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Cement sector, northern cement manufacturers, urban infrastructure, housing and replacement demand for cement, concretization of roads, Common Wealth games drive cement volumes.
In our previous articles, we looked at how did the company fare in terms of topline, bottomline and the cost control initiatives taken by the company. In this article, we will take a look at ratios.
In the previous articles, we made an attempt to portray JK Cement's journey and analysed it on the basis of five-force model of Michael Porter.
In the previous article, we gave an insight into the company's business and how it has evolved since inception. In this article, we shall profile the cement sector and JK Cement's standing within the industry by applying the Michael Porter's analysis.
Cement is a product of high volumes and therefore, transporting it over large distances can prove to be uneconomical. This makes it imperative for the plants to be located near markets. In some cases, the plants also tend to be located near the limestone reserves (a major raw material for cement) from where the cement is transported to nearby states.