Concrete

Bad News in New Year

Published

9 years ago

December 31, 2016

admin

This December, we were privileged to organise the ICR Cement Expo and Cement Conference concurrently. The theme of the conference was ‘Infrastructure to drive cement demand’. When we planned the conference a few months back, and narrowed down on to the proposed theme, it seemed perfectly logical that the cement demand would look up in 2017, and it also looked certain that new upcoming infrastructure projects will help drive up cement demand, duly aided by the positive effects of a great monsoon on rural housing demand.

Little did we know that on 8th November, an upheaval will be triggered in the economy in general, and in all such sectors which substantially transact in cash, including cement, and all our expectations based on industry analysis, would be rudely belied.

The sudden shock of demonetisation adversely impacted the trade or retail component of cement off-take, because at the cement counters of retailers all over India, bags are purchased mostly in cash. However, different regions of the country were affected differently in the early days of demonetisation. For example, in the early days post 8th November, southern markets withstood the shock much better than the eastern or northern markets. This discrepancy was mostly caused by the difference in the extent to which the cement makers in the regions pushed cement into the distribution pipeline ignoring the drop in retail off-take.

But as time passed, let’s say in December, the southern markets are drying up as well. Overall, the drop in demand has varied widely from 20 per cent to 70 per cent in different regional markets of India, and insiders say that this trend will continue into January 2017. In spite of brave attempts of cement players, prices have started sliding down as well, and some analysts say that prices have corrected by Rs 15-30/bag across markets. As a result, the stocks of cement companies have already fallen by 15-30 per cent since that fateful November day.

As if this was not enough, the industry has been also hit by increasing fuel prices, which account for at least 40 per cent of its cost structure. Prices of pet coke, imported coal and diesel are going up. According to the data from S&P Global Platts, pet coke and imported coal prices rose between 30 and 37 per cent between July and December. The companies and plants which are located far away from domestic coalfields and/or depended more on pet coke as fuel, are going to be affected sharply. Together with the demand shocker and softening of retail prices, this cost push is going to come as a double whammy for a number of cement companies. Margins of cement companies will get squeezed to various degrees as a result of all this.

Coming back to the theme of our conference, it seems that the government’s infrastructure investments, both in the Central and state sectors, will be the only saviour of the cement industry in the next 12 months. Even so, the infra players and EPC contractors, being volume buyers, have quite a lot of negotiating leverage, and therefore, overall profitability of cement is going to take a hit in relation to retail markets.

End of the day, it does seem that everything has got postponed by a year. Let us now gear up to face a year of tribulations, and look forward to 2018 for recovery of the industry. We would like to underline the fact that the fundamental strengths of the cement industry continue to be enduring in the longer term.

Concrete

NDMC Rolls Out Intensive Sanitation Drive Across Lutyens Delhi

Municipal body intensifies cleaning and monitoring across the capital

Published

1 day ago

March 13, 2026

admin

The New Delhi Municipal Council has launched an intensive sanitation drive across Lutyens’ Delhi, aiming to raise cleanliness standards in the capital’s central precincts. The programme will combine enhanced manual sweeping with mechanised cleaning and systematic waste removal to cover parks, heritage precincts and prominent thoroughfares. Authorities described the initiative as a sustained effort to improve public hygiene and reduce environmental hazards while maintaining the area’s civic image.

Operational teams have been instructed to prioritise drain clearing and litter hotspots, with special attention to markets and transit nodes that attract heavy footfall. Coordination with city utilities and waste processing units will be stepped up to ensure timely collection and disposal, and supervisory rounds will monitor adherence to cleaning schedules. Officials also intend to use data-driven planning to deploy resources efficiently and to identify recurring problem areas.

The council plans to engage resident welfare associations and business stakeholders to foster community participation in maintaining cleanliness and to support behavioural change campaigns. Public communication will be amplified through notices and outreach to encourage responsible waste handling and to inform residents about collection timings and segregation norms. Enforcement measures for littering and unauthorised dumping will be reinforced as part of a broader strategy to deter violations and sustain cleanliness gains.

The move reflects a focus on urban sanitation that officials link to public health priorities and to the city administration’s commitment to maintaining civic amenities. Monitoring mechanisms will include regular reporting and inspections to review outcomes and to recalibrate operations where necessary, according to municipal sources. The council emphasised that continued community cooperation will be essential for the drive to deliver lasting improvements in the appearance and hygiene of the capital’s core areas.

Concrete

UltraTech Appoints Jayant Dua As MD-Designate For 2027

Executive named to succeed current managing director in 2027

Published

4 days ago

March 10, 2026

admin

UltraTech Cement has appointed Jayant Dua as managing director (MD) designate who will take charge in 2027, the company announced. The appointment signals a planned leadership transition at one of the country’s largest cement manufacturers. The board has set a clear timeline for the handover and has framed the move as part of a structured succession plan.

Jayant Dua will be referred to as MD after assuming the role and will be responsible for overseeing operations, strategy and growth initiatives across the company’s network. The company said the designation follows established governance norms and aims to ensure continuity in executive leadership. The appointment is expected to allow a phased transfer of responsibilities ahead of the formal changeover.

The decision is intended to provide strategic stability as UltraTech Cement navigates domestic infrastructure demand and evolving market dynamics. Management will continue to focus on operational efficiency, capacity utilisation and cost management while aligning investments with long term objectives. The board will monitor the transition and provide further information on leadership responsibilities closer to the effective date.

Investors and market observers will have time to assess the implications of the announcement before the change is effected, and analysts will review the company’s outlook in the context of the succession. The company indicated that it will communicate any additional executive appointments or organisational changes as they are finalised. Shareholders were advised to refer to formal filings and company releases for definitive details on governance or remuneration.

The leadership change will be managed with attention to stakeholder interests and operational continuity, and the company reiterated its commitment to delivery on ongoing projects and customer obligations. Senior management will engage with employees and partners to ensure a smooth handover while maintaining focus on safety and compliance. Further updates will be provided through official investor communications in due course.

Concrete

Merlin Prime Spaces Acquires 13,185 Sq M Land Parcel In Pune

Rs 273 crore purchase broadens the developer’s Pune presence

Published

1 week ago

March 6, 2026

admin

Merlin Prime Spaces (MPS) has acquired a 13,185 sq m land parcel in Pune for Rs 273 crore, marking a notable expansion of its footprint in the city.

The transaction value converts to Rs 2,730 mn or Rs 2.73 bn.

The parcel is located in a strategic area of Pune and the firm described the acquisition as aligned with its growth objectives.

The deal follows recent activity in the region and will be watched by investors and developers.

MPS said the acquisition will support its planned development pipeline and enable delivery of commercial and residential space to meet local demand.

The company expects the site to provide flexibility in product design and phased development to respond to market conditions.

The move reflects an emphasis on land ownership in key suburban markets.

The emphasis on land acquisition reflects a strategy to secure inventory ahead of demand cycles.

The purchase follows a period of sustained investor interest in Pune real estate, driven by expanding office ecosystems and residential demand from professionals.

MPS will integrate the new holding into its existing portfolio and plans to engage with local authorities and stakeholders to progress approvals and infrastructure readiness.

No financial partners were disclosed in the announcement.

The firm indicated that timelines will depend on approvals and prevailing market conditions.

Analysts note that strategic land acquisitions at scale can help developers manage costs and timelines while preserving optionality for future projects.

MPS will now hold an enlarged land bank in the region as it pursues growth, and the acquisition underlines continued corporate appetite for measured expansion in second tier cities.

The company intends to move forward with detailed planning in the coming months.

Stakeholders will assess how the site is positioned relative to existing infrastructure and connectivity.