Table of Contents
Reliance Cement
Reliance Cement is a part of the MP Birla Group of companies. The company was established in 1919 and has 10 manufacturing facilities spread across India. It has recently increased its capacity from 9.8 MTPA to 15.4 MTPA. The company has a long history and is renowned for quality cement production.
The company was initially a subsidiary of Reliance Infrastructure Limited. Later it became wholly owned. The company has been on a growth trajectory for over a decade and is now one of the top 21 cement manufacturing companies in India. The company has a production capacity of 15 MTPA and employs 4300 people.
The company has a high proportion of blended cement. This cement accounts for about 90% of its total sales. The company also focuses on selling high-margin premium cement. In the future, the company plans to further increase its capacity. And in the meantime, the company plans to maintain its current volume growth.
Its journey began in 1946 when it was established in Tamil Nadu. It currently has a production capacity of 15.5 million tonnes per annum. It has eight integrated cement plants in different states and has diversified into coal mining, captive power, and shipping. Its office is located at Maharishi Karve Road, Mumbai. In 2004, the company was acquired by Swiss cement major Holcim.
PM Narendra Modi’s PM Gati Shakti – National Master Plan (NMP) aims to build a world-class seamless multimodal transport network in India. This initiative is expected to boost cement demand in the coming years. The company’s operating margins have also firmed up since Nov-2019, when demand began to improve. However, the nationwide lockdown due to Covid-19 hit cement volumes. During the fourth quarter of FY2020, volumes fell by 10.0%.
Shree Cement
Shree Cement is one of the leading cement manufacturers in India with a headquarter in Rajasthan. It was established in 1979 by Shri B.G. Bangur and has since grown to become one of the top cement groups in the country with a total capacity of 41.9 MTPA. In addition to cement production, Shree Cement also produces and sells electricity under the brand name Shree Power.
The company has become a leading player in northern India and has expanded into the southern and eastern markets. This is an important move that demonstrates the company’s commitment to sustainability and the reduction of its carbon footprint. The company has also recently increased the production capacity of its cement plants in Rajasthan and Karnataka, which will add a further 10 mt to the company’s production volume.
The company owns more than ten cement factories across the country, providing an array of cement types. The company recently purchased 100% of Reliance Cement Company and has over 4000 dealers in India. In addition, the company is ISO 9001:2000 certified.
The company’s market share in blended cement accounted for 90% of its total sales. The company also has a strong presence in demand-accretive Central Region, focusing on selling premium cement. The company is on track to expand its capacity by 25% over the next five years.
The company employs more than 13000 workers in its manufacturing facilities. Moreover, it is one of the leading cement exporters in Asia.
Jaypee Group
The Jaypee Group is a large cement manufacturing company with operations spread across central and southern India. Its Gujarat plant is currently at 60% capacity, but the company is looking to expand its operations. It is also considering the purchase of cement assets in eastern and northern India. As of now, the company’s cement production capacity stands at 59 mtpa, and it aims to increase that to 70 mtpa by 2015.
Jaypee Group’s stock price has fallen over the past two months amid concerns over massive debt and a decline in profitability. It has also been hit by the closure of its power plant in Uttarakhand and delays in the sale of its cement assets in Gujarat.
In addition to cement manufacturing, Jaypee Group has other businesses, including engineering and construction. Its construction division has the largest land bank in New Delhi. The company’s founder, Jaiprakash Gaur, started the group as a civil contractor in 1958. Since then, the group has expanded into other industries, including hospitality and real estate.
In terms of acquisitions, the cement sector has seen plenty of consolidation in recent years. Last fiscal year, the cement industry saw a number of deals worth $3.3 billion. This consolidation pattern is expected to continue into fiscal 2015, with a number of companies consolidating due to regional imbalances and rising cost levels.
Jaypee Cement is one of India’s largest cement producers. The group’s 24 cement plants are located across the country, and its new plant in Krishna district is expected to increase its production capacity to five million tpa.
UltraTech Cement Limited
UltraTech Cement Limited is part of the Aditya Birla Group and is the largest grey cement and ready-mix concrete manufacturer in India. The company is also among the largest cement producers globally. The company has more than a million channel partners across India and the UAE. It has more than a million tonnes of cement production capacity. Besides manufacturing cement, the company also produces wall care putty and produces speciality cement.
With increased demand for cement, the company is looking to expand its capacity. It has a capacity expansion plan of Rs6,527 crore that is expected to be completed by the end of FY2023. The company also plans to achieve 25% RoE by the end of FY2025. This will help it benefit from the growing demand for cement in India over the next four to five years. As a result, the company’s financials and profitability are looking up.
UltraTech Cement Limited is one of the leading cement manufacturers in India, producing grey and white cement. The company also produces clinker. It also has subsidiaries in the construction and mining industries. Its principal products and services are cement and clinker.
As an environmentally responsible company, UltraTech Cement Limited has taken various initiatives to reduce the carbon footprint of its operations. It has implemented internal carbon pricing and energy efficiency measures. It has also sourced alternative fuel resources. In addition to these efforts, the company has begun using waste heat recovered from other industries. It currently meets 12% of its electricity requirements with green energy, and aims to hit 34% by the end of FY 2024.
UltraTech is also committed to improving the quality of life for the people in the communities it serves. Its products and services are aimed at building a better quality of life for the poorest and most vulnerable segments of society. In addition, it contributes to inclusive growth, boosting the country’s human development index.