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Kamal Brand: Uncovering the Success Story of cement manufacturing company

Shree Digvijay Cement Co. Ltd is a 100% debt free company engaged in manufacturing and selling of Ordinary & Special Portland cement. The company provides different types of Cements and sells under “Kamal” brand.


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Incorporated in 1944 at Digvijaygram(Sikka), Shree Digvijay Cement Ltd. is into manufacturing and selling of Ordinary & Special Portland cement.

In November 1962, a factory to make asbestos cement pipes and sheets was commissioned, with Johns Manville Corporation, US, serving as technical consultant and sole selling agent in West Asian and African nations. Shree Digvijay Cement Limited (SDCL) began commercial cement manufacture in 1949. Lotus cement was promoted as a brand name.

Since 2019, the co. is part of True North formerly known as India Value Fund Advisors (IVFA). True North Fund VI LLP is the Promoter of the company

Today, SDCL is a pioneer in cement manufacture in India, with an installed capacity of 1.20 million tonnes per year and a Fully Automatic Modern Cement Plant. Its factory is ISO 9001, ISO 14001, and OHSAS 18000 certified. Furthermore, SDCL was one of the first Accredited Companies to be granted a renowned licence from the American Petroleum Institute (API) for the manufacture of Oil Well Cement – API 10A Class G HSR Cement.

SDCL has been a pioneer in supplying high-quality Ordinary and Special Portland Cement. It employs over 300 people and has a Gujarat-wide network of over 1,000 channel partners that sell cement under the brand name “KAMAL CEMENT.”

SDCL provides a one-of-a-kind mix of product quality and customer-tailored logistics solutions via a combination of roads, railways, and captive seaports. Its Captive Sea port can readily accommodate and manage boats ranging in size from 3,000 to 5,000 DWT along the jetty. A safe anchorage for boats weighing 5,000 to 35,000 DWT is accessible 5 kilometres from the port / wharf location. At a distance of 10 kilometres from the port site, 20-25 metres of water is available for safe mooring of 50,000 – 100,000 DWT boats.


SDCL’s fully owned subsidiary is SDCCL Logistics Limited. Transportation, warehousing, fulfilment, global logistics, business analytics, technology, and supply chain solutions are all provided by the organisation.

SDCCL Logistics Limited, with its integrated and contemporary digital multi-modal network of sea, road, and rail, as well as warehouse facilities on India’s Western Coast, is able to deliver customised Supply Chain Solutions to customers in a variety of sectors.

Some of the services provided by SDCCL Logistics are 

  • Break-Bulk Cargo – Import & Export
  • Transportation Solutions
  • Warehousing Solutions
  • Chartering & Freight Forwarding Solutions
  • Commodity Trading


Different types of cements manufactured by SDCL

TASC (Technical Assistance and Service to Customers)

This is one of the very unique kind of service provided by SDCL to its customers. The Technical Services Team, the foremost in its field, collaborates closely with customers to guarantee that products add value and satisfy the demands of their projects in every way. The Technical Services Team collaborates closely with clients, offering both pre- and post-sales support and services. Kamal Cement provides technical support and services before, during, and after the usage of our products through a highly skilled staff of Technical Service personnel and Technical Services Mobile Vans Laboratories. The Technical Services Team does performance testing in order to improve product efficiency by analysing all components, aggregates, and additives. Furthermore, our clients’ technical workers receive theoretical and practical on-the-job training to improve their technical expertise.

Some of the value added services provided are

  • Concrete mix design and cube testing options are provided.
  • Concrete non-destructive testing and construction material testing facilities
  • Training programmes on excellent building methods for masons, site supervisors, and engineers.
  • Services for Mobile Concrete Labs
  • Visits to the field by trained Civil Engineers.
  • Individual household builders are being educated on many areas of building materials and construction.
  • Any other services according to the needs of the customer.


For the Quarter ended Sept 2022 -: Q2FY22

  • Net Revenue increased by 58.7 percent year on year, but fell by 0.5 percent quarter on quarter to INR 1539 million.
  • On a year-over-year basis, healthy topline growth was primarily owing to an increase in sales volume and realisation. Sales volume increased by 41.1 percent year on year, but stayed steady in the first quarter at 2.95 lakh tonnes.
  • Realization per tonne increased by 12.4 percent year on year but fell by 0.2 percent quarter on quarter to INR 5217.
  • EBIDTA increased by 165 percent year on year but decreased by 32.5 percent quarter on quarter to INR 276 million. YoY growth in EBIDTA was supported by solid top-line growth and improved operational efficiency.
  • The decline in operational profit on a quarterly basis was caused by a delayed monsoon, which limited topline growth, as well as a significant increase in fuel and energy prices.
  • EBIDTA margin increased by 721 basis points year on year, but decreased by 850 basis points quarter on quarter to 17.9 percent. EBIDTA/tonne increased by 88 percent year on year while decreasing by 32.3 percent quarter on quarter to INR 935.
  • PAT increased by 415 percent year on year but fell by 38.2 percent quarter on quarter to INR 134 million.
  • YoY improvement in PAT was driven by solid top-line growth and improved operational profit. However, a drop in operating profit resulted in a drop in PAT on a quarter-over-quarter basis.
  • PAT margin increased by 603 basis points year on year and decreased by 532 basis points quarter on quarter to 8.7 percent in Q2FY22.

