India Cements Financial Study 2011 Essay

5141 WordsAug 8, 201221 Pages
Financial Accounting Analysis of India Cements Ltd. 1. Company Overview India Cements Limited (ICL) is a cement manufacturing company in India. It was established in the year 1946 and the first plant was set up at Sankarnagar in Tamil Nadu in 1949. Since then it has grown in stature to seven plants spread over Tamil Nadu and Andhra Pradesh thereby catering to major markets in South India and Maharashtra. The company has recently commissioned a plant in Rajasthan to tap the Northern markets. The capacities of its plants, as on March 2011, have reached 15.6 million tons per annum. It is the market leader with a market share of 28% in the South. A. Key segments of business Although the primary business of India Cements Ltd. Is the production of cement/ clinker, the organization also has several subsidiary and associated companies such as ICL Securities Ltd, ICL Financial Services Ltd, Trishul Concrete Products Ltd, Coromandel Sugars Ltd, Coromandel Electric Company Ltd, Coromandel Travels Limited etc. Some of the major brands of the company are Coromandel King, Coromandel Super Power. Incidentally, the company owns the Chennai Super Kings team which has been playing in the India Premier League (IPL) since 2008. B. Indian Cement Industry India is the world’s second largest producer of cement. Cement is also one of the six core industries of India. The increase in cement demand over the last few years has been driven by strong demand from housing sector, commercial construction and increased thrust on infrastructure projects. The domestic cement industry has witnessed a growth of ~8.0% CAGR over the last ten years. The effective capacity of India stands at the end of FY 2011 stands at 272 Million Tonnes (MT) with a total production of around 208 MT. Incidentally the average capacity utilization was above 90% from FY 07 – FY 09. The southern region, where

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