Cement Industry

Cement industry eyes 8% growth in 2025 on infra boost, higher margins

The Indian cement industry, witnessing a consolidation and heightened rivalry between two corporate houses snapping smaller players, pins its hope on 2025 for an improvement in sales realisation, higher margins and acceleration in demand, expecting around 8 per cent sales growth helped by an increased government spendings on big-ticket infra projects. Over 50 MTPA (million tonnes per annum) capacity are being acquired for USD 4.5 billion by two leading players - Aditya Birla group firm UltraTech Cement and billionaire Gautam Adani-led Ambuja Cements, besides organic expansion of the existing units as they have kept their war chest ready prowling for opportunities. The industry faced challenges on numerous fronts in 2024, right from moderate capacity utilisation to lower sales realisation, which impacted the topline of several makers, contraction of margins and slower volume growth. However, 2024 would also be known for big-ticket acquisitions by UltraTech and Adani Cement to ...

Ambuja Cements to merge Sanghi Industries, Penna Cement with self

The Adani Group-promoted firm had acquired SIL and PCIL in 2023 and 2024 respectively

Ambuja Cements commissions 200 MW solar power project in Gujarat

Ambuja Cements, part of Adani Group firm, on Friday announced the commissioning of a 200 MW solar power project in Khavda, Gujarat, to supply green power to 20 cement plants. The Khavda project is part of Adani Cements' plan to have 1 GW of renewable power from solar and wind projects, along with 376 MW from WHRS (Waste Heat Recovery Systems). "The balance 806 MW capacity from this project is at various stages of commissioning and expected to start transmitting in phases between March 2025 and June 2025," said a statement. Of the remaining 806 MW capacity from this project, 156 MW of wind power from Khavda and a further 300 MW of solar power from Rajasthan are expected to be commissioned by March 2025 in phases. The balance of 350 MW of solar power is expected to be commissioned by June 2025. This will "positively impact the company's EBITDA" as this development leads to an impressive 70 per cent savings compared to current power cost, it added. The company is spending around Rs

Ultratech to Shriram Cement: Price hikes key trigger for cement majors

Ultratech Cement saw volumes up 3 per cent, while Shriram Cement was the top volume gainer at 9 per cent, with Dalmia Bharat up 8 per cent

Holcim to sell Lafarge Africa stake to Huaxin Cement in $1 billion deal

The transaction is expected to close in 2025, subject to regulatory approvals, Holcim's statement said

Icra revises down growth forecast for cement industry to 4-5% for FY25

Rating agency Icra has revised down its volume growth forecast for the cement industry to 4-5 per cent at 445-450 million tonne for the current fiscal on account of sluggish construction activity. In July this year, Icra had forecast a year-on-year volume growth of 7-8 per cent, expecting a better pick-up in demand in the second half. However, Icra has now revised its projection "on account of slower-than-expected ramp-up in construction activity across the housing and infrastructure sectors, post the General Elections," a statement said. Besides, on a YoY basis, the operating profit margins declined by 375 basis points to 12 per cent in Q2 FY2025 and by 192 bps to 14 per cent in H1 FY2025 as prices remained under pressure due to muted demand and oversupply. In the first half of FY25 all-India cement volumes witnessed a muted rise of 2 per cent YoY to 212 million tonne on account of the slowdown in construction activity in Q1 during the elections, followed by the ample monsoon ...

Ramco Cements rallies 7%, hits 9-month high on hopes of healthy H2 outlook

After a muted H1FY25, analysts expect that operational performance would improve in H2FY25 led by demand pick-up in south/east region & improvement in prices and continuous operational efficiencies.

