Cement
Summary:
China, the world’s largest producer and consumer of cement is currently relying on imports from other countries such as Vietnam, UAE to meet their demand for cement due to the deficit they are facing. The environmental impacts of producing cement triggered new laws that do not permit production of cement beyond a certain point.
India is the second largest producer of cement producing 294.4 million tonnes in FY 21 which accounted for more than 7% of the world’s total output. The consumption is lower than the production and the surplus is used for exports.
Current capacity is 545 million tonnes (FY20), a CAGR of 5% is expected from FY20-FY25 due to the increasing demand in domestic and international markets.
The cyclical supply is owed to the seasonal demand of cement. This is due to the reduced construction work in the monsoons.
Step 1
Raw material
Step 2
Suppliers
Step 3
Inbound logistics
Step 4
Production of cement from limestone
Step 5
Distribution through warehouse network
Step 6
Sales and Marketing
Cost Drivers
Raw materials (limestone)
Transport
Fuel
Power
Freight
Revenue Drivers
Cement Sale
Growth Drivers
Government policies to ensure affordable housing,
Big infrastructure projects such as National Infrastructure Pipeline expanded under the Union Budget 2021
Key Customers
Housing and other infrastructure,
government,
industrial construction
Key Players
UltraTech Cement Limited
Ambuja Cements Limited
JK Lakshmi Cement
Ramco Cements Limited
ACC
Channels
Warehouse networks
Direct to dealers or consumers for bulk orders