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CCI’s fine may lead to consolidation in cement sector – Fitch

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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. 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.

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Concrete

Holcim UK drives sustainable construction

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Holcim UK has released a report titled ‘Making Sustainable Construction a Reality,’ outlining its five-fold commitment to a greener future. The company aims to focus on decarbonisation, circular economy principles, smarter building methods, community engagement, and integrating nature. Based on a survey of 2,000 people, only 41 per cent felt urban spaces in the UK are sustainably built. A significant majority (82 per cent) advocated for more green spaces, 69 per cent called for government leadership in sustainability, and 54 per cent saw businesses as key players. Additionally, 80 per cent of respondents stressed the need for greater transparency from companies regarding their environmental practices.

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Concrete

GCCA releases LCR system

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The Global Cement and Concrete Association (GCCA) has launched the Low Carbon Ratings (LCR) system for cement and concrete, a new global rating based on products’ carbon footprints. The system uses a clear AA to G scale to help customers prioritise sustainability in material selection across construction sectors worldwide. The GCCA says that the LCR system is designed to be easily recognisable, with a simple visual graphic that indicates a product’s rating and provides consistency and comparability to other products.

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Concrete

FLSmidth opens eco-friendly plant in Casablanca

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FLSmidth has inaugurated a €21 million mill liner manufacturing plant in Casablanca, covering 11,250m² with a production capacity of 6,500 tonnes annually. The LEED-certified facility significantly reduces carbon emissions by up to 56 per cent and fully recycles water used in the manufacturing process. Up to 250 jobs will be created in the Valparaíso region. Mikko Keto, CEO, highlighted the plant as a symbol of FLSmidth’s commitment to sustainable mining and community engagement in South America. Earlier in 2024, the Denmark-based company announced plans to sell its cement division to sharpen its focus on mining operations.

 

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