The major industry contributing
to the socio-economic development of the nation is the cement industry. With a total capacity of
252 million tons, India has emerged as the world's second largest producer of
cement. Cement production during April to January 2009-10 was Rs 130.67
mn tons as compared to Rs 115.52 mn tons during the same period for the
year 2008-09. Dispatches were at 129.97 million tons during April to
January 2009-10 whereas during the corresponding period of the year 2008-09,
it stood at 115.07 million tons.
According to The Analyst 500 ranking based on
net sales, the ACC Cements Ltd., grabbed the
64th rank and topped the league charts in the
Indian cement sector with net income of Rs 8,002.48 cr and market cap of
Rs 16,364.29 cr. Ambuja Cement Ltd., with net income of Rs 7,155.51 cr
and market cap of Rs 16,823.08 cr stood in the
71st position. And UltraTech Cement Ltd., ranked 72 in the list with
net income of Rs 7,082.04 cr and market cap of Rs 13,403.96 cr.
The cement production during the financial year 2009-10 increased
by 10.8% on a year-on-year basis while consumption rose at an average
growth rate of 12.5%. The consumption of cement in the country is largely driven
by the governments increased thrust on infrastructure and the housing and
construction business that is propelling the cement industry with an
annual growth of 9-10% in 2010. The housing sector accounts for 50% of the
cement's demand in the country. In the budget 2010-11, the government has given
an upper hand for infrastructure development by allocating $37.4 bn and also
on the development of roads by 13% i.e., $4.3 bn. The
ministry of road transport and highways has set a target
of $354 bn to build roads by 2012. Indian road network is the second largest
in the world, with 3.3 million kms of road network. The century old industry is
on the rise in the recent past, domestic consumption being the driving force
behind its growth. The northern regions of the nation are the most lucrative
markets in terms of cement consumption and is putting forth opportunities to both
the domestic and global players.
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