Aa
Aa
Aa
__________________________________________________________________________________________
Key Employees
Chettinad Cement Corporation
Name Job Title
Ltd
A Mohan Krishna Reddy Director
Headquarters Address Rani Seethai Hall Building, Chennai, Bhavana G Desai Director
600006, India
K. Ganapathy Director
Telephone + 91 44 28292727
L Muthukrishnan Chairman
Fax + 91 44 28291558
Website www.chettinad.com
Company Overview
Ticker Symbol, Stock Exchange N/A
Chettinad Cement Corporation Limited (CCC)
Number of Employees N/A involves in the manufacturing of cement and
clinker in India. The company offers Portland
Fiscal Year End December slag cement, sulphate resisting Portland cement,
Portland pozzolana cement, and ordinary
Revenue (in US$ million) N/A
Portland cement. It has four manufacturing
facilities: Karikkali, Ariyalur, and Puliyur in Tamil
Nadu, and in Chincholi Taluk of Gulbarga
District in Karnataka. The companys total
cement manufacturing capacity at these four
manufacturing facilities is over 11 million tonnes
SWOT Analysis per annum. CCC operates power plants having
a total capacity of 165 megawatts, which is used
for internal purpose at its cement production
Strengths Weaknesses
facilities. The company operates as a subsidiary
of Chettinad Group and is headquartered in
Production Capabilities Limited Scale of Operations Chennai, Tamilnadu, India.
Strong Clientele
Key Competitors
Government of India Initiatives Ban on Sand Mining Deccan Cements Limited (Ticker: 502137)
Increase in Demand for Cement and Grasim Industries Limited (Ticker: GRASIM)
Increase in Minimum Wages in India
Concrete
India Cements Limited (Ticker: INDIACEM)
Stringent Regulations
___________________________________________________________________________________________
__________________________________________________________________________________________
TABLE OF CONTENTS
1 Chettinad Cement Corporation Ltd - Business Analysis ............................................................................. 4
1.1 Chettinad Cement Corporation Ltd - Company Overview......................................................................................4
1.2 Chettinad Cement Corporation Ltd - Business Description ...................................................................................4
1.3 Chettinad Cement Corporation Ltd - Major Products and Services .......................................................................5
2 Chettinad Cement Corporation Ltd - Mergers & Acquisitions and Partnerships.......................................... 6
2.1 Chettinad Cement Corporation Ltd - M&A and Partnerships Strategy ..................................................................6
3 Chettinad Cement Corporation Ltd - SWOT Analysis................................................................................. 8
3.1 Chettinad Cement Corporation Ltd - SWOT Analysis - Overview .........................................................................8
3.2 Chettinad Cement Corporation Ltd - Strengths ......................................................................................................8
3.3 Chettinad Cement Corporation Ltd - Weaknesses ................................................................................................8
3.4 Chettinad Cement Corporation Ltd - Opportunities ................................................................................................8
3.5 Chettinad Cement Corporation Ltd - Threats .........................................................................................................9
4 Chettinad Cement Corporation Ltd - Company Statement ....................................................................... 10
5 Chettinad Cement Corporation Ltd - History ............................................................................................ 11
6 Chettinad Cement Corporation Ltd - Key Employees ............................................................................... 12
7 Chettinad Cement Corporation Ltd - Locations and Subsidiaries ............................................................. 13
7.1 Chettinad Cement Corporation Ltd - Head Office ................................................................................................13
7.2 Chettinad Cement Corporation Ltd - Other Locations and Subsidiaries ..............................................................13
8 Appendix ................................................................................................................................................. 15
8.1 Methodology .........................................................................................................................................................15
8.2 Disclaimer.............................................................................................................................................................15
___________________________________________________________________________________________
__________________________________________________________________________________________
LIST OF TABLES
Table 1: Chettinad Cement Corporation Ltd - Major Products and Services ..................................................... 5
Table 2: Chettinad Cement Corporation Ltd - History ..................................................................................... 11
Table 3: Chettinad Cement Corporation Ltd - Key Employees ........................................................................ 12
Table 4: Chettinad Cement Corporation Ltd - Subsidiaries ............................................................................. 13
Table 5: Chettinad Cement Corporation Ltd - Locations ................................................................................. 13
___________________________________________________________________________________________
__________________________________________________________________________________________
Chettinad Cement Corporation Limited (CCC) involves in the manufacturing of cement and clinker in India. The company
offers Portland slag cement, sulphate resisting Portland cement, Portland pozzolana cement, and ordinary Portland
cement. It has four manufacturing facilities: Karikkali, Ariyalur, and Puliyur in Tamil Nadu, and in Chincholi Taluk of
Gulbarga District in Karnataka. The companys total cement manufacturing capacity at these four manufacturing facilities
is over 11 million tonnes per annum. CCC operates power plants having a total capacity of 165 megawatts, which is used
for internal purpose at its cement production facilities. The company operates as a subsidiary of Chettinad Group and is
headquartered in Chennai, Tamilnadu, India.
