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Historically, the drivers of cement volumes have been infrastructure, construction and real estate activities. Cement volume growth shows a varying correlation with each of these segments.

India Ratings and Research (Ind-Ra) has maintained a "stable" outlook on Indian cement manufacturers for FY18. Ind-Ra expects the operating profitability of cement manufacturers in FY18 to be around the FY16 and estimated FY17 levels, due to stable demand growth, despite an increase in input cost. Demand will be backed by an increase in government expenditure. Ind-Ra also expects the credit profile of cement manufacturers to remain stable on stable operating profitability and in the absence of debt-led capex.

Stable Demand Growth
Ind-Ra has revised down its FY17 growth estimates to 3 per cent-3.5 per cent from 4 per cent-6 per cent, earlier. This revision is largely attributed to a blip in demand due to demonetisation. The rating agency, however, expects the cement industry to grow 4 per cent-5 per cent year-on-year (y-o-y) in FY18, driven largely by the demand stemming from infrastructure activities and a revival in housing demand in rural areas, both led by government spending.

Rising Cost Curve
The price of pet coke and coal has almost doubled since September 2016. The current increase in crude oil prices is also likely to lead to an increase in diesel prices. Ind-Ra expects stable cement demand to enable cement manufacturers to pass on increases in cost during FY18.

Budgetary Support
The rating agency believes that a 38 per cent and 23 per cent increase in the allocation of funds towards the housing sector under the Pradhan Mantri Awas Yojana and spending of the ministry of road transport and highways to Rs 290 billion and Rs 649 billion, respectively, would increase cement demand in FY18.

Limited Capacity Utilisation
According to Ind-Ra’s expectation, from FY16-18, there will be an additional capacity of around 50 mtpa capacity at a CAGR of 6 per cent, compared to the CAGR of 4.9 per cent during FY13-FY16 (additional 40 mtpa). The country’s eastern region will continue to lead supply growth and is likely to add 17 mtpa through FY16-18, followed by the north (14 mtpa). The CAGR capacity additions in the eastern (10 per cent) and northern regions (7 per cent) may outpace cement demand in these regions.

Pan-India capacity utilisation remained stable in FY16 at around 70 per cent. However, the rating agency has revised pan-India capacity utilisation for FY17 to 65 per cent from 69 per cent-70 per cent, due to the weak demand outlook in 2HFY17 on account of demonetisation. Importantly, the rating agency does not expect capacity utilisation to improve significantly in FY18 and expects it to remain around 70 per cent.

Credit Profile
The credit profile of cement manufacturers is likely to remain stable in FY17. The negative impact of a possible decline in operating profitability during 2HFY17 due to an increase in fuel cost and lower volumes will be compensated by the higher operating profitability reported by the companies during 1HFY17 due to lower fuel prices and higher demand. Median EBITDA margins for a sample of 17 cement companies improved to 15.37 per cent in 1HFY17 (FY16: 14.38 per cent, FY15: 15.07 per cent).

Positive Impact of GST
The current excise duty is 12.5 per cent and VAT is 12 per cent-15 per cent. Thus, the total tax paid or payable on cement by end-customers can range anywhere between 24.5 per cent-27.5 per cent. At a GST rate of 18 per cent, even if cement companies pass on 50 per cent of their savings by lowering cement prices, the agency believes that their margins would increase by 300-500 basis points. However, a change in cement prices would not be large enough to affect product demand.

Slow Demand Pick-up
Cement demand grew 2.8 per cent y-o-y during April-December 2016 (April-December 2015: 2.64 per cent, FY16: 4.8 per cent). It tanked 8.7 per cent y-o-y in December 2016; however, it increased 7.2 per cent month-on-month in December 2016. The rating agency expects the demand would be sluggish for the remaining part of FY17 due to demonetisation.

In the current fiscal year, urban housing demand has been affected by continued affordability issues and weak consumer sentiments. Urban housing in Tier-1 cities may improve with a reduction in interest rates. Rural demand was expected to improve during FY17; however, demonetisation has impacted the demand due to a cash crunch. Historically, the drivers of cement volume have been infrastructure, construction and real estate activities. Cement volume growth shows a varying correlation with each of these segments.

Bank credit growth has been used as an indicator of activities in these three segments. The moderately high correlation of close to 0.6 between cement volume growth and bank credit growth for the construction and commercial real estate sectors indicates that activities in these sectors are possibly the key drivers of cement volume growth. Ind-Ra expects construction gross value addition growth to improve to 4.1 per cent in FY18 from a likely 2.9 per cent in FY17 (FY16: 3.9 per cent). Historically, cement growth has been in line with the growth in construction gross value addition.

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Economy & Market

Leonard Unveils Dual-Head Robotic Arm for Hazardous Industrial Demolition

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 Leonard unveils Descender Duo, a dual-head robotic demolition arm designed to improve industrial safety and reduce shutdown time by up to 50 per cent.

Industrial robotics and refractory services specialist Leonard has launched Descender Duo, a dual-head robotic demolition arm designed to improve safety, accelerate maintenance and reduce shutdown times in hazardous industrial environments. The system made its debut at Lisahally Power Station in Northern Ireland, removing 25 tonnes of slag material within hours.

Developed for the cement, metals, waste-to-energy and petrochemical industries, Descender Duo enables remote-controlled refractory demolition, anchor cutting and welding, and refractory spraying inside boilers, calciners and silos. Its vertical-access design eliminates the need for personnel to enter confined, high-risk spaces during these operations.

