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Subdued demand hits cement cos

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Indian cement industry hit a slowdown in the beginning of this year as cement production was down by 0.5 per cent in the Jan-March 2015 period. Cement price also came under pressure due to weak demand.

Due to weak demand from end-user segment, the nationwide cement demand remained sluggish. Cement price also came under pressure due top the weak demand.

Cement demand remains subdued due to weak demand from end user indusries Cement demand has remained sluggish in Q4 FY15 which is traditionally a seasonally strong quarter for the cement industry. All-India cement production declined by 0.5% YoY during Jan-Mar 2015 as against an increase of 9.7% during Apr-Sept 2014. While pre-election spending and delayed monsoon had supported the growth in cement demand in H1 FY15, the growth slowed down in H2 FY15 once the election cycle was over. Cement demand was also impacted by cut down in government spending in Q4 FY15, muted demand from real estate and construction projects and slow recovery in infrastructure spending. Further, decline in kharif crops production owing to poor monsoons affected agricultural incomes and post-monsoon rural demand for cement for housing and other purposes. Regional factors such as extension of monsoon in South, extremely cold weather in North India and unseasonal rains in North in Q4 FY15 also affected construction activities and consequently cement demand in some areas. The demand has showed no signs of recovery in April 2015 with cement production declining by 2.4% YoY during the month.

Significant slowdown in fresh capacity addition in FY17 to aid improvement in capacity utilisation
The industry has seen slowdown in addition of new capacities due to supply glut faced in recent times. For instance, between FY11-FY15, the industry added 92 MTPA cement capacities as against 122 MTPA in the preceding 4-year period FY07-FY11. However, slowdown in demand (cement production grew by 6.0% during FY11-FY15 as against 7.6% during FY07-FY11) resulted in decline in capacity utilization from 77% in FY12 to 72% in FY14 despite slowdown in fresh capacity addition. Going forward, we expect the industry to add 28 MTPA capacities during FY16-FY17- 21 MTPA in FY16 and 8 MTPA in FY17 as against the peak addition of 50 MTPA in FY10. Eastern region will lead the capacity expansion and is expected to witness about 12 MTPA capacity additions during FY16-FY17.

Southern region, which had witnessed the highest capacity addition in the last five years, will see a considerable slowdown adding only 6 MTPA of capacity addition in the next 2 years. Assuming a demand growth of 7% over the next two years, the incremental demand will be 19-20 MTPA, which will just match the incremental supply in FY16 resulting in stable capacity utilization vis-a-vis previous year. However, with slowdown in new project execution in FY17, the all-India cement capacity utilisation is likely to improve to 75% in FY17.

Prices come under pressure due to weak demand1

  • North: Cement companies in North raised prices by Rs. 20/bag in Jan 2015 ahead of the busy season in anticipation of recovery in demand. However, they were unable to sustain these hikes due to weak demand and unseasonal rains. For example, average wholesale cement prices in Chandigarh increased from Rs. 264/bag in Dec 2014 to Rs. 285/bag in Jan 2015 but declined to Rs. 276/bag in Feb 2015 due to subdued demand. Cement companies again raised prices by Rs. 10-15/bag in the month of Mar 2015 but prices corrected by Rs. 20/bag in May 2015. Cement prices in North have slid below last year?s prices.
  • West: Western region, particularly Maharashtra has seen a steep decline in prices. Average wholesale prices in Mumbai have declined to Rs. 285/bag from their peak level of Rs. 364/bag in Jan 2015. Prices in Ahmedabad have also declined by Rs. 15-20.bag due to weak demand.
  • East: The average wholesale prices in Kolkata market remained in the range of Rs. 340-360/ bag during FY15 and have increased to Rs. 363/bag in May 2015.
  • South: Cement companies took a major price hike in Dec 2014 to pass on the rising costs. For example, in the Hyderabad market, cement prices rose sharply by Rs. 60/bag MoM to Rs. 350/bag in Jan 2015. While there has been some disruption in pricing discipline in May 2015, the prices continue to be significantly higher on a YoY basis.

Q4 FY15 revenue growth remains modest due to weak demand; South based companies report healthy profitability in Q4 FY15
Most cement companies in ICRA Sample2 reported either a decline or a modest YoY increase in revenues in Q4 FY15. Only two companies, namely OCL India Limited and JK Cement Limited registered a double-digit YoY revenue growth due to volumetric growth aided by capacity expansion. The revenues of companies in ICRA sample registered mere 0.6% YoY growth. On a sequential basis, all companies reported an increase in revenues with revenues for ICRA Sample increasing by 9.0% QoQ in Q4 FY15.

