Concrete

Cement prices set to increase as expenses surge for cement makers

Published

4 years ago

May 6, 2022

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Power and fuel prices to rise by 10% in the April-June quarter

Cement prices are set to increase as costlier Asian thermal coal, and a higher gas price outlook in Europe is expected to surge expenses for cement manufacturers. Power and fuel prices are likely to rise by 10% in the April-June quarter because of a steep rise in coal and pet coke costs in March, UltraTech Cement Ltd told the media. UltraTech Cement Ltd told the media that price hikes would be passed on to consumers for profitability to enhance sequentially. In April, the pan-India cement maker indicated a price hike of Rs 30 a bag to make up for higher commodity prices. Cement makers tried a Rs 15 to Rs 20 a bag hike pan-India, led by sharper growths in the south and the east for April, as per the dealer checks by Kotak Institutional Equities. Only a portion of this would get absorbed, and more such increases could be attempted in the coming weeks. The prices rose 6% year-on-year on an all-India basis for the quarter ended March. For the quarter ended March, cost inflation, muted volume growth, and inadequate price hikes led to margin contraction. UltraTech said flat volumes and its power and fuel prices were higher than pan-India peers ACC Ltd and Ambuja Cements Ltd. However, its operating profit per tonne dropped the least. Mainly, the outperformance was driven by operating leverage benefits and more increased realisation—or what it makes on every tonne of cement—in the east. The margin of UltraTech is likely to contract given its inventory policy and also the recent sharp increase in global energy costs has yet to reflect in the power and fuel price of the company. Higher costs of pet coke and coal are reflected in the financials of the cement producers after a lag of 30-45 days. Margins contracted for ACC and Ambuja as their prices increased. As per the Motilal Oswal report, ACC estimates a 7% demand increase in 2022 compared with 11-13% seen by the industry in the last year. Ambuja Cements said that demand is expected to be driven by rejuvenation in real estate, promising 2022 crop outlook, India’s infrastructure push, and execution of production-linked incentives to encourage domestic demand.

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Also read: Cement industry witnesses surge of Rs 45-50 per bag in April

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Concrete

UltraTech Cement Expands in Andhra Pradesh with Rs. 26.5 bn

Petnikota plant adds 3.6 MTPA cement dispatch capacity

Published

18 hours ago

October 23, 2026

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UltraTech Cement has expanded its manufacturing footprint in Andhra Pradesh with the commissioning of Petnikota Cement Works, an integrated cement plant built with an investment of around Rs. 26.5 bn. The facility is located in Petnikota village in Kolimigundla mandal of Nandyal district, in the Rayalaseema region.

Construction of the plant began in May 2025. The facility has a clinkerisation capacity of 3.3 MTPA and a cement dispatch capacity of 3.6 MTPA, strengthening the company’s production and distribution presence in the State.

The plant is expected to provide direct employment to 650 people and indirect employment to another 2,000. It has been designed to operate entirely on green energy and does not have a captive thermal power plant. The project also uses no groundwater, according to information released by the Andhra Pradesh Government.

Nara Lokesh, Andhra Pradesh Minister for Information Technology, said in the release that the facility was taken from groundbreaking to commissioning in 14 months. He described the project as a state-of-the-art addition to the company’s operations in the State and said it would create 2,650 direct and indirect employment opportunities.

Petnikota Cement Works adds to UltraTech Cement’s manufacturing capacity in Andhra Pradesh while supporting industrial activity in Nandyal district. The plant’s energy design and stated groundwater-use policy are also intended to reduce the environmental impact of its operations. The company has identified the facility as part of its continuing capacity expansion in the Indian cement market.

Concrete

Nuvoco reports 13.5% revenue growth in Q2 FY27

Cement sales rose 9% to 4.7 MMT, while EBITDA increased 11%.

Published

18 hours ago

October 23, 2026

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Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.

The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.

On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid renewable energy project in Rajasthan. Once operational, the project is expected to generate about 100 million units of renewable electricity annually. The company expects it to reduce reliance on conventional power sources and improve long-term cost certainty across its Rajasthan operations.

Jayakumar Krishnaswamy, Managing Director, Nuvoco Vistas Corp. Ltd., said, “Q2 FY27 was a testament to resilient execution in a challenging operating environment. Despite intense and erratic rainfall in our key markets, global and regional logistics & supply chain disruptions, and elevated input costs stemming from ongoing geopolitical uncertainty, the Company delivered strong YoY growth in Revenue, EBITDA, and PAT. Our performance reflects the strength of our strategic levers of premiumisation and geographical mix optimisation, which helped realisations amid muted cement prices.”

He added, “During the quarter, the Company achieved a significant growth milestone with the successful commissioning of the 2 MMTPA Grinding Unit at Limla, Surat, underscoring our strong project execution capabilities. This achievement reinforces our confidence in delivering the remaining modules of the Vadraj Cement Project at Kutch and Sachana within the planned timelines. Looking ahead, while we remain mindful of evolving macroeconomic and geopolitical dynamics, we remain focused on operational excellence, accelerating premiumisation, optimising supply chain efficiencies, and executing our growth projects as planned.

Concrete

Meghalaya Cabinet Approves MCCL Closure, Writes Off Rs. 244.3 mn

Cabinet approves winding up of state-owned cement company

Published

5 days ago

October 19, 2026

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The Meghalaya Cabinet has approved the closure and winding up of Meghalaya Cherra Cement (MCCL), a state-owned cement company, with pending liabilities of approximately Rs. 244.3 mn to be written off as part of the process. The decision was announced by Chief Minister Conrad K Sangma on October 13, 2026.

The approved write-off comprises about Rs. 89 mn in sales tax dues and Rs. 155.3 mn in royalty dues. The Cabinet’s decision addresses the liabilities that remained after the company’s operations and enables the government to proceed with its formal closure.

Sangma said employee dues owed by MCCL had been settled in line with the state government’s commitment. The settlement of employee-related liabilities is a key part of the winding-up process and removes outstanding obligations to the company’s workforce.

The Chief Minister explained that MCCL is owned by the government, meaning the pending liabilities would otherwise involve transfers between the state government and its departments. Writing off the dues is intended to simplify the accounting and administrative steps required to complete the closure.

The decision is also intended to ensure that the winding-up does not create an additional financial burden for the state government. With employee payments settled and the sales tax and royalty liabilities addressed through the approved write-off, the Cabinet’s approval marks a further step towards completing the formal closure of MCCL.

The action follows the state government’s decision to discontinue the company and resolve its outstanding obligations through an orderly winding-up process. The approved measures cover the principal liabilities identified for settlement and allow the government to advance the remaining formal procedures associated with closing the state-owned enterprise.