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External factors affecting cement demand

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Factors such as rains and festivities affect cement demand in India every year from August to November. Even discounts offered by MNC cement companies to meet their year-end targets also lead to reduction in realisations. But, there are certain other exogenous factors which are affecting the demand and realisations of cement in northern and southern regions of the country. Factors such as ban on sand mining, shut-down of brick kilns and shortage of wagons have slowed down the overall construction activities and hence affecting the demand for cement. Firstly, a ban imposed by Punjab and Haryana on sand mining has made the construction ingredient quite expensive. Price of sand carried in tractor, having a space of 150 cubic feet, has increased from Rs 1,200 to Rs 2,500 approximately. A decision to lift the ban had been postponed to 20th January from January 9. The second factor is the lower availability of bricks which is one of the primary materials in construction. The Supreme Court ordered for the closure of brick-kilns not having environment clearance. As a result a large number of kilns were closed and there is a huge shortage of bricks. Efforts to setup fly-ash brick kilns have not been of much help as the process has been really slow due to cost issues. Lastly, a shortage of rail freight cement wagons has prevented cement producers in southern India, to supply cement in eastern and northern regions. South-based players look to supply in other regions due to overcapacity in southern India. Road transport not being feasible (due to greater distance), a shortage in rail wagons has hurt the cement players.

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Concrete

Shree Cement reports 2025 financial year results

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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/

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Concrete

Rekha Onteddu to become director at Sagar Cements

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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/

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Concrete

India’s cement consumption set to rise

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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/

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