Economy & Market

Survival of new entrants is challenging

Published

9 years ago

September 30, 2017

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The business scenario of cement industry has attracted many corporates to invest in cement. However, [day-by-day] the situation is becoming difficult for these new entrants. ICR has captured some opinions.

In the last few years, many new corporates have entered the cement arena. Even the entities, which have no synergies with steel or power, are trying to get a foothold in the cement industry. The new entrants include diversified industrials as far apart as oilseeds, fast-moving consumer goods and shipyards.

For companies like JSW Steel Ltd, venturing into the cement sector and expanding capacities could be a strategic call, but what about the others? The Government’s thrust on infrastructure and allied activities along with schemes like "Housing for All" is anticipated to boost cement demand significantly and that seems to have attracted many players to jump on the bandwagon.

According to Elara Capital (India) Pvt Ltd, incremental demand from housing and infrastructure is expected to boost cement growth to 7-8 per cent in fiscal year 2018. Region-wise, south India will show the biggest rise in demand from infrastructure followed by north India, it added. However, what could make survival challenging for new entrants is the fact that demand revival has taken longer than expected and costs are escalating.

However the survival of some of these new entrants is becoming tough in the years ahead. Cement makers will have to incur additional cost on product promotion compared to the established players. Auctioning of limestone mines, funds spent on setting up new plants are some other factors which one will have to consider.

Earlier this month, Adani Cementation Ltd, JSW Cement Ltd and Shree Cement Ltd won bids for three limestone mines via an e-auction in Gujarat, thus fetching their State Government an enormous sum of Rs 16,201 crore, stated a media report. This is almost 2.5 times the revenue the State would have earned had it followed the traditional allotment process, the report added.

Meanwhile, cement prices across the country have seen a seasonal correction and are expected to remain under pressure given the slump in demand. In such a scenario, it will be certainly difficult for newer entrants into the industry to pass on increased costs to consumers, especially given that even established companies have not been able to do so.

To conclude, some new entrants may have deep pockets, but the delayed demand recovery coupled with surging costs means longer gestation, thus impacting business viability. This could lead to some more mergers and acquisitions.

Risk factor
In the last two years, 42 MTPA capacity has changed hands out of which 22 MTPA is in central India. Operating at low capacity utilizations could lead to lower earnings under current cost-realisation parameters, while aggressive market share gains could hamper pricing discipline. The Street is pricing in lower profitability and capacity utilisation parameters, while one may not get the benefit of both in a modest demand environment. After the aggressive capacity build-up over the last decade, cement companies appear to be taking a breather with only 11 companies looking to add close to 26 MTPA of cement capacity over the next few years. However, acquisition activity had increased substantially over the past two years, with continued capacity under utilisation forcing several players to put up capacities for sale It was highlighted that during FY2013-15, Ultratech had grown at a pace lower than the industry, to allow continued price discipline and improved realisations. In FY2016, when Ultratech grew at a pace faster than the industry, it came at the cost of weaker realisations for the industry. It was highlighted that the acquired capacities are large relative to the market that they cater to, and a more moderate capacity ramp-up may be in order, unless industry growth surprises meaningfully, to keep price competition in check.

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.”