Concrete

Effects of Macronomics

Published

2 years ago

September 23, 2022

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In any industry, it always helps to take into account the macro perspective as it aids one in navigating the broader economic trends. As per the assessments of the April-June quarter (Q1), India’s gross domestic product (GDP) increased 13.5 per cent, which was lower than RBI’s estimated 16.2 per cent. A fiscal deficit of Rs 3.41 trillion was noted during the April-July period this financial year.

Moody’s Investors Service has revised India’s economic growth projection for 2022 to a reduced 7.7 per cent. The downward revision is due to rising interest rates, an uneven monsoon and global demand slowdown, which is not surprising as the Russia-Ukraine war continues to cast its shadow. The eight core infrastructure sectors, including cement, slowed down to 4.5 per cent in July, which afforded the service sector to shine in the first quarter.

Taking a bird’s eye view of the cement sector, the upward moving trends are looking promising and that has kept optimism buoyed amongst the players. Monsoon is a tricky time for the cement industry as construction takes a backseat and price fluctuations in cement are rife.

As per Kotak Institutional Equities report, cement prices have declined about a percent sequentially in the second quarter. Cement price was recorded at Rs 384 per 50 kg bag in August pan-India. In spite of a sluggish season, the demand is likely to soar in the coming months, and the key players in the industry are anticipating robust growth.

There is a lot that’s underway for cement manufacturers in terms of alternative raw materials, energy efficiency and eco-friendly processes. Given the infrastructure and construction boom that India is witnessing today, the cement segment is likely to perform well. However, the challenges that the sector faces are unique to it, and it remains to be seen how cement brands will innovate to overcome them.

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Concrete

GMDC Inks Long-Term Limestone Supply Deal With JK Cement

The agreement has been signed for supply of 250 million tonne.

Published

11 hours ago

February 3, 2025

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State-owned GMDC said it has entered into a long-term pact with JK Cement Ltd for the supply of limestone from its upcoming mine in Gujarat.

The agreement has been signed for supply of 250 million tonnes of limestone over a period of 40 years from its upcoming Lakhpat Punrajpur Mine in Lakhpat Taluka of Kutch district in Gujarat.

This agreement will help JK Cement Ltd in setting up an integrated mega-capacity cement plant, fostering industrial growth in the region.Kutch’s coastal proximity, improved access to domestic and international markets, and cost-efficient logistics position it as an ideal hub for cement production.

The state-owned company has five operational lignite mines in Kutch, South Gujarat, and Bhavnagar region.

Concrete

GMDC, J K Cement Ltd. Tie-up for Limestone from Lakhpat Punrajpur Mine

This agreement underscores GMDC Ltd.’s commitment to fostering industrial growt

Published

19 hours ago

February 3, 2025

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Gujarat Mineral Development Corporation Ltd. (GMDC) has signed a Long-Term Supply Agreement (LSA) with JK Cement Ltd. for the supply of 250 million tonnes of limestone over a period of 40 years from its upcoming Lakhpat Punrajpur Mine in Lakhpat Taluka of Kutch District in Gujarat. The signing event was chaired by the Chairman of GMDC Ltd. Dr. Hasmukh Adhia, IAS (Retd.) on January 29, 2025 and the agreement was officially formalised by Roopwant Singh, IAS, Managing Director of GMDC Ltd., and Anuj Khandelwal, Business Head – Grey Cement of JK Cement Ltd., representing their respective organisations.

This agreement marks a strategic partnership towards monetising the large limestone asset of GMDC Ltd. and benefiting both the partners. It will support J K Cement Ltd. in setting up a greenfield integrated mega-capacity cement plant, fostering industrial growth in the region. The collaboration will stimulate investment, enhance industrial development, and generate thousands of direct and indirect employment opportunities in Kutch, contributing significantly to the socio-economic progress of Gujarat. Kutch’s coastal proximity, improved access to domestic and international markets, and cost-efficient logistics position it as an ideal hub for cement production. Furthermore, this initiative will contribute substantially to the State Exchequer through revenue generation in the form of Royalty, National Mineral Exploration Trust (NMET) contributions, District Mineral Foundation (DMF) funds, and Goods & Services Tax (GST) on both limestone and cement production.

This agreement underscores GMDC Ltd.’s commitment to fostering industrial growth while ensuring the sustainable utilization of mineral resources, thereby strengthening Gujarat’s position as a leading industrial and economic State.

Concrete

JK Cement Acquires Majority Stake in Saifco Cement to Expand in J&K

Saifco has an annual turnover of around Rs 860 million.

Published

2 days ago

February 1, 2025

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JK Cement has made a significant move in its growth strategy by acquiring a 60% equity stake in Saifco Cement, a cement manufacturer based in Srinagar, Jammu and Kashmir. The acquisition, valued at approximately Rs 1.74 billion, was approved during a board meeting on January 25, 2025.

Located in Khunmoh, Srinagar, Saifco’s integrated manufacturing unit, which includes both clinker and grinding capacities, aligns with JK Cement’s expansion plans. Saifco has an annual turnover of around Rs 860 million, and this acquisition not only strengthens JK Cement’s presence in the region but also offers a strategic advantage in the competitive Indian cement industry.

Saifco’s facility, spread across 54 acres, has a clinker capacity of 0.26 million tonnes per annum and a grinding capacity of 0.42 million tonnes per annum. The site also holds captive limestone reserves across 144.25 hectares, with a mineable reserve of 129 million tonnes.

This deal, which is expected to close after receiving regulatory approvals, allows JK Cement to tap into Saifco’s established infrastructure, sidestepping the time-consuming process of greenfield expansion. The acquisition will also position JK Cement to benefit from Saifco’s established market presence and supply chain.

The move signals JK Cement’s ambition to expand further in the Jammu and Kashmir market and beyond, positioning Saifco as a key regional player under JK Cement’s umbrella. The acquisition could also lead to potential job creation and greater economic opportunities for local suppliers. As part of the integration, JK Cement is expected to bring operational synergies, improving production efficiency and cost management.

This deal is seen as a model for regional consolidation in India’s growing cement industry, with JK Cement’s established brand and distribution network poised to enhance Saifco’s operations and product offerings in the region.

(Greater Kashmir)