Cement Industry Profitability Boosted by Low Costs
Cement

Cement Industry Profitability Boosted by Low Costs

The cement industry is set to experience enhanced profitability thanks to favourable cost conditions, according to a report by CRISIL. The report highlights that benign costs will drive improved margins for cement manufacturers, despite challenges in demand growth.

CRISIL notes that lower input costs, particularly for key raw materials like petcoke and slag, will contribute to the profitability of cement companies. Additionally, the report anticipates stable prices for other inputs such as coal and power, further supporting the industry's bottom line.

The construction sector's recovery post-pandemic, coupled with government infrastructure spending, is expected to boost cement demand. However, this demand growth may be somewhat tempered by the recent uptick in prices, which could impact affordability and construction activity.

Nevertheless, the overall outlook remains positive for the cement industry, with cost efficiencies playing a crucial role in maintaining profitability. Cement manufacturers are likely to benefit from prudent cost management strategies and operational efficiencies to mitigate the impact of any demand-related challenges.

CRISIL's report underscores the importance of cost optimization in sustaining profitability amidst evolving market dynamics. As cement companies navigate through demand fluctuations and pricing pressures, maintaining a focus on cost discipline will be key to driving long-term financial performance.

Overall, the combination of benign costs and steady demand recovery bodes well for the profitability of India's cement industry. With prudent cost management practices in place, cement manufacturers are poised to capitalise on emerging opportunities and sustain growth in the coming years.

The cement industry is set to experience enhanced profitability thanks to favourable cost conditions, according to a report by CRISIL. The report highlights that benign costs will drive improved margins for cement manufacturers, despite challenges in demand growth. CRISIL notes that lower input costs, particularly for key raw materials like petcoke and slag, will contribute to the profitability of cement companies. Additionally, the report anticipates stable prices for other inputs such as coal and power, further supporting the industry's bottom line. The construction sector's recovery post-pandemic, coupled with government infrastructure spending, is expected to boost cement demand. However, this demand growth may be somewhat tempered by the recent uptick in prices, which could impact affordability and construction activity. Nevertheless, the overall outlook remains positive for the cement industry, with cost efficiencies playing a crucial role in maintaining profitability. Cement manufacturers are likely to benefit from prudent cost management strategies and operational efficiencies to mitigate the impact of any demand-related challenges. CRISIL's report underscores the importance of cost optimization in sustaining profitability amidst evolving market dynamics. As cement companies navigate through demand fluctuations and pricing pressures, maintaining a focus on cost discipline will be key to driving long-term financial performance. Overall, the combination of benign costs and steady demand recovery bodes well for the profitability of India's cement industry. With prudent cost management practices in place, cement manufacturers are poised to capitalise on emerging opportunities and sustain growth in the coming years.

Next Story
Resources

Office Fit-Out Costs Rise in India amid Demand for Premium Workspaces

Office fit-out costs in India continued to rise in 2024, with Mumbai leading at US$73 per sq. ft., followed by Delhi at US$ 69 per sq. ft., according to Cushman & Wakefield’s latest Fit-Out Cost Guide. Bengaluru follows at US$67 per sq. ft., while Ahmedabad, Chennai, Hyderabad, Kolkata, and Pune stand at US$ 65 per sq. ft.Despite a three per cent year-on-year increase, India remains one of the most cost-effective office fit-out destinations in the Asia Pacific (APAC) region. The report notes a shift towards premium, tech-enabled, and sustainable workspaces as companies invest more per sq..

Next Story
Equipment

TKIL Industries’ Hyderabad Plant Earns Five-Star Safety Grading

TKIL Industries has achieved a Five-Star grading in the British Safety Council's Occupational Health and Safety Audit for its Hyderabad manufacturing plant. This follows a similar recognition for its Pimpri facility, reinforcing TKIL’s commitment to safety, risk management, and operational excellence.The Hyderabad plant, operational since 1988, manufactures equipment for sugar, mining, cement, and power industries and employs 720 workers. The audit assessed leadership, risk management, and organisational safety culture, covering 50 key health and safety components.Mike Robinson, CEO, British..

Next Story
Real Estate

Bigdome Infra Acquires Prime Land in Kamba for Rs 1.3 bilion

Bigdome Infra has acquired 68.91 hectares of land in Kamba, Kalyan-Dombivli, for Rs 1.29 billion (bn), according to property registration data reviewed by Square Yards. The purchase was made through two transactions from multiple owners and was registered between February and March 2025. Kamba, an emerging locality in Maharashtra, offers connectivity to Kalyan, Ambernath, and Thane via National Highway 61 (NH 61) and nearby railway stations. The total stamp duty paid for the transaction was Rs 79.5 million. Registered on February 28, 2024, Bigdome Infra is a real estate-focused compa..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?