Cement Industry

Cement makers may end H1FY25 with higher raw material costs, weak pricing

In a judgement passed in August, the Supreme Court upheld states' authority to impose additional taxes on minerals, including limestone, with effect from April 2005

Tamil Nadu-based Ramco Cements ups grinding capacity by nearly one MTPA

Tamil Nadu-based Ramco Cements on Friday said it has increased its cement grinding capacity by nearly one million tonnes per annum (MTPA). The company has carried out debottlenecking of cement grinding capacity at its Kalavatala Plant in Andhra Pradesh, resulting in an increase of capacity from 1.5 MTPA to 2 MTPA. In addition, at its Valapady Grinding Unit, in Salem District, Tamil Nadu, it has carried out debottlenecking of cement grinding capacity leading to increase of capacity from 1.6 MTPA to 2 MTPA. "The company's total cement grinding capacity has increased by 0.9 MTPA, from 23.14 MTPA to 24.04 MTPA with an aggregate investment of Rs 58 crore," according to a regulatory filing by the company. It has received consent to operate from the competent authorities for the increase in capacities. Ramco Cements revenue for the financial year ended on March 31, 2024 was at Rs 9,349.83 crore. The company operates five integrated cement units and six grinding units.

Cement dealer network expansion slows down as non-trade demand rises

Three of the top-five cement makers saw their dealer count fall in FY24

Cement sector to face further consolidation in near-to-medium term: Report

The Indian cement industry, which is witnessing aggressive acquisitions by two of its leading players - Adani group's Ambuja Cement and Aditya Birla's UltraTech, will have further consolidation in the near-to-medium term, according to a report. In the report, rating agency Ind-Ra said that the aggressive medium-term capacity targets of leading players are unlikely to be fully achieved organically and the industry is likely to witness an increase in the competitive intensity. This will also lead to some pricing pressure due to which the gap between leading and small players could continue to widen given the wider presence and better cost efficiencies for large players, India Ratings and Research (Ind-Ra) said. "Ind-Ra expects the cement sector to witness further consolidation in the near-to-medium term, given the aggressive medium-term capacity targets of leading players that are unlikely to be fully achieved organically," the report said. The rating agency said it also expects dema

Street positive on cement stocks despite pricing pressures, demand woes

Many analysts still remain positive about the sector's prospects, but most cement stocks have seen corrections in the last three months

UltraTech Cement raises $500 mn through sustainability-linked loans

The company added that the transaction marks the second sustainability-linked financing raised by UltraTech, following its inaugural sustainability-linked bond issuance in 2021

Cement sector to invest Rs 1.25 trillion as capex by FY27: CRISIL

The agency said an analysis of 20 cement makers, accounting for over 80 per cent of the industry's installed cement grinding capacity as of March, indicates the stated capex combined

Building materials business expected to log significant growth: Birla

Aditya Birla Group Chairman Kumar Mangalam Birla on Tuesday said the conglomerate's building materials business is expected to see significant growth over the next several years with cement and decorative paints poised to be a key segment on the back of housing and infrastructure boom in India. Moreover, the outlook of the Indian economy remains "positive" supported by strengthening of macroeconomic fundamentals, a robust financial and corporate sector, and a resilient external sector. The government's continued thrust on capex while pursuing fiscal consolidation, and consumer and business optimism augur well for investment and consumption demand, he said. Birla was addressing the AGM of the group's holding firm Grasim, which controls the group's flagship firms including UltraTech, Aditya Birla Finance and other investments in textiles, chemicals and paints. Grasim has invested Rs 50,000 crore in capex over the past five years, of which 77 per cent is dedicated to growth initiative

Ambuja-ACC plans to set up Rs 1,000 crore offices in Ahmedabad, Delhi

Part of the capex, company executives informed, will be Rs 600-700 crore for a cement house in Ahmedabad

Cement players on growth path despite weak demand, pricing pressure

Ambuja reports lower volume growth in East, South; Shree Cement losing in North

India Cements posts consolidated net profit of Rs 58.5 crore in Q1

Capacity utilisation for the company was adversely affected due to the free fall in cement prices, resulting in a suboptimal operating performance for the quarter

