Concrete

Ready for the juggler’s act?

Published

4 years ago

December 13, 2022

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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

Nuvoco Marks 10 Years, Targets 35 MMTPA Capacity by FY28

Nuvoco celebrates a decade of growth, targeting 35 MMTPA cement capacity by FY28.

Published

23 hours ago

October 13, 2026

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Nuvoco Vistas Corporation Limited is celebrating a decade of operations under the theme ‘Dus Saal Bemisaal’, highlighting its expansion in India’s building materials sector. The company has grown from a single cement manufacturing facility into a diversified organisation operating across cement, ready-mix concrete (RMC) and modern building materials.

The company’s journey began in 2014 when its parent, Nirma Group, commissioned a 2 million metric tonnes per annum (MMTPA) greenfield cement plant at Nimbol, Rajasthan. A major milestone followed in October 2016 with the acquisition of Lafarge India, significantly expanding its manufacturing footprint.

Nuvoco strengthened its market presence through the acquisition of Emami Cement, now NU Vista Limited, in 2020, followed by its public listing in 2021. In April 2025, the company added Vadraj Cement to its portfolio, strengthening its presence in western India.

Nuvoco has an operating cement capacity of 27 MMTPA and 14 manufacturing units, including the Kutch and Sachana facilities in Gujarat, which are in advanced stages of completion. It also operates 58 ready-mix concrete plants across India and offers a range of modern building materials.

The company aims to increase its cement capacity to 35 MMTPA by FY2027-28, representing approximately 15-fold growth over the decade.

Reflecting on the milestone, Hiren Patel, Chairman, Nuvoco Vistas Corporation Limited, said, “From our beginnings at Nimbol to the organisation we are today, every milestone has added a new chapter to Nuvoco’s journey and strengthened our belief in building for the long term.”

The company continues to focus on capacity expansion, operational efficiency, innovation and sustainability while strengthening its position in India’s construction materials market.

Concrete

J&K Government Notifies City Gas Distribution Policy

Policy targets PNG and CNG expansion across all 20 districts

Published

23 hours ago

October 13, 2026

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Jammu and Kashmir government has notified the City Gas Distribution (CGD) Policy, 2026, following its approval by the Council of Ministers headed by Chief Minister Omar Abdullah. The policy sets out a phased framework for expanding Piped Natural Gas (PNG) and Compressed Natural Gas (CNG) access for households, businesses, industries and the transport sector across the Union Territory.

CGD networks will be expanded in phases across all 20 districts, with the aim of bringing reliable natural gas closer to consumers and supporting a gradual shift from conventional fuels. The government said the policy is designed to improve energy access while creating an investor-friendly and time-bound environment for gas distribution projects.

The policy provides for single-window and time-bound clearances, streamlined procedures for setting up CNG stations and standardised norms for the Right of Way. These measures are intended to reduce procedural delays, simplify project implementation and facilitate investment in natural gas infrastructure.

It also prioritises gas connectivity for major industrial estates, including those in Kathua, Samba and Pulwama. Improved access to natural gas is expected to support industrial activity, enhance energy efficiency and help businesses manage fuel costs, while strengthening their competitiveness and encouraging investment in the clean-energy sector.

The policy is also expected to create opportunities for local employment, apprenticeships and skill development in the construction, operation and maintenance of gas distribution networks and related services. Abdullah described the measure as an important step towards cleaner growth, sustainable development and a modern energy ecosystem in Jammu and Kashmir, saying it would expand reliable energy access and support industry and investment.

Concrete

JSW Cement Commissions 1 MTPA Grinding Unit at Nagaur

Nagaur unit lifts JSW Cement’s grinding capacity to 25.10 MTPA

Published

23 hours ago

October 13, 2026

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JSW Cement has commissioned an additional 1 MTPA grinding unit at Nagaur in Rajasthan. MTPA refers to million tonnes per annum. The commissioning has increased the company’s total cement grinding capacity to 25.10 MTPA, while its total clinker manufacturing capacity, including capacity at its joint venture JSW Cement FZC, stands at 9.74 MTPA.

The company began operations in North India in March 2026 with the Nagaur Integrated Plant, which comprised a 3.30 MTPA clinkerisation unit and a 2.50 MTPA cement grinding unit. Following the latest commissioning, the plant’s total cement grinding capacity has risen to 3.50 MTPA.

The expanded facility is expected to strengthen JSW Cement’s ability to serve cement demand across Rajasthan, Haryana, Punjab and the National Capital Region. The project has been funded through a combination of equity and long-term debt, according to the company.

During the quarter ended 30 September 2026, JSW Cement also commissioned an Alternate Fuel Handling System and a Waste Heat Recovery System (WHRS) at the Nagaur Integrated Plant. The company said the additions formed part of its broader effort to improve operational efficiency at the facility.

Nilesh Narwekar, chief executive officer of JSW Cement, said the additional grinding capacity was a strategic priority that would support the company’s expansion in North India. He added that the unit had been commissioned within the expected timeline, reflecting the company’s project execution capabilities, and that the alternate fuel and waste heat recovery systems were expected to substantially reduce production costs going forward.