Economy & Market

'CCI's fine may lead to consolidation in cement sector'

Published

13 years ago

June 26, 2012

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Fitch Ratings said that the levy of Rs 6,300-crore penalty on 11 cement companies by the Competition Commission of India (CCI) will lead to further consolidation in the industry. The domestic cement industry is unique with 57 per cent of the capacity being consolidated with the top eight players.The rest of the industry is highly fragmented with small-to-medium sized companies. They mostly have uneconomical scale of operations.Smaller firms with uneconomic cost structures would become uncompetitive and face very significant deterioration in their credit profiles, said Fitch. As such the fragmentation level in the industry is expected to reduce. Larger and vertically integrated companies are likely to gain market share.While the impacted companies are considering approaching the Competition Appellate Tribunal against the order, in the event the fine is imposed, the amount of penalty to be paid as a percentage of their year-end (FY12) EBITDA is significant and ranges between five per cent and 64 per cent.The impact on credit profiles of most of these entities is likely to be minimal given their relatively low financial leverage, except for Century Textiles and Industries and Jai Prakash Associates, Fitch Ratings said.

Concrete

Cement industry to gain from new infrastructure spending

Published

6 days 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

6 days 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.

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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.