Concrete

We are focusing on quality and innovation

Published

2 years ago

January 16, 2023

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Vinit Tiwari, Chief Sales Officer, Nuvoco Vistas Corp Ltd, discusses the factors of costs, competition and raw materials as well as cement prices within the relative context of overall market conditions.

Tell us about the increasing competition in the market with respect to your products?
Historically, the market has been competitive. Consolidation has resulted in an organised market, and processes will be streamlined as a result. We anticipate that competition will become more intense in the future as more companies enter the market with expanded capacity, but at Nuvoco, we are focusing on our key competencies: quality, innovation, and value for money. In view of our unique offerings, premium brands such as Concreto, Double Bull Master and Duraguard Microfiber expect to dominate the market and maintain their position.

Have you incorporated any change in your sales strategy to cut through the competition in the market?
At Nuvoco, we are advancing our core competency of offering premium products while maintaining our core values. As part of our efforts, we are strengthening our supply chain and digitising the purchasing process.
Our flagship brands, Concreto, Double Bull and Duraguard have performed exceptionally well in their respective markets. Over the past five years, Double Bull has become one of the fastest-growing cement brands in the country, with sales of more than 5 million tonnes. Duraguard offers a wide range of products that are technologically advanced and meet the needs of modern construction.
In FY 2021–22, the Modern Building Material (MBM) business sales and distribution network increased significantly, enhancing customer access to quality products and increasing sales revenue. Eventually, this will enable us to achieve our mission of becoming the leading manufacturer of building materials.

Tell us about new products being developed and how they are impacting your market share?
Nuvoco is committed to bringing new technologies to its product line through continuous research and development. Our recent additions are Duraguard Xtra F2F (premium composite cement), Concreto UNO (hydrophobic cement), Ecodure (green concrete) and Concreto Glyde (pile concrete) will help us to increase our market share.

Tell us about the challenges with in creased cement costs.
One of the primary concerns is that cement prices have not increased at a rate consistent with the increase in production and distribution costs. As we see it, this is an opportunity for the sector to analyse cost components by line item, from production to distribution. We are currently working on reducing our costs in order to remain competitive.

How do you view your sales in the next financial year in context to rising competition?
Competition has existed and will continue to exist. Continuing to build on our strengths, we strive to become the No. 1 premium selling company and the brand of choice. As far as growth is concerned, we have aggressive growth plans to become 25 MTPA by end of FY25 and further optimise our trade volumes.

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Jefferies’ Optimism Fuels Cement Stock Rally

The industry is aiming price hikes of Rs 10-15 per bag in December.

Published

2 weeks ago

December 4, 2024

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Cement stocks surged over 5% on Monday, driven by Jefferies’ positive outlook on demand recovery, supported by increased government capital expenditure and favourable price trends.

JK Cement led the rally with a 5.3% jump, while UltraTech Cement rose 3.82%, making it the top performer on the Nifty 50. Dalmia Bharat and Grasim Industries gained over 3% each, with Shree Cement and Ambuja Cement adding 2.77% and 1.32%, respectively.

“Cement stocks have been consolidating without significant upward movement for over a year,” noted Vikas Jain, head of research at Reliance Securities. “The Jefferies report with positive price feedback prompted a revaluation of these stocks today.”

According to Jefferies, cement prices were stable in November, with earlier declines bottoming out. The industry is now targeting price hikes of Rs 10-15 per bag in December.

The brokerage highlighted moderate demand growth in October and November, with recovery expected to strengthen in the fourth quarter, supported by a revival in government infrastructure spending.
Analysts are optimistic about a stronger recovery in the latter half of FY25, driven by anticipated increases in government investments in infrastructure projects.
(ET)

Concrete

Steel Ministry Proposes 25% Safeguard Duty on Steel Imports

The duty aims to counter the impact of rising low-cost steel imports.

Published

2 weeks ago

December 4, 2024

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The Ministry of Steel has proposed a 25% safeguard duty on certain steel imports to address concerns raised by domestic producers. The proposal emerged during a meeting between Union Steel Minister H.D. Kumaraswamy and Commerce and Industry Minister Piyush Goyal in New Delhi, attended by senior officials and executives from leading steel companies like SAIL, Tata Steel, JSW Steel, and AMNS India.

Following the meeting, Goyal highlighted on X the importance of steel and metallurgical coke industries in India’s development, emphasising discussions on boosting production, improving quality, and enhancing global competitiveness. Kumaraswamy echoed the sentiment, pledging collaboration between ministries to create a business-friendly environment for domestic steelmakers.

The safeguard duty proposal aims to counter the impact of rising low-cost steel imports, particularly from free trade agreement (FTA) nations. Steel Secretary Sandeep Poundrik noted that 62% of steel imports currently enter at zero duty under FTAs, with imports rising to 5.51 million tonnes (MT) during April-September 2024-25, compared to 3.66 MT in the same period last year. Imports from China surged significantly, reaching 1.85 MT, up from 1.02 MT a year ago.

Industry experts, including think tank GTRI, have raised concerns about FTAs, highlighting cases where foreign producers partner with Indian firms to re-import steel at concessional rates. GTRI founder Ajay Srivastava also pointed to challenges like port delays and regulatory hurdles, which strain over 10,000 steel user units in India.

The government’s proposal reflects its commitment to supporting the domestic steel industry while addressing trade imbalances and promoting a self-reliant manufacturing sector.

(ET)

Concrete

India Imposes Anti-Dumping Duty on Solar Panel Aluminium Frames

Move boosts domestic aluminium industry, curbs low-cost imports

Published

2 weeks ago

December 4, 2024

admin

The Indian government has introduced anti-dumping duties on anodized aluminium frames for solar panels and modules imported from China, a move hailed by the Aluminium Association of India (AAI) as a significant step toward fostering a self-reliant aluminium sector.

The duties, effective for five years, aim to counter the influx of low-cost imports that have hindered domestic manufacturing. According to the Ministry of Finance, Chinese dumping has limited India’s ability to develop local production capabilities.

Ahead of Budget 2025, the aluminium industry has urged the government to introduce stronger trade protections. Key demands include raising import duties on primary and downstream aluminium products from 7.5% to 10% and imposing a uniform 7.5% duty on aluminium scrap to curb the influx of low-quality imports.

India’s heavy reliance on aluminium imports, which now account for 54% of the country’s demand, has resulted in an annual foreign exchange outflow of Rupees 562.91 billion. Scrap imports, doubling over the last decade, have surged to 1,825 KT in FY25, primarily sourced from China, the Middle East, the US, and the UK.

The AAI noted that while advanced economies like the US and China impose strict tariffs and restrictions to protect their aluminium industries, India has become the largest importer of aluminium scrap globally. This trend undermines local producers, who are urging robust measures to enhance the domestic aluminium ecosystem.

With India’s aluminium demand projected to reach 10 million tonnes by 2030, industry leaders emphasize the need for stronger policies to support local production and drive investments in capacity expansion. The anti-dumping duties on solar panel components, they say, are a vital first step in building a sustainable and competitive aluminium sector.