Economy & Market

A thin Veneer of Utopia on Reality

Published

6 years ago

January 8, 2019

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The Budget Proposals, The Economy and the Cement Industry

The policy-makers’ dream of an economy is a wonderful and improbable combination of low inflation, high growth and jobs for all, with people coming out in droves from below the poverty line, and the icing on the cake in such an utopian scenario would be a low fiscal deficit of 3.4 per cent. What more can a finance minister dream of? In other words, if a budget is presented which aims to achieve all this and more, there are bound to be inconsistencies, and there are going to be questions. A veteran leader of the two wheeler industry who is known for plain speaking, was recently quoted as saying that governments can remain in a state of happiness, but "reality is reality"; he also went on to add rather caustically that in a situation where there is no demand and no private investments, will growth come from the heaven?

Talking about the economy, and the slowdown which engulfs us, the first step to finding a solution is to acknowledge that there exists a problem – and unfortunately the problem starts from there. Amazingly, a large number of stakeholders seem to be of the view that our economy can, and is actually chugging along just fine, even though all its constituents, all the sectors are limping. Perhaps the answer to the question as to why this budget saw no need to offer a stimulus package to prime the economy, can be found in this misplaced and smug confidence. In fact, ET recently ran a small piece on why the budget had no booster dose for the sluggish economy, enumerating the reasons why such an intervention was not deemed necessary, and the reasons were that (believe it or not) the country is the fastest growing nation in the world, and that global confidence in the Indian economy has been improving, and the long/medium term growth prospects of the economy are bright!

Not only that there were no booster injected to propel the economy (which were badly needed), but also the nations book of accounts were left with major inconsistencies which border on "creative accounting" in respect of fiscal deficit. Take this for a sample: FY19 actuals/revised estimates form the basis for FY20 Budget, and there is a huge gap of Rs 1.7 trillion in revenue shortfall last year which has not been taken note of in this budget. This itself is a shortfall of 0.9 per cent of GDP. There are other examples such as food corporations burgeoning receivables, etc., and one is left wondering if the true fiscal deficit as planned is 3.4 per cent or 4.3 per cent. There seems to be a thin line between fiscal discipline and fiscal profligacy. It is a greatly under-reported fact that the venerable CAG has stated that the officially reported fiscal deficit of 3.5 per cent is a gross understatement of the actuals, (the CAG says it should read as an unbelievably high 5.85 per cent) and one can safely extrapolate that for FY 19, the reported fiscal deficit would be an even grosser understatement. All this can only mean one of two things for the current year, and that is either a huge jump in revenue receipts or a huge potential cut in expenditure (read infrastructure). And given the state of the economy and slowing trend of revenue collections, I can leave the unsuspecting readers to their imaginations to determine which it will be.

With this situation unravelling in the background, remember that one-third of India’s cement making capacity is unutilised, underlining the already visible trend of slowing activity in the housing sector and infrastructure development. If housing doesn’t pick up, and on top of that government’s infra spending gets hit due to inadequate budgeting, there is not much hope for the cement industry in the short run.

Concrete

15th Cement EXPO: A Step Forward in Cement Innovation

Published

2 weeks ago

January 17, 2025

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Mumbai

Following the immense success of the 14th Cement EXPO, held on December 14-15, 2023, at the Manekshaw Centre, New Delhi, the next edition of this premier event is set to take place in March 2025. The 15th Cement EXPO will be hosted at Yashobhoomi, Delhi, on 12th and 13th November 2025.

Meanwhile, the Cement Expo Forum 2025 is scheduled for 5th and 6th March 2025 at Taj Krishna in Hyderabad. This exciting 3-in-1 event, organised by FIRST Construction Council (FCC) and Indian Cement Review (ICR), will bring together industry leaders, innovators, and stakeholders to discuss the future of the cement sector.

Building on the Success of the 14th Cement EXPO

The 14th Cement EXPO was widely praised for its strong participation, attracting over 1,500 senior managers and decision-makers from across the cement industry. The event was inaugurated by Dr. Vibha Dhawan, Director General of TERI, and Ali Emir Adiguzel, Founder and Director of the World Cement Association, alongside Pratap Padode, Founder of FIRST Construction Council (FCC). The two-tiered exhibition space featured cutting-edge products and innovations from top companies within the cement industry’s supply chain.

