Economy & Market

Cement, IIP and “Make in India”

Published

9 years ago

April 30, 2017

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The program called "Make in India" was intended to give a much-needed push to the manufacturing sector in India. The obvious objective was to grow the share of manufacturing in our GDP from a nondescript 15 per cent to a shining 25 per cent, which in turn would mean generation of new jobs by the millions – since manufacturing has been assumed to be labour-intensive, according to traditional wisdom – and no one can fault the relevance of the idea to our economy.

However, judging by the way the Index of Industrial Production (IIP) has moved in the last two years, this crucial program is yet to find its feet, leave alone delivering any noteworthy results on the ground. This could be because this good idea has neither been backed up by anywhere near an equally good strategy, nor by a good measure of execution. The challenging task is to translate such visionary concepts into well-coordinated policies and actions, which has not fructified yet.

To be credible, we must work with data, and there is no reason why we should not analyse this issue with reported numbers in public domain. During the so-called period of reforms in India from 1991 to 2014, the manufacturing sector did grow at a CAGR of about 7.5 per cent, if we took the average of IIP numbers and the Annual Survey of Industries. Even if we were to take the shorter and more recent period of 2005 to 2014, IIP throws up an average annual historical growth rate of 5.7 per cent. Contrast this with a dismal IIP growth of 3.5 per cent in FY15, 4.6 per cent in FY16 and a shocking 0.4 per cent in 11 months of FY17.

If one were to go by any kind of quantification and measurement of outcomes by data, the conclusion about success or otherwise, of "Make in India" will be very obvious. Add to this the facts that credit growth has stagnated, industrial capacity utilisations have fallen and merchandise exports have declined, and you have a clearer picture of what is happening with "Make in India".

How does cement figure in all this? Eight "Core" industries comprise nearly 38 per cent of the weightage of items included in the IIP. These are Coal, Crude Oil, Natural Gas, Petroleum Refinery Products, Fertilizers, Steel, Cement and Electricity. No wonder then, that some people say consumption of Steel, Cement and Electricity reflects the progress of a nation, although in today’s age of Internet and start-ups and artificial intelligence, this may sound too sedate and conventional.

While we do seem to know, that the steel cement and power sectors have not exactly covered themselves in glory during these "Make in India" years, let us take a look at the cement industry’s numbers.

There were days (and years) in the bygone past, when we used to have a strong correlation between GDP growth numbers and growth of cement consumption. In the post-decontrol era, from 1992 to 2012, cement demand has grown at a CAGR of 7.4 per cent as against a GDP growth CAGR of 7 per cent for the same period, showing a strong linkage between progress of the economy and consumption of cement, which is logical. Then came a new method of calculating GDP growth (which catapulted India to the exotic position of the fastest-growing country on Earth) and also came the launch of "Make in India" to give a boost to manufacturing, and this realistic and elegant relationship between growth of the economy and growth of cement got severed.

So, you now have an unusual situation during FY14 through FY17, when the GDP growth numbers per year were a very robust and healthy 7.3 per cent to 7.9 per cent, but cement consumption growth disappointed, with much lower growth figures of 4 per cent, 4.5 per cent and 1 per cent respectively.

Data can sometimes reveal the truth and sometimes hide it, depending on how we present it. But, to the best of my knowledge and belief, cement consumption growth figures, being based on absolute numbers, wouldn’t lie.

Sumit Banerjee Chairman, Editorial Advisory Board

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.”