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A Project Report On: Comparative Financial Analysis Of [pic] SHREE CEMENT LTD. (BANGUR NAGAR, BEAWAR, DISTT. AJMER) UNDER GUIDANCE OFMr. N. C. JAIN                          (AVP- Finance) Submitted by: Saurabh Tandon Ankit Jain (MBA IInd Year) CERTIFICATE OF APPROVAL

The following Summer Project Report titled “COMPARETIVE FINANCIAL ANALYSIS ” is here by approved as a certified study in management carried out and presented in a manner satisfactory to warrant its acceptance as a prerequisite for the award of Master of Business Administration for which it has been submitted. It is understood that by this approval the undersigned do not necessarily endorse or approve any statement made, opinion expressed or conclusion drawn therein but approve the Project Report only for the purpose it is submitted. ACKNOWLEDGEMENT A large number of individual has contributed to this project. e am thankful to all of them for their help and encouragement. Like other reports, this report is also drawn from the work of large number of researchers and author in the field of finance. We would like to express my gratitude to Mr. N. C. Jain, A. V. P. (finance) for giving me the opportunity and enough of support to undergo training in their organization, SHREE CEMENT LTD, BEAWER (RAJ)               We shall like to thanks SHREE’S finance department for their able guidance, support, supervision and care during the whole training programmed and to whom words can never express my feeling of gratitude and reverence.

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We would like to give my sincere thanks to officers, managers and employees of SHREE CEMENT LTD, BEAWER (RAJ) for providing valuable information, reports and data that were require for the study. The successful completion of my project has been carried out under the able guidance of Mr. N. C Jain, A. V. P. (finance). We take upon this opportunity to thank them for encouragement and guidance in completion of project. Their knowledge and expertise was of great help for the project study. Last but not least, We would like to express my deep sense of gratitude to our parents and friends for their unflinching moral support.

Their towering presence instilled in me the carving to the work harder and completes this daunting task timely with a sufficient degree of in depth study. We have tried to give credit to all sources form where We have drawn material in this project; still We fell obliged if they are brought to our notice. Ankit Jain Saurabh Tandon                                                         MBA (2nd Year) INDEX | | | |S. No |Title |Page No. | | | | | |1. |Preface | | | | | | |2. Focus Of Project (Objectivity) | | | | | | |3. |Cement Industry | | | | | | |4. Major Cement Players | | | | | | |5. |Cement Manufacturing Process | | | | | | |6. Introduction of Shri cement | | | | | | |7. |Financial Analysis of Shri Cement | | | | | | |8. Comparative Financial Analysis | | | | | | |9. |Conclusion | | | | | | |10. |Bibliography | | Preface We had undergone partial training to familiarize the Financials of the Shri Cement Ltd.

During the course of familiarization we learn about its financial operations as well as comparative financial analysis. Shri Cement Ltd is consistent on growth path and stand like a wall even in time of slow down. It is among the largest manufacturer of cement in the country with best quality material. Shri is continuing its capacity expansion both in cement and power plants with further investment, company as well looking at acquiring limestone mines with in India as well as abroad. In the last part of report the author has also given some suggestion about the corporation. FOCUS OF THE PROJECT

The project is structured for the purpose of getting good insight of financials of company and its comparative analysis with other companies. The Projects Focus On financial growth of the company and its financial comparison with other players of the industry. It also discusses the industry analysis and its future predictions The project is being made as a part of summer training and gives good insight of the topic covered under it. OBJECTIVE OF THE STUDY •      To get a good insight of the cement industry •      To understand the financials of the company and its implication in business structure       To know about the financials of various players of the industry and their comparison •      To find out where the company stands in between the other players Cement Industry India is the world’s second largest producer of cement after China, with cement companies adding nearly 11 million tonnes (MT) capacity during April-September 2009, taking the total installed capacity to around 231 MT by September 2009. With the boost given by the government to various infrastructure projects, road networks and housing facilities, growth in the cement consumption is anticipated in the coming years.

