Economy & Market

Core sector output shrinks 4.6% in Feb 2021

Published

6 years ago

March 5, 2021

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The eight core sector output fell sharply by 4.6 per cent in February 2021 compared with a high base of 6.4 per cent in the corresponding month last year. After five consecutive months of weak production in the core sector, there has been a notable fall in February 2021 with a broad-based decline across all 8 components of the core sector. The decline in February has been led by sharp contraction in the refinery products followed by decline in cement and coal production. There has been a marginal upward revision in the January 2021 provisional estimate to 0.9 per cent (0.2 per cent was the previous estimate for January 2021).

The cumulative index of eight core sector during April-February 2021 registered a de-growth of 8.3 per cent on account of the nationwide lockdown imposed in March, which adversely impacted the industrial production especially during the first half of this fiscal, compared with positive growth of 1.3 per cent in the corresponding period last year. All sectors except fertilisers contracted during this current fiscal so far. The impact of the COVID-19 pandemic has been immense on the production of the eight-core sector with double digit contraction registered in refinery, steel and cement.

Key highlights

Coal production contracted for the second consecutive month and this is the highest fall in the last 6 months. The decline in coal production in February was 4.6 per cent on account of a high base effect (11.3 per cent in February 2020) and high level of coal inventories with both coal producers and power plants. Low power generation has also had a bearing on the fall of coal production.
Crude oil production and natural gas production fell by 3.2 per cent and 1 per cent respectively in February 2021 primarily on account of fall in the output of fields belonging to national oil companies. This is the 21st consecutive month of decline in crude oil production while 12th consecutive month of fall for natural gas production.
Refinery production declined sharply to a 4-month low of 10.9 per cent in February compared with 2.6 per cent in January 2021. The This year-on-year fall can be attributed to a high base effect (7.4 per cent in February 2020) coupled with sharp fall in crude throughput owing to lower number of days in February and fall in the demand for petro products. In addition, subtle transition toward public transport and rise in number of cases has led to the fall in crude throughput. Capacity utilisation in case of refinery companies was at 89 per cent, which has fallen after 5 consecutive months of increase.
Fertilisers production to a 10-month low of 3.7 per cent in February primarily because the rabi season has come to an end. The negative growth in steel and cement shows that demand for infrastructure has not yet picked up. Steel output fell by 1.8 per cent in February 2021 as against a positive growth of 6.2 per cent in January 2021. The contraction in steel production has been on account of lower buoyancy shown by user industries. Cement output which fell by 5.5 per cent in February 2021 has witnessed 4 consecutive months of contraction. The contraction in cement production has been on account of a high base effect (7.8 per cent in February 2020), only gradual pick-up in construction activities and limited activity in the real-estate segment.
Electricity production dipped marginally for the first time after 5 consecutive months of positive growth. The fall in electricity production by 0.2 per cent in February 2021 is indicative of low growth in demand from the commercial sector including manufacturing and services.

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A sharp decline in the core sector output in February means that IIP, which includes around 40 per cent of the core sector components, is likely to witness a fall in the range of 1.5 per cent to 3 per cent in February 2021. It would be interesting to see the movement from March onwards in case of core sector growth as March 2020 was the first month of sharp decline in all industrial activity and witnessed sharp double digit contraction till June 2020. A favourable base effect is likely to support core sector growth in the coming few months. A lockdown at national level for a week will be however counter pressured by localised lockdowns this time around.

Courtesy: CARE Ratings

ABOUT THE AUTHOR:

Sushant Hede, Associate Economist

Email: Sushant.hede@careratings.com | Tel: 91-22-6837 4348

Disclaimer: This report is prepared by CARE Ratings Limited. 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.

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 at Nagaur

Published

4 days ago

October 8, 2026

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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.”

Concrete

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

Published

5 days ago

October 7, 2026

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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.