Economy & Market

Lack of big govt investment plans hits sentiment

Published

8 years ago

January 8, 2019

admin

Industry was expecting investment booster to the economy through various construction and infrastructure projects post-polls, and the demand was affected as these hopes were belied.

With increase in monsoon footprint and intensity in July 2019, pressure points were visible on cement demand, adding to the earlier pressures created by continued lull post-election, belying the expectations of the industry on increased project spending by the government.

The ET Cement Index that tracks cement price movements across the country has unusually remained flat/stable at 2,397.3 points between end-June and beginning of August 2019, after a marginal fall in June.

However, channel checks by the leading brokerage, CLSA indicated weakened cement demand trends in July across markets due to tough macro, tight liquidity, lull post elections on government spending, monsoon etc. The Union Budget 2019-20 for full year released early July proved to be a dampener, lacking in any big ticket investment plans.

Cement prices were down 7-10 per cent MoM in Andhra Pradesh & Telangana, while east has seen ~4 per cent MoM decline. Prices in north, central and Gujarat are down 1-2 per cent MoM, CLSA’s recent channel checks found.

"A part of the price correction is due to seasonality as construction activity tapers off during monsoons. However, the channel expects further pricing corrections in next few months as demand is likely to pick-up only post monsoon. We currently forecast 4-6 per cent Quarter-on-Quarter (QoQ) decline in realisations for our coverage during 2QFY20 and there is a possibility of earnings cuts in south-based players, if there are further (price) cuts," says Vivek Maheshwari, Investment Analyst of CLSA, in a report released on July 31, 2019.

"There has been a notable improvement in the cumulative rainfall received as the cumulative deficit has reduced from (-)19 per cent for the week ended 24 July to (-)9 per cent for the week ended 31 July," says Madan Sabnavis, Chief Economist, CARE Ratings in a report titled Weekly Monsoon Monitor dated August 2, 2019. Steep rise in prices in April and May 2019 have weakened the demand, curtailing the pricing power of the industry in the following months. In June, ET Cement Index eased 1.39 per cent at 2397.3 from the all time peak of 2431.1 points registered at the end of May 2019. With sharp 8 per cent Month-on-Month (MoM or compared to the previous month) hike pan-India in April, average trade prices in April-June were up by 11 per cent Quarter-on-Quarter (QoQ).

According to CLSA’s channel checks, across regions demand has been generally weak with very high pressures visible in the states of Andhra and Telangana post elections as activity has slowed down quite a bit, taking the July prices down 6-7 per cent versus 1QFY20 average for the south as a whole. In the east, prices have also been cut by 4 per cent Month-on-Month (MoM) in July, which is down 5 per cent versus 1QFY20. North, central and west (Gujarat) have seen 1-2 per cent MoM cuts in July and this is similar when compared with 1QFY20 average as there were strong hikes in the earlier quarter.

Drying up of funding sources for construction contractors has impacted construction activity in general, raising concerns over cement demand. Availability of sand has also been highlighted as an issue in some places, impacting construction activity.

Monsoon progress
The progress of the south-west monsoon reveals a notable improvement for the week ended 31 July with the cumulative rainfall deficit reducing to (-) 9 per cent and the number of sub-divisions recording deficient rainfall being 14, out of 36 divisions across the country. The rainfall deficit of (-) 9 per cent during the current season is at a 5-year high, according to Indian Meteorological Department (IMD).

Improved rainfall position coupled with relatively better distribution of rainfall bodes well for the crop production.

Spatial and temporal spread of monsoon in the sowing season will impact the agricultural crop outcomes and consequently, rural incomes, based on which the demand for cement from rural areas will be impacted. That is, a good monsoon can boost demand for cement due to increased construction activity.

The sowing crop situation as of 26 July’19 has also seen an improvement for a few kharif crops namely maize, urad, sugarcane and cotton as the sowing for the current season has been higher than the normal. However, the sowing of key crops namely rice, food-grains, bajra is significantly lower than the normal, according to CARE Ratings’ analysis.

Looking ahead
"IMD is expecting monsoon to be normal in August and September and is likely to be 100 per cent of the long period (50 years) average. In the balance two months, the progress of sowing and in turn the food production would be critical for overall consumer and wholesale inflation to remain benign," says CARE Ratings.

Maheshwari says, "Our interactions with industry players indicate that the demand is likely to pick-up only post monsoons, but we see lesser optimism at this stage on an imminent pick-up in the next few months due to tough macro conditions."

Concrete

Wonder Cement appoints Mahesh Singh as VP Corporate Brand Communication

Published

5 days ago

October 9, 2026

admin

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

6 days ago

October 8, 2026

admin

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

1 week ago

October 7, 2026

admin

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.