According to Jyotiraditya Scindia, Minister of State, Ministry of Commerce and Industry, cement production could rise to 236. 16 MT in FY11 and touch 262. 61 MT in FY12. With almost total capacity utilisation levels in the industry, cement despatches have maintained a 10 per cent growth rate. Total despatches grew to 170 MT during 2007–08 as against 155 MT in 2006–07. Moreover, cement despatches were 12. 22 MT in October 2009, showing a growth of 9 per cent as compared to 11. 21 MT in October 2008. During October 2009, cement production was 12. 37 MT, registering a growth of 6. 54 per cent as compared to 11. 1 MT in October 2008. Between April to October 2009, cement production totaled 89. 59 MT while cement dispatches totaled 88. 72 MT. With bulk of capacity expansion plans in pipeline, we believe cement industry would witness glut scenario from the second half FY10. Capacity is projected to increase by CAGR of 19% during FY09-11, which remains far ahead the demand growth. Industry is estimated to add 82. 6MT fresh capacity over coming two years. Southern and Northern regions would factor highest capacity addition With 45% and 20% share during FY10-11, this would lead towards surplus scenario.

As major capacity expansions during FY09 has taken place by end of the year and low utilization of new capacities, one believe, full impact of capacity expansion has to be reflected over FY10, which would make oversupply inevitable despite delays in new projects. As supply outpacing demand, maintaining price discipline would become Difficult in all the regions and Southern region is expected to hit poorly owing to regional fragmentation. it is expect cement prices to decline up to 8% across the regions by FY11. Aggressive capacity addition would drag down capacity utilizations from 91. 7% in FY09 to 79. 5%by FY11.

Subdued demand in conjunction with declining realizations would dent margins for cement players in coming years. In order to maintain FY09 utilization levels cement demand is required to grow more than 15% during FY09-11, which seems unattainable considering current bleak outlook. Indian cement industry faced the muted performance over first nine month of FY09 due to spiraling cost front and fixed cement prices owing to subdued demand. One can expect, industry would witness surplus capacity from mid FY10, capacity addition is likely to slow during FY11, but surplus capacities already commissioned would hurt the cement players.

Over the past 12-18 months, government’s moves through export bans, import liberalizations and check on cement prices to control inflation had pinched the industry players hardly at the timings of unexpected high cost front and slackening demand, which resulted in declining profitability for cement players in last few quarters. Cement players had passed on recent government stimulus of excise cut, whereas re-imposition of import duties and excise cut on bulk sales would affect only a small part of cement consumption in India.

It can be believed that, regulators incentives after earlier ill treatment remain a bit for cheer to cement players. We anticipate oversupply and pricing pressure would have an effect on the valuations in coming years, as utilization levels coming down. Industry is expected to face next downturn over coming 12-18 month Despite structural downturn, one can look some value buys emerging out of the cement sectors with timely expansions of capacities, efficient operating performance and strong balance sheets As near to 60% of market share is catered by top 5 cement players, Industry is well consolidated currently than earlier down cycle.

However, continuous government intervention, spiraling cost front and market Difficulties have corrected cement stocks significantly by more than 55% over the last 12-18 months. Cement stocks had persistently under performed the benchmark indices. Despite the above silver lining, cement players are likely to face a trough almost comparable with earlier down turn as going period, expectation of sharp correction in cement prices on account of supply overhang, subdued demand and compressing margins. This would keep valuations under pressure uring FY10 and FY11. It can happen that robust financial parameters compared to last time would support companies in the tough timings CEMENT Cements are of two basic types- gray cement and white cement. Grey cement is used only for construction purposes while white cement can be put to a variety of uses. It is used for mosaic and terrazzo flooring and certain cements paints. It is used as a primer for paints besides has a variety of architectural uses. The cost of white cement is approximately three times that of gray cement.

