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Cement companies should avoid giving any negative message

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Branding has become the need of an hour today. You need to have the right pricing, right quality, and right message delivered while creating a successful brand. M Ravinder Reddy, Director ??Marketing, Vicat, believes that a lot of hard work is required behind creating a successful brand. He shares his company?? journey of creating cement as a brand.

How has been the journey of cement from commodity to brand?

I am quite satisfied with the journey of cement as a brand so far. If you consider the control days, the situation has changed significantly since 1982 when partial decontrol was introduced. Cement started selling as a brand since then. Initially it was in a radius of around 400 km around the plant. Then in the year 1989, cement became an independent commodity without any controls. It was then when the cement companies started advertisements for branding. The manufacturers went from one location to multiple locations.

Today if you see there is one mother brand and under it, there are a few more sub-brands. Today, cement is almost like any FMCG product. While creating a brand there is a lot of hard work that goes behind. Quality of the product and packing of the finished item is extremely important.

What are the three important attributes of cement as a brand?

  • Today?? customer is extremely sensitive and conscious about weights and measurement. He is aware of his rights. When we have moved from jute bags to laminated bags we must also make sure about what we are delivering to the customer. Today customer does not accept any compromise on quality.

  • The customer wants a consistent quality. Many times we give a quality product but it is not uniform in strength, colour, fineness, etc. There will be variation in the limestone quality but in the process, we must make sure of what comes out of the kiln that is in our hands.

  • The third important aspect is service associated with the product and delivery of the product.

  • When cement producers are trying to establish as a brand they will have to respond to all the three attributes stated above.

What do you think cement companies should avoid while establishing their product as a brand?

Cement companies should avoid giving any negative message. It will always go against the company. The producers should try to create a good image of the product and the company. As I said above, the customer today is very sensitive and fully aware of his rights. We should not try and hoodwink him; we should give him what we promise.

How important is the compressive strength of cement while creating a brand?

No doubt strength is an important property of cement. But today we not only talk of strength. We talk about setting time, water requirement, fly ash, or slag present. Properties that will impart durability to the structure that is being constructed. The industry is going away from strength as a property. Today?? advertisements are revolving around relations, durability, and sustainability.

Is it necessary to attach a personality to cement while creating a brand?

Yes, personality is important. When new cement is launched, we would engage a personality that can give confidence to the buyer. It is necessary for any new product but when the product is already established you can think of a different type of campaign.

I remember at Bharathi cement, we had hired the well-known Telugu actor Surya as a brand ambassador. We came to know before he took up our assignment, he had used our cement for his own construction and was a quite satisfied customer. This gives another dimension to the entire campaign.

Talking about cement as a product, what we produce today is backed by strong technological inputs and is comparable to a product in Europe or the US. When we launched our cement in Sri Lanka, our product was far superior to any local product. Apart from the consumer, we are also associating with engineers and masons who are part of the user chain. Their response to our product is equally important and valuable.

M Ravinder Reddy holds a MBA degree in Marketing and has over 34 years of experience in cement industry. While at Priya cement, he had introduced HDPE packing by replacing Jute packing. He joined Bharathi Cement as a Whole-time Director in September 2008, and he heads the company?? sales and marketing operations of Vicat India. In 2009, he successfully launched the ??harathi Cement??in premium segment. He is recipient of many national and international awards.In addition, he is an elected Chairman of Cement, Clinkers and Asbestos Cement products panel of CAPEXIL and also Vice President of South India Cement Manufacturer?? Association.

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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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