Concrete

New cement association on the anvil

Published

4 years ago

July 1, 2021

admin

Cement and Steel producers are once again under the ire of government as union minister Nitin Gadkari indicated a brewing cartel in the two industries. Union Minister for Road Transport and Highways Nitin Gadkari has assured the Builders??Association of India (BAI) that he would look into their demand for a regulatory authority for the cement and steel sectors. He said the Central government is serious about curbing instances of cartelisation.

Expressing concern, Gadkari said he felt there is cartelisation in these industries. The minister made the comments while virtually interacting with the members and office-bearers of the BAI in the month of January 2021.

??e have taken serious note of it [cartelisation] and I have discussed this with the Prime Minister. Most steel companies own iron ore mines and with no increase in labour and power charges, why should there be an increase in steel prices? It is very difficult to understand,??the minister said.

Big players in the steel and cement industry are conspiring together to jack up prices, he said. The steel prices have risen by 55 per cent in the last six months, even though the cost of key inputs like raw materials and power remained the same.

“It will be difficult to achieve Prime Minister Modi?? dream of making India a $5 trillion economy if the steel and cement prices keep rising,” Gadkari had said. Cartel is a collection of companies in the same industry that collude together to control the price of a product/service.

This comes a month after the Competition Commission of India (CCI) conducted searches in the offices of major cement producers to find the evidence of price collusion.

Background

In 2019, country’s anti-trust body started examining complaints of cartelisation in the cement industry. Following this, in December 2020, it raided top five cement companies, including UltraTech Cement offices and two subsidiaries of LafargeHolcim, world?? largest cement maker.

It conducted the searches simultaneously in multiple offices across the country and seized electronic and physical data, pieces of equipment and material. The agency had also hired private IT experts to decode the data it collected from the seize.

By December 2020, the industry had hiked cement prices by 23 percent, whereas steel prices rose by whooping 45 percent since January 2020. In January 2020, the price of one cement bag (50 kg) was Rs 349, in December 2020, real estate developers were buying the same bag at Rs 430.

On the other hand, during the same period, the price of steel surged from Rs 40,000 to Rs 58,000. Gadkari had made similar comments then too, saying these two industries keep taking unfair advantage of government’s initiatives to help them. He had said, “I decided to make all roads concrete. I wanted to encourage the cement industry. But they are only taking (unfair) advantage of the situation and making cartels. So, I am now allowing bitumen for road construction.??/p>

A month after the investigation, Gadkari has brought the matter into the limelight once again. Cement and steel factories exploit people by levying higher rates while there is no noticeable hike in either power or labor costs. This is a clear indication of a cartel in both the industries, union minister Nitin Gadkari said. All the players in the industry have their own iron ore mines and do not have to face any hikes in labour or power rates, he added.

Speaking to the Builders Association of India of Western Region, he wondered why the industry is hiking prices when prices of other input factors have been constant. He indicated government has infra projects worth more than Rs 100 crore in the pipeline and their sustenance would be difficult if both the industries keep this up.

To deal with the situation, the government is mulling over setting a regulator for cement and steel industry. Earlier, Gadkari had written to the PM seeking his intervention on price collusion in the two industries.

Concrete

Sambhv Steel Tubes is Now Certified as a Great Place to Work

This certification, valid from January 2025 to January 2026.

Published

2 days ago

February 4, 2025

admin

Sambhv Steel Tubes Limited, one of the key manufacturers of electric resistance welded (“ERW”) steel pipes and structural tubes (hollow section) in India in terms of the installed capacity as of March 31, 2024 (Source: CRISIL Report) is pleased to announce that it has been officially certified as a “Great Place to Work® for 2025.

This certification, valid from January 2025 to January 2026, is a testament to the company’s commitment to fostering a workplace environment built on trust, collaboration, innovation, and employee well-being. Sambhv Steel Tubes also invites talented professionals who share its values of trust, collaboration, and innovation to join its team and be part of its growth journey. The Great Place to Work® certification is a recognized benchmark for workplace excellence. It is awarded based on employee feedback and an evaluation of workplace practices. Achieving this certification underscores Sambhv Steel Tubes’ dedication to nurturing a culture where Sambhv Steel strives to ensure that employees feel valued, supported, and empowered to grow both personally and professionally

The DRHP is available on the website of the Company at www.sambhv.com, SEBI at www.sebi.gov.in, websites of BSE Limited at www.bseindia.com and National Stock Exchange of India Limited at www.nseindia.com and the website of the book running lead managers, i.e. Nuvama Wealth Management Limited and Motilal Oswal Investment Advisors Limited at www.nuvama.com and www.motilaloswalgroup.com, respectively. Any potential investor should note that investment in equity shares involves a high degree of risk and for details relating to such risk, please see the section entitled “Risk Factors” of the RHP, when filed. Potential investors should not rely on the DRHP for making any investment decision. This announcement does not constitute an offer of the Equity Shares for sale in any jurisdiction, including the United States, and the Equity Shares may not be offered or sold in the United States absent registration under the US Securities Act of 1933 or an exemption from registration.

