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BOOM, BOOT, BOO, EPC, PPP, LSTK…

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Tongue-twisters or cannon-balls? Neither. But, people who are from projects background know that these are acronyms of various different categories of projects. An understanding of these categories is quite important in the context of project management practices.

Forms of projects, classified on patterns of Ownership and Financing, are:

  • BOT – Build Operate Transfer
  • BOOT – Build Own Operate Transfer
  • BOO – Build Own Operate
  • BLT – Build Lease Transfer
  • DBFO – Design Build Finance Operate
  • DBOT – Design Build Operate Transfer
  • DCMF – Design Construct Manage Finance

On the other hand, going by contracting/execution philosophy, projects are grouped into:

  • PPP
  • EPC
  • EPCM
  • EPCI
  • LSTK

Why do we need to know and understand these jargon? Without a knowledge of these names and categories, we shall be unable to differentiate between different types of projects, and will also fail to capture the implications of these names in the way accountability devolves between owner, developer and contractor. Take for example, the two types under PPP and EPC, which can be discussed and distinguished. It will be an interesting comparison because The National Highways Authority of India (NHAI) has been using both these modes in their tenders for road projects in our country, over the last decade.

First, let us develop an understanding, and then we may analyse and compare these two terms. PPP is Public Private Partnerships, where a Government body and a private entity sign up to jointly develop, finance, execute and operate a (mostly) infrastructure project, and thus an entity called concessionaire is created (sometimes also called an SPV – special purpose vehicle). The contract demarcates the responsibilities of the two partners, and in most cases, the public partner assumes the preparatory works like land acquisition, statutory approvals, political resolution of issues, etc., in addition to overall tracking of the work to be done by the private partner. The public partner may or may not be bringing in any hard equity other than land, etc. The private agency invests money, obtains financing, executes the project and runs the assets thus created for a pre-defined period of time in order to realise a return on its financial investments. The Pvt Agency decides the contracting philosophy during execution, like say, EPC/LSTK/packages, etc.

EPC mode, on the other hand, is when NHAI competitively bids out a given highway on defined scope of Engineering, Procurement and Construction only, and the subsequent job of maintenance and toll collection, etc. can be tendered out separately. We can see that there is vast difference in scope between these two.

Primarily, projects which are financially viable are handed out as PPP’s while others where prima-facie viability is in question, EPC bids are invited. In 2012-13, when many developers of road projects were reeling under huge debt-burden, and did not have appetite for bidding in new PPP road projects, NHAI had to resort to large-scale EPC tendering to keep up the tempo of building highways. In the urban transportation sector, in Mumbai, the two cases of Mumbai Metro Line One, which was tendered as a PPP project and the Monorail project, which was tendered as EPC Project, are also very good examples that amply illustrate this discussion. The first one, considered viable, was won by Reliance Infrastructure in a PPP-bidding process, while the other one, which was financially not so sound, was won by L&T-SCOMI on competitive EPC-bidding mode. In the end, however, both these two projects got inordinately delayed primarily due to right-of-way issues, leaving us none the wiser about which mode was better from execution perspective.

As we can see, any study of project management will remain incomplete without an understanding of various types of ownership, financing, and execution of projects. Why not, therefore, take a look at some other types!

BOOT
A BOOT structure differs from BOT in that the private entity owns the works. During the concession period, the private company owns and operates the facility with the prime goal to recover the costs of investment and maintenance while trying to achieve a reasonable margin on the project. The specific characteristics of BOOT make it suitable for infrastructure projects like highways, roads, mass transit, railway transport and power generation and as such they have political importance for the social welfare impact but are not attractive for other types of private investments. BOOT and BOT are methods that find very extensive application in countries which desire ownership transfer.

