Outsourcing Cement

Outsourcing a Cement Plant

Jammu and Kashmir Cements Limited a (Jammu & Kashmir Government Undertaking), a 600 TPD Cement Plant situated in the village Khrew, District Pulwama, some 25 Kms away from Srinagar is fast turning into a loss making venture.

The state government is giving serious thought on outsourcing the once-profitable public sector undertaking.

Read in greater detail here ...Cement Plant Outsourcing 

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Saurashtra Cement Sale

Saurashtra Cement Sale

Mauritius Debt Management has sold its 0.65% share in the Mehta Group's Saurashtra Cement for a total transfer value of Rs.1.34 crore.

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Institutional Demand for Cement Poor

Cement Retail Sales

A special report on the cement industry's retail cement sales as well as cement institutional sales paints a very dismal picture for the North India cement markets and cement sales. FY15 was to be a recovery year for cement sales but poor institutional of-ftake coupled with low purchasing power from rural markets has changed the scenario.

Low subsidies and poor rainfall has left its mark on rural cement spending. And infrastructure and other government projects are yet to take-off.

North India consumes around 79 Million tonnes of cement or around 33% of India's cement consumption.

The special report goes on to say that a growth of 3% - 4% is projected but that too depends on substantial infrastructure off-take.

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2 Million Tonne Cement Sales

2 Million Tonne Cement Sales

Cement companies with units based in Andhra Pradesh are smiling as the Andhra Pradesh government has finalised plans to lift 2 million tonnes of cement from cement units with factories based in Andhra Pradesh for its social development projects and infrastructure. A major share will be for irrigation projects.

India Cements, Ramco Cements, Dalmia Cements, My Home Cements and Bharathi Cements as well as a number of smaller cement units will benefit from this exercise.

Andhra Pradesh has 22 cement plants with a total  installed capacity of 53 million tonnes of cement. The actual production for the year 2014-2015 was only 27 million tonnes that is just half the installed capacity.

Andhra Pradesh government officials are quoted as saying that the state will need 2.2 million tonnes of cement for the year 2015-2016.

More details here Cement Sales


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Cement Prices and Weak Demand

Cement Prices and Weak Demand

North India cements markets are the hardest hit with a 11% drop in cement prices. West India and East India cement markets are slightly better off with South Indian cement markets holding the cement price lines.

Cement experts say that this is due to a number of factors. Reasons may differ from market to market but some for all are applicable to cement markets all over India.

# Unseasonal summer rains have subdued rural markets.
# Payments due to contractors being delayed.
# Government infra projects bidded on but yet to take-off.
# Real estate markets are still subdued.

Read more from the experts here on Cement Prices

Cement Demand Expected To Pick Up

Cement Markets

The cement industry is looking to a good monsoon this year to help pickup cement demand from rural markets. This will in turn help cement price recovery and on a longer term see good times for cement markets. North Indian and West India  cement markets may see pressure on cement prices. South Indian and East Indian cement markets seem to be better markets where the cement price lines are holding.

Infrastructure activities will act as a catalyst for future improvement in cement prices all over the Indian cement markets.

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Cement Market Consolidation

Cement Market Consolidation

Major French Cement player Lafarge is all set to accquire a 14% stake in Lafarge India. The deal worth around $304 million will depend upon Larfarge's merger with Holcim. With this the Indian subsidiary will become a 100% ownership one. Baring Private Equity now holds this 14% stake.

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Cement Marketing

Dalmia Cement is all set to expand its cement marketing base in Sri Lanka. This major cement player with an capacity of 20 MTPA has plans to expand its cement marketing volumes in Sri Lanka. Dalmia is a prominent presence in the South Indian and Eastern Indian cement markets.

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