The cement industry comes under consumer cyclical group. It’s a commodity type industry.

Industry Strengths

Usually a good domestic demand at all times for cement.
Constant modernization and implementation of latest technologies in the manufacturing plants.
Lack of international competition due to high transport cost in India.

Industry Weakness

Cement is an energy intensive industry as due to heavy usage and volatile price of coal and crude.
Unavailability of railway tracks to transport material especially during peak traffic months.
Excessive capacity faced in the industry.
High cost for transporting goods through road due to rise in crude oil prices.

Growth Drivers

Domestic economic growth that leads to rise in income levels as well as boom in the construction sector.
Growth in the civil construction as well as real estate industry augers well for the cement Industry.

UltraTech Cement Limited is engaged in the business of cement and cement-related products. Its cement capacity of 69mtpa (including ETA Star and the recently acquired 4.8mtpa of cement assets in Gujarat from JPA), 754 MW thermal captive power plants (that meets ~80% of requirement) with pan-India presence aggregating to market share of ~19%.

Grasim, the flagship company of the AV Birla Group, is a majority shareholder in UTCL with 60.3% ownership.

It has over 10 integrated cement units, approximately 10 grinding units, a white cement unit, a wall care putty, over five bulk terminals and over 100 ready mix concrete units.

Segments and Products

The Company manufactures a range of products that cater to construction needs from foundation to finish, including Ordinary Portland Cement (OPC), Portland Blast Furnace Slag Cement (PSC), Portland Pozzolana Cement (PPC), white cement and white cement-based products, ready mix concrete, including specialty concrete, building products, such as aerated autoclaved concrete (AAC) blocks and joining mortars and a host of others in retail formats.

Its geographical segments include India and Rest of the World. The Company focuses on various areas, including alternative fuels, waste heat recovery systems, carbon dioxide emission reduction, waste management, water re-cycling and bio-diversity management.