Cement Industry
Cement Industry
CURRENT SCENARIO:
The Indian cement industry is the second largest producer
of quality cement, which meets global standards.
• The cement industry comprises 130 large cement plants and more than
300 mini cement plants.
• The industry's capacity at the end of the year reached 188.97 million
tons which was 166.73 million tons at the end of the year 2006-07.
Cement production during April to March 2007-08 was 168.31
million tons as compared to 155.66 million tons during the same
period for the year 2006-07.
Cement industry in India is currently going through a
consolidation phase. Some examples of consolidation in the Indian
cement industry are:
• Gujarat Ambuja taking a stake of 14 per cent in ACC, and taking
over DLF Cements and Modi Cement;
• ACC taking over IDCOL;
• India Cement taking over Raasi Cement and Sri Vishnu Cement;
• Grasim's acquisition of the cement business of L&T, Indian
Rayon's cement division, and Sri Digvijay Cements.
Foreign cement companies re also picking up stakes
in large Indian cement companies.
• Swiss cement major Holcim has picked up 14.8 per cent of the
promoters' stake in Gujarat Ambuja Cements (GACL).
Holcim's acquisition has led to the emergence of two major
groups in the Indian cement industry, the Holcim-ACC-Gujarat
Ambuja Cements combine and the Aditya Birla group through
Grasim Industries and Ultratech Cement.
• Lafarge, the French cement major has acquired the cement
plants of Raymond and Tisco.
• Italy based Italcementi has acquired a stake in the K.K. Birla
promoted Zuari Industries' cement plant in Andhra Pradesh
• German cement company Heidelberg Cement has entered into
an equal joint-venture agreement with S P Lohia Group
controlled Indo-Rama Cement.
PROCESS TECHNOLOGY:
While adding fresh capacities, the cement manufacturers
are very conscious of the technology used. In cement production, raw
materials preparation involves primary and secondary crushing of the
quarried material, drying the material (for use in the dry process) or
undertaking a further raw grinding through either wet or dry processes, and
blending the materials. Clinker production is the most energy-intensive step,
accounting for about 80% of the energy used in cement Production.
Produced by burning a mixture of materials, mainly limestone, silicon
oxides, aluminum, and iron oxides, clinker is made by one of two production
processes: wet or dry; these terms refer to the grinding processes although
other configurations and mixed forms (semi-wet, semi-dry) exist for both
types. In the dry process, the raw materials are ground, mixed, and fed into
the kiln in their dry state. In the wet process, the crushed and proportioned
materials are ground with water, mixed, and fed into the kiln in the form of
slurry.
• White Cement:
White cement is basically OPC - clinker using fuel oil (instead of coal) with
iron oxide content below 0.4 per cent to ensure whiteness. A special cooling
technique is used in its production. It is used to enhance aesthetic value in
tiles and flooring. White cement is much more expensive than grey cement.
PROCEDURE:
The main raw materials used in the cement manufacturing
process are limestone, sand, shale, clay, and iron ore. The main material,
limestone, is usually mined on site while the other minor materials may be
mined either on site or in nearby quarries. Another source of raw materials is
industrial by-products. The use of by-product materials to replace natural
raw materials is a key element in achieving sustainable development.
Raw Material Preparation
Mining of limestone requires the use of drilling and
blasting techniques. The blasting techniques use the latest technology to
insure vibration, dust, and noise emissions are kept at a minimum. Blasting
produces materials in a wide range of sizes from approximately 1.5 meters in
diameter to small particles less than a few millimeters in diameter. Material
is loaded at the blasting face into trucks for transportation to the crushing
plant. Through a series of crushers and screens, the limestone is reduced to a
size less than 100 mm and stored until required.Depending on size, the
minor materials (sand, shale, clay, and iron ore) may or may not be crushed
before being stored in separate areas until required.
Raw Grinding
In the wet process, each raw material is proportioned to
meet a desired chemical composition and fed to a rotating ball mill with
water. The raw materials are ground to a size where the majority of the
materials are less than 75 microns. Materials exiting the mill are called
"slurry" and have flowability characteristics. This slurry is pumped to
blending tanks and homogenized to insure the chemical composition of the
slurry is correct. Following the homogenization process, the slurry is stored
in tanks until required.
In the dry process, each raw material is proportioned to
meet a desired chemical composition and fed to either a rotating ball mill or
vertical roller mill. The raw materials are dried with waste process gases and
ground to a size where the majority of the materials are less than 75 microns.
