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Cement Margins to Erode as Energy Costs Rise: CRISIL

CRISIL warns of 150–200 bps margin decline this fiscal

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Crisil Intelligence (CRISIL) released a report on April 13, 2026, indicating Indian cement manufacturers face margin erosion of 150–200 basis points this fiscal, reducing operating margins to between 16 per cent and 18 per cent. The firm noted that this represents a reversal from the prior year when margins expanded by 260–280 basis points. The analysis attributed the shift to rising input costs despite steady demand.

The report said that power and fuel, which typically account for about 26–28 per cent of production cost, are expected to increase by 10–12 per cent year on year, driven by higher prices for crude oil, petroleum coke and thermal coal. Brent crude was assessed as likely to trade between $82 and $87 per barrel, and industrial diesel prices rose by 25 per cent in March, raising logistics and procurement expenses. Such increases have therefore heightened cost pressures across the value chain.

Producers plan to raise selling prices by one–three per cent, which would put the average retail price of a cement bag at around Rs355–Rs360, according to the report. CRISIL’s director Sehul Bhatt was cited as saying that these hikes will at best offset a four–six per cent rise in production costs, leaving little room for higher profitability. The report added that intense competition and continual capacity additions constrain the extent to which firms can pass on costs.

Demand conditions remain supportive, with CRISIL projecting volume growth of six point five–seven point five per cent this fiscal on the back of accelerated infrastructure projects and steady industrial and commercial consumption. Nonetheless, the pace of recovery is sensitive to developments in West Asia, the speed of government infrastructure execution and monsoon performance. The agency noted that any further escalation in energy prices or delays in project execution would widen margin pressures.

Overall, the sector will continue to grow but with compressed margins as energy cost inflation outpaces the limited ability to raise prices. Investors and policymakers will therefore monitor both input cost trajectories and policy measures aimed at alleviating supply chain constraints.

Concrete

Shree Cement Expands Bangur Concrete Network with Patna Plant

New facility takes the company’s national RMC network to 36 plants

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Shree Cement has inaugurated a 60 m³/hour ready-mix concrete plant in Patna, Bihar, under its Bangur Concrete brand. The facility takes the company’s ready-mix concrete (RMC) network to 36 plants across India and strengthens its presence in eastern markets.

The plant was inaugurated by Neeraj Akhoury, managing director of Shree Cement, in the presence of senior company officials and other guests. It has been established to serve demand for ready-mix concrete in Patna and neighbouring areas, where infrastructure development, urban expansion and real estate activity are supporting construction growth.

The facility is designed to supply construction projects across Patna and surrounding markets. Its installed capacity of 60 m³/hour will enable Bangur Concrete to serve customers across the region while improving distribution and supply capabilities in eastern India.

The expansion is intended to improve customer service, strengthen the company’s market presence and support development activity in Bihar. The plant incorporates modern batching technology, material handling systems and quality control processes aimed at maintaining consistency in production and improving operational efficiency.

With the addition of the Patna facility, Bangur Concrete now operates 36 RMC plants across India. The business is expanding its footprint in key construction markets to improve customer access to ready-mix concrete, which is increasingly used in infrastructure, commercial and residential projects because it supports controlled production, consistent quality and more efficient material management at construction sites.

The facility will also follow environmentally responsible operating practices, in line with Shree Cement’s focus on sustainable construction solutions. The latest addition adds capacity to the company’s RMC operations and supports its efforts to serve regional construction markets as development activity continues across Bihar.

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Concrete

Ambuja Plans 2.9 MTPA Godda Cement Unit

Proposed unit forms part of Ambuja Cements’ Rs. 145 bn expansion

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Ambuja Cements has proposed a 2.9 mn tonnes per annum (MTPA) cement grinding unit in Godda district, Jharkhand, as part of a Rs. 145 bn expansion programme. The plan is intended to lift the company’s overall cement capacity to 155 MTPA by financial year 2029-30 (FY30), from its current 113.5 MTPA.

The proposal forms part of the Adani Group company’s wider manufacturing expansion across eastern and northeastern India, according to a company statement issued on Monday. The Godda unit would add grinding capacity to Ambuja Cements’ network and is intended to help serve demand in Jharkhand and neighbouring states.

Locating production closer to these markets is expected to reduce transportation costs and delivery times, while the project could support employment in plant operations, maintenance, logistics and administration. The company also linked the facility to indirect activity in transportation, contract services, construction, warehousing and local supply chains.

The expansion plan includes a 2.9 MTPA grinding unit each in Assam and Bihar, as well as additional clinker capacity in Assam. Together, the projects are designed to distribute manufacturing capacity more widely and improve the connection between clinker production and grinding operations, Ambuja Cements’ cement-business chief executive Vinod Bahety said.

Clinker is the intermediate material produced before it is ground and blended to make cement, making the Godda proposal part of a broader materials and logistics network rather than an isolated facility. Ambuja Cements has not provided a commissioning timeline, a Godda-specific investment breakdown, land details or a detailed employment estimate in the supplied announcement.

The project’s impact will depend on implementation of the plant, associated transport links and local supply chains. The announcement sets out the capacity objective but does not specify the project’s construction schedule or operational start date.

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Concrete

Dhanekula Institute Signs MoU with Adani Cement

Agreement to expand internships, industrial visits and practical learning

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The Department of Civil Engineering at Dhanekula Institute of Engineering & Technology, Ganguru, organised an industrial interaction programme under the Adani FutureX Programme on Thursday. The programme focused on strengthening engagement between the institute and the cement industry while giving students greater exposure to professional practices.

Yedukondalu, technical head for Andhra Pradesh and Telangana at Adani Cement, delivered a technical lecture on concrete as a man-made material. The session covered the importance of concrete in construction, its properties and applications, and its significance in modern infrastructure development.

The lecture also addressed the role of quality cement and suitable concrete technology in supporting durable and sustainable construction. The discussion connected classroom learning with the technical considerations involved in infrastructure projects and construction practices.

A key part of the programme was the signing of a memorandum of understanding (MoU) between the Department of Civil Engineering and Adani Cement under the Adani FutureX Partnership Agreement. The agreement is intended to strengthen industry-academia collaboration through opportunities for student internships and industrial visits.

The initiative is expected to provide students with practical exposure, improve their understanding of industrial practices and help bridge the gap between theoretical knowledge and real-world applications. Dhanekula Institute Chairman Dhanekula Ravindranath Tagore, Secretary Dhanekula Venkata Bhavani Prasad and Director DKRK Ravi Prasad supported the initiative, with the institute leadership highlighting the importance of industry-institution interaction in enhancing students’ technical employability.

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