White cement is more expensive because its production cost is more and excise duty on white cement is also higher. Shree cement does not manufacture white cement at present. Ordinary Portland cement Portland Pozzolona Cement (PPC) Pozzolona used in the manufacture of Portland cement is burnt clay of fly ash generated at thermal power plants. PPC is hydraulic cement. PPC differs from OPC on a number of counts. Pozzolona during manufacturing consumes lot of hydration heat and forms ‘cementious gel’. Reduced heat of hydration leads to lesser shrinkage cracks.

An additional gel formation leads to lesser pores in concrete or mortar. It also minimizes problem of leaching and efflorescence. The Cement Industry Structure Presently the total installed capacity of Indian Cement Industry is more than 207. 26 mn tones per annum, with a production around 177. 17mn tones . The whole cement industry can be divided into Major cement plants and Mini cement plants. Major Cement Plants: •         Plants : 143 •         Typical installed capacity •         Per plant : Above 1. 5 mntpa •         Total installed capacity : 207. 26mntpa •         Production2008: 177. 17 mntpa          All India reach through multiple plants •         Export to Bangladesh, Nepal, Sri Lanka, UAE and  Mauritius •         Strong marketing network, tie-ups with customers, contractors •         Wide spread distribution network . •         Sales primarily through the dealer channel Mini Cement Plants: •         Nearly 365 plants  in Gujarat, Rajasthan, MP mainly •         Typical capacity ; 200 tpd •         Installed capacity around 11. 10 mn. Tones •         Production 2008: 6. 0 mn tones  •         Mini plants were meant to tap scattered limestone reserves.

However most set up are in AP •         Most use vertical kiln technology •         Production cost / tonne – Rs. 1,000 to 1,400  •         Presence of these plants limited to the state •         Infrastructural facilities not the best Regional Demand Supply Analysis [pic] Northern Region Northern region is among one of the consolidated markets, where top 5 players catered more than 85% of market share during FY08. Cement manufacturers have announced aggressive capacity expansion plans for Northern region on the back of booming real estate market during FY08.

After add up of 12MT during FY09, region is expected to be flooded with new capacities of 10. 6 MT in FY10 and 4. 8MT in FY11, taking its total capacity at 63. 6MT by the end of FY11. Capacity addition is expected to grow at CAGR 15. 5% during FY09-11. First half of FY09 witnessed bleak cement demand in the region on account of slump in real estate activities. Reinstatement of CVD on imports and pre-election infrastructure spending had boosted cement demand during 4QFY09, which is expected to fizzle out in the absence of strong demand drivers.

Slow down in major infra projects and with only driver Commonwealth games in CY10, cement demand is expected to post a muffled CAGR of 7. 6% during FY09-11. Delay in capacity addition during FY09 and most of the capacities ramped up by the end of Mar’09 maintained demand supply equation favorable in FY09. However, scenario is expected to get worst in FY10 and FY11 with the surplus effective capacity (after adjustment of idle capacity) of 14MT and 15. 3MT respectively. We anticipate, region’s capacity utilization to decline from 108% in FY08 to 79. 9% and 76. % in FY10 and FY11 respectively, leading to pricing pressure, despite fairly consolidated segment. Ramp up of new capacities in Central region by FY10 would leave little scope for offloading surpluses from North. Eastern Region Eastern region is expected to cater only a small part of overall cement capacity planned by Industry players during FY09-11. Out of that major expansion is planned to be come over FY10 -11. Region’s capacity expansion is anticipated to grow at CAGR of 15% during FY09-11, taking total capacity at 38. 5MT by end of FY11. Region has witnessed slight surplus scenario during FY08 owing to lack of demand.

Recent Singur and Nandigram issues had disturbed corporate investments during FY09; however, spike in individual housing on account of cooling construction costs has boosted demand in last few months of FY09. As major capacity addition was during the end of FY09, capacity utilization for the year remained firm. Regional demand is expected to grow at buoyed CAGR of 8. 8% during FY09-11. However, with continuous offloading from other regions and new capacities in FY10 would add to surplus capacity by 2. 8MT and 5. 6MT during FY10 and FY11 respectively.

