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Prices start inching up as construction season sets in

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There is no respite in growth in demand. Taking cue from this development, some medium and small players are testing the market with small hikes.

After falling 2.61 per cent in December 2018 from the lifetime peak of 2054.7 points, the ET Cement Index that tracks domestic cement price movements bounced back by 2.35 per cent to 2048 points in January 2019, mostly on the back of beginning of a new construction season. The index is unlikely to rebound from here with the lifetime peak just seven points away and several cement industry majors are still opting for building higher volumes to hiking prices. If it breaks out of the life peak and continued its journey upwards for a couple of months in succession we can say there is a secular upward trend in prices.

Sandeep Dubey, Lead Analyst – Research, Edelweiss Broking Limited, who prepared a report on various issues impacting the cement industry based on his interactions with various stakeholders at the ICR Cement Expo 2018 held in Hyderabad on December 20-21, 2018, said, ‘While many players who attended the conference were of the view that FY19E (2018-19 Estimate) demand will grow by 7-8 per cent, they believe that demand is expected to outpace GDP growth, going forward. Subsequently, the per capita cement consumption will inch up to 300 kg by FY21E.‘

Management of South-based companies expect Andhra Pradesh (AP)/Telangana markets to continue growing at over 15 per cent, primarily led by strong demand emanating from the government-led infrastructure and irrigation projects. Maharashtra market is expected to grow at 10 per cent, while Karnataka region is expected to grow at 5 per cent. On contrary, the companies foresee subdued demand in Tamil Nadu and Kerala market on account of lower construction activities and low availability of sand in some regions, Dubey added.

Commenting on the UltraTech Cement results for the quarter ended December 2018, Vaibhav Agarwal of PhillipCapital India said that though their operating numbers have beat their/consensus numbers by 4 per cent/1 per cent respectively, absence of pricing power vs. peers visible in Q3 numbers was the only key concern for the company. That means UltraTech Cement did not participate in the recent price hikes effected by cement companies.

In fact, UltraTech has been pushing volumes for quite a while instead of hiking prices of its products in the process of assimilating Binani Cement, which it has acquired under insolvency process a few months back.

MARGIN PRESSURE
Though cement demand is expected to grow in double digits during FY19 (2018-19) with pre-election thrust to infrastructure, the unit EBITDA (Earnings before interest, tax, depreciation and amortisation) margins are shrinking, due to prices remaining low, said the leading brokerage CLSA in a report.

‘FY19 (2018-19) is likely to end with near double-digit demand growth, which will also take up utilisation. This much-anticipated event, however, has been a big disappointer as prices did not see any benefit and in fact, unit EBITDA margins contracted in FY19,’said CLSA’s Investment Analyst team led by Vivek Maheshwari, while trimming its FY19-21 EPS estimates for the major players by 3-15 per cent. ‘Lower energy prices are a relief, but cement prices are the key, and uncertainty prevails here, which is quite counter-intuitive in the context of rising utilisation rates,’Maheshwari added. Cement price hikes is a must for stock price performance, feels CLSA. Over the past decade, the cement industry has witnessed a decline in utilisation rates, despite which, cement prices have held up fairly well.

Stating that the industry feedback indicated that FY19 growth of 9-10 per cent has primarily come from government-led infrastructure and a boost from pre-election spending (states as well as centre), the CLSA report predicted a 7 per cent growth for FY20, ‘despite a tough base.’Across regions, the south and east have witnessed strong growth while the west faces some challenges.

Over the past several years, a weak macro weighed on cement demand which reported growth of sub-5 per cent growth over FY11-18 (FY18 growth of 8.5 per cent is off a very low base).

Cement supply additions continued and rose 5 per cent year-on-year (YoY), but trailed incremental demand in FY19, which drove up industry utilisation by around 3 percentage points YoY to 69 per cent in FY19, the report said, while pegging the CAGR of 4.5 per cent in utilisation, given upcoming capacities, said Maheshwari.

