ndustry Analysis Profil Cement Industry 0 6 / 2 8 / 2 0 2 2 ( c ) – W e r a z ( M B A )
Industry Analysis ProfileCement Industry
HISTORY Hetauda Cement Industry 2033 BS
Himal Cement Industry 2039 BS
Bishokarma, Jagadamba 1st private manufacturers
80% import before 2000 AD Bishokarma 2052
Himal 2039
Hetauda 2033
NATURE Manufacturing
National Priority Industry
Limestone extracted for ore
Cement categorized as OPC, PPC• Lime Stone
Input
• Clinker• Slag,
GypsumProcess
• CementOutput
GEOGRAPHIC COVERAGE Demand in all regions
Multi spread distributors
Key to infrastructure development
NUMBER OF FIRMS 42 companies manufacture cement
12 clinker based
Around 4000 employed directly/indirectly
PRODUCT TYPE Single utility product
Raw material limestone
Used for construction, building material
05/02/2023(c) – W
eraz (MBA)
Cement Sells
60,000 Mt Ton Plant23,000 MTD
1 Crore 20 Lakh Bags/Year1000+ Channels
PERFORMANCE ANALYSIS 8-10 % annual growth rate (world 3.7%)
4 million MT. Ton annual demand
3.5 million MT. Ton domestic production
1.2 billion US$ foreign direct investment
8-10% growth
3.5 MmT production
5.5 Mmt capacity
(c) – Weraz (M
BA)
05/02/2023(c) – W
eraz (MBA)
1998 2000 2002 2004 2006 2008 2010 2012 2014 20160
0.5
1
1.5
2
2.5
3
3.5
4
Cement production since 2000 (in million metric ton)
FACTORS AFFECTING GROWTH
Infrastructure development
Development of real estate sector
Post Earthquake reconstruction
Labor strike
Power Shortage
05/02/2023(c) – Weraz (MBA)
REGULATION Department of Industry
District Administration Office
ISO & NS regulating bodies
NCMA
SUCCESSFUL ?? Moving towards self sufficiency
80% domestic market share
Corporate sector & foreign investment
Essential for post quake reconstruction
MARKETING MIX Product Offering variety
Price Institutional discount, bulk discount
Promotion Discount, Advertisement. Sponsorship, Allowance, Fairs & Exhibitions
Place Multi spread distributors, retailers
SEASONALITY Business all year round
Slight fall in rainy season
SENSITIVE TO ECONOMIC INDICATORS
Highly responsive to infrastructure development
More likely reactive to real estate growth
Conducive to purchasing power
TARGET CUSTOMERS• Mostly Institutional (65%)
• Individuals (35%)
• 80% demand met by domestic production
COMPETITORS Foreign companies
Intra industry manufacturers
SWOT ANALYSIS Abundant raw materials Favorable government policy
Import of cement clinkers Lower capacity utilization
Self sufficiency Foreign direct investment Post quake reconstruction
Power shortage Labor strike
Strength
Weakness
Opportunity
Threat
Abundant raw materials Favorable government policy
Import of cement clinkers Lower capacity utilization
Self sufficiency Foreign direct investment Post quake reconstruction
Power shortage Labor strike
Strength
05/02/2023(c) – W
eraz (MBA)
CONCLUSION Prosperous outlook of industry
Healthy growth rate
Government speed up post quake activities
SPECIAL THANKS
Jagadish Sapkota – Jagadamba cement
Shivani Neupane _ Ambe Cement
Bishma Bajagai – Hetauda Cement
Tara Nath Goyal – Shivam Cement
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Suggestions
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THANK YOU
HAVE A NICE DAY