Economy & Market

Forecast 2013

Published

14 years ago

December 31, 2012

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ICR examines and studies the cement, concrete, concrete equipment sector for the coming year. The study was done basically to comprehend and analyse the current state of each sector. Also, ICR bring to you the opinions of dealers, who know the real pulse of the market.The first half of the year 2012 of the cement industry witnessed a sluggish demand and almost the other half felt the cost pressure. In the states like Andhra Pradesh, the year ended on a discouraging note since the prices dipped further by Rs 40-45. However as per the Working Committee report on cement industry suggests that the Government of India plans to increase its investment in infrastructure to US $ 1 trillion in the Twelfth Five Year Plan (2012-17) as compared to US $ 514 billion expected to be spent on infrastructure development under the Eleventh Five Year Plan (2007-12). Further, infrastructure projects such as the dedicated freight corridors, upgraded and new airports and ports are expected to enhance the scale of economic activity, leading to a substantial increase in cement demand. Housing sector and road also provide significant opportunities. The cement demand is likely to be sensitive to the growth in these sectors and also the policy initiatives. Further, capacity addition in cement would continue to be preferably front loaded. It may be desirable to create some excess capacity rather than operate with shortages or supply bottlenecks. Keeping in view the factors responsible for the increasing demand for the sector and the assumptions mentioned below, four lines of projection in the demand for cement up to next 25 years (2027) have been given. The annual average growth in the demand, production and installed capacity of the cement during the period could be within the range of 10-11.75 per cent. The production of cement would be sensitive to the GDP growth and the growth of sectors which are major users of cement. A step up in demand of these sectors could provide some stimulus to the cement sector as well.Assumptions??Base line growth from 2014-15 is kept at assumed GDP growth, or an elasticity of 1.0.??The growth is expected to increase by 1 per cent above the base line in scenario 2 assuming NH and SH to be initially covered.??In scenario 3, assuming a further increase in growth by 0.5 per cent and in scenario 4 growth is scaled up further by 0.25 per cent.??Base Growth kept a little lower than GDP growth in first three years because of pickup in demand may take some time.??With all the three expectations being met, growth improves to 10.75 per cent or with an assumed elasticity of roughly 1.2, as against observed elasticity of 1.07 during 12th Plan and further to 11.75 per cent in the next 10 years. Elasticity tapers off to 1.175.12 The Task Force for the 11th Plan for the Cement sector also mentioned that the concrete roads, besides providing an excellent surface, enjoy a lower life cycle cost. In the current scenario, however, concrete roads enjoy an initial cost advantage as well.2012 a mixed bagThe year 2012 for the cement industry was full of controversies. Be it the issue of catelisation, wherein the 11 cement giants were penalised with a mammoth amount of Rs 6,304 crore or the reduction in prices of cement by the end or the year. The cement market was volatile and slowed signs of improvement. The acquisition of Calcom in the beginning of the year and Adhunik in September 2012 by Dalmia proved that consolidation remains the key for the cement business. By the end of the year they increased their stake in Calcom by 26 per cent.Expressing his opinion on the market scenario in the year 2012, Jagdeep Verma, Head- Business Consulting, Holtec Consulting said, "The good news was that cement consumption grew by 8 per cent, despite a slowdown in GDP growth. Retail prices too increased by an average 6-7 per cent over the last year, though there were large price fluctuations in some states and key consumption centres on account of consumption-supply imbalances. The price increase enabled most producers to offset the increased cost of inputs, significant offenders being fuel and logistics."He further explained the negative side of the sector. "On the flip side, industry sentiment was adversely affected, not only by the penalty proposed by the Competition Commission of India, but also by general economic sluggishness, the current prevalence of market surplus, high borrowing rates/ poor liquidity conditions in user segments, difficulties faced in land acquisition/ procuring environmental clearances and ambivalent perceptions regarding the emerging politico-economic scenario. All this manifested itself in a reining in of capacity addition initiatives. Firms with high costs pressures are opening up to M&A possibilities and PE funding in order to smoothen their cash flow obligations."However Prakash Raja, the Committee Member of Cement Dealers’ Stockist Association feels that on one hand where there was a hike in cement prices, on the other hand, the demand that showed signs of pick up never really caught on, which brought a lot of volatility in the market. "We have seen cement companies, which have been region specific for almost decades, now venturing out in hunt for newer markets. Consequently, a mini price war was witnessed this year. In fact the rates are still far from being stable. Since many construction companies do not utilise input Value Added Tax (‘VAT’) credit, they prefer buying material against C-form, ensuring concessional rate of Central Sales Tax (‘CST’) and consequently, lowering of input costs. This has made it worthwhile for the new market seeking companies to do business across states, without really breaking the bank." The slump has impacted their business in a threefold manner. Jugal Raja, King’s Trade Links said that the slump has a threefold effect on the dealers. "Higher borrowing costs, higher prices of cement and elongation of credit period offered to the buyers are the three negatives that have ensured that most of our revenues are literally wiped out. To illustrate, if we take the cement price hike on a smoothened average basis to be Rs.40, the cost of borrowings rise at 2.5-3 per cent per annum and the elongation of credit period on an average by 40-60 days, the income remaining constant, one can imagine the impact on the margins. Given the slow down and overall slug-gishness, lowering volumes have made this worse than it looks. Many dealers have been raising their voice against the stagnant commission and pass-on since the last 5 years.Although the prices of cement have risen, the absolute value of dealers’ pass-on has been kept constant by the manufacturers, citing growth in volumes to be enough to compensate the dealers. Now that there is slow down, there is a strong case for the hike in dealers’ margins, albeit only at the manufacturers’ discretion."Even the concrete equipment sector witnessed severe disappointment. Anand Sundaresan, Managing Director, Schwing Stetter said that the entire industry went through a bad phase and the concrete equipment industry was no exception to that which led to drop in their numbers. Talking about the percentage in slouch he said,"It will be very difficult to talk about by what percentage has our business gone down since the Finance Minister is also trying his level best to improve the sector by introducing new policies which might work out and we might be in a better position."Recently Lucky Cement, Pakistan’s largest cement manufacturer was keen on setting up a cement plant in India. Generally cements from Pakistan are said to be of a cheaper rate and of a better quality. But Jugal Raja, Dealer, King’s Trade Links believes that India being the second largest producer of cement in the world is producing almost three times the total output of the third largest producer – Iran. We firmly believe there is no case, be it quality or affordability that makes our economy open up to such imports, more so when such notorious activities have been un-earthed. If the pricing is so enticing, there must be a reason for it. We see it and it’s high time the end users as well as the authorities see it. This may sound like a very Nationalist and even slightly jingoistic view, but imagine where cement companies from South of India are finding it difficult in terms of costs to move the material to areas such as Mumbai at Rs 270 per bag, how would it be a profitable affair for an economy such as Pakistan which is surviving on external aid to push it from longer distances at Rs 220 per bag."Challenges