We estimate region’s capacity utilization to decline from 96. 4% in FY08 to 91. 3% in FY10 and 84. 3% in FY11. Southern Region Southern region remains comparatively less consolidated, as major players catered near to 60-65% market share during FY08. Region is well known for its strong demand over last few years, on account of growing IT/ITES sector and heavy investment in housing projects. Aggressive capacity expansion plans of cement majors and from various small players will jointly add up highest capacity 48. 4MT in Southern region during FY09-11, taking its total capacity at 104. 6MT by end of FY11.

Capacity addition is expected to grow at CAGR 25% during FY09-11. Slowing IT/ITES sectors and hold back of several projects are expected to affect cement demand adversely in coming two years. As most of capacity expansions, planned in FY09, were not available fully during the year, major impact would be accessible from FY10. This has maintained utilization levels for FY09. Cement demand is expected to grow at CAGR of 7. 7% during FY09-11. Robust capacity expansion plans will deteriorate the demand supply equation in FY10 and FY11 with surplus cement capacity of 27. 7MT and 34. 6MT respectively.

Regional offloading would be under pressure with upcoming new capacities in other regions mostly by FY10. We believe capacity utilization to decline from 101. 6% in FY08 to 77. 8% in FY10 and 73% in FY11. Near to 50% of upcoming regional capacities, which are planned by small players, is expected to dent cement prices, through increasing fragmentation among industry players. Western Region Western region, which caters more than 80% of India’s cement exports, remains pretentious with regional as well as global headwinds. Regulator’s move on exports critically affects its utilization levels.

Capacity expansion in region is expected to post CAGR of 18. 5% during FY09-11, taking total capacity at 44. 3MT by end of FY11. With low capacity expansions, demand supply equation remained suitable for cement players during FY08. Most of the capacities addition by the end of FY09,contributing mainly in FY10, will balance out equation during the year. Regional demand is expected to grow at CAGR of 6. 4% during FY09-11. New capacities mainly from FY10 will balanced the scenario with a slight capacity surplus of 4. 8MT, whereas region would face surplus of 9. 9MT in FY11.

We expect capacity utilization to decline from 100. 7% in FY08 to 91. 1% in FY10 and 87. 5% in FY11. Slowdown in exports and excess offloading from other regions might turnscenario towards high surpluses Central Region Central region’s subdued cement consumption pattern, over the last few years,had led cement majors to go slow with regional expansions. Central region is anticipated to add new capacity at CAGR of 14. 6% during FY09-11, taking its total capacity at 37MT by the end of FY11. Demand supply for the FY08, favorably balanced out with slight surplus.

Region had witnessed surprised up tick in demand for last few months of FY09 on account of individual housing demand from rural and mid town areas. Equation for the FY09 has been fairly balanced out. Demand for the region is expected to post a CAGR of 6. 2% during FY09-11. Upcoming capacities would create add to surplus scenario with 4. 3MT in FY10 and 7. 1MT by FY11. We believe capacity utilization to decline from 99. 6% in FY08 to 91% in FY10 and 88% in FY11 All India Demand Supply Indian cement industry is set to increase capacity at a CAGR of 19. 2% over FY09-11, recording the total capacity of 287. MT by the end of FY11. Demand growth, which is expected to grow at a slower pace CAGR of 7. 3% during the same period on account of tumbling economic performance. Demand supply equation during FY09 remained near to equilibrium. However, belligerent expansion plans would lead to surplus capacity of 53. 7MT in FY10 and 72. 5MT in FY11, mainly contributed from Southern and Northern regions. Surplus scenario will put downward pressure on realizations and margins of cement players Inter Regional Offloading There has been a fair amount of cement movement across the five regions of Indian markets over the time.

With the supply glut in coming period and demand worries surrounding, inter regional movement will be at peak. Northern region offloads its production in Central as well as Western regions due to comparable deficit scenario in these regions. As prices remains lucrative in Western markets, it had increased its share in Western during FY09. Southern region disburses its produces mainly in Western, owing to its proximity with Western region. Central region transfers its produce in Northern and Eastern regions; however, with supply pressure in North it had increased its share in Eastern region during FY09.

