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Core industries’ output contracts 23.4% in May

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The eight core sector industrial output has contracted by 23.4 per cent (prov.) in May 2020 as against 3.8 per cent growth in the corresponding period a year ago.

In view of nationwide lockdown during April and May 2020 due to Covid-19 pandemic, various industries viz. coal, cement, steel, natural gas, refinery, crude oil, etc.

experienced substantial loss of production. However, in the month of May 2020, eight core industries output improved in terms of a lower decline of -23.4 per cent compared with -37 per cent last year.

The eight core sector industrial output has contracted by 23.4 per cent (prov.) in May 2020 as against 3.8 per cent growth in the corresponding period a year ago.

However, the output decline in the month has been lower than that in April 2020 (37 per cent). The estimate for the month of April 2020 has been revised upwards from earlier 38.1 per cent de-growth to 37 per cent in the latest press release due to revision in cement and steel production.

During April-May 2020, the eight core industrial output grew contracted by 30 per cent compared with 4.5 per cent growth during the first two months of 2019-20 led by contraction in output across industries barring fertilizers (2 per cent growth).

Highlights:
Coal production declined by 14 per cent in May 2020 as against 1.7 per cent growth in May 2019 but has been lower than -15.5 per cent in April 2020. This is mainly due to poor demand owing to high coal stocks with the power stations.
Production of crude oil fell at faster pace by (-) 7.1 per cent compared with a decline by 6.9 per cent in the same month a year ago and -6.4 per cent a month ago. Low demand due to the Covid-19 pandemic, declining drawdowns from aging fields, closure of wells in Western offshore due to less off take by GAIL due to pandemic, restriction of movements for field operations in onshore fields amidst lockdown led to decline in production. A blow out incident at oil field in Assam on May 27, 2020 was weighed on production.
Natural gas output too has contracted by 16.8 per cent yoy, higher than the -0.1 per cent de-growth in May 2019 due to no gas off take by consumers in onshore due to Covid-19 lockdown.
Output of petroleum refinery products, which has higher weightage in eight core industries, contracted by 21.3 per cent compared with -1.5 per cent growth in the same month a year ago. The major reason for lower production of petroleum products is lower due to lower demand due to impact of COVID-19 lockdown.
Fertilizers production has grown by considerable 7.5 per cent in May 2020 as against a 1 per cent decline in May 2019 and -4.5 per cent in April 2020. Early onset of monsoon and pick up in kharif sowing has led to increase in production to meet improved demand.
Steel production registered de-growth by 48.4 per cent compared with 13.3 per cent growth in the corresponding month a year ago due to low demand from auto and construction sector. However, it showed signs of improvement than that in April 2020 backed by renewed domestic demand from easing in the lockdown restrictions and improved exports.
Cement production contracted by 22.2 per cent as against 2.8 per cent growth in May 2019. The decline in production was lower than that in April 2020. Although the construction activities resumed partially with ease in lockdown restriction, lower demand ahead of monsoon arrival weighed on production.
Electricity generation has decreased by 15.6 per cent compared with the 7.4 per cent growth in the same month a year ago, though it has improved marginally when compared with April 2020 aided by increase in demand for power by residents due to high temperatures and partial resumption of industrial activities after the ease in lockdown restrictions.

CARE Ratings’ view
In June 2020, core sector may show further signs of improvements as the country opened up some more economic activity including nonessential services, but will remain in negative zone. We may expect the industrial output growth based on IIP to remain in the negative bracket based on the eight core industries which has 40 per cent weightage in IIP.

Courtesy: Core Sector: May 2020

Footnote:
Authored by:
Dr. Rucha Ranadive, Economist
Email: rucha.ranadive@careratings.com |
Tel: 91-22-68374406

Madan Sabnavis, Chief Economist
Email: madan.sabnavis@careratings.com |
Tel: 91-22-68374433

Disclaimer: This report is prepared by CARE Ratings. 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.

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Concrete

Wonder Cement appoints Mahesh Singh as VP Corporate Brand Communication 

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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. 

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Concrete

JSW Cement commissions additional 1 MTPA grinding unit at Nagaur

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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.”

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Concrete

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

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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.

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