec-06 31-Dec-07

Operating income Rs million 26,133.4 62,667.2 63,717.8


Net profits Rs million 4,654.5 15,032.5 17,691.1


RoCE (return on average capital employed) per cent 15.7 31.3 -






The operating margins have improved due to increased sales and higher realisations. The company is also maintaining healthy gearing, interest coverage and other ratios, indicating an improved credit profile. It is expected to benefit from the strong demand prevalent in the end-user segments domestically while exports are expected to remain healthy, as it will take some time for capacities to come on-stream in the Middle East.

UltraTech Cement Ltd Background UltraTech Cement Ltd (UCL) was incorporated in 2000 as L&T Cement Ltd. In 2004, Grasim Industries Ltd acquired management control and named it UltraTech Cement Ltd. It is now a subsidiary of Grasim Ltd. The company sells cement under the brand name UltraTech Cement and Narmada Cement amongst others. The shareholding pattern as on December 31, 2007 is given below: Table 5: UltraTech Cement Ltd � As of December 31, 2007 Category % of total shares

Promoters holding (Aditya Birla Group) 54.09

Institutions 16.66




Others 29.24


Source: Company

As on March 2007, the company had a capacity of around 17 million tonnes per annum with 10 plants operating in Maharashtra, Gujarat, Andhra Pradesh, Chhattisgarh and Tamil Nadu. UCL�s diversified presence allows it to cater to various states, primarily Maharashtra, Gujarat, Andhra and Karnataka. Though it mostly caters to the West and South, it does have a presence in the East as well. Around 54 per cent consumption in 2006-07 was covered by three states - Gujarat � 16.61 per cent, Karnataka � 9.97 per cent and Maharashtra � 27.92 per cent.


Figure 9: UltraTech Cement Ltd � Proportion of

consumption by various states (2006-07)

Figure 10: UltraTech Cement Ltd � Market share

& rank (2006-07)

(per cent)

Others45

Mah28

Karnataka10

Gujarat17

0

5

10

15

20

25

Gujarat Karnataka Mah

Ran

k

0

1

2

3

4

Market share Rank

per

cen

t o

f m

arke

t sh

are


Figure 11: UltraTech Cement Ltd � Break-up as a

per cent of sales (Mar-04)

Figure 12: UltraTech Cement Ltd � Break-up as a


(per cent)

Other manufacturing

exps4

Employee costs3


21

Materials costs24

Operating margins

14

Other exps6 Power and fuel

28

(per cent)

Operating margins

30


23

Other exps2

Other manufacturing

exps2

Employee costs2

Materials costs18

Power and fuel23


Power and fuel and material costs constitute the largest component of input cost for UCL, accounting for around 23 per cent and 18 per cent of net sales, respectively. The third largest cost component is selling cost, which accounts for around 23 per cent of net sales.


Table 6: UltraTech Cement Ltd � Key financial indicators 31-Mar-05 31-Mar-06 31-Mar-07



Net profits Rs million 29 2,298 7,823




Net cash accruals to debt times 0.1 0.3 0.6




The company�s operating margins improved to 29.3 per cent in 2006-07 from 17.1 per cent in 2005-06, owing to volume growth coupled with higher realisations. Net margins have also increased from 6.9 per cent in 2005-06 to 15.9 per cent in 2006-07. In addition, RoCE as well as the interest coverage improved significantly over the previous year, indicating an improved credit profile for the company.

Grasim Industries Ltd Background Grasim Industries Ltd is the flagship company of the Aditya Birla Group. Starting as a textiles manufacturer in 1948, Grasim ventured into cement production in the mid-1980s, setting up its first cement plant at Jawad, Madhya Pradesh. Since then it has grown to become a key cement player in the country. In July 2004, Grasim acquired a majority stake and management control in UCL, the de-merged cement business of Larsen & Toubro (L&T). One of the largest of its kind in the cement sector, this acquisition catapulted the Aditya Birla Group to the top of the cement league in India. The group's combined capacity stands raised to 31 million tpa, of which 17 million tpa comes from UCL. Currently, Grasim's cement operations span across the country, with 11 integrated plants, seven split grinding units, four bulk terminals and 10 RMC plants. Branded as Birla White, the division manufactures white cement in a variety of textures and finishes. The shareholding pattern as on December 31, 2007 is given below: Table 7: Grasim India Ltd � As of December 31, 2007 Category % of total shares

Promoters holding (Aditya Birla Group) 25.2

Institutions 43.2




Others 31.6


Source: Company

The company�s total cement capacity was around 14.32 million tpa as on March 2007 with production at 15.32 million tonnes. Its operating rate, which has been rising steadily, was at 106 per cent in 2006-07.


While it caters to almost all regions, the three main states are Maharashtra (15 per cent), Karnataka (13 per cent) and Rajasthan (10 per cent). These are major consuming states for Grasim and account for 38 per cent of total despatches. Figure 13: Grasim India Ltd � Proportion of

consumption of varoius states

Figure 14: Grasim India Ltd � Market share &

rank (2005-06)

(per cent)

Others62 Rajasthan

10

Karnataka13

Maharashtra15

0

2

4

6

8

10

12

14

16

18

20

Mah Karnataka Rajasthan

per

cen

t o

f m

arke

t sh

are

0

1

2

3

4

Ran

k

Market share Rank


Figure 15: Grasim India Ltd � Input costs as per

cent of cost of sales (2001-02)

Figure 16: Grasim India Ltd � Input costs as per

cent of cost of sales (2006-07)

(per cent)

Other expenses4

Selling expenses &

freight18

Other manufacturing

expenses3

Employee costs9 Power and fuel

21

Material costs45

(per cent)

Selling expenses &

freight20

Other expenses3

Other manufacturing

expenses2

Employee costs8

Power and fuel19

Material costs48


Table 8: Segment revenue � Cement business (Rs million) 2005-06 2006-07

Revenue 42,376 58,290

PBIT 6,364 14,482

NPM (%) 15.0 24.8

RoCE (%) 17.3 24.7

Source: Company annual reports


Table 9: Grasim India Ltd � Key financial indicators 31-Mar-05 31-Mar-06 31-Mar-07











For Grasim, 2006-07 was a good year in terms of cement as well as consolidated business growth. Around 67.0 per cent of the total operating income came from the cement business. The operating income grew by 28.0 per cent in 2006-07 as against the 21.6 per cent in the 2005-06. During the year, the net profit margins registered a growth of 16.0 per cent and 17.7 per cent in cement and consolidated basis, respectively. Other key ratios like RoCE and interest coverage have registered healthy improvement as well.

Jaiprakash Associates Ltd Background Jaiprakash Associates Ltd (JAL), which was promoted in 1996, is a part of the Jaypee Group. It was formerly known as Jaypee Cement Ltd with operations mainly in cement production. Presently based in Lucknow, JAL has a presence in engineering, construction, cement and hospitality businesses. Its cement business is progressing steadily via brands like Buland. The company owns three cement plants at Rewa and Bela in Madhya Pradesh. JAL's cement market is limited to UP and MP. Its clientele includes National Thermal Power Corporation, Indian Railways and Gas Authority of India Ltd amongst others. The shareholding pattern as on December 31, 2007 is given below: Table 10: Jaiprakash Associates Ltd � As of December 31, 2007 Category % of total shares

Promoters holding (Jaypee Group) 45.0

Institutions 37.0




Others 18.1


Source: Company

The company�s total cement capacity was around 6.6 million tpa as on March 2007. It produced 7.1 million tonnes of cement in 2006-07, thus maintaining an operating rate of above 100 per cent (The company�s operating rate has been rising steadily over the last 3 years).


JAL caters mainly to MP and UP. It is progressively entering Jammu & Kashmir and Uttaranchal. The main consumption centres for JAL are UP (51 per cent), MP (18 per cent) and Bihar (10 per cent). These account for 79 per cent of the company�s total despatches. Figure 17: Jaiprakash Associates Ltd �

Proportion of consumption by various states

(2005-06)

Figure 18: Jaiprakash Associates Ltd � Market

share & rank (2005-06)

(per cent)

Others21

Bihar10

Madhya Pradesh

18

Uttar Pradesh51

0

5

10

15

20

25

UP MP Bihar

per

cen

t o

f m

arke

t sh

are

0

0.5

1

1.5

2

2.5

3

3.5

Ran

k

Market Share Rank


Figure 19: Jaiprakash Associates Ltd � Break-up

as a per cent of sales (Mar-02)

Figure 20: Jaiprakash Associates Ltd � Break-up

as a per cent of sales (Mar-07)

(per cent)

Operating margins

25Employee costs

4

Other manufacturing

expenses55

Power and fuel2Material costs

10

Selling expenses

0

Other expenses4

(per cent)

Material costs21

Power and fuel6

Employee costs4

Other manufacturing

expenses34

Other expenses4

Selling expenses

9

Operating margins

22


Table 11: Segment revenue � Cement business (Rs million) Mar 05 Mar 06 Mar-07

Revenue 9,669.5 11,941.4 18,462.2

PBIT 1,214.5 1,905.1 5,705.9

PBIT margins 12.6 16 30.9

RoCE 4.23 9.3 4.81

Source: Company annual reports


Table 12: Jaiprakash Associates Ltd � Key financial indicators 31-Mar-05 31-Mar-06 31-Mar-07











Key parameters of the cement division showed significant improvement in 2006-07. The share of cement business in total operating income stood at around 50 per cent of the overall business. Consolidated operating margins have grown from 23.1 per cent in 2005-06 to over 29.1 per cent in 2006-07. Even though there was improvement in other key parameters like gearing and RoCE, thus indicating improved credit profile, net margins declined from 19.7 per cent in 2005-06 to 11.6 per cent in 2006-07.

India Cements Ltd Background India Cements Ltd (ICL), which is part of the India Cement Group, began operations in 1946. The company is primarily in the cement business, operating in the southern region of India. The company suffered considerable losses in the past on account of depressed realisations and high interest costs, which arose from the substantial debt levels incurred from its aggressive acquisition strategy during 1997-2000. Huge losses and inability to pay off its creditors resulted in ICL resorting to debt restructuring under the corporate debt restructuring scheme in 2005-06, following which its interest costs declined considerably. The company�s strategy of pursuing inorganic growth by acquiring Rasi Cement and Visaka Cement has been favourable. The shareholding pattern as on December 31, 2007 is given below:

Table 13: India Cements Ltd � As of December 31, 2007 Category % of total shares

Promoters holding (India Cements Ltd) 28.07

Institutions 50.88




Others 21.06


Source: Company


As on March 2007, the company�s total capacity from its seven plants was 8.8 million tpa - four plants are located in Andhra Pradesh and the remaining three in Tamil Nadu. ICL caters mainly to the southern region (accounts for 89 per cent), where Andhra Pradesh and Tamil Nadu account for 55 per cent. The main consumption centres for ICL are Tamil Nadu (30 per cent), Andhra Pradesh (25 per cent), Karnataka (18 per cent) and Kerela (16 per cent). Figure 21: India Cements Ltd � Proportion of

consumption (2006-07)

Figure 22: India Cements Ltd � Market share &

rank (2006-07)

(per cent)

Kerala16 Andhra Pradesh

25

Tamil Nadu30

Others11

Karnataka18

0

5

10

15

20

25

TN AP Kerala Karnataka

per

cen

t o

f m

arke

t sh

are

0

1

2

3

4

5

Ran

k

Market share Rank


The company does not enjoy the margins of its peers due it its high power and fuel, employee and freight costs. In 2006-07, power and fuel costs and selling expenses constituted around 52 per cent of net sales. However, the company is taking steps towards making its cost structure favourable by increasing the proportion of power through captive power plants. Figure 23: India Cements Ltd � Break-up as a


Figure 24: India Cements Ltd � Break-up as a


(per cent)

Power and fuel31

Emp costs8

Other mfg exps2

Other exps4


26

Op margins16

Material costs13

(per cent)

Op margins33


23 Other exps2

Other mfg exps2

Emp costs5

Power and fuel24

Material costs11



Table 14: India Cements Ltd � Key financial indicators 31-Mar-05 31-Mar-06 31-Mar-07



Net profits Rs million -875 145 3,662

Net margins per cent -7.7 0.9 16.2



Net cash accruals to debt times (0.00) 0.07 0.21




Its operating margins improved significantly from 17.1 per cent in 2005-06 to 32.6 per cent in 2006-07 on account of increased volumes coupled with higher realisations. There was improvement in the company�s credit profile, which can be seen in RoCE, gearing and interest coverage that have all registered significant improvement in 2006-07.

Madras Cements Ltd Background Madras Cements Ltd (MCL) was established in 1957. The company, a part of the Ramco Group, is based at Rajapalayam, Tamil Nadu. It has a presence in South India, in particular, Kerala and Tamil Nadu. It is the fourth largest producer in southern India. Madras Cements has four cement plants, three of which are located in Tamil Nadu and one in Andhra Pradesh. The shareholding pattern as on December 31, 2007 is given below: Table 15: Madras Cement � As of December 31, 2007 Category % of total shares

Promoters holding 40.5

Institutions 28.56




Others 30.93


Source: Company

MCL�s capacity in 2006-07 was 5.5 million tonnes. It caters mainly to the southern region, which accounts for 90 per cent of the company�s total despatches.


Figure 25: Madras Cement � Proportion of


Figure 26: Madras Cement � Market share & rank

(2005-06)

(per cent)

Others14

Andhra Pradesh16

Kerala25

Tamil Nadu45

0

5

10

15

20

25

Tamil Nadu Kerala Andhra Pradesh

per

cen

t o

f m

arke

t sh

are

0

1

2

3

4

Ran

k

Market share Rank


Power and fuel, and selling costs are the two major costs for the company, both of which have seen an increase thereby affecting MCL�s cost structure. MCL has higher operating efficiency due to its low distribution costs and efficient power and fuel consumption. Also, due to high competition in the south, the selling cost of the company has increased. But overall the company has healthy operating efficiency.

Figure 27: Madras Cement � Break-up as a per

cent of sales (Mar-02)

Figure 28: Madras Cement � Break-up as a per


(per cent)

Op margin26

Material costs24

Power and fuel24

Emp costs5


17

Other exps2

Other mfg exps2

(per cent)

Power and fuel20

Other mfg exps1

Emp costs5


16

Other exps1

Op margin36

Material costs21



Table 16: Madras Cement � Key financial indicators 31-Mar-05 31-Mar-06 31-Mar-07



Net profits Rs million 559 790 3,080








The company�s operating margins have jumped significantly from 21.5 per cent in 2005-06 to 35.9 in 2006-07. Other key ratios like RoCE, gearing and interest coverage also improved substantially in 2006-07, indicating better credit profile.

Shree Cement Ltd Background Shree Cement Ltd (SCL), which is part of the GD Bangur Group, began commercial production in 1985. The company�s cement plant is situated at Beawar and Ajmer in Rajasthan. Its cement is marketed under the brand name Shree Ultra Cement and sub-brand names like Red Oxide Cement and Jung Rodhak Cement. The shareholding pattern as on December 31, 2007 is given below: Table 17: Shree Cement � As of December 31, 2007 Category % of total shares

Promoters holding 63.72

Institutions 14.43




Others 21.85


Source: Company

The company�s total capacity was around 4.5 million tonnes in 2006-07. It mainly caters to the northern markets - Rajasthan (39 per cent), Haryana (22 per cent) and Delhi (11 per cent), which together account for 72 per cent of total despatches.


Figure 29: Shree Cement � Proportion of


Figure 30: Shree Cement � Market share & rank

(2006-07)

(per cent)

Others28

Delhi11

Haryana22

Rajasthan39

0

5

10

15

20

25

30

35

40

45

Rajasthan Haryana Delhi

per

cen

t o

f m

arke

t sh

are

0

1

2

3

4

Ran

k

Market share Rank


SCL is a low cost producer due to lower energy costs as the company relies entirely on pet coke for its energy requirement, which is a cheaper source as compared to coal. The company has also taken adequate steps to make its cost structure favourable and competitive thus leading to higher profitability.

Figure 31: Shree Cement � Break-up as a per


Figure 32: Shree Cement � Break-up as a per


(per cent)

Op margins24


26Other exps

2

Emp costs4

Other mfg exps1

Power and fuel28

Material costs15

(per cent)

Op margins43


16Other exps

1 Other mfg exps1

Emp costs4

Power and fuel17

Material costs18



Table 18: Shree Cement � Key financial indicators 31-Mar-05 31-Mar-06 31-Mar-07



Net profits Rs million 540 264 1,821








In 2006-07, the company�s operating margins as well as net margins registered a healthy increase. While operating margins increased from 31.8 per cent in 2005-06 to 43.7 per cent 2006-07, net margins increased from 3.8 per cent in 2005-06 to 13.0 per cent in 2006-07. The increased level of debt to fund its expansion plans has led to a rise in the company�s gearing, but with the increase in interest coverage to 52.2 times, its credit profile has remained intact.

CRISIL RESEARCH CEMENT ANNUAL REVIEW C-i

Sections

1.0 Demand supply C-1

2.0 State profile C-29

3.0 Raw material C-45

4.0 Tariffs C-57

5.0 Market share and financials C-59

6.0 Exports C-67

7.0 Cost C-71

Figures

1.0 Demand supply

01 Cement - Capacity and production trends C-27

02 Cement - Production and consumption trends C-28

3.0 Raw material

01 Coal - International prices and landed cost of imports C-48

Tables

1.0 Demand supply

01 Capacity additions in 2006-07 and 2007-08 C-1

02 Cement - Capacity, production and operating rates C-2

03 Cement - Player-wise capacity trends (large units) C-3

04 Cement - Player-wise, unit-wise capacity trends (large units) C-5

05 Cement - Player-wise, unit-wise production trends (large units) C-10

06 Cement - Player-wise operating rates (large units) C-14

07 Cement - Variety-wise production C-15

08 Cement - Company-wise changes in product mix C-16

09 Cement - Trends in rail lead distance and proportion of rail despatches C-19

10 Company-wise cement despatches by rail and road C-20

11 Cement - Aggregate demand-supply C-21

12 Cement - State-wise demand-supply C-22

13 Cement - State-wise trends in demand C-24

14 Cement - State-wise trends in demand growth C-25

15 Housing segment - Budget allocation C-26

16 Cement - State-wise trends in per capita consumption C-27

Continued�

Industry statistics June 2008

C-ii CRISIL RESEARCH CEMENT ANNUAL REVIEW

…continued Tables

2.0 State profile

01 State profile - Andhra Pradesh C-29

02 State profile - Chhattisgarh C-30

03 State profile - Delhi C-31

04 State profile - Gujarat C-32

05 State profile - Haryana C-33

06 State profile - Karnataka C-34

07 State profile - Kerala C-35

08 State profile - Madhya Pradesh C-36

09 State profile - Maharashtra C-37

10 State profile - Orissa C-38

11 State profile - Punjab C-39

12 State profile - Rajasthan C-40

13 State profile - Tamil Nadu C-41

14 State profile - Uttar Pradesh C-42

15 State profile - West Bengal C-43

3.0 Raw material

01 Fuel receipts C-45

02 Fuel consumption C-45

03 Coal - Receipts to cement industry to total coal production C-46

04 Coal - Royalty C-47

05 Coal - Change in pithead prices C-47

06 Gypsum - Domestic prices C-48

07 Lignite - Domestic prices C-48

08 Company-wise coal consumption C-49

09 State-wise trends in power tariffs C-50

10 Company-wise captive power generating capacity C-51

11 Cement - Production by use of captive power C-55

4.0 Tariffs

01 Cement - Excise duty C-57

02 Cement - Customs duty C-58

03 Cement - State-wise sales tax C-58

Continued…

CRISIL RESEARCH CEMENT ANNUAL REVIEW C-iii

…continued Tables

5.0 Market share and financials

01 Cement - Aggregate producer market shares C-59

02 Cement - Region-wise market shares C-60

03 Cement - Net sales of companies C-61

04 Cement - Operating profit margins of companies C-62

05 Cement - Net profit margins of companies C-63

06 Cement - Debt-equity ratio C-64

07 Cement - Return on capital employed C-65

6.0 Exports

01 Cement - Company-wise exports C-67

02 Cement - Country-wise exports C-68

03 Clinker - Company-wise exports C-68

04 Clinker - Country-wise exports C-69

7.0 Cost

01 Company-wise limestone cost C-71

02 Company-wise coal costs C-72

03 Company-wise power consumption C-73

04 Company-wise coal cost C-74

CRISIL RESEARCH CEMENT ANNUAL REVIEW C-1

Table 1: Capacity additions in 2006-07 and 2007-08 (million tonnes) Company Plant State Month of Existing Capacity Total

commissioning capacity added

(a) New

Meghalay Cement Ltd Meghalaya Apr-06 0.30 0.30

Rain Industries Ltd Andhra Pradesh Apr-06 0.50 0.50

J K Gotan Rajasthan Mar-07 0.10 0.10

Cement Manu. Co. Ltd Meghalaya Apr-07 0.59 0.59

Megha T & E (P) Ltd Meghalaya May-07 0.46 0.46

Ambuja Cement Farakka West Bengal May-07 1.00 1.00

Ambuja Cement Rurkee Uttaranchal Sep-07 1.00 1.00

Ambuja Cement Magdalla Gujarat Jan-08 1.00 1.00

Jaypee Panipat Haryana Mar-08 1.00 1.00

Grasim Panipat Haryana Mar-08 1.30 1.30

Grasim Dadri Uttar Pradesh Mar-08 1.30 1.30

Sub total- (a) 8.55 8.55

(b) Expansion

ACC Gagal I Himachal Pradesh Apr-06 1.80 0.20 2.00

ACC Gagal II Himachal Pradesh Apr-06 1.72 0.68 2.40

OCL India Ltd Orissa Apr-06 1.28 0.52 1.80

Dalmia India Ltd Tamil Nadu Apr-06 1.23 2.27 3.50

Jaypee Rewa Madhya Pradesh Apr-06 2.50 0.30 2.80

Jaypee Bela Madhya Pradesh Apr-06 2.00 0.20 2.20

J.K. Nimbahera Rajasthan Jul-06 2.80 0.50 3.30

K.C.P. Ltd Andhra Pradesh Jul-06 0.58 0.08 0.66

Lakshmi Cement Rajasthan Mar-07 2.23 1.17 3.40

Lafarge Sonadin Chhattisgarh Apr-07 0.40 0.15 0.55

My Home Indus Ltd Andhra Pradesh Apr-07 1.56 1.20 2.76

Vasvadatta Cement] Karnataka Apr-07 2.00 1.65 3.65

Shree Cement Rajasthan Jun-07 4.50 1.50 6.00

Chilampur Andhra Pradesh Dec-07 1.30 0.15 1.45

Shree Cement Rajasthan Jan-08 6.00 3.10 9.10

Century Cement Chhattisgarh Jan-08 1.80 0.30 2.10

Sankarnagar Tamil Nadu Jan-08 1.55 0.25 1.80

Miahar Cement Madhya Pradesh Jan-08 3.00 0.80 3.80

Dalavoi Tamil Nadu Feb-08 1.30 0.55 1.85

Grasim Bhatinda Punjab Mar-08 1.20 0.55 1.75

Aditya Cement Rajasthan Mar-08 1.75 0.05 1.80

Ultratech JCW Orissa Mar-08 0.80 0.20 1.00

Continued….

1.0 Demand supply

C-2 CRISIL RESEARCH CEMENT ANNUAL REVIEW

...continued

(million tonnes) Company Plant State Month of Existing Capacity Total commissioning capacity added

Ultratech WBCW West Bengal Mar-08 1.00 0.20 1.20

Ultratech HCW Chhattisgarh Mar-08 1.60 0.30 1.90

Grasim Cement- Raipur Chhattisgarh Mar-08 2.06 0.44 2.50

Kesoram Andhra Pradesh Mar-08 0.90 0.30 1.20

Orient Cement Andhra Pradesh Mar-08 1.60 0.80 2.40

Grasim South Tamil Nadu Mar-08 1.03 0.37 1.40

Rajashree Cement Karnataka Mar-08 2.60 0.60 3.20

Ultratech Gujarat Gujarat Mar-08 5.30 0.50 5.80

Jafrabad Gujarat Mar-08 0.40 0.10 0.50

Rajashree Cement Maharashtra Mar-08 1.40 0.40 1.80

Orient Cement Jalgaon Maharashtra Mar-08 0.80 0.20 1.00

Manikgarh Maharashtra Mar-08 1.50 0.40 1.90

Ultratech ACW Maharashtra Mar-08 3.30 0.30 3.60

Jaypee Rewa Madhya Pradesh Mar-08 2.80 0.20 3.00

Jaypee Bela Madhya Pradesh Mar-08 2.20 0.20 2.40

Sub total- (b) 21.68 93.47(c) Deration / Deletion

ACC Mancherial Andhra Pradesh Jul-06 0.33 0.33 -

Sankaridurg Tamil Nadu Sep-07 0.72 0.12 0.60

Utratech APCW Andhra Pradesh Mar-08 2.30 0.30 2.00

Uitratech ARCW (G) Tamil Nadu Mar-08 1.20 0.10 1.10

Chunar Uttar Prdesh Mar-08 1.68 0.18 1.50

Churk Uttar Prdesh Mar-08 0.47 0.47 0.00

Sub total- (c) 1.50 5.20Total-(a) + (b) + ( c ) 28.73 Source: CMA

Table 2: Cement - Capacity, production and operating rates

(million tpa) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Large cement units

Capacity 130.0 139.0 146.4 153.6 158.1 166.7 175.7

Production (million tonnes) 102.0 111.4 117.4 127.6 141.8 155.7 167.6

Operating rates (per cent) 78.5 80.1 80.2 83.1 88.5 93.4 95.4

Mini cement and white cement units

Capacity 11.1 11.1 11.1 11.1 11.1 11.1 11.1

Production (million tonnes) 4.5 5.0 5.0 6.0 6.0 6.0 6.0

Operating rates (per cent) 40.5 45.0 45.0 54.1 54.1 54.1 54.1

Notes

1) Large units refer to those with a capacity of over 0.198 million tpa.

2) The installed capacity of mini cement plants increased from not exceeding 600 tpd to 900 tpd or

to 297,000 per annum and total clearance of cement produced in a financial year not to exceed 300,000 tonnes.

