Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

India's <keyword id="20884491" type="General" weightage="20" keywordseo="cement-industry" source="keywords">cement industry</keyword> is heating up faster than a kiln! If one’s tracking the sector, the war-like situation between the existing and emerging cement giants is pretty evident. For the uninitiated, Aditya Birla Group-backed <keyword id="19963567" type="General" weightage="100" keywordseo="Ultratech-Cement" source="keywords" meta.keywordsubtype="org" meta.entityname="Ultratech Cement" meta.hostid="261" meta.entityid="Ultratech Cement">Ultratech Cement</keyword> and <keyword id="19955648" type="General" weightage="20" keywordseo="Adani-Group" source="keywords">Adani Group</keyword> have been at loggerheads for increased market share in recent years. And now, JSW Cement also seems to be gearing up to challenge the potential duopoly. As conglomerates aggressively acquire smaller players to achieve market domination, the cement industry in India right now resembles an eighteenth-century battlefield. The battle has significantly escalated this year, but this trend of acquiring regional cement companies can be traced back to 2018 when Ultratech acquired Binani Cement. Since then, both Adani Group and Birla Group have been capturing checkposts all over India, one by one. Ultratech acquired Binani Cement to strengthen its base in the western region and this week, India Cement, for the southern states. Adani has also acquired the Hyderabad-based Penna Cement this year, after acquiring majority stakes in Ambuja Cements and ACC in 2022. But why the obsession with cement? <h2>Why are the Titans clashing for…cement?</h2>India's infrastructure boom is in full swing, and whoever controls the cement supply holds the key to this construction kingdom. Adani Group has been known to follow an acquire &amp; dominate strategy for capturing market segments. <keyword id="19907441" type="General" weightage="20" keywordseo="Aditya-Birla-Group" source="keywords">Aditya Birla Group</keyword>, however, has dominated the cement industry in India through Ultratech for a while now. The answer to the above question may simply lie in establishing the leadership moat for themselves. With even-growing public and private spending on infrastructure, both players want to capture the majority share to dominate the supplies of cement, which is essential for construction. <h2>Where is the sector heading?</h2>While both Adani and Aditya Birla groups have locked horns to acquire CK Birla’s Orient Cement for a while now, a new hurdle threatens their dominance. As per an Economic Times report, Sajjan Jindal-led JSW Cement has now started to evaluate the acquisition of the promoter stake in Orient Cement. As an emerging front, JSW Cement also aims to reach 50 MT per annum by 2030. However, two other major players, Shree Cement and Dalmia Bharat, already have 53 MTPA and 43 MTPA capacity. <div type="image" title="Birla Vs Adani" msid="112196675" hostid="261" sizebytes="284160" caption="&amp;lt;p&amp;gt;Look back at major acquisitions in the cement sector&amp;lt;/p&amp;gt;"></div> However, with over a dozen acquisitions over the last decade, both Ultratech and Adani Group are by far the largest players in the sector eyeing over 200 MT per annum by 2030. <h2>What about the prices?</h2>Will consumers benefit from this cutthroat competition to industry domination? In the short term at least, yes! While lower prices might sound appealing, it's essential to keep an eye on quality as consolidation in the manufacturing sector is always tricky. We don't want to end up with buildings crumbling like cookies. And let's not forget about the little guys. This consolidation of power into a few mega-corporations could squeeze out smaller players, reducing competition and potentially leading to higher prices in the long run. <h2>I think I’ve seen this film before….</h2>The current atmosphere of the cement industry feels reminiscent of what happened in the telecom industry in India in 2016 i.e. the infamous tussle of tariffs. As Reliance Industries launched Jio, it disrupted the entire segment and forced other telecom companies to compete on their terms. As a result, the tariffs fell sharply, companies shut and brands merged, but Jio still claims 40% of the market share in India in terms of subscriber count. Moreover, experts feel that the change in power dynamics in both these industries, cement and telecom, have direct ties to the current government’s industrial policy. Government policies seem to favour companies that have acquired a dominant position in distinct sectors of the economy, which in India’s case are led by two of the richest men in Asia — Gautam Adani and Mukesh Ambani. This strategy of adopting ‘<keyword id="1327299" type="General" weightage="20" keywordseo="national-champions" source="Orion">National Champions</keyword>’ is seemingly inspired by South Korea’s <keyword id="4933297" type="General" weightage="20" keywordseo="Chaebols" source="Orion">Chaebols</keyword> and Japan’s Zaibatsu conglomerates that came into existence decades ago. <h2>From corporate drama to k-drama: Chaebols</h2>The term Chaebol might ring a bell if you've watched K-dramas. They are family-owned business conglomerates in South Korea. This business structure originated in the 1960s and got so popular that it made its way into Korean pop culture. While chaebols have fueled the rapid growth of the Korean economy, concerns about their opaque governance and controlling shareholder interests often deter external investors. Japan’s zaibatsu were also similar financial and industrial conglomerates that were major forces in Japan during World War II. Korea’s Hyundai and Japan’s Mitsubishi are some prime examples of this structure. <h2>Growth of the Goliaths</h2>Viral Acharya, the former Deputy Governor of the RBI, highlights the decade-old trend of the central government achieving economic growth outcomes by working with large conglomerates in part, rather than with state governments. In his conference paper for the Brookings Papers on Economic Activity in March 2023, he demonstrates this pattern with examples from multiple sectors. “By way of specific examples, the share of the Top 5 groups by sales in Civil Engineering and Construction rose from 31% in 2016 to 42% in 2021, in Telecommunications from 65% to over 84%, and in the Retail trade sector from under 44% to over 65%. Similarly, the share of Top-5 groups by Assets rose sharply by 2021 to 68% in the Manufacturing of Basic Metals, 26% in the Manufacturing of Chemicals, 90% in the Manufacturing of Refined Petroleum and Coke, and 47% in the Manufacturing of Non-metallic Mineral Products (including cement and other building materials),” writes Acharya. While this strategy of ‘National Champions’ has benefitted the telecom sector, it has its caveats. The acceleration in the growth may lead to an oligopolistic economy, thereby restricting the entry of new players and stifling innovation. Additionally, a multi-dimensional concentration of power poses the threat of crony capitalism. <h2>National champions: checks and challenges</h2>There’s more to this debate. Arvind Subramanian and Josh Felman, in their paper titled ‘India’s Stalled Rise’ note that the collective impact of this strategy could be more adverse in India, more than anywhere else. They explain that the two big conglomerates — Adani Group and Ambani-led Reliance “have interests that extend throughout the economy, in defence production, ports and airports, energy, natural gas, petroleum, digital platforms, telecommunications, entertainment, media, retail, textiles, financial payments, and education.” Chaebols and Zaibatsu have/had their demerits that range from autocratic decision-making dubbed as ‘imperialistic management’ to the slow inclination of the market towards an oligopolistic structure. However, they weren’t shielded from international competition, nor was this strategy of creating ‘national champions’ shaped using government regulation. They were prevalent in sectors that faced competition internationally, like Hyundai in automobile manufacturing, keeping them in check. The lack of a similar system of checks and balances in India may lead to deeper implications of this strategy of ‘national champions.’ Viral Acharya further notes that they “grew not just at the expense of the smallest firms, but also of the next largest firms” and empirically established a causal link between market power and markups (broadly, profit). At a point when India has seen a monumental shift in infrastructure and looks to capture the market share that China could evacuate, the implications of a tilted policy could prove detrimental. While consolidation can improve performance and catalyse growth, we need to be very careful as a country of the direction we will set ourselves in at this crucial juncture. <h2>Also read:</h2> <div type="Article" hostid="261" msid="112159576" title="India Cement employees to lose jobs after UltraTech acquisition? Chairman Srinivasan answers" mstype="2" mssubtype="0"><payload><![CDATA[seealso]]></payload></div> <div type="Article" hostid="261" msid="112163130" title="Ambuja Cements Q1FY25 profit at Rs 789.63 crore; revenue at Rs 8,311.48 crore" mstype="2" mssubtype="0"><payload><![CDATA[seealso]]></payload></div>