Eastern and Western regions, which remained in slight deficit mode, will be able to cater inter regional transfers from other regions by FY09 and for part of FY10. However, we believe that with the supply overhang in Northern, Southern and Central regions and start up of new capacities in Western and Eastern regions by FY10; Situation is expected to gyrate in East and West, leaving no scope for further offloading from other regions. Such a scenario will lead to low capacity utilization as well as price decline in all the regions.

Cement players are expected to struggle with increasing freight costs to offload surpluses and declining realizations in coming period Major players of cement industry in india ULTRA TECH Company Brief :UltraTech is a subsidiary of Grasim Industries Ltd, the flagship company of the Aditya Birla Group. UltraTech Cemco was formed to carry on the cement business,which was earlier carried on by Larsen and Toubro. The cement division of L was demerged in FY04 after Grasim took control over the new company. Company’s name was changed to Ultra Tech Cement Ltd from Dec’04.

ULTC expanded its business by acquiring Narmada Cement Company Limited (NCCL) in May’06. ULTC is among the India’s largest cement producers and major exporters. Company had planned to increase its cement capacity from 18. 2MT FY08 to 23. 1MT by end of 1QFY10 through Brownfield expansions. Company’s production facilities are spread across five integrated plants, five grinding units, and three terminals —two in India and one in Sri Lanka. Marketing Presence: ULTC caters near to 9. 5 % market share of Indian Cement Industry and having its nation-wide presence with the market spread across the country mainly in West, South and East.

Western region accounts for 45% of total dispatches, Southern 35%, Eastern 15%, whereas balance is between Central and Northern regions. It is also a major exporter of cement and clinker from Gujarat port (India) with around 14% of its cement volumes exported in FY2008 and accounts more than 25% of India’s cement exports. The export market comprises of countries around the Indian Ocean, Africa, Europe and the Middle East. ULTC has minute presence in Northern region and less susceptible to Northern headwinds.

Capex: ULTC had planned cumulative capex of Rs 44760 mn for expansion at Tadpatri(APCW), grinding unit at Giningera (Karnataka), captive power plants 92 MW at Gujarat, 32MW at Awarpur (Maharashtra), 50 MW each at Hirmi (Chhattisgarh) and APCW respectively. ULTC had spent Rs 17930 mn by the end of FY08 and balance amount to be disbursed during FY09-11. Ginigera grinding unit and two new mills at APCW has been started during FY09 with 192 MW captive power plants. Tadpatri expansion would be full commissioned by end of 1QFY10 and benefits of the same are expected from FY10.

On commissioning of the expansions company’s total cement capacity would be 23. 1MT and Captive power available 270MW catering almost 80% power requirement post expansion SHREE CEMENT LTD. Company Brief: Shree Cement Ltd. , one of the largest cement producers in Rajasthan, was incorporated in the year 1979. SCL started up in 1985 with 0. 6MT cement capacity. SCL’s current capacity stood at 9. 1MT, which is planned to expand 1Mtduring FY10, taking total capacity 10. 1 MT by end of March’10. Superior cost management had placed SCL among lowest cost producer in the Indian cement industry.

Marketing Presence SCL considerably strengthened its marketing presence over the last three years. Rajasthan, India’s largest cement producing state remains the company’s principal market. The company’s northern-most positioning makes it the closest with its primary dealers (Rajasthan) and secondary dealers (Delhi, Punjab, JK, Haryana, Western U. P. and Uttaranchal), a significant cost edge. The company enjoys a market share of about ~17 per cent in north India. SCL had started its efforts to pave in tertiary markets like Gujarat, M. P. and Central U. P. to overcome the upcoming surplus scenario.

