Cement Plant - Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunities, Cost And Revenue, Plant Economics
|Cement industry forms a vital part of infrastructure development since no modern construction activity can take place without the use of cement in one form or another. The term cement is used to designate many different kinds of substances that are used as binders. Cement used in construction is characterised as hydraulic or non-hydraulic. The term cements as used henceforth will be confined to inorganic hydraulic cements, principally Portland cement. India is the second-largest producer of cement in the world after China with industry capacity of approximately 160 MT in 2006. The cement industry is regional in nature due to the concentration of limestone reserves located in a few states. This has resulted in a surplus situation in some regions and a deficit in others. Demand for cement has grown at a CAGR of 9.1% in the last two years with supply growing at a CAGR of 8.2% in the same period. With a large amount of infrastructure activities being planned in commercial, real estate and housing sector along with huge development works in roads, railways, ports and hydel projects, we expect the cement demand growth momentum to stay intact. We expect this to have a positive impact on cement prices in different regions till new capacities come up by mid-FY09. Demand for cement is correlated to the GDP growth of the country, infrastructure and industrial capex as well as exports. Strong GDP growth expected in the coming years and huge planned investments should result in healthy growth in the cement demand. The Indian economy continues to be on a much stronger growth path driven by increased amount of infrastructure spending and capex. The economy is expected to grow by 8% for the next two to three years, which will drive an increased demand growth for the cement industry. The cement demand is expected to grow at a CAGR of 10% at least for the next three years. The cement industry witnessed serious M&A activity in the past few years, as a result of which the top four players now account for almost 52 to 55% of the installed cement capacity of India, as against 40 to 42% in FY00. The M&A activity have also had global participants. The growing presence of international players bring with them better technology and operational efficiencies which could significantly alter pricing patterns. Indian cement sales rose 4.82% for FY11, its slowest pace in more than a decade, on poor demand. According to a report from the Business Standard, manufacturers have failed to match their expectation of 9 to 10 per cent growth in financial year 2010 to 2011, and are the first time since the industry entered its boom time during mid 2005 that cement makers’ high trajectory growth slipped to almost half of what experts had anticipated. The industry blames the slide on persistent poor demand for the building commodity throughout the year. After the Commonwealth Games held in Delhi last October, demand worsened, pulling down production and sales on a year on year basis in subsequent months, the report said. Cement demand is dependent on the level of construction activities. Construction activities are in turn closely related to a number of macroeconomic factors such as consumer spending, population growth, manufacturing sector growth, inflation rates, government spending etc. The construction industry is the second largest industry in India after agriculture. It accounts for about 11% of India’s GDP. It makes significant contribution to the national economy and provides employment to large number of people. Construction constitutes 40% to 50% of India's capital expenditure on projects in various sectors such as highways, roads, railways, energy, airports, irrigation etc. There are mainly three segments in the construction industry like real estate construction which includes residential and commercial construction; infrastructure building which includes roads, railways, power etc; and industrial construction that consists of oil and gas refineries, pipelines, textiles etc. Building material is any material which is used for a construction purpose. Many naturally occurring substances, such as clay, sand, wood and rocks, even twigs and leaves have been used to construct buildings. Apart from naturally occurring materials, many man made products are in use. According to a study by ASSOCHAM, the burgeoning Indian construction industry will rise in the coming years. A large and growing middle class population of more than 300 million people, a changing life style, better cost of living etc is growth drivers for this sector. 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; Grasims acquisition of the cement business of L&T; Indian Rayons cement division merging with Grasim; Grasim taking over Sri Digvijay Cements; L&T taking over Narmada Cements; ACC taking over IDCOL. There is a very good scope and market potential of cement right now. New entrepreneurs should venture into this field.|
|Plant capacity: 1800000 Nos. Cement Bags (50 Kg. each)||Plant & machinery: 1296 Lakhs|
|Working capital: -||T.C.I: Cost of Project : 1750 Lakhs|
|Return: 42.00%||Break even: 47.00%|
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