Economy & Market

Revival is in the Offing

Published

6 years ago

May 31, 2018

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The demand growth trend picked up steam in FY18. Expectations are rife that FY19 will consolidate these gains and result in higher capacity utilisation, if not pricing power.
After a couple of years of demand pressures and price pressures, the Indian cement industry is expecting a full-fledged recovery in demand growth in the current fiscal. Cement production grew by 6.3 per cent and touched 298 million metric tonnes (MMT) in FY18 (2017-18), from 280 MMT in FY17, which is a 1.2 per cent fall compared to FY16. Apart from growth in demand seen in some key markets, rating agency ICRA has attributed this growth also to "the base effect of the demonetisation-driven low demand during the corresponding period of last year."
The demand for cement also dipped along with the deceleration in growth in the economy following currency demonetisation in November 2016, which derailed the growth momentum across several industries. Close on the heels of this debilitating disruption, hurried introduction of Goods and Services Tax (GST) has also left its negative trail. The growth reported in FY18 has come from the last two quarters of the year – at 11 per cent and 18 per cent respectively, despite negative growth registered in the first half of the fiscal. Analysts are considering this growth trend to be the first sign of sustained growth to be witnessed in the next few years.
Two-thirds of the total cement demand comes from housing and the remaining from infrastructure and industrial construction. "Two areas where we evidently see growth from for the cement industry is from housing and infrastructure. For the current year, we expect 5.5-6.5 per cent growth in cement production, says Ashish K Nainan, Research Analyst – Industry Research, CARE Ratings.
Is there any scope for increasing cement consumption in India? The answer is in the affirmative. Despite India being the second largest producer of cement in the world, even after two-and-a-half decades of globalisation, its per capita consumption is down in the dumps. "India is one of the lowest in per capita consumption of cement. Average consumption in India is just ~200 kg/year compared to 1700 kg/year in China and 660kg/year in Vietnam (comparable developing economy). The global average consumption is far ahead at 580kg/year," says Anoop Kumar Saxena, CEO-VICAT in India.
Calling FY18 as ‘a landmark year for the industry’ which has surpassed all odds and delivered reasonably good operating results, Vaibhav Agarwal, Analyst with PhillipCapital India Research, says, "FY19 will be a ‘year of pure execution’ driven by improving operating efficiencies, focus on a sustainable rise in volumes, and the industry re-establishing its attention on improving cement prices, led by UltraTech." Triggers
Sabyasachi Majumdar, Senior Vice President & Group Head, ICRA, who has hinted at the first signs of revival in cement demand as back as in February 2018 itself and predicted around 5 per cent growth in FY19, said then, "This demand growth is bolstered by a pick-up in the housing segment – primarily affordable housing, rural housing and higher infrastructure spend. Improved rural incomes, higher rural credit and increased allocation for rural, agricultural and allied sector are likely to boost rural housing demand."
"Further, Pradhan Mantri Awas Yojana (PMAY) continues to be a major driver for cement demand with around 50 lakh houses targeted in the rural areas and 37 lakh houses in the urban areas in FY2019. Also, the demand is likely to be supported by the higher outlay on urban housing and the increased thrust on infrastructure as reflected in 21 per cent higher allocation," Majumdar added.
Despite several micro and macro challenges, such as demonetisation, GST, RERA, bans on overloading, sand mining, and petcoke, many of which were structural, the industry has seen a visible demand recovery in FY18, especially in the second half.
"A substantial recovery in rural demand especially from Individual House builder (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," says Binod Kumar Modi – Senior Analyst – Reliance Securities.
Real estate sector witnessed disruption in construction and sales activity beginning demonetization exercise. The disruption continued with builders taking a cautious approach to RERA [The Real Estate (Regulation and Development) Act, 2016] implementation, temporarily halting new sales or construction. Implementation of RERA in May 2017 impacted the demand for cement from real estate segment in Q1 and Q2 of FY18.
FY18 witnessed implementation of Union Government backed mega-infrastructure projects such as Bharatmala for roads, Sagarmala for ports and development of dedicated freight corridors and smart city project.
"We feel the current focus from the Government is positive for the cement sector in particular. Infrastructure offers a huge tapable market for cement in India, but is limited due to limited funding for these projects at the moment. On the other hand, housing in rural and urban markets are expected to witness steady demand on the back of higher disposable income and factors like good monsoons," says Nainan.
The demonetisation exercise had impacted the demand from rural and retail real estate segment during the second half of Q3 and, Q4 in FY17. But the same has evidently recovered during FY18.
Demand drivers
VICAT India, having presence mostly in South India, expects that cement demand expected to grow ~7-8 per cent year-on-year (YoY) over the next two-three years. By now it is a given with several analysts predicting that the demand growth for cement during FY19 will surpass 5 per cent level.
Cement consumption is broadly classified into demand from three distinct segments:
Housing and real estate (65%)
Public infrastructure (20%)
Industrial development (15%)
