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Overview of Indian aggregate industry

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ICR shall be publishing a series of six articles starting from this month to cover the subject of aggregates. Manufactured sand is one subset of aggregates. Cement is used as a binder with aggregates. The aggregate industry in India is an unorganised sector and undergoing a lot of changes, which were long pending, writes Sanjay Nikam, a founding member of the Aggregate Association of India.


Sanjay Nikam

Aggregate is very important building material for construction industry. Aggregate includes coarse aggregate, river sand and gravel, M-sand and aggregate for other applications. Other applications includes road base, railway ballast, soling, pitching and coastal applications. Majority of aggregates find routes in which aggregates are combined with other materials such as cement and bitumen to be used in the construction industry. Aggregates going through the cementation route is the largest user segment for aggregates and is easy to estimate as cement consumption data is well recorded and available.

Aggregates consumed in this application are typically six to eight times of the cement consumption. Adding the consumption through the other routes the overall aggregates consumption factor will be around nine to 10 times the cement consumption. In this article, we will see overview of aggregate industry in India, which include broad trends and evolution of technology.

Broad trends

Globally, India is the largest aggregates market after China, it continues to grow fast and is structurally transforming. In the absence of official statistics, the current estimated size of the market is around 3.4 billion tonne. The overall aggregates market is growing at a higher CAGR than cement over the past five years and should continue the same trend going forward on account of the government?? infrastructure thrust on expanding road and rail network.

Aggregates market in India is fragmented with more than 12,000 family businesses with small quarries and low capacity plants, dominated by local players and has very minimal presence of organised players. Every State in India has unique market and is driven by local conditions. Even royalty rules are not uniformly implemented and every state has different royalty rates/ways of collecting royalty. State-to-state sand dredging regulations are also different in India.

There are a few local aggregate manufacturers??associations in scattered clusters mainly involved in addressing cluster specific issues. However, there is no national level aggregates association for raising the standards of the Indian aggregates industry.

At present, aggregates industry in India is fragmented with low capacity plants and lack of organised players. Due to poor implementation of Health, Safety & Environment (HSE) rules by regulators, HSE standards are at nascent stage. In the past, small players were breaching HSE norms easily.However now, consequences for injuries, fatalities and breaching environmental norms are far more serious than before. With the implementation of labour laws and minimum wages act becoming stricter it will erode the competitive position of local unorganised small players who have been flouting these rules to cut costs.

As cities are growing outwards, old quarries near the city borders are finding it difficult to operate due to noise, dust and blasting issues. Simultaneously, the jump in real estate value makes existing quarry locations an attractive destination for real estate development. Both these factors exert pressure on present owners to shut the quarries and shift away from the cities.

The Indian aggregates industry is changing fast with the entry of organised players. This is happening due to the growth of RMC industry and large infrastructure projects demanding high/consistent quality aggregates and higher volumes. Urbanisation is growing at a fast rate. The proportion of urban population, which is expected to reach 30 per cent of the total population by 2020, is slated to grow further and reach 40 per cent by 2041. In fact, as per the UN Atlas of Urban Expansion, India is going to lead the world in urban growth by adding 416 million people in urban area by 2050. Thus to cater to the urban demand, major cities in India will require good quality, high volume building construction materials. Also, the compliance norms are bound to become more stringent.

Fulfilling all these parameters is difficult for local aggregate players; thus, there is an opportunity for the organised players to make an entry in the aggregate business.

In developed countries, most of the leading and successful cement players have cement, aggregates and RMC businesses and they are vertically integrated. Though India is still a developing country, some major cities of India resemble global developed countries to an extent and will have similar opportunities for leading cement companies.

Evolution of technology for aggregates

In the 1980s most aggregate crushers were of small capacities between 3 to 25 TPH. They were mostly jaw crushers with rotary screens, which were not technically up-to-date and their products were of lower quality.

