Concrete

Bad News in New Year

Published

9 years ago

December 31, 2016

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This December, we were privileged to organise the ICR Cement Expo and Cement Conference concurrently. The theme of the conference was ‘Infrastructure to drive cement demand’. When we planned the conference a few months back, and narrowed down on to the proposed theme, it seemed perfectly logical that the cement demand would look up in 2017, and it also looked certain that new upcoming infrastructure projects will help drive up cement demand, duly aided by the positive effects of a great monsoon on rural housing demand.

Little did we know that on 8th November, an upheaval will be triggered in the economy in general, and in all such sectors which substantially transact in cash, including cement, and all our expectations based on industry analysis, would be rudely belied.

The sudden shock of demonetisation adversely impacted the trade or retail component of cement off-take, because at the cement counters of retailers all over India, bags are purchased mostly in cash. However, different regions of the country were affected differently in the early days of demonetisation. For example, in the early days post 8th November, southern markets withstood the shock much better than the eastern or northern markets. This discrepancy was mostly caused by the difference in the extent to which the cement makers in the regions pushed cement into the distribution pipeline ignoring the drop in retail off-take.

But as time passed, let’s say in December, the southern markets are drying up as well. Overall, the drop in demand has varied widely from 20 per cent to 70 per cent in different regional markets of India, and insiders say that this trend will continue into January 2017. In spite of brave attempts of cement players, prices have started sliding down as well, and some analysts say that prices have corrected by Rs 15-30/bag across markets. As a result, the stocks of cement companies have already fallen by 15-30 per cent since that fateful November day.

As if this was not enough, the industry has been also hit by increasing fuel prices, which account for at least 40 per cent of its cost structure. Prices of pet coke, imported coal and diesel are going up. According to the data from S&P Global Platts, pet coke and imported coal prices rose between 30 and 37 per cent between July and December. The companies and plants which are located far away from domestic coalfields and/or depended more on pet coke as fuel, are going to be affected sharply. Together with the demand shocker and softening of retail prices, this cost push is going to come as a double whammy for a number of cement companies. Margins of cement companies will get squeezed to various degrees as a result of all this.

Coming back to the theme of our conference, it seems that the government’s infrastructure investments, both in the Central and state sectors, will be the only saviour of the cement industry in the next 12 months. Even so, the infra players and EPC contractors, being volume buyers, have quite a lot of negotiating leverage, and therefore, overall profitability of cement is going to take a hit in relation to retail markets.

End of the day, it does seem that everything has got postponed by a year. Let us now gear up to face a year of tribulations, and look forward to 2018 for recovery of the industry. We would like to underline the fact that the fundamental strengths of the cement industry continue to be enduring in the longer term.

Concrete

Niraj Cement JV Wins Railway and Metro Contracts

Two orders worth over Rs 1.64 billion boost infrastructure portfolio

Published

2 days ago

December 11, 2025

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Niraj Cement Structurals (JV) has secured two major contracts from the Northeast Frontier Railway (NF Railway) and the Mumbai Metropolitan Region Development Authority (MMRDA), strengthening its position in large-scale infrastructure development.

The first contract, valued at Rs 815.2 million, has been awarded by NF Railway. It involves the construction of multiple-span 12.20-metre PSC slab underpasses, a major bridge (No. 727), retaining and guide walls, embankments and one minor bridge along the proposed UP and Down line near Deepor Beel. The project covers Km 163/00 to 164/200 between Azara and Kamakhya stations and forms part of the New Bongaigaon–Goalpara Town–Kamakhya (NBQ–GLPT–KYQ) railway doubling programme.

The second contract, worth Rs 826.6 million, has been awarded by MMRDA for constructing a foot overbridge (FOB) equipped with a travellator to improve connectivity between the SGMC monorail station and the Mahalaxmi metro and suburban railway stations.

The two projects underscore the company’s technical capabilities in both transportation infrastructure and environmentally sensitive construction, further strengthening its portfolio in key railway and urban mobility developments.

Concrete

Peddapalli MP Seeks Clear Timelines for Rs 42.10 Bn Projects

Peddapalli MP Gaddam Vamshi Krishna has urged the Union Government to specify execution timelines for major infrastructure projects worth Rs 42.10 billion in his constituency.

Published

2 days ago

December 11, 2025

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Peddapalli MP Gaddam Vamshi Krishna has called on the Centre to provide definitive timelines for a series of sanctioned infrastructure works that he said are essential for the region’s economic progress. Speaking in the Lok Sabha, he stressed that many approved projects remain stalled without clear implementation schedules, limiting their potential impact on connectivity and employment.

A key pending work is the Peddapalli–Manuguru Railway Line, a 137 km stretch linking Peddapalli with Manuguru in Bhadradri Kothagudem district. Although the line has received required approvals and special project status, the execution schedule has not yet been announced. The project is expected to support freight efficiency, improve coal logistics, and strengthen local job creation.

Extending his appeal beyond physical infrastructure, the MP urged the Centre to consider including Peddapalli in the India Semiconductor Mission, citing the district’s industrial ecosystem, skilled workforce, and readiness to support advanced manufacturing.

By pressing for structured timelines, Krishna emphasised the need for coordinated planning and timely execution to advance the constituency’s long-term development goals.

Concrete

IndiaAI, Gujarat Govt Host Regional Conclave Ahead of 2026 AI Summit

A regional pre-summit event in Gandhinagar recently gathered leaders to advance AI for good governance.

Published

2 days ago

December 11, 2025

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The IndiaAI Mission under the Ministry of Electronics and Information Technology, along with the Government of Gujarat and IIT Gandhinagar, convened a Regional Pre-Summit Event at Mahatma Mandir, Gandhinagar. The initiative is part of the build-up to the India–AI Impact Summit 2026, scheduled for 15–20 February 2026 at Bharat Mandapam, New Delhi.

The conclave brought together senior policymakers, technology leaders, researchers and industry practitioners to examine how AI can accelerate economic, digital and social transformation across sectors. The programme focused on the overarching theme of ‘AI for Good Governance: Empowering India’s Digital Future’.

The inaugural session featured key dignitaries including Bhupendrabhai Rajnikant Patel, Chief Minister of Gujarat; Harsh Rameshbhai Sanghavi, Deputy Chief Minister of Gujarat; Arjunbhai Devabhai Modhwadia, Minister for Science & Technology, Government of Gujarat; Manoj Kumar Das, Chief Secretary, Government of Gujarat; Abhishek Singh, Additional Secretary, MeitY and Director General, NIC; and Ponugumatla Bharathi, Secretary, Department of Science & Technology, Government of Gujarat.

High-impact keynote sessions led by national and global experts from MeitY, Bhashini, Google Cloud, Microsoft, IBM Research, NVIDIA, Oracle and AWS examined themes including AI in governance, public service delivery, urban development, rural transformation, healthcare, agriculture, fintech and multilingual accessibility enabled through Bhashini.
Delegates also visited an Experience Zone curated by IndiaAI and DST Gujarat, which showcased AI solutions across governance, agriculture, health and industry.

By convening government, industry and academic stakeholders, the conclave aimed to strengthen India’s AI ecosystem through frameworks that prioritise trust, scalability and public interest. Insights generated from the event will contribute directly to the agenda and outcomes of the India–AI Impact Summit 2026.