The profitability margins of most cement companies declined on a YoY basis (except for South based companies). Despite this, the operating margins of ICRA Sample increased by 100 basis points to 19.2% n Q4 FY15 driven by performance of South based cement companies as well as ACC Limited. The operating profitability margins of South based companies namely, The Ramco Cements Limited and The India Cements Limited improved significantly both on a sequential and YoY basis due to significant hike in cement prices in South in Dec 2014. Cement companies in North had witnessed healthy profitability margins in Q4 FY14 driven by shutdown of 6MTPA capacity of Binani cement Limited and subsequent increase in cement prices in the region. As a result, on a YoY basis, the profitability margins in North (JK Cement Limited, JK Lakshmi Cement Limited, shree Cement Limited) came under pressure in Q4 FY15.

1Source for region-wise price data: CMIE
2ICRA Sample Includes ACC Limited, Ambuja Cements Limited, OCL India Limited, Shree Cement Limited, Ultratech cement Limited, JK Cement Limited, JK Lakshmi Cement Limited, Prism Cement Limited, the India Cements Limited, The Ramco Cements Limited

By Sabyasachi Majumdar, Sr.VP, Co-head, Corporate Sector Ratings, ICRA Ltd

Exhibit 3: Revenues and Profitability of Key Cement Players (Q4 FY15)
Revenue
(Rs.
Billion)
YoY
Revenue
Growth
QoQ
Revenue
Growth
Operating Profits
(Rs. Billion)
Operating Profitability
Margin (%)
Q4
FY15
% % Q4
FY14
Q4
FY15
Q3
FY15
Q4
FY14
Q4
FY15
Q3
FY15
ACC Limited 30.8 1.8% 8.6% 4.25 6.09 2.57 14.0% 19.8% 9.1%
Ambuja Cements
Limited
24.6 -7.1% 2.4% 5.89 5.10 3.58 22.2% 20.7% 14.9%
JK Cement Limited 9.2 10.0% 14.7% 1.63 1.64 1.01 19.6% 17.9% 12.6%
JK Lakshmi Cement
Limited
5.8 -10.8% 4.0% 1.12 0.71 0.75 17.3% 12.4% 13.6%
OCL India Limited 6.7 24.4% 22.2% 0.92 1.01 0.87 17.2% 15.2% 16.0%
Prism Cement Limited 15.3 0.4% 14.3% 1.19 0.84 0.37 7.8% 5.5% 2.7%
Shree Cement Limited 15.8 -5.3% 2.1% 4.31 3.41 3.06 25.9% 21.6% 19.8%
The India Cements
Limited
10.4 -7.3% 0.3% 1.19 2.00 1.63 10.6% 19.2% 15.7%
The Ramco Cements
Limited
10.0 1.2% 22.2% 1.29 2.74 1.30 13.1% 27.5% 15.9%
Ultratech Cement
Limited
62.1 4.3% 10.9% 12.71 13.10 9.57 21.3% 21.1% 17.1%
TOTAL (ICRA
Sample)
190.6 0.6% 9.0% 34.50 36.65 24.71 18.2% 19.2% 14.1%
Source: Financial Results of Companies, ICRA92s estimates

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Economy & Market

RAHSTA Roundtable Sets Agenda for Smarter, Safer Highways

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Roundtable discussions focus on innovation for safer highways.

Held on 12 March 2026 at Courtyard by Marriott, Mumbai, alongside the Infrastructure Today Airport Conclave, the RAHSTA Roundtable brought together stakeholders from across the highways and infrastructure ecosystem to shape the agenda for the 16th RAHSTA 2026, scheduled for 8–9 July 2026 at the Jio Convention Centre, Mumbai. The session focused on key industry themes including road construction, technology, safety and long-term sustainability.

Opening the discussion, Pratap Padode, Founder, FIRST Construction Council, said the roundtable marked the beginning of a broader consultative process leading up to the July event. The aim, he noted, is to bring together industry stakeholders to refine the agenda for discussions on the future of roads, bridges, tunnels and allied infrastructure.

Padode noted that while central road project awards have slowed in recent years, states are increasingly driving the next phase of infrastructure growth. Maharashtra, with its long-term road development plans and agencies such as MSRDC and MSIDC, is expected to play a significant role in this expansion.

RAHSTA Expo 2026 as a specialised platform dedicated to road infrastructure, covering highways, tunnels, bridges and flyovers along with construction technologies, safety systems and maintenance solutions. He also highlighted the growing importance of rural connectivity and said the organisers are engaging with government bodies to highlight rural road development initiatives.

