Economy & Market

Influencers play a major role in distribution channels

Published

7 years ago

January 3, 2019

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Strategy-wise, focussing on a particular region can work in favour of the cement manufacturers to improve its market share, however, according to Nilesh Narwekar, CEO, JSW Cement, this can happen only with strong network and assured cement demand.

What are the various experiments and innovations being tried out by the company to make their entire distribution channel an exciting proposition?
In terms of consuming segments, we have individual home buyers and small masons and contractors. On the other hand, we also have larger masons, larger contractors and builders. That said, we have direct consumers such as large institutions and large size infrastructure companies. So, this is the entire spectrum in terms of consuming segments.

As I move to institutional or large consumer base, the approach typically is more classic B2B where a company would want to go directly approach large consuming segments and sell product in bulk. These consumers (B2B) understand the economics, the cost benefit and understand the trade. In addition, such consumer base has a specific cement characteristic required for their projects. Here, to sell cement to B2B category, one has to be techno-commercially qualified.

That said, for a consumer base of individual home buyers, small-scale masons, and contractors, we typically have an approach similar to FMCG segment. This is mainly because, this segment is scattered with vast geographical reach. Here we target the primary customer as first point-of-sale.In turn, this consumer base will sell it to the secondary are retailers or sub-dealers. Here, the individual home buyers or the small masons and contractors either buy cement from sub-dealers or primary level.

Now, particularly for this segment, it becomes critical for a cement manufacturer to reach primary and secondary layer as it has a direct logistics bearing, a cost per tonne. That said, it is also necessary how a cement manufacturer attract enough primary and secondary layer to be a part of wanting to sell a particular brand. This is the first aspect.

The second aspect is whether cement manufacturers are able to attract and convince the primary and secondary layer stock cement brands and sell it to the consumers. However, it all depends on how a cement manufacturer services their needs by providing adequate room for margins, creating demand for a particular cement product and keeping the return on investment intact.

But when it comes to these two aspects, how cement manufacturers attract primary and secondary layers? And how critical is to reach them efficiently?
There are different ways in which we can potentially do that. Let me pick the first part. At the end of the day, primary and secondary layers are businessmen. They want to sell a product which is reputed and how this association with the product would uplift the geographic presence. So the onus is on cement player in investing creating adequate amount of demand with awareness for secondary layer, which is critical aspect as the demand for cement products are not as high as FMCG products. An FMCG product’s sales work more on a recall value, however, for cement although the recall values is important, as for a home buyer or contractor it’s a once-in-a-lifetime investment. So here, cement companies should be intelligent enough how to convince consumer to buy a particular cement product.

That is where influencers play a very critical role. As a company what is the kind of connect that the company has in the geography of my primary and secondary customer, what is the kind of connect company has with influencers, how well are they able to establish the connect that in case if consumers wants to come and buy as a influencer, how strongly you recommend a specific product. So it is not as easy as saying just distribute by product one time and everything will happen.

I am yet to here on the kind of innovation taking place in distribution channels…
What we have witnessed is cement manufacturers go around, identifying primary and secondary customers across the geography and apply certain FMCG principles. Here, by creating awareness across the geography for a particular cement brand coupled with adequate demand, influencers play an important role.

So how do I reach primary and secondary layers in a most cost-effective manner?
There are two ways a cement player can do it. Consider this: if cement player’s geography is limited, then it will be more beneficial for the manufacturers to move its cement from source with a best and cheapest route along with efficient transport management. Means, as a cement player, instead of selling my X million tonne in pan-India, the same can be sold in a designated geography. From sales perspective, it will be difficult, but if I have a strong network with assured demand from the region, my market share and volumes will increase in the region. However, it’s a double-edged sword.

Correct! It may backfire too…
But, as a largest cement producer, you have to take risk and protect the interests of your primary and secondary layers. And, that is why I am more emphasising on ensured large distribution channels, resources and off take of cement. The impact in terms of the return that I generate for the rupee that I spend will be much higher here. So everyone gets it intuitively but implementing it is a challenge. This is something which all cement companies in their own way are attempting to do. We are doing, and many other companies are doing.