Weighing less than two tonnes, the pre-assembled system requires an access opening of just 1.2 m². Supported by an external overhead hoist, it uses electrically operated hydraulic stabilising legs to secure itself inside vessels. The robotic arm offers 360-degree rotation and is suited to vessels approximately 9 m in diameter, with its operating reach extendable through strategically positioned access points.

Equipped with two independently controlled robotic heads, Descender Duo can perform identical or different tasks simultaneously, including refractory demolition, anchor cutting and spraying. Its remote-control system incorporates live camera feeds, allowing operators to monitor operations without entering hazardous environments.

According to Leonard, the technology can deliver time savings of up to 50 per cent compared with manual methods. Its ability to operate at temperatures exceeding 100°C allows maintenance to begin as early as 24 hours after burner shutdown. An all-electric power supply further supports cleaner and more cost-efficient operations.

First Deployment Demonstrates Shutdown Efficiency

The system was first deployed at Burmeister & Wain Scandinavian Contractor’s (BWSC) Lisahally Power Station in Londonderry, Northern Ireland. The facility generates electricity from grade C waste wood, supplying approximately 40,000 homes and businesses.

Leonard and BWSC collaborated to develop a customised solution for the plant’s 26-metre furnace, where extensive external pipework created significant access challenges.

Mark Leonard, Managing Director, Leonard, said, “It required new thinking and rather than step away from the problem we were committed to solving it for the customer, with the customer. We’re relentless in our approach to tackling complex challenges, head-on. We took our years of cement plant experience, coupled with our working knowledge of the BWSC plant, and designed, engineered and tested a completely new vertical solution within just seven weeks from that initial conversation with the customer. That solution was the Descender Duo as we know it today.”

Traditionally, the furnace required a cooling period of up to 36 hours before preparatory work could begin, followed by manual slag removal using rope-access personnel. With Descender Duo, work commenced just 24 hours after shutdown, reducing downtime by up to one day.

The deployment removed 25 tonnes of slag within hours, eliminated the need for at least six workers to enter the hazardous furnace interior and saved 26 hours in the shutdown programme.

“The effectiveness exceeded expectation,” said Martin Doran, Plant Manager at Lisahally Power Station.

“When the Descender Duo concept was first discussed, we had to spend some time with the team from Leonard looking at how it was going to be moved into the furnace. Every site is different and that presented its own challenges, but nothing that the team couldn’t overcome. Once it was installed we were hugely impressed by its efficiency.”

Expanding Industrial Robotics Applications

Descender Duo joins Leonard’s existing portfolio of robotic maintenance solutions, including the Axis horizontal-access arm, Nano confined-space access arm, Charger cement mill media recharging system and Calibre cement mill media grading system.

Headquartered in Northern Ireland, Leonard provides robotic refractory demolition, installation, inspection and industrial maintenance services across the cement, metals, energy, biomass, glass and civil engineering sectors.

Formerly known as G Leonard, the company has more than 35 years of industry experience and operates across Europe, North America, the Middle East, Africa and Asia-Pacific.

The latest innovation reinforces Leonard’s focus on replacing hazardous manual processes with robotic systems that improve workforce safety, enhance operational efficiency and minimise industrial downtime.

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Concrete

Martin Engineering Appoints Ashwini Khunte as India General Manager

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Martin Engineering names Ashwini Khunte India General Manager to strengthen operations and drive growth across key bulk material handling sectors.

Pune

Martin Engineering, a global provider of bulk material handling solutions, has appointed Ashwini Khunte as General Manager of its India business, strengthening its leadership as the company expands its presence across the country’s cement, mining, steel, power and infrastructure sectors.

Khunte brings more than a decade of experience with Martin Engineering, having joined its Indian operations in 2013 as a Design Engineer, shortly after the company established its presence in the country in 2012.

A mechanical engineer by qualification, she spent her initial five years developing bulk material handling solutions in collaboration with the company’s operations team. During this period, she gained extensive experience addressing operational challenges in the steel, cement and coal industries. She subsequently moved into project engineering, managing major engineering, procurement and construction (EPC) and original equipment manufacturer (OEM) projects from initial enquiry to commissioning. Her responsibilities later expanded to overseeing Martin Engineering’s conveyor product portfolio in India, involving customer engagement, technical presentations and site visits across heavy industries.

In 2024, Khunte was promoted to Head of Sales & Marketing for the company’s Europe, Middle East, Africa and India (EMEAI) region. The position broadened her international market exposure and strengthened her strategic and commercial leadership capabilities.

Commenting on her appointment, Ashwini Khunte, General Manager, Martin Engineering India, said: “India represents a tremendous opportunity for Martin Engineering. The country’s continued investment in cement, mining, steel, power and infrastructure is creating increasing demand for safer, cleaner and more productive bulk material handling, and that’s exactly what we do. My priority will be to build on the strong foundations already established in India, while continuing to develop our people, strengthen customer relationships and bring practical solutions to the challenges faced by our industry.”

Robert Whetstone, Area Vice President – EMEAI, Martin Engineering, highlighted Khunte’s technical expertise, market understanding and leadership experience.

“Ashwini brings an exceptional combination of technical understanding, customer knowledge and commercial leadership. She has grown as Martin Engineering has grown, and has consistently demonstrated outstanding capability to transform her expertise into practical solutions. Her knowledge of the Indian market, together with her international experience, makes her ideally suited to lead our India business through its next stage of growth for years to come.”

Since establishing its Indian business in 2012, Martin Engineering has expanded its local workforce, manufacturing capabilities and dealership network. The company supplies conveyor products, transfer point solutions, material flow aids, training and technical support to bulk material handling industries. Khunte’s appointment positions the company to further strengthen customer relationships and expand its solutions portfolio in India’s growing industrial and infrastructure markets.

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Concrete

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

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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

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