With the mismatch of demand and supply faced by the cement industry is expected to encounter with a lot of challenges, which will further impact all the related industries.According to Sundaresan, the major challenge faced by the equipment manufacturing sector is substantial increase in input costs due to a hike in commodity prices, increase in interest rates, increase in employee and power costs and almost an increase of 25 per cent in the dollar exchange rate between April 2011 and average exchange rate in the year 2012.Whilst Verma feels that the cement industry will face a series of challenges like dwindling natural resources, cost reduction, optimisation of logistics, acute shortage of dom-estic coal and the increase in costs and gestation period. "Shortage of natural resources is a serious cause of concern. Among these, limestone, fossil fuel and water, if not conserved, could definitely inhibit the long term growth of the industry. The onus of conservation, till now, has generally been technology-based and, therefore, largely driven by equipment suppliers. Wasteful practices need much higher attention and cement producers must pick up the baton on directly arresting these in the course of normal operations." He further said that the life of limestone reserves being limited to the next 40 years or so, initiatives to use poorer grades appear imminent; despite conventional wisdom, high quality limestone imports are, possibly, inevitable.Cost reduction will be another issue which is expected to dominate the upcoming two to three fiscals. The biggest costs in cement business are energy and logistics, thus adequate attention has, only been recently directed at one of the largest components of delivered cost, viz. input and output freight. Given the acute shortage of domestic coal and the increase in costs in imported coal, alternate fuels would continue to receive enhanced attention and could provide 7-10 per cent of the total thermal fuel requirements by FY 2015-16. The usage of gas, especially in plants enjoying logistical proximity to gas resources, could well become a reality. While Greenfield plants would setup captive power plants to ensure reliable power supply, the existing plans would consider use of alternative fuels and also installation of Waste Heat Recovery systems to keep costs under control Verma further explained, "An analysis of the components of the final delivered cost of cement shows that 40 per cent is constituted by production costs, 25 per cent by the transport costs of inputs and outputs and 35 per cent by direct and indirect taxes. Optimisation of transportation logistics, spanning modes, nodes and routes, is thus an area deserving a higher degree of focused attention.The potential for reducing costs in non-equipment related domains, e.g. material inventories, consumable consumption rates and tariffs, financial expenses, etc. has still not been adequately harnessed.Also with the pre-project activities, such as land acquisition and statutory clearances, being expected to consume more time, the gestation period in the future is likely to be in the range of 5-7 years.Industry players could attempt to bring down actual construction time by employing more steel in civil engineering structures.According to SN Subrahmanyan, Member of the Board and Sr. EVP (Infrastructure & Construction), L&T Construction, the cement equipmeny industry is also going through alot of changes. The current focus is on savings in energy consumption and emission control methods, with stringent pollution control norms which are tightened day by day and the introduction of PAT (Perform, Achieve and Trade) scheme. "Cement manufacturers are expected to operate their plant in optimised conditions all the time. Power availability is also a key factor that affects cement plant operations. Clients are looking for equipment which reduces energy, fuel consumption, and effective utilisation of waste heat. Due to this trend waste heat recovery systems and alternate fuel firing systems have become common requirements in cement plant tenders."Regarding future trends:In India Municipal Waste Firing (MWF) in cement plants is an area with great potential but still underutilised. The reason for that is non-homogeneity and lack of continuous availability of the wastes. This irregularity creates fluctuations in the cement process and causes undesirable emission levels, increase in energy consumption patterns and also affects clinker quality. Every state should have waste collection centres to ensure continuous supply of wastes to cement plants. Substantial research is required to develop municipal waste firing systems suitable for Indian conditions considering mode of transport and hygiene. Existing designs are predominantly based on western country municipal wastes, but the wastes generated in western countries are quite different from the municipal wastes generated in Indian cities due to cultural differences. This change in type of waste impacts the system performance and firing rate. Availability of municipal waste is also inconsistent in India. If flexible firing systems are developed then Municipal wastes can be substituted for fossil fuels by 20-30 per cent. Currently cement plants are able to substitute only 5-15 per cent of waste for fuel fired in the system due to above said reasons. We believe with increasing coal prices and non-availability of power may encourage more cement plant clients to prefer municipal waste firing systems in the near future.Government intervention

