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A Mixed Bag

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Out of all the cement companies that have declared their results, Vaibhav Agarwal of PhillipCapital takes a closer look at the numbers declared by market heavyweights ACC Ltd and Dalmia Bharat.

ACC Ltd
Unfortunately, competition is far ahead!

  • ACC’s Q4 numbers are better than our estimates on the EBITDA front by 23 per cent, but lower than consensus by 10 per cent. We were the lowest on the Street for ACC.
  • The key surprise has come in from better than expected realisations (+3 per cent versus our expectations) for ACC. Operating cost increased by 4 per cent y-o-y; 3 per cent q-o-q. We had questioned ACC’s ability to maintain cost structure at Q1 levels in our earlier notes (in Q1;16 ACC delivered an excellent cost matrix and disappointments began Q2 onwards). The Q4 numbers, ACC lacks the cost advantage versus its peers.
  • Volume growth remains exactly in line with our expectation at -9.2 per cent y-o-y; +7.5 per cent q-o-q. EBITDA/tonne is reported at Rs 354 (-1 per cent y-o-y; -20 per cent q-o-q).
  • ACC continues to remain the worst amongst lot. Since the consolidation of ACC with Ambuja is complete, we expect some synergy benefits to flow in now.
  • The Board has recommended a final dividend of Rs 6/share (including interim dividend – dividend for CY16 stands at Rs 17/share).
  • Our price target, Rs 1,430 for ACC with a sell rating.

Key highlights
ACC has once again disappointed due to absence of volume growth and lower-than-expected operating efficiency. Consolidation with Ambuja may help ACC to improve cost efficiencies.
The only rerating trigger will be a sustained recovery in cement prices.

Outlook and valuation
We upgrade to ‘Neutral’ as our earlier price target with a ‘Sell’ rating is now met. ACC desperately needs to focus on cost efficiencies. Competition is far ahead on the operating front; hence, we don’t see ACC matching peer valuations in the near to medium term. At our target of Rs 1,580, ACC trades at $135/tonne (nearly at par with replacement) which is fair, especially given that it is much lower on the efficiency curve.

Dalmia Bharat (DBEL IN)

  • The positive surprise continues despite demonetisation
  • Dalmia Bharat once again beats our/consensus estimates by 5 per cent/4 per cent on the operating front. These results continue to prove that the impact of demonetisation was minimal on the cement industry.
  • Volumes grew by 20 per cent y-o-y; 4 per cent q-o-q as against our expectation of 16 per cent y-o-y growth. EBITDA at Rs 4.21 billion beats all estimates. EBITDA/tonne at Rs 1,183 is ahead of our expectation by 1 per cent.
  • Cost controls continue to remain excellent.
  • We reiterate Dalmia Bharat amongst our high conviction mid-cap picks and with price target of Rs 2,500 (+30 per cent).

Key highlights
It continues to maintain a robust trajectory and we see no material risk to our estimates. The focus remains on operating leverage with capacity utilisation. Earnings upgrades cannot be ruled out as and when we see cement prices recovering especially in East/ Northeast India.

Outlook and valuation
We reiterate DBEL as our high conviction pick and maintain our price target at Rs 2,500 with potential for upgrades. DBEL will trade at ~ $185/tonne, bridging its valuation gap with comparable and most efficient cement majors. We see no reason for a discount given that DBEL’s operating efficiencies match or are ahead of others.

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Concrete

Fuller Institute Launches Major Training Programme

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The initiative marks a significant step toward building a skilled workforce to support operational excellence and sustainability in the cement sector.

FLSmidth Cement is now known as Fuller technologies. Fuller Institute, which provides tailored and standard technical training to customers around the world, has announced a new partnership with India’s second largest cement manufacturer, Adani Cement. The new agreement, which launched in July 2025, will see 450 graduate and diploma engineers across nine groups receive technical training in cement plant operations, maintenance and quality control.

Skills training supports sustainability goals
Skills development is critical to the success of cement operations, which are facing a global skills shortage as veteran workers retire, and fewer young people pursue careers in the cement industry. Even though plant processes are becoming increasingly automated, skilled personnel are essential to ensuring reliability, availability and efficiency – all of which have an important role to play in cement’s low-carbon future. Training, particularly from experienced field engineers offering hands-on learning experiences, gives new engineers the opportunity to develop their understanding of core processes, connect ideas and improve engagement, increasing the likelihood that they will stay in the industry long-term.

In-person and online opportunities
The Fuller Institute runs in-person and online training courses for cement plants around the world. Some of these are carried out in partnership with major cement players, such as Adani Cement, but individual plants can also call on Fuller Institute services to upskill employees. The online certification, CementPro, takes cement plant employees through tailored process, mechanical and automation themed modules to increase skills levels at cement plants and raise productivity, efficiency and quality standards.

One session down, more to go
Adani Cement began their sessions with a 6-day mechanical maintenance course at ACC Wadi, where 96 engineers got hands-on training from our most experienced engineers, with decades of cement plant experience between them. Feedback from both Adani Cement’s leadership team and from the young engineers who took part in the training has been overwhelmingly positive, praising the ‘depth of knowledge shared’ and the ‘enriching’, ‘insightful and engaging’ training. The partnership will continue with further sessions in Q4 2025 and beyond. Long-term programmes like this have proven impact on cement plants’ KPIs. This level of investment in skills training is both an indicator of Adani Cement’s faith in the Fuller Institute and their commitment to their teams’ professional development.

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Economy & Market

Fornnax launches world’s biggest secondary/fine shredder for AFR pre-processing

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Fornnax has introduced its latest breakthrough – the R-MAX3300, for handling low-density waste streams, offering a powerful solution for cement AFR plants.

