Concrete

Shift Towards Sustainable Construction

Published

2 years ago

August 10, 2022

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Neeraj Akhoury, CEO India Holcim and Managing Director and CEO, Ambuja Cements, draws a clear path for sustainable shift towards blended cement, which would lead to lesser use of clinker, thereby enabling the industry to reach its decarbonisation targets.

In today’s world, cement stands shoulder to shoulder with core sectors like steel, energy and others as one of the key building blocks to nation building. With the current market size of $325 billion, the cement industry (in GDP terms) would rank among the top 50 industrialised nations in the world today. By 2028, this market is expected to grow to $460 billion. And when that happens, the global cement industry would have raced past another dozen or more countries in GDP terms.
Leaders in the cement sector across the world are not only aware of the opportunity this represents, but the weight of the responsibility that comes with it. Almost all major cement producers have committed themselves to a Net Zero future, an important decarbonisation movement that has also taken the larger industrial world by storm.

Planning Ahead
In the cement sector, we have identified every stage in the value chain as a potential target for decarbonisation. The execution of this change is happening within the bigger framework of ‘Circular Economy’. In simple terms, the principles of circular economy pushes manufacturers to treat every material (natural and processed) to be used in perpetuity. A key element in this system is the ability to cut down or reduce as one of the three Rs, along with reuse and recycling to achieve long term sustainability.
For the cement sector, one of the focus areas has been reduction of the use of clinkers in the manufacturing process, or what in industry parlance is called ‘clinker factor’. Clinker is an intermediary material used in the production of cement.
The reduction of clinker factor is achieved by replacing it with alternative blending materials like pozzolana, slag or fly ash (industrial waste) to produce blended cements. This reduces the carbon intensity of the cement—a primary lever for reduction of carbon emissions.
So, the more we shift towards blended cement, the lesser will be the use of clinker and thus move the cement industry closer to its ultimate decarbonisation targets.
The growing demand for blended cement in a country like India is particularly very effective in combating climate change. India is today the second-largest cement producer and consumer, with the share of blended cement of around 75 per cent of our total production mix. However, India’s per capita cement consumption at around 235 kg is less than half of the global average (520 kg).

Surging Demand
The economic growth we are foreseeing over the next few years and decades including the target of becoming a $5 trillion GDP will push the demand for cement to much higher levels. The surge in demand for cement can be environmentally sustained only by our efforts to push for wider use of blended and green cement. From the manufacturers point of view such a shift is already gaining a lot of momentum through more investment in R&D-led innovation to improve products and processes and in no small measure a strong and consistent consumer-focussed advocacy.
As one of the leading markets for cement in the world, this is an historic opportunity for India to establish its leadership in the true sense of the word.

About the author:
Neeraj Akhoury, CEO, Holcim India, and Managing Director and CEO of Ambuja Cements comes with over 28 years of experience in steel and cement industries. He has a degree in Economics and MBA from the University of Liverpool, and General Management from XLRI, Jamshedpur. He is also an alumnus of Harvard Business School. He is on the board of governors at National Council for Cement and Building Materials (NCCBM), and he also serves as Vice President of the Cement Manufacturers Association of India.

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The industry encountered several challenges, including an extended monsoon season.

Published

23 hours ago

November 6, 2024

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Major cement manufacturers reported a decline in margins for the September quarter, primarily due to lower prices, which led to decreased sales realization.

With the exception of three leading cement producers—UltraTech Cement, Ambuja Cement, and Dalmia Bharat—smaller companies, including Nuvoco Vistas Corp, JK Cement, Birla Corporation, and Heidelberg Cement, experienced a drop in both topline and sales volume during the second quarter of the current fiscal year.

The industry encountered several challenges, including an extended monsoon season, flooding, and a slow recovery in government demand, all contributing to weak overall demand.

Despite these challenges, power, fuel, and other costs largely remained stable across the industry. The all-India average cement price was approximately Rs 348 per 50 kg bag in June 2024, which represented an 11 per cent year-on-year decrease to Rs 330 per bag in September, although it saw a month-on-month increase of 2 per cent.

In the first half of FY25, cement prices declined by 10 per cent year-on-year, settling at Rs 330 per bag. This decline was notable compared to the previous year’s average prices of Rs 365 per bag and Rs 375 per bag in FY23, as reported by Icra.

Leading cement manufacturer UltraTech reported a capacity utilization rate of 68 per cent, with a 3 per cent growth in volume. However, its sales realization for grey cement declined by 8.4 per cent year-on-year and 2.9 per cent quarter-on-quarter during the July-September period.

In response to a query regarding cement prices during the earnings call, UltraTech’s CFO Atul Daga indicated that there had been an improvement in prices from August to September and noted that prices remained steady from September to October. He mentioned that the prices had risen from Rs 347 in August to approximately Rs 354 currently.

Concrete

Steel companies face Rs 89,000 crore inventory crisis

Steel firms grapple with Rs 89,000 crore stockpile amid import surge.

Published

2 days ago

November 5, 2024

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Steel companies in India are facing a significant challenge as they contend with an inventory crisis valued at approximately Rs 89,000 crore. This situation has arisen due to a notable increase in steel imports, which has put pressure on domestic producers struggling to maintain sales in a competitive market.

The surge in imports has been fueled by various factors, including fluctuations in global steel prices and increased production capacities in exporting countries. As a result, domestic steel manufacturers have found it difficult to compete, leading to rising stock levels of unsold products. This inventory buildup has forced several companies to reassess their production strategies and pricing models.

The financial impact of this inventory crisis is profound, affecting cash flows and profitability for many steel firms. With domestic demand remaining volatile, the pressure to reduce prices has increased, further complicating the situation for manufacturers who are already grappling with elevated production costs.

Industry experts are urging policymakers to consider measures that can support local steel producers, such as imposing tariffs on imports or enhancing trade regulations. This would help to protect the domestic market and ensure that Indian steel companies can compete more effectively.

As the steel sector navigates these challenges, stakeholders are closely monitoring the situation, hoping for a turnaround that can stabilize the market and restore confidence among investors. The current dynamics emphasize the need for a robust strategy to bolster domestic production and mitigate the risks associated with excessive imports.

Concrete

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JSW Group and POSCO ink MoU for steel project.

Published

2 days ago

November 5, 2024

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JSW Group has signed a Memorandum of Understanding (MoU) with South Korea’s POSCO Group to develop an integrated steel plant in India. This collaboration aims to enhance India’s steel production capacity and contribute to the country’s growing manufacturing sector.

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JSW Group, a leader in the Indian steel industry, has expressed confidence that the joint venture with POSCO will bolster its position in the market and accelerate growth. The project is expected to attract significant investments, generating thousands of jobs in the region and contributing to local economies.

As India aims to boost its steel output to meet domestic demand and support infrastructure projects, this partnership signifies a crucial step toward achieving those goals. Both companies are committed to leveraging their expertise to develop a state-of-the-art facility that will produce high-quality steel products while minimizing environmental impact.

This initiative also reflects the increasing collaboration between Indian and international firms to enhance industrial capabilities and foster economic growth. The MoU sets the stage for a promising future in the Indian steel sector, emphasizing innovation and sustainability as key drivers of success.