2. Cement Industry – An
Introduction
• India, being the second largest cement
producer in the world after China with a
total capacity of 151.2 Million Tones (MT),
has got a huge Cement Company.
• The cement industry in India is dominated by
around 20 companies, which account for
almost 70% of the total cement production
in India.
3. Cement Industry – An Introduction
• It is also predicted that the cement production in
India would rise to 236.16 MT in FY11. It's also
expected to rise to 262.61 MT in FY12.
5. Definitions
• PV Ratio - The Profit Volume (PV) Ratio is
the ratio of Contribution over Sales. It
measures the Profitability of the firm and is
one of the important ratios for computing
profitability.
• Fixed Cost - A cost that does not change
with an increase or decrease in the amount
of goods or services produced.
6. Definitions
• Variable Cost - A corporate expense that
varies with production output.
• Contribution Per Unit -
A quantitative assessment of
the amount that each good or service sold
by a company adds to its
total sales numbers.
• BEP - Point at which gains equal losses.
8. UltraTech Cement
• UltraTech Cement Limited is among the
world’s top 10 cement companies.
• The company has an annual capacity of 48.8
million tonnes, and manufactures and
markets ordinary Portland Cement,
Portland blast furnace slag cement and
Portland Pozzalana Cement.
9. UltraTech Cement
• The company has eleven integrated plants,
one white cement plant, twelve grinding
units and five terminals — four in India and
one in Sri Lanka.
10. UltraTech Cement
Variable cost 6475.49 4774.93 4491.38 3614.69 3307.28
Production Quantity (Cr.
3.36 1.76 1.59 1.51 1.46
Tonne)
Variable cost PU 1929.24 2707.03 2831.18 2398.76 2259.84
Variable cost (%) 60.35% 70.98% 73.12% 71.03% 70.43%
Fixed Cost 4253.90 1952.43 1651.15 1474.60 1388.81
Fixed Cost (%) 39.65% 29.02% 26.88% 28.97% 29.57%
Contribution 6730.15 2267.89 1894.12 1897.74 1601.77
Contribution (%) 50.96% 32.20% 29.66% 34.43% 32.63%
Contribution PU 2005.11 1285.72 1193.97 1259.37 1094.48
P/V Ratio 0.51 0.32 0.30 0.34 0.33
BEP in unit 2.12 1.52 1.38 1.17 1.27
BEP in volume 8346.84 6063.17 5566.39 4283.32 4256.38
Margin of Safety 1.23 0.25 0.20 0.34 0.19
Margin of Safety (%) 58.21% 16.16% 14.72% 28.70% 15.33%
12. JK Cement
• J.K. Cement is an affiliate of the J.K.
Organization, which was founded by Lala
Kamlapat Singhania.
• Today, J. K. Cement Ltd. is one of the largest
cement manufacturers in Northern India.
15. Madras Cement
• Madras Cements Ltd is the flag ship
company of RamCo Group, a well known
business group of South India. It is based at
Chennai.
• The cement capacity is 10.49 million tons
per annum.
• The company is the fifth largest cement
producer in the country.
18. India Cement
• The India Cements Ltd was established in
1946 and the first plant was setup at
Sankar-Nagar in Tamil-Nadu in 1949.
• Seven plants spread over Tamil-Nadu and
Andhra Pradesh.
• The capacities as on March 2010 have
reached 14.05 mtpa.
21. ACC Cement
• Established in 1936, ACC has been a
pioneer and trend-setter in cement and
concrete technology.
• Among the first companies in India to
include commitment to environment
protection as a corporate objective.
• ACC is now part of the worldwide Holcim
