Concrete

Core sectors output growth remain negative for Nov 2020

Published

5 years ago

July 1, 2021

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In November 2020, the eight core sectors output growth remained in a negative trajectory for the ninth successive month. Rather after showing an improvement in September 2020, it has been deteriorated persistently in October 2020 and November 2020. During the month, the eight core sectors output contracted by 2.6 per cent year on year as against the 0.7 per cent growth in the same month of last year. The output growth during the month was also lower than the 0.6 per cent de-growth in October 2020. The decline in growth can be ascribed to persistent fall in crude oil, refineries, natural gas, steel output.

For October 2020, the core sector growth has been revised upwards from -2.5 per cent (prov.) to -0.9 per cent (first revision) on account of improved production in steel, cement and electricity sector.

The cumulative index of eight core sector during April ??November 2020 contracted by 11.4 per cent indicative of the adverse impact on industrial production during the lockdown period compared with the 0.3 per cent growth in the corresponding period of last year. There was a broad based contraction across sectors during this period barring fertilizer, the output of which grew by 3.8 per cent due to favourable monsoon and sowing season this year.

Key highlights:

Coal production growth slowed in November 2020 and the output grew by 2.9 per cent at a four month low (11.7 per cent growth in October 2020). However, it was better when compared with the 3.5 per cent contraction in the same month of FY20. Revival in demand for power post easing in lockdown and resumption of industrial activities has along with favourable base has led to increase in output in coal.

Crude oil production contracted for three successive years. In November the crude oil production declined at a slower 4.9 per cent compared with the 6 per cent de-growth in November 2020. Fall in production can be ascribed to low realisations due to Covid restrictions/lockdown, technical mishaps due to Covid-19 implications, reservoir issues and shut in of wells and reduced off take.

Natural gas production also declined for nearly 2 years. In November 2020, the natural gas output contracted by 9.3 per cent, higher than the 6.4 per cent decline in November 2019. Closure of Gas wells in western offshore due to Hazira Plant shutdown, low upliftment/demand of gas by the major customers like power plants, bandhs/blockade by local people and associations, etc. after the Baghjan Blowout among others weighed on overall production during the month.

Refinery production, having high weightage in eight core (28 per cent), contracted for successive 9 months in a row. However, the pace of contraction moderated in November 2020 to -4.8 per cent compared with the -17 per cent de-growth in the previous month. In November 2019, however, the refinery output had grown by 3.1 per cent. Low capacity utilisation and low product demand due to Covid impact led to decline in production during the month.

Fertilizer output, grew by 1.6 per cent in November 2020, lower than the 13.6 per cent growth in November 2019 and 6.3 per cent in October 2020. Expected increase in demand during the ongoing Rabi season might have supported the growth during the month.
Output of steel sector contracted for the first time in the past 4 months in November 2020 by 4.4 per cent as against the 7 per cent growth in November 2019 and 4 per cent growth in October 2020. Low demand from automobile sector, high raw material costs and relatively muted construction activities with lockdown imposition in parts of the country must have weighed on the steel production.
After witnessing a revival in October 2020, the cement production took a hit in November 2020 and contracted by 7.1 per cent compared with the 4.3 per cent growth in November 2019 on account of likely muted construction activities with resurgence in infection cases and subsequent restrictions on activities.
Electricity production grew by 2.2 per cent albeit at a slower pace by 2.2 per cent in November 2020 than the 11.2 per cent growth in the previous month but was better than the 4.9 per cent contraction in the same month of last year.

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Going ahead, the eight core sectors growth would be contingent on the ease in restrictions along with high base effect. On account of fall in eight core sector growth the IIP growth for this month could see only marginal improvement between 0 to 1 per cent.

Courtesy: CARE Ratings

ABOUT THE AUTHOR

Dr Rucha Ranadive, Economist, CARE Ratings. Can be contacted at: rucha.ranadive@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

UltraTech’s Kukurdih unit runs fully on green energy

The Chhattisgarh plant has met 100 per cent of its electricity needs through green energy since April 2026.

Published

2 days ago

October 1, 2026

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UltraTech Cement’s Kukurdih Cement Works in Chhattisgarh has met 100 per cent of its electricity requirement through green energy every month since April 2026. Commissioned in 2024, the integrated cement manufacturing unit has an installed grey cement capacity of 3.3 million tonnes per annum.

The plant meets its electricity requirement through a combination of renewable power sourcing and Waste Heat Recovery Systems (WHRS). UltraTech said the combination enables the unit to meet its power needs through green energy while maintaining operational reliability.

