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Prices fall, outlook not too optimistic

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The steep demand growth in the first half FY19 has increased optimism in the industry earlier, which seems to be tapering after the latest round of fall in prices.

Cement prices, which rose by about 6 per cent over September and October 2018, have seen a downward trend again in December, close on the heels of remaining neutral in November 2018. After remaining neutral at 2054.7 pints in November at the lifetime peak, ET Cement Index that tracks cement price movements in different regions, has witnessed a fall of 2.61 per cent to 2001.05 in December 2018. The industry veterans exuded hope in November that the high growth trend witnessed in cement demand in the first half of FY19 would continue in the second half, imparting the much needed pricing power to the industry. But somehow that is not to be. In the first half of FY 2019, the demand growth was at around 13 per cent, unheard of since 2010.

The cement industry, which remained subdued for four years, picked up pace in the third quarter of FY19, driven largely by government initiatives such as Bharatmala, Housing for All, Swacch Bharat Abhiyaan, Sagarmala and metro construction, according to Cement Manufacturers Association (CMA). The focus on infrastructure has pushed up volume growth of the cement sector from 4 per cent to 12 per cent between September 2017 and September 2018.

Though some cement majors with pan-India presence are said to be pushing volumes to meet year-end targets, rising cost of inputs have continued to put pressure on the industry bottom lines, leading to certain stock market players downgrading the cement sector.

In a recent report, leading brokerage Morgan Stanley has downgraded the sector, stating that upside for cement prices is capped in the second half of FY19 (2018-19) mainly due to demand risk in the real estate segment because of potential funding challenges.

While raising the sectors FY19 demand growth estimate to 9 per cent from 7.5 per cent earlier, Morgan Stanley hints at a downside risk in the urban/semi-urban real estate segment, but felt that the infrastructure-led demand should be sustained. It also sees a potential demand moderation in second half of FY 2019. It expects the industrys capacity utilisation to rise a modest 1 per cent YoY in FY20 to 79 per cent (for the companies it covered).

Mahendra Singhi, president of the CMA, exuded hope that the cement demand will grow about 8 per cent in FY19 and that he was positive on the long term (five-year) outlook for growth of the industry.

Taking cue from the general optimistic trend in demand growth in the first half of FY19, many cement manufacturers have announced expansion plans in the last two months. Singhi expects that around 20-25 million tonnes (MT) of fresh capacity to be added in FY19 and FY20 each.

With the average capacity utilisation of the industry still low at 70 per cent, expansion of capacities without commensurate growth in demand could impact the pricing power of the industry in the medium term.

Prices fell for the fifth month in a row in the south. On an average, cement prices declined by Rs 5 per bag this month in the region, continuing the decline that started in August, a dealer said. Demand remained lukewarm in northern, central and western India regions too with producers from south pushing their products to other regions.

In the northern region, there is another reason for slowdown – most of the construction workers move back to their villages in December for harvesting seasonal crops. However, there is an expectation that the cement prices will inch up in the region from January 2019, when the construction workers return and activity resumes.

The only event that could change the trend towards positive for the industry is reduction of Goods and Services Tax (GST) from 28 per cent to 18 per cent, which the industry has been demanding for quite sometime.

However, the demand did not materialise in GST rate reductions on several goods announced in December 2018, that have come into effect from January 1, 2019. Cement being one of the top tax grosser for the government, including the state governments, they are said to be against the move.

Analysing the impact of reduction in GST on cement as expected by the industry, Vaibhav Agarwal of PhilipCapital said that it will be a overall positive for the industrys growth and pricing power. Cost of construction will come down resulting in more affordable real estate prices, leading to improved demand for real estate and housing?segment, albeit in the long term.

It will also provide some breather to the industry by increasing their pricing power, so that they can cover the rising logistics and input costs, in the medium term. And even it may improve transparency in the distribution channels, imparting some stability to prices, Agrawal feels.

But by when the reduction in GST for cement will happen, still remains a million dollar question

– B.S. SRINIVASALU REDDY

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Concrete

Building a Greener Future Together

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Environmental sustainability requires immediate action, not just long-term commitments and discussions. Recycling, circular economy practices, and technology-driven waste management can help industries reduce environmental impact while supporting sustainable growth.

Author: Jignesh Kundaria, Director and CEO, Fornnax Technology

World Environment Day serves as an important reminder that environmental sustainability can no longer remain confined to discussions, reports, or long-term commitments. The environmental challenges facing the world today demand immediate, measurable, and collective action. Across industries and communities, waste generation continues to outpace our ability to process it responsibly, placing increasing pressure on ecosystems, natural resources, public health, and the well-being of future generations.

One of the most significant shifts required today is a change in how society perceives waste. Rather than being viewed as a material to be discarded, waste must be recognised as a valuable resource that can contribute to both economic growth and environmental protection when managed through the right technologies and systems. This mindset forms the foundation of the circular economy model that countries across the world are increasingly adopting to reduce landfill dependence, recover valuable materials, and create more sustainable industrial ecosystems.

India has made meaningful progress in strengthening awareness around sustainability, recycling, and environmental responsibility over the past decade. Significant efforts are being made to formalise the recycling sector through improved infrastructure, technology adoption, policy implementation, and broader stakeholder participation. These developments are creating a stronger foundation for responsible waste management and resource recovery across the country.

However, achieving long-term environmental impact requires collaboration from all stakeholders. Industries, policymakers, technology providers, and communities must work together with greater accountability to strengthen recycling ecosystems, encourage responsible waste management practices, and create sustainable outcomes through consistent execution rather than temporary interventions.

