Economy & Market

Cement Cracks

Published

6 years ago

January 5, 2020

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An unprecedented lockdown have made companies across the board to device uncon-ventional methods to run business here on.

The course of a river can change over night, that is true in the case of almost all business sectors across the world. Cement is neither insulated nor isolated from the strong currents of COVID-19.

Real estate and infrastructure the two key employment generators in the country. With the pandemic spreading like a wild fire, has impacted them fiercely. Though the year 2019 has been a mixed bag for the Indian real estate industry, it was expected that the segments would lead the revival of the Indian economy from the second quarter of FY21.

Major contributors of real estate like steel and cement have been impacted too. The country wide lockdown has halted the manufacturing activities of cement, steel and other building materials. The impact its seen on sourcing of building material and labour.

However, things have taken a new direction with nation getting into a complete lockdown extending over a month. The major movements were seen in commercial real estate in the last year is expected to be a downward ride this year. A report released by global consulting firm, KPMG titled "Possible impact of COVID-19 on the Indian Economy’ says, "With possible slowdown in the US and European economies, the existing demand for commercial real estate may either get curtailed or postponed till H2 of the current year."

In the first week of March 2020 when the last financial year was coming to a close, the prediction for cement segment was that the FY 21 would be healthy. The report released by rating agency CRISIL in March 2020 says,"Cement maker profitability to remain healthy next fiscal at 20 percent next fiscal on an expected recovery in demand driven by the infrastructure and affordable housing sectors, stable realisations, and benign input prices."

The report further stated, this fiscal (FY21), operating profitability is expected to touch a seven-year high of approximately 21 percent, which translates to a 350-400 basis points (bps) on-year surge.

All appeared rosy and promising but in less than a month the entire scenario changed. The same agency released another report (April 2020) saying, "Covid-19 has cast a long shadow over a much-anticipated mild recovery in Indian economy in fiscal 2021. Along with external factors such as weak global demand, supply disruptions, and global financial shocks, the economy is grappling with lockdown, factory shutdowns, reduced discretionary spending, and delayed capex cycle."

The report further elaborated on two scenarios for recovery for cement sector, "All this is expected to affect construction, and thereby cement demand. Given the uncertainty in the current environment, we have based our analysis on two possible scenarios based on spread and containment period of the pandemic. 1) Our baseline view assumes lockdown/ other social distancing measures to continue till April end and construction activity to resume in mid-May, and 2) Our pessimistic view assumes extended vulnerability to the virus with construction activity beginning only in the second half of this fiscal."

Though the reports were not so encouraging, KPMG report suggested the possible way forward.

Courtesy: KPMG report

While the companies companies laments on the losses that happened over the past few years, they also at the same time prepared the employees and the team to move to a new business regime atet is being redefined by COVID -19 attack. Let us hear from some of the stalwarts of the industry how they utilised the lockdown period efficiently and fruitfully.

Anil Banchhor, MD and CEO, RDC Concrete India
During the lockdown time, we conduct daily toolbox talk meetings with the workers and our own staff. All Business Head, Business Manager and the Plant in charges are all part of this Tool Box Talk. The discussion includes precautions to be taken on health and safety. The team leaders were given the task of creating a document on the wellbeing of the employees like recording, whether any one has cough, fever, sore throat or another symptoms? This also carries information about the family members as well.

It is also important to have regular communication with staff and workers to keep the morale of the workforce high with positivity, as a underlining theme.

We also focused on skill development of various level employees. The critical issues are given attention and preparing ourselves to move forward post COVID-19. Our focus is also readying the workforce in multi-tasking. The aim is to enable each person capable of doing different department jobs. To make this possible we have designed a lot of modules that are accessed by employees from home. Once the modules are completed the employees are required to go thru the test like any other training programme.

Plant in-chargers / Reporting Managers have been talking to labourers on day today basis. Some workers are stuck in the plants, and for them all rations and essential items are provided.

