Top four cement cos’ market share dips
“ACC Ltd, the country’s largest cement producer, whose volume market share witnessed an 8-year peak at 13.2% in FY05, has been witnessing a decline since. Its share is currently at 11.8%,” said J Radhakrishnan, an analyst with India Infoline, in a report.
Ambuja Cement Ltd’s volume market share also has dropped from 11% in FY07 to 10%.
Grasim’s fortunes have dipped as well; its volume market share was 10.50% in FY04, which slipped to 9.72% in FY07 and further to 9.47% in FY08. UltraTech Cement Ltd’s market share also dipped from 10.47% in FY04 (it was called L&T cement then) to 10.15% in FY07, and 9.15% in FY08.
The Indian cement industry, in terms of revenue, was worth Rs 54,000 crore in FY08. The industry produced 131.20 million tonne cement from April-December 2008. Cement capacity as on December 31, 2008 stood at 206.96 million tonne.
Industry watchers believe that if the top four players don’t work towards regaining their market share, then post 2010, their combined share could drop to 34%. The share of mid-large players (like Shree Cement, Madras Cement, India Cement) will remain about 36%, small players (like My Home Industries Ltd, Orient, Binani) will hold about 24%, and new players (like Reliance, Murli Agro, JSW Cement) will account for