Economy & Market

Cement stocks continue to rise

Published

14 years ago

August 23, 2012

admin

On charges of cartelisation cement majors were recently fined Rs 6,700 crore by the Competition Commission of India (CCI), barring a few cement counters, none recorded a knee-jerk reaction. This surprised analysts who had anticipated a fall in the prices of these stocks.Analysts have not yet been able to pin-point the factor holding up cement counters, irrespective of consistent negative news for the sector. Many had earlier advised investors to stay away from the sector. In the last few years, most cement majors never missed stating margin pressure, over-capacity and pressure on prices.The year-to-date return from benchmark indices stands at 15 per cent, while the appreciation in stocks of cement majors ranges from 20 per cent to a whopping 150 per cent. At a time when the Holcim Group of companies-ACC and Ambuja Cements-gave investors returns of 20-25 per cent, shares of Aditya Birla group’s UltraTech are touching new highs, rising about 50 per cent during the period.Shares of South-based Madras Cements rose 77 per cent, while those of JK Cement and JK Lakshmi Cement rose 113 per cent and 158 per cent, respectively. So, what’s making cement stocks gainers in a weak market? Large cash reserves with cement makers is a positive, say market players.Profitability of cement companies is quite decent. Capacity creation in India is very difficult, as there is no land and no limestone deposits, said the equity head of a large fund house. Land acquisition, environment clearances, poor demand and inadequate supply of raw materials like limestone, coal and fly ash may hamper expansion plans, industry executives say. This would mean cement makers would be able to continue with their pricing power in the coming years.During the 2007-2012 period, cement companies added about 150 million tonne of fresh capacity, raising total capacity to 330 mt, ten per cent more than the targeted 300 mt. The first few years of this period saw cement makers record huge profits, which were utilised for rapid expansion.

Concrete

WCA Welcomes SiloConnect as associate corporate member

Published

1 day ago

April 13, 2026

admin

The World Cement Association (WCA) has announced SiloConnect as its newest associate corporate member, expanding its network of technology providers supporting digitalisation in the cement industry. SiloConnect offers smart sensor technology that provides real-time visibility of cement inventory levels at customer silos, enabling producers to monitor stock remotely and plan deliveries more efficiently. The solution helps companies move from reactive to proactive logistics, improving delivery planning, operational efficiency and safety by reducing manual inspections. The technology is already used by major cement producers such as Holcim, Cemex and Heidelberg Materials and is deployed across more than 30 countries worldwide.

Concrete

TotalEnergies and Holcim Launch Floating Solar Plant in Belgium

Published

1 day ago

April 13, 2026

admin

TotalEnergies and Holcim have commissioned a floating solar power plant in Obourg, Belgium, built on a rehabilitated former chalk quarry that has been converted into a lake. The project has a generation capacity of 31 MW and produces around 30 GWh of renewable electricity annually, which will be used to power Holcim’s nearby industrial operations. The project is currently the largest floating solar installation in Europe dedicated entirely to industrial self-consumption. To ensure minimal impact on the surrounding landscape, more than 700 metres of horizontal directional drilling were used to connect the solar installation to the electrical substation. The project reflects ongoing collaboration between the two companies to support industrial decarbonisation through renewable energy solutions and innovative infrastructure development.

Concrete

Cortec® Corporation applauded for its strong safety performance

Published

1 day ago

April 13, 2026

admin

Cortec® Corporation has been recognised for its strong safety performance, receiving its sixth Governor’s Workplace Safety Award for its outstanding performance in 2025. As a Silver Achievement recipient, the company continues to maintain safety metrics well above national industry averages, an impressive accomplishment for a chemical manufacturing organisation. This achievement reflects Cortec’s proactive approach to workplace safety, focused on early hazard detection and employee involvement. The company will be formally recognised at the Minnesota Safety and Health Conference in May, highlighting how industrial companies are effectively strengthening workplace safety standards.