• Dr Gurnam Singh Rasoolpur

This empirical paper attempts to study the desirable capital structure of Cement industry of the Indian corporate sector. The study is limited to top 13 firms from Cement industry out of top 500 manufacturing firms selected on the basis of the turnover for the year 2004-2005 which covers the time span of eleven years commencing from 1995-96 to 2005-06. It has been observed that more than half of the companies (54.35 percent) in Cement industry are in 100-200 percent capital structure range during the study period. It means that in this industry, such companies are following liberal and safe approach of financing through debt. These companies are using more amount of debt in their capital structure than their own capital but less than the well established standard range of 200 percent(2:1) while It has been observed that one-fourth (25.36 percent) companies in Cement industry are in the 0-100 percent capital structure range during the study period. It means that in this industry, such companies are following conservative approach of financing through debt. So in this industry, comparatively lesser number of companies is lying in this capital structure slab during the study period. However, debt capital is a cheaper source of finance, thus, the use of debt may maximize the value of wealth of shareholders. It is observed that number of companies in 0-10 percent and 10-20 percent capital structure ranges is nil in Cement industry during the study period. Thus it is finalised that companies in Cement industry are following liberal and safe approach of financing through debt in the composition of their capital structure during the study period.

Conservative, Liberal, Aggressive, Capital Structure, Shareholders

"CAPITAL STRUCTURE OF CEMENT INDUSTRY: AN EMPIRICAL EVIDENCE FROM INDIA", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.5, Issue 11, page no.794-801, November-2018, Available :http://www.jetir.org/papers/JETIR1811C22.pdf

"CAPITAL STRUCTURE OF CEMENT INDUSTRY: AN EMPIRICAL EVIDENCE FROM INDIA", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.5, Issue 11, page no. pp794-801, November-2018, Available at : http://www.jetir.org/papers/JETIR1811C22.pdf