Economy & Market

The State of the Cement Market

Published

9 years ago

February 28, 2018

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It is our job to monitor the cement market and to try to decode the signals emanating from the environment in order to project an outlook for consumption growth. Cement Industry always looks forward to a healthy growth of demand, which would enable the industry to grow, and at the end of the day, who doesn’t love a little bit of growth?
While talking about the market, in November (when we had statistics available till August 2017) we said ‘Overall, it does appear that real recovery will elude the sector in FY18, and that the next year holds out better prospects of a revival.
Already, some industry-watchers have revised growth estimates from 6-7 per cent to 3-4 per cent, for the current year, and this writer believes even this lesser growth would not be achieved’. We also added for good measure, that September to November were traditionally the best three months for cement industry, and even if a seasonal demand pull is seen during this period, to my mind, it will not prove anything regarding… a sustained turnaround. This then is the setting of the context of the current analysis in February, when we now have government’s official data till December 2017.
First, a little bit of overall business context. An important, data-driven report has been released recently by CARE, entitled ‘Investment Climate Feb 2018’ datelined 20 February, 2018. The report has painstakingly analysed indicators such as gross fixed capital formation in the economy, investment intentions in the country based on industrial investment proposals, growth in capital goods production based on indications from the IIP numbers, trade data signals on both the exports and imports front for capital goods/engineering, corporate debt market activity of public issues and private placements, and growth in bank credit across various components that point towards investment.
An example of the various data analysed in this report, is CMIE’s data on investments in projects. During this period the value of investments in new projects announced was less than half of last year. The value of projects completed (which would have commenced before 2017) was also lower at Rs 2.8 trillion (Rs 4.8 trillion last year). However, the projects dropped increased by 23 per cent while those revived were lower. On the other hand, growth of Gross Fixed Capital Formation in FY18 has now been pegged at 26.4 per cent against 27.1 per cent last year, and 34.3 per cent in FY12. Hence, the CARE report comes to the conclusion that overall investment climate does not appear to be positive so far this year, and reversal of these trends may take another couple of quarters.
We can now take a look at the cement numbers. Going by the government’s numbers, and post our scrutiny on the basis of Aug numbers, cement grew by 0.1 per cent in September, declined by (2.7) per cent in October, grew by a whopping 17 per cent in November, followed by another growth of 19 per cent in December, helped along by the low-base effect of demonetisation in the same months last year. Even with all this, the April-December period growth is 2.7 per cent, and we may be looking at a below 3 per cent growth for the year FY18. Feedbacks taken from cement dealers by a reputed broking house, has revealed that barring the eastern region, price increase efforts by the cement players have not sustained anywhere else, even though input prices and logistics costs are increasing. The dealers say that the concerns around sand availability, sluggish housing sector, weak real estate sector, etc., remain, and cloud the current outlook.
To quote from Mint, ‘Low base due to demonetisation helped cement sales volume growth to look better in December quarter, and increased infrastructure spending by the govt also helped, but it is a quarter or two early to call this a demand revival.’ In the absence of any marked improvements in capacity utilisations or prices, we must be careful not to celebrate too early.Sumit Banerjee
Chairman, Editorial Advisory Board

Concrete

Wonder Cement appoints Mahesh Singh as VP Corporate Brand Communication

Published

4 days 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

5 days 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.”

Concrete

UltraTech becomes first Indian cement firm to cross 2 GW green energy

Published

5 days ago

October 7, 2026

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UltraTech Cement has crossed 2 GW of captive green energy capacity, with renewables and waste heat recovery meeting 48 per cent of its power needs.

Mumbai

UltraTech Cement Limited has surpassed 2 GW of installed green energy capacity for captive use, becoming the first cement company in India to achieve the milestone. The Aditya Birla Group company commissioned 116.55 MW of wind capacity at its Inter-State Transmission System-connected wind-solar hybrid project in Barmer, Rajasthan, along with 10 MW of Waste Heat Recovery System capacity at Sarlanagar Cement Works in Karnataka.

With these additions, UltraTech’s cumulative installed green energy capacity has reached 2,024 MW. This includes 1,580 MW of renewable energy capacity and 444 MW of waste heat recovery capacity, together meeting around 48 per cent of the company’s current power requirements.

The company said the milestone reflects the progress of its long-term energy transition strategy. In FY27 so far, nearly one-third of UltraTech’s 76 manufacturing units in India have maintained green energy utilisation above 50 per cent of their electricity requirements, while five units have crossed 95 per cent.

K C Jhanwar, Managing Director, UltraTech Cement Limited, said, “Crossing the 2 GW green energy milestone is the result of a strategy we have pursued consistently over the past decade. Cement is an energy-intensive, hard-to-abate sector, and showing that reliability and growth can go hand in hand with a rapid shift to green energy sets a benchmark for the industry. With nearly half of our power needs now met through green energy, we are significantly less exposed to fossil fuel supply constraints and power price volatility. As we scale up renewables, waste heat recovery and battery storage across our operations, we are building an energy foundation for stable, long-term growth.”

UltraTech commissioned 430 MW of green energy capacity in FY26 and continues to expand its renewable energy and waste heat recovery portfolio.

The company is also progressively integrating Battery Energy Storage Systems across its operations to improve renewable energy utilisation and supply reliability.

In 2025, UltraTech operationalised what it described as India’s first on-site hybrid round-the-clock renewable energy project at Sewagram Cement Works in Gujarat. The project combines solar, wind and battery storage.

As part of its decarbonisation strategy, UltraTech said it has not invested in new captive thermal power capacity for either greenfield projects or brownfield expansions at its integrated units for more than a decade.

The company said its expanding green energy portfolio is helping reduce dependence on conventional grid electricity and fossil fuel-based power, while lowering exposure to fluctuations in coal and electricity prices.

UltraTech aims to increase green energy’s share in its total power mix to 85 per cent by 2030. As a member of RE100, it has also committed to meeting 100 per cent of its electricity requirement through renewable sources by 2050.

UltraTech Cement, the cement flagship of the Aditya Birla Group, has a total grey cement capacity of 210.1 MTPA and white cement and putty capacity of 3.5 MTPA. The company is also a signatory to the GCCA Climate Ambition 2050 and has committed to the GCCA Net Zero Concrete roadmap.