Concrete

Core sectors output grew marginally by 0.1% in Jan 2021

Published

6 years ago

March 5, 2021

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In January 2021, the eight core sectors output grew marginally by 0.1 per cent compared with 0.2 per cent in December 2020 and 2.2 per cent in the corresponding month last year. The growth in the last two months has been positive albeit anaemic and to some extent this reflects weakness in the physical production. There has been a broad based decline across all sectors except fertilisers, steel and electricity. The core sector output for December 2020 has been revised upwards from -1.25 per cent to 0.2 per cent.

The cumulative index of eight core sector during April-January 2021 registered a de-growth of 8.8 per cent on account of the nation-wide lockdown imposed in March which adversely impacted the industrial production compared with positive growth of 0.8 per cent in the corresponding period last year. All sectors except fertilisers contracted during this period. Double digit contraction was registered in natural gas, refinery, steel and cement.

Key highlights

Coal production contracted by 1.8 per cent registering de-growth for the first time in the last five months, primarily on account of a high base effect.

Crude oil production fell by 4.6 per cent in January 2021. Technical mishaps due to COVID-19 implications, reservoir issues and shut in of wells and delays in field development activities have led to the fall in production. Domestic production has been falling with the ageing of existing fields and muted response from the industry to take up new projects, mainly due to lack of adequate incentives. Moreover, higher import of crude oil and limitations on domestic exploration have weighed on the crude oil production.

Natural gas production contracted by 2 per cent in January 2021 mainly due to a fall in output of a major gas producer/explorer. Though it continued to remain in the negative territory there has been a sequential improvement in output compared with -7.2 per cent growth in the previous month.

Refinery production fell by 2.6 per cent in January 2021. Refinery production continued to remain in the negative territory for the 11th consecutive month. However, refinery capacity utilisation for the month was 105 per cent and it has been improving with each passing month indicating that the economy is slowly reflating and getting back to normalcy.

Fertilisers production registered a growth of 2.7 per cent in January 2021. Increase in fertilizer production can be ascribed to build-up of stocks by companies and increase in production of Complex fertilizers and DAP. The demand for these fertilizers is usually high during the rabi season.

Steel output grew by 2.6 per cent after contracting over November-December 2020. Higher automotive sales, robust demand from rural segment on the back of good monsoon and government spending on infrastructure has led to faster ramp up in production levels.

Cement output registered a de-growth of 5.9 per cent in January 2021. Slow pick up in institutional government projects is the key reason for this fall.

Electricity production grew by 5.1 per cent registering positive growth for the 5th consecutive month as a result of recovery in business sentiment and services.

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Going ahead the growth in the eight core sectors will be conditional upon the pace of economic recovery and high base effect. However, there continues to be uncertainty over re-imposition of Covid-19 restrictions amid rising level of infections. The IIP growth for the month can be positive (but less than 1 per cent) contingent upon support by consumer oriented industries.

Courtesy: CARE Ratings

ABOUT THE AUTHOR:

Akanksha Bhende, Associate Economist, CARE Ratings

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

Cement Prices Likely to Rise Rs. 10-15 per Bag from Mid-October

Input costs and steady demand may drive cement price increases

Published

17 hours ago

October 14, 2026

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Cement manufacturers in India are likely to raise prices by Rs. 10-15 per bag from mid-October, as they seek to offset persistent increases in power and fuel costs. Emkay Research said its channel checks indicated a high probability of an increase from October 12, supported by the start of the busy construction season and favourable demand-supply conditions.

The sector had implemented similar rate adjustments of Rs. 10-15 per bag during the first quarter, but the increases were insufficient to cover higher operating costs. Prices also softened during July and August because of the monsoon, widening the gap between realisations and input expenses. Delayed plant expansion programmes have pushed clinker utilisation rates towards 79 per cent by FY28, helping to balance market fundamentals.

Emkay Research said steady volume offtake was supporting cement consumption, with non-trade demand driving activity across regional markets. Industry volumes are expected to grow by 7-8 per cent year on year during the first half of FY27, while demand momentum is projected to remain firm over the following 18 months. The outlook includes the busy construction season in the second half of FY27 and infrastructure activity linked to general elections in the first half of calendar year 2029.

