Economy & Market

“Multiple dealerships is the norm, not an exception”

Published

9 years ago

March 31, 2018

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AK Bal, Director, Viraj Projects Pvt Ltd
Pune-based Viraj Projects is a comprehensive construction solutions provider for a wide array of sectors ranging from infrastructure, real estate, power and industrial. Having dealership in steels, sand, dyes, bricks, tiles etc., the firm is aiming to become a leading player in Indian construction sector. AK Bal, Director, Viraj Projects Pvt Ltd discusses the latest developments in the distribution channels in the construction sector as a whole, including that
of cement. What are the latest trends in buying patterns between bulk and bags in cement channels? Is there any change in buying patterns over the last two years and how do you see it panning out in the next two years?
Actually, bulkers are available aplenty, particularly catering to the consumption of RMCs or manufacturing units. For other activities like plastering, brickwork etc., bag cement is required. 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 low. 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. But bags cannot be avoided as there are a lot of consumers in rural India where cement is distributed still in bags. For urban supplies and infrastructure projects, bulk supplies are being preferred, so demand for bulk supplies is expected to rise. I am also working in the state of Orissa, where there was no bulk supplies a year back even in Bhubaneswar. The company we are working for has started manufacturing cement in the state and started bulk supplies. Is there any change in the supply chain strategies over the last few years vs traditional pattern of company-godown-dealer-last mile delivery? What are the evolving low-cost structures?
No change. Today also it is happening in the same way. Besides insuring their payments, the manufacturers want to maintain relations with their dealers so that they can protect market for their products. 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. It seems a couple of online order taking firms have come into being recently and some companies are accepting orders online. Are you doing anything of that sort?
We are not into anything of that kind so far. There might be some firms who are doing this. However, if online orders are accepted by any firm then they may seek payment in advance. Area-wise distributors and dealers are there. So whether they will get commission or not is an issue. With emergence of mega distributors for a state or region, is there any change in the relationship with the manufacturers that is happening?
There are many dealers going in for multiple dealerships. Earlier they used to opt for single dealership and they used to get special incentives for doing so. But in that case, your business growth will be constrained as you will not be able to service clients seeking a particular brand, particularly RMC companies use a particular brand of cement for the whole project or multiple projects, and besides, they cannot afford to wait for supplies. All major distributors have multiple dealerships, instead of sticking to only one brand. What about quality…
I feel, quality of all the brands – big or small – in the market is equally good and there is no big difference, otherwise the small brands will not be able to sell their products in a competitive market. Even users are conscious of quality.Are there any changes in strategies adopted by the dealers for attracting customers? How about developing a network of small and sub-dealers?
Definitely there are small and sub-dealers, who are not the authorised dealers of the company. But they supply cement at higher prices after adding his profit margin. In rural areas the prices are high because there the consumption is low, at 10 or 20 bags, unless it is for a big project. What are the latest trends in consumer demand patterns associated with brands and brand identity?
Actually, there is nothing like smaller brand in the cement market. As far as I know, for all brands the manufacturing processes are robust and quality is monitored. Even if one bag out of one thousand bags they supply is of poor quality that company will lose customer confidence, so consistency is as important. Besides, customers have their own preferences.Are you dealing in some other building materials?
Yes, we are also dealing in steels, sand, dyes, bricks, tiles etc.How cement channels are comparable to other peers like steel, sand and bricks?
In steel, direct supply system from manufacturers is available. No credit is made available for steel from dealers, while it is there for cement. And another thing is cement has to be used 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 stores for a couple of years without erosion in quality, if properly stored. How do you see price patterns changing in your region in near future, and why?
Definitely, the prices are expected to go up from here. In Pune we are expecting the cement prices to touch Rs 270 plus GST per bag from the present level of Rs 230 plus GST now. Because the demand is very high and a lot of infrastructure projects are under implementation. With general elections in a year’s time, the government is announcing and implementing a lot of infrastructure projects. Unless the government controls prices before elections to satisfy the end consumer, the price trend will remain upwards. 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 of revival in prices in the near future. Now the rise in prices is only 4-5 per cent a year, that is not sustainable if the project is delayed and it does not even cover the incremental interest cost incurred. Besides, input prices are moving up.– 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

6 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.