All the analysts ICR spoke to are voting for affordable housing as the prime mover of cement demand in the coming years. Nainan of CARE says, "If one were to go by the bare-minimum market demand, affordable housing is a 8-10 billion sq.ft. opportunity. And this would form the backbone for cement demand over the next 2-3 years. Expect a 6-7 per cent growth in demand in the housing segment for cement.
Additionally, the Government has set aside Rs 6,500 crore for affordable housing in the budget which will work like a stimulus."
Stating that ICRA expects the cement demand to show a growth of around 6 per cent in FY2019, Majumdar says, "This is primarily driven by a pick-up in the affordable and rural housing segments and infrastructure – primarily road and irrigation projects. The budget of FY2019 also provides support in this direction with higher rural credit, increased MSP, increased allocation for rural, agricultural and allied sectors along with continued focus on the PMAY and infrastructure investments."
Table 1. Affordable Housing – Gross Budgetary support)
2017-18 2018-19
PMAY-Grameen Rs. 23,000 Rs. 21,000
PMAY-Urban Rs. 6,043 Rs. 6,500
"The cement consumption stood at an estimated volume of 305 million tonnes (MT) in FY18, and is expected to grow at 6-7 per cent over the next 3-5 years, on the back of higher government spending in rural and urban housing projects and growth in infrastructure spends," says Madhumita Basu, Chief of Sales, Marketing & Innovation, Nuvoco.
In the residential real estate segment, the demand was subdued in comparison to previous year due to introduction of RERA in May 2017. RERA led to disruption in construction activity and real estate developers went slow on launching new projects in Q1 and Q2 FY18. However, this dip in demand was offset by demand from construction of affordable housing.
BK Modi believes that infrastructure share in total cement consumption is likely to move up from ~25-30 per cent going forward, while explaining, "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."
Infrastructure projects like smart cities, metro projects, roads, ports and airport projects are expected to boost cement demand would witness higher growth of 8-10 per cent from this segment. "Infrastructure development has been a key plank for the current Central Government and few key projects are nearing completion especially in the view of a nearing General Election," says Nainan.
Infrastructure contributed immensely to the cement demand in FY2018. And pre-election spending has been one of the key demand drivers for cement historically in India, particularly from infrastructure segment. It can be sensed from the favourable budget allocations on Metros, road and highways, railways, ports and irrigation projects. "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," says BK Modi. Capacity additions
In their zeal to gain market share, aggressive manufacturers added robust capacity, leading to capacity utilisations collapsing from peak full capacity in 2008 to less than 70 per cent. However, expansions helped many manufacturers gain scale and size. "From here, we expect the industry to consolidate its position and then announce green field capex. Brownfield expansions and revival of unproductive assets will drive capex from FY19 to FY21," says Agarwal of PhillipCapital.
Madhya Pradesh, Rajasthan, Andhra Pradesh, Gujarat, Chhattisgarh, Tamil Nadu and Karnataka are the largest limestone producing states in the country which is an essential raw material for cement. "Currently, cement production capacity is 441 MMT and expected to increase to 467.3 MMT by 2019 and likely to further increase to 484.1 MMT by 2020-2021. Significant concentration of the cement capacities will continue to increase in southern and western regions, largely due to bulk of limestone reserves in these regions," says Saxena of VICAT.
However, capacity utilisation is expected to remain in the range of 65-70 per cent in the next two-three years, analysts say.Consolidation
Acquiring cement assets is cost-effective for the acquirer and provides access to new market and a ready-made supplier network. Cement industry is fragmented and 55-60 per cent market share is controlled by large players and consolidation in cement sector has not significantly changed the share of large players.
Agarwal feels that incremental consolidation will be slow. However, BK Modi is of the view that 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."
Nuvoco’s Basu thinks that with the major players adding capacity; the prices will come under pressure as ramping up of new capacity and capturing market growth would take priority. Looking ahead
The demand for cement will continue to grow at above 5 per cent level in the next two-three years, mainly with push coming from affordable housing projects in both urban and rural areas. The next one year is expected to be good for cement demand from infrastructure segment, being a pre-poll year. Industrial consumption of cement has been muted since November 2016 and it is unlikely to get a leg up.
The hectic consolidation activity is expected to slow down a bit going ahead, but the scene is expected to shift to smaller and newer players, with costs inching up day by day and continuing pricing pressures. Though operating environment of the industry has improved in FY18, the same cannot be said about FY19 given rising costs, unless demand spikes.
Availability of sand is a major challenge to the construction activity in India. Though artificial sand is being pitched as an alternative, its acceptability is still low.
Cement capacities, expansions and prices will be driven by regional considerations more than anything else. CARE ratings predicts that the all-India prices will remain in the range of Rs 317 (+/- 5 per cent per bag post GST) during the year."
From the present stand point, the industry has to guard against risks like hindrance to volume growth momentum and rising costs.– BS SRINIVASALU REDDY

