Cement Companies
Cement

Cement Companies

<span style="font-size: 12pt; font-weight: bold;">CW profiles the top companies in this category...</span><br /> <br /> <span style="font-weight: bold; font-size: 12pt;">Largest Cement Company UltraTech Cement</span><br /> <br /> UltraTech cement is one of the largest cement producers in the country with a market share of 17 per cent. <p></p> <p>The company manufactures grey cement, ready-mix concrete (RMC) and white cement in India, and is among the largest cement exporters in the country. In the last few years, the company has increased its production capacity to 67.8 mtpa in FY17. Continuous capacity addition has helped UltraTech grow its business on a large scale and stay ahead of its competitors.</p> <p>Recently, the company completed acquisition of Jaiprakash Associates with a capacity of 21.2 MT. Currently, its overall capacity stands at 93 MT, and the market share is expected to improve to 22 per cent. On the financial front, the company has posted revenues of Rs 27,162.42 crore in FY17 as compared to Rs 24,107.36 crore in FY16. At the bottom-line, it has posted a net profit of Rs 2,627.72 crore for FY17 as against Rs 2,102.11 crore in FY16. An improvement in margins has also been visible in FY17 by more than 300 basis points to touch an EBDIT margin of 23.09 per cent.</p> <p> <span style="font-size: 12pt; font-weight: bold;">Fastest Growing Cement Company - Large Category<br /> Dalmia Bharat Enterprise </span><br /> Dalmia Bharat is a diversified conglomerate with a presence across sectors including cement, sugar, refractory and power. It is the fourth largest cement manufacturer in India with an installed capacity of 25 MT, of which, 14.2 MT is in the south, 8.9 MT capacity in the east and 1.5 MT in the north-east. With the capex cycle ending last year, one of the key areas for the company was to strengthen its balance sheet. It has reduced Rs 1,230 crore in net debt since last year and Rs 640 crore in the last quarter. This was aided by funds received from the KKR stake sale. The net debt-to-EBITDA ratio now stands at 2.4x compared to 2.8x in the previous quarter, and is significantly down from 6.8x in FY15. However, we believe that the eastern plants running at a peak capacity and robust demand in the region make a strong case for expansion in the east. For FY2017, the revenue has increased by 83 per cent to Rs 367 crore and has incurred a net loss to the tune of Rs 265.34 crore.</p> <p> <span style="font-weight: bold; font-size: 12pt;">Fastest Growing Construction Company - Medium Category<br /> OCL India </span><br /> OCL India is a prominent player in the eastern region. The company has two business divisions, namely for cement and refractory. It is one of the first cement companies in India to manufacture portland slang cement. The company is a subsidiary of Dalmia Cement (Bharat), a wholly-owned subsidiary of Dalmia Bharat. </p> <p>Considering the cement division, the installed capacity stands at 6.7 million tonne per annum. In order to increase its market presence, the company started offering products to Uttar Pradesh and Chhattisgarh last year. Its refractory division has an installed capacity of 1.3 lakh tonne across two manufacturing plants. Despite a weak market condition, the division has recorded 20 per cent growth by value in FY2017. Going ahead, growth in the construction sector is set to augment growth for the company. The merger with Dalmia Bharat is expected to further spur growth. In FY2017, the company's revenue grew by 23 per cent to Rs 3,267 crore and its net profit grew by 62 per cent of Rs 383 crore.</p> <p> <span style="font-size: 12pt; font-weight: bold;">Fastest Growing Construction Company - small Category<br /> NCL Industries </span><br /> Almost 80 per cent of NCL Industries' revenues drives from the south Indian market, making it a major player in the region. The company has a presence in the market for cement bonded particle board, ready-mix concrete and hydro power. Well positioned in the north coastal Andhra Pradesh and with its ability to make low cost capacity expansion, the company is well-equipped for future growth. </p> <p> At present, the installed capacity of the company's plant stands at 2 million tonne and is likely to increase to 2.7 MT in CY17. As compared to other cement producers, the company has benefited from low cost capacity expansion that will further enable growth in its volumes. Going ahead, higher government spending in Andhra Pradesh and Telangana on low cost housing, irrigation and other infrastructure projects will boost the growth of southern regions. In light of this, a 15 per cent growth in the southern cement sector is expected, making NCL a major beneficiary.</p> <p> In FY2017, the company's revenue has grown by 33 per cent to Rs 883 crore, and net profit grew by 3 per cent to Rs 55 crore as compared to FY16. As for long-term performance, the company's net profit has grown by 24 per cent to Rs 55 crore in FY2017 as against Rs 44 crore in FY2012. For the past three years, the company's net sales has grown at a CAGR of 16.19 per cent.</p>

