Economy & Market

Development of Tier II and Tier III cities in India could boost demand for cement

Published

12 years ago

August 31, 2012

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Government initiatives for development of Tier II and Tier III cities may create more demand for cement and the availability of consumers is shifting the focus of cement industries towards these cities, says Suman Mukherjee, Managing Director & CEO, Shree Digvijay Cement Company, a CIMPOR Group company, in an exclusive interview with Indian Cement Review.Could you provide highlights on the performance of the company?Shree Digvijay Cement Co. Ltd. (SDCCL) belongs to CIMPOR group with headquarter at Lisbon, Portugal. Presently it is going through a change of management control globally. During these days SDCCL has maintained a steady and consistent growth rate in terms of turnover, EBITDA, sales and productivity. If we compare performance YoY basis, our turnover has increased 27 per cent. Market share has also seen a steady growth to 6 per cent. We have also improved our productivity as compared to previous year. Our clinker and cement production increased by around 13-14 per cent.What factors are important for driving positive growth?
Success and growth of any organisation depends primarily on the motivation level of its employees. India is the second largest cement producer after China. The cement market is expected to grow at a steady rate of 8-9 per cent on an average, approximately at a ratio 1.1 times of GDP. To keep pace with this growing market we have set our long term vision and roadmap towards that vision. We have prioritised few things like safety/productivity/cost/ sales etc, safety being our topmost priority. Brand image also plays a major role for positive growth and motivation. We keep continuous focus on each of these priorities. As a group we always believe in sustainable growth. To achieve our vision we have a highly motivated team of people who are working relentlessly to fulfill our growth strategy. We maintain around 5-6 per cent share in the market we operate.Could you comment on the government’s contribution to the development of the cement industry?
Government initiatives towards infrastructural development can be a contributing factor towards development of cement industry. The quantum of project to be executed is good enough to propel the economy for the next few years or so even if no new project is announced. However, operational cost of cement industries are going high due to increasing cost of raw materials, fuels, power. To combat with the increasing cost few things can be considered like, duty free import of raw materials/consideration of wharf age charges and handling losses on exports of clinker/soft loan for port development/VAT or CENVAT credit on limestone royalty and duty/cess on indigenous coal/ rationalization of excise duty rate on cement from 12 per cent and bring it at par with other core and infrastructure industries/treatment of waste heat recovery as renewable energy source/generation based incentive on wind energy/open access power etc.Can you elaborate on innovation and product development in your company?I believe SDCCL is the only company in India capable of producing six types of cements, namely OPC GR 43, OPC GR 53, PPC, SRPC, OWC, OPC 53 S.What are the issues faced by cement industry? What measures are required to tackle these issues?Presently one of the key issues many cement industries are facing is limestone reserves. After the new regulation of eco-sensitive zone, the fate of many existing limestone reserves are under a big question mark. Land acquisition and getting environment clearance are very much lengthy and time-consuming for new mining lease. Apart from this, increasing cost of raw materials/fuel/power are points of concern.Where do you see your company in the next five years?We always believe in sustainable growth. Globally, as a part of CIMPOR Group, we are very much ambitious about the future of our company in India. As a group strategy we want to increase our market share in the existing market.What is your opinion about markets for the cement industry in Tier II and Tier III cities?
Infrastructural development in Tier II and Tier III cities are very much encouraging for cement industries in the upcoming days. Government initiatives towards development of Tier II and Tier III cities may create more demand for cement in these cities. Various industrial hubs are growing up in these cities. Availability of good number of consumers is shifting the focus of cement industries towards Tier II and Tier III cities.What ‘green’ initiatives has the company taken for more sustainable sources of energy?Globally and as well as in India we are a member of CSI. We have installed WHRPP for captive power generation. It is under commissioning stage. This is a CDM initiative to reduce emission and clean environment. Once it is fully operational we can reduce equivalent amount of CO2 emission. Our continuous effort to maximise fly ash addition to cement within permissible limit is ongoing.

Concrete

15th Cement EXPO: A Step Forward in Cement Innovation

Published

7 days ago

January 17, 2025

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Mumbai

Following the immense success of the 14th Cement EXPO, held on December 14-15, 2023, at the Manekshaw Centre, New Delhi, the next edition of this premier event is set to take place in March 2025. The 15th Cement EXPO will be hosted at Yashobhoomi, Delhi, on 12th and 13th November 2025.

Meanwhile, the Cement Expo Forum 2025 is scheduled for 5th and 6th March 2025 at Taj Krishna in Hyderabad. This exciting 3-in-1 event, organised by FIRST Construction Council (FCC) and Indian Cement Review (ICR), will bring together industry leaders, innovators, and stakeholders to discuss the future of the cement sector.

