Economy & Market

The Dealer?s Juggle

Published

12 years ago

October 31, 2014

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Cement dealers all over India are juggling with the same universal issues, low margins, logistical challenges, low demand and competition. The community however, has not yet come together as a strong organisation that could do something about it rather than just bearing with the situation.

Sandeep Gupta VP Marketing, JCl Cement

We are dispatching 5000 to 8000 bags per day from our shop in the northern and western region of New Delhi. We cannot go beyond a radius of 15 Km from our warehouse as it is not economical beyond this point. It is viable to send the material if the cost of transportation is below Rs 15 per bag. Fuel prices, labour cost are restricting our expansion plans.

One of the other challenges is low price of cement. Since, the price is low, the margin too is limited. Dealers make money in only 4 to 5 months in a year. It is the price hike in the peak season that gives us enough opportunities gather revenue and sustain our business in the remaining part of the year. If cement companies do not raise prices in the peak season, then how will they manage in the low-demand period?

Some builders say that the price fluctuation is detrimental to business. But I do not agree with them. I feel it is the best time to do business. When there is price gap at different outlets, customers start exploring new suppliers. It is at this time, when you meet new customers, forge new bonds and do business.

Ajay Kumar General Manager – Marketing, Champion Dealers

We dispatch around 3000 metric tonnes of cement per month in the Mumbai, Pune, Satara, Kolhapur, Solapur and Nagar Districts. We go upto 200 to 300 Km from our warehouses to dispatch cement. It takes two to three days to deliver the material on site. The current margin offered to dealers is very low. Unless the profit margin increases, it is not viable to continue business in an environment where the demand is so low. We have kept multiple brands so as to cater as many as customers that we can.

Murali P L Proprietor, Sri Sai Traders

We are dispatching 2800 Metric tonnes of cement per month to Bidadi, Utharahalli, Rajarajeshwari Nagar and Kengeri city in Bangalore. We do not go beyond 5 to 10 Km from our warehouse. Our biggest challenge is to work with very low profit margins. We take dealership of only those companies that have a good logistical network or offer good discount.

Sunil K Jain Proprietor, Sunaansh Cement

We dispatch around 1000 to 1200 bags per month in Noida and Uttar Pradesh. We sell cement only on cash payment basis. Unless the order is paid for in advance, we do not dispatch material. Already the margins are low in cement commodity. So it does not make sense to keep the money blocked with cement companies. Many dealers deal on credit basis and have to go through the hassles of following up for cash.

Cement dealing happens in an highly unorganised market. Customers are often confronted with variations in price, material quality, supplier, discount schemes while making a buying decision. The variety adds more to the confusion rather than enabling customers to make an appropriate selection. Most deals are done on the basis of so called ?trust factor.? Discount schemes and marketing gimmickery takes the center stage.

Labour costs and rising land prices have prompted dealers to discontinue cement storage at the shop. They are preferring dispatching material directly from the company to the site. Logistics, naturally becomes another important deciding factor. Perhaps it is time for the dealers to look beyond housing and form tie-ups with government bodies. It is high time where dealers start doing corporate marketing, something, which has not been tried before. A large section of dealer community lacks the necessary skills to push products in this manner, and as a result, is losing good opportunities. These opportunities must be tapped in time. Cement dealing today is more than building a customer rapport. It is about being agile, adaptive and innovative. Growing number of dealers and multibrand shops have taken the competition to the next level. The juggle with logistics, price and discounts has become a daily routine for dealers. ICR spoke with dealers from distant corners of the country to get a pulse of the market sentiment.

Concrete

Wonder Cement appoints Mahesh Singh as VP Corporate Brand Communication

Published

5 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

6 days 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

7 days 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.