Economy & Market

An Air of Expectancy

Published

10 years ago

July 4, 2016

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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.

Concrete

Wonder Cement appoints Mahesh Singh as VP Corporate Brand Communication

Published

3 days ago

October 9, 2026

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Singh brings 20+ years of brand and marketing experience, and will lead integrated corporate brand communication initiatives at Wonder Cement

New Delhi

Wonder Cement, a leading cement manufacturer, has appointed Mahesh Singh as Vice President – Corporate Brand Communication. In his new role, he will oversee corporate brand strategy and communication, including digital and performance marketing, public relations, trade, events, exhibitions, sports and experiential marketing.

Singh brings over two decades of experience across marketing and communications, with roles spanning the automotive industry, agencies and entrepreneurship. He spent more than a decade with Honda Motorcycle & Scooter India, working across integrated communication, media, digital, retail and consumer engagement. His stint also included helping build the company’s digital marketing capabilities.

He moved to dentsu X India as Vice President – Strategy & Planning, working across categories such as automotive, auto components, electric vehicles, FMCG, consumer electronics, BFSI, apparel and brand consulting. His responsibilities included media and marketing strategy, product launches, content, performance marketing and consumer activations.

Singh subsequently took an entrepreneurial route with Radiant Brands before joining Shriram Ltd (SPR Autotech) as Head – Marketing & Communications. There, his remit included brand and corporate strategy, communications, PR and ORM, retail identity, loyalty programmes and events.

At Wonder Cement, Singh will be responsible for bringing together the company’s corporate brand communication initiatives across digital, performance marketing, PR, trade, sports and experiential platforms. The role will focus on creating an integrated approach to communication across consumers, trade partners and other key stakeholders.

The appointment brings to Wonder Cement a marketer whose career has spanned the brand, agency and entrepreneurial sides of the communications ecosystem.

Wonder Cement, part of the RK Group, is a cement manufacturer with roots in Rajasthan and a focus on quality, trust and transparency. The company has grown to six manufacturing plants, and a cement capacity of 21.5 MTPA. With more than 2,000 employees and a network of over 5,000 dealers, its operations span manufacturing, distribution and customer engagement, with a focus on consistent product quality and efficient execution.

Concrete

JSW Cement commissions additional 1 MTPA grinding unit at Nagaur

Published

4 days ago

October 8, 2026

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With this commissioning, JSW Cement’s total cement grinding capacity has increased to 25.10 MTPA,
Mumbai

JSW Cement, one of India’s leading green cement producers and part of the diversified JSW Group, today announced the successful commissioning of an additional 1.00 MTPA cement grinding unit at Nagaur, Rajasthan. The commissioning marks another significant milestone in the Company’s growth strategy.

With this commissioning, JSW Cement’s total cement grinding capacity has increased to 25.10 MTPA, while its total clinker manufacturing capacity, including clinker capacity at its joint venture, JSW Cement FZC, stands at 9.74 MTPA.

JSW Cement had commenced operations in North India in March 2026 with the Nagaur Integrated Plant, comprising a 3.30 MTPA clinkerisation unit and 2.50 MTPA cement grinding unit. With the commissioning of the additional 1.00 MTPA cement grinding unit, the plant’s total cement grinding capacity has increased to 3.50 MTPA, enhancing the company’s ability to cater to the growing cement demand across Rajasthan, Haryana, Punjab and the National Capital Region (NCR). The expansion has been funded through a strategic mix of equity and long-term debt.

During the quarter ended 30th September 2026, JSW Cement has also commissioned the Alternate Fuel Handling System and the Waste Heat Recovery system (WHRS) at the Nagaur Integrated Plant.

Nilesh Narwekar, CEO, JSW Cement, said: “The commissioning of additional 1.00 MTPA grinding capacity at Nagaur is a key strategic priority for us and will accelerate JSW Cement’s expansion into North India. We look forward to servicing the growing needs of the region and contributing to the economic growth of Rajasthan, Haryana, Punjab and the NCR area. I am delighted to share that the company has commissioned this grinding unit within the expected timeline, showcasing our project execution capabilities. Further, the Alternate Fuel Handling System and the Waste Heat Recovery system (WHRS) are expected to substantially reduce our production costs going forward.”

Concrete

UltraTech becomes first Indian cement firm to cross 2 GW green energy

Published

5 days ago

October 7, 2026

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UltraTech Cement has crossed 2 GW of captive green energy capacity, with renewables and waste heat recovery meeting 48 per cent of its power needs.

Mumbai

UltraTech Cement Limited has surpassed 2 GW of installed green energy capacity for captive use, becoming the first cement company in India to achieve the milestone. The Aditya Birla Group company commissioned 116.55 MW of wind capacity at its Inter-State Transmission System-connected wind-solar hybrid project in Barmer, Rajasthan, along with 10 MW of Waste Heat Recovery System capacity at Sarlanagar Cement Works in Karnataka.

With these additions, UltraTech’s cumulative installed green energy capacity has reached 2,024 MW. This includes 1,580 MW of renewable energy capacity and 444 MW of waste heat recovery capacity, together meeting around 48 per cent of the company’s current power requirements.

The company said the milestone reflects the progress of its long-term energy transition strategy. In FY27 so far, nearly one-third of UltraTech’s 76 manufacturing units in India have maintained green energy utilisation above 50 per cent of their electricity requirements, while five units have crossed 95 per cent.

K C Jhanwar, Managing Director, UltraTech Cement Limited, said, “Crossing the 2 GW green energy milestone is the result of a strategy we have pursued consistently over the past decade. Cement is an energy-intensive, hard-to-abate sector, and showing that reliability and growth can go hand in hand with a rapid shift to green energy sets a benchmark for the industry. With nearly half of our power needs now met through green energy, we are significantly less exposed to fossil fuel supply constraints and power price volatility. As we scale up renewables, waste heat recovery and battery storage across our operations, we are building an energy foundation for stable, long-term growth.”

UltraTech commissioned 430 MW of green energy capacity in FY26 and continues to expand its renewable energy and waste heat recovery portfolio.

The company is also progressively integrating Battery Energy Storage Systems across its operations to improve renewable energy utilisation and supply reliability.

In 2025, UltraTech operationalised what it described as India’s first on-site hybrid round-the-clock renewable energy project at Sewagram Cement Works in Gujarat. The project combines solar, wind and battery storage.

As part of its decarbonisation strategy, UltraTech said it has not invested in new captive thermal power capacity for either greenfield projects or brownfield expansions at its integrated units for more than a decade.

The company said its expanding green energy portfolio is helping reduce dependence on conventional grid electricity and fossil fuel-based power, while lowering exposure to fluctuations in coal and electricity prices.

UltraTech aims to increase green energy’s share in its total power mix to 85 per cent by 2030. As a member of RE100, it has also committed to meeting 100 per cent of its electricity requirement through renewable sources by 2050.

UltraTech Cement, the cement flagship of the Aditya Birla Group, has a total grey cement capacity of 210.1 MTPA and white cement and putty capacity of 3.5 MTPA. The company is also a signatory to the GCCA Climate Ambition 2050 and has committed to the GCCA Net Zero Concrete roadmap.