Economy & Market

Cement capacity addition slows down

Published

9 years ago

June 30, 2017

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Due to the recent slowdown in demand and the abundance of supply faced by the cement industry, the capacity addition in the sector is expected to decelerate to 16 million tonne (mt) in the current fiscal year and reduce even further to 13 mt in the next FY. However, the sector will be osbserving an anticipated investment of Rs 7,000 to 8,000 crore over the next two years.

In the last financial year, the sector had seen a 24 mt capacity addition compared to 27 mt in 2014-15. During 2007-2012, however, the sector witnessed a capacity addition of 149 mtpa (mt per annum), compared to 109 mtpa during 2013-16. Industry approximation put current capacity utilisation in the country at 64 per cent, down from 73 per cent in 2012. Sabyasachi Majumder, Senior Vice President and Group Head, ICRA Ratings, said "Cement firms need to first achieve an optimal utilisation of 70-80 per cent, after which commissioning of new plants would be viable".

"Our analysis suggests that while capacity utili-sation in the south remains weak, capacity addition in the region would be strong over the next two years. Additionally, the east, which was reeling under severe pricing pressure till about three months ago, is also likely to witness supply influx," according to an analyst from Motilal Oswal.

Eyeing a 40 mtpa capacity within the next five years, Shree Cement is at the forefront with a 2 mtpa project in West Bengal as well as Odisha, a 2.8 mtpa brownfield project in Chattisgarh and another in Karnataka which is over 2 mtpa. Emami cement, the newest entry, will be adding 5.5 mtpa capacity in Chattisgarh with two other projects in West Bengal and Odisha. Ultratech Cement plans to set up a 3.5 mtpa plant in Dhar, Madhya Pradesh. Penna Cement, Sagar Cement, KCP Industries and other major players from the south will also likely come up with capacity additions as well. "Capacity additions in cement beyond FY 2018 are expected to slow down further, given the lack of quality limestone resources," says ICRA report.

According to ICRA, setbacks in infrastructure projects due to concerns relating to land acquisition, hindrance in securing the necessary approval and problems in achieving financial closure have led to the recent slowdown in cement demand. "Slowdown in the pace of fresh capacity additions is expected to support cement prices going forward," ICRA added.

According to Centrum Broking, the cement firms had anticipated the forthcoming demand during 2008-2010 based on which they had opted to up their production capacity.

"However, the demand didn’t grow as expected and thus capacity utilisations are on the lower side. Under the present circumstances, there is actually no need to go for greenfield projects," Centrum Broking further added.

Capacity addition was at its highest in 2011, when cement firms added about 45 mt of capacity. Although the predicted growth of the segment was 10 per cent, the growth rate has been steady at 5-7 per cent in the last few years. Centrum expects the growth to show a marginal increase and go up to 7-8 per cent in the coming fiscal year.

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.”