Cementing dominance: Birla vs Adani, of Chaebols, conglomerates, and National Champions

The 30-scrip Sensitive Index (<keyword id="6484188" type="General" weightage="20" keywordseo="sensex" source="Orion">Sensex</keyword>) and broader 50-scrip Nifty on the National Stock Exchange (NSE) extended their losses from the previous three consecutive sessions and declined on Friday. At 10.25 a.m., Sensex traded at 58,593 points, down 0.9 per cent from the previous close of 59,464 points. It opened at 59,039 points. Nifty traded at 17,599 points, down 0.9 per cent from the previous close of 17,757 points. It opened at 17,613 points. <keyword id="85462" type="General" weightage="20" keywordseo="bajaj-finserv" source="Orion">Bajaj Finserv</keyword>, Tech Mahindra, <keyword id="45383" type="General" weightage="20" keywordseo="coal-india" source="Orion">Coal India</keyword>, Adani Ports, Bharti Airtel were some of the top losers, NSE data showed. Top gainers during the early trade were Hindustan Unilever, <keyword id="9897896" type="General" weightage="20" keywordseo="Tata-consumers" source="Orion">Tata Consumers</keyword>, Bajaj Auto, Hero MotoCorp, and Power Grid Corporation. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/last-day-to-subscribe-to-ags-transact-ipo-gmp-drops-to-10/articleshow/89026193.cms">Last day to subscribe to AGS Transact IPO, GMP drops to ₹10</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/shoppers-stop-shares-jump-15-after-company-reports-first-profit-in-10-quarters/articleshow/89031576.cms">Shoppers Stop shares jump 15% after company reports its first profit in more than two years</a>

