Concrete

Ready for the juggler’s act?

Published

3 years ago

December 13, 2022

admin

Trade pundits had predicted a slow season for cement in the second quarter of 2022, primarily due to a decrease in construction activities. While cement companies were forewarned, what they did not expect was a severe cost inflation to make a grand entrance. This has negatively affected the profit margins for the September quarter. Increased input costs and straggling prices caused the tectonic plates of market dynamics to clash, resulting in a disheartening quarterly performance.
But the industry is not one to let setbacks derail its momentum. Most cement companies reported multi-year low margins, in terms of earnings before interest, taxes, depreciation, and amortisation (EBITDA) per tonne. However, once the monsoon season was behind us, and construction restarted in earnest, they were quick to recover. The following quarter is witnessing a rise in cement prices across the country, excepting parts of central India. Although the market response has not been as enthusiastic as it was in the previous year’s festive period, certain corrections are definitely being made. One of the important factors of these economic corrections is softening of input prices such as coal and pet coke. This combined with increase in cement prices can translate into a positive outlook for the cement sector in the current quarter. However, there is the big bull’ called ‘demand’ still to contend with! Softening of input costs and rising cement prices aren’t enough to bring the margins out of the red. The third ball that cement companies have to juggle with is the demand for cement.
To understand the demand quotient, we need to look at the socio-political scenario of our country. With the next general elections looming in 2024, the central government is likely to expedite several turnkey projects like the ones under the Pradhan Mantri Awas Yojana (PMAY)-Gramin. With the government likely to allocate an additional Rs.28,000 crore for the flagship rural housing programme, the social-political ball in this juggling act is likely to be the top most. Moreover, as the Russia-Ukraine war continues, there is the energy price volatility to contend with. And with that we have another ball to juggle!
Cement stocks’ performance largely depends on the growth of the economy as they are cyclical in nature. Cement companies are investing heavily in capex, thereby boosting the investor’s confidence.
With our expert eyes focussed on the economic trends of the cement industry, we are optimistically watching cement companies perform a juggling act by keeping the balls of input costs, demand, prices and socio-political influences, firmly in the air.

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Concrete

UltraTech Appoints Jayant Dua As MD-Designate For 2027

Executive named to succeed current managing director in 2027

Published

8 hours ago

March 10, 2026

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UltraTech Cement has appointed Jayant Dua as managing director (MD) designate who will take charge in 2027, the company announced. The appointment signals a planned leadership transition at one of the country’s largest cement manufacturers. The board has set a clear timeline for the handover and has framed the move as part of a structured succession plan.

Jayant Dua will be referred to as MD after assuming the role and will be responsible for overseeing operations, strategy and growth initiatives across the company’s network. The company said the designation follows established governance norms and aims to ensure continuity in executive leadership. The appointment is expected to allow a phased transfer of responsibilities ahead of the formal changeover.

The decision is intended to provide strategic stability as UltraTech Cement navigates domestic infrastructure demand and evolving market dynamics. Management will continue to focus on operational efficiency, capacity utilisation and cost management while aligning investments with long term objectives. The board will monitor the transition and provide further information on leadership responsibilities closer to the effective date.

Investors and market observers will have time to assess the implications of the announcement before the change is effected, and analysts will review the company’s outlook in the context of the succession. The company indicated that it will communicate any additional executive appointments or organisational changes as they are finalised. Shareholders were advised to refer to formal filings and company releases for definitive details on governance or remuneration.

The leadership change will be managed with attention to stakeholder interests and operational continuity, and the company reiterated its commitment to delivery on ongoing projects and customer obligations. Senior management will engage with employees and partners to ensure a smooth handover while maintaining focus on safety and compliance. Further updates will be provided through official investor communications in due course.

Concrete

Merlin Prime Spaces Acquires 13,185 Sq M Land Parcel In Pune

Rs 273 crore purchase broadens the developer’s Pune presence

Published

4 days ago

March 6, 2026

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Merlin Prime Spaces (MPS) has acquired a 13,185 sq m land parcel in Pune for Rs 273 crore, marking a notable expansion of its footprint in the city.

The transaction value converts to Rs 2,730 mn or Rs 2.73 bn.

The parcel is located in a strategic area of Pune and the firm described the acquisition as aligned with its growth objectives.

The deal follows recent activity in the region and will be watched by investors and developers.

MPS said the acquisition will support its planned development pipeline and enable delivery of commercial and residential space to meet local demand.

The company expects the site to provide flexibility in product design and phased development to respond to market conditions.

The move reflects an emphasis on land ownership in key suburban markets.

The emphasis on land acquisition reflects a strategy to secure inventory ahead of demand cycles.

The purchase follows a period of sustained investor interest in Pune real estate, driven by expanding office ecosystems and residential demand from professionals.

MPS will integrate the new holding into its existing portfolio and plans to engage with local authorities and stakeholders to progress approvals and infrastructure readiness.

No financial partners were disclosed in the announcement.

The firm indicated that timelines will depend on approvals and prevailing market conditions.

Analysts note that strategic land acquisitions at scale can help developers manage costs and timelines while preserving optionality for future projects.

MPS will now hold an enlarged land bank in the region as it pursues growth, and the acquisition underlines continued corporate appetite for measured expansion in second tier cities.

The company intends to move forward with detailed planning in the coming months.

Stakeholders will assess how the site is positioned relative to existing infrastructure and connectivity.

Concrete

Adani Cement and Naredco Partner to Promote Sustainable Construction

Collaboration to focus on skills, technology and greener practices

Published

4 days ago

March 6, 2026

admin

Adani Cement has entered a strategic partnership with the National Real Estate Development Council (Naredco) to support India’s construction needs with a focus on sustainability, workforce capability and modern building technologies. The collaboration brings together Adani Cement’s building materials portfolio, research and development strengths and technical expertise with Naredco’s nationwide network of more than 15,000 member organisations. The agreement aims to address evolving demand across housing, commercial and infrastructure sectors.

Under the partnership, the organisations will roll out skill development and certification programmes for masons, contractors and site supervisors, with training to emphasise contemporary construction techniques, safety practices and quality standards. The programmes are intended to improve project execution and on-site efficiency and to raise labour productivity through standardised competencies. Emphasis will be placed on practical training and certification pathways that can be scaled across regions.

The alliance will function as a platform for knowledge sharing and technology exchange, facilitating access to advanced concrete solutions, innovative construction practices and modern materials. The effort is intended to enhance structural durability, execution quality and environmental responsibility across developments while promoting adoption of low-carbon technologies and green cement alternatives. Companies expect these measures to contribute to longer term resilience of built assets.

Senior executives conveyed that the partnership reflects a shared commitment to strengthening quality and sustainability in construction and that closer engagement with developers will help integrate advanced materials and technical support throughout the project lifecycle. Leadership noted the need for responsible construction practices as urbanisation accelerates and indicated that the association should encourage wider adoption of green building norms and collaboration within the real estate and construction ecosystem.

The organisations said they will also explore integrated building solutions, including ready-mix concrete offerings, while supporting initiatives aligned with affordable and inclusive housing. The partnership will progress through engagements, conferences and joint training programmes targeting rapidly urbanising cities and growth centres where demand for efficient and environmentally responsible construction grows. Naredco, established under the aegis of the Ministry of Housing and Urban Affairs, will leverage its policy and advocacy role to support implementation.