Some advantages of BOOT projects are:

  • Encourage private investment
  • Inject new foreign capital to the country
  • Transfer of technology and know-how
  • Completing project within time frame and planned budget
  • Providing additional financial source for other priority projects
  • Releasing the burden on public budget for infrastructure development

BOO
In a BOO project, ownership of the project remains usually with the project company for example a mobile phone network. Therefore the private company gets the benefits of any residual value of the project. This framework is used when the physical life of the project generally coincides with the concession period. A BOO scheme involves large amounts of finance and long payback period. Some examples of BOO projects come from the water treatment plants. This facilities run by private companies process raw water, provided by the public sector entity, into filtered water, which is afterwards returned to the public sector utility to deliver to the customers.

Trying to define all these various types of projects and contracts may turn out to be quite lengthy, but before we sign off for the month, I would like to add here something from my experience in steel and cement sectors. Companies which have very strong engineering and project management and coordination set-ups, will like to save costs by implementing a large project thru many "Packages" and will take full ownership and accountability for its success or failure. Conversely, companies which are not so confident, or do not have strong project teams, or wishes to shirk responsibility, may opt for EPC contracts, and they have to accept an increase of at least 15 per cent additional cost for doing this. That is, truly speaking, the cost of coordination, management, and avoidance of accountability.

– SUMIT BANERJEE

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Concrete

Cement Margins Seen Rising 12–18 per cent in FY26

Healthy demand and GST cut to boost cement profits per tonne.

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Cement companies’ operating profit for fiscal year 2026 (FY26) is projected to grow by 12–18 per cent, reaching Rs 900–950 per metric tonne (MT), supported by robust demand, improved realisations, and stable input costs, according to ratings agency Icra.
In FY25, operating profit before interest, depreciation, tax and amortisation (OPBIDTA) stood at Rs 806 per MT, declining 16 per cent year-on-year due to weak realisations amid an extended monsoon and subdued government capital expenditure during the general elections.
Icra’s sample covers ACC, Ambuja Cements, JK Cements, JK Lakshmi Cement, The Ramco Cements, UltraTech Cement, Dalmia Bharat, Birla Corporation, Shree Cement, Sagar Cements, and Heidelberg Cement India, which together account for 74 per cent of industry capacity.
The recent GST cut on cement is expected to lower rural housing construction costs by 0.8–1.0 per cent, boosting volumes and supporting additional capacity. Average cement realisations are expected to rise 3–5 per cent in FY26.
Cement volumes increased by 8.5 per cent in the first five months of FY26, driven by strong demand from housing and infrastructure projects, despite early monsoons in some regions. During this period, cement prices rose 7.4 per cent year-on-year, particularly in northern and eastern markets. Input costs, especially for pet coke and freight, remain sensitive to global crude price movements and geopolitical factors.
Anupama Reddy, vice-president and co-group head of corporate ratings at Icra, said: “With the GST rate cut from 28 per cent to 18 per cent expected to be passed on to consumers, the average retail price of cement, currently Rs 350–360 per bag, will offer savings of Rs 26–28 per bag. Driven by strong demand, capacity additions may rise to 41–43 million metric tonnes per annum (MMTPA) in FY26 from 31 MMTPA in FY25, with the eastern region leading the growth in grinding capacity.”

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Adani’s Strategic Emergence in India’s Cement Landscape

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Milind Khangan, Marketing Head, Vertex Market Research, sheds light on Adani’s rapid cement consolidation under its ‘One Business, One Company’ strategy while positioning it to rival UltraTech, and thus, shaping a potential duopoly in India’s booming cement market.

