Case Title	Consolidation in the Indian Cement Industry
Case Author(s)	Ajit Shankar R. N. Sanjib Dutta
University	ICFAI Center for Management Research, India
Abstract	The case looks into the consolidation going on in the cement industry in India. Through its almost century long existence, the cement industry in India has grown to a stage where it has become the second largest producer of cement in the world. After the dismantling of government controls for the cement industry in 1989, the rate of growth in capacity addition in the cement industry increased. Due to the increased production and the lack of matching consumption, there was excess capacity in the market which resulted in companies struggling to remain viable. Entry of foreign players resulted in the consolidation of the fragmented industry. The case looks into the major acquisition deals that happened during the past decade and also deals with the role cartels played in the pricing of cement in various markets. The case deals with the latest trends of the Indian cement industry and ends with an outlook for the industry in the future.
Available In	ECCH Case Collection
Publisher	ICFAI Center for Management Research (ICMR)
Publisher Case No.	305-166-1
Distributor(s)	European Case Clearing House
Pub/Rev Date	2005
ISBN
Case Length	27 pgs
Teaching Note	Yes
Pub TN Ref No.	305-166-8
Pages (TN)	4 pgs
Issues	The consolidation going on in the Indian cement industry; why an industry consolidates and what is the effect of consolidation on an industry; how companies use acquisition as a way to stall the entry of a foreign players into the local market; the role played by cartels in a market; the necessity for geographical proximity to the consumer; and how the entry of major foreign players can bring about a change in acquisition values.
Organisation(s)
Countries	India
Industry	Metals & Mining
Period Covered	1997 - 2005
Level	Postgraduate
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