Economy & Market

Sale of illegally sourced cement is damaging market dynamics severely

Published

12 years ago

October 31, 2014

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Anshay Sehgal Proprietor, RN Sehgal

TAlthough the cement sale this year is better than the one before, it is still too early to celebrate. The demand is yet to pick-up and the dealers are waiting optimistically. Anshay Sehgal talks with ICR about the challenges and threats faced by cement dealers in Chhattisgarh. Excerpts from the interview.

Tell us about your business and the geographical region that you cover.
We have been in the cement dealing business from last 26 years. We are based in Raipur, which is the state capital of Chhattisgarh, our market area is Raipur and upcountry areas. We are an exclusive dealer for Birla Gold, a product from Century Cement, with sale volumes reaching around 1,800 metric tonnes per month.

What are the threats faced by dealers in your region?
There are few threats faced by dealers in this region. One of the biggest threat is influx of cement from southern India. In the off-season period, during monsoons, when the cement demand is low, the cement companies from Andhra Pradesh are dispatching cement to Northern markets. We have seen well known brands of South Indian cement companies sold in Chhattisgarh.

Now that the demand has gone up in Andhra, the inflow has stopped for a while.

The cement was sold at very low prices. As a result the price structure here was disturbed badly. It was sold at Rs 4-5 less than the average market price.

How could industries in south afford to dispatch cement over such large distances?
One is that the south Indian region is saturated with cement companies, while the demand is low to due to lack of any prominent infrastructural activities there. These companies are already operating at half the installed capacities. So, they have no option but to explore distant markets to sustain the business. In off-season, when the demand is low, it becomes even more difficult to meet sale targets. Also, cement in a way is a perishable good. You cant stock it through the monsoons, waiting for the demand to pick-up. Chhattisgarh had a good to moderate demand this year as new infrastructure projects were initiated. Naturally it attracted cement suppliers from distant places with low cement demand.

I also suspect that these companies are evading state level taxes to manage with such low prices. We do not have any organised regional association of dealers that could protest strongly against this. Although, few regional cement manufacturers have taken strong objection against this.

You have been exclusive dealer for Century Cement for a long time. What has keeps you attached with this brand?
The company has a very good distribution network. If the order is to dispatched within Raipur, it is executed in four hours max. The company has four large warehouses in the four corners Raipur. If the order is from a nearby district, then the material is delivered to the site in not more than 10 to 12 hours. In our business quick delivery is very important and so we have stayed with the brand so long. It is a well known brand and the demand is good for this brand.

What is one thing that a cement company must do to keep its dealers happy?
Pay their dues in time. The company that we deal with (Century Cement) is very ethical and professional when it comes to meeting financial obligations. The company pays its dues to dealers systematically. I have friends that deal in cement from other companies. I have seen them fighting with cement companies throughout the year for payments.

Century Cement is the only company that I know in the cement industry, which settles all its dues before the financial year end. That means a lot to dealers. Some companies announce big discounts and incentives, but they keep the dues unpaid for more than two years at a stretch. If the money remains blocked with the cement company for such a longtime, it denies us from investing it into our business and growing it further. One loses at multiple levels when dealing with such companies.

How do you see the business growth year ahead?
There is huge potential for growth, but the challenges are equally big. The year ahead will be challenging as the market gets saturated with more cement dealers. Cut throat competition will make it tough for small players to survive. Big dealers are trying to grab retailers from small dealers. Currently we have 40 retailers working for us and we are aware of the attempts made by our competitors to absorb our retailers in their network. So maintaining and growing the network will be a tough in the coming year.

What is your strategy to counter this?
We are giving out systematically planned incentives to our retailers. Sometimes the cement companies too support us financially.

What must be done immediately to safeguard your business?
Some builders are bringing in cement from outer states and are selling it back in the regional cement market. These builders have received tax exemptions from government and are buying cement at subsidised rates. The cement is being sold in the market instead of being used for infrastructure projects.

The builders are only paying 2 per cent tax, while we have to pay 14.5 per cent tax. That is a gap of 12.5 per cent, which is huge. This malpractice should stop immediately. Complaints to tax authorities have not yielded any results and the illegal cement sale continues in Chhattisgarh.

All local cement bodies have tried their level best to thwart this activity but the problem still persists in this region. Sale of illegally sourced cement is damaging market dynamics severely.

Concrete

Wonder Cement appoints Mahesh Singh as VP Corporate Brand Communication

Published

7 days ago

October 9, 2026

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Singh brings 20+ years of brand and marketing experience, and will lead integrated corporate brand communication initiatives at Wonder Cement

New Delhi

Wonder Cement, a leading cement manufacturer, has appointed Mahesh Singh as Vice President – Corporate Brand Communication. In his new role, he will oversee corporate brand strategy and communication, including digital and performance marketing, public relations, trade, events, exhibitions, sports and experiential marketing.

Singh brings over two decades of experience across marketing and communications, with roles spanning the automotive industry, agencies and entrepreneurship. He spent more than a decade with Honda Motorcycle & Scooter India, working across integrated communication, media, digital, retail and consumer engagement. His stint also included helping build the company’s digital marketing capabilities.

He moved to dentsu X India as Vice President – Strategy & Planning, working across categories such as automotive, auto components, electric vehicles, FMCG, consumer electronics, BFSI, apparel and brand consulting. His responsibilities included media and marketing strategy, product launches, content, performance marketing and consumer activations.

Singh subsequently took an entrepreneurial route with Radiant Brands before joining Shriram Ltd (SPR Autotech) as Head – Marketing & Communications. There, his remit included brand and corporate strategy, communications, PR and ORM, retail identity, loyalty programmes and events.