For the Year ended March 2021- FY21

  • For the latest quarter ending March, 2021, company earned EBIDTA of over Rs.1400/- per tonnes of cement
  • Company’s total income for the year stood at Rs. 50,914.43 lakhs, 7.85% higher over the previous year driven by higher sales volume. 
  • Profit before tax for the year was Rs. 8,293.89 lakhs as compared to Rs.7,657.28 lakhs in previous year. 
  • Profit after tax for the year was Rs. 5,399.17 lakhs as compared to Rs. 5,643.71 lakhs in the previous year. 
  • The growth was recorded mainly due to higher sales volume, cost optimization, higher production & efficiency parameters and sustainable plant operations.
  • Cash and cash equivalent as on 31st March, 2021 was Rs. 12,371.91 Lakhs vis-à-vis Rs. 7,436.26 Lakhs in the previous year.

Cement Production

  • During the year under review, cement production was 10.28 lakhs MT as against 9.93 lakhs MT in previous year. Clinker production was 8.72 lakhs MT as against 8.12 lakhs MT in previous year. The Company has achieved a record cement sale of 10.38 lakhs MT as against 9.83 lakhs MT in previous year apart from clinker sale of 0.69 lakh MT as against NIL clinker sale in previous year.

Management’s Comments and future outlook

Management is optimistic that once the busy season for the cement sector begins next quarter, margins will increase, but the opponent in the form of high energy costs will remain. According to him, the monsoon quarter is the leanest in terms of demand for the cement sector, and when demand is low, the cost of production is significantly greater since the cost of production is distributed across reduced throughput.

Furthermore, as stated by management, cement costs have risen, but they have not kept pace with the rise in energy prices. As a result, cement prices, supported by strong demand, are likely to climb and recoup costs in the future year, resulting in higher margins.

Management is highly optimistic and has confidently expressed that they could be doing more than 1100 EBITA/ Ton from the next quarter that is Q3FY22 and this is despite high energy prices as well as without considering the prise rise. Even in the current quarter on account of monsoon as well as tepid demand for cement company did 1000 Ebitda per ton.

The reason why SDCL is in a good position as compared to other cement companies is because company has its own port from which it could import coal for its use while other cement plants are finding it extremely difficult to even source coal.

For the current quarter company did 3 lakh tonnes of volume and going forward management is expecting volume to be around 3.5 lakh tonnes. Thus when the entire industry is expected to grow around 8-10% as per the management SDCL is expected to grow about 20 odd percent this year.

Sectorial Outlook

Cement is a basic need of humans. As per estimates, cement is the second most consumed product after water. There has been sea change in most things around us and they tend to become obsolete due to technology or preferences. Water and cement both being basic to humans have remained same thirst is best quenched with water and civilization is built by cement. Cement has one added advantage over Water. Unlike water, Cement not consumed today will be consumed tomorrow, the demand may be just postponed. This gives me tremendous confidence that if a cement company is run well, it can give one of the best returns’ money can generate on sustainable basis.

India is the second largest cement producer in the world and accounted for over 8% of the global installed capacity with a cumulative production capacity of nearly 540 million tonnes (MT) in 2020. As India has a high quantity and quality of limestone deposits through-out the country, the cement industry promises huge potential for growth. The Government of India is strongly focused on infrastructure development to boost economic growth and is aiming for 100 smart cities. The Government also intends to expand the capacity of railways and the facilities for handling and storage to ease the transportation of cement and reduce transportation cost. These measures would lead to an increased construction activity, thereby boosting cement demand.

The cement market in India benefits mostly from the four elements listed below: – – Strong cement demand spurred by the government’s focus on infrastructure and affordable housing by 2022. Between FY16 and FY22, demand is predicted to expand at a CAGR of 5.68 percent. – New opportunities will arise as a result of government announcements in late 2020 concerning significant infrastructure projects such as National Highway projects in several states. – The long-term cement demand growth rate is expected to be 1.2 times that of GDP growth. – Between April and September 2020, FDI inflows into the cement and gypsum manufacturing industries totalled $5.28 billion.


Although the firm achieved a poor result this quarter because of a delayed monsoon and higher input costs, we remain optimistic about the company due to its spectacular business resurgence over the last year. With better profitability due to superior management performance, the potential resolution of limestone concerns, and a surge in demand for cement backed by government infrastructure investment and expansion in the real-estate sector, which is expected to continue.

Despite the fact that cement businesses are experiencing a coal scarcity, SDCCL is able to function at full capacity due to its ability to import coal from its own port. Furthermore, the business’s exclusivity in oil well cement, customer-centric strategy, and inexpensive values in comparison to its peers bode well for the company. 

Currently company is completely debt free and as of March 2021 it had highest ever cash and equivalents of 124 crores. Going forward management expects to increase margins as increase in raw materials to some extend had not been passed on to the customers. Thus this makes Shree Digvijay Cement Co. Ltd worth exploring for long term.

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