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LIST OF CONTENTS

CHAPTER CONTENTS

01 Introduction

02 Industry profile

03 Research Methodology
 Statement of the problem
 Need for the study
 Objectives of the study
 Research methodology
04 Data analysis

05 Suggestion, Findings and conclusion

06 Bibliography

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“A Study on impact of GST on cement industry”
Chapter -1
Introduction
Goods & Services Tax Law in India is a comprehensive, multi-stage, destination-based tax
that will be levied on every value addition.

In simple words, GST is an indirect tax levied on the supply of goods and services. GST Law
has replaced many indirect tax laws that previously existed in India.

The GST gathering starting late sat together with the Finance Minister Arun Jaitley starting
late and concentrated on GST rates on various things from the various organizations.
Additionally, since consequences of one industry fills in as a rough material to another, well
all things considered, the entire thing will fallingly affect India's gwoth stream in the
amassing business and anything is possible from that point.

For security, the GST rate was picked as 28 percent. At the present time, the various
underhanded charges like VAT and organization survey et cetera connote around 31 percent.
So the organization settling on the rate as 28 percent suggests a 3 percent cut down rate,
which is elevating news for everyone who needs to develop a house or two. The cement
business in India is depended upon to build up a long ways in the years to come. Right now, it
is required to be having an improvement rate of 11.14 percent to the extent volume from the
cash related year 2011 to the ceaseless 2017. The creation is said to be recorded around 407
million tons by March 2017, which is a colossal sum and a uber achievement in itself.

India is the second greatest creator of cement on the planet. No huge astonishment, India's solid
industry is a crucial bit of its economy, offering work to more than a million people, particularly
or roundaboutly. As far back as it was deregulated in 1982, the Indian solid industry has pulled in
colossal theories, both from Indian and furthermore remote money related pros. India has an
impressive measure of potential for progression in the establishment and improvement region and
the cement division is required, all things considered, advantage from it. A part of the current
huge government exercises, for instance, headway of 98 sharp urban groups are depended upon to
give a critical lift to the range. Cheerful such enhancements in the country and bolstered by
proper government outside methodologies, a

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couple of remote players, for instance, Lafarge-Holcim, Heidelberg Cement, and Vicat have
placed assets into the country in the current past. A significant factor which helps the
advancement of this division is the readied availability of the unrefined materials for making
cement, for instance, limestone and coal. Media transmission, oil, coal, compost, iron, steel
and cement et cetera are the key establishment fragments of India. Solid industry is
furthermore accept a gigantic part, in the speedy advancement and change of a country since
cement is a basic essential of all improvements works out. Concrete is used as a piece of
cabin, dams, ranges, mechanical improvement, avenues et cetera, so security is major
material which is used as a piece of an extensive variety of advancements. In the
advancement of Indian collecting wanders, libertarian considerations of a nation, building
objectives have had confined interest as focuses for industrialization. It was generally the
advantage center that have choose their development and continues doing in that capacity
even after Intendance, expect for what the overall public fragment has been doing however
not with much idea for effectiveness or efficiency. In past days, diverse sorts of building
materials were used for advancement of open Historical and religious structures sand, stone
and in the extraordinary case; marbles were used consequently. The place of standard
occupants was typically made of mud and thin squares. In few cases lime and pazzolona were
used for getting delightful finishing for within surface. There were incredible producers and
mesons that have made great and splendid havens, structures and washing ghats thousand of
years earlier, still they are notable for their work and shape. Regardless, well ordered cement
and new sorts of material had made in Europe. In 1824 an English man Joseph Aspadin,
secured on made by calcinations of an argillaceous limestone known as Portland concrete.
Since concrete delivered utilizing it took after an eminent building stone got from the ISLE of
Portland close England. This was the begin of Portland cement industry as it is known today.

Cement is a powdered material with water outlines a paste that hardens bit by bit. It is made
by sintering a mix of various unrefined materials. The standard rough material

shaped in the mix is calcium carbonates as limestone and other alumina,

silicates as earth or shale. In the midst of the sintering methodology compound reaction
happens, produces handles, called a clinkers which involves calcium silicates and aluminates
when the clinker is pounded with a little measure of gypsum as a peruser the ensuing powder
is called Portland cement.

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Security is basic material for an extensive variety of advancement works and it is by and
large used as a piece of improvement from tiniest attempting to greatest structures like dams,
water framework works, interface, mechanical complex et cetera. Essentially, one may state
that solid and steel are

Sinequa-non for that change of advancement practices in the country. It must be entrancing to
know how concrete is made today inverse the recorded establishment. Solid expenses in India
recorded a 6.7 for each penny month-on-month advancement in April 2017, in this manner
exhibiting the probability of improvement in volume and benefit of cement associations in
the quarter completing June 2017.The cabin fragment is the best demand driver of cement,
speaking to around 67 for every penny of the total use in India. The other genuine customers
of security join establishment at 13 for each penny, business improvement at 11 for every
penny and mechanical advancement at 9 for every penny. As far as possible in India is
assessed to be at 420 MT as of March 2017 with creation creating at 5-6 for each penny for
every year. The country's per capita use stays at around 225 kg. The Indian solid industry is
directed by two or three associations. The primary 20 solid associations speak to pretty much
70 for every penny of the total cement era of the country. A whole of 188 tremendous cement
plants together record for 97 for each penny of the total presented confine in the country, with
365 little plants speak to the rest. Of these broad solid plants, 77 are arranged in the states of
Andhra Pradesh, Rajasthan and Tamil Nadu.

The Indian Government is exceedingly based on making structure, direct cabin and
boulevards as announced by the FM Mr. Arun Jaitley in the Budget 2017. Thusly, the cement
business is depended upon to get a lift within the near future. The request however is, will the
utilization of GST impact this foreseen advancement? The cost rates for concrete is to an
extraordinary degree complex. For example, there are distinctive rates and specific
commitments of concentrate suitable on different sorts of solid dependent upon whether they
are given in mass edge or fit as a fiddle or whether for present day or trade purposes. The
effective rates including concentrate and VAT means up to around 24-25%. Unshakable
cement, mortars, concretes (generally used for building industry radiators, epic ovens et
cetera.) will attract 18% cost. Concrete Cemented Particle Board will attract 12%.The
guideline rough materials for concrete are limestone, coal and power. The cost rates on these
are according to the accompanying: Limestone is saddled at 5%. Coal is topped at 5%,which
is an abatement from the earlier rate of 11.69%. Power is outside the area of GST. Nothing is
said with respect to the prominence that the solid associations pay to the state governments

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for quarrying limestone. Clean essentialness cess is forced on coal, which is not open as an
information credit since it is not subsumed by GST. Thusly, these two components will
continue being outside the space of GST and will be consolidated into the cost of the solid era
even after GST is realized, as was done as of now.

GST use will obtain inspiring news for solid industry India. Enormous evaluation diminish is
being ordinary by pros for this division of economy. At display, the regular obligation rates
are 27-32% yet GST will pass on the rates down to 18-20%. The new cost system will help
cement industry in decreasing their collaborations costs. GST will in like manner cover
collaborations and warehousing industry. Cement industry is seriously dependent on
collaborations and warehousing industry which add to 20-25% of their pay period.

Indian cement industry is intended to create at a CAGR of 11.14% in volume terms in the
midst of FY 2011-FY 2017 and is required to accomplish 407 million tons by March 2017.
This lively advancement rate will also be helped by GST. A couple of significant names
among security makers, for instance, Ultratech, JK Cement, and Shree Cement are depended
upon to benefit by the new evaluation change in India. The reports recommend that the
introduction of Goods and Services Tax in India will undeniably benefit the Indian solid
industry and upgrade their efficiency too. GST India is most likely going to emphatically
influence the cement business and will similarly benefit the strong admixtures creating
fragment.

