Economy & Market

Cement sector has started to gear up for upturn

Published

13 years ago

May 31, 2012

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Nirmal Bang, a research firm, has stated that the cement sector has gradually started to gear up for the cyclical upturn in the next two years.The key reasons behind its view are narrowing demand-supply gap (incremental demand of 38 mt and slowdown in incremental capacity with effective addition of 25mt), likely improvement in effective capacity utilisation to 80 per cent by FY14E and moderation in cost inflation. All this would lead to improvement in operating profit and a re-rating of the valuation multiple.Hence, investors should accumulate cement stocks in order to derive the benefits from upturn in the cement cycle. The company initiate coverage on six companies in the cement universe with a buy rating on Ambuja Cement, ACC, Grasim Industries, India Cements and Shree Cement and a hold rating on UltraTech.The company said that in FY08-12, the cement industry’s installed capacity increased by 140 mt and incremental demand increased by just 55 mt. This led to an unfavorable demand-supply scenario and effective capacity utilisation rate declined from 96 per cent in FY09 to 76 per cent in FY12.

Concrete

Cement industry to gain from new infrastructure spending

Published

1 week ago

July 24, 2025

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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/

Concrete

AI boom drives demand, says ACA

Published

1 week ago

July 24, 2025

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The American Cement Association projects a nearly 1Mt annual increase in US cement demand over the next three years, driven by the surge in AI data centres. Consumption by data centres is expected to grow from 247,000 tonnes in 2025 to 860,000 tonnes by 2027. With over 5,400 AI data centres currently operating and numbers forecast to exceed 6,000 by 2027, the association cautions that regulatory hurdles and labour shortages may impact the industry’s ability to meet demand.

Image source:https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AA1zOrih.img?w=2000&h=1362&m=4&q=79

Concrete

GoldCrest Cement to build plant in India

Published

1 week ago

July 23, 2025

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GoldCrest Cement will build a greenfield integrated plant with a 3.5Mt/yr clinker capacity and 4.5Mt/yr cement capacity. GoldCrest Cement appointed Humboldt Wedag India as engineering, procurement and construction contractor in March 2025 and targets completion by March 2027. It has signed a 40-year supply agreement with Gujarat Mineral Development Corporation for 150Mt of limestone from its upcoming Lakhpat Punrajpur mine in Gujarat.