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(a) 15% busy season surcharge for transportation of cement via railways withdrawn during October-June.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
Click to enlarge the image
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.
To know about our investment advisory services and to place your enquiries: Drop us a mail at – email@example.com or Visit pawealthadvisors.com
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.