Tanveer Padode, CIO, ASAPP Info Group, presented insights from IMPACCT, the group’s infrastructure intelligence platform. He pointed to a strong project pipeline despite slower highway awards earlier in the year, noting that states such as Maharashtra, Odisha and Arunachal Pradesh are emerging as key drivers of new projects. The data also revealed that only a small group of contractors participates in large-value infrastructure bids.

Lt Gen Rajeev Chaudhary, former Director General, Border Roads Organisation and Chairman of the RAHSTA Expo Committee, emphasised the need for stronger collaboration across the ecosystem, including policymakers, contractors, technology providers and financiers. He also called for addressing systemic issues within the sector and encouraged greater participation of women in infrastructure leadership.

The discussion also explored the evolving economics of road development. Phani Prasad Mandalaparthy, Associate Director, CRISIL Intelligence, noted that the slowdown in project awards reflects a shift towards higher-value logistics corridors rather than simple road widening projects. However, private participation through BOT and TOT models remains limited.

From the contractors’ perspective, Sudhir Hoshing, Whole-Time Director, Ceigall, said companies are becoming more selective in bidding, favouring projects with clearer payment mechanisms and efficient processes. While NHAI continues to offer greater operational clarity, states such as Uttar Pradesh and Bihar were cited as relatively supportive environments for project execution.

Durability and sustainability also emerged as key themes. Himanshu Agarwal, COO – Road & Infrastructure, Zydex Group India, highlighted the need to prioritise lifecycle performance and resilient pavements, while participants discussed the potential of alternative materials such as plastic waste, steel slag and industrial by-products in road construction.

Dr LR Manjunatha, Vice President, JSW Cement, emphasised that India has abundant fly ash, slag and other industrial materials that can improve durability and sustainability if integrated into specifications and policy frameworks.

Technology and equipment challenges were also discussed. Dr Lakshmana Rao Mantri, Dy General Manager, Afcons Infrastructure, highlighted the shortage of tunnel boring machines (TBMs), which is delaying several underground infrastructure projects. Participants agreed that developing domestic TBM manufacturing capabilities will be critical for future infrastructure expansion.

The future of concrete pavements was another area of discussion. Dr V Ramachandra, President, Indian Concrete Institute, stressed that the debate should focus on lifecycle performance rather than material choice alone, noting that evolving design standards are improving the feasibility of concrete roads.

Prof Dharamveer Singh of IIT Bombay added that while India has made significant progress in infrastructure development, stronger capacity building and better execution practices are essential to ensure consistent road quality.

The discussion also touched upon technology adoption in the sector. Rushabh Mamania, Partner & CBO, Roadvision, highlighted the growing role of AI in road infrastructure, noting that AI-driven monitoring systems are already being deployed across large stretches of national highways.

Overall, the roundtable underscored that the future of highway infrastructure will depend not only on the pace of construction but also on durability, safety, technology integration and sustainable materials. The discussions offered valuable insights that will help shape the agenda for RAHSTA 2026 and guide future collaboration within the industry.

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Economy & Market

CTS Roundtable Charts Tech-Led Roadmap for Construction

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CTS Roundtable Maps Technology Roadmap for Construction

Ahead of the Construction Technology Show (Con Tech Show) 2026, industry leaders, technology innovators and academia came together in Mumbai to deliberate on how digitalisation, automation and industrialised construction can reshape the sector. The discussion made one thing clear: construction can no longer afford to treat technology as optional.

Held on 12 March 2026 at Courtyard by Marriott, Mumbai, alongside the Infrastructure Today Airport Conclave, the CTS Roundtable served as a precursor to the Construction Technology Show 2026, scheduled for 19–20 August 2026 at NESCO, Mumbai.

A platform to move from discussion to deployment

Opening the session, Pratap Padode, Founder and Editor-in-Chief, ASAPP Info Global Group, said construction technology has long remained close to his heart, especially given the sector’s traditionally slow pace of technology adoption. He noted that over the years, the Construction Technology Summit had steadily built interest, and the next step was now to expand it into a larger, more meaningful platform that could bring together technology providers, users, startups and innovators under one roof.

Padode said the vision for CTS is not limited to software alone. The platform aims to embrace all forms of technology that can improve construction efficiency, quality and execution—from digital tools and project management systems to lean construction, off-site fabrication and startup-led innovation. He also highlighted plans to deepen startup participation and create space for young companies to showcase emerging construction solutions.

