Economy & Market

‘Consolidation of cement industry is expected in 2013’

Published

12 years ago

January 10, 2013

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In 2013, consolidation is expected in cement industry in the medium-to-long-term with large M&A activities, says India Ratings agency. The agency expects credit profiles of large cement firms with superior cost position and pan-India presence to remain stable in 2013.

However, smaller companies with unfavourable cost structure and regional concentrations are likely to be under pressure, the agency said.

With credit growth of the housing sector at 13 per cent and that of the commercial real estate sector (CRE) at 4 per cent till November 2012, India Ratings expects the cement demand to grow between 5-8 per cent y-o-y in 2013. Cement production volume in 2012 was mainly driven by a relatively robust activity in housing and commercial real estate.

From September 2010 to March 2012, the average growth in credit to the housing sector was around 15 to 16 per cent in commercial real estate.

Large integrated players, who are among the top five in the country (in terms of production capacity), are likely to have median EBITDA margins in the range of 23 per cent to 24 per cent in 2013, comparable to the FY12 levels. However, smaller or partially-integrated players are likely to exhibit margins ranging from 17 to 19 per cent, lower than the median margins observed for such companies in FY12, the report said.

Concrete

Shree Cement reports 2025 financial year results

Published

6 days ago

June 17, 2025

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Shree Cement posted revenue of US$2.38 billion for FY2025, marking a 5.5 per cent decline year-on-year. Operating costs rose 2.9 per cent to US$2.17 billion, resulting in an EBITDA of US$528 million—down 12 per cent from the previous year. Net profit fell 50 per cent to US$141 million. The company reported cement sales of 9.84Mt in Q4 FY2025, a 3.3 per cent increase from 9.53Mt in Q4 FY2024, with premium products making up 16 per cent of total sales.

Image source:https://newsmantra.in/

Concrete

Rekha Onteddu to become director at Sagar Cements

Published

6 days ago

June 17, 2025

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Sagar Cements has announced the appointment of Rekha Onteddu as a non-executive independent director, effective 30 June 2025. According to People in Business News, Rekha Onteddu is currently serving in a similar capacity at Andhra Cements, the parent company of Sagar Cements.

Image source:https://sagarcements.in/

Concrete

India’s cement consumption set to rise

Published

6 days ago

June 17, 2025

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According to a Moody’s report, India’s cement consumption is projected to rise by 50 per cent over the next five years, increasing from 445 million metric tons per annum (MMTPA) in FY24 to 670 MMTPA by 2030. This growth is expected to be driven by government infrastructure spending and rising housing demand, with an anticipated annual growth rate of 6-7 per cent. To meet this demand, major cement companies are likely to continue acquiring smaller, less profitable firms.

Image source:https://www.telegraphindia.com/