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Core sectors contract for sixth consecutive month

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The final index for May 2020 has been revised lower to (-)21.4 per cent as against -21.9 per cent (provisional). For July 2020, output growth has been revised to -8 per cent from -9.6 per cent (prov) on account of revision in output of the steel sector.

The output of the eight core sectors contracted in August 2020 by (-)8.5 per cent, recording the sixth consecutive month of negative growth. As the negative growth for July 2020 was revised to (-)8 per cent (earlier estimate: -9.6 per cent), the contraction in core sector has been marginally sharper than the previous month.

The growth in the output of the eight-core industries was (-)0.2 per cent in the corresponding month last year. On month-on-month (MoM) basis, the deterioration can be ascribed to localised lockdowns announced in some states which weighed on output partially. Barring coal and fertilizers, all the other sectors continue to record negative growth in output (YoY). Despite degrowth, sectors like natural gas and steel have seen an improvement from the previous month.

The final index for May 2020 has been revised lower to (-)21.4 per cent as against -21.9 per cent (provisional). For July 2020, output growth has been revised to -8 per cent from -9.6 per cent (prov) on account of revision in output of the steel sector. During April-August 2020, the core sector output has contracted by 17.8 per cent as against the 2.5 per cent growth during the same period 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 five month of FY21.

Key highlights:
Coal production improved in August and has recorded growth of 3.6 per cent compared with (-)5.7 per cent in July. The partial resumption of industrial activities has led to increase in coal production.
Production of crude oil contracted for the 5th successive month in August 2020 by (-)6.3 per cent on account of technical mishaps such as unavailability of drilling equipment or installation of new platforms, closure of wells due to less offtake because of the COVID-19 coupled with limitations and restriction in movement of onshore field operations.
Natural gas production continues to contract by (-)9.5 per cent in August, recording a de-growth for 17th consecutive month. Fall in production can be mainly ascribed to restricted/no gas off take by consumers due to COVID-19 and shutdown at consumers’ end. Environmental issues which resulted in bandhs/blockade by local people with issues associated with Baghjan well blast have also affected cumulative production.
Refinery production, having high weightage in eight core, contracted sharply by (-)19.1 per cent in August, compared with (-)13.9 per cent in July 2020. Increase in inventories and fall in demand has led to refiners trimming their capacity utilization thus resulting in a fall in overall refinery production. A few state-owned refiners were also planning to go for maintenance shutdown in order to remain afloat and protect margins. Capacity utilisation during August 20 was 77 per cent as compared with it being 106 per cent during August 19.
Output of steel sector declined by (-)6.3 per cent in August 2020, recording a fall for the sixth consecutive month. 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. However, there has been a sharp improvement since the April 2020 owing to resumption of construction activity.
Cement production continues to record double digit negative growth for half a year now. The de-growth in cement production was (-)14.6 per cent in August compared with (-)13.5 per cent in July 2020. Fall in demand for cement from housing and construction activities coupled with units operating at sub-par capacities along with staggered shifts has led to the fall in production. Heavy rains during the month have impacted domestic output.
Output of fertilizers grew to an eight-month high of 7.3 per cent in August compared with 6.9 per cent in July and the improvement can be ascribed to restocking activities undertaken by the manufactures in order to keep up with the sharp increase of fertilizer sales.
Electricity production fell by (-)2.7 per cent in August as against (-)2.5 per cent in July 2020 and (-)0.9 per cent in August 2019. Though the marginal fall (MoM) can be attributed to localised lockdowns in some states, there has been a sharp improvement from April 2020. 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
Unlocking of the Indian economy significantly after further relaxation of restrictions announced in September coupled with a low base effect will augur well for the growth in core sector in the next month. 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 -10-12 per cent.

ABOUT THE AUTHOR:
The article is authored by Sushant Hede, Associate Economist. He can be contacted at: Email: sushant.hede@careratings.com | Tel: 91-22-68374348.
Disclaimer: This report is prepared by CARE Ratings Ltd. CARE Ratings has taken utmost care to ensure accuracy and objectivity while developing this report based on information available in public domain. However, neither the accuracy nor completeness of information contained in this report is guaranteed. CARE Ratings is not responsible for any errors or omissions in analysis/inferences/views or for results obtained from the use of information contained in this report and especially states that CARE Ratings has no financial liability whatsoever to the user of this report.

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Economy & Market

Power Build’s Core Gear Series

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A deep dive into Core Gear Series of products M, C, F and K, by Power Build, and how they represent precision in motion.

