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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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Economy & Market

Leonard Unveils Dual-Head Robotic Arm for Hazardous Industrial Demolition

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 Leonard unveils Descender Duo, a dual-head robotic demolition arm designed to improve industrial safety and reduce shutdown time by up to 50 per cent.

Industrial robotics and refractory services specialist Leonard has launched Descender Duo, a dual-head robotic demolition arm designed to improve safety, accelerate maintenance and reduce shutdown times in hazardous industrial environments. The system made its debut at Lisahally Power Station in Northern Ireland, removing 25 tonnes of slag material within hours.

Developed for the cement, metals, waste-to-energy and petrochemical industries, Descender Duo enables remote-controlled refractory demolition, anchor cutting and welding, and refractory spraying inside boilers, calciners and silos. Its vertical-access design eliminates the need for personnel to enter confined, high-risk spaces during these operations.

Weighing less than two tonnes, the pre-assembled system requires an access opening of just 1.2 m². Supported by an external overhead hoist, it uses electrically operated hydraulic stabilising legs to secure itself inside vessels. The robotic arm offers 360-degree rotation and is suited to vessels approximately 9 m in diameter, with its operating reach extendable through strategically positioned access points.

Equipped with two independently controlled robotic heads, Descender Duo can perform identical or different tasks simultaneously, including refractory demolition, anchor cutting and spraying. Its remote-control system incorporates live camera feeds, allowing operators to monitor operations without entering hazardous environments.

According to Leonard, the technology can deliver time savings of up to 50 per cent compared with manual methods. Its ability to operate at temperatures exceeding 100°C allows maintenance to begin as early as 24 hours after burner shutdown. An all-electric power supply further supports cleaner and more cost-efficient operations.

First Deployment Demonstrates Shutdown Efficiency

The system was first deployed at Burmeister & Wain Scandinavian Contractor’s (BWSC) Lisahally Power Station in Londonderry, Northern Ireland. The facility generates electricity from grade C waste wood, supplying approximately 40,000 homes and businesses.

Leonard and BWSC collaborated to develop a customised solution for the plant’s 26-metre furnace, where extensive external pipework created significant access challenges.

Mark Leonard, Managing Director, Leonard, said, “It required new thinking and rather than step away from the problem we were committed to solving it for the customer, with the customer. We’re relentless in our approach to tackling complex challenges, head-on. We took our years of cement plant experience, coupled with our working knowledge of the BWSC plant, and designed, engineered and tested a completely new vertical solution within just seven weeks from that initial conversation with the customer. That solution was the Descender Duo as we know it today.”

Traditionally, the furnace required a cooling period of up to 36 hours before preparatory work could begin, followed by manual slag removal using rope-access personnel. With Descender Duo, work commenced just 24 hours after shutdown, reducing downtime by up to one day.

The deployment removed 25 tonnes of slag within hours, eliminated the need for at least six workers to enter the hazardous furnace interior and saved 26 hours in the shutdown programme.

“The effectiveness exceeded expectation,” said Martin Doran, Plant Manager at Lisahally Power Station.

“When the Descender Duo concept was first discussed, we had to spend some time with the team from Leonard looking at how it was going to be moved into the furnace. Every site is different and that presented its own challenges, but nothing that the team couldn’t overcome. Once it was installed we were hugely impressed by its efficiency.”

Expanding Industrial Robotics Applications

Descender Duo joins Leonard’s existing portfolio of robotic maintenance solutions, including the Axis horizontal-access arm, Nano confined-space access arm, Charger cement mill media recharging system and Calibre cement mill media grading system.

Headquartered in Northern Ireland, Leonard provides robotic refractory demolition, installation, inspection and industrial maintenance services across the cement, metals, energy, biomass, glass and civil engineering sectors.

Formerly known as G Leonard, the company has more than 35 years of industry experience and operates across Europe, North America, the Middle East, Africa and Asia-Pacific.

The latest innovation reinforces Leonard’s focus on replacing hazardous manual processes with robotic systems that improve workforce safety, enhance operational efficiency and minimise industrial downtime.

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Concrete

Martin Engineering Appoints Ashwini Khunte as India General Manager

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Martin Engineering names Ashwini Khunte India General Manager to strengthen operations and drive growth across key bulk material handling sectors.

