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Concrete: Potential to grow

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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

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Concrete

Sambhv Steel Tubes is Now Certified as a Great Place to Work

This certification, valid from January 2025 to January 2026.

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Sambhv Steel Tubes Limited, one of the key manufacturers of electric resistance welded (“ERW”) steel pipes and structural tubes (hollow section) in India in terms of the installed capacity as of March 31, 2024 (Source: CRISIL Report) is pleased to announce that it has been officially certified as a “Great Place to Work® for 2025. 
This certification, valid from January 2025 to January 2026, is a testament to the company’s commitment to fostering a workplace environment built on trust, collaboration, innovation, and employee well-being. Sambhv Steel Tubes also invites talented professionals who share its values of trust, collaboration, and innovation to join its team and be part of its growth journey. The Great Place to Work® certification is a recognized benchmark for workplace excellence. It is awarded based on employee feedback and an evaluation of workplace practices. Achieving this certification underscores Sambhv Steel Tubes’ dedication to nurturing a culture where Sambhv Steel strives to ensure that employees feel valued, supported, and empowered to grow both personally and professionally 
The DRHP is available on the website of the Company at www.sambhv.com, SEBI at www.sebi.gov.in, websites of BSE Limited at www.bseindia.com and National Stock Exchange of India Limited at www.nseindia.com and the website of the book running lead managers, i.e. Nuvama Wealth Management Limited and Motilal Oswal Investment Advisors Limited at www.nuvama.com and www.motilaloswalgroup.com, respectively. Any potential investor should note that investment in equity shares involves a high degree of risk and for details relating to such risk, please see the section entitled “Risk Factors” of the RHP, when filed. Potential investors should not rely on the DRHP for making any investment decision. This announcement does not constitute an offer of the Equity Shares for sale in any jurisdiction, including the United States, and the Equity Shares may not be offered or sold in the United States absent registration under the US Securities Act of 1933 or an exemption from registration. 
Any public offering of the Equity Shares to be made in the United States will be made by means of a prospectus that may be obtained from the Company and that will contain detailed information about the Company and management, as well as financial statements. However, the Equity Shares are not being offered or sold in the United States. CRISIL Market Intelligence & Analytics (CRISIL MI&A), a division of CRISIL Limited, provides independent research, consulting, risk solutions, and data & analytics to its clients. CRISIL MI&A operates independently of CRISIL’s other divisions and subsidiaries, including, CRISIL Ratings Limited.
Image Source: Sambhv Steel Tubes

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Cement Industry Key to Growth, Jobs, and Nation Building in Budget

Budget presents opportunities for cement sector in growth, jobs, and infra.

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The Cement Manufacturers’ Association (CMA) welcomes the Union Budget 2025-26 presented by the Honourable Finance Minister Nirmala Sitharaman. CMA Member Companies have been at the forefront of nation building by significantly contributing to infrastructure development, employment generation, and economic growth. CMA believes that the Budget presents a commendable vision for India’s development through strategic investments in people, economy, and innovation.
Commenting on the Budget, Neeraj Akhoury, President, Cement Manufacturers’ Association (CMA) and Managing Director, Shree Cement Limited, stated, “CMA hails the Union Budget, announced under the leadership of Prime Minister Narendra Modi for its comprehensive focus on holistic and inclusive development. The Budget reinforces a transformative journey towards building a resilient economy for advancing India’s development goals. The various initiatives announced by the Government balance people’s aspirations with the future requirements for the Country’s economic growth. The focus on increased investments on infrastructure across States amplifies opportunities and avenues for the growth of the Cement sector. We appreciate the sustained core focus on infrastructure and reiterate our commitment to being partners in Nation’s progress.<p></p>
<p>The increased spending on large scale housing and infrastructure projects will drive demand for construction materials allowing capacity expansion and promotion of innovation in sustainable practices. We are certain that despite challenges these measures will support the Cement Industry in achieving a consistent CAGR growth rate of more than 6 per cent of installed cement capacity in the present financial year. Policy reforms in Budget 2025-26 signal a reaffirmation of the Government’s intent to augment socio economic growth across core sectors.”
The Cement Industry plays a vital role in creating direct and indirect employment across various sectors, including manufacturing, logistics, and construction, thereby supporting millions of livelihoods. Additionally, the industry remains a key contributor to the Government exchequer through taxes, duties, and levies, strengthening the country’s fiscal framework.
Parth Jindal, Vice President, Cement Manufacturers’ Association (CMA) and Managing Director, JSW Cement Limited, said, “The Budget presented by Finance Minister Smt. Nirmala Sitharaman is a forward-looking roadmap that will play a pivotal role in shaping the future of India’s cement industry, in line with the country’s vision for a Viksit Bharat by 2047. It prioritizes growth in key sectors such as infrastructure, manufacturing, and technology. The increased investment in technology will accelerate advancements in green cement solutions, driving both sustainability and innovation within the industry. Notable allocations, including Rs 200 billion to foster innovation and Rs 1.5 billion in 50-year interest-free loans to states for capital expenditure on infrastructure development, are expected to significantly bolster growth in the core sectors, including cement sector.
He further added, “The Budget’s focus on a three-year pipeline of projects under the public-private partnership (PPP) model will incentivize private sector investment and catalyse a transformation in the infrastructure landscape. Additionally, the establishment of five National Centers of Excellence for skill development, as part of the ‘Make for India, Make for the World’ initiative, will ensure that India’s emerging workforce is well-equipped to meet the demands of a rapidly growing economy.”
In light of the recent Budget announcements, which prioritise infrastructure expansion and affordable housing, the Cement Industry is poised to leverage these opportunities by ensuring steady and sustained supplies of Cement to meet the Nation’s growing domestic market and infrastructure demand coupled with sustainable and innovative technologies. With a strong commitment to sustainability and efficiency, the Cement Industry will continue to drive India’s progress and economic resilience.

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Concrete

GMDC Inks Long-Term Limestone Supply Deal With JK Cement

The agreement has been signed for supply of 250 million tonne.

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State-owned GMDC said it has entered into a long-term pact with JK Cement Ltd for the supply of limestone from its upcoming mine in Gujarat. 
The agreement has been signed for supply of 250 million tonnes of limestone over a period of 40 years from its upcoming Lakhpat Punrajpur Mine in Lakhpat Taluka of Kutch district in Gujarat. 
This agreement will help JK Cement Ltd in setting up an integrated mega-capacity cement plant, fostering industrial growth in the region.Kutch’s coastal proximity, improved access to domestic and international markets, and cost-efficient logistics position it as an ideal hub for cement production. 
The state-owned company has five operational lignite mines in Kutch, South Gujarat, and Bhavnagar region.          

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