As showed by a present report, "India Naphthalene and PCE based Admixtures Market By
Type, Competition Forecast and Opportunities, 2011 – 2021", naphthalene and
polycarboxylate (PCE) admixtures publicize in India is depended upon to accomplish USD
683 million by the year 2021. Land division is the genuine client for solid industry. However
the improvement in the part has been about torpid for whatever length of time that couple of
years. A couple of changes taken by the governing body are depended upon to give realty
fragment a lift. Strong improvement in the land division, growing government reaches out on
establishment progression and use of stringent regulatory benchmarks will help in boosting
enthusiasm for naphthalene and polycarboxylate (PCE) based admixtures in India by the
coming next five years. Again the huge names among the naphthalene and PCE based
admixtures producers in the country join BASF, Fosroc and SIKA. Solid India is the second
greatest producer on the planet and in the accompanying 10 years, India can transform into

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the net exporter of cement and clinker. The central unrefined materials for cement are
limestone, coal and power. Limestone, for quarrying, the solid associations need to pay
prominence to the state governments and for coal, beside the GST, there will be expect of
clean essentialness cess which is not available as a credit since it is not some part of the GST
organization subsumes. Along these lines, thusly, to the degree the solid business is
concerned, these two components will continue being outside the GST and in this way, it
must be expended as cost of the cement era .If GST is claimed on control, again it will
manufacture the cost. So we believe this is available as a credit while paying GST on the
cement. The organization force paid on the transportation cost, et cetera if it is not made
available at the shippers' level, all advances toward getting to be cost of the security era and
unless and until the point that the rates of GST on concrete is kept at the level of not more
than 12 percent, it will have horrible impact the degree that the system business is concerned.

Cement is associated with the desires and objectives of an energetic India. Moreover, which
is fine and dandy, for it makes you have your own specific housetop in a seriously populated
natural framework. Likewise, a natural group so populated, where there is so much race, that
owning a life is tantamount to winning at life, well reasonably. Think Mumbai! Additionally,
since India has one of the greatest number of adolescents among one of the greatest people,
the industry expect its own special essentialness. Likewise, it twists up observably vital to
separate what is in store, especially on the very edge of an essential month that envisions us,
when the Government of India will uncover the incredibly expected Goods and Services Tax
(GST) on July 1.

The move will impact most endeavors in a not too bad or an appalling way, in any case it will
cast its impression notwithstanding. The various circuitous charges will be cut into one
obligation as a result of GST impose appraisal, and the end affect on the customers will by
and large depend upon what rate of GST the organization gathers on different organizations.

Huge players like UltraTech, Shree Cement, JK Cement will benefit by this change in nature
of duty appraisal. Directly with the GST rate picked at 28 percent, which is lower than what it
is as of now, i.e. the mix of different charges, the industry is set to end up plainly significantly
further, and at a considerably speedier pace. After China, India Cement is the greatest creator
of cement on the planet. In addition, by say the next decade or close, India

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can be the greatest net exporter of cement on the overall guide. It's without a doubt an
especially sensible credibility.

What GST will do is empower the associations to make up for the collaborations costs they
gain. Furthermore, even the warehousing business, that costs millions to the solid business
beginning at now, will be reined. These are surveyed to cost around 20 to 25 percent of the
total made pay. In this manner once these costs are secured for, the created pay will be all the
additionally, provoking more advantages and lesser costs to the end customers. Along these
lines the cement costs are depended upon to go down in light of use of Goods and Services
Tax. To put it out radically, impacting houses to will be more affordable in India once the
GST organization expect control.

Furthermore with the GST rollout, the store organize organization in the cement business is
set to hint at change. There will be lesser number of costs, some of them available as credit.
By then there will be lesser written word and subsequently, impressively lesser troubles.
Since once GST takes off, India will be one appraisal organization, beside a few unique cases
all finished, which is sensible. So interstate transportations and dealings will be better,
provoking a more grounded advancement of how the stock system.

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Chapter-2

Industry profile

Cement industry in India

India went into the Cement Era in 1914, when the Indian Cement Company Ltd. started
manufacturing Cement in Porbundar in Gujarat. Regardless, even before that a little cement
fabricating plant was developed in Madras in 1904 by an association named South India
Industrial Ltd. Indian Cement Company Ltd conveyed only a solitary sort of cement which
was plot by the British standard counseling bunch as "Fake Portland Cement". This
association displayed its thing in Mumbai, Karachi, Madras and diverse parts and transformed
into a cash related accomplishment. Around then India expected to import cement from
England. The cost of the shipped in cement was higher. Some extraordinary computes, for
instance, increase neighborhood ask for, decreasing in supply from abroad (due to war),
availability of Indian Capital, plenteous rough material, Cheap work, support of the council et
cetera made it a primary industry in India in a concise time span. In January 1915, a solid unit
was started at Katni in Madhya Pradesh In December 1916, another unit at Lakheri in
Rajasthan was started. In the midst of the First World War time period, solid creation in these
three basic modern offices was taken under control of the council and later the control was
lifted once the war was done. After the war, 6 more units were pushed in India. Concrete is an
essential of establishment progression and most basic commitment of advancement industry
particularly in the organization structure and hotel programs which are imperative for the
country's budgetary improvement and change.

Key Other Landmarks in History of Cement

 In 1925, first relationship of the solid producers was confined as "Cement


Manufacturers Association".
 It was trailed by "Strong Association of India" in 1927.

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 In 1930 "Security Marketing Company of India" was started and this was trailed by a
standard system on the commence of presented point of confinement of the modern
offices.
 In 1936, all the cement associations except for one i.e. Sone valley Portland Cement
Company agreed and encircled Associated Cement Companies Ltd. (ACC).This was
the most indispensable even in the recorded scenery of cement industry in India.
Various more associations were developed in the following years.
 Before allocate had 24 handling plants, out of which India held 19 mechanical offices,
which yearly era of 2.1 million tons. Pakistan faced an issue at the supply side as it
had issue of exchange of the cement made and India went up against an issue looked
for after side as era tumbled to 2.1 million tons from 2.7 million tons.
 After Independence, the package of the country seriously influenced the solid
business.

 Industry to grow at 5-6 per cent CAGR between FY17 – FY20.


 Capacity addition of 109 million tonnes per annum (mtpa) between 2013-16.
 Total installed capacity of 420 million tonnes as of June 2017.
 Domestic consumption to outpace supply in next three fiscal

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Market Size
Cement costs in India recorded a 6.7 for each penny month-on-month development in April
2017, along these lines showing the likelihood of development in volume and gainfulness of
concrete organizations in the quarter finishing June 2017.

The lodging division is the greatest request driver of concrete, representing around 67 for
every penny of the aggregate utilization in India. The other real buyers of concrete
incorporate foundation at 13 for every penny, business development at 11 for every penny
and mechanical development at 9 for each penny.

The concrete limit in India is assessed to be at 420 MT as of March 2017 with creation
developing at 5-6 for each penny for every year. The nation's per capita utilization remains at
around 225 kg.

The Indian concrete industry is overwhelmed by a couple of organizations. The main 20


cement organizations represent just about 70 for each penny of the aggregate concrete
creation of the nation. A sum of 188 extensive concrete plants together record for 97 for every
penny of the aggregate introduced limit in the nation, with 365 little plants represent the rest.
Of these expansive concrete plants, 77 are situated in the conditions of Andhra Pradesh,
Rajasthan and Tamil Nadu.

Investments

On the back of developing interest, because of expanded development and infrastructural


exercises, the concrete area in India has seen numerous speculations and improvements as of
late. As per information discharged by the Department of Industrial Policy and Promotion
(DIPP), cement and gypsum items pulled in Foreign Direct Investment (FDI) worth US$ 5.24
billion between April 2000 and March 2017.

A portion of the significant interests in Indian concrete industry are as per the following:

• Emami Ltd, a quick moving shopper merchandise (FMCG) organization, plans to


contribute around Rs 8,500 crore (US$ 1.32 billion) to scale up its concrete generation limit
from 2.4 million tons (MT) to 15-20 MT in the following three to five years.

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• The Gujarat-based Nirma gathering, with nearness in cleanser, cleanser and chemicals
segment, has purchased Lafarge India's cement business, comprising of 11 MT generation
limit, for US$ 1.4 billion.

• FLSmidth, a worldwide designing organization situated in Copenhagen, has marked


an agreement with India's Larsen and Toubro Limited for building, acquirement and supply of
gear for a total concrete creation line with a limit of 3,000 ton in Tamil Nadu.

Government Initiatives

In the twelfth Five Year Plan, the Government of India intends to expand interest in
foundation to the tune of US$ 1 trillion and increment the business' ability to 150 MT. The
Cement Corporation of India (CCI) was fused by the Government of India in 1965 to
accomplish independence in concrete creation in the nation. At present, CCI has 10 units
spread more than eight states in India. So as to help the private division organizations flourish
in the business, the administration has been favoring their speculation plans. Some such
activities by the administration in the current past are as per the following:

• The State Government of Chattisgarh has unloaded one square of Limestone (Kesla
II) in Raipur District having evaluated stores of 215 million tons esteemed at Rs 10,367crore
(US$ 1.61 billion), and would gain a combined income of Rs 11,894 crore (US$ 1.85 billion)
to State Government over the rent time frame.

