Here’s How to Start a Cement Business

Starting a new cement factory is an adventure that will require hard work, grit and guts
  • BY Jaspreet Kaur

    Feature Writer, BusinessEx

  • |
  • Jul 06,2021
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  • 9 Mins Read

India has the world's 5th largest construction and infrastructure market. It is the third highest globally for civil engineering, and twelfth for overall construction. The sector in India represents 40 per cent of total corporate investments; it has the largest manufacturing sector of any Indian industry with an annual production of INR 5 trillion (about $100 billion inclusive of imports). Construction employs 8.5 million people (2011) â?? over 3 per cent of the total workforce of 70 million people in India's labor force.

A cement factory is a tough business. It is competitive, capital intensive and involves a lot of heavy lifting and unglamorous labor. Starting a new cement factory is an adventure that will require hard work, grit and guts. Few businessmen are prepared for the ride - potholes are inevitable even for the toughest road warrior.

Finding the Right Location 

A plant location is a crucial element in deciding the success or failure of a cement business. The location is chosen after considering several factors like variation in rainfall, power availability, law and order situation, proximity to coal or limestone mines, etc.

Creating a Budget 

A cement plant usually takes many months to start up once construction is complete. The costs are incurred over this period and the revenue received is the value of the finished good. One way of forming a budget for Cement Factory is to compare the cost estimates and income estimates to each other. 

As a business owner you need to be aware of the budget for your cement factory and ensure that it is updated as per the recent expenses. The task however can be tough because, apart from other expenses, your company has to make payments on employee salary on a monthly basis. You need to plan well in order to keep generating enough income each month.

Requiring Raw Material 

Raw material requirement for cement plant(s) along with other raw material necessary for cement plant. Cement is required to build everything. In today's world it has become an important construction material. Good cement requires good raw material to produce. 

There are many raw materials that are required for the cement business. However, limestone is the major basic raw material to be used in the cement industry. Limestone is a fine white or grey, powdery or hard sedimentary rock composed primarily of calcium carbonate (CaCO3). The chemical formula of calcite is CaCO3, which is dissolved in water as the calx or the decahydrate CaCO3.

Manufacturing the Cement 

The manufacturing process for cement is quite complex, and the fuels used in the process are also very complex. Cement is a manufactured product of the chemical industry, just like aluminium or sulphuric acid. And its ingredients include limestone, clay, iron ore and coal.

Follow all these steps as they will help you effortlessly start a cement business. If you know more tips about the cement business, then share with us in the comment section below.

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