Economy & Market

Core sector output declines for 8th consecutive month

Published

5 years ago

July 1, 2021

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The eight-core sector output, which had seen a sharp improvement in recent months, has contracted by 2.5 per cent in October 2020, registering eight consecutive months of decline in output. The core sector output has contracted by 5.5 per cent in the corresponding month last year. Despite the sharp improvement and double-digit growth seen in case of coal production and electricity owing to resumption of business activities, the decline has been on account of decline in output seen in case of refinery products (having the highest weight in the core index) and decline in steel output during the month.

The decline in output in core sector in October to some extent adds uncertainty to sustainability of the recovery process in the economy. Low base effect, to some extent has limited the downside in the overall growth. The growth in the core sector index has been revised for September 2020 to (-)0.1 per cent and (-)7.3 per cent for August 2020.

During April-October 2020, the core sector output has contracted by 13 per cent as against a positive growth of 0.3 per cent during the same period of FY20, which can be ascribed to the coronavirus pandemic induced nation-wide lockdown that brought production activities to a near standstill. All sectors barring fertilizers registered de-growth in industrial output during the first half of FY21. About 50 per cent of the sectors in the index have recorded double-digit negative growth during these seven months.

Key highlights:

Coal production grew by 11.6 per cent in October 2020, its second consecutive month of double digit growth compared with a sharp decline of (-)17.5 per cent registered in the corresponding month last year. The notable growth in October is an indication of revival in demand for coal amidst resumption of industrial activities and higher thermal power demand. A negative base also supported the growth in coal production.
Crude oil production contracted by 6.2 per cent in October 2020 compared with a negative growth of (-)6 per cent in September 2020 and (-)6.3 per cent in the corresponding month last year. This is the 35^th consecutive month in which crude oil production has recorded a contraction. This fall in production can be ascribed to technical mishaps and closure of wells due to COVID-19.
Natural gas production declined by (-)8.6 per cent in October 2020 compared with (-)10.6 per cent in the previous month and (-)5.7 per cent in October 2019. This is the 17th consecutive month of decline in natural gas production. This fall in production can be ascribed to restricted/no gas offtake by consumers and shutdown at consumers??end. E&P players are also not aggressively producing gas as the gas produced from local fields is at an all-time low.
Refinery production, having high weightage in eight core, contracted sharply by 17 per cent in October and is the eighth consecutive month of decline in production. The capacity utilisation of refiners in October 2020 was 88 per cent compared with 105 per cent during October 2019.
Output of steel sector fell to three-month low of (-)2.7 per cent as against a positive growth of 2.8 per cent in the last month. On the other hand cement production recorded its first positive growth of 2.8 per cent in October 2020 after declining for seven consecutive months. This improvement can be ascribed to resumption of institutional projects and housing construction activities.
Output of fertilizers improved sharply by 6.3 per cent in October 2020 as against a flattish fall of (-)0.3 per cent in September 2020. This improvement is on account of robust restocking of fertilisers ahead of the rabi season.
Electricity production rose further to eight-month high of 10.5 per cent in October 2020 compared with a low base of (-)12.1 per cent in October 2019. This improvement reflects higher industrial and business activity and a similar pattern is witnessed in coal as well.

CARE Ratings??View

Despite a low base and improvement in business activities amidst unlocking of the economy, the fall in core sector output in October does show some volatility on the production side. Further unlocking of the economy could push this growth into positive territory in the next month. However, certain localised curfews imposed in a few States could weigh on production activity to some extent. IIP growth for this month may be expected to be between -1 to 0 per cent.

Courtesy: CARE Ratings??Core sector: October 2020

ABOUT THE AUTHOR:

Sushant Hede, Associate Economist at CARE Ratings. He can be contacted at: sushant.hede@careratings.com | Tel: +91-22-6837 43406

Disclaimer: This report is prepared by CARE Ratings Ltd. 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

Wonder Cement appoints Mahesh Singh as VP Corporate Brand Communication

Published

6 days ago

October 9, 2026

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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.

Concrete

JSW Cement commissions additional 1 MTPA grinding unit at Nagaur

Published

7 days ago

October 8, 2026

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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.”

Concrete

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

Published

1 week ago

October 7, 2026

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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.