Connect with us

Concrete

Always Escalate, so as not to Escalate

Published

on

Shares

Languages are such wonderful medium of human expression, because words can have such myriad meanings. There are many words which mean quite different things, taken in context. Unfortunately, here we are not talking about languages, but about project management. ??lways escalate, so as not to escalate??may sound, at first glance, like a meaningless play with words, but it is really not so, in our context. Check out these meanings: Escalate ??To increase in intensity or extent, or Escalate ??To become more serious, or be amplified.

Here, in this column, I mean to say that one must always escalate issues and problems to higher levels at the earliest opportunity, so as to avoid escalation of project cost and time. From my exposure to Project successes and failures, this is a very core issue in project management. Project cost escalation (time and cost are inextricably connected) is a very dreaded word in project management parlance. Not only dreaded, but also hated! But as long as there will be projects, there will remain the possibility of time/cost escalations. Unforeseen things happen, unprecedented situations develop, circumstances spin out of control, and these tend to delay projects and increase costs.

But in almost all cases, there are ways to manage and reduce the impact of these unforeseen things, provided we decide on a solution and act quickly to implement the solution. This is where we fail, because we do not highlight these events, rather we tend to push these below the proverbial carpet, as if they will vanish on their own. Why does this happen? There are two very interesting reasons, one hierarchical, and the other behavioural, and both act in tandem.

No organisation is absolutely flat, and there are levels. This is true for project teams also. In all cases, there will at least be three levels. There are operating people in the field, there is a manager who is responsible for leading and guiding the team, and then there will be so called ??op management?? which could be a CEO, or a Board, or a similar body assigned for review and/or oversight. Now, nascent problems in a project, such as insipient causes for delay, are likely to be known first to the operating level, who have their ??ars glued to the ground??

Think of it, who is most likely to get early signals of possible delays in designing of a building, or manufacturing of a critical component, or construction of a crucial structure, or a key regulatory approval ? who will know first, about a strike in a supplier?? factory, about an agitation at construction site, or about resignation of a key member of sub-contractors??team ? First to know will be the ??oot soldiers??of a project team. Now, this is very powerful information, with far-reaching consequences. However, sadly, officials at this level are not empowered to analyse the impact of such delays, leave alone evolve a solution. The knowledge to do so, and the authority to do so, lies one or two hierarchical levels higher up. And, more often than not, the information is not escalated upwards. Why not? That brings us to the second interesting reason.

This has to do more with psychology than project management per se. We all have an instinctive tendency to hush up bad news because we feel if we pass on these information, it will be taken as our failure. We try to resolve the problem at our level, and in the process waste precious time for intervention. What we do not realise, is that small adversities, when suppressed, may well become huge irreversible setbacks for a project, and that in these matters, speed of escalation and transparency always pay.

The sooner the bad news is known, the better it is, because the corrective actions can be taken immediately. But such rational thinking is often layered by the fear of immediate and short term outcomes of so-called failures. This is a cultural issue, this has to do more with our minds, than with our sense of logic. In larger project organisations, this phenomenon may also be driven by some nuances of internal politics. In any case, the project suffers. To get round this well-known issue, sometimes top management deploys informal and alternative channels to ensure flow of such information directly from field to boardroom. This is a crude workaround, because this kind of strategies undermine the formal organisation structures and dilutes accountability.

– SUMIT BANERJEE

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Concrete

Dalmia Bharat to Buy Jaypee Cement Assets for Rs 28.5 bn

Purchase under Adani led resolution plan valued at Rs 28.5 bn

Published

on

By

Shares

Dalmia Bharat will acquire the cement assets of JAL (Jaypee Associates Limited) for Rs 28.5 bn under an Adani led resolution plan, according to company sources. The transaction involves the purchase of manufacturing facilities and associated assets that form part of JAL’s cement operations, and it is framed as a strategic acquisition within a larger insolvency resolution overseen by an Adani group consortium. The move is presented as a consolidation play in a fragmented domestic cement market.

The company indicated that the acquisition will strengthen Dalmia Bharat’s geographic footprint and supply chain, enhancing its ability to serve regional demand and optimise logistics. The assets are expected to complement the purchaser’s existing capacity and provide additional clinker and grinding resources, allowing for potential efficiency gains through integration. Executives have described the deal as aligned with a broader strategy of targeted inorganic growth.

Financially, the headline consideration converts to roughly Rs 28.5 bn, reflecting the resolution price agreed under the plan. The purchase price and related terms are structured as part of the approved resolution framework and are subject to completion formalities. The parties expect customary regulatory clearances and creditor or adjudicatory confirmations to be completed before closing, with standard conditions precedent governing the transfer of assets.

