Concrete

Southern Comfort

Published

9 years ago

January 31, 2017

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If southern manufacturers are able to restore pricing in subdued markets, earnings may potentially surprise in FY18, says Vaibhav Agarwal of PhillipCapital.

We visited cement manufacturers, channel partners, builders and contractors in south India in the 2nd week of January 2017 for an update on the current situation and the forward outlook. The feedback from southern India continues to remain very positive, especially the volume commentary. Price upticks are likely to be seen in pockets where pricing is subdued (for example, in markets like Maharashtra and Gujarat, where southern players have an exposure).

In markets where prices are already buoyant, no major upticks may be expected. Cost pressures will be felt in Q3 with increase in fuel prices, but we don’t expect all companies to face a similar impact on the cost front.

Ramco Cement is believed to be best placed with high inventories of low cost fuel which will suffice requirements till 1QFY18. Debt repayment continues to remain the key objective of southern companies, and we see no deviation in management commentary on this front. India Cements is expected to repay debt of more than Rs 2 billion in the current fiscal, and the run rate is likely to increase in FY18. The commentary on east India volumes also seems to be encouraging, and Dalmia Bharat will be amongst the key beneficiaries here. We reiterate’Buy’ calls on south Indian cement manufacturers and maintain our price objectives with +50 per cent returns expected in our coverage universe of southern manufacturers.

No impact of demonetisation
The feedback from all southern Indian leaders continues to suggest that there has been no impact of demonetisation on volumes for cement manufacturers. All manufacturers are expected to report high double-digit growth in Q3. This is partially on account of low base effect, but even if we compare on a sequential basis, the volume impact for southern companies is likely to be very marginal (largely flattish). Notably, Q3 is a weak quarter for south India as it is the monsoon quarter.

Turnaround year for capacity utilisations
Management commentary remains extremely positive on volumes. Good demand revival is being sensed by southern manufacturers in Telangana and Andhra Pradesh. The commentary also remains very positive on eastern volumes. Both manufacturers and channel partners expect FY18 to be a turnaround year and expect utilisation uptick of 4-5 per cent for the region as a whole, from current utilisations of about ~60 per cent.

Focus on volumes
We see that all southern Indian cement manufacturers are now refocusing on volume growth with the support of demand and by establishing newer markets outside of the region where the volumes can be pushed. For example, we were told that India Cements is targeting nearly 1 million tonnes of sales in export markets in FY18 (~10 per cent of sales). Fresh orders for specialised cements to select manufacturers are also helping the company ramp up capacity utilisation and support blended realisations. They don’t expect much to come in from cement prices as they seem happy with the stable price scenario. However, they will try hard to push prices in subdued markets.

Our take

Despite demonetisation, Q3 will not be a disappointing quarter for south India-based manufacturers. EBITDA/tonne (Rs 100-150) decline will be largely on account of marginal price correction and cost push.
Volumes continue to remain strong though y-o-y volume growth may tone down in Q4 due to high base effect.
We reiterate’Buy’ on southern manufacturers. There are no disappointments expected in FY18 earnings. Along with volumes, if southern manufacturers are also able to restore pricing in subdued markets, earnings may potentially surprise in FY18.

Concrete

Ramco Cements’ Hard Worker Campaign Wins Seven Awards

Campaign earns honours for direction, editing and cinematography

Published

1 hour ago

June 15, 2026

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The Hard Worker campaign by The Ramco Cements has secured seven honours at the Good Ads Matter Awards 2026, adding to its growing list of accolades and reinforcing its standing among the year’s most recognised advertising campaigns.

The awards were presented during the Good Ads Matter Awards Night 2026 held at Mehboob Studios in Mumbai. The campaign received recognition across multiple categories, highlighting excellence in direction, editing, cinematography and storytelling.

Among the honours, the campaign won Silver in the Campaign of the Year – Direction category, while filmmaker Prakash Varma was named Director of the Year for the films Tortoise & Hare and Eco Plaster. Tortoise & Hare also received Silver awards for Best Editing and Best Colour Grading, along with a Bronze award for Best Cinematography. Eco Plaster earned Bronze awards in the Best Direction – Narrative and Best Direction – Humour categories.

Both films extended their award-winning run, with Eco Plaster being recognised for its narrative centred on water conservation through innovative construction solutions, while Tortoise & Hare was honoured for its storytelling and craft execution.

The Hard Worker campaign was built around the idea that hard work deserves recognition and respect. Through culturally rooted and emotionally engaging stories, the campaign has connected with consumers, engineers, masons and the wider construction community across the country.

Commenting on the achievement, A V Dharmakrishnan, CEO of The Ramco Cements Limited, said that the continued recognition across leading creative platforms reflects the company’s commitment to meaningful and authentic communication rooted in the values of the people it serves.

Balaji K Moorthy, Executive Director – Marketing, The Ramco Cements Limited, said the awards recognise the craftsmanship behind the storytelling, from direction and cinematography to editing and narrative execution.