Markets continue to fall for fourth straight sessions; Bajaj Finserv, Coal India, Shree Cement fall sharply

Shree Cement, Zee Entertainment, telecom and other top stocks to watch out for on September 15

Coal India, Shree Cement, RIL and other top stocks to watch out for on August 10

New Delhi, Feb 14 () Shree Cement Ltd on Friday reported a consolidated net profit at Rs 311.83 crore for the third quarter ended December 2019. The company had posted a net profit of Rs 329.83 crore in the October-December quarter a year ago, Shree Cement said in a BSE filing. Its total income was at Rs 3,211.65 crore during the quarter under review. It was Rs 3,195.59 crore in the corresponding quarter. Its results are not comparable as it had acquired majority stake in Union Cement Company (UCC), a United Arab Emirates (UAE) based Company on July 11, 2018 through its wholly owned subsidiaries. It had also acquired 100 per cent stake in Raipur Handling and Infrastructure on May 14, 2018 and include results of these companies for entire period. "Hence, results for nine months ended 31st December, 2019 are not comparable with corresponding period of nine months ended 31st December, 2018," it said. Its revenue from the cement segment was at Rs 3,115.22 crore as against Rs 2,918.51 crore in the year-ago period. While revenue from the power segment was at Rs 300.26 crore as against Rs 502.60 crore. Its total expenses was at Rs 2,801.89 crore. Meanwhile, in a separate filing Shree Cement informed the BSE that its board in a meeting held on Friday declared an interim dividend of Rs 110 per equity share of Rs 10 each for the 2019-20 which includes Rs 70 per equity share as normal dividend and Rs 40 per equity share as an additional dividend for the 2019-20. Shares of Shree Cement Ltd on Friday settled at Rs 24,412.75 on the BSE, down 0.90 per cent from the previous close. KRH SHWSHW

Shree Cement posts Rs 311.83 cr profit for Q3

New Delhi, Feb 19 () Shares of Shree Cement Ltd rose over 2 per cent on Wednesday as the stock is set to enter the Nifty 50 index from next month. NSE Indices, a subsidiary of the National Stock Exchange (NSE) on Tuesday said that Shree Cement will replace private lender Yes Bank in the benchmark index Nifty 50 from March 27. On the BSE, the stock opened on a bullish note at Rs 25,000 then gained further ground and touched a high of Rs 25,222.90, registering a rise of 5.98 per cent during the day. The stock, however, pared some gains and closed at Rs 24,406.35, higher by 2.55 per cent over previous close. On the NSE, the stock settled at Rs 24,390, up 2.58 per cent over previous close. The stock has closed in green after settling the last six sessions in red. In terms of volume, more than 1.5 lakh shares were traded on the NSE and 20,000 units exchanged hands on the BSE. Moreover, the spurt in volume was more than 5.99 times during the day on the BSE. Further, Vodafone Idea, Ashok Leyland, Indiabulls Housing Finance, L&amp;T Finance Holdings and Shree Cement will be dropped from Nifty Next 50, as per NSE Indices. Meanwhile, shares of Yes Bank opened weak on Wednesday at Rs 34, then lost ground and touched an intra-day low of Rs 33.60, down 4.13 per cent over its previous close. Shares of Yes Bank closed at Rs 35.30, up 0.71 per cent over its last close on the BSE. RUJ SHWSHW

Shree Cement shares up over 2 pc on inclusion in Nifty 50 index

New Delhi, Feb 19 () Shares of Shree Cement Ltd jumped as much as 6 per cent in morning trade on Wednesday as the stock is set to enter the Nifty 50 index from next month. NSE Indices, a subsidiary of the National Stock Exchange (NSE), on Tuesday said that Shree Cement will replace private lender Yes Bank in the benchmark index Nifty 50 from March 27. The stock opened on a bullish note on Wednesday at Rs 25,000, then gained further ground and touched a high of Rs 25,222.90, registering a rise of 5.98 per cent over its previous close. The stock, however, pared some gains and was trading at Rs 24,491.80, higher by 2.91 per cent over its last close at 1144 hrs on BSE. Further, Vodafone Idea, Ashok Leyland, Indiabulls Housing Finance, L&amp;T Finance Holdings and Shree Cement will be dropped from Nifty Next 50, as per NSE Indices. Meanwhile, shares of Yes Bank opened weak on Wednesday at Rs 34, then lost ground and touched an intra-day low of Rs 33.60, down 4.13 per cent over its previous close. Shares of Yes Bank were later trading at Rs 34.50, down 1.57 per cent over its last close at 1144 hrs. RUJ DRR