Chettinad Cement Corporation Ltd (CCC) is a manufacturer of construction materials such as cement and clinker. Its
products portfolio includes gray ordinary Portland cement, sulphate resisting Portland cement, Portland pozzolana
cement, and Portland slag cement. The company's products find application in residential, commercial, industrial, and
public infrastructure construction sectors. These are also utilized for structural, building and marine and hydraulic
construction. The companys operations are mainly located in India.
The company offers a wide range of bagged products and blended cements through its Builders Choice brand. It provides
different grades of cement such as OPC 43 Grade, OPC 53 Grade and Super Grade. CCC caters to the needs of
builders, architects, engineers and contractors. The companys cement manufacturing facilities are located at: Karikkali,
Puliyur and Ariyalur in Tamil Nadu; and Chincholi Taluk of Gulbarga District in Karnataka. The Karikkali plant has a
cement production capacity of 3.4 Mtpa. While, the Puliyur plants production capacity is 1.1 Mtpa and Ariyalur plants
have a total production capacity of 4 Mtpa. The companys manufacturing unit at Chincholi Taluk of Gulbarga District in
Karnataka has a capacity to produce 2.5 Mtpa of cement. The combined cement production capacity of these four
manufacturing units totals to 11.0 Mtpa. In addition, the company received consent to establish certificate and
environmental clearance certificate to set up cement grinding units in Solapur, Maharashtra and Dachepalli, Andhra
Pradesh.
CCC also provides various technical services such as choosing proper aggregates materials for concrete mix design
which aims at saving the costs on projects. It also offers general technical information on storage of cement, preparation
and treatment of casted concrete, and handling of cement bags. The company operates captive thermal power plants to
supply the power required to operate its cement manufacturing units. The total power generation capacity of these power
plants is 165 MW. Some of the key clients of the company include SPL Infrastructure, Tata Projects, ITD Cementation,
JSW Steel & Power Ltd, Parsn Group, ETA Construction India Ltd, Sterlite Industries Ltd, Sahyatri Industries Ltd, and
Arun Excello Group.
___________________________________________________________________________________________
__________________________________________________________________________________________
CCC is a producer of construction materials. The key products, services and brand offered by the company include:
Products:
Services:
Technical Services
Power Generation
Brands:
Builders Choice
Source: World Market Intelligence
___________________________________________________________________________________________
__________________________________________________________________________________________
Following the transaction, Chettinad Cement holds 66.09% stake in Anjani Portland Cement.
Motilal Oswal Investment Advisors Pvt Ltd acted as adviser to Chettinad Cement.
___________________________________________________________________________________________
__________________________________________________________________________________________
___________________________________________________________________________________________
__________________________________________________________________________________________
CCC is a manufacturer of cement and clinker in India. The companys strong clientele, production capabilities and support
from parent company are its major strengths, even as the limited scale of operations remains an area of concern. Going
forward, increasing labor costs in India, ban on sand mining and stringent regulations may impact the companys
performance. However, the government of India initiatives and increasing demand for cement are likely to present new
growth opportunities to the company.
CCCs strong client base has built its brand equity and helped the company in establishing itself as a leading cement
manufacturer, ensuring its future business prospects. The company has succeeded in providing the clients need and
requirement effectively. Key clients of CCC include Transstroy India Ltd, NLC Thermal Power Plant Ltd, NAPC Ltd, UEM
Group, Gammon India Ltd, East Coast Construction Co. Ltd, BGR Energy Systems, Arun Excello Group, Sterlite
Industries Ltd, Parsn Group, Tata Projects, Sintex Industries Ltd, RayMix Concrete India P Ltd and ITD Cementation.
Therefore, a strong client base helps the company in attracting larger business, while improving its top-line performance.
