Economy & Market
Market Watch (October-2013)
Published
4 years agoon
By
admin
Cement stocks underperform Cement stocks have corrected sharply over the past couple of months, due to growing macro concerns over weakening GDP growth, low infra and realty spends, and unbridled INR depreciation, further dimming the outlook for cement demand. INR depreciation is likely to increase costs (fuel and freight) for cement companies, though their limited US$ debt exposure insulates the balance sheet. While the rupee has corrected upwards against the USD, its sustainability is still in doubt.
Q1FY14 lower EBITDA/tonne
Cost remained flattish to moderately higher in Q1FY14 with marginal push in energy cost and raw material cost coupled with negative operating leverage. Due to the high base of last year, EBITDA for companies dipped in the 18% – 31% range. The current quarter too, is high base and with no improvement in demand and prices so far, earnings are expected to be disappointing in Q2FY14 as well.
Increased clinker consumption
Clinker consumption in the cement manufacturing process typically goes up during periods of high moisture content such as the monsoons. Early monsoons this year have driven clinker consumption higher YoY in Q1FY14, leading to an increase in power and fuel cost per tonne for manufacturers.
Coal India pricing
Effective June 2013, Coal India increased prices of C, D and E-grade coal by ~10%, while lowering prices for Grades A and B by a similar percentage (~12%). A major chunk of domestic coal purchased by the cement industry constitutes C, D and E-grade coal, which is used both for cement manufacture and for captive power generation. Further, higher petcoke prices would have also impacted fuel costs. However, the recent decline in e-auction prices could bring partial relief to major players.
Higher freight cost from rail surcharge
The Indian Railways increased rail freight by 5% effective 1 April, leading to higher landed cost of coal for manufacturers.
Pricing power holds key
Pricing power is essential for the companies to improve profitability. During the first quarter, while ACC saw flat volume growth, UltraTech and Ambuja saw their volumes decline by three per cent each, compared to the year ago quarter. The per- tonne realisations declined five-seven per cent for most companies, with the exception of UltraTech that saw flat realisations.
Diesel price hike
State-owned oil companies demanded a one-time steep increase in diesel prices to make for the widening losses, with the value of rupee dropping by 12 per cent against the US dollar making imports costlier. In the first week of September, diesel prices were increased by 50 paise a litre, excluding local taxes. The increase in diesel prices was the eighth since January. This recent diesel price hike will increase freight costs for ACC, Ambuja, India Cements, UltraTech and Grasim by Rs.70-100/tonne. Since, diesel is mainly used for transportation of cement and raw materials like coal and fly ash, industry experts say it will be adding up to the cost of sales and not the production cost. Taking into account the costs involved in transportation in terms of per- tonne- per- kilometre, on industry´s level it would result in a hike of Rs 1 on a 50 kg bag of cement. Transportation of cement through road accounts for 55 per cent while the rest is shipped largely by rail and to some extent, by sea. Companies will have to pass it on to consumers..
As and when the government bites the bullet and raises diesel prices at one shot, cement companies will have to take more of a burden. Limited visibility on recovery of the investment cycle could continue to dampen the prospects of demand revival. Cement is among the sectors that can see downgrades as the RBI is unlikely to reverse its tightening stance in a hurry and government spending cuts are likely. A good monsoon is expected to bring some respite as cement demand may start improving in October. Volumes are expected to rise in the second half, led by election-led government spending. Now with the INR free-fall resulting in a higher oil subsidy burden, government capital spending may not increase appreciably in H2FY14. Reduced odds of cheaper funding in the system also put in question any sizeable increase in private investments during H2FY14..
While there are no signs of a recovery in demand due to absence of corporate capex and low infra spend, companies will need to further improve efficiencies in order to minimise the impact of weak cement prices. Additionally, with cash flows being impacted in the near term due to challenging macro environment, there will be a slowdown in new project announcement, especially from regional players..
UltraTech Cement, a Birla group company, is our preferred exposure in the large-cap cement space. One, its all-India exposure helps negate fluctuations in offtake and prices in regional markets. Two, the company is growing sales by expanding its market reach. Three, the company controls its costs well, a key advantage in the current scenario of high input costs and drop in realisation for cement players..
ACC – highlights:
ACC is coming up with a Rs.600- crore cement plant in Kharagpur town of West Bengal. It has started the construction for the new unit. The new cement factory will start production after three years and it would produce 15 lakh tonnes of cement daily. It is also planning to invest Rs.3,000 crore to expand its capacity by nearly four million tonnes a year in three eastern region States in the next three years.
