Economy & Market

Cement and Housing

Published

9 years ago

December 30, 2017

admin

Since its invention, demand for cement has been largely driven by housing and infrastructure. For countries like ours, which depend mostly on brick and mortar for building homes, home-building has traditionally been a major driver of cement consumption. It is a different matter, that gradually, the demand from housing has moved from small individual houses to organised housing complexes and mass housing projects. However, in spite of all the changes in the market and the focus on infrastructure, even today housing continues to be 65 per cent of the Indian cement market. So, it must go without saying, that if housing grows rapidly, cement demand grows in a commensurate manner, which is sweet tiding for the industry indeed.

To get a sense of the impact of housing on cement consumption, every house (built in the affordable housing category) consumes roughly about 70 bags of cement, which amounts to 3.5 tonne. If we consider 22 million houses as considered in the project, it amounts to an incremental cement demand of 77 million tonne (MT). This also tallies with the empirical formula that every square feet of construction requires 25 kg or half a bag of cement. At 70 bags, such small houses translates to just about 140 square feet (sq ft). The actual sizes of the so-called affordable houses can be larger, and therefore, this incremental demand has an upside possibility. Now, we all know that 77 MT is a rather significant chunk of potential demand that will make the industry’s mouth literally water. What is the status of affordable housing project on the ground? According to a report published in a premier Business Daily, affordable housing segment rose 27 per cent in terms of new units launched in top eight cities of the country. More than 26,000 new units have been launched in 2017 so far, data from Cushman & Wakefield revealed. Of the total new launches in affordable units, 40 per cent were in Mumbai, followed closely by Kolkata and Pune.

All in all, there is no doubt whatsoever that the government’s current focus on spends on housing/infrastructure segment augurs well for the cement sector.

Recapitalisation of PSU banks, and gradual stabilisation of RERA regime will also have a positive down stream effect on the construction sector. The numbers thrown up by various departments indicate a healthy incremental cement demand of over 100 MT (cumulative) over the next five years, which translates to a demand CAGR of over 8 per cent, which we have not seen in recent times! Housing alone is slated to consume upwards of 75 MT of cement with the government’s target to build 22 million houses in 3-5 years. Road projects can add another 25-30 MT of consumption. Thus, just housing and road construction can add 100 MT of cement demand over the next five years, which is adequate for an exciting 10 per cent growth in capacity utilisation of the industry. Construction of other infrastructure such as airports, ports, and railway network will only add further to this tally. If all this fructify, we can expect the industry utilisation to touch nearly 85 per cent over the next 3-5 years.

The irony is, besides cement, we need sand also for house building. In fact, 120 cubic feet of sand is required for construction of 100 sq ft of home. Given that sand availability has become a serious issue in the states of Uttar Pradesh, Bihar, Madhya Pradesh, Tamil Nadu and Telangana due to the ban on illegal mining in some of these regions, sand could become a serious spoilsport in this otherwise rosy story.

Sumit Banerjee Chairman, Editorial Advisory Board

Concrete

Wonder Cement appoints Mahesh Singh as VP Corporate Brand Communication

Published

1 week ago

October 9, 2026

admin

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

admin

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

admin

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.