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Sharp rise in input cost dents cement firms’ profitability

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Power and fuel, and freight expenses account for 50-55 per cent of the total costs for cement manufacturers and the cost of production is likely to be higher by 3-4 per cent year-on-year during the current quarter.

A significant increase in input costs has resulted in a steady increase in cement prices across India over the current quarter. However, the rise in retail prices is unlikely to benefit cement companies in the short term. In fact, cement manufacturers are likely to see an impact on their profitability during the quarter, say analysts tracking the sector.

According to research agency ICRA, cement companies have already undertaken price hikes to the tune of around 7 per cent on average year-on-year (3 per cent-8 per cent month-on-month) during March 2021 due to the increase in input costs. ??his hike is driven by the increase in the input costs, primarily power and fuel expenses and freight expenses over the last few months. Further, the prices are likely to largely sustain in the near term supported by the healthy rural demand and the significant uptick in infrastructure activity,??it said in a report.

Power and fuel, and freight expenses account for 50-55 per cent of the total costs for cement manufacturers and the cost of production is likely to be higher by 3-4 per cent year-on-year during the current quarter. Coal prices have also increased from $49 per tonne in September 2020 to $88 per tonne in February 2021, and $84 per tonne in March 2021.Pet coke, another key input resource for cement, has seen prices reach Rs 12,600 per tonne in March 2021 from Rs 8,000 per tonne in September 2020. In the fourth quarter of FY21, these prices have been higher by 73 per cent year-on-year and 29 per cent quarter-on-quarter.

The increase in the power and fuel expenses caused by higher pet coke prices and the rise in freight expenses due to higher diesel prices has resulted in a decline in cement companies??operational profit margins by 8.7 per cent compared to the previous quarter. This figure has been declining since the second quarter of the previous year??alling 7.6 per cent quarter-on-quarter in Q2 FY21 and a 9 per cent quarterly fall in Q3 FY21.

??hile the cement prices are likely to largely sustain driven by the significant uptick in the demand, the higher input costs due to the increasing crude oil prices are likely to result in moderation of PBIDTA/MT??With the decline in OPBIDTA/MT, the debt coverage metrics are expected to witness marginal deterioration in FY2022 – TD/OPBIDTA to 1.8x times from 1.6x times and interest cover to 6.4x times from 7.0x times in FY2021,??the ICRA report said.

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India, EU Resume Talks To Finalise Free Trade Agreement

High-level negotiators meet in Delhi to push balanced trade deal

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A senior delegation from the European Union (EU) is in New Delhi from 3 to 7 November 2025 to hold detailed discussions with Indian counterparts on the proposed India–EU Free Trade Agreement (FTA). The negotiations aim to resolve key pending issues and move closer to a comprehensive, balanced, and mutually beneficial trade framework.

The visit follows Union Minister of Commerce and Industry Piyush Goyal’s official trip to Brussels on 27–28 October 2025, during which he held forward-looking talks with European Commissioner for Trade and Economic Security Maroš Šef?ovi?. Both sides reaffirmed their commitment to intensify dialogue and strengthen cooperation towards finalising the FTA.

This week’s deliberations will focus on trade in goods and services, rules of origin, and technical and institutional matters, guided by the shared goal of creating a modern and future-ready trade pact that reflects the priorities and sensitivities of both India and the EU.

The discussions gained further momentum after a virtual meeting on 3 November 2025 between Minister Piyush Goyal, Commissioner Maroš Šef?ovi?, and EU Commissioner for Agriculture and Food Christophe Hansen, which helped align positions on key areas of mutual interest.

As part of the ongoing negotiations, Ms. Sabine Weyand, Director-General for Trade at the European Commission (EU DG Trade), will visit New Delhi on 5–6 November for high-level consultations with India’s Commerce Secretary Rajesh Aggarwal. The talks will address technical and policy matters critical to concluding the agreement.

The EU delegation’s visit underscores the shared determination of India and the European Union to conclude a fair, transparent, and equitable FTA, aimed at boosting trade, investment, innovation, and sustainable economic growth.

Both sides view the FTA as a strategic pillar in their partnership, capable of enhancing market access, creating new opportunities for businesses, and promoting a resilient and diversified global supply chain.

