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 was 420 MT in March 2017, with a growth of 6% per year. The capacity 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: Shree Cement (SCL), belonging to BG Bangur – H M Bangur faction of the Bangur family of Kolkata, is engaged in cement manufacturing and power generation. SCL’s eight cement plants in Rajasthan and one grinding unit in Uttrakhand have an aggregate capacity of 13.5 mn tonnes p.a.

Shareholding Pattern: BSE Data

Financials and Ratios  :  [table id=110 /]

Future prospectus: The cement sector is going from significant change. Ambuja ACC cement merger is expected to take place in the future. Ultratech recent takeover the Cement business of JP associate. Lafarge cement sold a business in India. Shiva cement, the listed company, was acquired by JSw cement. Now Binani, the debt leaden company part of 12 accounts referred to as NCLT, is ready to sell out. Many big companies are interested in it. The cement industry was in the wrong time due to many reasons like debt and other problems in the Infrastructure sector. Now, as some green shoots are visible in the economy, the Cement industry is expected to do well.