<span style="font-size: 12pt; font-weight: bold;">CW profiles the top companies in this category...</span><br /> <br /> <span style="font-weight: bold; font-size: 12pt;">Largest Cement Company UltraTech Cement</span><br /> <br /> UltraTech cement is one of the largest cement producers in the country with a market share of 17 per cent. <p></p> <p>The company manufactures grey cement, ready-mix concrete (RMC) and white cement in India, and is among the largest cement exporters in the country. In the last few years, the company has increased its production capacity to 67.8 mtpa in FY17. Continuous capacity addition has helped UltraTech grow its business on a large scale and stay ahead of its competitors.</p> <p>Recently, the company completed acquisition of Jaiprakash Associates with a capacity of 21.2 MT. Currently, its overall capacity stands at 93 MT, and the market share is expected to improve to 22 per cent. On the financial front, the company has posted revenues of Rs 27,162.42 crore in FY17 as compared to Rs 24,107.36 crore in FY16. At the bottom-line, it has posted a net profit of Rs 2,627.72 crore for FY17 as against Rs 2,102.11 crore in FY16. An improvement in margins has also been visible in FY17 by more than 300 basis points to touch an EBDIT margin of 23.09 per cent.</p> <p> <span style="font-size: 12pt; font-weight: bold;">Fastest Growing Cement Company - Large Category<br /> Dalmia Bharat Enterprise </span><br /> Dalmia Bharat is a diversified conglomerate with a presence across sectors including cement, sugar, refractory and power. It is the fourth largest cement manufacturer in India with an installed capacity of 25 MT, of which, 14.2 MT is in the south, 8.9 MT capacity in the east and 1.5 MT in the north-east. With the capex cycle ending last year, one of the key areas for the company was to strengthen its balance sheet. It has reduced Rs 1,230 crore in net debt since last year and Rs 640 crore in the last quarter. This was aided by funds received from the KKR stake sale. The net debt-to-EBITDA ratio now stands at 2.4x compared to 2.8x in the previous quarter, and is significantly down from 6.8x in FY15. However, we believe that the eastern plants running at a peak capacity and robust demand in the region make a strong case for expansion in the east. For FY2017, the revenue has increased by 83 per cent to Rs 367 crore and has incurred a net loss to the tune of Rs 265.34 crore.</p> <p> <span style="font-weight: bold; font-size: 12pt;">Fastest Growing Construction Company - Medium Category<br /> OCL India </span><br /> OCL India is a prominent player in the eastern region. The company has two business divisions, namely for cement and refractory. It is one of the first cement companies in India to manufacture portland slang cement. The company is a subsidiary of Dalmia Cement (Bharat), a wholly-owned subsidiary of Dalmia Bharat. </p> <p>Considering the cement division, the installed capacity stands at 6.7 million tonne per annum. In order to increase its market presence, the company started offering products to Uttar Pradesh and Chhattisgarh last year. Its refractory division has an installed capacity of 1.3 lakh tonne across two manufacturing plants. Despite a weak market condition, the division has recorded 20 per cent growth by value in FY2017. Going ahead, growth in the construction sector is set to augment growth for the company. The merger with Dalmia Bharat is expected to further spur growth. In FY2017, the company's revenue grew by 23 per cent to Rs 3,267 crore and its net profit grew by 62 per cent of Rs 383 crore.</p> <p> <span style="font-size: 12pt; font-weight: bold;">Fastest Growing Construction Company - small Category<br /> NCL Industries </span><br /> Almost 80 per cent of NCL Industries' revenues drives from the south Indian market, making it a major player in the region. The company has a presence in the market for cement bonded particle board, ready-mix concrete and hydro power. Well positioned in the north coastal Andhra Pradesh and with its ability to make low cost capacity expansion, the company is well-equipped for future growth. </p> <p> At present, the installed capacity of the company's plant stands at 2 million tonne and is likely to increase to 2.7 MT in CY17. As compared to other cement producers, the company has benefited from low cost capacity expansion that will further enable growth in its volumes. Going ahead, higher government spending in Andhra Pradesh and Telangana on low cost housing, irrigation and other infrastructure projects will boost the growth of southern regions. In light of this, a 15 per cent growth in the southern cement sector is expected, making NCL a major beneficiary.</p> <p> In FY2017, the company's revenue has grown by 33 per cent to Rs 883 crore, and net profit grew by 3 per cent to Rs 55 crore as compared to FY16. As for long-term performance, the company's net profit has grown by 24 per cent to Rs 55 crore in FY2017 as against Rs 44 crore in FY2012. For the past three years, the company's net sales has grown at a CAGR of 16.19 per cent.</p>

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