Concrete

The Curious Business of Concrete

Published

7 years ago

January 2, 2019

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If cement was not a global business but a regional business at best, then concrete (or ready mixed concrete, RMC, as one may call the concrete business in some parlances) business can at best be called local, in terms of geographical spread. Some have attempted to use glorified jargons such as "glocal" etc., in respect of cement, to signify its globalisation in the areas of technology and sustainability, but in case of RMC, even such coined adjectives are not applied. Even so, there is sense in looking at the global scenario of ready mixed concrete business, simply because the global trends, and the global learnings, particularly those from Europe and North America provide a window into what may happen in emerging markets like ours, as our construction markets mature, and as our construction practices advance.

But, before we do that, a small introduction of "concrete" itself will be in order. We have always tried to remind our readers that the value chain is cement – concrete- construction, and that if cement is a construction material, then concrete is a construction intermediate. To introduce concrete to the lay person, one may say that the grey powder-like product that we know as cement is but one ingredient, albeit an important one, for making concrete mix. To quote volubly from the report entitled ‘Global Concrete Report 2018, published by Global Cement Magazine:

‘Cement is the main ‘active’ ingredient in a concrete mix, which, when combined with water recrystallises into a hard matrix which solidifies around the other constituents, binding them together. Cement makes up around 15-20 per cent of the weight of the ingredients, which also include water, sand and aggregate. Other ingredients may include special chemicals that delay or accelerate setting, that impart higher early strength or reduced heat of hydration, or which increase the flowability of the unset concrete. Other ingredients may include inert fillers such as ground limestone, or cementitiously-active alternative materials such as ground-granulated blast furnace slag, silica fume, rice husk ash or flyash. Each cubic metre of concrete weighs around 2,400 kg, and includes 350 kg of cement (140 kg/t), 700 kg of sand (280 kg/t), 1,200 kg of aggregate (480 kg/t) and 150 kg of water (60 kg/t).’ This gives us an idea that, clearly, concrete is not just cement, but many other things indeed!

Here are a few conclusions that one can draw from the same report:
Top 25 RMC companies in the world produced 388 million cubic metres of concrete in 2017, which was a mere 10 per cent of the global output. This tells us that the business is local in nature, and is fragmented, if we analyse market-by-market.

There are only two Indian Concrete Businesses figuring in this top 25, namely UltraTech Concrete at seventh, and ACC Concrete at 21st positions. This is an apparent anomaly, given that India is by far the second largest cement producing nation in the world, and this reflects the situation of the Indian construction market – the fact that it is unorganised, non-automated, retail and fragmented.

The list of top 25 has just a few concrete companies, which are not backed by cement manufacturing ventures, and the few that make the grade are in USA, and have aggregate supplies integrated into them. In fact, the top 10 concrete companies are all subsidiaries of bigger cement set-ups. This tells us some things about downstream integration strategies and evolution of cement delivery channels as markets mature.

In India, while the ready-mix concrete market has still a long way to go, we already find instances of cement companies integrating downstream into concrete delivery businesses, as also construction companies finding it useful to integrated upstream into RMC outfits. I am sure that many of these enterprises are discovering the truism that even if the overall value chain is profitable, individual components of that chain may be value- destroying.

Sumit Banerjee Chairman, Editorial Advisory Board

Concrete

JSW Paints to Raise Rs 33 Billion for Akzo Nobel India Deal

Funds to part-finance Rs 129.15 billion acquisition of 74.76 per cent stake.

Published

2 days ago

November 7, 2025

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JSW Paints Limited (JSWPL) plans to raise Rs 33 billion through non-convertible debentures (NCDs) to partly fund the Rs 129.15 billion acquisition of a 74.76 per cent stake in Akzo Nobel India Ltd, according to an exchange filing. The deal, which will trigger an open offer for the remaining shares, forms part of the JSW Group’s Rs 65 billion capital infusion plan.

The bonds, to be issued on Friday, are rated ‘AA– (Stable)’ by ICRA, which noted that the NCDs will carry a five-year bullet repayment, with a call/put option after three years. Only a portion of the coupon will be paid annually, with the balance payable upon redemption.

ICRA said JSW Paints’ debt servicing obligations can be comfortably met through operating profits and dividends expected from Akzo Nobel India until maturity. However, it cautioned that the company’s leverage will remain elevated at over four times in the medium term.

