19451792-About-Cement-Industry - Submitted By: Ashutosh...

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Submitted By : Ashutosh Surolia- Chandan Sukul Gopal Krishna Das Manish Kumar Sinha Partha Misra Purnima Sinha Richa Misra A Report on Associated Cement Companies Limited Submitted To: Prof. Mukund Mate. Overview: Cement Industry The cement industry is experiencing a boom on account of the overall growth of the Indian economy. The demand for cement, being a derived demand, depends primarily on the industrial activity, real estate business, construction activity, and investment in the
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market is flourishing like never before. Indian cement industry is globally competitive because the industry has witnessed healthy trends such as cost control and continuous technology up gradation. Global rating agency, Fitch Ratings, has commented that cement demand in India is expected to grow at 10% annually in the medium term buoyed by housing, infrastructure and corporate capital expenditures. Cement Industry originated in India when the first plant commenced production in 1914 in Porbandar, Gujarat. The industry has since been growing at a steady pace, but in the initial stage, particularly during the period before Independence, the growth had been very slow. Since indigenous production was not sufficient to meet the entire domestic demand, the Government had to control its price and distribution statutorily. Large quantities of cement had to be imported for meeting the deficit. The industry was partially decontrolled in 1982 and this gave impetus to its pace of growth. Installed capacity more than doubled during the period 1980-90. It increased from 27 million tonnes in 1980-81 to 62 million tonnes in 1989- 90. Encouraged by the positive response of the industry to the policy liberalization in the cement industry, Government decontrolled the industry fully on 1 st March 1989. With the Industrial Policy Statement made by the Government in 1991, the cement industry stands delicensed. It has also been listed as a priority industry in Schedule III of the Industry Policy Statement making it eligible for automatic approval for foreign investment up to 51 per cent and also for technical collaboration on normal terms of payment of royalty and lump sum know-how fee. Indian cement industry has thus been one of the pioneering industries in introducing policy reforms. After the liberalization measures and globalization of Indian economy, the cement industry has been growing rapidly at an average rate of 8 per cent except for a short period in 1991-92 when the industry faced demand recession. The country is now the second largest producer of cement in the world. India has also started exporting large quantities of cement and clinker. Company Overview
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This note was uploaded on 03/21/2010 for the course KNOWLEDGE 5654 taught by Professor Mr.david during the Spring '10 term at IESE Business School.

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19451792-About-Cement-Industry - Submitted By: Ashutosh...

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