The dry materials exiting either type of mill are called "kiln feed". The kiln
feed is pneumatically blended to insure the chemical composition of the kiln
feed is well homogenized and then stored in silos until required.
Pyroprocessing
Whether the process is wet or dry, the same chemical
reactions take place. Basic chemical reactions are: evaporating all moisture,
calcining the limestone to produce free calcium oxide, and reacting the
calcium oxide with the minor materials (sand, shale, clay, and iron). This
results in a final black, nodular product known as "clinker" which has the
desired hydraulic properties.In the wet process, the slurry is fed to a rotary
kiln, which can be from 3.0 m to 5.0 m in diameter and from 120.0 m to
165.0 m in length. The rotary kiln is made of steel and lined with special
refractory materials to protect it from the high process temperatures. Process
temperatures can reach as high as 1450oC during the clinker making
process.
In the dry process, kiln feed is fed to a preheater tower,
which can be as high as 150.0 meters. Material from the preheater tower is
discharged to a rotary kiln with can have the same diameter as a wet process
kiln but the length is much shorter at approximately 45.0 m. The preheater
tower and rotary kiln are made of steel and lined with special refractory
materials to protect it from the high process temperatures. Regardless of the
process, the rotary kiln is fired with an intense flame, produced by burning
coal, coke, oil, gas or waste fuels. Preheater towers can be equipped with
firing as well. The rotary kiln discharges the red-hot clinker under the
intense flame into a clinker cooler. The clinker cooler recovers heat from the
clinker and returns the heat to the pyroprocessing system thus reducing fuel
consumption and improving energy efficiency. Clinker leaving the clinker
cooler is at a temperature conducive to being handled on standard
conveying equipment.
There are fears of a slowdown in the demand from the housing sector due to
a drop in real estate prices in the country. The worry is that builders may
postpone construction of new buildings if the property prices were to
correct.
Capacity Utilization:
Since the industry operates on fixed cost, higher the
capacity sold, the wider the cost distributed on the same base. But one
should also keep in mind, that there have been instances wherein despite a
healthy capacity utilization, margins have fallen due to lower realizations.
Power:
The cement industry is energy intensive in nature and thus
power costs form the most critical cost component in cement manufacturing
(about 30% to total expenses). Most of the companies resort to captive
power plants in order to reduce power costs, as this source is cheaper and
results in uninterrupted supply of power. Therefore, higher the captive
power consumption of the company, the better it is for the company.
Freight:
Since cement is a bulk commodity, transporting is a costly
affair (over 15%). Companies, which have plants located closer to the
markets as well as to the source of raw materials have an advantage over
their peers, as this leads to lower freight costs. Also, plants located in coastal
belts find it much cheaper to transport cement by the sea route in order to
cater to the coastal markets such as Mumbai and the states of Gujarat and
Tamil Nadu.On account of sufficient reserves of raw materials such as
limestone and gypsum, the raw material costs are generally lower than
freight and power costs in the cement industry. Excise duties imposed by the
government and labor wages are among the other important cost components
involved in the manufacturing of cement.
Operating margins:
The company should have a consistent record of
outperforming its peers on the operational performance front i.e. it should
have higher operating margins than its competitors in the industry. Factors
such as captive power plants, effective capacity utilization results in higher
operating margins and therefore these factors should be looked into. Since
cement is a regional play on account of its high freight costs, the company
should not have all its plants concentrated in one region. It should have a
geographical spread so that adverse market conditions in one region can be
mitigated by high growth in the other region.
Associated Cement Companies Ltd (ACCL):
Grasim-UltraTech Cemco
Grasim's product profile includes viscose staple fibre
(VSF), grey cement, white cement sponge iron, chemicals and textiles. With
the acquisition of UltraT ech, L&T's cement division in early 2004,
Grasim has now become the world's seventh largest cement
producer with a combined capacity of 31 million tonnes. Grasim (with
UltraT ech) held a market share of around 21 per cent in2003-04. It has
plants in Madhya Pradesh, Chhattisgarh, Punjab, Rajasthan, T amil Nadu
and Gujarat among others. The company plans to invest over US$ 9 million
in the next two years to augment capacity of its cement and fibre business.
It’s also plans to focus on its international ventures, ramping up the capacity
of Alexandra Carbon Black in Egypt to 1,70,000 tonne per annum from 1,
20,000 tpa) and raising the capacity of the carbon black plant in China from
12,000 tpa to 60,000 tpa.