3) Capacities and production details are not monthly additions but the final published numbers

Source: All India Mini Cements Assocation of India and CMA


Table 3: Cement - Player-wise capacity trends (large units) (million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

ACC 15.9 16.1 16.8 18.2 18.6 20.0 19.9

Andhra Cements 1.2 1.2 1.7 1.7 1.7 1.7 1.7

Binani Cement 1.7 1.7 1.8 2.2 2.2 2.2 2.2

Birla Corp 4.0 4.5 4.8 4.8 5.1 5.8 5.78

CCI 3.9 3.9 3.9 3.9 3.9 3.9 3.9

Century Textiles 4.7 4.7 4.7 5.9 6.3 6.3 6.6

Chettinad Cement 1.0 1.8 1.8 1.8 1.8 1.8 1.8

Dalmia Cement 1.0 1.0 1.2 1.2 1.2 3.5 3.5

DLF Cement - - - - - - -

Dwaraka 0.3 0.3 0.3 0.3 0.3 0.3 0.3

Grasim 12.4 13.6 14.3 14.3 14.3 14.3 14.7

Ambuja Cement Ltd 10.7 12.2 12.5 14.6 14.9 15.2 16.9

Gujarat Sidhee Cement 1.2 1.2 1.2 1.2 1.2 1.2 1.2

HMP Cements 0.7 0.7 0.7 0.7 0.7 0.7 0.7

Idcol Cement 1.0 1.0 0.6 - - - -

India Cements 9.0 8.8 8.8 8.8 8.8 8.8 8.9

Indo Rama Cement 1.0 1.0 1.0 1.0 1.0 1.0 1.0

JK Corp 2.2 2.2 2.2 2.2 2.2 2.2 3.2

JK Synthetics 2.7 3.0 3.3 3.3 3.4 3.9 4.1

JK Udaipur Udyog 0.9 0.9 0.9 0.9 0.9 0.9 0.9

J and K 0.2 0.2 0.2 0.2 0.2 0.2 0.2

Jaiprakash Inds. 4.1 4.6 4.6 5.6 6.1 6.6 6.7

Jaipur Udyog 1.0 1.0 1.0 1.0 1.0 1.0 1.0

KCP 0.6 0.6 0.6 0.6 0.6 0.6 0.7

Kalyanpur Cement 1.0 1.0 1.0 1.0 1.0 1.0 1.0

Kanoria Inds 0.3 0.3 0.3 0.3 0.3 0.3 0.3

Kesoram Inds 2.1 2.1 2.1 2.1 2.6 2.9 4.3

Khalari 0.1 0.1 0.1 0.1 0.1 0.1 0.1

Kistna 0.2 0.2 0.2 0.2 0.2 0.2 0.2

Lafarge 4.5 4.5 5.0 5.0 5.0 5.0 5.0

Madras Cements 3.9 5.0 5.5 5.5 5.5 5.5 5.5

Malabar Cements 0.4 0.4 0.4 0.6 0.6 0.6 0.6

Mangalam Cement 1.0 1.0 1.0 1.0 1.0 1.0 1.0

Mawnluh Cherra 0.2 0.2 0.2 0.2 0.2 0.2 0.2

Mysore Cement 2.1 2.1 2.1 2.1 2.1 2.1 2.1

My Home Industries n.a. n.a. n.a. n.a. 0.9 1.6 2.7

OCL India 1.0 1.0 1.3 1.3 1.3 1.7 1.8

Orient Cement 2.0 2.0 2.0 2.3 2.4 2.4 2.5

Panyam Cements 0.5 0.5 0.5 0.5 0.5 0.5 0.5

Penna Cement 0.7 1.0 1.0 2.5 2.1 2.5 2.5

Prism Cement 2.5 2.5 2.5 2.5 2.5 2.5 2.5

Continued….


...continued

(million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Priyadarshini 0.6 0.6 0.6 0.7 1.0 1.1 1.1

Raymond Woollens - - - - - - -

Rohtas Inds 0.6 0.6 0.6 0.6 0.6 0.6 0.6

Sanghi Industries Ltd. - - 2.6 2.6 2.6 2.6 2.6

Saurashtra Cement 1.2 1.2 1.2 1.2 1.2 1.2 1.2

Sevalia 0.2 0.2 0.2 0.2 0.2 0.2 0.2

Shree Cement 2.2 2.6 2.6 2.6 3.2 4.5 6.0

Shriram Cement 0.2 0.2 0.2 0.2 0.2 0.2 0.2

Sone Valley 0.3 0.3 0.3 0.3 0.3 0.3 0.3

Sri Vishnu Cement - - - - - - -

Tamil Nadu Cement 0.9 0.9 0.9 0.9 0.9 0.9 0.9

TISCO - - - - - - -

UP State Cement 2.6 2.6 2.6 2.6 2.6 2.6 2.5

Visvesvaraya 0.1 0.1 0.1 0.1 0.1 0.1 0.1

Ultratech Cement 15.0 16.3 17.0 17.0 17.0 17.0 17.1

Zuari Inds 2.2 3.4 3.4 3.4 3.4 3.4 3.4

Meghalaya Cement - - - - - 0.2 0.3

Total 130.0 139.0 146.4 153.6 158.1 167.1 175.2

G: Grinding unit

Notes

1) Figures for Modi Cement and Raasi Cement from 1998-99 have been included in Gujarat Ambuja as

Ambuja Cement Eastern and in India Cement as Raasi Cement (India) respectively.

2) Figures for DLF Cement have been included with those of Gujarat Ambuja, as

Ambuja Cement Rajasthan Ltd since April 2000.

3) Figures for Indian Rayon, Narmada Cement, Shree Digvijay and Tisco from 1999-2000 have been included

with those of Grasim, Ultratech Cement Ltd, Grasim and Lafarge, respectively.

4) Raymond Woollens was acquired by Lafarge in 2000.

5) Sri Vishnu Cement's figures have been included with Zuari Cement from February 2002.

Source: CMA


Table 4: Cement - Player-wise, unit-wise capacity trends (large units)

(million tonnes) State 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08ACC 15.9 16.1 16.8 18.2 18.6 20.0 19.9Chaibasa Bihar - - - - - - -

Jharkhand 0.6 0.6 0.6 0.6 0.7 0.9 0.9

Chanda Maharashtra 1.0 1.0 1.0 1.0 1.0 1.0 1.0

Damodhar Cement and Slag (G) West Bengal 0.5 0.5 0.5 0.5 0.5 0.5 0.5

Gagal-1 Himachal Pradesh 1.1 1.1 1.1 1.1 1.3 2.0 2.0


Idcol Cement Orissa - - 0.3 1.0 1.0 1.0 1.0

Jamul Chhattisgarh 1.6 1.6 1.6 1.6 1.6 1.6 1.6

Madhya Pradesh - - - - - - -

Kymore Madhya Pradesh 1.7 1.7 1.7 1.7 1.7 1.7 1.7

Lakheri Rajasthan 0.6 0.6 0.6 0.6 0.6 0.6 0.6

Madukkarai Tamil Nadu 1.0 1.0 1.0 1.0 1.0 1.0 1.0

Mancherial Andhra Pradesh 0.3 0.3 0.3 0.3 0.3 0.1 0.0

Sindri Bihar - - - - - - -

Jharkhand 0.6 0.6 0.6 0.6 0.6 0.6 0.6

Tikaria (G) Uttar Pradesh 0.7 0.8 1.2 1.9 2.0 2.0 2.0

Wadi - New Karnataka 2.6 2.6 2.6 2.6 2.6 2.6 2.6

Wadi Phase-I and II Karnataka 2.1 2.2 2.1 2.2 2.1 2.1 2.1

Andhra Cement 1.2 1.2 1.7 1.7 1.7 1.7 1.7Nadikude-Durga Cement Andhra Pradesh 0.5 0.5 1.0 1.0 1.0 1.0 1.0

Vijaywada (G) Andhra Pradesh 0.2 0.2 0.2 0.2 0.2 0.2 0.2

Vizag (G) Andhra Pradesh 0.5 0.5 0.5 0.5 0.5 0.5 0.5

Binani Cement Rajasthan 1.7 1.7 1.8 2.2 2.2 2.2 2.2Birla Corp 4.0 4.5 4.8 4.8 5.1 5.8 5.8Birla Cement Rajasthan 0.6 0.7 0.7 0.7 0.7 0.7 0.7

Birla Vikas Madhya Pradesh 0.8 0.8 0.8 0.8 0.8 0.8 0.8

Chittor Cement Rajasthan 0.9 1.3 1.3 1.3 1.3 1.3 1.3

Durgapur (G) West Bengal 0.6 0.6 0.6 0.6 0.6 0.6 0.6

Raebaraeli Uttar Pradesh 0.4 0.4 0.6 0.6 0.6 0.6 0.6

Satna Cement Madhya Pradesh 0.8 0.8 0.8 0.8 0.8 0.8 0.8

Durga Hitech Cement (G) West Bengal 0.3 1.0 1.0

CCI 3.9 3.9 3.9 3.9 3.9 3.9 3.9Adilabad Andhra Pradesh 0.4 0.4 0.4 0.4 0.4 0.4 0.4

Akaltara Chhattisgarh 0.4 0.4 0.4 0.4 0.4 0.4 0.4

Madhya Pradesh - - - - - 0.0 0.0

Bokajan Assam 0.2 0.2 0.2 0.2 0.2 0.2 0.2

Charkhi-Dadri Haryana 0.2 0.2 0.2 0.2 0.2 0.2 0.2

Delhi (G) Delhi 0.5 0.5 0.5 0.5 0.5 0.5 0.5

Kurkunta Karnataka 0.2 0.2 0.2 0.2 0.2 0.2 0.2

Mandhar Chhattisgarh 0.4 0.4 0.4 0.4 0.4 0.4 0.4

Madhya Pradesh - - - - - 0.0 0.0

Neemuch Madhya Pradesh 0.4 0.4 0.4 0.4 0.4 0.4 0.4

Rajban Himachal Pradesh 0.2 0.2 0.2 0.2 0.2 0.2 0.2

Tandur Andhra Pradesh 1.0 1.0 1.0 1.0 1.0 1.0 1.0

Continued….


…continued (million tonnes) State 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08Century Textiles 4.7 4.7 4.7 5.9 6.3 6.3 6.6Century Cement Chhattisgarh 1.2 1.2 1.2 1.7 1.8 1.8 1.9 Madhya Pradesh - - - - - - -Maihar Cement Unit-I Madhya Pradesh 1.9 2.0 2.0 2.7 3.0 3.0 3.2Maihar Cement Unit-II Madhya Pradesh 0.1 - - - - - -Manikgarh Unit-I Maharashtra 1.5 1.5 1.5 1.5 1.5 1.5 1.5Manikgarh Unit-II (G) Maharashtra - - - - - - -Chettinad Cement 1.0 1.8 1.8 1.8 1.1 1.8 1.8Karikalli Tamil Nadu 0.4 1.2 1.2 1.2 0.7 1.2 1.2Karur Tamil Nadu 0.6 0.6 0.6 0.6 0.4 0.6 0.6Dalmia Cement Tamil Nadu 1.0 1.0 1.2 1.2 0.7 3.5 3.5DLF Cement Rajasthan - - - - - - -Dwaraka Gujarat 0.3 0.3 0.3 0.3 0.3 0.3 0.3Grasim 12.4 13.6 14.3 14.3 14.3 14.3 14.5Aditya Cement Rajasthan 1.6 1.7 1.7 1.7 1.7 1.7 1.8Grasim Cement - Raipur Chhattisgarh 1.9 1.9 2.1 2.1 2.1 2.1 2.1 Madhya Pradesh - - - - - - -Grasim South Tamil Nadu 1.0 1.0 1.0 1.0 1.0 1.0 1.1Grasim-Bhatinda (G) Punjab 0.3 1.0 1.2 1.2 1.2 1.2 1.2Rajashree Cement - Hotgi (G) Maharashtra 1.3 1.4 1.4 1.4 1.4 1.4 1.4Rajashree Cement - Malkhed Karnataka 2.2 2.3 2.6 2.6 2.6 2.6 2.7Sewree (G) Maharashtra 0.2 0.2 0.2 0.2 0.2 0.2 0.2Sikka Gujarat 0.9 1.1 1.1 1.1 1.1 1.1 1.1Sikka New Unit Gujarat 0.2 - - - - - -Vikram Cement Unit-I Madhya Pradesh 2.8 3.0 3.0 3.0 3.0 3.0 3.0Vikram Cement Unit-II Madhya Pradesh - - - - - - -Vikram Super Cement Madhya Pradesh - - - - - - -Ambuja Cement Ltd 10.7 12.2 12.5 14.6 14.9 15.2 15.3Ambuja Cement Gujarat 1.5 1.5 1.5 1.5 1.5 1.5 1.5Ambuja Cement - Bhatinda (G) Punjab 0.5 0.5 0.5 0.5 0.5 0.5 0.5Ambuja Cement - Sankrail (G) West Bengal 0.9 1.0 1.0 1.0 1.0 1.0 1.0Ambuja Cement Eastern Chhattisgarh 1.3 1.0 1.0 1.0 1.0 1.0 1.0 Madhya Pradesh - - - - - 0.0 0.0Ambuja Cement Raj Ltd. Rajasthan 1.5 1.5 1.5 1.8 1.8 1.8 1.8Gajambuja Cement Gujarat 2.5 2.5 2.5 3.0 3.0 3.0 3.0Gujarat Ambuja Unit HP Himachal Pradesh 1.2 1.2 1.2 1.2 1.2 1.5 1.6Gujarat Ambuja Unit Ropar (G) Punjab 1.3 1.3 1.3 2.5 2.5 2.5 2.5Maratha Cement Maharashtra - 1.7 2.0 2.4 2.4 2.4 2.4Gujarat Sidhee Cement Gujarat 1.2 1.2 1.2 1.2 1.2 1.2 1.2HMP Cements 0.7 0.7 0.7 0.7 0.7 0.7 0.7Porbander Gujarat 0.2 0.2 0.2 0.2 0.2 0.2 0.2Shahabad Karnataka 0.5 0.5 0.5 0.5 0.5 0.5 0.5Idcol Cement Orissa 1.0 1.0 0.6 - - - -India Cements 9.0 8.8 8.8 8.8 8.8 8.8 8.9Chilamkur Works Andhra Pradesh 1.3 1.3 1.3 1.3 1.3 1.3 1.3Dalavoi Tamil Nadu 1.1 1.3 1.3 1.3 1.3 1.3 1.3Raasi Cement (India) Andhra Pradesh 2.1 2.3 2.3 2.3 2.3 2.3 2.3Sankaridurg Tamil Nadu 0.7 0.7 0.7 0.7 0.7 0.7 0.7Sankarnagar Tamil Nadu 1.4 1.6 1.6 1.6 1.6 1.6 1.6Sri Vishnu Cement Andhra Pradesh 0.9 - - - - - -Visaka Cement Andhra Pradesh 1.0 1.1 1.1 1.1 1.1 1.1 1.1Yerraguntla Andhra Pradesh 0.5 0.5 0.5 0.5 0.5 0.5 0.5Indo Rama Cement Maharashtra 1.0 1.0 1.0 1.0 1.0 1.0 1.0 continued….


…continued (million tonnes) State 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08JK Corp 2.2 2.2 2.2 2.2 2.2 2.2 3.2Lakshmi Cement Unit-I Rajasthan 2.2 2.2 2.2 2.2 2.2 2.2 3.2Lakshmi Cement Unit-II Rajasthan - - - - - - -Lakshmi Cement Unit-II, Phase-II Rajasthan - - - - - - -JK Synthetics 3.7 4.0 4.3 4.3 4.4 3.9 4.1JK Mangrol Cement (G) Rajasthan 0.3 0.6 0.7 0.8 0.8 0.8 0.8Nimbahera - JK Cement Rajasthan 2.4 2.4 2.5 2.5 2.7 3.1 3.3Jaipur Udyog Rajasthan 1.0 1.0 1.0 1.0 1.0 0.0 0.1J and K Jammu and Kashmir 0.2 0.2 0.2 0.2 0.2 0.2 0.2Jaiprakash Inds 4.1 4.6 4.6 6.1 6.1 6.6 6.7Jaypee Bela Madhya Pradesh 1.5 1.5 1.5 2.0 2.0 2.2 2.2Jaypee Rewa Madhya Pradesh 2.5 2.5 2.5 2.5 2.5 2.8 2.8Sadva Khurd (G) Uttar Pradesh 0.2 0.6 0.6 0.6 0.6 0.6 0.6Jaypee Ayodhya (G) Uttar Pradesh - - - 1.0 1.0 1.0 1.1Jaipur Udyog Rajasthan 1.0 1.0 1.0 1.0 1.0 1.0 1.0KCP Andhra Pradesh 0.6 0.6 0.6 0.6 0.6 0.6 0.6Kalyanpur Cement Bihar 1.0 1.0 1.0 1.0 1.0 1.0 1.0Kanoria Inds Karnataka 0.3 0.3 0.3 0.3 0.3 0.3 0.3Kesoram Inds 2.1 2.1 2.1 2.1 2.6 2.9 4.3Kesoram Cement Andhra Pradesh 0.9 0.9 0.9 0.9 0.9 0.9 0.9Vasavadatta Unit-I Karnataka 1.2 1.2 1.2 1.2 1.7 2.0 3.4Vasavadatta Unit-II Karnataka - - - - - - -Khalari 0.1 0.1 0.1 0.1 0.1 0.1 0.1Khalari Bihar - - - - - - - Jharkhand 0.1 0.1 0.1 0.1 0.1 0.1 0.1Kistna Andhra Pradesh 0.2 0.2 0.2 0.2 0.2 0.2 0.2Lafarge 4.5 4.5 5.0 5.0 5.0 5.0 5.0Arasmeta Cement Chhattisgarh 2.2 2.2 1.6 1.6 1.6 1.6 1.6 Madhya Pradesh - - - - - - -Lafarge - Jojobera (G) Bihar - - - - - - - Jharkhand 1.9 1.9 3.0 3.0 3.0 3.0 3.0Lafarge - Sonadih Chhattisgarh 0.4 0.4 0.4 0.4 0.4 0.4 0.4 Madhya Pradesh - - - - - - -Madras Cements 3.9 5.0 5.5 5.5 5.5 5.5 5.5Alathiyur Works Tamil Nadu 1.1 1.4 1.4 1.4 1.4 1.4 1.4Alathiyur Works-II Tamil Nadu 0.9 1.8 1.8 1.8 1.8 1.8 1.8Jayantipuram Andhra Pradesh 1.1 1.1 1.6 1.6 1.6 1.6 1.6Ramasamyraja Nagar Tamil Nadu 0.8 0.8 0.8 0.8 0.8 0.8 0.8Malabar Cements 0.4 0.4 0.4 0.6 0.6 0.6 0.6Malabar Cements Kerala 0.4 0.4 0.4 0.4 0.4 0.4 0.4Malabar Cements (G) Kerala - - 0.0 0.2 0.2 0.2 0.2Mangalam Cement 1.0 1.0 1.0 1.0 1.0 1.0 1.0Mangalam Cement Rajasthan 0.4 0.4 0.4 0.4 0.4 0.4 0.4Neer Shree Cement Rajasthan 0.6 0.6 0.6 0.6 0.6 0.6 0.6Mawnluh Cherra Meghalaya 0.2 0.2 0.2 0.2 0.2 0.2 0.2Mysore Cement 2.1 2.1 2.1 2.1 2.1 2.1 2.1Diamond Cement - Jhansi (G) Uttar Pradesh 0.5 0.5 0.5 0.5 0.5 0.5 0.5Diamond Cement Unit-I Madhya Pradesh 0.5 0.5 0.5 0.5 0.5 0.5 0.5Diamond Cement Unit-II Madhya Pradesh 0.5 0.5 0.5 0.5 0.5 0.5 0.5Mysore Cement Karnataka 0.6 0.6 0.6 0.6 0.6 0.6 0.6My Home Industries Andhra Pradesh n.a. n.a. n.a. n.a. 0.91 1.6 2.7 continued….


…continued

(million tonnes) State 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

OCL India Orissa 1.0 1.0 1.3 1.3 1.3 1.7 1.8

Orient Cement 2.0 2.0 2.0 2.3 2.4 2.4 2.5

Orient Cement Andhra Pradesh 1.3 1.3 1.3 1.5 1.6 1.6 1.7

Orient Cement-Jalgaon Maharashtra 0.7 0.7 0.7 0.8 0.8 0.8 0.8

Panyam Cements Andhra Pradesh 0.5 0.5 0.5 0.5 0.5 0.5 0.5

Penna Cement 0.7 1.0 1.0 2.5 2.1 2.5 2.5

Tadpatri Andhra Pradesh 0.7 1.0 1.0 1.5 1.4 1.5 1.5

Ganeshpahad Andhra Pradesh - - - 1.0 0.7 1.0 1.0

Prism Cement Madhya Pradesh 2.5 2.5 2.5 2.5 2.5 2.5 2.5

Priyadarshini Andhra Pradesh 0.6 0.6 0.6 1.0 1.0 1.0 1.0

Rohtas Inds Bihar 0.6 0.6 0.6 0.6 0.6 0.6 0.6

Sanghi Industries Gujarat - - 2.6 2.6 2.6 2.6 2.6

Saurashtra Cement Gujarat 1.2 1.2 1.2 1.2 1.2 1.2 1.2

Sevalia Gujarat 0.2 0.2 0.2 0.2 0.2 0.2 0.2

Shree Cement 2.2 2.6 2.6 2.6 3.2 4.5 6.0

Raj Cement Rajasthan - - - - - - -

Shree Cement Rajasthan 2.2 2.6 2.6 2.6 3.2 4.5 6.0

Shriram Cement Rajasthan 0.2 0.2 0.2 0.2 0.2 0.2 0.2

Sone Valley 0.3 0.3 0.3 0.3 0.3 0.3 0.3

Sone Valley Bihar - - - - - - -

Jharkhand 0.3 0.3 0.3 0.3 0.3 0.3 0.3

TISCO - - - - - - -

Tisco (G), Bihar Bihar - - - - - - -

Tisco (Raipur) Madhya Pradesh - - - - - - -

Tamil Nadu Cement 0.9 0.9 0.9 0.9 0.9 0.9 0.9

Alangulam Tamil Nadu 0.4 0.4 0.4 0.4 0.4 0.4 0.4

Ariyalur Tamil Nadu 0.5 0.5 0.5 0.5 0.5 0.5 0.5

continued….


…continued

(million tonnes) State 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Ultratech Cement 15.0 16.3 17.0 17.0 17.0 17.0 17.1

ARCW (G) Tamil Nadu 0.7 1.1 1.2 1.2 1.2 1.2 1.2

Jafrabad Gujarat 0.4 0.4 0.4 0.4 0.4 0.4 0.4

L&T - Andhra Pradesh Andhra Pradesh 2.6 2.2 2.3 2.3 2.3 2.3 2.3

L&T - Awarpur Phase-I Maharashtra 3.0 3.0 3.3 3.3 3.3 3.3 3.3

L&T - Gujarat Gujarat 4.2 4.8 5.3 5.3 5.3 5.3 5.3

L&T - Jharsuguda (G) Orissa 0.8 0.8 0.8 0.8 0.8 0.8 0.8

L&T Hirmi Chhattisgarh 1.9 1.9 1.6 1.6 1.6 1.6 1.6


Magdalla (G) Gujarat 0.7 0.7 0.7 0.7 0.7 0.7 0.7

Ratnagiri (G) Maharashtra 0.4 0.4 0.4 0.4 0.4 0.4 0.4

WBCW (G) West Bengal 0.2 1.0 1.0 1.0 1.0 1.0 1.0

UP State Cement 2.6 2.6 2.6 2.6 2.6 2.6 2.5

Chunar (G) Uttar Pradesh 1.7 1.7 1.7 1.7 1.7 1.7 1.7

Churk Uttar Pradesh 0.5 0.5 0.5 0.5 0.5 0.5 0.4

Dalla Uttar Pradesh 0.4 0.4 0.4 0.4 0.4 0.4 0.4

Zuari Inds. 2.2 3.4 3.4 3.4 3.4 3.4 3.4

Sri Vishnu Cement Andhra Pradesh 0.2 1.2 1.2 1.2 1.2 1.2 1.2

Zuari Cement Andhra Pradesh 2.0 2.2 2.2 2.2 2.2 2.2 2.2

Total 130.0 139.0 146.4 153.6 158.1 167.1 175.2

G: Grinding unit

Notes

1) Figures for Modi Cement and Raasi Cement from 1998-99 have been included in Gujarat Ambuja as Ambuja Cement Eastern and in

India Cement as Raasi Cement (India) respectively.

2) Figures for DLF Cement have been included with those of Gujarat Ambuja, as Ambuja Cement Rajasthan Ltd since April 2000.

3) Figures for Indian Rayon, Narmada Cement, Shree Digvijay and Tisco from 1999-2000 have been included with

those of Grasim, Ultratech Cement, Grasim and Lafarge, respectively.



6) Capacities are monthly add-ups. Of the total capacity, 2.41 million tpa is not in operation.

