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Cement Sector Growth Slows Down

Muted demand lowers FY25 growth forecast

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The Indian cement industry’s growth forecast for FY25 has been revised down to 4-5% (445-450 MT), primarily due to sluggish construction activity in the housing and infrastructure sectors, according to ICRA. The initial estimate in July was 7-8%, expecting demand to rise in H2, but a slower-than-expected post-election recovery has affected projections.

Key Drivers and Challenges

Muted Volumes: Cement volumes grew just 2% YoY to 212 MT in H1 FY25, impacted by election-related slowdowns and heavy monsoon rains.
Rural Demand: A robust rabi season backed by healthy monsoons and strong farm cash flows is expected to improve rural housing demand in H2.
Urban and Infrastructure Boost: Urban housing demand remains strong, while increased government capital spending in H2 FY25 (from ?4 lakh crore in H1 to meet a full-year target of ?11.1 lakh crore) should spur infrastructure activity and cement demand.
Pricing and Margins

Cement prices fell 10% YoY to ?330 per bag in H1 FY25 due to oversupply and subdued demand, affecting revenue realisation.
Operating profit margins dropped to 12% in Q2 FY25, a 375 bps decline YoY, despite reduced coal and pet coke costs (down 38% and 13% YoY, respectively).
Capacity Expansion

The industry is expected to add 70-75 MT capacity during FY25-26, with 33-37 MT as clinker capacity.
Regional Growth: Eastern and southern regions will lead capacity additions, contributing 38-40 MT evenly split over two years.
Utilisation: Capacity utilisation is projected to rise slightly to 71% in FY25 from 70% in FY24.
Outlook
The cement sector is poised for a recovery in H2 FY25, driven by rural and urban housing demand and higher government spending. However, pricing pressures and oversupply remain challenges. Total installed capacity stands at 690 MT, with moderate utilisation rates indicating room for demand-driven growth.

Concrete

Molecor Renews OCS Europe Certification Across Spanish Plants

Certification reinforces commitment to preventing microplastic pollution

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Molecor has renewed its OCS Europe certification for another year across all its production facilities in Spain under the Operation Clean Sweep (OCS) voluntary initiative, reaffirming its commitment to sustainability and environmental protection. The renewal underlines the company’s continued focus on preventing the unintentional release of plastic particles during manufacturing, with particular attention to safeguarding marine ecosystems from microplastic pollution.

All Molecor plants in Spain have been compliant with OCS Europe standards for several years, implementing best practices designed to avoid pellet loss and the release of plastic particles during the production of PVC pipes and fittings. The OCS-based management system enables the company to maintain strict operational controls while aligning with evolving regulatory expectations on microplastic prevention.

The renewed certification also positions Molecor ahead of newly published European regulations. The company’s practices are aligned with Regulation (EU) 2025/2365, recently adopted by the European Parliament, which sets out requirements to prevent pellet loss and reduce microplastic pollution across industrial operations.

Extending its sustainability commitment beyond its own operations, Molecor is actively engaging its wider value chain by informing suppliers and customers of its participation in the OCS programme and encouraging responsible microplastic management practices. Through these efforts, the company contributes directly to the United Nations Sustainable Development Goals, particularly SDG 14 ‘Life below water’, reinforcing its role as a responsible industrial manufacturer committed to environmental stewardship and long-term sustainability.

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Concrete

Coforge Launches AI-Led Data Cosmos Analytics Platform

New cloud-native platform targets enterprise data modernisation and GenAI adoption

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Coforge Limited has recently announced the launch of Coforge Data Cosmos, an AI-enabled, cloud-native data engineering and advanced analytics platform aimed at helping enterprises convert fragmented data environments into intelligent, high-performance data ecosystems. The platform strengthens Coforge’s technology stack by introducing a foundational innovation layer that supports cloud-native, domain-specific solutions built on reusable blueprints, proprietary IP, accelerators, agentic components and industry-aligned capabilities.

Data Cosmos is designed to address persistent enterprise challenges such as data fragmentation, legacy modernisation, high operational costs, limited self-service analytics, lack of unified governance and the complexity of GenAI adoption. The platform is structured around five technology portfolios—Supernova, Nebula, Hypernova, Pulsar and Quasar—covering the full data transformation lifecycle, from legacy-to-cloud migration and governance to cloud-native data platforms, autonomous DataOps and scaled GenAI orchestration.

To accelerate speed-to-value, Coforge has introduced the Data Cosmos Toolkit, comprising over 55 IPs and accelerators and 38 AI agents powered by the Data Cosmos Engine. The platform also enables Galaxy solutions, which combine industry-specific data models with the core technology stack to deliver tailored solutions across sectors including BFS, insurance, travel, transportation and hospitality, healthcare, public sector and retail.

“With Data Cosmos, we are setting a new benchmark for how enterprises convert data complexity into competitive advantage,” said Deepak Manjarekar, Global Head – Data HBU, Coforge. “Our objective is to provide clients with a fast, adaptive and AI-ready data foundation from day one.”

Supported by a strong ecosystem of cloud and technology partners, Data Cosmos operates across multi-cloud and hybrid environments and is already being deployed in large-scale transformation programmes for global clients.

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Concrete

India, Sweden Launch Seven Low-Carbon Steel, Cement Projects

Joint studies to cut industrial emissions under LeadIT

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India and Sweden have announced seven joint projects aimed at reducing carbon emissions in the steel and cement sectors, with funding support from India’s Department of Science and Technology and the Swedish Energy Agency.

The initiatives, launched under the LeadIT Industry Transition Partnership, bring together major Indian companies including Tata Steel, JK Cement, Ambuja Cements, Jindal Steel and Power, and Prism Johnson, alongside Swedish technology firms such as Cemvision, Kanthal and Swerim. Leading Indian academic institutions, including IIT Bombay, IIT-ISM Dhanbad, IIT Bhubaneswar and IIT Hyderabad, are also participating.

The projects will undertake pre-pilot feasibility studies on a range of low-carbon technologies. These include the use of hydrogen in steel rotary kilns, recycling steel slag for green cement production, and applying artificial intelligence to optimise concrete mix designs. Other studies will explore converting blast furnace carbon dioxide into carbon monoxide for reuse and assessing electric heating solutions for steelmaking.

India’s steel sector currently accounts for about 10–12 per cent of the country’s carbon emissions, while cement contributes nearly 6 per cent. Globally, heavy industry is responsible for roughly one-quarter of greenhouse gas emissions and consumes around one-third of total energy.

The collaboration aims to develop scalable, low-carbon industrial technologies that can support India’s net-zero emissions target by 2070. As part of the programme, Tata Steel and Cemvision will examine methods to convert steel slag into construction materials, creating a circular value chain for industrial byproducts.

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