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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

Cement Makers’ Margins To Fall Rs 50-75 Per Tonne Amid West Asia Conflict

Crisil Sees Margins Easing Despite Steady Demand

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Crisil said operating margins of Indian cement manufacturers are expected to decline by Rs 50-75 per tonne (t) this fiscal to Rs 925-950 per t due to higher input costs triggered by the West Asia conflict. The analysis covered 18 cement companies accounting for nearly 90 per cent of India’s domestic cement capacity and noted margins had improved sharply to around Rs 1,000 per t in fiscal 2026.

Crisil noted that the reduction would be driven mainly by higher power and fuel costs, which account for about 30 per cent of total costs, as petcoke and imported coal prices have surged amid geopolitical uncertainties. Freight costs, which account for about a quarter of total costs, are also expected to remain elevated because of higher diesel prices. The impact on profitability is likely to be more pronounced in the first half of the fiscal year before easing commodity prices moderate cost pressures later.

The rating agency said steady domestic demand and strong balance sheets should keep credit profiles stable despite the moderation in margins. Green energy currently accounts for 35-40 per cent of the sector’s total electricity consumption and is expected to partly cushion higher energy costs. Operating cash flows are likely to remain resilient, supported by projected 6-7 per cent growth in cement demand this fiscal.

Crisil highlighted that demand growth will be driven primarily by infrastructure spending, which meets about one-third of sector consumption, and by a nearly 18 per cent higher budgetary allocation for core ministries that should support project execution. Weaker rural housing demand amid pressure on agricultural incomes from a possible below-average monsoon may be offset by improved urban housing demand supported by favourable home-loan rates and a strong pipeline of Pradhan Mantri Awas Yojana-Urban projects. Ongoing capacity additions will keep capital expenditure elevated and may lift net debt to EBITDA to between 1.2 and 1.4 times from around 1.0 time last fiscal, though ratios are expected to remain healthy.

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Concrete

UltraTech Board Approves Rs 50 bn Fundraise Via NCDs

Company to issue half a million debentures for expansion plan

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UltraTech Cement’s board of directors has approved raising Rs 5,000 crore (Rs 50 bn) through non?convertible debentures issued in rupees.

The finance committee cleared a proposal to issue up to 500,000 fully paid, unsecured, listed, rated, redeemable, rupee?denominated, non?convertible, non?cumulative debentures of Rs 1 lakh each (Rs 0.1 mn each), aggregating to the Rs 5,000 crore programme.

As of June 2026 the firm reported net debt of Rs 15,875 crore (Rs 158.75 bn) and said its capacity expansion projects under execution are backed by capital expenditure of about Rs 17,000 crore (Rs 170 bn) over the next two to two?and?a?half years.

UltraTech spent Rs 9,500 crore (Rs 95 bn) on capital expenditure in financial year 2026 and in April the group crossed 200.1 mn tonnes per annum of domestic grey cement capacity and 205.5 mn tonnes per annum of global capacity.

The chief financial officer indicated the company would take consolidated capacity beyond 242 mn tonnes per annum, with grey cement capacity reaching 212.7 mn tonnes per annum by the end of financial year 2027. He noted the net debt?to?earnings before interest, taxes, depreciation and amortisation ratio stood at 0.87 times as of June 2026 and the company was confident of ending financial year 2027 with the ratio below one time.

In the first quarter of financial year 2026?27 UltraTech’s net profit attributable to owners rose 16.8 per cent year?on?year to Rs 2,599.3 crore (Rs 25.993 bn) and revenue from operations increased 15.9 per cent to Rs 24,648.20 crore (Rs 246.482 bn). The board approval is expected to complement internal cash flows as the company advances its expansion programme.

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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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