Economy & Market

Cement companies set to gain in coming months | Deutsche Bank

Published

10 years ago

September 22, 2016

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A recovery in demand on the back of a good monsoon this year and low capacity additions are likely to reflect in the earnings of cement companies, leading to a re-rating of shares of these firms, according to a Deutsche Bank sector note. Shares of most cement producers such as India Cements, Ambuja Cements, ACC and UltraTech Cement were trading with gains in the range of 1 to 4 per cent.
In its sectoral analysis, Deutsche Bank said that the progressive distribution of rainfall in the country augurs well for the sector in the second half of the current fiscal after a weak demand in August in the range of 2 to 4 per cent. An update by the official weather forecaster of India puts the rainfall at 95 per cent of the average for the period June 1 to September 11, 2016.
However, most players agree that rainfall across most parts of the country has been normal and this has raised hopes of a pick-up in housing demand across rural parts, Tier-2 and Tier-3 cities in the second half of this year," Chockalingam Narayanan, research analyst at Deutsche Bank, said in his note.
The second boost is expected from the pick-up in roads. "Road construction activity has remained strong, barring the normal slackness seen in the monsoon season. In this scenario, we maintain our demand growth estimate for FY17at 7 per cent – implying an ask rate of 9 per cent demand growth in 2H (October 2016 to March 2017)," he added.
The price dynamics for cement firms in India, the second-largest producer of cement in the world, is also likely to benefit from negligible capacity addition and consequently, supply.
An exception to a fairly stable capacity scenario is in eastern India, with companies such as the Emami Group, ACC, Shree Cements and UltraTech ramping up capacity.
The cement sector went through a tough time till recently on account of weak domestic demand and cheap imports from Pakistan and China

Concrete

WCA Welcomes SiloConnect as associate corporate member

Published

11 hours ago

April 13, 2026

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The World Cement Association (WCA) has announced SiloConnect as its newest associate corporate member, expanding its network of technology providers supporting digitalisation in the cement industry. SiloConnect offers smart sensor technology that provides real-time visibility of cement inventory levels at customer silos, enabling producers to monitor stock remotely and plan deliveries more efficiently. The solution helps companies move from reactive to proactive logistics, improving delivery planning, operational efficiency and safety by reducing manual inspections. The technology is already used by major cement producers such as Holcim, Cemex and Heidelberg Materials and is deployed across more than 30 countries worldwide.

Concrete

TotalEnergies and Holcim Launch Floating Solar Plant in Belgium

Published

11 hours ago

April 13, 2026

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TotalEnergies and Holcim have commissioned a floating solar power plant in Obourg, Belgium, built on a rehabilitated former chalk quarry that has been converted into a lake. The project has a generation capacity of 31 MW and produces around 30 GWh of renewable electricity annually, which will be used to power Holcim’s nearby industrial operations. The project is currently the largest floating solar installation in Europe dedicated entirely to industrial self-consumption. To ensure minimal impact on the surrounding landscape, more than 700 metres of horizontal directional drilling were used to connect the solar installation to the electrical substation. The project reflects ongoing collaboration between the two companies to support industrial decarbonisation through renewable energy solutions and innovative infrastructure development.

Concrete

Cortec® Corporation applauded for its strong safety performance

Published

11 hours ago

April 13, 2026

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Cortec® Corporation has been recognised for its strong safety performance, receiving its sixth Governor’s Workplace Safety Award for its outstanding performance in 2025. As a Silver Achievement recipient, the company continues to maintain safety metrics well above national industry averages, an impressive accomplishment for a chemical manufacturing organisation. This achievement reflects Cortec’s proactive approach to workplace safety, focused on early hazard detection and employee involvement. The company will be formally recognised at the Minnesota Safety and Health Conference in May, highlighting how industrial companies are effectively strengthening workplace safety standards.