Reaserch Proposal, outline and theoretical framework - Thesis Example

With a Rs. 200 billion investment, the industry now gives a total production of 39 million tons against only 17 million tons in 2002. The cement manufacturers added 8 million tonnes to the capacity and the total production are expected to be 45 million tonnes by the end of 2010. Cement Industry entered in the export market in a big way in fiscal 2007-08. The domestic consumption too has doubled over the last few years because of buoyancy in housing sector. The biggest advantage of domestic cement industry is the availability in abundance of limestone, which is its primary raw material.

Local coal may be able to replace imported coal and there is going to rise in demand, both at home and in export market. However, rising trend is expected to be short-lived due to higher interest rates and inflationary concerns are likely to make it disadvantageous for the investors to enter the construction industry. The cement industry also has challenges to face like rising fuel costs (furnace oil, coal) and political instability as a main contributing factor for pushing up production cost.

Cost of utilities, labour, transportation and financial charges have also increased simultaneously. Moreover recent recession in the Financing Sector and financial crises has badly affected the projects financed by Financial Institutions and especially stretch the construction activities. This thesis intends to examine these issues and see how they will impact on the company Lucky Cement Limited. How far will Lucky Cement be able to overcome the challenges facing it as a result of the changing economic situation?

Will the global economic slowdown, combined with high interest rates, inflationary concerns and political instability pose a series problem for the company? The problems facing Lucky Cement Limited are closely related to the changing economy and this thesis will attempt a financial analysis of the company in