Concrete

Core sectors register notable improvement in Sept 2020

Published

5 years ago

October 19, 2021

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The eight core sectors registered a notable improvement in September 2020 recording a marginal fall of 0.8 per cent compared with negative growth of (-) 7.3 per cent in August 2020 and (-)5.1 per cent in the corresponding month last year. This recovery in the core sector has been on account of double digit growth in the coal segment and positive growth in the electricity segment for the first time in the last seven months. Positive growth recorded in coal, steel and electricity does indicate that the unlock programme has had a positive impact on these three segments. Moreover, a low base effect has also led to a perceptible pick-up in September 2020. Despite the sharp recovery, the core sector index has declined for the seventh consecutive month. The oil segments continue to record negative growth along with the cement and fertilisers segment.

There has been an improvement in the estimate for August wherein the fall is (-)7.3 per cent as against the earlier estimate of (-)8.5 per cent. During April-September 2020, the core sector output has contracted by 8 per cent as against a positive growth of 1.3 per cent during the same period of FY20, which can be ascribed to the coronavirus pandemic induced nation-wide lockdown that brought production activities to a near standstill. All sectors barring fertilizers registered de-growth in industrial output during the first half of FY21.

Key highlights:

l Coal production recorded its highest growth in the new series, registering a double digit growth of 21.2 per cent reflective of resumption of industrial activities and higher thermal power demand. A negative base (-20.5 per cent in September 2019) also supported the growth in coal production.

l Crude oil production contracted by 6 per cent in September 2020 compared with a negative growth of (-)6.3 per cent in August 2020 and (-)5.3 per cent in the corresponding month last year. This is the 34th consecutive month in which crude oil production has recorded a contraction. This fall in production can be ascribed to technical mishaps such as unavailability of drilling equipment or installation of new platforms, closure of wells due to less offtake because of the COVID-19 coupled with limitations and restriction in movement of onshore field operations.

l Natural gas production recorded a negative growth of (-)10.6 per cent in September, the 16th consecutive month of decline. This fall can be attributed to restricted off-take by major consumers and temporary closure of gas-wells in western off-shores.

l Refinery production, having high weightage in eight core, contracted by (-)9.5 per cent in September but registering an improvement over the previous month (-19.5 per cent in August). This is the seventh consecutive month in which there has been negative growth in this segment. The improvement on MoM levels can be ascribed to further unlocking of the economy, dropping of lockdown restrictions, and improvement in the capacity utilisation to 85 per cent in September (78 per cent in August). However, it continues to remain negative reflective of absence of revival in the transport segment.

l Output of steel sector grew by 0.9 per cent in September, its first positive growth after 6 consecutive months of negative growth. This corroborates the picture revealed by some of the steel companies which have seen good demand especially from the construction and auto sector.

l Cement production continues to record negative growth and has fallen by (-)3.5 per cent in September. However there has been a sharp improvement in this segment compared with the previous months during the fiscal. Robust increase in construction activity following returning back of labour to construction activities can be a key reason for this improvement.

l Output of fertilizers fell marginally by (-)0.3 per cent in September compared to 7.3 per cent growth in August and 5.5 per cent growth in the corresponding period last year.

l Electricity production rose to seven-month high of 3.7 per cent in September after six previous months of sustained negative growth. This improvement reflects higher industrial and business activity and a similar pattern is witnessed in coal as well.

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The sharp improvement in the core sector output is encouraging and collates well with the higher consumer spending seen in early October. A low base effect in the next month and the further unlocking of the economy is likely to push this growth into positive territory in the next month. The negative growth in the oil segment will further narrow in the coming months as the unlock process becomes more prevalent in the country. IIP growth for this month may be expected to be between -2-5 per cent.

Courtesy: CARE Ratings

ABOUT THE AUTHOR:

Sushant Hede, Associate Economist at CARE Ratings. Email: sushant.hede@careratings.com | Tel: +91-22-6837 43406

Disclaimer: This report is prepared by CARE Ratings Ltd. 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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Jammu Division Begins First Cement Rail Traffic to Anantnag

Cement Loading From Kathua for Anantnag to Begin on September 14

Published

5 days ago

September 21, 2026

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Jammu Railway Division has placed an indent for the first movement of cement by rail within the division, linking Shaheed Captain Sunil Kumar Choudhary Kathua Railway Station with Anantnag Railway Station. Loading for the consignment is scheduled to begin on September 14.

