Connect with us

Economy & Market

An Air of Expectancy

Published

on

Shares

Whatever be the actual indices simmering underneath our reported GDP growth numbers, clearly there is a global slowdown, and a corresponding ?near stagnant? situation in India. The venerable head of our central bank accepted as much, when he said recently that the top reason for our current crop of bad loans is economic downturn. Under such circumstances, only the very brave will forecast an 8 to 9 per cent demand growth for the cement industry in FY 2017, particularly in the backdrop of a meagre 4.5 per cent notched up in FY 16. To my surprise, I do see a few instances of such bravado! While the leading cement players are forecasting an average of about 7 per cent demand growth in the current financial year, some industry analysts are more optimistic in projecting an even higher growth of consumption, around 8 to 9 per cent.

It is often said that morning shows the day. In that sense, March and April months of 2016 may be pointers to what one can expect in the full year. Let?s take a look at some of the stats. For the full fiscal 2015-16, the eight core sectors (like Coal, Crude, Fertilisers, Cement, Steel, etc.,) which comprise nearly 40 per cent of India?s total industrial output, grew at only 2.7 per cent against 4.5 per cent growth in the previous year. However, the story is somewhat different for the month of March, the exit month of last fiscal. In March, these sectors grew an impressive 6.4 per cent, vis-+?-vis a shrinkage of 0.7 per cent observed in March 2015, and cement contributed in this expansion in no small measure, by growing @ 11 per cent.

Contextually, we must keep in mind that the quarter of Jan-Mar, and the month of March have always been positive for the cement industry, for reasons which can be easily assigned. Is March, therefore, a reliable trend that can be extrapolated? What about April 2016? Official statistics will be available later, but an indirect reflector like the Nikkei India Manufacturing Purchasing Managers? Index (PMI), is reported to be 50 in April against 52 in March. So, if the March numbers were good, April has been a bit of a dampener. In spite of such conflicting signals emerging, the mood of the industry seems to be upbeat, expecting a turnaround of demand in this year. This could be based on a few salient assumptions.

  • IMF has recently reaffirmed faith in India?s growth story, having projected 7.5 per cent GDP growth in this year for the Indian economy. Going by the historical relationship between GDP Growth and Cement Demand Expansion, a 7.5 per cent GDP growth should trigger at least 9 to 10 per cent of Cement Consumption hike.

  • However, this can be fallacious, because the old calculation of Cement Demand may have become invalid in the new series of GDP growth numbers, which are now based on added value, rather than on factor costs. This is also somewhat borne out by the fact that in 2015-16, while GDP has likely grown @ 7.3 per cent, Cement has grown only by 4.5 per cent.

  • The Met department has assured us of a robust monsoon. If that happens on the back of a few successive years of depressed rainfall, the rural economy and rural consumption may get a shot in the arm. If this assumption regarding impending monsoon materialises, this may have a substantial effect on retail cement demand.

  • Another assumption we seem to be making, is that government/PPP investments in Infra Projects will pick up speed in this year, thereby significantly pushing cement demand in the institutional segment.

A balanced analysis of these assumptions tells me that we may have to wait till the onset of calendar year 2017, for cement demand growth to really accelerate, and meet the expectations of the Industry.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Concrete

Our strategy is to establish reliable local partnerships

Published

on

By

Shares

Jean-Jacques Bois, President, Nanolike, discusses how real-time data is reshaping cement delivery planning and fleet performance.

As cement producers look to extract efficiency gains beyond the plant gate, real-time visibility and data-driven logistics are becoming critical levers of competitiveness. In this interview with Jean-Jacques Bois, President, Nanolike, we discover how the company is helping cement brands optimise delivery planning by digitally connecting RMC silos, improving fleet utilisation and reducing overall logistics costs.

How does SiloConnect enable cement plants to optimise delivery planning and logistics in real time?
In simple terms, SiloConnect is a solution developed to help cement suppliers optimise their logistics by connecting RMC silos in real time, ensuring that the right cement is delivered at the right time and to the right location. The core objective is to provide real-time visibility of silo levels at RMC plants, allowing cement producers to better plan deliveries.
SiloConnect connects all the silos of RMC plants in real time and transmits this data remotely to the logistics teams of cement suppliers. With this information, they can decide when to dispatch trucks, how to prioritise customers, and how to optimise fleet utilisation. The biggest savings we see today are in logistics efficiency. Our customers are able to sell and ship more cement using the same fleet. This is achieved by increasing truck rotation, optimising delivery routes, and ultimately delivering the same volumes at a lower overall logistics cost.
Additionally, SiloConnect is designed as an open platform. It offers multiple connectors that allow data to be transmitted directly to third-party ERP systems. For example, it can integrate seamlessly with SAP or other major ERP platforms, enabling automatic order creation whenever replenishment is required.

