Economy & Market

India’s 8 core sectors shrink 5.2%

Published

6 years ago

January 11, 2019

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CARE Ratings reviews the index of eight core infrastructure industries. During the first half of this fiscal year, the eight core industries production grew by 1.3 per cent, 4.2 per cent lower than that in the comparable period a year ago.

The index of eight core infrastructure industries contracted sharply by 5.2 per cent in September 2019 (its lowest level since the beginning of the new base year (2011-12)). Deterioration in seven of the eight constituents weighed on the overall core sector growth with production of coal having declined by 21 per cent (highest among the constituents).

At the same time, higher production of fertilizers owing to restocking activities ahead of rabi season limited the decline in the core sector index. The core sector growth for August 2019 was revised upwards to 0.1 per cent from the earlier contraction of -0.5 per cent. During the first half of this fiscal year, the eight core industries production grew by 1.3 per cent, 4.2 per cent lower than that in the comparable period a year ago.

Industry-wise growth
Coal production contracted sharply by 21 per cent in September 2019 over a contraction of 8.6 per cent in the previous month and growth of 6.4 per cent in September 2018. Prolonged monsoons have weighed on the coal production.
Cement production contracted for the second consecutive month by 2.1 per cent over the 5.1 per cent contraction in the previous month and 11.8 per cent growth in the comparable period a year ago. Unfavourable base effect and prolonged monsoon weighed on the cement production during the month.
Steel production fell to a nearly 4 year low of (-) 0.3 per cent over the 5 per cent growth in the previous month and 3.2 per cent growth in the corresponding period a year ago. This can be attributed to slowdown in demand from the end user industries owing to monsoons.
Electricity production continued to witness contraction in this month as well.
It declined by 3.7 per cent as against the 0.9 per cent contraction in the previous month. High base effect and lower commercial demand given the low industrial growth has led to lower electricity production.
Refinery products, having the highest weight of 28 per cent, contracted by 6.7 per cent as against the positive growth of 2.6 per cent in the previous month and 2.5 per cent in September 2018. Planned shutdowns for upgradation and maintenance along with inventory pile up of refinery products and extended monsoons came in the way of refinery production.
Growth in fertilizer production rose to an eight-month high of 5.4 per cent during September 2019, higher than the 2.9 per cent growth in August 2019 and 2.5 per cent growth in the corresponding period a year ago. Restocking activities ahead of the rabi sowing season supported the fertilizer production.
Crude oil production contracted by 5.4 per cent in September 2019, same as of last month.
Natural gas contracted to a 14-month low at 4.9 per cent in September 2019 as against the 3.9 per cent contraction in the previous month and 1.7 per cent contraction in the comparable period a year ago.

CARE Ratings’ view
Negative growth in IIP cannot be ruled out in September 2019 given that the core sector has contracted sharply and it constitutes 40 per cent of items included in IIP.

For further information:
Madan Sabnavis, Chief Economist
Email: madan.sabnavis@careratings.com
Tel: 91-22-68374433

Manisha Sachdeva, Economist
Email: Manisha.sachdeva@careratings.com
Tel: 91-22-68374346
Mradul Mishra, Media Contact
Email: mradul.mishra@careratings.com
Tel: 91-22-68374424
Corporate office:
4th Floor, Godrej Coliseum,
Somaiya Hospital Road,
Off Eastern Express Highway,
Sion (East), Mumbai – 400 022.
Tel: +91-22-6754 3456
Fax: +91-22-6754 3457
Email: care@careratings.com

Disclaimer: This report is prepared by CARE
Ratings Ltd. CARE Ratings has taken utmost care to ensure accuracy and objectivity while developing this report based on information available in public domain. However, neither the accuracy nor completeness of information contained in this report is guaranteed. CARE Ratings is not responsible for any errors or omissions in analysis/inferences/views or for results obtained from the use of information contained in this report and especially states that CARE Ratings has no financial liability whatsoever to the user of this report.
Source: CARE Ratings’ Core Sector
September 2019 report

Concrete

15th Cement EXPO: A Step Forward in Cement Innovation

Published

3 weeks ago

January 17, 2025

admin

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

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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.