Since April 2026, nearly a third of UltraTech’s 76 manufacturing units in India have maintained green energy utilisation above 50 per cent of their electricity requirement. Five units, including Kukurdih, have exceeded 95 per cent green energy utilisation.

The company is also progressively deploying Battery Energy Storage Systems (BESS) across its manufacturing network to support greater integration of renewable energy. UltraTech said it has not invested in new captive thermal power capacity at its integrated units, including greenfield projects and brownfield expansions, for more than 10 years.

As of Q1FY27, UltraTech’s captive green energy capacity stood at 1,897 MW, comprising 1,463 MW of renewable capacity from solar, wind and hybrid sources, and 434 MW of WHRS capacity.

Under its RE100 commitment, the company aims to increase the share of green power in its total power mix to 85 per cent by 2030 and 100 per cent by 2050.

Concrete

Cement Prices Rise Rs. 7 per Bag in September; October Hikes Expected

Cement prices rose in September as companies weighed further increases.

Published

2 days ago

October 1, 2026

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Cement companies may seek to raise prices by Rs. 5 to Rs. 20 per bag across most markets in October, although the ability to sustain the increases will depend on demand recovery and dealer acceptance, according to a report by Centrum Broking. The outlook follows a pickup in pricing momentum during September after largely stable prices in July and August.

The all-India average trade price increased by Rs. 7 per bag month-on-month to Rs. 356 in September. Centrum Broking’s channel checks indicated gains across both trade and non-trade segments, with non-trade prices recording sharper increases in most markets. However, higher company billing rates were not fully passed on to customers in several regions because dealers continued selling at earlier prices to meet quarter-end volume targets.

The brokerage said demand weakness in Q2FY27 was less pronounced than the usual seasonal trend, with construction activity improving in several markets towards the end of the quarter. Demand remained range-bound across several markets in July and August, while September produced mixed regional trends. Higher rainfall affected activity in some areas, whereas lower rainfall supported construction work elsewhere.

South India recorded the largest price increase in September, at Rs. 11 per bag, followed by West India at Rs. 9. Central, East and North India each reported increases of Rs. 5 per bag. Despite the September recovery, the average all-India trade price for Q2FY27 stood at Rs. 351 per bag, down Rs. 1 sequentially, as weaker pricing in July and August offset the later gains.

Centrum Broking said the success of any October increases would depend on the pace of demand recovery and dealers’ willingness to accept higher prices. Fuel prices have also risen sharply in recent weeks, making the implementation and sustainability of price increases a key factor for the cement industry’s pricing outlook.

Concrete

Andhra Pradesh Clears Rs. 30 bn My Home Cement Plant

Project receives incentives of up to Rs. 11.29 bn from state

Published

3 days ago

September 30, 2026

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The Andhra Pradesh government has approved a greenfield cement project worth Rs. 30 bn by My Home Industries, along with incentives of up to Rs. 11.29 bn. The decision comes amid a political controversy in Telangana involving allegations about landholdings associated with My Home Group.

According to an Industries and Commerce Department order issued on September 25, 2026, the project is expected to create 2,000 jobs and begin commercial production by March 2029. The proposed facility will have capacity to produce 3.5 MTPA of clinker and 3.5 MTPA of cement.

The total investment includes fixed capital investment of Rs. 25.97 bn, pre-operative expenses of Rs. 2.23 bn, contingencies of Rs. 1.26 bn and working capital margin of Rs. 540 mn. The incentive package is capped at Rs. 11.29 bn, equivalent to up to 43.48 per cent of fixed capital investment, subject to completion of the committed investment by March 2029.

The package includes a capital subsidy of 39 per cent of eligible fixed capital investment, capped at Rs. 9.43 bn, payable over 10 years from the start of commercial production. It also provides reimbursement of Rs. 1 per unit on electricity purchased from distribution companies for 10 years, subject to a ceiling of Rs. 1.86 bn. A further incentive equivalent to 2 per cent of fixed capital investment is linked to the creation of the committed jobs and other policy conditions.

The state has approved the allotment of 27.19 acres through the Andhra Pradesh Industrial Infrastructure Corporation at actual cost. The project also involves land linked to two temples and the realignment of a canal across approximately 9.93 acres, with conditions requiring alternative temple facilities and company-funded infrastructure work. Telangana Chief Minister A. Revanth Reddy has separately raised allegations concerning land associated with My Home Group, including 2,463 acres near Shamshabad. The allegations remain subject to verification through official records and any investigations.