Concrete

Base effect hides monthly decline

Published

5 years ago

October 19, 2021

admin

Steel and cement sector witnessed a growth of 59.3 per cent and 7.9 per cent (YoY) respectively, which reflects the capex push provided by the Central and State governments. The decline in case of cement and steel production is mainly due to impact of the record surge in Covid-19 cases in May 2021 and the associated lockdowns on construction activity.

The Eight core sector should be read with caution again as the favourable base effect is again at play for the third consecutive month. In May 2021, core sector output rose by 16.8 per cent as against a contraction of 21.4 per cent in May 2020. On a month on month level comparison, there has been a marginal decline of 3.7 per cent which reflects the impact of the second wave of the Covid-19 pandemic and the associated lockdowns on business activities. One should note that May has been characterised by lockdowns of varied nature in both FY21 and FY22. The localised lockdowns during May??1 did have a bearing on output of the 8-core sector to some extent while the double-digit growth can be chiefly ascribed to the low growth number in May??020. There has been an upward revision in the core sector growth data for April??1 to 60.9 per cent (previous estimate: 56 per cent).

The double-digit Y-O-Y growth has been primarily driven strong growth registered in steel, natural gas and refinery products. Month-on-month improvement has been registered in case of fertilisers (ahead of kharif season), natural gas and coal production. The monthly index for May??1 is still 6.1 per cent lower than the pre-pandemic index of February??0 and 8.2 per cent lower than May??019 (the year prior to the pandemic). So far in FY22, the core sector output has witnessed a growth of 35.8 per cent compared with a de-growth of 29.4 per cent in the corresponding month last year but this purely a baseeffect phenomenon. There could be support from government capex as the fiscal numbers for this period show higher outlay on roads.

Key highlights

Coal production was higher by 6.9 per cent in May 2021 as against -14.1 per cent in May 2021. Despite the 2nd wave of the COVID19 pandemic disrupting business activities during the month, there has been a month-on-month improvement of 3.1 per cent in coal production on the back of revival in demand from the power sector.

Crude oil production fell by 6.3 per cent in May 2021, registering the 42nd consecutive monthly decline. The decline in production can be ascribed to adverse climatic conditions created by cyclone Tauktae, which hit the Indian west coast coupled with less than planned contribution from workover wells, drilling wells and old wells. The overall production has also been lower owing to lower consumer demand, infectivity issues in few wells, workovers and water knockouts.

Natural gas production rose by 20.1 per cent in May??021 compared with contraction of 16.7 per cent in May??020 mainly due to higher output from the PSC fields. However, production in government fields were low due to reduced gas production in Western Offshore due to cyclone Taukate, delay in commencement of gas production and less offtake by consumers due to Covid-19 issues. Natural gas production by Pvt/JVs companies in the PSC (production sharing contracts) regime has almost tripled on a YoY basis. This is due to increased contributions from D-34 field of KG DWN 98/3 and wells from satellite cluster.

Refinery production rose by 15.3 per cent in May??1 as against a de-growth of 21.3 per cent in May??020. There has however been a month-on-month decline of 4.6 per cent reflective of lower consumer demand amidst the localised lockdowns during the 2nd wave of the Covid-19 pandemic. Products that witnessed a rise in production were high speed diesel, petrol, liquefied petroleum gas, aviation turbine fuel and petcoke, while fuel oil and kerosene saw a fall in output during this month.

Fertiliser production declined to a 14-month low of 9.6 per cent in May 2021 compared with a high base of 7.5 per cent in May 2020. The m-o-m growth of 16.1 per cent can be ascribed fertilizer manufacturing companies increasing their production in May over April in anticipation of good demand ahead of the kharif sowing season. Along with this, the Centre increased the subsidy on fertilizers in mid-May after fertilizer producers announced their plans of increasing prices due to a surge in international feedstock prices. This hike in subsidies assuaged manufacturers??worries around a fall in demand from farmers. This is likely to have supported production too.

Steel and cement registered a growth of 59.3 per cent and 7.9 per cent (YoY) respectively which does reflect the capex push provided by the governments at both Centre and State level along with a low base effect. The m-o-m decline in case of cement and steel production highlights the impact of the record surge in Covid-19 cases in May 2021 and the associated lockdowns on construction activity. Labour shortages due to reverse migration also had a bearing on construction activities during May??021.

Electricity generation rose by 7.3 per cent in May 2021 as against a low base of 14.8 per cent in May 2020. However, there has been a month-on-month decline of 7.1 per cent as states imposed lockdowns to rein in the devastating effect of the second wave of the Covid-19 pandemic. The higher usage of electricity in residential locations during the summer season limited the monthly moderation to some extent.

