Company Organization With Functions Of Risk Management

Published Date: 02 Nov 2017

Introduction

Asia Cement Co. Ltd. is South Korea's cement, concrete, and chemical company headquartered in Seoul, Korea. Established in 1965, the company primarily produces remicon and Portland cement. Asia Cement Co., Ltd. is one of the largest manufacturing cement and ready-mixed concrete company in Korea.

In its 45th year in 2010, it is the nation’s key industrial and basic construction material company with 1,000 employees and annual production capacity of 5 million tons of cement manufacturing facilities and 3.6 million cubic meters of ready-mixed concrete. Asia Cement Co., Ltd. has as its resource the most productive limestone mine to last the next 200 years in the domestic cement industry. The headquarter office is located in Gangnam, Seoul, and in the outer regions in cities as Jechon, Anyang, Suwon, Yongin, Daejun and Daegu, there are 9 branch factories and cement silos as well as 10 ramekins factories throughout Korea.

Current management status

Asia Cement Co., Ltd. manufactures and sells cement, remicon, and dry mortar, the 3 major construction materials, and since June 1993 has been concentrating on strengthening its competitive power through continuous management reform that include restructuring and consolidation of integrated management information system. Productivity was greatly improved through introduction of TPM activity into the main factory as well as the branch factories. The basic cost was greatly reduced through reuse of large amounts of waste material at the Jechon Factory that is fully equipped with recycling facilities.

As a result the company reports outstanding financial record of about 323 billion won in annual sales with 26 billion won in net income in 2009.

Among the domestic cement companies the Asia Cement Co., Ltd. maintains the most stable and secures financial structure reporting the debt-to-equity ratio of about 18 % and capital-to-capital surplus and retained earnings ratio of approximately 2,800%. In 2009, the Asia Group including all subsidiaries in industries of cement, paper, finance and recreation reported annual sales of 816 billion won and net income of 38 billion won and 1,172 billion won in total assets.

Subsidiaries

The Asia Cement Co. Ltd. operates as its subsidiaries Asia Industry Development Co. Ltd. that manufactures cement-related products and aggregates.

The subsidiaries also include Asia Paper Manufacturing Co., the largest industrial paper producer in Korea and Asia Paper Tec Inc. and the Jeil Industry, the producer of cardboards. The other paper-related companies are Yujin Paper and A-Pack and Kyung-San paper.

It also owns and operates Gyeongju world resort, the largest amusement theme park in the Youngnam region that includes a water-park. There is also Wooshin Development Finance Co. Ltd., a venture capital investment company.

Products

Portland Cement

Dry Moltal

Cement

Remicon

Tansit

Manufacturing networks

Seoul

Gunpo

Suwon

Yongin

Daejeon

Jecheon

Daegu

Sales yard

Deokso

Hongseong

Daegu

Branches

Daegu

Daejeon

Gyeongju

Organization

Here is our organization chart：http://www.asiacement.com.tw/en/about/images/organize.gif

Company Organization with Functions of Risk Management

Department

Primary Functions

Auditing Dept.

Directly report to ACC Board of Directors. Plan and revise internal control system, evaluating each department’s operation and procedures in order to work out risk-management orientated annual auditing plan.

Compensation Committee

Prescribe and periodically review the performance and remuneration policy for directors, supervisors and managerial officers.

President Office

Assist ACC President to deal with daily affairs, plan operation strategies, and review the middle-term and long-term investment to reduce the risks resulting from improper decisions.

Credit Committee

Execute "Regulations for Managing Client’s Credit" enacted by the Company and take charge of risk control of account receivable.

Human Resource Committee

Review and advice to modify the Company’s organization structure, rules of personnel management, and other important human resource matters.

Secretarial Dept.

Handle the affairs of general services, secretary, legal affairs, public relations, etc. Reinforce employees’ concepts of "administration according to the law" to decrease the risks of violating law."

Human Resource

Dept.

Plan and implement human resource policies to reduce relevant risks.

Occupational Safety Office

Responsible for occupational safety and health management, formulating policies and supervising related affairs to ensure safety of workers and reduce the risk and loss of occupational hazards.

Accounting Dept.

Handle all accounting matters including the costs, accounts, taxation to ensure management efficiency of the Company’s operation, the reliability of financial report, and the adherence of related accounting regulations to reduce company operation risks.

Finance Dept.