7) Idcol Cement was acquired by ACC in December 2003

Source: CMA


Table 5: Cement - Player-wise, unit-wise production trends (large units) (million tonnes) State 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

ACC 12.3 13.9 15.4 16.6 17.9 18.6 20.0

Chaibasa Bihar - - - - - - -

Jharkhand 0.3 0.4 0.4 0.5 0.6 0.7 0.7

Chanda Maharashtra 0.6 0.8 0.9 1.0 1.0 1.1 1.2

Damodhar Cement and Slag (G) West Bengal 0.4 0.4 0.5 0.5 0.5 0.5 0.5



Idcol Cement Orissa - - 0.3 0.8 0.8 0.9 1.0

Jamul Chhattisgarh 1.2 0.9 0.8 0.9 1.0 1.2 1.2


Kymore Madhya Pradesh 1.3 1.5 1.3 1.2 1.3 1.6 1.9

Lakheri Rajasthan 0.6 0.7 0.7 0.7 0.7 0.7 0.9

Madukkarai Tamil Nadu 0.7 0.9 0.9 0.9 0.9 0.8 0.9

Mancherial Andhra Pradesh 0.2 0.3 0.2 0.2 0.1 - -

Sindri Bihar - - - - - - -

Jharkhand 0.6 0.7 0.7 0.7 0.9 0.9 0.9

Tikaria (G) Uttar Pradesh 0.7 0.9 1.6 2.0 2.2 2.3 2.4

Wadi - New Karnataka 1.2 2.1 2.6 2.4 2.7 2.6 2.6

Wadi Phase-I and II Karnataka 1.6 1.6 1.6 1.8 1.8 1.6 1.6

Andhra Cements 0.8 0.7 0.6 0.7 0.3 0.6 1.1

Nadikude-Durga Cement Andhra Pradesh 0.6 0.6 0.4 0.5 0.2 0.5 0.7

Vizag (G) Andhra Pradesh 0.2 0.2 0.2 0.3 0.1 0.2 0.4

Binani Cement Rajasthan 1.9 2.1 2.2 2.2 2.3 2.4 3.0

Birla Corp 4.2 4.6 4.8 5.0 5.1 5.3 5.3

Birla Cement Rajasthan 0.7 0.7 0.8 0.8 0.8 0.8 0.8

Birla Vikas Madhya Pradesh 0.8 0.8 0.8 0.8 0.9 0.9 0.9

Chittor Cement Rajasthan 1.1 1.3 1.4 1.4 1.5 1.6 1.7

Durgapur (G) West Bengal 0.5 0.6 0.6 0.7 0.6 0.6 0.5

Raebaraeli Uttar Pradesh 0.4 0.4 0.6 0.6 0.6 0.6 0.5

Satna Cement Madhya Pradesh 0.7 0.7 0.7 0.7 0.7 0.7 0.7

0.0 0.1 0.1

CCI 0.6 0.5 0.6 0.8 0.9 1.0 0.9

Adilabad Andhra Pradesh - - - - - - -

Akaltara Chhattisgarh - - - - - - -


Bokajan Assam 0.1 0.1 0.1 0.1 0.1 0.1 0.1

Charkhi-Dadri Haryana - - - - - - -

Delhi (G) Delhi - - - - - - -

Kurkunta Karnataka - - - - - - -

Mandhar Chhattisgarh - - - - - - -


Neemuch Madhya Pradesh - - - - - - -

Rajban Himachal Pradesh 0.1 0.1 0.2 0.2 0.2 0.2 0.2

Tandur Andhra Pradesh 0.3 0.3 0.3 0.5 0.6 0.7 0.6

Continued….


…continued

(million tonnes) State 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08Century Textiles 5.1 5.2 5.4 6.1 6.6 6.7 6.9Century Cement Chhattisgarh 1.5 1.6 1.6 1.7 1.7 1.8 1.9


Maihar Cement Unit-I Madhya Pradesh 2.5 2.6 2.5 2.9 3.3 3.5 3.4

Maihar Cement Unit-II Madhya Pradesh - - - - - - -

Manikgarh Unit-I Maharashtra 1.1 1.1 1.3 1.4 1.6 1.4 1.6

Manikgarh Unit-II (G) Maharashtra - - - - - - -Chettinad Cement 0.9 1.7 1.9 2.2 2.4 2.7 2.9Karikalli Tamil Nadu - 0.7 1.0 1.1 1.2 1.7 1.7

Karur Tamil Nadu 0.9 1.0 0.9 1.1 1.2 1.0 1.2

Dalmia Cement Tamil Nadu 1.0 1.2 1.3 1.3 1.6 2.7 3.3DLF Cement Rajasthan - - - - - - -Grasim 10.2 11.8 12.5 13.1 14.6 15.3 16.2Aditya Cement Rajasthan 1.4 1.6 1.5 1.4 1.7 1.9 2.1

Grasim Cement - Raipur Chhattisgarh 1.5 1.6 1.6 1.7 2.0 2.0 2.0


Grasim South Tamil Nadu 0.7 0.9 1.0 0.9 1.2 1.2 1.4

Grasim-Bhatinda (G) Punjab 0.1 0.9 1.1 1.0 1.2 1.2 1.3

Rajashree Cement - Hotgi (G) Maharashtra 1.2 1.4 1.4 1.5 1.5 1.6 1.8

Rajashree Cement - Malkhed Karnataka 1.9 2.1 2.5 2.7 2.9 3.1 3.0

Sewree (G) Maharashtra - - - - - - -

Sikka Gujarat 0.7 0.8 0.7 0.8 0.9 0.9 0.8

Sikka New Unit Gujarat 0.1 - - - - - -

Vikram Cement Unit-I Madhya Pradesh 2.6 2.6 2.7 3.1 3.2 3.3 3.7

Vikram Cement Unit-II Madhya Pradesh - - - - - - 0.0

Vikram Super Cement Madhya Pradesh - - - - - - 0.0

Ambuja Cement Ltd 9.8 11.9 13.2 14.5 15.1 16.4 16.8Ambuja Cement Gujarat 1.4 1.6 1.6 1.6 1.5 1.6 1.5

Ambuja Cement - Bhatinda (G) Punjab 0.3 0.3 0.4 0.4 0.6 0.6 0.6

Ambuja Cement - Sankrail (G) West Bengal 0.7 0.9 0.9 1.1 1.1 1.3 1.2

Ambuja Cement Eastern Chhattisgarh 0.8 0.5 0.6 0.8 0.7 0.9 1.0


Ambuja Cement Raj Ltd. Rajasthan 1.3 1.4 1.5 1.6 1.8 1.7 1.8

Gajambuja Cement Gujarat 2.8 2.9 2.9 3.2 3.0 3.3 3.2

Gujarat Ambuja Unit HP Himachal Pradesh 1.0 0.9 1.0 1.0 1.1 1.2 1.2

Gujarat Ambuja Unit Ropar (G) Punjab 1.5 1.8 1.9 2.4 2.7 2.8 2.8

Maratha Cement Maharashtra - 1.6 2.4 2.5 2.6 3.0 3.4Gujarat Sidhee Cement Gujarat 0.7 0.5 0.6 0.6 0.9 1.3 1.3

Idcol Cement Orissa 0.7 0.8 0.5 - - - -India Cements 6.3 5.8 6.4 6.5 8.4 8.8 9.2Chilamkur Works Andhra Pradesh 0.8 0.9 1.1 1.0 1.2 1.4 1.3

Dalavoi Tamil Nadu 1.0 1.0 1.0 1.0 1.1 1.1 1.3

Raasi Cement (India) Andhra Pradesh 1.3 1.0 1.1 1.2 2.2 2.4 2.5

Sankaridurg Tamil Nadu 0.4 0.4 0.4 0.4 0.5 0.6 0.6

Sankarnagar Tamil Nadu 1.1 1.4 1.3 1.4 1.6 1.5 1.8

Sri Vishnu Cement Andhra Pradesh 0.5 - - - - - -

Visaka Cement Andhra Pradesh 0.9 0.8 1.0 1.0 1.2 1.2 1.1

Yerraguntla Andhra Pradesh 0.3 0.3 0.4 0.5 0.6 0.6 0.6

continued….


…continued (million tonnes) State 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08Indo Rama Cement Maharashtra 0.5 0.6 0.6 0.6 0.5 0.6 0.7JK Corp 1.9 2.1 2.3 2.4 2.7 2.8 3.4Lakshmi Cement Unit-I Rajasthan 1.9 2.1 2.3 2.4 2.7 2.8 3.4JK Synthetics 2.3 2.9 3.0 3.3 3.5 3.6 3.7JK Mangrol Cement (G) Rajasthan 0.1 0.6 0.7 0.9 1.0 1.0 0.9Nimbahera - JK Cement Rajasthan 2.2 2.3 2.3 2.4 2.5 2.6 2.8JK Udaipur Udyog Rajasthan 0.7 - - - - - -J and K Jammu and Kashmir 0.1 0.1 0.1 0.1 0.2 0.2 0.2Jaiprakash Inds 4.2 4.7 4.7 5.4 6.3 7.1 7.1Jaypee Bela Madhya Pradesh 1.8 1.8 1.8 2.0 2.2 2.4 2.3Jaypee Rewa Madhya Pradesh 2.4 2.6 2.4 2.6 2.8 3.2 3.3Sadva Khurd (G) Uttar Pradesh 0.0 0.3 0.5 0.6 0.6 0.6 0.6Jaypee Ayodhya (G) Uttar Pradesh - - - 0.3 0.8 0.9 0.9KCP Andhra Pradesh 0.4 0.5 0.5 0.5 0.5 0.6 0.7Kalyanpur Cement Bihar 0.6 0.6 0.3 0.4 0.5 0.6 0.5Kanoria Inds. Karnataka 0.2 0.2 0.2 0.1 0.1 0.0 -Kesoram Inds. 2.3 2.5 2.9 3.1 3.1 3.5 4.5Kesoram Cement Andhra Pradesh 0.7 0.7 0.8 1.0 1.0 1.1 1.2Vasavadatta Unit-I Karnataka 1.5 1.8 2.0 2.1 2.1 2.5 3.3Vasavadatta Unit-II Karnataka - - - - - - -Lafarge 3.8 3.7 3.8 4.4 4.6 4.7 5.0Arasmeta Cement Chhattisgarh 1.3 0.8 0.9 1.3 1.3 1.4 1.5 Madhya Pradesh - - - - - - -Lafarge - Jojobera (G) Bihar - - - - - - - Jharkhand 2.1 2.5 2.4 2.6 2.7 2.8 3.0Lafarge - Sonadih Chhattisgarh 0.4 0.4 0.5 0.5 0.5 0.4 0.5 Madhya Pradesh - - - - - - -Madras Cements 3.1 3.4 3.5 3.7 4.6 6.1 5.6Alathiyur Works Tamil Nadu 1.3 0.8 0.6 0.5 0.8 1.6 1.0Alathiyur Works-II Tamil Nadu 0.3 0.9 1.1 1.3 1.6 1.9 1.9Jayantipuram Andhra Pradesh 1.0 0.8 0.7 0.7 1.0 1.3 1.4Ramasamyraja Nagar Tamil Nadu 0.6 1.0 1.1 1.1 1.2 1.3 1.2Malabar Cements 0.4 0.4 0.5 0.6 0.7 0.6 0.6Malabar Cements Kerala 0.4 0.4 0.5 0.4 0.5 0.5 0.4Malabar Cements (G) Kerala - - - 0.1 0.2 0.2 0.1Mangalam Cement 1.4 1.4 1.3 1.4 1.6 1.4 1.5Mangalam Cement Rajasthan 0.4 0.5 0.4 0.5 0.5 0.5 0.5Neer Shree Cement Rajasthan 0.9 0.9 1.0 0.9 1.1 0.9 1.0Mawnluh Cherra Meghalaya 0.1 0.1 0.1 0.1 0.1 0.1 0.1Mysore Cement 1.8 2.1 2.0 1.8 2.0 2.1 2.2Diamond Cement - Jhansi (G) Uttar Pradesh 0.7 0.8 0.8 0.8 0.7 0.8 0.8Diamond Cement Unit-I Madhya Pradesh 0.3 0.3 0.3 0.4 0.5 0.6 0.5Diamond Cement Unit-II Madhya Pradesh 0.5 0.6 0.5 0.5 0.5 0.5 0.6Mysore Cement Karnataka 0.3 0.4 0.4 0.2 0.4 0.3 0.3My Home Industries Andhra Pradesh n.a. n.a. n.a. n.a. 0.9 1.7 2.5 continued….


…continued (million tonnes) State 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08OCL India Orissa 1.0 1.2 1.2 1.3 1.6 1.9 2.0Orient Cement 1.4 1.5 1.7 2.0 2.1 2.2 2.4Orient Cement Andhra Pradesh 1.1 1.0 1.1 1.3 1.3 1.4 1.5Orient Cement-Jalgaon Maharashtra 0.3 0.5 0.6 0.7 0.8 0.8 0.9Panyam Cements Andhra Pradesh 0.1 0.0 0.1 0.1 0.0 0.0 0.4Penna Cement 0.6 1.0 1.2 2.0 1.7 2.7 2.8Tadpatri Andhra Pradesh 0.6 1.0 1.2 1.3 1.1 1.7 1.7Ganeshpahad Andhra Pradesh - - - 0.7 0.6 1.0 1.1Prism Cement Madhya Pradesh 2.0 1.9 2.0 1.9 2.1 2.2 2.4Priyadarshini Andhra Pradesh 0.7 0.7 0.3 0.8 1.0 1.1 1.6Sanghi Industries Gujarat - - 0.7 1.2 1.8 2.4 2.5Saurashtra Cement Gujarat 0.8 0.8 0.6 0.8 1.1 1.4 1.4Shree Cement 2.4 2.7 2.8 3.0 3.2 4.8 6.3Raj Cement Rajasthan - - - - - - -Shree Cement Rajasthan 2.4 2.7 2.8 3.0 3.2 4.8 6.3Shriram Cement Rajasthan 0.3 0.3 0.3 0.3 0.4 0.4 0.4Sri Vishnu Cement Andhra Pradesh - - - - - - -Tamil Nadu Cement 0.7 0.8 0.9 0.8 0.8 0.7 0.7Alangulam Tamil Nadu 0.3 0.2 0.3 0.2 0.3 0.2 0.1Ariyalur Tamil Nadu 0.4 0.5 0.6 0.6 0.5 0.5 0.5TISCO - - - - - - -Tisco (G), Bihar Bihar - - - - - - -Tisco (Raipur) Madhya Pradesh - - - - - - -Ultratech Cemco 11.8 12.0 12.2 12.9 13.7 14.6 15.1ARCW (G) Tamil Nadu 0.5 0.8 0.7 0.7 0.8 0.9 1.0Jafrabad Gujarat 0.3 0.0 0.1 0.2 0.2 0.2 0.4L&T - Andhra Pradesh Andhra Pradesh 1.7 2.0 2.3 2.2 2.0 2.1 2.1L&T - Awarpur Phase-I Maharashtra 2.6 3.1 3.3 3.2 3.1 3.4 3.4L&T - Gujarat Gujarat 3.2 3.3 2.9 3.0 3.6 3.5 3.6L&T - Jharsuguda (G) Orissa 0.7 0.6 0.5 0.8 0.9 0.9 0.9L&T Hirmi Chhattisgarh 1.9 1.3 1.3 1.4 1.4 1.7 1.7 Madhya Pradesh - - - - - - -Magdalla (G) Gujarat 0.4 0.1 0.2 0.5 0.6 0.6 0.5Ratnagiri (G) Maharashtra 0.3 0.2 0.1 0.2 0.2 0.3 0.4WBCW (G) West Bengal 0.1 0.7 0.7 0.8 1.0 1.1 1.1Zuari Inds. 1.7 2.2 2.4 2.5 2.8 3.2 3.3Sri Vishnu Cement Andhra Pradesh 0.1 0.7 0.7 0.8 1.1 1.2 1.3Zuari Cement Andhra Pradesh 1.6 1.6 1.7 1.7 1.8 2.0 2.0Meghalaya Cement Meghalaya Cement - - - - - 0.2 0.5Total 102.0 111.4 117.4 127.6 140.5 155.4 167.6G: Grinding unit Notes 1) Figures for Modi Cement and Raasi Cement from 1998-99, have been included in Gujarat Ambuja as Ambuja Cement Eastern and in India Cement as Raasi Cement (India) respectively. 2) Figures for DLF Cement have been included with those of Gujarat Ambuja, as Ambuja Cement Rajasthan Ltd since April 2000. 3) Figures of Indian Rayon, Narmada Cement, Shree Digvijay and Tisco from 1999-2000 have been included with those of Grasim, Ultratech Cement, Grasim and Lafarge, respectively. 4) Raymond Woollens has been acquired by Lafarge in 2000. 5) Sri Vishnu Cement's figures have been included with Zuari Cement from February 2002. 6) Idcol Cement was acquired by ACC in December 2003 5) Khalari, HMP, UP Cement have been excluded owing to nil production for the last 6 years. Source: CMA


Table 6: Cement - Player-wise operating rates (large units)

(per cent) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

ACC 77.0 86.4 91.3 91.1 96.0 92.8 100.5

Andhra Cements 64.8 59.2 36.9 43.0 18.4 35.3 64.4

Binani Cement 116.4 128.0 119.3 104.2 105.3 110.4 134.5

Birla Corp 103.8 101.0 99.8 105.0 100.7 90.9 91.3

CCI 15.8 13.9 15.0 20.9 24.5 26.6 23.6

Century Textiles 109.4 111.3 115.7 102.9 105.3 107.1 104.4

Chettinad Cement 93.8 93.4 106.2 122.8 131.1 149.1 161.4

DLF Cement - - - - - - -

Dalmia Cement 98.2 117.9 103.3 104.8 126.3 78.2 94.1

Grasim 81.9 86.9 87.5 91.8 102.3 107.0 109.7

Ambuja Cement Ltd 91.8 97.9 105.6 99.3 101.6 108.0 102.3

Gujarat Sidhee Cement 60.7 45.0 49.6 45.9 77.6 106.6 105.6

Idcol Cement 74.0 88.2 79.1 - - - -

India Cements 69.9 65.6 72.2 73.8 95.7 99.4 104.0

Indo Rama Cement 50.1 55.5 56.8 60.2 48.9 55.0 66.5

JK Corp. 85.1 96.3 101.4 109.5 119.4 127.6 106.8

JK Synthetics 84.0 96.5 91.7 101.3 102.7 93.6 90.7

JK Udaipur Udyog 79.1 - - - - - -

J and K 67.9 56.9 59.6 70.2 79.7 77.2 77.6

Jaiprakash Inds 102.4 101.9 102.3 96.9 103.5 107.0 106.5

KCP 62.7 86.3 81.0 84.3 92.4 94.8 111.7

Kalyanpur Cement 62.5 56.2 33.9 36.9 45.6 58.7 53.9

Kanoria Inds 58.4 48.2 58.3 40.7 30.9 4.7 0.0

Kesoram Inds 107.6 119.0 136.5 148.4 118.6 121.6 104.2

Lafarge 85.5 83.1 75.2 87.8 91.5 93.5 99.5

Madras Cements 79.8 69.1 64.6 67.0 83.2 112.1 102.2

Malabar Cements 93.7 97.7 108.8 90.5 110.1 100.2 91.8

Mangalam Cement 136.2 141.6 134.1 136.9 161.0 141.7 150.7

Mawnluh Cherra 52.8 51.8 49.6 46.6 50.1 50.6 42.2

Mysore Cement 84.9 98.8 94.7 88.0 97.6 101.9 105.2

My Home Industries - - - - 101.5 110.2 93.1

OCL India 104.2 115.4 95.0 105.5 124.2 112.3 111.1

Orient Cement 70.3 76.4 85.2 86.3 88.0 90.8 97.1

Panyam Cements 25.2 6.6 19.8 14.3 1.7 0.0 81.5

Penna Cement 77.9 100.5 115.2 80.5 82.3 107.1 112.1

Prism Cement 80.0 77.2 81.1 75.8 84.8 87.6 96.4

Priyadarshini 119.8 116.1 49.3 112.4 96.4 104.8 107.7

Sanghi Industries - - 26.3 46.5 70.3 92.8 96.9

Saurashtra Cement 72.7 65.0 54.2 67.9 91.9 116.9 120.5

Shree Cement 112.5 105.6 109.3 116.0 99.6 106.6 105.5

Shriram Cements 138.5 147.5 147.5 160.3 196.8 184.6 184.5

Sri Vishnu Cement - - - - - - -

Tisco - - - - - - -

Continued….


…continued

(per cent) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08Tamil Nadu Cement 77.1 87.4 95.5 89.6 87.2 81.5 74.7

Ultratech Cement Ltd 78.7 73.8 71.7 76.0 80.6 86.1 88.1

Zuari Inds 77.5 66.1 70.0 74.4 83.5 94.0 96.5

Total 78.5 80.1 80.2 82.2 88.9 93.0 95.4G: Grinding unit

Notes

1) Figures for Modi Cement and Raasi Cement from 1998-99 have been included in Gujarat Ambuja as Ambuja Cement

Eastern and India Cements as Raasi Cement, respectively.

2) Figures for Indian Rayon, Narmada Cement, Shree Digvijay, Sri Vishnu Cement and Tisco from 1999-2000 have been

included with those of Grasim, Ultratech Cement, Grasim, India Cements and Lafarge, respectively.

3) Raymond Woollens has been acquired by Lafarge in 2000.


5) Khalari, HMP, UP Cement have been excluded owing to nil production for the last 6 years.

6) Figures for DLF Cement have been included with those of Gujarat Ambuja, as Ambuja Cement Rajasthan Ltd since April 2000.

Source: CMA

Table 7: Cement - Variety-wise production (million tonnes) OPC Percentage PPC Percentage PBFS Percentage Others1 Percentage Total of total of total of total of total Seventh Plan 1985-86 13.1 40.7 14.4 45.1 4.4 13.6 0.2 0.6 32.11986-87 18.0 51.8 12.5 35.9 4.1 11.7 0.2 0.6 34.81987-88 23.0 61.6 9.7 25.9 4.4 11.8 0.3 0.7 37.41988-89 27.9 66.7 8.8 21.1 4.8 11.5 0.3 0.7 41.81989-90 30.6 71.3 7.5 17.4 4.6 10.8 0.3 0.6 42.9Annual plan 1990-91 31.9 69.7 8.9 19.4 4.8 10.4 0.2 0.5 45.81991-92 35.4 70.0 9.2 18.2 5.6 11.0 0.4 0.7 50.6Eighth Plan 1992-93 36.5 71.9 8.3 16.4 5.4 10.6 0.6 1.1 50.71993-94 38.7 71.5 9.2 17.1 5.3 9.8 0.9 1.6 54.11994-95 41.2 70.6 10.7 18.3 5.8 10.0 0.7 1.1 58.41995-96 45.0 69.8 11.8 18.2 7.1 11.0 0.6 1.0 64.51996-97 48.5 69.2 13.6 19.4 7.3 10.5 0.6 0.8 70.0Ninth Plan 1997-98 54.3 70.8 14.5 18.9 7.5 9.7 0.5 0.7 76.71998-99 57.4 70.3 15.6 19.1 8.2 10.1 0.5 0.6 81.71999-2000 62.8 67.0 21.3 22.0 9.4 10.0 0.8 0.8 94.22000-01 58.1 62.0 24.5 26.2 10.3 11.1 0.7 0.8 93.62001-02 57.7 56.3 32.3 31.5 11.9 11.6 0.5 0.5 102.4Tenth Plan 2002-03 56.1 50.3 43.1 38.7 11.6 10.4 0.6 0.5 111.32003-04 53.5 45.5 52.1 44.4 11.3 9.6 0.6 0.5 117.52004-05 56.0 43.9 60.2 47.2 10.7 8.4 0.6 0.5 127.62005-06 55.3 39.5 73.4 52.5 11.2 8.0 0.1 0.1 139.92006-07 48.6 31.2 93.6 60.1 12.9 8.3 0.7 0.4 155.7Eleventh Plan 2007-08 43.8 26.0 111.1 66.0 13.5 8.0 0.0 0.0 168.31 Others includes sulphate resistant cement; Indian railway standard-40; low heat and special cement Source: CMA


Table 8: Cement - Company-wise changes in product mix (per cent) 2001-02 2002-03 2003-04

OPC PPC PBFSC Others1 OPC PPC PBFSC Others1 OPC PPC PBFSC Others1

ACC 20.2 59.2 20.5 0.1 18.1 65.2 16.5 0.2 16.1 68.1 15.6 0.2

Andhra Cements 66.1 14.9 18.9 - 53.7 22.5 23.8 - 35.6 27.3 37.0 -

Binani Cement 100.0 - - - 83.5 16.5 - - 78.3 21.7 - -

Birla Corp 50.5 36.3 12.6 0.6 43.9 44.0 12.1 - 37.3 49.8 12.9 -

CCI 94.3 5.7 - - 91.9 8.1 - - 85.3 9.4 - 5.3

Century Textiles 32.8 58.6 8.5 - 25.9 63.3 10.8 - 25.1 67.6 7.3 -

Chettinad Cement 31.4 64.7 2.1 1.9 33.6 62.3 2.3 1.8 34.4 62.6 0.7 2.4

Dalmia Cement 46.9 48.3 1.0 3.8 53.1 41.7 0.4 4.8 51.3 42.6 0.2 5.9

DLF Cement - - - - - - - - - - - -

Grasim 79.9 9.9 8.0 2.1 65.5 24.9 7.0 2.5 54.9 36.2 6.5 2.4

Ambuja Cement Ltd 60.0 33.8 6.0 0.2 63.4 32.8 3.7 0.1 61.1 35.6 3.3 0.1

Gujarat Sidhee Cement 98.6 1.4 - - 92.0 8.0 - - 89.3 10.7 - -

Idcol Cement 31.5 1.0 67.5 - 27.3 1.1 71.6 - 23.1 9.0 67.9 -

India Cements 65.5 34.5 - 0.04 64.5 35.5 - - 60.4 39.6 - -

Indo Rama Cement - - 100.0 - - - 100.0 - - - 100.0 -

J and K 100.0 - - - 100.0 - - - 100.0 - - -

Jaiprakash Inds 40.2 58.4 - 1.4 30.9 67.3 - 1.8 25.8 72.4 - 1.8

JK Corp 82.0 18.0 - - 80.3 19.7 - - 64.8 35.2 - -

JK Synthetics 87.2 10.9 - 1.9 85.7 14.3 - - 68.6 31.4 - -

JK Udaipur Udyog 100.0 - - - 100.0 - - - - - - -

Kalyanpur Cement 10.5 - 89.5 - 10.7 - 89.3 - 9.1 - 90.9 -

Kanoria Inds 4.5 - 95.5 - 5.4 - 94.6 - 9.1 - 90.9 -

KCP 92.3 7.7 - - 71.5 28.5 - - 51.2 48.8 - -

Kesoram Inds 95.4 4.6 - - 86.9 13.1 - - 69.7 30.3 - -

Lafarge 11.4 45.3 43.2 - 11.4 48.2 40.4 - 12.5 46.4 41.1 -

Continued…


…continued

(per cent) 2004-05 2005-06 2006-07


ACC 17.6 63.9 18.4 0.1 16.9 64.4 18.7 0.0 11.9 68.0 20.2 0.0

Andhra Cements 31.1 30.6 38.3 - 33.3 33.3 33.3 0.0 38.0 35.6 26.4 0.0

Binani Cement 71.3 28.7 - - 60.9 39.1 0.0 0.0 51.2 48.8 0.0 0.0

Birla Corp 36.4 50.0 13.6 - 30.7 55.9 13.8 0.0 19.2 69.6 11.0 0.2

CCI 88.7 7.3 - 4.0 94.3 6.8 0.0 0.0 85.6 6.9 0.0 7.5

Century Textiles 11.1 83.5 5.4 - 8.5 85.2 6.3 0.0 5.0 87.4 7.6 0.0

Chettinad Cement 24.3 74.6 - 1.0 12.7 84.1 3.6 0.0 8.8 80.6 10.2 0.5

Dalmia Cement 44.3 48.6 0.2 6.9 32.8 57.3 6.0 1.4 29.3 65.8 0.0 4.9

DLF Cement - - - -

Grasim 54.3 41.6 2.1 2.0 50.6 46.2 3.1 0.3 38.6 56.1 3.8 1.4

Ambuja Cement Ltd 59.9 38.5 1.6 - 38.2 61.6 0.0 0.0 24.4 75.4 0.0 0.3

Gujarat Sidhee Cement 91.8 8.2 - - 88.6 12.8 0.0 0.0 80.5 19.5 0.0 0.0

Idcol Cement - - - - 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

India Cements 53.7 46.2 - - 54.4 46.0 0.0 0.0 47.3 52.7 0.0 0.0

Indo Rama Cement - - 100.0 - 0.0 0.0 100.0 0.0 0.0 0.0 100.0 0.0

J and K 100.0 - - - 100.0 0.0 0.0 0.0 100.0 0.0 0.0 0.0

Jaiprakash Inds 29.1 69.5 - 1.5 30.0 69.2 0.0 0.0 23.5 74.8 0.0 1.7

JK Corp 66.8 33.2 - - 54.5 46.1 0.0 0.0 38.0 62.1 0.0 0.0

JK Synthetics 76.0 24.0 - - 61.5 38.7 0.0 0.0 0.0 0.0 0.0 0.0

JK Udaipur Udyog - - - - 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Kalyanpur Cement 7.7 0.0 92.3 - 0.0 0.0 100.0 0.0 1.6 34.6 63.9 0.0

