Economy & Market

Sluggish market

Published

5 years ago

October 14, 2021

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Cement demand remained subdued during Q1FY14 after witnessing weak growth of nearly 5.5per cent during FY13. This was impacted by lack of construction activity due to Infra and housing slowdown, labour shortage coupled with early onset of monsoons. However, cement prices continued to remain firm after witnessing declines during beginning of Q1FY14.

Cement demand growth

continued to remain sluggish in Q1FY14, impacted by continued weakness in Housing and Infrastructure verticals. Capacity utilization is likely to remain soft. Dealers across regions highlight limited near-term visibility of demand recovery. However, they are hopeful that the election impact would play out in favor for demand uptick in H2FY14, resulting in 6-7per cent volume growth. The demand remains sluggish in most regions and may worsen in the next one month due to monsoon and prices are likely to fall further. Overall, while visibility remains weak for the near term, medium-term demand outlook remains optimistic with several infrastructure/power projects underway.

Weak pricing scenario – lowest since Q3FY11

Cement prices witnessed a bounce-back in the month of May 2013 after two consecutive months of decline. On a pan India basis, they increased by Rs.15 per bag in this month.

However, this was a repercussion of the increase in coal prices and an earlier hike in railway freight charges. Cement producers passed on these cost hikes to their consumer and tried to regain some pricing discipline.

Though prices staged a recovery late in the quarter (post May 15), poor availability of construction materials (sand and bricks), and the early arrival of the monsoon restricted further price hikes. Cement prices in Andhra Pradesh remained low due to political issues impacting construction activities. However, on account of high base prices of last year, cement prices are down 2.3per cent y-o-y, with South (down 4.5per cent y-o-y) being the worst affected region followed by East (down 3.6per cent y-o-y). Cement prices in northern region witnessed correction during beginning of Q1FY14 led by lack of demand and labor unavailability. However, prices have started recovering later and currently range around Rs.270-275 on an average in northern region. Prices have remained largely stable in eastern India but may witness correction as monsoon progresses and demand remains weak.

EBIDTA/tonne could decline due to cost pressures

Aggregate operating cost per MT is expected to grow by 3.5per cent y-o-y and 2.5per cent q-o-q, led by higher energy and freight cost. During the quarter, diesel price increased by 4.7per cent q-o-q, leading to higher freight cost. Power and fuel cost is expected to remain stable at the higher levels despite a 5per cent q-o-q fall in international coal prices, as the decline is partially offset by the rupee depreciation of 3.3per cent q-o-q.

Slowing capacity addition on account of huge surplus

Fresh capacity addition by the cement industry is expected to slow down as demand fails to keep pace with new additions. The industry’s production capacity increased to 325 million tonnes (mt) last fiscal as compared to 219 mt in FY09, registering a compounded annual growth rate of 10.4 per cent. Given the huge surplus situation prevailing in the industry, the pace of capacity addition could decelerate going ahead. The industry may add about 66 mt in the next three fiscals. Going forward, the capacity utilisation rate may improve gradually given the slowdown in pace of capacity addition and recovery in demand.

Outlook

For FY14 as a whole cement demand growth is expected to remain muted at ~6per cent. Profitability for national players could come under pressure if they are faced with increased supply from regional players. The current fiscal is expected to see capacity additions of 30 mn tonnes. FY14 is likely to surprise positively on demand front (though back ended) with a line-up of large state elections. Pricing is expected to remain stable to buoyant as well. Going forward, we expect cement demand to improve in H2FY14 on the back of benefits resulting from likely decline in interest rates, pre-assembly and general election infrastructure spending, pick-up in individual housing/affordable housing and improvement in the execution of stalled projects.

Companies having a strong presence in the southern part of the country may fare well as compared to those located in the northern part as the demand in the southern region looks stronger as compared to that of in northern India.

Post monsoons, prices are likely to firm up led by demand improvement on pre-election spend as well as improved pace of infrastructure awards. One could pick stocks in this sector in the monsoon related weakness as demand revival is expected in H2FY14.

Concrete

Wonder Cement appoints Mahesh Singh as VP Corporate Brand Communication

Published

4 days ago

October 9, 2026

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Singh brings 20+ years of brand and marketing experience, and will lead integrated corporate brand communication initiatives at Wonder Cement

New Delhi

Wonder Cement, a leading cement manufacturer, has appointed Mahesh Singh as Vice President – Corporate Brand Communication. In his new role, he will oversee corporate brand strategy and communication, including digital and performance marketing, public relations, trade, events, exhibitions, sports and experiential marketing.

Singh brings over two decades of experience across marketing and communications, with roles spanning the automotive industry, agencies and entrepreneurship. He spent more than a decade with Honda Motorcycle & Scooter India, working across integrated communication, media, digital, retail and consumer engagement. His stint also included helping build the company’s digital marketing capabilities.

He moved to dentsu X India as Vice President – Strategy & Planning, working across categories such as automotive, auto components, electric vehicles, FMCG, consumer electronics, BFSI, apparel and brand consulting. His responsibilities included media and marketing strategy, product launches, content, performance marketing and consumer activations.

Singh subsequently took an entrepreneurial route with Radiant Brands before joining Shriram Ltd (SPR Autotech) as Head – Marketing & Communications. There, his remit included brand and corporate strategy, communications, PR and ORM, retail identity, loyalty programmes and events.

At Wonder Cement, Singh will be responsible for bringing together the company’s corporate brand communication initiatives across digital, performance marketing, PR, trade, sports and experiential platforms. The role will focus on creating an integrated approach to communication across consumers, trade partners and other key stakeholders.