CARE Ratings??View

There has been a dip in the core sector index for May??021 compared with the previous month which reflects the impact of the localised lockdowns on business activity. However, as economic activities, especially in the industrial segment were not significantly affected in June 2021, output of the core sector will witness an improvement. There has been a strong push for capex from the Government which will drive steel and cement while the advent of the kharif season will drive fertilizer production. The impact of the base-effect will continue in the next few months but will fade away subsequently. The IIP for the month of May??021 could range between 20-30 per cent though one should not read much into it.

Courtesy: CARE Ratings

ABOUT THE AUTHOR:

The article is authored by Sushant Hede, Associate Economist. He can be contacted on: Email: sushant.hede@careratings.com | Tel: 91-22-6837 4348

Disclaimer: This report is prepared by CARE Ratings Limited. 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.

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Concrete

Top 10 Cement Companies in India

Leading cement makers are driving India’s infrastructure growth

Published

12 hours ago

May 12, 2026

admin

India’s cement industry is the backbone of the country’s infrastructure and real estate growth. With massive investments in highways, metros, housing, and industrial corridors, demand for cement continues to rise steadily. In 2026, the industry is not just expanding in capacity but also evolving through sustainability initiatives, digitalisation, and advanced manufacturing technologies.

From producing low-carbon cement to expanding distribution networks across urban and rural India, leading companies are playing a crucial role in shaping the nation’s-built environment. Here’s a detailed look at the top 10 cement companies in India driving this transformation:

1. UltraTech Cement

UltraTech Cement is India’s largest cement manufacturer and a flagship company of the Aditya Birla Group. With an extensive presence across the country and global operations, it dominates both retail and institutional markets.

The company has consistently focused on capacity expansion, making it a preferred choice for mega infrastructure projects such as highways, metro rail systems, and commercial developments. UltraTech is also investing heavily in sustainability, including waste heat recovery systems and green energy usage.

Key highlights:

Largest cement producer in India
Strong pan-India distribution network
Focus on low-carbon and sustainable cement

2. Ambuja Cements

Ambuja Cements is widely known for its strength, durability, and environmentally responsible manufacturing practices. Now part of the Adani Group, the company is aggressively expanding its footprint in the Indian market.

Ambuja has been a leader in sustainable construction, with initiatives focused on reducing carbon emissions and promoting eco-friendly building materials. Its products are particularly popular in residential and coastal construction due to their high resistance to environmental conditions.

What sets it apart:

Strong sustainability focus
High-performance cement for varied conditions
Growing market presence under new leadership

3. ACC Limited

ACC Limited is one of the oldest and most trusted cement brands in India, with a legacy spanning decade. Also, part of the Adani Group, ACC is known for its consistent quality and innovation.

The company has a robust supply chain and a wide distribution network, making its products easily accessible across the country. ACC is also focusing on digital transformation and sustainable production processes.

Core strengths:

Strong brand trust and legacy
Reliable quality across projects
Focus on innovation and digitalisation

4. Shree Cement

Shree Cement is one of the fastest-growing cement companies in India, known for its cost efficiency and operational excellence. It has built a strong reputation for delivering high-quality cement at competitive prices.

The company is also a leader in energy efficiency, using alternative fuels and renewable energy sources to reduce costs and environmental impact.

Why it stands out:

Cost-efficient operations
Strong presence in North and East India
Focus on energy conservation

5. Dalmia Bharat

Dalmia Bharat Group has emerged as a major player in the cement industry with a strong emphasis on sustainability and innovation. The company aims to become carbon negative in the coming years, setting new benchmarks for green manufacturing.

Dalmia Bharat supplies cement for large-scale infrastructure projects and is known for its durable and high-performance products.

Key advantages:

Industry leader in sustainability
Strong presence in infrastructure projects
Focus on green cement solutions

6. The Ramco Cements

Ramco Cements is a well-established name in South India, known for its high-quality cement and strong customer base. The company has steadily expanded its footprint while maintaining product reliability. Ramco is also investing in modern technologies and renewable energy to improve efficiency and reduce environmental impact.

Highlights:

Strong regional dominance in South India
Consistent product quality
Focus on technological upgrades

7. JSW Cement

JSW Cement, part of the JSW Group, is known for its eco-friendly approach and innovative product range. The company focuses on producing green cement using industrial by-products like slag. JSW Cement is rapidly expanding its capacity to compete with established players and strengthen its market position.

Key features:

Eco-friendly cement production
Focus on innovation and sustainability
Rapid expansion strategy

8. JK Cement

JK Cement is a leading manufacturer of both grey and white cement in India. It is particularly well-known for its white cement products, which are widely used in decorative and architectural applications. The company has also expanded into international markets, strengthening its global presence.

