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Transforming perception

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We are witnessing the journey of cement from commodity to brand, and there have been several facets of this journey. One important aspect is packaging. The primary objective of packaging is to contain, protect and preserve a product as well as support its handling and final presentation. It is an integral part of product planning and promotion. Packaging refers to the process and design, evaluation and production of packages.

Functions of Packaging

  • Promotion and selling of the product: To create a brand identity the packaging needs to be attractive, colourful, and visually appealing packages have promotional value. A well designed package is a powerful selling device because it helps the product stand out from the competitors.

  • Defining product identity: It is sometimes used to promote an image such as prestige, convenience or status. Can be a crucial part of marketing strategy particularly in advertising.

  • Providing information: Packages give directions for product use, information about guarantees, production related information like week of manufacturing, BIS Specification number, dos and don??s, etc. It also provides place and address of the manufacturer. Few of the marketing professionals are of the view that the bag not only should be attractive in looks but also should communicate with the customer. The colour and design should be disruptive, yet should reflect positivity.

  • Protecting the product: For cement it is important that the packaging should be durable and strong enough so that there is no tampering or spoiling during shipping and delivery of the packages. Being a hygroscopic material, it can easily attract moisture.

It is interesting to see the cement bag?? journey from plant to the end user; it reveals some areas of stress. Like oozing bags, due to iron hooks used by loaders, it has been a chronic problem in handling a cement bag consignment. At majority of places in our country like railway yards, truck loading bays and unloading in ware houses, at the consumption points, iron hooks are rampantly used by the labourers doing the job manually. Due to political interference in the job, the practice is continuing unabated. The quality of bags is another issue for bag bursting. The problem can be eased only by automating the process.

Cement packaging is conventionally done in bags and sacks. These bags and sacks can be made out of paper or plastic, jute. In India for long time we were using jute bag in spite the consumer disliked it but in order to support the jute industry a decision was taken to use jute bags. Then came the age of HDPE and PP bags. Paper as a packaging material was too expensive for us. But paper as a packaging material is favoured in European countries. In few micro markets of our country, paper bags are preferred. Paper bags are usually heavy-duty bags and sacks that are manufactured using multiple layers of paper and can be coated with layers of plastic films to provide a barrier against moisture. Paper bags did not get popular in our country mainly due to the methodology used in handling of paper bags.

The bag handlers always charge more rates for paper bags. However, woven and nonwoven plastic bags can also be employed for cement packaging. These bags can hold up to 50 kg of cement without damage. Bags and sacks used for cement packaging also offer printing area on its surface for branding and promotion of the product. Cement producers never thought of producing bags for their use until the recent past because it has been very convenient to source such a low cost material from outside as and when required. Normal PP bag costs around Rs 9 to 11 per piece and a laminated PP bag costs nearly Rs 15 per piece.

For cement companies, it is backward integration to produce bags for captive use. We suggest our readers to go through the interview of M Ravinder Reddy, Head of Marketing ??Vicat Group (India) and Director Marketing of Bharathi Cement, in the same issue for more information.

Starlinger from Austria in Europe is one of the notable companies in production of machinery for sacks, packaging fabrics and technical textiles woven from plastic tapes. The company has a strong presence in India. Its product AD*STAR cement packaging is a well-known sack concept which has been adopted across the world. The main advantage of using AD*STAR cement sacks is reduction in the bag breakage/ bursting.

What is AD*STAR?

??D*STAR ??is a trademark that can be used as a packaging solution only for the bags manufactured by Starlinger’s end-to-end machinery. Off late many cement manufacturers in India have been using AD*STAR packaging solutions for packing of premium cements in order to differentiate from normal cement.

Since it involves use of technology few cement companies thought that it would be advisable to produce the bags rather than to source these from outside. Considering the quantum of usage it has been felt necessary to produce the bags close to the cement manufacturing unit. Some ingredients of the bags are occasionally imported if not locally available. Various studies show that the use of high-grade virgin polypropylene for fabric production and the tight sealing of the sack bottom and top ensure low breakage even during rough handling, dropping, or after contact with water.

The studies in terms of global warming in use of bags show different results in different countries. E.g. the production phase of AD*STAR sacks have less impact on global warming than paper bags in Saudi Arabia because transportation contributes more to the global warming since the raw materials for the paper sacks have to be shipped which is not the case with AD*STAR bags. In short AD*STAR sacks show that it is environmentally friendlier packaging in terms of acidification potential (acid rain), ozone depletion potential, photochemical ozone creation potential (causes summer smog), as well as energy and fresh water consumption.

Regional preference

The geographical analysis of the cement packaging market has revealed that demand for cement packaging solutions is likely to be fueled by developing countries of the Asia Pacific and the Middle East & Africa. In countries such as India and China, polypropylene cement packaging is used most prominently. The material used for making cement bags is usually recycled, and bags are sewn by hand operated machines at large factories. Furthermore, China is one of the leading manufacturers of cement and has a high impact on the dynamics of the cement packaging industry.

Also, the Middle East region has witnessed the establishment of several new cement plants and revamped the existing ones, to cater to the growing demand for construction material. Hence, the sales of cement packaging solutions are growing at present. The market in the Middle East is turning to PP laminated bags from paper.

