Industry Profile: Cement production in India from FY 07 to FY 17grow at 9.75% CAGR. Due to many reasons, the Demand growth rate for cement is outpacing supply growth in FY 16. After China (2483.18 million tonnes), India is the second-largest cement producer (285.83 million tonnes). However, the difference is enormous. A lot of untapped infrastructure potential and the development of 100 smart cities is a sufficient considerable boost for the Cement Sector. Demand for cement is from the Housing sector at 67%, infrastructure at 13%, Commercial constriction at 11%, and Industrial construction at 9%. The cement manufacturing capacity of India is 420 MT in march 2017, with a growth of 6% per year. The ability of cement is mainly in the hands of a few plants. 188 large cement plants are manufacturing 98% cement, 365 plants accounting for the remaining. Andhra Pradesh, Rajasthan, and Tamilnadu account for 77 large plants out of 188. As per analyst estimates, India will be the leading exporter of gray cement to the Middle East in the next ten years.
Company Profile: The company is among the significant cement and clinker manufacturers in India and for export. The company operates in the Business to Business segment and also the retail part. The company also has ready mix products for special needs and demand. It also manufactures Ambuja plus products specially made for Roof. The company also holds brands like al confine for Metro rail, Dam, flyover, road, and Bridge tunnel. In addition, the company manufactures cement for Rail by taking care of their unique needs.
Share Holding: BSE Data.
Financials and Ratios : [table id=58 /]
Future Prospects: For a developing economy like India where govt is trying to give houses to everyone and where large infrastructure projects are also in progress, it’s not shocking that the Cement sector is a hot favorite. The birth of the 29th state in India, Telangana, and its capital is an ample opportunity.
