Concrete

The government needs to strictly enforce cement usage in rural and urban roads

Published

12 years ago

January 31, 2015

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Faisal Alam, President-Sales & Marketing, Kalyanpur Cement
Overall cement demand will go up which will increase the present capacity utilisation levels from 50-60 per cent to around 80 per cent, says Faisal Alam, President-Sales & Marketing, Kalyanpur Cement. Excerpts from the interview…Which sectors will drive cement demand in 2015?
According to the recent Government of India guidelines, most of the highways and roads will be built using concrete. This should have happened much earlier. If this happens, infrastructure demand will take the lead as is the case in China. The gap between China and India as first and second largest producer of cement in the world is primarily on account of cement being used in roads and bridges in China. The overall specs of the roads is for 100 years or more horizon. Rest of the sectors will grow at 7 to 8 per cent.

What will be the likely demand-supply scenario in 2015?
This will depend on cement usage in roads and bridges. In case of 100 per cent conversion to cement for road and highway building, the overall growth may easily reach double-digit figures. That will lead to demand outstripping supply (at 100 per cent capacity utilisation) but in not less than a year and a half time. We are yet to catch up with developed nations in as far as FAR vs Road width vs height is concerned. The emphasis on low-cost housing will also make a difference if it is well supported by government. This is a more important area than building smart cities.

What is your estimate on the cement prices in 2015 and how will it impact the market?
Cement prices will cross Rs 400 mark per bag across the country in order that cement companies survive in line with rising costs and a huge tax burden.

What is the export/import scenario in 2015 for cement and its raw materials?
Export levels will go up but not at a very large variance than what has been in recent years because I believe Indian cement will be dearer with rupee consolidating against foreign currencies. Raw material import will go up, specially coal and gypsum.

What are the policy initiatives you expect from the government?
The government needs to strictly enforce cement usage in ?all? roads, rural or urban. Improve building laws to encourage sky scrapers on smaller footprints, incentivise low cost housing, reduce interest rates on housing loans and also reduce income tax rates on disposable income.

Increase coal output in the country by bringing in modern technology for higher output of coal. Simultaneously, encourage R&D at premier institutes to substitute usage of coal (gas pipelines?) Better roads are needed. Also encourage washeries so that less ash and more coal is transported. Today, coal is Railways? highest transported commodity followed by steel and cement. Average ash from pit is in the range of 30-40 per cent. Railways is therefore transporting huge amount of ash which is further leading to disposal problems of fly ash at thermal power plants.

Concrete

UltraTech Cement Expands in Andhra Pradesh with Rs. 26.5 bn

Petnikota plant adds 3.6 MTPA cement dispatch capacity

Published

15 hours ago

October 23, 2026

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UltraTech Cement has expanded its manufacturing footprint in Andhra Pradesh with the commissioning of Petnikota Cement Works, an integrated cement plant built with an investment of around Rs. 26.5 bn. The facility is located in Petnikota village in Kolimigundla mandal of Nandyal district, in the Rayalaseema region.

Construction of the plant began in May 2025. The facility has a clinkerisation capacity of 3.3 MTPA and a cement dispatch capacity of 3.6 MTPA, strengthening the company’s production and distribution presence in the State.

The plant is expected to provide direct employment to 650 people and indirect employment to another 2,000. It has been designed to operate entirely on green energy and does not have a captive thermal power plant. The project also uses no groundwater, according to information released by the Andhra Pradesh Government.

Nara Lokesh, Andhra Pradesh Minister for Information Technology, said in the release that the facility was taken from groundbreaking to commissioning in 14 months. He described the project as a state-of-the-art addition to the company’s operations in the State and said it would create 2,650 direct and indirect employment opportunities.

Petnikota Cement Works adds to UltraTech Cement’s manufacturing capacity in Andhra Pradesh while supporting industrial activity in Nandyal district. The plant’s energy design and stated groundwater-use policy are also intended to reduce the environmental impact of its operations. The company has identified the facility as part of its continuing capacity expansion in the Indian cement market.

Concrete

Nuvoco reports 13.5% revenue growth in Q2 FY27

Cement sales rose 9% to 4.7 MMT, while EBITDA increased 11%.

Published

15 hours ago

October 23, 2026

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Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.

The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.

On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid renewable energy project in Rajasthan. Once operational, the project is expected to generate about 100 million units of renewable electricity annually. The company expects it to reduce reliance on conventional power sources and improve long-term cost certainty across its Rajasthan operations.

Jayakumar Krishnaswamy, Managing Director, Nuvoco Vistas Corp. Ltd., said, “Q2 FY27 was a testament to resilient execution in a challenging operating environment. Despite intense and erratic rainfall in our key markets, global and regional logistics & supply chain disruptions, and elevated input costs stemming from ongoing geopolitical uncertainty, the Company delivered strong YoY growth in Revenue, EBITDA, and PAT. Our performance reflects the strength of our strategic levers of premiumisation and geographical mix optimisation, which helped realisations amid muted cement prices.”

He added, “During the quarter, the Company achieved a significant growth milestone with the successful commissioning of the 2 MMTPA Grinding Unit at Limla, Surat, underscoring our strong project execution capabilities. This achievement reinforces our confidence in delivering the remaining modules of the Vadraj Cement Project at Kutch and Sachana within the planned timelines. Looking ahead, while we remain mindful of evolving macroeconomic and geopolitical dynamics, we remain focused on operational excellence, accelerating premiumisation, optimising supply chain efficiencies, and executing our growth projects as planned.

Concrete

Meghalaya Cabinet Approves MCCL Closure, Writes Off Rs. 244.3 mn

Cabinet approves winding up of state-owned cement company

Published

5 days ago

October 19, 2026

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The Meghalaya Cabinet has approved the closure and winding up of Meghalaya Cherra Cement (MCCL), a state-owned cement company, with pending liabilities of approximately Rs. 244.3 mn to be written off as part of the process. The decision was announced by Chief Minister Conrad K Sangma on October 13, 2026.

The approved write-off comprises about Rs. 89 mn in sales tax dues and Rs. 155.3 mn in royalty dues. The Cabinet’s decision addresses the liabilities that remained after the company’s operations and enables the government to proceed with its formal closure.

Sangma said employee dues owed by MCCL had been settled in line with the state government’s commitment. The settlement of employee-related liabilities is a key part of the winding-up process and removes outstanding obligations to the company’s workforce.

The Chief Minister explained that MCCL is owned by the government, meaning the pending liabilities would otherwise involve transfers between the state government and its departments. Writing off the dues is intended to simplify the accounting and administrative steps required to complete the closure.

The decision is also intended to ensure that the winding-up does not create an additional financial burden for the state government. With employee payments settled and the sales tax and royalty liabilities addressed through the approved write-off, the Cabinet’s approval marks a further step towards completing the formal closure of MCCL.

The action follows the state government’s decision to discontinue the company and resolve its outstanding obligations through an orderly winding-up process. The approved measures cover the principal liabilities identified for settlement and allow the government to advance the remaining formal procedures associated with closing the state-owned enterprise.