Theme: Infrastructure | Operational costs decline as cement companies shift to green energy

In this episode of the State of the Economy podcast, Suresh P Iyengar talks to Ravleen Sethi, Director, CareEdge Ratings, about the ever-evolving landscape of the cement sector. The discussion provides a comprehensive analysis of the industry’s performance in FY24 and projections for FY25 and beyond.  Sethi sheds light on the challenges faced by the cement sector in FY25, including adverse weather conditions, delayed infrastructure projects, and muted government spending. Despite these setbacks, the long-term growth outlook remains promising, with demand expected to align with GDP growth or exceed it in FY26 and FY27.  The episode explores the pricing dynamics within the sector, examining the impact of cost pressures and demand fluctuations. Sethi also discusses the operational costs, highlighting the industry’s ongoing shift toward green energy solutions like solar and WHRS to mitigate fuel price volatility.  Listeners gain valuable perspectives on how macroeconomic trends, election-year policies, and infrastructure projects such as the National Infrastructure Pipeline, Bharat Mala, and Shakti are shaping the cement sector’s trajectory.