Globalization of Indian Cement Industry

Globalization of Indian cement industry has helped the industry to restructure itself to cooperate with the changes in global economic and trading system. The Indian cement industry is one of the oldest industries. It has been catering to India's cement requirements, since its inception in the British Raj in India. Although most of the players in the Indian cement industry were private organizations, industry was highly regulated.

With the rapid growth of the Indian economy after the 1990s, the infrastructural development of the country was fantastic. The increase in construction activities has led to increase in demand for updated quality building materials and other related products. Cement is one of the main elements of the building; there is a growth in the cement industry in India. Consumption of cement in India has increased by nearly 7.5%. With the globalization of the Indian cement industry many foreign cement producers to engage in contracts and deals with their Indian counter parts to get a share of growth.

Globalization of Indian cement industry comprises more foreign companies entering into mergers and acquisitions of Indian cement companies. For example,

Heidelberg Cement - Indorama Cement Heidelberg Cement Company signed an agreement on a 50% joint venture with the Indorama Cement Ltd., located in Mumbai, which was originally occupied by the Indorama SP Lohia Group. Heidelberg Cement Company is the leading German cement company. Heidelberg Cement was established in 1873 and has a long and prosperous history. Is one of the best in the world to Heidelberg Cement Company has its bases in different countries. Heidelberg Cement Company has two production units in India. A grinding plant in Mumbai and a cement terminal near Mumbai port. A clinker plant comes up in the State of Gujarat.

Holcim Cement - Gujarat Ambuja Cement (GACL), Holcim Cement signed an agreement to acquire 14.8% of Gujarat Ambuja Cement (GACL). With new products, skilled personnel superb leadership, and an excellent marketing strategy, this tie good lead over other competitors. Holcim Cement Company are among the leading cement manufacturing and supplying companies in the world. It is one of the largest employers in the world which has a workforce of 90,000. The Holcim Cement Company has units in over 70 countries worldwide.

Italcementi cement - Zuari Cement Limited Italcementi Cement Company with help from Francois Ciments, a subsidiary for its global operations, has acquired shares in the famous Indian cement - Zuari Cement Limited. The purchase was at 50% of the shares and the deal was for around 100 million Euros. Italcementi Cement is the 5th largest cement manufacturing company in the world. Production capacity in Italcementi Cement Company has around 70 million tonnes a year. With the construction boom in India, the company looks for a stable future. In 2001 Italcementi cement into the Indian market scenario. It took over the factory in Zuari Cement Limited in Andhra Pradesh in southern India. The joint venture earned around 100 million Euros and an operating profit of 4 million Euros.

Lafarge India is a subsidiary of Lafarge Cement Company in France. It was established in 1999 in India with the acquisition of Tisco and Raymond cement factories. Lafarge Cement currently has three cement production units in India. One of them is in Jharkhand, which is used for grinding and the other two are in Chhattisgarh, which is used for manufacturing. The Lafarge Cement Company was established in year 1833 by Leon Pavin. Lafarge Cement Company is located in France is the leading cement company in the world. It has plans to increase cement production through technological innovation and maximizing the capacity of the plant. It has a large network of distributors in the eastern part of India. The Lafarge Cement Company is currently producing nearly 5.5 million tonnes of cement in the Indian cement market.