Specialties:

Leader in white cement segment
Strong brand recognition
Growing international footprint

9. Birla Corporation

Birla Corporation, part of the MP Birla Group, offers reliable and cost-effective cement solutions. It has a strong presence in central and eastern India. The company continues to focus on capacity expansion and improving operational efficiency to meet rising demand.

Strengths:

Affordable and reliable products
Strong regional presence
Continuous expansion efforts

10. HeidelbergCement India

HeidelbergCement India, a subsidiary of the global giant Heidelberg Materials, is known for its premium-quality cement and advanced technology. The company focuses on niche markets and high-performance products, catering to specialized construction needs.

Key points:

Backed by global expertise
Focus on premium products
Strong emphasis on quality and innovation

Conclusion

India’s cement industry is becoming increasingly competitive, with companies focusing on capacity expansion, sustainability, and technological innovation to stay ahead. As infrastructure and real estate projects continue to grow, these top cement companies will remain central to India’s development story.

The future of the industry lies in green cement, digital manufacturing, and efficient supply chains, making it an exciting space to watch in the coming years.

Concrete

Rs 20 Million Road Revamp Linking Andada To National Highway 48 Begins

Five point five metre reinforced concrete link to improve rural connectivity

Published

12 hours ago

May 12, 2026

admin

The resurfacing of the road linking Andada village in Ankleshwar to National Highway 48 has begun, with the foundation stone laid by the local member of the legislative assembly. The project is estimated to cost Rs 20 million (Rs 20 mn) and was announced as part of a wider district package. Local leaders and a large number of villagers attended the inauguration and the ceremony underscored the priority given to rural connectivity.

The scheme calls for the construction of a five point five metre wide reinforced cement concrete (RCC) road to replace the existing surface and improve year round access. Contractors will also build a bund and a protective wall along the roadside to ensure efficient drainage of rainwater and to reduce flood related damage. Execution will follow standard engineering practices and local authorities have scheduled phased work to minimise disruption.

The road is funded from a Rs 3 billion (Rs 3 bn) development package allocated by the state government for Bharuch district, of which Rs 20 mn has been earmarked for this corridor. The allocation covers surfacing and ancillary measures aimed at improving durability and safety for motorised and non motorised traffic. Officials said the upgrade will reduce travel time and improve access to services for residents.

Once complete, the link will provide direct connectivity from Andada to National Highway 48 and is intended to support local commerce and daily commuting. Project documents note benefits for farmers, traders and school transport and improvements in emergency access. District authorities will publish progress reports as work advances.

Local contractors will coordinate with the district public works department and traffic management teams to maintain safe passage during construction. Employment opportunities for local workers will be generated during the peak phases of activity, offering short term labour engagement. Community representatives will monitor the implementation and report on milestones to district officials.

Concrete

Shree Cement Posts Strong Q4 as Volumes Rise

Revenue and Premium Sales Drive Margin Improvement

Published

2 days ago

May 11, 2026

admin

Shree Cement reported results for the quarter and year ended 31 March 2026, with consolidated net revenue of Rs61,010 million (mn) and consolidated EBITDA of Rs13,840 mn. Standalone net revenue was Rs56,430 mn and profit after tax stood at Rs5,320 mn, improving from the prior year. Cash profit and operating metrics strengthened quarter on quarter. The board recommended a final dividend of Rs70 per share, taking total payout for the year to Rs150 per share.

Total domestic cement sales rose 11 per cent year on year from nine point five two mn tonnes (t) to 10.56 mn t, with quarter on quarter gains of about 24.5 per cent. Sales of premium products increased to 22 per cent of trade volume from 16 per cent in the prior quarter, supporting margin expansion.

The ready mixed concrete operations totalled 26 plants at year end and 10 new commercial plants inaugurated in March are under commissioning, which will raise the count to 36. The company commissioned an integrated project of three point six five mn t clinker and three point five mn t cement capacity in Karnataka, taking installed cement production capacity in India to 69.3 mn t.

Sustainability metrics included 61 per cent green electricity share in the quarter and green power generation capacity of 666.5 megawatt (MW). Manufacturing sites maintained zero liquid discharge and a water positivity index greater than eight times. Management said energy efficiency and digitalisation measures were helping to mitigate cost pressures from the West Asia conflict.

Management expressed confidence in medium term demand backed by infrastructure spending and Union Budget measures, while noting short term risks from geopolitics and monsoon forecasts. The company has incorporated a wholly owned subsidiary for overseas operations and is pursuing multiple expansion opportunities to accelerate capacity build up.