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With capex plans delayed, cement sector could see better cash flows

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  • According to analysts, leveraged balance sheets of many cement players, who have been on an acquisition spree, should get some breather from this
  • Although recent cement dealers’ channel check is indicative of pent-demand, one is not sure whether the improvement will last

The already struggling cement industry has been hit hard by the coronavirus crisis. Management commentaries on demand revival haven’t been very encouraging. So, many cement manufacturers have delayed their capital expenditure (capex) plans.

For instance, pan-India focussed cement company the Ultratech Cements Ltd has guided for a capex of ?10 billion for fiscal year 2021 (FY21). This is lower than the ?16 billion incurred in fiscal year 2020. In a post earnings conference call with analysts, the company’s management said that it has allocated any capex spend for Dalla Super in FY21. Also, it has deferred capex for the Cuttack grinding unit to FY22.

Its peer Shree Cements Ltd will decide on its large capex plan of doubling capacities in six years, after demand conditions improve. Speaking of demand outlook, the company’s management said that it expects more than 20% volume decline in fiscal year 2021.

While ACC Ltd is expanding its capacity by 18%, the management expects commissioning to happen by calendar year 2022 – this is after factoring in a likely delay of 6-12 months due to covid-19.

Not just pan-India focussed cement companies, a slew of regional firms such as India Cements Ltd, JK Cements Ltd and Orient Cements Ltd, have also postponed their capex plans.
Choosing cash over capex
Given the gloomy demand outlook, cement companies have postponed their expansion plans

Company

Delayed projects

Ultratech Cements

Cuttack grinding unit on hold

JK Lakshmi Cements

Capacity expansion by 2-2.5million tonnes in the North on hold

Birla Corporation

Work on 1.2 million tonne Kudanganj grinding unit on hold

Orient Cements

In FY21, capex to be hold as cash presrvation key area of focus

India Cements

Capex plans in Damoh, Madhya Pradesh, will be decided later

Deccan Cements

Commencement of 6megawatt waste heat Recovery

According to analysts, leveraged balance sheets of many cement players, who have been on an acquisition spree, should get some breather from this.

"The operating cash flow generation has been strong in the recent past but the free cash flow generation has been impacted due to acquisitions and expansions. We expect the industry to focus on cash and, hence, capex would likely come off, which should support free cash flow," said a report by Jefferies on 19 June.

Although recent cement dealers’ channel check is indicative of pent-demand, one is not sure whether the improvement will last.

"Our channel checks with dealers suggest that cement prices receded in June 2020 with easing supply-side constraints. Rural and pent-up demand has led to higher-than-expected volumes in May-June 2020 and the industry could just suffer ~40% yoy decline in 1QFY21E volumes, better than earlier expectations," analysts at Kotak Institutional Equities said in a report on 24 June.

Source: From live Mint

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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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Concrete

Wonder Cement appoints Mahesh Singh as VP Corporate Brand Communication 

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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. 

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Concrete

JSW Cement commissions additional 1 MTPA grinding unit at Nagaur

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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.”

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