• The Union Budget proposed to dole out foundation status to reasonable lodging
ventures and encourage higher speculations and better acknowledge offices, in line for the
administration's mean to give lodging to all by 2022 which will support concrete request.

• The Finance Minister, Arun Jaitley, said that the National Housing Bank will
renegotiate singular lodging credits of about Rs 20,000 crore (US$ 3 billion) in 2017-18. The
Finance Minister proposed to finish 1 crore houses by 2019. Every one of these
improvements are relied upon to support cement request.

• The expanded assignment to provincial minimal effort lodging under Pradhan Mantri
Awaas Yojana-Gramin plan to Rs 23,000 crore (US$ 3.45 billion) from Rs 16,000 crore (US$
2.4 billion) in FY17 is probably going to drive a 2 for each penny increment in concrete
request, Ambit Capital said in a report.

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Road Ahead

The eastern conditions of India are probably going to be the more up to date and virgin
markets for cement organizations and could add to their primary concern in future. In the
following 10 years, India could turn into the primary exporter of clinker and dim concrete to
the Middle East, Africa, and other creating countries of the world. Cement plants close to the
ports, for example the plants in Gujarat and Visakhapatnam, will have an additional favorable
position for sends out and will strategically be all around furnished to confront firm rivalry
from concrete plants in the inside of the nation.

An expansive number of remote players are likewise anticipated that would enter the cement
segment, inferable from the net revenues and enduring interest. In future, local concrete
organizations could go for worldwide postings either through the FCCB course or the GDR
course.

With assistance from the legislature as far as friendlier laws, bring down tax collection, and
expanded foundation spending, the segment will develop and take India's economy forward
alongside it.

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1-ACC

• Formed from the nation's first prominent merger

• Largest client of limestone

• One of the greatest clients of the local coal industry

• Only cement organization that figures in the rundown of Consumer Superbrands of


India

• Among the main organizations to incorporate responsibility regarding natural security


in its corporate targets

ACC Limited was built up in 1936 by Mr FE Dinshaw when 10 existing concrete


organizations met up under one umbrella. Since initiation, the organization has been an
innovator and critical benchmark for the cement business in numerous ranges of cement and
solid innovation. ACC has a one of a kind reputation of inventive research, item improvement
and particular consultancy administrations. The organization's different assembling units are
sponsored by a focal innovation bolster administrations focus.

ACC has rich involvement in mining, being the biggest client of limestone. As the biggest
concrete maker in India, it is one of the greatest clients of the local coal industry, of Indian
Railways, and an extensive client of the nation's street transport arrange administrations for
internal and outward development of materials and items.

ACC plants, mines and townships obviously express fruitful attempts in quarry recovery,
water administration strategies and "greening" exercises. By and by, it has around 16 concrete
works plants the nation over.

ACC Limited: Foremost Indian Cement Manufacturers

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 2014 Receives Golden Peacock National Quality Award; Appreciation Award from
Assocham for exceptional CSR exercises
 2013 Receives LEED Platinum affirmation for La Residency at Thane; gets
Greentech Environment Management Award
 2012 Amalgamates ACC Concrete and Encore Cement and Additives with ACC
Limited; gets National Energy Conservation Award
 2011 Installs world's biggest furnace at ACC Cement Plant, Wadi; gets Golden
Peacock Award for Eco-Innovation by World Environment Foundation
 2010 Becomes first concrete organization in India to go into its Platinum Jubilee year;
wins EPC World Awards for Outstanding Company in the Cement part
 2009 Gets dispensed coal obstructs in Madhya Pradesh and West Bengal; gets eighth
Greentech Safety Award in Gold Category

2-Birla Cement Limited

• Leading Indian cement producer

• One of the best 'under a billion dollar' organizations in the Asia-Pacific locale

• Manufactures results of global quality

• One of the most condition well disposed concrete producers

Birla Corporation Ltd is the lead organization of the MP Birla Group and was fused as Birla
Jute Manufacturing Company Ltd in 1919. The Cement Division of Birla Corporation Ltd
has seven plants - two each at Madhya Pradesh, Rajasthan and West Bengal, and one at Uttar
Pradesh. They make assortments of cement like Ordinary Portland Cement (OPC), 43 and 53

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grades, Portland Pozzolana Cement (PPC), Fly Ash-based PPC, Low Alkali Portland Cement,
Portland Slag Cement, Low Heat Cement and Sulfate Resistant Cement.

The cement is advertised under the brand names of Birla Cement Samrat , Birla Cement
Khajuraho, Birla Cement Chetak and Birla Premium Cement, bringing the item under the
basic brand of Birla Cement while holding the specialty character of SAMRAT for mixed
concrete.

Furthermore, BCL additionally trades substantial amounts of concrete to Nepal, under the
brand names of Birla Cement Samrat, Birla Cement Khajuraho and Birla Cement. The
extraordinary assortment of Birla Cement Samrat, being created by the organization, is
perfect for mass cement, RCC/pre-focused/precast structure (for lessened warm break),
expanded water snugness of concrete, expanded imperviousness to sulfate soils and forceful
water and expanded imperviousness to salt total response, other than having consumption
safe properties.

Birla Cement Ltd: Quality Cement with Green Environment

 2009 Makes it to renowned rundown of '200 Best Under a Billion Dollars'


organizations in the Asia-Pacific district
 2008 Wins Greentech Environment Excellence Award from the Greentech Foundation
 2007 Receives First Prize for Lowest Thermal Energy Consumption K. Cal/kg clinker
under the tenth FLS Energy Awards
 2004 Receives Best Energy Conservation Implementation Gold Award under the
Rajiv Gandhi Memorial National Awards
 2002 Wins Lal Bahadur Shastri Memorial National Award for Excellent Pollution
Control Implementatio

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3-AMBUJA CEMENT

• Over 25 years of operations

• One of the main concrete assembling organizations in India

• Market pioneer in Northern India with 29 for each penny of the aggregate introduced
limit

• Cement limit of 27.25 million tons

Ambuja Cements Ltd, a piece of a worldwide aggregate Holcim, is one of India's driving
concrete producers. With more than 25 years of operations, Ambuja assumes a key part in
India's improvement and its plan for what's to come. Today, it is one of the significant players
in the nation's concrete division.

Ambuja has become progressively finished the previous decade. Its present cement limit is
27.25 million tons. The organization has five incorporated cement fabricating plants and eight
concrete crushing units the nation over. It is the primary Indian concrete producer to construct
a hostage port with three terminals along the nation's western coastline to encourage
opportune, financially savvy and earth cleaner shipments of mass cement to its clients.
Ambuja likewise has its own particular armada of boats.

The organization has set up itself as a standout amongst the most effective cement producers
on the planet. Its condition insurance measures are keeping pace with the finest in the nation.
It is among the most productive and inventive concrete organizations in India. Ambuja has
additionally spearheaded the improvement of numerous bio-mass co-let go advances for
creating greener power in its hostage plants.

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Ambuja Cement: On a High Growth Path

 2014 Wins fourteenth Annual Greentech Environment grant in the Gold Category
 2013 Wins Asia's Most Promising Brand and Leader Award at the Asian Brand and
Leadership Summit 2013
 2012 Wins National Award For 'Phenomenal Water Management Initiatives' for work
done at Marwar Mundwa, Rajasthan under 'Inside the Fence' class
 2011 Acquires 85 for every penny stake in Nepal-based Dang Cement

4-ULTRATECH CEMENT

• Tenth biggest maker of concrete all inclusive

• Annual introduced limit of 54 million tons (MT)

• Revenue base of about US$ 3.9 billion in FY13

• Profit after assessment (PAT) remained at US$ 0.5 billion in FY13

UltraTech Cement

UltraTech Cement – 'The Engineer's Choice' is India's biggest and among the World's best
producers of concrete. The organization gives a variety of items going from dark cement to
white concrete, from building items to building arrangements and a grouping of prepared
blend cements taking into account differed necessities and applications.

A lion's share of UltraTech's cutting edge producing units are licensed with the most
astounding quality norms and confirmations, for example, ISO 9001 for quality frameworks,

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ISO 14001 for natural administration frameworks and OHSAS 18001 for word related danger
and wellbeing administration frameworks.

