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Indian Cement Industry Set to Build 100-150MT Capacity

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The 14th Cement Expo and 9th Indian Cement Review Conference 2023 flags off

  • The two-day event was inaugurated by Dr Vibha Dhawan, Director General, TERI; and Ali Emir Adiguzel, Founder and Director, World Cement Association
  • The chief guests in their speeches reaffirmed their confidence in the Indian cement industry’s stance of ‘Driving Sustainability Through Technology.’
  • The 9th Indian Cement Review Conference 2023 proved to be a melting pot of ideas in technological innovations that will help the cement industry become more sustainable and achieve its net zero targets.
  • The Conference and EXPO charted the journey of the Indian cement industry – from hard-to-abate to possible-to-abate.

DELHI, December 14, 2023: The prestigious Manekshaw Centre, New Delhi, came alive on the morning of December 14th, as luminaries, exhibitors, visitors and delegates converged for the grand inauguration of the 14th Cement Expo and 9th Indian Cement Review Conference 2023. The momentous occasion witnessed the ceremonial ribbon-cutting by Dr Vibha Dhawan, Director General, TERI; and Ali Emir Adiguzel, Founder and Director, World Cement Association, initiating two days of insightful discussions and collaborative initiatives.

Pratap Padode, Founder, FIRST Construction Council (FCC) guided the esteemed dignitaries to the Expo, facilitating introductions with exhibitors and detailed discussions on the showcased products and services. Cement EXPO 2023, seamlessly co-located with the 9th Indian Cement Review (ICR) Conference and the 7th Indian Cement Review Awards, is masterfully organised by FCC, an eminent infrastructure think tank, and Indian Cement Review (ICR), India’s foremost cement publication with a rich 38-year legacy. The 14th Cement EXPO garnered significant support from 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).

The formal inauguration of the 9th Indian Cement Review Conference 2023 commenced with the traditional lamp lighting ceremony, accompanied by keynote addresses and speeches from distinguished chief guests and dignitaries. Among the notable speakers were Dr Vibha Dhawan, Emir Adiguzel, Dr LP Singh, Director General, National Council for Cement and Building Material, and Kaustubh Phadke, India Head, Global Cement and Concrete Association.

Reiterating their confidence in the Indian cement industry’s commitment to ‘Driving Sustainability Through Technology,’ the chief guests set the tone for the conference. The 9th Indian Cement Review Conference 2023 served as a dynamic forum, bringing together diverse perspectives and fostering discussions on technological innovations crucial for the industry’s sustainability journey. With a focus on the theme ‘Driving Sustainability Through Technology,’ the conference aimed to spotlight advancements and suggest strategies for leveraging technology’s transformative power in the cement sector.

In his opening address, Padode said, “All the big players of the Indian cement industry are focussing on increasing their capacity, with an estimated projection of 200 million tonnes of fresh capacity to be added in the coming years. Emphasis is also laid on being the lowest-cost cement producer in India. In fiscal 2023, 30-32 MT (inclusive of grinding and integrated units) capacity addition is reportedly expected. Given that the higher input costs have moderated we could see capacity addition picking up pace in fiscal 2024 at over 30-32 MT leading up to the addition of 150 MT by fiscal 2027. Considering this speed of expansion, the tug of competition and a buoyant demand from infrastructure and housing segments, the Indian cement sector is poised to take a giant leap.” 

In his keynote address, Dr Singh said, “The definition of sustainability means we continue development and growth of our infrastructure while protecting the environment for our future generations. As far as sustainability in cement and concrete is concerned, NCCBM is working on every aspect of cement and concrete sustainability.”

Phadke further added, “Indian cement sector is most energy efficient, with more than 40 per cent of CO2 intensity reduced at India level. The industry progress report highlights the work done by cement industry globally. It follows the roadmap released globally by GCCA at the Glassdoor Summit to deliver a Net Zero concrete by 2050. The report also highlights our progress towards 2030.”

