Concrete

Cement industry to witness improved demand from July 2021

Published

6 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

JSW Cement Commissions 1 MTPA Unit in Rajasthan

Rajasthan grinding capacity rises to 3.50 MTPA after commissioning

Published

3 days ago

October 9, 2026

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JSW Cement has commissioned an additional 1 MTPA cement grinding unit in Nagaur, Rajasthan, taking the company’s total cement grinding capacity to 25.1 MTPA. The commissioning was announced on Tuesday, October 6.

The company said the new unit had increased the total cement grinding capacity at its Rajasthan plant to 3.50 MTPA. The expansion adds to JSW Cement’s production infrastructure as it continues to build capacity across its operating network.

The company’s total clinker manufacturing capacity, including capacity at its joint venture JSW Cement FZC, stands at 9.74 MTPA. Clinker is an intermediate material used in cement production, and its availability supports the company’s grinding operations.

JSW Cement is also pursuing a proposed merger of its listed subsidiary Shiva Cement with the company. The scheme, approved by the boards of the respective companies, involves issuing five fully paid-up JSW Cement equity shares for every 41 shares held by Shiva Cement shareholders other than JSW Cement.

The arrangement remains subject to shareholder and regulatory approvals. JSW Cement currently holds 66.23 per cent of Shiva Cement’s paid-up equity share capital, and the shares held by JSW Cement in the subsidiary will be cancelled under the proposal without any issue of JSW Cement shares against that holding.

The scheme has an appointed date of April 1, 2026, and the company has indicated that completion could take 12 to 14 months, depending on the receipt of approvals. These include clearances from stock exchanges, the Securities and Exchange Board of India, the National Company Law Tribunal and other applicable authorities, along with approvals from shareholders and creditors where required. JSW Cement shares closed at Rs. 113.15 on the BSE, up Rs. 2.05, or 1.85 per cent.

Concrete

Wonder Cement appoints Mahesh Singh as VP Corporate Brand Communication

Published

3 days ago

October 9, 2026

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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.

Concrete

JSW Cement commissions additional 1 MTPA grinding unit in Rajasthan

The Nagaur expansion takes JSW Cement’s total grinding capacity to 25.10 MTPA.

Published

4 days ago

October 8, 2026

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JSW Cement has commissioned an additional 1 million tonne per annum (MTPA) cement grinding unit at its Nagaur Integrated Plant in Rajasthan. The commissioning takes the company’s total cement grinding capacity to 25.10 MTPA.

JSW Cement’s total clinker manufacturing capacity, including its joint venture JSW Cement FZC, now stands at 9.74 MTPA.

The company began operations in North India in March 2026 with the Nagaur Integrated Plant, comprising a 3.30 MTPA clinkerisation unit and a 2.50 MTPA cement grinding unit. With the latest expansion, the plant’s total grinding capacity has increased to 3.50 MTPA.

The additional capacity will cater to cement demand across Rajasthan, Haryana, Punjab and the National Capital Region (NCR). The expansion has been funded through a combination of equity and long-term debt.

During the quarter ended September 30, 2026, JSW Cement also commissioned an Alternate Fuel Handling System and a Waste Heat Recovery System (WHRS) at the Nagaur plant.

Nilesh Narwekar, CEO, JSW Cement, said the additional grinding capacity was a strategic priority for the company’s expansion in North India. He added that the Alternate Fuel Handling System and WHRS were expected to reduce production costs.