UltraTech and its backups have a nearness in five nations through 11 incorporated plants, one
white cement plant, one clinkerisation plant, 15 pounding units, two rail and three waterfront
terminals, and 101 prepared blend concrete (RMC) plants. The organization is India's biggest
exporter of cement clinker spreading over fare showcases in nations over the Indian Ocean,
Africa, Europe and the Middle East.

UltraTech Cement: A convincing development story

 2000 Bulk concrete terminals set up at Mangalore, Navi Mumbai and Colombo
 2004 Acquisition of L&T's Cement Business: UltraTech Cement Ltd
 2006 Narmada Cement Company Ltd amalgamated with UltraTech
 2010 Samruddhi Cement Ltd amalgamated with UltraTech Cement Ltd
 2012 Acquisition of Adhunik Cement's Meghalaya plant

5-JK CEMENT

• Total pay of Rs 14,77 crore ( US$ 245.76 million*) in FY 13

• White cement and divider putty advertised the nation over

• One of just two makers of white cement in India

• Over 100 MW control era through coal-based and squander warm recuperation plants

• Key Export Markets: South-Asia, Middle East, and Africa

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JK Cement has more than three many years of involvement in concrete assembling. It started
with business generation at Nimbahera, Rajasthan in May 1975. The organization has an
introduced dark concrete limit of 7.5 million tons for each annum (MTPA) which makes it
one of the main makers in the nation.

JK Cement is the second biggest producer of white concrete in India, with a yearly limit of
400,000 tons, and esteem included building items, for example, divider putty, with a yearly
introduced limit of 300,000 tons.

JK Cement was the primary organization to introduce a hostage control plant, in 1987 at
Bamania, Rajasthan. It is additionally the primary concrete organization to introduce a waste
warmth recuperation control plant to deal with the need of green power. Today, at its diverse
areas, the organization has hostage control era limit of more than 100 megawatts (MW).

JK Cement: A Top Cement Manufacturer

 2012 Lays establishment for setting up a split crushing unit at Jhajjar, Haryana
 2010 The Government of India issues a dedicatory postal stamp to pay tribute to Mr
Lala Kamlapat Singhania – the visionary author of the JK association.
 2009 Commissions a 3 MTPA Greenfield plant in south at Muddapur, Karnataka
 2005 Lists on the Bombay Stock Exchange (BSE)
 1975 Enters concrete business with 0.3 MTPA plant at Nimbahera and ends up
noticeably one of the initial few to enter the cement business

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Impact of GST on cement industry

 At present, there are different eliminate duties applicable to cement manufacturers.


There are separate rates and specific duties applicable on:
o different types of cements
o supply in bulk form or in packaged form, or
o for industrial or trade purposes etc.
 Under Goods and Service Tax, Only a fixed rate of 28% will apply on cement
consequential in lesser compliances and less complexity.
 while most of the cement manufacturers are located near sandstone quarries where the
demand is to be fulfilled for the nation, transporting cement is very expensive.
 But, under Goods and Service Tax management, this transit time will decline as
vehicles will spend lesser time at checkpoints.
 additional, this will lead to lower transportation costs.
 Overall realisations of cement companies will significantly improve post Goods and
Service Tax
 The tax rate under VAT regime is 24-25%, but under Goods and Service Tax it will be
28%. This may make cement little
 To avoid CST and state entry taxes, most companies sustain multiple warehouses
across states which generally operate below their capacity leading to operational
inefficiencies.
 The supply chain management of cement will absolutely get a boost under GST as the
cement companies will consolidate their warehouses and continue warehouses in
areas where it is most beneficial.

It can be rightly finished that impact of Goods and Service tax would be positive with less
complex taxation, less transits time, less transport costs, warehouses would be consolidated,
and a better supply chain management system.

21
SWOT analysis of cement industry

Strengths

The cement business has numerous qualities to be considered. Concrete is, truly, the building
square of the development business. Practically every building built depends on cement for
its establishment. The concrete business is a $10 billion industry, measured by yearly cement
shipments. There is additionally a solid notoriety behind the concrete business. Cement is a
strong material and purchasers once in a while have protestations about the item. Local
conveyance plants have additionally made cement broadly accessible to a purchaser.

Weaknesses
The cement business is not without its hindrances. The cement business relies upon
advancement occupations to make an advantage. Regardless, the cement business seriously
relies upon atmosphere. Around 66% of cement era occurs among May and October. Cement
producers routinely use the winter quite a while to make and hold concrete, to deal with
request. Another inadequacy is the cost of transport; the cost of transsporting concrete is high
and this shields cement from being beneficial over long divisions. In a manner of speaking,
shipping cement costs more than the advantage from offering it.

Opportunities
The concrete ventures has open doors too. One such open door is the concrete business'
effectiveness. The concrete business has as of late streamlined its creation endeavors,
utilizing dry assembling rather than wet, which is heavier and additional tedious. The cement
business has likewise put about $6 billion in development endeavors to meet neglected
concrete needs. Projections demonstrate that by 2012, the cement business will have 25
percent more generation capacities.

Threats

The idea of the economy have revealed various dangers to the cement business. The cement
business enormously depends on development. The present economy has reduced the
quantity of development occupations, which thus harms the cement business. The concrete
business controls most of the United States advertise, yet not every last bit of it. Around 11.5
metric huge amounts of concrete are transported in every year to help the neglected need. On

22
the off chance that different nations can create and transport cement at a diminished cost, the
U.S. concrete industry is in threat. The U.S. government is likewise endeavoring to control
the cement business' waste. The Environmental Protection Agency has presented directions
for the cement business to chop down discharges.

The concrete business SWOT examination demonstrates that the business has been incredibly
influenced by the monetary downturn. In any case, with ventures, the industry trusts it can
modify and increment generation. This will diminish the requirement for imported products.
The business has turned out to be extremely renationalized in view of the high expenses of
transporting concrete. Notwithstanding, the territorial market takes into account a wide range
of occupations, from private to business ventures, just inside one area. Furthermore, the
abbreviated benefit time of concrete has permitted cement makers to extend generation over
the year, to dodge exhaust from May to December.

Literature review Indian cement industry


Nand Kishore Sharma (2002)In his study on the financial assessment of the cement industry
in India, that the liquidity situation is decreasing, and the current ratio and rapid loss has
shown a decreasing trend, as varied from time to time. Compared to the current ratio and fast
rate of the cement industry, six companies were above the industry average and four
companies lower than the industry average. The solvency situation in terms of debt-to-equity
ratio has been declining in the first four years of the study, and thereafter, it has recorded an
increasing trend. The ratio of fixed assets to total debt has always shown more than 100
percent, which indicated that foreign claims were included in the fixed assets of cement
companies.

Ghosh S.K., and Maji S.G. (2004)In its paper, to study the efficiency of working capital
management for Indian cement companies from 1992-1993 to 2001-2002. The Indian cement
industry as a whole did not perform well during the study period. Bardia (2006) in his study
on liquidity management in India Steel Corporation Limited analyzed the overall
performance of liquidity held by the steel sector and the amount restricted in various

23
components of working capital. This study has found that there is a positive relationship
between liquidity and profitability.

Amalendu Bhunia (2007), He studied liquidity management, short analysis through analysis
of working capital management and selected iron and steel companies in India. The study
revealed that the actual values found that the working capital is lower than the estimated
values of the capital of companies, such as the steel body of India Limited (SEIL) and the
Indian Iron and Steel Company (ISESCO). There was a poor liquidity performance in the
case of both SEAL and ISESCO, inefficient inventory management in case of lack of
efficient receivables management in the case of both institutions. It was suggested that an
increase in additional investment in raw materials, reducing the burden of current liabilities
are necessary to improve inventory management and liquidity position of these steel
companies.

Sudipta Ghosho (2008) Analysis of the liquidity performance of Tata Steel & Iron (Tesco).
During the selected period of study, it was found that the liquidity position of the company,
based on the current ratio as well as the rapid rate, was not satisfactory. The share of current
assets in total assets of the company averaged 29.1% during the study period. He suggested
that the company pay particular attention to managing current assets to maintain overall
control over the liquidity position. The degree of liquidity impact on profitability was found
to be low and insignificant.