How does your non-exclusive sensor design perform in the dusty, high-temperature, and harsh operating conditions typical of cement plants?
Harsh operating conditions such as high temperatures, heavy dust, extreme cold in some regions, and even heavy rainfall are all factored into the product design. These environmental challenges are considered from the very beginning of the development process.
Today, we have thousands of sensors operating reliably across a wide range of geographies, from northern Canada to Latin America, as well as in regions with heavy rainfall and extremely high temperatures, such as southern Europe. This extensive field experience demonstrates that, by design, the SiloConnect solution is highly robust and well-suited for demanding cement plant environments.

Have you initiated any pilot projects in India, and what outcomes do you expect from them?
We are at the very early stages of introducing SiloConnect in India. Recently, we installed our
first sensor at an RMC plant in collaboration with FDC Concrete, marking our initial entry into the Indian market.
In parallel, we are in discussions with a leading cement producer in India to potentially launch a pilot project within the next three months. The goal of these pilots is to demonstrate real-time visibility, logistics optimisation and measurable efficiency gains, paving the way for broader adoption across the industry.

What are your long-term plans and strategic approach for working with Indian cement manufacturers?
For India, our strategy is to establish strong and reliable local partnerships, which will allow us to scale the technology effectively. We believe that on-site service, local presence, and customer support are critical to delivering long-term value to cement producers.
Ideally, our plan is to establish an Indian entity within the next 24 months. This will enable us to serve customers more closely, provide faster support and contribute meaningfully to the digital transformation of logistics and supply chain management in the Indian cement industry.

Continue Reading

Economy & Market

Power Build’s Core Gear Series

Published

on

By

Shares

A deep dive into Core Gear Series of products M, C, F and K, by Power Build, and how they represent precision in motion.

At the heart of every high-performance industrial system lies the need for robust, reliable, and efficient power transmission. Power Build answers this need with its flagship geared motor series: M, C, F and K. Each series is meticulously engineered to serve specific operational demands while maintaining the universal promise of durability, efficiency, and performance.

Series M – Helical Inline Geared Motors
Compact and powerful, the Series M delivers exceptional drive solutions for a broad range of applications. With power handling up to 160kW and torque capacity reaching 20,000 Nm, it is the trusted solution for industries requiring quiet operation, high efficiency, and space-saving design. Series M is available with multiple mounting and motor options, making it a versatile choice for manufacturers and OEMs globally.

Series C – Right Angled Heli-Worm Geared Motors
Combining the benefits of helical and worm gearing, the Series C is designed for right-angled power transmission. With gear ratios of up to 16,000:1 and torque capacities of up to 10,000 Nm, this series is optimal for applications demanding precision in compact spaces. Industries looking for a smooth, low-noise operation with maximum torque efficiency rely on Series C for dependable performance.

Series F – Parallel Shaft Mounted Geared Motors
Built for endurance in the most demanding environments, Series F is widely adopted in steel plants, hoists, cranes and heavy-duty conveyors. Offering torque up to 10,000 Nm and high gear ratios up to 20,000:1, this product features an integral torque arm and diverse output configurations to meet industry-specific challenges head-on.

Series K – Right Angle Helical Bevel Geared Motors
For industries seeking high efficiency and torque-heavy performance, Series K is the answer. This right-angled geared motor series delivers torque up to 50,000 Nm, making it a preferred choice in core infrastructure sectors such as cement, power, mining and material handling. Its flexibility in mounting and broad motor options offer engineers the freedom in design and reliability in execution.
Together, these four series reflect Power Build’s commitment to excellence in mechanical power transmission. From compact inline designs to robust right-angle drives, each geared motor is a result of decades of engineering innovation, customer-focused design and field-tested reliability. Whether the requirement is speed control, torque multiplication or space efficiency, Radicon’s Series M, C, F and K stand as trusted powerhouses for global industries.

http://www.powerbuild.in
Call: +919727719344

Continue Reading

Concrete

Compliance and growth go hand in h and

Published

on

By

Shares

Pankaj Kejriwal, Whole Time Director and COO, Star Cement, on driving efficiency today and designing sustainability for tomorrow.

In an era where the cement industry is under growing pressure to decarbonise while scaling capacity, Star Cement is charting a pragmatic yet forward-looking path. In this conversation, Pankaj Kejriwal, Whole Time Director and COO, Star Cement, shares how the company is leveraging waste heat recovery, alternative fuels, low-carbon products and clean energy innovations to balance operational efficiency with long-term sustainability.

