Economy & Market

Consolidation vs capacity building

Published

12 years ago

March 31, 2015

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So comes the landmark verdict the cement industry has been waiting for. The Competition Commission of India (CCI) has cleared the proposed merger of French cement maker Lafarge and Holcim. The merger which will create the world?s largest cement company by manufacturing capacity and sales was expected to tilt the balance. As expected, to address the monopoly concerns, the CCI has decided that a divesture of Lafarge?s Jojobera plant in Jharkhand and the company?s integrated unit at Sonadih in Chhattisgarh will be most effective in eliminating the concerns. This will cut down around 5 mtpa from the combined capacity of both Holcim and Lafarge. It is learnt that CCI will also appoint a monitoring agency to oversee compliance to the conditions put forth by it to ensure that the merger does not negatively impact the competitive scenario.

The cement industry has been witnessing several acquisitions and capacity additions. Analysts feel that there would be more capacity addition in the coming years despite the fact that current capacity utilization is below 75 mtpa. After a strong start to FY15, cement demand dipped in the second half and for the fifth year in a row, the growth remained below the long-term average of over 8 per cent. As of today, capacity continues to be way ahead of actual demand; however, major players are keen to maintain and grow their market share and therefore, expand to secure future demand. The push for dominance in new markets and sustaining the existing ones seems to be the logic behind continued push for capacity additions. According to ICRA report on the sector, the industry is likely to add 25 mtpa capacities in FY15, 23 mtpa in FY16 and 8 mtpa in FY17 as against the historical peak addition of 50 mtpa in FY10.

UltraTech?s capacity had risen to 59 mtpa after the Jaypee deal, and as per reports, the cement giant plans to increase its capacity to 70 mtpa by 2016.

Reliance Cement is reportedly in talks with some multinational players and has offered a strategic stake to them. The prospective joint venture partner may fund the company?s cement capacity expansion – estimated to rise from 5 mtpa to 15 mtpa by 2018. Orient Cement has set ambitious plans to increase capacity from its current 5 mtpa to 15 mtpa by 2020. Its new Greenfield plant with a capacity of 3 mtpa at Gulbarga will be operational this fiscal. The remaining capacity of 7 mtpa is expected through either brownfield plants or acquisitions. Jaypee Group is reportedly in talks with some large players to form a joint venture which will control the majority of its cement plants. The plan envisages a separate joint venture entity which will house around 20-22 mtpa of Jaypee?s operational units spread across the country and a new greenfield unit in Karnataka, which is expected to come on stream this year.

In such a scenario of over capacity, it is rather ironical that the Confederation of Real Estate Developers? Associations of India (CREDAI) is thinking of importing cement from abroad, China in particular. The move is to counter the problems of increasing prices of cement on one hand, and the truck movement restriction imposed by the Telangana government on the other. This possibility of import of cement brings us to our interesting cover story of the current edition on ?Optimising Logistics.? In fact, import of bulk cement into our country in the past has not succeeded mainly because of logistics bottlenecks in our ports and in the hinterland. We have a long way to go in setting up state-of-the-art facilities of bulk handling, storage and transportation of commodities like cement, in our port infrastructure.

In the last few years, logistics has emerged as a function of critical importance in cement business possibly on par with manufacturing and sales. Our cover story on this topic informs the readers on the logistics trends, and ways and means to improve efficiency and have a significant impact on the bottomlines of our cement players.

Sumit Banerjee Chairman, Editorial Advisory Board

Concrete

Wonder Cement appoints Mahesh Singh as VP Corporate Brand Communication

Published

1 week 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.