ACC plans are afoot for expanding capacities at two existing plants Jamul in Chhattisgarh and Sindri in Jharkhand – the company expects to start construction of a 1.5 million tonne grinding unit at Kharagpur by next January next. The company plans to increase its capacity 10 mt a year from the existing 6 mt a year in three years in the east. This will entail an investment of about Rs.3,000 crore. The projects will be financed through internal accrual.
UltraTech Cement – highlights:
UltraTech Cement announced acquisition of Jaiprakash Associates´ cement assets in Gujarat (4.8 mTPA) for ~Rs 38billion (US$125/t). This is not a big climb-down from a year ago, when media reported likely valuation of Rs 42billion. However, there are definite positives:
1)Removal of a substantial volume-driven competitor,
2)Addition of 4.8 mTPA at ~Rs 8,000/t which can generate ~Rs 550/t of EBITDA straightaway in UTCEM´s hands,.
3)Limestone reserves worth 90 yrs at present capacity and option to scale up substantially in Kutch. Given its own substantial capex commitments (~Rs 78bn in FY14-15), the leverage (0.41x net D/E in FY14E) may border on uncomfortable.
Breakeven requires an EBITDA/t of ~Rs1,200, and the deal will result in EPS dilution for sure.
Concerns
Additional capacities coming on stream and/or fall in growth of demand could lead to decline in cement prices and in turn, lower realisations. There could also be a pressure on margins, which may have to be offset by control in costs. Rise in input costs like coal, slag, fly ash and gypsum could put pressure on margins as could increase in freight costs. Final resolution of the Competition Commission´s order if negative, could impact ACC´s and UTCL´s cash flows and profits. The latest restructuring proposal by Holcim could impact valuation of ACC in the interim.
Conclusions
CY13 could remain a challenging year due to a slowdown in demand, rise in cost pressure and inability to pass on the hike fully to consumers led by weak demand. Demand has continued to remain sluggish at the pan-India level during June-July. UTCL still has been the best performing large cap cement stock with outperformance of 16% in the last one year. As Ultratech is one of the most geographically diversified players in the Indian cement space, it could be the least impacted from ongoing slow-down seen across the industry.
Further, UTCL is valued the lowest in terms of EV/ton among its peers. On the back of weak topline growth trends, inability of the company to pass on any increase in operating expenses would lead to continued pressure on near-term EBITDA margins. The proposed deal of Holcim´s ownership in both ACC and Ambuja may result in UTCL enjoying premium valuations in the sector. However, a sharp revival in profitability is needed for UTCL stock price to perform.
Disclaimer: This document has been prepared by HDFC securities Limited. Publishers of ICR or HDFC securities Limited do not represent that it is accurate or complete and it should not be relied upon as such.
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Economy & Market
RAHSTA Roundtable Sets Agenda for Smarter, Safer Highways
Published
1 hour agoon
March 16, 2026By
admin
Roundtable discussions focus on innovation for safer highways.
Held on 12 March 2026 at Courtyard by Marriott, Mumbai, alongside the Infrastructure Today Airport Conclave, the RAHSTA Roundtable brought together stakeholders from across the highways and infrastructure ecosystem to shape the agenda for the 16th RAHSTA 2026, scheduled for 8–9 July 2026 at the Jio Convention Centre, Mumbai. The session focused on key industry themes including road construction, technology, safety and long-term sustainability.
Opening the discussion, Pratap Padode, Founder, FIRST Construction Council, said the roundtable marked the beginning of a broader consultative process leading up to the July event. The aim, he noted, is to bring together industry stakeholders to refine the agenda for discussions on the future of roads, bridges, tunnels and allied infrastructure.
Padode noted that while central road project awards have slowed in recent years, states are increasingly driving the next phase of infrastructure growth. Maharashtra, with its long-term road development plans and agencies such as MSRDC and MSIDC, is expected to play a significant role in this expansion.
RAHSTA Expo 2026 as a specialised platform dedicated to road infrastructure, covering highways, tunnels, bridges and flyovers along with construction technologies, safety systems and maintenance solutions. He also highlighted the growing importance of rural connectivity and said the organisers are engaging with government bodies to highlight rural road development initiatives.
Tanveer Padode, CIO, ASAPP Info Group, presented insights from IMPACCT, the group’s infrastructure intelligence platform. He pointed to a strong project pipeline despite slower highway awards earlier in the year, noting that states such as Maharashtra, Odisha and Arunachal Pradesh are emerging as key drivers of new projects. The data also revealed that only a small group of contractors participates in large-value infrastructure bids.