After the Janta curfew, we were certain of a lockdown. We used the few days in-between to replace the non IP based cameras with IP cameras, overlooking all assets and particularly office and cement godown.

At the same time we have conducted a mask making competition involving the family members of employees. These masks are bought by the company and that would be distributed to the workforce once the lockdown is over.

Jagdish Chandra Toshniwal, MD, Wonder Cement
We kept our employees engaged in different works and used video platform to communicate with them on a regular basis.

Marketing teams are to be prepared for future with plans in case of continuation of lockdown. National heads are tasked to prepare contingency plans. Similarly the network partners are also being reached out in order to maintain confidence. The lockdown period has been utilised on closing the financial year and performance reprisal. In this time we have also conducted training programs through OEM’s which was long pending. There were discussions on how to improve the plant performance, also on an annual plan and maintenance. The overall aim is to bring in efficiency. All this was possible as the workforce was diced into small groups of four to five people.

We are slowly restarting the offices. It will not be 100 per cent of the workforce. We will continue working on development jobs, training jobs and future plans. First, only 20 to 25 per cent of the workforce will be asked to resume work. For eg; we have 3 kilns, we will start only 1 kiln because we don’t expect demand to come immediately. Thermal scanning and sanitisation and social distancing are the new norms. With 2/3 of the workforce, it would be easily controllable at the gate. We will ensure all government guidelines be strictly followed like wearing a mask at work. Also every employee has to give a declaration about their places of visit in the last 15 days.

In office we will work in two shits to spread the manpower and to avoid crowding. Meeting will continue to be through digital mode like video chats. Will focus on safety as the utmost priority.

Subhash Sethi, Chairman, SPML Infra
As soon as the lock down was announced all work both offices and project sites were-closed and employees was advised not to travel. Started remote working with the support of digital applications. Our teams spread across different cities held discussions and review meetings kept us abreast with the situation. We have in fact resumed project execution work in some states after the government has relaxed working of important sectors related to water and power projects.

The technological intervention in the construction industry and the use of robotics and automation were existed at the emerging stage but with the lock down and new working norms, it has expedited the trend. I believe that once the impediment of corona virus will end, the construction industry will witness the application of service robotics and high level of automation of functionalities. It will also embrace new digital technologies that have significant long-term benefits. The R&D spending which was minimal in construction sector is bound to increase with enhanced spending on information technology and new software solutions. For the difficult nature of work in construction sector, big efforts will be needed to increase the level of automation and to coordinate with involved processes in order to improve its productivity.

There is going to be a very strict protocol related to regular health check-ups of workers, cleaning and disinfection of work spaces with maintaining proper distance between each employee. We will also encourage all our employees and other staff members to wear face masks at all times and practice proper healthcare practices. Our teams, clients and partners are fully inspired and committed to continue developing the critical infrastructure for drinking water, wastewater and electricity for the well-being of our people.

Puneet Vidyarthi, Brand Leader, CASE India
The company has devised video calls twice a week with the Business Unit HR Head. It is a great way to liaise with the whole team and share anecdotes etc, which keep us connected and simulates a regular work day, with catch up sessions.

There were daily messages like the Thought for the day / motivational messages to bring positivity among the work force. Webinars were conducted 4 times a week (Tuesdays to Fridays) with topics ranging from professional to personal well-being and self-help.

Weekly Updates from the rest of the world (CNH ecosystem). E-meetings with the management team (Once a month): This is like an online town hall.

E-Training for Dealers: Product training and refresher courses are conducted weekly. These are online training sessions where dealers log in from home. Both customers and dealers were given information how to store the construction equipment during lockdown. Communication from leadership on measures taken to alleviate the circumstances such as extension of warranties etc. Critical communication from leadership to dealers and how CNH will help them bounce back soon as this is over – involves relaxation of certain protocols. To prospects generated over last month (not customers yet) bi-weekly communication to stay in touch and assure them that our offer still stands.

– Renjini Liza Varghese

Concrete

Cement Makers Reaffirm Commitment to Sustainable Growth

Published

2 hours 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

21 hours 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.