RISE IN PREMIUM
‘Of late, pricing discipline is a result of joint effort by both small cap and large cap players and it’s bound to increase amid the busy construction season which will start from January 2019 onwards. As an alternative, cement companies have been trying to increase the share of their premium category,’says Dubey.

Traditionally, housing sector comprises 60-65 per cent of total demand while infrastructure took the backseat with merely 30 per cent of demand. Of late, roads and infrastructure segment has gained huge traction with multiple projects being executed in smart cities, airports, metro projects, sea ports and affordable housing segments, acting as a new trigger. ‘Share of bulk cement has shot up to 20 per cent from mere 5 per cent (in FY2013). Ready Mix Concrete (RMC) demand has picked up significantly on the back of humongous demand arising from metro projects, mass housing projects, and high-rise residential projects,’according to what Dubey gathered from the stakeholders.

Southern region is witnessing divergent
demand with Andhra Pradesh/Telangana persistently growing robust, while Tamil Nadu still facing the heat of sand mining ban (as per managements), despite the advent of mechanised sand, says the Edelweiss report.

– BS SRINIVASALU REDDY

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Economy & Market

Leonard Unveils Dual-Head Robotic Arm for Hazardous Industrial Demolition

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 Leonard unveils Descender Duo, a dual-head robotic demolition arm designed to improve industrial safety and reduce shutdown time by up to 50 per cent.

Industrial robotics and refractory services specialist Leonard has launched Descender Duo, a dual-head robotic demolition arm designed to improve safety, accelerate maintenance and reduce shutdown times in hazardous industrial environments. The system made its debut at Lisahally Power Station in Northern Ireland, removing 25 tonnes of slag material within hours.

Developed for the cement, metals, waste-to-energy and petrochemical industries, Descender Duo enables remote-controlled refractory demolition, anchor cutting and welding, and refractory spraying inside boilers, calciners and silos. Its vertical-access design eliminates the need for personnel to enter confined, high-risk spaces during these operations.

Weighing less than two tonnes, the pre-assembled system requires an access opening of just 1.2 m². Supported by an external overhead hoist, it uses electrically operated hydraulic stabilising legs to secure itself inside vessels. The robotic arm offers 360-degree rotation and is suited to vessels approximately 9 m in diameter, with its operating reach extendable through strategically positioned access points.

Equipped with two independently controlled robotic heads, Descender Duo can perform identical or different tasks simultaneously, including refractory demolition, anchor cutting and spraying. Its remote-control system incorporates live camera feeds, allowing operators to monitor operations without entering hazardous environments.

According to Leonard, the technology can deliver time savings of up to 50 per cent compared with manual methods. Its ability to operate at temperatures exceeding 100°C allows maintenance to begin as early as 24 hours after burner shutdown. An all-electric power supply further supports cleaner and more cost-efficient operations.

First Deployment Demonstrates Shutdown Efficiency

The system was first deployed at Burmeister & Wain Scandinavian Contractor’s (BWSC) Lisahally Power Station in Londonderry, Northern Ireland. The facility generates electricity from grade C waste wood, supplying approximately 40,000 homes and businesses.

Leonard and BWSC collaborated to develop a customised solution for the plant’s 26-metre furnace, where extensive external pipework created significant access challenges.

Mark Leonard, Managing Director, Leonard, said, “It required new thinking and rather than step away from the problem we were committed to solving it for the customer, with the customer. We’re relentless in our approach to tackling complex challenges, head-on. We took our years of cement plant experience, coupled with our working knowledge of the BWSC plant, and designed, engineered and tested a completely new vertical solution within just seven weeks from that initial conversation with the customer. That solution was the Descender Duo as we know it today.”

Traditionally, the furnace required a cooling period of up to 36 hours before preparatory work could begin, followed by manual slag removal using rope-access personnel. With Descender Duo, work commenced just 24 hours after shutdown, reducing downtime by up to one day.

