Economy & Market

For us, the emerging markets are Africa and South America

Published

3 years ago

October 14, 2021

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SG Saboo, Managing Director, Saboo Engineers.

The Indian market is almost at saturation point, with domestic players in both the plant and equipment sector. Progressive companies are now tapping opportunities out of India and there are plenty of opportunities, says SG Saboo, Managing Director of Saboo Engineers. Excerpts from the interview.

Would you tell us about your companyand your products?

We are basically in the manufacture of small and medium-sized cement plants. We supply two type of technologies, VSK and rotary kiln. VSK cement plants work up (produce?) to 300 tonnes per day, while the rotary kiln plant can reach a capacity of 1,500 tonnes per day. We supply complete cement plants, rotary kiln plants, mineral grinding plants and allied machinery on a turnkey basis. The company has its product lines based on thorough design and R&D expertise.

Which are the emerging markets for your business?

For us, the emerging markets are Africa and South America. In Europe and America, small and medium-sizde plants are not too economically sustainable. The demand is very high in and they require big plants to meet that demand. That is not the case with the African market.

How is the scenario in Africa?

There are so many small countries where there are no cement plants and cement prices have gone up to 20 USD a pack. They are importing all the cement from outside, even though they have the raw material deposits of limestone, clay, etc, everything except coke. In some of the countries, though, coke is also available. African countries have all the raw materials but they do not have the knowledge and the machinery to produce cement. These are our markets.

What has the response been from these countries?

When we entered Ethiopia, we saw long queues of cement buyers… the wait would go for more than a year! After we set up our plant there ,the cement shortage lightened. Now we are entering Djibouti, where we are supplying a plant of 600 tonnes-per-day capacity.to the Government of Djibouti. Djibouti’s population is only 2.5 million, so you cannot set up a plant with the capacity of 3,000 or 4,000 tonnes per day. It will be useless, the capacity would be too much. So we are supplying a medium-sized plant of 600 tonnes per day capacity, which will take care of the entire country’s demand.

We are also tapping Somalia, Nigeria, and Uganda as these are good markets for smaller and medium-sized plants. There are so many countries that do not have cement plants, so there is tremendous scope outside India for our machinery.

How well do you do in India?

We have delivered excellent small scale VSK plants in Rajasthan. They are producing a very good quality of cement. However, the demand for cement is very high in India, so the capacity of 50 – 200 tonnes is a negligible amount. In remote areas, small plants play a vital role. As the cost of diesel are high, cement transportation is correspondingly costly. By putting smaller and medium plant in a scattered limestone deposit, we can cater to the local needs.

What are the challenges you face in the market?

Our market is in the underdeveloped countriesso there is a shortage of employees and infrastructure. You have to train your own employees, even for the construction work required for the project.You need a lot of patience to work in limiting situations.

Concrete

15th Cement EXPO: A Step Forward in Cement Innovation

Published

3 weeks ago

January 17, 2025

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Mumbai

Following the immense success of the 14th Cement EXPO, held on December 14-15, 2023, at the Manekshaw Centre, New Delhi, the next edition of this premier event is set to take place in March 2025. The 15th Cement EXPO will be hosted at Yashobhoomi, Delhi, on 12th and 13th November 2025.

Meanwhile, the Cement Expo Forum 2025 is scheduled for 5th and 6th March 2025 at Taj Krishna in Hyderabad. This exciting 3-in-1 event, organised by FIRST Construction Council (FCC) and Indian Cement Review (ICR), will bring together industry leaders, innovators, and stakeholders to discuss the future of the cement sector.

Building on the Success of the 14th Cement EXPO

The 14th Cement EXPO was widely praised for its strong participation, attracting over 1,500 senior managers and decision-makers from across the cement industry. The event was inaugurated by Dr. Vibha Dhawan, Director General of TERI, and Ali Emir Adiguzel, Founder and Director of the World Cement Association, alongside Pratap Padode, Founder of FIRST Construction Council (FCC). The two-tiered exhibition space featured cutting-edge products and innovations from top companies within the cement industry’s supply chain.