JSW Paints, part of the JSW Group promoted by Sajjan Jindal and led by Managing Director Parth Jindal, plays a strategic role in supplying industrial coatings to JSW Steel. To date, JSW Steel has infused Rs 7.5 billion, while South West Mining Ltd has contributed Rs 1.5 billion towards capital expenditure, debt repayment, and working capital needs.

ICRA expects continued promoter support for the acquisition, which will be financed through a mix of borrowings and equity infusion at the JSW Paints level.

Post-acquisition, JSW Paints’ business profile is expected to strengthen significantly, benefiting from operational synergies, an expanded dealer network, and access to advanced coating technologies. The merger will position the combined entity — JSW Paints and Akzo Nobel India — as India’s fourth-largest decorative paint company and second-largest in the industrial segment. The acquisition will also give JSW access to premium brands like Dulux and new segments such as vehicle refinishes and marine coatings.

In FY25, JSW Paints recorded revenues of Rs 21.55 billion. The company expects a sharp rise in FY26 and beyond, supported by synergies in manufacturing, logistics, and marketing. ICRA projects healthy double-digit operating margins by FY27, marking a strong turnaround from operating losses in FY25.

The acquisition, initially announced in June 2025, valued the 74.76 per cent stake at Rs 94 billion and received Competition Commission of India (CCI) approval on 16 September 2025. The deal is expected to close within the current financial year.

Following the transaction, the Dutch parent company of Akzo Nobel India will retain the powder coatings business and R&D centre, while JSW Paints will integrate the rest of the operations.

Concrete

SAIL Bokaro Develops New Electrical Steel Grade

BSL produces 1,100 tonnes of energy-efficient special steel.

Published

2 days ago

November 7, 2025

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Steel Authority of India Limited (SAIL) has announced that its Bokaro Steel Plant (BSL) has developed a special grade of electrical steel for the first time, marking a significant milestone in the company’s efforts to expand its portfolio of high-value and advanced steel products.

The newly developed steel is designed for use in electric motors, generators, small power transformers, electrical appliances, and rotors for hybrid and electric vehicles, contributing to enhanced energy efficiency and supporting India’s growing green mobility and energy infrastructure sectors.

In a statement, SAIL said, “The Bokaro Steel Plant has achieved a major milestone in product development by successfully producing about 1,100 tonnes of 0.5 mm thick IS 18316 LS Grade Non-Grain Oriented (NGO) Electrical Steel for the first time.”

The innovation is expected to position SAIL as a key domestic supplier of specialised electrical steel, reducing dependence on imports for critical industrial applications. It also aligns with the company’s broader strategy to move up the value chain and contribute to India’s self-reliance in advanced materials manufacturing.

The Bokaro Steel Plant’s success in developing this new grade of steel underscores SAIL’s focus on technology-driven production, quality enhancement, and sustainable industrial growth.

Concrete

Steel Ministry to Launch Third Round of PLI Scheme

New PLI phase to boost specialty steel output and cut imports.

Published

2 days ago

November 7, 2025

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The Ministry of Steel, Government of India, is set to launch the third round (PLI 1.2) of the Production Linked Incentive (PLI) Scheme for Specialty Steel, a flagship initiative under the Atmanirbhar Bharat vision. The launch will be led by Union Minister for Steel and Heavy Industries H.D. Kumaraswamy, in the presence of senior officials and industry stakeholders.

Approved by the Union Cabinet in July 2021 with an outlay of Rs 63.22 billion, the PLI Scheme aims to transform India into a global manufacturing hub for high-value, advanced steel grades. The scheme incentivises incremental production, investment, and innovation across selected product categories to enhance domestic value addition and reduce import dependence in critical sectors such as defence, power, aerospace, and infrastructure.

So far, the PLI Scheme has attracted a committed investment of Rs 438.74 billion, of which Rs 229.73 billion has already been realised, resulting in the creation of over 13,000 jobs under the first two rounds.

The scheme covers 22 product sub-categories, including super alloys, cold-rolled grain-oriented (CRGO) steel, alloy forgings, stainless steel (long and flat products), titanium alloys, and coated steels.

Under PLI 1.2, incentive rates will range from 4 to 15 per cent, applicable for five years starting from FY 2025–26, with payouts beginning in FY 2026–27. The base year for pricing has been revised to FY 2024–25 to better reflect prevailing market trends.

The third round of the PLI Scheme represents another significant step in advancing India’s self-reliance in specialty steel production, encouraging technological upgradation and private sector participation in one of the nation’s most vital industrial sectors.