Dr Dhawan addressed the issue of climate change: “Nearly two-third of infrastructure development in India is still pending. Cement and steel are materials that are required in bulk to support this kind of development. This gives an insight into a higher demand, leading to the need of higher production, which is an opportunity for cement manufacturers to grow their business and develop the nation.” 

She added, “The unfortunate part of climate change is that it was established that a 1.5oC increase in temperature is acceptable as per norms, but that is slowly shifting to 2.5oC. Temperature above 52oC will not support human life. It will also impact biodiversity and climate change will bring along with itself a plethora of diseases known and unknown. The impact will not be uniform across the globe. Countries like ours will be impacted more as we are already affected by climate change.”

In his speech, Adiguzel said, “The power of Indian Cement industry goes beyond its sheer size. It is a catalyst for economic growth driving employment, investment and innovation, creating job opportunities directly or indirectly. The question is – are global Net Zero policies colliding with economic growth in India? Navigating the interplay between Net Zero policies, economic policies and emission targets in the cement industry is a global conversation.”

Jaxay Shah, Chairperson, Quality Council of India, joined the event via a video message. In his message, he said, “The Cement Expo stands as a testament of the dynamic adaptive nature of our industry. It is crucial that ideas, best practices and technology come together to forge the future of the cement and construction centres. This year’s theme ‘Driving Sustainability Through Technology’ highlights the intersection of technological innovations and sustainable practices. This synergy is essential for the growth of the cement industry in harmony with environment conservation.” 

The conference included presentations by Flender, Gebr. Pfeiffer, Loesche India and ATS Conveyors.

Panel Discussions

The panel discussion on ‘Driving sustainability: Challenges and opportunities in cement industry’ covered the importance of collaboration, innovation, and knowledge sharing to drive the industry towards a more sustainable future. The panel included Manoj Rustagi, EVP & CSO, JSW Cement; Kaustubh Phadke, India Head, Global Cement & Concrete Association (moderator), Sameer Bharadwaj – Head Manufacturing Excellence, JK Cement; Soundararaj Naveenthakrishna – General Manager, IKN Engineering; and Aashish Maheshwari, Associate Business Director, Evonik India Pvt Ltd.

‘Exploring Alternative Materials and Technologies for Sustainable Cement Manufacturing’ was another topic that was discussed by an industry panel, which included Dr SB Hegde, Prof Jain University & Visiting Professor Pennsylvania State University, USA, (moderator); Ashwani Pahuja, Chairman & Managing Director, NextCem Consulting; KN Rao, My Home Industries; Dr Bibekanand Mohapatra, Advisor & Consultant, Ultratech; and Rajesh Khanna, Director Sales & Marketing, Loesche India.

Ulhas Parlikar, Global Consultant, presented a technical paper on ‘Circular Economy Practices in Cement Production,’ while Dr LP Singh, Director General, NCB, presented a paper on Role of CCUS in decarbonising Indian Cement Industry.

Day 1 of the 14th Cement Expo and 9th Indian Cement Review Conference unfolded as a melting pot of ideas, showcasing technological innovations poised to make the cement industry more sustainable and accelerate progress toward net-zero targets. The event effectively charted the trajectory of the Indian cement industry, transitioning from hard-to-abate challenges to a realm of possibilities achievable through technological advancements.

Concrete

Lower sales realization impacts margins for cement makers in Q2 FY25

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

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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.

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Concrete

Steel companies face Rs 89,000 crore inventory crisis

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

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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.

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Concrete

JSW and POSCO collaborate for steel plant

JSW Group and POSCO ink MoU for steel project.

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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.

The agreement was formalized during a recent meeting between executives from both companies, highlighting their commitment to sustainable development and technological innovation in the steel industry. The planned facility will incorporate advanced manufacturing processes and adhere to environmentally friendly practices, aligning with global standards for sustainability.

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.

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