Building on the Success of the 14th Cement EXPO

The 14th Cement EXPO was widely praised for its strong participation, attracting over 1,500 senior managers and decision-makers from across the cement industry. The event was inaugurated by Dr. Vibha Dhawan, Director General of TERI, and Ali Emir Adiguzel, Founder and Director of the World Cement Association, alongside Pratap Padode, Founder of FIRST Construction Council (FCC). The two-tiered exhibition space featured cutting-edge products and innovations from top companies within the cement industry’s supply chain.

The event also garnered significant support from key government bodies, including the Ministry of Road Transport and Highways, Government e-Marketplace (GeM), and the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, Government of India (GoI).

Recognition and Excellence in the Cement Industry

The 7th Indian Cement Review Awards celebrated excellence by presenting awards to 11 companies in various categories, recognising their contributions to growth and innovation within the industry. Notably, Parth Jindal, Managing Director of JSW Cement, was honoured with the prestigious Indian Cement Review – Person of the Year Award 2023. Meanwhile, Vinita Singhania, Vice Chairman and Managing Director of JK Lakshmi Cement Ltd, received the Lifetime Achievement Award for her outstanding leadership and contributions to the sector.

A Vision for Sustainability

With the theme of “Driving Sustainability Through Technology,” the 9th Indian Cement Review Conference hosted thought-provoking discussions and presentations, highlighting the industry’s commitment to adopting innovative, sustainable practices. The conference served as a platform for dialogue on the latest technological advancements aimed at transforming the cement sector, addressing key challenges, and fostering growth.

What to Expect from Cement EXPO 2025

The 15th Cement EXPO, along with the 10th Indian Cement Review Conference and the 8th Indian Cement Review Awards, is set to be even bigger and more impactful than the 2023 edition. With an expanded exhibition space, greater participation, and more in-depth discussions, the 2025 event will continue to drive the industry forward. This 3-in-1 event promises to be a pivotal moment in the ongoing transformation of the cement sector.

As the industry evolves, the 15th Cement EXPO 2025 will serve as a crucial platform for showcasing innovations, discussing emerging trends, and forging new partnerships to shape the future of cement and construction.

For more details:

Cement Expo Forum 2025: https://cementexpo.in/forum

15^th Cement Expo 2025: https://cementexpo.in/

FOR CONFERENCE SPONSORSHIPS

Sheetal Talreja

Mob: +91 842 2874 030

Email: sheetal@IndianCementReview.com

FOR EXHIBITION/SPONSORSHIPS

Sujoy Gomes

Mob: +91 865 7795 881

Email: Sujoy.g@ASAPPinfoGlobal.com

FOR SPONSORSHIPS

Ratan Rajbhar

Mob: +91 842 2874 021

Email: ratan.r@ASAPPinfoGlobal.com

Concrete

Construction sector growth slows to 8-10% for FY2025: ICRA

Published

1 week ago

January 15, 2025

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The revenue growth for construction companies in FY2025 is projected at 8-10 per cent, down from the earlier estimate of 12-15 per cent, according to ICRA. This marks the slowest growth in three years, driven by factors such as the Model Code of Conduct in Q1, prolonged monsoons, and milestone-based billing in Q2, particularly affecting road-focused players.
ICRA’s analysis of 19 companies with a combined turnover of Rs.1.28 trillion in FY2024 shows modest revenue growth of 1.5 per cent YoY in H1 FY2025. While execution is expected to improve in H2, FY2025 growth remains below the historical CAGR of ~15 per cent (FY2018-FY2024).
Order inflows in urban transport, water and sewage projects are healthy, but road-focused entities face challenges due to muted inflows and high competition. Operating margins are projected to remain range-bound at 10.5-11 per cent, with debt levels rising to manage working capital needs, though debt coverage metrics remain stable.

Concrete

SANY India expands Pune factory to boost production capacity

Published

1 week ago

January 15, 2025

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SANY India inaugurated a cutting-edge factory expansion at its 90-acre Pune facility, elevating its production capacity to over 14,000 units annually, alongside a robust fabrication capacity of 100,000 metric tonnes.

The advanced facility reinforces SANY’s commitment to ‘Make in India’ by enhancing localised manufacturing and supporting global exports. Chairman Xiang Wenbo highlighted the strategic importance of India as a global hub, while Vice Chairman Deepak Garg emphasised the expansion’s role in driving innovation and infrastructure development. This investment enhances efficiency, reduces timelines, and strengthens SANY’s leadership in the construction equipment sector.