Shree Cement Q1FY25 results: Net profit down 51.3% at Rs 278.45 cr

Bangur family promoted Shree Cement Ltd on Tuesday reported a decline of 51.31 per cent in its consolidated net profit to Rs 278.45 crore for the first quarter ended June 2024. The company had posted a net profit of Rs 571.94 crore in the April-June period a year ago, according to a regulatory filing from Shree Cement Ltd (SCL). However, its revenue from operations was up 1.73 per cent to Rs 5,123.96 crore during the quarter under review, as against Rs 5,036.65 crore in the corresponding period of the preceding fiscal. Total expenses of SCL increased 10.05 per cent to Rs 4,957.24 crore in the June quarter. SCL's total income rose 1.12 per cent to Rs 5,263.09 crore in the June quarter. Shree Cement is the third largest cement-making firm, owning brands such as Roofon, Bangur Power, Shree Jung Rodhak, Bangur Cement and Rockstrong. Shares of Shree Cement Ltd on Tuesday were trading at Rs 519.60 apiece on BSE, up 1.82 per cent from the previous close.

Rise in construction activities to propel cement demand by 7-8%: UltraTech

Demand for cement is projected to grow 7-8 per cent in the current financial year, helped by an increase in construction activities throughout the country, UltraTech Cement said in its latest annual report. To meet this increased demand, the cement industry is expected to add 35 - 40 million tonne capacity in the next fiscal, with 60-65 per cent concentrated in the eastern and southern regions, said the Aditya Birla group flagship firm. Besides, this demand surge will translate into an increase in capacity utilisation of the industry to 72 per cent in FY25, which was around 68 per cent in FY23. "In FY 2024-25, cement demand is projected to grow 7-8 per cent driven by an increase in construction activities throughout the country, spread across the infrastructure and housing sector," said UltraTech. There has been a "concerted focus" on the integrated and coordinated planning and implementation of infrastructure projects, adhering to the principles of PM Gati Shakti. Priority has be

JK Lakshmi Cement Q1 results: PAT doubles to Rs 156 cr on lower expenses

India's general elections, and an extreme summer season spanning the April-June period, restricted construction activities and hit sales volumes for cement makers

M&A wave set to wash over South cement market, say industry experts

UltraTech's buy is latest in four deals southern market has seen in less than a year, with Adani Cement being the other buyer. These deals combined, industry experts say, could spur consolidation

High cost, price war led to sale of India Cements: Srinivasan to staff

"I am going to leave India Cements," he declared. "The reason is that our competitors can crush us with lower prices. With slightly higher cost of productions, we had taken all steps to reduce costs."

ACC Q1 FY25 results: Net profit down 22.5% at Rs 361 crore; stock falls

Cement maker ACC Ltd on Monday reported a decline of 22.46 per cent in its net profit to Rs 361.40 crore in the first quarter ended on June 2024. The company had posted a profit of Rs 466.14 crore in the April-June quarter a year ago, according to a regulatory filing from ACC, now a part of Adani Cement. Its revenue from operations was marginally lower at Rs 5,154.89 crore during the quarter under review. It was Rs 5,201.11 crore in the corresponding period a year ago. ACC's sales volume from Cement & Clinker in the April-June quarter was up 9 per cent at 10.2 million tonnes, which is the "highest ever volume" in Q1 over the last five years, according to an earning statement by the company. The volume growth was "supported by an increase in premium products and improvement in efficiency parameters, ensuring market leadership". Total expenses of ACC rose 1.84 per cent in the June 2024 quarter to Rs 4,741.27 crore. Its Kiln fuel cost improved, helped by change of fuel basket and ..

Billionaire battle heats up as Adani challenges Birla in cement space

The clash of titans is likely to intensify as the deep-pocketed tycoons seek to dominate supplies of a building material that is critical to sustaining India's infrastructure boom

Dip in sales realisation mutes UltraTech net profit at Rs 1,696 crore

Profit before interest, depreciation and tax, the company said, was at Rs 3,205 crore compared to Rs 3223 crore a year ago

Adani Group announces merger, ownership restructuring for its cement assets

As part of the scheme, Adani Cementation will be merged with Ambuja, while Adani Cement Industries will become a wholly-owned subsidiary of Ambuja Cements