13th NCB International Seminar and Exhibition on Cement and Building Materials
19-22 November 2013, Manekshaw Centre, New Delhi, India
This biennial event attracts global participation from cement producers, industry experts and other stakeholders active in the world of cement. The NCB’s role is to encourage development and transfer of knowledge through its continuous research and education for the cement and building materials sector in India. Delegates attending the NCB’s Seminar in New Delhi in November will be informed about the changes in the domestic cement market and the new initiatives producers are making to remain competitive in 2014.
The seminar will update participants on the developments that have taken place since the last event with special focus on alternative fuels and raw materials (co-processing), global warming, CDM, ready-mix, and nanotechnology. There will also be an international exhibition of equipment and services for the cement industry.
India’s cement market
The Indian cement sector remains the second largest cement consuming nation behind China. The Global Cement Report, 10th Edition, estimates that consumption could reach 272Mt in 2013, and with per capita consumption levels recorded at just 191kg, there is still potential for major growth in the long term.
Elections in 2014 are expected to see the announcement of additional government spending on infrastructure and public works projects, which will boost cement demand and offset some of the weakness in demand seen in the first half of 2013.
From a technical perspective, the industry is now committed to dramatically increasing the use of alternative fuels, which remains stubbornly low at just one per cent. Cement producers view high alternative fuel utilization as a primary means to reduce their dependence on traditional fuels, while reducing overall production costs.
New projects
Between 1998-2008 the sector added 100Mta of capacity and this rate accelerated between 2008-11 with the addition of a further 100Mta capacity. Domestic cement capacity was estimated to have reached 336.1Mta at the end of 2012, according to the CMA.
Over the last 12 months, new capacity projects have continued apace. Notably, Vicat began its 2.8Mta greenfield project with Sagar Cement at the end of last year.
January 2013 saw the expansion of Mangalam Cement of the BK Birla Group from 1.5 to 2.2Mta. Amrit Cement opened a 1Mta greenfield plant at Jayantia Hills. February commenced with HeidelbergCement increasing its capacity in central India by expanding its Jhansi grinding unit from 0.8-2.7Mta and its Damoh facility had its capacity raised from 1.3-3.1Mta.
Meanwhile, in July Jammu and Kashmir Cements also opened a 300tpd grinding plant in the north. In the same month, UltraTech also commissioned its 3.3Mta clinker plant at Malkhed raising its total capacity to 57.2Mta.
Capex activity
Going forward, UltraTech continues to lead the way by investing INR114m to bring its capacity to 64.45Mta by 2015. The company is also buying Jaiprakash Associates’ Gujarat facility, which will add 10Mta to its capacity, while the group is also in discussions over the greenfield ABG Cement plant also located in Gujarat.
Holcim subsidiary ACC is proving to be another big spender. In April it announced that it was investing INR33bn (US$603.9m) in expansion projects at Jamul and Chhattisgarh, raising total company cement capacity to 35Mta by 2015.
In May, Lafarge also raised EUR200m to accelerate its Indian growth plants, while in June HeidelbergCement announced it would have INR20bn (US$340m) to invest in capacity expansion projects.
June brought news that JK Cement aims to double capacity by expanding capacity at Mangrol and Jhajjhar. BK Birla’s century Textiles is likewise planning to increase capacity to 12.8Mta by end-FY14.
Overall, India is forecast to add an extra 66Mt of capacity by 2015-16, according to credit rating agency, Care Research.