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Om Birla: World Sees India as a Key Investment Destination

Speaker says India’s democracy and growth draw global confidence

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Lok Sabha Speaker Om Birla on Thursday said that the world is increasingly looking to invest in India, drawn by its vibrant democracy, rapid economic expansion, and technological prowess. Speaking at the 125th Anniversary Celebrations of the Bharat Chamber of Commerce in Kolkata, themed “India@100: An Age of a New Dawn,” Birla said that under the visionary leadership of Prime Minister Narendra Modi, the nation is steadily advancing towards becoming a global economic powerhouse.

He emphasised the government’s commitment to building a business-friendly environment, driven by the principles of minimum government, maximum governance. The administration, he said, is focused on reducing bureaucratic hurdles, expanding industrial capacity, and encouraging innovation. Birla also urged the private sector to invest more in research and development (R&D) and strive to meet global standards, assuring that the government will complement such efforts to strengthen India’s innovation-led growth.

Praising the Bharat Chamber of Commerce, Birla called it a source of inspiration for business chambers across India. He lauded its 125-year legacy of resilience, foresight, and public service, recalling its origins as the Marwari Chamber of Commerce. The Chamber, he noted, has played a key role in India’s industrial, social, and economic transformation and in promoting corporate social responsibility.

Birla observed that India’s success as a democracy lies in its stability, inclusiveness, and deep cultural roots. “Democracy in India is not just a system of governance, but a way of life,” he said, adding that the nation’s robust institutions ensure policy continuity and investor confidence, both crucial for long-term growth.

He stressed that where democracy thrives, sound policy decisions and effective implementation follow, creating a foundation for sustainable development. Birla also highlighted India’s rise as a global innovation hub, driven by strong public–private partnerships in technology and R&D, which are propelling India into leadership positions in emerging industries.

Touching on inclusive growth, Birla noted that the increasing participation of women and youth reflects India’s social transformation. He highlighted women’s growing role across sectors and said they will remain pivotal in shaping a self-reliant and developed India. Similarly, he praised India’s youth and entrepreneurs for driving creativity, enterprise, and innovation, shaping the country’s future with energy and vision.

Reaffirming the vision of Atmanirbhar Bharat, Birla called for stronger collaboration among industry, government, and academia to build a resilient, self-sustaining economy. He also underlined India’s emerging leadership in clean and green energy, expressing confidence that the country will play a leading role in addressing climate and environmental challenges globally.

Acknowledging West Bengal’s historical contribution to India’s growth, Birla said the state has long been a cradle of intellectual, cultural, and industrial excellence. He noted that Bengal has produced eminent thinkers, reformers, poets, and industrialists, and continues to inspire the nation with its enduring spirit of innovation and enterprise.

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Mumbai Metro, Monorail Told To Submit Disaster Plans

BMC orders SOPs and drills to strengthen emergency preparedness

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The Brihanmumbai Municipal Corporation (BMC) has directed Mumbai’s monorail and metro operators to submit detailed emergency management plans and Standard Operating Procedures (SOPs) for review, as part of efforts to bolster the city’s overall disaster preparedness framework.

The directive was issued during a meeting of civic authorities responsible for disaster management, held at the BMC headquarters on Wednesday. The session was convened to assess Mumbai’s emergency response mechanisms following the monorail breakdown near Bhakti Park, Chembur, on 19 August, which left several passengers stranded for hours due to a technical malfunction.

Dr Vipin Sharma, Chairperson of the Mumbai Suburban District Disaster Management Authority and Additional Municipal Commissioner (Western Suburbs), emphasised that the city’s monorail and metro systems must be integrated comprehensively into Mumbai’s emergency management strategy. He noted that these rapidly expanding networks require independent consideration given their critical role in public mobility.

Dr Ashwini Joshi, Chairperson of the Mumbai City District Disaster Management Authority and Additional Municipal Commissioner (City), instructed that mock drills be held regularly at all metro and monorail stations to assess and enhance emergency response capabilities.

Meanwhile, Dr Amit Saini, Additional Municipal Commissioner (Eastern Suburbs), said the session was aimed at reviewing coordination and readiness among key agencies in light of Mumbai’s expanding transport infrastructure. He stressed the importance of inter-agency collaboration to ensure rapid and efficient response during emergencies.

Professor Dr Ravi Sinha from the Indian Institute of Technology (IIT) Bombay commended the coordinated handling of the August 19 monorail incident, which involved the BMC’s disaster management department, Mumbai Fire Brigade, and other civic response teams.

Officials concluded that strengthening communication channels, training exercises, and real-time coordination between agencies would be central to improving the city’s ability to respond swiftly to future incidents involving its transport systems.

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