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

CCU testbeds in Tamil Nadu

Published

on

By

Shares

Tamil Nadu is set to host one of India’s five national carbon capture and utilisation (CCU) testbeds, aimed at reducing CO2 emissions in the cement industry as part of the country’s 2070 net-zero goal, as per a news report. The facility will be based at UltraTech Cement’s Reddipalayam plant in Ariyalur, supported by IIT Madras and BITS Pilani. Backed by the Department of Science and Technology (DST), the project will pilot an oxygen-enriched kiln capable of capturing up to two tonnes of CO2 per day for conversion into concrete products. Additional testbeds are planned in Rajasthan, Odisha, and Andhra Pradesh, involving companies like JK Cement and Dalmia Cement. Union Minister Jitendra Singh confirmed that funding approvals are underway, with full implementation expected in 2025.

Image source:https://www.heavyequipmentguide.ca/

Continue Reading

Concrete

JSW Cement gears up for IPO

Published

on

By

Shares

JSW Cement has set the price range for its upcoming initial public offering(IPO) at US$1.58 to US$1.67 per share, aiming to raise approximately US$409 million. As reported in the news, around US$91 million from the proceeds will be directed towards partially financing a new integrated cement plant in Nagaur, Rajasthan. Additionally, the company plans to utilise US$59.2 million to repay or prepay existing debts. The remaining capital will be allocated for general corporate purposes.

Continue Reading

Concrete

Cement industry to gain from new infrastructure spending

Published

on

By

Shares

As per a news report, Karan Adani, ACC Chair, has said that he expects the cement industry to benefit from the an anticipated US$2.2tn in new public infrastructure spending between 2025 and 2030. In a statement he said that ACC has crossed the 100Mt/yr cement capacity milestone in April 2025, propelling the company to get closer to its ambitious 140Mt/yr target by the 2028 financial year. The company’s capacity corresponds to 15 per cent of an all-India installed capacity of 686Mt/yr.

Image source:https://cementplantsupplier.com/cement-manufacturing/emerging-trends-in-cement-manufacturing-technology/

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

    This will close in 0 seconds