Concrete

The government needs to strictly enforce cement usage in rural and urban roads

Published

11 years ago

January 31, 2015

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Faisal Alam, President-Sales & Marketing, Kalyanpur Cement
Overall cement demand will go up which will increase the present capacity utilisation levels from 50-60 per cent to around 80 per cent, says Faisal Alam, President-Sales & Marketing, Kalyanpur Cement. Excerpts from the interview…Which sectors will drive cement demand in 2015?
According to the recent Government of India guidelines, most of the highways and roads will be built using concrete. This should have happened much earlier. If this happens, infrastructure demand will take the lead as is the case in China. The gap between China and India as first and second largest producer of cement in the world is primarily on account of cement being used in roads and bridges in China. The overall specs of the roads is for 100 years or more horizon. Rest of the sectors will grow at 7 to 8 per cent.

What will be the likely demand-supply scenario in 2015?
This will depend on cement usage in roads and bridges. In case of 100 per cent conversion to cement for road and highway building, the overall growth may easily reach double-digit figures. That will lead to demand outstripping supply (at 100 per cent capacity utilisation) but in not less than a year and a half time. We are yet to catch up with developed nations in as far as FAR vs Road width vs height is concerned. The emphasis on low-cost housing will also make a difference if it is well supported by government. This is a more important area than building smart cities.

What is your estimate on the cement prices in 2015 and how will it impact the market?
Cement prices will cross Rs 400 mark per bag across the country in order that cement companies survive in line with rising costs and a huge tax burden.

What is the export/import scenario in 2015 for cement and its raw materials?
Export levels will go up but not at a very large variance than what has been in recent years because I believe Indian cement will be dearer with rupee consolidating against foreign currencies. Raw material import will go up, specially coal and gypsum.

What are the policy initiatives you expect from the government?
The government needs to strictly enforce cement usage in ?all? roads, rural or urban. Improve building laws to encourage sky scrapers on smaller footprints, incentivise low cost housing, reduce interest rates on housing loans and also reduce income tax rates on disposable income.

Increase coal output in the country by bringing in modern technology for higher output of coal. Simultaneously, encourage R&D at premier institutes to substitute usage of coal (gas pipelines?) Better roads are needed. Also encourage washeries so that less ash and more coal is transported. Today, coal is Railways? highest transported commodity followed by steel and cement. Average ash from pit is in the range of 30-40 per cent. Railways is therefore transporting huge amount of ash which is further leading to disposal problems of fly ash at thermal power plants.

Concrete

Adani Cement to Deploy World’s First Commercial RDH System

Adani Cement and Coolbrook partner to pilot RDH tech for low-carbon cement.

Published

3 days ago

November 14, 2025

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Adani Cement and Coolbrook have announced a landmark agreement to install the world’s first commercial RotoDynamic Heater (RDH) system at Adani’s Boyareddypalli Integrated Cement Plant in Andhra Pradesh. The initiative aims to sharply reduce carbon emissions associated with cement production.

This marks the first industrial-scale deployment of Coolbrook’s RDH technology, which will decarbonise the calcination phase — the most fossil fuel-intensive stage of cement manufacturing. The RDH system will generate clean, electrified heat to dry and improve the efficiency of alternative fuels, reducing dependence on conventional fossil sources.

According to Adani, the installation is expected to eliminate around 60,000 tonnes of carbon emissions annually, with the potential to scale up tenfold as the technology is expanded. The system will be powered entirely by renewable energy sourced from Adani Cement’s own portfolio, demonstrating the feasibility of producing industrial heat without emissions and strengthening India’s position as a hub for clean cement technologies.

The partnership also includes a roadmap to deploy RotoDynamic Technology across additional Adani Cement sites, with at least five more projects planned over the next two years. The first-generation RDH will provide hot gases at approximately 1000°C, enabling more efficient use of alternative fuels.

Adani Cement’s wider sustainability strategy targets raising the share of alternative fuels and resources to 30 per cent and increasing green power use to 60 per cent by FY28. The RDH deployment supports the company’s Science Based Targets initiative (SBTi)-validated commitment to achieve net-zero emissions by 2050.

