Concrete

Sharp rise in input cost dents cement firmsâ€™ profitability

Published

6 years ago

March 5, 2021

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A significant increase in input costs has resulted in a steady increase in cement prices across India over the current quarter. However, the rise in retail prices is unlikely to benefit cement companies in the short term. In fact, cement manufacturers are likely to see an impact on their profitability during the quarter, say analysts tracking the sector.

According to research agency ICRA, cement companies have already undertaken price hikes to the tune of around 7 per cent on average year-on-year (3 per cent-8 per cent month-on-month) during March 2021 due to the increase in input costs. ??his hike is driven by the increase in the input costs, primarily power and fuel expenses and freight expenses over the last few months. Further, the prices are likely to largely sustain in the near term supported by the healthy rural demand and the significant uptick in infrastructure activity,??it said in a report.

Power and fuel, and freight expenses account for 50-55 per cent of the total costs for cement manufacturers and the cost of production is likely to be higher by 3-4 per cent year-on-year during the current quarter. Coal prices have also increased from $49 per tonne in September 2020 to $88 per tonne in February 2021, and $84 per tonne in March 2021.Pet coke, another key input resource for cement, has seen prices reach Rs 12,600 per tonne in March 2021 from Rs 8,000 per tonne in September 2020. In the fourth quarter of FY21, these prices have been higher by 73 per cent year-on-year and 29 per cent quarter-on-quarter.

The increase in the power and fuel expenses caused by higher pet coke prices and the rise in freight expenses due to higher diesel prices has resulted in a decline in cement companies??operational profit margins by 8.7 per cent compared to the previous quarter. This figure has been declining since the second quarter of the previous year??alling 7.6 per cent quarter-on-quarter in Q2 FY21 and a 9 per cent quarterly fall in Q3 FY21.

??hile the cement prices are likely to largely sustain driven by the significant uptick in the demand, the higher input costs due to the increasing crude oil prices are likely to result in moderation of PBIDTA/MT??With the decline in OPBIDTA/MT, the debt coverage metrics are expected to witness marginal deterioration in FY2022 – TD/OPBIDTA to 1.8x times from 1.6x times and interest cover to 6.4x times from 7.0x times in FY2021,??the ICRA report said.

Concrete

UltraTech to Deploy 600+ Electric Trucks by Dec 2026

Cement major expands green logistics to cut emissions across supply chain

Published

6 hours ago

September 3, 2026

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UltraTech Cement Limited, an Aditya Birla Group company, plans to expand its electric vehicle fleet in logistics operations to more than 600 EV trucks by December 2026, strengthening its green transport initiatives.

The company has signed service agreements with leading EV prime mover manufacturers, including Tata Motors, Ashok Leyland, IPLTech, Energy in Motion and Sany, along with their subsidiaries and logistics partners, for deploying electric trucks.

The expanded fleet will transport around five million MT of clinker and other key materials annually across Gujarat, Uttar Pradesh, Madhya Pradesh, Rajasthan, Chhattisgarh, Maharashtra and Odisha. Once operational, the fleet is expected to reduce annual CO₂ emissions by over 1,17,000 tonnes and replace nearly 39 million litres of diesel consumption.

K C Jhanwar, Managing Director, UltraTech Cement Limited, said the company is extending sustainability beyond its manufacturing plants by adopting greener logistics solutions and decarbonising its value chain.

UltraTech has been among the early adopters of sustainable transport in the cement sector, introducing CNG trucks in 2021 and electric trucks in 2024. The company currently operates more than 850 trucks under its green logistics programme, including CNG and electric vehicles.

With a grey cement capacity exceeding 200 MTPA in India, UltraTech is integrating electrification across its logistics network, covering mine-to-plant movement and inter-plant transportation of clinker and other materials.

Concrete

UltraTech Cement expands green logistics with 600+ electric truck fleet

Published

8 hours ago

September 3, 2026

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The e-truck fleet will be used to transport five million MT of clinker and other key materials with potential of over 1,17,000 tonnes of net annual CO₂ reduction, displacing the equivalent of 39 million litres of diesel per year.

