Economy & Market

A “Missed Opportunity to Spur The Growth”

Published

8 years ago

June 30, 2017

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From the day it had been conceived perhaps a decade back promoted as "One Nation, One Tax", GST has been controversial to say the least. Apart from the quite unusual fact that alternately, every political party has supported and opposed it by turns, the industry bodies in particular have over-hyped the importance of GST, with many of them and their members going to the extent of saying that implementation of GST will add a clear 2 per cent to the GDP growth rates, which, by the way, has already been added through other innovative means.

Mind you, GST is no rocket science, because not only that similar unified tax regimes have done well in other countries, but also that there is a huge amount of precedences and learnings already available as if as a "help-book" to guide us in formulating our GST framework and to ensure its success. But, as the D-Day draws nigh, we seem to be getting into a more and more mixed, uncertain and complex situation around GST implementation and its aftermath, all of which is no longer pure optimism, but some kind of skepticism. Instead of one or even two-third tax rates, we now have many, and we also seem to have added many many forms and returns and processes, all of which would negate the case for simplification. If we are lucky, we may even see a continuation of the ubiquitous inter-state checkpoints, which our truckers love to hate.

If one could summarise, GST was aimed at creating a common marketplace out of the States of India, integrate and simplify taxes of all kinds for goods and services, drastically reduce paperwork, increase transparency, curb corruption in tax administration – all of which expectations could be summed up in one strategic objective – improvement of ‘ease-of-doing business’. At the same time, there perhaps was another target in the mind of the policymakers, a more tactical one at that, which was to make sure that GST does not push up the prices of goods and services used by commoners, and be inflation neutral, if not inflation positive. So what do the cement sector players have to say about the impending imposition of GST, in the context of these two broad objectives?

The Government has already gone to town announcing that cement, smartphones and medical devices will be cheaper under GST, which pre-supposes that by elimination, the Government itself is admitting that prices of all other products will remain static (theoretically possible, but practically, not) or will go up. Cement being one of the chosen few, one of the luckier items, so to say, the industry should be extremely happy under the circumstances. Apparently, and unfortunately that is not the case. The industry thinks that its net tax incidence will go up, and this thought is reflected in the various feedbacks that are coming through at this stage.

For example, IIFL has stated that tax incidence on cement industry will go up, and it goes on to quote an unnamed research agency to say that cement companies may go for a price hike to mitigate the increased GST rate and hence there won’t be any earnings impact. The Cement Manufacturers’ Association has lamented, "High GST on cement is a missed opportunity to spur growth." Clearly, there are contrasting and opposing viewpoints regarding GST vis-a-vis cement, and the jury is still out on what is the reality. There is but no doubt whatsoever, that the industry is desperately looking forward to some healthy growth in demand, even as it has declined by 3.7 per cent in April 2017.

However, in the interim, as we wait for clarity to emerge, the pitch has been queered by the unusual "Anti-Profiteering" clause inserted in the GST Bill, and the domestic as well as international business community will be watching very closely how this clause is interpreted and enforced, going forward.

Sumit Banerjee Chairman, Editorial Advisory Board

Concrete

15th Cement EXPO: A Step Forward in Cement Innovation

Published

2 weeks ago

January 17, 2025

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Mumbai

Following the immense success of the 14th Cement EXPO, held on December 14-15, 2023, at the Manekshaw Centre, New Delhi, the next edition of this premier event is set to take place in March 2025. The 15th Cement EXPO will be hosted at Yashobhoomi, Delhi, on 12th and 13th November 2025.

Meanwhile, the Cement Expo Forum 2025 is scheduled for 5th and 6th March 2025 at Taj Krishna in Hyderabad. This exciting 3-in-1 event, organised by FIRST Construction Council (FCC) and Indian Cement Review (ICR), will bring together industry leaders, innovators, and stakeholders to discuss the future of the cement sector.

Building on the Success of the 14th Cement EXPO

The 14th Cement EXPO was widely praised for its strong participation, attracting over 1,500 senior managers and decision-makers from across the cement industry. The event was inaugurated by Dr. Vibha Dhawan, Director General of TERI, and Ali Emir Adiguzel, Founder and Director of the World Cement Association, alongside Pratap Padode, Founder of FIRST Construction Council (FCC). The two-tiered exhibition space featured cutting-edge products and innovations from top companies within the cement industry’s supply chain.