Concrete

Birla Corporation Q2 EBITDA Surges 71%, Net Profit at Rs 90 Crore

Stronger margins and premium cement sales boost quarterly performance.

Published

5 days ago

November 12, 2025

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Birla Corporation Limited reported a consolidated EBITDA of Rs 3320 million for the September quarter of FY26, a 71 per cent increase over the same period last year, driven by improved profitability in both its Cement and Jute divisions. The company posted a consolidated net profit of Rs 900 million, reversing a loss of Rs 250 million in the corresponding quarter last year.

Consolidated revenue stood at Rs 22330 million, marking a 13 per cent year-on-year growth as cement sales volumes rose 7 per cent to 4.2 million tonnes. Despite subdued cement demand, weak pricing, and rainfall disruptions, Birla Jute Mills staged a turnaround during the quarter.

Premium cement continued to drive performance, accounting for 60 per cent of total trade sales. The flagship brand Perfect Plus recorded 20 per cent growth, while Unique Plus rose 28 per cent year-on-year. Sales through the trade channel reached 79 per cent, up from 71 per cent a year earlier, while blended cement sales grew 14 per cent, forming 89 per cent of total cement sales. Madhya Pradesh and Rajasthan remained key growth markets with 7–11 per cent volume gains.

EBITDA per tonne improved 54 per cent to Rs 712, with operating margins expanding to 14.7 per cent from 9.8 per cent last year, supported by efficiency gains and cost reduction measures.

Sandip Ghose, Managing Director and CEO, said, “The Company was able to overcome headwinds from multiple directions to deliver a resilient performance, which boosts confidence in the robustness of our strategies.”

The company expects cement demand to strengthen in the December quarter, supported by government infrastructure spending and rural housing demand. Growth is anticipated mainly from northern and western India, while southern and eastern regions are expected to face continued supply pressures.

Concrete

Ambuja Cements Delivers Strong Q2 FY26 Performance Driven by R&D and Efficiency

Company raises FY28 capacity target to 155 MTPA with focus on cost optimisation and AI integration

Published

7 days ago

November 10, 2025

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Ambuja Cements, part of the diversified Adani Portfolio and the world’s ninth-largest building materials solutions company, has reported a robust performance for Q2 FY26. The company’s strong results were driven by market share gains, R&D-led premium cement products, and continued efficiency improvements.

Vinod Bahety, Whole-Time Director and CEO, Ambuja Cements, said, “This quarter has been noteworthy for the cement industry. Despite headwinds from prolonged monsoons, the sector stands to benefit from several favourable developments, including GST 2.0 reforms, the Carbon Credit Trading Scheme (CCTS), and the withdrawal of coal cess. Our capacity expansion is well timed to capitalise on this positive momentum.”

Ambuja has increased its FY28 capacity target by 15 MTPA — from 140 MTPA to 155 MTPA — through debottlenecking initiatives that will come at a lower capital expenditure of USD 48 per metric tonne. The company also plans to enhance utilisation of its existing 107 MTPA capacity by 3 per cent through logistics infrastructure improvements.

To strengthen its product mix, Ambuja will install 13 blenders across its plants over the next 12 months to optimise production and increase the share of premium cement, improving realisations. These operational enhancements have already contributed to a 5 per cent reduction in cost of sales year-on-year, resulting in an EBITDA of Rs 1,060 per metric tonne and a PMT EBITDA of approximately Rs 1,189.

Looking ahead, the company remains optimistic about achieving double-digit revenue growth and maintaining four-digit PMT EBITDA through FY26. Ambuja aims to reduce total cost to Rs 4,000 per metric tonne by the end of FY26 and further by 5 per cent annually to reach Rs 3,650 per metric tonne by FY28.

Bahety added, “Our Cement Intelligent Network Operations Centre (CiNOC) will bring a paradigm shift to our business operations. Artificial Intelligence will run deep within our enterprise, driving efficiency, productivity, and enhanced stakeholder engagement across the value chain.”