Concrete

Decarbonise or Die?

Published

2 years ago

May 16, 2023

admin

With the Securities and Exchange Board of India (SEBI) making it mandatory for the top 1000 listed companies to submit a Business Responsibility Report (BRR) to the stock exchanges as part of their annual reports, ‘going green’ is no longer a voluntary act for cement manufacturers. Environmental, Social and Governance (ESG) is much more than a trending hashtag on social media or jargon to be flaunted at climate summits. It is the tangible reality that cement companies are required to tabulate statistically and present as hard facts to the governing authorities. As cement is one of the seven hard-to-abate industries for carbon emissions, contributing about 70 per cent to India’s CO2 emissions, we are expecting the leash of accountability to tighten around the sector with stringent practices and laws coming into force in the near future.
Given the resource and labour-intensive nature of production, curtailing carbon emissions at a single node is not likely to have any impact on the overall picture. Measures are to be taken at every step of the way – from mining and sourcing of raw materials to last mile connectivity – in order to lower carbon emissions. Green cement is an undeniable reality, and a lot is required in terms of customer education, governmental norms and industry regulations, to make green cement a norm rather than an exception.
Going green is certainly an uphill task but there’s one key term that can ease the process for cement manufacturers. And that term is collaboration. UltraTech has collaborated with Green Planet Logistics, an LNG-fuelled heavy trucking logistics company, to cater to the company’s bulk terminal. Dalmia Cement has signed a long-term partnership with Vedanta Aluminium for supply of industrial wastes such as fly ash for manufacturing low carbon cement. It is such initiatives between cement and other sectors that will help the industry reduce its carbon footprint. Being a crucial contributor towards the country’s Net Zero goals is what we are expecting of the Indian cement industry. Time and impartial analysis will lead us to the conclusion whether the efforts taken are truly paying off or is all this a mere ‘greenwashing’ endeavour.

Up Next

Schenck Process Solutions

Don't Miss

Ignore at Your Own Peril

Concrete

Construction Costs Rise 11% in 2024, Driven by Labour Expenses

Cement Prices Decline 15%, But Labour Costs Surge by 25%

Published

2 days ago

November 19, 2024

admin

The cost of construction in India increased by 11% over the past year, primarily driven by a 25% rise in labour expenses, according to Colliers India. While prices of key materials like cement dropped by 15% and steel saw a marginal 1% decrease, the surge in labour costs stretched construction budgets across sectors.

“Labour, which constitutes over a quarter of construction costs, has seen significant inflation due to the demand for skilled workers and associated training and compliance costs,” said Badal Yagnik, CEO of Colliers India.

The residential segment experienced the sharpest cost escalation due to a growing focus on quality construction and demand for gated communities. Meanwhile, commercial and industrial real estate remained resilient, with 37 million square feet of office space and 22 million square feet of warehousing space completed in the first nine months of 2024.

“Despite rising costs, investments in automation and training are helping developers address manpower challenges and streamline project timelines,” said Vimal Nadar, senior director at Colliers India.

With labour costs continuing to influence overall construction expenses, developers are exploring strategies to optimize operations and mitigate rising costs.

Concrete

Swiss Steel to Cut 800 Jobs

Job cuts due to weak demand

Published

3 days ago

November 18, 2024

admin

Swiss Steel has announced plans to cut 800 jobs as part of a restructuring effort, triggered by weak demand in the global steel market. The company, a major player in the European steel industry, cited an ongoing slowdown in demand as the primary reason behind the workforce reduction. These job cuts are expected to impact various departments across its operations, including production and administrative functions.

The steel industry has been facing significant challenges due to reduced demand from key sectors such as construction and automotive manufacturing. Additionally, the broader economic slowdown in Europe, coupled with rising energy costs, has further strained the profitability of steel producers like Swiss Steel. In response to these conditions, the company has decided to streamline its operations to ensure long-term sustainability.

Swiss Steel’s decision to cut jobs is part of a broader trend in the steel industry, where companies are adjusting to volatile market conditions. The move is aimed at reducing operational costs and improving efficiency, but it highlights the continuing pressures faced by the manufacturing sector amid uncertain global economic conditions.

The layoffs are expected to occur across Swiss Steel’s production facilities and corporate offices, as the company focuses on consolidating its workforce. Despite these cuts, Swiss Steel plans to continue its efforts to innovate and adapt to market demands, with an emphasis on high-value, specialty steel products.

Concrete

UltraTech Cement to raise Rs 3,000 crore via NCDs to boost financial flexibility

UltraTech reported a 36% year-on-year (YoY) decline in net profit, dropping to Rs 825 crore

Published

3 days ago

November 18, 2024

admin

UltraTech Cement, the Aditya Birla Group’s flagship company, has announced plans to raise up to Rs 3,000 crore through the private placement of non-convertible debentures (NCDs) in one or more tranches. The move aims to strengthen the company’s financial position amid increasing competition in the cement sector.

UltraTech’s finance committee has approved the issuance of rupee-denominated, unsecured, redeemable, and listed NCDs. The company has experienced strong stock performance, with its share price rising 22% over the past year, boosting its market capitalization to approximately Rs 3.1 lakh crore.

For Q2 FY2025, UltraTech reported a 36% year-on-year (YoY) decline in net profit, dropping to Rs 825 crore, below analyst expectations. Revenue for the quarter also fell 2% YoY to Rs 15,635 crore, and EBITDA margins contracted by 300 basis points. Despite this, the company saw a 3% increase in domestic sales volume, supported by lower energy costs.

In a strategic move, UltraTech invested Rs 3,954 crore for a 32.7% equity stake in India Cements, further solidifying its position in South India. UltraTech holds an 11% market share in the region, while competitor Adani holds 6%. UltraTech also secured $500 million through a sustainability-linked loan, underscoring its focus on sustainable growth driven by infrastructure and housing demand.