The well-recognized market position of the companys parent, Chettinad Group, enhances the companys brand image
and helps it to secure contracts and improve its top-line performance. Chettinad Group is a business conglomerate, which
operates in diversified businesses such as cement, silica, construction, steel fabrication, transport, coal terminal,
education, trading, security, and power. Therefore, being a part of Chettinad Group, the company leverages strong
position enjoyed by its parent company and also gains from Chettinad Groups strong operational management expertise,
innovations, and corporate management.
The company has a strong production capability, which helps it meet the demand from its customers. CCC has three
manufacturing facilities in Tamilnadu: Puliyur, Karikkali, and Ariyalur. The production capacity of Puliyur plant is 1.1 Mtpa.
Whilst, the Karikkali cement manufacturing unit has a capacity of 3.4 Mtpa and Ariyalur plants have a capacity of 4 Mtpa.
In addition, the company operates a cement plant in Chincholi Taluk of Gulbarga District, Karnataka, which has a
production capacity of 2.5 Mtpa. The companys total cement manufacturing capacity is 11.0 Mtpa by combining these
four units. In addition, the company operates power plants at all these manufacturing facilities to supply power required for
operations. Furthermore, the company received approvals to set up plants in Solapur, Maharashtra, and Dachepalli,
Andhra Pradesh.
Limited scale of operations, compared with competitors, may be a concern for the company. The operations of CCC
include production and supply of cement and concrete. The company has its presence only in India, whereas its
competitors such UltraTech Cement Limited and LafargeHolcim have diversified geographical presence. UltraTech
Cement Limited has sales presence in India, Bahrain, the UAE and Bangladesh; and LafargeHolcim operates in 90
countries across the globe. Limited scale of operations, compared with its competitors, may also put competitive pressure
on the companys operations and limit its revenue sources.
CCC is likely to benefit from the increasing demand for cement in India. According to India Brand Equity Foundation
(IBEF) the demand for cement in India is expected to reach 550 to 600 million tonnes per annum (MTPA) by 2025. In
2015, the cement capacity in India stood at 366 million tonnes (Mt) and expected to reach 395 Mt in 2016 and 421 Mt by
2017. The housing construction sector accounted for 67% of total consumption of cement in the country, followed by
infrastructure sector with 13%, commercial construction with 11% and industrial construction with 9%. In addition, the
Indian government plans to strengthen cement factories to increase the road and realty projects. It also advises the
___________________________________________________________________________________________
__________________________________________________________________________________________
construction companies to consume cement instead of bitumen for the development road projects which is durable in the
long run. The government of India also partnered with Switzerland to develop new methods for efficient and quality
cement production, to meet the demand in the infrastructure sector. Since the company manufactures and distributes
cement related products, it stands to benefit from the demand for cement in India.
CCC is expected to benefit from proposed investments in the Indian construction projects. Government of India is taking
various strategic initiatives to drive its countrys growth. The construction activities accounts for over 8.0% of Indias GDP
and is expected to optimistic due to increasing demand from real estate and infrastructure projects. To promote the
construction industry in the country, in 2015, the government announced its plan to invest US$650 billion in urban
infrastructure in next 20 years. It will also invest US$32.9 billion in its Smart Cities Mission and Atal Mission for
Rejuvenation and Urban Transformation (AMRUT) program, which intends to develop 100 smart cities and 500 AMRUT
cities over the next five years. In addition, an investment of US$1.0 trillion has been projected to develop the infrastructure
sector until 2017, of which 45% investment will be used for construction activity and 20% to modernize the construction
industry. Through Make in India initiative, the government also aims to model India as global manufacturing hub by
supporting both domestic and multinational companies to manufacture their products within the country. By 2025, it aims
to increase the manufacturing sectors contribution to 25% of GDP. In addition, a special management team, the
Department of Industrial Policy & Promotion (DIPP) undertakes fast track investment proposals in country. In June 2016,
the team launched Korea Plus, to facilitate fast track investment proposals from Korea and offer support to Korean
companies to enter into Indian market. These initiatives are expected to strengthen the countrys economy and increase
its GDP.
CCC is required to comply with stringent regulations at the federal, state and local levels. Products and services which do
not comply with legislation outlined by the regulatory bodies may face a delay in reaching its customers. Furthermore,
non-compliance with legislation may lead to penalties and legal proceedings, which may damage the companys image.
