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Voice of change

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Apart from doing his usual business exceptionally well, Rishi Fogla is passionate about his social project. Let us hear from him about his pet project ??oice of Change.??He also shares his thoughts on the role of packaging in building a strong brand.

Kindly introduce your line of businesses to our readers, keeping the focus on cement as a product you serve.
I work in Fogla Corp as Executive Director. At Fogla, we have been catering to the demand of cement industry in the Indian subcontinent. We have two business divisions viz a) chemicals ??we are leading manufacturers and suppliers of surfactant chemicals ??LABSA, AOS, SLS and SLES, which are mainly used by the FMCG sector b) industrial packaging ??manufacturers of PP fabric and bags, FIBCs ??big bags/jumbo bags, HM HDPE drums.

My association with the cement industry is through the industrial packaging division. India is a developing country, which means infrastructure, construction, and building sectors are vital for the economy, which implies that the cement industry will grow exponentially, and hence the demand for packaging will also see a similar growth trajectory. Our products for the cement industry are of the highest quality, and we have been continuously innovating to cater to their needs to meet specific requirements.

Talking of Covid 19 pandemic, the second wave is posing a bigger risk to life and businesses. How has been the packaging industries??response to the second wave more specifically?
Last year, when the coronavirus hit us, we were caught unaware ??what the virus is going to do, how will it impact lives, livelihood and businesses, and what will happen tomorrow? This time because of our earlier experience we are prepared. We are more agile about what is going to happen. We are better equipped in terms of material requirements, we have maintained sufficient stocks of raw materials and other inputs, and we are able to deliver the packaging material to the cement industry on time so that the business connectivity is ensured.

Our SOPs are also integrated for the new wave of coronavirus. The situation is much under control as compared to that of last year even though the second wave is very different compared to the first one. Overall, we are much better off compared to last year. People in head office are working from home, while our factories are operational and working with strict SOPs even though a few positive cases have been reported.

Cement used to be a commodity and right now we are in the transition phase and are moving from commodity to brand. What role packaging can play in this transition?
Packaging is an integral part of ensuring that the brand is portrayed in totality. In the earlier days, cement was classified as a commodity. Today packaging has a vital role to play. If you go to a supermarket what attracts you first is the packaging of a product. It is the packaging of the product that catches your eye first. The customer is then tempted to try out the product.

The packaging comes first and then the content. When cement moves from B2B to B2C sector, the attractiveness of packaging is the first to have an encounter with the customer. The customer expects the packaging to be not just attractive, but more agile, more sophisticated and that is what we do. This is how we have been trying with cement companies for the last four to five years and I even look at it as if I am a cement user myself (we are cement for our various expansion projects). When a brand moves from a standard product to a premium one, packaging is on the preface. It has a role to play from its journey from commodity to brand.

Polypropylene or similar kinds of polymers are used on a very large scale in making bags for the cement industry. Latest packaging techniques such as lamination and other improvements have been carried out on bags. Please inform us more about such latest changes that are happening in the cement industry.
This change in bags is connected with the journey from commodity to brand. The journey has been from PP bags to PP laminated bags to BOPP bags. This change has evolved with our ethos. As an industry, we have to think about what we can do better tomorrow. With this approach, we work on changing the packaging products so as to bring in advantages to the consumer and the cement producer. When we move from PP to laminated PP bags, the quality of printing on the bag is much better. It is a kind of photogenic printing over block printing.

Cement being a hygroscopic material, immediately attracts moisture from the atmosphere. The lamination on the bag provides a kind of shield on the bag that prevents moisture from entering the bag. Lastly, now the bags are machine-made, while earlier the same job was being done by manual labour, therefore the quality of these bags made on machines is much higher and have minimum tolerance. When the bags get self-sealed, there is less loss of product during transit and even reduced dust emission. This results in customer satisfaction, which is our main goal.

How is the demand for PP laminated bags? How has been the transition from PP to PP laminated bags? Has it slowed down during pandemic?
During Covid and post Covid, we can see the buyers prefer PP laminated over PP bags and the numbers have exceeded our expectations.

On the social front, your company has been working on a special project called ??oice of change?? Could you please elaborate on this project?
I will take a little more time on the subject because it is very close to my heart. I find that focus of proper education is lacking in our country. With the population growth and youth coming to the job market in large numbers, only education can make a difference. That is the only asset one can live with it for the rest of his life.

