Concrete

Core sectors output remain negative

Published

5 years ago

July 1, 2021

admin

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

UltraTech Cement Expands in Andhra Pradesh with Rs. 26.5 bn

Petnikota plant adds 3.6 MTPA cement dispatch capacity

Published

2 days ago

October 23, 2026

admin

UltraTech Cement has expanded its manufacturing footprint in Andhra Pradesh with the commissioning of Petnikota Cement Works, an integrated cement plant built with an investment of around Rs. 26.5 bn. The facility is located in Petnikota village in Kolimigundla mandal of Nandyal district, in the Rayalaseema region.

Construction of the plant began in May 2025. The facility has a clinkerisation capacity of 3.3 MTPA and a cement dispatch capacity of 3.6 MTPA, strengthening the company’s production and distribution presence in the State.

The plant is expected to provide direct employment to 650 people and indirect employment to another 2,000. It has been designed to operate entirely on green energy and does not have a captive thermal power plant. The project also uses no groundwater, according to information released by the Andhra Pradesh Government.

Nara Lokesh, Andhra Pradesh Minister for Information Technology, said in the release that the facility was taken from groundbreaking to commissioning in 14 months. He described the project as a state-of-the-art addition to the company’s operations in the State and said it would create 2,650 direct and indirect employment opportunities.

Petnikota Cement Works adds to UltraTech Cement’s manufacturing capacity in Andhra Pradesh while supporting industrial activity in Nandyal district. The plant’s energy design and stated groundwater-use policy are also intended to reduce the environmental impact of its operations. The company has identified the facility as part of its continuing capacity expansion in the Indian cement market.

Concrete

Nuvoco reports 13.5% revenue growth in Q2 FY27

Cement sales rose 9% to 4.7 MMT, while EBITDA increased 11%.

Published

2 days ago

October 23, 2026

admin

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.

The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.

On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid renewable energy project in Rajasthan. Once operational, the project is expected to generate about 100 million units of renewable electricity annually. The company expects it to reduce reliance on conventional power sources and improve long-term cost certainty across its Rajasthan operations.

Jayakumar Krishnaswamy, Managing Director, Nuvoco Vistas Corp. Ltd., said, “Q2 FY27 was a testament to resilient execution in a challenging operating environment. Despite intense and erratic rainfall in our key markets, global and regional logistics & supply chain disruptions, and elevated input costs stemming from ongoing geopolitical uncertainty, the Company delivered strong YoY growth in Revenue, EBITDA, and PAT. Our performance reflects the strength of our strategic levers of premiumisation and geographical mix optimisation, which helped realisations amid muted cement prices.”

He added, “During the quarter, the Company achieved a significant growth milestone with the successful commissioning of the 2 MMTPA Grinding Unit at Limla, Surat, underscoring our strong project execution capabilities. This achievement reinforces our confidence in delivering the remaining modules of the Vadraj Cement Project at Kutch and Sachana within the planned timelines. Looking ahead, while we remain mindful of evolving macroeconomic and geopolitical dynamics, we remain focused on operational excellence, accelerating premiumisation, optimising supply chain efficiencies, and executing our growth projects as planned.

Concrete

Meghalaya Cabinet Approves MCCL Closure, Writes Off Rs. 244.3 mn

Cabinet approves winding up of state-owned cement company

Published

6 days ago

October 19, 2026

admin

The Meghalaya Cabinet has approved the closure and winding up of Meghalaya Cherra Cement (MCCL), a state-owned cement company, with pending liabilities of approximately Rs. 244.3 mn to be written off as part of the process. The decision was announced by Chief Minister Conrad K Sangma on October 13, 2026.

The approved write-off comprises about Rs. 89 mn in sales tax dues and Rs. 155.3 mn in royalty dues. The Cabinet’s decision addresses the liabilities that remained after the company’s operations and enables the government to proceed with its formal closure.

Sangma said employee dues owed by MCCL had been settled in line with the state government’s commitment. The settlement of employee-related liabilities is a key part of the winding-up process and removes outstanding obligations to the company’s workforce.

The Chief Minister explained that MCCL is owned by the government, meaning the pending liabilities would otherwise involve transfers between the state government and its departments. Writing off the dues is intended to simplify the accounting and administrative steps required to complete the closure.

The decision is also intended to ensure that the winding-up does not create an additional financial burden for the state government. With employee payments settled and the sales tax and royalty liabilities addressed through the approved write-off, the Cabinet’s approval marks a further step towards completing the formal closure of MCCL.

The action follows the state government’s decision to discontinue the company and resolve its outstanding obligations through an orderly winding-up process. The approved measures cover the principal liabilities identified for settlement and allow the government to advance the remaining formal procedures associated with closing the state-owned enterprise.