Lt Gen Rajeev Chaudhary, former Director General, Border Roads Organisation and Chairman of the RAHSTA Expo Committee, emphasised the need for stronger collaboration across the ecosystem, including policymakers, contractors, technology providers and financiers. He also called for addressing systemic issues within the sector and encouraged greater participation of women in infrastructure leadership.
The discussion also explored the evolving economics of road development. Phani Prasad Mandalaparthy, Associate Director, CRISIL Intelligence, noted that the slowdown in project awards reflects a shift towards higher-value logistics corridors rather than simple road widening projects. However, private participation through BOT and TOT models remains limited.
From the contractors’ perspective, Sudhir Hoshing, Whole-Time Director, Ceigall, said companies are becoming more selective in bidding, favouring projects with clearer payment mechanisms and efficient processes. While NHAI continues to offer greater operational clarity, states such as Uttar Pradesh and Bihar were cited as relatively supportive environments for project execution.
Durability and sustainability also emerged as key themes. Himanshu Agarwal, COO – Road & Infrastructure, Zydex Group India, highlighted the need to prioritise lifecycle performance and resilient pavements, while participants discussed the potential of alternative materials such as plastic waste, steel slag and industrial by-products in road construction.
Dr LR Manjunatha, Vice President, JSW Cement, emphasised that India has abundant fly ash, slag and other industrial materials that can improve durability and sustainability if integrated into specifications and policy frameworks.
Technology and equipment challenges were also discussed. Dr Lakshmana Rao Mantri, Dy General Manager, Afcons Infrastructure, highlighted the shortage of tunnel boring machines (TBMs), which is delaying several underground infrastructure projects. Participants agreed that developing domestic TBM manufacturing capabilities will be critical for future infrastructure expansion.
The future of concrete pavements was another area of discussion. Dr V Ramachandra, President, Indian Concrete Institute, stressed that the debate should focus on lifecycle performance rather than material choice alone, noting that evolving design standards are improving the feasibility of concrete roads.
Prof Dharamveer Singh of IIT Bombay added that while India has made significant progress in infrastructure development, stronger capacity building and better execution practices are essential to ensure consistent road quality.
The discussion also touched upon technology adoption in the sector. Rushabh Mamania, Partner & CBO, Roadvision, highlighted the growing role of AI in road infrastructure, noting that AI-driven monitoring systems are already being deployed across large stretches of national highways.
Overall, the roundtable underscored that the future of highway infrastructure will depend not only on the pace of construction but also on durability, safety, technology integration and sustainable materials. The discussions offered valuable insights that will help shape the agenda for RAHSTA 2026 and guide future collaboration within the industry.
Economy & Market
CTS Roundtable Charts Tech-Led Roadmap for Construction
Published
1 hour agoon
March 16, 2026By
admin
CTS Roundtable Maps Technology Roadmap for Construction
Ahead of the Construction Technology Show (Con Tech Show) 2026, industry leaders, technology innovators and academia came together in Mumbai to deliberate on how digitalisation, automation and industrialised construction can reshape the sector. The discussion made one thing clear: construction can no longer afford to treat technology as optional.
Held on 12 March 2026 at Courtyard by Marriott, Mumbai, alongside the Infrastructure Today Airport Conclave, the CTS Roundtable served as a precursor to the Construction Technology Show 2026, scheduled for 19–20 August 2026 at NESCO, Mumbai.
A platform to move from discussion to deployment
Opening the session, Pratap Padode, Founder and Editor-in-Chief, ASAPP Info Global Group, said construction technology has long remained close to his heart, especially given the sector’s traditionally slow pace of technology adoption. He noted that over the years, the Construction Technology Summit had steadily built interest, and the next step was now to expand it into a larger, more meaningful platform that could bring together technology providers, users, startups and innovators under one roof.
Padode said the vision for CTS is not limited to software alone. The platform aims to embrace all forms of technology that can improve construction efficiency, quality and execution—from digital tools and project management systems to lean construction, off-site fabrication and startup-led innovation. He also highlighted plans to deepen startup participation and create space for young companies to showcase emerging construction solutions.
Industry at a turning point
Moderating the roundtable, Naushad Panjwani, Chairman, Mandarus Partners, set the context by pointing out that the global construction industry, despite being a multi-trillion-dollar sector, continues to lag in productivity. He noted that while manufacturing has consistently improved efficiency, construction has remained slow to modernise.