Kanoria Inds 3.3 0.0 96.7 - 0.0 0.0 100.0 0.0 0.0 0.0 100.0 0.0

KCP 54.3 45.7 - - 51.0 49.0 0.0 0.0 96.8 3.2 0.0 0.0

Kesoram Inds 55.9 44.1 - - 53.5 46.3 0.0 0.0 49.7 50.3 0.0 0.0

Lafarge 11.5 52.4 36.1 0.0 10.5 56.9 32.4 0.0 5.2 62.1 32.7 0.0

continued…


…continued

(per cent) 2001-02 2002-03 2003-04


Madras Cements 13.0 77.4 9.6 - 5.0 92.6 2.4 - 8.7 89.8 1.5 -

Malabar Cements 10.3 89.7 - - 6.3 93.6 0.2 - 9.5 80.5 10.0 -

Mangalam Cement 86.2 13.8 - - 88.0 12.0 - - 76.0 24.0 - -

Mawnluh Cherra 100.0 - - - 100.0 - - - 100.0 - - -

Mysore Cement 14.4 69.8 15.8 - 10.6 72.8 16.6 - 1.4 80.4 18.1 -

Narmada Cement - - - - - - - - - - - -

OCL India 3.0 2.9 90.7 3.4 6.8 12.2 80.9 0.2 7.3 13.7 78.7 0.3

Orient Cement 99.7 0.3 - - 91.7 8.3 - - 72.2 27.8 - -

Panyam Cements 100.0 - - - 85.5 1.2 13.3 - 100.0 - - -

Penna Cement 96.8 - 3.2 - 96.8 - 3.2 - 78.5 - 21.5 -

Prism Cement 76.5 23.5 - - 61.5 38.5 - - 51.0 49.0 - -

Priyadarshini 94.1 0.3 5.5 - 74.7 15.1 10.2 - 92.8 5.9 1.3 -

Raymond Woollens - - - - - - - - - - - -

Sanghi Industries Ltd - - - - - - - - 100.0 - - -

Saurashtra Cement 96.6 0.4 0.1 3.0 96.0 0.3 0.3 3.4 92.5 0.9 0.8 5.8

Shree Cement 74.9 25.1 - - 72.7 27.3 - - 62.6 37.4 - -

Shree Digvijay - - - - - - - - - - - -

Shriram Cement 68.9 29.3 - 1.8 63.4 31.6 - 5.0 60.1 36.6 - 3.3

Sri Vishnu Cement - - - - - - - - - - - -

Tamil Nadu Cement 63.4 36.6 0.0 - 79.8 20.2 0.1 - 77.1 22.8 0.0 0.0

Ultratech Cement Ltd 68.3 15.9 15.4 0.4 56.6 27.8 15.3 0.3 53.7 33.1 13.1 0.1

Zuari Inds. 87.1 12.9 - - 73.1 26.9 - - 63.2 36.8 - -

continued…


continued…

(per cent) 2004-05 2005-06 2006-07 OPC PPC PBFSC Others1 OPC PPC PBFSC Others1 OPC PPC PBFSC Others1

Madras Cements 9.8 89.4 0.9 - 13.6 87.3 0.1 0 17.3 81.8 0.9 0.0

Malabar Cements 5.1 94.0 0.9 - 0.0 100.0 0.0 0.0 1.0 98.4 0.6 0.0

Mangalam Cement 64.0 36.0 - - 59.4 41.4 0.0 0.0 47.2 52.8 0.0 0.0

Mawnluh Cherra 100.0 - - - 100.0 0.0 0.0 0.0 100.0 0.0 0.0 0.0

Mysore Cement 0.5 81.8 17.7 - 0.0 85.0 15.0 0.0 0.3 85.9 13.9 0.0

Narmada Cement - - - - - - - - - - - -

OCL India 1.4 19.3 73.8 5.5 0.1 22.2 81.0 0.0 0.1 0.0 97.8 2.1

Orient Cement 66.5 33.5 - - 66.7 33.1 0.0 0.0 41.4 58.6 0.0 0.0

Panyam Cements 100.0 - - - 0.0 0.0 0.0 0.0 73.1 26.9 0.0 0.0

Penna Cement 78.9 2.6 17.5 0.9 46.7 7.5 45.6 0.0 37.7 12.8 49.5 0.0

Prism Cement 47.2 52.8 - - 41.0 58.9 0.0 0.0 13.0 87.0 0.0 0.0

Priyadarshini 77.8 22.2 - - 40.0 60.0 0.0 0.0 36.1 63.9 0.0 0.0

Raymond Woollens - - - - - - - - - - - -

Sanghi Industries Ltd 100.0 - - 4.4 100.0 0.0 0.0 0.0 100.0 0.0 0.0 0.0

Saurashtra Cement 91.7 3.2 0.6 - 100.0 0.0 0.0 0.0 91.4 8.6 0.0 0.0

Shree Cement 59.6 40.4 - - 46.0 54.0 0.0 0.0 23.5 76.5 0.0 0.0

Shree Digvijay - - - - - - - - - - - -

Shriram Cement 27.5 69.7 - 2.7 25.0 75.0 0.0 0.0 25.2 74.8 0.0 0.0

Sri Vishnu Cement - - - - - - - - - - - -

Tamil Nadu Cement 76.6 23.4 - - 76.9 19.0 4.00 0.00 74.4 25.6 0.0 0.0

Ultratech Cement Ltd 50.5 38.3 11.2 - 53.6 39.5 7.1 0.0 45.2 47.9 6.9 0.0

Zuari Inds. 70.2 29.7 0.1 - 71.3 25.4 2.6 0.0 64.1 35.9 0.0 0.0

My Home Industries - - - - 59.9 39.9 0.0 0.0 47.0 53.0 0.0 0.0

Meghalaya Cement - - - - - - - - 6.9 93.1 0.0 0.0

OPC: Ordinary Porland Cement, PPC: Portland Pozzolana Cement, PBFSC: Portland Blast Furnace Slag Cement 1 Others includes sulphate resistant cement, Indian railway standard-40, low heat and special cement

Notes

1) Since 1999-2000, figures for Indian Rayon, Narmada Cement, Shree Digvijay and Tisco have been included with those of Grasim,

Ultratech Cement and Lafarge, respectively.



Source: CMA

Table 9: Cement - Trends in rail lead distance and proportion of rail despatches Rail lead Proportion of rail to total

(kms) (per cent)

2000-01 581 39.0

2001-02 563 35.0

2002-03 537 33.0

2003-04 537 34.0

2004-05 537 33.0

2005-06 562 36.0

2006-07 567 38.0

Source: CMA


Table 10: Company-wise cement despatches by rail and road

1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

(per cent) Rail Road Rail Road Rail Road Rail Road Rail Road Rail Road Rail Road Rail Road

ACC 51 49 47 53 46 54 49 51 47 53 47 53 46 54 50 50

Andhra Cements 16 84 7 93 9 91 12 88 18 82 21 79 10 90 9 91

Binani Cement 9 91 6 94 3 97 5 95 11 89 6 94 10 90 15 85

Birla Corp 36 64 37 63 35 65 36 64 34 66 29 71 31 69 32 68

Century Textiles 69 31 70 30 71 29 72 28 67 33 65 35 66 34 67 33

Chettinad Cement 27 73 29 71 17 83 23 77 28 72 18 82 23 77 29 71

Dalmia Cement 20 80 26 74 24 76 15 85 19 81 16 84 22 78 20 80

Grasim 47 53 39 61 33 67 33 67 34 66 34 65 35 65 44 56

Ambuja Cement Ltd 19 81 22 78 12 88 11 89 12 88 12 88 20 80 25 55

Gujarat Sidhee Cement 19 81 8 92 17 83 - 100 - 100 0 94 0 100 6 65

Idcol Cements 54 46 53 47 59 41 66 34 68 32 - -

India Cements 31 69 30 70 23 77 18 82 21 79 22 78 29 71 30 70

Jaiprakash Inds 32 68 33 67 34 66 26 74 31 69 34 66 41 59 46 54

Kesoram Inds 56 44 57 43 52 48 65 35 67 33 63 37 63 37 64 36

Lafarge 60 40 78 22 80 20 77 23 77 23 79 21 76 24 79 21

Madras Cements 6 94 8 92 6 94 2 98 5 95 6 94 16 84 23 77

Mangalam Cement 63 37 63 37 59 41 59 41 56 44 54 46 57 43 65 35

Mysore Cement 54 46 58 42 64 36 63 37 65 35 69 31 68 32 75 25

OCL India 50 50 47 53 45 55 34 66 49 51 57 43 61 39 67 33

Panyam Cements - 100 - 100 - 100 - 100 - 100 0 100 0 100 0 100

Sanghi Industries - - - - - - - - 4 96 18 77 16 84 9 47

Saurashtra Cement 11 89 11 89 6 94 1 99 7 93 4 59 1 99 18 35

Shree Cement 66 34 60 40 60 40 46 54 24 76 15 85 12 88 28 72

Shree Digvijay - - - - - - - - - - - -

Shriram Cement 70 30 41 59 39 61 43 57 39 61 30 70 31 69 36 64

Tamil Nadu Cement 7 93 5 95 4 96 - 100 2 98 3 97 2 98 9 91

Ultratech Cement Ltd 40 60 41 59 38 62 33 67 35 65 38 50 51 49 41 45

Zuari Inds 65 35 54 46 42 58 37 63 48 52 36 64 31 69 39 61

Total 41 59 39 61 35 65 33 67 34 66 33 66 36 64 38 57

Note

Despatches by road include those by sea.

Source: CMA


Table 11: Cement - Aggregate demand-supply (million tonnes) 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Opening stocks 4.4 6.3 6.6 5.4 5.9 6.1 5.6 5.9 6.7

(Cement and clinker)

Production 94.2 93.4 102.0 111.4 117.4 127.6 140.5 155.7 168.3

North 21.3 21.1 23.8 26.6 28.7 30.9 34.5 37.2 41.5

South 28.9 27.3 29.5 33.4 36.1 36.8 43.6 49.9 53.6

East 6.2 6.6 16.7 16.7 16.7 18.7 20.0 21.8 22.7

West 37.8 38.4 32.1 34.7 36.0 38.9 42.3 46.7 50.5

Demand (domestic) 91.9 90.0 99.0 107.6 113.8 121.1 135.6 149.0 164.0

North 28.7 28.1 31.5 34.1 36.3 38.4 34.6 45.8 49.8

South 25.7 23.8 26.1 29.7 31.5 30.8 44.4 44.0 48.7

East 12.0 12.9 16.3 17.0 17.5 20.3 19.8 24.0 25.3

West 25.5 25.2 25.1 26.9 28.6 31.6 36.8 35.2 40.2

Exports 3.1 5.1 5.0 6.9 8.1 9.9 9.2 5.9 3.7


Closing stocks 6.3 6.6 5.4 5.9 6.1 5.6 5.9 6.7 7.4


Capacity (available)1 109.7 115.9 130.0 139.0 146.4 153.6 158.1 167.1 175.7

North 24.8 26.0 28.4 31.0 32.4 35.1 37.0 40.6 43.6

South 31.6 33.5 41.3 44.6 46.3 46.9 49.8 53.2 55.8

East 8.8 8.9 21.8 22.3 23.0 23.4 24.0 25.2 26.5

West 44.6 47.4 38.5 41.0 44.8 47.0 47.3 48.1 49.8

Capacity utilisation (per cent) 85.9 80.6 78.5 80.1 80.2 83.1 88.9 93.1 95.81 Available capacity is the monthly add-up capacity

Notes

1) Operating rate has been calculated as cement production divided by available capacity.

2) Regional classification of states has changed from 2001-02, due to the formation of the new state of Chattisgarh. Hence,

figures for the regions (East and West) for 2001-02 are not comparable with earlier years with respect to capacity, demand

and production.

Source: CMA


Table 12: Cement - State-wise demand-supply

2000-01 2001-02 2002-03 2003-04

(million tonnes) Capacity1 Demand Capacity1 Demand Capacity1 Demand Capacity1 Demand

North 26.04 28.05 28.42 31.48 31.00 34.06 32.38 36.26

Chandigarh - 0.35 - 0.32 - 0.22 - 0.19

Delhi 0.50 2.67 0.50 2.94 0.50 2.97 0.50 3.39

Haryana 0.17 2.85 0.17 3.26 0.17 3.45 0.17 3.72

Himachal Pradesh 3.76 1.06 4.06 1.25 4.06 1.43 4.06 1.38

Jammu and Kashmir 0.20 0.73 0.20 0.79 0.20 0.71 0.20 0.81

Punjab 1.29 4.08 2.17 4.89 2.84 5.25 3.04 5.40

Rajasthan 16.07 4.74 17.07 5.21 18.43 6.16 18.89 6.61

Uttar Pradesh 4.05 11.58 4.25 12.00 4.80 12.74 5.52 13.40

Uttaranchal - - - 0.83 - 1.13 - 1.36

West 47.44 25.23 38.50 25.15 41.01 26.91 44.78 28.58

Goa - 0.29 - 0.34 - 0.36 - 0.49

Gujarat 12.49 6.34 13.43 7.53 14.01 7.38 17.12 7.84

Madhya Pradesh 26.67 5.50 15.98 4.05 16.19 5.01 16.19 5.57

Maharashtra 8.27 13.10 9.10 13.23 10.82 14.16 11.47 14.68

East 8.90 12.90 21.80 16.30 22.34 16.96 22.98 17.47

Assam 0.20 0.93 0.20 0.83 0.20 0.87 0.20 1.02

Bihar 4.63 4.15 1.62 3.28 1.62 3.20 1.62 3.13

Chhattisgarh - - 11.25 1.47 10.95 1.37 10.25 1.42

Jharkhand - - 3.47 1.40 3.47 1.77 4.58 2.03

Orissa 2.75 2.63 2.76 2.93 2.76 3.45 3.01 3.38

West Bengal 1.13 4.66 2.29 5.94 3.12 5.63 3.12 5.78

Meghalaya 0.20 0.52 0.20 0.45 0.20 0.67 0.20 0.72

South 33.53 23.80 41.27 26.08 44.61 29.66 46.25 31.47

Andhra Pradesh 17.59 5.87 19.54 6.75 20.02 7.75 21.10 8.01

Karnataka 6.92 4.98 9.74 6.16 9.89 7.13 10.19 8.23

Kerala 0.42 4.66 0.42 4.56 0.42 5.36 0.42 5.82

Tamil Nadu 8.60 8.12 11.57 8.32 14.28 9.07 14.55 9.10

Others2 - 0.17 - 0.29 - 0.35 - 0.31

Total 115.92 89.98 130.00 99.00 138.96 107.59 146.39 113.8

Continued….


…continued

2004-05 2005-06 2006-07 2007-08

(million tonnes) Capacity1 Demand Capacity1 Demand Capacity1 Demand Capacity1 Demand

North 35.12 38.37 37.05 41.26 40.59 45.78 43.61 49.79

Chandigarh - 0.19 - 0.26 - 0.37 - 0.42

Delhi 0.50 3.75 0.50 3.50 0.50 2.97 0.50 3.52

Haryana 0.17 4.25 0.17 4.93 0.17 5.59 0.28 6.96


Jammu and Kashmir 0.20 0.95 0.20 1.01 0.20 1.24 0.20 1.26

Punjab 3.91 5.23 4.20 5.66 4.20 6.50 4.25 6.60

Rajasthan 19.52 6.97 20.33 8.27 22.07 9.13 24.82 10.33

Uttar Pradesh 6.76 14.12 7.32 14.20 7.32 15.90 7.37 16.28

Uttaranchal - 1.47 - 1.83 - 2.22 - 2.54

West 47.05 31.62 47.31 32.76 47.81 35.20 48.29 40.21

Goa - 0.76 - 0.49 - 0.43 - 0.49

Gujarat 17.63 8.71 17.63 9.12 17.63 10.07 17.76 11.68

Madhya Pradesh 17.44 6.29 17.69 6.37 18.19 6.51 18.42 7.48

Maharashtra 11.98 15.85 12.00 16.78 12.00 18.19 12.11 20.56

East 23.43 20.33 24.00 22.66 25.23 23.99 26.55 25.33

Assam 0.20 1.12 0.20 1.09 0.20 1.04 0.20 1.08

Bihar 1.62 3.80 1.62 4.36 1.62 4.49 1.62 4.54

Chhattisgarh 10.67 2.06 10.82 3.08 10.82 3.52 10.97 3.81

Jharkhand 4.58 2.31 4.66 2.63 4.83 2.63 4.83 2.68

Orissa 3.04 3.86 0.20 0.77 0.20 0.94 0.29 1.24

West Bengal 3.12 6.22 3.04 4.15 3.43 4.43 3.58 4.72

Meghalaya 0.20 0.95 3.46 6.59 4.12 6.93 5.06 7.27

South 46.85 30.75 49.77 38.88 53.17 44.02 55.80 48.67

Andhra Pradesh 21.48 7.77 23.87 0.08 24.73 12.59 25.86 14.74

Karnataka 10.19 7.64 10.72 11.46 10.99 11.12 12.41 11.80

Kerala 0.62 6.07 0.62 9.38 0.62 6.97 0.62 7.13

Tamil Nadu 14.56 8.97 14.56 6.50 16.83 12.84 16.91 14.46

Others2 - 0.30 - 0.33 - 0.50 - 0.53

Total 153.59 121.07 158.13 135.56 166.80 148.99 174.25 164.00

Notes 1 Capacity is available cement capacity, which is the monthly add-up of capacity 2 Includes Pondicherry, and the Andaman and Nicobar Islands

Source: CMA


Table 13: Cement - State-wise trends in demand

(million tonnes) 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

North 28.7 28.1 31.5 34.1 36.3 38.4 41.3 45.8 49.8

Chandigarh 0.3 0.3 0.4 0.2 0.2 0.2 0.3 0.4 0.4

Delhi 2.8 2.7 2.9 3.0 3.4 3.7 3.5 3.0 3.5

Haryana 2.8 2.8 3.3 3.4 3.7 4.2 4.9 5.6 7.0

Himachal Pradesh 0.9 1.1 1.2 1.4 1.4 1.5 1.6 1.9 1.9

Jammu and Kashmir 0.6 0.7 0.8 0.7 0.8 0.9 1.0 1.2 1.3

Punjab 4.3 4.1 4.9 5.3 5.4 5.2 5.7 6.5 6.6

Rajasthan 5.2 4.7 5.2 6.2 6.6 7.0 8.3 9.1 10.3

Uttar Pradesh 11.8 11.6 12.0 12.7 13.4 14.1 14.2 15.9 16.3

Uttaranchal - - 0.8 1.1 1.4 1.5 1.8 2.2 2.5

West 25.5 25.2 25.1 26.9 28.6 31.6 32.8 35.2 40.2

Goa 0.3 0.3 0.3 0.4 0.5 0.8 0.5 0.4 0.5

Gujarat 7.5 6.3 7.5 7.4 7.8 8.7 9.1 10.1 11.7

Maharashtra 5.6 5.5 4.0 5.0 5.6 6.3 6.4 6.5 7.5

Madhya Pradesh 12.1 13.1 13.2 14.2 14.7 15.9 16.8 18.2 20.6

East 12.0 12.9 16.3 17.0 17.5 20.3 22.7 24.0 25.3

Assam 0.9 0.9 0.8 0.9 1.0 1.1 1.1 1.0 1.1

Bihar 3.9 4.2 3.3 3.2 3.1 3.8 4.4 4.5 4.5

Chhattisgarh - - 1.5 1.4 1.4 2.1 3.1 3.5 3.8

Jharkhand - - 1.4 1.8 2.0 2.3 2.6 2.6 2.7

Meghalaya 0.4 0.5 0.5 0.7 0.7 0.9 0.8 0.9 1.2

Orissa 2.1 2.6 2.9 3.5 3.4 3.9 4.1 4.4 4.7

West Bengal 4.7 4.7 5.9 5.6 5.8 6.2 6.6 6.9 7.3

South 25.6 23.8 26.1 29.7 31.5 30.8 38.9 44.0 48.7

Andaman and Nicobar 0.0 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1

Andhra Pradesh 7.7 5.9 6.7 7.7 8.0 7.8 11.5 12.6 14.7

Karnataka 4.9 5.0 6.2 7.1 8.2 7.6 9.4 11.1 11.8

Kerala 4.8 4.7 4.6 5.4 5.8 6.1 6.5 7.0 7.1

Pondicherry 0.1 0.1 0.2 0.2 0.2 0.3 0.3 0.4 0.4

Tamil Nadu 8.1 8.1 8.3 9.1 9.1 9.0 11.1 12.8 14.5

Total 91.7 90.0 99.0 107.6 113.8 121.1 135.6 149.0 164.0

Note

Regional classification of states has changed from 2001-02, due to the formation of the new state of

Chattisgarh. Hence, figures for the regions (east and west) for 2001-02 are not comparable with the

earlier years with respect to capacity, demand and production.

Source: CMA


Table 14: Cement - State-wise trends in demand growth

(per cent) 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

North 20.8 -2.3 12.2 8.2 6.5 5.8 7.5 10.9 8.8

Chandigarh -5.5 16.9 1.2 -36.9 -12.7 -2.1 39.9 38.3 15.6

Delhi 11.1 -5.1 10.3 0.8 14.1 10.7 -6.6 -15.2 18.5

Haryana 20.8 3.2 14.3 5.9 8.0 14.1 16.0 13.4 24.6

Himachal Pradesh 26.7 12.6 14.7 17.7 -3.4 5.0 9.6 17.4 1.0

Jammu and Kashmir -4.3 15.4 8.1 -10.3 14.6 17.1 7.0 22.3 1.4

Punjab 14.8 -5.0 19.8 7.5 2.8 -3.0 8.0 14.9 1.5

Rajasthan 14.8 -8.0 9.9 18.3 7.2 5.4 18.7 10.3 13.1

Uttar Pradesh 31.2 -2.1 3.6 6.1 5.2 5.3 0.6 11.9 2.4

Uttaranchal - - - 35.8 20.4 8.4 24.4 21.6 14.3

West 6.3 -0.9 -0.3 7.0 6.2 10.6 3.6 7.5 14.2

Goa -4.9 15.4 15.6 5.9 37.4 55.0 -36.4 -11.4 14.3

Gujarat -9.4 -15.6 18.8 -2.0 6.3 11.0 4.7 10.4 15.9

Maharashtra 17.1 -1.4 -26.4 23.8 11.1 13.0 1.3 2.2 15.0

Madhya Pradesh 10.8 8.1 1.0 7.0 3.7 8.0 5.9 8.4 13.0

East 22.3 7.9 26.4 4.1 3.0 16.3 11.5 5.9 5.6

Assam 37.0 9.5 -11.1 5.0 17.1 9.7 -2.9 -4.3 3.9

Bihar 19.8 5.1 -20.9 -2.4 -2.4 21.5 14.7 3.1 1.0

Chhattisgarh - - - -6.7 3.9 44.6 49.6 14.3 8.2

Jharkhand - - - 26.1 14.9 14.1 13.7 0.1 1.8

Meghalaya 38.2 40.8 -13.9 48.1 7.7 32.3 -19.1 22.9 31.1

Orissa 9.3 27.6 11.6 17.8 -2.2 14.4 7.4 6.9 6.5

West Bengal 27.4 -1.4 27.2 -5.1 2.7 7.6 5.9 5.1 5.0

South 15.6 -7.0 9.6 13.7 6.1 -2.3 26.4 13.2 10.6

Andaman and Nicobar -2.9 187.4 61.6 -5.0 -37.2 -26.1 51.5 44.8 -3.0

Andhra Pradesh 21.4 -23.8 14.9 14.8 3.4 -2.9 47.5 9.8 17.1

Karnataka 14.0 2.1 23.8 15.8 15.4 -7.2 22.8 18.5 6.2

Kerala 17.0 -2.3 -2.3 17.7 8.6 4.3 7.0 7.3 2.2

Pondicherry -6.1 26.8 80.9 37.6 -1.1 3.3 31.3 18.1 8.9

Tamil Nadu 11.1 -0.1 2.5 8.9 0.3 -1.4 24.1 15.4 12.6

Total 15.2 -1.9 10.0 8.7 5.8 12.1 12.0 9.9 10.1

Note

Regional classification of states has changed from 2001-02, due to the formation of the new state of Chattisgarh. Hence,

figures for the regions (East and West) for 2001-02 are not comparable with the earlier years with respect to capacity,

demand and production.

