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Cement firms go slow on capital expenditure

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Owing to muted demand prospects and over capacity, cement companies in India are reportedly slowing their capital expenditure plan in 2013-14.

Launch of residential projects, which constitute two-thirds of demand for cement in India, has slowed down in the country.

UltraTech Cement, the largest cement producer in India, may cut its capital expenditure by 50 per cent in the next 12 months compared to an estimated spending of Rs 44.3 billion ($819.23 million) in the last fiscal year.

At the height of the construction boom in India five years ago, several cement firms planned their capital expenditure programmes. At that time, these cement firms assumed double-digit economic growth would continue for many years.

Since then more than 100 million tonne (mn t) of capacity, or more than 50 per cent, has been added, with 30 mn t added in 2012-2013 alone.

However, the current slowdown in the economy reduced economic growth to around 5 percent.

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Concrete

Shree Cement reports 2025 financial year results

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Shree Cement posted revenue of US$2.38 billion for FY2025, marking a 5.5 per cent decline year-on-year. Operating costs rose 2.9 per cent to US$2.17 billion, resulting in an EBITDA of US$528 million—down 12 per cent from the previous year. Net profit fell 50 per cent to US$141 million. The company reported cement sales of 9.84Mt in Q4 FY2025, a 3.3 per cent increase from 9.53Mt in Q4 FY2024, with premium products making up 16 per cent of total sales.

Image source:https://newsmantra.in/

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Concrete

Rekha Onteddu to become director at Sagar Cements

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Sagar Cements has announced the appointment of Rekha Onteddu as a non-executive independent director, effective 30 June 2025. According to People in Business News, Rekha Onteddu is currently serving in a similar capacity at Andhra Cements, the parent company of Sagar Cements.

Image source:https://sagarcements.in/

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Concrete

India’s cement consumption set to rise

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According to a Moody’s report, India’s cement consumption is projected to rise by 50 per cent over the next five years, increasing from 445 million metric tons per annum (MMTPA) in FY24 to 670 MMTPA by 2030. This growth is expected to be driven by government infrastructure spending and rising housing demand, with an anticipated annual growth rate of 6-7 per cent. To meet this demand, major cement companies are likely to continue acquiring smaller, less profitable firms.

Image source:https://www.telegraphindia.com/

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