Porter five force analysis

Source: CRISIL Research

Industry structureTotal installed cement capacity in India stood at 370-375 million tonnes, as of March 2014.

This document is being provided for the exclusive use of Harshad Sachani at Indian Institute of Management IndoreNo part of this Report may be published/reproduced/distributed in any form without CRISIL's prior written approval

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Region-wise installed capacity (2013-14)

Source: CRISIL Research

The domestic manufacturers can broadly be bucketed into pan-India, regional and standalone players. Pan-India players are large players like HolcimGroup companies - ACC and Ambuja, and Aditya Birla Group company - UltraTech Cement (including Samruddhi Cement). Players whose presence isrestricted to one or two regions are categorised as regional players. Key players included in this segment are Jaiprakash Associates (North andCentral), Lafarge (concentrated in the East), India Cement (South), Shree Cements (North), Binani Cement (North), Kesoram Industries (South), Chettinad Cement (South), Dalmia Cement (South) and Madras Cement (South). Players like Panyam Cement, Penna Cement, etc are operational infew states within a region. Owing to their largely local reach, these players are classified as standalone players.

Consolidation in cement industryThe Indian cement industry is highly fragmented with a presence of few large players and several small players. However, the top two players - HolcimGroup and Aditya Birla Group - account for around 35 per cent of the total market share.

This document is being provided for the exclusive use of Harshad Sachani at Indian Institute of Management IndoreNo part of this Report may be published/reproduced/distributed in any form without CRISIL's prior written approval

Over the past decade many large mergers and acquisitions have taken place in the Indian cement industry. Some have been in the form of globalcompanies acquiring domestic players, whereas others have been domestic companies looking to consolidate their market position. With cementdemand having weakened in the last two years, consolidation in the domestic market was more prevalent. Since demand growth is likely to pick up onlygradually from current levels, further consolidation in the industry is likely.

Key mergers and acquisitions in cement industry

Cement plants sold/ acquired in 2013-14

Source: CRISIL Research

n.a.: Not available

This document is being provided for the exclusive use of Harshad Sachani at Indian Institute of Management IndoreNo part of this Report may be published/reproduced/distributed in any form without CRISIL's prior written approval

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