Economy & Market

There is cautiousness in the current market

Published

6 years ago

January 11, 2019

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– Devendra Kumar Pandey, Technical Head – RMC Business, UltraTech

It seems the market is seeing a ready mix v/s precast tussle. Is this real, or do you see both co-exist? What are your comments on this?
There is no real tussle. Precast has its own future. And precast, as an industry, is at a very nascent stage. Even though it should have grown faster the current levels, we, as a country, have a different outlook on technology and its adaptation. We have been slow in ready-mix, we have been slow in precast as well. Ready-mix is always ahead in the race, which is very logical. Ready-mix, in one sense, will enable the precast industry to its proper place. So I don’t see them conflicting.

Does that mean these two will co-exist and grow in parallel?
Definitely, and precast industry can be one of the sectors which ready-mix concrete would be catering to. Precast may evolve as one of the growth drivers of concrete mixers.

With global slowdown casting a shadow over Indian industries, especially on the infrastructure segment, where do we stand now?
Infrastructure is a segment that can take out some of the difficulty, which we are in currently. But we are in difficult times, and it’s hard to say when we can see a respite. However, if investments are infused in the infrastructure segment, the possibility is that when infrastructure improves, the cascading effect will automatically pull other sections along with it.

The government had announced stimulus packages in terms of tax rebate and infusion of liquidity etc. How does this going to help the segment?
Well, for the short term, I don’t see any significant change. But in the medium and long term, it can have an impact. But there should be other factors along with these to boost the industry because this in itself is not sufficient. There is a big cash-flow problem in the industry, and the building sector is appalling. The money transactions and the overall cash flow in the industry are very poor. The steps which have been taken till now have had a temporary outlook or the emotional impact. There have to be some more tangible measures for things to really change.

Does that mean you expect more measures from the government to make it more fast-paced?
I’m not an economic expert, so it very hard to say so. The only thing is the current situation requires a change from many directions. We are talking about the overall economic situation and construction segment dependent on that. A close look at the market would reveal that there is a challenging phase in the construction industry. The industry experts, business leaders, and others don’t seem to have a very consistent view of what the solution could be.

Which are the major growth drivers for concrete?
For the ready mix, real estate remains the primary growth driver with commercial and residential construction. At last for the last two years infrastructure has been a significant anchor for ready-mix concrete volumes. That means there were consistence volumes, good payment cycles that was coming. So even though volume-wise it was not the most significant sector, which we are serving; still, it becomes an anchor to have a good kind of order profiles. But now with infrastructure segment also slowing down, you know this is another kind of situation. There is an overall the receivable getting high and the over draft (OD) cycles are longer.

How were the first two quarters for the company?
Though we have grown in volumes but we are not up to mark as per our budgets in comparison to the last year. So we are being cautious as some companies in the industry are getting into a very difficult situation. One need not be only growth conscious but also cautions owing to the market conditions.

Efficiency improvement is a crucial element. What is the improvement we witnessed in the products in the last 3 years in the ready mix concrete industry?
Most of the established ready-mix companies use a computerised system for their process, which are much interconnected. Despatch, mix designs, statistical control, vehicle tracking systems, a combination of such an expert system is being used currently. These are used in order to assure the customer a proper mix combination, adequate degree of control, visibility of delivery is one change. The other difference is the availability of specialised materials today – micro fine cement material, micro-fine fliers, very high range classifiers, integral waterproofing compounds. And as a result, we produce much better concrete.

Devendra Kumar Pandey, Technical Head RMC business in UltraTech, is with the Aditya Birla Group’s Cement division for almost a decade and a half. Before elevating as the head of RMC, he served as Zonal Head- Technical Services for over 11 years. In his previous stint, he was part of RDC concrete as Senior Technical Manager for close to 10 years. Academically, he has a Civil Engineering degree. He also persuaded theological studies from the Maryland Bible College and Seminary.

Concrete

15th Cement EXPO: A Step Forward in Cement Innovation

Published

7 days ago

January 17, 2025

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Mumbai

Following the immense success of the 14th Cement EXPO, held on December 14-15, 2023, at the Manekshaw Centre, New Delhi, the next edition of this premier event is set to take place in March 2025. The 15th Cement EXPO will be hosted at Yashobhoomi, Delhi, on 12th and 13th November 2025.