Fogla Foundation was incorporated three years back and the first project we took was the ??oice of Change??connected to educating children. We nurture a few government public schools which are in the backward areas in West Bengal. What we create there is a pseudo parliament run by children in the school. It is same as the moral science of the good olden days. We make sure that whether a boy or a girl, they are able to come out of their shell. Normally because of their background, they do not open up. It is with the understanding that these children will be able to make their own decisions in their lives going forward. What we actually do in the school, is to create a ministry just like that of a government. They have a Prime Minister and other Ministers and they meet every fortnight and discuss about the subjects that affect them. They have a budget which they can decide on how to spend. A midday meal is an example which they get, they can decide how within a given budget they can improve. How wastage of food can be minimised so that maximum children are benefited. Are all the children eating properly? The food minister is supposed to look into these aspects. A home minister will find out why a particular child is not coming to school or has remained absent. This whole process brings in the out-of-the box thinking apart from the bookish knowledge they get. The taboo that exists among the backward people needs to be eliminated. This stratum of the society has to come out of the bubble and dream of something different and big. This approach is bringing in a big change.

I would say the whole exercise is participative and a sort of ownership is being created amongst children, ensuring success. Kindly tell us at what stage is the project at?
At present we are associated with seven schools in South Bengal and next year our budget is to reach out to around fifty schools.

How has been the support from school management and the other teaching fraternity to your project?
We are getting tremendous support. There is a feeling of togetherness amongst all of us, which has helped us to partner with them for achieving the end goal of creating an enlightened environment for the school children.

What is the significance of the name ??oice of change??
Going forward, education can only change our future. The voice of a small child becomes a change factor. We want to facilitate that change.

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Concrete

JK Cement marks 140 years of innovation and leadership

JK is one of India’s leading manufacturers of Grey Cement in India

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JK Cement Ltd. a leading building material company, one of India’s leading manufacturers of Grey Cement in India and one of the largest White Cement manufacturers in the world, celebrated 140 years of JK Organisation’s remarkable legacy at a grand event in the capital. The event honoured the group’s rich history, its significant contributions to multiple sectors of the Indian economy, and the unwavering dedication of its employees and partners.

The celebration gathered dignitaries, industry leaders, employees, and key stakeholders to reflect on JK Organisation’s journey from its inception to its present status as a global leader. Lieutenant Governor of New Delhi, VK Saxena, who himself started his career at JK Cement, along with Rajeev Shukla, Member of Rajya Sabha, graced the occasion. Key leaders of the JK Organisation, including Dr. Nidhipati Singhania, Vice President, JK Organisation, Dr. Raghavpat Singhania, Managing Director, JK Cement, and Madhavkrishna Singhania, Joint MD and CEO, JK Cement, were present to mark this significant milestone.

CEO’s from various known business houses both Indian and Multinational companies across sectors graced the occasion.

Reflecting on the organization’s journey, Dr. Nidhipati Singhania, Vice President, JK Organisation, said, “As we celebrate 140 years of JK Organisation, we are filled with immense pride and gratitude for our legacy, which is rooted in values of innovation, quality, and service to the nation. Our journey has been as much about business success as about driving positive change in the communities and industries we serve. The milestones we have achieved reflect our continuous efforts in advancing India’s infrastructure and industrial landscape.”

One of the key highlights of the evening was the recognising the long-serving employees and partners who have dedicated decades to JKCement. Their enduring loyalty underscores JK Organisation’s foundational values of trust and collaboration, which have been pivotal to the organisation’s success.

Addressing the guests at the event, Dr. Raghavpat Singhania, Managing Director, JK Cement, said, “This year along with the 140 years milestone, also marks two significant milestones for us: 50 years of grey cement business and 40 years of white cement business, affirming our leadership in the industry. Our recent expansion into coal mining underscores our commitment to vertical integration and sustainable resource management. We are dedicated to not only adapting to the evolving landscape but also driving positive change and creating lasting value for all our stakeholders and the nation.”

Emphasising the company’s commitment to innovation and progress, Madhavkrishna Singhania, Joint MD and CEO, JK Cement, said, “Our journey has been marked by resilience, adaptability, and a constant drive to exceed expectations. We’re committed to leveraging cutting-edge technology and sustainable practices to not only maintain our market leadership but also to contribute significantly to India’s progress. The trust of our stakeholders and the dedication of our team members have been instrumental in our success, and they will continue to be the pillars of our future endeavors.”

The event celebrated JK Organisation’s visionary outlook, showcasing its commitment to sustainable growth, technological innovation, and its influential role in driving India’s economic advancement.