The deployment removed 25 tonnes of slag within hours, eliminated the need for at least six workers to enter the hazardous furnace interior and saved 26 hours in the shutdown programme.

“The effectiveness exceeded expectation,” said Martin Doran, Plant Manager at Lisahally Power Station.

“When the Descender Duo concept was first discussed, we had to spend some time with the team from Leonard looking at how it was going to be moved into the furnace. Every site is different and that presented its own challenges, but nothing that the team couldn’t overcome. Once it was installed we were hugely impressed by its efficiency.”

Expanding Industrial Robotics Applications

Descender Duo joins Leonard’s existing portfolio of robotic maintenance solutions, including the Axis horizontal-access arm, Nano confined-space access arm, Charger cement mill media recharging system and Calibre cement mill media grading system.

Headquartered in Northern Ireland, Leonard provides robotic refractory demolition, installation, inspection and industrial maintenance services across the cement, metals, energy, biomass, glass and civil engineering sectors.

Formerly known as G Leonard, the company has more than 35 years of industry experience and operates across Europe, North America, the Middle East, Africa and Asia-Pacific.

The latest innovation reinforces Leonard’s focus on replacing hazardous manual processes with robotic systems that improve workforce safety, enhance operational efficiency and minimise industrial downtime.

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Concrete

Martin Engineering Appoints Ashwini Khunte as India General Manager

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Martin Engineering names Ashwini Khunte India General Manager to strengthen operations and drive growth across key bulk material handling sectors.

Pune

Martin Engineering, a global provider of bulk material handling solutions, has appointed Ashwini Khunte as General Manager of its India business, strengthening its leadership as the company expands its presence across the country’s cement, mining, steel, power and infrastructure sectors.

Khunte brings more than a decade of experience with Martin Engineering, having joined its Indian operations in 2013 as a Design Engineer, shortly after the company established its presence in the country in 2012.

A mechanical engineer by qualification, she spent her initial five years developing bulk material handling solutions in collaboration with the company’s operations team. During this period, she gained extensive experience addressing operational challenges in the steel, cement and coal industries. She subsequently moved into project engineering, managing major engineering, procurement and construction (EPC) and original equipment manufacturer (OEM) projects from initial enquiry to commissioning. Her responsibilities later expanded to overseeing Martin Engineering’s conveyor product portfolio in India, involving customer engagement, technical presentations and site visits across heavy industries.

In 2024, Khunte was promoted to Head of Sales & Marketing for the company’s Europe, Middle East, Africa and India (EMEAI) region. The position broadened her international market exposure and strengthened her strategic and commercial leadership capabilities.

Commenting on her appointment, Ashwini Khunte, General Manager, Martin Engineering India, said: “India represents a tremendous opportunity for Martin Engineering. The country’s continued investment in cement, mining, steel, power and infrastructure is creating increasing demand for safer, cleaner and more productive bulk material handling, and that’s exactly what we do. My priority will be to build on the strong foundations already established in India, while continuing to develop our people, strengthen customer relationships and bring practical solutions to the challenges faced by our industry.”

Robert Whetstone, Area Vice President – EMEAI, Martin Engineering, highlighted Khunte’s technical expertise, market understanding and leadership experience.

“Ashwini brings an exceptional combination of technical understanding, customer knowledge and commercial leadership. She has grown as Martin Engineering has grown, and has consistently demonstrated outstanding capability to transform her expertise into practical solutions. Her knowledge of the Indian market, together with her international experience, makes her ideally suited to lead our India business through its next stage of growth for years to come.”

Since establishing its Indian business in 2012, Martin Engineering has expanded its local workforce, manufacturing capabilities and dealership network. The company supplies conveyor products, transfer point solutions, material flow aids, training and technical support to bulk material handling industries. Khunte’s appointment positions the company to further strengthen customer relationships and expand its solutions portfolio in India’s growing industrial and infrastructure markets.

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Concrete

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

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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

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