India is the second-largest cement-producing country in the world, following China. This expansion is being driven by tremendous public investment in the housing and infrastructure sectors. The industry is accelerating, with a boost from schemes such as PM Gati Shakti, Bharatmala, and the Vande Bharat corridors. An upsurge in affordable housing under the Pradhan Mantri Awas Yojana (PMAY) further supports this expansion. In May 2025, local cement production increased about 9 per cent from last year to about 40 million metric tonnes for the month. The combined cement capacity in India was recorded at 670 million metric tonnes in the 2025 fiscal year, according to the Cement Manufacturers’ Association (CMA). For the financial year 2026, this is set to grow by another 9 per cent.
In spite of the growing demand, the Indian cement industry is highly competitive. UltraTech Cement (Aditya Birla Group) is still the market leader with domestic installed capacity of more than 186 MTPA as on 2025. It is targeted to achieve 200 MTPA. Adani Cement recently became a major player and is now India’s second-largest cement company. It did this through aggressive consolidation, operational synergies, and scale efficiencies. Indian players in the cement industry are increasingly valuing operational efficiency and sustainability. Some of the strategies with high impact are alternative fuels and materials (AFR) adoption, green cement expansion, and digital technology investments to offset changing regulatory pressure and increasing energy prices.

Building Adani Cement brand
Vertex Market Research explains that the Adani Group is executing a comprehensive reorganisation and consolidation of its cement business under the ‘One Business, One Company’ strategy. The plan is to integrate its diversified holdings into one consolidated corporate entity named Adani Cement. The focus is on operating integration, governance streamlining, and cost reduction in its expanding cement business.
Integration roadmap and key milestones:

  • September 2022: The consolidation process started with the $6.4 billion buyout of Holcim’s majority stakes in Ambuja Cements and ACC, with Ambuja becoming the focal point of the consolidation.
  • December 2023: Bought Sanghi Industries to strengthen the firm’s presence in western India.
  • August 2024: Added Penna Cement to the portfolio, improving penetration of the southern market of India.
  • April 2025: Further holding addition in Orient Cement to 46.66 per cent by purchasing the same from CK Birla Group, becoming the promoter with control.
  • Ambuja Cements amalgamated with Adani Cement: This was sanctioned by the NCLT on 18th July 2025 with effect from April 1, 2024. This amalgamation brings in limestone reserves and fresh assets into Ambuja.
  • Subject to Sanghi and Penna merger with Ambuja: Board approvals in December 2024 with the aim to finish between September to December 2025.
  • Ambuja-ACC future integration: The latter is being contemplated as the final step towards consolidation.
  • Orient Cement: It would serve as a principal manufacturing facility following the merger.

Scale, capacity expansion and market position
In financial year-2025, Adani Cement, including Ambuja, surpassed 100 MTPA. This makes it one of the world’s top ten cement companies. Along with ACC’s operations, it is now firmly placed as India’s second-largest cement company. In FY25, the Adani group’s sales volume per annum clocked 65 million metric tonnes. Adani Group claims that it now supplies close to 30 per cent of the cement consumed in India’s homes and infrastructure as of June 2025.
The organisation is pursuing aggressive brownfield expansion:

  • By FY 2026: Reach 118 MTPA
  • By FY 2028: Target 140 MTPA

These goals will be driven by commissioning new clinker and grinding units at key sites, with civil and mechanical works underway.
As of 2024, Adani Cement had its market share pegged at around 14 to 15 per cent, with an ambition to scale this up to 20 per cent by FY?2028, emerging as a potent competitor to UltraTech’s 192?MTPA capacity (186 domestic and overseas).

Strategic advantages and competitive benefits
The consolidation simplifies decision-making by reducing legal entities, centralising oversight, and removing redundant functions. This drives compliance efficiency and transparent reporting. Using procurement power for raw materials and energy lowers costs per ton. Integrated logistics with Adani Ports and freight infrastructure has resulted in an estimated 6 per cent savings in logistics. The group aims for additional savings of INR 500 to 550 per tonne by FY 2028 by integrating green energy, using alternative fuel resources, and improving sourcing methods.

Market coverage and brand consistency
Brand integration under one strategy will provide uniform product quality and easier distribution networks. Integration with Orient Cement’s dealer base, 60 per cent of which already distributes Ambuja/ACC products, enhances outreach and responsiveness.
By having captive limestone reserves at Lakhpat (approximately 275 million tonnes) and proposed new manufacturing facilities in Raigad, Maharashtra, Adani Cement derives cost advantage, raw material security, and long-term operational robustness.

