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The incomplete packaging solution!

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As per a study conducted, on an average, a sack would have eight to nine hook marks by the time it reaches the destination. These hook marks further lead to cement losses, thus making the working conditions of the workers from bad to worse, writes Madhvi Lijhara.

Packaging is a very generic term that has been in existence for ages now. Man has used packaging since times unknown for storage, protection, handling and so on. The ways were quite crude but served their purpose well. With the advancement of time and technology, the purpose of packaging also changed, the ways changed, the materials change and it changed the mindsets too.

Today packaging has a much bigger role to play and satisfy much higher expectations of the consumers, marketeers, manufacturers and others in the supply chain. It’s not just about protecting the goods, giving ease of storage, handling, increasing the life of the product, but also serves as a mode of communication between the manufacturer and the consumer, between the marketer and the buyer. It talks about how to use the product, why to buy the product, why to buy that particular brand, price to pay; when was that particular product manufactured and by when to use. It also takes care of the government regulations and ensures on quality and quantity of the product to the user.

Besides the above mentioned attributes of packaging, we all forget a very important aspect of packaging and that is its contribution to "environment sustainability". In India at large the cement is packed in WPP sacks. The woven polypropylene fabric, PP is a kind of thermoplastic resin material that is produced by the polymerisation of propylene. The weave in two directions of the PP threads gives the strength to the fabric, its light weight and strong enough to carry weight of cement which is high density. The pores in the weave have a role to play – while cement filling, these pores help the air to escape from the sack preventing the bursting of the sacks. But at the same time these pores also lead to cement loss at various junctures of the journey from the factory to the point of use.

On an average, from one kg to 500 grams of cement is lost while in transit. At times the loss can be even more depending on the number of hands it exchanges. This cement lost is not just an economic value lost for the user or manufacturer but it actually leads to much more intangible loss, the loss of cement particles into the environment, polluting the the air we breathe in. It’s a surprising fact that the air quality inside the cement plant is much better than the place of storage of the cement or the place of use of the cement, and the major reason is the way cement is packed. Every time the sack is moved from one place to another it leads to cement loss, so much so that the branding, printing or any information printed on eth sack becomes invisible due to a cement dust layer on the sack. Thus the way in which cement is packed destroys all the attributes of packaging.

These pores also give easy way to the moisture in the air to penetrate inside the sack and thus reducing the shelf life of the product. Cement is hygroscopic and attracts water from the atmosphere to set . Thus the purpose of protection and increasing the shelf life is defeated.

The labourers use iron hooks for loading and unloading of cement sacks even though its banned as per the government directives. As per a study conducted, on an average, a sack would have eight to nine hook marks on the sacks. These hook marks further lead to cement losses thus making the working conditions of the workers from bad to worse.

Even worse is the recycling of the cement sack, although PP is recyclable but a major issue is that the cement is all stuck in the pores of the sack and therefore the sacks cannot be recycled easily. The sack needs to be absolutely clean to be recycled. Another issue is with the collection of the empty cement WPP sacks; there is no defined process under which the cement sacks are collected after the use and taken to recycling plant. In most of the cases these sacks land up into "land-fills". The end of the "product life cycle" of a WPP cement sack is very unfriendly to our environment.

It can be concluded that the way cement is packed in India is actually an "incomplete packaging solution". All the aspects of packaging are defeated when cement is packed in WPP. It neither protects the material, neither increases the shelf life, nor does it increase the brand value; in nutshell it serves no purpose of packaging other than holding the material together and giving it a partial ease of handling; a 50 kg bag with dead weight is really tough to handle. The only driving factor for WPP sacks is the price of the sacks. But the irony is that only the "price per sack" is considered and not the "actual cost of packing" is considered. The actual cost should include the wastage in transit, its contribution to air pollution and its impact on the health of the workers. Even though the industry would agree with this but very little efforts have been made to give a sustainable packaging solution for cement. It’s the need of the hour that we look at creating more cement packaging options that justify all the attributes of packaging including the environment sustainability aspect and improved working conditions of the laborers.

ABOUT THE AUTHOR:
Madhvi Lijhara,
a paper and packaging specialist, is an economics graduate from Delhi university and a post graduate in Marketing management from Lucknow University. She has worked with paper and allied companies like APP India, Thomson Press, Ballarpur Industries (BILT) and BillerudKorsnas AB. While on the job, she has been closely associated with various cement companies promoting paper sacks for cement packaging in India. She can be contacted on: madhvi@hotmail.com

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Concrete

Lokesh Lays Stone For Rs 31 Billion Cement Unit In Kadapa

Line-2 expansion to make Kadapa a major cement hub

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Andhra Pradesh Education and IT Minister Nara Lokesh on Wednesday laid the foundation stone for the Line-2 expansion of Dalmia Bharat Cement at Chinnakomerla village in Mylavaram Mandal in Kadapa district. The project carries an investment of Rs 31 billion (bn) and is slated for completion by the third quarter of the financial year 2028. The expansion is intended to boost industrial growth and employment generation across the Rayalaseema region.