The event also garnered significant support from key government bodies, including the Ministry of Road Transport and Highways, Government e-Marketplace (GeM), and the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, Government of India (GoI).

Recognition and Excellence in the Cement Industry

The 7th Indian Cement Review Awards celebrated excellence by presenting awards to 11 companies in various categories, recognising their contributions to growth and innovation within the industry. Notably, Parth Jindal, Managing Director of JSW Cement, was honoured with the prestigious Indian Cement Review – Person of the Year Award 2023. Meanwhile, Vinita Singhania, Vice Chairman and Managing Director of JK Lakshmi Cement Ltd, received the Lifetime Achievement Award for her outstanding leadership and contributions to the sector.

A Vision for Sustainability

With the theme of “Driving Sustainability Through Technology,” the 9th Indian Cement Review Conference hosted thought-provoking discussions and presentations, highlighting the industry’s commitment to adopting innovative, sustainable practices. The conference served as a platform for dialogue on the latest technological advancements aimed at transforming the cement sector, addressing key challenges, and fostering growth.

What to Expect from Cement EXPO 2025

The 15th Cement EXPO, along with the 10th Indian Cement Review Conference and the 8th Indian Cement Review Awards, is set to be even bigger and more impactful than the 2023 edition. With an expanded exhibition space, greater participation, and more in-depth discussions, the 2025 event will continue to drive the industry forward. This 3-in-1 event promises to be a pivotal moment in the ongoing transformation of the cement sector.

As the industry evolves, the 15th Cement EXPO 2025 will serve as a crucial platform for showcasing innovations, discussing emerging trends, and forging new partnerships to shape the future of cement and construction.

For more details:

Cement Expo Forum 2025: https://cementexpo.in/forum

15^th Cement Expo 2025: https://cementexpo.in/

FOR CONFERENCE SPONSORSHIPS

Sheetal Talreja

Mob: +91 842 2874 030

Email: sheetal@IndianCementReview.com

FOR EXHIBITION/SPONSORSHIPS

Sujoy Gomes

Mob: +91 865 7795 881

Email: Sujoy.g@ASAPPinfoGlobal.com

FOR SPONSORSHIPS

Ratan Rajbhar

Mob: +91 842 2874 021

Email: ratan.r@ASAPPinfoGlobal.com

Concrete

Construction sector growth slows to 8-10% for FY2025: ICRA

Published

3 weeks ago

January 15, 2025

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The revenue growth for construction companies in FY2025 is projected at 8-10 per cent, down from the earlier estimate of 12-15 per cent, according to ICRA. This marks the slowest growth in three years, driven by factors such as the Model Code of Conduct in Q1, prolonged monsoons, and milestone-based billing in Q2, particularly affecting road-focused players.
ICRA’s analysis of 19 companies with a combined turnover of Rs.1.28 trillion in FY2024 shows modest revenue growth of 1.5 per cent YoY in H1 FY2025. While execution is expected to improve in H2, FY2025 growth remains below the historical CAGR of ~15 per cent (FY2018-FY2024).
Order inflows in urban transport, water and sewage projects are healthy, but road-focused entities face challenges due to muted inflows and high competition. Operating margins are projected to remain range-bound at 10.5-11 per cent, with debt levels rising to manage working capital needs, though debt coverage metrics remain stable.

Concrete

SANY India expands Pune factory to boost production capacity

Published

3 weeks ago

January 15, 2025

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SANY India inaugurated a cutting-edge factory expansion at its 90-acre Pune facility, elevating its production capacity to over 14,000 units annually, alongside a robust fabrication capacity of 100,000 metric tonnes.

The advanced facility reinforces SANY’s commitment to ‘Make in India’ by enhancing localised manufacturing and supporting global exports. Chairman Xiang Wenbo highlighted the strategic importance of India as a global hub, while Vice Chairman Deepak Garg emphasised the expansion’s role in driving innovation and infrastructure development. This investment enhances efficiency, reduces timelines, and strengthens SANY’s leadership in the construction equipment sector.