The company must comply with various construction laws, rules and regulations such as the Regulation of Employment
and Conditions of Service Act, 1996; Contract Labour (R&A) Act,1970; Contract Labour(Regulation and Abolition) Act,
1970 ; and Air (Prevention And Control Of Pollution) Act, 1981. Any non-compliance with applicable regulations may lead
to fines and other penalties. The compliance or change in regulations may force the company to update its services, in
turn, increasing the capital expenditure and impacting its financial position.
Increasing minimum wage rates for employees in India may increase the costs for the company. In April 2016, the
government proposed to increase the minimum wage for contract workers increased to INR10,000 per month. In addition,
the government also increased the monthly minimum wage to INR9178 for unskilled laborers, INR10,140 for semi-skilled
laborers and INR11,154 for skilled laborers effective from October 2015. Such initiatives from the Indian government may
increase the cost indirectly for Everest which in turn may affect its profitability.
Demand for cement may have an adverse impact due to the ban of sand mining in some states. In 2016, various state
governments imposed ban on sand mining from rivers. In November 2015, the National Green Tribunal announced ban
on sand extraction from Yamuna River. In June 2015, the Kerala state government announced ban on sand mining from
six rivers and allowed restricted sand mining from five rivers. Continuous flouting of environmental regulations resulted in
the ban on sand mining which may have an adverse impact over the cement production and the Indian construction
industry if the issue persists for long.
___________________________________________________________________________________________
__________________________________________________________________________________________
A Vision statement of CCC is given below. The following statement has been taken from the companys website.
Chettinad Group will touch and uplift the lives of the people in India through establishing and maintaining world class
industrial, infrastructural, educational and health care facilities to give quality of products and services, in which it deals
with, to our valuable customers, at a competitive price. Industrial and infrastructural development activities undertaken will
provide employment opportunity and economic development. By providing quality education and world class health
facility, society will be benefited. We will continue and expand our Corporate Social Responsibility and better
environment management for sustainable development.
___________________________________________________________________________________________
__________________________________________________________________________________________
The company acquired 17.1% stake in Anjani Portland Cement, increasing its
2014 Acquisitions/Mergers/Takeovers
stake to 66.1%.
2013 Stock Listings/IPO The company was delisted from MSE, NSE and BSE.
The company commissioned a Brown field Cement Plant with capacity of 2.5
2011 Corporate Changes/Expansions
MTPA and a coal based 30MW captive power plant at Karikkali.
The company commissioned Brown field Cement plant with capacity 2.8 MTPA
2009 Corporate Changes/Expansions
at Ariyalur.
2008 Corporate Changes/Expansions CCC established Green field Cement plant with capacity 2.8 MTPA at Ariyalur.
2007 Stock Listings/IPO The companys shares were floated on the National Stock Exchange.
2003 Others The company implemented ISO 14001:2004 in its manufacturing plants.
The company commenced Green field Cement plant with capacity of 0.9 MTPA
2001 Corporate Changes/Expansions
at Karikkali.
1998 Corporate Changes/Expansions CCC installed a vertical roller mill for cement grinding.
The company installed a wet process plant with a capacity of 0.4 MTPA cement
1967 Corporate Changes/Expansions
production at Puliyur.
___________________________________________________________________________________________
__________________________________________________________________________________________
___________________________________________________________________________________________
__________________________________________________________________________________________
___________________________________________________________________________________________
__________________________________________________________________________________________
Kallur Project
Survey No.5, Sangem.K Village, Kallur Works
Bhaktampalli (Post), Chandapur S.O
Chincholi
Zip: 585 305
India
Tel: + 91 8475 273029
Fax: + 91 8475 273019
___________________________________________________________________________________________
__________________________________________________________________________________________
8 Appendix
8.1 Methodology
Timetric company reports are based on a core set of research techniques which ensure the best possible level of quality
and accuracy of data. The key sources used include:
Company Websites
Company Annual Reports
SEC Filings
Press Releases
Proprietary Databases
Notes
Financial information of the company is taken from the most recently published annual reports or SEC filings
The financial and operational data reported for the company is as per the industry defined standards
Revenue converted to US$ at average annual conversion rate as of fiscal year end
8.2 Disclaimer
No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means,
electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Timetric.
The data and analysis within this report is driven by Timetric from its own primary and secondary research of public and
proprietary sources and does not necessarily represent the views of the company profiled.
The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the
findings, conclusions and recommendations that Timetric delivers will be based on information gathered in good faith from
both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such Timetric can
accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.
___________________________________________________________________________________________