Source: CMA


Table 15: Housing segment - Budget allocation

(Rs million) Housing, urban and Per cent of total

regional development plan outlay

Third plan (1961-66) 1,276 1.5

Annual plans (1966-69) 733 1.1

Fourth plan (1969-74) 2,702 1.7

Fifth plan (1974-79) 11,500 2.9

Annual plan (1979-80) 3,688 3.0

Sixth plan (1980-85) 28,391 2.6

Seventh plan (1985-90) 48,362 2.3

Annual plans (1990-92) 30,323 2.5

Eighth plan (1992-97) 138,043 2.7

Annual plan (1997-98) 21,175 1.6

Annual plan (1998-99) 31,435 2.1

Annual plan (1999-2000) 35,164 2.2

Annual plan (2000-01) 35,884 1.9

Annual plan (2001-02) 66,745 3.6

Annual plan (2002-03) 76,457 3.7

Annual plan (2003-04)1 86,292 3.5

Annual plan (2004-05)1 65,961 4.0

Tenth Plan (2002-06) 405,000 n.a.1 Revised estimates

Source: Economic survey and Ministry of Housing and Urban Poverty Alleviation


Table 16: Cement - State-wise trends in per capita consumption (kilograms) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Andhra Pradesh 106 127 125 134 164 179 181

Assam 36 31 40 38 42 36 37

Bihar 38 40 37 42 50 49 40

Chandigarh 387 269 200 185 228 314 396

Chhattisgarh 67 66 65 80 127 154 n.a

Delhi 204 213 211 248 217 196 199

Goa 203 191 230 413 288 211 259

Gujarat 149 156 160 177 173 188 219

Haryana 149 162 162 195 205 233 315

Himachal Pradesh 214 237 221 245 246 292 246

Jammu and Kashmir 80 73 71 89 92 106 112

Jharkhand 45 62 68 81 87 92 n.a

Karnataka 112 131 153 149 164 196 207

Kerala 141 160 178 187 193 205 207

Madhya Pradesh 74 87 95 112 108 110 83

Maharashtra 139 144 149 155 166 170 209

Orissa 81 94 95 108 114 117 124

Pondicherry 227 218 222 205 241 296 318

Punjab 185 219 214 215 214 240 258

Rajasthan 98 117 125 129 145 154 170

Tamil Nadu 136 146 147 152 172 195 221

Uttranchal 91 119 147 159 182 233 n.a

Uttar Pradesh 71 74 77 80 77 86 13

West Bengal 68 70 69 73 79 79 84

Others 39 45 59 66 60 67 n.a

Total 97 106 110 118 125 136 148

Note

Others include other north-eastern states.

Source: CMA and CRISIL Research

Figure 1: Cement - Capacity and production trends

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

(Mill

ion

tonn

es)

Capacity 2005-06 Capacity 2006-07 Capacity 2007-08

Production 2005-06 Production 2006-07 Production 2007-08

Source: CMA


Figure 2: Cement - Production and consumption trends

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

(Mill

ion

to

nn

es)

2005-06 Production 2005-06 Consumption 2006-07 Production

2006-07 Consumption 2007-08 Production 2007-08 Consumption

Source: CMA


Table 1: State profile - Andhra Pradesh

(million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Capacity 19.5 20.0 21.1 21.5 23.9 24.7 25.9

Production 13.2 13.3 14.0 14.3 18.6 22.0 24.4

Consumption 6.7 7.7 8.0 7.8 11.5 12.6 14.7

Growth (per cent) 14.9 14.8 3.4 -2.9 47.5 9.8 17.1

Gross surplus/(deficit) 6.4 5.5 6.0 6.5 7.2 9.4 9.6

Inflows

From other states (excluding Andhra Pradesh) 0.9 1.2 1.4 1.4 1.9 1.8 2.0

- Maharashtra 0.4 0.6 0.6 0.6 0.8 0.9 0.9

- Karnataka 0.4 0.5 0.7 0.7 1.0 1.0 1.0

- Madhya Pradesh 0.0 0.0 0.0 0.0 0.0 0.0 0.0

- Chhattisgarh 0.1 0.1 0.1 0.1 0.0 0.0 0.0

Andhra Pradesh 5.8 6.5 6.6 6.3 9.6 10.4 12.5

Outflows

To other states (excluding Andhra Pradesh) 7.7 6.8 7.3 7.8 10.1 11.3 11.8

- Tamil Nadu 2.3 1.8 1.7 1.6 2.3 2.7 3.1

- Karnataka 2.4 2.7 3.0 2.7 4.2 5.2 5.4

- Maharashtra 1.7 1.1 1.1 1.6 1.8 1.9 1.8

- Kerala 0.8 0.7 0.8 0.7 0.7 0.8 0.8

- Others 0.5 0.5 0.7 1.3 1.0 0.7 0.7

Andhra Pradesh 5.8 6.5 6.6 6.3 9.6 10.4 12.5

Adjusted surplus/(deficit) (0.4) (0.1) 0.1 (0.0) (1.4)

Market shares of key players

India Cements 23.3% 19.6% 18.8% 19.5% 20.3% 17.3% 14.6%

My Home Industries 0.0% 0.0% 0.0% 0.0% 10.2% 9.5% 10.9%

Zuari Inds. 6.0% 9.9% 10.9% 10.3% 9.0% 9.2% 8.5%

Penna Cement 4.4% 4.4% 5.0% 0%* 8.8% 9.6% 8.8%

Ultratech Cement 11.3% 10.3% 11.2% 11.3% 7.4% 6.9% 6.4%

Kesoram Inds. 7.0% 7.4% 7.5% 6.8% 5.9% 6.3% 7.6%

Orient Cement 6.7% 6.6% 7.0% 6.5% 5.3% 5.8% 6.0%

Madras Cements 9.8% 8.7% 7.9% 8.0% 6.4% 6.7% 6.6%

ACC 5.3% 6.9% 8.0% 8.4% 6.0% 4.5% 4.0%

Priyadarshini 6.2% 5.0% 2.8% 5.7% 4.9% 7.4% 6.5%

Prices in key centres in the state (Rs/bag)

Hyderabad 143 119 117 130 132 184 226

Note

Prices are wholesale prices for OPC-53 grade and are inclusive of excise, sales tax and octroi.

* In 2004-05, Details of penna cement were Not Available.

Source: CRISIL Research, CMA and Industry

2.0 State profile


Table 2: State profile - Chhattisgarh

(million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Capacity 11.3 11.0 10.2 10.7 10.8 10.8 11.0

Production 8.6 7.1 7.3 8.3 8.6 9.4 9.9

Consumption 1.5 1.4 1.4 2.1 3.1 3.5 3.8

Growth (per cent) - -6.7 3.9 44.6 49.6 14.3 8.2


Inflows

From other states (excluding Chhattisgarh) 0.0 0.0 0.0 0.0 0.1 3.2 3.5

- Chhattisgarh 1.5 1.4 1.4 2.0 3.0 0.4 0.3

Outflows

To other states (excluding Chhattisgarh) 7.0 5.6 5.8 6.3 5.5 6.0 5.7

-Madhya Pradesh 0.6 0.5 0.6 0.8 0.4 0.4 0.3

- West Bengal 2.7 1.5 1.6 1.7 1.4 1.6 1.7

- Bihar 0.7 0.5 0.6 0.6 0.5 0.7 0.8

- Maharashtra 0.6 0.4 0.3 0.2 0.1 0.1 0.2

- Assam 0.5 0.4 0.4 0.4 0.4 0.4 0.2

- Delhi 0.1 0.0 0.1 0.1 0.1 0.1 0.1

- Orissa 0.9 1.1 1.0 1.1 1.3 1.4 1.6

- Others 1.0 1.2 1.3 1.5 1.3 1.3 0.8

Chhattisgarh 1.5 1.4 1.4 2.0 3.0 3.4 3.7

Adjusted surplus/deficit 0.1 0.2 0.1 0.0 0.1 0.1 0.5


Century Textiles 15% 18% 20% 22% 24% 23% 22%

Grasim 16% 15% 15% 17% 30% 19% 18%

Lafarge 21% 22% 22% 21% 19% 18% 18%

Ultratech Cement 23% 20% 20% 19% 4% 18% 17%

ACC 14% 14% 12% 11% 11% 11% 12%

Gujarat Ambuja 12% 12% 10% 11% 9% 9% 10%

Notes

1) Prices are wholesale prices for OPC-53 grade and include excise, sales tax and octroi.

2) Regional classification of states has changed from 2001-02, due to the formation of a new state of Chattisgarh. Hence,

figures for the regions (East and West) for 2001-02 are not comparable with the earlier years, with respect to

capacity, demand and production.



Table 3: State profile - Delhi (million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Capacity 0.5 0.5 0.5 0.5 0.5 0.5 0.5

Production 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Consumption 2.9 3.0 3.4 3.7 3.5 3.0 3.5

Growth (per cent) 10.3 0.8 14.1 10.7 -6.6 -15.2 18.5

Gross surplus/(deficit) (2.9) (3.0) (3.4) (3.7) (3.5) (3.0) (3.5)

Inflows

From other states (excluding Delhi) 2.9 3.0 3.4 3.7 3.5 3.0 3.5

- Rajasthan 2.3 2.4 2.7 2.7 2.4 2.0 2.3

- Madhya Pradesh 0.5 0.4 0.4 0.7 0.7 0.7 0.8

- Others 0.1 0.2 0.3 0.3 0.5 0.3 0.4

Delhi 0.0 0.0 0.0 0.0 0.0 0.0 0.0


Shree Cement 15% 18% 18% 16% 18% 18% 18%

Ambuja Cement Ltd 12% 11% 12% 14% 14% 12% 13%

JK Synthetics 8% 12% 13% 13% 13% 15% 15%

Grasim 12% 13% 15% 16% 10% 13% 14%

ACC 5% 7% 9% 8% 8% 5% 7%

Jaiprakash Inds. 6% 3% 1% 3% 6% 6% 6%

Birla Corp. 6% 6% 5% 5% 6% 5% 6%

Mangalam Cement 5% 6% 5% 4% 6% 6% 4%

Shriram Cement 6% 7% 5% 4% 5% 5% 4%

JK Corp. 11% 9% 8% 7% 5% 4% 4%

Binani Cement 4% 4% 4% 3% 3% 4% 4%

Mysore Cement 2% 2% 1% 1% 2% 2% 1%

Lafarge 1% 0% 0% 1% 2% 1% 1%

Prices in the key centre in the state (Rs/bag)

Delhi 136 130 134 150 170 215 236

Note




Table 4: State profile - Gujarat

(million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Capacity 13.4 14.0 17.1 17.6 17.6 17.6 17.8

Production 10.5 10.1 10.3 11.7 13.6 15.2 15.4

Consumption 7.5 7.4 7.8 8.7 9.1 10.1 11.7

Growth (per cent) - -2.0 6.3 11.0 4.7 10.4 15.9


Inflows

From other states (excluding Gujarat) 1.9 2.0 1.7 2.0 2.0 1.9 2.1

- Rajasthan 1.6 1.8 1.5 1.6 2.0 1.8 2.1

- Madhya Pradesh 0.2 0.2 0.1 0.1 0.0 0.0 0.0

Gujarat 5.6 5.4 6.2 6.7 6.6 7.8 9.2

Outflows

To other states (excluding Gujarat) 4.9 4.7 4.2 4.9 6.9 2.3 2.8

- Maharashtra 2.0 1.7 1.3 1.5 1.9 2.0 2.6

- Rajasthan 0.2 0.2 0.1 0.1 0.1 0.0 0.0

- Kerala 0.3 0.1 0.0 0.0 0.0 0.0 0.0

- Karnataka 0.4 0.2 0.1 0.2 0.2 0.2 0.2

-Others 0.0 0.2 0.1 0.1 0.0 0.0 0.0

Gujarat 5.6 5.4 6.2 6.7 6.6 7.8 9.2

Adjusted surplus/(deficit) (0.0) (0.0) (0.0) 0.0 (0.5) 4.7 3.0



Gujarat Ambuja 25% 24% 23% 21% 20% 20% 20%

Sanghi Industries Ltd. 0% 0% 9% 13% 12% 14% 15%

JK Corp. 5% 8% 7% 7% 9% 9% 8%

Grasim 11% 11% 10% 9% 9% 9% 7%

Binani Cement 7% 9% 8% 7% 7% 6% 7%

Gujarat Sidhee Cement 8% 7% 8% 6% 7% 9% 7%

Saurashtra Cement 9% 10% 7% 6% 4% 5% 8%

JK Synthetics 3% 4% 2% 3% 2% 2% 1%


Ahmedabad 145 134 126 141 162 202 221

Surat 146 134 126 146 170 202 222

Note




Table 5: State profile - Haryana

(million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Capacity 0.2 0.2 0.2 0.2 0.2 0.2 0.3

Production 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Consumption 3.3 3.4 3.7 4.2 4.9 5.6 7.0

Growth (per cent) - 5.9 8.0 14.1 16.0 13.4 24.6


Inflows

From other states (excluding Haryana) 3.3 3.4 3.7 4.2 4.9 5.6 6.9

-Madhya Pradesh 0.3 0.3 0.4 0.6 0.8 1.0 1.1

- Rajasthan 2.6 2.6 2.7 3.0 3.3 3.8 4.8

- Punjab 0.1 0.1 0.2 0.3 0.4 0.4 0.6

-Himachal Pradesh 0.4 0.4 0.3 0.3 0.5 0.4 0.5

Haryana - - - - - - -


Grasim 14% 15% 16% 17% 19% 18% 17%

JK Synthetics 14% 17% 16% 18% 18% 20% 18%

Shree Cement 14% 16% 17% 17% 16% 19% 24%

Ambuja Cement Ltd 17% 15% 17% 15% 15% 14% 12%

ACC 5% 6% 7% 8% 9% 6% 7%

Birla Corp. 10% 10% 10% 9% 8% 8% 7%

Binani Cement 8% 8% 7% 6% 6% 6% 5%

JK Corp. 9% 8% 6% 6% 3% 3% 5%


Karnal 142 135 138 155 166 214 230

Notes







Table 6: State profile - Karnataka

(million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Capacity 9.7 9.9 10.2 10.2 10.7 11.0 12.4

Production 6.8 8.1 9.3 9.3 10.0 10.1 10.8

Consumption 6.2 7.1 8.2 7.6 9.4 11.1 11.8

Growth (per cent) - 15.8 15.4 -7.2 22.8 18.5 6.2

Gross surplus/(deficit) 0.6 1.0 1.0 1.7 0.6 -1.0 -1.0

Inflows

From other states (excluding Karnataka) 2.9 3.1 3.7 3.2 4.9 6.3 6.6

- Andhra Pradesh 2.4 2.7 3.0 2.7 4.2 5.2 5.4

- Tamil Nadu 0.2 0.3 0.5 0.6 0.5 0.7 0.8

- Others 0.4 0.2 0.1 0.0 0.3 0.4 0.4

Karnataka 3.2 4.0 4.6 4.3 4.5 4.8 5.2

Outflows

To other states (excluding Karnataka) 3.5 4.1 4.7 5.3 5.4 5.3 5.5

- Maharashtra 2.7 3.0 3.2 3.5 3.5 3.8 4.0

- Andhra Pradesh 0.4 0.5 0.7 0.7 1.0 1.0 1.0

- Kerala 0.1 0.2 0.2 0.3 0.3 0.2 0.2

- Tamil Nadu 0.1 0.2 0.3 0.4 0.3 0.2 0.1

- Goa 0.1 0.2 0.2 0.4 0.2 0.2 0.2

- Others 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Karnataka 3.2 4.0 4.6 4.3 4.5 4.8 5.2

Adjusted surplus/(deficit) (0.0) 0.0 (0.0) (0.4) 0.1 (0.0) 0.0


ACC 21% 23% 22% 22% 19% 16% 16%

Grasim 18% 20% 21% 20% 18% 18% 18%


India Cements 12% 11% 12% 12% 13% 14% 13%

Kesoram Inds. 8% 8% 9% 9% 8% 8% 9%

Zuari Inds. 7% 7% 7% 7% 7% 8% 8%

Penna Cement 4% 5% 5% 0% 6% 5% 5%

CCI 2% 2% 2% 3% 3% 3% 3%

Madras Cements 3% 2% 2% 3% 3% 4% 4%

Mysore Cement 3% 3% 3% 3% 3% 2% 2%


Bangalore 156 139 151 159 169 224 251

Note




Table 7: State profile - Kerala

(million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Capacity 0.4 0.4 0.4 0.6 0.6 0.6 0.6

Production 0.4 0.4 0.5 0.6 0.7 0.6 0.6

Consumption 4.6 5.4 5.8 6.1 6.5 7.0 7.1

Growth (per cent) - 17.7 8.6 4.3 7.0 7.3 2.2


Inflows

From other states (excluding Kerala) 4.2 5.0 5.4 5.5 5.8 6.4 6.6

- Tamil Nadu 2.9 4.0 4.3 4.6 4.8 5.4 5.5

- Andhra Pradesh 0.8 0.7 0.8 0.7 0.7 0.8 0.8

- Gujarat 0.3 0.1 0.0 0.0 0.0 0.0 0.0

- Karnataka 0.1 0.2 0.2 0.3 0.3 0.2 0.2

Kerala 0.4 0.4 0.5 0.6 0.7 0.6 0.6

Outflows

Kerala 0.4 0.4 0.5 0.6 0.7 0.6 0.6

Adjusted surplus/deficit 0.0 0.0 0.0 0.0 (0.0) (0.6) (0.6)


India Cements 23% 21% 21% 20% 20% 19% 20%

Madras Cements 15% 17% 18% 17% 16% 19% 19%

Chettinad Cement 6% 11% 11% 13% 13% 15% 16%

ACC 13% 15% 16% 15% 13% 12% 11%

Malabar Cements 9% 8% 8% 9% 11% 9% 8%


Dalmia Cement 7% 7% 7% 7% 8% 12% 12%

Grasim 3% 4% 3% 3% 3% 4% 4%

Zuari Inds. 3% 3% 3% 3% 3% 3% 3%


Calicut 175 152 162 172 185 222 254

Note




Table 8: State profile - Madhya Pradesh

(million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08Capacity 16.0 16.2 16.2 17.4 17.7 18.2 18.4

Production 14.8 15.4 15.0 16.2 17.4 18.9 19.7

Consumption 4.0 5.0 5.6 6.3 6.4 6.5 7.5

Growth (per cent) - 23.8 11.1 13.0 1.3 2.2 15.0

Gross surplus/deficit 10.8 10.4 9.5 9.9 11.0 12.4 12.2

Inflows

From other states (excluding Madhya Pradesh) 1.3 1.6 2.1 2.6 1.8 1.5 1.6- Rajasthan 0.5 0.5 0.6 0.6 0.7 0.6 0.8

- Gujarat 0.0 0.2 0.1 0.1 0.0 0.0 0.0

- Chhattisgarh 0.6 0.5 0.6 0.8 0.4 0.4 0.3

- Maharashtra 0.1 0.5 0.8 1.0 0.6 0.5 0.4

Madhya Pradesh 2.8 3.4 3.5 3.7 4.5 4.9 5.9

Outflows

To other states (excluding Madhya Pradesh) 11.1 11.0 10.6 11.6 12.0 13.2 13.0- Uttar Pradesh 7.4 7.3 6.9 6.6 6.0 6.9 6.9

- Uttaranchal 0.4 0.6 0.7 0.7 0.9 1.3 1.2

- West Bengal 0.2 0.2 0.2 0.3 0.6 0.3 0.2

- Bihar 0.9 1.1 1.1 1.6 1.9 1.7 1.7

- Maharashtra 0.1 0.0 0.0 0.0 0.0 0.0 0.0

- Assam 0.2 0.2 0.3 0.3 0.4 0.3 0.1

- Delhi 0.5 0.4 0.4 0.7 0.7 0.7 0.8

- Orissa 0.0 - - - 0.0 0.0 0.0

- Punjab 0.4 0.0 0.0 0.0 0.0 0.2 0.2

- Haryana 0.3 0.3 0.4 0.6 0.8 1.0 1.1

- Gujarat 0.2 0.2 0.1 0.1 0.0 0.0 0.0

- Others 0.6 0.5 0.5 0.5 0.6 0.9 0.8

Madhya Pradesh 2.8 3.4 3.5 3.7 4.5 4.9 5.9

Adjusted surplus/deficit 0.9 1.1 0.9 0.9 0.8 0.7 0.8Market shares of key players

Grasim 20% 19% 17% 18% 19% 16% 18%

Jaiprakash Inds. 15% 14% 14% 14% 16% 18% 17%


ACC 9% 11% 11% 11% 11% 12% 12%

Prism Cement 9% 9% 10% 8% 10% 10% 11%

Mysore Cement 11% 11% 8% 7% 7% 7% 9%


Birla Corp. 6% 6% 6% 5% 5% 4% 5%

JK Synthetics 4% 4% 4% 4% 4% 3% 4%

Lafarge 3% 3% 3% 3% 3% 2% 1%

Ambuja cement Ltd 1% 3% 5% 5% 3% 3% 2%


Bhopal 129 118 116 130 145 194 216

Notes







Table 9: State profile - Maharashtra

(million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Capacity 9.1 10.8 11.5 12.0 12.0 12.0 12.1

Production 6.7 9.2 10.6 11.0 11.4 12.1 13.4

Consumption 13.2 14.2 14.7 15.9 16.8 18.2 20.6

Growth (per cent) 7.0 3.7 8.0 5.9 8.4 13.0


Inflows

From other states (excluding Maharashtra) 7.3 6.4 6.1 7.1 7.6 8.1 9.0

- Karnataka 2.7 3.0 3.2 3.5 3.5 3.8 4.0

- Andhra Pradesh 1.7 1.1 1.1 1.6 1.8 1.9 1.8

- Gujarat 2.0 1.7 1.3 1.5 1.9 2.0 2.6

- Madhya Pradesh 0.1 0.0 0.0 0.0 0.0 0.0 0.0

- Rajasthan 0.3 0.1 0.2 0.2 0.2 0.2 0.4

- Chhattisgarh 0.6 0.4 0.3 0.2 0.1 0.1 0.2

Maharashtra 6.0 7.8 8.6 8.8 9.2 10.1 11.6

Outflows

To other states (excluding Maharashtra) 0.7 1.4 2.1 2.3 1.2 2.0 1.8

- Andhra Pradesh 0.4 0.6 0.6 0.6 0.8 0.9 0.9

- Tamil Nadu 0.0 0.0 0.0 0.0 0.0 0.0 0.0

- Madhya Pradesh 0.1 0.5 0.8 1.0 0.6 0.5 0.4

- Others 0.2 0.3 0.7 0.7 0.8 0.6 0.4

Maharashtra 6.0 7.8 8.6 8.8 9.2 10.1 11.6

Adjusted surplus/(deficit) (0.0) 0.0 (0.0) (0.0) 1.0 (0.0) 0.0




ACC 14% 15% 15% 14% 15% 14% 13%

Grasim 15% 15% 14% 13% 14% 13% 11%

Kesoram Inds. 9% 9% 9% 9% 8% 10% 11%

Orient Cement 7% 7% 7% 7% 7% 7% 7%


India Cements 5% 3% 3% 4% 4% 4% 3%

Indo Rama Cement 4% 4% 4% 4% 3% 3% 3%


Mumbai 170 156 162 172 188 261 271

Nagpur 137 118 126 142 151 216 234

Pune 145 125 135 150 166 268 276

Note




Table 10: State profile - Orissa

(million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Capacity 2.8 2.8 3.0 3.0 3.0 3.4 3.6

Production 2.4 2.6 2.5 2.9 3.3 3.6 3.9

Consumption 2.9 3.5 3.4 3.9 4.1 4.4 4.7

Growth (per cent) - 17.8 -2.2 14.4 7.4 6.9 6.5


Inflows

From other states (excluding Orissa) 1.1 1.4 1.5 1.8 1.7 1.8 1.9

- Madhya Pradesh 0.0 - - - 0.0 - -

- Andhra Pradesh 0.2 0.2 0.4 0.6 0.4 0.3 0.3

- Chhattisgarh 0.9 1.1 1.0 1.1 1.3 1.4 1.6

Orissa 1.8 2.0 1.8 2.1 2.3 2.5 2.6

Outflows

To other states (excluding Orissa) 0.6 0.6 0.6 0.8 1.0 1.2 1.0

- West Bengal 0.3 0.3 0.4 0.3 0.4 0.4 0.5

- Bihar 0.1 0.1 0.1 0.1 0.2 0.2 0.2

- Others 0.2 0.2 0.2 0.3 0.4 0.5 0.3

Orissa 1.8 2.0 1.8 2.1 2.3 2.5 2.6

Adjusted surplus/(deficit) 0.0 0.0 (0.0) (0.0) (0.2) (0.2) 0.0


OCL India 26% 25% 26% 25% 25% 27% 25%


ACC 4% 4% 9% 17% 19% 19% 19%

Lafarge 6% 7% 8% 8% 10% 10% 12%


Grasim 5% 5% 5% 5% 5% 6% 5%


India Cements 1% 0% 2% 3% 3% 1% 1%

My Home Industries 0% 0% 0% 0% 2% 2% 2%


Bhubaneshwar 134 141 141 150 158 216 229

Note

Prices are retail prices and are inclusive of excise, sales tax and octroi.



