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Core sectors contract in July by 9.6%

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During April-July 2020, the core sector output has contracted by 20.5 per cent as against the 3.2 per cent growth during the same months of FY20, which can be ascribed to the coronavirus pandemic induced nation-wide lockdown that brought production activities to a near standstill.

For fifth successive month, the output of eight core sectors contracted in July 2020 by 9.6 per cent when compared with the 2.6 per cent growth witnessed in the same month of the previous year. However, on a sequential basis, the output of eight core sector increased for fourth month a row and improved when compared with 12.9 per cent decline in June 2020. The partial increase in the output in the month of July 2020 can in part be ascribed to further relaxations in the lockdown restrictions permitted under Unlock 2.0. However, localised lockdowns imposed by states in certain parts have weighed on the output during the month. In the month of July 2020, barring fertilizers, all other industries have recorded a de-growth (yoy per cent).

The final index for April 2020 has been revised lower as a result of which the growth has been revised lower at -37.9 per cent as against -37 per cent (provisional). For June 2020, output growth has been revised higher to -12.9 per cent v/s -15 per cent (provisional).

During April-July 2020, the core sector output has contracted by 20.5 per cent as against the 3.2 per cent growth during the same months of FY20, which can be ascribed to the coronavirus pandemic induced nation-wide lockdown that brought production activities to a near standstill. All sectors barring fertilizers registered de-growth in industrial output during the first four month of FY21.

Key highlights:
Coal production declined by 5.7 per cent in July 2020 at a faster pace than the 1.6 per cent contraction in July 2019. However, when compared with June 2020 coal production has improved considerably (-15.5 per cent in June 2020). The partial resumption of industrial activities has led to increase in coal production. However, high inventory pile up and low pick up of coal stocks by electricity generation companies and monsoon season has weighed on coal production during the month.’

Production of crude oil contracted for the 4th successive month in July 2020 by 4.9 per cent on account of delay in production activities due to lockdown restrictions, non- availability of electric submersible pump (ESPs), delay in installation of new platforms, rise in water cut in wells & decline in total liquid production of wells, loss of oil production due to bandh/blockade by local people after the blow out at Baghjan and nearby areas.

Natural gas production declined for 16 months successively in July 2020 by 10.2 per cent as against 0.5 per cent de-growth in the same of last year. Delay in production activities due to lockdown, lower production from Vasistha/S1 wells due to surface issues and restricted/ no gas off take by consumers in onshore due to Covid-19 situation and shutdown at consumers’ end weighed on production. Refinery production, having higher weightage in eight core, contracted at a double digit pace of 13.9 per cent higher than -0.9 per cent in July 2019 owing to lower demand in domestic and global markets due to impact of Covid-19 lockdown and ongoing monsoons.

Output of steel sector decreased at a double digit rate for fifth month in a row by 16.4 per cent compared with the 8.1 per cent growth in July 2019. It can be ascribed to subdued construction activities owing to monsoon and lockdown restrictions, low demand from auto sector with high inventories and muted demand.

Cement production witnessed a dip by 13.5 per cent, a successive de-growth for fifth month, due to subdued construction activities and high inventories in the real estate sector. The increased demand seen from the rural sector too moderated as the coronavirus infections penetrated in the rural India as well.

Output of fertilizers grew by 6.9 per cent in July 2020, higher than 1.5 per cent growth in July 2019 and 4.2 per cent in June 2020 as it was less affected by the shutdown and production continued as demand from agriculture was high. This demand along with replacement of stocks in advance for the rabi sowing later in October-November has partly contributed to this increase in production.

Electricity production fell by 2.3 per cent as against the 5.2 per cent growth witnessed in July 2019. On a sequential basis, however, it was higher than the 10 per cent contraction seen in the previous month. This reflects resumption of industrial and business activity leading to pick up in commercial demand which again gets reflected in similar patterns witnessed in coal.

CARE Ratings’ View
In August 2020, further relaxation was permitted which is expected to push up the production by various key sectors during the month. The output thus may improve further in the eight core sector. Given the relationship between core sector growth and IIP growth (i.e., 40 per cent weightage of core sectors in IIP), the latter may be expected to be in the region of -12 to 14 per cent.

Courtesy: CARE Ratings

The article is authored by: Dr. Rucha Ranadive, Economist Email: rucha.ranadive@careratings.com | 91-22-68374348

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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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