Responsible for operational financial strategy, investment strategy, financial management and strategy, dividend strategy as well as investor relationship in order to minimize financial exposure, uphold financial opportunity and maximize shareholders’ best interest.

IT Dept.

Cope with all affairs relating to information operation system, office automation, internal and external website applications and information security to the needs of operation, management and strategy to prevent the risk of information security and its efficiency.

Domestic Sales Dept.

Plan and implement domestic marketing strategy, credit customers, and identify market trends to achieve business goals and reduce relevant risks.

Export Sales Dept.

Plan and implement oversea marketing strategy, credit customers, and identify market trends to achieve business goals and reduce relevant risks.

Purchasing Dept.

Handle all purchasing and contract issuing matters, setting up hedging mechanism to cope with changes in raw materials prices and shortage of raw materials supply.

Hsinchu Plant

Take charge of R&D, production technology, quality control, planning production policies in collaboration with sales strategies to reduce production risks.

Hualien Plant

Take charge of R&D, production technology, quality control, planning production policies in collaboration with sales strategies to reduce production risks.

MANAGEMENT TEAM

Position

Name

Education(Job Experience) Background

President

K.Y.Lee

Chairman,Ya Tung Ready-Mixed Concrete Corp.

Chief Executive Vice President

Y.F.Chang

Bachelor degree in Chemical,TungHai University

Executive Vice President

R.H.Shao

Bachelor degree in Accounting,Soochow University 

Chief Auditor

Y.M.Shih

Bachelor degree in Accounting,Soochow University

Vice President

Doris Wu

Bachelor degree in Accounting,California State University

Vice President

C.M.Chen

Bachelor degree in International Trade,TamKang University

Vice President

W.K.Chou

Bachelor degree in Law,Soochow University

General Plant Manager

Z.P.Chang

Bachelor degree in Electrical Engineering,National Taiwan University

Manager of the Hsinchu Plant

Z.F.Lin

Bachelor degree in MechnicalEngineering,National Taipei University of Technology

Assistant Vice President

C.P.Sue

Bachelor degree in Marine Engineering,National Taiwan Ocean University

Assistant Vice President

T.L.Yu

Bachelor degree in Business Administration,University of The Philippines

Manager of Accounting Dept.

W.H.Yeh

Bachelor degree in Accounting,Soochow University

Manager of Domestic Sales Dept.

M.C.Chen

Bachelor degree in Business Administration,Feng Chia University

Manager of Secretarial Dept.

Manfred Wang

Bachelor degree in Law,Soochow University

Special Assistant of President Office

T.M. Chen

Bachelor degree in sociology,National Taiwan University

Internal Audit

The organization of Internal Auditing Department is directly subordinated to the board meeting. For the further information, please check the organization chart:

The organization chart of Internal Auditing Department:

http://www.asiacement.com.tw/en/about/images/check_org.gif

Articles of Incorporation

Article 1

The Company is duly incorporated under the provisions of the Company Act of the Republic of China, and shall be called "Asia Cement Corporation".

Article 2

The Company's businesses are as follows：

C901030 Cement manufacturing

C901040 Ready-mixed concrete manufacturing

B601010 Quarrying

C901050 Cement and ready-mixed concrete products

C901990 Non-metallic mineral products

F111090 Whole sale of building materials

F211010 Retail sale of building materials

F401010 International trade

IZ06010 Tally and packing

A201010 Afforestation business

H701010 Developing, leasing, and selling residential and business buildings

H701020 Developing, leasing, and selling industrial factories

H703100 Real estate rental & leasing

H703090 Real estate sale & purchase

JE01010 Rental and leasing

G202010 Parking-lot business

G801010 Warehousing

I103060 Business management consultation services

J101040 Waste treatment

Except where permits are required, to run operations not forbidden or limited by laws and regulations.

Article 3

The Company may provide guarantee according to the Procedures for Endorsement & Guarantee of Asia Cement Corporation.

Article 4

Where the Company invests in other companies and becomes a shareholder with limited liability, its total investment may exceed 40% of its paid-up capital as stipulated under Article 13 of the Company Act, subject to approval of the Board of Directors.

Article 5

The Company shall have its principal business office in Taipei City, Taiwan and have its manufactories in Dadu Village, Hengshan Township, Hsinchu County and Sincheng Village, Sincheng Township, Hualian County. The Company may, depending on the circumstances of production and business, set up domestic and foreign branch offices and branch factories.