Shree Cement shares surge nearly 6 pc on inclusion in Nifty 50 index

New Delhi, Feb 18 () Shree Cement will replace private lender Yes Bank in the benchmark index Nifty 50 from March 27, NSE Indices, a subsidiary of the National Stock Exchange (NSE), said on Tuesday. Further, Vodafone Idea, Ashok Leyland, Indiabulls Housing Finance, L&amp;T Finance Holdings and Shree Cement will be dropped from Nifty Next 50, NSE Indices said in a statement. Adani Transmission, IDBI Bank, Info Edge (India) Ltd, Larsen &amp; Toubro Infotech and Torrent Pharmaceuticals would be added in Nifty Next 50 index. Changes have been made in several indices including Nifty 500, Nifty 200, Nifty 100, Nifty Midcap 150, Nifty Smallcap 250 and host of sectoral indices including FMCG, IT, media, pharma, commodities and services sector. NSE Indices' Index Maintenance Sub-Committee has decided to make the replacement of stocks in various indices as part of its periodic review. These changes would become effective from March 27, 2020. Also, NSE Indices has revised the eligibility criteria for inclusion in Nifty's 17 sectoral indices. Under the new criteria, companies should be a part of Nifty 500 at the time of review. In case, the number of eligible stocks representing a particular sector within Nifty 500 falls below 10, then deficit number of stocks shall be selected from the universe of stocks ranked within top 800 based on both average daily turnover and average daily full market capitalisation based on previous six months period data used for index. At present, companies need to rank within top 800 based on both average daily turnover and average daily full market capitalisation based on previous six months period data for inclusion in the indices. SP RVK

Yes Bank to be dropped from Nifty 50 from Mar 27; Shree Cement to move in

The Competition Commission of India (<keyword id="47183" type="ORGANIZATION" weightage="20" keywordseo="CCI">CCI</keyword>) has approved the business transfer agreement between Shree Cements Limited (SCL) and <keyword id="45043" type="COMPANY" weightage="20" keywordseo="Jaypee-Group">Jaypee Group</keyword>’s flagship company Jaiprakash Associates Limited (JAL). 
	 
	“Considering the facts on record and the details provided in the notice given under sub-section (2) of Section 6 of the Act and assessment of the proposed combination on the basis of factors stated in sub-section (4) of Section 20 of the Act, the Commission is of the opinion that the proposed combination is not likely to have an appreciable adverse effect on competition in India in any of the relevant market(s) and therefore, the Commission hereby approves the same under sub-section (1) of Section 31 of the Act,” stated the notice by CCI. 
	 
	Under the agreement, JAL has proposed the sale of a cement grinding unit at Panipat in Haryana with a capacity of 1.5 million tonnes per annum to SCL on September 19, 2014. 
	 
	“The Commission noted that in the relevant market comprising the states of Haryana and Rajasthan as discussed above, the market shares in terms of installed capacity is 23% of SCL and 3% for the cement grinding unit. Thus the post combination market share of the acquirer will increase to 26%. The market is moderately concentrated but the change in market concentration as indicated by incremental HHI would not be significant,” said the notice by CCI. 
	 
	The companies have also informed CCI that the capacity utilization of the plant has been depreciating over the years and reached 42% in 2013-14, further declining to 19% in the first quarter of the current fiscal year. 
	 
	“The parties have stated that this reduction in capacity utilization is due to higher cost of operating the plant vis-à-vis other plants of JAL and high logistics cost of transporting clinker from JAL’s Baga unit in Himachal Pradesh…SCL needs additional cement grinding capacity to fully utilize its available clinker production capacity,” noted the commission.

You Searched For "Shree Cement" and got 9 results

Cementing dominance: Birla vs Adani, of Chaebols, conglomerates, and National Champions

Prerna

Deekshith

Markets continue to fall for fourth straight sessions; Bajaj Finserv, Coal India, Shree Cement fall sharply

IANS

Shree Cement, Zee Entertainment, telecom and other top stocks to watch out for on September 15

Rounak Jain

Coal India, Shree Cement, RIL and other top stocks to watch out for on August 10

Rounak Jain

Shree Cement posts Rs 311.83 cr profit for Q3

PTI

Shree Cement shares up over 2 pc on inclusion in Nifty 50 index

PTI

Shree Cement shares surge nearly 6 pc on inclusion in Nifty 50 index

PTI

Yes Bank to be dropped from Nifty 50 from Mar 27; Shree Cement to move in

PTI

CCI Approves Proposed Business Transfer Agreement Between Jaiprakash and Shree Cements

Purba Das

Popular Keywords

Buying Guides