At Wonder Cement, Singh will be responsible for bringing together the company’s corporate brand communication initiatives across digital, performance marketing, PR, trade, sports and experiential platforms. The role will focus on creating an integrated approach to communication across consumers, trade partners and other key stakeholders.

The appointment brings to Wonder Cement a marketer whose career has spanned the brand, agency and entrepreneurial sides of the communications ecosystem.

Wonder Cement, part of the RK Group, is a cement manufacturer with roots in Rajasthan and a focus on quality, trust and transparency. The company has grown to six manufacturing plants, and a cement capacity of 21.5 MTPA. With more than 2,000 employees and a network of over 5,000 dealers, its operations span manufacturing, distribution and customer engagement, with a focus on consistent product quality and efficient execution.

Concrete

JSW Cement commissions additional 1 MTPA grinding unit at Nagaur

Published

1 week ago

October 8, 2026

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With this commissioning, JSW Cement’s total cement grinding capacity has increased to 25.10 MTPA,
Mumbai

JSW Cement, one of India’s leading green cement producers and part of the diversified JSW Group, today announced the successful commissioning of an additional 1.00 MTPA cement grinding unit at Nagaur, Rajasthan. The commissioning marks another significant milestone in the Company’s growth strategy.

With this commissioning, JSW Cement’s total cement grinding capacity has increased to 25.10 MTPA, while its total clinker manufacturing capacity, including clinker capacity at its joint venture, JSW Cement FZC, stands at 9.74 MTPA.

JSW Cement had commenced operations in North India in March 2026 with the Nagaur Integrated Plant, comprising a 3.30 MTPA clinkerisation unit and 2.50 MTPA cement grinding unit. With the commissioning of the additional 1.00 MTPA cement grinding unit, the plant’s total cement grinding capacity has increased to 3.50 MTPA, enhancing the company’s ability to cater to the growing cement demand across Rajasthan, Haryana, Punjab and the National Capital Region (NCR). The expansion has been funded through a strategic mix of equity and long-term debt.

During the quarter ended 30th September 2026, JSW Cement has also commissioned the Alternate Fuel Handling System and the Waste Heat Recovery system (WHRS) at the Nagaur Integrated Plant.

Nilesh Narwekar, CEO, JSW Cement, said: “The commissioning of additional 1.00 MTPA grinding capacity at Nagaur is a key strategic priority for us and will accelerate JSW Cement’s expansion into North India. We look forward to servicing the growing needs of the region and contributing to the economic growth of Rajasthan, Haryana, Punjab and the NCR area. I am delighted to share that the company has commissioned this grinding unit within the expected timeline, showcasing our project execution capabilities. Further, the Alternate Fuel Handling System and the Waste Heat Recovery system (WHRS) are expected to substantially reduce our production costs going forward.”

Concrete

UltraTech becomes first Indian cement firm to cross 2 GW green energy

Published

1 week ago

October 7, 2026

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UltraTech Cement has crossed 2 GW of captive green energy capacity, with renewables and waste heat recovery meeting 48 per cent of its power needs.

Mumbai

UltraTech Cement Limited has surpassed 2 GW of installed green energy capacity for captive use, becoming the first cement company in India to achieve the milestone. The Aditya Birla Group company commissioned 116.55 MW of wind capacity at its Inter-State Transmission System-connected wind-solar hybrid project in Barmer, Rajasthan, along with 10 MW of Waste Heat Recovery System capacity at Sarlanagar Cement Works in Karnataka.

With these additions, UltraTech’s cumulative installed green energy capacity has reached 2,024 MW. This includes 1,580 MW of renewable energy capacity and 444 MW of waste heat recovery capacity, together meeting around 48 per cent of the company’s current power requirements.

The company said the milestone reflects the progress of its long-term energy transition strategy. In FY27 so far, nearly one-third of UltraTech’s 76 manufacturing units in India have maintained green energy utilisation above 50 per cent of their electricity requirements, while five units have crossed 95 per cent.

K C Jhanwar, Managing Director, UltraTech Cement Limited, said, “Crossing the 2 GW green energy milestone is the result of a strategy we have pursued consistently over the past decade. Cement is an energy-intensive, hard-to-abate sector, and showing that reliability and growth can go hand in hand with a rapid shift to green energy sets a benchmark for the industry. With nearly half of our power needs now met through green energy, we are significantly less exposed to fossil fuel supply constraints and power price volatility. As we scale up renewables, waste heat recovery and battery storage across our operations, we are building an energy foundation for stable, long-term growth.”

UltraTech commissioned 430 MW of green energy capacity in FY26 and continues to expand its renewable energy and waste heat recovery portfolio.

The company is also progressively integrating Battery Energy Storage Systems across its operations to improve renewable energy utilisation and supply reliability.

In 2025, UltraTech operationalised what it described as India’s first on-site hybrid round-the-clock renewable energy project at Sewagram Cement Works in Gujarat. The project combines solar, wind and battery storage.

As part of its decarbonisation strategy, UltraTech said it has not invested in new captive thermal power capacity for either greenfield projects or brownfield expansions at its integrated units for more than a decade.

The company said its expanding green energy portfolio is helping reduce dependence on conventional grid electricity and fossil fuel-based power, while lowering exposure to fluctuations in coal and electricity prices.

UltraTech aims to increase green energy’s share in its total power mix to 85 per cent by 2030. As a member of RE100, it has also committed to meeting 100 per cent of its electricity requirement through renewable sources by 2050.

UltraTech Cement, the cement flagship of the Aditya Birla Group, has a total grey cement capacity of 210.1 MTPA and white cement and putty capacity of 3.5 MTPA. The company is also a signatory to the GCCA Climate Ambition 2050 and has committed to the GCCA Net Zero Concrete roadmap.