| B. | OPPORTUNITIES AND THREATS |
| CEMENT | |
| In order to meet future demand for Cement, Industry has taken up large scale addition in capacity during the last three years and further substantial capacity addition is planned during next two years. | |
| Demand for Cement from sectors such as Roads, Railways, Power Projects is expected to improve as Centre is planning for massive investments during Twelfth Plan. Government has been increasing its budget allocation substantially in High-ways, Roads for Rural Connectivity, mass Housing and urban Developments etc. | |
| Non-availability of adequate good quality Coal as well as Railway Wagons for transportation are the main threats, considering the continuous increase in Cement Capacity. | |
| TYRE | |
| Opportunities | |
| - | The national thrust in road infrastructure and construction of expressways and national highways presents a range of opportunities for the tyre industry. |
| - | Early mover advantage in the rapidly growing truck radial segment in India by Birla Tyres where most manufacturers will be adding substantial capacities in FY 2011-12. |
| Threats | |
| - | Continued volatility of raw material prices. |
| - | Currency fluctuation |
| RAYON & TRANSPARENT PAPER | |
| Due to increase in cost of inputs, China, the main competitor in India, also increased its export price of VFY. This led to lesser imports and gave an opportunity to Indian manufacturers to augment their realization and deliveries. However, steep increase in price is posing threats for substitution by cheaper fibres in certain segments. | |
| Price increase of T.P due to steep increase in cost of inputs is posing biggest threat of diversion to cheap imports and other substitutes. The recent regulatory restrictions in usage of plastic may provide an opportunity for increased usage of Transparent Paper. | |