At the heart of every high-performance industrial system lies the need for robust, reliable, and efficient power transmission. Power Build answers this need with its flagship geared motor series: M, C, F and K. Each series is meticulously engineered to serve specific operational demands while maintaining the universal promise of durability, efficiency, and performance.

Series M – Helical Inline Geared Motors
Compact and powerful, the Series M delivers exceptional drive solutions for a broad range of applications. With power handling up to 160kW and torque capacity reaching 20,000 Nm, it is the trusted solution for industries requiring quiet operation, high efficiency, and space-saving design. Series M is available with multiple mounting and motor options, making it a versatile choice for manufacturers and OEMs globally.

Series C – Right Angled Heli-Worm Geared Motors
Combining the benefits of helical and worm gearing, the Series C is designed for right-angled power transmission. With gear ratios of up to 16,000:1 and torque capacities of up to 10,000 Nm, this series is optimal for applications demanding precision in compact spaces. Industries looking for a smooth, low-noise operation with maximum torque efficiency rely on Series C for dependable performance.

Series F – Parallel Shaft Mounted Geared Motors
Built for endurance in the most demanding environments, Series F is widely adopted in steel plants, hoists, cranes and heavy-duty conveyors. Offering torque up to 10,000 Nm and high gear ratios up to 20,000:1, this product features an integral torque arm and diverse output configurations to meet industry-specific challenges head-on.

Series K – Right Angle Helical Bevel Geared Motors
For industries seeking high efficiency and torque-heavy performance, Series K is the answer. This right-angled geared motor series delivers torque up to 50,000 Nm, making it a preferred choice in core infrastructure sectors such as cement, power, mining and material handling. Its flexibility in mounting and broad motor options offer engineers the freedom in design and reliability in execution.
Together, these four series reflect Power Build’s commitment to excellence in mechanical power transmission. From compact inline designs to robust right-angle drives, each geared motor is a result of decades of engineering innovation, customer-focused design and field-tested reliability. Whether the requirement is speed control, torque multiplication or space efficiency, Radicon’s Series M, C, F and K stand as trusted powerhouses for global industries.

http://www.powerbuild.in
Call: +919727719344

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Economy & Market

Conveyor belts are a vital link in the supply chain

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Kamlesh Jain, Managing Director, Elastocon, discusses how the brand delivers high-performance, customised conveyor belt solutions for demanding industries like cement, mining, and logistics, while embracing innovation, automation, and sustainability.

In today’s rapidly evolving industrial landscape, efficient material handling isn’t just a necessity—it’s a competitive advantage. As industries such as mining, cement, steel and logistics push for higher productivity, automation, and sustainability, the humble conveyor belt has taken on a mission-critical role. In this exclusive interview, Kamlesh Jain, Managing Director, Elastocon, discusses how the company is innovating for tougher terrains, smarter systems and a greener tomorrow.

Brief us about your company – in terms of its offerings, manufacturing facilities, and the key end-user industries it serves.
Elastocon, a flagship brand of the Royal Group, is a trusted name in the conveyor belt manufacturing industry. Under the brand name ELASTOCON, the company produces both open-end and endless belts, offering tailor-made solutions to some of the most demanding sectors such as cement, steel, power, mining, fertiliser, and logistics. Every belt is meticulously engineered—from fabric selection to material composition—to ensure optimal performance in tough working conditions. With advanced manufacturing facilities and strict quality protocols, Elastocon continues to deliver high-performance conveyor solutions designed for durability, safety, and efficiency.

How is the group addressing the needs for efficient material handling?
Efficient material handling is the backbone of any industrial operation. At Elastocon, our engineering philosophy revolves around creating belts that deliver consistent performance, long operational life, and minimal maintenance. We focus on key performance parameters such as tensile strength, abrasion resistance, tear strength, and low elongation at working tension. Our belts are designed to offer superior bonding between plies and covers, which directly impacts their life and reliability. We also support clients
with maintenance manuals and technical advice, helping them improve their system’s productivity and reduce downtime.

How critical are conveyor belts in ensuring seamless material handling?
Conveyor belts are a vital link in the supply chain across industries. In sectors like mining, cement, steel, and logistics, they facilitate the efficient movement of materials and help maintain uninterrupted production flows. At Elastocon, we recognise the crucial role of belts in minimising breakdowns and increasing plant uptime. Our belts are built to endure abrasive, high-temperature, or high-load environments. We also advocate proper system maintenance, including correct belt storage, jointing, roller alignment, and idler checks, to ensure smooth and centered belt movement, reducing operational interruptions.

