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In the Wonderland of Cement Brands

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Today, after a longish journey of almost 200 years, our world is producing nearly 4,500 million tonnes of the commodity, and it is difficult to think of something truly revolutionary that has happened to this product in these 200 years. So, it has been a placid, plain, peaceful and predictable journey, except perhaps, the ripples caused by the interesting stories of some cement brands. But can commodities be branded?

If things like atta, petrol, water, salt and cooking oil can be distinguished and branded, cement brands need not spring any surprise. Product brands are premised on explicit or implicit promise to the buyers, and in case of commodities like cement, brands can differentiate themselves through superlative product attributes, freshness of product, catchy packaging, express delivery or after-sales service, or even a combination of these differentiators. However, an analysis of various reputed cement brand offerings indicates a clear preference for product quality attributes, such as compressive strength, durability, and so on. In general, such brands are far less relevant in case of commodities sold in bulk quantities to institutional customers, and assume a lot of significance for B2C products which are packaged and sold in retail. So it may stand to reason that cement brands gradually lose their sheen in markets where individual home builders no longer call the shots, such as the developed markets of Europe or USA or Australia.

For a long time, perhaps till as late as the seventies or eighties, India had a controlled cement supply situation, almost bordering on rationing, and there was no need for promoting a cement brand as such. Naturally, the product was sold by the name of the manufacturing companies themselves, there being no difference between the brand of the company and the brand of the product, and there was hardly any investment into developing brand identities. As the environment was decontrolled in the nineties, new capacities were set up and competition was in evidence, all of which encouraged cement manufacturers to invest in their brands, to achieve market leadership, price leadership. As Portland Pozzolana Cement (fly ash blended) and other product variants were introduced, the market witnessed first serious examples of product brands different from the company’s brand(s).

Around this time, the global community was gaining a heightened sensitivity to climate change and the cement industry was identified as one of the larger emitters of CO2. Being a natural resource based industry, consuming a lot of fossil fuels and other depleting minerals, the industry at large felt the need to segregate the corporate brand from the product brands, with a an approach to create a longer term reputational capital in the mind space of citizenry as well as opinion makers and regulators. As part of this strategy, the cement industry had to reach out to its target audience and communicate the efforts being made by them in the direction of sustainable development. Therefore, as opposed to the attributes touted in product branding, corporate brands started getting built on environmental performance, societal contributions and fair business practices in employment, procurement and last but not the least, competing in the marketplace.

All said and done, the cement industry has not yet been seen to be aggressively creating, growing, valuing and buying/selling brands, the way their peers in FMCG or healthcare or luxury goods industry do, and we can only wonder why this has been so.

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Concrete

CCU testbeds in Tamil Nadu

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Tamil Nadu is set to host one of India’s five national carbon capture and utilisation (CCU) testbeds, aimed at reducing CO2 emissions in the cement industry as part of the country’s 2070 net-zero goal, as per a news report. The facility will be based at UltraTech Cement’s Reddipalayam plant in Ariyalur, supported by IIT Madras and BITS Pilani. Backed by the Department of Science and Technology (DST), the project will pilot an oxygen-enriched kiln capable of capturing up to two tonnes of CO2 per day for conversion into concrete products. Additional testbeds are planned in Rajasthan, Odisha, and Andhra Pradesh, involving companies like JK Cement and Dalmia Cement. Union Minister Jitendra Singh confirmed that funding approvals are underway, with full implementation expected in 2025.

Image source:https://www.heavyequipmentguide.ca/

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Concrete

JSW Cement gears up for IPO

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JSW Cement has set the price range for its upcoming initial public offering(IPO) at US$1.58 to US$1.67 per share, aiming to raise approximately US$409 million. As reported in the news, around US$91 million from the proceeds will be directed towards partially financing a new integrated cement plant in Nagaur, Rajasthan. Additionally, the company plans to utilise US$59.2 million to repay or prepay existing debts. The remaining capital will be allocated for general corporate purposes.

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Concrete

Cement industry to gain from new infrastructure spending

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As per a news report, Karan Adani, ACC Chair, has said that he expects the cement industry to benefit from the an anticipated US$2.2tn in new public infrastructure spending between 2025 and 2030. In a statement he said that ACC has crossed the 100Mt/yr cement capacity milestone in April 2025, propelling the company to get closer to its ambitious 140Mt/yr target by the 2028 financial year. The company’s capacity corresponds to 15 per cent of an all-India installed capacity of 686Mt/yr.

Image source:https://cementplantsupplier.com/cement-manufacturing/emerging-trends-in-cement-manufacturing-technology/

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