Plant Locations Shree has the largest single location plant in northern India. SCL’s Unit I & II are located at Beawar, 185 Km from Jaipur off the Delhi-Ahmedabad highway. Amongst the plants in the state it is nearest from its marketing centers. Cement Unit (III, IV, V & VI) is located at RAS, 28 Km from Beawar in Pali Dist. SCL’s Grinding Unit (KKGU) is located at Khush Khera Dist. Alwar nearest to Delhi. Upcoming Capex Company had planned capex of Rs 4,000 & 8,000 mn over FY09 and FY10 respectively. Out of current year’s capex Rs 3,500 mn had been expended on various ongoing projects.

Cement grinding units of 1. 5 MT each at Suratgarh and Rurkee are expected to commission during FY10, while seventh clinkerization unit at Ras has been started by the end of FY09. New captive power plants of 85 MW (35 MW waste heat and 50 MW thermal) will be commissioned till Mar’10 with the expected expenditure of Rs 4,000 mn, whereas one 50 MW plant is expected during FY11. ACC Company Brief: Company was established in 1936 as a result of a historic merger of ten existing cement companies and named as ‘Associated Cement Companies’. Tata group one of the major stakeholder from its formation sold its 14. % stake in ACC to subsidiaries of Gujrat Ambuja Cements. ACC like Ambuja Cements is also owned by the Holcim group, which is the world’s leader in cement, large supplier of concrete, aggregates and construction-related services. Holcim is now the singlelargest shareholder, with a 46. 2% stake through its 100% subsidiary, Ambuja Cements India Pvt. Ltd. ACC is India’s largest and integrated cement manufacturer, which holds significant market share in fragmented cement Industry with captive power, strategic locations and large limestone reserves. Company’s cement capacity stands at 22. 63MT by CY08, which is planned to touch ~30. 7 by the end of CY10. ACC’s captive power by end of CY08 at 241MW catering almost 70% of its power requirement will add additional 110MW by CY10, increasing its self-sufficiency near to 75%. Market Presence:ACC has its nationwide presence with capacities in all five regions. Company commands near to 11% of India’s cement capacity as well as 12% of market share through dispatches during CY08. It has a wide distribution network with around 250 warehouses and 9000 dealers. Company’s plants are located at 13 locations across 11states mainly concentrating in the Northern and Eastern parts of the country.

Company’s existing capacity comprises of 26% North, 28% South, 22% East, 4% West and 20%Central regions. Capex Company had planned cumulative capex of 36,000 mn for its expansions over three years CY08-10. Capacity expansion at 1. 35 MT Bargarh (Orissa) with 35 MW captive power plant is slated to be completed by mid CY09. Expansion at New Wadi 3 MT along with 50 MW captive capacities would be commissioned in phases between August 2009 and March 2010. New clinker line with a capacity of 7,000 TPD and 25 MW captive power plants at Chanda (Maharashtra) is expected to be completed by mid-2010. Ambuja Cement Ltd

Company Brief Ambuja Cement Ltd. , is one of the largest cement players and exporters in Indian cement Industry, promoted by Seksaria and Neotia families. Company was set up in 1986. Company remained well established in Northern and Western regions, whereas with amalgamation with Ambuja Cement Eastern in CY06, it forayed to Eastern market. Company with ACC remains the part of Holcim Group, which holds highest 46% stake in company, one of the world leader in cement, concrete supplies, aggregates and construction related services. Company is well known for its cost efficiencies among cement peers.

Company had planned to set up ~90MW by end of CY09, taking its total captive power capacity more than 400MW, leveraging on energy cost. Upcoming new ships and bulk terminals would add to company’s efficiencies in CY09-10. Company had planned 5. 5MT cement capacity by the end of CY10, posting its total cement capacity at 25MT in coming two years. Marketing Presence Company has a national wide presence with its operation spread over various locations in Northern, Western, Eastern and Central regions. Company commands a strong distribution network of dealers and retailers in India.