Rajamohan .S and Vijayaragavan T. (2008)


He studied production performance of Madras Cement Company Limited. It can analyze the
comparative production performance of Madras cement and all other cement companies in
India. Statistical Method Man-Whitney U-Tsuas applied. The results of the analysis showed
that the production performance of the selected unit was equal to that of all other cement
units in India.

Dharmendra S(2011)
Have been closely correlated with the profitability of the Indian cement industry compared to
solvency ratios such as ratio of total assets, turnover ratio, debt ratio, equity and operating
expenses ratio.

24
Harshad R. Tandel (2013)Analysis that the financial analysis of plastics manufacturing
industry selected from Gujarat for the period 2000-01 to 2009-10. The main objective of this
study was to analyze and evaluate the financial performance of the selected companies in
particular and the plastics industry in general with the help of composition such as
profitability, activity, liquidity and solvency ratios. He governs financial performance with
the help of trend analysis and variance analysis. It can be concluded that the performance of
liquidity and profitability is not good, but in terms of activity and solvency of the industry
was satisfactory.

Haq and Sohail and Zaman and Alam (2011)Analysis of the relationship between working
capital management and profitability: A case study of the cement industry in Pakistan. In this
study to analyze the relationship between working capital management and profitability. The
researcher selected 14 cement companies in Khyber Pakhtun Khwa (KK) in Pakistan. The
study is based entirely on secondary data collected from the audited financial statements of
these companies listed on the Karachi Stock Exchange for the fiscal period 2004-2009. Data
were analyzed using statistical methods of correlation coefficient and multiple regression
analysis.

Hajihassani (2012)Comparison of financial performance in the cement sector in Iran. This


study showed a comparison between the financial performance of the period 2006 to 2009.
The comparison between the financial performance of the selected cement companies can be
analyzed by using different ratios and rates for the cement companies operating in Iran. The
financial ratios are divided into three categories. The performance of cement companies
based on profitability ratios differs from the liquidity ratio and the leverage ratio.

Dr. Abdul Ghafoor Awan, Pervaiz Shahid, Jahanzeb Hassan, Waqas Ahmad (2014)Analyzed
the impact of WCM on the performance of the cement sector in Pakistan. The study period
extends from 2009 to 2013. The study is based entirely on the secondary data collected from
the audited financial statements of these companies listed on the Karachi Stock Exchange.
The yield was used as a dependent variable in order to test the impact of the working capital
management on the profitability of the company and independent variables were, turnover of
stocks in days, cash conversion cycle, current ratio, quick ratio, total working capital, average
payment, size and funds allocated by the government in the program Public sector
development. The panel data method is used to study the impact of WCM on the profitability

25
of the cement sector in Pakistan. It can be concluded that the cash conversion cycle,
inventory turnover in days and the average payment period have a negative relationship with
the company's performance and a high probability. The current ratio has been statistically
insignificant and has a negative impact on return on equity in this study. These literature
reviews have been relevant to various industries such as cement, steel and sugar in India and
abroad. From these reviews, there are major research conducted on managing liquidity and
profitability through accounting tools. However, a comprehensive study on the financial
analysis of the cement industry in India - A statistical approach to analyzing the financial
performance of cement i

26
27
Chapter-3

Research Methodology

Statement of the problem

Advent of construction and infrastructure has boosted the production of cement industry. It is
found to be second largest revenue on in sector in the country. Revaluation in tax system has
both positive and negative impact on the economy. 28% GST which is higher rate of tax has
increased the cost for infrastructure sector. This study aims to understand both positive and
negative impact of GST on cement industry.

Need for the study

The study is mainly conducted to understand and taxation system applied to various sector.
the main need for the study is to know pre and post effects and impacts of GST on cement
industry

Objectives of the study

 To understand Indian taxation system


 To know pre and post impact of GST on cement industry
 To understand the feature prospects of cement industry
 To give pragmatic suggestion based on findings

Research methodology

Type of research conducted is exploratory research data’s are analysed using secondary data.

28
Chapter-4
Data analysis
India's cement industry is globally competitive as the industry continues to witness a positive
trend, such as cost control. Technology continues to incorporate and increase construction
activities. The result and discussion of this target is demonstrated by the support of the
multiple regression test.

How GST would impact the cement industry


NBCA-TV18 in the Dushima Minaka in the special series "Hi Gost" analysis of the GST
effect on the cement industry and the bill may not prove to be positive for the
industry.Although winter cycle can be wash in the range until the passage of goods (GST) But
there is hope that the GOST could be a reality in 2016. NPKA-TV18 in the Dushima Minaka
in the private series "Hello Ghost" analyze the impact of GST on the cement industry and the
bill may not prove that it is positive for the industry.

Following the worries expressed by V Lakshmikumaran, Managing Partner,


Lakshmikumaran & Sridharan.

"India's cement is the second largest producer in the world, and in the next 10 years, India can
become the net exporter of cement and clinker," he said, adding: "The main raw materials for
cement are limestone, coal, electricity, limestone, quarrying. For coal and coal, apart from
GST, there will be a clean energy tax that is not available as a credit because it is not part of
the GST system, so for the cement industry these two factors will remain outside the GST
tax, The product of cement. If the imposition of the goods and services tax on electricity,
again it will increase the cost. I hope that all this will be available during the loan payment of
goods and services tax on cement.

He noted that if one looks at the place of the cement industry in India, most manufacturers are
closer to the limestone quarries while the use throughout India, so the cost of transport from this
cement from the manufacturing place to the incinerators will go to be huge."The service tax paid
on transportation costs, etc., if not made available at the customer level, will become the cost of
cement production and unless the GST rates are maintained at no more than 12

29
percent, it will have a negative impact on the industry Infrastructure "....Source:
moneycontrol.com

ACC LTD

ASK is the oldest cement


manufacture in the country. The Company's total production capacity for the year ended
September 11 was 28.7 million tons per year, about 9% of the total production capacity of
Indian cement. ASK is the second largest player in the Indian cement industry after
UltraTech cement (52 metric tons). With 17 units and 9,000 strong dealer network, ASK is a
few cement companies to be a Pan-India presence.

Cement ASK Limited will limit Enk 6000 (US $ 89.9 million) in 2016-2017 to complete
expansion plans for cement capacity. Asec Cement Company has commenced the
construction of two cement units in Jamul and Sindri with a production capacity of 2.4Mta.
After completion of the project, the company's production capacity is expected to reach 33.42
million tons.

"The planned capital expenditure for 2016 is about 6,000 Indian rupees used to complete
expansion plans in Jamul (Chhatisgarh) and Sindri (in Jharkhand)," said Harish Badame,
CEO and Managing Director of ASK at the Annual General Meeting. (AGM) on Wednesday.

"These factories [Jamul and Sander] will continue in the next few months," he said as he
spoke on the sidelines of the General Assembly meeting. The company has no plans to add
new energy.

"There is enough capacity where usage levels can be improved," Padami said. In 2015, the
Committee's total energy use was 77 per cent. The company expects cement prices to
improve as demand growth is expected to see 6 per cent in 2016 from 2 per cent in 2015.

"2015 was the most challenging in terms of demand growth, excess capacity and low prices.
Forecasts for India's GDP growth in 2016 and short-term forecasts of seven to eight per cent,

30
and there can be no doubt that this growth requires urbanization Transformation, and major
developments in infrastructure, connectivity, housing and sanitation, "Mr. Badami said at the
AGM meeting, adding that he expects to increase demand for cement in line with GDP in the
next 3-5 years.

Acc cement production

This table and graph showing acc cement production for the year 2014 -16

Production 2016 2015 2014


Cement production 23.18million 23.84million 24.24million
Cement sales 22.99million 23.62million 24.21million
Capacity utilisation 73% 77% 78%

Analysis

From the above table it can be analysed in the year 2014 acc cement company capacity
utilisation is 78%. In the year 2015 acc cement company capacity utilisation is 77%. In
the year 2016 acc cement company utilisation is 73% respectively.

capacity utilisation

2016 23.18million
78% 73% 22.99million
2015 23.84million
23.62million
2014 24.24million
24.21million
77%

31
Interpretation

From the above table it can be interpretation that capacity utilisation of Acc cement company
has been declined. Due to some specify reason

Acc income statement (in crore)

This table and graph showing Acc cement income statement for the year
2014-16

particular 2016 2015 2014


Net sales 10936 11433 11481
Operating EBITDA 1417 1537 1507
Profit before tax 809 784 1135
Profit after tax 602 592 1168

Analysis

From the above table it can be analysed that net sales of the Acc cement company was 11481
crore in the year2014.In 2015 it was11433 crore.In 2016 it was 10936 crore respectively.

