Analysis of Indian Cement Industry

 Analysis of Indian Cement Industry Essay

Sector Analysis Record – Assignment 3, Submitting 2

In partial happiness for certain requirements of the training course

Written Examination and Connection – II

Submitted to

Instructor: Prof. Nagesh Rao

Academic Associate: Ms. Divya Krishnan

In March 12, 2012

By simply

Abhishek Shastri

Dhirendra Goyal

Kartikey Lande

Rohit Garg

Section C

INDIAN INSTITUTE OF ADMINISTRATION

AHMEDABAD

Exec Summary

The first area of the report defines the concrete industry and defines the scope from the report. Then simply various types of cement available in the Indian market, concrete industry's segmentation and its cost structure are looked at. Next, the key signals of efficiency for cement industry will be defined. Additional, key trends in the concrete industry and future progress drivers happen to be identified and they are later employed in company evaluation. The Porter's five forces acting after the market are also assessed. In the second part, ACC limited is usually analyzed as well as company account is created. Is it doesn't second largest cement organization in India and provides a strong product portfolio. It also augments the services by simply reaching out to consumers via various initiatives just like help vans, centers, materials etc . While there has been a along with its capacity addition & utilization and asset yield ratio over the last two years, its turnover per employee has increased. Also, the operating EBITDA, PAT and ROCE have been constantly lowering from 2009-11 despite delete word a constant increase in its capital employed. They have also been investing heavily in Capacity Upgrades, M& A's and R& D. Following, UltraTech Cement Ltd, the largest player in Indian cement industry can be analyzed. Additionally, it has a reasonably strong merchandise portfolio and has well distributed presence in the southern part of, central and western a part of India. During the lean economical year of 2011, although its product sales fell a lot more than industry average still the fall in their capacity usage was less than the market average. Combination with Samruddhi in 2010-11, increased it is net set assets and gave that a presence in upper India as well. Due to the merger, its proceeds per staff also chop down but it could possibly be considered a brief phenomenon. Post-merger, its TRATO also droped significantly. It has been investing in a range of R& Deb, M& A, and HR projects. On the basis of the a comparison of two companies, it is located that though ACC is preferable to UltraTech in several parameters, UltraTech fares much better than ACC regarding its total sales, yield per worker and EBITDA. This may be as a result of better hrm, and technical advantages that UltraTech can be having and ACC should try to improve about these fronts. (Word Count - 380)

Contents

Exec Summary2

Profile of the American indian Cement Industry5

Industry Segmentation5

Cost Framework of Concrete Industry6

Key Indicators of Performance7

Crucial Trends in the Cement Industry8

Regulatory Environment & Upcoming Growth Motorists of the Industry9

Porter's Five Forces Analysis for Cement Industry10

ACC limited11

Crucial Performance Indicators11

Physical Parameters11

Financial Parameters12

Recent Proper Developments12

Strength and Power12

Capacity additions13

Mergers and Acquisitions13

Research and Development13

UltraTech Limited14

Key Efficiency Indicators14

Physical Parameters14

Economical Parameters15

New Strategic Developments16

Merger and Acquisitions16

Expenditure in Research and Development (R& D)16

Human Resource Initiatives16

Brand Understanding and Calculating Effectiveness17

Challenges17

Overcapacity17

Increasing Cost of Production17

Initiatives simply by UltraTech to improve performance18

Conservation of energy18

R& D Activities and Benefits18

Comparison Analysis of ACC Limited and UltraTech Cement Limited19

Installed Capability and Production19

Financial Comparison19

Other parameters20

Conclusion21

Exhibits22

Bibliography33

Profile of the Indian...

Bibliography: Top cement firms in India. (2011, Dec 21). Recovered March 2009, 2012, from Business Maps of India: http://business.mapsofindia.com/cement/top-10-cement-companies.html

About us: Heritage

Items: Customer services. (2012). Recovered March 2009, 2012, by ACC official website: http://www.acclimited.com/newsite/customer_services_en.asp

ACC Ltd

ACC Limited. (2009). Gross annual Report. Acc Ltd.

ACC Ltd. (2010). Annual Report. ACC Limited.

ACC Ltd. (2011). ACC Annual Record. ACC Limited.

ACC Ltd. (2011, 2010, 2009). Total annual Reports.

Annual Record 2011 UltraTech

Annual Survey 2011 UltraTech. (n. deb. ). Gathered March several, 2012, coming from www.ultratechcement.com: http://www.ultratechcement.com/investors/downloads/UltraTech_annual_report10-11.pdf

Annual Rport 2011 Ultratech

Bharat Book Bureau. (2011, March). Report on American indian Cement Sector. Retrieved Drive 9, 2012, from www.bharatbook.com: http://www.bharatbook.com/market-research-reports/cement-market-research-report/report-on-indian-cement-industry.html

Organization Barons

organization. gov. in. (n. d. ). market services. Retrieved March 15, 2012, by business. gov. in: http://business.gov.in/Industry_services/cement.php

Capitaline, Ultratech financial info

Capitaline, UltraTech financial info. (n. m. ). Recovered March 12, 2012, by www.capitaline.com: http://www.capitaline.com/user/framepage.asp?id=1

Crisil Study

Crisil Exploration. (2011, Sept 28). Require Dynamics. Gathered March 15, 2012, coming from www.crisilresearch.com: https://www.crisilresearch.com/CuttingEdge/industryasync.jspx?serviceId=10&State=null#storyId#11002#sectionId#425

Crisil Analysis

Crisil Study. (2011, Sept 28). Duties and Charges. Retrieved 03 9, 2012, from www.crisilresearch.com: https://www.crisilresearch.com/CuttingEdge/industryasync.jspx?serviceId=10&State=null#

Crisil Research

Crisil Research. (2012, March 1). Duties and Tariffs. Gathered March 9, 2012, coming from www.crisilresearch.com: https://www.crisilresearch.com/CuttingEdge/industryasync.jspx?serviceId=10&State=null#

Crisil Research

Crisil Research. (n. deb. ). Evolution of the cement industry. Retrieved March 12, 2012, via www.crisilresearch.com: https://www.crisilresearch.com/CuttingEdge/industryasync.jspx?serviceId=10&State=null#storyId#11011#sectionId#416

Crisil Exploration

Dhole, M. (June, 2011). Comprehensive Analyze of American indian Cement Sector. Indian Channels Research Record, Volume - I, Concern - Sixth is v.

Industry Analysis Service Repository. (2012). IAS generated report. CMIE.

The Hindu. (2008, March 4). Cement manufacturers' body, seven others recharged with cartelisation. Retrieved Mar 10, 2012, from www.thehindubusinessonline.com: http://www.thehindubusinessline.com/todays-paper/article1618026.ece?ref=archive

UltraTech Ltd

www.referenceforbusiness.com. (n. g. ). industrial sectors. Retrieved 03 3, 2012, from www.referenceforbusiness.com: http://www.referenceforbusiness.com/industries/Stone-Clay-Glass-Concrete/Cement-Hydraulic.html#b

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