Economy & Market

Cement market will stay volatile, says CLSA

Published

10 years ago

March 16, 2017

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Ratings agency CLSA says that it has identified mixed trends as per channel checks, but says that demonetisation still haunts the industry.
Private capex may languish, says CLSA, but the industry is quite hopeful on the government’s infra push. In particular, the industry is excited about affordable housing and most players have done their math on the potential upside from this. Cement prices are highly volatile but seem to be on an uptrend recently in all regions except south India where there is some correction. However, there are instances of increased trade discounts reversing some of the hikes.
Overall, CLSA sees 2017 as a volatile year for pricing and demand is unlikely to see a big uptick. Despite strong long-term opportunity, the agency sees no urgency to chase cement stocks and retains a negative view on the sector.
The report also says that demonetisation continues to haunt several regions.
* Channel checks indicate that demonetisation continues to haunt the industry as demand trends in several markets continue to be under pressure.
* There are still some dealers witnessing double-digit declines in volumes although others indicate that, sequentially, there is improvement.
* Feedback also indicates liquidity is still an issue that has been hampering cement consumption and creating challenges.
* The builder focus seems to be on completing existing projects, and new launches may take time, which further adds to concerns.
* There are high hopes on government spending, and some efforts are visible.
* In general, dealers (and players) are hopeful of a pick-up ahead as government-led infrastructure projects kick off.
* Hopes are running high on the government’s ‘Housing for all’ scheme with certain states (Telangana, for example) even making progress.
* Feedback is very strong for the Andhra Pradesh and Telangana markets where after over five years of challenges, cement demand is witnessing growth.
* Private capex, however, may time to revive and hence, the government’s role would be critical to drive growth in the industry.
Cement pricing is also showing mixed trends, says CLSA.
* Cement prices in north and central India, which corrected post demonetisation, are on a rise with levels almost back to around pre-demonetisation. Channels indicate that further price hikes are likely due to seasonality and producer discipline.
* The western India markets, particularly Gujarat, which saw severe pressures in the past six months, are also seeing stabilisation and, in fact, prices have risen 7-13 per cent.
However, prices have been quite volatile in these three regions with rounds of price hikes and reversals but in the last fortnight, pricing is on the uptrend.
Eastern India continues to suffer from a demand-supply imbalance as capacities that are still ramping up have been exerting pressures. While prices have been rising, there are instances of widening of discounts impacting effective cement prices, notwithstanding the uptrend.
After an almost stable trend for two years, south India too is seeing a declining trend with cement prices down nearly 7-8 per cent in the past three-four months.
CLSA remains negative on the sector, saying that 2017 will be a lacklustre year for the industry as demand is unlikely to see a pick up; prices will also remain volatile at a time when input costs are firming up.

Concrete

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

Published

5 days ago

October 19, 2026

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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

2 weeks 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

2 weeks 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.”