Graph showing net sales and profit after tax of Acc cement company.

12000
9911
10000 9368
9160

8000

6000

4000

1683 1928
2000 1531
1337
1172 970
808
0
Net sales operating EBIDA profit before tax profit ofter tax

32
Interpretation

From the above graph it can be interpreted that net sales and profit after tax of Acc cement
company has been slightly decreased due to some of its specified reasons.

Acc limited Balance sheet (in crore)

This table showing Acc cement balance sheet for the year2014-16

Particular 2016 2015 2014


Net worth 8661 8443 8236
Fixed asset 7723 7656 7513
Current asset 3810 3609 3485

Analysis

From the above balance sheet it can be analysed that net worth of Acc limited in the year
2014 it was 8236crore.in 2015 it was 8443cr.In 2016 it was 8661crore respectively.

Graph showing net worth of Acc limited company.

10000
8661
9000 8443 8236
7723 7656
8000 7513
7000
6000
Net worth
5000
3810 Fixed asset
4000 3609 3485
current asset
3000
2000
1000
0
1 2 3

33
Interpretation

From the above graph it can be interpreted that net worth of Acc limited company has been
increased. it is because effective sales strategy by the management.

AMBUJA CEMENT

Ambuja Cement Company is one of the leading


companies in the field of cement manufacturing in India and cement production started in
1986. In 2006, Company. Today, Holcim holds just over 50% of the shares in ACL.ssssss

An industrial accident at the Amboja Cement plant in Balodbazar district, Chhattisgarh, killed
five workers at the plant.

Local newspapers said the deaths occurred because a pack of fly ash was located on the fifth
floor and allegedly carried its capacity during a maintenance operation and collapsed and
crashed four floors below.

Government sources said the police had filed a case against the company's management while
ordering the government ministry of labor to close all factory operations until the
investigation was completed.

A six-member panel, headed by an additional collector of the Balodbazar district, was set up
to conduct an investigation, which will report within a week.

34
Government sources said Prime Minister Chhattisgarh Raman Singh had issued instructions
to the plant's management to provide compensation for the Ener 10 disaster to the relatives of
each victim and one of their family members.

The civil rights organization, the People's Union for Democratic Rights, also called for an
independent investigation into the industrial accident.

Ambuja cement income statement

This table showing Ambuja cement income statement

Particular 2016 2015 2014


Net sales 9160 9368 9911
Operating EBITDA 1683 1531 1928
Profit before tax 1337 1172 1783
Profit after tax 970 808 1496

Analysis

From the above income statement it can be analysed that net sales of ambuja cement was
9911 in the year 2014.In 2015 it Was 9368.In 2016 it was 9160 respectively.

Graph showing net sales and profit after tax Ambuja cement.

35
12000
9911
9368
10000 9160

8000

6000

4000
1928
16831531 1783 1476
1337
2000 1172
970 808
0
Net sales operating EBIDA profit before tax profit ofter tax

Ambuja cement Balance sheet(in crore)

This table showing Ambuja cement balance esheet for the year
2014-16

Particular 2016 2015 2014


Net worth 19074 10307 10103
Fixed asset 15289 12103 11429
Current asset 4109 6549 5995
Analysis

From the above balance sheet it can be analysed that ambuja cement net worth in the
year 2016 it was 19074crore. In the year 2015 it was 10307crore. In the year 2014 it was
10103crore respectively.

Graph showing net worth of the Ambuja cement.

36
7000
6412.21
6000
5228.41
4991.26
5000

4000 Net worth


Fixed asset
3000
2072.08 2029.19 current asset
1736.79 1922.57 1692.06
2000

814.39
1000

0
1 2 3

Interpretation

From the above graph it can be interpreted that net worth of the ambuja cement has been
increased slightly because of fixed asset of the company has been increased due to increase in
productivity of the company.

UltraTech Cement

Ultratech Cement was established in 2000 as Larsen &


Tobro Cement. It was later removed and acquired by Graysom and renamed Ultratech
Cement in 2004. Today Ultratech Cement, Aditya Birla Group and 60.3% of Graysom, is the
country's largest and the world's 8 largest cement company.

what's in a name? Asked Shakespeare. "That's what we call a rose, any other name will smell
as sweet."

37
With due respect to the great Christian, today's brand builders will place high bets on the
name. So when Aditya Birla acquired the L & T cement division, the main task was to re-
launch the products under the new brand name, and after making sure that the product values
such as quality and technological excellence remained unchanged. To this end, brand new
Ultratech cement has been launched throughout the major cities of India. Ultratech cement
replaces the brand name L & T Cement.

Mr. Kumar Manglam Birla, Chairman of Ultratech Cement Ltd., announcing the launch of
the new brand at a press conference, said, "Nothing but the name has changed, so basically,
what was previously L & T cement, Semantic. "

Ultratish's name was the result of in-depth research conducted throughout the country. Mr.
Birla said: "We wanted to reflect the DNA of L & T cement in the brand new name, our
research study indicated that in the customer mind, L & T stood for the quality, technology
and experience name Ultratech with the line of the" Select Engineer "tag skillfully captures
these Features. "
A campaign in the print and electronic media, as well as widespread use of banners,
communication rings and other communication channels, firmly entrenched the brand, and by
March 2005, will have more than 5,500 distributors and stores, 30,000 retailers nationwide,
On brand new.
"The excellent product quality and customer service is the hallmark of Ultratish," Mr. Birla
stressed. ULTRA is still manufactured at the previous L & T cement plants, which are now

38
acquired by Aditya Birla Group. It is located in the state of Gujarat (Kovaya and Gerabad),
Maharashtra (Western Uribur), Chattisgarh (Hermi) in central India and Andhra Pradesh
(Tadibatri) in southern India.
The plants are still supported by milling units in West Bengal (Durgapur), Uttaranchal /
Orissa (Kharsagoda), Tamil Nadu (Arkam), Gujarat (Magadala) and Maharashtra (Ratnagiri),
filling stations in the western ports of Mangalore in Karnataka and Mumbai in Maharashtra,
Sri Lanka.

The synergies between Ultratish Cement Ltd. and Aditya Birla Group have created the
world's eighth largest cement company. The two companies have a combined manufacturing
base of more than 31 million tons annually through 11 composite cement plants, 6 ready-mix
concrete plants, 7 grinding units, 3 main plants in India and 1 in Sri Lanka.
As Oltreesh Cement plants complement Grasim Industries Ltd., the Group has strengthened
its national position, with leadership in the cement industry in many states. Aditya Birla
Group is one of the top three players in 17 states, accounting for 75 per cent of the industry.
For the quarter ended September 30, 2004, Uterrach Cement announced revenue of Rs. 587.8
crores with profit after tax of Rs. 2.3 crore. Annual export growth was 22 per cent.
"I think Ultrach has the potential to grow at a faster pace than the market, and parallel
development of offshore headers through profitable export business will continue to be of
great importance," said Mr Birla.
With India's per capita consumption of cement declining - 102 kg compared with the world
average of 260 kg (China: 429 kg, Malaysia: 529 kg and South Korea: 951 kg) and the focus
on infrastructure development is an opportunity to ride the growth curve.

Ultra tech income statement(in million)

This table showing Ultra tech income statement for the year 2015-17

Particular 2016-17 2015-16 2014-15


Net sales 48.87 47.96 44.85
Operating EBIDA 5.629 5.107 4.567
Profit before tax 3.790 3.229 2.887
Profit after tax 3.776 3.299 2.887

39
Analysis

From the above income statement it can be analysed that net sales of ultra tech cement was
44.85 million in 2014-15.In 2015-2016 it was 47.96 million.In 2016-17 it was 48.87 million
respectively.

222.52 0

371.23

Net sales
operating EBIDA
profit before tax
profit ofter tax

3841.02

Interpretation

From the above income statement it can be analysed that net sales of ambuja cement has been
increased. it is because of effective sales strategy adopted by the company.

Ultra tech cement balance sheet (in million)

This table showing ultra tech cement balance sheet for the year 2015-17

Particular 2016-17 2015-16 2014-15


Net worth 23941 21632 18858
Fixed asset 24.382 24.499 23.632
Current asset - 64000 6374

40
Analysis

From the above balance sheet it can be analysed that net worth of ultra tech was 18858
million in the year 2014-15.In 2015-16 It was 21632.In 2016-17 it was 23941 respectively.