As someone closely associated with the recycling industry, I firmly believe that technology will play a decisive role in addressing future environmental challenges. Advanced recycling systems have the potential to recover valuable resources, reduce pollution, minimise landfill burdens, and conserve energy, creating a more sustainable future for generations to come. This belief is deeply reflected in Fornnax’s motto, “Committed to Create a Green Future,” which embodies our commitment to building long-term environmental value through innovation and responsible action.

At the same time, technology alone cannot deliver meaningful change. Real progress requires intent, awareness, participation, and a shared sense of responsibility. Sustainable development can only be achieved when innovation is supported by collective action and a genuine commitment to environmental stewardship.

On this World Environment Day, let us move beyond conversations and take meaningful steps towards creating a cleaner, greener, and more sustainable planet. By embracing innovation, strengthening recycling ecosystems, and acting responsibly today, we can create lasting environmental impact and secure a better future for generations to come.

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Concrete

Dalmia Bharat Acquires Jaiprakash Associates Cement Assets for ₹2,850 Crore

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Dalmia Cement executed a Business Transfer Agreement with Jaiprakash Associates and Adani Infra, to acquire 5.2 MnTPA of cement capacity across Madhya Pradesh and Uttar Pradesh.

Dalmia Cement (Bharat) announced on May 22, 2026 that it had signed a Business Transfer Agreement with Jaiprakash Associates Limited and Adani Infra (India) Limited for the acquisition of cement plants located at Rewa in Madhya Pradesh and Churk, Chunar and Sadwa in Uttar Pradesh. The deal was struck at an enterprise value of ₹2,850 crore and is expected to close within two weeks of execution.

The acquired assets from Jaiprakash Associates include 5.2 MnTPA of cement capacity and 3.3 MnTPA of clinker capacity. The package also covers 99 MW of thermal power capacity and railway sidings at Rewa, Chunar, and a common siding at Churk. This infrastructure gives the acquisition immediate operational utility beyond just production tonnage.

The transaction has a long backstory. Dalmia Cement had originally entered into a framework agreement with Jaiprakash Associates in December 2022, covering the sale of these business assets along with a long-term clinker supply arrangement. However, before the deal could be completed, Jaiprakash Associates was admitted to insolvency proceedings under the Insolvency and Bankruptcy Code. The earlier agreements could not be consummated as a result.

In an official statement, Puneet Dalmia, Managing Director & CEO, Dalmia Bharat, said, “I am very excited about addition of these assets in our portfolio. This serves as a great strategic fit for Dalmia. It helps us move forward in our journey to be a pan India player and provide a strong head start to serve the high potential markets in Central region. I am optimistic that the expansion potential of these assets along with close proximity with Dalmia’s captive mines will help us create a capacity hub for the future”.

Following the approval of Adani Group’s resolution plan for Jaiprakash Associates under the IBC framework, Dalmia approached the new management to revive discussions. The fresh Business Transfer Agreement was executed to settle all pending disputes, legal proceedings, and arbitration matters arising from the original framework agreement with Jaiprakash Associates.

Expanding market reach

Dalmia added, “Our familiarity with these assets under the earlier tolling arrangement gives us a deep understanding of the facilities and helps us establish strong connect with channel partners and vendors. We believe that this will help us in faster ramp up of capacities and quicker inroads into the market. As we look forward, I am very confident that we will be able to leverage the strengths of Dalmia to operate these assets in a manner where we can maximise value creation for all our stakeholders.”

With the addition of these plants, Dalmia Bharat’s total installed cement capacity will rise to 54.7 MnTPA upon consummation. The company has further expansion projects underway at Belgaum, Pune, and Kadapa, which are expected to take overall capacity to 66.7 MnTPA by Q2 to Q3 FY28.

The Central India location of the Jaiprakash Associates plants gives Dalmia Bharat faster access to markets in Madhya Pradesh and Uttar Pradesh than a greenfield build would have allowed. The company also cited debottlenecking and brownfield expansion as near-term opportunities at the acquired sites. Dalmia Bharat said the assets were expected to contribute positively to EBITDA and overall returns, given the pricing environment in the region and the company’s cost structure.

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Concrete

PROMECON introduces infrared-based tertiary air measurement system for cement kilns

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The new solution promisescontinuous, real-time tertiary air flow measurement in cement plant operations.

PROMECON GmbH has launched the McON IR Compact, an infrared-based measuring system designed to deliver continuous, real-time tertiary air flow measurement in cement plant operations. The system addresses the longstanding process control challenge of accurate tertiary air monitoring under extreme kiln conditions. It uses patented infrared time-of-flight measurement technology that operates without calibration or maintenance intervention.

Precise tertiary air measurement is a critical requirement for stable rotary kiln operation. The McON IR Compact is engineered to function reliably at temperatures up to 1,200°C and in the presence of abrasive clinker dust. Its vector-based digital measurement architecture ensures that readings remain unaffected by swirl, dust deposits or drift. Due to these conditions conventional measurement systems in pyroprocess environments are often compromised.

The system is fully non-intrusive and requires no K-factors, recalibration or periodic readjustment, enabling years of uninterrupted operation. This design directly supports plant availability and reduces the maintenance overhead typically associated with process instrumentation in high-temperature zones.

PROMECON has deployed the McON IR Compact at multiple cement facilities, including Warta Cement in Poland. Plant operators report that the system has aided in identifying blockages, optimising purging cycles for gas burners, and supplying accurate flow data for AI-based process optimisation programmes. The practical outcomes include more stable kiln operation, improved process control, and earlier detection of process disturbances.

On the energy side, real-time tertiary air data enables reduction in induced draft fan load and helps flatten process oscillations across the pyroprocess. This translates to lower fuel and energy consumption, fewer unplanned shutdowns, and a measurable reduction in NOx peaks. This directly reflects on the downstream cost implications for plants operating SCR or SNCR systems for emissions compliance.

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