Economy & Market

Supply-side pressures will remain all through this year too

Published

5 years ago

October 14, 2021

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H M Bangur, Managing Director, Shree Cement. Infrastructure and housing are key drivers of cement market demand in India. A stable government will be expected to implement policies that boost both these sectors and help improve the prospects of the Indian cement industry which currently is going through a rough phase, says H M Bangur, Managing Director, Shree Cement. Excerpts from the interview.

Which sectors are expected to drive cement demand in 2014?
The infrastructure sector is expected to give the major boost to cement demand in 2014. With the new government coming in, it is expected that a renewed push will be given to stalled projects, and new projects will be initiated. All of this should auger well for cement demand.

If the interest rate cycle goes on a downturn next year, as we hope it will, with moderation in inflation going forward, housing demand should also revive across cities. Rural housing demand should remain good considering the expectation of a healthy agricultural growth this year.

Commercial real estate will start contributing majorly only when IndiaÂ´s GDP growth, especially the service sector, revives from the current low levels.

What is the demand-supply scenario likely to be in 2014?
Cement being a commodity business, with multiple demand drivers, predicting demand is a tricky affair. However, given the low demand seen in the current year, it should only improve or at worst remain the same.Supply- side pressures will remain all through this year, too as new capacity continues to come up irrespective of the slowdown. On the whole, supply is expected to continue to outstrip the demand in 2014, too.

What is your estimate on cement prices in 2014?
Cement realisations have been very low last year and unless any major boost in demand is seen, the prices may remain subdued in 2014 as well. Cement pricing is driven by market demand, very little can be said about its behaviour.

Are you planning capacity addition, more capacity utilisation or consolidation?
Shree Cement is moving forward to attain its target, 25 million tonnes capacity by 2015. This should be viewed in the backdrop of our current cement capacity of 13.5 million tonnes. Capacity expansion projects are currently under way by way of brownfield expansion at Ras (Rajasthan) and greenfield expansion at Balodabazar (Chhattisgarh) and Aurangabad (Bihar). An additional greenfield grinding capacity is being planned in north India to meet the target of 2015.

What changes in market trends do you foresee after elections?
Infrastructure and housing are key drivers of cement market demand in India. A stable government will be expected to implement policies that boost both these sectors and help improve the prospects of the Indian cement industry which is currently going through a rough phase.

What will our export /import scenario look like in 2014 with regard to cement and raw materials used in cement?
Cement being a bulky commodity, it is not suited for any substantial export/import. So there wonÂ´t be any substantial export-import of cement in 2014 as well. The same is true for cement raw material like limestone, fly-ash, etc. Some import of gypsum does take place; in terms of fuel, there is huge reliance on imports as government has not awarded any new linkage to the cement sector since 2007. So unless the government offers the much deserved domestic coal linkage/or reserving of coal blocks to the cement sector, the import of coal will continue in 2014.

What policy initiatives do you expect from the government?
To boost cement demand, and thus boost infrastructure development, the government could take some quick initiatives like:

Increasing the housing related tax incentive (interest and principal deduction for income tax purpose) limit for individuals.

Directing various state/central authorities to develop cement concrete roads which not only have an advantage over the life of the road but also on the current costs of construction. Cement plants have been always environment-friendly since they absorb the fly-ash generated by thermal power plants as its raw material. However, instead of supplying their hazardous waste free of cost to cement plants, power plants have started charging for it. The government needs to ensure that the principal ofÂ´polluter paysÂ´ is enforced and stop power plants from charging cement plants.

Ensuring that transporting of clinker in case of split-grinding units is of a permanent nature with fixed origin and destination points. To facilitate this, the railways should enter into long- term contracts at concessional rates to ensure efficient transport of such bulk products.

Cement production being power intensive, most plants have captive power plants. The government needs to support the sector by giving equal priority in grant of coal linkage and reserving suitable captive blocks vis-a-vis other sectors.

What is your take on the tax structure?
With an overall rate of tax on cement at 30 per cent, cement is a heavily taxed sector in India. This keeps the consumer prices for cement high. Also, excise duty on cement is currently being levied at mixed rates i.e, ad valorem (on transaction value) plus specific (specific rate to be charged on the basis of MRP).

Rationalisation of duty and some form of interest subvention will not only facilitate additional capacity addition but also make cement even more competitive and cost -effective.

With the new government coming in, it is expected that a renewed push will be given to stalled projects, and new projects will be initiated.

Unless the government offers the much deserved domestic coal linkage/or reserving of coal blocks to the cement sector, the import of coal will continue in 2014.

Shree believes in sustainability

Shree has been a forerunner in adopting the sustainability paradigm. A reflection of the fact is that the company pursues a holistic growth agenda with emphasis on three measures, or bottom lines, of corporate performance Ã» economic, social and environmental. Shree was the first Indian and the third Asian cement company to join the Cement Sustainability Initiative (CSI) of the World Business Council for Sustainable Development, Switzerland.
As a member of CSI, the Company is committed to pulling down its energy footprint, implementing best practices and sharing its knowledge with other members. The Company has also joined the league of seven nations, viz., the Asia Pacific Partnership on Clean Development and Climate Change comprising of the USA, Australia, China, Korea, Japan, Canada and India.
Some of our initiatives taken up by company included setting up of green power plants, manufacturing of synthetic gypsum and use of Air Cooled Condensers (ACCs) showing the companyÂ´s commitment towards this drive for sustainability.

Climate Disclosure Leadership Index (CDLI)

Indian companies are showing increasing confidence in disclosing their GHG emission, targets and commitments in regard to climate change actions. In this regard, CDP (Carbon Disclosure Project) along with Accenture India Ã» the official writer of the 2013 CDP India 200 Climate Change Report – have released their report on 2013 at BSE. Shree Cement has been ranked number one in Material Sector Leaders and number 3 in India 2013 Leaders

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.