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Concrete

When Volumes Matter

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The fourth quarter of the last financial year was a washout for the cement sector as prices dipped across the country. From a drop of Rs.5 per bag in central India to a drastic cut of Rs.10 per bag in Gujarat, the flat trend of the last few months can be attributed to unseasonal rains and low labour availability affecting construction activities. Volume push, fall in demand and increased discount offerings are other factors that have affected attempts of price hikes. But fast recovery is expected in the June quarter as demand picks up amid seasonal recovery.

Another reason for the cement sector to recover on the price front is the upcoming elections. With elections scheduled in 2024, the government is accelerating all of its housing and infrastructure initiatives, thereby spurring the demand for cement. Cement companies are definitely bullish about growth and the Indian cement industry is likely to witness a fresh capacity increase of 145 MT-155 MT amounting to a capex of Rs.1.2 lakh crore by FY27. A report by CRISIL confirms that demand for cement will remain buoyed at a CAGR of 6-7 per cent over the forecast period. The addition of 145 MT-155 MT to the already existing capacity of 570 MT will further consolidate India’s position as the second largest cement producer in the world.

Cement is an important component of revenue for the state governments and this point has been underscored by the recent impasse in Himachal Pradesh where the Ambuja and ACC plants had been shut down for over two months over the disagreement over freight charged by the 6,500 truckers. The state government was losing Rs.60 cr to Rs.80 cr per day in electricity, VAT and GST. A GST cut from 28 per cent to 18 per cent would reduce GST revenues by Rs.13,000 cr annually. However, if this reduction in price is passed on to the consumers, a higher demand could reduce the reduction in revenue. Finally, the impasse was resolved with the intervention of Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu. Himachal Pradesh truckers, agreed to a lower freight rate after the company assured them of additional volumes from neighbouring states.

Another trend that is emerging with regards to adding fresh capacity is the logistics-oriented approach. Many cement companies are preferring to install their new grinding units near the distribution centres for freight cost rationalisation. This will also boost the attempts to decarbonise cement. Further, initiatives such as the launch of LNG trucks by Dalmia Cement (Bharat) for transportation of raw materials and bagged cement is helping build a green supply chain for cement. Decarbonisation is taking place in every step of the supply chain, and India is definitely a trailblazer in green initiatives in the cement sector.

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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