Mumbai

UltraTech Cement Limited, an Aditya Birla Group company and the world’s largest cement company by sales volume and capacity outside China, has announced that it will scale up its electric vehicle fleet in its logistics operations to 600+ EV trucks by December 2026.

UltraTech has signed service contracts with leading EV prime mover manufacturers including Tata Motors, Ashok Leyland, IPLTech, Energy in Motion and Sany, along with their subsidiaries and other third-party logistics providers, to deploy EV trucks.

The total fleet of 600+ EV trucks will transport about five million MT of clinker and other key materials per annum across Gujarat, Uttar Pradesh, Madhya Pradesh, Rajasthan, Chhattisgarh, Maharashtra and Odisha. Once fully operational, this fleet of over 600 EV trucks will enable a net annual CO₂ reduction of more than 1,17,000 tonnes, displacing the equivalent of 39 million litres of diesel per year.

K C Jhanwar, Managing Director, UltraTech Cement Limited, said, “UltraTech is expanding sustainability beyond its plants by adopting greener logistics solutions. This large-scale transition to green logistics underscores our focus on decarbonising every link of our value chain and supports our commitment to achieving Net Zero.”

UltraTech has been a pioneer in advancing sustainable transport in the cement sector, being the first cement company to deploy heavy-duty electric trucks for long-haul transport of clinker and other materials at scale. The company was among the first in India to introduce green logistics, deploying CNG trucks in 2021 and electric trucks in 2024. UltraTech currently operates 850+ trucks as part of its green logistics operations, including CNG and electric trucks.

UltraTech, with a grey cement capacity of over 200 MTPA in India, operates one of the country’s most complex logistics networks. Its electrification strategy covers the entire supply chain—from mine-to-plant movement to inter-plant transport of clinker and other key materials.

The $ 10 billion UltraTech, the cement flagship company of the Aditya Birla Group, has a total Grey Cement capacity of 205.5 MTPA and White Cement/Putty capacity of 3.2 MTPA. It is a signatory to the GCCA Climate Ambition 2050 and has committed to the Net Zero Concrete roadmap announced by GCCA.

Concrete

CarbonStrong Raises Rs 125 Million To Scale Low Carbon Cement Tech

To build capacity of 100,000 tonnes a year

Published

6 days ago

August 28, 2026

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CarbonStrong has raised Rs 125 million (125 mn) to scale a low carbon cement technology and build commercial production capacity. The startup was founded in 2022 by Harsh Jain and Vikramaditya Singh and has moved from customer trials to plans for industrial supply. The company said its material replaces up to 50 per cent of cement in concrete while reducing costs and improving durability.

CarbonStrong states the product is around 30 per cent cheaper than cement and compatible with existing concrete plants, reducing the need for new equipment and operational disruption. Trials and paid pilots have been conducted in Bengaluru, Hyderabad and Chennai with demonstration projects involving ready-mix firms and precast manufacturers. Compatibility with current workflows forms a central part of the commercial strategy, aiming to ease adoption by builders and contractors.

The funding will support construction of a facility with capacity of up to 100,000 tonnes (100,000 t) a year over the next two years to supply early customers commercially. The firm is also developing materials from steel slag, copper slag and mine tailings to expand its feedstock base, while noting the technical challenge of homogenising different waste streams. Recognition by HCL ClimaForce in 2026 and by the Avaana-Startup India-NITI Aayog AIM Grand Challenge in 2025 has underscored progress.

Industry adoption remains the principal test and will require consistent material performance, supply reliability and competitive economics. CarbonStrong projects the Indian market for cement substitutes could reach Rs 250 billion (250 bn) by 2030 and has set an ambition to produce 10 million tonnes a year by 2035 (10 mn t), a target far above its near term capacity. Moving from pilots to production demands capital, manufacturing discipline and customers willing to specify the material beyond demonstrations. The recent Rs 125 million raise is intended to fund the next phase of scale and to demonstrate that industrial waste can become a dependable input for lower carbon construction.