Shree Cement Q2FY25 results: Net profit declines 83% to Rs 76.44 crore

Shree Cement maintained its capital expenditure (capex) target to expand capacity to 80 million tonnes per annum

Low demand, intense competition in Q2: Top cement cos grow, others tumble

UltraTech, Dalmia, and Ambuja Cements are the only companies that reported growth in volumes compared to a year ago

Increased pace of capex will help achieve targeted growth: Adani Cement CEO

The pace of capex (capital expenditure) has increased, which will help Adani Cement "achieve targeted growth ahead of time", said Adani Group Cement Business CEO Ajay Kapur in an investors' call on Monday. The Adani group, which had last week announced the acquisition of Orient Cement, aims to have a manufacturing capacity of 140 million tonnes per annum (MTPA) by FY28. "Adani Cement will benefit from accelerated growth, lower costs and good synergies, all of which will contribute to leading the market and achieving sustainable performance in the near future. The pace of capex has increased, which will help to achieve targeted growth ahead of time," said Kapur. Ambuja Cement, part of Adani Group, which houses all cement assets, is a debt-free company and as of September 2024, cash and cash equivalent for the company was at Rs 10,135 crore, said Kapur. "During H1, approximately Rs 14,700 crore has been utilised, out of which Rs 12,350 crore has been spent on organic and inorganic ..

HeidelbergCement India Q2 results: Net profit down 68.7% to Rs 11.2 crore

HeidelbergCement India Ltd on Monday reported a 68.68 per cent decline in net profit to Rs 11.21 crore for the second quarter ended September 2024. The company had reported a net profit of Rs 35.8 crore in the July-September quarter period a year ago, HeidelbergCement India said in a regulatory filing. Its revenue from operations was down 18.54 per cent to Rs 461.41 crore during the second quarter of the ongoing fiscal year from Rs 566.46 crore a year ago. HeidelbergCement "revenue decreased by 18.5 per cent y/y driven by 15 per cent decrease in volume and decrease in price 4 per cent", the company said in its earning statement. Moreover, "driven by decrease in volume and prices, the company's EBITDA per tonne decreased to Rs 380, a decrease of 36 per cent y/y," it added. HeidelbergCement India's total expenses in the September quarter were at Rs 458.95 crore, down 13.8 per cent. Total income of HeidelbergCement, including other income, was also down 18.34 per cent in the Septemb

Ambuja Cements rivals UltraTech in limestone reserves via acquisitions

Gap in the two competitors' reserves is narrower than that in manufacturing capacities

Dalmia Cement to set up a new Rs 3k cr plant in MP, says group MD at RIC

Will be the first cement plant in the country to run entirely on renewable energy

Birla Corporation Q2 results: Firm reports net loss of Rs 25.19 crore

The company attributed the loss to sluggish cement demand during the traditionally weak monsoon quarter, with prices plummeting to record lows in all key markets

Cement companies' valuation hits new peaks despite weak earnings

A continued slowdown in revenue growth and the recent contraction in profit have created an imbalance between cement companies' earnings fundamentals and market capitalisation

Naveen Jindal group to invest Rs 2,160 crore to scale up cement production

Company will set up grinding unit in Odisha's Angul to help plans for expansion

Key deals in India's cement sector since Adani Group's entry in 2022

A company tribunal approved Sagar Cements' $9.20 billion bid to take over Jaypee Group-owned Andhra Cements

Cement industries growth to slow down to 7-8% to 475 MT in FY25: CRISIL

The cement industry is expected to record slower growth of 7 to 8 per cent to 475 million tonnes this fiscal, impacted by lower growth in the first half after registering a double-digit growth from the last two financial years, according to a Crisil report. The cement demand grew only 3 per cent in the June first quarter of FY2024-25, owing to an extended heatwave and shortage of labour during general elections and is estimated to have grown at a similar pace in the second quarter due to seasonal weakness. However, the second half is likely to bode well for the sector, the agency in its report said, adding that the margins would be better this fiscal. "Cement demand is set to grow slower at 7-8 per cent year-on-year to 475 MT this fiscal, after clocking a compound annual growth rate of 11 per cent between fiscals 2022 and 2024," the report said. However, the operating profitability of cement players is likely to sustain at Rs 975-1,000 per tonne, above the decadal average of Rs 963

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.