Table 11: State profile - Punjab

(million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Capacity 2.2 2.8 3.0 3.9 4.2 4.2 4.2

Production 1.9 2.9 3.3 3.8 4.5 4.7 4.7

Consumption 4.9 5.3 5.4 5.2 5.7 6.5 6.6

Growth (per cent) - 7.5 2.8 -3.0 8.0 14.9 1.5


Inflows

From other states (excluding Punjab) 3.4 3.0 3.2 3.0 2.9 3.6 3.8

-Madhya Pradesh 0.4 0.0 0.0 0.0 0.0 0.2 0.2

- Rajasthan 1.3 1.3 1.4 1.3 1.0 1.4 1.4


Punjab 1.5 2.2 2.2 2.2 2.7 2.9 2.8

Outflows

To other states (excluding Punjab) 0.4 0.7 1.1 1.6 1.1 1.7 1.9

- Uttaranchal 0.0 0.1 0.1 0.2 0.1 0.1 0.1

- Delhi 0.0 0.0 0.1 0.2 0.3 0.2 0.2

- Jammu and Kashmir 0.2 0.2 0.2 0.3 0.4 0.5 0.5

-Haryana 0.1 0.1 0.2 0.3 0.4 0.4 0.6

- Chandigarh 0.0 0.1 0.1 0.1 0.1 0.1 0.1

- Uttar Pradesh 0.1 0.1 0.4 0.4 0.3 0.4 0.4

- Others 0.0 0.0 0.1 0.1 0.1 0.0 0.0

Punjab 1.5 2.2 2.2 2.2 2.7 2.9 2.8

Adjusted surplus/(deficit) (0.0) 0.0 (0.0) 0.0 0.7 (0.0) 0.1


ACC 33% 31% 31% 31% 33% 31% 33%


Grasim 10% 16% 17% 17% 18% 18% 18%

Shree Cement 8% 7% 7% 7% 5% 7% 8%

Birla Corp. 5% 5% 5% 5% 5% 4% 2%


Bhatinda 151 139 147 162 166 225 231

Notes







Table 12: State profile - Rajasthan

(million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Capacity 17.1 18.4 18.9 19.5 20.3 22.1 24.8

Production 16.0 17.3 17.8 18.7 20.2 22.1 25.7

Consumption 5.2 6.2 6.6 7.0 8.3 9.1 10.3

Growth (per cent) - 18.3 7.2 5.4 18.7 10.3 13.1

Gross surplus/deficit 10.8 11.1 11.2 11.7 12.0 13.0 15.4

Inflows

From other states(excluding Rajasthan) 0.3 0.2 0.3 0.2 0.2 0.3 0.3

- Gujarat 0.2 0.2 0.1 0.1 0.1 0.0 0.0

- Madhya Pradesh 0.1 0.1 0.1 0.1 0.1 0.3 0.3

Rajasthan 4.9 5.9 6.3 6.7 8.1 8.9 10.0

Outflows

To other states (excluding Rajasthan) 11.1 11.3 11.5 11.9 12.2 13.2 15.8

- Delhi 2.3 2.4 2.7 2.7 2.4 2.0 2.3

- Uttar Pradesh 2.4 2.3 2.1 2.2 2.4 3.0 3.2

- Haryana 2.6 2.6 2.7 3.0 3.3 3.8 4.8

- Gujarat 1.6 1.8 1.5 1.6 2.0 1.8 2.1

- Punjab 1.3 1.3 1.4 1.3 1.0 1.4 1.4

- Madhya Pradesh 0.5 0.5 0.6 0.6 0.7 0.6 0.8

- Maharashtra 0.3 0.1 0.2 0.2 0.2 0.2 0.4

-Others 0.2 0.3 0.3 0.3 0.3 0.4 0.6

Rajasthan 4.9 5.9 6.3 6.7 8.1 8.9 10.0

Adjusted surplus/(deficit) (0.1) 0.0 (0.0) 0.0 (0.1) 0.0 (0.0)


Grasim 16% 16% 15% 15% 16% 17% 17%


Binani Cement 15% 14% 15% 14% 13% 12% 12%

JK Corp. 7% 9% 9% 10% 12% 10% 10%

Shree Cement 11% 13% 12% 13% 12% 20% 22%

JK Synthetics 12% 12% 13% 12% 11% 9% 8%

Birla Corp. 12% 11% 11% 11% 11% 10% 10%

Mangalam Cement 8% 7% 7% 7% 7% 5% 5%


Jaipur 130 118 125 148 156 213 219

Note

Prices are retail prices and are inclusive of excise, sales tax and octroi.



Table 13: State profile - Tamil Nadu

(million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Capacity 11.6 14.3 14.5 14.6 14.6 16.8 16.9

Production 9.2 11.7 12.3 12.6 14.3 17.2 17.9

Consumption 8.3 9.1 9.1 9.0 11.1 12.8 14.5

Growth (per cent) - 8.9 0.3 -1.4 24.1 15.4 12.6


Inflows

From other states(excluding Tamil Nadu) 2.5 2.0 2.0 2.0 2.6 2.9 3.2

- Andhra Pradesh 2.3 1.8 1.7 1.6 2.3 2.7 3.1

- Maharashtra 0.0 0.0 0.0 0.0 0.0 0.0 0.0

- Karnataka 0.1 0.2 0.3 0.4 0.3 0.2 0.1

Tamil Nadu 5.8 7.0 7.1 7.0 8.5 9.9 11.1

Outflows

To other states (excluding Tamil Nadu) 3.3 4.6 5.1 5.4 5.5 6.5 6.8

- Kerala 2.9 4.0 4.3 4.6 4.8 5.4 5.5

- Karnataka 0.2 0.3 0.5 0.6 0.5 0.7 0.8

- Pondicherry 0.1 0.2 0.2 0.2 0.3 0.3 0.4

- Others 9.1 11.6 12.2 12.4 8.6 0.1 0.1

Tamil Nadu 5.8 7.0 7.1 7.0 5.0 9.9 11.1

Adjusted surplus/deficit 0.0 0.1 0.1 0.2 0.3 0.8 (0.1)


India Cements 26% 22% 21% 21% 21% 20% 22%

Madras Cements 17% 17% 17% 17% 19% 19% 18%

Dalmia Cement 7% 8% 8% 8% 8% 12% 14%

Chettinad Cement 8% 11% 10% 12% 12% 11% 11%


Grasim 7% 7% 8% 7% 8% 7% 7%

Penna Cement 3% 3% 4% 0% 6% 6% 5%

Zuari Inds. 6% 7% 6% 6% 5% 5% 5%

Tamil Nadu Cement 7% 8% 9% 8% 6% 5% 5%


Chennai 161 143 153 160 163 223 258

Note

Prices are wholesale prices and are inclusive of excise, sales tax and octroi.



Table 14: State profile - Uttar Pradesh (million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Capacity 4.2 4.8 5.5 6.8 7.3 7.3 7.4

Production 1.8 2.4 3.5 4.2 4.9 5.1 5.3

Consumption 12.0 12.7 13.4 14.1 14.2 15.9 16.3

Growth (per cent) - 6.1 5.2 5.3 0.6 11.9 2.4


Inflows

From other states (excluding Uttar Pradesh) 10.2 10.4 10.0 10.0 9.0 10.3 10.5

-Madhya Pradesh 7.4 7.3 6.9 6.6 6.0 6.9 6.9

- Rajasthan 2.4 2.3 2.1 2.2 2.4 3.0 3.2


- Chhattisgarh 0.3 0.4 0.4 0.5 0.5 0.3 0.2

Uttar Pradesh 1.8 2.3 3.4 4.1 4.8 5.1 5.3

Outflows

To other states (excluding Uttar Pradesh) 0.0 0.1 0.1 0.1 0.0 0.0 0.0

- Uttaranchal 0.0 - 0.1 0.1 0.1 0.0 0.0

- Others 0.0 0.1 0.0 0.0 0.0 0.0 0.0

Uttar Pradesh 1.8 2.3 3.4 4.1 4.8 5.1 5.3

Adjusted surplus/(deficit) 0.0 0.0 (0.0) 0.0 (0.4) (0.5) (0.5)


Jaiprakash Inds. 20% 20% 19% 19% 21% 21% 21%

ACC 15% 16% 18% 19% 19% 20% 21%

Birla Corp. 11% 11% 11% 11% 11% 11% 10%


Prism Cement 10% 9% 8% 7% 7% 7% 7%

Mysore Cement 7% 8% 7% 7% 7% 7% 7%

Grasim 6% 6% 7% 6% 6% 6% 6%


Lucknow 138 129 131 152 159 197 213

Notes







Table 15: State profile - West Bengal (million tonnes) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08Capacity 2.3 3.1 3.1 3.1 3.5 4.1 5.1Production 1.7 2.5 2.7 3.1 3.2 3.5 3.6Consumption 5.9 5.6 5.8 6.2 6.6 6.9 7.3Growth (per cent) - -5.1 2.7 7.6 5.9 5.1 5.0Gross surplus/(deficit) (4.2) (3.1) (3.0) (3.1) (3.3) (3.4) (3.7)

Inflows From other states (excluding West Bengal) 4.4 3.3 3.4 3.6 3.4 3.4 3.7- Jharkhand 1.1 1.2 1.2 1.1 1.1 1.1 1.3- Chhattisgarh 2.7 1.5 1.6 1.7 1.4 1.6 1.7- Madhya Pradesh 0.2 0.2 0.2 0.3 0.6 0.3 0.2- Bihar 0.0 0.0 0.0 0.0 0.0 0.0 0.0- Orissa 0.3 0.3 0.4 0.3 0.4 0.4 0.5West Bengal 1.6 2.3 2.4 2.6 2.8 3.4 3.5Outflows To other states (excluding West Bengal) 0.1 0.2 0.4 0.5 0.3 0.1 0.1- Bihar 0.0 0.0 0.1 0.1 0.1 0.0 0.0- Others 0.0 0.2 0.4 0.4 0.2 0.1 0.1West Bengal 1.6 2.3 2.4 2.6 2.8 3.4 3.5

Adjusted surplus/(deficit) 0.1 (0.0) (0.0) 0.1 (0.2) (0.1) (0.1)Market shares of key players ACC 19% 18% 19% 19% 18% 16% 17%Lafarge 24% 21% 20% 19% 17% 17% 17%Ultratech Cement 10% 13% 13% 13% 16% 18% 17%Ambuja cement Ltd 13% 15% 15% 15% 15% 19% 20%Century Textiles 12% 11% 10% 11% 11% 7% 5%Birla Corp. 8% 9% 9% 10% 9% 9% 8%OCL India 3% 3% 3% 3% 4% 5% 6%Grasim 7% 8% 7% 7% 4% 6% 6%Jaiprakash Inds. 1% 1% 1% 2% 3% 2% 2%

Prices in the key centre in the state (Rs/bag) Kolkata 138 150 158 174 174 224 232

Note Prices are wholesale prices and are inclusive of excise, sales tax and octroi. Source: CRISIL Research, CMA and Industry


Table 1: Fuel receipts

Coal linkage Coal receipts1 Other receipts Lignite Total receipts Open market coal Coal (million tonnes) purchases imports

1992-93 15.62 10.50 1.27 0.09 0.80 12.66

1993-94 15.68 10.34 0.86 0.12 0.70 12.02

1994-95 17.03 10.28 2.32 0.71 0.80 14.11

1995-96 18.03 10.06 2.80 1.30 0.80 14.96

1996-97 16.94 10.45 2.48 1.65 0.70 15.28

1997-98 17.10 9.61 1.62 3.52 0.42 15.17

1998-99 14.11 8.24 0.77 4.66 0.20 13.87

1999-2000 13.80 9.01 0.63 6.04 0.05 15.73

2000-01 13.50 9.74 0.79 4.40 0.42 2 15.35

2001-02 15.11 11.09 0.87 3.37 0.96 2 16.29

2002-03 15.74 12.35 0.77 3.66 1.09 17.87

2003-04 16.09 13.34 1.03 3.18 1.41 18.96

2004-05 17.14 14.84 1.27 3.63 1.87 2 21.61

2005-06 17.10 14.81 1.55 3.40 2.16 21.92

2006-07 15.48 14.43 2.94 4.96 0.83 23.16 1 Receipts against linkage 2 Includes receipts of lignite and pet coke

Note

Receipts include captive power plants.

Source: CMA

Table 2: Fuel consumption

(million tonnes) Process Captive power Total Coal Lignite 1992-93 11.0 0.6 0.5 12.1

1993-94 11.2 0.7 0.8 12.8

1994-95 11.7 0.7 0.8 13.3

1995-96 12.5 0.8 1.0 14.2

1996-97 13.3 0.6 1.1 15.0

1997-98 13.4 0.4 1.2 15.0

1998-99 12.5 0.2 1.4 14.0

1999-2000 13.6 0.1 1.8 15.4

2000-01 13.1 0.4 1 1.9 15.4

2001-02 12.8 1.0 1 2.0 15.8

2002-03 14.2 1.1 1 2.6 17.8

2003-04 14.2 1.4 1 3.2 18.8

2004-05 15.0 1.87 1 3.6 21.2

2005-06 15.1 2.98 1 4.3 22.4

2006-07 16.8 0.83 5.3 22.91 Includes lignite and pet coke

Source: CMA

3.0 Raw material


Table 3: Coal - Receipts to cement industry to total coal production

(million tonnes) Coal production

Coal receipts to the cement industry

Percentage of coal receipts to

the cement industry, to coal

production

Percentage of coal receipts to cement

industry by rail

Average wagon loading (FW/day)

1989-90 201.0 8.9 4.4 81.0 850.0

1990-91 211.4 10.0 4.7 76.0 914.0

1991-92 229.3 10.5 4.6 72.0 895.0

1992-93 238.3 10.5 4.4 75.0 941.0

1993-94 246.0 10.3 4.2 78.0 963.0

1994-95 253.8 10.3 4.1 76.0 934.0

1995-96 270.1 10.1 3.7 69.0 825.0

1996-97 285.7 10.5 3.7 64.0 799.0

1997-98 296.1 9.6 3.2 66.0 731.0

1998-99 290.8 8.2 2.8 59.0 525.0

1999-2000 299.3 9.0 3.0 62.0 605.0

2000-01 309.8 9.7 3.1 65.0 670.0

2001-02 323.0 11.1 3.4 70.0 809.0

2002-03 324.2 12.4 3.8 68.0 787.0

2003-04 356.2 13.3 3.7 67.0 891.0

2004-05 376.6 14.8 3.9 68.0 1,055.0

2005-06 407.0 14.8 3.6 71.0 1,100.0

2006-07 430.9 14.4 3.3 72.0 1,079.0

FW: Four-wheeler wagon

Source: CMA


Table 4: Coal - Royalty

(Rs/tonne of coal) Coal royalty

1991 (August 1)1 70

19921 70

19931 70

1994 (October 11)2 75

1995'2 75

1996'2 75

1997'2 75

1998 (March 31)2 75

1999 75

2000 75

2001 75

2002 (August 16) 90

2003 90

2004 90

2005 90

2006 90

2007 90 1 The royalty on D grade coal other than the coal from Singareni mines is Rs 45 per tonne 2 The royalty on D grade coal other than the coal from Singareni mines, which is produced in Assam,

is Rs 70 per tonne; while the run of mine excluding cess surcharge and other levies, coal produced in

Assam is Rs 120 per tonne. In West Bengal, the royalty is Rs 4.5 per tonne.

The coal royalty rates provided are for D grade slack coal from Singareni mines.

Source: CMA

Table 5: Coal - Change in pithead prices (Rs/tonne of coal) Pithead price

December 28, 1991 458

February 17, 1993 512

June 19, 1993 533

June 17, 1994 563

January 9, 1996 590

March 15, 1997 857

October 29, 1998 1,069

March 31, 2000 937

April 10, 2001 983

March 31, 2003 983

March 31, 2004 983

March 31, 2005 983

March 31, 2006 983

March 31, 2007 1,130

Notes

1) Coal prices are for D-grade coal from Singareni Collieries.

2) Coal prices are as on March 31, effective from April 10, 2001.

Source: CMA


Figure 1: Coal - International prices and landed cost of imports

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

Nov

-97

Sep

-98

Jul-9

9

May

-00

Mar

-01

Jan-

02

Nov

-02

Sep

-03

Jul-0

4

May

-05

Mar

-06

Jan-

07

Nov

-07

($/t

on

ne)

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

(Rs/

ton

ne)

Australia Landed cost

Prices are average fob monthly prices of coal imported from Australia. Source: World Bank

Table 6: Gypsum - Domestic prices

(Rs/tonne) 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Atul 68 81 55 n.a. n.a. n.a.

Fertilizer Corporation of India 406 269 n.a. n.a. n.a. n.a.

SRF 121 125 250 285 233 335

Tata Chemicals 475 424 439 561 456 424

n.a.: Not available


Table 7: Lignite - Domestic prices

(Rs/tonne) 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

GMDC 446 483 498 489 541 602 637

NLC 765 864 1,028 1,063 1,201 1,082 1097

GMDC: Gujarat Mineral Development Corporation; NLC: Neyveli Lignite Corporation



Table 8: Company-wise coal consumption Units 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

ACC kCals per kg of clinker 794 783 765 765 759 736 736 752

Ambuja Cement Eastern kCals per kg of clinker 831 857 823 851 849 841 n.a. n.a.

Andhra Cements per cent of clinker 22 20 20 19 22 23 25 25

Binani Cement tonnes per tonne of cement 0.11 0.11 0.11 0.10 0.10 0.10 n.a. 0.1

Birla Corp tonnes per tonne of cement 0.13 0.13 n.a. n.a. n.a. n.a. n.a. 0.11

Century Textiles tonnes per tonne of cement 0.19 0.18 0.15 0.14 0.13 0.13 0.13 0.13

Chettinad Cement1 tonnes per tonne of cement 11.08 10.98 12.81 10.89 9.65 10.18 10.18 10.42

Dalmia Cement tonnes per tonne of cement 0.12 0.12 0.11 0.10 0.10 0.10 0.10 0.11

DLF Cement kCals per kg of clinker 733 724 735 720 - - - -

Grasim tonnes per tonne of cement 0.13 0.12 0.13 0.12 0.13 0.12 0.12 0.13

Ambuja Cement Ltd kCals per kg of clinker 753 730 742 729 728 715 730 742

Gujarat Sidhee Cement kCals per kg of clinker 789 815 808 813 815 813 792 798

India Cements tonnes per tonne of cement 0.16 0.14 0.14 0.14 14.51 14.6 14.6 n.a.

JK Corp.2 tonnes per tonne of cement 0.12 0.11 0.10 - 0.09 0.09 0.08 0.08

JK Synthetics kCals per kg of clinker 846 840 832 - 803 787 n.a. n.a.

JK Udaipur Udyog tonnes per tonne of cement 0.15 - 0.15 - n.a. n.a. n.a. n.a.

Kanoria Inds3 kCals per kg of clinker 18.07 16.83 26.03 - - - - -

KCP tonnes per tonne of cement 0.16 0.14 0.14 0.16 0.15 0.16 0.16 0.16

Madras Cements per cent of clinker 14.23 14.19 14.62 11.34 12.47 11.46 11.46 0.01

Mangalam Cement4 tonnes per tonne of cement 0.15 0.16 0.18 0.35 0.34 0.32 0.34 0.34

Narmada Cement5 kCals per kg of clinker 806 787 750 810 804 0.13 0.13 n.a.

OCL India tonnes per tonne of cement 0.14 0.14 0.12 0.11 0.10 0.11 0.11 0.1

Panyam Cements tonnes per tonne of cement 0.21 0.21 0.21 0.20 0.25 0.22 0.25 0.28

Prism Cement per cent of clinker 16.13 16.31 15.54 14.8 15.97 16.89 16.54 n.a.

Priyadarshini tonnes per tonne of cement 0.18 0.17 0.17 0.18 0.18 n.a. n.a. n.a.

Saurashtra Cement tonnes per tonne of cement 0.14 0.16 0.14 - - - - -

Shree Cement per cent of clinker 12.34 9.47 9.47 8.26 8.84 9.02 10.37 11.73

Shree Digvijay6 KCals per kg of clinker 769 1,072 1,097 2,206 815 786 779 781

Sri Vishnu Cement tonnes per tonne of cement 0.19 0.17 0.17 0.16 0.17 0.18 0.19 0.21

Ultratech Cement Ltd tonnes per tonne of cement 0.14 0.13 0.13 0.13 0.13 0.13 0.13 0.13

Zuari Inds tonnes per tonne of cement 0.14 n.a. n.a. n.a. n.a. n.a. n.a. n.a.

n.a.: Not available 1 From 2000-01, the figures are a percentage of coal per unit of clinker 2 Figures for 1999-2000 are for a period of 18 months with year ending September 3 From 1997-98, figures are a percentage of coal per unit of clinker 4 Figures for 2000-01 are for the October 2000 to September 2001 period 5 Figures for 2003-04, are for the March 2002 to September 2004 period 6 Figures for 2004-05, are for the period of 6 months with year ending March.

ACC: From 2005-06 figures are as of December 2006, Andhra Cements: Figures are of September 2006



Table 9: State-wise trends in power tariffs (paise/kWh) Mar 2000 Mar 2001 Mar 2002 Mar 2003 Mar 2004 Mar 2005 Mar 2006 Mar 2007

Andhra Pradesh 412.1 435.0 435.0 416.0 405.0 395.0 370.0 336.0

Assam 327.0 327.0 327.0 327.0 327.0 369.0 369.0 369.0

Bihar-BSEB 359.3 397.4 397.4 445.2 445.2 445.2 445.2 445.2

Bihar-DVC 362.9 270.8 300.8 n.a. n.a. n.a. n.a. n.a.

Chhattisgarh - 434.6 434.6 434.6 434.6 438.6 451.8 446.2

Delhi 375.2 413.8 413.8 453.8 453.8 579.0 562.1 562.1

Gujarat 535.2 581.6 581.6 584.0 584.0 584.0 606.9 543.6

Haryana 442.2 482.0 482.0 515.9 515.9 464.0 515.9 515.9


Karnataka 420.0 450.0 450.0 456.0 489.3 489.3 487.2 487.2

Kerala 241.7 241.7 301.5 351.5 351.5 351.5 351.5 351.5

Jharkhand - 441.0 443.0 443.0 443.0 432.0 432.0 432.0

Madhya Pradesh 434.6 434.6 458.8 480.2 480.2 437.4 450.3 444.7

Maharashtra 401.1 400.1 388.5 364.4 346.0 361.0 410.0 548.0

Meghayala 200.0 200.0 200.0 200.0 244.0 266.0 266.0 266.0

Orissa 310.0 350.0 350.0 350.0 350.0 350.0 353.2 353.2

Punjab 286.0 286.6 286.6 286.6 372.8 364.7 406.8 388.7

Rajasthan 395.0 430.0 444.0 445.0 444.0 459.0 459.0 459.0

Tamil Nadu 406.4 406.4 415.8 433.7 427.5 427.5 437.4 445.5

Uttar Pradesh 429.0 487.4 487.4 487.4 433.0 409.6 386.3 395.6

West Bengal 262.9 295.5 299.4 302.7 303.0 311.7 335.3 323.7

Note

BSEB: Bihar State Electricity Board; CAGR: Compounded annual growth rate; DVC: Damodar Valley Corporation

