Connect with us

Concrete

Concrete: Potential to grow

Published

on

Shares

No wonder, India’s concrete industry is a vital part of our economy, directly and indirectly. India has a lot of potential for development in the infrastructure and construction sector and the concrete sector is expected to largely benefit from it.

The beauty of cement is that it is always converted into value added products, and standalone use of cement is very rare. The first major value addition of cement is concrete, which is a heterogeneous mixture of different components where cement plays role of a gum. Sand and stone chips are a few other important ingredients of concrete. Sand sources across globe are depleting fast and therefore engineering community had to find an alternative and it is manufactured sand.

Ready-mix concrete is just an extension of concrete. Globally, the ready-mix concrete market is anticipated to register a CAGR of 8 per cent during the period 2017-2023. The manufacturing of ready-mix concrete and delivering it through a transit mixer allows the integration of precise concrete in construction, thus making it strong, sturdy and long lasting.

Considering the global scenario, the Asia Pacific region is estimated to acquire the major share in the global market and is predicted to retain its dominance in the long run. It is due to the rising number of latest infrastructural projects especially in economies like Singapore, India, Thailand, and China. With the rapid urbanisation and industrialisation in these areas, the market is anticipated to flourish. Moreover, the ever-increasing population, favourable government policies, high availability of skilled workforce and cheap resources, and low labour and operational costs are contributing to the market growth.

The advent of new infrastructure construction projects is also estimated to generate an inflated demand for the ready-mix concrete market. In this region, China has accounted for the lion’s share, owing to the refurbishment and expansion of old structures like railway terminals, and airports, along with the implementation of novel infrastructural projects. India is also considered as a driving cause for the market owing to the development of smart cities.

The worldwide cement production is 4.1 billion metric tonnes (2018). Assuming 75 per cent of cement is used in concrete, we can imagine the quantum of concrete produced considering typically 300 kg of cement is consumed per cubic meter.

Concrete products are often the most sustainable and have the potential for a very long service life, but because concrete is used in large quantities, its use does have a global impact.

It is interesting to know, though ready-mix concrete was patented in the year 1903, it really took off somewhere around 1960s. It gained momentum with fast-track projects where investments done were the key issue and time to complete the projects was critical. There have been many advantages of using ready-mix concrete.

Quality of concrete produced at plant is much superior to what is produced at site. There is strict control over the testing of materials, process parameters and continuous monitoring of key practices during the manufacture. Speed in the construction practices followed in ready-mix concrete plant is followed continuously by having mechanised operations. The output obtained from a site mix concrete plant using an 8/12 mixer is 4 to 5 metric cubes per hour, which is 30-60 metric cubes per hour in a ready mix concrete plant. The other advantage, cement is saved and the dust caused is reduced as ready mix concrete makes use of bulk cement instead of bags of cement. There is saving of cement on account of use of cementious materials like fly ash and slag. The other major benefit is the engineer at site is able to concentrate on engineering jobs than paying attention to material procurement and material management. There is less dependency on human labour, which leads to less of errors.

The major disadvantage of ready mixed concrete is the traffic congestions during the movement of transit of concrete can result in setting of concrete. This will hence require addition of admixtures to delay the setting period. In our country, we have additional tax on ready-mix concrete which when produced manually at site is not levied. One of the major cost components in ready-mix concrete is the transport cost, which is close to 30-35 per cent of the realisation, which is quite significant. Today ready mix business faces many challenges. The major one is shortage of sand and aggregates. The other is fulfilment of environment regulations. The citizens becoming more aware of their rights sometimes lead to conflict of interest. All of sudden the concrete producer gets a closure notice.

Precast
Precast is corollary to ready-mix concrete (For more details on precast, read Devendra Kumar Pandey’s interview in this issue). It is difficult to imagine precast factory without using a batching plant to produce concrete. The list of products coming under precast is pretty long starting from normal covers, lamp poles, railway sleepers, ready to use fence, doors and window frames, decorative facades, stair case, water tanks, toilets etc. The number of metro railway projects undergoing are using many precast shapes in the job. Precast products are factory made shapes and then transported to the locations whereas cast in situ concrete shapes are cast at locations in one monolith piece.

Precast shapes are cast in small shapes and then bolted together. It is a technology used for producing large number of pieces repeatedly. Therefore it is often used for mass housing projects. Typically in mass housing, a factory is set up close to a site, and different sections of house are produced and then assembled at location. In case if cast shapes have to be transported to a distance then precast may not turn out to be a cost-effective option. This enhances the speed of construction. Same is the case of railway sleepers. The Department of Railways have set up sleeper factories at various locations where rail tracks are being laid. Sometime special equipment are required for erection of precast shapes at site and which may be little expensive. Joining different precast shapes is another vulnerable area in precast construction. In case if cast shapes have to be transported to a distance then precast may not turn out to be a cost effective option.

In short, concrete provides us immense opportunities and imagination to make effective use of the man-made material.

VIKAS DAMLE

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Concrete

Dalmia Bharat to Buy Jaypee Cement Assets for Rs 28.5 bn

Purchase under Adani led resolution plan valued at Rs 28.5 bn

Published

on

By

Shares

Dalmia Bharat will acquire the cement assets of JAL (Jaypee Associates Limited) for Rs 28.5 bn under an Adani led resolution plan, according to company sources. The transaction involves the purchase of manufacturing facilities and associated assets that form part of JAL’s cement operations, and it is framed as a strategic acquisition within a larger insolvency resolution overseen by an Adani group consortium. The move is presented as a consolidation play in a fragmented domestic cement market.

