Economy & Market

Emami Cement finalises expansion plans, introduces new brand

Published

8 years ago

October 31, 2016

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Emami Cement, which began operations at its integrated cement manufacturing plant in Chhattisgarh in July this year, expects to clock revenues of around Rs 500 crore for a full year of operations ending March 2017.
Its Chhattisgarh plant, with a capacity of around 5.5 MTPA, was set up in addition to two separate grinding plants that are to come up in West Bengal and Odisha at a total cost of Rs 3,500 crore.
Emami Cement, which also has a limestone mine in Andhra Pradesh, plans to set up a plant in that state with a capacity of 2 MTPA at a cost of Rs 1,500 crore.
The plant in Rajasthan, where it also has a mine, would come up with a capacity of 6 MTPA entailing a cost of another Rs 3,500 crore.
Manish Goenka, Director of Emami Group, said that the company is open to acquisitions. Initially, the company plans to cater to the markets of Chhattisgarh, West Bengal, Odisha and eastern Maharashtra?s Vidharbha region. The Bengal grinding unit would become operational in January 2017.
The company has started selling cement under the brand ?Double Bull?, Goenka said. -?We are bullish on the cement business, which will help boost both our top-line and bottom-line. We aim to be among the top three players in the cement industry. We expect our cement division?s turnover to touch Rs 2,500 crore in 2018-19,? Aditya Agarwal, director of the Rs 10,000 crore Emami group, said.
?Today?s consumers use two-three types of cement in building a single property. There are product varieties like pre-casted, pre-mix or ready-mix, too. We want to equip ourselves technologically and logistically to cater to this new-age requirement,? said Goenka.
The company is using the latest German equipment and robotics in its Chhattisgarh plant and has roped in global consulting giant McKinsey to advise it on the marketing strategies for its cement business.New brand
Emami says it has budgeted Rs 9,000 crore for the proposed expansion of its cement production capacity under the new brand ?Double Bull?.
The Odisha unit near Balasore, with a production capacity of 1.5 MT, will be ready in about 12-15 months.
Historically, Emami has grown its flagship business of consumer goods through acquisitions. The decision to diversify into cement manufacturing was taken after at least five years of deliberation, said Agarwal. Now, the company wants to scale up rapidly.
The business has certain entry barriers, Agarwal said, adding that despite being a commodity, cement offers opportunities in product differentiation. The biggest challenges are access to limestone deposits and large tracts of land to build factories, he said.
Speaking about the Emami Double Bull brand, Goenka said the group chose the bull as a symbol of strength, promising in its cement ?double (compressive) strength?. Initially, Emami will focus on selling in eastern India and the eastern parts of Maharashtra, according to Agarwal.
The eastern Indian market has a number of new entrants fighting for market share, which has kept prices depressed for the past year, said Rajesh Kumar Ravi, an analyst at Centrum Broking Ltd. The challenge for Emami as a new entrant is to strike a balance between shoring up sales and selling at remunerative prices, he added.

Concrete

15th Cement EXPO: A Step Forward in Cement Innovation

Published

2 weeks ago

January 17, 2025

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Mumbai

Following the immense success of the 14th Cement EXPO, held on December 14-15, 2023, at the Manekshaw Centre, New Delhi, the next edition of this premier event is set to take place in March 2025. The 15th Cement EXPO will be hosted at Yashobhoomi, Delhi, on 12th and 13th November 2025.

Meanwhile, the Cement Expo Forum 2025 is scheduled for 5th and 6th March 2025 at Taj Krishna in Hyderabad. This exciting 3-in-1 event, organised by FIRST Construction Council (FCC) and Indian Cement Review (ICR), will bring together industry leaders, innovators, and stakeholders to discuss the future of the cement sector.