Concrete

Hard Worker Wins Three Honours at Kyoorius Design Awards

Ramco Cements’ brand secures Grand Prix and two Blue Elephant honours.

Published

5 days ago

September 21, 2026

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The Ramco Cements Limited’s construction chemicals brand, Hard Worker, has won three honours at the Kyoorius Design Awards 2026, including the Grand Prix – Grey Elephant in the Design in Action category.

The brand also secured two Blue Elephant honours, one for Design in Action and another for Packaging, recognising the design approach behind its brand identity and packaging.

Launched in 2025, Hard Worker entered the construction chemicals segment with the brand promise, “Hard-working products for hardworking people.” Its visual identity uses animals and birds to represent product benefits. The camel represents the water-retention capability of Hard Worker Eco Plaster, while the cheetah represents the speed and performance of Hard Worker Block Fix.

The visual language has been extended across packaging, retail, communication, literature, digital platforms and other brand touchpoints. Hard Worker uses bold colours, distinctive animal illustrations and simple visual storytelling to communicate product benefits across markets and audiences, including construction workers and applicators.

“For Hard Worker, design was never an afterthought. It was fundamental to how we wanted to build the brand. In a category that is largely functional, we wanted to create a brand that people could recognise, understand and remember instantly. The Kyoorius recognition is a wonderful validation of this design-led approach,” said Mr. AV Dharmakrishnan, CEO, The Ramco Cements Limited.

Mr. Balaji K. Moorthy, Executive Director – Marketing, Ramco Cements said “In a category where communication has traditionally been product-led and functional, we wanted Hard Worker to stand apart by making design an integral part of the brand experience. From the distinctive animal-led packaging to our communication across consumer and trade touchpoints, every element was designed to make the brand more memorable and the product benefits easier to understand.”

Within its first 12 months, Hard Worker crossed Rs 3.5 bn in sales. The latest recognition follows six honours secured by the brand’s campaign at the Kyoorius Creative Awards earlier in 2026, including the Grey Elephant Grand Prix for its Eco Plaster film.

The Kyoorius Design Awards recognise outstanding design work in India’s visual communications sector across multiple categories and platforms. The 2026 awards were announced on 12 September in Goa.

The Ramco Cements Limited is part of the Ramco Group and operates across cement and allied building-material solutions. Hard Worker is its construction chemicals brand, offering solutions across key construction applications.

Concrete

Cement Firms to Invest Rs. 130 bn in Green Energy by FY28

Cement companies plan to expand clean energy capacity to 6 GW by FY28

Published

1 week ago

September 17, 2026

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India’s major cement companies are set to raise their clean energy capacity to 6 GW by March 2028 from around 4 GW at the end of March 2026, according to ratings agency ICRA. The planned expansion is expected to involve investments of Rs. 130 bn over the next two years.

The additional capacity could generate annual savings of Rs. 62 bn to Rs. 67 bn, resulting in an estimated payback period of 1.8 to 2.2 years. Cement is an emission-intensive industry, and leading producers have established net-zero roadmaps covering the next 15 to 20 years.

The calcination process accounts for 57 to 60 per cent of the sector’s total emissions, while fuel combustion contributes 27 to 30 per cent and electricity consumption accounts for 10 to 13 per cent. ICRA said the figures highlighted the need for a broad decarbonisation strategy involving green power, blended cement, alternative fuels and improvements in clinker efficiency.

Green energy is considered one of the most commercially attractive decarbonisation options because it can reduce emissions while lowering operating costs. Every 5 per cent increase in green power replacement can reduce power and fuel costs by Rs. 15 to Rs. 16 per tonne. A 25 per cent replacement level could therefore save Rs. 75 to Rs. 80 per tonne and expand operating margins by 140 to 160 basis points.

Cement producers are also assessing carbon capture, utilisation and storage, although high implementation costs, energy requirements and limited transport and storage infrastructure are expected to slow commercial adoption. The government has proposed Rs. 200 bn over five years to support deployment across key sectors. Meanwhile, companies are targeting thermal substitution rates of 10 to 15 per cent over the next three to five years, compared with the current industry level of around 6 per cent.