Quick Links. Click to navigate directly to analyze cost structure of cement industry & major players:
- Cost Structure of Cement Industry
- Ultratech Cement – Cost Structure
- Shree Cement – Cost Structure
- Ambuja Cement – Cost Structure
- ACC Ltd – Cost Structure
- The Ramco Cements – Cost Structure
Recent Facts about Cement Industry
- India is the second largest cement producer in the world and accounts for over 8 per cent of the global installed capacity, as of 2018.
- The top 20 companies accounting for around 70 per cent of the total production.
- Moreover, of the total 210 large cement plants in India, 77 are situated in the states of Andhra Pradesh, Rajasthan & Tamil Nadu.
- In addition, 210 large cement plants account for a cumulative installed capacity of over 410 million tonnes.
- While over 350 mini cement plants have an estimated production capacity of nearly 11.10 million tonnes.
- Two cost saving recently emerging in the industry:
(a) 15% busy season surcharge for transportation of cement via railways withdrawn during October-June.
(b) Secondly, the Indian Railways removes 5% freight charges on loading mini rakes.
- Thus, companies with higher dependence on railways, likely to benefit.
- Main cost ingredients impacting the cement industry’s margins:
(a) Limestone, slag, iron ore, aluminous clay and fly-ash.
(b) Commodities’ prices – petroleum coke, thermal coal and diesel prices.
Cost Structure of Cement Industry
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The cost structure above is as per the latest financial statements of all listed Cement Companies.
Cost Structure of Top 5 Players of Cement Industry
1. Ultratech Cement
2. Shree Cement
3. Ambuja Cement
4. ACC Ltd
5. The Ramco Cements
*Note: The figures above are from latest Financial Statements by the respective companies.
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Disclaimer: The report only represents personal opinions and views of the author. No part of the report should be considered as recommendation for buying/selling any stock. The report & references mentioned are only for the information of the readers about the industry stated.