Northern and Western region combined cater to more than 70% of companies volume, whereas the balance region shared by Eastern and Central regions. Company had planned to diversify in Southern markets with commissioning of its bulk terminal at Kochi (Kerala) by 2QCY09. Strategic locations of company’s grinding units, near to key markets, makes it powerful among the peers. Company’s sea fleet allows it to transport cement from Ambuja Nagar to Panvel and Surat. ACL is among one of the major cement exporter owing its plant in proximity to Gujarat port India Cements

Company Brief India Cements is one of the major cement players in Southern region. Company was established in 1946 with its first plant commissioning at Shankarnagar, Tamil Nadu during the same year. With the acquisition of Coromandel Cement’s plant company turned into the largest cement player with 2. 6 MT capacities in south during 1990. It commands almost 16% of South market in terms of capacity. It had planned to enhance its capacity from 9. 6MT to 14 MT by the end of FY09 and further foray towards Northern region by installing 1. 5MT capacity in Rajasthan and 2. MT in HP, taking its total capacity to 18 MT. Company had well known brands like Sankar Super Power, Coromandel Super Power and Raasi Super Power. Market Presence and Plants India Cement’s market its majority produce in South. It caters key markets of Andhra Pradesh, Tamil Nadu, Kerala, Karnataka and Maharashtra. Company has eight plants situated at Tamil Nadu and Andhra Pradesh. Company had planned to reduce the risk of its geographical concentration by diversifying to Northern markets. It has placed order for Rajasthan cement plant and HP plant is also on the discussion.

Capex India Cement allocated Rs2500 mn, Rs4000 mn and Rs2000 mn capex to be spending over FY09, FY10 and FY11 respectively. Company’s capex is routed through FCCB’s issued earlier in May’06 and internal accruals mainly. Company has started 1 MT Chennai grinding unit during 2QFY09 and expected to start production from its line I capacity expansion at Vishnupuram (Andhra Pradesh), 1. 2 MT clinker capacity additions in Malkapur (Andhra Pradesh) with additional grinding unit at Parli (Maharashtra) by the end of 1QFY10. These expansions are planned through debottlenecking and Brownfield expansions.

Company has also initiated work over its 1. 5 MT Greenfield expansion in Northern region (Rajasthan), which is expected to commission till Mar’10, taking total capacity to 15. 5MT. 2. 5 MT HP plant has been deferred for the time being. Madras Cement Madras Cements Ltd is the flag ship company of Ramco Group, a well known business group of South India. It is based at Chennai. The main product of the company is Portland Cement manufactured through the five advanced production facilities spread over South India. The cement capacity is 10 million tons per annum.

The company is the fifth largest cement producer in the country. Ramco Supergrade is the most popular cement brand in South India. The company also produce Ready Mix Concrete and Dry Mortar products. In addition, the company also operates one of the largest wind farms in the country . Binani Cement Binani is now consolidating on its enviable track record. With over one and a quarter century of success, today, Binani Industries Limited ranks within the first 20, amongst the top 200 large public limited companies in terms of Capital Output Ratio, BIL has an employee strength of around 2000 people.

It was in the turbulent times of 1872, when the ancestors of Binani, Seth Pragdas & Seth Mathuradas Binani ventured into the trading of non-ferrous metals. Later on, the son of Seth Mathuradas, Seth Govardhandas, a man with profound vision, saw great potential in manufacturing rather than just trading in non-ferrous metals. Binani Metal Works Limited in collaboration with Multicore Solders, UK came into being in 1941. The plant was set up in Howrah, West Bengal to produce non-ferrous alloys, cad, castings, powders & solder wires. Trading operations, the forte of Binani, was also getting stronger.

An Antimony Smelter joint venture in Bombay, was set up under the name of Binani Metal Works Limited. It was in the early 50’s, that the Binani’s ventured in to the international market by establishing Metal Distributors UK Limited in London, as a trading and indenting house for non-ferrous metals. JK Lakshmi Cement The place-a remote area in the zero-industry district of sirohi in Rajasthan The story of JK Lakshmi Cement Limited thus began. And as it has completed more than 25 years of its glorious existence, the company is renowned for its strength, quality and performance.

