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Where is the silver lining?

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This is a classical trough scenario for the cement sector. Things cannot get any more frustrating. Starting from the second half of 2010, the cement sector has been inundated with never ending woes: muted demand with only 4.5 per cent growth in initial months, excess capacity with only 75 per cent utilization, decline in realisations of as much as Rs 35 per bag and profitability declining at the rate of Rs 1,100 per tonne.Yet, things are not at glum as they appear. Take for example the promise from the finance minster that infrastructure spending will increase in the coming days. This is more emphasised by the fact that internal spending will have to boost the economy if India has to keep up its growth rate and insulate itself from the global turmoil. In conjunction, many other long-term demand drivers are still intact and this will ensure return of normal growth. Many cement manufacturers are confident that the worst is behind them and that prices will bounce back after the monsoon and drive profitability.Bleak as it currently looks, the industry has the capability to withstand the onslaught of varied negative factors and still come out trumps. Despite many analysts predicting dark days ahead for cement companies, shares of some of the larger companies have managed to hold their own while other sectors have dipped. Post the announcement of RBI on credit tightening, domestic benchmark indices have lost almost 12 per cent in value but cement stocks have not only stood steady some of them have appreciated. At the time of going to press, UltraTech Cement had gained 7.1 per cent since then and Ambuja Cements was up by 1.4 per cent and ACC gained 0.4 per cent.Good news from some companies that dispatches are also on the rise. Jaiprakash Associates has announced that its cement shipments in August rose 21 percent from a year earlier to 1.32 million tonne. ACC has announced that its production and dispatch figures for the month of August 2011 recorded an increase in sales at 1.88 million tonne compared to 1.57 million tonne in the corresponding period. Also the production increased from 1.56 million tonne to 1.88 million tonne.This is reassuring news for the industry. And hopefully, the days ahead will see better days for the sector.

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Concrete

CCU testbeds in Tamil Nadu

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Tamil Nadu is set to host one of India’s five national carbon capture and utilisation (CCU) testbeds, aimed at reducing CO2 emissions in the cement industry as part of the country’s 2070 net-zero goal, as per a news report. The facility will be based at UltraTech Cement’s Reddipalayam plant in Ariyalur, supported by IIT Madras and BITS Pilani. Backed by the Department of Science and Technology (DST), the project will pilot an oxygen-enriched kiln capable of capturing up to two tonnes of CO2 per day for conversion into concrete products. Additional testbeds are planned in Rajasthan, Odisha, and Andhra Pradesh, involving companies like JK Cement and Dalmia Cement. Union Minister Jitendra Singh confirmed that funding approvals are underway, with full implementation expected in 2025.

Image source:https://www.heavyequipmentguide.ca/

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Concrete

JSW Cement gears up for IPO

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JSW Cement has set the price range for its upcoming initial public offering(IPO) at US$1.58 to US$1.67 per share, aiming to raise approximately US$409 million. As reported in the news, around US$91 million from the proceeds will be directed towards partially financing a new integrated cement plant in Nagaur, Rajasthan. Additionally, the company plans to utilise US$59.2 million to repay or prepay existing debts. The remaining capital will be allocated for general corporate purposes.

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Concrete

Cement industry to gain from new infrastructure spending

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As per a news report, Karan Adani, ACC Chair, has said that he expects the cement industry to benefit from the an anticipated US$2.2tn in new public infrastructure spending between 2025 and 2030. In a statement he said that ACC has crossed the 100Mt/yr cement capacity milestone in April 2025, propelling the company to get closer to its ambitious 140Mt/yr target by the 2028 financial year. The company’s capacity corresponds to 15 per cent of an all-India installed capacity of 686Mt/yr.

Image source:https://cementplantsupplier.com/cement-manufacturing/emerging-trends-in-cement-manufacturing-technology/

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