Concrete

Lohia Corp Expands Global Footprint With Acquisitionof J.j. Jenkins Inc and Strategic Joint Venture With Omgm

Published

1 month ago

October 22, 2024

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Lohia Corp Limited (LCL) is pleased to announce two significant milestones that mark our
expansion in the global market.

We have successfully acquired J.J. Jenkins Inc. a respected name in machine manufacturing for
high-tech industries, through our US subsidiary, Leesona Corp, a 130-year-old pioneer in winding
machines. This acquisition aligns perfectly with our strategic vision to expand our specialty yarns
and tapes portfolio in medical and defence applications.

In addition, we have formed a strategic Joint Venture with Italy’s O.M.G.M. sas, leading to the
creation of OMGM Extrusiontechnik Srl. With LCL holding the majority stake. This JV represents
a significant diversification of our product portfolio, introducing solutions in Extrusion and
Winding systems for a variety of technical applications.

These advancements are not just about growth; they’re about bringing cutting-edge solutions to
our customers and contributing to industries that make a difference. Stay tuned for more updates
as we continue to push the boundaries of technology and engineering excellence.

Mr. R K Lohia, Chairman & Managing Director of Lohia Corp Limited, expressed his enthusiasm
about the new ventures “Both these new partnerships are a pivotal move that will broaden our
product offerings and provide our customers with even more choices and will enhance our
presence in the North America and European market, at the same time strengthen our presence
in all other global markets.”

About Lohia Corp Limited
Lohia Corp Limited (LCL) stands as a testament to the power of innovation and commitment to
excellence. As the flagship company of the Lohia Group, LCL has established itself as a global
leader in providing comprehensive solutions for the raffia industry.

With an impressive installation base of over 2,250 extrusion lines and 95,000 Circular Looms
across more than 100 countries, LCL’s influence in the plastic woven fabric and bag sector is
unparalleled. The company’s dedication to quality and efficiency has resulted in an astounding
plastic processing capacity of 7.7 million metric tons per annum of PP & PE.

LCL’s products, ranging from packaging systems for solid bulk materials to roof underlays and
tarpaulins, are not just industrial applications; they are the building blocks of industries
worldwide.

The company’s commitment to sustainability and innovation is the driving force that makes it the
world’s largest producer of machines for the raffia sector. As we look to the future, LCL’s legacy
of excellence is more than just a benchmark; it is a continuous journey towards pushing the
boundaries of possibility.

About J. J. Jenkins, Inc
J. J. Jenkins Inc. is a very respected name based out of North Carolina, USA. They remain at the
forefront of the synthetic fiber and monofilament industries. Their unwavering commitment to
innovation, quality, and customer satisfaction has not only set industry standards but also
fostered enduring partnerships with Fortune 500 companies including some in the medical and
defence industries.

Their holistic approach, combining state-of-the-art technology with unparalleled after-sales
support, exemplifies their dedication to client success. With a vast inventory ensuring rapid
response times, J. J. Jenkins, Inc. is synonymous with reliability and efficiency.

About OMGM sas
Since 1965, OMGM sas is a distinguished Italian leader and has been at the forefront of the plastic
processing industry, pioneering in Monofilament Extrusion, straps, ropes and various other niche
applications. Their commitment to excellence is evident in their advanced technologies and
versatile extrusion lines, handling a variety of materials for diverse industries.

As we look ahead, it’s clear that OMGM Extrusiontechnik Srl will continue to lead and transform
the industry with their precision, innovation, and bespoke solutions. They are more than a
company; they are a trusted partner in progress.