Fornnax Technology has launched its latest breakthrough – the R-MAX3300, the biggest secondary shredder in its class. The unveiling took place on 14th October, 2025 at IFAT India 2025 in Mumbai, one of the most prestigious events for environmental technologies, waste management, and sustainable resource innovation.

The launch ceremony was graced by esteemed industry leaders and dignitaries. The guest list included Md Fahim Sopariwala, CEO, GEPIL India; Sridhar Jagannathan, Vice President, Zigma Global; Priyesh Bhatti, CEO, GEPIL India; Shailendra Singh, Deputy General Manager, Prism Johnson (Cement Division); Ulhas Parlikar, Global Consultant, Waste Management, Circular Economy, Policy Advocacy and Co-processing; Saurabh Palsania, Joint President (Strategic Sourcing), Shree Cement; Rajeev Patel, DGM (Process), Mangalam Cement; and Anumodan Kumar Dubey, Mangalam Cement.

This state-of-the-art equipment represents a significant advancement for India’s recycling and waste processing landscape, offering a powerful solution for cement AFR plants and waste-to-energy facilities.

Building on the proven performance and legacy of the R Series secondary shredder, which has long been trusted for high-density materials like tyres and cables, the newly introduced R-MAX3300 is specifically engineered for handling low-density waste streams. These include Municipal Solid Waste (MSW), Commercial and Industrial (C&I) waste, Bulky waste, Legacy waste, Wood waste, and Construction & Demolition (C&D) waste.

By incorporating advanced shredding technology, the R-MAX3300 enables seamless and highly efficient production of Refuse Derived Fuel (RDF) and Solid Recovered Fuel (SRF) within the ideal particle size range of 30 to 50 mm. Its design prioritises versatility, durability and superior performance, directly supporting industrial operations that demand consistency and scale.

“The R-MAX3300 represents a monumental leap forward in our vision to become a global leader by 2030 in recycling technology through innovation,” said Jignesh Kundaria, Director and CEO, Fornnax Technology. “With the rising challenges of waste management in India and globally, this machine is not just a product; it’s a powerful tool for change. We engineered it to handle the most difficult waste streams with unparalleled efficiency, turning what was once considered unusable waste into a valuable resource. It directly addresses the urgent demand for effective, large-scale shredding technology that can support cement kilns and waste-to-energy facilities in achieving the desired output,” he added.

The launch of the R-MAX3300 arrives at a pivotal moment. India currently generates over 160,000 tons of municipal solid waste daily, while government-led initiatives such as Swachh Bharat Mission and Smart Cities are accelerating the demand for RDF and waste-to-energy solutions. Simultaneously, the global industrial shredder market is expected to grow at a 5–6 per cent CAGR, driven by stricter recycling regulations and increasing waste generation.

Kundaria further emphasised, “Our commitment goes beyond just selling machinery; it’s about empowering our customers to achieve lasting efficiency, sustainability, and growth. We see ourselves as a trusted partner who stands beside them at every step – from technology deployment to ongoing support, ensuring they can rely on Fornnax not only for performance but also for consistency, dependability, and long-term value.”

The R-MAX3300 is equipped to handle high-throughput processing of pre-shredded or coarse materials, making it ideal for SRF/RDF production, composting pre-treatment, and volume reduction for logistics optimisation. It is expected to play a crucial role in Integrated Waste Management Projects (IWMP) and bio-mining operations both within India and globally.

With this grand launch, Fornnax continues to set global benchmark and move decisively towards the vision of becoming global leader in recycling technology by 2030 that is state-of-the-art, innovative, economical, efficient reliable and eco-friendly.

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Concrete

Fornnax wins Top Domestic Sales Award 2024-25 by AIRIA

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Fornnax bags the Excellence in Top Domestic Sales Award 2024–25 by the All India Rubber Industries Association (AIRIA).

The company has been honoured with the Excellence in Top Domestic Sales Award 2024–25 by the All India Rubber Industries Association (AIRIA) under the Rubber Machineries and Equipment category. The award recognises Fornnax’s exceptional market leadership, strong sales performance and continued commitment to sustainable innovation.

With over a decade of specialised expertise, Fornnax has emerged as a transformative force in India’s tyre recycling sector, commanding nearly 90 per cent of the domestic market while steadily expanding across Europe, Australia, the GCC, and other global regions.

Fornnax’s advanced recycling systems—comprising the SR-Series Primary Shredders, R-Series Secondary Shredders, and TR-Series Granulators—are engineered for durability, efficiency, and high-output performance. These technologies are widely deployed in end-of-life tyre (ELT) processing and other waste management applications, reinforcing Fornnax’s reputation as a trusted industry partner.

Expressing his gratitude, Jignesh Kundaria, Director & CEO, Fornnax, said, “We are incredibly proud to receive this recognition from AIRIA. This award validates the trust that our customers and partners have placed in us over the years. I would like to extend my heartfelt gratitude to all our clients and partners who have been an integral part of this journey and our continued success. At Fornnax, our goal has always been to empower the recycling industry with innovative, high-performance solutions that make sustainability both achievable and profitable.”

The award also underscores Fornnax’s pivotal role in promoting circular economy practices by enabling the conversion of end-of-life tyres and rubber waste into reusable raw materials. Through ongoing R&D, new product innovation, and a solutions-driven approach, the company continues to help industries worldwide adopt eco-conscious, scalable recycling models.

As India’s recycling landscape evolves to meet global sustainability benchmarks, Fornnax stands at the forefront with internationally certified technology, a proven track record, and a clear vision for environmentally responsible growth.

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