Referring to both global and Indian trends, Panjwani underlined that the industry is now at a decisive moment. India, he said, is entering a major build cycle, and delivering the next phase of infrastructure and real estate growth through traditional methods alone is no longer viable. The goal of the roundtable, therefore, was not to debate technology in isolation, but to identify the most critical conversations that would bridge the gap between innovation and implementation.
His central message was clear: CTS 2026 must be shaped around themes that make CEOs, CIOs and CTOs feel they cannot afford to miss the event.
From BIM to AI, data to governance
A major theme that emerged through the discussion was the need for better data, better visibility and better decision-making. Dr Venkata Santosh Kumar of IIT Bombay echoed this, saying that the underlying data infrastructure itself needs attention. Construction projects, particularly remote ones, often face issues around connectivity, data collection and data use. Without this foundation, more advanced technologies cannot deliver their full value.
Chandra Vasireddy, CEO & Co-founder, Inncircles, expanded the discussion to governance, arguing that technology must help connect the many moving parts of a construction business. For him, the real value of digital transformation lies in creating better governance, clearer visibility and stronger business outcomes.
Tejas Vara of Inncircles stressed the importance of timely site data for leadership teams, especially in large and remote projects where decisions on materials, machinery and manpower often get delayed because information does not reach headquarters in time.
The role of AI also featured prominently. Rushabh Mamania, Partner and CBO, Roadvision said that while AI and machine learning are now common terms, vision intelligence and language intelligence have still not deeply penetrated the construction sector. He emphasised that startups in India are building relevant AI-led solutions and are already attracting international interest, showing that innovation need not be imported—it can be built locally and scaled globally.
Industrialised construction gains ground
The roundtable also placed strong emphasis on industrialised construction methods. Kalyan Vaidyanathan, CTO – Construction & R&D, Tvasta, called for greater focus on off-site fabrication and the broader industrialisation of construction. Bhargav Jog, General Manager, Dextra, highlighted precast technology and alternative sustainable materials as areas with immediate relevance.
Several participants agreed that modular, precast and pre-engineered approaches are no longer niche ideas. They are increasingly becoming practical responses to the sector’s challenges around labour shortage, timelines, quality control and predictability.
Anup Mathew, Sr VP & Business Head, Godrej, argued that the industry needs a fully integrated approach—from design and procurement to execution and asset management. Unless these are connected, technology adoption will remain fragmented and sub-optimal. He pointed to pre-engineered and modular systems as examples of how industrial thinking can compress timelines, improve quality and reduce dependence on difficult on-site conditions.
Adoption remains the biggest hurdle
While there was broad agreement on the promise of technology, the discussion repeatedly returned to one fundamental challenge: adoption.
Abhishek Kumar, COO, LivSYT, observed that the market is crowded with solutions, but many buyers still struggle to evaluate which technology suits which use case. According to him, the industry needs clearer frameworks to help users select, compare and adopt solutions, rather than expecting a single platform to solve every problem.
Dr Tenepalli JaiSai, Associate Professor, School of Construction(SoC), NICMAR University, noted that isolated technologies will not solve the productivity problem by themselves. What is required is an integrated Construction 4.0 approach, where digital, physical and cyber-physical systems work together rather than in silos.
That concern around silos was reinforced by Subodh Dixit, former Director, Shapoorji Pallonji, who said the issue is not just that technologies are disconnected, but that stakeholders are as well. Clients, consultants, contractors and partners often operate with different priorities. Unless these silos are broken, technology will struggle to percolate across the full project value chain.
Harleen Oberoi, Project Management, Tata Realty shared a practical perspective from the client side, saying that successful BIM implementation requires investment across the ecosystem, not just within one organisation. Trade partners, vendors and other stakeholders must also be trained and aligned if the technology is to deliver its intended results.
Beyond buzzwords
A notable takeaway from the session was that the industry is moving past the phase of treating technology as a buzzword. Participants repeatedly stressed that the real question is not whether technology should be used, but where it creates measurable value and how that value can be scaled.
The conversation also expanded beyond mainstream themes to include repairs and rehabilitation, construction and demolition waste, sustainability, circular economy, green sourcing, carbon measurement, design interoperability, generative design, robotics, and the role of horticulture and greener built environments.
Setting the agenda for CTS 2026
By the close of the session, the roundtable had surfaced a strong set of themes for the upcoming show: BIM and digital twins, AI and data platforms, industrialised construction, startup innovation, governance-led technology adoption, robotics, sustainable materials, and integrated project delivery.
