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Cement industry may continue to witness consolidation

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Dalmia Cement’s recent acquisition of Adhunik Cement reaffirms the belief that the cement industry will continue to witness consolidation. One of the major factors for the same is the long time required to setup a new cement plant; nearly three to five years.The cement industry is a cyclical industry and the industry has started showing signs of an up cycle after being down for nearly four years. By the time a new plant is set, the industry will be ready for a down cycle. So, to reap the advantages of increasing demand in the up cycle, the bigger players are and will look to acquire the smaller companies.India’s cement sector is highly fragmented with top 10 companies constituting three-fourths of the industry. The smaller plants, due to lack of scale, are rendered uneconomical to run.The pricing discipline in the industry has helped the smaller players to survive till now. The situation is grimmer in South where the utilisation levels are close to 65 per cent as against the pan India utilisation levels of 75 per cent.The situation is expected to continue for at least a couple of years and some companies doubt whether the pricing discipline will continue in the future. The smaller players have also reduced their premiums from 50-60 per cent levels to 30 per cent levels.

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Concrete

Cement industry to gain from new infrastructure spending

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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/

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Concrete

AI boom drives demand, says ACA

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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.

Image source:https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AA1zOrih.img?w=2000&h=1362&m=4&q=79

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Concrete

GoldCrest Cement to build plant in India

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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.

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