Concrete

Adani acquires Orient Cement at INR 8,100 crore equity value

Published

1 month ago

October 22, 2024

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Acquisition adds 16.6 MTPA capacity (8.5 MTPA operational, 8.1 MTPA Ready to Execute).

Accelerates Ambuja’s journey to achieve 100+ MTPA operational capacity in FY 25

Provides 6 MTPA potential additional capacity in North India, leveraging OCL’s high quality limestone reserves in Rajasthan

EDITOR’S SYNOPSIS

Ambuja enters into a binding agreement to acquire 46.8% stake in Orient Cement Ltd (OCL). The acquisition helps to move towards target capacity of 140 MTPA by 2028.
OCL has an existing 5.6 MTPA clinker and 8.5 MTPA cement operational capacity, 95 MW CPP, 10 MW WHRS, 33 MW Renewable Energy spread across the states of Telangana, Karnataka and Maharashtra. It improves Adani Group’s market share pan-India by 2% in the cement industry.
OCL has secured a concession from Madhya Pradesh Power Generating Company Ltd (“MPPGCL”) to set up 2.0 MTPA Cement GU within the premises of Satpura Thermal Power Station in Sarni, MP.
OCL also has a large high quality limestone mining lease in Chittorgarh, Rajasthan, providing the potential to set up additional 6 MTPA capacity in North India.
The acquisition of OCL complements Ambuja’s existing cement footprint, reducing overall lead distances and logistics costs for the cement business and improving market share in our core markets.
Acquisition will be funded through internal accruals, Ambuja remains debt free.

Ahmedabad, 22 October 2024: Ambuja Cements, the cement and building material company of Adani Cement and part of the diversified Adani Group, today announced the signing of a binding agreement for the acquisition of Orient Cement Ltd (OCL) at an equity value of Rs. 8,100 crore. Ambuja will acquire 46.8% shares of OCL from its current promoters and certain public shareholders. The acquisition will be fully funded through internal accruals.

“This timed acquisition marks another significant step forward in Ambuja Cements’ accelerated growth journey, increasing cement capacity by ~30 MTPA within two years of Ambuja’s acquisition,” said Mr Karan Adani, Director of Ambuja Cements. “By acquiring OCL, Ambuja is poised to reach 100 MTPA cement capacity in FY 25. The acquisition will help to expand Adani Cement’s presence in core markets and improve its pan-India market share by 2%. OCL’s assets are highly efficient, equipped with railway sidings and well supported by captive power plants, renewable energy, WHRS and AFR facilities. OCL’s strategic locations, high-quality limestone reserves and requisite statutory approvals present an opportunity to increase cement capacity in the near term to 16.6 MTPA.”

Mr CK Birla, Chairman of Orient Cement and the CK Birla Group, said, “The CK Birla Group is continuously reallocating capital to sharpen its focus on consumer centric, technology driven and service-based businesses. I take pride in Orient Cement’s impressive track record of building premium brands and maintaining a leading market share in the geographies it operates in. We are confident that the Adani Group, with its strong focus on cement and infrastructure, is the ideal new owner to drive continued growth at Orient Cement for our people and stakeholders”.

Ms Amita Birla, Co-Chairman, CK Birla Group, added, “Orient Cement has a strong market presence, with sustainability initiatives, particularly in renewable energy, being a significant part of its DNA. I am convinced that Ambuja Cements is the right home for all our colleagues at Orient Cement, as well as our customers.”

OCL has 5.6 MTPA clinker capacity and 8.5 MTPA cement capacity along with statutory clearance to increase the clinker capacity by another 6.0 MTPA and cement capacity by another 8.1 MTPA. In addition, OCL also has a limestone mining lease in Chittorgarh for setting up an Integrated Unit (IU) with clinker of 4 MTPA and a split Grinding Unit (GU) of 6 MTPA in North India. OCL has also secured a concession from MPPGCL, Madhya Pradesh for setting up a Grinding Unit within the premises of Satpura Thermal Power Plant. Both these complement the Adani Group’s existing cement footprint. (Refer Annexure – 1 for OCL’s location wise cement capacity and other assets and Annexure – 2 for Adani Cement’s footprint post-acquisition of OCL.)

OCL has recently commissioned a WHRS in Chittapur IU and is in the final stage of commissioning 16 MW solar in Chittapur and 3.7 MW solar in Jalgaon. OCL’s efficient plants, highly motivated teams, strong balance sheet and well-distributed dealer network will be excellent additions to the Adani Group’s existing cement business. OCL’s existing dealers will move to Adani Cement’s market network, creating formidable synergies.