What are the key market and demand drivers for the conveyor belt industry?
The growth of the conveyor belt industry is closely tied to infrastructure development, increased automation, and the push for higher operational efficiency. As industries strive to reduce labor dependency and improve productivity, there is a growing demand for advanced material handling systems. Customers today seek not just reliability, but also cost-effectiveness and technical superiority in the belts they choose. Enhanced product aesthetics and innovation in design are also becoming significant differentiators. These trends are pushing manufacturers to evolve continuously, and Elastocon is leading the way with customer-centric product development.

How does Elastocon address the diverse and evolving requirements of these sectors?
Our strength lies in offering a broad and technically advanced product portfolio that serves various industries. For general-purpose applications, our M24 and DINX/W grade belts offer excellent abrasion resistance, especially for RMHS and cement plants. For high-temperature operations, we provide HR and SHR T2 grade belts, as well as our flagship PYROCON and PYROKING belts, which can withstand extreme heat—up to 250°C continuous and even 400°C peak—thanks to advanced EPM polymers.
We also cater to sectors with specialised needs. For fire-prone environments like underground mining, we offer fire-resistant belts certified to IS 1891 Part V, ISO 340, and MSHA standards. Our OR-grade belts are designed for oil and chemical resistance, making them ideal for fertiliser and chemical industries. In high-moisture applications like food and agriculture, our MR-grade belts ensure optimal performance. This diverse range enables us to meet customer-specific challenges with precision and efficiency.

What core advantages does Elastocon offer that differentiate it from competitors?
Elastocon stands out due to its deep commitment to quality, innovation, and customer satisfaction. Every belt is customised to the client’s requirements, supported by a strong R&D foundation that keeps us aligned with global standards and trends. Our customer support doesn’t end at product delivery—we provide ongoing technical assistance and after-sales service that help clients maximise the value of their investments. Moreover, our focus on compliance and certifications ensures our belts meet stringent national and international safety and performance standards, giving customers added confidence.

How is Elastocon gearing up to meet its customers’ evolving needs?
We are conscious of the shift towards greener and smarter manufacturing practices. Elastocon is embracing sustainability by incorporating eco-friendly materials and energy-efficient manufacturing techniques. In parallel, we are developing belts that seamlessly integrate with automated systems and smart industrial platforms. Our vision is to make our products not just high-performing but also future-ready—aligned with global sustainability goals and compatible with emerging technologies in industrial automation and predictive maintenance.

What trends do you foresee shaping the future of the conveyor belt industry?
The conveyor belt industry is undergoing a significant transformation. As Industry 4.0 principles gain traction, we expect to see widespread adoption of smart belts equipped with sensors for real-time monitoring, diagnostics, and predictive maintenance. The demand for recyclable materials and sustainable designs will continue to grow. Furthermore, industry-specific customisation will increasingly replace standardisation, and belts will be expected to do more than just transport material—they will be integrated into intelligent production systems. Elastocon is already investing in these future-focused areas to stay ahead of the curve.

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Economy & Market

Impactful Branding

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Advertising or branding is never about driving sales. It’s about creating brand awareness and recall. It’s about conveying the core values of your brand to your consumers. In this context, why is branding important for cement companies? As far as the customers are concerned cement is simply cement. It is precisely for this reason that branding, marketing and advertising of cement becomes crucial. Since the customer is unable to differentiate between the shades of grey, the onus of creating this awareness is carried by the brands. That explains the heavy marketing budgets, celebrity-centric commercials, emotion-invoking taglines and campaigns enunciating the many benefits of their offerings.
Marketing strategies of cement companies have undergone gradual transformation owing to the change in consumer behaviour. While TV commercials are high on humour and emotions to establish a fast connect with the customer, social media campaigns are focussed more on capturing the consumer’s attention in an over-crowded virtual world. Branding for cement companies has become a holistic growth strategy with quantifiable results. This has made brands opt for a mix package of traditional and new-age tools, such as social media. However, the hero of every marketing communication is the message, which encapsulates the unique selling points of the product. That after all is crux of the matter here.
While cement companies are effectively using marketing tools to reach out to the consumers, they need to strengthen the four Cs of the branding process – Consumer, Cost, Communication and Convenience. Putting up the right message, at the right time and at the right place for the right kind of customer demographic is of utmost importance in the long run. It is precisely for this reason that regional players are likely to have an upper hand as they rely on local language and cultural references to drive home the point. But modern marketing and branding domain is exponentially growing and it would be an interesting exercise to tabulate and analyse its impact on branding for cement.

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