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Developing economies & response to pandemic

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In these unprecedented times of COVID-19, the health impact coupled with the economic headwinds, leaves many of the developing economies vulnerable, but some are coping with the impact better than the others; those that are doing better have firstly a robust primary health care system that is able to take the additional impact of health "overload" and coupled to that they have a close knit localised "controlled" programme of identifying, isolating and providing affordable health care which forms the backbone of the recovery. More importantly, these economies have been able to find traction between a ‘central’ (larger) outlook on response with the "local" administration of the response, health and economic included.

Emerging and developing economies have several contending issues at hand, sharp drop in trade and tourism, dampened capital flows, much tighter credit conditions, ebbing remittances and of course a debt pile that blunts the fiscal expansion prospects. A few of them have to still solve banking woes, stemming from NPAs and some of the sectors to which the banking system owes its loans to have slowed due to lack of demand.

East Asia is now slated to grow at a scant 0.5 per cent, South Asia will contract by 2.7 per cent, Sub-Saharan Africa by 2.8 per cent, Middle East and North Africa by 4.2 per cent, Central Asia by 4.7 per cent and Latin America by 7.2 per cent.

These were the last numbers from the World Bank (June 2020). Are there some success stories within these grim tales, some stand out like Vietnam or Indonesia while India has been able to keep the mortality rates very low, which is also commendable. Vietnam has dealt with the pandemic with exemplary dexterity by eliminating the spreading roots, while Indonesia has taken a twin program of fighting the pandemic together with focus on job creation.

Vietnam’s first case was reported in early January’20 but in no time the country was ready with a comprehensive plan to respond to the health crisis, first with a proactive plan on "target testing" with three degrees of "contact tracing" for each positive case with large Government centers providing quarantining arrangements and in no time the borders were closed for all foreigners. With the full experience of SARS, Vietnam had the infrastructure and the processes fully tried and tested but its vibrant primary health infrastructure had enormous room to expand in times of crisis; health care expenditure increased by 9 per cent year on year per capita after SARS, EBOLA and ZIKA, making most of the health statistics far better than most developed nations.

The biggest success story can be summarized by Vietnam’s ability to provide Test results within 80 minutes, which many of the developed nations took five to six days, which made the testing useless. This is also the reason that Vietnam could test 1,000 people for each tested positive case, which is the highest in the world; Vietnam today has about 1,000 detected cases and have reported only two deaths so far.

Economic response to any pandemic must start with the focusing on the heath sector and past pandemics were taken as a learning opportunity, those who have done better this time have actually sharpened this focus with an unprecedented preparedness.

The others on this list are Indonesia, who have now merged their disaster recovery task force with the National Economic Recovery taskforce under the Economic Affairs Minister and the full focus on State Owned Enterprises to take the economy out of the unemployment crisis is a distinguishing feature of the recovery. Also Indonesia has factored in a long and arduous battle with the virus and have taken long term view of things to come. Their response to the recent job losses is directed to long term strategy to capitalise on the recent apathy of many global firms to stay anchored to supply chains deeply embedded in China. The other centralised focus has been to direct credit assistance to micro, small and medium enterprises. This diversity of credit assistance that touches vast sections of people and business is a distinguishing feature for Indonesia.

Finding a balance between two potentially competing forces, health and economic interests is one of the key drivers of success.

ABOUT THE AUTHOR:
Procyon Mukherjee
works as Chief Procurement Officer at LafargeHolcim India. The ideas presented are his personal and have no connection to the beliefs of the company where he works.

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Concrete

15th Cement EXPO to be held in March 2025 in Hyderabad

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Cement EXPO 2025, which will be held along with the 10th Indian Cement Review Conference and the 8th Indian Cement Review Awards, promises to be bigger, drawing in greater participation, fostering more profound discussions and showcasing the continued evolution of the cement industry.

