Economy & Market

On the Growth Path

Published

10 years ago

July 31, 2016

admin

The cement industry is likely to be driven by growth in rural demand and a pick-up in the infrastructure sector during FY2017, says an ICRA report.

ICRA, a professional investment and credit rating agency, expects the cement demand growth, which was relatively muted at 5 per cent in FY2016, to pick up to 6 per cent in FY2017 and further to 7 per cent in FY2018.

Demand growth during FY2017 is likely to be driven by the pick-up in the infrastructure segment, primarily road projects and the housing segment during the next one year; this apart, there is a likelihood of a recovery in the rural demand from H2 FY2017, given expectations of a better monsoon.

Further, in the southern markets, the demand is also likely to be supported by the construction of a new capital for Andhra Pradesh and the focus on irrigation and water grid schemes by Telangana.

With the pace of new capacity addition slowing down, ICRA expects to show an improvement especially in FY2018, which should support cement prices and profitability indicators for cement manufacturers.

Cement demand during Q4 FY2016 witnessed a rebound driven by a pick-up in the infrastructure segment owing to government spending.

ICRA estimates the utilisation at 70 per cent in FY2016, and given the capacity overhang, the capacity utilisation is likely to remain moderate at 71 per cent in FY2017 but it is expected to improve to 75 per cent in FY2018, driven both by the pick-up in demand as well as the slowdown in new capacity addition.

The eastern region will lead the capacity expansion, while the southern region, which had witnessed the highest capacity addition in the last five years, will see a considerable slowdown in capacity addition during this period.

Improvement in the capacity utilisation in the north, west and east is likely to support the cement prices in these regions in the near term. While the demand is expected to improve in the south, the capacity utilisation is likely to remain lower. Thus, pricing discipline will remain critical for the profitability of the mills in the south in the near term. On an all-India basis, the profitability and debt protection metrics are likely to show a moderate improvement in FY2017.

The ICRA study on select cement companies shows that most cement companies in the sample in the study have reported either a decline or a modest year-on-year (y-o-y) increase in revenues in FY2016. Only two companies, namely OCL India Limited and JK Lakshmi Cement Limited, registered a double-digit y-o-y revenue growth due to volumetric growth aided by capacity expansion.

The profitability margins of most cement companies declined or reported moderate increase on a y-o-y basis (except for south-based companies) during FY2016 when compared to FY2015.

Overall lower cement prices in the northern and western regions during FY2016, coupled with an increase in raw material and freight costs, have impacted the operating profitability of the mills located in these regions.

While the debt coverage metrics for the north-based companies declined on a y-o-y basis in FY2016, the same has improved substantially for the south-based companies.

Concrete

Fornnax Wins AIRIA’s Special Export Award for Rubber Machinery in 2025-26

Published

1 week ago

October 19, 2026

admin

Fornnax Technology Pvt. Ltd. has been honoured with the Special Export Award – Rubber Machinery for 2025–26 by the All-India Rubber Industries Association (AIRIA), in recognition of its highest exports of tyre recycling plants to the European region.

With more than a decade of experience in India’s tyre recycling industry, Fornnax has contributed to the development of advanced recycling technologies and infrastructure. The company currently holds a 90% market share in India’s domestic tyre recycling sector, while exports account for 30% of its business, spanning markets such as Europe, Australia and the GCC.

The award marks another milestone for Fornnax, whose tyre recycling lines and advanced shredding technologies are supporting the growth of the circular economy in India and international markets.

Commenting on the recognition, Mr. Jignesh Kundaria, Founder and Director of Fornnax, said:

“This honour from AIRIA is a reflection of an incredible journey we have undertaken over the years. When we started Fornnax, there was no established recycling industry in India to follow. We chose to build for the future instead. Today, when you see India’s tyre recycling sector, it has already transformed into a dynamic, high-growth industry and we are extremely proud to have played our part in building it.”

Unlike standalone equipment suppliers, Fornnax focuses on developing complete, high-capacity recycling infrastructure. Its integrated systems combine multiple stages of shredding and size reduction to enable efficient, continuous operations. This system-level engineering approach helps recycling operators improve throughput, equipment reliability and operational consistency.

The recognition reinforces Fornnax’s commitment to developing engineering technologies that contribute to a more efficient and circular recycling ecosystem.

Looking ahead, the company aims to expand its international presence while continuing to develop advanced shredding and recycling solutions to address the growing volumes and evolving requirements of the global recycling industry.

For more information, visit: www.fornnax.com

Concrete

Wonder Cement appoints Mahesh Singh as VP Corporate Brand Communication

Published

3 weeks ago

October 9, 2026

admin

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

3 weeks ago

October 8, 2026

admin

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.”