Graph showing Net worth of ultra tech cement

7000
6412.21
6000
5228.41
4991.26
5000

4000 Net worth


Fixed asset
3000
2072.08 2029.19 current asset
1736.79 1922.57 1692.06
2000

814.39
1000

0
1 2 3

Interpretation

From the above graph it can be interpreted that net worth of ultra tech has been increased
because of fixed asset of the company has been increased.

Jk Cement

Part of the JAC Group, JEC started cement

operations in 1975 in Rajasthan. Today, JQ Cement is one of the largest cement companies in

41
Northern India with a production capacity of 7.5 million tons per year. It is also the second
largest white cement manufacturer in India in terms of production capacity. While the
company sells mostly gray cement in the North India market, white cement is exported to
countries such as South Africa, Nigeria, Singapore, Bahrain, Bangladesh, Sri Lanka, Kenya,
Tanzania, UAE and Nepal, regardless of domestic sales. The company has high quality
limestone reserves to meet its requirements of gray and white cement for 4 decades.

J.K. CEMENT LTD is a subsidiary of J.K. The organization founded by Lala Kemapat
Senganya. For more than four decades, J.K. Cement has been involved in meeting the needs
of the multi-sectoral infrastructure in India thanks to strong product excellence, customer
orientation and technology leadership. The company has more than four decades of
experience in cement manufacturing. Our operations commenced with commercial
production at the first gray cement plant in Nimbahira, Rajasthan, in May 1975.
Subsequently, the company also established 2 additional units in Rajasthan in Mangrool and
Gautan. In 2009, the company expanded its business by establishing a green unit in the
Modabor district of Karnataka, allowing access to the markets of southwestern India. In
2014, the company also expanded its capacity in the north as Brownfield expanded from 1.5
integrated integrated units in Mangrool and split a grinding unit to 1.5 offices in Jajar.
Today's J.K. The cement company has a combined gray cement capacity of 10.5 million tons
per year, making it one of the leading companies in the country.

The company is the second largest white cement plant in India with an annual capacity of
600,000 tons in India. We are also the second largest manufacturer of wall paste in the
country with annual capacity of 700,000 tons annually. J.K. Cement was the first company to
install captive power plant in 1987 in Bamanya, Rajasthan. J.K Cement is also the first
cement company to install waste heat recovery waste plant to take care of the need for green
energy. Today, in its various locations, the company has a production capacity of more than
140.7 MW, of which 23.2 MW of heat-generating power plants.

The company launched its first international invasion by setting up a white cement factory
with gray cement in the Fujairah Free Trade Zone in the United Arab Emirates to meet the
needs of the GCC and African markets. The Fujairah plant has a production capacity of 0.6
million tons per year for white cement with a flexible change during its operation to produce
up to one million tons per year of gray cement. Commercial production started from Fujairah

42
plant from Sep'2014. However, JC Cement Ltd. is the second largest producer of white
cement in the world.

As part of its new initiatives, the company intends to increase the production capacity of the
wall paste to keep pace with increasing demand. In this direction, the company plans to offer
a capacity of 6 tons per ton in Katny in M.P. The first phase of the 2-tonne began at 25.5.16.

With the support of the latest technology, access to the best quality raw materials and highly
skilled workforce against the backdrop of India's infrastructure growth in excess, we are
optimistic about the future. Outstanding products, strong brand name, extensive marketing
and distribution network, and technical know-how represent the firm strengths of the
company.

JK cement Income statement (lakhs)

This table showing JK cement Income statement for the year 2014-17

Particular 2017 2016 2015 2014


Net sales 3796.42 3055.41 3357.17 2795.85
Operating EBIDA 343.75 143.13 159.15 136.27
Profit before tax 324.43 142.13 159.15 136.27
Profit after tax 259.58 101.54 156.15 97.03
Analysis

From the above income statement it can be analysed that net sales of JK cement was 2795.85
lakhs. in the year 2014. In the year 2015 it was 3357.17 lakhs.In the year 2016 it was 3055.41
lakhs.In the year 2017 it was 3796.5 lakhs respectively.

43
Graph showing net sales and profit after tax of the ultra tech

4500
3841.02
4000 3761.59 3692.17
3500
3000
Net sales
2500
operating EBIDA
2000
profit before tax
1500 profit ofter tax
1000
371.23 285 299.29
500 200.87
0
1 2 3 4

Interpretation

From the above graph it can be interpreted that net sales of the JK cement has been increased.
Due to adoption of effective sales strategy adopted by JK company.

JK cement balance sheet(lakhs)

This table showing JK cement balance sheet for the year 2014-17

Particular 2017 2016 2015 2014


Net worth 4471.89 3610.32 3408.52 2843.78
Fixed asset 3784.85 3643.24 3529.14 3414.55
Current asset 1420.19 1250.41 1381.48 1292.76
Analysis

From the above balance sheet it can be analysed that net worth of JK cement was 2843.78
lakhs in the year 2014.In the year 2015 itv was 3408.52lakhs. In the year 2016 it was
3610.32lakhs.In the year 2017 it was 4471.89 respectively.

44
Graph showing Net worth of JK cement

10000
9000 814.39
8000 1736.79 1692.06
7000
6000 current asset
5000 6412.21
5228.41 4991.26 Fixed asset
4000
Net worth
3000
2000
1000 2072.08 2029.19 1922.57
0
1 2 3 4

Interpretation

From the above graph it can be interpreted that net worth of the company.Due to increase in
fixed asset of the company.

Birla Cement limited

Birla Co., Ltd. is a leading manufacturer of M P Birla


Group. The company was originally founded as a Birla Jute Manufacturing Co., Ltd. in 1919.
The company has steadily transformed itself into a multi-product company. PCL operates
four section of cement, jute, phenolium and trimming car division. Cement alone accounts for
over 90% of the company's revenues.

MP Birla Cement presents "M P Birla and Nick" - developing a new "gold standard" in
premium cement with 9 unique benefits

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MP Birla Cement, a leader in the cement industry with more than 50 years experience in
cement manufacturing, is proud to offer its most superior display, 'MP Birla Unique' cement,
in Bihar. With its unique 9 benefits, In a distinct category.

Made of the finest raw materials, selected from the best sources in the country, manufactured
under strict quality control in the latest plants with cutting-edge technology, Nick is indeed a
"limited edition" cement meant for most discerning customers and their "unique" needs. In
recognition of the growing demand for this premium value-added cement for high-value and
high-value home builders in Bihar, Birla Cement has decided to bring Birla & Nick to the
country to provide a superior product and value.

Shree Sandeep Ranjan Goss, Chief Sales, Logistics and Marketing Officer, MP Birla
Semantis, spoke to the channel's partners and talked about the new Batel and Nick Batel and
Nick's new Cemeter C-Tak campaign in Batna on July 19, 2017.

Shri Pratshita Magumdar, Executive Director and Senior Management Advisor to the Group,
launched M P Birla "Home Building Guide". Available both in print and on-line, the guide is
a primer for home builders to make them aware of the different aspects of home building and
different types of building materials.

MP Birla and Nick Cement offers the following 9 benefits:

1. Improve the ability to work.

2. Low heat of humidification;

3. Chloride resistance;

4. Total alkaline reaction resistance;

5. Resistance sulphate;

6. Corrosion resistance;

7. Durability.

8. tampering packing manual;

9. Lighter and color for best aesthetic finish

Earlier, Nick was presented in a new look at Kolkata on July 6, 2017 by at least 500 channel
partners of Bengal and Jharkhand.

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With its long heritage as one of the oldest and most respected cement manufacturers of the
country, MP Birla Cement has always put the customer in the heart of business and has never
ceased to be just a supplier of quality cement. MP Birla Cement understands that building a
home is a work of love and investment of life. Therefore, Birla Cement does not stop at the
sale of cement only. This goes beyond and provides expert advice to consumers so they can
make the right decision while building their home. It accompanies the client along the way to
build a dream house - hence, its motto is C-gar Tak Cement.

MP Birla Cement Expert Services at the site for home builders not only advise but also
calculate costs, recommend correct type / grade of cement for diverse building requirements
and guide home building through critical steps during different stages of building super-
construction. MP Birla Cement's customer support services group has more than 100
qualified technicians field support engineers and more than 70 fully tested mobile building
test laboratories across the country.

