23-01-2013, 03:43 PM
Customer perception of j.k white cement and wall putty
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Cement Industry
Fast rising Government Expenditure on Infrastructure sector in India has resulted a higher demand of cement in the country. In the same direction, participation of larger companies in the sector has increased. For raising efficiency in the sector, the Planning Commission of India in the 10th plan has formed a 'Working Group on Cement Industry’. With an installed capacity of around 173 million tons per annum (mtpa), The Indian cement industry is comprised of 129 large cement plants and 300 mini-cement plants, with installed capacities of 160 mtpa and 13 mtpa respectively.
Large cement plants accounted for 93% of the total installed capacity in India. The installed capacity is distributed over across approximately 129 large cement plants owned by around 54companies.India is the second largest producer of cement in the world. In 2005, India produced 142mt of cement, accounting for 6.4% of global production of 2.22 billion tones. India is the second largest producer-behind China
(1,000 mt), but ahead of the US (99 mt) andJapan (66 mt). India's cement industry-both installed capacity and actual production-has grown significantly over the past three decades, with production increasing at an average rate of 8.1% per year between 1981 and 2004-05.In India, about 44% of the cement produced is Ordinary Portland Cement (OPC), 47% is Pozzolana Cement (PPC), 8% is Portland Blast Furnace Slag Cement (PBFS), and the remaining 1% are special cements. The cement industry has witnessed substantial reorganization of capacities during the last couple of years. Some examples of the consolidation witnessed during the recent past include: Gujarat Ambuja taking a stake of 14% in ACC; Gujarat Ambuja taking over DLF Cements and Modi Cement; India Cement taking over Raasi Cement and Sri Vishnu Cement; Grasim's acquisition of the cement business of L&T; Indian Rayon's cement division merging with Grasim; Grasim taking over Sri Digvijay Cements; L&T taking over Narmada Cements; ACC taking over IDCOL. Multinational cement companies have also initiated the acquisition process in the Indian cement market. Swiss cement major Holcim has picked up 14.8% of the promoters stakein Gujarat Ambuja Cements (GACL). In January 2006, Holderind Investments (HolcimMauritius), an indirect, wholly-owned subsidiary of Holcim, acquired 200 million equityshares of GACL at a price of Rs.105 per share from the promoters. Post-sale, the share of promoters in the company is 9%. Holcim also made an open offer to acquire an additional20% stake in GACL at Rs. 90.64 per share. Earlier, Holcim had entered into a strategicalliance with GACL, and acquired a 67% controlling stake in Ambuja Cement India.Through this holding company, Holcim acquired a majority in Ambuja Cement Easternand a substantial stake in ACC.