Concrete

Core sectors output remain negative

Published

5 years ago

July 1, 2021

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In December 2020, the eight core sectors output growth remained in a negative trajectory for the 10th successive month with a contraction of 1.3 per cent during the month compared with negative growth of 1.3 per cent during November 2020 and 3 per centin December 2019. There has been an upward revision in the core sector output growth in November from -2.6 per cent to -1.4 per cent.

Barring coal and electricity, all other components of the core index continue to show de-growth. The cumulative index of eight core sector during April ??December 2020 contracted by 10.1 per cent indicative of the adverse impact on industrial production during the lockdown period compared with the 0.6 per cent growth in the corresponding period of last year. Barring fertiliser, there was a broad based contraction across sectors during this period. Double digit decline in output during this period is recorded in natural gas, refinery, steel and cement.

Key highlights:

Coal production growth grew by 2.2 per cent in December 2020, which is the slowest in the last 5 months. Coal production has recorded positive growth which indicates revival in demand for power post easing in lockdown and resumption of industrial activities.
Crude Oil production has fallen by 3.6 per cent in December 2020 due to COVID-19 restrictions/lockdown, nonavailability of drilling equipment and less than planned contribution from workover wells, drilling wells and old wells. The negative growth in crude oil production has sustained for nearly 3 years.
Natural gas production in the country fell by 7.1 per cent in December largely due to a fall in output of western offshore fields of private/JV companies. This is the 19th consecutive month of de-growth in natural gas production.
Refinery production has fallen by 2.7 per cent and fall in production has been narrowing with each passing month with the easing of restrictions and as the economy has been slowly reflating. There has also been an increase in refinery utilisation during December ??0 which is now 101 per cent and this can be ascribed to the increase in demand for petroleum products as there is an uptick in economic activities. The month of December 2020 saw growth in consumption of LPG 7.4 per cent, Petrol (MS) 9.3 per cent, Bitumen 20.9 per cent, Lubes & Greases 8.5 per cent, Light Diesel Oil (LDO) 87.4 per cent and products categorised under ??thers??8.4 per cent compared with December 19.
Fertilizer production has fallen by 2.9 per cent due to a high base effect and as the rabi sowing season almost comes to an end.
Output of steel sector has contracted for the second consecutive month by 2.7 per cent in December after registering three consecutive month of positive growth during Aug-October 2020. Low demand from automobile sector and high raw material costs and relatively muted construction activities in parts of the country must have weighed on the steel production.
Cement production fell to a 4-month low falling by 9.7 per cent in December 2020 compared with -7.3 per cent in November 2020 and 5.4 per cent in December 2019. The fall can be ascribed to muted construction activities.
Electricity production grew by 4.2 per cent in December 2020 compared with 3.5 per cent in November 2020 on account of further normalisation of economic activity.

CARE Ratings??View

Going ahead, the growth in the eight core sectors will be contingent upon the normalisation of economic activities and high base effect. The growth in industrial production is likely to be marginally positive but will be contingent on the growth in consumer durables segment.

Courtesy: CARE Ratings

ABOUT THE AUTHOR:

The article is authored by Sushant Hede, Associate Economist with CARE Ratings. He can be contacted at: sushant.hede@careratings.com | +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

Nuvoco Vista Approves Bulk Cement Terminal In Gujarat

Board approves Viramgam terminal with rail siding

Published

12 hours ago

April 21, 2026

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Nuvoco Vista Corporation Ltd said its board has approved the setting up of a bulk cement terminal at Viramgam, Sachana in Gujarat. The proposed terminal will have a handling capacity of around one point five million tonnes per annum (mn tpa) and will include a dedicated railway siding. The facility is intended to improve unloading, storage and dispatch of both loose and packed cement.

The company said the rail connectivity and streamlined logistics are expected to position the terminal as a key distribution hub for the Gujarat market. The installation is aimed at reducing transit times and improving inventory turns while supporting distribution to trade and retail channels. The investment is presented as part of the company’s broader network optimisation.