The brokerage expects overall cement demand to record a compound annual growth rate of about 7 per cent between FY26 and FY28. However, elevated operating expenses are likely to continue weighing on profitability. Input costs have risen by Rs. 300-400 per t over the past six to seven months, with the full impact expected to become visible in second-quarter earnings and remain persistent through the second half of FY27.

Spot prices for petcoke and imported coal are approximately 20 per cent and 16 per cent above their second-quarter averages, at USD 175 per t and USD 150 per t, respectively. Packing costs have also increased, with polypropylene granule prices rising above Rs. 135 per kg. Emkay Research estimated that second-quarter earnings could decline by Rs. 200-250 per t sequentially because of higher fuel bills and negative operating leverage, and said the sector requires sustained price increases of about Rs. 10 per bag to offset cost inflation.

Concrete

Nuvoco Marks 10 Years, Targets 35 MMTPA Capacity by FY28

Nuvoco celebrates a decade of growth, targeting 35 MMTPA cement capacity by FY28.

Published

2 days ago

October 13, 2026

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Nuvoco Vistas Corporation Limited is celebrating a decade of operations under the theme ‘Dus Saal Bemisaal’, highlighting its expansion in India’s building materials sector. The company has grown from a single cement manufacturing facility into a diversified organisation operating across cement, ready-mix concrete (RMC) and modern building materials.

The company’s journey began in 2014 when its parent, Nirma Group, commissioned a 2 million metric tonnes per annum (MMTPA) greenfield cement plant at Nimbol, Rajasthan. A major milestone followed in October 2016 with the acquisition of Lafarge India, significantly expanding its manufacturing footprint.

Nuvoco strengthened its market presence through the acquisition of Emami Cement, now NU Vista Limited, in 2020, followed by its public listing in 2021. In April 2025, the company added Vadraj Cement to its portfolio, strengthening its presence in western India.

Nuvoco has an operating cement capacity of 27 MMTPA and 14 manufacturing units, including the Kutch and Sachana facilities in Gujarat, which are in advanced stages of completion. It also operates 58 ready-mix concrete plants across India and offers a range of modern building materials.

The company aims to increase its cement capacity to 35 MMTPA by FY2027-28, representing approximately 15-fold growth over the decade.

Reflecting on the milestone, Hiren Patel, Chairman, Nuvoco Vistas Corporation Limited, said, “From our beginnings at Nimbol to the organisation we are today, every milestone has added a new chapter to Nuvoco’s journey and strengthened our belief in building for the long term.”

The company continues to focus on capacity expansion, operational efficiency, innovation and sustainability while strengthening its position in India’s construction materials market.

Concrete

J&K Government Notifies City Gas Distribution Policy

Policy targets PNG and CNG expansion across all 20 districts

Published

2 days ago

October 13, 2026

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Jammu and Kashmir government has notified the City Gas Distribution (CGD) Policy, 2026, following its approval by the Council of Ministers headed by Chief Minister Omar Abdullah. The policy sets out a phased framework for expanding Piped Natural Gas (PNG) and Compressed Natural Gas (CNG) access for households, businesses, industries and the transport sector across the Union Territory.

CGD networks will be expanded in phases across all 20 districts, with the aim of bringing reliable natural gas closer to consumers and supporting a gradual shift from conventional fuels. The government said the policy is designed to improve energy access while creating an investor-friendly and time-bound environment for gas distribution projects.

The policy provides for single-window and time-bound clearances, streamlined procedures for setting up CNG stations and standardised norms for the Right of Way. These measures are intended to reduce procedural delays, simplify project implementation and facilitate investment in natural gas infrastructure.

It also prioritises gas connectivity for major industrial estates, including those in Kathua, Samba and Pulwama. Improved access to natural gas is expected to support industrial activity, enhance energy efficiency and help businesses manage fuel costs, while strengthening their competitiveness and encouraging investment in the clean-energy sector.

The policy is also expected to create opportunities for local employment, apprenticeships and skill development in the construction, operation and maintenance of gas distribution networks and related services. Abdullah described the measure as an important step towards cleaner growth, sustainable development and a modern energy ecosystem in Jammu and Kashmir, saying it would expand reliable energy access and support industry and investment.