Ambuja plans to optimize OCL’s overall capacity utilization to enhance its cost and competitiveness and improve its operating performance while leveraging the synergies inherent in the existing cement business.

About Ambuja Cements Ltd (ACL)

Ambuja Cements Ltd is one of India’s leading cement companies and a member of the diversified Adani Group – the largest and fastest growing portfolio of diversified sustainable businesses. Ambuja, with its subsidiaries ACC Ltd, Penna Cement Industries Ltd and Sanghi Industries Ltd, has taken the Adani Group’s cement capacity to 88.9 MTPA, with 20 integrated cement manufacturing plants, 20 cement grinding units and 12 bulk terminals across the country. Ambuja has been recognized among ‘India’s Most Trusted Cement Brand’ by TRA Research in its Brand Trust Report, 2024 and among ‘Iconic Brands of India’ by The Economic Times. Ambuja has provided hassle-free, home-building solutions with its unique sustainable development projects and environment-friendly practices since it started operations. The company has many firsts to its credit – a captive port with six terminals that facilitates timely, cost-effective and cleaner shipments of bulk cement to its customers. Its innovative products like Ambuja Cement, Ambuja Plus, Ambuja Compocem and Ambuja Kawach are now listed in the GRIHA product catalogue. These products not only fulfil important customer needs but also help in significantly reducing their carbon footprints. Being a frontrunner in sustainable business practices, Ambuja Cements ranks among ‘India’s Top 50 companies contributing to inclusive growth’ by SKOCH and ‘India’s Top 50 Most Sustainable Companies’ Cross-Industry by BW Businessworld.

For further information on this release, please contact: roy.paul@adani.com

Annexure -1 | Existing Cement Assets of Orient Cement Limited

Plant	Clinker (MTPA)	Cement (MTPA)	CPP/WHRS/Solar	Railway Siding
Devapur IU, Telangana	3.5	3.5	CPP – 50 MW	Yes
Chittapur IU, Karnataka	2.1	3.0	CPP – 45 MW WHRS – 10 MW Solar – 16 MW*	Yes
Jalgaon GU, Maharashtra	–	2.0	Solar – 13.5 MW+ 3.7 MW*	Yes
Operational Capacity	5.6	8.5

* capacity is in commissioning stage

Annexure – 2 | Footprint of Adani Group – Cement business post OCL Acquisition

Economy & Market

Fornnax Announces a Major Launch With Sr Max Series: Sr-max2500 Primary Shredder a Revolutionary and Game-changer

Published

1 month ago

October 18, 2024

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Fornnax, a renowned shredding and recycling equipment provider with years of experience in designing and developing SR-Series dual shaft shredders, has unveiled its advanced level SR-MAX2500 shredder specially designed for the Municipal Solid Waste category.

The launch was held IFAT India 2024, a most prestigious event in the waste management industry, on October 16th, 2024, at the Bombay Exhibition Centre in Mumbai.

Fornnax’s successful track record of developing many proven machines for different types of tires, ferrous and non-ferrous metals, which are the most difficult applications has made them a pioneer in the shredding and recycling equipment manufacturing global market over the decade now. The design of the SR-Series machine, a legacy that has prevailed for over a decade, continues to be used in the design of SR-MAX series machines. The advanced SR-MAX2500 shredder features high capacity, modern engineering, and innovative technology.

The remarkable event was inaugurated by Mr Ulhas Parlikar, Ex-Director of Geocycle India; Mr Sanjay Shripatrao Katkar IAS (Municipal Commissioner and Administrator) MBMC; Mr Sharad Nanegaonkar Executive Engineer (Water Supply and Sewerage Department) MBMC; Mr Deepak Khambit (City Engineer) MBMC; Mr Jignesh Kundaria CEO & Director of Fornnax Technology Pvt. Ltd.;

Mr Manoj Kumar Sure, JK Cement Head AFR; Mr Manoj Kumar Modha, Director of Millennium Multi Trade Pvt. Ltd.

Jignesh Kundaria, CEO and Director of Fornnax, shared insights into their newly launched innovation, “With the SR-MAX2500, we’re poised to transform the waste management landscape in India and beyond. Our goal is to line up municipal waste recycling industries with a robust, efficient, and sustainable solution. Our commitment to sustainability and enhancing recycling process is a step forward towards achieving PM’s vision of a Net Zero emissions future by 2050.”

