About Madras Cements

Madras Cements, a company that belongs to the Ramco Group is one of the prominent
names in cement industry in South India. Established in 1987, at Vijaywada in Andhra
Pradesh it is a fully computerized cement producing company through the five units
located in various parts of South India. It is the fifth largest cement producing company
in India having the capacity to manufacture 10 million tons per annum. The company
continuously strives to improve its efficiency through the use of technology, quality,
renewal and customer centric operations. The company uses the most advanced
technology to manufacture cement of the highest quality for its clients spread across
various parts of India and the world.

Madras Cements ranks among the leading manufacturers of cement in India

and is one of the few companies which manufacture cement at a very economical rate.
The company has its own captive power plant that runs on gas and a 20 mega watt power
generator. It looks to update the organization practices on a regular basis to uphold the
culture of professional management in the company. The major exporters of Madras
Cements are Iran and Sri Lanka.

Madras Cements Factories

Madras Cements Limited or MCL began its operations in 1962 with 200 TPD. The first
1200 TPD dry plant was commissioned by the company in 1976. The five plants of the
company that operates with a total capacity of 8 MTPA are:

• Mathod, Karnataka (0.2 MTPA)

• Ariyalur, Tamil Nadu (2.0 MTPA)
• Alathiyur, Tamil Nadu (3.0 MTPA)
• R R Nagar, Tamil Nadu (1.2 MTPA)
• Jayanthipuram, Andhra Pradesh (3.6 MTPA)

The company's plant at Jayanthipuram began operations in 1988 with a capacity of 2500
TPD; it was upgraded to a capacity of 3200 TPD in 1992. This plant is equipped with a
modern computer based quality control system.

Madras Cements Technology

Madras Cements Limited makes use of the latest technology and equipment for all the
production purposes. The company has been a trend setter of sorts in adopting state-of-
the-art methods for the manufacture of cement, ready mix concrete and dry mortar
products. Some of the technologies used by MCL are listed below:

Pre-calciner technology
•
•Surface Mining Technology
• Vertical Mills for Cement Grinding
• Advanced X-Ray technology for Quality Control
 • Latest and highly effective ESPs and Bag filters
• Most Modern Programmable Logic Controllers (PLC)
• The FUZZY Logic Software System for process Controls

The Ramco Research and Development Centre was started in 2002 with an aim to
conduct research in the fields of cement technology and modern construction practices.
Situated near Chennai, the centre is equipped with a state-of-the-art laboratory and other
associated services. Experienced scientists and technicians conduct research to improve
the quality of cement and give better results to customers.

Madras Cements Awards

Madras Cements has won several wards and recognitions over the years. Some of them
are The 4 Leaves Award given by Centre for Science and Environment, the Best Energy
Efficient Unit from National Council for Cement and Building Materials, Corporate
Performance Award by Economic Times, National Award for Energy Conservation from
Confederation of Indian Industries, the Best Improvement in Energy Performance from
International Congress on Chemistry of Cement and The Analyst Award given by The
Institute of Chartered Financial Analysts of India.

Madras Cements Products

Madras Cements is mainly involved in the manufacture of Portland cement. Other than
this, the company also produces dry mortar products and ready mix concrete. Madras
Cements uses the modern dry process technology for all its expansion projects while the
dust extraction and suppression system is used to control the fugitive emissions.

Address:
Madras Cements Ltd.
Auras Corporate Centre
98-A Dr. Radhakrishnan Salai
Mylapore, Chennai - 600 004
Phone No: 044 - 28478666, 28478656
Fax No: 044 – 28478676
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• Last Updated On: October 22, 2010

Home » Cement Industry in India

Cement Industry in India

India, being the second largest cement producer in the world after China with a
total capacity of 151.2 Million Tones (MT), has got a huge cement industry. With the
government of India giving boost to various infrastructure projects, housing facilities and
road networks, the cement industry in India is currently growing at an enviable pace.
More growth in the Indian cement industry is expected in the coming years. It is also
predicted that the cement production in India would rise to 236.16 MT in FY11. It's also
expected to rise to 262.61 MT in FY12.

The cement industry in India is dominated by around 20 companies, which

account for almost 70% of the total cement production in India. In the present year, the
Indian cement companies have produced 11 MT cement during April-September 2009. It
took the total cement production in FY09 to 231 MT.

Industry Background

The history of the cement industry in India dates back to the 1889 when a Kolkata-based
company started manufacturing cement from Argillaceous. But the industry started
getting the organized shape in the early 1900s. In 1914, India Cement Company Ltd was
established in Porbandar with a capacity of 10,000 tons and production of 1000 installed.
The World War I gave the first initial thrust to the cement industry in India and the
industry started growing at a fast rate in terms of production, manufacturing units, and
installed capacity. This stage was referred to as the Nascent Stage of Indian Cement
Industry. In 1927, Concrete Association of India was set up to create public awareness on
the utility of cement as well as to propagate cement consumption.

The cement industry in India saw the price and distribution control system in the year
1956, established to ensure fair price model for consumers as well as manufacturers.
Later in 1977, government authorized new manufacturing units (as well as existing units
going for capacity enhancement) to put a higher price tag for their products. A couple of
years later, government introduced a three-tier pricing system with different pricing on
cement produced in high, medium and low cost plants.

