Economy & Market
Industries Shrugging Off Demonetisation Pangs: CARE
Published
8 years agoon
By
admin
The performance of 3,292 companies in Q1 FY19 over the last year (Q1 FY18) reveals an improvement, with net sales registering a double-digit growth during the quarter over Q1 FY18 performance. Also, after declining by 10.8 per cent y-o-y in Q1 FY18, net profits witnessed a double-digit growth of about 12.9 per cent year-on-year (y-o-y) in Q1 FY19. Net profit margin witnessed marginal contraction of about 30 basis points y-o-y during the quarter, says CARE Ratings in a recent report.
In Q1 FY19, after excluding the banks and finance companies which are guided by exogenous factors, the performance of industry (2,749 companies) depicts almost similar trend as that of the aggregate sample in terms of sales. However, in terms of profits, the aggregate performance of companies witnessed a sharp improvement and increased by 38 per cent y-o-y vis-a-vis a decline of 13.6 per cent registered in Q1 FY18, says the report, Corporate Performance for Q1-FY19, anchored by Madan Sabnavis, Chief Economist, CARE Ratings.
For the aggregate sample, net profit margin remained positive. While excluding banks and finance companies, the net profit margins improved by about 130 basis points in Q1 FY19. It has also been observed that some industries in the Indian economy have been picking momentum leaving behind the demonetisation and GST implementation impact that did impact industry performance between Q3 FY17 and Q2 FY18.
Small firms facing net loss
While the overall aggregate picture of the industry has improved post-GST (Goods and Services Tax) implementation, the smaller companies, i.e., companies below Rs 100 crore sales continue to be on the back foot. This size range with maximum number of companies has continued to register net loss in Q1 FY19. Also, of the total 1,857 companies with net sales below Rs 100 crore, 813 companies (about 45 per cent companies) have posted a y-o-y decline in net sales during Q1 FY19.
Of the 50 industries considered, majority of industries have witnessed positive growth in sales during Q1 FY19 except for nine industries. Out of these, with positive sales growth, 20 industries registered y-o-y higher growth vis-a-vis Q1 FY18. Some of the leading industries were auto – tractors, auto – trucks/LCVs, auto ancillary, metals – steel and iron products, aluminium and ferrous, private banks, housing finance, finance – NBFCs, refinery and oil exploration, fertilizers, industrial gases and fuels, etc.
In all, nine industries witnessed negative y-o-y growth in net sales of Q1 FY19 with significant declines. However, some industries such as glass, paints, textiles, plastics, ceramics, etc. are highly unorganised and therefore the performance will not necessarily be reflected in the analysis mentioned below. In order to gauge the performance of various industries, we have considered the index of industrial production (IIP) growth in Q1 FY19 for the comparable industries, CARE Ratings said. The following are the CARE Ratings’ comments on cement and related industries in the report:
Cement
Industry net sales witnessed a subdued growth during the Q1 FY19. However, as per the IIP, cement production increased by over 14 per cent during Q1 FY19. This growth in IIP could majorly be on account of inventory restocking by players. Rural markets have shown some traction in cement demand.
Central and Western market realisations have improved, eastern markets remained steady. Northern and Southern market continues to be volatile.
Going forward, increase in demand from retail housing (PMAY) and infrastructure is expected to improve realisation for the industry.
Steel & iron
The industry’s performance registered growth which was however lower than Q1 FY18 on sales front on a y-o-y basis backed. The growth in revenues was backed by strong underlying demand and rising international prices, domestic steel prices too went up during the quarter.
Manufacture of basic metals under IIP witnessed a growth of about 3.8 per cent during Q1 FY19.
The prices of HR coils, CR coils and TMT bars grew by 27-40 per cent on a y-o-y basis
Affordable housing is expected to provide big boost to the TMT steel sector. Also, there is a lot of consolidation taking place in the industry, which will benefit the players going forward.
Construction
Industry has witnessed only a marginal growth of 1.7 per cent in Q1 FY19 over a growth of 7.9 per cent in Q1 FY18 due to subdued construction activities in organised real estate during the quarter
Paints
Sales increased only marginally during the quarter on back of slower recovery in demand vis-a-vis last year season.
The quarter witnessed upward movement in crude along with lot of volatility in forex and depreciation in the rupee resulting in high inflation.
However, profits have registered a double-digit growth of about 24 per cent in Q1 FY19 vis-a-vis a decline of about 16 per cent in Q1 FY18.
