Concrete

Demonetisation and After | Positive Outlook

Published

9 years ago

January 31, 2017

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Vaibhav Agarwal visited north India to assess the impact of the government’s radical move on the region’s cement industry.

We visited cement manufacturers, channel partners, builders and contractors in north India for an update on the situation and outlook after the government’s demonetisation move.

The channel mechanism in north India is very different from the south; channel partners aren’t as happy, and this is a key reason for price volatility in this region. Even so, most partners sounded positive, especially on demand. A majority of them said that pricing is bound to improve in the region and that all players, including the large northern majors, appear to be in favour of better prices.

Prices should recover steadily in the north over Q4/Q1. The impact of demonetisation is now neutralised. Most of the respondents said that although demonetisation has had an impact, it was much lower than initially anticipated.

North India is a largely cash and carry economy. Most traders either adapted to the situation (accepting payments through bank transfers) or were accepting old currency even after 8 November 2016. In many cases, traders said that a lot of their outstandings were cleared in old currency; a few even recovered written off debts ‘ which kept the cycle up. Most channel partners/dealers we met complained of low net margins irrespective of cement prices. This is one of the key reasons why prices there remain more unstable despite high capacity utilisations.

Also the main reason why most price hikes in the north do not flow through as effectively as they do in the south, is because channel partners simply do not participate in companies’ price hike announcements (a key issue that has remained unaddressed for long).

This segment has also not taken to e wallets and swipe machines and it demands more stringent laws for cheque returns due to the weak channel margin structure in the north. Ergo, almost all partners said that they are not in favour of moving to digital payments.

A 1-2 per cent charge on digital transactions, they say, is a very high cost ‘ one that would take away most of their margins. Barring a few, most dealers didn’t have the mechanism for digital payments. It was said that the largest cement major rolled back the idea of installing swipe machines for channel partners. Trade associations here have approached the government to make laws more stringent for cheque returns, as issuing post dated cheques is the most common business practice there. A change in target customer segments has also helped a few manufacturers.

Smart shift
A few cement manufacturers have made a deliberate and smart shift in focus to accounts within their non-trade sales. These are a sub-segment of non-trade customers where the order flow is more regular, with no payment issues, and no extended credits. We understand that this deliberate shift has helped a few north-based manufacturers (such as JK Cement) to sail through demonetisation better. Construction of toilets and roads are some of the key demand drivers. Almost the entire channel expects prices to be up by a minimum (net) of Rs 25/bag over H1CY17.

We reiterate JK Cement as our top northern pick. Other companies like JK Lakshmi Cement, and Mangalam Cement are also attractive bets. Shree Cement will continue to command a premium due to its ability to perform well in all scenarios.

Concrete

Shree Cement Targets Above Industry Volume Growth In FY27

Chairman says firm will favour organic expansion and higher dividends

Published

4 hours ago

June 16, 2026

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Shree Cement expects to outpace the industry in the financial year 2026-27 as it pursues organic expansion and pricing discipline following a recent investor conference. The chairman said the company has completed a pricing realignment and recovered volumes lost during that exercise. Management signalled a clear preference for internal investments rather than acquisitions to support growth.

The company reported that capacity additions and demand growth across core markets are expected to underpin stronger volume performance, with a target of growing volumes at around 1.1 times the industry growth rate. Cash levels are likely to decline as capital expenditure progresses and shareholder distributions increase, the chairman indicated. The board has prioritised higher dividends over a buyback as a means of reducing excess cash.

Shree Cement described a market shift towards value and affordability rather than a race to the lowest price, which links demand expansion more closely with pricing. Historically, prices have risen at around three per cent annually over long periods, the company noted, and while prices may increase faster this year because of cost pressures from geopolitical tensions, a material improvement in industry profitability is not anticipated. In North India, the company expects additional capacity to be absorbed as demand grows, estimating a requirement of roughly 10 million (mn) tonne (t) of incremental demand annually.

The next phase of expansion will focus on the north, west, east and northeast regions, with existing projects and planned capacities viewed as sufficient to meet future demand without pursuing acquisitions. Management said it has already regained lost volumes while sustaining higher prices and will continue to monitor regional opportunities, including a possible investment in West Bengal pending clarity on industrial policy. The company, which has a current market capitalisation of Rs 852,948.9 mn, has seen its shares lose more than 20 per cent over the past year.

