CEMENT INDUSTRY

SOJITRA JIGNESH
KOTADIYA VISHAL
KAKADIYA PINAL
SHINGALA NAGJI
CHAVDA MITAL
AMBALAM SARANYA
AMBUJA
CEMENT
Cement in India
A Cyclical Business of Supply
Not Demand
Cement Industry - A Paradigm
Shift
No new cement plants in next two years
Demand supply gap likely to be over in
the next couple of months
Consolidation is well on its way to bring
stability in pricing
Future Demand to be much higher on
account of building of Roads, Ports &
other infrastructure
Housing becoming a major activity in the
economy
Due to
Low Interest Rates
Availability of mortgage finance due to
ample liquidity
Increasing disposable Income
During Calendar year 2011 Cement demand
supply will balance A situation not seen in
past several years
GEOLOGY (RAW MATERIALS)
The fundamental chemical compounds to produce cement clinker are:
Lime (CaO)
Silica (SiO
2
)
Alumina (Al
2
O
3
)
Iron Oxide (Fe
2
O
3
)

Fly ash: by-product of burning finely grounded coal either for industrial
application or in the production of electricity
Raw materials used in the production of clinker cement
THE CEMENT MANUFACTURING PROCESS
1. BLASTING : The raw materials that are used to manufacture cement (mainly limestone and clay) are blasted
from the quarry.
Quarry face
1. BLASTING 2. TRANSPORT
3. CRUSHING AND TRANSPORTATION : The raw materials, after crushing, are
transported to the plant by conveyor. The plant stores the materials before they are
homogenized.
quarry
3. CRUSHING &
TRANSPORTATION
2. TRANSPORT : The raw materials are loaded into a dumper.
crushing
conveyor
dumper
storage at
the plant
loader
THE CEMENT MANUFACTURING PROCESS
1. RAW GRINDING : The raw materials are very finely ground in order to produce the raw mix.
1. RAW GRINDING
Raw grinding and burning
2. BURNING
2. BURNING : The raw mix is preheated before it goes into the kiln, which is heated by a flame that can
be as hot as 2000 C. The raw mix burns at 1500 C producing clinker which, when it leaves the kiln, is
rapidly cooled with air fans. So, the raw mix is burnt to produce clinker : the basic material needed to
make cement.
conveyor
Raw mix
kiln
cooling
preheating
clinker
storage at
the plant
Raw mill
THE CEMENT MANUFACTURING PROCESS
1.GRINDING : The clinker and the gypsum are very finely ground giving a pure cement. Other secondary
additives and cementitious materials can also be added to make a blended cement.
1. GRINDING
Grinding, storage, packing, dispatch
2. STORAGE, PACKING, DISPATCH
2. STORAGE, PACKING, DISPATCH :The cement is stored in silos before being dispatched either in
bulk or in bags to its final destination.
clinker
storage
Gypsum and the secondary additives are added
to the clinker.
silos
dispatch
bags
Finish grinding
Our Business Model
Own Infrastructure -Logistics
Management
Strong brand & efficient distribution
Presence in prime markets
Lowest cost cement producer
Own Infrastructure
7 Owned Cement Ships for transporting
Cement by Sea
Large port in Gujarat to handle export of
Cement ( 2 mn tonnes this year) &
Import of Coal / Oil
3 Cement receiving terminals
190 MW of Captive Power Plants at
various Cement Plants to give reliable and
cheap power
Strong Brand
India - A bagged market
Individual home builder - key driver of
demand
Our focus
Best quality cement
Good packaging
Logistic management - strong distribution
network
Customer service

Uses

Main use is in the fabrication of concrete and mortars

Modern uses
Building (floors, beams, columns, roofing, piles, bricks,
mortar, panels, plaster)
Transport (roads, pathways, crossings, bridges,
viaducts, tunnels, parking, etc.)
Water (pipes, drains, canals, dams, tanks, pools, etc.)
Civil (piers, docks, retaining walls, silos, warehousing,
poles, pylons, fencing)
Agriculture (buildings, processing, housing, irrigation)
USES


Sea terminals
Cement factories
HP
Gujarat
Rajasthan
Maharashtra
Punjab
Ambuja Cement
Gujarat 5.0
North India 6.0
Maharashtra 3.0
Total Capacity 14.0

Mn. tonnes
1986 - 0.7 Mn. Tonnes
Today - 14 Mn. Tonnes
A growth of 18 times since
inception
FACILITY LOCATION
Availability of transportations facility.
Availability of market.
Availability of services

But
Cement Industry
Not without challenges
Challenges

Cement is energy intensive industry
Coal, Power & Oil constitute major costs
Increasing cost of fuel
Better realisation only in few markets

Growth in Profits for only those
who can meet these Challenges

Our Strategy
Presence in the growing markets of North
& West
Retail Focus Premium pricing
Largest Exporter of cement 15% of
Production
35% Cement transport by sea - Cheapest
Mode
And ... Lowest Cost Cement Producer