Economy & Market

Where is the silver lining?

Published

14 years ago

January 9, 2011

admin

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.

Concrete

thyssenkrupp Polysius, SaltX partner for electrified production

Published

10 hours ago

March 12, 2025

admin

thyssenkrupp Polysius and Swedish startup SaltX have signed a Letter of Intent (LOI) to co-develop the next generation of electrified production facilities, advancing industrial decarbonisation. Their collaboration will integrate SaltX’s patented Electric Arc Calciner (EAC) technology into thyssenkrupp Polysius’ green system solutions, enabling electric calcination, replacing fossil fuels with renewable energy, and capturing CO2 for emission-free production. Dr Luc Rudowski, Head of Innovation, thyssenkrupp Polysius, emphasised that this partnership expands their portfolio of sustainable solutions, particularly in cement, lime, and Direct-Air-Capture (DAC). Lina Jorheden, CEO, SaltX, highlighted the significant CO2 reduction potential, reinforcing their commitment to sustainable industrial processes.

Concrete

Terra CO2 secures $82m to scale low-carbon cement technology

Published

10 hours ago

March 12, 2025

admin

Terra CO2, a US-based sustainable building materials company, has raised $82 million in Series B funding, co-led by Just Climate, Eagle Materials and GenZero, with continued support from Breakthrough Energy Ventures. The investment will accelerate the commercial deployment of Terra’s OPUS technology, enabling the construction of multiple production facilities across North America and Europe. With the cement industry responsible for 8 per cent of global CO2 emissions, Terra’s solution provides an immediate, scalable alternative using abundant raw materials that integrate seamlessly with existing infrastructure. The company has secured key partnerships, including a deal with Eagle Materials for multiple 240,000-tonne plants.

Concrete

Titan Cement Group enters South Asia

Published

10 hours ago

March 12, 2025

Roshna

Titan Cement Group has expanded into the South Asian market through a joint venture with JAYCEE, an India-based producer of supplementary cementitious materials. Titan will hold a majority stake in the newly formed company, Atlas EcoSolutions, which will focus on sourcing, processing, marketing, and distributing SCMs globally. This initiative aims to support sustainable construction by promoting alternatives to clinker-based cement. Jean-Philippe Benard, Head of Supply Chain and Energy Development, emphasised that the venture aligns with Titan’s strategy to lead in low-carbon building materials while reinforcing its commitment to sustainability and innovation. The move strengthens Titan’s position in a high-growth market while ensuring long-term access to SCMs.