Economy & Market

Core sector grows at 6-month high in Jan

Published

5 years ago

January 3, 2020

admin

The growth during the month has been aided by increased output in the five out of eight industries ‘ coal, refineries, steel, cement and electricity.

In the month of January 2020, the output of eight core industries grew at a six-month high. At 2.2 per cent growth in the month, it was 70 bps higher than the 1.5 per cent growth in witnessed in the corresponding month a year ago and 10 bps higher than 2.1 per cent growth seen in the previous month. The eight core industries comprise of 40.27 per cent of the weights included in the index of industrial production (IIP) basket. The growth during the month has been aided by increased output in the five out of eight industries ‘ coal, refineries, steel, cement and electricity.

For December 2019, the year-on-year (YoY) growth has been revised upwards from 1.3 per cent earlier to 2.1 per cent as per latest data.

During the first 10 months of FY20’April 2019 to January 2020’the production in the eight core industries expanded at lacklustre 0.6 per cent, as against the 4.4 per cent growth seen in the corresponding period a year ago.

Industry-wise growth:

Coal production was at a 10 month high and it increased by 8 per cent in January 2020 compared with the 2 per cent growth seen in January 2019. The resumption of extraction activities post delayed monsoons this year has resulted in the increase in the production by the industry.

Crude oil production in January 2020 contracted for more than two years, successively for 26 months by 5.3 per cent, higher than de-growth by 4.3 per cent seen in January 2019. Decline in the crude oil prices globally and high inventories are seen to weigh on the production during the month.

The production of the natural gas too has contracted by 9.1 per cent as against 6.2 per cent growth seen in January 2019 registering sustained contraction for the 10 months mainly on account of subdued prices and inventory pile up.

Refinery products, which have highest weight in eight core industries, grew by 1.9 per cent in January 2020, as against 2.6 per cent contraction seen in the comparable month last year. It can partly be ascribed to the increased production of BS VI fuel by the refiners to meet the upcoming demand ahead of the implementation of BS VI norms April 2020 onwards.

Fertilizers production has seen a decline for the first time in the past eight months. The production of fertilizers decreased by 0.1 per cent in January 2020 compared with the 10.5 per cent growth seen in January 2019. High base effect has weighed on the overall growth numbers during the month despite of robust sowing activities seen during rabi season.

Steel production increased by 2.2 per cent in January 2020 lower than the 5.5 per cent growth witnessed in January 2019. The resumption of construction activities has supported the production in the industry.

The production of cement grew by 5 per cent in January 2020, lower than the 11 per cent growth in January 2019. Though the pick-up in construction activities aided the production of cement, high base effect the curtailed overall growth during the month.

Electricity production witnessed a trend reversal and grew by 2.8 per cent against the sustained contraction seen in the previous 5 months. It was also higher than the 0.8 per cent growth in January 2019.

CARE Ratings’ view
Based on the core sector growth, IIP is expected to grow by 2-3 per cent for January 2020. We are expecting IIP to grow by 2 per cent for FY20.

COURTESY:
CARE RATINGS "Core Sector Update"
January 2020
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.

ABOUT THE AUTHORS: ‘Madan Sabnavis is Chief Economist. He can be contacted on: madan.sabnavis@careratings.com or 91-22-68374433 ‘ Dr Rucha Ranadive is Economist. She can be contacted on: rucha.ranadive@careratings.com or 91-22-68374406

Concrete

15th Cement EXPO: A Step Forward in Cement Innovation

Published

7 days 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

Mob: +91 842 2874 021

Email: ratan.r@ASAPPinfoGlobal.com

Concrete

Construction sector growth slows to 8-10% for FY2025: ICRA

Published

1 week ago

January 15, 2025

admin

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

1 week ago

January 15, 2025

admin

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.