Following recognition at both the Kyoorius Creative Awards and the Good Ads Matter Awards, the Hard Worker campaign continues to demonstrate the impact of purpose-driven storytelling combined with strong creative execution and consumer relevance.

Concrete

Cement Makers Reaffirm Commitment to Sustainable Growth

Published

1 week ago

June 5, 2026

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World Environment Day spotlight on innovation and circularity

On World Environment Day, the Indian cement industry reiterated its commitment to supporting India’s climate ambitions through sustainable manufacturing, resource efficiency and the adoption of cleaner technologies.

The Cement Manufacturers’ Association (CMA) said the sector remains aligned with the Government of India’s Net Zero commitments and is accelerating efforts to reduce its environmental footprint while supporting the country’s infrastructure and development agenda.

Parth Jindal, President, CMA and Managing Director, JSW Cement, said the industry is increasingly adopting cleaner technologies, improving energy efficiency and expanding the use of alternative fuels and raw materials. He also highlighted the growing importance of circular economy practices, where industrial by-products and waste streams from one sector are utilised as resources in another.

“The Indian Cement Industry is aligned to the Government’s commitments on carbon mitigation and is accelerating the adoption of cleaner technologies, resource efficiency and circular economy practices while actively exploring the potential of Carbon Capture, Utilisation and Storage (CCUS) as a critical pathway for deep decarbonisation,” said Jindal.

He added that coprocessing industrial waste and by-products helps conserve natural resources, reduce disposal requirements and lower the environmental footprint across multiple sectors.

According to Jindal, sustainability is no longer limited to manufacturing processes but is increasingly influencing investment decisions, innovation strategies and long-term growth plans within the industry.

Echoing similar views, Dr Raghavpat Singhania, Vice President, CMA and Managing Director, JK Cement, said sustainable development extends beyond emissions reduction and must also focus on responsible resource utilisation and waste minimisation.

“Sustainability in the built environment cannot be measured by emissions alone. It is equally about how efficiently we use resources, how effectively we minimise waste and how responsibly we create the infrastructure that will serve future generations,” said Singhania.

He noted that the cement industry is advancing its sustainability agenda through greater resource efficiency, increased circularity, technological innovation and continuous improvements in manufacturing practices. As a key contributor to India’s infrastructure development, the sector has a critical role to play in balancing economic growth with environmental responsibility.

On the occasion of World Environment Day, industry leaders reaffirmed their commitment to supporting India’s climate goals while delivering the materials required for resilient, durable and sustainable infrastructure.

Concrete

Building a Greener Future Together

Published

2 weeks ago

June 4, 2026

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Environmental sustainability requires immediate action, not just long-term commitments and discussions. Recycling, circular economy practices, and technology-driven waste management can help industries reduce environmental impact while supporting sustainable growth.

Author: Jignesh Kundaria, Director and CEO, Fornnax Technology

World Environment Day serves as an important reminder that environmental sustainability can no longer remain confined to discussions, reports, or long-term commitments. The environmental challenges facing the world today demand immediate, measurable, and collective action. Across industries and communities, waste generation continues to outpace our ability to process it responsibly, placing increasing pressure on ecosystems, natural resources, public health, and the well-being of future generations.

One of the most significant shifts required today is a change in how society perceives waste. Rather than being viewed as a material to be discarded, waste must be recognised as a valuable resource that can contribute to both economic growth and environmental protection when managed through the right technologies and systems. This mindset forms the foundation of the circular economy model that countries across the world are increasingly adopting to reduce landfill dependence, recover valuable materials, and create more sustainable industrial ecosystems.

India has made meaningful progress in strengthening awareness around sustainability, recycling, and environmental responsibility over the past decade. Significant efforts are being made to formalise the recycling sector through improved infrastructure, technology adoption, policy implementation, and broader stakeholder participation. These developments are creating a stronger foundation for responsible waste management and resource recovery across the country.

However, achieving long-term environmental impact requires collaboration from all stakeholders. Industries, policymakers, technology providers, and communities must work together with greater accountability to strengthen recycling ecosystems, encourage responsible waste management practices, and create sustainable outcomes through consistent execution rather than temporary interventions.

As someone closely associated with the recycling industry, I firmly believe that technology will play a decisive role in addressing future environmental challenges. Advanced recycling systems have the potential to recover valuable resources, reduce pollution, minimise landfill burdens, and conserve energy, creating a more sustainable future for generations to come. This belief is deeply reflected in Fornnax’s motto, “Committed to Create a Green Future,” which embodies our commitment to building long-term environmental value through innovation and responsible action.

At the same time, technology alone cannot deliver meaningful change. Real progress requires intent, awareness, participation, and a shared sense of responsibility. Sustainable development can only be achieved when innovation is supported by collective action and a genuine commitment to environmental stewardship.

On this World Environment Day, let us move beyond conversations and take meaningful steps towards creating a cleaner, greener, and more sustainable planet. By embracing innovation, strengthening recycling ecosystems, and acting responsibly today, we can create lasting environmental impact and secure a better future for generations to come.