Cement
UltraTech Cement Q2 sales up 15% to 26.69 MT
Total sales volume in the domestic market was up 15.37 per cent to 25.66 MT during the quarter under review. It was 22.24 MT in Q2/FY23. Its grey cement production in the domestic market was at 25.24 MT in September quarter FY24, reporting 15.46 per cent growth, while its white cement production was 0.42 MT, up 10.52 per cent.
Capacity addition to limit improvement in profitability for cement makers
Analysts predict that while the recent increase in prices and lower input costs will boost the operating profit of Indian cement makers in the short term, profitability will be limited in the medium term due to capacity additions and the inability to raise prices significantly. India's cement consumption is expected to grow, leading to capacity expansion plans by major cement makers. However, this focus on retaining market share amid capacity additions will test the industry's pricing power.
Cement makers hike prices to counter rising costs
With the steep increase, the all-India average cement price has reached Rs382 per 50 kg bag. The sharpest rise was in the eastern region where the price rose to Rs400 from Rs326. Historically, the demand for cement in the September quarter is weak given due to low amount of construction activities given the monsoon period. Generally, cement firms promptly reduce prices when their sales volume is impacted due to low demand.
Infra push to drive cement demand up 10-12 pc this fiscal: Report
The Indian government's increased spending on infrastructure projects such as roads, railways, and power is expected to boost cement demand by 10-12% this fiscal year. Cement demand is projected to reach 440 million tonnes in fiscal 2024, driven by strong demand from the infrastructure sector. Combined with stable cement prices and lower power and fuel costs, cement manufacturers' operating profits are expected to rebound. The demand growth will also support the credit profiles of cement companies.
India wins bid to host international conference on cement in 2027
India has won the bid to host the International Congress on the Chemistry of Cement (ICCC) in 2027, beating out competition from the UAE and Switzerland. The conference, which reviews research progress in the cement and concrete sector, is held every four to six years and is the largest event of its kind. India's cement industry, the second-largest in the world, has a low carbon footprint and is energy efficient. The event will provide a platform for thought leaders to exchange ideas and drive progress in areas such as decarbonization and alternative energy sources.
Cement companies' green power mix likely to rise to 42 pc by FY25: Report
The cement industry is highly energy-intensive and is one of the largest consumers of coal as primary fuel -- only behind iron and steel. Electricity requirement of the cement industry has traditionally been met from the state grids, along with coal-based captive thermal plants. Additionally, cement plants use significant quantities of coal in clinkerisation-emitting greenhouse gases.
Cement prices up for the 2nd time this month in eastern India
Cement prices have been raised for the second time this month in eastern parts of India, while remaining steady in other regions. Weak monsoon rains in August helped boost demand, resulting in price increases of 3-10% earlier this month. Cement prices are now at record highs in the Kolkata region, at around Rs 410 per bag, and at a pan-India high of Rs 435 per bag in Odisha.
Dalmia Bharat's deal to buy Jaypee's cement assets hits a legal hurdle
Dalmia Bharat's acquisition of Jaiprakash Associates' cement assets for ₹5,666 crore is facing a legal hurdle due to a shareholder dispute at one of the joint-venture plants involved in the deal. The National Company Law Tribunal (NCLT) has ordered a freeze on Jaypee's shareholding in Jaypee Bhilai Cement, a joint venture between Jaiprakash Associates and Steel Authority of India Limited (SAIL).
Adani in talks with banks to refinance $3.5 billion debt taken to fund Ambuja Cements purchase
Adani Group is in discussions with banks to refinance debt taken on for the acquisition of Ambuja Cements Ltd. The total amount to be refinanced is expected to be $3.5 billion. Adani would repay at least $300 million on the original Ambuja facility. DBS Group, First Abu Dhabi Bank, Mizuho Financial Group are among the banks that would lend money.
JSW aims to be among the top 5 cement firms in India, says MD Parth Jindal
"We are slightly skewed towards institutional customers and that's where the synergy with the JSW Group really comes into play. This is because we sell our steel, cement and paint as one to our institutional customers and we have made huge inroads into that customer segment, Jindal said.
Must Watch
Birla Corp aims to double Mukutban cement plant output, boost profitability
Birla Corporation plans to double production at its Mukutban cement plant in Maharashtra and increase profitability by up to a third by the end of the year. The company aims to produce around 2.5 million tonnes of cement next year, up from the current 1.9 million tonnes. Birla Corp will focus on premium products and aims to gain a market share of 10-12% in key regions.
Birla Corporation plans to ramp up cement production to 25 mt by FY26
The cement maker is planning to meet its targeted production by increasing capacity utilisation at its Mukutban plant in Maharashtra, setting up the second clinker unit at Maihar in Madhya Pradesh and constructing new grinding units. "With the commissioning of Mukutban plant, we have virtually ring-fenced our core market of central India - which we can service seamlessly from our six plants, namely Maihar, Satna, Kundangunj, Raebareli, Chanderia, and now, Mukutban.
Shree Cement's Rs 550-crore West Bengal unit inaugurated
This is the first such unit of the company in the state, and has a capacity of 3 million metric tonne per annum (MTPA). It will create direct employment opportunities for 1,000 people. The state-of-the-art facility is strategically located to meet the surging demand for cement in West Bengal and neighbouring Jharkhand, and bolster the company's market share in eastern India, a Shree Cement Ltd official said.
Puneet Dalmia appointed as MD, CEO, Dalmia Cement (Bharat)
The Board of Directors of Dalmia Cement (Bharat) also decided to retain the services of Singhi as Director and Strategic Advisor to the MD and CEO to ensure a smooth transition and harness his talent in the transformational phase, the company said in a statement on Tuesday.
Adani Cement set to improve profitability by 45-50% in 5 years, says CEO Ajay Kapur
The Adani group - through its buyout of ACC and Ambuja Cements - is the second largest manufacturer of cement in the country. It plans to double its existing capacity to 140 million tonnes in five years with an estimated capital expenditure of ₹47,000 crore.
JK Lakshmi Cement shareholders reject proposal to increase inter corporate transaction limit to Rs 10,000 crore
Shareholders of JK Lakshmi Cement Ltd have rejected a special resolution that aimed to increase the inter corporate transaction limit to Rs 10,000 crore. The resolution received only 71.10% of the total votes, falling short of the required 75% for a special resolution. The proposal was opposed by proxy advisory firm IiAS, which argued that the increase was too high without adequate disclosure.