Meanwhile, RMC, as a medium of the distribution channel is a successful example in western and European countries. Do you think, the same can be a replicated in India? What are the steps need to be addressed to make it more successful?
RMC, as a philosophy, is well estranged in metros and that is how it will grow. But for RMC it’s not an easy cakewalk in India. This is mainly because, if you have an individual home buyers as a consumer segment, RMC will not work out in your favour. RMC can be successful where you have bulk demand. For example, demand for large infrastructure projects. RMC would be more useful for programmes like Bharatmala, Sagarmala, development in eastern region etc., where demand is on a grater scale. Other than this, large metro cities too can chip in its contribution attracting RMC considering skyscraper and envisaged infrastructure projects.

– RAHUL KAMAT

Concrete

Cement Makers Reaffirm Commitment to Sustainable Growth

Published

5 days ago

June 5, 2026

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World Environment Day spotlight on innovation and circularity

On World Environment Day, the Indian cement industry reiterated its commitment to supporting India’s climate ambitions through sustainable manufacturing, resource efficiency and the adoption of cleaner technologies.

The Cement Manufacturers’ Association (CMA) said the sector remains aligned with the Government of India’s Net Zero commitments and is accelerating efforts to reduce its environmental footprint while supporting the country’s infrastructure and development agenda.

Parth Jindal, President, CMA and Managing Director, JSW Cement, said the industry is increasingly adopting cleaner technologies, improving energy efficiency and expanding the use of alternative fuels and raw materials. He also highlighted the growing importance of circular economy practices, where industrial by-products and waste streams from one sector are utilised as resources in another.

“The Indian Cement Industry is aligned to the Government’s commitments on carbon mitigation and is accelerating the adoption of cleaner technologies, resource efficiency and circular economy practices while actively exploring the potential of Carbon Capture, Utilisation and Storage (CCUS) as a critical pathway for deep decarbonisation,” said Jindal.

He added that coprocessing industrial waste and by-products helps conserve natural resources, reduce disposal requirements and lower the environmental footprint across multiple sectors.

According to Jindal, sustainability is no longer limited to manufacturing processes but is increasingly influencing investment decisions, innovation strategies and long-term growth plans within the industry.

Echoing similar views, Dr Raghavpat Singhania, Vice President, CMA and Managing Director, JK Cement, said sustainable development extends beyond emissions reduction and must also focus on responsible resource utilisation and waste minimisation.

“Sustainability in the built environment cannot be measured by emissions alone. It is equally about how efficiently we use resources, how effectively we minimise waste and how responsibly we create the infrastructure that will serve future generations,” said Singhania.

He noted that the cement industry is advancing its sustainability agenda through greater resource efficiency, increased circularity, technological innovation and continuous improvements in manufacturing practices. As a key contributor to India’s infrastructure development, the sector has a critical role to play in balancing economic growth with environmental responsibility.

On the occasion of World Environment Day, industry leaders reaffirmed their commitment to supporting India’s climate goals while delivering the materials required for resilient, durable and sustainable infrastructure.

Concrete

Building a Greener Future Together

Published

6 days ago

June 4, 2026

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Environmental sustainability requires immediate action, not just long-term commitments and discussions. Recycling, circular economy practices, and technology-driven waste management can help industries reduce environmental impact while supporting sustainable growth.

Author: Jignesh Kundaria, Director and CEO, Fornnax Technology

World Environment Day serves as an important reminder that environmental sustainability can no longer remain confined to discussions, reports, or long-term commitments. The environmental challenges facing the world today demand immediate, measurable, and collective action. Across industries and communities, waste generation continues to outpace our ability to process it responsibly, placing increasing pressure on ecosystems, natural resources, public health, and the well-being of future generations.

One of the most significant shifts required today is a change in how society perceives waste. Rather than being viewed as a material to be discarded, waste must be recognised as a valuable resource that can contribute to both economic growth and environmental protection when managed through the right technologies and systems. This mindset forms the foundation of the circular economy model that countries across the world are increasingly adopting to reduce landfill dependence, recover valuable materials, and create more sustainable industrial ecosystems.

India has made meaningful progress in strengthening awareness around sustainability, recycling, and environmental responsibility over the past decade. Significant efforts are being made to formalise the recycling sector through improved infrastructure, technology adoption, policy implementation, and broader stakeholder participation. These developments are creating a stronger foundation for responsible waste management and resource recovery across the country.

