Connect with us

Concrete

Overview of Indian aggregate industry

Published

on

Shares

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.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published.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

Concrete

Dhanekula Institute Signs MoU with Adani Cement

Agreement to expand internships, industrial visits and practical learning

Published

on

By

Shares

The Department of Civil Engineering at Dhanekula Institute of Engineering & Technology, Ganguru, organised an industrial interaction programme under the Adani FutureX Programme on Thursday. The programme focused on strengthening engagement between the institute and the cement industry while giving students greater exposure to professional practices.

Yedukondalu, technical head for Andhra Pradesh and Telangana at Adani Cement, delivered a technical lecture on concrete as a man-made material. The session covered the importance of concrete in construction, its properties and applications, and its significance in modern infrastructure development.

The lecture also addressed the role of quality cement and suitable concrete technology in supporting durable and sustainable construction. The discussion connected classroom learning with the technical considerations involved in infrastructure projects and construction practices.

A key part of the programme was the signing of a memorandum of understanding (MoU) between the Department of Civil Engineering and Adani Cement under the Adani FutureX Partnership Agreement. The agreement is intended to strengthen industry-academia collaboration through opportunities for student internships and industrial visits.

The initiative is expected to provide students with practical exposure, improve their understanding of industrial practices and help bridge the gap between theoretical knowledge and real-world applications. Dhanekula Institute Chairman Dhanekula Ravindranath Tagore, Secretary Dhanekula Venkata Bhavani Prasad and Director DKRK Ravi Prasad supported the initiative, with the institute leadership highlighting the importance of industry-institution interaction in enhancing students’ technical employability.

Continue Reading

Concrete

JK Lakshmi Cement Begins Rs. 110 bn Assam Plant Project

Project Kamakshi will produce 2.5 mn t of cement annually by FY2029.

Published

on

By

Shares

JK Lakshmi Cement has laid the foundation stone for Project Kamakshi, its first integrated cement manufacturing facility in Assam, marking the company’s entry into Northeast India. The groundbreaking ceremony took place 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 bn, including the mining lease. It will have annual cement production capacity of 2.5 mn t and a 1 mn t clinkerisation unit, with completion scheduled for FY2029.

The facility is expected to create more than 2,000 jobs and will primarily serve the growing Northeast market. It will also include dedicated railway sidings for transporting raw materials and finished cement, supporting supply chain reliability and regional distribution.

Chairperson and Managing Director Vinita Singhania said the project represented the beginning of a long-term relationship with Assam and the wider Northeast. She said the plant would help provide locally produced cement, employment and dependable supplies as the region’s infrastructure development accelerated, while enabling the company to grow alongside the communities it serves.

The investment supports JK Lakshmi Cement’s strategy of expanding into high-growth markets beyond its established presence in Northern, Western and Eastern India. The company expects the project to contribute to regional economic development and infrastructure growth while pursuing its long-term objective of achieving net-zero emissions by 2047.

Continue Reading

Concrete

Kshatriya Engineering College Signs MoU with Adani Cement

Agreement to provide students with industrial exposure and training

Published

on

By

Shares

The civil engineering department of Kshatriya Engineering College in Nizamabad has signed a memorandum of understanding (MoU) with Adani Cement to provide students with industry-oriented training and practical exposure. The agreement is intended to connect classroom learning with workplace requirements in the construction sector.

Under the partnership, students will receive opportunities to take part in industrial visits and internships. The arrangement will also include guest lectures by industry experts and guidance on live projects, allowing students to gain first-hand understanding of industry practices and emerging construction technologies.

College secretary and correspondent Aljapur Devender said the initiative was designed to bridge the gap between academic instruction and industry expectations. He said the collaboration would help students develop practical skills and improve their employment prospects after completing their studies.

Principal Dr Katakam Srinivas said exposure to industrial practices was important for civil engineering students and would complement their academic learning. He said the MoU would support the development of their technical knowledge and confidence through greater familiarity with professional work environments.

Administrative officer B. Narender said the collaboration would familiarise students with modern construction technologies, quality standards and project management practices. Civil engineering department head N. Deepika said the agreement would help students understand recent developments in the construction sector and prepare for professional careers. The college said the partnership would give learners a broader view of the processes and standards followed in the industry, while helping them relate their academic studies to practical project requirements.

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