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Fuel for Thought

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As the world moves towards novel exchange denominators like cryptocurrency, the cement industry is busy battling one of the oldest currencies in the world – fuel.

With the war between Russia and Ukraine continuing to rage, fuel prices have hit the roof, as can be seen from the rising cost of pet coke, diesel, freight and energy, which are important factors for cement manufacturing and mobilisation. The most likely scenario would have been a resulting increase in cement price, however the price correction did not follow through and the cement sector witnessed flat rates in May and a dip in prices in June across India. This has adversely affected the profitability of cement. Amid elevated costs of raw materials and decrease in demand, Emkay Global Financial Services has cut its earnings before interest tax depreciation and amortisation (EBITDA) estimates for the sector by 5-6 per cent for FY 23/24/25.
Apart from this, currently sustainability is also detrimental to cost efficiency for cement companies. Green energy initiatives, such as alternative fuel and raw materials (AFR) and waste heat recovery system (WHRS), are adding to the production costs. These costs are not getting translated into price hike, leaving the cement makers to bear the brunt. However, sustainable production and net zero targets are not to be toyed with, and each player has to put in their best effort. With regards to input costs, experts are hopeful of price corrections through rise in demand for cement in the months to come.
All eyes are right now on Russia, thanks to the compelling need to sourcing fuel from low-cost destinations. Giants from the steel and power industries are already dealing with Russia for its pulverised coal. India has also shown an interest in increasing its import of thermal and coking coal from Russia, and is estimated to import 40 million tonnes tonnes by 2035.
Corrections in pricing and innovations in raw materials and alternative energy might be at different ends of the spectrum but they are bound to have a long lasting impact on cement companies, as each player puts in their best effort to win this fuel fight.

Concrete

Star Cement launches ‘Star Smart Building Solutions’

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Star Cement has launched ‘Star Smart Building Solutions,’ a new initiative aimed at promoting sustainable construction practices, as per a recent news report. This venture introduces a range of eco-friendly products, including tile adhesives, tile cleaners and grouts, designed to enhance durability and reduce environmental impact. The company plans to expand this portfolio with additional value-added products in the near future. By focusing on sustainable materials and innovative building solutions, Star Cement aims to contribute to environmentally responsible construction and meet the evolving needs of modern infrastructure development.

Image source:https://www.starcement.co.in/

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Concrete

Nuvoco Vistas reports record quarterly EBITDA

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Nuvoco Vistas reported its highest-ever quarterly consolidated EBITDA of Rs.556 crore in Q4 FY25, with annual EBITDA at Rs.1,391 crore. Cement sales reached 19.4 MMT in FY25, with Q4 contributing 5.7 MMT. Revenue rose 4 per cent YoY to Rs.3,042 crore in Q4. Net debt reduced by Rs.390 crore to Rs.3,640 crore. The company received NCLT approval for acquiring Vadraj Cement, targeting 31 MMTPA capacity by FY27. Key marketing initiatives, expanding RMX and MBM businesses, and a focus on sustainability (457 kg CO2/tonne) drove performance. Nuvoco remains focused on premiumisation, operational efficiency, and market expansion.

Image source:nuvoco.com

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Concrete

UltraTech Cement increases capacity by 1.4Mt/yr

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UltraTech Cement has expanded its production capacity by 1.4 million tonnes per annum (Mt/yr) through a combination of debottlenecking efforts and operational efficiency upgrades across several of its plants. The enhancements include an addition of 0.6Mt/yr in grinding capacity at the Nagpur facility in Maharashtra and a combined 0.8Mt/yr at the Panipat and Jhajjar units in Haryana. With these upgrades, the company’s total domestic grey cement capacity has risen to 184.8Mt/yr, while its global capacity now stands at 190.2Mt/yr.

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