Mumbai

After the arousing success of the 14th Cement EXPO, which was held on December 14-15, 2023 at Manekshaw Centre along the 9th Indian Cement Review Conference and the 7th Indian Cement Review Awards, the next edition of Cement EXPO will be hosted in March 2025 in Hyderabad. The 15th Cement EXPO promises to be bigger and even more impactful than 2023 edition with more participating companies and larger exhibition area. The 3-in-1 event is organised by FIRST Construction Council (an infrastructure think tank) and Indian Cement Review (ICR).

The 14th Cement EXPO received big thumps up from the industry with over 1,500 senior managers/decision makers visiting the expo. The EXPO was inaugurated by Dr Vibha Dhawan, Director General, TERI; and Ali Emir Adiguzel, Founder and Director, World Cement Association, along with Pratap Padode, Founder, FIRST Construction Council (FCC). Top notch companies from the Indian cement industry’s supply chain presented their latest innovations and offerings in the sprawling two-tiered exhibition space.

The 14th Cement EXPO garnered significant support from the Ministry of Road Transport and Highways, Government e-Marketplace (GeM), and the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, Government of India (GoI).

The 7th Indian Cement Review Awards presented awards to 11 companies in different categories recognising their contribution to growth and innovation in the industry. While Parth Jindal (Managing Director of JSW Cement) was conferred with the Indian Cement Review – Person of the Year Award 2023, Vinita Singhania (Vice Chairman and Managing Director at JK Lakshmi Cement Ltd) was presented with the prestigious Lifetime Achievement Award.

With a theme centred on ‘Driving Sustainability Through Technology’, the 9th Indian Cement Review Conference hosted thought provoking discussions, panel sessions, and presentations, showcasing the industry’s commitment to embracing cutting-edge solutions.

The success and resonance of the 2023 edition has laid the groundwork for the 15th Cement EXPO 2025, which is bound to be bigger, drawing in greater participation, fostering more profound discussions and showcasing the continued evolution of the cement industry.

The EXPO, along with the 10th Indian Cement Review Conference and the 8th Indian Cement Review Awards, will contribute significantly to the ongoing transformation of the cement industry.

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Concrete

JK Lakshmi Cement records hike in profits

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JK Lakshmi Cement announced a significant increase in standalone net profit, which jumped by 69 per cent to Rs.124.06 Crores in the Oct-Dec 2023 quarter. The company achieved a 7 per cent increase in standalone net sales and reported a clinker capacity utilisation of 105 per cent and cement capacity utilisation of 79 per cent in the same quarter. The company attributed its improved profitability to higher volume, better product and sales mix, and a reduction in fuel costs.
In terms of sustainability initiatives, the company is implementing projects to enhance its TSR and WHR capacity, as well as sourcing solar power to increase the share of renewable energy at its Durg Cement Plant. Additionally, the company’s subsidiary, Udaipur Cement Works Ltd (UCWL), successfully commissioned its second clinker line and is expected to commission its cement grinding capacity expansion soon.
The company is also undertaking expansion projects, including increasing clinker capacity and establishing cement grinding units at various locations, with a proposed investment of Rs.2,500 crores. Funding for this project is proposed to be through term loans from banks and internal accruals. The company also announced an interim dividend of 40 per cent.

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Concrete

Rajasthan gets a water harvesting project

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Prince Pipes and Fittings Limited, in partnership with Ambuja Foundation, has launched a comprehensive water harvesting project in Chomu district of Rajasthan as part of its CSR initiative. The project aims to address water scarcity and enhance community resilience against water-related challenges. Ambuja Foundation will focus on setting up over 50 rooftop rain rainwater harvesting systems to provide a reliable source of water for 250 people. Additionally, efforts will be made to revive 2 village ponds, creating 10,000 cubic meters of water storage capacity, and to rejuvenate groundwater by implementing check dams, farm ponds and farm bunding. The project also includes educating the local community on water conservation techniques and promoting conscious water usage. This initiative seeks to support farmers through the government’s subsidies to install sprinkle irrigation systems at a minimal cost, while also contributing to livestock strengthening and promoting community ownership.

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