With over 200 major construction projects pending in India, the entire construction industry is suffering with losses. "First and the foremost, the government should push investment in infrastructure projects, and bring in whatever policies changes that are necessary to speed this up and make it investment friendly," said Sundaresan. The other hindrance faced by the industry is most road contractors talk about land acquisitions as one of the major bottlenecks for speedy completion of projects.Definitely, this issue has to be addressed, which is pending for quite some time. Coming to the equipment industry he commented, "Concerning the equipment industry, the government should bring in similar kind of sops like what was done during the budget 2009, i.e., reduction in excise duty for capital equipments. In addition to that, we have other usual grievances like abolition of entry tax, GST, Uniform Tax Policy, etc."Even the dealers are of the opinion that the Government needs to clearances to the pending projects. "We require only one support and that is the clearing of proposed and further issuance of quality projects which will help build a new India. The money injected will churn into the economy fastest through this route as we have witnessed in the past. To supplement this, we believe India has a top-notch infrastructure funding mechanism in the form of multiple lending institutions. Perhaps, easing of certain eligibility criteria will do a host of good." He further added, "Maybe, a different, more ‘ambitious projects’ centric version of IDFC is the need of the hour. Also, as mentioned earlier, there is disparity among VAT and concessional rate of CST for end-users not utilising input VAT to pay output VAT. This disparity should be mitigated with the introduction of GST as early as possible."At a general level, the industry would like stable economic policies and lowering of interest rates leading to positive growth sentiments and increase in GDP, GFCF and thereby construction related investment. This would enable the industry to systematically plan its capacity expansions and focus on ways to meet cement demand.At an industry level, cogent policies to own mines and coals blocks, as also those associated with land acquisition, would be desired. This would facilitate ease of setting up cement plants within acceptable gestation periods, generate acceptable returns to stakeholders and keep debt related cash outflows low-in turn downward inflowing cement prices.According to Verma, "A regulatory body to ensure adherence to India Standards by all concrete producers (commercial and captive) would help the industry to ensure quality concrete is made available to all end users. With such an intervention, the industry could then further educate its customers on concrete production and usage. Malpractices followed by small-scale concrete producers would come to an end and prices narrow down within an acceptable band. This could impel more cement producers to forward integrate into the RMC industry and serve their customers better."Also for the dealers logistics remains the biggest challenge for the year 2013. Mumbai, (which is considered a separate region altogether, giving exclusivity to this market, separate from the rest of the Western region) has the threshold logistical permissibility of 750,000- 800,000 metric tonne a month. With rising demand in satellite areas and the ambitious projects waiting in the flanks, there is consensus that this constraint be dealt with. Same goes for Bangalore and even for some up and coming tier-two cities such as Mangalore and Bhopal, where demand has been robust. Another challenge that the industry faces is really something which is not in control of the industry, viz, the log-jam of various projects, both private and state/central funded. This log-jam is expected to be cleared out before the last budget of the UPA-2 on a populist count. Be that as it may be, the opportunity for the cement industry is huge, considering that the Indian growth story is still very much intact.Forecast 2013Most of the industries related to cement are expecting a sluggish year ahead. For the concrete equipment industry the year is expected to grow marginally. "Even though the government is bringing in a lot of policy reforms and steps for improving the economic growth, the award of contracts will take some time. Besides that, concreting comes at a much later stage, i.e. after excavation or earth moving. Therefore, for the concreting equipment industry, I feel 2013 will be a flat year or it will be with a marginal growth," said Anand. To combat the same the company is all set to launch new equipment in the upcoming bCIndia 2013.Cement consumption is expected to sustain in the range of 8-9 per cent, taking estimated cement consumption in FY 2013 from around 260 mio t to 280-285 mio t in FY 2014.Due to public perceptions of high cement prices, cement demand (not to be mistaken with consumption) would remain unfulfilled. Producing "affordable cement" without compromising the quantum (not per cent) of EBIDTA is possibly the one major initiative that would possibly dwarf all other initiatives. This would necessitate the harnessing of technology, amending operating practices and modifying customer mindsets. The net effect could be significant increase in customer base and consequentially a mini-explosion in the size of the cement market pie. There is also a strong likelihood of players announcing greenfield capacity additions, in order to ensure plants are operational by the time cement consumption overtakes capacity (FY 2018). Possible pre-conditions for these announcements to be translated into action would include a lowering of interest rates and expeditious action on statutory clearances.The likelihood of PE Firms playing a higher role to fund the cash-strapped companies would increase. M&A activities are also likely to accelerate, particularly with larger cement players having an opportunity to acquire plants under financial pressures.Capacities would most probably exchange ownership if the agreed valuation is in the range of USD 145-165/ t.On the technology front, efforts to utilise Alternative Fuels and install Waste Heat Recovery are initiatives which are likely to become much more widespread.For the dealers the summer of 2013 is touted to be the start of the new bull run for the entire infra space. With both, the Holcim group (ACC and Ambuja) and Aditya Birla group (Ultratech) having the right arsenal in place in the form of increased capacities, and with the other upcoming brands, the total tally of consumption in cement will see a huge pick up owing to moderated base of last two years. There were times when demand would be so high that companies were compelled to allocate the total arrivals in preference of consumer loyalty and buying patterns.We believe that won’t happen in the next bull run since the easing of logistical situation backed by the expansion of capacity has taken place since then.Thus only time will show that if the industry will regain its old pace or will deteriorate further.

