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ICRA predicts continued consolidation of Indian cement industry

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According to a recent report by Investment Information and Credit Rating Agency (ICRA), the market share of the top five cement companies increased from 45 per cent in 2015 to 54 per cent in 2023 and is anticipated to reach
55 per cent by 2025. This consolidation is driven by strong demand prospects, leading companies to expand through mergers and acquisitions.
Consolidation facilitates synergies that enhance cost reduction and operational efficiency. Acquisitions grant access to additional capacities and resources, resulting in significant savings on capital expenditures. The revenue growth is projected at 9-10 per cent, with operating margins expected to improve by 80-100 basis points. While debt levels are expected to rise in FY ’25 due to capital expenditures, debt protection metrics are forecasted to remain favourable.

Concrete

Holcim UK drives sustainable construction

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Holcim UK has released a report titled ‘Making Sustainable Construction a Reality,’ outlining its five-fold commitment to a greener future. The company aims to focus on decarbonisation, circular economy principles, smarter building methods, community engagement, and integrating nature. Based on a survey of 2,000 people, only 41 per cent felt urban spaces in the UK are sustainably built. A significant majority (82 per cent) advocated for more green spaces, 69 per cent called for government leadership in sustainability, and 54 per cent saw businesses as key players. Additionally, 80 per cent of respondents stressed the need for greater transparency from companies regarding their environmental practices.

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Cemex invests in AI optimisation through OPTIMITIVE

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Cemex, through its corporate venture arm Cemex Ventures, has announced a strategic investment in OPTIMITIVE, a company specialising in AI-powered industrial process optimisation. OPTIMITIVE’s flagship products, Optibat RTO and Optibat Studio, enable real-time, closed-loop control of critical manufacturing operations, delivering notable improvements in energy efficiency and system productivity. This collaboration aims to embed artificial intelligence into Cemex’s global operations, supporting the company’s ‘Future in Action’ programme—its ambitious roadmap to achieve net-zero CO2 emissions. The integration of AI will allow Cemex to reduce energy consumption and emissions.

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GCCA releases LCR system

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The Global Cement and Concrete Association (GCCA) has launched the Low Carbon Ratings (LCR) system for cement and concrete, a new global rating based on products’ carbon footprints. The system uses a clear AA to G scale to help customers prioritise sustainability in material selection across construction sectors worldwide. The GCCA says that the LCR system is designed to be easily recognisable, with a simple visual graphic that indicates a product’s rating and provides consistency and comparability to other products.

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