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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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India’s Cement Sector Cuts Energy Use, but Worker Safety Worsens

iFOREST finds efficiency gains alongside water and safety concerns

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India’s cement sector has improved its energy and carbon efficiency, but rising groundwater use in water-stressed regions and deteriorating worker safety remain significant concerns, according to a report by the International Forum for Environment, Sustainability & Technology (iFOREST). The findings also highlighted weak policy implementation and gaps in sustainability reporting.

India, the world’s second-largest cement producer, uses about 2.54 gigajoules of energy per tonne (GJ/t), below the global average of 2.88 GJ/t. However, renewable sources accounted for only 5.1 per cent of the sector’s energy mix, indicating continued dependence on conventional sources.

The report assessed 18 cement companies against 107 Business Responsibility and Sustainability Reporting indicators for FY24 and FY25. The companies covered 87 per cent of India’s cement production. Carbon emissions intensity declined from 0.58 to 0.57 tonnes of carbon dioxide per tonne, but total emissions increased 4 per cent to 224.3 mn t, equivalent to about 6 to 7 per cent of India’s overall emissions.

Overall water withdrawal declined 9.5 per cent during the study period, while withdrawals in water-stressed areas, mainly in Rajasthan, increased by more than 20 per cent. Groundwater’s share of withdrawals in these areas rose from 27 per cent to 38 per cent, raising concerns about the sector’s impact on vulnerable water resources.

The sector employs about 228,000 people, including 63 per cent contractual workers, 3.1 per cent women and 0.07 per cent persons with disabilities. Women in key managerial roles earned 26.8 per cent less than men, while median pay for women workers fell 11.1 per cent in FY25 as men’s pay increased. Worker injuries rose 36.5 per cent to 359, and fatalities increased from 17 to 22, with workers accounting for more than 90 per cent of deaths.

iFOREST recommended cement-specific reporting guidance, standardised metrics, mandatory production disclosure and third-party verification. It also called for environmental, social and governance policies to be integrated into business strategies and implemented more effectively on the ground.

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Concrete

Ambuja Cements Expects Volume Growth to Outpace Industry in H2

Ambuja Cements sees stronger trade and institutional demand in H2 FY27.

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Ambuja Cements expects its sales volumes to grow faster than the cement industry during the second half of fiscal year 2027, as it seeks a recovery in institutional demand after a weak first half. The Gautam Adani-owned company is aiming to rebuild volumes while protecting profitability.

The company reported a 90 per cent year-on-year decline in consolidated net profit attributable to owners of the parent to Rs. 1.93 bn for the quarter ended 30 September, from Rs. 17.74 bn a year earlier. The previous year’s profit included a reversal of income-tax provisions worth Rs. 16.97 bn. Revenue from operations rose marginally to Rs. 91.66 bn from Rs. 91.3 bn.

Trade volumes increased 8.6 per cent year-on-year in the September quarter, but weaker institutional sales left overall volumes broadly unchanged. Ambuja Cements expects both trade and institutional sales to turn positive in the third and fourth quarters. Trade sales are made through dealers and distributors, while institutional or business-to-business sales involve bulk supplies to infrastructure developers, government projects and real estate companies.

The company had earlier reduced institutional sales that did not generate adequate returns. It now plans to rebuild the business selectively, while continuing to prioritise trade sales and higher-value products. Trade accounted for 74 per cent of sales in the quarter, up six percentage points from a year earlier, while premium products increased to 37 per cent of trade sales from 35 per cent. Blended cement’s share rose to 82 per cent from 77 per cent.

Ambuja Cements commissioned 4.6 mn t of capacity during the quarter. Another 3.2 mn t at Bathinda in Punjab and Jodhpur has stabilised, with the facilities expected to ramp up in the second half. A further 2.4 mn t facility at Varkala in Bihar is scheduled for commissioning during the period. Higher fuel and logistics costs remain a challenge, while the company has realised a cement price increase of about Rs. 10 per bag in October and is targeting operating costs of Rs. 4,250 per t for the full year.

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JK Lakshmi Cement Begins Rs 110 Billion Assam Plant Project

The 2.5 MTPA integrated cement plant is expected to be completed by FY2029.

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JK Lakshmi Cement has recently laid the foundation stone for Project Kamakshi, its first integrated cement manufacturing facility in Assam, marking its entry into Northeast India. The groundbreaking ceremony was held at Umrangso village in Dima Hasao district in the presence of Assam Chief Minister Himanta Biswa Sarma.
The project involves an investment of Rs 110 billion, including the mining lease, and will have an annual cement production capacity of 2.5 million tonnes, supported by a 1 million tonne clinkerisation unit. Scheduled for completion by FY2029, the facility is expected to generate employment for over 2,000 people while catering primarily to the growing Northeast market.
The integrated plant will feature dedicated railway sidings to facilitate efficient transportation of raw materials and finished cement, strengthening supply chain reliability and regional distribution.
Vinita Singhania, Chairperson and Managing Director, JK Lakshmi Cement, said, “”Project Kamakshi is the start of a long-term relationship with Assam and the wider North East. This is a region that is building fast, and it deserves quality cement made close to home. With this plant, we want to bring scale, jobs, and dependable supply to the region. At JK Lakshmi Cement, we believe that building a stronger India goes beyond infrastructure. It is also about growing together with the communities we serve.””
The investment aligns with the company’s strategy to expand into high-growth markets beyond its established presence in Northern, Western and Eastern India. The project is also expected to support regional economic development and infrastructure growth.
JK Lakshmi Cement aims to pursue its expansion plans while working towards its long-term target of achieving net-zero emissions by 2047.

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