Concrete

Cement industry to witness improved demand from July 2021

Published

5 years ago

March 5, 2021

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According to CARE Ratings, the demand for cement will improve in a calibrated manner from July 2021 onwards. CARE Rating states that a double-digit cement volume growth seems unlikely at present for FY22, considering the uncertainty for the constantly evolving covid situation in the country. However, it also states that the profitability for cement players expects to remain healthy during FY22, considering the factors such as expected higher volumes and continuing pricing power enjoyed by cement companies which are likely to balance the cost pressures considerably. In terms of debt, most of the cement companies will be seen to continue their focus on strengthening their balance sheet during FY22. Moreover, report says that profits for FY22 will remain moderate due to increasing input costs for pet coke, diesel, coal, and packing materials, etc.

Today, the economic conditions of our country remain volatile. Considering this into account, the unlocking process that was earlier predicted for May 2021, has now been pushed to July 2021. This has affected the overall demand for cement for Q1FY22. The second wave came with a lot of uncertainties and shattered the overall demand during the last quarter of FY21. On the one hand, we see that the supply constraints are low because of the reopening of operations for the cement manufacturing companies; however, with a higher rate of infection in the rural areas, the demand for cement from rural got weaker.

CARE Ratings expects that for FY22, the domestic cement production may grow by around 4%-7% y-o-y after two consecutive years of de-growth against the initial estimate of 11%-14%. Demand for cement will directly depend on factors like the government?? push and spending towards infrastructure creation and development, pent-up urban demand, and continuing rural demand. However, the severity of ongoing pandemic will have direct impact on the timelines for demand revival for the cement industry.

Looking at Q1FY21, which was severely hit by the pandemic, the industry witnessed a swift recovery wherein domestic cement production reached 88% of pre-Covid levels (i.e., 88% of Q2FY20, states CARE Rating report. It further reports that during Q2FY21 and for Q3FY21, production was 96% of the corresponding period the previous year. Monthly domestic cement reached pre-Covid levels during March 2021 and was approximating to March 2019 levels. Overall, the domestic cement production has fallen by 12% during FY21 vis-?-vis FY20 as against the initial estimate of de-growth of 25%-30% made in April 2020.

For FY22, CARE Ratings estimates its entire portfolio of investment-grade cement companies will report stable performance with the aggregate rated debt of around Rs.23,964 crore. Most cement companies will be focusing on strengthening their balance sheets. However, it also states that the profitability for cement players is expected to remain moderate during FY22, due to increasing input costs especially for pet coke, diesel, coal, and packing materials, etc. Furthermore, CARE Rating also states that the liquidity for a majority of the CARE-rated investment grade portfolio is likely to remain strong or adequate in FY 2022.

Some of the key drivers identified by CARE Rating are-

Positives

Increased capital outlay towards infrastructure creation by 26% to Rs.5.54 lakh crore
Enhanced outlay of Rs.1,18,101 crore for MoRTH of which Rs. 1,08,230 crore is for capital.
Central Counterpart Funding to various metros aggregating to Rs.88,059 crore
Proposals to further incentivize and boost affordable housing.
Pent up urban demand and continuing rural demand.

Negative

Slow pick up of demand with ongoing Covid II
Increase in input costs
Excess capacities

Concrete

NBCC Wins Rs 550m IOB Office Project In Raipur

PMC Contract Covers Design, Execution And Handover

Published

5 days ago

January 20, 2026

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State-owned construction major NBCC India Ltd has secured a new domestic work order worth around Rs 550.2 million from Indian Overseas Bank (IOB) in the normal course of business, according to a regulatory filing.

The project involves planning, designing, execution and handover of IOB’s new Regional Office building at Raipur. The contract has been awarded under NBCC’s project management consultancy (PMC) operations and excludes GST.

NBCC said the order further strengthens its construction and infrastructure portfolio. The company clarified that the contract is not a related party transaction and that neither its promoter nor promoter group has any interest in the awarding entity.

The development has been duly disclosed to the stock exchanges as part of NBCC’s standard compliance requirements.

