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INDUSTRY & SERVICES

CEMENT

An Overview

Cement is one of the core industries which plays a vital role in the growth and expansion of a nation. It is basically a mixture of compounds, consisting mainly of silicates and aluminates of calcium, formed out of calcium oxide, silica, aluminium oxide and iron oxide. The demand for cement, depends primarily on the pace of activities in the business, financial, real estate and infrastructure sectors of the economy. Cement is considered preferred building material and is used worldwide for all construction works such as housing and industrial construction, as well as for creation of infrastructures like ports, roads, power plants, etc. Indian cement industry is globally competitive because the industry has witnessed healthy trends such as cost control and continuous technology upgradation.

The Indian cement industry is extremely energy intensive and is the third largest user of coal in the country. It is modern and uses latest technology, which is among the best in the world. Also, the industry has tremendous potential for development as limestone of excellent quality is found almost throughout the country.

Current Scenario

The Indian cement industry is the second largest producer of quality cement. Indian Cement Industry is engaged in the production of several varieties of cement such as Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), Portland Blast Furnace Slag Cement (PBFS), Oil Well Cement, Rapid Hardening Portland Cement, Sulphate Resisting Portland Cement, White Cement, etc. They are produced strictly as per the Bureau of Indian Standards (BIS) specifications and their quality is comparable with the best in the world.

The industry occupies an important place in the national economy because of its strong linkages to other sectors such as construction, transportation, coal and power. The cement industry is also one of the major contributors to the exchequer by way of indirect taxes.

Facts of Indian Cement Industry

  • The Industry recorded an exponential growth with the introduction of partial decontrol in 1982 culminating in total decontrol in 1989.
  • India ranks second in world cement producing countries.
  • It contributes to environmental cleanliness by consuming hazardous wastes like Fly Ash (around 30 Mn.t) from thermal power plants and the entire 8 Mn.t of slag produced by steel manufacturing units.
  • As a part of Corporate Social Responsibility (CSR), the cement Industry employs around 0.1 million people and takes care of the social needs not only of the employees but also adopts several villages around the factories providing free drinking water, electricity, medical and educational facilities.
  • The cement Industry produces a variety of cement to suit a host of applications matching the world's best in quality.
  • Exports Cement/Clinker to around 30 countries across the globe and earns precious foreign exchange.

Statistics

According to Ministry of Commerce & Industry data for November 2012,cement production registered a negative growth of (-) 0.2 per cent in November 2012 against its 17.0 per cent growth in November 2011. The cumulative growth of cement production was 6.7 per cent during April- November 2012-13 compared to its 4.8 per cent growth during the same period of 2011-12.

Key Drivers of Cement Industry

  • Buoyant real estate market
  • Increase in infrastructure spending
  • Various governmental programmes like National Rural Employment Guarantee
  • Low-cost housing in urban and rural areas under schemes like Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and Indira Aawas Yojana


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