Economy & Market

Cement Industry needs a Strategic Plan

Published

9 years ago

November 30, 2017

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Issue after issue, month after month, we discuss the market situation for the cement sector, and report on demand growth statistics, to the extent these are available. For quite some time now, expectations of a recovery of demand are mounting, what with all the talk about heightened activity levels in housing, infrastructure and smart cities. With all that talk, or in spite of all the hype, cement production in the first five months of this fiscal fell 3.2 per cent to 117 million tonnes (MT) against 121 MT in the same period last year, according to official DIPP figures. One could argue, that the widespread and successful monsoon across the country adversely impacted demand in August and September resulting in this fall in demand. However, now that the October IIP numbers have been released, we have on record that cement has further dropped by 2.7 per cent in this October vis a vis previous year same month, and that is a cause of serious concern.

It is however, a somewhat different matter, that in spite of a consistently lackadaisical demand growth performance of the industry, and even in the face of weakening demand pull, cement prices were seen to be stable in general, falling sometimes in some regions, but making up and covering ground soon thereafter. This happened as cement players tried to increase and hold on to prices across regions as they tried to pass on rising costs to consumers to protect their margins. Among key raw materials, pet coke prices increased 12-15 per cent in the second quarter of this fiscal. Power and fuel cost also registered a substantial rise due to increase in coal prices. As if on cue, diesel prices also moved up by 6-7 per cent, impacting the freight expenses. In the face of all these hikes in costs, and in the face of an indifferent market, it was remarkable that the industry’s profitability did not take a tumble.

For the current financial year FY2018, ICRA now forecasts a token 1 per cent growth of cement demand, which sounds eerily similar to what we have maintained in these columns in our previous issues. Following up on a negative growth of 1 per cent reported in FY2017 (last financial year), we are now looking at two successive years of stagnation of cement industry.

Looking beyond these monthly, quarterly or even annual ups and downs, the cement industry needs to formulate longer term strategies to promote consumption of cement, and in doing this, it has to be able to involve the government into it, such that regulatory support is also available for implementation of such a long term plan.

Something similar used to happen under the aegis of the erstwhile Planning Commission, in the shape of sectoral inputs into the 5-Year Plans, but those are history now. We recently saw the instance of National Steel Policy which set an ambitious goal of tripling capacity to 300 MT by 2030-31, and achieving a per capita steel consumption of 158 kg up from current 61kg. Such a plan would entail investments of at least Rs 10 Lakh crore across the steel value chain, upstream and downstream. We need a similar master plan for cement, say, a "National Cement Policy", which would envisage lifting our per capita cement consumption to the levels of 800-1,000 kg. Most important element of that plan will have to think through actions by all stakeholders for promoting cement consumption in India.

Regrettably, we are sorely missing one such national cement strategy 2030, even as we are too much preoccupied with the transients of the market!

Sumit Banerjee Chairman, Editorial Advisory Board

Concrete

Fornnax Wins AIRIA’s Special Export Award for Rubber Machinery in 2025-26

Published

6 days ago

October 19, 2026

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Fornnax Technology Pvt. Ltd. has been honoured with the Special Export Award – Rubber Machinery for 2025–26 by the All-India Rubber Industries Association (AIRIA), in recognition of its highest exports of tyre recycling plants to the European region.

With more than a decade of experience in India’s tyre recycling industry, Fornnax has contributed to the development of advanced recycling technologies and infrastructure. The company currently holds a 90% market share in India’s domestic tyre recycling sector, while exports account for 30% of its business, spanning markets such as Europe, Australia and the GCC.

The award marks another milestone for Fornnax, whose tyre recycling lines and advanced shredding technologies are supporting the growth of the circular economy in India and international markets.

Commenting on the recognition, Mr. Jignesh Kundaria, Founder and Director of Fornnax, said:

“This honour from AIRIA is a reflection of an incredible journey we have undertaken over the years. When we started Fornnax, there was no established recycling industry in India to follow. We chose to build for the future instead. Today, when you see India’s tyre recycling sector, it has already transformed into a dynamic, high-growth industry and we are extremely proud to have played our part in building it.”

Unlike standalone equipment suppliers, Fornnax focuses on developing complete, high-capacity recycling infrastructure. Its integrated systems combine multiple stages of shredding and size reduction to enable efficient, continuous operations. This system-level engineering approach helps recycling operators improve throughput, equipment reliability and operational consistency.