Economy & Market

The Road Ahead Begins Here

Published

6 hours ago

August 11, 2026

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The future of India’s roads took centrestage at RAHSTA Expo 2026, where policymakers, contractors and industry leaders came together under one roof. The event blended thought leadership, technology showcase and industry recognition into a single powerful platform.

India’s roads and highways community gathered in full strength at the Jio World Convention Centre, Mumbai, for the 16th edition of the RAHSTA Expo (Roads and Highways Sustainable Technologies & Advancement). Over two action-packed days, the event brought together policymakers, contractors, consultants, developers, equipment manufacturers, material suppliers, technology providers and investors to deliberate on the future of India’s ,infrastructure while showcasing the latest innovations driving the sector.

The event culminated in the prestigious RAHSTA Awards, where Shri. Ajay Tamta, Union Minister of State for Road Transport & Highways, felicitated organisations and professionals for their outstanding contributions to road construction, engineering, safety, sustainability and technology. With leading contractors, senior government officials, industry veterans and technology providers under one roof, the event reaffirmed RAHSTA’s position as one of India’s most influential platforms for the roads, highways, bridges and tunnels ecosystem.

Organised by FIRST Construction Council in association with ASAPP Info Global Group, RAHSTA has steadily evolved beyond an exhibition into a platform where policy, technology, engineering and business converge to address the opportunities and challenges shaping India’s next generation of transport infrastructure.

