The prosperity of a country depends directly upon the development of agriculture and industry. The role of manufacturing sector (industry) is very decisive for a developing nation. India is fast emerging country on the world map as a strong economy and global power. The country is going through a phase of rapid development and growth. Cement is one of the essential industries which plays a vital role in the growth and development of a nation. The cement industry has carved out a niche for itself in the industrial map of the country by its spectacular and impressive growth, despite the price and distribution controls as exercised by the Government more or less on a permanent basis. The Indian cement industry is the second largest industry in the world after China accounting for about 8 per cent of the total global production (Cement Sector Analysis Report April, 2014).1 In spite of the fact that the macro level scenario of cement industry is very bright and promising, Industry circle raises hues and cries about the fall in operating profit over the years. Fall in the level of operating profit will affect, the working capital position as operating profit is a major source of working capital which ultimately threatens the short term solvency and the interest cover and eventually shaken the long term solvency. It is necessary to keep the cement industry going since lakhs of people directly depend on it.
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