Hemadri Cements Ltd Management Discussions

Global Economy

The global cement market in 2024-25 is characterized by continued growth driven by increasing construction activities and urbanization. The global cement market size was valued at USD 407.4 Billion in 2024, and it is expected to reach USD 673.8 Billion by 2033, exhibiting a growth rate (CAGR) of 5.16% from 2025 to 2033.

The global cement industry is a significant part of the global economy, contributing to infrastructure development and construction. Its growth is closely tied to the global economys performance, particularly the construction sector. While the industry experiences periods of strong growth, it also faces challenges from economic downturns, geopolitical events, and increasing competition. The industrys future will likely be shaped by technological advancements, sustainability efforts, and changes in construction practices.

Indian Economy

The Indian cement industry in 2024 experienced a period of slower growth, primarily due to cyclical factors and macroeconomic challenges. This slowdown was attributed to several factors like Adverse Weather Conditions, Labour Shortages and Price Pressures. However, the outlook for 2025 remains optimistic, driven by substantial investments, government infrastructure initiatives, and a rebound in demand.

Cement Industry – outlook and opportunities

Looking ahead, the Indian cement industry is poised for a recovery in FY2025, with expectations of incremental volume growth, translating to approximately 445–450 million tonnes. This resurgence is fueled by Government Infrastructure Initiatives, Private Sector Investments & Capacity Expansion. While 2024 posed challenges for the Indian cement industry, the sector is on a path to recovery in 2025. With substantial investments, government support, and a rebound in demand, the industry is well-positioned for growth. However, the pace of capacity expansion will require careful management to maintain optimal utilization rates. Major players are consolidating their positions through acquisitions and expansions, anticipating strong growth in sales and margins. Furthermore, the industry is embracing digital transformation and sustainable practices, including the production of green cement, to enhance efficiency and reduce environmental impact.

Company Perspective

During the financial year 2024-2025, the company once again witnessed obstacles due to unseasoned weather conditions and rains, sluggish market conditions which had impacted the operations and revenues of the Company. During the financial year, the coal price has increased multi-fold accompanied by acute shortage in supply of Coal. This has impacted margins of the company.

Strategic measures were taken to produce eco-friendly and cost effective cement production. The management is planning to satisfy the demands for different segments towards consumption with suitable price mechanism. Due to un-certain market conditions mainly on pricing front, the company is planning for minimal additional investments with a strategic cost reducing measures and plan for increasing the life of the plant and machinery and thereby reducing Coal Consumption. An all-round effort is taken to use vibrant and young talents available in the industry which may improve the condition and to achieve the longer perspectives of the company.

CONSERVATION OF ENERGY

			(Rs. In Lakhs)
A. POWER AND FUEL CONSUMPTION		2024-25	2023-24
ELECTRICITY
a. Purchased Units		22.89	137.56
Total Amount (in INR)		496.07	1393.26
Average Rate/Unit Rs.		21.68	10.12
b. Own Generation
Through Diesel Generation Unit
Units Per Ltr. of Diesel Generation
Cost / Unit Rs.
COAL
Quantity (Tons)		0.03	0.23
Total Cost Rs.		240.97	2068.37
Average Rate (Rs) per ton		8801	9098
FURNACE OIL:
Quantity (Tons)
Total Cost Rs.
Average Rate (Rs)
B. CONSUMPTION PER UNIT PRODUCTION:
	Standards
Electrical Consumption – per ton of cement	105 Units	126.55	105.12
Coal Consumption- per ton of Cement	0.21 MT	0.1411	0.17

TECHNOLOGY ABSORPTION FROM FOREIGN COUNTRIES:

Details of imported machinery – Nil

FOREIGN EXCHANGE EARNINGS AND OUT GO:

During the year, the Company had no foreign exchange earnings and out go.

FORM- B

A. RESEARCH AND DEVELOPMENT (R & D):	2024-25	2023-24
1. Specific areas in which R & D carried out by the Company	NIL	NIL
2. Benefits derived as a result of the above R & D	NIL	NIL
3. Future plan of Action
4. Expenditure on R & D	NIL	NIL
a) Capital
b) Recurring
c) Total
d) Total R & D expenditures as a percentage of total turnover	NIL	NIL

B.TECHNOLOGY ABSORPTION, ADOPTION INNOVATION:

1. Efforts, in brief, made towards Technology absorption, adoption and innovation	The Company had installed equipment in compliance with Pollution control Board Norms	NIL
2. Benefits derived as a result of the above efforts eg., product Improvement, cost reduction, Products development, import substitution etc.	Adherence to statutory norms	NIL
3. In case of imported technology (Imported during the last 5 years reckoned from the beginning of the financial year). Following information may be furnished	NIL	NIL
a) Technology imported:
b) Year of import:
c) Has technology been fully absorbed:
d) If not fully absorbed, areas where this has not taken place, reasons therefore and future plans of action:

 

	By Order of the Board
	For Hemadri Cements Limited
S/d		S/d
Dr.Sivasamy Raju		Ramachandran Harikrishna
Director		Director
DIN: 06961330		DIN: 07131420