Chapter II– Shares

Article 6

The Company's total capital shall be Thirty-six billion New Taiwan Dollars (NT$36,000,000,000) divided into 3,600,000,000 shares of NT$10 each. The Board of Directors is authorized to issue the un-issued shares in separate trenches.

Out of the above total capital amount, One Hundred Million New Taiwan Dollars (NT$100,000,000) shall be divided into 10,000,000 shares of NT$10 each, to be issued as warrants for employees to subscribe.

Article 7

Shares issued by the Company are not required to be evidenced by share certificates, provided that they shall be recorded at the securities central depository enterprises.

The Company can issue prefer shares. 

In the event that the Company mergers with another company, matters relating to the merger need not be approved by way of a resolution of the shareholders meeting of prefer shares.

Article 8

Matters relating to the Company's shares shall be dealt with according to the provisions of "Regulations Governing Handling of Stock Affairs by Public Companies" and the relevant laws and regulations.

Article 9

Registration of share transfer shall be closed within 60 days prior to the general shareholders' meeting, or within 30 days prior to an extraordinary shareholders' meeting or within 5 days prior to the record date on which Company distributes the dividends or bonuses.

Chapter III - Shareholders' Meeting

Article 10

The shareholders' meetings shall be general or extraordinary shareholders' meetings.

=> General shareholders' meeting shall be held once a year within 6 months of the end of the Company's financial year.

=> Extraordinary shareholders' meeting shall be convened by the Board of Directors where it thinks necessary, or by way of written request by shareholders who have held continuously the Company's shares for more than 1 year and whose shareholdings are greater than 3% of the Company's issued shares.

=> Other than where the Board of Directors has not convened or is unable to convene shareholders' meeting, the Supervisor may also convene shareholders' meeting for the benefit of the Company.

Article 11

Notices of general shareholders' meeting shall be in writing and delivered to the shareholders along with a public notice 30 days prior to the general shareholders' meeting and 15 days prior to the extraordinary shareholders' meeting. The said notices shall specify the date, place and reasons for calling the shareholders' meeting.

Article 12

Unless otherwise stipulated by the Company Act, a quorum shall be present at the shareholders' meeting if shareholders representing more than half of the shares issued by the Company are in attendance and resolutions at the said assembly shall be passed if approved by a majority of the shareholders in attendance.

Article 13

Shareholders may by way of power of attorney stamped with the seal registered with the Company appoint proxies to attend the shareholders' meeting. Except for trust enterprises or share registration agencies approved by the securities authorities, when one shareholder is entrusted by two or more shareholders, the voting right represented by the said shareholder shall not exceed 3% of the voting rights of total shares issued. Where it has so exceeded, the voting right in excess shall not be included.

Unless otherwise stipulated by the Company Act, attendance of shareholder's proxies shall be in accordance with the provisions of "Regulation Governing the Use of Proxies For Attendance of Shareholders' Meeting of Public Companies".

Article 14

Unless otherwise provided for in the Company Act and the Articles of Incorporation, shareholders' meeting shall be conducted in accordance with the Company's regulations for shareholders' meeting

Article 15

Minutes and resolutions of shareholders' meeting shall be recorded and signed by or affixed with the seal of the chairman of the meeting. The said minutes and resolutions, signed by the chairman of the meeting, shall specify the date and place of the shareholders' meeting, number of shares represented by the shareholders (or proxies) present at the meeting; number of voting rights represented; name of the chairman of the shareholders' meeting; resolutions and the manner in which they are passed. The said minutes and resolutions shall be kept, together with the register of shareholders' attendance and the proxies' powers of attorney, in compliance with the law.

Chapter IV – Directors, Supervisors and Managerial Officers

Article 16

There shall be 13 Directors and 5 Supervisors of the Company, who are elected and appointed from the persons with legal capacity at the shareholders' meeting. The total number of the registered shares of the Company held by all of the Directors and Supervisors shall be determined according to the provisions of "Rules and Review Procedures for Director and Supervisor Ownership Ratios at Public Companies".

The term of office of Directors and Supervisors are for a period of 3 years. They may be reappointed following their re-election.

