Economy & Market

Monsoon Forecast Augurs Well for Rural Demand

Published

8 years ago

May 31, 2018

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The Indian Meteorological Department’s (IMD) second-stage forecast of ‘normal’ South-West monsoon (June-September 2018), augurs well for cement demand in rural areas. IMD has retained the forecast a normal monsoon at 97 per cent of long term average (LTA) for 2018 season retaining its first-stage forecast released in April 2018. India has seen a 95 per cent actual rainfall last year. Monsoon of between 96-104 per cent of LTA is considered to be normal. The forecast has a model error of 4 per cent on both sides.
If this forecast plays out as predicted, then FY19 (2018-19) will see the third consecutive year of normal monsoon bolstering agricultural income and boosting demand for cement for rural housing.
In the short run, rainfall is likely to be 101 per cent in July and 94 per cent in August, indicating good distribution for sowing and marginally below normal rainfall during harvesting. Geographically, both the critical regions-Central India and South Peninsula (due to high rain dependency)-are expected to receive normal rainfall, according to the forecast.
"Normal monsoon forecast is welcome for the agriculture sector, especially when international food prices are also stablising after persistent decline since mid-2014. This combination of normal monsoon with stabilising international prices at the margin should be supportive of farm incomes," says Kapil Gupta, analyst from Edelweiss Securities.

Distribution favourable
The spatial distribution is important as it determines the availability of water for specific crops. Crops such as cotton, oilseeds and pulses in particular are dependent on monsoon in peninsular India covering states like Maharashtra, Telengana, Andhra Pradesh, Tamil Nadu and Karnataka. Madhya Pradesh too is dependent on the SouthWest monsoon.
Spatially, rainfall is likely to be well distributed, although temporally rainfall is likely to be marginally below normal in August, which is not much of a concern. Central India and South Peninsula are expected to receive good rainfall at 99 per cent and 95 per cent of LTA, respectively. "This is critical because both the regions are heavily rain dependent and grow oilseeds, pulses, etc., of which India is a net importer," says Gupta.
"The July and August forecast means sowing and harvesting will by and large progress timely. From the inflation perspective as well, normal spatial and reasonable temporal rainfall distribution should result in benign food inflation," Gupta adds. Good tidings
The forecast indicates good tidings for the kharif crop. The kharif crop accounts for about 50 per cent of farm production while around 65 per cent of the production is rain dependent. The northern states have access to irrigation and hence crops like rice are well protected to an extent.
"For FY19, our base case, given a normal monsoon, is that agricultural growth will be 3 per cent – the same as in the previous fiscal. As for GDP growth during the fiscal, CRISIL’s forecast is at 7.5 per cent, up from 6.6 per cent in fiscal 2018," rating agency CRISIL said in April 2018, following the first IMD forecast.
A normal monsoon is crucial to push economic growth, which slowed last year under the lingering impact of demonetisation and disruptions due to implementation of the goods and services tax (GST), both of which impacted private consumption demand as well as exports.Normal monsoon generally heralds good
times for farmers and accelerates activity in rural economy, increasing demand for all agriculture related inputs and equipment, besides boosting demand for rural housing. But it cannot be taken for granted as the whole activity is nuanced by several interventions.
In this context, what CARE Ratings highlights these nuances when it said, "Rainfall per se is important, but in the last two years good monsoon has led to high production while prices have come down sharply affecting farm incomes. This has to be supplemented with effective MSPs which include ensuring availability of this price to the farmers."– BS SRINIVASALU REDDY

Concrete

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

Published

4 days ago

October 19, 2026

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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

Concrete

Wonder Cement appoints Mahesh Singh as VP Corporate Brand Communication

Published

2 weeks 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

2 weeks 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.”