The appointment brings to Wonder Cement a marketer whose career has spanned the brand, agency and entrepreneurial sides of the communications ecosystem.

Wonder Cement, part of the RK Group, is a cement manufacturer with roots in Rajasthan and a focus on quality, trust and transparency. The company has grown to six manufacturing plants, and a cement capacity of 21.5 MTPA. With more than 2,000 employees and a network of over 5,000 dealers, its operations span manufacturing, distribution and customer engagement, with a focus on consistent product quality and efficient execution.

Concrete

JSW Cement commissions additional 1 MTPA grinding unit at Nagaur

Published

5 days ago

October 8, 2026

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With this commissioning, JSW Cement’s total cement grinding capacity has increased to 25.10 MTPA,
Mumbai

JSW Cement, one of India’s leading green cement producers and part of the diversified JSW Group, today announced the successful commissioning of an additional 1.00 MTPA cement grinding unit at Nagaur, Rajasthan. The commissioning marks another significant milestone in the Company’s growth strategy.

With this commissioning, JSW Cement’s total cement grinding capacity has increased to 25.10 MTPA, while its total clinker manufacturing capacity, including clinker capacity at its joint venture, JSW Cement FZC, stands at 9.74 MTPA.

JSW Cement had commenced operations in North India in March 2026 with the Nagaur Integrated Plant, comprising a 3.30 MTPA clinkerisation unit and 2.50 MTPA cement grinding unit. With the commissioning of the additional 1.00 MTPA cement grinding unit, the plant’s total cement grinding capacity has increased to 3.50 MTPA, enhancing the company’s ability to cater to the growing cement demand across Rajasthan, Haryana, Punjab and the National Capital Region (NCR). The expansion has been funded through a strategic mix of equity and long-term debt.

During the quarter ended 30th September 2026, JSW Cement has also commissioned the Alternate Fuel Handling System and the Waste Heat Recovery system (WHRS) at the Nagaur Integrated Plant.

Nilesh Narwekar, CEO, JSW Cement, said: “The commissioning of additional 1.00 MTPA grinding capacity at Nagaur is a key strategic priority for us and will accelerate JSW Cement’s expansion into North India. We look forward to servicing the growing needs of the region and contributing to the economic growth of Rajasthan, Haryana, Punjab and the NCR area. I am delighted to share that the company has commissioned this grinding unit within the expected timeline, showcasing our project execution capabilities. Further, the Alternate Fuel Handling System and the Waste Heat Recovery system (WHRS) are expected to substantially reduce our production costs going forward.”

Concrete

UltraTech becomes first Indian cement firm to cross 2 GW green energy

Published

6 days ago

October 7, 2026

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UltraTech Cement has crossed 2 GW of captive green energy capacity, with renewables and waste heat recovery meeting 48 per cent of its power needs.

Mumbai

UltraTech Cement Limited has surpassed 2 GW of installed green energy capacity for captive use, becoming the first cement company in India to achieve the milestone. The Aditya Birla Group company commissioned 116.55 MW of wind capacity at its Inter-State Transmission System-connected wind-solar hybrid project in Barmer, Rajasthan, along with 10 MW of Waste Heat Recovery System capacity at Sarlanagar Cement Works in Karnataka.

With these additions, UltraTech’s cumulative installed green energy capacity has reached 2,024 MW. This includes 1,580 MW of renewable energy capacity and 444 MW of waste heat recovery capacity, together meeting around 48 per cent of the company’s current power requirements.

The company said the milestone reflects the progress of its long-term energy transition strategy. In FY27 so far, nearly one-third of UltraTech’s 76 manufacturing units in India have maintained green energy utilisation above 50 per cent of their electricity requirements, while five units have crossed 95 per cent.

K C Jhanwar, Managing Director, UltraTech Cement Limited, said, “Crossing the 2 GW green energy milestone is the result of a strategy we have pursued consistently over the past decade. Cement is an energy-intensive, hard-to-abate sector, and showing that reliability and growth can go hand in hand with a rapid shift to green energy sets a benchmark for the industry. With nearly half of our power needs now met through green energy, we are significantly less exposed to fossil fuel supply constraints and power price volatility. As we scale up renewables, waste heat recovery and battery storage across our operations, we are building an energy foundation for stable, long-term growth.”

UltraTech commissioned 430 MW of green energy capacity in FY26 and continues to expand its renewable energy and waste heat recovery portfolio.

The company is also progressively integrating Battery Energy Storage Systems across its operations to improve renewable energy utilisation and supply reliability.

In 2025, UltraTech operationalised what it described as India’s first on-site hybrid round-the-clock renewable energy project at Sewagram Cement Works in Gujarat. The project combines solar, wind and battery storage.

As part of its decarbonisation strategy, UltraTech said it has not invested in new captive thermal power capacity for either greenfield projects or brownfield expansions at its integrated units for more than a decade.

The company said its expanding green energy portfolio is helping reduce dependence on conventional grid electricity and fossil fuel-based power, while lowering exposure to fluctuations in coal and electricity prices.

UltraTech aims to increase green energy’s share in its total power mix to 85 per cent by 2030. As a member of RE100, it has also committed to meeting 100 per cent of its electricity requirement through renewable sources by 2050.

UltraTech Cement, the cement flagship of the Aditya Birla Group, has a total grey cement capacity of 210.1 MTPA and white cement and putty capacity of 3.5 MTPA. The company is also a signatory to the GCCA Climate Ambition 2050 and has committed to the GCCA Net Zero Concrete roadmap.