Economy & Market

Bulking up

Published

9 years ago

March 31, 2018

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More and more RMC players and project implementing agencies are opting for bulk deliveries against split bags to save on costs and to curtail wastage.
Bulk distribution of cement is slowly but steadily replacing the once ubiquitous cement bags, changing the composition of cement channel supply chains forever. Bulk cement is consumed by ready mix concrete (RMC) manufacturers and project implementing agencies across the country. However, bag cement is refusing to disappear from the scene. For other activities like plastering, brickwork etc., bag cement is required, besides catering to the rural demand, where a lot of consumers order lower quantities.

"About 75% of requirements of RMC manufacturers are supplied through bulk only. The trend is building up towards bulk as wastage is low and cost is competitive. It saves on the cost of bags and wastage is less than one per cent. In the next couple of years, the trend will continue towards bulk," says AK Bal, Director of Pune-based Viraj Projects Pvt Ltd, which deals in steels, sand, dyes, bricks and tiles, besides cement.
Earlier the concept was use of split bags for even medium and big projects. But the trend is changing for several reasons. "Now, everybody has installed silos and has a big RMC plantat the site, particularly in South Mumbai, where you can see new towers coming up. They go for RMC orders, practically due to space constraints. This is the reason bulk cement has moved there, and this trend will continue," says Nikesh Parekh of Mumbai-based Span Cements, which also deals in paints, construction chemicals and tile adhesives.
For urban supplies and infrastructure projects, bulk supplies are being preferred, so demand for bulk supplies is expected to rise, says Bal, citing the example of Odisha, where bulk cement supplies were almost absent a year ago and gaining prominence of late.
Cement bag go into retail shops, who supply it to small contractors. "With the entry of specialised products like ready-made plasters, tile adhesives, mortars, polymer mortars etc., bag cement in retail will slowly diminish in future. In other developed countries, you do not get loose bag cements." Independent dealers
Few producers sell their goods directly to the final users. But, most use intermediaries to bring their products to market. The latter involves forging marketing channels, which can be described as a set of interdependent organizations that help make a product or service available for use or consumption by the consumer. Hence a company’s channel decisions will have a direct bearing on its marketing success.
There is an apprehension that some independent marketing players could takeover the building material channel operations wholesale in the days to come. There are already a couple of start-ups which are doing this in building materials. Nitin Vyas, Managing Director, Beumer Group says, "I believe that the next step for it would be having a platform for all cement-related industries to become an Uber (online call taxi service) of cement distribution. In the end, the cement producers would be containers, but the interface to the market would be the service companies who are reaching the material to the end customers. And that can’t be stopped."
Even some of the dealers have started guarding against this impending trend though it is not widely prevalent as of now. Span Cements has already started taking orders online from their customers. However, if online orders are accepted by any firm then they may seek payment in advance.
But for that there is no big change in the cement channels. The dealers opt for multiple dealerships for cement, so that they cannot disappoint any customer seeking a particular brand. Single dealerships are a rarity. Dealer-based
Cement is a pure commodity. Most of the cement manufacturers still deal with customers through distributors or dealers. "Though the companies are maintaining accounts of some key customers, the supplies are routed through dealers and distributors. Companies never supply cement directly to anybody. They want to encourage distributors also for insuring their receivables. The companies want to get their payment on time, so dealer will be in between to take care of payments," says Bal of Viraj.
"We have virtually become insurance agent for our principal (manufacturer for their receivables) than a marketing agent, and financier for our customer," Parekh says while explaining the role of cement dealers in the supply chain. For steel sector it is different – there customer pay interest for delayed payment. In steel, direct supply system from manufacturers is still prevalent. As far as sand goes, they have to make the spot payment, because natural sand is a very scarce commodity today. Whatever available is manufactured sand.
Comparing the channels between cement and steel, Bal says, "Another difference is cement has to be consumed within three months from the date of manufacture, hence some dealers push it through credit. That is not the case with steel, which can be stored for a couple of years without erosion in quality, if properly stored."
There is a general consensus among the dealers ICR has contacted about the upward trend in cement prices in the coming months, mostly banking on the pre-election infrastructure boost that will take place in the next 12 months before general elections scheduled for May 2019.
Bal of Viraj is expecting the cement prices to go up to Rs 270 plus GST per bag in the next two quarters from the present level of 230 plus GST in Pune. Even builders are trying to complete their projects at the earliest to cash in on their land banks. The reason is that earlier the building prices were going up rapidly giving hope that the builders can make more money if the project is delayed. Now, there is no such hope. "Now the rise in building/floor price is only 4-5 per cent a year, which is not sustainable if the project is delayed as it does not even cover the incremental interest cost incurred. Besides, input prices are moving up," Bal added.
If there is any hindrance to cement demand growth that is ‘availability of finance’, particularly in the wake of the government swooping down on defaulting companies and bad loans. "Financing has become tight everywhere. We (as dealers) have a certain capacity and I cannot go beyond that or else I will also fall. If any builder calls me and tells me that I can only pay you only a couple of weeks later, I will have to accept it. Otherwise they will stop taking my supplies. As far as payments to companies are concerned, we work on one principle – RTGS in 48 hours."– BS Srinivasalu Reddy

Concrete

Wonder Cement appoints Mahesh Singh as VP Corporate Brand Communication

Published

4 days 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

5 days 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

5 days 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.