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Cement demand may grow at 8% in FY13

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Analysts expect that the cement business for major players in the country is expected to be profitable in the first quarter of this financial year, backed by an increase in cement prices and higher volume growth on a low base.Pan India, demand for cement is estimated to grow at eight per cent in FY13. The utilisation rate is estimated to remain at 77 per cent, as the capacity addition of 21 million tonne (mt) is expected to negate the impact of incremental demand of 19 mt during the period, said a cement analyst.The cement sector (only integrated cement players are considered for Q1 preview) to report an 18 per cent growth in sales and a significantly high growth of 20 per cent in profit. The operating margins are expected to be under pressure, down 25-50 basis points, mostly due to increase in freight costs. The decline in prices of petroleum coke is expected to benefit those using this fuel.Nevertheless, strong sales profit growth is expected from Madras Cement, Mangalam Cement, Shree Cement, JK Cement and JK Lakshmi Cement. ACC and UltraTech Cement might also do well, while Ambuja Cements might witness a good growth in profit.The impact of higher realisations, thanks to double-digit rise in cement prices, would get diluted by a rise in rail freight rates and less capacity utilisation. However, the benefit of softening imported coal prices would reflect in the second quarter of the current financial year.The industry is expected to report a nine per cent growth in volume in the first quarter due to lower base, delayed monsoon and strong demand in the northern region. However, on sequential basis, cement volumes are likely to be down by around eight per cent due to seasonal factors.

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Concrete

thyssenkrupp Polysius, SaltX partner for electrified production

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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.

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Concrete

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

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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.

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Concrete

Titan Cement Group enters South Asia

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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.

 

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