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Cement demand likely to pick up | Sharekhan

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Analyst firm Sharekhan believes that, barring the southern cement players (due to drought-like conditions in key southern states), cement demand is likely to improve on account of diminishing effects of demonetisation and an uptick in government spending on infrastructure development and housing projects. However, the key monitorables going ahead would be the guidance for the upcoming southwest monsoon season (which currently is below normal), and the sustainability of price hikes taken by cement companies during April 2017 (pan-India players have taken Rs 20 per bag month-on-month (m-o-m) hike, while Andhra Pradesh and Telangana cement companies are looking for Rs 50-60 per bag hike (m-o-m).

The firm says that cement stocks have largely factored in better earnings growth for FY2018 due to the impending improvement in the demand outlook and a sustained pricing discipline. However, the drought-like conditions prevailing in south India and a weak southwest monsoon can play spoilsport in FY2018. Consequently, Sharekhan remains selective at present and has a ‘Hold’ recommendation on cement stocks under its active coverage

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Concrete

CCU testbeds in Tamil Nadu

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Tamil Nadu is set to host one of India’s five national carbon capture and utilisation (CCU) testbeds, aimed at reducing CO2 emissions in the cement industry as part of the country’s 2070 net-zero goal, as per a news report. The facility will be based at UltraTech Cement’s Reddipalayam plant in Ariyalur, supported by IIT Madras and BITS Pilani. Backed by the Department of Science and Technology (DST), the project will pilot an oxygen-enriched kiln capable of capturing up to two tonnes of CO2 per day for conversion into concrete products. Additional testbeds are planned in Rajasthan, Odisha, and Andhra Pradesh, involving companies like JK Cement and Dalmia Cement. Union Minister Jitendra Singh confirmed that funding approvals are underway, with full implementation expected in 2025.

Image source:https://www.heavyequipmentguide.ca/

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Concrete

JSW Cement gears up for IPO

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JSW Cement has set the price range for its upcoming initial public offering(IPO) at US$1.58 to US$1.67 per share, aiming to raise approximately US$409 million. As reported in the news, around US$91 million from the proceeds will be directed towards partially financing a new integrated cement plant in Nagaur, Rajasthan. Additionally, the company plans to utilise US$59.2 million to repay or prepay existing debts. The remaining capital will be allocated for general corporate purposes.

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Concrete

Cement industry to gain from new infrastructure spending

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As per a news report, Karan Adani, ACC Chair, has said that he expects the cement industry to benefit from the an anticipated US$2.2tn in new public infrastructure spending between 2025 and 2030. In a statement he said that ACC has crossed the 100Mt/yr cement capacity milestone in April 2025, propelling the company to get closer to its ambitious 140Mt/yr target by the 2028 financial year. The company’s capacity corresponds to 15 per cent of an all-India installed capacity of 686Mt/yr.

Image source:https://cementplantsupplier.com/cement-manufacturing/emerging-trends-in-cement-manufacturing-technology/

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