Source: CMA


Table 10: Company-wise captive power generating capacity

(MW) March 31, 2001 December 31, 2002 December 31, 2003

DG Thermal Total DG Thermal Total DG Thermal Total

ACC 55.7 79.8 135.4 50.3 80.0 130.3 50.3 125.0 175.3

Andhra Cement 12.6 - 12.6 12.6 - 12.6 12.6 - 12.6

Binani Cement - 25.6 25.6 - 25.6 25.6 - 25.6 25.6

Birla Corp 26.7 34.0 60.7 30.9 34.0 64.9 30.9 34.0 64.9

CCI 37.4 - 37.4 37.4 - 37.4 37.8 - 37.8

Century Cement 20.9 45.4 66.3 20.6 41.4 62.0 20.6 45.4 66.0

Chettinad Cement 12.2 - 12.2 12.2 - 12.2 12.2 - 12.2

Dalmia Cement 12.8 - 12.8 12.8 - 12.8 12.8 - 12.8

DLF Cement 31.0 - 31.0 - - 0.0 - - 0.0

Grasim 128.2 38.2 166.4 147.0 38.2 185.2 147.0 61.2 208.2

Ambuja cement Ltd 96.1 - 96.1 116.9 15.0 131.9 118.1 55.0 173.1

Gujarat Sidhee 0.2 - 0.2 0.2 - 0.2 0.2 - 0.2

HMP Cements - 10.5 10.5 - 10.5 10.5 - 10.5 10.5

India Cements 103.5 - 103.5 87.8 - 87.8 87.8 - 87.8

Jaiprakash Inds 63.9 - 63.9 - - 0.0 59.4 - 59.4

Jaipur Udyog - - - - - 0.0 - - -

J K Corp - - - - - - - 23.5 - 23.5

JK Synthetics 11.5 19.0 30.5 18.5 23.0 41.5 18.5 23.0 41.5

JK Udaipur Udyog 13.0 - 13.0 13.0 - 13.0 13.0 - 13.0

Kalyanpur Cement 2.5 - 2.4 3.2 - 3.2 2.4 - 2.4

Kanoria Inds 8.0 - 8.0 8.0 - 8.0 8.0 - 8.0

KCP 9.9 - 9.9 9.9 - 9.9 9.9 - 9.9

Kesoram Inds 26.3 30.7 57.0 26.3 30.7 57.0 26.3 30.7 57.0

Kistna - 4.0 4.0 - 4.0 4.0 - 4.0 4.0

Lafarge 16.0 - 16.0 43.0 - 43.0 43.4 - 43.4

Madras Cements 45.1 - 45.1 42.0 - 42.0 50.7 - 50.7

Continued…


…continued

(MW) December 31, 2005 December 31, 2006

DG Thermal Total DG Thermal Total

ACC 48.4 140.0 188.4 46.2 140.0 186.2

Andhra Cement 12.6 - 12.6 12.6 - 12.6

Binani Cement - 25.6 25.6 - 25.6 25.6

Birla Corp 31.5 34.0 65.5 31.7 57.0 88.7

CCI 38.8 0.0 38.8 38.8 - 38.8

Century Cement 20.6 55.4 76.0 20.6 64.7 85.3

Chettinad Cement 9.4 15.0 24.4 9.4 15.0 24.4

Dalmia Cement 12.8 - 12.8 12.8 27.0 39.8

DLF Cement - - 0.0 - - 0.0

Grasim 108.4 73.7 182.1 126.4 73.7 200.1

Gujarat Ambuja 118.1 85.0 203.1 129.2 195.0 324.2

Gujarat Sidhee 0.2 - 0.2 30.0 - 30.0

HMP Cements - 10.5 10.5 - 10.5 10.5

India Cements 79.4 - 79.4 79.4 - 79.4

Jaiprakash Inds 59.4 - 59.4 59.4 - 59.4

Jaipur Udyog - - - - - 0.0

J K Corp 23.5 - 23.5 23.5 - 23.5

JK Synthetics 24.0 15.5 39.5 24.0 15.5 39.5

JK Udaipur Udyog 13.0 - 13.0 13.0 - 13.0

Kalyanpur Cement - - - 2.4 - 2.4

Kanoria Inds 8.0 - 8.0 - - 0.0

KCP 10.3 - 10.3 10.3 - 10.3

Kesoram Inds 20.0 40.2 60.2 12.0 40.2 52.2

Kistna - 4.0 4.0 - 4.0 4.0

Lafarge 34.0 - 34.0 34.0 - 34.0

Madras Cements 44.7 36.0 80.7 44.7 36.0 80.7

continued…


…continued

(MW) March 31, 2001 December 31, 2002 December 31, 2003

DG Thermal Total DG Thermal Total DG Thermal Total

Malabar Cements 2.5 - 2.5 2.5 - 2.5 2.5 - 2.5

Mangalam Cement 11.7 - 11.7 11.7 - 11.7 11.7 - 11.7

Modi Cement - - - - - 0.0 - - -

Mysore Cement 39.5 29.2 68.7 39.6 29.2 68.8 39.6 29.2 68.8

Narmada Cement - - - - - 0.0 - - -

Orient Cement 22.9 - 22.9 22.9 - 22.9 23.5 - 23.5

Orissa Cement 20.9 - 20.9 20.9 - 20.9 20.9 - 20.9

Panyam Cements 12.4 - 12.4 12.4 - 12.4 12.4 - 12.4

Prism Cement 30.0 - 30.0 36.0 - 36.0 36.0 - 36.0

Priyadarshini 13.0 - 13.0 12.0 - 12.0 13.0 - 13.0

Raasi Cement - - - - - 0.0 - - -

Raymond Cement 27.0 - 27.0 - - 0.0 - - -

Saurashtra Cement 11.7 - 11.7 11.7 - 11.7 11.7 - 11.7

Sevalia - - - - - 0.0 - - -

Shree Cement 21.1 - 21.1 25.1 25.1 25.1 38.5 63.6

Shree Digvijay - - - - - 0.0 - - -

Sone Valley - 12.5 - - 12.5 12.5 - 12.5 12.5

Sri Vishnu Cement - - - - - 0.0 - - -

Tamil Nadu Cement 10.0 - 10.0 10.0 - 10.0 10.0 - 10.0

Tisco - - - - - 0.0 - - -

Ultratech Cement Ltd 84.1 100.0 184.1 85.7 100.0 185.7 85.7 100.0 185.7

Zuari Cement 25.0 - - 44.9 - 44.9 44.9 - 44.9

Total 1,065.3 428.9 1,456.5 1,027.9 444.1 1,472.0 1,122.3 594.6 1,716.9

continued…


…continued

(MW) December 31, 2005 December 31, 2006

DG Thermal Total DG Thermal Total

Malabar Cements 2.5 - 2.5 2.5 - 2.5

Mangalam Cement 11.7 - 11.7 11.7 - 11.7

Modi Cement - - - - - 0.0

Mysore Cement 33.8 29.2 63.0 34.0 29.2 63.2

Narmada Cement - - - - - 0.0

Orient Cement 23.5 - 23.5 23.5 - 23.5

Orissa Cement 20.9 - 20.9 20.9 - 20.9

Panyam Cements 12.4 - 12.4 12.4 - 12.4

Prism Cement 36.0 - 36.0 36.0 - 36.0

Priyadarshini 12.5 - 12.5 13.9 - 13.9

Raasi Cement - - - - - 0.0

Raymond Cement - - - - - 0.0

Saurashtra Cement 11.7 - 11.7 11.7 - 11.7

Sevalia - - - - - 0.0

Shree Cement 21.1 38.5 59.6 20.3 44.5 64.8

Shree Digvijay - - - - - 0.0

Sone Valley - 12.5 12.5 - 12.5 12.5

Sri Vishnu Cement - - - - - 0.0

Tamil Nadu Cement 4.0 - 4.0 4.0 - 4.0

Tisco - - - - - 0.0

Ultratech Cement Ltd 79.7 97.2 176.9 80.5 97.2 177.7

Zuari Cement 44.2 - 44.2 45.5 - 45.5

Total 1,090.6 716.3 1,806.9 1,077.1 887.6 1,964.7

DG: Diesel generation

Source: CMA


Table 11: Cement - Production by use of captive power

Units produced by Cement production from Proportion of cement manufactured

captive sets (million kWh) captive power (million tonnes) using captive power (per cent)

1982-83 94.0 0.8 3.4

1983-84 251.9 2.1 7.9

1984-85 391.2 3.3 11.0

Seventh plan

1985-86 634.9 5.3 16.5

1886-87 646.2 5.4 15.5

1878-88 795.7 6.6 17.7

1988-89 756.1 6.3 15.1

1989-90 854.1 7.1 16.6

Annual plan

1990-91 930.1 7.8 16.9

1991-92 1,166.3 9.7 19.2

Eighth plan

1992-93 1,100.0 9.2 18.1

1993-94 1,248.6 10.5 19.2

1994-95 1,481.2 12.3 21.2

1995-96 2,109.1 17.6 27.2

1996-97 2,346.5 19.6 27.9

Ninth plan

1997-98 2,575.9 21.5 26.6

1998-99 3,192.9 26.6 32.6

1999-2000 4,298.7 37.4 39.7

2000-01 4,881.0 42.4 45.3

2001-02 4,866.5 42.3 41.3

Tenth plan

2002-03 5,363.9 46.6 41.9

2003-04 5,298.1 46.1 39.2

2004-05 6,396.7 60.9 47.8

2005-06 7,835.6 74.6 52.6

2006-07 P 8,636.1 82.3 52.8

P : Provisional

Source: CMA


Table 1: Cement - Excise duty

(Rs/tonne) Rate Large cement plants Mini cement plants White cement (per cent)

1993-94 Specific 330 n.a 40

1994-95 Specific 330 180 40

1995-96 Specific 350 180 40

1996-97 Specific 350 180 30

1997-98 Specific 350 200 25

1998-99 Specific 350 200 25

1999-2000 Specific 3501 200 24

2000-01 Specific 3501 200 242

2001-02 Specific 3501 200 322

2002-03 Specific 4003 200 162

2003-04 Specific 4003 250 162

2004-05 Specific 4084 250 16.3

2005-06 Specific 4084 350 16.3

2006-07 Specific 4084 350 16.3

2007-08 (Retail prices <= Rs190/- per 50 kg bag) Specific 360.55 226.65 16.5

2007-08 (Retail prices > Rs190/- per 50 kg bag) Specific 6185 3815 16.5

2008-09 (Retail prices <= Rs190/- per 50 kg bag) Specific 360.55 226.65 16.5

2008-09(Retail prices > Rs190/- per 50 kg bag) Specific 6185 3815 16.51 Excise duty is Rs 332 per tonne of portland cement, bagged outside the factory premise 2 The abatement rate is 40 per cent 3 Excise duty is Rs 382 per tonne of portland cement, bagged outside the factory premises 4 Education cess of 2 per cent has been added to the excise duty for 2004-05 as per the

Budget provisions 5 In the Union Budget 2007-08, the cess has been increased to 3 per cent which has been added to the excise duty for 2007-08


4.0 Tariffs


Table 2: Cement - Customs duty

(per cent) BD SD AD Surcharge SACD

1994-95 65 - - - -

1995-96 50 - - - -

1996-97 40 2 - - -

1997-98 40 2 - - -

1998-99 40 2 3 - 4

1999-2000 40 - - - 4

2000-01 35 - - 10 4

2001-02 25 - - - 4

2002-03 20 - - - 4

2003-04 30 - - - 5

2004-05 20 - - 2 5

2005-06 15 - - 2 4

2006-07 0 - - 0 4

2007-08 0 - - 0 0

AD: Additional duty; BD: Basic duty; SACD: Special additional customs duty; SD: Special duty

Note

Education cess of 2 per cent has been added to the excise duty for 2004-05 and 2005-06, as per the Budget

provisions.


Table 3: Cement - State-wise sales tax

(per cent) 1993-94 1995-96 1998-99 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Andhra Pradesh 15.2 16.0 16.0 16.0 16.0 16.0 16.0 16.0 16.0 12.5 12.5

Delhi 8.0 8.0 10.0 10.0 8.0 8.0 8.8 8.0 8.0 12.5 12.5

Gujarat 15.0 17.0 15.0 15.0 8.8 8.8 8.8 8.8 8.0 8.0 12.5

Karnataka 17.8 16.6 18.8 18.8 18.8 18.8 15.0 15.0 20.0 12.5 12.5

Kerala 13.8 13.8 13.8 13.8 15.0 17.3 17.3 17.3 17.3 12.5 12.5

Maharashtra 12.7 13.0 13.0 15.3 15.3 15.3 15.8 15.8 15.8 12.5 12.5

Madhya Pradesh 12.0 10.0 11.5 11.5 13.8 13.8 13.8 13.8 13.8 13.8 12.5

Orissa 13.2 13.2 13.8 13.8 13.8 13.8 13.2 13.2 13.2 12.5 12.5

Rajasthan 16.0 16.0 17.9 17.9 18.4 18.4 18.4 18.4 19.0 28.0 12.5

Tamil Nadu1 16.3 16.1 18.5 18.5 18.5 18.5 19.3 19.3 16.8 14.0 12.5

West Bengal 11.2 16.5 17.3 17.3 15.0 15.0 17.3 20.7 20.3 12.5 12.51 For 2003-04 and 2004-05, the rate applies to the selling price of upto Rs 135 PPC and Rs 145 OPC per bag.

Notes

1) The sales tax is the total tax payable (including surcharge).

2) For a selling price of above Rs 135 PPC and Rs 145 OPC per bag, the rate is 27.7 per cent.

Source: CMA


Table 1: Cement - Aggregate producer market shares (per cent) 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 ACC 11.08 11.41 12.21 12.78 13.47 13.65 13.20 12.42 11.94 Grasim 10.04 10.89 10.26 10.90 10.95 10.84 10.75 10.28 9.65 Ambuja Cement Ltd 7.17 8.36 8.74 9.51 10.10 10.36 9.96 9.88 10.30 Ultratech Cement Ltd 11.61 11.47 11.06 10.54 10.07 9.93 9.00 8.99 8.99 India Cements 7.94 7.61 6.30 5.39 5.44 5.23 6.04 5.82 5.51 Century Textiles 5.18 5.48 5.05 4.78 4.77 5.04 4.89 4.51 4.11 Jaiprakash Inds 3.89 3.90 3.94 3.83 3.63 3.95 4.18 4.30 4.26 Birla Corp. 3.95 4.08 4.01 4.06 4.09 4.02 3.74 3.50 3.14 Lafarge 0.87 2.30 3.76 3.39 3.24 3.57 3.32 3.11 2.98 Madras Cements 2.91 2.89 3.07 3.14 3.04 2.93 3.20 3.59 3.34 JK Synthetics 2.17 2.10 2.35 2.69 2.63 2.75 2.59 2.44 2.25 Shree Cement 2.45 2.55 2.44 2.54 2.52 2.51 2.36 3.22 3.78 Kesoram Inds 2.49 2.58 2.29 2.30 2.53 2.58 2.28 2.36 2.67 Zuari Inds 1.56 1.56 1.71 2.11 2.10 2.09 2.06 2.08 1.96 JK Corp 2.00 1.94 1.92 2.01 1.98 2.02 1.97 1.89 2.04 Chettinad Cement 0.91 0.86 0.92 1.56 1.69 1.82 1.75 1.79 1.73 Binani Cement 1.80 2.02 1.95 1.96 1.94 1.85 1.72 1.62 1.77 Penna Cement - - 0.82 0.94 1.01 0.00 1.72 1.79 1.67 Orient Cement 1.38 1.32 1.44 1.41 1.50 1.66 1.57 1.46 1.44 Prism Cement 1.87 1.86 1.87 1.71 1.68 1.51 1.52 1.47 1.44 Mysore Cement 2.01 1.88 1.80 1.91 1.75 1.68 1.52 1.43 1.32 My Home Industries - - - - - - 1.2 1.15 1.50 Mangalam Cement 1.43 1.30 1.38 1.31 1.18 1.13 1.19 0.95 0.89 Dalmia Cement 1.08 1.08 1.01 1.11 1.11 1.06 1.16 1.82 1.97 OCL India 0.92 1.05 1.06 1.06 1.04 1.12 1.16 1.27 1.19 Sanghi Industries - - - - 0.62 0.97 0.81 0.93 1.50 Priyadarshini 0.85 0.78 0.73 0.64 0.26 0.65 0.71 1.08 0.96 CCI 0.72 0.32 0.60 0.49 0.52 0.67 0.70 0.69 0.54 Tamil Nadu Cement 0.80 0.84 0.71 0.73 0.76 0.67 0.57 0.49 0.40 Malabar Cements 0.47 0.49 0.40 0.38 0.41 0.46 0.51 0.42 0.34 Gujarat Sidhee Cement 0.85 0.68 0.75 0.50 0.52 0.43 0.48 0.60 0.75 KCP 0.52 0.40 0.37 0.46 0.41 0.40 0.39 0.41 0.43 Andhra Cements 0.68 0.73 0.81 0.68 0.57 0.62 0.24 0.41 0.67 Indo Rama Cement - 0.37 0.50 0.51 0.52 0.51 0.36 0.37 0.40 Kalyanpur Cement 0.61 0.65 0.62 0.52 0.30 0.30 0.33 0.39 0.32 Shriram Cements 0.30 0.31 0.28 0.27 0.26 0.27 0.29 0.25 0.22 Saurashtra Cement 1.02 0.73 0.85 0.68 0.50 0.42 0.29 0.43 0.83 J and K 0.11 0.13 0.14 0.11 0.10 0.12 0.12 0.10 0.09 Kanoria Inds 0.27 0.19 0.19 0.15 0.17 0.11 0.08 0.01 0.00 Mawnluh Cherra 0.13 0.13 0.10 0.10 0.09 0.08 0.07 0.07 0.05 Panyam Cements 0.23 0.12 0.14 0.03 0.09 0.06 0.01 0.00 0.25 Idcol Cement 0.58 0.78 0.71 0.79 0.45 - - - - DLF Cement 1.41 - - - - - - - - JK Udaipur Udyog 0.63 0.48 0.72 0.00 - - - - - Raymond Woollens 1.77 1.39 - - - - - - - Sri Vishnu Cement 0.41 - - - - - - - - Tisco 0.95 - - - - - - - - Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Note Market share is calculated based on consumption. Source: CMA

5.0 Market share and financials


Table 2: Cement - Region-wise market shares

(per cent) 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

North 31.3 31.2 31.8 31.7 31.9 31.7 30.4 30.7 30.4

ACC 14.5 15.6 15.4 15.4 16.2 16.3 16.9 16.5 17.0

Ambuja cement Ltd 8.7 13.2 13.0 12.9 13.5 14.2 15.0 14.1 13.5

Grasim 9.9 9.9 10.4 12.0 12.1 12.1 12.1 12.1 12.4

Birla Corp 9.0 9.2 8.7 8.5 8.7 8.6 8.4 8.1 7.3

Jaiprakash Inds 8.6 8.7 9.1 8.6 7.8 8.0 8.6 9.4 9.0

Shree Cement 7.6 7.9 7.4 8.0 7.9 7.9 7.8 10.5 12.6

West 27.8 28.0 25.4 25.0 25.1 26.1 24.2 23.6 24.5



Grasim 16.3 16.7 14.7 14.6 13.6 13.7 13.3 12.5 10.9

ACC 7.9 8.2 9.1 10.4 10.0 9.7 10.1 9.8 9.1

Century Textiles 6.8 7.1 5.5 4.8 4.9 5.0 6.0 6.3 6.3

East 13.0 14.3 16.5 15.8 15.4 16.8 16.7 16.1 15.4

Lafarge 5.7 12.8 20.4 18.7 18.9 18.3 17.3 18.0 18.7

ACC 17.2 15.3 15.4 14.3 16.2 17.3 17.2 16.7 16.9




Grasim 5.7 6.2 6.8 6.9 7.2 7.2 8.3 7.7 7.1

South 27.9 26.5 26.3 27.6 27.7 25.4 28.7 29.5 29.7

India Cements 25.9 25.4 21.4 18.3 18.1 18.1 18.8 17.7 17.3

ACC 7.5 7.7 9.4 11.0 11.9 12.0 9.6 8.0 7.3

Madras Cements 10.3 10.8 11.5 11.3 10.8 11.2 10.9 11.7 11.3


Grasim 6.0 8.4 8.0 8.6 9.2 8.8 8.6 8.1 7.8



Table 3: Cement - Net sales of companies (Rs million) 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07ACC 23,058 25,579 27,847 27,878 31,912 37,860 41,953 56,631Andhra Cement 961 1,289 1,491 1,158 1,072 1,362 n.a. 1,028Ambuja Cement Rajasthan1* 1,519 2,535 2,363 2,532 n.a. n.a. n.a. n.a.Binani Cement 2,756 3,399 3,664 3,662 3,743 4,383 4,903 6,781Birla Corp 8,684 8,768 9,587 9,427 10,461 12,298 12,088 16,212Century Textiles 21,499 22,119 22,431 22,412 22,953 25,915 26,165 32,160Chettinad Cement 1,950 1,901 2,071 2,695 3,265 4,020 5,214 7,724Dalmia Cement 3,173 3,603 3,649 3,844 3,649 4,460 5,683 9,816Grasim 42,743 44,615 43,740 45,960 52,111 61,821 65,977 85,789Ambuja cement Ltd 11,159 12,685 13,828 17,391 19,607 25,955 25,965 62,262India Cements 11,684 12,316 9,967 8,388 10,029 11,480 15,279 22,519JK Corp3 n.a. 8,428 3,561 3,746 5,618 4,893 5,843 8,433JK Synthetics 4,170 4,119 5,059 5,983 6,267 4,579 n.a. n.a.Jaiprakash Industries4 12,280 16,246 15,539 25,015 24,248 n.a. n.a. n.a.KCP 1,073 1,146 1,123 1,137 1,187 1,439 1,748 2,621Kanoria Inds5 249 274 321 213 274 n.a. 172 44Kesoram Inds 6,083 11,164 11,225 11,622 13,144 14,324 16,246 22,174Madras Cements 5,053 6,075 6,947 6,174 6,860 7,287 9,989 15,730Mangalam Cement6 2,235 945 2,563 2,089 2,734 3,008 3,010 2,253Mysore Cement7 2,512 3,567 3,959 4,352 3,437 4,064 4,337 3,952OCL India 2,677 2,772 2,577 3,106 3,830 4,845 5,962 8,074Panyam Cements 827 619 677 457 507 n.a. 109 944Prism Cement8 2,840 3,990 3,512 3,162 3,667 4,248 4,249 7,555Priyadarshini 1,587 1,978 2,111 n.a. 1,711 6 n.a. n.a.Raasi Cement 3 - - - - - n.a. n.a.Shree Cement9 4,093 4,661 3,328 4,833 4,934 6,013 6,933 13,995Shree Digvijay10 2,045 2,271 1,749 1,893 1,401 898 2,165 2,555Sri Vishnu Cement 1,081 1,206 1,022 968 1,023 1,287 2,054 2,123Ultratech Cement Ltd. 68,869 70,395 - - 22,564 26,676 32,944 48,943Zuari Inds. 13,221 12,101 12,290 11,740 12,121 17,796 21,913 24,036n.a.: Not available 1 Financials are for an 18-month period, from April 1998 to September 1999. Financials from 1999-2000 are for the year ended June 3 Financials are for an 18-month period, from April 1999 to September 2000. Financials for 2000-01 are for the year ended September 2001 4 Jaiprakash Industries has been merged with Jaiprakash Associates from 2002-03 5Financials are for a 15-month period, from April 1998 to June 1999. Financials for 1999-2000, are for a 9-month period from July 1999 to March 2000 6 Financials for 2000-01 are for the year ended September 2001 7Financials are for a 15-month period, from April 1997 to June 1998. Financials for 1998-99 are for the year ended June 1999. Financials for 1999-2000, are for a 9-month period from July 1999 to March 2000 8 Financials are for a 15-month period, from April 2000 to June 2001 9 Financials for 1997-98 are for 15 months from April 1996 to June 1997. 1998-99 to 2000-01 figures are for the year ended in June. The figures for 2001-02 figures are for 9 months, from July 2001 to March 2002. 10 Financials for 1998-99, are for an 18-month period from April 1998 to September 1999. * Ambuja Cement Rajasthan has merged been with Gujarat Ambuja Cement Ltd. Note Net sales excludes indirect taxes. Source: CRISIL Research


Table 4: Cement - Operating profit margins of companies (per cent) 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07ACC 9.8 14.6 16.6 15.0 17.0 19.2 18.0 29.3Andhra Cement -9.5 9.2 33.5 6.8 -9.3 16.3 n.a. n.a.Ambuja Cement Rajasthan1* -5.5 9.04 19.4 17.7 n.a. n.a. n.a. n.a.Binani Cement 24.9 26.3 30.0 26.8 29.7 25.3 27.6 34.7Birla Corp 5.4 7.5 7.4 7.8 9.9 11.8 14.9 30.7Century Textiles 14.7 14.8 13.8 14.6 12.8 11.8 12.0 18.9Chettinad Cement 32.0 28.5 24.7 25.0 25.3 23.6 22.6 30.8Dalmia Cement 23.5 24.5 23.4 19.5 21.9 17.9 15.0 25.7Grasim 17.3 20.6 19.5 21.4 28.9 28.5 21.3 27.8Ambuja cement Ltd2 63.2 37.7 34.5 31.9 33.9 31.0 27.9 34.3India Cements 22.9 26.3 29.2 16.5 14.7 18.9 17.1 32.6JK Corp3 n.a. 20.8 7.8 19.8 14.3 16.8 20.8 30.2JK Synthetics 9.5 4.5 9.7 10.1 6.9 99.2 n.a. n.a.KCP 11.6 22.4 25.0 11.9 12.5 17.3 15.0 30.8Kanoria Inds4 -12.4 -9.6 -0.7 -40.2 -13.9 -30.6 n.a. -86.2Kesoram Inds 18.9 16.2 13.2 11.5 13.0 8.8 8.2 18.5Madras Cements 30.1 29.0 26.0 25.1 24.6 22.6 21.5 35.7Mangalam Cement5 10.7 -26.4 10.2 5.8 -1.8 63.7 11.6 30.0Mysore Cement6 -1.8 3.2 7.7 6.3 5.9 9.0 3.7 13.5Narmada Cement 3.3 3.5 5.9 n.a. 3.3 -3.5 n.a. n.a.OCL India 14.0 12.2 12.9 15.9 18.1 15.9 14.6 20.1Panyam Cements 8.5 -0.8 -24.5 -9.3 -34.0 -41.2 -222.2 18.7Prism Cement7 20.7 25.2 23.2 17.4 21.3 23.8 22.8 43.6Priyadarshini 19.9 25.3 14.1 n.a. 52.1 -125.8 n.a. n.a.Shree Cement8 22.0 21.5 25.1 22.5 26.0 29.1 28.6 42.4Shree Digvijay9 -38.0 7.4 5.6 12.5 6.9 2.2 19.0 22.3Sri Vishnu Cement 5.7 15.8 12.6 0.9 4.5 5.4 10.9 25.5Ultratech Cement Ltd. - - - - 18.4 13.6 17.1 29.1Zuari Inds. 8.8 6.5 5.7 7.6 7.3 5.7 3.8 3.8n.a.: Not available 1 Financials are for an 18-month period, from April 1998 to September 1999. Financials from 1999-2000 are for the year ended in June 2 Financials are for the year ended in June 3 Financials are for an 18-month period, from April 1999 to September 2000. Financials for 2000-01 are for the year ended September 2001 4 Financials are for a 15-month period, from April 1998 to June 1999. Financials for 1999-2000, are for a 9 month period from July 1999 to March 2000 5 Financials for 2000-01 are for the year ended September 2001 6 Financials are for a 15-month period, from April 1997 to June 1998. Financials for 1998-99 are for the year ended June 1999. Financials for 1999-2000, are for a 9-month period from July 1999 to March 2000 7 Financials are for a 15-month period, from April 2000 to June 2001 8 Financials for 1997-98 are for 15 months from April 1996 to June 1997. 1998-99 to 2000-01 figures are for the year ended in June. The figures for 2001-02 are for 9 months, from July 2001 to March 2002. 9 Financials for 1998-99, are for an 18 month period from April 1998 to September 1999. * Ambuja Cement Rajasthan has merged been with Gujarat Ambuja Cement Ltd. Note Operating profit margin has been calculated as profit before depreciation, interest and tax divided by net sales. Source: CRISIL Research


Table 5: Cement - Net profit margins of companies

(per cent) 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07ACC -2.7 2.2 4.7 3.7 6.3 10.0 17.3 16.9

Andhra Cement -29.9 -5.3 24.11 -7.0 -26.2 1.77 n.a. -55.2

Ambuja Cement Rajasthan1* -44.3 -23.5 -13.2 -10.1 n.a. n.a. n.a. n.a.

Binani Cement -13.1 -4.3 1.7 0.3 1.1 1.47 10.8 14.4

Birla Corp -4.4 -1.6 -0.1 0.4 4.1 7.06 10.4 18.8

Century Textiles 1.3 2.4 0.5 3.1 3.3 4.2 4.2 8.9

Chettinad Cement 3.3 3.9 -5.6 -2.6 4.3 6.96 7.68 13.9

Dalmia Cement 6.7 8.0 7.0 5.2 6.4 7.23 14.93 7.7

Grasim 5.5 8.5 6.9 8.0 15.0 14.3 13.1 14.7

Ambuja cement Ltd2 38.3 15.2 12.9 12.8 17.2 18.0 18.0 20.8

India Cements 1.7 3.9 -0.3 -24.0 -9.6 0.4 2.97 20.8

JK Corp3 n.a. -22.0 -20.6 -5.5 -5.6 5.3 9.5 19.7

JK Synthetics -11.8 -16.1 -7.3 2.5 -0.9 91.0 n.a. n.a.