Beyond expansion, towards value

The conference opened with a thought-provoking address by Pratap Padode, Founder and Editor-in-Chief, Construction World, who observed that India’s highways sector has reached an important inflection point. Introducing this year’s theme – ‘From Expansion to Value: The Next Phase of India’s Highways’ – he noted that while the country has successfully expanded its road network over the past two decades, the industry’s priorities are now shifting towards building infrastructure that delivers greater lifecycle value, durability, safety and operational efficiency. With funding pressures, asset monetisation and evolving project models changing the sector’s dynamics, he said the focus must now move beyond kilometres constructed to the quality and long-term performance of every asset.

Dr Brijesh Dixit, Managing Director, Maharashtra State Infrastructure Development Corporation (MSIDC), reminded delegates that successful infrastructure delivery is ultimately a collective effort. Emphasising on collaboration between government, industry and engineering professionals, he remarked, “There is no loser in a winning team, and there is no winner in a losing team,” urging stakeholders to work together to deliver projects with quality, financial sustainability and technological excellence.

Delivering the keynote address, Bidur Kant Jha, Director, New Technologies for Highway Development, Ministry of Road Transport & Highways (MoRTH), outlined the Government’s long-term vision for India’s highway network. Highlighting the country’s 6.26 million km roads network, he spoke about the growing adoption of digital planning tools such as BIM and GIS, bridge health monitoring systems and Integrated Smart Transport Corridors under the Vision 2047 roadmap. He emphasised that while India remains open to global innovations, every new technology must be adapted to Indian conditions before large-scale deployment.

Addressing the gathering during the awards ceremony, Tamta underlined the increasing role of specialised equipment and modern construction technologies in executing complex infrastructure projects across diverse terrains. Referring to challenging tunnel projects in Uttarakhand, he noted how advanced machinery has transformed execution capabilities, while also acknowledging the rapid evolution of Indian contractors into globally competitive infrastructure companies. Recognising excellence through industry awards, he said, motivates organisations to continually raise performance standards and embrace innovation.

Meanwhile, Dr Sanjay Mukherjee, IAS, Metropolitan Commissioner, MMRDA, highlighted that infrastructure development must increasingly focus on integrated urban mobility. Reflecting on Mumbai’s engineering journey – from its historic underground utility network to the Coastal Road and other transformative projects – he underlined that future infrastructure planning must seamlessly integrate roads, metro systems and public transport to create efficient, multimodal cities.

Uttar Pradesh takes centrestage

One of the highlights of the second day was Uttar Pradesh’s comprehensive presentation on its infrastructure-led industrial transformation.

Srihari Pratap Shahi, IAS, Additional CEO, Uttar Pradesh Expressways Industrial Development Authority (UPEIDA), demonstrated how the state’s expanding expressway network is evolving into a catalyst for industrial development through integrated manufacturing and logistics clusters. Expressways, he noted, are no longer merely transport corridors but engines of economic competitiveness.

Building on this narrative, Deeksha Jain, IAS, Additional Chief Executive Officer, Uttar Pradesh State Industrial Development Authority (UPSIDA), showcased the state’s rapidly expanding industrial ecosystem supported by extensive expressway connectivity, dedicated freight corridors, airports, industrial townships and investor-friendly policies. She highlighted Uttar Pradesh’s strong manufacturing growth, expanding industrial land bank, plug-and-play infrastructure and increasing use of digital governance to facilitate investments.

Further underlining the significance of the platform, Deepak Kumar, IAS, Infrastructure & Industrial Development Commissioner, Government of Uttar Pradesh, remarked, “RAHSTA provides an excellent platform for states to showcase our infrastructure progress and investment ecosystem. Uttar Pradesh has transformed significantly over the past decade, backed by more than 34 investor-friendly industrial policies, and platforms like RAHSTA help communicate these developments to industry stakeholders from across the country.”

Ideas that shaped the industry conversation

The two-day conference featured seven panel discussions, each examining a critical dimension of India’s evolving roads and highways sector.

The opening discussion on ‘Financing Roads & Highways in a Capital-Constrained Era’ brought together experts from Cube Highways, NIIF, SBI Capital Markets, Centrum Capital and Bandhan Infra Fund, who examined how the financing landscape is changing. Discussions revolved around asset monetisation, InvITs, institutional investments and new funding structures, with panellists agreeing that better project preparation, transparent governance and predictable returns will be crucial for attracting long-term capital into infrastructure.