Building on the Success of the 14th Cement EXPO

The 14th Cement EXPO was widely praised for its strong participation, attracting over 1,500 senior managers and decision-makers from across the cement industry. The event was inaugurated by Dr. Vibha Dhawan, Director General of TERI, and Ali Emir Adiguzel, Founder and Director of the World Cement Association, alongside Pratap Padode, Founder of FIRST Construction Council (FCC). The two-tiered exhibition space featured cutting-edge products and innovations from top companies within the cement industry’s supply chain.

The event also garnered significant support from key government bodies, including the Ministry of Road Transport and Highways, Government e-Marketplace (GeM), and the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, Government of India (GoI).

Recognition and Excellence in the Cement Industry

The 7th Indian Cement Review Awards celebrated excellence by presenting awards to 11 companies in various categories, recognising their contributions to growth and innovation within the industry. Notably, Parth Jindal, Managing Director of JSW Cement, was honoured with the prestigious Indian Cement Review – Person of the Year Award 2023. Meanwhile, Vinita Singhania, Vice Chairman and Managing Director of JK Lakshmi Cement Ltd, received the Lifetime Achievement Award for her outstanding leadership and contributions to the sector.

A Vision for Sustainability

With the theme of “Driving Sustainability Through Technology,” the 9th Indian Cement Review Conference hosted thought-provoking discussions and presentations, highlighting the industry’s commitment to adopting innovative, sustainable practices. The conference served as a platform for dialogue on the latest technological advancements aimed at transforming the cement sector, addressing key challenges, and fostering growth.

What to Expect from Cement EXPO 2025

The 15th Cement EXPO, along with the 10th Indian Cement Review Conference and the 8th Indian Cement Review Awards, is set to be even bigger and more impactful than the 2023 edition. With an expanded exhibition space, greater participation, and more in-depth discussions, the 2025 event will continue to drive the industry forward. This 3-in-1 event promises to be a pivotal moment in the ongoing transformation of the cement sector.

As the industry evolves, the 15th Cement EXPO 2025 will serve as a crucial platform for showcasing innovations, discussing emerging trends, and forging new partnerships to shape the future of cement and construction.

For more details:

Cement Expo Forum 2025: https://cementexpo.in/forum

15^th Cement Expo 2025: https://cementexpo.in/

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Email: sheetal@IndianCementReview.com

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Concrete

Construction sector growth slows to 8-10% for FY2025: ICRA

Published

3 weeks ago

January 15, 2025

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The revenue growth for construction companies in FY2025 is projected at 8-10 per cent, down from the earlier estimate of 12-15 per cent, according to ICRA. This marks the slowest growth in three years, driven by factors such as the Model Code of Conduct in Q1, prolonged monsoons, and milestone-based billing in Q2, particularly affecting road-focused players.
ICRA’s analysis of 19 companies with a combined turnover of Rs.1.28 trillion in FY2024 shows modest revenue growth of 1.5 per cent YoY in H1 FY2025. While execution is expected to improve in H2, FY2025 growth remains below the historical CAGR of ~15 per cent (FY2018-FY2024).
Order inflows in urban transport, water and sewage projects are healthy, but road-focused entities face challenges due to muted inflows and high competition. Operating margins are projected to remain range-bound at 10.5-11 per cent, with debt levels rising to manage working capital needs, though debt coverage metrics remain stable.

Concrete

SANY India expands Pune factory to boost production capacity

Published

3 weeks ago

January 15, 2025

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SANY India inaugurated a cutting-edge factory expansion at its 90-acre Pune facility, elevating its production capacity to over 14,000 units annually, alongside a robust fabrication capacity of 100,000 metric tonnes.

The advanced facility reinforces SANY’s commitment to ‘Make in India’ by enhancing localised manufacturing and supporting global exports. Chairman Xiang Wenbo highlighted the strategic importance of India as a global hub, while Vice Chairman Deepak Garg emphasised the expansion’s role in driving innovation and infrastructure development. This investment enhances efficiency, reduces timelines, and strengthens SANY’s leadership in the construction equipment sector.