Article 17

The Board of Directors of the Company shall comprise the directors to exercise the Director’s power and authority. A Chairman and a Vice Chairman shall be elected from and among the Directors to represent the Company. Where the Chairman is on leave or absent or cannot exercise his/her power and authority for any cause, the Vice Chairman shall act on his/her behalf. Where the Vice Chairman is also on leave or absent or cannot exercise his/her power and authority, the Chairman of the Board of Directors shall designate one of the Directors to act on his behalf. In the absence of such a designation, the Directors shall elect from and among themselves an acting chairperson of the Board of Directors.

Article 18

Meetings of the Board of Directors shall be quarterly convened by the Chairman. Unless otherwise provided for in the Company Act, resolutions of the Board of Directors shall be adopted by a majority of the directors at a meeting attended by a majority of the Directors. The Chairperson may where necessary convene extraordinary meetings of the Board at any time.

When a Director is unable to attend the meeting of the Board of Directors in person, he/she may be represented by another Director in accordance with laws.

The meeting notice of the Board of Directors could be made in hard copy, e-mail, or fax.

Article 19

The Supervisors shall perform their duties of supervision in accordance with laws; furthermore Supervisors may attend meetings of the Board of Directors and present their views, but may not have voting rights. Supervisors may elect from among them a Resident Supervisor to perform the daily supervisory duty.

Article 20

The percentage for the remuneration of Directors and Supervisors shall be determined by the shareholders' meeting.

The Directors and Supervisors who conduct the business may be paid salaries according to the standard of employees and approved by the Board of Directors deliberating about the standard of other relevant companies in the same industry and listing companies.

Article 21

The Company shall have a President, Vice Presidents, Chief Auditor, General Plant Manager, Chief Engineer, Assistant Vice Presidents, Deputy Chief Auditor, Managers, and Plant Managers. The appointment and dismissal of the above staffs shall be approved by the resolutions of the Board of Directors and adopted by a majority of the Directors at a meeting attended by a majority of the Directors.

Article 22

The Chairman, Vice Chairman and President shall handle the daily affairs of the Company in compliance with the resolutions of the Board of Directors.

Chapter V – Accounting

Article 23

The Company's fiscal year shall commence on January 1st of each year, and ends on December 31st of the same year. The final accounts are settled at the end of the Company's fiscal year.

Article 24

The Board of Directors shall in accordance with laws furnish various documents and statements and forward the same to the Supervisors for review no later than 30 days prior to the general shareholders' meeting, following which the said statements reviewed by the Supervisors and their reports shall be submitted for approval at the general shareholders' meeting.

The appointment, dismissal and remuneration of the accountants, who audit and review the above documents and statements, shall be resolved at the meeting of the Board of the Directors.

Article 25

The distribution of dividends shall take into consideration the changes in the outlook for the Company's businesses, the lifespan of the various products or services that have an impact on future capital needs and taxation. Dividends shall be distributed at the ratio as set forth in these Articles of Incorporation aimed at maintaining the stability of dividend distributions. When distributing dividends, the cash dividends shall not be less than 10% of the aggregate sum of dividends and bonus distributed in the same year.

Article 26

Apart from paying all its income taxes in the case where there are net income at the end of the year, the Company shall make up for accumulated losses in past years. Where there is still balance, 10% of which shall be set aside by the Company as legal reserve and a special serve as required by law shall be set aside. Subject to certain business conditions under which the Company may retain a portion of the remaining balance, the Company may distribute to the shareholders the remainder together with undistributed profits from previous years in the following manner:

- 60% as share interest, to be distributed based on the shareholding of each shareholder. However in the case of increase in the Company's share capital, unless otherwise provided by laws, the share interest to be distributed to the shareholders of increased shares for the year shall be decided by the shareholders' meeting.

- 33% as shareholders' bonuses to be distributed based on the shareholding of each shareholder. However in the case of increase in the Company's share capital, the shareholders' bonus to be distributed to the shareholders of increased shares for the year shall be decided by the shareholders' meeting.

3% as remuneration for Directors and Supervisors.

4% as Employees' bonuses.

Article 27

Allocation of surplus assets to prefer shares of the Company shall not exceed the par value.

Chapter VI – Supplementary Provisions

Article 28

The organizational rules and bylaws of the Company shall be drawn and amended additionally.

Article 29

All matters not covered herein shall be undertaken in accordance with the Company Act and the other relevant laws and regulations.

Article 30

At the close of each fiscal year, all the statements and records of accounts prepared by the Board of Directors shall be submitted to each shareholder after the ratification by the general shareholders' meeting in accordance with Paragraph 1, Article 230 of the Company Act.

