Concrete

Largest Cement Show Globally!

Published

10 months ago

January 19, 2024

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As we delve into the third quarter of the fiscal year, the cement sector is poised to witness a notable 3 per cent quarter-over-quarter growth, with southern India emerging as a key contributor to this upward trajectory. A case in point is UltraTech Cement’s 6 per cent increase in cement sales during the third quarter of the 2024 financial year, mainly driven by domestic demand, spurring its capacity to 138Mt/year as of 1 January 2024.
The robust expansion in the cement industry is not merely a statistical trend but carries profound implications, especially in the context of India’s ambitious goal to achieve ‘net zero’ carbon emissions by 2070.
In the pursuit of a sustainable future, the government envisions a pivotal role for the cement industry, recognising its significance in infrastructure development. However, a critical challenge looms large – only 40 per cent of the annual CO2 emissions from India’s cement sector can be addressed through existing measures. To bridge this gap, experts at the 9th ICR Conference deliberated extensively on carbon capture, utilisation and storage (CCUS) as the indispensable solution for mitigating the remaining emissions.
The recent surge in discussions surrounding CCUS reflects the industry’s commitment to exploring innovative approaches to curb carbon footprints. The insightful perspectives shared at the conference, detailed in our coverage, shed light on the potential of CCUS to revolutionise the cement sector’s approach to sustainability.
We are grateful to the industry for the overwhelming response given to the 14th Cement EXPO. With more than 1500 visitors and 80 exhibitors from every vertical relevant to the cement industry, we witnessed a plethora of innovations, technology, new products and inspiring solutions that are paving the way for our industry’s march towards net zero targets.
The keynote speaker Emir Adiguzel, Founder & Director, World Cement Association, remarked that, “Given your visitor count, your show is easily the biggest show globally, in terms of attendance.”
The 15th Cement EXPO in 2025 will continue to be a beacon for furthering the cause of sustainability within the industry. The EXPO promises to be a platform where the latest technologies, strategies and solutions will converge, offering stakeholders a unique opportunity to witness the evolution of the cement sector towards a greener and more sustainable future.
I encourage our readers to stay informed about the dynamic landscape of the cement industry and its crucial role in India’s journey towards a ‘net zero’ future.

Follow me on twitter @PratapPadode

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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

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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

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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

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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.