Pune

Martin Engineering, a global provider of bulk material handling solutions, has appointed Ashwini Khunte as General Manager of its India business, strengthening its leadership as the company expands its presence across the country’s cement, mining, steel, power and infrastructure sectors.

Khunte brings more than a decade of experience with Martin Engineering, having joined its Indian operations in 2013 as a Design Engineer, shortly after the company established its presence in the country in 2012.

A mechanical engineer by qualification, she spent her initial five years developing bulk material handling solutions in collaboration with the company’s operations team. During this period, she gained extensive experience addressing operational challenges in the steel, cement and coal industries. She subsequently moved into project engineering, managing major engineering, procurement and construction (EPC) and original equipment manufacturer (OEM) projects from initial enquiry to commissioning. Her responsibilities later expanded to overseeing Martin Engineering’s conveyor product portfolio in India, involving customer engagement, technical presentations and site visits across heavy industries.

In 2024, Khunte was promoted to Head of Sales & Marketing for the company’s Europe, Middle East, Africa and India (EMEAI) region. The position broadened her international market exposure and strengthened her strategic and commercial leadership capabilities.

Commenting on her appointment, Ashwini Khunte, General Manager, Martin Engineering India, said: “India represents a tremendous opportunity for Martin Engineering. The country’s continued investment in cement, mining, steel, power and infrastructure is creating increasing demand for safer, cleaner and more productive bulk material handling, and that’s exactly what we do. My priority will be to build on the strong foundations already established in India, while continuing to develop our people, strengthen customer relationships and bring practical solutions to the challenges faced by our industry.”

Robert Whetstone, Area Vice President – EMEAI, Martin Engineering, highlighted Khunte’s technical expertise, market understanding and leadership experience.

“Ashwini brings an exceptional combination of technical understanding, customer knowledge and commercial leadership. She has grown as Martin Engineering has grown, and has consistently demonstrated outstanding capability to transform her expertise into practical solutions. Her knowledge of the Indian market, together with her international experience, makes her ideally suited to lead our India business through its next stage of growth for years to come.”

Since establishing its Indian business in 2012, Martin Engineering has expanded its local workforce, manufacturing capabilities and dealership network. The company supplies conveyor products, transfer point solutions, material flow aids, training and technical support to bulk material handling industries. Khunte’s appointment positions the company to further strengthen customer relationships and expand its solutions portfolio in India’s growing industrial and infrastructure markets.

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Concrete

Fornnax Wins AIRIA’s Special Export Award for Rubber Machinery in 2025-26

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Fornnax Technology Pvt. Ltd. has been honoured with the Special Export Award – Rubber Machinery for 2025–26 by the All-India Rubber Industries Association (AIRIA), in recognition of its highest exports of tyre recycling plants to the European region.

With more than a decade of experience in India’s tyre recycling industry, Fornnax has contributed to the development of advanced recycling technologies and infrastructure. The company currently holds a 90% market share in India’s domestic tyre recycling sector, while exports account for 30% of its business, spanning markets such as Europe, Australia and the GCC.

The award marks another milestone for Fornnax, whose tyre recycling lines and advanced shredding technologies are supporting the growth of the circular economy in India and international markets.

Commenting on the recognition, Mr. Jignesh Kundaria, Founder and Director of Fornnax, said:

“This honour from AIRIA is a reflection of an incredible journey we have undertaken over the years. When we started Fornnax, there was no established recycling industry in India to follow. We chose to build for the future instead. Today, when you see India’s tyre recycling sector, it has already transformed into a dynamic, high-growth industry and we are extremely proud to have played our part in building it.”

Unlike standalone equipment suppliers, Fornnax focuses on developing complete, high-capacity recycling infrastructure. Its integrated systems combine multiple stages of shredding and size reduction to enable efficient, continuous operations. This system-level engineering approach helps recycling operators improve throughput, equipment reliability and operational consistency.

The recognition reinforces Fornnax’s commitment to developing engineering technologies that contribute to a more efficient and circular recycling ecosystem.

Looking ahead, the company aims to expand its international presence while continuing to develop advanced shredding and recycling solutions to address the growing volumes and evolving requirements of the global recycling industry.

For more information, visit: www.fornnax.com

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