Revolutionizing Waste Reduction: The SR-MAX2500 Advantage We’re excited to introduce the Fornnax SR-MAX2500, a revolutionary primary shredder designed for efficient volume reduction of diverse materials. This high-capacity machine boasts advanced modern engineering and technology, featuring hydraulic motors driving each shaft for optimal power and torque. Its unique cutter design, replaceable cutting table, and shaft design make it an ideal solution for various applications.

Waste Management Reimagined! SR-MAX2500 Primary Applications Our primary focus for the SR-MAX2500 is serving large-scale municipal waste recyclers, cement plants, waste-to-energy plants, mechanical biological treatment facilities, materials recovery centres, construction and demolition recyclers, aluminium recyclers, and other applications requiring highcapacity machines and robust technology.

The SR-MAX2500’s Impressive ROI Streak The SR-MAX2500 offers several commercial benefits, including increased efficiency, reduced operational costs, and enhanced productivity as it is specially designed for the Indian market. Its robust design and advanced technology ensure minimal downtime, maximizing profitability for our customers. Additionally, our commitment to quality and reliability helps build long-term relationships with clients, fostering loyalty and repeat business.

Innovation Meets Efficiency: Why Choose the SR-MAX2500? Fornnax has carved out a distinctive niche in the highly competitive market and its relevance stems from a unique, tailored approach that addresses specific needs. Thus, the SR-MAX2500 shredder differentiates itself through its versatility, catering to a diverse array of waste management and user needs, specifically designed for Indian waste, which is highly contaminated compared to global waste. Additionally, our unwavering focus on innovation, quality, and customer-centricity sets us apart from competitors and establishes our position in the market.

Turning Trash into Treasure with MSW Waste As you see due to the rapid urbanization and over population, India is among the world’s top 10 countries generating municipal solid waste (MSW) and generates around 62 million tons of waste in a year. Therefore, it is extremely critical to prioritize recycling and conversion of MSW into RDF fuel. Cement industry, which uses a significant amount of coal. Cement industries substituting coal with RDF or alternate fuel to reduce the greenhouse gas emissions, conserve natural resources like coal and more and ultimately minimise the waste disposal issues.

Fornnax’s Exceptional Contribution to India’s Sustainability Goals India has made significant strides in waste management and recycling, and with continued investment, innovation, and policy support, there’s no doubt it can achieve its goals. Fornnax is committed to contributing to India’s sustainability and waste management journey through their advanced recycling solutions, supporting the country’s transition to a more circular and environmentally conscious economy.

Fornnax’s Unwavering Commitment to R&D and Innovative Solutions Fornnax stays updated with global advancements in recycling technology and sustainability practices through several key strategies, such as we invest heavily in research and development to ensure our equipment are at the forefront of technological innovation. Our team closely monitors industry trends, emerging technologies, and regulatory changes to identify potential opportunities for improvement. We also actively seek feedbacks from our valued clients to understand their evolving needs and challenges. This input helps us identify areas where we can boost our meet market demands.

Expanding Horizons: Fornnax’s Growth Plans for the Year Ahead The SR-MAX2500 launch is a strategic step towards expanding our market presence and strengthening our position as a leading shredder manufacturer around the globe.

Also, we are optimistic about the coming year, driven by the growing demand for sustainable waste management solutions and the increasing awareness of environmental issues. We are actively investing in equipment enhancement, engineering, and strengthening our partnerships to meet the evolving needs of our customers. Fornnax’s focus areas for the next year include expanding the manufacturing capacity to meet the rising demand and we already started working on it by acquiring 23-acre land parcel in Ahmedabad, Gujarat. The new site is expected to become operational by March 2025. Its focus will be on producing high-capacity machinery applicable in tyre, cable recycling, ewaste, metal processing and more.

About Fornnax FORNNAX is one of the world’s leading shredding and recycling equipment manufacturers, offering Primary shredders, Secondary shredders and Granulators for tyres, municipal solid waste, cables, e-waste, aluminium and many other industrial applications. Quick after-sales services that increase our customer’s uptime and productivity.

We are committed to shaping the landscape for sustainable recycling solutions in the future. Because we’re not just selling equipment, we’re building business. That’s what we believe. That’s who we are. Fornnax Equipment is built with the idea that the simple, most significant and heaviest is better. Our equipment is an evolution of advanced products designed for the challenges of the recycling world.

The global sales partner network makes us successful worldwide. Our corporate culture is based on our history of providing value to our customers’ success worldwide. This motivates our employees to work together, develop innovative products, and produce high-quality equipment.