Economy & Market

A thin Veneer of Utopia on Reality

Published

8 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

Wonder Cement appoints Mahesh Singh as VP Corporate Brand Communication

Published

2 days ago

October 9, 2026

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Singh brings 20+ years of brand and marketing experience, and will lead integrated corporate brand communication initiatives at Wonder Cement

New Delhi

Wonder Cement, a leading cement manufacturer, has appointed Mahesh Singh as Vice President – Corporate Brand Communication. In his new role, he will oversee corporate brand strategy and communication, including digital and performance marketing, public relations, trade, events, exhibitions, sports and experiential marketing.

Singh brings over two decades of experience across marketing and communications, with roles spanning the automotive industry, agencies and entrepreneurship. He spent more than a decade with Honda Motorcycle & Scooter India, working across integrated communication, media, digital, retail and consumer engagement. His stint also included helping build the company’s digital marketing capabilities.

He moved to dentsu X India as Vice President – Strategy & Planning, working across categories such as automotive, auto components, electric vehicles, FMCG, consumer electronics, BFSI, apparel and brand consulting. His responsibilities included media and marketing strategy, product launches, content, performance marketing and consumer activations.

Singh subsequently took an entrepreneurial route with Radiant Brands before joining Shriram Ltd (SPR Autotech) as Head – Marketing & Communications. There, his remit included brand and corporate strategy, communications, PR and ORM, retail identity, loyalty programmes and events.

At Wonder Cement, Singh will be responsible for bringing together the company’s corporate brand communication initiatives across digital, performance marketing, PR, trade, sports and experiential platforms. The role will focus on creating an integrated approach to communication across consumers, trade partners and other key stakeholders.

The appointment brings to Wonder Cement a marketer whose career has spanned the brand, agency and entrepreneurial sides of the communications ecosystem.

Wonder Cement, part of the RK Group, is a cement manufacturer with roots in Rajasthan and a focus on quality, trust and transparency. The company has grown to six manufacturing plants, and a cement capacity of 21.5 MTPA. With more than 2,000 employees and a network of over 5,000 dealers, its operations span manufacturing, distribution and customer engagement, with a focus on consistent product quality and efficient execution.

Concrete

JSW Cement commissions additional 1 MTPA grinding unit at Nagaur

Published

3 days ago

October 8, 2026

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With this commissioning, JSW Cement’s total cement grinding capacity has increased to 25.10 MTPA,
Mumbai

JSW Cement, one of India’s leading green cement producers and part of the diversified JSW Group, today announced the successful commissioning of an additional 1.00 MTPA cement grinding unit at Nagaur, Rajasthan. The commissioning marks another significant milestone in the Company’s growth strategy.

With this commissioning, JSW Cement’s total cement grinding capacity has increased to 25.10 MTPA, while its total clinker manufacturing capacity, including clinker capacity at its joint venture, JSW Cement FZC, stands at 9.74 MTPA.

JSW Cement had commenced operations in North India in March 2026 with the Nagaur Integrated Plant, comprising a 3.30 MTPA clinkerisation unit and 2.50 MTPA cement grinding unit. With the commissioning of the additional 1.00 MTPA cement grinding unit, the plant’s total cement grinding capacity has increased to 3.50 MTPA, enhancing the company’s ability to cater to the growing cement demand across Rajasthan, Haryana, Punjab and the National Capital Region (NCR). The expansion has been funded through a strategic mix of equity and long-term debt.

During the quarter ended 30th September 2026, JSW Cement has also commissioned the Alternate Fuel Handling System and the Waste Heat Recovery system (WHRS) at the Nagaur Integrated Plant.

Nilesh Narwekar, CEO, JSW Cement, said: “The commissioning of additional 1.00 MTPA grinding capacity at Nagaur is a key strategic priority for us and will accelerate JSW Cement’s expansion into North India. We look forward to servicing the growing needs of the region and contributing to the economic growth of Rajasthan, Haryana, Punjab and the NCR area. I am delighted to share that the company has commissioned this grinding unit within the expected timeline, showcasing our project execution capabilities. Further, the Alternate Fuel Handling System and the Waste Heat Recovery system (WHRS) are expected to substantially reduce our production costs going forward.”

Concrete

UltraTech becomes first Indian cement firm to cross 2 GW green energy

Published

4 days ago

October 7, 2026

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UltraTech Cement has crossed 2 GW of captive green energy capacity, with renewables and waste heat recovery meeting 48 per cent of its power needs.

Mumbai

UltraTech Cement Limited has surpassed 2 GW of installed green energy capacity for captive use, becoming the first cement company in India to achieve the milestone. The Aditya Birla Group company commissioned 116.55 MW of wind capacity at its Inter-State Transmission System-connected wind-solar hybrid project in Barmer, Rajasthan, along with 10 MW of Waste Heat Recovery System capacity at Sarlanagar Cement Works in Karnataka.

With these additions, UltraTech’s cumulative installed green energy capacity has reached 2,024 MW. This includes 1,580 MW of renewable energy capacity and 444 MW of waste heat recovery capacity, together meeting around 48 per cent of the company’s current power requirements.

The company said the milestone reflects the progress of its long-term energy transition strategy. In FY27 so far, nearly one-third of UltraTech’s 76 manufacturing units in India have maintained green energy utilisation above 50 per cent of their electricity requirements, while five units have crossed 95 per cent.

K C Jhanwar, Managing Director, UltraTech Cement Limited, said, “Crossing the 2 GW green energy milestone is the result of a strategy we have pursued consistently over the past decade. Cement is an energy-intensive, hard-to-abate sector, and showing that reliability and growth can go hand in hand with a rapid shift to green energy sets a benchmark for the industry. With nearly half of our power needs now met through green energy, we are significantly less exposed to fossil fuel supply constraints and power price volatility. As we scale up renewables, waste heat recovery and battery storage across our operations, we are building an energy foundation for stable, long-term growth.”

UltraTech commissioned 430 MW of green energy capacity in FY26 and continues to expand its renewable energy and waste heat recovery portfolio.

The company is also progressively integrating Battery Energy Storage Systems across its operations to improve renewable energy utilisation and supply reliability.

In 2025, UltraTech operationalised what it described as India’s first on-site hybrid round-the-clock renewable energy project at Sewagram Cement Works in Gujarat. The project combines solar, wind and battery storage.

As part of its decarbonisation strategy, UltraTech said it has not invested in new captive thermal power capacity for either greenfield projects or brownfield expansions at its integrated units for more than a decade.

The company said its expanding green energy portfolio is helping reduce dependence on conventional grid electricity and fossil fuel-based power, while lowering exposure to fluctuations in coal and electricity prices.

UltraTech aims to increase green energy’s share in its total power mix to 85 per cent by 2030. As a member of RE100, it has also committed to meeting 100 per cent of its electricity requirement through renewable sources by 2050.

UltraTech Cement, the cement flagship of the Aditya Birla Group, has a total grey cement capacity of 210.1 MTPA and white cement and putty capacity of 3.5 MTPA. The company is also a signatory to the GCCA Climate Ambition 2050 and has committed to the GCCA Net Zero Concrete roadmap.