Meanwhile, the Cement Expo Forum 2025 is scheduled for 5th and 6th March 2025 at Taj Krishna in Hyderabad. This exciting 3-in-1 event, organised by FIRST Construction Council (FCC) and Indian Cement Review (ICR), will bring together industry leaders, innovators, and stakeholders to discuss the future of the cement sector.

Building on the Success of the 14th Cement EXPO

The 14th Cement EXPO was widely praised for its strong participation, attracting over 1,500 senior managers and decision-makers from across the cement industry. The event was inaugurated by Dr. Vibha Dhawan, Director General of TERI, and Ali Emir Adiguzel, Founder and Director of the World Cement Association, alongside Pratap Padode, Founder of FIRST Construction Council (FCC). The two-tiered exhibition space featured cutting-edge products and innovations from top companies within the cement industry’s supply chain.

The event also garnered significant support from key government bodies, including the Ministry of Road Transport and Highways, Government e-Marketplace (GeM), and the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, Government of India (GoI).

Recognition and Excellence in the Cement Industry

The 7th Indian Cement Review Awards celebrated excellence by presenting awards to 11 companies in various categories, recognising their contributions to growth and innovation within the industry. Notably, Parth Jindal, Managing Director of JSW Cement, was honoured with the prestigious Indian Cement Review – Person of the Year Award 2023. Meanwhile, Vinita Singhania, Vice Chairman and Managing Director of JK Lakshmi Cement Ltd, received the Lifetime Achievement Award for her outstanding leadership and contributions to the sector.

A Vision for Sustainability

With the theme of “Driving Sustainability Through Technology,” the 9th Indian Cement Review Conference hosted thought-provoking discussions and presentations, highlighting the industry’s commitment to adopting innovative, sustainable practices. The conference served as a platform for dialogue on the latest technological advancements aimed at transforming the cement sector, addressing key challenges, and fostering growth.

What to Expect from Cement EXPO 2025

The 15th Cement EXPO, along with the 10th Indian Cement Review Conference and the 8th Indian Cement Review Awards, is set to be even bigger and more impactful than the 2023 edition. With an expanded exhibition space, greater participation, and more in-depth discussions, the 2025 event will continue to drive the industry forward. This 3-in-1 event promises to be a pivotal moment in the ongoing transformation of the cement sector.

As the industry evolves, the 15th Cement EXPO 2025 will serve as a crucial platform for showcasing innovations, discussing emerging trends, and forging new partnerships to shape the future of cement and construction.

For more details:

Cement Expo Forum 2025: https://cementexpo.in/forum

15^th Cement Expo 2025: https://cementexpo.in/

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Concrete

Construction sector growth slows to 8-10% for FY2025: ICRA

Published

1 week ago

January 15, 2025

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The revenue growth for construction companies in FY2025 is projected at 8-10 per cent, down from the earlier estimate of 12-15 per cent, according to ICRA. This marks the slowest growth in three years, driven by factors such as the Model Code of Conduct in Q1, prolonged monsoons, and milestone-based billing in Q2, particularly affecting road-focused players.
ICRA’s analysis of 19 companies with a combined turnover of Rs.1.28 trillion in FY2024 shows modest revenue growth of 1.5 per cent YoY in H1 FY2025. While execution is expected to improve in H2, FY2025 growth remains below the historical CAGR of ~15 per cent (FY2018-FY2024).
Order inflows in urban transport, water and sewage projects are healthy, but road-focused entities face challenges due to muted inflows and high competition. Operating margins are projected to remain range-bound at 10.5-11 per cent, with debt levels rising to manage working capital needs, though debt coverage metrics remain stable.

Concrete

SANY India expands Pune factory to boost production capacity

Published

1 week ago

January 15, 2025

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SANY India inaugurated a cutting-edge factory expansion at its 90-acre Pune facility, elevating its production capacity to over 14,000 units annually, alongside a robust fabrication capacity of 100,000 metric tonnes.

The advanced facility reinforces SANY’s commitment to ‘Make in India’ by enhancing localised manufacturing and supporting global exports. Chairman Xiang Wenbo highlighted the strategic importance of India as a global hub, while Vice Chairman Deepak Garg emphasised the expansion’s role in driving innovation and infrastructure development. This investment enhances efficiency, reduces timelines, and strengthens SANY’s leadership in the construction equipment sector.