India Cements
India Cements is the largest cement producer in southern
India with a total capacity of 8.81 million tonnes and plants in Andhra
Pradesh and T amil Nadu. The company has a market share of 5.4 per cent
with a total cement production of 6.36 million tonnes in 2003-04. Its product
portfolio includes ordinary Portland cement and blended cement.The
company has limited its business activity to cement, though it has a marginal
exposure to the shipping business. The company plans to reduce its
manpower significantly and exit non-core businesses to turnaround its
fortune. It also expects the export market to open up, with the Gulf emerging
as a major importer.
Lafarge India
Lafarge India Pvt Ltd, a subsidiary of the Lafarge Group, has a
total cement capacity of 5 million tonnes and a clinker capacity of
3 million tonnes in the country. Lafarge commenced operations in
1999 and currently has a market share of 3.4 per cent. It exports
clinker and cement to Bangladesh and Nepal. It produces Portland
slag cement, ordinary Portland cement and Portland pozzolana
cement. The Indian cement plants are located in Chhattisgarh and
Rajasthan. Lafarge Cement has become the largest cement selling
firm in the Indian markets of West Bengal, Bihar, Jharkhand and
Chhattisgarh.
Italcementi Group:
The Italecementi group is one of the largest producers and
distributors of cement with 60 cement plants, 547 concrete
batching units and 155 quarries spread across 19 countries in
Europe, Asia, Africa and North America. Italcementi is present in
the Indian markets through a 50:50 joint venture company with
Zuari Cements. All initiatives in southern India are routed through
the joint venture company, while Italcementi is free to buy deals in
its individual capacity in northern India. The joint venture
company has a capacity of 3.4 million tonnes and a market share of
2.1 per cent.
LIST OF CEMENT PROJECTS IN INDIA
Zarin Darashaw
(22)66306511
[email protected]
Bhushan Steel Ltd.
F-Block, 1st Floor, International Trade
Tower, Nehru Place, New Delhi,Delhi -
110019
Delhi, India
Tel : ( 011)-42297777/ 42295555
5 mln tpa
Fax : 26478750 / 26415845
Email :
[email protected]
Contact :
Mr. Rajesh Sinha (PA To VP-Commercial)
Direct No : 011 - 42295555 Damoh Madhya Prades
Website :
www.holtecnet.com
Kesoram Industries Ltd.
Registered: 9/1, R.N.
Mukherjee Road,
Kolkata - 700001
Tel : ( 033)-22429454/
8441/22101575
Fax : 22109455
Email :
[email protected]
Contact : Mr. Yashwant
Mishra
Direct No : 033 - 22435453
Website :
www.kesocorp.com
Consultant Company
Name :
Bhagwati Designs Pvt. Ltd
Corporate: Swastik
Chambrus, 7TH Floor
Sedam-Gulbarga-
Off Sion-Trombus Road, 4.09 mln tpa
Karnataka
Chambur,Mumbai - 400
071
Tel : ( 022)-2522 82 33
Fax : 2522 82 65
Email :
[email protected]
Contractor (Unspecified)
Company Name : Petron
Civil Engineering Ltd.
Registered: 6th Floor,
Swastik Chambers,
Sion-Trombay Road,P.B.
No. 7206,
Chembur,Mumbai
Suburban - 400071
Maharashtra, India
Tel : ( 022)-67973501 to 06
Fax : 55973509/ 3510
Email : [email protected]
Kutch Cement Pvt. Ltd.
Head Quarter: K K P
Colony, Bhulabhai,
Ahmedabad - 380022
Tel : ( 079)-
22166885/22158065
Contact : Mr. Jigar
3 mln tpa Lakhpat-Kachchh
(Director)
Direct No : 09879616443
Branch: 3/9 SP, Timber
Market,
Behind Gita Mandir,
Ahmedabad - 380022
Tel : ( 079)-25351201
The Indian cement industry sustained its growth rate even in the tough
conditions of economic slowdown. Cement production is expected to
increase above 9% year-on-year during 2010-11 against the previous fiscal
year. Almost every cement major expanded their installed capacity in the
backdrop of the government backed construction projects as these projects
have created strong demand for cement in the country. Moreover, it is
anticipated that the industry players will continue to increase their annual
cement output in coming years and the country’s cement production will
grow at a CAGR of around 12% during 2011-12 - 2013-14 to reach 303
Million Metric Tons.