More importantly, the session established CTS 2026 as more than an exhibition. It is shaping up to be a serious industry platform where users, technology providers, researchers and policymakers can collectively define the future of construction.
As Padode noted in his closing remarks, the conversation will continue through further consultations and possibly webinars in the run-up to the show. If the roundtable is any indication, CTS 2026 will aim not merely to showcase technology, but to push the industry towards meaningful adoption at scale.
SEEPEX introduces BN pumps with Smart Joint Access (SJA) to improve efficiency, reliability, and inspection speed in demanding rock blasting operations.
Designed for abrasive and chemical media, the solution supports precise dosing, reduced downtime, and enhanced operational safety.
SEEPEX has introduced BN pumps with Smart Joint Access (SJA), engineered for the reliable and precise transfer of abrasive, corrosive, and chemical media in mining and construction. Designed for rock blasting, the pump features a large inspection opening for quick joint checks, a compact footprint for mobile or skid-mounted installations, and flexible drive and material options for consistent performance and uptime.

“Operators can inspect joints quickly and rely on precise pumping of shear-sensitive and abrasive emulsions,” said Magalie Levray, Global Business Development Manager Mining at SEEPEX. “This is particularly critical in rock blasting, where every borehole counts for productivity.” Industry Context
Rock blasting is essential for extracting hard rock and shaping safe excavation profiles in mining and construction. Accurate and consistent loading of explosive emulsions ensures controlled fragmentation, protects personnel, and maximizes productivity. Even minor deviations in pumping can cause delays or reduce product quality. BN pumps with SJA support routine maintenance and pre-operation checks by allowing fast verification of joint integrity, enabling more efficient operations.
Always Inspection Ready
Smart Joint Access is designed for inspection-friendly operations. The large inspection opening in the suction housing provides direct access to both joints, enabling rapid pre-operation checks while maintaining high operational reliability. Technicians can assess joint condition quickly, supporting continuous, reliable operation.
Key Features
- Compact Footprint: Fits truck-mounted mobile units, skid-mounted systems, and factory installations.
- Flexible Drive Options: Compact hydraulic drive or electric drive configurations.
- Hydraulic Efficiency: Low-displacement design reduces oil requirements and supports low total cost of ownership.
- Equal Wall Stator Design: Ensures high-pressure performance in a compact footprint.
- Material Flexibility: Stainless steel or steel housings, chrome-plated rotors, and stators in NBR, EPDM, or FKM.
Operators benefit from shorter inspection cycles, reliable dosing, seamless integration, and fast delivery through framework agreements, helping to maintain uptime in critical rock blasting processes.
Applications – Optimized for Rock Blasting
BN pumps with SJA are designed for mining, tunneling, quarrying, civil works, dam construction, and other sectors requiring precise handling of abrasive or chemical media. They provide robust performance while enabling fast, reliable inspection and maintenance.With SJA, operators can quickly access both joints without disassembly, ensuring emulsions are transferred accurately and consistently. This reduces downtime, preserves product integrity, and supports uniform dosing across multiple bore holes.
With the Smart Joint Access inspection opening, operators can quickly access and assess the condition of both joints without disassembly, enabling immediate verification of pump readiness prior to blast hole loading. This allows operators to confirm that emulsions are transferred accurately and consistently, protecting personnel, minimizing product degradation, and maintaining uniform dosing across multiple bore holes.
The combination of equal wall stator design, compact integration, flexible drives, and progressive cavity pump technology ensures continuous, reliable operation even in space-limited, high-pressure environments.
From Inspection to Operation
A leading explosives provider implemented BN pumps with SJA in open pit and underground operations. By replacing legacy pumps, inspection cycles were significantly shortened, allowing crews to complete pre-operation checks and return mobile units to productive work faster. Direct joint access through SJA enabled immediate verification, consistent emulsion dosing, and reduced downtime caused by joint-related deviations.
“The inspection opening gives immediate confidence that each joint is secure before proceeding to bore holes,” said a site technician. “It allows us to act quickly, keeping blasting schedules on track.”
Framework agreements ensured rapid pump supply and minimal downtime, supporting multi-site operations across continents
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CTS Roundtable Charts Tech-Led Roadmap for Construction
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RAHSTA Roundtable Sets Agenda for Smarter, Safer Highways
CTS Roundtable Charts Tech-Led Roadmap for Construction
NDMC Rolls Out Intensive Sanitation Drive Across Lutyens Delhi
UltraTech Appoints Jayant Dua As MD-Designate For 2027