Article 31

These Articles of Incorporation were drafted on January 27, 1957, and came into effect following its approval by the competent authorities. Amendments shall take effect following their approval at the shareholders' meetings.

First amendment on March 5, 1958;

Second amendment on February 5, 1960;

Third amendment on October 20, 1961;

Fourth amendment on April 21, 1962;

Fifth amendment on March 24, 1963;

Sixth amendment on October 22, 1963;

Seventh amendment on July 28, 1964;

Eighth amendment on October 22, 1965;

Ninth amendment on April 23, 1966;

Tenth amendment on April 15, 1967;

Eleventh amendment on April 22, 1968;

Twelfth amendment on April 30, 1969;

Thirteenth amendment on April 25, 1970;

Fourteenth amendment on July 8, 1970;

Fifteenth amendment on April 28, 1971;

Sixteenth amendment on April 27, 1973;

Seventeenth amendment on May 3, 1974;

Eighteenth amendment on April 28, 1975;

Nineteenth amendment on April 8, 1976;

Twentieth amendment on September 24, 1976;

Twenty-first amendment on April 15, 1977;

Twenty-second amendment on April 21, 1978;

Twenty-third amendment on April 26, 1979;

Twenty-fourth amendment on April 21, 1980;

Twenty-fifth amendment on April 24, 1981;

Twenty-sixth amendment on April 28, 1982;

Twenty-seventh amendment on April 28, 1983;

Twenty-eighth amendment on April 25, 1984;

Twenty-ninth amendment on April 29, 1985;

Thirtieth amendment on April 23, 1986;

Thirty-first amendment on April 16, 1987;

Thirty-second amendment on April 12, 1988;

Thirty-third amendment on April 12, 1990;

Thirty-fourth amendment on April 12, 1991;

Thirty-fifth amendment on May 7, 1992;

Thirty-sixth amendment on May 7, 1993;

Thirty-seventh amendment on May 6, 1994;

Thirty-eighth amendment on April 28, 1995;

Thirty-ninth amendment on May 17, 1996;

Fortieth amendment on May 14, 1997;

Forty-first amendment on May 13, 1998;

Forty-second amendment on May 14, 1999;

Forty-third amendment on May 12, 2000;

Forty-fourth amendment on May 16, 2001;

Forty-fifth amendment on June 7, 2002;

Forty-sixth amendment on June 9, 2005;

Forty-seventh amendment on June 7, 2006.

Forty-eighth amendment on June 17, 2008.

Forty-ninth amendment on June 22, 2011

ENVIRONMENTAL POLICIES

The ISO-14001 environmental management system has become a worldwide trend. Showing its determination to protect the environment, on November 15th 1996, our Hualien Plant was awarded the first ISO-14001 certification by the Bureau of Commodity Inspection & Quarantine. The Hualien Plant continues its efforts with environmental protection, and now enthusiastically carries out the agressively protection system based on the principals as follows:

To preserve the natural landscapes

To improve the technology of preventing pollutions

To implement waste reduction and resource recovery

To be a good neighbor to the surroundings

Thanks to its successes in environmental management, our Hualien Plant has received praise and recognition from the government, visitors, and the peers, both in Taiwan and abroad. In addition, the Hualien Plant has frequently been cited as a model of environmental protection by governmental and academic organizations.

http://www.asiacement.com.tw/en/envir/images/ISO1.jpghttp://www.asiacement.com.tw/en/envir/images/ISO2.jpghttp://www.asiacement.com.tw/en/envir/images/ISO3.jpg

Prevention of Air Pollution

A major part of manufacturing cement is to deal with dust. The creation of dust causes not only air pollution but loss of production as well. Our company has been putting considerable emphases on the performances of dust-collection, consistently introducing the most advanced facilities to the new plants established. So far our Hualien Plant has been equipped with nine electro-static precipitators and seventy-five bag filters, worth over NT$950 million.http://www.asiacement.com.tw/en/envir/images/air.jpg

Thanks to the state-of-the-art facilities, which perform an outstanding job in collecting dust, the amount of dust emitted is all within the range of legal regulations, enabling the quality of air around the plant sites far above the national standards. The Hualien Plant, above all, has been tested by environmental protection authorities that the amount of dust emitted from the plant’s chimneys is below 25 mg per normal cubic meter, far below the government-imposed ceiling. Such outstanding performances have made the Hualien Plant selected by the Chinese National Federation of Industries as one of the nation’s exemplary plants in terms of preventing industrial pollution, awarded by the Environmental Protection Administration as one of the ten major distinguished plants in terms of pollution prevention, and a remarkable winner of Enterprise Environmental Protection Awards in three consecutive years.