KCP -8.5 5.0 7.0 -1.6 1.0 6.7 10.0 17.1

Kesoram Inds 2.6 4.2 3.7 2.5 4.8 2.3 2.8 10.9

Madras Cements 7.5 7.3 3.7 2.1 4.9 7.7 7.9 19.3

Mangalam Cement4 -7.0 -48.8 -8.3 -12.1 -26.8 54.6 5.6 20.5

Mysore Cement5 -23.4 -17.1 -5.1 -5.6 -10.5 -6.1 -20.7 -3.3

Narmada Cement -12.8 -10.1 -7.4 n.a. -22.9 -32.8 n.a. n.a.

OCL India 2.2 2.2 2.6 5.9 5.9 5.8 6.3 6.8

Panyam Cements -8.4 -17.9 -40.0 -27.8 -54.5 -70.6 -311.9 10.7

Prism Cement6 -9.8 -4.2 -2.5 -9.9 -1.6 6.1 6.1 25.1

Priyadarshini -5.5 1.3 -5.7 28.8 -175.8 n.a. n.a.

Shree Cement7 3.8 5.6 0.4 1.6 2.6 4.8 2.7 4.5

Shree Digvijay8 -55.4 -10.0 -18.5 -11.3 -24.3 -11.1 22.5 18.7

Sri Vishnu Cement -6.7 5.7 0.2 -13.4 -7.8 -3.5 6.4 17.3

Ultratech Cement Ltd - - - - 1.8 0.1 7.0 14.4

Zuari Inds -1.6 2.0 1.0 1.8 1.6 1.5 1.2 -1.9

n.a.: Not available 1 Financials are for an 18-month period, from April 1998 to September 1999. Financials from 1999-2000 are for the year

ended in June 2 Financials are for the year ended in June 3 Financials are for an 18-month period, from April 1999 to September 2000. Financials for 2000-01 are for the year ended

September 2001 4 Financials for 2000-01 are for the year ended September 2001 5Financials are for a 15-month period, from April 1997 to June 1998. Financials for 1998-99 are for the year ended

June 1999. Financials for 1999-2000, are for a 9-month period from July 1999 to March 2000 6 Financials are for a 15-month period, from April 2000 to June 2001 7 Financials for 1997-98 are for 15 months from April 1996 to June 1997. 1998-99 to 2000-01 figures are for the year

ended in June. The figures for 2001-02 are for 9 months, from July 2001 to March 2002. 8 Financials for 1998-99, are for an 18 month period from April 1998 to September 1999. * Ambuja Cement Rajasthan has merged been with Gujarat Ambuja Cement Ltd.

Note

Net profit margin has been calculated as profit after tax divided by net sales.



Table 6: Cement - Debt-equity ratio

(times) 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07ACC 1.4 1.6 1.7 1.5 1.1 1.0 0.5 0.25

Andhra Cement -0.9 -0.9 -0.9 -1.1 -1.0 n.a. n.a. n.a.

Binani Cement 1.1 1.2 1.1 1.8 1.8 2.2 2.2 2.29

Birla Corp 1.6 1.2 1.3 1.3 0.9 0.8 0.6 0.34

Century Textiles 1.7 1.7 2.0 1.4 1.4 1.2 1.2 1.66

Chettinad Cement 1.6 1.8 3.5 2.5 2.2 2.2 1.8 0.9

Dalmia Cement 1.2 1.1 1.3 1.2 1.1 1.9 2.0 1.5

Grasim 0.8 0.6 0.8 0.7 0.6 0.5 0.4 0.47

Ambuja cement Ltd2 0.8 1.1 1.1 1.1 0.6 0.5 0.5 0.25

India Cements 2.2 2.4 3.0 4.4 5.6 5.8 1.9 1.48

JK Corp3 3.6 5.4 6.4 n.a. 7.5 5.6 3.8 1.84

JK Synthetics -1.8 -1.2 -1.4 -1.4 -1.3 n.a. n.a. n.a.

Jaiprakash Industries 1.4 1.4 1.4 n.a. n.a. n.a. n.a. n.a.

KCP 1.0 0.7 0.6 0.6 0.6 0.5 0.6 0.5

Kanoria Inds4 0.8 -1.4 -1.0 -0.8 -0.7 n.a. n.a. n.a.

Kesoram Inds 1.2 1.8 1.5 1.4 1.3 1.4 1.4 1.22

Madras Cements 1.5 1.8 2.8 2.7 2.2 2.1 1.5 1.02

Mangalam Cement5 5.8 -6.6 -3.4 -2.0 2.2 5.4 2.5 0.48

Mysore Cement6 3.3 13.3 7.5 17.3 n.a. n.a. -2.8 n.a.

OCL India 0.9 0.9 1.0 1.3 1.4 2.0 1.9 1.17

Panyam Cements 3.6 -12.4 -1.5 -1.0 1.4 n.a. -0.4 n.a.

Prism Cement7 3.0 2.4 1.8 2.1 1.9 1.3 1.3 0

Priyadarshini 3.1 3.3 3.6 4.0 n.a. n.a. n.a. n.a.

Shree Cement8 1.6 1.3 1.4 1.8 1.4 1.1 1.4 2.5

Shree Digvijay9 -1.7 -1.4 -1.5 -1.2 1.6 -1.3 -1.5 1.7

Sri Vishnu Cement 7.7 5.3 7.7 2.0 4.0 5.6 1.9 0.29

Ultratech Cement Ltd - - - - 1.5 1.4 1.4 0.9

Zuari Inds 1.8 0.8 1.0 1.5 1.7 1.6 2.1 1.1

n.a.: Not available 1 Financials are for an 18-month period, from April 1998 to September 1999. Financials from 1999-2000 are for the year ended

in June 2 Financials are for the year ended in June 3 Financials are for an 18-month period, from April 1999 to September 2000. Financials for 2000-01 are for the year ended

September 2001 4 Financials are for a 15-month period, from April 1998 to June 1999. Financials for 1999-2000, are for a 9 month period from

July 1999 to March 2000 5 Financials for 2000-01 are for the year ended September 2001 6 Financials are for a 15-month period, from April 1997 to June 1998. Financials for 1998-99 are for the year ended June 1999.

Financials for 1999-2000, are for a 9-month period from July 1999 to March 2000 7 Financials are for a 15-month period, from April 2000 to June 2001 8 Financials for 1997-98 are for 15 months from April 1996 to June 1997. 1998-99 to 2000-01 figures are for the year ended

in June. The figures for 2001-02 are for 9 months, from July 2001 to March 2002. 9 Financials for 1998-99, are for an 18-month period from April 1998 to September 1999

Note

Debt-equity ratio has been calculated as total borrowings divided by networth.



Table 7: Cement - Return on capital employed

(per cent) 1999-2000

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

ACC 9.1 13.3 18.3 16.6 19.7 23.6 21.02 42.34Andhra Cement 36.5 -32.2 -19.4 44.0 89.2 -89.8 n.a. n.a.Ambuja Cement Rajasthan1* -2.1 5.7 12.3 12.6 n.a. n.a. n.a. n.a.Binani Cement 11.9 15.4 18.1 15.5 17.3 15.0 11.14 22.04Birla Corp 9.7 13.3 14.9 15.5 23.1 27.0 23.14 72.17Century Textiles 13.4 13.9 17.2 18.5 16.0 18.9 12.27 37.92Chettinad Cement 20.6 12.3 11.0 15.2 19.6 20.0 15.7 39.8Dalmia Cement 15.3 17.2 17.6 14.8 15.1 10.5 12.04 16.63Grasim 14.6 18.5 17.9 19.5 26.5 27.8 17.56 28.5Ambuja cement Ltd2 26.2 15.1 14.1 16.5 20.2 24.4 16.4 49.63India Cements 11.3 12.6 12.2 6.4 6.1 9.4 7.71 23.8JK Corp3 n.a. 11.6 3.0 8.2 6.4 10.0 8.18 22.41Jaiprakash Industries n.a. 18.6 14.3 23.2 20.6 17.2 n.a. n.a.KCP 6.4 15.0 17.8 8.9 9.9 17.0 17.63 45.93Kesoram Inds 15.3 18.9 18.3 17.5 21.9 14.4 10.7 39.51Madras Cements 16.5 15.6 18.1 16.0 18.7 16.1 12.56 44.25Mangalam Cement5 14.6 -40.8 23.5 21.3 -30.0 128.3 20.63 36.77Mysore Cement6 -1.6 3.2 8.7 8.6 6.9 13.1 -24.66 19.16Narmada Cement 5.3 6.3 13.4 n.a. 4.1 -12.8 n.a. n.a.OCL India 14.1 12.5 13.9 16.2 20.1 15.2 11.35 25.3Panyam Cements 13.2 -1.1 n.m. n.m. 72.2 37.3 47.53 n.a.Prism Cement7 11.2 15.7 16.0 11.6 17.8 24.1 13.82 78.75Priyadarshini 15.1 24.3 14.7 n.a. 76.5 -0.7 0.47 1.25Saurashtra Cements 0.9 2.8 -1.0 8.1 -0.2 5.5 5.3 16.95Shree Digvijay8 -63.0 19.3 16.8 33.7 24.3 6.0 n.a. 18.72Shree Cement 16.2 17.8 21.4 17.7 21.4 28.7 5.28 58.5Sri Vishnu Cement 7.3 18.4 21.8 1.5 7.4 12.7 70.62 94.3Tamil Nadu Cements -12.8 -2.5 5.5 8.5 n.a. n.a. 29.48 12.59Ultratech Cement Ltd - - - - 15.1 14.0 12.52 43.4Zuari Inds 12.4 12.2 9.5 10.5 9.6 10.5 7.39 8.91n.a.: Not available n.m.: Not meaningful 1 Financials are for an 18-month period, from April 1998 to September 1999. Financials from 1999-2000 are for the year ended June 2 Financials are for the year ended in June 3 Financials are for a 18-month period, from April 1999 to September 2000. Financials for 2000-01 are for the year ended September 2001 4 Financials are for a 15-month period, from April 1998 to June 1999. Financials for 1999-2000, are for a 9-month period from July 1999 to March 2000 5 Financials for 2000-01 are for the year ended September 2001 6 Financials are for a 15-month period, from April 1997 to June 1998. Financials for 1998-99 are for the year ended June 1999. Financials for 1999-2000, are for a 9-month period from July 1999 to March 2000 7 Financials are for a 15-month period, from April 2000 to June 2001 8 Financials for 1993-94 and 1994-95 period, are for year ended in June. Financials for 1995-96 are for a 9-month period from June 1995 to March 1996. Financials for 1998-99, are for an 18-month period from April 1998 to September 1999 * Ambuja Cement Rajasthan has merged been with Gujarat Ambuja Cement Ltd. Notes 1) Return on capital employed has been calculated as profit before depreciation, interest and tax divided by capital employed. 2) Capital employed is networth plustotal debt. Source: CRISIL Research


Table 1: Cement - Company-wise exports

('000 tonnes) 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Ambuja cement Ltd 493 929 1195 1644 1756 1908 1522 1586 1006

Ultratech Cement Ltd 318 737 1013 706 719 868 1505 1132 601

Jaiprakash Inds 269 330 335 343 257 255 278 225 145

Birla Corp 218 268 200 191 121 112 95 36 44

ACC 163 210 195 128 73 70 52 59 30

Prism Cement 58 86 116 104 91 77 81 11 16

Lafarge 22 97 109 100 65 76 74 22 10

Century Textiles 99 140 134 86 16 27 13 23 19

Grasim 52 105 29 80 71 29 79 12 -

Madras Cements - 0 32 44 85 85 228 78 -

Saurashtra Cement - 15 4 28 61 285 657 632 286

OCL India 52 32 4 7 - - - - -

Dalmia Cement 8 3 7 4 7 12 6 8 5

India Cements 3 1 2 2 37 161 267 93 3

Mysore Cement 2 - - 2 2 12 0 - 2

Sanghi Industries Ltd - - - - 2 54 694 1032 700

Kalyanpur Cement 54 30 2 1 0 - - - -

Chettinad Cement - 1 7 - - 3 - - -

Gujarat Sidhee Cement 0 32 - - - 31 291 376 256

Zuari Inds - - - - - 7 149 85 -

Indo Rama Cement - - - - - - 22 - -

Idcol Cement

5 4 - - - - - - -

Raymond Woollens 129 115 - - - - - - -

Shree Digvijay 15 21 - - - - - - -

Tisco 22 - - - - - - - -

Total 1,984 3,157 3,383 3,470 3,363 4,072 6015 5409 3124

Source: CMA

6.0 Exports


Table 2: Cement - Country-wise exports ('000 tonnes) 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Nepal 817 1,114 1,166 1,050 701 665 558 377 266

Africa - - 726 - - - - - -

Sri Lanka 0.4 24 44 45 86 102 101 106 -

Bhutan - 26 5 20 23 4 7 4 -

Maldives 11 4 10 7 21 38 43 31 8

Iraq - - - - 28 3 1,028 1,426 787

Bangladesh 528 485 59 - - - - - -

Myanmar - - - - - 4 - - -

Spain - 29 - - - - - - -

UAE 5 - - - 16 55 183 81 30

Yemen - - - - - - 103 173 29

Somalia - - - - 7 3 8 - -

Madagascar - - - - - 11 41 5 -

Mozambique - - - - - 14 - 14 -

Kuwait - - - - - 15 85 45 -

Qatar - - - - - 47 281 154 125

South Africa 475 700 465 274 21 105 56 31 42

Seychelles - - - - 3 2 9 - -

Others 112 754 909 2,072 2,456 3,002 3,512 2,976 1,837

Total 1,949 3,136 3,383 3,470 3,363 4,072 6,015 5,424 3,124 Source: CMA Table 3: Clinker - Company-wise exports

('000 tonnes) 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08Ultratech Cement Ltd 1,134.7 1,628.5 1,258.1 2,065.5 2,777.7 2,638.0 1,118.1 2,194.4 1,572.5

Gujarat Sidhee Cement - - 11.3 522.9 457.7 477.9 221.9 74.6 -

Sanghi Industries Ltd - - - - 266.1 782.4 739.7 378.4 45.6

Grasim 7.4 87.2 48.2 262.6 194.8 279.6 138.7 - 31.6

Saurashtra Cement - - - 166.8 425.3 223.7 42.0 8.5 29.6

Jaiprakash Inds 0.4 62.7 79.0 141.2 152.9 89.4 59.1 36.6 -

Lafarge - 4.4 114.2 129.9 27.1 23.6 - - -


Mysore Cement - - - 37.0 37.3 112.6 112.3 3.5 -

Madras Cements - - - 17.5 0.8 88.0 288.8 - -

Prism Cement 5.3 8.4 24.0 12.8 86.1 209.9 250.8 191.0 223.7

Zuari Inds - - - - - 14.8 28.4 - -

Birla Corp - 2.7 5.3 11.2 - 0.3 21.5 - 7.4

Ambuja cement Ltd - 83.9 13.2 11.1 9.0 7.2 - - -

Priyadarshini - - - - - 2.7 - - -

ACC 0.3 - 4.1 4.3 17.2 - 3.0 2.0 -

OCL India 1.9 - 8.6 2.3 - - - - -

Raymond Woollens 33.7 77.0 - - - - - - -

India Cements - - - - 229.5 799.4 155.7 - -

Mangalam Cement - - - - 3.5 - - 118.3 91.0

Penna Cement - - - - - - - 6.9 -

Shree Cement - - - - - - - 23.3 59.5

Meghalaya Cement - - - - - - - 5.5 8.0

Total 1,192 1,974 1,603 3,455 4,749 5,812 3,225 3,047 2,121Source: CMA


Table 4: Clinker - Country-wise exports

('000 tonnes) 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

UAE - - - 516 641 727 428 148 46

Nepal 11 67 169 312 394 489 487 406 485

Bangladesh 57 211 196 151 222 581 91 68 -

Bhutan 5 2 9 26 18 7 - 3 8

Sri Lanka - - - 18 74 220 97 - -

Africa - 84 - - - - - - -

Bahrain - - - - - - 20 - -

South Africa - 36 - - - 51 - - -

Spain - - - 109 - 135 191 - -

Kuwait - - - - 41 94 - - -

Oman - - - - 34 67 108 174 32

Jordan - - - - - 36 - - -

Tanzania - - - - - 28 - - -

Iran - - - - 50 25 138 40 -

Mozambique - - - - - 24 57 - -

Others 1,119 1,659 1,229 2,298 3,083 3,067 1,665 2,227 1,600

Total 1,192 2,058 1,603 3,429 4,558 5,550 3,225 3,067 2,169

Source: CMA


Table 1: Company-wise limestone cost

(Rs/tonne of limestone) 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

ACC 114 113 116 29 31 35 43 46

Ambuja Cement Eastern1 69 85 81 67 75 n.a. n.a. n.a.

Andhra Cements 58 67 72 72 74 78 99 109

Binani Cement 46 59 53 54 59 75 80 91

Birla Corp 106 110 119 112 109 116 126 131

Century Textiles 85 97 104 113 110 117 127 132

Chettinad Cement 109 116 133 124 126 144 181 235

Dalmia Cement 103 114 132 126 138 143 155 145

Grasim 62 75 78 77 79 80 82 130

Ambuja cement Ltd1 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.

India Cements 113 122 121 128 119 122 135 140

Jaiprakash Inds2 77 84 80 86 91 90 99 106

JK Corp3 78 95 90 90 90 94 105 109

JK Synthetics 82 95 97 98 100 98 98 n.a.

JK Udaipur Udyog n.a. n.a. 148 - n.a. n.a. n.a. n.a.

Kesoram Inds 84 88 100 97 94 100 114 126

KCP 96 116 118 119 110 118 138 174

Madras Cements 102 104 99 107 110 114 141 158

Mangalam Cement3 102 117 125 125 125 134 170 191

Mysore Cement 159 168 149 148 158 160 191 212

Narmada Cement 61 60 63 63 42 67 n.a. n.a.

OCL India 176 172 145 162 151 155 163 207

Panyam Cements 33 39 69 48 49 72 99 84

Priyadarshini 17 17 20 18 18 n.a. n.a. n.a.

Saurashtra Cement1 63 78 65 65 67 72 83 105

Shree Cement1 109 122 117 125 135 122 126 132

Sri Vishnu Cement 59 75 80 43 135 42 48 49

Ultratech Cement Ltd - - - - 38 39 78 85

n.a.: Not available 1 Figures provided are for the financial year ending June 2 Figures for 1995-96 are for the financial year ending June 3 Figures for 1999-2000, 2000-01, 2001-02 are for the financial year ending September


7.0 Cost


Table 2: Company-wise coal costs

(Rs/tonne of cement) 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

ACC 267 253 225 259 255 268 276 334

Andhra Cements 329 353 289 339 292 300 381 319

Binani Cement 327 373 392 n.a 330 408 n.a 391

Birla Corp 225 - - 332 333 353 364 430



Dalmia Cement 243 300 293 272 264 364 457 486

DLF Cement 231 354 349 301 - - - -

Grasim 390 466 445 423 485 556 515 470

Ambuja cement Ltd 234 253 240 243 245 303 274 315

Gujarat Sidhee Cement 273 320 312 522 525 824 506 452

India Cements 286 341 362 317 281 482 395 381

Jaiprakash Inds 210 218 233 231 232 319 342 940

JK Corp1 359 555 272 272 246 369 307 299

JK Synthetics 465 431 354 413 384 470 n.a n.a

Kanoria Inds 292 309 315 262 291 328 186 n.a

KCP 292 309 265 262 291 330 406 n.a

Madras Cements 231 249 208 205 219 294 281 288

Mangalam Cement 338 335 161 347 388 465 476 261

Narmada Cement 260 318 271 273 409 403 403 n.a

OCL India 121 122 113 122 137 153 201 194

Panyam Cements 349 449 351 470 599 448 385 n.a

Prism Cement1 233 224 243 251 251 339 370 398

Priyadarshini 270 289 272 301 446 n.a n.a n.a

Shree Cement 290 219 172 154 198 288 253 302

Sri Vishnu Cement 323 367 272 284 250 345 400 n.a

Ultratech Cement Ltd - - - - 283 357 328 396

n.a.: Not available 1 The financial year ending of JK Corp, Prism Cement is June.



Table 3: Company-wise power consumption

(kWh/tonne) 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

ACC1, 5 96 97 92 90 90 86 88 89

Ambuja Cement Eastern 87 91 93 98 99 92 n.a. n.a

Binani Cement 84 80 79 78 77 77 n.a. 75

Birla Corp 98 94 92 87 84 85 84 83



Dalmia Cement 93 87 84 75 71 75 76 77

DLF Cement 104 99 100 91 - - - -

Grasim 90 90 91 85 85 85 80 70

Ambuja cement Ltd 89 86 86 86 86 84 86 84

Gujarat Sidhee Cement 89 88 89 84 86 86 85 89

India Cements1 101 97 92 94 127 125 130 130

Jai Prakash Inds 104 99 95 90 89 86 87 86

JK Corp 2 87 88 88 88 86 84 82 83

JK Synthetics 103 103 103 103 96 93 n.a. n.a

JK Udaipur Udyog 113 - 115 n.a. n.a. n.a. n.a. n.a

Kanoria Inds 123 133 122 111 110 127 122 0

Kesoram Inds 94 88 88 86 79 76 78 77

KCP 100 98 94 89 84 83 85 89

Madras Cements 82 82 77 74 72 72 72 73

Mangalam Cement 3,4 86 86 91 0 182 182 179 91

Mysore Cement 103 96 92 86 84 88 93 n.a

Narmada Cement 103 97 98 99 92 94 n.a. n.a

OCL India 87 84 82 94 94 91 85 87

Panyam Cements 133 124 127 131 145 133 105 155

Prism Cement 90 86 81 81 79 79 76 72

Priyadarshini 97 95 93 93 93 93 n.a. n.a

Raasi Cement - - - - -

Raymond Woollens 79 80 - - - - - -

Saurashtra Cement n.a. 104 97 97 98 101 106 104

Shree Cement n.a. 78 79 76 77 75 73 74

Sri Vishnu Cement 110 108 102 100 97 99 94 n.a

Ultratech Cement Ltd 94 91 91 88 84 87 89 87

n.a.: Not available 1 Figures are with respect to the dry process 2 Figures are with respect to grey cement. 2 Figures for 1999-2000 are for 18 months, with a September year-ending 4 Figures for 1999-2000 are for the 9 month period, with the year ending June. 3 Figures are with respect to the new unit 4 Figures for 2000-01 are for the October 2000 to September 2001 period 5 From 2005-06, Figures are as of December



Table 4: Company-wise coal cost

(Rs/tonne of coal) 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

ACC6 1,716 1,652 1,675 1,768 1,810 1,953 2,181 2,178

Ambuja Cement Eastern1 287 301 313 313 318 n.a. n.a. n.a.

Ambuja Cement Rajasthan1,5 401 461 450 447 n.a. n.a. n.a. n.a.

Andhra Cements 1,777 1,897 1,767 2,027 2,029 2,073 2,004 2,004

Binani Cement 2,141 2,597 2,597 5,308 5,407 3,639 n.a. 3,440

Birla Corp 1,707 n.a. n.a. 1,890 1,915 2,204 2,068 2,268

Century Textiles 1,430 1,588 1,705 1,703 n.a. 1,928 2,024 2,142

Chettinad Cement 2,439 3,009 2,989 3,114 2,913 3,674 3,533 4,076

Dalmia Cement 2,089 2,412 2,658 2,620 2,579 3,528 3,431 3,551

Deccan Cement1 350 345 381 402 413 522 474 504

DLF Cement 401 461 450 447 n.a n.a n.a 3,183

Grasim 2,031 2,049 2,049 2,049 2,104 2,325 2,400 2,410

Ambuja cement Ltd1, 6 353 395 387 357 394 505 503 503

Gujarat Sidhee Cement1 345 380 358 325 369 523 491 542

India Cements 1,947 2,411 2,534 2,568 2,644 3,073 3,192 3,183

Jaiprakash Inds 1,581 1,579 1,674 1,774 1,822 2,081 2,071 2,230

JK Corp4 2,204 1,761 2,699 2,366 2,569 3,472 3,308 4,000

JK Synthetics 2,506 2,675 2,724 n.a 2,722 3,308 n.a. n.a.

Kanoria Inds 2,039 2,014 2,266 2,359 2,586 2,529 2,742 n.a.

Kesoram Inds 1,887 1,673 1,498 1,588 1,581 1,624 1,815 1,876

KCP 1,899 1,934 1,887 1,880 1,908 2,104 2,479 2,742

Madras Cements 1,966 2,360 2,517 2,295 2,541 3,341 3,159 3,393

Mangalam Cement3 2,414 2,414 1,994 2,130 2,310 2,543 2,652 2,635

Mysore Cement1 401 401 417 412 442 511 570 638

Narmada Cement 1,783 2,146 2,533 2,010 2,462 3,390 n.a. n.a.

OCL India 761 756 875 965 945 1,208 1,488 1,617

Orient Cement 1,236 n.a. n.a. n.a n.a n.a n.a n.a

Panyam Cements 1,836 1,797 1,788 1,809 n.a. n.a. 1,819 2,354

Prism Cement 1,421 1,461 1,669 1,701 1,838 2,006 2,198 2,382

Priyadarshini 1,614 1,778 2,127 n.a n.a n.a n.a n.a

Raymond Woollens 1,147 1,223 - - - - - -

Shree Cement 2,380 2,334 2,016 1,861 2,242 3,189 3,118 3,610

Sri Vishnu Cement 1,638 2,079 1,817 1,805 1,669 1,976 2,158 2,256

Ultratech Cement Ltd - - - - 1,587 1,904 1,888 2,396

Zuari Inds. 2,003 - - - - - - -

n.a.: Not available 1 Figures denote average rate in Rs per million kCal 2 Figures includes cost of lignite 3 Figures for 2000-01 are for the October 2000 to September 2001 period 4 Figures for 1999-2000 are for 18 months with the year ending in September 5 Figures for 1999-2000 are for 9 months with the year ending in June 6 Figures for ACC from 2005-06 are as of December


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