Attention then shifted to execution realities during the panel on ‘Contractors’ Perspective: Execution Realities, Risks & the Quality Imperative.’ Representatives from GHV Infra Projects, PNC Infratech, NCC and Maccaferri candidly discussed the challenges of delivering projects amid contractual complexities, land acquisition delays, rising costs and tight timelines. While execution pressures remain significant, the discussion reinforced that better collaboration across the project value chain is essential for achieving both speed and quality.

Day 2 opened with a technically rich discussion on ‘Designing Roads for Sustainability, Durability & Climate Resilience’. Experts from CSIR-CRRI, IIT Bombay, IIT Madras, Zydex Group and SRMB Steel explored advanced pavement technologies, recycled materials, climate-resilient designs and scientific construction practices that can significantly improve durability while lowering lifecycle costs. Sustainability, they agreed, must become an integral part of road design rather than an afterthought.

The subsequent session on ‘Bridges & Tunnels: Complex Engineering, Safety & Future Readiness’ highlighted the growing complexity of India’s infrastructure projects. Panellists discussed advances in structural engineering, digital monitoring, risk management and safety practices that are enabling the successful delivery of increasingly ambitious bridge and tunnel projects across the country.

Technology remained a recurring theme during the discussion on ‘Technology as a Risk-Mitigation Tool for Developers & Investors’. Experts explained how AI, BIM, drones, predictive analytics, digital twins and intelligent monitoring systems are helping improve project planning, minimise execution risks, strengthen quality assurance and enhance asset management throughout the infrastructure lifecycle.

The construction equipment panel brought together leading industry experts to examine how technology, sustainability and digitalisation are redefining construction equipment in an era of rising cost pressures. Discussions centred on enhancing productivity, reducing lifecycle costs and preparing the industry for India’s infrastructure ambitions leading up to 2047.

The conference concluded with an engaging CXO Forum on ‘Rebuilding Confidence in India’s Roads & Highways Sector’, where senior industry leaders emphasised that stronger governance, better project preparation, digitalisation, transparent contracting and closer public-private collaboration will be essential to sustain India’s infrastructure growth over the coming decades.

Technology and recognition under one roof

Beyond the conference halls, RAHSTA Expo reflected the technological transformation underway across India’s road infrastructure ecosystem. Leading equipment manufacturers, technology companies and material suppliers showcased advanced construction equipment, intelligent digital platforms, pavement technologies, structural materials and productivity-enhancing solutions designed to improve project efficiency and asset performance. The exhibition created valuable opportunities for contractors, consultants, government agencies and project developers to evaluate new technologies while interacting directly with solution providers.

The event also served as a celebration of excellence through the RAHSTA Awards 2026, which recognised outstanding achievements across road construction, contracting, materials, equipment, technology, safety, sustainability and infrastructure development. Presented by Minister Tamta, the awards honoured organisations that are setting new benchmarks for quality, innovation and execution across India’s roads sector.

RAHSTA Expo 2026 also received extensive support from across the infrastructure ecosystem. Alongside leading corporate sponsors, the event was backed by industry bodies including the Builders Association of India (BAI), Construction Equipment Rental Association (CERA), Consulting Engineers Association of India (CEAI), International Road Federation (IRF), CSIR-CRRI, CILT India, All India Transporters Welfare Association, Hydraulic Trailer Owners Association (HTOA), Gujarat Contractors Association, Bitumen Forum, Fluid Power Society of India, Indian Institute of Material Management, Ministry of Ports, Shipping and Waterways, Gati Shakti Vishwavidyalaya and Mumbai First, reflecting the industry’s collective commitment to advancing India’s road infrastructure.

As the curtains came down on the two-day event, one message resonated throughout the conference: India’s highways story is entering a new chapter. While expansion will continue, the future will increasingly be defined by smarter planning, stronger partnerships, digital transformation, sustainable engineering and long-term value creation. By bringing together the entire infrastructure value chain on a single platform, RAHSTA Expo 2026 once again demonstrated why it has become one of the country’s most influential forums for shaping the future of roads, highways, bridges and tunnels.

Economy & Market

Fornnax Names Lukas Baur as Authorised Service Partner to Bolster EU Operations

Published

3 weeks ago

July 23, 2026

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Strapline: Fornnax Technology has appointed NOBA Maschinenservice’s Lukas Baur as its authorised service partner for the European Union, strengthening its commitment to delivering fast, reliable, and localised after-sales support across the region.