Ceramics/marble/granite/sanitary ware
The industry witnessed slower off-take from user industry along with issues related to GST implementation (tax rate on tiles under GST increased to 28 per cent vis-a-vis 12-14.5 per cent rates earlier, this rate was revised to 18 per cent later)
The industry continues to anticipate a rise in demand for tiles, backed by the rising rural incomes. Lifestyle decisions in the rural segment is likely to have a positive affect the demand for floor tiles and sanitary ware. The only concern is the declining margins, which comes as a result of frequent revisions in GST rates on Ceramic products.
Some interesting takeaways
Growth in sales for the sample companies excluding banks and finance though marginally lower than that in FY18 comes as a surprise considering that Q1-FY18 was a period when GDP growth slowed down sharply. On a low growth base one would have expected growth to have been higher.
There was a sharp increase in growth in net profit. However, this came over a negative growth rate in FY18. When compared with Q1-FY17, growth is less sharp.
The same picture emerges for net profit margin, where the increase in Q1-FY19 over FY18 from 5.8 per cent to 7.1 per cent is still lower than 7.7 per cent in FY17.
The interest cover improved during this quarter which can be broadly attributed to higher profits growth.
Size wise analysis reveals that the larger companies with sales of over Rs 500 crore dominated the overall performance. However, the smaller ones with sales of less than Rs 100 crore each did not do well in terms of sales and profit.
Industry wise performance was quite diverse with no fixed pattern being discernible.
Y-o-Y decline in net sales in Q1 FY19
Sugar
Consumer durables – electronics
Electronics – components
Telecom equipment
Cement
Ceramics/marble/granite/sanitary -ware
Telecommunications – service providers
Mining and minerals
Diamond and jewellery
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SEEPEX introduces BN pumps with Smart Joint Access (SJA) to improve efficiency, reliability, and inspection speed in demanding rock blasting operations.
Designed for abrasive and chemical media, the solution supports precise dosing, reduced downtime, and enhanced operational safety.
SEEPEX has introduced BN pumps with Smart Joint Access (SJA), engineered for the reliable and precise transfer of abrasive, corrosive, and chemical media in mining and construction. Designed for rock blasting, the pump features a large inspection opening for quick joint checks, a compact footprint for mobile or skid-mounted installations, and flexible drive and material options for consistent performance and uptime.

“Operators can inspect joints quickly and rely on precise pumping of shear-sensitive and abrasive emulsions,” said Magalie Levray, Global Business Development Manager Mining at SEEPEX. “This is particularly critical in rock blasting, where every borehole counts for productivity.” Industry Context
Rock blasting is essential for extracting hard rock and shaping safe excavation profiles in mining and construction. Accurate and consistent loading of explosive emulsions ensures controlled fragmentation, protects personnel, and maximizes productivity. Even minor deviations in pumping can cause delays or reduce product quality. BN pumps with SJA support routine maintenance and pre-operation checks by allowing fast verification of joint integrity, enabling more efficient operations.
Always Inspection Ready
Smart Joint Access is designed for inspection-friendly operations. The large inspection opening in the suction housing provides direct access to both joints, enabling rapid pre-operation checks while maintaining high operational reliability. Technicians can assess joint condition quickly, supporting continuous, reliable operation.
Key Features
- Compact Footprint: Fits truck-mounted mobile units, skid-mounted systems, and factory installations.
- Flexible Drive Options: Compact hydraulic drive or electric drive configurations.
- Hydraulic Efficiency: Low-displacement design reduces oil requirements and supports low total cost of ownership.
- Equal Wall Stator Design: Ensures high-pressure performance in a compact footprint.
- Material Flexibility: Stainless steel or steel housings, chrome-plated rotors, and stators in NBR, EPDM, or FKM.
Operators benefit from shorter inspection cycles, reliable dosing, seamless integration, and fast delivery through framework agreements, helping to maintain uptime in critical rock blasting processes.
Applications – Optimized for Rock Blasting
BN pumps with SJA are designed for mining, tunneling, quarrying, civil works, dam construction, and other sectors requiring precise handling of abrasive or chemical media. They provide robust performance while enabling fast, reliable inspection and maintenance.With SJA, operators can quickly access both joints without disassembly, ensuring emulsions are transferred accurately and consistently. This reduces downtime, preserves product integrity, and supports uniform dosing across multiple bore holes.
With the Smart Joint Access inspection opening, operators can quickly access and assess the condition of both joints without disassembly, enabling immediate verification of pump readiness prior to blast hole loading. This allows operators to confirm that emulsions are transferred accurately and consistently, protecting personnel, minimizing product degradation, and maintaining uniform dosing across multiple bore holes.
The combination of equal wall stator design, compact integration, flexible drives, and progressive cavity pump technology ensures continuous, reliable operation even in space-limited, high-pressure environments.