Once commissioned, the Kadapa facility will become Dalmia Bharat’s largest integrated cement manufacturing ecosystem in southern India, creating over 1,000 direct and indirect jobs and opening new business avenues for regional micro, small and medium enterprises and transport operators. Lokesh said the expansion signalled growing corporate confidence in the state and reflected the practical ease of doing business that secured repeat investment.

He placed the project within the government’s wider economic targets and recalled the Yuvagalam padayatra commitment to generate two million (mn) jobs within five years, noting that the state would cultivate talent while industry created opportunities. Lokesh highlighted Andhra Pradesh’s competitive pursuit of major manufacturing accounts, mentioning past successes and a personal initiative to engage global investors when persuading them to anchor expansion in the state.

The plant will leverage Kadapa’s abundant limestone reserves to scale production and sustainability. Clinker capacity is planned to rise from two point five million tonnes per annum (mn tpa) to six point one mn tpa, while overall cement output will increase from three point six mn tpa to nine point six mn tpa. The unit is designed to operate on over eighty per cent renewable energy and deploy waste heat recovery, zero liquid discharge, water recycling and advanced AI systems to optimise efficiency. Industries Minister TG Bharat, BC Welfare Minister S. Savitha and Jammalamadugu MLA C. Adinarayana Reddy attended the ceremony.

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Concrete

Cement Prices to Stay Flat in Q2 FY27 as Costs Squeeze Margins

HDFC Securities warns monsoon slowdown and higher fuel costs

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HDFC Securities has said the cement industry is unlikely to register a sequential increase in prices in Q2 FY27 as monsoon-related demand moderation coincides with rising fuel and packaging costs that will squeeze margins. The brokerage observed that price gains remained modest, with increases of two to three per cent quarter-on-quarter across regions, and noted subdued offtake in May with improvement in June as a delayed monsoon supported construction activity. The brokerage added that modest pricing gains so far have been insufficient to offset the input cost escalation.

The report stated that input cost pressures intensified in Q1 FY27 owing to the West Asia conflict, which pushed up coal and pet coke prices and is expected to keep fuel costs elevated, with a likely peak in Q2 FY27. It assessed that total variable costs, including packing, could rise by around Rs 150 per t quarter-on-quarter and that lower offtake and seasonal operating deleverage could further raise operating expenditure by about Rs 50 per t quarter-on-quarter.

Overall, cement prices were estimated to remain flat in Q2 FY27 as monsoon-led demand weakness offsets limited upside in realisation, and rising fuel costs alongside seasonal deleverage were expected to compress industry margins by over Rs 100 per t quarter-on-quarter to below Rs 880 per t. The brokerage indicated that the combined impact of energy inflation and higher packing expenditure would be the principal drivers of margin contraction in the near term. HDFC Securities projected a recovery in margins in H2 FY27 should the West Asia turmoil subside and energy and packing costs cool off.

The brokerage expressed optimism on long-term demand fundamentals and said improving realisation together with an anticipated cost cool-off should support a margin rebound from H2 FY27 onward, underpinning favourable industry prospects over the medium term. Its outlook rests on monsoon normalisation and a decline in imported fuel prices in the second half of the fiscal year.

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Concrete

Dalmia Bharat Begins Rs 31 Bn Green Cement Unit in Kadapa

New Andhra Pradesh plant to add 9.6 MTPA cement capacity by FY28

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Dalmia Bharat Limited recently laid the foundation stone for its second manufacturing unit at Kadapa in Andhra Pradesh. The company will invest Rs 31 billion in developing the next-generation integrated cement manufacturing facility.
The foundation-laying ceremony was attended by Nara Lokesh, Andhra Pradesh Minister for Information Technology, Electronics and Communications, Real-Time Governance and Human Resources Development, along with Puneet Dalmia, Managing Director and Chief Executive Officer, Dalmia Bharat, senior government officials and company representatives.
Scheduled to be commissioned by the third quarter of FY28, the Kadapa unit will become Dalmia Bharat’s largest integrated manufacturing facility in southern India. It will have a clinker production capacity of 6.1 million tonnes per annum and a cement manufacturing capacity of 9.6 million tonnes per annum.
The facility is designed to produce what the company describes as one of the world’s greenest cements. It is also expected to generate approximately 1,000 direct and indirect employment opportunities while supporting local MSMEs, transporters, contractors and service providers.
Lokesh said the investment reflected Dalmia Bharat’s confidence in Andhra Pradesh and aligned with the state’s objective of promoting sustainable industrialisation, job creation and technology-led economic growth.
Puneet Dalmia said the project represented the company’s long-term vision of developing low-carbon cement manufacturing assets. He added that the facility would establish new benchmarks in operational efficiency and sustainability while supporting India’s infrastructure and environmental goals.
Dalmia Bharat will also expand its regional community development programmes in education, healthcare, skill development and welfare through its DIKSHa and Gram Parivartan initiatives.
The company currently has an installed cement manufacturing capacity of 54.7 million tonnes across 19 manufacturing units in 12 states. It is also the first cement company globally to commit to the RE100, EP100 and EV100 initiatives.

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