The event also garnered significant support from key government bodies, including the Ministry of Road Transport and Highways, Government e-Marketplace (GeM), and the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, Government of India (GoI).

Recognition and Excellence in the Cement Industry

The 7th Indian Cement Review Awards celebrated excellence by presenting awards to 11 companies in various categories, recognising their contributions to growth and innovation within the industry. Notably, Parth Jindal, Managing Director of JSW Cement, was honoured with the prestigious Indian Cement Review – Person of the Year Award 2023. Meanwhile, Vinita Singhania, Vice Chairman and Managing Director of JK Lakshmi Cement Ltd, received the Lifetime Achievement Award for her outstanding leadership and contributions to the sector.

A Vision for Sustainability

With the theme of “Driving Sustainability Through Technology,” the 9th Indian Cement Review Conference hosted thought-provoking discussions and presentations, highlighting the industry’s commitment to adopting innovative, sustainable practices. The conference served as a platform for dialogue on the latest technological advancements aimed at transforming the cement sector, addressing key challenges, and fostering growth.

What to Expect from Cement EXPO 2025

The 15th Cement EXPO, along with the 10th Indian Cement Review Conference and the 8th Indian Cement Review Awards, is set to be even bigger and more impactful than the 2023 edition. With an expanded exhibition space, greater participation, and more in-depth discussions, the 2025 event will continue to drive the industry forward. This 3-in-1 event promises to be a pivotal moment in the ongoing transformation of the cement sector.

As the industry evolves, the 15th Cement EXPO 2025 will serve as a crucial platform for showcasing innovations, discussing emerging trends, and forging new partnerships to shape the future of cement and construction.

For more details:

Cement Expo Forum 2025: https://cementexpo.in/forum

15^th Cement Expo 2025: https://cementexpo.in/

FOR CONFERENCE SPONSORSHIPS

Sheetal Talreja

Mob: +91 842 2874 030

Email: sheetal@IndianCementReview.com

FOR EXHIBITION/SPONSORSHIPS

Sujoy Gomes

Mob: +91 865 7795 881

Email: Sujoy.g@ASAPPinfoGlobal.com

FOR SPONSORSHIPS

Ratan Rajbhar

Mob: +91 842 2874 021

Email: ratan.r@ASAPPinfoGlobal.com

Concrete

Construction sector growth slows to 8-10% for FY2025: ICRA

Published

3 weeks ago

January 15, 2025

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The revenue growth for construction companies in FY2025 is projected at 8-10 per cent, down from the earlier estimate of 12-15 per cent, according to ICRA. This marks the slowest growth in three years, driven by factors such as the Model Code of Conduct in Q1, prolonged monsoons, and milestone-based billing in Q2, particularly affecting road-focused players.
ICRA’s analysis of 19 companies with a combined turnover of Rs.1.28 trillion in FY2024 shows modest revenue growth of 1.5 per cent YoY in H1 FY2025. While execution is expected to improve in H2, FY2025 growth remains below the historical CAGR of ~15 per cent (FY2018-FY2024).
Order inflows in urban transport, water and sewage projects are healthy, but road-focused entities face challenges due to muted inflows and high competition. Operating margins are projected to remain range-bound at 10.5-11 per cent, with debt levels rising to manage working capital needs, though debt coverage metrics remain stable.

Concrete

SANY India expands Pune factory to boost production capacity

Published

3 weeks ago

January 15, 2025

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SANY India inaugurated a cutting-edge factory expansion at its 90-acre Pune facility, elevating its production capacity to over 14,000 units annually, alongside a robust fabrication capacity of 100,000 metric tonnes.

The advanced facility reinforces SANY’s commitment to ‘Make in India’ by enhancing localised manufacturing and supporting global exports. Chairman Xiang Wenbo highlighted the strategic importance of India as a global hub, while Vice Chairman Deepak Garg emphasised the expansion’s role in driving innovation and infrastructure development. This investment enhances efficiency, reduces timelines, and strengthens SANY’s leadership in the construction equipment sector.