Cement Industry

CONTENT
INTRODUCTIN. PESTEL ANALYSIS. MICHAEL PORTERS FIVE FORCE MODLE USING IN CEMENT INDUSTRY. SWOT ANALYSIS. CONCLUSION.

INTRODUCTION
Indian Cement Industry largest cement producer in the world after china. The Cement Industry in India is dominated by around 20 companies which account for almost 70./. Of total cement production. In 1889 Kolkata based started manufacturing cement from argillaceous. But Indian industry get shape in early

In 1914, Indian cement company ltd. was established in porbandar with a capacity of Some 1000 tones . major cement industry in India

PESTLE ANALYSIS
Political

Environm ental

Economic al

Legal
Technolog ical

Social

RIVALRY AMONG EXISTING FIRMS

In India cement industry has large number of cement producer . The biggest cement player in Indian cement . Acc ltd. JK Cement. Ambuja Cement. Ultra tact Cement.

POTENTIAL NEW ENTRANCE

The existing industry are hard to exist to expand there region competition. That the new industry come in market with sufficient quality and pricing. The technology using by new industry is better and economy. Due to this the cement industry become a very huge attractive market to enter, to increase the threat of new entrants.

SUBSTITUTE PRODUCT $ SERVICE

Now a days timber is also being consider cement, many countries like Japan ,Indonesia, Singapore etc. Since those region are high earthquake affected so they prefer timber which a cheap and long lasting for years. but they cannot be considered of the substitute of cement. Without cement construction work is next

BARGAINING POWER OF BUYER

In present days cement producer become more power than buyers Most of companies into the direct markerting,and removal of middlemen bcoz of competition. Due to high institutional demand of cement small time buyers are usually tracked second market.

BARGAINING POWER OF SUPPLIERS

The cost item of supplies in cement manufacture process are limestone, clay iron, sand, shale. since all the raw material are natural resource and it have significant impact on company profitability. Switching cost from one supplier to another is high. A few substitutes available to supplies.

STRENGTH

OPPURTUNITY

SWOT ANALYSIS

THREATS

WEAKNESS

STRENGTH
High selling price and profitability levels to supply shortage. Relatively low energy cost. Tax free environment. Taxes and restriction set on imposed cement.

WEAKNESS
High oil price Significantly increase production and transport cost. Non optimal capital structure driven by the relatively low debt level maintain by most companies in the region. Increasing competition in both local and export markets.

OPPORTUNITIES
With growth in infrastructural activity cement demand expected to rise We expect government to cut cement duties in the long run to boost infrastructure development. Five year plan likely to boost cement demand.

THREATS
Decline in housing and infrastructure growth to slow down cement demand. Capacity overhang expected by FY5. Rise in input costs like coal and petroleum to add pressure to margin.