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CareEdge Research report highlights interesting findings about cement

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India’s cement production and consumption both grew by 11 per cent in FY23 (April-November) on a YoY basis, driven by the government’s push for infrastructure development and increased real estate activity, states the latest report by CareEdge Research. The EBITDA margins of cement players declined by almost 10 per cent YoY in H1FY23 due to an increase in power and fuel cost on the back of a sharp surge in coal prices. Limestone prices also escalated during H1FY23. There has been a 7 per cent YoY increase on an average in wholesale cement prices in H1FY23. While the prices have remained flattish in Q3, CareEdge expects an increase of about Rs. 15-20/50kg bag in Q4FY23, seasonally strongest quarter, to partially offset the inflationary pressure.
As per a quote by Tanvi Shah, Director, CareEdge Advisory and Research, the cement industry is expected to see a continued uptrend in volume growth in the near term. In FY23, the volume growth is expected to be around 8-9 per cent owing to renewed demand in the housing and infrastructure segment coupled with the government’s continued focus on infrastructure development in light of Centre elections in 2024. Despite the uptrend in consumption, the profitability of the cement players is expected to decline by 400-500bps in FY23 due to elevated power and fuel cost.

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Concrete

Shree Cement Expands Bangur Concrete Network with Patna Plant

New facility takes the company’s national RMC network to 36 plants

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Shree Cement has inaugurated a 60 m³/hour ready-mix concrete plant in Patna, Bihar, under its Bangur Concrete brand. The facility takes the company’s ready-mix concrete (RMC) network to 36 plants across India and strengthens its presence in eastern markets.

The plant was inaugurated by Neeraj Akhoury, managing director of Shree Cement, in the presence of senior company officials and other guests. It has been established to serve demand for ready-mix concrete in Patna and neighbouring areas, where infrastructure development, urban expansion and real estate activity are supporting construction growth.

The facility is designed to supply construction projects across Patna and surrounding markets. Its installed capacity of 60 m³/hour will enable Bangur Concrete to serve customers across the region while improving distribution and supply capabilities in eastern India.

The expansion is intended to improve customer service, strengthen the company’s market presence and support development activity in Bihar. The plant incorporates modern batching technology, material handling systems and quality control processes aimed at maintaining consistency in production and improving operational efficiency.

With the addition of the Patna facility, Bangur Concrete now operates 36 RMC plants across India. The business is expanding its footprint in key construction markets to improve customer access to ready-mix concrete, which is increasingly used in infrastructure, commercial and residential projects because it supports controlled production, consistent quality and more efficient material management at construction sites.

The facility will also follow environmentally responsible operating practices, in line with Shree Cement’s focus on sustainable construction solutions. The latest addition adds capacity to the company’s RMC operations and supports its efforts to serve regional construction markets as development activity continues across Bihar.

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Concrete

Ambuja Plans 2.9 MTPA Godda Cement Unit

Proposed unit forms part of Ambuja Cements’ Rs. 145 bn expansion

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Ambuja Cements has proposed a 2.9 mn tonnes per annum (MTPA) cement grinding unit in Godda district, Jharkhand, as part of a Rs. 145 bn expansion programme. The plan is intended to lift the company’s overall cement capacity to 155 MTPA by financial year 2029-30 (FY30), from its current 113.5 MTPA.

The proposal forms part of the Adani Group company’s wider manufacturing expansion across eastern and northeastern India, according to a company statement issued on Monday. The Godda unit would add grinding capacity to Ambuja Cements’ network and is intended to help serve demand in Jharkhand and neighbouring states.

Locating production closer to these markets is expected to reduce transportation costs and delivery times, while the project could support employment in plant operations, maintenance, logistics and administration. The company also linked the facility to indirect activity in transportation, contract services, construction, warehousing and local supply chains.

The expansion plan includes a 2.9 MTPA grinding unit each in Assam and Bihar, as well as additional clinker capacity in Assam. Together, the projects are designed to distribute manufacturing capacity more widely and improve the connection between clinker production and grinding operations, Ambuja Cements’ cement-business chief executive Vinod Bahety said.

Clinker is the intermediate material produced before it is ground and blended to make cement, making the Godda proposal part of a broader materials and logistics network rather than an isolated facility. Ambuja Cements has not provided a commissioning timeline, a Godda-specific investment breakdown, land details or a detailed employment estimate in the supplied announcement.

The project’s impact will depend on implementation of the plant, associated transport links and local supply chains. The announcement sets out the capacity objective but does not specify the project’s construction schedule or operational start date.

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Concrete

Capacity with Conscience

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Ambuja Cements has locked in its next phase of growth. The Adani Group company has earmarked 14,500 crore, roughly 145 billion, for greenfield and brownfield projects that will add 30 MTPA and lift its total capacity to 155 MTPA by FY2030.
It is hardly alone. The industry added about 55 million tonnes in FY2025-26, taking installed grinding capacity to an estimated 720 to 730 MT by March 2026. UltraTech Cement, Adani Cement, Shree Cement, Dalmia Bharat and JK Cement are expected to drive another 115 to 125 MT by FY2027-28. Production itself reached close to 490 million tonnes in FY26. The appetite to build is not in doubt.
Costs are another matter. The conflict in West Asia continues to push up fuel and freight bills, and the pressure on profitability is real. More capacity arriving in a market that is absorbing higher input costs leaves little room for inefficiency.
Then there is carbon. Indian cement emits around 0.62 tonnes of CO2 per tonne of cement, and the decarbonisation roadmap points to 0.56 by 2030 and 0.51 by 2047. Output, meanwhile, is projected to climb towards 1,546 million tonnes by 2070, the year India has set for net zero. Intensity can fall steadily while total emissions still rise. That is the arithmetic the industry must solve.
So, how does the sector sustain its expansion momentum while honouring its net-zero commitments? That question anchors the discussions at the Indian Cement Review Conference & Awards and Cement Expo 2026. More than 60 industry leaders will weigh how rising demand, capacity growth and productivity gains can sit alongside decarbonisation across the value chain. They will also examine which technologies, investments and strategies will make that possible.
The Expo runs from 15 to 17 December at India Expo Mart, Greater Noida. Come and be part of the answer.

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