Concrete

Most of the manufacturers are in wait and watch mode

Published

3 years ago

October 14, 2021

admin

Vivek Taneja, Head of Business Development ( Power), Thermax Timely policy changes and a well thought out growth plan, fortified with incentives for energy conservation, will give a strong push to the cement industry. Although order books of most plant and machinery manufacturers didn`t look exciting in 2013, the year ahead holds more potential. Vivek Taneja, Head of Business Development ( Power), Thermax says that a lot depends on how we tap the opportunities. Excerpts from the interview.

Has the economic slowdown impacted production capacity augmentation or the setting up of new cement plants?
Although some cement majors are planning for the long term and will stay the course , the pace could be slower than anticipated. From our discussions with some manufacturers, it appears that most cement companies are adopting a strategy of wait and watch before moving ahead with their capacity expansion plans. So, to some extent, yes there has been an impact.

Are you optimistic about the growth of the cement sector?
From our discussions on captive power requirements, we understand that the total capacity addition predicted during the 12th Five Year Plan will depend on the infrastructure development facilitated by government policies. If the present economic policy stasis continues, future capacity addition is going to be limited. However, we are optimistic about the potential in this sector from the long- term perspective..

What policy changes will help the cement industry regain momentum from the year 2014 onwards?
On a near term basis, there could be faster decisions related to infrastructure projects like ports, roads, etc; lowering of interest rates to facilitate growth of consumption in housing; making available fuel for captive consumption of the cement industry (cement manufacturing as well as captive power generation); quicker MOEF and other clearances, etc. From a power perspective, the government could think of offering incentives to cement and other industries, to generate power from their large and available quantity of waste heat. This can be done by bringing power produced from waste heat under the ambit of renewable energy.

What new trends are emerging in the design of cement plans, plants and machinery, and other supporting systems ?
Designing cement plants that can harness their waste heat for power generation is being actively considered by the industry. Such a move, if backed by incentives available for renewable energy, can improve the profitability of the plants. Additionally, it will also help in better environment management as the waste heat after use for power generation will be let out at much lower temperatures.

Cement plants can reduce their overall carbon footprint and also help in reducing the national dependence on fossil fuel.

As an EPC service provider and supplier of critical plant and machinery, how has 2013 been for you?
This year has seen limited orders being finalised, and most of the manufacturers are in a wait and watch mode before the 2014 elections.

While we are optimistic on the long-term perspective, we expect industry growth to be subdued in the interim.

Concrete

Construction Costs Rise 11% in 2024, Driven by Labour Expenses

Cement Prices Decline 15%, But Labour Costs Surge by 25%

Published

3 days ago

November 19, 2024

admin

The cost of construction in India increased by 11% over the past year, primarily driven by a 25% rise in labour expenses, according to Colliers India. While prices of key materials like cement dropped by 15% and steel saw a marginal 1% decrease, the surge in labour costs stretched construction budgets across sectors.

“Labour, which constitutes over a quarter of construction costs, has seen significant inflation due to the demand for skilled workers and associated training and compliance costs,” said Badal Yagnik, CEO of Colliers India.

The residential segment experienced the sharpest cost escalation due to a growing focus on quality construction and demand for gated communities. Meanwhile, commercial and industrial real estate remained resilient, with 37 million square feet of office space and 22 million square feet of warehousing space completed in the first nine months of 2024.

“Despite rising costs, investments in automation and training are helping developers address manpower challenges and streamline project timelines,” said Vimal Nadar, senior director at Colliers India.

With labour costs continuing to influence overall construction expenses, developers are exploring strategies to optimize operations and mitigate rising costs.

Concrete

Swiss Steel to Cut 800 Jobs

Job cuts due to weak demand

Published

4 days ago

November 18, 2024

admin

Swiss Steel has announced plans to cut 800 jobs as part of a restructuring effort, triggered by weak demand in the global steel market. The company, a major player in the European steel industry, cited an ongoing slowdown in demand as the primary reason behind the workforce reduction. These job cuts are expected to impact various departments across its operations, including production and administrative functions.

The steel industry has been facing significant challenges due to reduced demand from key sectors such as construction and automotive manufacturing. Additionally, the broader economic slowdown in Europe, coupled with rising energy costs, has further strained the profitability of steel producers like Swiss Steel. In response to these conditions, the company has decided to streamline its operations to ensure long-term sustainability.

Swiss Steel’s decision to cut jobs is part of a broader trend in the steel industry, where companies are adjusting to volatile market conditions. The move is aimed at reducing operational costs and improving efficiency, but it highlights the continuing pressures faced by the manufacturing sector amid uncertain global economic conditions.

The layoffs are expected to occur across Swiss Steel’s production facilities and corporate offices, as the company focuses on consolidating its workforce. Despite these cuts, Swiss Steel plans to continue its efforts to innovate and adapt to market demands, with an emphasis on high-value, specialty steel products.

Concrete

UltraTech Cement to raise Rs 3,000 crore via NCDs to boost financial flexibility

UltraTech reported a 36% year-on-year (YoY) decline in net profit, dropping to Rs 825 crore

Published

4 days ago

November 18, 2024

admin

UltraTech Cement, the Aditya Birla Group’s flagship company, has announced plans to raise up to Rs 3,000 crore through the private placement of non-convertible debentures (NCDs) in one or more tranches. The move aims to strengthen the company’s financial position amid increasing competition in the cement sector.

UltraTech’s finance committee has approved the issuance of rupee-denominated, unsecured, redeemable, and listed NCDs. The company has experienced strong stock performance, with its share price rising 22% over the past year, boosting its market capitalization to approximately Rs 3.1 lakh crore.

For Q2 FY2025, UltraTech reported a 36% year-on-year (YoY) decline in net profit, dropping to Rs 825 crore, below analyst expectations. Revenue for the quarter also fell 2% YoY to Rs 15,635 crore, and EBITDA margins contracted by 300 basis points. Despite this, the company saw a 3% increase in domestic sales volume, supported by lower energy costs.

In a strategic move, UltraTech invested Rs 3,954 crore for a 32.7% equity stake in India Cements, further solidifying its position in South India. UltraTech holds an 11% market share in the region, while competitor Adani holds 6%. UltraTech also secured $500 million through a sustainability-linked loan, underscoring its focus on sustainable growth driven by infrastructure and housing demand.