Connect with us

Economy & Market

Poised for Growth

Published

on

Shares

In a country like ours, where many families still do not have a roof above their heads, and acute absence of infrastructure hobbles the manufacturing sector, and consequently, per capita consumption of cement is around a lowly 200 kg, potential growth of cement consumption is a given. That proposition is decidedly valid for the longer term, and this upward trend in consumption overrides the classical cyclic troughs and crests which are so very much typical of commodities like cement.

However, in the short term, transient market volatilities caused by seasonal cycles as well as economic lulls in investment worry us no end and keep the analysts mighty busy. This conundrum posed by the complicated interplay of all these factors, makes for interesting study.

We do know that both in terms of capacity and consumption, India has the distinction of being the second ranked country in the world, behind China. In fact, cement may be the only item or parameter, where India has the honour of being buttressed by China and USA on either side. But we also know at the same time, that this recognition matters little to the bottom line of Indian cement players, apart from the sheer reputational value and national pride this ranking imparts to us. Irrelevant as it may be in business terms, a report recently concluded that India’s share of the pie in the global cement marketplace (if there ever was one..!) was 24 per cent in 2018, and will move up to a highly reassuring 30 per cent by 2030. Since cement doesn’t travel well, at least not beyond 500-700 km, an integrated global cement market is a misnomer, a theoretical or imagined entity.

So, the Indian cement players will have to worry about our domestic, or even regional capacity overhangs, and regional trends of demand growth. They have to analyse projections of rural and urban consumption, investments forthcoming into infrastructure, and design their strategies around our domestic capacities and cost scenarios. Choices are continuously being made by our cement companies, between organic and inorganic routes of expansion. The simple truth about acquisition of existing capacity, albeit at a higher cost, is that this action helps increase one’s market share without adding to the excess capacity. On the other hand, Greenfield expansion of capacity can come at a lower cost, at a time and place of one’s choosing.

To make this discussion lively and interesting for our readers, we have put together contributions and views of reputed stakeholders, including some well-known names in the consulting space for cement sector. We do hope this bouquet of reports will give some new insights into an already crowded body of work on this subject.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Concrete

Holcim UK drives sustainable construction

Published

on

By

Shares

Holcim UK has released a report titled ‘Making Sustainable Construction a Reality,’ outlining its five-fold commitment to a greener future. The company aims to focus on decarbonisation, circular economy principles, smarter building methods, community engagement, and integrating nature. Based on a survey of 2,000 people, only 41 per cent felt urban spaces in the UK are sustainably built. A significant majority (82 per cent) advocated for more green spaces, 69 per cent called for government leadership in sustainability, and 54 per cent saw businesses as key players. Additionally, 80 per cent of respondents stressed the need for greater transparency from companies regarding their environmental practices.

Image source:holcim

Continue Reading

Concrete

GCCA releases LCR system

Published

on

By

Shares

The Global Cement and Concrete Association (GCCA) has launched the Low Carbon Ratings (LCR) system for cement and concrete, a new global rating based on products’ carbon footprints. The system uses a clear AA to G scale to help customers prioritise sustainability in material selection across construction sectors worldwide. The GCCA says that the LCR system is designed to be easily recognisable, with a simple visual graphic that indicates a product’s rating and provides consistency and comparability to other products.

Image source:highways.today

Continue Reading

Concrete

FLSmidth opens eco-friendly plant in Casablanca

Published

on

By

Shares

FLSmidth has inaugurated a €21 million mill liner manufacturing plant in Casablanca, covering 11,250m² with a production capacity of 6,500 tonnes annually. The LEED-certified facility significantly reduces carbon emissions by up to 56 per cent and fully recycles water used in the manufacturing process. Up to 250 jobs will be created in the Valparaíso region. Mikko Keto, CEO, highlighted the plant as a symbol of FLSmidth’s commitment to sustainable mining and community engagement in South America. Earlier in 2024, the Denmark-based company announced plans to sell its cement division to sharpen its focus on mining operations.

 

Continue Reading

Trending News

SUBSCRIBE TO THE NEWSLETTER

 

Don't miss out on valuable insights and opportunities to connect with like minded professionals.

 


    This will close in 0 seconds