The event also garnered significant support from key government bodies, including the Ministry of Road Transport and Highways, Government e-Marketplace (GeM), and the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, Government of India (GoI).

Recognition and Excellence in the Cement Industry

The 7th Indian Cement Review Awards celebrated excellence by presenting awards to 11 companies in various categories, recognising their contributions to growth and innovation within the industry. Notably, Parth Jindal, Managing Director of JSW Cement, was honoured with the prestigious Indian Cement Review – Person of the Year Award 2023. Meanwhile, Vinita Singhania, Vice Chairman and Managing Director of JK Lakshmi Cement Ltd, received the Lifetime Achievement Award for her outstanding leadership and contributions to the sector.

A Vision for Sustainability

With the theme of “Driving Sustainability Through Technology,” the 9th Indian Cement Review Conference hosted thought-provoking discussions and presentations, highlighting the industry’s commitment to adopting innovative, sustainable practices. The conference served as a platform for dialogue on the latest technological advancements aimed at transforming the cement sector, addressing key challenges, and fostering growth.

What to Expect from Cement EXPO 2025

The 15th Cement EXPO, along with the 10th Indian Cement Review Conference and the 8th Indian Cement Review Awards, is set to be even bigger and more impactful than the 2023 edition. With an expanded exhibition space, greater participation, and more in-depth discussions, the 2025 event will continue to drive the industry forward. This 3-in-1 event promises to be a pivotal moment in the ongoing transformation of the cement sector.

As the industry evolves, the 15th Cement EXPO 2025 will serve as a crucial platform for showcasing innovations, discussing emerging trends, and forging new partnerships to shape the future of cement and construction.

For more details:

Cement Expo Forum 2025: https://cementexpo.in/forum

15^th Cement Expo 2025: https://cementexpo.in/

FOR CONFERENCE SPONSORSHIPS

Sheetal Talreja

Mob: +91 842 2874 030

Email: sheetal@IndianCementReview.com

FOR EXHIBITION/SPONSORSHIPS

Sujoy Gomes

Mob: +91 865 7795 881

Email: Sujoy.g@ASAPPinfoGlobal.com

FOR SPONSORSHIPS

Ratan Rajbhar

Mob: +91 842 2874 021

Email: ratan.r@ASAPPinfoGlobal.com

Concrete

Construction sector growth slows to 8-10% for FY2025: ICRA

Published

3 weeks ago

January 15, 2025

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The revenue growth for construction companies in FY2025 is projected at 8-10 per cent, down from the earlier estimate of 12-15 per cent, according to ICRA. This marks the slowest growth in three years, driven by factors such as the Model Code of Conduct in Q1, prolonged monsoons, and milestone-based billing in Q2, particularly affecting road-focused players.
ICRA’s analysis of 19 companies with a combined turnover of Rs.1.28 trillion in FY2024 shows modest revenue growth of 1.5 per cent YoY in H1 FY2025. While execution is expected to improve in H2, FY2025 growth remains below the historical CAGR of ~15 per cent (FY2018-FY2024).
Order inflows in urban transport, water and sewage projects are healthy, but road-focused entities face challenges due to muted inflows and high competition. Operating margins are projected to remain range-bound at 10.5-11 per cent, with debt levels rising to manage working capital needs, though debt coverage metrics remain stable.

Concrete

SANY India expands Pune factory to boost production capacity

Published

3 weeks ago

January 15, 2025

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SANY India inaugurated a cutting-edge factory expansion at its 90-acre Pune facility, elevating its production capacity to over 14,000 units annually, alongside a robust fabrication capacity of 100,000 metric tonnes.

The advanced facility reinforces SANY’s commitment to ‘Make in India’ by enhancing localised manufacturing and supporting global exports. Chairman Xiang Wenbo highlighted the strategic importance of India as a global hub, while Vice Chairman Deepak Garg emphasised the expansion’s role in driving innovation and infrastructure development. This investment enhances efficiency, reduces timelines, and strengthens SANY’s leadership in the construction equipment sector.