Economy & Market

Ready to Roll

Published

8 years ago

January 2, 2019

admin

Ready-mix concrete segment is banking on the government’s environmental initiatives to take off from the present level of activity in a big way.

The construction industry has a significant role in the India’s development and it contributes about 8-10 per cent to the gross domestic product (GDP) of the country on an average. There are issues like scarcity of labourers, particularly skilled ones, in typical construction sites. In smaller towns, people use site mixes, resulting in cement and dust pollution in the locality. The pollution control agencies becoming stringent and are not allowing one to conduct site mixes enables ready-mix concrete (RMC) units to proliferate, but only in urban areas.

They are yet to make their presence felt in the construction sites in semi-urban and rural areas, where the people are not apprised of the benefits of RMCs yet.

Developing nations like India need to have faster construction with high quality assurance, durability and a pollution-free environment, which can be achieved only with RMC.

Given the government’s thrust towards infrastructure development and housing for all initiatives in the recent years, construction activity is expected to pick up pace in the times to come. Even the low per capital consumption of cement in the country at 180 kg per annum, with concrete accounting for 60 kg, is giving hope that the RMC industry has a lot of scope to expand from the present level. Per capita cement consumption in China is close to 2,000 kg per person per annum.

Capacity
The cumulative current RMC capacity is estimated at 60,000 cu.m/hr, with a relatively comparative spread of commercial and dedicated batching plants across India. RMC demand also has increased at a CAGR of 4-5 per cent," says Atul Desai is ED & CEO of Prism Johnson (RMC India Division). However, owing to inadequate awareness and soft government norms, conversion from site mix is at a very negligible pace especially in small towns and rural areas.

The RMC segment is concentrated in a few urban pockets of the country. Mumbai and Delhi alone constitute close to 45-50 per cent of total consumption in West and North respectively, whereas Bengaluru and Hyderabad put together constitute about 45 per cent of total consumption in South. Going further, tier-II and tier-III cities may catch up soon, and the concentration of capacities is expected to gradually rise in such cities too.

Key demand centres of western and southern regions are the most favourable markets for RMC business. Mumbai, Nagpur from West and Chennai, Hyderabad and Amravati from southern region are among the top ranked cities for RMC business attractiveness.

Mumbai leads the city-wise attractiveness list. Construction of multiple metro rail corridors, coastal road, trans harbour sea link and Mumbai-Nagpur Expressway to name a few projects may boost RMC demand in times to come, says Desai.

Market size
Overall economic slowdown since 2017 impacted commercial and industrial construction, combined with sluggish residential real estate activity and resulted in moderate rise in RMC market at an average of 4-5 per cent to reach an estimated Rs 215 billion (58 million cubic meters) in 2015-16, from Rs 184 billion (50 million cubic meters) in 2012-13. "This growth is anticipated to increase to 6-8 per cent CAGR touching close to Rs 300 billion (81 million cubic meters) by 2020-21. The growth in RMC demand may be primarily attributed to government-infused spending in infrastructure and expected demand from affordable housing," says Desai.

Real estate currently accounts for 60-65 per cent of RMC consumption with residential real estate occupying the majority share of 38-42 per cent. Further, while infrastructure constitutes about 32-35 per cent of RMC demand, industrial and commercial construction constituted about 26-28 per cent of the total RMC consumption in 2016-17.

Growth projections
RMC penetration, measured as the proportion of cement consumed in commercial RMC to total cement consumption in India, is expected to increase to 10 per cent by 2020-21 from the current 7 per cent on the back of healthy demand growth, increased usage in infrastructure projects and penetration of RMC plants in tier-II/ tier-III cities, consistent quality requirements, stringent project timeline, and higher focus on safety and quality norms amongst others, says Desai. RMC penetration in India has gradually risen with increasing acceptability and usage of higher grade of concrete; however, the current levels are very low compared to other developed economies such as USA, Europe and China where it is above 65-70 per cent. The biggest demand drivers for the country’s RMC and batching plant segments will be the government’s large-scale infrastructure and housing for all scheme. These infrastructure projects include the Bharatmala Pariyojana, Sagarmala, the Smart Cities Mission and the Pradhan Mantri Awas Yojana, and affordable housing. The government initiatives on the dedicated freight corridors have also provided opportunities for setting up new RMC plants across the country. With rapid urbanisation, the Indian construction industry has witnessed a major move towards complex architectural structures in commercial buildings, elevated driveways, coastal highways, bullet trains, etc., which may further fuel the demand for high performance concrete.

Organised segment
In fact, this industry is quite fragmented with unorganised segment cornering a major share of the cake. The top five RMC players are holding a market share of close to 35-40 per cent. And rest of the concrete requirement is being fulfilled by local players, said an industry source.

Majority forward integrated players with nation-wide business reach constitute organised segment, which maintains high standards of products, backed by accredited laboratories and research and development.

"Whereas, unorganised players are the local standalone ones, who cater to regional demand with smaller capacities thriving on moderate profitability. Prices are generally lower and product offerings are standard replicated ones. Desired standards and quality are rarely implemented. Safety is a big concern. Grades widely used are replicated and on-the-job training is usually carried out," says Desai.

A lot of regulations and structural changes like implementation of the Real Estate (Regulation and Development) Act (RERA), and GST that have happened in the recent past will encourage the industry to continue its growth streak. So, there is going to be much more level-playing field for major players as well. However, Desai feels that proactive measures from the government like setting stringent and well-defined QA/QC and safety norms to discourage site mix, single window clearance for RMCs and designated green zones for RMCS in urban centres would go a long way in increasing the growth of RMCs in future.

– BS SRINIVASALU REDDY

Concrete

Wonder Cement appoints Mahesh Singh as VP Corporate Brand Communication

Published

3 days ago

October 9, 2026

admin

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

4 days ago

October 8, 2026

admin

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

5 days ago

October 7, 2026

admin

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.