Fornnax Technology, a leading manufacturer of industrial shredding solutions, has announced the appointment of Mr. Lukas Baur of NOBA Maschinenservice as its authorised service partner for the European Union. The partnership, formalised under the authorisation of Fornnax CEO Mr. Jignesh Kundaria, reinforces the company’s commitment to providing dependable, localised service support to its expanding customer base across Europe.

Strengthening Service Through Proven Expertise

With over two decades of experience in servicing, maintaining, and overhauling industrial shredders, Mr. Baur brings extensive technical expertise to the partnership. His capabilities span welding, hardfacing, shaft and knife rebuilding, complex assembly, hydraulics, and complete electrical engineering services, delivered in collaboration with a trusted partner company based in Halle/Saale.

Operating from Worbis, Germany, Mr. Baur is strategically positioned to provide emergency support across the European Union within 24 hours, covering an operational radius of approximately 1,000 kilometres.

Supporting this capability is a well-equipped service infrastructure comprising 12 Mercedes Sprinter service vans, a team of 24 skilled technicians, specialised bearing-change tools, a fully equipped hydraulic workshop, and a 1,000-square-metre facility with a five-ton crane track. Together, these resources position his team to manage the complete spectrum of Fornnax’s European service requirements efficiently and reliably.

Partnership Driven by Industry Insight

Having spent years servicing Eldan, Lindner, and Vecoplan shredders across the European recycling industry, Mr. Baur’s decision to collaborate with Fornnax is rooted in his understanding of market needs and customer expectations. His experience has provided valuable insight into what recycling plant operators require—not only from their machinery but also from the service teams supporting them.

According to Mr. Baur, Fornnax’s reputation for robust machine construction, superior wear protection, and maintenance-friendly design made the partnership a natural fit.

The collaboration comes at a time when Europe’s tyre recycling industry is facing mounting challenges, including rising cost pressures, shrinking margins, delayed investments, and a shortage of skilled labour. Mr. Baur believes these conditions reinforce the need for technically strong service partners capable of delivering rapid, dependable support.

Commenting on the partnership, he said, “Fornnax, with its exceptional price-performance ratio and superior quality, has the potential to become a market leader in Europe. We would like to be their service partner in this journey.”

Comprehensive Support Across the Equipment Lifecycle

As Fornnax’s authorised service partner, Mr. Baur will oversee the complete lifecycle support of the company’s equipment throughout the European Union. His responsibilities will include installation, commissioning, preventive maintenance, emergency repairs, and spare parts support across mechanical, hydraulic, and electrical systems.

Looking ahead, he also plans to develop a centralised spare parts distribution hub for European customers, particularly if Fornnax establishes a warehouse facility in Worbis to facilitate faster deliveries. To further strengthen service coverage, Mr. Baur intends to expand operations by adding two to three additional service teams and vehicles each year, progressively increasing capacity across the continent.

A Shared Commitment to Customer Excellence

Highlighting the strategic importance of the partnership, Mr. Jignesh Kundaria, Director and CEO of Fornnax, said:

“We strongly believe that by continuously improving our service quality and customer satisfaction index, we can build long-term relationships with our customers. Higher customer satisfaction leads to greater trust, which significantly increases repeat orders and ultimately drives sustained growth in our sales revenue.”

This customer-first philosophy underpins Fornnax’s strategy of building a dedicated European service partner network instead of relying solely on remote support. With Mr. Baur joining this network, customers across the European Union will benefit from faster response times, expert technical assistance, and dedicated on-ground support from a partner with extensive experience in high-throughput shredding operations.

Mr. Baur’s appointment also reflects Fornnax’s broader ambition to establish itself as the preferred shredding solutions provider for the European recycling industry, marking another important milestone in the company’s international growth strategy.

Concrete

Nuvoco Vistas launches Limla cement plant, expands Gujarat footprint

Published

4 weeks ago

July 13, 2026

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Nuvoco Vistas opens a 2 MMTPA grinding unit at Limla, entering Gujarat and advancing its target of 35 MMTPA capacity by FY 2028.

Surat (Gujarat)

Nuvoco Vistas Corporation Ltd, a part of Nirma Group and one of India’s leading building materials company, has inaugurated the Limla Cement Plant in Surat (Gujarat), one of Vadraj Cement Limited’s (VCL) principal manufacturing facilities. The commissioning represents a key milestone in Nuvoco’s acquisition and restoration of VCL, while supporting the company’s expansion across the Western Indian cement market.

