India Cement Industry Report - 2014

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India Cement Industry Report - 2014

This report profiles India’s cement industry, discussing market trends through 2013 and outlook for 2014 and beyond. The report also highlights leading players in the sector including Ambuja Cements Ltd, UltraTech Cement Ltd and India Cements Ltd.

Cement is one of the eight core industries of the Indian economy. As of 2013, India was the second largest producer of cement in the world behind China. However, per capita cement consumption in India is still amongst the lowest in the world. The vast potential that exists in the industry has attracted investors from all round the world.

FY14 was a tough year for the Indian cement industry. Sustained slowdown in industries and construction sector moderated the overall consumption of cement in the country. High interest rates particularly hit the real estate sector which is the main driver of the construction industry. Excess capacity due to subdued domestic demand and fall in global cement prices led to a decline in domestic prices. As a result, most of the cement players recorded a steep decline in profit margins during the year. The overcapacity and falling margins have made the situation ripe for industry consolidation. Going forward, we may witness a rise in mergers and acquisitions within the sector.

The consumption of cement in India is expected to grow in the years to come backed by increased political stability and steady growth in housing and infrastructure development. The country’s installed capacity is sufficient to accommodate any rise in consumption.

Key Points:

• Government spending on infrastructure has been a major source of growth for the sector. As of FY12, the investment in infrastructure was at 8.37% of GDP. This figure is projected to grow to 10.70% of GDP by the end of the 12th Plan period (2012-17).

• During 2006-14, India’s installed cement capacity increased at a CAGR of 10%. Private sector accounted for more than 95% of the capacity while the remainder came from government.

• During 2006-14, India’s annual cement consumption grew at a CAGR of 8%, which was less than the capacity growth during the same period.

• During 2008-14, the production index for core industries recorded a CAGR of 5.1%. Cement industry outperformed the overall group with a CAGR of 6.6% during the same period. However, in FY14, both the overall group and cement industry saw a subdued growth in production.


Table of Contents

1. Industry Profile
1.1 Sector overview
1.2 Sector size
1.3 Competitive landscape
1.4 Environmental scanning

2. Market Trends and Outlook
2.1 Key economic indicators-India
2.2 Installed capacity
2.3 Cement production
2.4 Cement consumption
2.5 Cement trade
2.6 Cement prices
2.7 Market outlook

3. Leading Players and Comparative Matrix
3.1 Leading players
3.1.1 Ambuja Cements Limited (ACL)
3.1.2 UltraTech Cement Ltd (UTCL)
3.1.3 India Cements Ltd (ICL)
3.2 Comparative matrix
3.3 SWOT analysis

4. Tables and Charts

Table 1: World cement consumption statistics
Table 2: Recommendations of the working group for the growth of cement industry
Table 3: Key financial ratios of the leading players
Table 4: Latest quarterly results of leading players

Chart 1: Index of industrial production
Chart 2: Breakup of world cement production by countries
Chart 3: Size of the Indian cement industry
Chart 4: Excise revenues collected from the cement sector
Chart 5: Number of cement manufacturing plants owned by major cement players
Chart 6: Result of Indian general elections 2014-Seat share
Chart 7: Projected investment in infrastructure as a percentage of GDP
Chart 8: Per capita consumption of cement in India
Chart 9: Quarterly GDP growth rate-India
Chart 10: Average monthly USD to INR exchange rate
Chart 11: Monthly inflation-India
Chart 12: Repo rate
Chart 13: GDP by sectors at factor prices
Chart 14: Percentage change over previous year- GDP by Sector
Chart 15: Annual Installed capacity of cement industry
Chart 16: Breakup of installed capacity by company
Chart 17: Total annual cement production
Chart 18: Annual capacity utilization
Chart 19: Total annual cement consumption in India
Chart 20: Annual cement demand as a ratio of installed capacity
Chart 21: Cement consumption by sector
Chart 22: Cement consumption by region
Chart 23: Cement exports from India
Chart 24: Breakup of Indian cement exports by countries
Chart 25: Annual wholesale price index for grey cement
Chart 26: Monthly wholesale price index for cement
Chart 27: Forecast for cement consumption in India
Chart 28: Tentative holding structure of LafargeHolcim Group in India
Chart 29: Cement consumption by region-ACL
Chart 30: Net sales of ACL and ACC
Chart 31: EBIDTA margins of ACL and ACC
Chart 32: Annual production of UTCL
Chart 33: Net sales of UTCL
Chart 34: Profit margins of UTCL
Chart 35: Annual production of ICL
Chart 36: Net sales of ICL
Chart 37: Profit margins of ICL

Number of pages: 31
Release Date: Mon, 25 Aug 2014