Cement Industry Cost Structure

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  (a) 15% busy season surcharge for transportation of cement via railways withdrawn during October-June.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

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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.

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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.