The company indicated the project is expected to be commissioned by the financial year 2027-28. Nuvoco reported its highest-ever consolidated sales volume of 20.4 mn t in the year, representing a five per cent year-on-year rise. The firm said revenue and profitability also reached record levels, supported by improved realisations and operational efficiencies.

The premium product mix continued to strengthen and contributed 43 per cent to overall sales while the trade segment accounted for 74 per cent. Earnings before interest, tax, depreciation and amortisation saw a 35 per cent year-on-year increase for the full year. For the fourth quarter consolidated volume stood at six mn t, with EBITDA up six per cent year-on-year, making it the company’s most profitable quarter.

Nuvoco Vista Corporation Ltd is described as one of India’s leading cement and concrete manufacturers with a consolidated capacity of 25 mn tpa. The company offers cement, ready-mix concrete and other building materials and intends to use the Viramgam terminal to strengthen its regional presence.

Concrete

Cement Margins to Erode as Energy Costs Rise: CRISIL

CRISIL warns of 150–200 bps margin decline this fiscal

Published

5 days ago

April 17, 2026

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Crisil Intelligence (CRISIL) released a report on April 13, 2026, indicating Indian cement manufacturers face margin erosion of 150–200 basis points this fiscal, reducing operating margins to between 16 per cent and 18 per cent. The firm noted that this represents a reversal from the prior year when margins expanded by 260–280 basis points. The analysis attributed the shift to rising input costs despite steady demand.

The report said that power and fuel, which typically account for about 26–28 per cent of production cost, are expected to increase by 10–12 per cent year on year, driven by higher prices for crude oil, petroleum coke and thermal coal. Brent crude was assessed as likely to trade between $82 and $87 per barrel, and industrial diesel prices rose by 25 per cent in March, raising logistics and procurement expenses. Such increases have therefore heightened cost pressures across the value chain.

Producers plan to raise selling prices by one–three per cent, which would put the average retail price of a cement bag at around Rs355–Rs360, according to the report. CRISIL’s director Sehul Bhatt was cited as saying that these hikes will at best offset a four–six per cent rise in production costs, leaving little room for higher profitability. The report added that intense competition and continual capacity additions constrain the extent to which firms can pass on costs.

Demand conditions remain supportive, with CRISIL projecting volume growth of six point five–seven point five per cent this fiscal on the back of accelerated infrastructure projects and steady industrial and commercial consumption. Nonetheless, the pace of recovery is sensitive to developments in West Asia, the speed of government infrastructure execution and monsoon performance. The agency noted that any further escalation in energy prices or delays in project execution would widen margin pressures.

Overall, the sector will continue to grow but with compressed margins as energy cost inflation outpaces the limited ability to raise prices. Investors and policymakers will therefore monitor both input cost trajectories and policy measures aimed at alleviating supply chain constraints.

Concrete

Haver & Boecker Niagara to showcase solutions at Hillhead

Focus on screening tech, diagnostics and quarrying efficiency

Published

5 days ago

April 17, 2026

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Haver & Boecker Niagara will showcase its mineral processing technologies at Hillhead 2026, scheduled from June 23–25 in Buxton, UK.

At Stand PA3, the company will present its end-to-end solutions including screeners, screen media and advanced diagnostics, with a focus on improving efficiency, uptime and throughput for aggregates producers.

Highlighting its screen media portfolio, the company will feature Ty-Wire media with hybrid design offering up to 80 per cent more open area, alongside FLEX-MAT® solutions designed to enhance wear life and throughput while reducing blinding and clogging.

The showcase will also include its PULSE Diagnostics suite, comprising vibration analysis, condition monitoring and impact testing, aimed at assessing equipment health and preventing unplanned downtime.

Commenting on the event, Martin Loughran, Sales Manager, UK & Ireland, said, “Hillhead presents an excellent opportunity for us to demonstrate how we deliver innovative technologies along with long-term service and technical support.”

The company will also highlight its Niagara F-Class vibrating screen, designed to reduce structural vibration and improve operational reliability under demanding conditions.

The participation reflects Haver & Boecker Niagara’s focus on supporting quarrying operations with advanced screening solutions and predictive maintenance technologies.