VK Saxena, Lieutenant Governor, New Delhi, who was invited as the Chief Guest said “It’s an honour for me to be part of this landmark celebration for a company where I started my career as an Assistant Officer in Gotan, Rajasthan and worked for 11 years in different capacities with its White Cement plant. This exposure gave me insights of a corporate working, faster decision making and team work, which has helped me throughout my various stints thereafter. I wish all the best to JK Cement for all their Future endeavors in Nation Building”

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Concrete

Steel Ministry Proposes Rs.23.52 Lakh Crore for Decarbonisation

Steel Ministry unveils massive decarbonisation plan.

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Decarbonisation Proposal:
The Steel Ministry has outlined a substantial Rs.23.52 lakh crore proposal aimed at decarbonising the steel industry. This initiative is part of the broader sustainability and environmental goals set by the Indian government.

Objective and Goals:
The primary objective of the proposal is to reduce carbon emissions significantly and enhance the environmental performance of the steel sector. This aligns with India’s commitment to climate action and green growth.

Investment Focus:
The proposal will channel funds into advanced technologies, energy-efficient processes, and renewable energy sources. Key areas of investment include electrification, hydrogen-based steelmaking, and carbon capture technologies.

Expected Benefits:
Implementing this plan is expected to lead to major reductions in carbon emissions, improve air quality, and contribute to sustainable development. It will also bolster India’s position as a global leader in green steel production.

Industry Impact:
The steel industry, being a major emitter of greenhouse gases, will undergo a transformation. This shift will require industry-wide adaptation and could influence global steel market trends.

Government Support:
The Indian government is committed to providing policy support, incentives, and regulatory frameworks to facilitate this transition. This includes subsidies for green technologies and research and development funding.

Timeline and Phases:
The implementation will be carried out in phases over the coming years. Short-term goals will focus on immediate emission reductions, while long-term goals will target more comprehensive technological advancements.

Stakeholder Involvement:
Collaboration with industry stakeholders, technology providers, and research institutions will be crucial. Engagement with local communities and environmental groups will also play a role in ensuring the success of the proposal.

Challenges:
The initiative may face challenges such as high costs, technological barriers, and regulatory hurdles. Addressing these challenges will be essential for the successful execution of the decarbonisation plan.

Future Outlook:
The proposal positions India as a key player in the global movement towards sustainable steel production. It sets a precedent for other sectors to follow and supports the country’s broader climate goals.

Conclusion:
The Steel Ministry’s proposal for a Rs.23.52 lakh crore decarbonisation plan represents a significant step towards reducing carbon emissions in the steel industry. With substantial investment in green technologies and strong government support, this initiative aims to drive sustainable growth and position India as a leader in environmental stewardship.

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Concrete

New home prices in China fall 5.3% in August 2024

New home prices were down 5.3% from a year earlier.

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Official data revealed that China’s new home prices had fallen at their fastest rate in over nine years in August, as supportive measures failed to induce a significant recovery in the property sector. The data showed that new home prices were down 5.3% compared to the previous year, marking the sharpest decline since May 2015, compared to a 4.9% drop in July, based on calculations by Reuters from National Bureau of Statistics (NBS) data. Monthly figures indicated that new home prices had fallen for the fourteenth consecutive month, decreasing by 0.7%, which was the same drop recorded in July.

The property market in China continues to struggle with deeply indebted developers, incomplete apartments, and declining buyer confidence, which is putting a strain on the financial system and threatening the 5% economic growth target for the year. A Reuters poll had forecast that home prices in China would decline by 8.5% in 2024 and by 3.9% in 2025 as the sector struggles to stabilise.

Zhang Dawei, chief analyst at property agency Centaline, mentioned that the property market is still gradually bottoming out, with home buyers’ demand, income, and confidence expected to take some time to recover. He noted that the market was anticipating a stronger policy response. According to the official data released on Saturday, property investment had fallen by 10.2% and home sales had dropped by 18.0% year-on-year in the first eight months of the year.

Chinese policymakers have stepped up efforts to support the property sector, including reducing mortgage rates and lowering home buying costs. These measures have partially revitalised demand in major cities, while smaller cities, which have fewer home purchase restrictions and high levels of unsold inventory, are particularly vulnerable. This situation underscores the difficulties faced by authorities in balancing demand and supply across different regions.

In a research note on Friday, Nomura indicated that with the growth slowdown worsening under new headwinds in the second half of the year, Beijing might eventually need to step in as the “builder of last resort” by directly providing funding to delayed residential projects that have already been pre-sold. According to Bloomberg News, China may cut interest rates on over $5 trillion in outstanding mortgages as early as this month.

To support these mortgage rate cuts, economists at ANZ suggested that a reduction in the five-year Loan Prime Rate was likely in September, along with a 20 basis point cut to the medium-term lending facility (MLF) and a 50 basis point cut to the reserve requirement ratio (RRR).

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