One of the established names in the cement industry, JK Lakshmi Cement Ltd has state-of-the-art plant at Jaykaypuram, dist. Sirohi, Rajasthan. With the capacity expansion and further commissioning of a split location grinding unit at Motibhoyan, Kalol (Gujarat), the combined capacity of the Company today stands at 4. 75 Mn. MT per annum. With the use of the latest technology from M/s Blue Circle Industries and modern equipments from M/s Fuller International of USA, the Company is going from strength to strength.

It is also the first cement producer of Northern India to be awarded an ISO 9002 certificate and be accredited by NABL (Department of Science & Technology, Government of India) for its Lab Quality Management systems Mergers and Acquistions in Cement Industry ? The cement sector contributing to 7 percent to the total deal value ? Holcim strengthened its position in India by increasing its holding in Ambuja Cement from 22 per cent to 56 per cent. ? Leading foreign funds have together bought around 7. 5 per cent in India’s third-largest cement firm, India Cements (ICL), for US$ 124. 91 million Cimpor, the Portugese cement maker, paid US$ 68. 10 million for Grasim Industries’ 53. 63 per cent stake in Shree Digvijay Cement Cement Industry ? Entry barriers: ? Economies of scale ? Capital requirement ? Avg gestation period of 2-3 years ? Access to distribution channels ? Threat of new entrants: low ? Bargaining power of suppliers: High ? Large and few sellers ? No substitutes ? Sellers’ product important input for buyer ?Bargaining power of buyers: low/medium ? Standard product ? No substitute ? Intensity of competition: Medium ? Equally balanced competitors ? Average industry growth High fixed cost ? Lack of switching cost ? Capacity augmentation in large increments ? High exit barriers ? Substitutes: None SWOT Analysis of Industry STRENGTHS ? Second largest in the world in terms of capacity ? Low cost of production WEAKNESS ? Effect of global recession on Real Estate and Infrastructure. ? Demand-Supply gap, Overcapacity ? Increasing Cost of Production ? High Interest rates OPPORTUNITIES ? Strong growth of economy in the long run. ? Increase in infrastructure projects ? Growing middle class ? Technological Changes ? Increase in govt spending. THREATS Imports from Pakistan affecting markets in Northern India. ? Excess over capacity can hurt margins as well as prices. CHALLENGES For Industry ? Cement industry currently has one of the highest inventory levels in recent times. ? Growth rates have slowed. ? Capacity additions putting pressure on prices. ? As a result the cement companies are looking for cutting production CEMENT PLANT [pic] [pic] CEMENT MANUFACTURING PROCESS Company profile Shri cement ltd,beawer,india [pic] Corporate office [pic] Bangur Nagar,Beawer-305901 District, Ajmer, Rajasthan (India) Phone: (91) 1462-228101-06 Fax: (91) 1462-228117/228119

[email protected] com Board of Directors: B. G. Bangur(chairman) H. M. BangurR. L. Gaggar Abid Hussain O. P. Setia Shreekant Somany Y. K. Alagh A. Ghosh M. K. Singhi [pic] [pic] Actual plant at shree cement [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] Product of Shree Cement [pic] FINANCIAL RESULTS Profit before Interest & Depreciation 1043. 20 1120. 43 Less: Interest & Other Charges 112. 15 109. 86 Less: Depreciation 203. 32 127. 92 Less: Forex Fluctuation Loss/(Gain) 79. 3 (10. 13) Add: Transfer from Share Premium – 12. 68 Less: Shares/Bond issue expenses – 12. 68 Less: Extraordinary item – 48. 14 Profit before Tax 648. 30 844. 64 Fringe Benefit Tax 4. 78 9. 60 Deferred Tax 29. 89 182. 70 Provision for Taxation (net) 181. 45 14. 80 Profit after Tax 432. 18 637. 54 Add: Balance brought forward from last year 527. 32 46. 57 Less: Dividend proposed on Equity Capital (including Dividend Tax) 66. 09 65. 89 Less: Transfer to General Reserve 70. 00 90. 00 Less: Transfer to tonnage tax reserve – 0. 90 Balance carried in Profit & Loss A/c 823. 41 527. 32

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