Supply Chain in Cement Industry

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Acknowledgement A big Thank You to each one of the people involved with me and helped and stood by me during my year-long project. I am grateful to my guide for being patient and kind and poring through all my documents with great attention and care. He took great pains to go through the entire project and make necessary corrections as and when required. A deep sense of gratitude to the ACL team comprising Wilson Fernandes, SCM Head; A. Singhal, Purchasing Manager; and Sanjay Gupta, Head Marketing, without who my paper would not have been complete. I would also like to thank my institution and faculty members without whom this project would have been a distant reality. EXECUTIVE SUMMARY Ambuja…show more content…
New capacities have gone well beyond the demand. Unlike the Indian steel sector, cement industry is mostly privately owned. Till, the early 80s cement production capacities were much less than the demand. Even after independence, until 1982, the stringent controls imposed during the Second World War had continued. The Government, being the largest buyer of cement for infrastructure projects, found the price controls convenient. The cement price was kept low. To address to the problem of mismatch in demand and supply, the Government imposed stringent controls on distribution of cement. Cement was scarce and commanded a high premium in the black market. In February 1982, there was partial decontrol. A proportion of the production was treated as levy cement and bought by the Government at a fixed price. The rest was allowed to be sold at market prices. With effect from March 1989, the partial control was also lifted. The environment for the liberated cement industry turned competitive. During the decade of 1980s, the technology in the production of cement changed. Two major changes were: Manufacturers of cement moved away from the wet process technology to dry process technology. Manufacturing units moved from small kilns of 600 – 1200 tons per day (tpd) to huge kilns of 3000 tpd. 1.2 PRODUCTION PROCESS Cement is produced in four basic stages, i.e. quarrying and crushing; grinding
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