The recognition reinforces Fornnax’s commitment to developing engineering technologies that contribute to a more efficient and circular recycling ecosystem.

Looking ahead, the company aims to expand its international presence while continuing to develop advanced shredding and recycling solutions to address the growing volumes and evolving requirements of the global recycling industry.

For more information, visit: www.fornnax.com

Concrete

Wonder Cement appoints Mahesh Singh as VP Corporate Brand Communication

Published

2 weeks ago

October 9, 2026

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Singh brings 20+ years of brand and marketing experience, and will lead integrated corporate brand communication initiatives at Wonder Cement

New Delhi

Wonder Cement, a leading cement manufacturer, has appointed Mahesh Singh as Vice President – Corporate Brand Communication. In his new role, he will oversee corporate brand strategy and communication, including digital and performance marketing, public relations, trade, events, exhibitions, sports and experiential marketing.

Singh brings over two decades of experience across marketing and communications, with roles spanning the automotive industry, agencies and entrepreneurship. He spent more than a decade with Honda Motorcycle & Scooter India, working across integrated communication, media, digital, retail and consumer engagement. His stint also included helping build the company’s digital marketing capabilities.

He moved to dentsu X India as Vice President – Strategy & Planning, working across categories such as automotive, auto components, electric vehicles, FMCG, consumer electronics, BFSI, apparel and brand consulting. His responsibilities included media and marketing strategy, product launches, content, performance marketing and consumer activations.

Singh subsequently took an entrepreneurial route with Radiant Brands before joining Shriram Ltd (SPR Autotech) as Head – Marketing & Communications. There, his remit included brand and corporate strategy, communications, PR and ORM, retail identity, loyalty programmes and events.

At Wonder Cement, Singh will be responsible for bringing together the company’s corporate brand communication initiatives across digital, performance marketing, PR, trade, sports and experiential platforms. The role will focus on creating an integrated approach to communication across consumers, trade partners and other key stakeholders.

The appointment brings to Wonder Cement a marketer whose career has spanned the brand, agency and entrepreneurial sides of the communications ecosystem.

Wonder Cement, part of the RK Group, is a cement manufacturer with roots in Rajasthan and a focus on quality, trust and transparency. The company has grown to six manufacturing plants, and a cement capacity of 21.5 MTPA. With more than 2,000 employees and a network of over 5,000 dealers, its operations span manufacturing, distribution and customer engagement, with a focus on consistent product quality and efficient execution.

Concrete

JSW Cement commissions additional 1 MTPA grinding unit at Nagaur

Published

2 weeks ago

October 8, 2026

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With this commissioning, JSW Cement’s total cement grinding capacity has increased to 25.10 MTPA,
Mumbai

JSW Cement, one of India’s leading green cement producers and part of the diversified JSW Group, today announced the successful commissioning of an additional 1.00 MTPA cement grinding unit at Nagaur, Rajasthan. The commissioning marks another significant milestone in the Company’s growth strategy.

With this commissioning, JSW Cement’s total cement grinding capacity has increased to 25.10 MTPA, while its total clinker manufacturing capacity, including clinker capacity at its joint venture, JSW Cement FZC, stands at 9.74 MTPA.

JSW Cement had commenced operations in North India in March 2026 with the Nagaur Integrated Plant, comprising a 3.30 MTPA clinkerisation unit and 2.50 MTPA cement grinding unit. With the commissioning of the additional 1.00 MTPA cement grinding unit, the plant’s total cement grinding capacity has increased to 3.50 MTPA, enhancing the company’s ability to cater to the growing cement demand across Rajasthan, Haryana, Punjab and the National Capital Region (NCR). The expansion has been funded through a strategic mix of equity and long-term debt.

During the quarter ended 30th September 2026, JSW Cement has also commissioned the Alternate Fuel Handling System and the Waste Heat Recovery system (WHRS) at the Nagaur Integrated Plant.

Nilesh Narwekar, CEO, JSW Cement, said: “The commissioning of additional 1.00 MTPA grinding capacity at Nagaur is a key strategic priority for us and will accelerate JSW Cement’s expansion into North India. We look forward to servicing the growing needs of the region and contributing to the economic growth of Rajasthan, Haryana, Punjab and the NCR area. I am delighted to share that the company has commissioned this grinding unit within the expected timeline, showcasing our project execution capabilities. Further, the Alternate Fuel Handling System and the Waste Heat Recovery system (WHRS) are expected to substantially reduce our production costs going forward.”