Concrete

Ramco Cements’ Hard Worker Campaign Wins Seven Awards

Campaign earns honours for direction, editing and cinematography

Published

1 day ago

June 15, 2026

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The Hard Worker campaign by The Ramco Cements has secured seven honours at the Good Ads Matter Awards 2026, adding to its growing list of accolades and reinforcing its standing among the year’s most recognised advertising campaigns.

The awards were presented during the Good Ads Matter Awards Night 2026 held at Mehboob Studios in Mumbai. The campaign received recognition across multiple categories, highlighting excellence in direction, editing, cinematography and storytelling.

Among the honours, the campaign won Silver in the Campaign of the Year – Direction category, while filmmaker Prakash Varma was named Director of the Year for the films Tortoise & Hare and Eco Plaster. Tortoise & Hare also received Silver awards for Best Editing and Best Colour Grading, along with a Bronze award for Best Cinematography. Eco Plaster earned Bronze awards in the Best Direction – Narrative and Best Direction – Humour categories.

Both films extended their award-winning run, with Eco Plaster being recognised for its narrative centred on water conservation through innovative construction solutions, while Tortoise & Hare was honoured for its storytelling and craft execution.

The Hard Worker campaign was built around the idea that hard work deserves recognition and respect. Through culturally rooted and emotionally engaging stories, the campaign has connected with consumers, engineers, masons and the wider construction community across the country.

Commenting on the achievement, A V Dharmakrishnan, CEO of The Ramco Cements Limited, said that the continued recognition across leading creative platforms reflects the company’s commitment to meaningful and authentic communication rooted in the values of the people it serves.

Balaji K Moorthy, Executive Director – Marketing, The Ramco Cements Limited, said the awards recognise the craftsmanship behind the storytelling, from direction and cinematography to editing and narrative execution.

Following recognition at both the Kyoorius Creative Awards and the Good Ads Matter Awards, the Hard Worker campaign continues to demonstrate the impact of purpose-driven storytelling combined with strong creative execution and consumer relevance.

Concrete

Cement Makers Reaffirm Commitment to Sustainable Growth

Published

2 weeks ago

June 5, 2026

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World Environment Day spotlight on innovation and circularity

On World Environment Day, the Indian cement industry reiterated its commitment to supporting India’s climate ambitions through sustainable manufacturing, resource efficiency and the adoption of cleaner technologies.

The Cement Manufacturers’ Association (CMA) said the sector remains aligned with the Government of India’s Net Zero commitments and is accelerating efforts to reduce its environmental footprint while supporting the country’s infrastructure and development agenda.

Parth Jindal, President, CMA and Managing Director, JSW Cement, said the industry is increasingly adopting cleaner technologies, improving energy efficiency and expanding the use of alternative fuels and raw materials. He also highlighted the growing importance of circular economy practices, where industrial by-products and waste streams from one sector are utilised as resources in another.

“The Indian Cement Industry is aligned to the Government’s commitments on carbon mitigation and is accelerating the adoption of cleaner technologies, resource efficiency and circular economy practices while actively exploring the potential of Carbon Capture, Utilisation and Storage (CCUS) as a critical pathway for deep decarbonisation,” said Jindal.

He added that coprocessing industrial waste and by-products helps conserve natural resources, reduce disposal requirements and lower the environmental footprint across multiple sectors.

According to Jindal, sustainability is no longer limited to manufacturing processes but is increasingly influencing investment decisions, innovation strategies and long-term growth plans within the industry.

Echoing similar views, Dr Raghavpat Singhania, Vice President, CMA and Managing Director, JK Cement, said sustainable development extends beyond emissions reduction and must also focus on responsible resource utilisation and waste minimisation.

“Sustainability in the built environment cannot be measured by emissions alone. It is equally about how efficiently we use resources, how effectively we minimise waste and how responsibly we create the infrastructure that will serve future generations,” said Singhania.

He noted that the cement industry is advancing its sustainability agenda through greater resource efficiency, increased circularity, technological innovation and continuous improvements in manufacturing practices. As a key contributor to India’s infrastructure development, the sector has a critical role to play in balancing economic growth with environmental responsibility.

On the occasion of World Environment Day, industry leaders reaffirmed their commitment to supporting India’s climate goals while delivering the materials required for resilient, durable and sustainable infrastructure.