Strategic implications and risks
Consolidation at Adani Cement makes it not just a capacity leader but also an operationally agile competitor with the ability to reap digital and sustainability benefits. Its vertically integrated platform enables cost leadership, market responsiveness, and scalability.

Challenges potentially include:

  • Integration challenges across systems, corporate cultures, and plant operations
  • Regulatory sanctions for pending mergers and new capacity additions
  • Environmental clearances in environmentally sensitive areas and debt management with input price volatility

When materialised, this revolution would create a formidable Adani–UltraTech duopoly, redefining Indian cement on the basis of scale, innovation, and sustainability. India’s leading four cement players such as Adani (ACC and Ambuja), Dalmia Cement, Shree Cement, and UltraTech are expected to dominate the cement market.

Conclusion
Adani’s aggressive consolidation under the ‘One Business, One Company’ strategy signals a decisive shift in the Indian cement industry, positioning the group as a formidable challenger to UltraTech and setting the stage for a potential duopoly that could dominate the sector for years to come. By unifying operations, leveraging economies of scale, and securing vertical integration—from raw material reserves to distribution networks—Adani Cement is building both capacity and resilience, with clear advantages in cost efficiency, market reach, and sustainability. While integration complexities, regulatory hurdles, and environmental approvals remain key challenges, the scale and strategic alignment of this consolidation promise to redefine competition, pricing dynamics, and operational benchmarks in one of the world’s fastest-growing cement markets.

About the author:
Milind Khangan is the Marketing Head at Vertex Market Research and comes with over five years of experience in market research, lead generation and team management.

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Concrete

Precision in Motion: A Deep Dive into PowerBuild’s Core Gear Series

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PowerBuild’s flagship Series M, C, F, and K geared motors deliver robust, efficient, and versatile power transmission solutions for industries worldwide.

Products – M, C, F, K: At the heart of every high-performance industrial system lies the need for robust, reliable, and efficient power transmission. PowerBuild answers this need with its flagship geared motor series: M, C, F, and K. Each series is meticulously engineered to serve specific operational demands while maintaining the universal promise of durability, efficiency, and performance.
Series M – Helical Inline Geared Motors: Compact and powerful, the Series M delivers exceptional drive solutions for a broad range of applications. With power handling up to 160kW and torque capacity reaching 20,000 Nm, it is the trusted solution for industries requiring quiet operation, high efficiency, and space-saving design. Series M is available with multiple mounting and motor options, making it a versatile choice for manufacturers and OEMs globally.
Series C – Right Angled Heli-Worm Geared Motors: Combining the benefits of helical and worm gearing, the Series C is designed for right-angled power transmission. With gear ratios of up to 16,000:1 and torque capacities of up to 10,000 Nm, this series is optimal for applications demanding precision in compact spaces. Industries looking for a smooth, low-noise operation with maximum torque efficiency rely on Series C for dependable performance.
Series F – Parallel Shaft Mounted Geared Motors: Built for endurance in the most demanding environments, Series F is widely adopted in steel plants, hoists, cranes, and heavy-duty conveyors. Offering torque up to 10,000 Nm and high gear ratios up to 20,000:1, this product features an integral torque arm and diverse output configurations to meet industry-specific challenges head-on.
Series K – Right Angle Helical Bevel Geared Motors: For industries seeking high efficiency and torque-heavy performance, Series K is the answer. This right-angled geared motor series delivers torque up to 50,000 Nm, making it a preferred choice in core infrastructure sectors such as cement, power, mining, and material handling. Its flexibility in mounting and broad motor options offer engineers’ freedom in design and reliability in execution.
Together, these four series reflect PowerBuild’s commitment to excellence in mechanical power transmission. From compact inline designs to robust right-angle drives, each geared motor is a result of decades of engineering innovation, customer-focused design, and field-tested reliability. Whether the requirement is speed control, torque multiplication, or space efficiency, Radicon’s Series M, C, F, and K stand as trusted powerhouses for global industries.

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