Industry at a turning point

Moderating the roundtable, Naushad Panjwani, Chairman, Mandarus Partners, set the context by pointing out that the global construction industry, despite being a multi-trillion-dollar sector, continues to lag in productivity. He noted that while manufacturing has consistently improved efficiency, construction has remained slow to modernise.

Referring to both global and Indian trends, Panjwani underlined that the industry is now at a decisive moment. India, he said, is entering a major build cycle, and delivering the next phase of infrastructure and real estate growth through traditional methods alone is no longer viable. The goal of the roundtable, therefore, was not to debate technology in isolation, but to identify the most critical conversations that would bridge the gap between innovation and implementation.

His central message was clear: CTS 2026 must be shaped around themes that make CEOs, CIOs and CTOs feel they cannot afford to miss the event.

From BIM to AI, data to governance

A major theme that emerged through the discussion was the need for better data, better visibility and better decision-making. Dr Venkata Santosh Kumar of IIT Bombay echoed this, saying that the underlying data infrastructure itself needs attention. Construction projects, particularly remote ones, often face issues around connectivity, data collection and data use. Without this foundation, more advanced technologies cannot deliver their full value.

Chandra Vasireddy, CEO & Co-founder, Inncircles, expanded the discussion to governance, arguing that technology must help connect the many moving parts of a construction business. For him, the real value of digital transformation lies in creating better governance, clearer visibility and stronger business outcomes.

Tejas Vara of Inncircles stressed the importance of timely site data for leadership teams, especially in large and remote projects where decisions on materials, machinery and manpower often get delayed because information does not reach headquarters in time.

The role of AI also featured prominently. Rushabh Mamania, Partner and CBO, Roadvision said that while AI and machine learning are now common terms, vision intelligence and language intelligence have still not deeply penetrated the construction sector. He emphasised that startups in India are building relevant AI-led solutions and are already attracting international interest, showing that innovation need not be imported—it can be built locally and scaled globally.

Industrialised construction gains ground

The roundtable also placed strong emphasis on industrialised construction methods. Kalyan Vaidyanathan, CTO – Construction & R&D, Tvasta, called for greater focus on off-site fabrication and the broader industrialisation of construction. Bhargav Jog, General Manager, Dextra, highlighted precast technology and alternative sustainable materials as areas with immediate relevance.

Several participants agreed that modular, precast and pre-engineered approaches are no longer niche ideas. They are increasingly becoming practical responses to the sector’s challenges around labour shortage, timelines, quality control and predictability.

Anup Mathew, Sr VP & Business Head, Godrej, argued that the industry needs a fully integrated approach—from design and procurement to execution and asset management. Unless these are connected, technology adoption will remain fragmented and sub-optimal. He pointed to pre-engineered and modular systems as examples of how industrial thinking can compress timelines, improve quality and reduce dependence on difficult on-site conditions.

Adoption remains the biggest hurdle

While there was broad agreement on the promise of technology, the discussion repeatedly returned to one fundamental challenge: adoption.

Abhishek Kumar, COO, LivSYT, observed that the market is crowded with solutions, but many buyers still struggle to evaluate which technology suits which use case. According to him, the industry needs clearer frameworks to help users select, compare and adopt solutions, rather than expecting a single platform to solve every problem.

Dr Tenepalli JaiSai, Associate Professor, School of Construction(SoC), NICMAR University, noted that isolated technologies will not solve the productivity problem by themselves. What is required is an integrated Construction 4.0 approach, where digital, physical and cyber-physical systems work together rather than in silos.

That concern around silos was reinforced by Subodh Dixit, former Director, Shapoorji Pallonji, who said the issue is not just that technologies are disconnected, but that stakeholders are as well. Clients, consultants, contractors and partners often operate with different priorities. Unless these silos are broken, technology will struggle to percolate across the full project value chain.

Harleen Oberoi, Project Management, Tata Realty shared a practical perspective from the client side, saying that successful BIM implementation requires investment across the ecosystem, not just within one organisation. Trade partners, vendors and other stakeholders must also be trained and aligned if the technology is to deliver its intended results.

Beyond buzzwords

A notable takeaway from the session was that the industry is moving past the phase of treating technology as a buzzword. Participants repeatedly stressed that the real question is not whether technology should be used, but where it creates measurable value and how that value can be scaled.

The conversation also expanded beyond mainstream themes to include repairs and rehabilitation, construction and demolition waste, sustainability, circular economy, green sourcing, carbon measurement, design interoperability, generative design, robotics, and the role of horticulture and greener built environments.