1. To access Rep. Birla Customer Support Service Timedale: 8010 55 00 00.

Multimedia Campaign:

"The idea behind the GARC Cement campaign has emerged from research and insight that
has clearly shown a significant increase in customer participation, and building a home is a
work of love and investment. In addition, construction workers," said Shri Goose, referring to
the multimedia media campaign. They now have a greater awareness of the products, they are
more aware, but they are still looking for expert advice so they can make the right decision
while building their home. Understanding this need, Mp Perla Ciment has the development
and scope of customer support service to be the best in the classroom.

"The Birla Group is known for its heart and strength, and Birla Cement's on-site experts hope
to strengthen the cements it shares with its customers," said Shri Ghoss. "As opposed to other
cement campaigns, the GARC TAC campaign speaks directly to the final client on an
emotional level and is close to understanding their needs," he said. "We do not stop when
providing the best cement to customers to build a strong and long-term home, but we guide
them from there to help arm their dreams. Through this campaign, we reiterate our
commitment to the customer and stay step forward

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MP Birla cement income statement

This table showing MP Birla cement Income statement for the year2015-17

Particular 2016-17 2015-16 2014-15


Net sales 3841.02 3761.59 3692.17
Operation EBIDA 371.23 285 299.29
Profit before tax 222.52 200.87 212.88
Profit after tax 00 00 00

Analysis

From the above income statement it can be analysed that net sales of M birla cement was
3692.17 lakhs in the year 2014-15.In the year2015-16 it was 3761.59 lakhs.In the year 2016 -
17 it was 3841.02 lakhs respectively.

Graph showing net sales and profit after tax of MP birla cement

3841.02 3761.59

4000
3692.17

3500
3000
2500
Series1
2000
Series2
1500
1000 Series3
285299.29 200.21287.88
500 0 0
0
Net sales operating EBIDA profit before tax profit ofter tax

INTERPRETATION

From the above graph it can be interpreted that net sales has been increased in the year 2017
Due to effective sales strategy adopted by MP Birla cement.

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MP Birla cement balance sheet

This table showing MP Birla cement balance sheet for the year2015-17

Particular 2016-17 2015-16 2014-15


Net worth 2072.08 2029.19 1922.57
Fixed asset 6412.21 5228.41 4991.26
Current asset 814.39 1736.79 1692.06

Analysis

From the above analysis it can be analysed that net worth of MP birla cement was 1922.57 cr
in the year 2014-15.In the year 2015-2016 it was 2029.19 cr. In the year 2016-17 it was 2016-
17 it was 2072.08 cr respectively.

Graph showing net worth of the MP birla cement

100%
814.39
90% 1736.79 1692.06
80%
70%
60%
6412.21 current asset
50% 5228.41 4991.26
Fixed asset
40%
Net worth
30%
20%
10% 2072.08 2029.19 1922.57
0%
1 2 3

Interpretation

From the above graph it can be interpreted that net sales has been increased in the year 2017
Due to effective sales strategy adopted by MP birla cement.

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Pre and post cement rates after GST

Given the government's approach to infrastructure and related activities, cement producers
had hoped for a GST of 18%. Unfortunately, the sector was rated at the top of the tax palettes
by 28%, smashing these colored hopes.

But while cement manufacturers are disappointed and tax experts, analysts say that after
GST, the tax burden of cement players should be reduced. Tax experts said that in the pre-
GST system, the actual tax rate for packaged cement was in the range of 29-31 percent,
including indirect taxes such as production tax and value added tax. Tax rates vary across
states because taxes are imposed on whether the sale is for retail or wholesale use.

As for the main raw materials, the tax rates for coal, limestone and limestone were reduced to
5%. The exact impact of these changes on production costs will depend on the fuel mixture of
each cement player.

But for now, Sanghi Industries is based in Gujarat as the main beneficiary of the Lignite tax
cut. "With the rise in global coal prices, this cement maker has become strongly used for the
use of lignite, so we can expect savings on that front." The use of alginate in the March
quarter was 75%, and currently 28% tax on lignite, VAT, which will now be available, "the
report of the Antique Stock Report Limited.

However, the clean energy paid by coal companies on coal is still, as well as royalty paid to
state governments to exploit limestone.

In terms of storage, savings can be expected as cement companies move from multiple small
warehouses to small warehouses. But this will be a gradual process because companies
usually have a lease for warehouses. "Currently, cement players sell cement manufactured in
one state to the other usually establish warehouses in the case of sale.This is done in order to
avoid high taxes since the transfer of branches exempt from the central sales tax (ST) .In the
GST era there will be no commission "The quality of service, the time it takes to send cement
to customers, will be a key variable player that will be taken into account when deciding on
warehouse consolidation," said research director Crisil Rahul Brithiani.

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So the impact on companies will vary depending on the diversity of markets and the
trimming of logistics costs, on a larger scale.

On the other hand, the actual tax rate on services on goods transported by land through the
Agency for the carriage of goods after deduction of returns was 4.5 per cent. Under the new
tax regime, the GST rate will be applied by 5%. As cement operators demand a higher freight
tax, they do not expect any material difference in actual freight rates payable.

"The weighted average lead of cement is usually in the range of 300-500 km for most players
including us in the industry.Other taxes, the supply chain costs that include transport,
handling, storage, documentation, etc. range from about 20-30% of total Expenses, "said Dr.
Shilendra Chuksi, general manager of JK Lakshmi Cement, to Mint. A final decision on
electronic road bills is expected, which will affect logistics costs, particularly for players
across India.

Analysts concluded that cement manufacturers typically resort to higher prices during this
period of the year, but this time may not occur. Apart from the seasonal slowdown in quitting
smoking, other factors such as uncertainties about the quantum of the GST effect on balance

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sheets and the fear that the government will mark cement prices would discourage companies
from raising prices.

Findings

• A total of 188 large cement plants account for 97 per cent of the total installed capacity in
the country, while the remaining 365 are small. Of the 188 large cement plants in India, 77
are in Andhra Pradesh, Rajasthan and Tamil Nadu.

• According to the 12th Five-Year Plan, cement production in India is expected to reach 407
million tonnes by fiscal year 2017.

• Dalmaia Cement Company Limited became the first cement company in India to commit to
100% renewable energy. The company plans to increase its capacity from 2.4 metric tons to
15-20 metric tons by 2021 with an investment of US $ 1.27 billion.

• The Government of India is strongly focused on developing infrastructure to promote


economic growth and targeting 100 smart cities.

• Plans to increase investment in infrastructure to US $ 1 trillion in the 12th Five-Year Plan


(2012-2017).

• The Government is also planning to expand rail and handling facilities to facilitate cement
transportation and reduce transport costs.

• These measures will lead to increased construction activity and thus increase demand for
cement.

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Suggestions

 They should not increase their rate according to the their view point. They have take
care of GDP and also they have look project customer attract for a cement
 They should look after the competition and try to overcome price rate and also attract
the customer and make the customer loyal to their cement
 Acc cement has replace the price drastically match with GDP price but other cement
product have not reduce that price they have increase the price. So the customer are
now opting for those product who’s price is equal to that of GDP

Learning experience
The study titled “GST IMPACT ON CEMENT INDUSTRY” helped me to understand the
difficulties faced by the INDUSTRY. Post suit of Tax problem. It also gave me how the
industry should be concern towards their customers even after sales. In case if any problem
occurred because of cement, the industry has to compensate for the same, It also gives me to
create awareness about the Tax problem of cement industry.

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CONCLUSION
 These cement company are involved in creating multiple rates will be done away
with under GST. Only a fixed rate of 28% will apply on cement. These cement
company should not take the advantange of GST and should not cheat the people
 So only government has fixed percentage on cement so that no cheating happens in
cement case
 This will result in lesser compliances and less complexity.
 All these put together may reduce the operating costs for the cement industry in the
future. However, reduction in costs for the end-consumer will occur only if the
cement companies pass on their savings to the consumers

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BIBLIOGRAPHY

http://www.jkcement.com/ -company

http://www.ultratechcement.com/

http://www.ambujacement.com/

http://www.birlacorporation.com/cement_division.html

http://www.acclimited.com/newsite/index.asp

www.moneycontrol.com

www.clearTax .in.com

www.thehindubusinessline.com/news/real-estate/gst...cement.../article9708187.ece

economictimes.indiatimes.com › Industry › Ind'l Goods/Svs › Cement

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