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
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.
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.