Economy & Market

The Sad Story of the Stimulus

Published

5 years ago

January 6, 2020

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The shock is enormous, the people are left stunned, and the economy is reeling. Clearly, the The shock is enormous, the people are left stunned, and the economy is reeling. Clearly, the pandemic is taking an unprecedented toll on our bodies and minds. is taking an unprecedented toll on our bodies and minds. But there is this foreboding that something more disastrous is looming on the horizon. This apprehension is gaining ground from the ever declining GDP growth projections for the year 2020-21; In March, experts were talking about a 2 per cent growth for FY21, in April it became 0 per cent, in May it went down to -2 per cent, and today in early June, the forecast has plummeted to -5 per cent, with some naysayers pegging it at -10 per cent. While none of these numbers shock us any more, there are two major points to be remembered in this context.

Firstly, this recession is definitely going to hit India more than other countries, because we are entering this Covid-infested recession with two years of slowdown already having wounded our economy severely. This is aptly described as "We were already hurtling downhill, but now we are going to be thrown over the cliff".

And may be that is why even a projected -10 per cent decline in GDP does not shock us anymore. But we are in awe of what this means for the future. We are scared because we try to figure out the implications even as we have no past experience, nor any notion of what this may mean to our citizens and our existence. Understandably, this has not happened before, in our lifetime, and we have no precedents to fall back on. But the bottom line is clearly that India will be one of the worst hit nations in the aftermath of this war with the virus, and with its coffers already weakened by successive years of stretched finances, India’s ability to claw out of this economic hole may be seriously impaired.

The second point to note is more profound and definite, and this has to do with our battle with poverty. I heard it said somewhere that pushing for economic growth is our moral obligation to the poor. Every 1 per cent additional growth of GDP per capita is said to lift three million people out of poverty and unfortunately the reverse is also true. As it is, the drooping growth of the last two years have been a great lost opportunity for us to improve the lot of lots of our underprivileged fellow countrymen. But that misfortune now looks like small change when we consider the deep impact of a 10 to 15 per cent swing of GDP growth number. Such an economic calamity will push at least 30 million people back into poverty, and take us backwards many years in our long and arduous developmental journey.

Like governments around the world, India has also announced a flurry of "stimulus" measures totalling up to an apparently massive 20 lakh crore package, purportedly hitting the golden mark of 10 per cent of our GDP. However, independent observers have analysed this to be really between 1.3 to 1.9 lakh crore only, the rest being deferments and credit lines, etc. The package has also been criticised for being silent about creating demand, which was the need of the hour. Given this background, it is now projected that recovery of our economy has to wait at least till next calendar year.

The cement industry was already impacted by the general economic slowdown in the economy. We noted that the production of cement in FY19 has shown a degrowth of 0.8 per cent already against a 13 per cent growth in the year before. And now with the Covid-19 pandemic, and what with the fact that the stimulus package has not done much to excite consumption, cement production is expected to decline by 25 to 30 per cent during FY21 and capacity utilisation is expected to be only about 45 per cent. If this does happen, this will be one of the steepest ever fall in capacity utilisation and production that the industry would have ever experienced.

Concrete

15th Cement EXPO: A Step Forward in Cement Innovation

Published

2 weeks ago

January 17, 2025

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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

3 weeks ago

January 15, 2025

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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

3 weeks ago

January 15, 2025

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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.