India Cement Industry Report - 2015

India Cement Industry Report - 2015

This report profiles India’s cement industry, discussing market trends and outlook through 2015 and beyond. The report also highlights leading players in the sector including Ambuja Cements Ltd, UltraTech Cement Ltd and Shree Cement Ltd.

Cement is one of the eight core industries of the Indian economy. As of Dec 2014, India was the world’s second largest producer of cement, just behind China. However, per capita cement consumption in India is still amongst the lowest in the world. The vast potential that exists in the industry has attracted investors from all round the world.

FY15 (fiscal year ended March 2015) was a steady year for the Indian cement industry with growth in both production and consumption. However, slowdown in industries and the construction sector constrained growth rates to low single-digits. High interest rates particularly hit the real estate sector, which is the main driver of the construction sector. Cement overcapacity and falling margins have made the situation ripe for industry consolidation. Going forward, a rise in mergers and acquisitions is likely within the sector. FY16 started on a low note with the cement production index growing by only 1.8% y/y in the first five months, mainly due to subdued demand.

India's cement consumption is expected to grow in the years to come, backed by increased political stability and steady growth in housing and infrastructure development. Domestic installed capacity is sufficient to accommodate any rise in consumption.

Key Points:

During 2006-14, India's cement installed capacity increased at a CAGR of 10%. In FY15, it grew by 7%y/y. The private sector accounted for over 95% of the total capacity, while the remainder came from the government.

During 2006-14, annual domestic cement consumption grew at a CAGR of 8%, which was less than capacity growth during the same period.

During 2008-14, the production index for core industries recorded a CAGR of 5.1%. The cement industry outperformed the overall group with a CAGR of 6.6% during the same period. In FY15, the cement industry grew by 5.6%, which was greater than the overall group. However, the cement production index grew by just 1.8% y/y in 5MFY16.

1. Industry Profile
1.1 Sector overview
1.2 Sector size
1.3 Competitive landscape
1.4 Environmental scanning

2. Market Trends and Outlook
2.1 Key economic indicators-India
2.2 Installed capacity
2.3 Cement production
2.4 Cement consumption
2.5 Cement trade
2.6 Cement prices
2.7 Market outlook

3. Leading Players and Comparative Matrix
3.1 Leading players
3.1.1 Ambuja Cements Limited (ACL)
3.1.2 UltraTech Cement Ltd (UTCL)
3.1.3 Shree Cement Ltd (SCL)
3.2 Comparative matrix
3.3 SWOT analysis

4. Tables & Charts
Table 1: Major players in Indian cement industry
Table 2: Recommendations of the working group for the growth of cement industry
Table 3: Key financial ratios of the leading players
Table 4: Latest quarterly results of leading players

Chart 1: Index of industrial production
Chart 2: Breakup of world cement production by countries
Chart 3: Size of the Indian cement industry
Chart 4: Excise revenues collected from the cement sector
Chart 5: Number of cement manufacturing plants owned by major cement players
Chart 6: Result of Indian general elections 2014-seat share
Chart 7: Projected investment in infrastructure as a percentage of GDP
Chart 8: Per capita consumption of cement in India
Chart 9: Quarterly GDP growth rate-India
Chart 10: Average monthly USD to INR exchange rate
Chart 11: Monthly inflation-India
Chart 12: Repo rate
Chart 13: GDP by sectors at factor prices
Chart 14: Percentage change over previous year- GDP by sector
Chart 15: Annual Installed capacity of cement industry
Chart 16: Breakup of installed capacity by company
Chart 17: Total annual cement production
Chart 18: Annual capacity utilization
Chart 19: Total annual cement consumption in India
Chart 20: Annual cement demand as a ratio of installed capacity
Chart 21: Cement consumption by sector
Chart 22: Cement consumption by region
Chart 23: Cement exports from India
Chart 24: Cement imports in India
Chart 25: Annual wholesale price index for grey cement
Chart 26: Monthly wholesale price index for cement
Chart 27: Forecast for cement consumption in India
Chart 28: Tentative holding structure of LafargeHolcim Group in India
Chart 29: Cement consumption by region-ACL
Chart 30: Net sales of ACL and ACC
Chart 31: EBIDTA margins of ACL and ACC
Chart 32: Annual production of UTCL
Chart 33: Net sales of UTCL
Chart 34: Profit margins of UTCL
Chart 35: Annual production of SCL
Chart 36: Net sales of SCL
Chart 37: Profit margins of SCL

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