Market observers noted that the deal illustrates ongoing consolidation in the sector, where larger groups are acquiring stressed or non core assets as part of resolution processes. Such transactions are seen as a mechanism to expedite recovery of value while enabling active players to expand capacity without developing greenfield projects. The combination of strategic fit and available asset bases is likely to influence competitive dynamics in specific regional markets.

Upon completion, Dalmia Bharat will integrate the acquired operations into its existing reporting and operational framework, with the intention of preserving operational continuity. Stakeholders will monitor execution on integration, regulatory approvals and the realisation of anticipated synergies as the parties move towards finalising the transfer of assets.

Continue Reading

Concrete

Dalmia Acquires Five Point Two MnTPA Cement Assets in Central Region

Acquisition adds capacity, power and rail access

Published

on

By

Shares

Dalmia Cement (Bharat) Limited (DCBL) executed a business transfer agreement on 21 May 2026 to acquire a cement undertaking from Jaiprakash Associates Limited (JAL) and Adani Infra (India) Limited. The assets include plants at Rewa in Madhya Pradesh and Churk, Chunar and Sadwa in Uttar Pradesh with five point two million tonnes per annum (mn tpa) cement capacity and three point three mn tpa clinker capacity, plus 99 megawatt (MW) thermal power and railway sidings. The transaction carries an enterprise value of Rs 28.5 billion (bn).

DCBL, a wholly owned subsidiary of Dalmia Bharat Limited (DBL), will see cement capacity rise to 54.7 mn tpa on completion. Ongoing expansions at Belgaum, Pune and Kadapa are expected to raise capacity to 66.7 mn tpa by the second to third quarter of fiscal 2028. The company said the transaction would be consummated within two weeks.

The deal follows a framework signed in December 2022 to settle long running disputes with JAL, including a long term clinker supply arrangement. Completion was delayed when JAL entered insolvency and the earlier sale did not finalise. Following approval of a resolution plan under the Insolvency and Bankruptcy Code, DCBL executed a fresh business transfer agreement to resolve pending legal and arbitral matters.

Company statements described the acquisition as strategic, accelerating access to central markets compared with a greenfield route and offering scope for expansion through debottlenecking and brownfield investment. Proximity to the company’s captive mines and established vendor relationships should support faster ramp up. The assets should augment EBITDA delivery and enhance returns by enabling entry into newer markets with relatively better prices.

Senior executives said the addition aligned with a long term plan to build a pan India presence and would provide a head start in central markets. They noted that familiarity with the plants under earlier tolling arrangements offers operational insight and strengthens channel relationships, supporting quicker market entry. Management expressed confidence that the assets’ expansion potential would generate value for stakeholders.

Continue Reading

Concrete

Ramco Cements Reports FY26 Revenue Growth And Higher Profit

Net debt reduced as exceptional items boost FY26 earnings

Published

on

By

Shares

Ramco Cements reported standalone audited results for FY26 with net revenue of Rs 90,560 million (mn) and profit after tax of Rs 6,940 mn. EBIDTA rose to Rs 14,820 mn and blended EBIDTA per tonne was Rs 788 on a two per cent volume rise to 18.81 million (mn) tonne (t). Cement revenue increased by five per cent and construction chemicals revenue rose by 66 per cent.

Raw material cost per tonne rose to Rs 1,023 from Rs 956 mainly due to a mineral bearing land tax of Rs 160 per t in Tamil Nadu, adding about Rs 86 per t. Power and fuel cost per tonne fell to Rs 1,098 from Rs 1,123 with petcoke mix down to 47 per cent and green power up to 40 per cent.

Profit before tax after exceptional items was Rs 8,790 mn. Net exceptional items were Rs 5,530 mn, including Rs 5,740 mn from sale of surplus land and Rs 200 mn of past service cost. The company monetised Rs 10,980 mn from non core asset sales over the past two years and recorded capex of Rs 9,970 mn, with guidance of Rs 8,000 mn for FY27.

Net debt fell by Rs 8,170 mn to Rs 36,640 mn at 31 March 2026 and cost of debt eased to 7.29 per cent, reducing net debt to EBIDTA to 2.47 times. Management indicated the full impact of higher fuel costs is expected from Q2 FY27, while packing and diesel cost increases will be visible in Q1 FY27. The board has proposed a dividend of Rs two point five zero per equity share and the company flagged risks from elevated fuel and logistics costs, commodity volatility and competitive pricing.

Continue Reading

Video Thumbnail
â–¶

    SIGN-UP FOR OUR GENERAL NEWSLETTER


    Trending News

    SUBSCRIBE TO THE NEWSLETTER

     

    Don't miss out on valuable insights and opportunities to connect with like minded professionals.

     


      This will close in 0 seconds