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Cyclical challenge

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India is the second largest manufacturer of cement in the world. The Indian cement industry includes 20 companies which account for over 70 per cent of the market. With these 20 major players planning to up their capacity in the year 2013, the cement production is expected to increase. Nevertheless, the industry is currently facing a downward pressure on account of increase in input costs and slackness in demand forcing prices downwards. Experts from this sector believe that once the pending projects, development in the tier II and tier III cities gets back on track, the demand for cement will rise.

According to data from Cement Manufacturers Association (CMA), India has around 139 large cement plants with a capacity of 234.3 million tonne as on March 31, 2011. India’s cement industry experienced a modest recovery in 2011-12 with demand rising 6.6 per cent compared to a mere 4 per cent increase in 2010-11. The sale of cement rose to 223.02 million tonne in 2011-12 from 209.5 million tonne in 2010-11 whereas production expanded 6.2 per cent to 223.6 million tonne against 210.5 million tonne. The pan-India price of cement rose 14 per cent on an annual basis in 2011-12 and cement companies added 63 million tonne production capacity in the last two years.

However, now the industry is going through a challenging phase. Players from the field are optimistic that the situation will improve in the near future. The industry is expected to add 30-40 million tonne of capacity in 2013.The sector is set to see large scale merger and acquisition. CARE Research estimates the cement demand to grow at a CAGR of 8.3 per cent during the period FY12-15.

With the industry in its cyclical phase of challenges, we, at ICR, decided to bring forth the major players and their views on the industry. We have further quizzed them on their expectations from the upcoming budget of 2013. Extraordinary concrete machines were on display at bC India from Februalry 5-8, 2013 at Bandra Kurla Complex, MMRDA Grounds, Mumbai thus proving that technology is getting more and more sophisticated in the sector. Taking a leaf from the same, the Indian Cement Review conference is being scheduled in April to deliberate many important issues amidst a galaxy of experts. So look for the announcement advertisement in this issue and book your seats early in this conference.

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Concrete

CCU testbeds in Tamil Nadu

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Tamil Nadu is set to host one of India’s five national carbon capture and utilisation (CCU) testbeds, aimed at reducing CO2 emissions in the cement industry as part of the country’s 2070 net-zero goal, as per a news report. The facility will be based at UltraTech Cement’s Reddipalayam plant in Ariyalur, supported by IIT Madras and BITS Pilani. Backed by the Department of Science and Technology (DST), the project will pilot an oxygen-enriched kiln capable of capturing up to two tonnes of CO2 per day for conversion into concrete products. Additional testbeds are planned in Rajasthan, Odisha, and Andhra Pradesh, involving companies like JK Cement and Dalmia Cement. Union Minister Jitendra Singh confirmed that funding approvals are underway, with full implementation expected in 2025.

Image source:https://www.heavyequipmentguide.ca/

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Concrete

JSW Cement gears up for IPO

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JSW Cement has set the price range for its upcoming initial public offering(IPO) at US$1.58 to US$1.67 per share, aiming to raise approximately US$409 million. As reported in the news, around US$91 million from the proceeds will be directed towards partially financing a new integrated cement plant in Nagaur, Rajasthan. Additionally, the company plans to utilise US$59.2 million to repay or prepay existing debts. The remaining capital will be allocated for general corporate purposes.

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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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