Being the backbone for development, Cement Industry is a necessary industry for sustainable development. Know more about this industry in detail below.
Factors affecting cement industry
- Economic scenario (+ve)
- Cost structure and competitiveness (nothing much the companies can do as margins are low. Cost advantages are usually due to companies having access to a cheaper power source, quality limestone reserve, being close to bigger markets)
- Legal coma regulatory and environmental scenario (affected by regulatory norms)
- Technological advancement
- Geographical advantage
Problems
- High tariffs
- Inferior quality of coal
- Shortage of power
- Problem of transport
- Low capacity
- Utilisation
- Use of old technology
Major companies
- ACC
- Ambuja
- ultratech
- Jaypee
- jk cement
- bangur
- prism
- Shree
- rain
- lafarge
It is both basic and consumer industry. One of the major and oldest established manufacturing industries in the Indian economy. One of the key and capital intensive industries in India. Cement is also known as magic powder. Define role in shaping civilization. Contribution to India. Today, we have 115 large plants with producing capacity of more than 125 million tonnes. (2nd largest)
Factors of location
- Raw material- lime, gypsum, silica, aluminum
- Labour
- Hydroelectricity
- Thermal power
- Transportation
- Capital
- Availability of market
Diversified over the country
Since the manufacture of cement required weight losing materials like limestone, clay and gypsum, the industry has a tendency to be attracted at a point of minimum transportation cost in relation to the raw materials
More problems
- Inadequate production
- drastic power cuts
- shortage of coal
- Inadequate availability of wagons
- Limited availability of furnace oil
- Coal escalation and rigid prices
- Cost of production increases where as price remain stagnant
- Partial control and dual pricing
The apparent benefits sought from the price control system were
- Fair price to producer
- Availability of cement to consumers at a fair price throughout the country
- Self-sufficiency within the shortest possible time
- Reduction of regional imbalances, Review of freight pooling system (All these where lies and faux)
Unrealistic distribution policies : Government introduced a permit system of distribution which never work properly
Advantages in India
- Robust demand
- Attractive opportunities
- Long term potential
- Increasing investments
- Future is optimistic
Conclusion
- Key factor in economic development
- Great scope for increase in export
- Major challenge is shortage of coal and power cuts
- Government has given direct and indirect encouragement to producers
- No fear of dumping of foreign cement in India