Re-vegetation of Quarry Areas

Water and soil conservation has been well implemented in the quarry areas of our Hsinchu Plant and Hualien Plant. In order to comply with the greenification promoted by the government, a variety of trees, such as Taiwan Acacia, Miscanthusfloridulus（Labill）Ward, Formosa Sweet Gum, MicheliaFormosana, and Taiwan Alder, have been planted in the plant site. Close to the Taroko National Park, the Hualien Plant makes special efforts to plantation and re-vegetation. Over the years it has channeled sizable manpower and funds into greenifying its mined areas and has proved the bid highly successful. Besides, in order to do an even better job, the Hualien Plant has begun cooperation with the ROC Society of Engineering Environment and the ROC Association of Ecological Protection, which provide plantation expertise and transfer management technology and run a nursery for large-scale cultivation of seedlings. Because of its outstanding record in the field, the Hualien Plant was awarded a medal by the Chinese Institute of Mining And Metallurgical Engineers and was cited several times by the Taiwan Provincial Bureau of Mines as a model mine. In 1992, the Hualien County Government and in 2003, Environment Greenery Association presented the Hualien Plant with a citation in recognition of its excellent achievement in greenifying as ACC commited.

http://www.asiacement.com.tw/en/envir/images/green2.jpghttp://www.asiacement.com.tw/en/envir/images/green1.jpghttp://www.asiacement.com.tw/en/envir/images/green3.jpg

Butterfly Conservation

Our company so emphasizes the environmental conservation, then we have been establishing the preservation area of butterfly in Hualian’s plant since 2004. There are several races of plants, like bee plants.

While you are walking in the alley of the butterfly preservation area, you will be so surprised seeing over 35 races of butterfly, including Triodes abacus, Papiliopolytes, Idea leuconoe, Hebomoiaglaucippe and so on. Each vistor is very impressed by this butterfly area around cement plant.

http://www.asiacement.com.tw/en/envir/images/butterfly_8.jpghttp://www.asiacement.com.tw/en/envir/images/butterfly_7.jpghttp://www.asiacement.com.tw/en/envir/images/butterfly_5.jpghttp://www.asiacement.com.tw/en/envir/images/butterfly_6.jpg

Scope of cement industry in India

The Indian cement industry is the 2nd largest market after China accounting for about 7-8% of the total global production. It had a total capacity of about 330 m tonnes (MT) as of financial year ended 2011-12. Cement is a cyclical commodity with a high correlation with GDP, growing at around 1.2x of GDP growth rate. The housing sector is the biggest demand driver of cement, accounting for about 64% of the total consumption. The other major consumers of cement include infrastructure (17%), commercial & institutional (13%) and industrial segment (6%).

Despite the fact that the Indian cement industry has grown at a commendable rate in the last decade, registering a compounded growth of about 8%, the per capita consumption still remains substantially poor when compared with the world average. This underlines the tremendous scope for growth in the Indian cement industry in the long term.

Cement, being a bulk commodity, is a freight intensive industry and transporting it over long distances can prove to be uneconomical. This has resulted in cement being largely a regional play with the industry divided into five main regions viz. north, south, west, east and the central region. The Southern region of India has the highest installed capacity of about 120.1 mtpa.

Key Points

Supply

The demand-supply situation is highly skewed with the latter being significantly higher.

Demand

Housing sector acts as the principal growth driver for cement. However, industrial and infrastructure sectors have also emerged as demand drivers.

Barriers to entry

High capital costs and long gestation periods. Access to limestone reserves (key input) also acts as a significant entry barrier.

Bargaining power of suppliers

Licensing of coal and limestone reserves, supply of power from the state grid etc. are all controlled by a single entity, which is the government. However, nowadays producers are relying more on captive power, but the shortage of coal and volatile fuel prices remain a concern.

Bargaining power of customers

Cement is a commodity business and sales volumes mostly depend upon the distribution reach of the company. However, things are changing and few brands have started commanding a premium on account of better quality perception.

Competition

Intense competition with players expanding reach and achieving pan India presence