How has your Lumshnong plant implemented the 24.8 MW Waste Heat Recovery System (WHRS), and what impact has it had on thermal substitution and energy costs?
Earlier, the cost of coal in the Northeast was quite reasonable, but over the past few years, global price increases have also impacted the region. We implemented the WHRS project about five years ago, and it has resulted in significant savings by reducing our overall power costs.
That is why we first installed WHRS in our older kilns, and now it has also been incorporated into our new projects. Going forward, WHRS will be essential for any cement plant. We are also working on utilising the waste gases exiting the WHRS, which are still at around 100 degrees Celsius. To harness this residual heat, we are exploring systems based on the Organic Rankine Cycle, which will allow us to extract additional power from the same process.

With the launch of Star Smart Building Solutions and AAC blocks, how are you positioning yourself in the low-carbon construction materials segment?
We are actively working on low-carbon cement products and are currently evaluating LC3 cement. The introduction of autoclaved aerated concrete (AAC) blocks provided us with an effective entry into the consumer-facing segment of the industry. Since we already share a strong dealer network across products, this segment fits well into our overall strategy.
This move is clearly supporting our transition towards products with lower carbon intensity and aligns with our broader sustainability roadmap.

With a diverse product portfolio, what are the key USPs that enable you to support India’s ongoing infrastructure projects across sectors?
Cement requirements vary depending on application. There is OPC, PPC and PSC cement, and each serves different infrastructure needs. We manufacture blended cements as well, which allows us to supply products according to specific project requirements.
For instance, hydroelectric projects, including those with NHPC, have their own technical norms, which we are able to meet. From individual home builders to road infrastructure, dam projects, and regions with heavy monsoon exposure, where weather-shield cement is required, we are equipped to serve all segments. Our ability to tailor cement solutions across diverse climatic and infrastructure conditions is a key strength.

How are you managing biomass usage, circularity, and waste reduction across
your operations?

The Northeast has been fortunate in terms of biomass availability, particularly bamboo. Earlier, much of this bamboo was supplied to paper plants, but many of those facilities have since shut down. As a result, large quantities of bamboo biomass are now available, which we utilise in our thermal power plants, achieving a Thermal Substitution Rate (TSR) of nearly 60 per cent.
We have also started using bamboo as a fuel in our cement kilns, where the TSR is currently around 10 per cent to 12 per cent and is expected to increase further. From a circularity perspective, we extensively use fly ash, which allows us to reuse a major industrial waste product. Additionally, waste generated from HDPE bags is now being processed through our alternative fuel and raw material (AFR) systems. These initiatives collectively support our circular economy objectives.

As Star Cement expands, what are the key logistical and raw material challenges you face in scaling operations?
Fly ash availability in the Northeast is a constraint, as there are no major thermal power plants in the region. We currently source fly ash from Bihar and West Bengal, which adds significant logistics costs. However, supportive railway policies have helped us manage this challenge effectively.
Beyond the Northeast, we are also expanding into other regions, including the western region, to cater to northern markets. We have secured limestone mines through auctions and are now in the process of identifying and securing other critical raw material resources to support this expansion.

With increasing carbon regulations alongside capacity expansion, how do you balance compliance while sustaining growth?
Compliance and growth go hand in hand for us. On the product side, we are working on LC3 cement and other low-carbon formulations. Within our existing product portfolio, we are optimising operations by increasing the use of green fuels and improving energy efficiency to reduce our carbon footprint.
We are also optimising thermal energy consumption and reducing electrical power usage. Notably, we are the first cement company in the Northeast to deploy EV tippers at scale for limestone transportation from mines to plants. Additionally, we have installed belt conveyors for limestone transfer, which further reduces emissions. All these initiatives together help us achieve regulatory compliance while supporting expansion.

Looking ahead to 2030 and 2050, what are the key innovation and sustainability priorities for Star Cement?
Across the cement industry, carbon capture is emerging as a major focus area, and we are also planning to work actively in this space. In parallel, we see strong potential in green hydrogen and are investing in solar power plants to support this transition.
With the rapid adoption of solar energy, power costs have reduced dramatically – from 10–12 per unit to around2.5 per unit. This reduction will enable the production of green hydrogen at scale. Once available, green hydrogen can be used for electricity generation, to power EV fleets, and even as a fuel in cement kilns.
Burning green hydrogen produces only water and oxygen, eliminating carbon emissions from that part of the process. While process-related CO2 emissions from limestone calcination remain a challenge, carbon capture technologies will help address this. Ultimately, while becoming a carbon-negative industry is challenging, it is a goal we must continue to work towards.

Continue Reading

Trending News

SUBSCRIBE TO THE NEWSLETTER

 

Don't miss out on valuable insights and opportunities to connect with like minded professionals.

 


    This will close in 0 seconds