India's cement industry is a vital part of its economy, providing employment to more than a million people, directly or indirectly. It is the second largest cement industry in the world. The industry is currently in a turnaround phase, trying to achieve global standards in production, safety, and energy-efficiency.
Cement industry being one of the essential sectors for economic growth in India remains a long term play. After two years of low single digit growth, we expect +11.3% CAGR in demand over next couple of years as infrastructure projects and initiatives announced by the new government (Swachh Bharat Abhiyan, Freight corridors, Concrete roads, "Housing for All", 100 Smart cities projects, etc) comes on stream. Cement/GDP multiplier after declining to 0.98x over FY10-14 (lowest levels for a full 5 year term of a government in the past 30 years) is expected to bounce back sharply to 1.82x over FY14-17.Pace of capacity addition will witness structural slowdown (+50 mt over FY14-17E vis-à-vis +114 mt over FY10-14) as new projects at prevailing profitability levels are unlikely to be planned. Resultantly, industry utilizations will bottom out at 71.5% in FY14 (lowest since 1990) and improve at scorching pace to 85.8% in FY17 owing to expected improvement in demand and considerable decline in capacity additions.
Consolidation is expected to gain momentum as a) large cement producers having cash rich balance sheet wouldprefer inorganic route to expand owing to various bottlenecks in organic expansion, b) balance sheet of mid capcompanies are over leveraged resulting in sub-par profitability levels, c) expectations of sellers have tapered offlate). Further, subdued cost inflation coupled with likely firm cement prices offer strong support to profitability and hence return ratios are expected to head northwards
The cement market in India is expected to grow at a compound annual growth rate (CAGR) of 8.96 percent during the period 2014-2019.In India, the housing sector is the biggest demand driver of cement, accounting for about 67 per cent of the total consumption. The other major consumers of cement include infrastructure at 13 per cent, commercial construction at 11 per cent and industrial construction at nine per cent.
To meet the rise in demand, cement companies are expected to add 56 million tonnes (MT) capacity over the next three years. The cement capacity in India may register a growth of eight per cent by next year end to 395 MT from the current level of 366 MT. It may increase further to 421 MT by the end of 2017. The country's per capita consumption stands at around 190 kg.
A total of 188 large cement plants together account for 97 per cent of the total installed capacity in the country, while 365 small plants account for the rest. Of these large cement plants, 77 are located in the states of Andhra Pradesh, Rajasthan and Tamil Nadu. The Indian cement industry is dominated by a few companies. The top 20 cement companies account for almost 70 per cent of the total cement production of the country.
Types of Cement available on Tradologie
Tradologie is a flexible platform on which a buyer can input his own specifications of cement to be procured by them. For Ease of Business, the following options are presently added
Other than choosing the broad category of cement, the buyer can input other quality specifications such as Grade ,Color and purpose of use etc.
Who can be our sellers?
Tradologie only allows verified Sellers and Suppliers who have established export credentials and Manufacturing facilities to become registered seller on the platform and that too after verifying the facilities of the seller.
The Buyer shall have the option to choose from Cement Exporters, Cement Manufacturers, Cement Stockiest, Cement Wholesalers and Cement Traders & Aggregators while floating his enquiry for Negotiation
Who can be the Buyers?
Buyer on tradologie platform has to be a registered entity having credentials of Cement Importer or construction companies, Builders, Real estate, Bridge Construction Company or can be a registered Indian Cement Trader, Indian Cement Trader, Cement Wholesaler, from across the country or across the Globe.