Fundamental Analysis - Industry Regions

INDUSTRY FUNCTIONING REGIONS / COUNTRIES :-                      

Today’s Indian Economy is globalized. Our I.T. Companies are doing business Worldwide. Apart from local ( India ) International business are many times more. Due to the percentage of income being more from Foreign countries, the Economy in these countries may affect these Organizations also.  

                              

FOR EXAMPLE : CEMENT INDUSTRY -

Responsible for 7-8 percent of global cement production, India is the second largest cement market in the world, and also an exporter to 30 countries. The cement industry in India is divided into five geographical segments, wherein the North and South regions are the leading suppliers of cement. The East, West and Central regions face deficit of cement, thereby relying on purchases from the North and South. According to the Cement Manufacturers’ Association (CMA), there are 139 large cement plants and 365 mini and white cement plants in the country.

Overview

According to the Cement Manufacturers Association (CMA), cement sales for May 2012 were registered at 16.26 million tonnes (MT), which signifies a 14 percent growth over the same period in 2011. Although India is one of the largest cement markets in the world, its per capita consumption is only around 170 kg, much lower than the global average consumption of about 430 kg. According to the latest report from the working group on the industry for the 12th five-year Plan (2012-17), India would require overall cement capacity of around 480 million tonnes. This would mean the industry will have to add another 150 million tonnes of capacity during the period.

Leading players in this sector (by market share) are Shree Chem, Ultratech, Ambuja, Binani, ACC, India Cem, Dalmia Cem, Madras Cem, Lafarge, and OCL India.

Factors that will drive growth in this sector

·   Housing segment growth is leading to higher demand for cement for

homebuilding.

·   Government’s 12th Five Year Plan focuses on increasing infrastructure

(upgraded airports, ports, railway expansion, etc.) to drive construction activity.

·   Rise in commercial and retail spaces, along with hotels in near future, will

account for increased demand for cement.

·   Use of alternate fuels will help reduce low production costs and emissions and

further drive this sector.

·   There is an increase in the sale of blended varieties of cement - Portland

Pozzolana Cement (PPC) and Portland Blast Furnace Slag Cement (PBFC)

Road ahead

Though cement is the most preferred construction material in both housing and industrial works, its demand is directly linked to the development and growth of others industry domains, such as construction, infrastructure, finance, etc. The housing segment that accounts for a major portion of domestic demand for cement in India is expected to witness a demand of 4.3 million housing units between 2010 and 2014. Government initiatives to boost infrastructure development and ease transportation costs should keep the demand for cement on a consistent rise. Furthermore, there are unexplored markets in the country, like the under-supplied North-east region, that are currently experiencing increasing demand for cement.

SURROUNDING ATMOSPHERE :-

         

Today each and every Organization must obey the Surrounding atmosphere. Otherwise, the anger from Government or from general pubic, must be definitely faced. Due to those actions the industry      must suffer more. For example, Leather and Textile based industries. According to the Instructions of Law the Tirupur, textile industry suffered much more. Similarly the Tannery based business suffered, more several years back. Very recently “Sterlite Industries” of Tuticorin was directed by the Court order a closure. Finally the stock you ought to purchase must be Eco-friendly or else not creating much damage to the Surrounding atmosphere.