Any public offering of the Equity Shares to be made in the United States will be made by means of a prospectus that may be obtained from the Company and that will contain detailed information about the Company and management, as well as financial statements. However, the Equity Shares are not being offered or sold in the United States. CRISIL Market Intelligence & Analytics (CRISIL MI&A), a division of CRISIL Limited, provides independent research, consulting, risk solutions, and data & analytics to its clients. CRISIL MI&A operates independently of CRISIL’s other divisions and subsidiaries, including, CRISIL Ratings Limited.

Image Source: Sambhv Steel Tubes

Concrete

Cement Industry Key to Growth, Jobs, and Nation Building in Budget

Budget presents opportunities for cement sector in growth, jobs, and infra.

Published

2 days ago

February 4, 2025

admin

The Cement Manufacturers’ Association (CMA) welcomes the Union Budget 2025-26 presented by the Honourable Finance Minister Nirmala Sitharaman. CMA Member Companies have been at the forefront of nation building by significantly contributing to infrastructure development, employment generation, and economic growth. CMA believes that the Budget presents a commendable vision for India’s development through strategic investments in people, economy, and innovation.

Commenting on the Budget, Neeraj Akhoury, President, Cement Manufacturers’ Association (CMA) and Managing Director, Shree Cement Limited, stated, “CMA hails the Union Budget, announced under the leadership of Prime Minister Narendra Modi for its comprehensive focus on holistic and inclusive development. The Budget reinforces a transformative journey towards building a resilient economy for advancing India’s development goals. The various initiatives announced by the Government balance people’s aspirations with the future requirements for the Country’s economic growth. The focus on increased investments on infrastructure across States amplifies opportunities and avenues for the growth of the Cement sector. We appreciate the sustained core focus on infrastructure and reiterate our commitment to being partners in Nation’s progress.<p></p>

<p>The increased spending on large scale housing and infrastructure projects will drive demand for construction materials allowing capacity expansion and promotion of innovation in sustainable practices. We are certain that despite challenges these measures will support the Cement Industry in achieving a consistent CAGR growth rate of more than 6 per cent of installed cement capacity in the present financial year. Policy reforms in Budget 2025-26 signal a reaffirmation of the Government’s intent to augment socio economic growth across core sectors.”

The Cement Industry plays a vital role in creating direct and indirect employment across various sectors, including manufacturing, logistics, and construction, thereby supporting millions of livelihoods. Additionally, the industry remains a key contributor to the Government exchequer through taxes, duties, and levies, strengthening the country’s fiscal framework.

Parth Jindal, Vice President, Cement Manufacturers’ Association (CMA) and Managing Director, JSW Cement Limited, said, “The Budget presented by Finance Minister Smt. Nirmala Sitharaman is a forward-looking roadmap that will play a pivotal role in shaping the future of India’s cement industry, in line with the country’s vision for a Viksit Bharat by 2047. It prioritizes growth in key sectors such as infrastructure, manufacturing, and technology. The increased investment in technology will accelerate advancements in green cement solutions, driving both sustainability and innovation within the industry. Notable allocations, including Rs 200 billion to foster innovation and Rs 1.5 billion in 50-year interest-free loans to states for capital expenditure on infrastructure development, are expected to significantly bolster growth in the core sectors, including cement sector.

He further added, “The Budget’s focus on a three-year pipeline of projects under the public-private partnership (PPP) model will incentivize private sector investment and catalyse a transformation in the infrastructure landscape. Additionally, the establishment of five National Centers of Excellence for skill development, as part of the ‘Make for India, Make for the World’ initiative, will ensure that India’s emerging workforce is well-equipped to meet the demands of a rapidly growing economy.”

In light of the recent Budget announcements, which prioritise infrastructure expansion and affordable housing, the Cement Industry is poised to leverage these opportunities by ensuring steady and sustained supplies of Cement to meet the Nation’s growing domestic market and infrastructure demand coupled with sustainable and innovative technologies. With a strong commitment to sustainability and efficiency, the Cement Industry will continue to drive India’s progress and economic resilience.

Concrete

GMDC Inks Long-Term Limestone Supply Deal With JK Cement

The agreement has been signed for supply of 250 million tonne.

Published

3 days ago

February 3, 2025

admin

State-owned GMDC said it has entered into a long-term pact with JK Cement Ltd for the supply of limestone from its upcoming mine in Gujarat.

The agreement has been signed for supply of 250 million tonnes of limestone over a period of 40 years from its upcoming Lakhpat Punrajpur Mine in Lakhpat Taluka of Kutch district in Gujarat.

This agreement will help JK Cement Ltd in setting up an integrated mega-capacity cement plant, fostering industrial growth in the region.Kutch’s coastal proximity, improved access to domestic and international markets, and cost-efficient logistics position it as an ideal hub for cement production.

The state-owned company has five operational lignite mines in Kutch, South Gujarat, and Bhavnagar region.