Vadraj Cement Limited is a subsidiary of Nuvoco Vistas Corporation Limited and has installed cement capacity of 6 MMTPA across its assets. The Limla inauguration therefore represents the first operational step in the acquired platform’s wider revival, while the Kutch facilities provide clinker supply, mineral security and coastal logistics support for the western business.

Nuvoco completed its acquisition of Vadraj Cement Limited, then under the Corporate Insolvency Resolution Process, after paying a consideration of Rs 1,800 crore in June 2025. VCL’s asset portfolio comprises a clinker unit at Kutch and a grinding unit at Limla in Surat. It also includes high-quality captive limestone reserves and a captive jetty at Kutch, supporting more efficient logistics. Following the takeover, Nuvoco began an extensive programme of restoration, refurbishment and expansion at both locations, leading to the commissioning of the Limla plant.

The Limla Cement Plant is expected to support a phased increase in sales volumes across Gujarat. It will also help Nuvoco supply neighbouring markets in Western Maharashtra and release cement capacity from its northern plants, which can consequently be redirected towards markets in North India. The plant will manufacture a full portfolio comprising Ordinary Portland Cement, Portland Slag Cement, Portland Pozzolana Cement and Portland Composite Cement. It will additionally produce the complete Nuvoco Duraguard range, including the premium Nuvoco Duraguard Microfibre product. The acquisition is also expected to generate operational synergies with Nuvoco’s existing plants at Nimbol and Chittorgarh in Rajasthan, improving logistics optimisation and market reach across important regional markets.

The grinding unit at the Limla Cement Plant was completed ahead of schedule, with 2 MMTPA of capacity now inaugurated to expand Nuvoco’s operating scale and customer reach. After Vadraj Cement’s assets become fully operational, plants in North and West India are expected to account for nearly 40 per cent of Nuvoco’s total cement capacity. This will broaden the company’s manufacturing network, strengthen access to high-growth markets and support its plan to increase consolidated cement capacity to 35 MMTPA by FY 2028, reinforcing its longer-term growth strategy.

Commenting on the development, Jayakumar Krishnaswamy, Managing Director, Nuvoco Vistas Corp Ltd, said: “The inauguration of the Limla Grinding Unit in Surat is an important milestone in Nuvoco’s growth journey and demonstrates our commitment to disciplined, value-accretive expansion. Gujarat is strategically significant for Nuvoco, with substantial opportunities arising from infrastructure investment, industrial growth, rapid urbanisation and continuing demand from the housing and construction sectors. The facility strengthens our regional footprint, improves operational flexibility and increases our ability to serve customers across northern and western markets with greater reliability and efficiency.”

He added: “Through the Vadraj acquisition, we have refurbished and restarted a strategically important asset, returning it to operations in record time through strong execution and collaboration between teams. The achievement demonstrates our ability to create value from acquired assets, fulfil our commitments and retain the confidence of stakeholders. It also highlights the strength of our project delivery capabilities and our continued focus on building sustainable, profitable growth over the long term.”

Nuvoco Vistas Corporation Limited is a building materials company whose vision is to build a safer, smarter and more sustainable world. It is among the leading players in East India and has a significant presence across North and West India. Nuvoco began operations in 2014 with a greenfield cement plant at Nimbol, Rajasthan. It later acquired Lafarge India Limited, which had entered India in 1999, followed by Emami Cement Limited in 2020 and Vadraj Cement Limited in April 2025. The company has also announced an expansion in eastern India through a new grinding mill at the Arasmeta Cement Plant, supported by several debottlenecking programmes involving equipment upgrades, process improvements and internal capacity initiatives. These developments place Nuvoco on track to achieve total cement capacity of approximately 35 MMTPA. The company reported total income of Rs 11,362 crore in FY 2025-26, reflecting its continuing growth trajectory.

Nuvoco operates a diversified portfolio across three segments: Cement, Ready-Mix Concrete and Modern Building Materials. Its cement portfolio includes Concreto, Duraguard, Double Bull, PSC, Nirmax and Infracem, covering Ordinary Portland Cement, Portland Slag Cement, Portland Pozzolana Cement and Portland Composite Cement. Its pan-India RMX business provides value-added products under Concreto for performance concrete, Artiste for decorative concrete, InstaMix for ready-to-use bagged concrete, X-Con covering M20 to M60 grades, and Ecodure for specialised green concrete. Nuvoco has supplied materials to projects including the Mumbai-Ahmedabad Bullet Train, Birsa Munda Hockey Stadium in Rourkela, Aquatic Gallery at Science City in Ahmedabad, and metro railway projects in Delhi, Jaipur, Noida and Mumbai.