Concrete

Nuvoco Q3 EBITDA Jumps As Cement Sales Hit Record

Premium products and cost control lift profitability

Published

6 days ago

January 19, 2026

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Nuvoco Vistas Corp. Ltd reported a strong financial performance for the quarter ended 31 December 2025 (Q3 FY26), driven by record cement sales, higher premium product volumes and improved operational efficiencies.

The company achieved its highest-ever third-quarter consolidated cement sales volume of 5 million tonnes, registering growth of 7 per cent year-on-year. Consolidated revenue from operations rose 12 per cent to Rs 27.01 billion during the quarter. EBITDA increased sharply by 50 per cent YoY to Rs 3.86 billion, supported by improved pricing and cost management.

Premium products continued to be a key growth driver, sustaining a historic high contribution of 44 per cent for the second consecutive quarter. The strong momentum reflects rising brand traction for the Nuvoco Concreto and Nuvoco Duraguard ranges, which are increasingly recognised as trusted choices in building materials.

In the ready-mix concrete segment, Nuvoco witnessed healthy demand traction across its Concreto product portfolio. The company launched Concreto Tri Shield, a specialised offering delivering three-layer durability and a 50 per cent increase in structural lifespan. In the modern building materials category, the firm introduced Nuvoco Zero M Unnati App, a digital loyalty platform aimed at improving influencer engagement, transparency and channel growth.

Despite heavy rainfall affecting parts of the quarter, the company maintained improved performance supported by strong premiumisation and operational discipline. Capacity expansion projects in the East, along with ongoing execution at the Vadraj Cement facilities, remain on track. The operationalisation of the clinker unit and grinding capacity, planned in phases starting Q3 FY27, is expected to lift total cement capacity to around 35 million tonnes per annum, reinforcing Nuvoco’s position as India’s fifth-largest cement group.

Commenting on the results, Managing Director Mr Jayakumar Krishnaswamy said Q3 marked strong recovery and momentum despite economic challenges. He highlighted double-digit volume growth, premium-led expansion and a 50 per cent rise in EBITDA. The company also recorded its lowest blended fuel cost in 17 quarters at Rs 1.41 per Mcal. Refurbishment and project execution at the Vadraj Cement Plant are progressing steadily, which, along with strategic capacity additions and cost efficiencies, is expected to strengthen Nuvoco’s long-term competitive advantage.

Concrete

Cement Industry Backs Co-Processing to Tackle Global Waste

Industry bodies recently urged policy support for cement co-processing as waste solution

Published

1 week ago

January 15, 2026

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Leading industry bodies, including the Global Cement and Concrete Association (GCCA), European Composites Industry Association, International Solid Waste Association – Africa, Mission Possible Partnership and the Global Waste-to-Energy Research and Technology Council, have issued a joint statement highlighting the cement industry’s potential role in addressing the growing global challenge of non-recyclable and non-reusable waste. The organisations have called for stronger policy support to unlock the full potential of cement industry co-processing as a safe, effective and sustainable waste management solution.

Co-processing enables both energy recovery and material recycling by using suitable waste to replace fossil fuels in cement kilns, while simultaneously recycling residual ash into the cement itself. This integrated approach delivers a zero-waste solution, reduces landfill dependence and complements conventional recycling by addressing waste streams that cannot be recycled or are contaminated.

Already recognised across regions including Europe, India, Latin America and North America, co-processing operates under strict regulatory and technical frameworks to ensure high standards of safety, emissions control and transparency.

Commenting on the initiative, Thomas Guillot, Chief Executive of the GCCA, said co-processing offers a circular, community-friendly waste solution but requires effective regulatory frameworks and supportive public policy to scale further. He noted that while some cement kilns already substitute over 90 per cent of their fuel with waste, many regions still lack established practices.

The joint statement urges governments and institutions to formally recognise co-processing within waste policy frameworks, support waste collection and pre-treatment, streamline permitting, count recycled material towards national recycling targets, and provide fiscal incentives that reflect environmental benefits. It also calls for stronger public–private partnerships and international knowledge sharing.

With global waste generation estimated at over 11 billion tonnes annually and uncontrolled municipal waste projected to rise sharply by 2050, the signatories believe co-processing represents a practical and scalable response. With appropriate policy backing, it can help divert waste from landfills, reduce fossil fuel use in cement manufacturing and transform waste into a valuable societal resource.