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Effects of Macronomics

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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.

Concrete

BMC Cement Concretisation Cuts Pothole Repairs By 70 Per Cent

Project worth Rs 170 billion (Rs 170 bn) aims to concretise 1,900 km by 2027

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The Brihanmumbai Municipal Corporation’s cement concretisation project, valued at Rs 170 billion (Rs 170 bn), has reduced expenditure on pothole repairs by 70 per cent over three years. Spending on repairs fell from Rs 2.02 billion in 2023–24 to Rs 1.56 billion in 2024–25 and then to Rs 890 million (Rs 890 mn) in 2025–26. The current tender is expected to be about Rs 440 million, representing a further 50 per cent reduction.

The project is being executed in two phases, with Phase I covering 307 km from October 2023 and Phase II covering 370 km from October 2024. The Indian Institute of Technology is auditing Phase II and will now also audit Phase I to ensure quality and accountability. Mumbai’s total road network spans approximately 2,050 km, of which about 1,200 km had been converted to cement concrete before 2022.

Since 2022 an additional 677 km were taken up for concretisation and nearly 71 per cent of that work, amounting to 481 km, has been completed. Municipal officials indicated that 10–15 per cent of the remaining work is expected to be completed by May 2026 and another 10 per cent by December 2026. The entire programme is scheduled for completion by May 2027, by which time nearly 1,900 km of Mumbai’s roads are expected to be fully concretised.

The administration has also developed a real time dashboard that displays detailed information about contracts, contractors and progress and citizens can access the latest updates online. The dashboard includes contact details for the civic officials and contractors responsible for particular roads to enhance transparency and accountability. The commissioner directed that ongoing works be completed by 31 May ahead of the monsoon to safeguard completion targets and minimise disruption.

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Concrete

Shree Cement Approves Rs 1,800 Crore Meghalaya Plant

Integrated unit to be completed by quarter ending March 2028

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Shree Cement has approved the establishment of an integrated cement plant in Meghalaya, signalling a targeted capacity expansion to serve regional demand. The board cleared a unit at Village Daistong in East Jaintia Hills District with a clinker capacity of zero point nine five million tonnes per annum (mn t) and a cement capacity of zero point nine nine million tonnes per annum (mn t). The project was approved on April four, 2026 and is designed as a new addition to the company’s production network where it currently has no existing plant.

The company has earmarked an estimated investment of Rs 1,800 crore (Rs 18 billion (bn)) for the project, which will be financed through a mix of internal accruals and debt. Management has indicated a balanced financing strategy to preserve cash flows while supporting long-term growth and operational investment. The financing approach is intended to avoid over reliance on external borrowing and to maintain financial discipline during the build out.

The plant is expected to improve logistics efficiency and compress distribution distances to emerging demand centres in the north-east, potentially lowering transportation costs and lead times. By locating production closer to demand the company aims to strengthen market access and respond more effectively to regional construction activity. The project forms part of a broader strategy to diversify the production base across geographies and reduce concentration risk.

Execution is planned over a multi-year window with completion targeted by the quarter ending March 2028 and the company will proceed with construction and requisite regulatory clearances. The integrated design is intended to enhance operational control and production efficiency once operational. The decision follows a regulatory filing dated April four, 2026 and the disclosed details have not been independently verified.

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Concrete

WCA Welcomes SiloConnect as associate corporate member

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The World Cement Association (WCA) has announced SiloConnect as its newest associate corporate member, expanding its network of technology providers supporting digitalisation in the cement industry. SiloConnect offers smart sensor technology that provides real-time visibility of cement inventory levels at customer silos, enabling producers to monitor stock remotely and plan deliveries more efficiently. The solution helps companies move from reactive to proactive logistics, improving delivery planning, operational efficiency and safety by reducing manual inspections. The technology is already used by major cement producers such as Holcim, Cemex and Heidelberg Materials and is deployed across more than 30 countries worldwide.

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