From Inspection to Operation
A leading explosives provider implemented BN pumps with SJA in open pit and underground operations. By replacing legacy pumps, inspection cycles were significantly shortened, allowing crews to complete pre-operation checks and return mobile units to productive work faster. Direct joint access through SJA enabled immediate verification, consistent emulsion dosing, and reduced downtime caused by joint-related deviations.
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Concrete
Digital process control is transforming grinding
Published
3 weeks agoon
February 20, 2026By
admin
Satish Maheshwari, Chief Manufacturing Officer, Shree Cement, delves into how digital intelligence is transforming cement grinding into a predictive, stable, and energy-efficient operation.
Grinding sits at the heart of cement manufacturing, accounting for the largest share of electrical energy consumption. In this interview, Satish Maheshwari, Chief Manufacturing Officer, Shree Cement, explains how advanced grinding technologies, data-driven optimisation and process intelligence are transforming mill performance, reducing power consumption and supporting the industry’s decarbonisation goals.
How has the grinding process evolved in Indian cement plants to meet rising efficiency and sustainability expectations?
Over the past decade, Indian cement plants have seen a clear evolution in grinding technology, moving from conventional open-circuit ball mills to high-efficiency closed-circuit systems, Roller Press–Ball Mill combinations and Vertical Roller Mills (VRMs). This shift has been supported by advances in separator design, improved wear-resistant materials, and the growing use of digital process automation. As a result, grinding units today operate as highly controlled manufacturing systems where real-time data, process intelligence and efficient separation work together to deliver stable and predictable performance.
From a sustainability perspective, these developments directly reduce specific power consumption, improve equipment reliability and lower the carbon footprint per tonne of cement produced.
How critical is grinding optimisation in reducing specific power consumption across ball mills and VRMs?
Grinding is the largest consumer of electrical energy in a cement plant, which makes optimisation one of the most effective levers for improving energy efficiency. In ball mill systems, optimisation through correct media selection, charge design, diaphragm configuration, ventilation management and separator tuning can typically deliver power savings of 5 per cent to 8 per cent. In VRMs, fine-tuning airflow balance, grinding pressure, nozzle ring settings, and circulating load can unlock energy reductions in the range of 8 per cent to 12 per cent. Across both systems, sustained operation under stable conditions is critical. Consistency in mill loading and operating parameters improves quality control, reduces wear, and enables long-term energy efficiency, making stability a key operational KPI.
What challenges arise in maintaining consistent cement quality when using alternative raw materials and blended compositions?
The increased use of alternative raw materials and supplementary cementitious materials (SCM) introduces variability in chemistry, moisture, hardness, and loss on ignition. This variability makes it more challenging to maintain consistent fineness, particle size distribution, throughput and downstream performance parameters such as setting time, strength development and workability.
As clinker substitution levels rise, grinding precision becomes increasingly important. Even small improvements in consistency enable higher SCM utilisation without compromising cement performance.
Addressing these challenges requires stronger feed homogenisation, real-time quality monitoring and dynamic adjustment of grinding parameters so that output quality remains stable despite changing input characteristics.
How is digital process control changing the way grinding performance is optimised?
Digital process control is transforming grinding from an operator-dependent activity into a predictive, model-driven operation. Technologies such as online particle size and residue analysers, AI-based optimisation platforms, digital twins for VRMs and Roller Press systems, and advanced process control solutions are redefining how performance is managed.
At the same time, workforce roles are evolving. Operators are increasingly focused on interpreting data trends through digital dashboards and responding proactively rather than relying on manual interventions. Together, these tools improve mill stability, enable faster response to disturbances, maintain consistent fineness, and reduce specific energy consumption while minimising manual effort.
How do you see grinding technologies supporting the industry’s low-clinker and decarbonisation goals?
Modern grinding technologies are central to the industry’s decarbonisation efforts. They enable higher incorporation of SCMs such as fly ash, slag, and limestone, improve particle fineness and reactivity, and reduce overall power consumption. Efficient grinding makes it possible to maintain consistent cement quality at lower clinker factors. Every improvement in energy intensity and particle engineering directly contributes to lower CO2 emissions.
As India moves toward low-carbon construction, precision grinding will remain a foundational capability for delivering sustainable, high-performance cement aligned with national and global climate objectives.
How much potential does grinding optimisation hold for immediate energy
and cost savings?
The potential for near-term savings is substantial. Without major capital investment, most plants can achieve 5 per cent to 15 per cent power reduction through measures such as improving separator efficiency, optimising ventilation, refining media grading, and fine-tuning operating parameters.
With continued capacity expansion across India, advanced optimisation tools will help ensure that productivity gains are not matched by proportional increases in energy demand. Given current power costs, this translates into direct and measurable financial benefits, making grinding optimisation one of the fastest-payback operational initiatives available to cement manufacturers today.