The company indicated that the acquisition will strengthen Dalmia Bharat’s geographic footprint and supply chain, enhancing its ability to serve regional demand and optimise logistics. The assets are expected to complement the purchaser’s existing capacity and provide additional clinker and grinding resources, allowing for potential efficiency gains through integration. Executives have described the deal as aligned with a broader strategy of targeted inorganic growth.

Financially, the headline consideration converts to roughly Rs 28.5 bn, reflecting the resolution price agreed under the plan. The purchase price and related terms are structured as part of the approved resolution framework and are subject to completion formalities. The parties expect customary regulatory clearances and creditor or adjudicatory confirmations to be completed before closing, with standard conditions precedent governing the transfer of assets.

Market observers noted that the deal illustrates ongoing consolidation in the sector, where larger groups are acquiring stressed or non core assets as part of resolution processes. Such transactions are seen as a mechanism to expedite recovery of value while enabling active players to expand capacity without developing greenfield projects. The combination of strategic fit and available asset bases is likely to influence competitive dynamics in specific regional markets.

Upon completion, Dalmia Bharat will integrate the acquired operations into its existing reporting and operational framework, with the intention of preserving operational continuity. Stakeholders will monitor execution on integration, regulatory approvals and the realisation of anticipated synergies as the parties move towards finalising the transfer of assets.

Continue Reading

Concrete

Dalmia Acquires Five Point Two MnTPA Cement Assets in Central Region

Acquisition adds capacity, power and rail access

Published

on

By

Shares

Dalmia Cement (Bharat) Limited (DCBL) executed a business transfer agreement on 21 May 2026 to acquire a cement undertaking from Jaiprakash Associates Limited (JAL) and Adani Infra (India) Limited. The assets include plants at Rewa in Madhya Pradesh and Churk, Chunar and Sadwa in Uttar Pradesh with five point two million tonnes per annum (mn tpa) cement capacity and three point three mn tpa clinker capacity, plus 99 megawatt (MW) thermal power and railway sidings. The transaction carries an enterprise value of Rs 28.5 billion (bn).

DCBL, a wholly owned subsidiary of Dalmia Bharat Limited (DBL), will see cement capacity rise to 54.7 mn tpa on completion. Ongoing expansions at Belgaum, Pune and Kadapa are expected to raise capacity to 66.7 mn tpa by the second to third quarter of fiscal 2028. The company said the transaction would be consummated within two weeks.

The deal follows a framework signed in December 2022 to settle long running disputes with JAL, including a long term clinker supply arrangement. Completion was delayed when JAL entered insolvency and the earlier sale did not finalise. Following approval of a resolution plan under the Insolvency and Bankruptcy Code, DCBL executed a fresh business transfer agreement to resolve pending legal and arbitral matters.

Company statements described the acquisition as strategic, accelerating access to central markets compared with a greenfield route and offering scope for expansion through debottlenecking and brownfield investment. Proximity to the company’s captive mines and established vendor relationships should support faster ramp up. The assets should augment EBITDA delivery and enhance returns by enabling entry into newer markets with relatively better prices.

Senior executives said the addition aligned with a long term plan to build a pan India presence and would provide a head start in central markets. They noted that familiarity with the plants under earlier tolling arrangements offers operational insight and strengthens channel relationships, supporting quicker market entry. Management expressed confidence that the assets’ expansion potential would generate value for stakeholders.

Continue Reading

Concrete

Ramco Cements Reports FY26 Revenue Growth And Higher Profit

Net debt reduced as exceptional items boost FY26 earnings

Published

on

By

Shares

Ramco Cements reported standalone audited results for FY26 with net revenue of Rs 90,560 million (mn) and profit after tax of Rs 6,940 mn. EBIDTA rose to Rs 14,820 mn and blended EBIDTA per tonne was Rs 788 on a two per cent volume rise to 18.81 million (mn) tonne (t). Cement revenue increased by five per cent and construction chemicals revenue rose by 66 per cent.

Raw material cost per tonne rose to Rs 1,023 from Rs 956 mainly due to a mineral bearing land tax of Rs 160 per t in Tamil Nadu, adding about Rs 86 per t. Power and fuel cost per tonne fell to Rs 1,098 from Rs 1,123 with petcoke mix down to 47 per cent and green power up to 40 per cent.

Profit before tax after exceptional items was Rs 8,790 mn. Net exceptional items were Rs 5,530 mn, including Rs 5,740 mn from sale of surplus land and Rs 200 mn of past service cost. The company monetised Rs 10,980 mn from non core asset sales over the past two years and recorded capex of Rs 9,970 mn, with guidance of Rs 8,000 mn for FY27.

Net debt fell by Rs 8,170 mn to Rs 36,640 mn at 31 March 2026 and cost of debt eased to 7.29 per cent, reducing net debt to EBIDTA to 2.47 times. Management indicated the full impact of higher fuel costs is expected from Q2 FY27, while packing and diesel cost increases will be visible in Q1 FY27. The board has proposed a dividend of Rs two point five zero per equity share and the company flagged risks from elevated fuel and logistics costs, commodity volatility and competitive pricing.

Continue Reading

Video Thumbnail
â–¶

    SIGN-UP FOR OUR GENERAL NEWSLETTER


    Trending News

    SUBSCRIBE TO THE NEWSLETTER

     

    Don't miss out on valuable insights and opportunities to connect with like minded professionals.

     


      This will close in 0 seconds