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Cement cos see no short term relief

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The govt decision to allow construction activities with riders to help revive economic activities in the country is unlikely to improve the situation in the cement industry any time soon, some large and medium cement companies told ET.

Mumbai: The government decision to allow construction activities with riders to help revive economic activities in the country is unlikely to improve the situation in the cement industry any time soon, some large and medium cement companies told ET. Limited transportation facilities, higher than usual inventory and stricter rules regarding labour safety are some of the factors that are forcing cement makers to approach the resumption of business activities rather cautiously.

Demand and supply constraints due to disruption of logistics channels are causing a major challenge, companies said. "A lurking concern among workers is the possibility of contracting the infection if a truck comes from a high risk zone," said A V Dharmakrishnan, CEO of Ramco Cements. "This has impacted cement dispatches." The government has divided districts into red (high risk), orange (medium) and green (low risk) zones based on severity of Covid-19 infection in each locality. Allowing economic activities in ea

ch district will be based on its risk assessment, with red zones remaining under complete lockdown. At present, metros and big cities are red zones. Cement companies don’t expect a significant revival in demand. "We expect just 10% consumption, hoping that it would increase gradually," said Hari Mohan Bangur, managing director of Shree Cement NSE -0.82 %. "But, until trains start running and curfews are eased uniformly, consumption will be subdued." Emkay Global Financial Services expects only 15-20% capacity utilisation by cement companies this month.

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Concrete

CCU testbeds in Tamil Nadu

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Tamil Nadu is set to host one of India’s five national carbon capture and utilisation (CCU) testbeds, aimed at reducing CO2 emissions in the cement industry as part of the country’s 2070 net-zero goal, as per a news report. The facility will be based at UltraTech Cement’s Reddipalayam plant in Ariyalur, supported by IIT Madras and BITS Pilani. Backed by the Department of Science and Technology (DST), the project will pilot an oxygen-enriched kiln capable of capturing up to two tonnes of CO2 per day for conversion into concrete products. Additional testbeds are planned in Rajasthan, Odisha, and Andhra Pradesh, involving companies like JK Cement and Dalmia Cement. Union Minister Jitendra Singh confirmed that funding approvals are underway, with full implementation expected in 2025.

Image source:https://www.heavyequipmentguide.ca/

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Concrete

JSW Cement gears up for IPO

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JSW Cement has set the price range for its upcoming initial public offering(IPO) at US$1.58 to US$1.67 per share, aiming to raise approximately US$409 million. As reported in the news, around US$91 million from the proceeds will be directed towards partially financing a new integrated cement plant in Nagaur, Rajasthan. Additionally, the company plans to utilise US$59.2 million to repay or prepay existing debts. The remaining capital will be allocated for general corporate purposes.

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Concrete

Cement industry to gain from new infrastructure spending

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As per a news report, Karan Adani, ACC Chair, has said that he expects the cement industry to benefit from the an anticipated US$2.2tn in new public infrastructure spending between 2025 and 2030. In a statement he said that ACC has crossed the 100Mt/yr cement capacity milestone in April 2025, propelling the company to get closer to its ambitious 140Mt/yr target by the 2028 financial year. The company’s capacity corresponds to 15 per cent of an all-India installed capacity of 686Mt/yr.

Image source:https://cementplantsupplier.com/cement-manufacturing/emerging-trends-in-cement-manufacturing-technology/

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