Shree Cement - AbsoluteAstronomy.com

Shree Cement is a cement

Cement

In the most general sense of the word, a cement is a binder, a substance that sets and hardens independently, and can bind other materials together. The word "cement" traces to the Romans, who used the term opus caementicium to describe masonry resembling modern concrete that was made from crushed...

manufacturer in India

India

India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...

. It was founded in the Beawar

Beawar

Beawar is a city in Rajasthan, India. Beawar was the capital of Merwara state of Rajputana. As of 2011, the population of Beawar is 3,25,000. It is located southwest of the state capital Jaipur, amidst Aravali hills. It is an major centre of trade,especially in raw cotton, and has cotton...

district of Rajasthan

Rajasthan

Rājasthān the land of Rajasthanis, , is the largest state of the Republic of India by area. It is located in the northwest of India. It encompasses most of the area of the large, inhospitable Great Indian Desert , which has an edge paralleling the Sutlej-Indus river valley along its border with...

and now one of the biggest cement in Northern India. It also produces and sells power under the name Shree Power. Turnover of the company for 2010-11 was Rs. 3512 crore and Net profit was Rs. 210 crore, in 2009-10 was Rs. 3632 Crore and Net profit was Rs. 676 Crore, while in 2008-09 the company posted a turnover of Rs. 2715 crore and generated operating profit of nearly Rs. 1034 crore. Since 2006, it has more than quadrupled its production capacity both by expanding into new areas and increasing the capacities of the existing plants. Plants are located in Beawar, Ras, Khushkhera and Suratgarh in Rajasthanand Laksar (Roorkee) in Uttarakhand

Products

The company offers cement under various brands, including Shree Ultra Jung Rodhak Cement, Bangur Cement, and Rockstrong Cement.

Shree Power

The company has installed 120 MW captive power plants split into two locations (Beawar & Ras) to meet its complete power needs of 10 million tonne Integrated Cement Plant. Commissioned 2x18 MW Greenfield Power Plant at Beawar in 2002 and running successfully. One 6 MW TG is also operating successfully with excess steam available from this 2x18 MW Power Plant.In addition to above 2x18 MW Greenfield Power Plant has been commissioned and is operating successfully at our new Ras Cement Plant. Construction of balance 2x18 MW is in progress and likely to be commissioned in April and October in this year.

Marketing

Markets Classification

Primary : Rajasthan
Secondary : Delhi, Punjab, JK, Haryana, Western U.P. and Uttaranchal
Tertiary: Gujarat, M.P. and Central U.P.

There has been a shift from Product Centric to Consumer centric in the last few years and Shree Cement has started marketing all its products very aggressively. It enjoys a market share of 17 percent in Northern India.

Challenges

Product Challenges:Bulky and heavy, therefore difficult to sell over large territories
Pricing Challenges:Low priced
Transport Cost Challenges:Higher realizations are neutralized by higher freight charges

The company expects to service the dealer network, enhance volumes, focus on unmapped areas and reduce costs. It expects to focus on Red Oxide brand through stronger awareness building.

Policies

Sustainibility Policy:To produce quality cement in an eco friendly, healthy and safe working environment in a socially responsible manner with continual improvement in performance and profitability to the satisfaction of all stake holders.
Quality Policy:To provide products conforming to national standards and meeting customers requirements to their total satisfaction.
Energy Policy:To reduce to the maximum extent possible the consumption of energy without impairing productivity.
Human Resource Policy:Shree Cement Ltd focuses on empowering the employees and honoring the individuality of every employee.

Latest Developments

There has been a decrease in the profit margins of Shree Cement in the last quarter of 2010-11 and operating profits(before depreciation) have fallen by 9 percent, with power costs jumping 70 per cent. The stock has lost 15 per cent of market capitalization in the last three months
But there has been signs of easing of input costs of Cement as well some increase in the cement prices. So shareholders are holding onto their long position and hope the company registers some growth
Input costs like Crude oil has moved down from $127 per Barrel in Apr 2011 to $111 per Barrel now. Fuel costs, mainly of petcoke (petroleum coke), are likely to follow suit. Thermal coal, also a fuel used in kilns, is down 8 per cent in the last six months.
There is good news on the realizations front as well; the all-India average cement price stands at Rs 275/bag now, up 15 per cent since January. There has been aRs 5-10/bag correction in price in the current month and is expected to revive, post-monsoon.

Other Developments

In the near term Shree Cement has no plans of cement related Capital expansion although it recently added a grinding unit of 1.5 million tonnes per annum capacity and its total capacity stands at 13.5 million tonnes now.

Selling of Power

Shree Power sold a unit of power for Rs. 4.50 (cost of production is Rs. 3 per unit of power). In FY11, 20 percent of Shree Cement ‘s total revenue was contributed by its power segment(Shree Power).A new green field Project is coming up at Village Ras, Tehsil Jaitaran, District Pali of Rajasthan, capacity of the plant is 3000 Ton Per Day of clinker production.

Awards and Recognition

FICCI –SEDF CSR appreciation certificate in the Large Enterprise category-2010-11
National Safety Award for the year 2005 which was awarded this year by the Honorable President of India Smt. Pratibha Patil.(2008-09)
Shree Cement was rated among top 20 best companies to work for in India by Business Today, Mercer and TNS (2008-09)
Award for good performance in Cost Management by Institute of Cost and Works Accounts of India

(ICWAI).(2008-09)

First prize for Energy Conservation at our mines by Indian Bureau of Mines(2008-09)
RCCI Excellence Award recognition of "Overall best Corporate Governance Practices and Disclosures in Annual Report" 20 Sept. 2008
Golden Peacock Award for Combating Climate Change on 30 May 2008
National Safety for Mines on June 2008
Best Employer Award for Rajasthan for the year 2007
9th Golden Peacock Award for Environment Management Award 2007.

External links

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