However, achieving long-term environmental impact requires collaboration from all stakeholders. Industries, policymakers, technology providers, and communities must work together with greater accountability to strengthen recycling ecosystems, encourage responsible waste management practices, and create sustainable outcomes through consistent execution rather than temporary interventions.

As someone closely associated with the recycling industry, I firmly believe that technology will play a decisive role in addressing future environmental challenges. Advanced recycling systems have the potential to recover valuable resources, reduce pollution, minimise landfill burdens, and conserve energy, creating a more sustainable future for generations to come. This belief is deeply reflected in Fornnax’s motto, “Committed to Create a Green Future,” which embodies our commitment to building long-term environmental value through innovation and responsible action.

At the same time, technology alone cannot deliver meaningful change. Real progress requires intent, awareness, participation, and a shared sense of responsibility. Sustainable development can only be achieved when innovation is supported by collective action and a genuine commitment to environmental stewardship.

On this World Environment Day, let us move beyond conversations and take meaningful steps towards creating a cleaner, greener, and more sustainable planet. By embracing innovation, strengthening recycling ecosystems, and acting responsibly today, we can create lasting environmental impact and secure a better future for generations to come.

Concrete

Dalmia Bharat Acquires Jaiprakash Associates Cement Assets for ₹2,850 Crore

Published

2 weeks ago

May 25, 2026

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Dalmia Cement executed a Business Transfer Agreement with Jaiprakash Associates and Adani Infra, to acquire 5.2 MnTPA of cement capacity across Madhya Pradesh and Uttar Pradesh.

Dalmia Cement (Bharat) announced on May 22, 2026 that it had signed a Business Transfer Agreement with Jaiprakash Associates Limited and Adani Infra (India) Limited for the acquisition of cement plants located at Rewa in Madhya Pradesh and Churk, Chunar and Sadwa in Uttar Pradesh. The deal was struck at an enterprise value of ₹2,850 crore and is expected to close within two weeks of execution.

The acquired assets from Jaiprakash Associates include 5.2 MnTPA of cement capacity and 3.3 MnTPA of clinker capacity. The package also covers 99 MW of thermal power capacity and railway sidings at Rewa, Chunar, and a common siding at Churk. This infrastructure gives the acquisition immediate operational utility beyond just production tonnage.

The transaction has a long backstory. Dalmia Cement had originally entered into a framework agreement with Jaiprakash Associates in December 2022, covering the sale of these business assets along with a long-term clinker supply arrangement. However, before the deal could be completed, Jaiprakash Associates was admitted to insolvency proceedings under the Insolvency and Bankruptcy Code. The earlier agreements could not be consummated as a result.

In an official statement, Puneet Dalmia, Managing Director & CEO, Dalmia Bharat, said, “I am very excited about addition of these assets in our portfolio. This serves as a great strategic fit for Dalmia. It helps us move forward in our journey to be a pan India player and provide a strong head start to serve the high potential markets in Central region. I am optimistic that the expansion potential of these assets along with close proximity with Dalmia’s captive mines will help us create a capacity hub for the future”.

Following the approval of Adani Group’s resolution plan for Jaiprakash Associates under the IBC framework, Dalmia approached the new management to revive discussions. The fresh Business Transfer Agreement was executed to settle all pending disputes, legal proceedings, and arbitration matters arising from the original framework agreement with Jaiprakash Associates.

Expanding market reach

Dalmia added, “Our familiarity with these assets under the earlier tolling arrangement gives us a deep understanding of the facilities and helps us establish strong connect with channel partners and vendors. We believe that this will help us in faster ramp up of capacities and quicker inroads into the market. As we look forward, I am very confident that we will be able to leverage the strengths of Dalmia to operate these assets in a manner where we can maximise value creation for all our stakeholders.”

With the addition of these plants, Dalmia Bharat’s total installed cement capacity will rise to 54.7 MnTPA upon consummation. The company has further expansion projects underway at Belgaum, Pune, and Kadapa, which are expected to take overall capacity to 66.7 MnTPA by Q2 to Q3 FY28.

The Central India location of the Jaiprakash Associates plants gives Dalmia Bharat faster access to markets in Madhya Pradesh and Uttar Pradesh than a greenfield build would have allowed. The company also cited debottlenecking and brownfield expansion as near-term opportunities at the acquired sites. Dalmia Bharat said the assets were expected to contribute positively to EBITDA and overall returns, given the pricing environment in the region and the company’s cost structure.