However, due to initiatives of the Ministry of Surface Transport & Highways in introducing higher quality standards in 2000, aggregates were required to have flakiness and elongation index of not more than 30 per cent. In fact, the latest revision to IS383 published in 2016 limits the combined flakiness and elongation index to a maximum of 40 per cent and aggregate crushing and impact values to 30 per cent (for non-wearing surfaces) and 45 per cent (for wearing surfaces). Since, existing technology was not able to meet these new demands of quality and/or quantity, transition was made to mid-sized capacity plants (50 to 150 TPH) by introduction of cone and impact crushers. These changes incentivised the crusher/screen manufactures to innovate and design the plants to meet the market requirements.

In the last decade, with the government?? thrust on large infrastructure projects such as golden quadrilateral, express highways, airports, freight corridors, etc., the demand of high quantities of aggregates resulted in higher capacity plants ranging 200 to 350 TPH. This trend of higher capacity plants continued in commercial aggregates industry also. Enforcement of all statutory compliance are not uniform. There are many challenges for organised/responsible players to enter into long term commercial aggregates business.

One more development during the last decade was that a few States in India started restricting dredging of river sand. Due to this, crushing technology had to evolve to make good quality manufactured sand. This opened the door for advanced manufactured sand technologies made available by Terex, KEMCO (Japan), BHS (Germany), CDE (Ireland), who are globally the best technology provider.

ABOUT THE AUTHOR:

Sanjay Nikam holds a degree in Mechanical Engineering and a post graduate diploma in management. Has more than 20 years of experience in the field of ready-mixed concrete including aggregates. He has extensive exposure to international aggregate business, and presently heads a consultancy organisation since 2016. He can be reached at: suru0913@gmail.com.

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Concrete

Dalmia Acquires Five Point Two MnTPA Cement Assets in Central Region

Acquisition adds capacity, power and rail access

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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.

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Concrete

Ramco Cements Reports FY26 Revenue Growth And Higher Profit

Net debt reduced as exceptional items boost FY26 earnings

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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.

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Concrete

Dalmia Cement to Acquire 5.2 MnTPA Capacity

Deal covers cement assets in Madhya Pradesh and Uttar Pradesh

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Dalmia Cement (Bharat), a wholly owned subsidiary of Dalmia Bharat, has executed a Business Transfer Agreement with Jaiprakash Associates and Adani Infra (India) to acquire cement assets with 5.2 MnTPA capacity in the Central region.

The acquisition covers cement plants located at Rewa in Madhya Pradesh, and Churk, Chunar and Sadwa in Uttar Pradesh. The assets include 5.2 MnTPA cement capacity, 3.3 MnTPA clinker capacity, 99 MW thermal power capacity, railway sidings at Rewa and Chunar, and a common railway siding at Churk. The enterprise value of the transaction is Rs 28.5 billion.

Following completion of the transaction, Dalmia Bharat’s cement capacity will increase to 54.7 MnTPA. Its ongoing expansion projects at Belgaum, Pune and Kadapa are expected to further raise capacity to 66.7 MnTPA by the second or third quarter of FY28. The transaction is expected to be completed within two weeks.

Dalmia Cement had entered into a framework agreement with Jaiprakash Associates in December 2022 for the sale of business assets and related agreements, including a business transfer agreement and cement sale purchase agreement. The agreements were intended to settle disputes between the parties, including those under the long-term clinker supply agreement. However, the transaction could not be completed after Jaiprakash Associates was admitted to insolvency.

Following approval of the Adani Group’s resolution plan for Jaiprakash Associates under the Insolvency and Bankruptcy Code, Dalmia Cement requested that the earlier agreement be considered to settle pending disputes. The company has now executed a fresh Business Transfer Agreement with Jaiprakash Associates and Adani Infra (India) for the cement undertaking.

The acquisition supports Dalmia Bharat’s strategy to become a pan-India cement player and provides faster access to Central markets compared to a greenfield project. The assets also offer expansion potential through debottlenecking and brownfield development.

Puneet Dalmia, Managing Director and CEO, Dalmia Bharat, said the assets are a strong strategic fit and will help the company serve high-potential markets in the Central region. He added that the expansion potential of the assets and their proximity to Dalmia’s captive mines could help create a future capacity hub.

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