| B. OPPORTUNITIES AND THREATS | |
| CEMENT | |
| In order to meet future demand for Cement, Industry has taken up large scale capacity expansion during the last three years and further substantial capacity addition is planned during next two years. | |
| Creating world class road infrastructure for laying highways, road to rural connectivity, mass housing, urban development and projects for upliftment of rural economy etc. are some of the major thrust areas of Government and to achieve these objectives, Government has been increasing substantially its budget allocation in the last two years. | |
| Heavy augmentation in capacities by 70-80 million ton in next two to three years coupled with non-availability of good quality of coal and inadequate wagons for transportation are the main threats. | |
| TYRE | |
| The national thrust on road infrastructure, construction of expressways and national highways present a range of opportunities for the Tyre Industry. Creation of road infrastructure has given some fillip to surface transportation. Emphasis on making India an Auto Centre for small cars also augurs well for the Industry. The Tyre industry will continue to play an important role in this dynamic and evolving situation. | |
| The volatility in raw material prices is the biggest threat. | |
| RAYON & TRANSPARENT PAPER | |
| The curtailed production of VFY due to suspension of operations by few competitors created supply gap, which resulted in an opportunity to maintain the inventory. However, regular imports and stiff Chinese competition in International Market are the biggest threats to the VFY Industry. | |
| The TP segment is affected by slowdown in demand from ‘Fireworks’ Industry. Any increase in selling price due to increase in costs of inputs is threatened by diversion to cheaper alternatives. | |
| The volatility in raw material prices and imports from China, however, remains the biggest threat. | |
| HEAVY CHEMICALS | |
| Ongoing capacity addition and Greenfield projects in Aluminium sector in Eastern India will improve demand for Caustic Soda in the coming years. Lower production cost of larger capacity Caustic Soda Plants in Eastern India may affect competitiveness of the Unit. | |
