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“Green shoots seen in housing segment last fiscal”

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Binod Kumar Modi,
Senior Analyst, Reliance Securities

How do you see the three segments of cement demand – residential, infrastructure and industrial construction – are set to boost/impact cement demand this year?
Residential: Green shoots in IHB (Independent House Building) segment were witnessed in the last fiscal. Further, revival in rural economy is also aiding demand growth. We believe residential, which forms a significant proportion of total cement consumption, is likely to remain the major demand driver in subsequent years. Further, government’s incentivised housing projects are likely to ensure sustained demand from residential segment.Infrastructure: The segment forms approximately 25-30 per cent of total cement consumption in India. We believe infrastructure share in total consumption is likely to move higher going forward. Growing urbanisation and huge infrastructure deficit in the country – which requires infrastructure development as to support sustained GDP growth – are likely to ensure higher cement consumption in this segment.Industrial construction: It forms around 5-8 per cent of total cement consumption. Likely revival in private capex is expected to drive higher consumption from this segment.Housing is by far the biggest contributor to cement demand. Do you see any major recovery on the sector during the reminder of the year with the government’s thrust to ‘Housing for All’ scheme?
As we mentioned earlier, there is a visible revival in rural economy as evidenced from robust volume growth by FMCG companies, two-wheelers and tractor volumes with back-to-back normal monsoon. Therefore, considering the fact that rural accounts for >50 per cent of total cement consumption in housing, we believe rural segment should continue to drive cement consumption. Further, post RERA’s initial disruption in urban real estate market, urban real estate markets too will witness traction hereon. Moreover, PMAY is expected to witness healthy momentum in FY19, which is expected to aid demand growth.Pre-poll year is considered to be an infrastructure year. What are the infrastructure areas that may get boost going by last Budget?
Pre election spending has been one of the key demand drivers historically in India. Considering three assembly elections in FY19 and general election in 2019, these are expected to ensure healthy consumption from infrastructure segment. We further expect traction in road construction to continue in FY19 considering 7,400 km (up 70 per cent YoY) projects awarded in FY18. Additionally, Bharatmala programme – which targets to build approximately 34,800 km by 2022 in Phase I, with an estimated investment of Rs 5.3 trillion – is likely to aid sustained demand growth for cement industry.What is the demand growth do you foresee for the year in the geographies of your operations and what are triggers?
We believe all regions should do well going forward as demand momentum has picked up in most of the pockets barring few. Resolution of sand issues in Uttar Pradesh and visible ease of sand availability in Tamil Nadu markets (these two states together consume 45-50 MT annually) are likely to support demand in FY19. We believe that Eastern region (registered double digit demand growth in FY18) continues to be attractive for cement consumption going forward as the region is still underdeveloped compared to other regions.How the consolidation underway in the industry, and expansions coming on stream, are set to impact capacity utilisation during the year?
Consolidation is imperative for Indian cement industry as it is still fragmented. With the ongoing consolidation happening by way of Binani, Century and Murali, no sizeable consolidation appears in sight as of now. However, considering the ongoing high cost scenario and muted realisation environment, it could be difficult for many small and mid-sized cement companies to operate in dismal profitability. Hence, industry consolidation will continue going forward. We foresee the industry to add new capacity of 40-45 MT in next three years as against incremental consumption of 65-70 MT during the same period, which clearly favours utilisation.Hope floats for cement industry. How do you see the growth prospects for the industry during the current year and in the next three years?
There has been a visible demand recovery in FY18 especially in the second half. Cement demand witnessed a growth of approximately 6-7 per cent in FY18 as against negative growth registered in the first half of the fiscal. A substantial recovery in rural demand especially from IHB segment along with sustained pickup in infrastructure development aided demand growth. We believe demand growth for current fiscal should remain healthy mainly to be supported by PMAY housing projects and continued thrust on infrastructure development. We foresee cement consumption to reach 350-360 MT in FY21 translating a CAGR of approximately 7.5 per cent through FY18-FY21E.What are the triggers/reasons for your views on the Industry’s growth prospects and how they are set to impact in your view?
Housing activities (approximately 60-65 per cent of total consumption) continue to remain the key drivers. The government is committed to accomplish its target of construction of 10 million houses under PMAY (Rural) in phase 1, which ends in FY19E. Latest data shows that government could achieve only 38 per cent of its target till FY18. We believe even if government manages to achieve 70 per cent of the balance target, there could be incremental cement consumption of approximately 20 MT in FY19. Further, traction in IHB segment, infrastructure development and pre-election spending are likely to drive cement demand.What are the changing dynamics of cost and profitability of the industry during the current year, from the present standpoint?
A persistent spike in petcoke and diesel prices remains a major headwind for the industry. Having surged by approximately 22-25 per cent in FY18, petcoke prices continued to move northwards till date in FY19. Industry’s power and fuel cost and freight cost together surged by approximately Rs 200-300 per tonne in last one year. We believe cement industry is unlikely to witness any meaningful reduction in fuel prices in FY19E. Hence, realisation improvement is the prime way to support profitability. Pricing scenario in FY18 was soft as all-India average realisation did not witness any improvement. However, there has been some improvement in realisation so far in this fiscal and we expect further price improvement post monsoon.

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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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