Concrete
Refractory demands in our kiln have changed
Published
3 weeks agoon
February 20, 2026By
admin
Radha Singh, Senior Manager (P&Q), Shree Digvijay Cement, points out why performance, predictability and life-cycle value now matter more than routine replacement in cement kilns.
As Indian cement plants push for higher throughput, increased alternative fuel usage and tighter shutdown cycles, refractory performance in kilns and pyro-processing systems is under growing pressure. In this interview, Radha Singh, Senior Manager (P&Q), Shree Digvijay Cement, shares how refractory demands have evolved on the ground and how smarter digital monitoring is improving kiln stability, uptime and clinker quality.
How have refractory demands changed in your kiln and pyro-processing line over the last five years?
Over the last five years, refractory demands in our kiln and pyro line have changed. Earlier, the focus was mostly on standard grades and routine shutdown-based replacement. But now, because of higher production loads, more alternative fuels and raw materials (AFR) usage and greater temperature variation, the expectation from refractory has increased.
In our own case, the current kiln refractory has already completed around 1.5 years, which itself shows how much more we now rely on materials that can handle thermal shock, alkali attack and coating fluctuations. We have moved towards more stable, high-performance linings so that we don’t have to enter the kiln frequently for repairs.
Overall, the shift has been from just ‘installation and run’ to selecting refractories that give longer life, better coating behaviour and more predictable performance under tougher operating conditions.
What are the biggest refractory challenges in the preheater, calciner and cooler zones?
• Preheater: Coating instability, chloride/sulphur cycles and brick erosion.
• Calciner: AFR firing, thermal shock and alkali infiltration.
• Cooler: Severe abrasion, red-river formation and mechanical stress on linings.
Overall, the biggest challenge is maintaining lining stability under highly variable operating conditions.
How do you evaluate and select refractory partners for long-term performance?
In real plant conditions, we don’t select a refractory partner just by looking at price. First, we see their past performance in similar kilns and whether their material has actually survived our operating conditions. We also check how strong their technical support is during shutdowns, because installation quality matters as much as the material itself.
Another key point is how quickly they respond during breakdowns or hot spots. A good partner should be available on short notice. We also look at their failure analysis capability, whether they can explain why a lining failed and suggest improvements.
On top of this, we review the life they delivered in the last few campaigns, their supply reliability and their willingness to offer plant-specific custom solutions instead of generic grades. Only a partner who supports us throughout the life cycle, which includes selection, installation, monitoring and post-failure analysis, fits our long-term requirement.
Can you share a recent example where better refractory selection improved uptime or clinker quality?
Recently, we upgraded to a high-abrasion basic brick at the kiln outlet. Earlier we had frequent chipping and coating loss. With the new lining, thermal stability improved and the coating became much more stable. As a result, our shutdown interval increased and clinker quality remained more consistent. It had a direct impact on our uptime.
How is increased AFR use affecting refractory behaviour?
Increased AFR use is definitely putting more stress on the refractory. The biggest issue we see daily is the rise in chlorine, alkalis and volatiles, which directly attack the lining, especially in the calciner and kiln inlet. AFR firing is also not as stable as conventional fuel, so we face frequent temperature fluctuations, which cause more thermal shock and small cracks in the lining.
Another real problem is coating instability. Some days the coating builds too fast, other days it suddenly drops, and both conditions impact refractory life. We also notice more dust circulation and buildup inside the calciner whenever the AFR mix changes, which again increases erosion.
Because of these practical issues, we have started relying more on alkali-resistant, low-porosity and better thermal shock–resistant materials to handle the additional stress coming from AFR.
What role does digital monitoring or thermal profiling play in your refractory strategy?
Digital tools like kiln shell scanners, IR imaging and thermal profiling help us detect weakening areas much earlier. This reduces unplanned shutdowns, helps identify hotspots accurately and allows us to replace only the critical sections. Overall, our maintenance has shifted from reactive to predictive, improving lining life significantly.
How do you balance cost, durability and installation speed during refractory shutdowns?
We focus on three points:
• Material quality that suits our thermal profile and chemistry.
• Installation speed, in fast turnarounds, we prefer monolithic.
• Life-cycle cost—the cheapest material is not the most economical. We look at durability, future downtime and total cost of ownership.
This balance ensures reliable performance without unnecessary expenditure.
What refractory or pyro-processing innovations could transform Indian cement operations?
Some promising developments include:
• High-performance, low-porosity and nano-bonded refractories
• Precast modular linings to drastically reduce shutdown time
• AI-driven kiln thermal analytics
• Advanced coating management solutions
• More AFR-compatible refractory mixes
These innovations can significantly improve kiln stability, efficiency and maintenance planning across the industry.
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