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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Dhanekula Institute Signs MoU with Adani Cement

Agreement to expand internships, industrial visits and practical learning

Published

16 hours ago

November 5, 2026

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The Department of Civil Engineering at Dhanekula Institute of Engineering & Technology, Ganguru, organised an industrial interaction programme under the Adani FutureX Programme on Thursday. The programme focused on strengthening engagement between the institute and the cement industry while giving students greater exposure to professional practices.

Yedukondalu, technical head for Andhra Pradesh and Telangana at Adani Cement, delivered a technical lecture on concrete as a man-made material. The session covered the importance of concrete in construction, its properties and applications, and its significance in modern infrastructure development.

The lecture also addressed the role of quality cement and suitable concrete technology in supporting durable and sustainable construction. The discussion connected classroom learning with the technical considerations involved in infrastructure projects and construction practices.

A key part of the programme was the signing of a memorandum of understanding (MoU) between the Department of Civil Engineering and Adani Cement under the Adani FutureX Partnership Agreement. The agreement is intended to strengthen industry-academia collaboration through opportunities for student internships and industrial visits.

The initiative is expected to provide students with practical exposure, improve their understanding of industrial practices and help bridge the gap between theoretical knowledge and real-world applications. Dhanekula Institute Chairman Dhanekula Ravindranath Tagore, Secretary Dhanekula Venkata Bhavani Prasad and Director DKRK Ravi Prasad supported the initiative, with the institute leadership highlighting the importance of industry-institution interaction in enhancing students’ technical employability.

Concrete

JK Lakshmi Cement Begins Rs. 110 bn Assam Plant Project

Project Kamakshi will produce 2.5 mn t of cement annually by FY2029.

Published

16 hours ago

November 5, 2026

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JK Lakshmi Cement has laid the foundation stone for Project Kamakshi, its first integrated cement manufacturing facility in Assam, marking the company’s entry into Northeast India. The groundbreaking ceremony took place at Umrangso village in Dima Hasao district in the presence of Assam Chief Minister Himanta Biswa Sarma.

The project involves an investment of Rs. 110 bn, including the mining lease. It will have annual cement production capacity of 2.5 mn t and a 1 mn t clinkerisation unit, with completion scheduled for FY2029.

The facility is expected to create more than 2,000 jobs and will primarily serve the growing Northeast market. It will also include dedicated railway sidings for transporting raw materials and finished cement, supporting supply chain reliability and regional distribution.

Chairperson and Managing Director Vinita Singhania said the project represented the beginning of a long-term relationship with Assam and the wider Northeast. She said the plant would help provide locally produced cement, employment and dependable supplies as the region’s infrastructure development accelerated, while enabling the company to grow alongside the communities it serves.

The investment supports JK Lakshmi Cement’s strategy of expanding into high-growth markets beyond its established presence in Northern, Western and Eastern India. The company expects the project to contribute to regional economic development and infrastructure growth while pursuing its long-term objective of achieving net-zero emissions by 2047.

Concrete

Kshatriya Engineering College Signs MoU with Adani Cement

Agreement to provide students with industrial exposure and training

Published

16 hours ago

November 5, 2026

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The civil engineering department of Kshatriya Engineering College in Nizamabad has signed a memorandum of understanding (MoU) with Adani Cement to provide students with industry-oriented training and practical exposure. The agreement is intended to connect classroom learning with workplace requirements in the construction sector.

Under the partnership, students will receive opportunities to take part in industrial visits and internships. The arrangement will also include guest lectures by industry experts and guidance on live projects, allowing students to gain first-hand understanding of industry practices and emerging construction technologies.

College secretary and correspondent Aljapur Devender said the initiative was designed to bridge the gap between academic instruction and industry expectations. He said the collaboration would help students develop practical skills and improve their employment prospects after completing their studies.

Principal Dr Katakam Srinivas said exposure to industrial practices was important for civil engineering students and would complement their academic learning. He said the MoU would support the development of their technical knowledge and confidence through greater familiarity with professional work environments.

Administrative officer B. Narender said the collaboration would familiarise students with modern construction technologies, quality standards and project management practices. Civil engineering department head N. Deepika said the agreement would help students understand recent developments in the construction sector and prepare for professional careers. The college said the partnership would give learners a broader view of the processes and standards followed in the industry, while helping them relate their academic studies to practical project requirements.