Setting the agenda for CTS 2026

By the close of the session, the roundtable had surfaced a strong set of themes for the upcoming show: BIM and digital twins, AI and data platforms, industrialised construction, startup innovation, governance-led technology adoption, robotics, sustainable materials, and integrated project delivery.

More importantly, the session established CTS 2026 as more than an exhibition. It is shaping up to be a serious industry platform where users, technology providers, researchers and policymakers can collectively define the future of construction.

As Padode noted in his closing remarks, the conversation will continue through further consultations and possibly webinars in the run-up to the show. If the roundtable is any indication, CTS 2026 will aim not merely to showcase technology, but to push the industry towards meaningful adoption at scale.

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Economy & Market

Smart Pumping for Rock Blasting

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SEEPEX introduces BN pumps with Smart Joint Access (SJA) to improve efficiency, reliability, and inspection speed in demanding rock blasting operations.
Designed for abrasive and chemical media, the solution supports precise dosing, reduced downtime, and enhanced operational safety.

SEEPEX has introduced BN pumps with Smart Joint Access (SJA), engineered for the reliable and precise transfer of abrasive, corrosive, and chemical media in mining and construction. Designed for rock blasting, the pump features a large inspection opening for quick joint checks, a compact footprint for mobile or skid-mounted installations, and flexible drive and material options for consistent performance and uptime.

“Operators can inspect joints quickly and rely on precise pumping of shear-sensitive and abrasive emulsions,” said Magalie Levray, Global Business Development Manager Mining at SEEPEX. “This is particularly critical in rock blasting, where every borehole counts for productivity.” Industry Context

Rock blasting is essential for extracting hard rock and shaping safe excavation profiles in mining and construction. Accurate and consistent loading of explosive emulsions ensures controlled fragmentation, protects personnel, and maximizes productivity. Even minor deviations in pumping can cause delays or reduce product quality. BN pumps with SJA support routine maintenance and pre-operation checks by allowing fast verification of joint integrity, enabling more efficient operations.

Always Inspection Ready

Smart Joint Access is designed for inspection-friendly operations. The large inspection opening in the suction housing provides direct access to both joints, enabling rapid pre-operation checks while maintaining high operational reliability. Technicians can assess joint condition quickly, supporting continuous, reliable operation.

Key Features

  • Compact Footprint: Fits truck-mounted mobile units, skid-mounted systems, and factory installations.
  • Flexible Drive Options: Compact hydraulic drive or electric drive configurations.
  • Hydraulic Efficiency: Low-displacement design reduces oil requirements and supports low total cost of ownership.
  • Equal Wall Stator Design: Ensures high-pressure performance in a compact footprint.
  • Material Flexibility: Stainless steel or steel housings, chrome-plated rotors, and stators in NBR, EPDM, or FKM.

Operators benefit from shorter inspection cycles, reliable dosing, seamless integration, and fast delivery through framework agreements, helping to maintain uptime in critical rock blasting processes.

Applications – Optimized for Rock Blasting

BN pumps with SJA are designed for mining, tunneling, quarrying, civil works, dam construction, and other sectors requiring precise handling of abrasive or chemical media. They provide robust performance while enabling fast, reliable inspection and maintenance.With SJA, operators can quickly access both joints without disassembly, ensuring emulsions are transferred accurately and consistently. This reduces downtime, preserves product integrity, and supports uniform dosing across multiple bore holes.

With the Smart Joint Access inspection opening, operators can quickly access and assess the condition of both joints without disassembly, enabling immediate verification of pump readiness prior to blast hole loading. This allows operators to confirm that emulsions are transferred accurately and consistently, protecting personnel, minimizing product degradation, and maintaining uniform dosing across multiple bore holes.

The combination of equal wall stator design, compact integration, flexible drives, and progressive cavity pump technology ensures continuous, reliable operation even in space-limited, high-pressure environments.

From Inspection to Operation

A leading explosives provider implemented BN pumps with SJA in open pit and underground operations. By replacing legacy pumps, inspection cycles were significantly shortened, allowing crews to complete pre-operation checks and return mobile units to productive work faster. Direct joint access through SJA enabled immediate verification, consistent emulsion dosing, and reduced downtime caused by joint-related deviations.

“The inspection opening gives immediate confidence that each joint is secure before proceeding to bore holes,” said a site technician. “It allows us to act quickly, keeping blasting schedules on track.”

Framework agreements ensured rapid pump supply and minimal downtime, supporting multi-site operations across continents

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