Cement industry, in any country, plays a major role in the growth of the nation. Cement
industry in India was under full control and supervision of the government. However, it
got relief at a large extent after the economic reform. But government interference,
especially in the pricing, is still evident in India. In spite of being the second largest
cement producer in the world, India falls in the list of lowest per capita consumption of
cement with 125 kg. The reason behind this is the poor rural people who mostly live in
mud huts and cannot afford to have the commodity. Despite the fact, the demand and
supply of cement in India has grown up. In a fast developing economy like India, there is
always large possibility of expansion of cement industry.

Cement Industry in India

• Jobs in Cement Industry

• L & T Cement Plants
• ACC Ltd. Cement Plants
• CCI Cement Plants
 • Export of Indian Cement
• Types of Cement in India
• Gujarat Ambuja Plants in India
• Top 10 Companies
• Top 10 Cement Companies
• Mangalam Cement
• J K Lakshmi Cement
• J K Cement
• Madras Cement
• India Cements
• Sanghi Industries
• Dalmia Cement
• ITD Cementation India
• Dalmia Cement Bharat
• Gujarat Ambuja Cements

Cement Production and Growth

Domestic demand plays a major role in the fast growth of cement industry in India. In
fact the domestic demand of cement has surpassed the economic growth rate of India.
The cement consumption is expected to rise more than 22% by 2009-10 from 2007-08. In
cement consumption, the state of Maharashtra leads the table with 12.18% consumption,
followed by Uttar Pradesh. In terms of cement production, Andhra Pradesh leads the list
with 14.72% of production, while Rajasthan remains at second position.

The production of cement in India grew at a rate of 9.1% during 2006-07 against the total
production of 147.8 MT in the previous fiscal year. During April to October 2008-09, the
production of cement in India was 101.04 MT comparing to 95.05 MT during the same
period in the previous year. During October 2009, the total cement production in India
was 12.37 MT compared to a production of 11.61 MT in the same month in the previous
year. The cement companies are also increasing their productions due to the high market
demand. The cement companies have seen a net profit growth rate of 85%. With this
huge success, the cement industry in India has contributed almost 8% to India's economic
development.

Technology Up-gradation

Cement industry in India is currently going through a technological change as a lot of

upgradation and assimilation is taking place. Currently, almost 93% of the total capacity
is based entirely on the modern dry process, which is considered as more environment-
friendly. Only the rest 7% uses old wet and semi-dry process technology. There is also a
huge scope of waste heat recovery in the cement plants, which lead to reduction in the
emission level and hence improves the environment.

Cement Despatches

Cement industry in India has successfully maintained almost total capacity utilization
 levels, which resulted in maintaining a 10% growth rate. In 2006-07, the total despatch
was 155 MT, which rose up to 170 MT in 2007-08. The month of October 2009 saw a
cement despatch of 12.22 MT, which was almost 9% higher than the total cement
despatch of 11.21 MT in the same month in the previous year.

2008-09 (Apr-Oct) (in MT) 2007-08 (Apr-Oct) in MT

Production 101.04 95.05
Despatches (Excluding Export) 100.24 94.33
Export 1.46 2.16
Capacity Utilization (%) 85 93

Major Players in Indian Cement Industry

There are a number of players prevailing in the cement industry in India. However, there
are around 20 big names that account for more than 70% of the total cement production
in India. The total installed capacity is distributed over around 129 plants, owned by 54
major companies across the nation.

Following are some of the major names in the Indian cement industry:

Company Production Installed Capacity

ACC 17,902 18,640
Gujarat Ambuja 15,094 14,860
Ultratech 13,707 17,000
Grasim 14,649 14,115
India Cements 8,434 8,810
JK Group 6,174 6,680
Jaypee Group 6,316 6,531
Century 6,636 6,300
Madras Cements 4,550 5,470
Birla Corp. 5,150 5,113

Mergers and Acquisitions in Cement Industry in India

 • UltraTech Cement is going to absorb its sister concern Samruddhi Cement to
become biggest cement company in India.
• World's leading foreign funds like HSBC, ABN Amro, Fidelity, Emerging Market
Fund and Asset Management Fund have together bought 7.5% of India Cements
(ICL) at a cost of US$ 124.91 million.
• Cimpor, a Cement company of Portugal, has bought 53.63% stake that Grasim
Industries had in Shree Digvijay Cement.
• French cement company Vicat SA bought 6.67% share of Sagar Cement at a cost
of US$ 14.35 million.
• Holcim now holds 56% stake of Ambuja Cement. Previously it held 22% of stake.
The company utilized various open market transactions to increase its stakes. It
invested US$ 1.8 billion for that.

Recent Investments in the Indian Cement Industry

• In a recent announcement, the second largest cement company in South India,

Dalmia Cement declared that it's going to invest more than US$ 652.6 million in
the next 2-3 years to add 10 MT capacity.
• Anil Ambani-led Reliance Infrastructure is going to build up cement plants with a
total capacity of yearly 20 MT in the next 5 years. For this, the company will
invest US$ 2.1 billion.
• India Cements is going to set up 2 thermal power plants in Andhra Pradesh and
Tamil Nadu at a cost of US$ 104 billion.
• Anil Ambani-led Reliance Cementation is also going to set up a 5 MT integrated
cement plant in Maharashtra. It will invest US$ 463.2 million for that.
• Jaiprakash Associates Ltd has signed a MoU with Assam Mineral Development
Corporation Limited to set up a 2 MT cement plant. The estimated project cost is
US$ 221.36 million.
• Rungta Mines (RML) is also planning to invest US$ 123 million for setting up a 1
MT cement plant in Orissa.

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