Connect with us

Economy & Market

Output soars on statistical base effect

Published

on

Shares

The core sector data should not be taken at face value as they come over unusual circumstances in 2020. A better way would be to compare over March even though there are seasonal influences.

In April 2021, the eight core sectors registered a double-digit output growth of 56.1 per cent compared with 11.4 per cent growth in March 2021. The high growth in output can be attributed to a low base effect (-37.9 per cent in April 2020) as the nation-wide lockdown imposed last year brought production activities to a standstill resulting in huge output losses. The expansion in April has been led by an exponential growth in output of steel and cement. All sectors except crude oil have witnessed positive growth during the month.

However, the core sector output has been lower by 15.1 per cent in April 2021 over the March 2021 level with a broad-based contraction across all segments on a month-on-month basis. For March 2021, the core sector growth has been revised upwards from 6.8 (prov.) to 11.4 per cent (first revision) on account of improved coal production.

Key highlights

Coal production rose to a six-month high of 9.5 per cent in April 2021, higher than 0.3 per cent in March 2021 and -15.5 per cent in April 2020. However, coal production was lower sequentially in April 2021 compared with March 2021. The second wave of Covid-19 pandemic impacted production of coal as large number of employees tested positive for virus in state-run CIL.

Crude oil production witnessed a de-growth of 2.1 per cent in April 2021 compared with -6.4 per cent growth in the corresponding month last year. This fall can be ascribed to the less than planned contribution from workover wells, drilling wells and old wells by government owned oil companies. Production by private/joint venture companies was marginally lower on YoY basis, due to few wells being under maintenance, and some not producing due to possible casing damage, snapped/unscrewed sucker rod string and unavailability of effective demulsifier.

Natural gas production rose by 25 per cent in April 2021 as against a contraction of 19.9 per cent in April 2020 as output from fields operated by the private sector and joint ventures tripled and bulk of this came from eastern offshore fields. However, production by ONGC was flattish during the month.

Refinery production was in the positive territory for the first time in 13 successive months. Output in this segment grew by 30.9 per cent in April 2021 as against negative growth of 24.2 per cent in April 2020. Of these, major products that witnessed a rise in production during the month were LPG, Naptha, petrol, petcoke, bitumen, while products that saw a fall in production were superior kerosene oil and furnace oil.

Fertilisers production in April 2021 grew by 1.7 per cent over -4.5 per cent in the corresponding month last year. This lower output growth is reflective of the limited impact of coronavirus led disruptions on this segment in April 2020. Fertilizers production in April was 5.4 per cent lower when compared to March as the demand for fertilizers did not pick up because Kharif sowing doesn?? start in April.

Steel output saw exponential growth of 400 per cent in April 2021 compared with negative growth of 82.8 per cent in April 2020. However, sequentially steel production fell by 20.6 per cent. The rising coronavirus cases across the country, labour exodus and the diversion of liquid oxygen to hospitals for coronavirus patients impacted steel production during April 2021.

Cement production on a year-on-year basis increased by 548.8 per cent in April 2021 over -85.2 per cent April 2020. Monthly cement production declined by 15.2 per cent in April 2021 compared to March 2021 as the uptick seen in infrastructure and construction activities since H2-FY21 witnessed a slowdown due to recent spike in Covid-19 cases and subsequent imposition of localised restrictions from April 2021. Even the rural demand that had aided growth in demand last year seems to be affected by the second wave of Covid-19.

Electricity production increased by 38.7 per cent in April 2021, higher than 22.5 per cent in the previous month and -22.9 per cent in the corresponding month last year primarily on account of a low base effect as demand for electricity from the commercial sector was dampened by the disruption in economic activities in April last year. The growth in output witnessed in this segment during the month is the highest in the new series with the base year 2011-12.

CARE Ratings??View

As expected the core output for April 2021 has been elevated on the back of a statistical base effect. The trend is likely to continue in the months ahead owing to output disruptions of May 2020 and slow pick-up in production following resumption of economic activities in June and July last year. The index of industrial production for April 2021 is likely to be high given the double-digit contraction of 57.3 per cent witnessed in the corresponding month last year.

Courtesy: CARE Ratings

ABOUT THE AUTHOR:

Akanksha Bhende, Associate Economist with CARE Ratings.

Disclaimer: This report is prepared by CARE Ratings. 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.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Concrete

Wonder Cement appoints Mahesh Singh as VP Corporate Brand Communication 

Published

on

By

Shares

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. 

Continue Reading

Concrete

JSW Cement commissions additional 1 MTPA grinding unit at Nagaur

Published

on

By

Shares

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.”

Continue Reading

Concrete

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

Published

on

By

Shares

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.

Continue Reading

Video Thumbnail
▶

    SIGN-UP FOR OUR GENERAL NEWSLETTER

    Trending News

    SUBSCRIBE TO THE NEWSLETTER

     

    Don't miss out on valuable insights and opportunities to connect with like minded professionals.

     


      This will close in 0 seconds