Paper v/s plastic

For years, there has been a debate on whether paper packaging is better for the environment than plastic. While the general belief is that paper products are more environmentally friendly because they are made from a renewable source, but the argument that paper is more sustainable than plastic is not so straight forward. Some of these misconceptions are due to not considering the entire life cycle of the bag. It is not a simple case of looking at how bags are being disposed of or how long they take to degrade; other aspects also have an impact on the environment.

While plastic packaging can have a bad reputation, banning them and moving solely to paper products could have other adverse effects. In the end, we need to remember the way we use these products to make the greatest difference, not just the bag itself! The most important decision we can make is to choose packaging that doesn?? end in landfills when it doesn?? have to and to select biodegradable options when recyclable options don?? exist.

HDPE and PP

HDPE stands for high-density polyethylene, is a versatile plastic known for its unique benefits. It is commonly used to create containers like milk and water jugs, water tanks etc. However, HDPE can remain flexible as well. For example, plastic bags. Long-lasting, weather resistant, and capable of carrying weight ??whether rigid or flexible.

PP, which stands for polypropylene plastic, is a type of plastic that is specifically known for its semi-crystalline nature. Additionally, PP is a lighter material compared to other types of plastic like HDPE. This makes it an ideal alternative across a variety of commercial applications. Polypropylene plastic is found in everything from ropes to carpets and clothing. It?? relatively affordable commercial material. Presently cement industry uses PP bags.

Additionally, PP is a lighter material compared to other types of plastic. This makes it an ideal alternative across a variety of commercial applications.

Cement packaging market: Key players

Apart from Starlinger from Austria the other key players operating in the global cement packaging market are Mondi Plc, LC Packaging International BV, Gascogne SA, Bischof + Klein SE & Co. KG, Uflex, Taurus Packaging, Unisun packaging, Gempack, Volgopromtrans LLC, ToolAsian Polysacks, Edna Group, and Rosenflex UK.

Concrete

Cement Makers’ Margins To Fall Rs 50-75 Per Tonne Amid West Asia Conflict

Crisil Sees Margins Easing Despite Steady Demand

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Crisil said operating margins of Indian cement manufacturers are expected to decline by Rs 50-75 per tonne (t) this fiscal to Rs 925-950 per t due to higher input costs triggered by the West Asia conflict. The analysis covered 18 cement companies accounting for nearly 90 per cent of India’s domestic cement capacity and noted margins had improved sharply to around Rs 1,000 per t in fiscal 2026.

Crisil noted that the reduction would be driven mainly by higher power and fuel costs, which account for about 30 per cent of total costs, as petcoke and imported coal prices have surged amid geopolitical uncertainties. Freight costs, which account for about a quarter of total costs, are also expected to remain elevated because of higher diesel prices. The impact on profitability is likely to be more pronounced in the first half of the fiscal year before easing commodity prices moderate cost pressures later.

The rating agency said steady domestic demand and strong balance sheets should keep credit profiles stable despite the moderation in margins. Green energy currently accounts for 35-40 per cent of the sector’s total electricity consumption and is expected to partly cushion higher energy costs. Operating cash flows are likely to remain resilient, supported by projected 6-7 per cent growth in cement demand this fiscal.

Crisil highlighted that demand growth will be driven primarily by infrastructure spending, which meets about one-third of sector consumption, and by a nearly 18 per cent higher budgetary allocation for core ministries that should support project execution. Weaker rural housing demand amid pressure on agricultural incomes from a possible below-average monsoon may be offset by improved urban housing demand supported by favourable home-loan rates and a strong pipeline of Pradhan Mantri Awas Yojana-Urban projects. Ongoing capacity additions will keep capital expenditure elevated and may lift net debt to EBITDA to between 1.2 and 1.4 times from around 1.0 time last fiscal, though ratios are expected to remain healthy.

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Concrete

UltraTech Board Approves Rs 50 bn Fundraise Via NCDs

Company to issue half a million debentures for expansion plan

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UltraTech Cement’s board of directors has approved raising Rs 5,000 crore (Rs 50 bn) through non?convertible debentures issued in rupees.

The finance committee cleared a proposal to issue up to 500,000 fully paid, unsecured, listed, rated, redeemable, rupee?denominated, non?convertible, non?cumulative debentures of Rs 1 lakh each (Rs 0.1 mn each), aggregating to the Rs 5,000 crore programme.

As of June 2026 the firm reported net debt of Rs 15,875 crore (Rs 158.75 bn) and said its capacity expansion projects under execution are backed by capital expenditure of about Rs 17,000 crore (Rs 170 bn) over the next two to two?and?a?half years.

UltraTech spent Rs 9,500 crore (Rs 95 bn) on capital expenditure in financial year 2026 and in April the group crossed 200.1 mn tonnes per annum of domestic grey cement capacity and 205.5 mn tonnes per annum of global capacity.

The chief financial officer indicated the company would take consolidated capacity beyond 242 mn tonnes per annum, with grey cement capacity reaching 212.7 mn tonnes per annum by the end of financial year 2027. He noted the net debt?to?earnings before interest, taxes, depreciation and amortisation ratio stood at 0.87 times as of June 2026 and the company was confident of ending financial year 2027 with the ratio below one time.

In the first quarter of financial year 2026?27 UltraTech’s net profit attributable to owners rose 16.8 per cent year?on?year to Rs 2,599.3 crore (Rs 25.993 bn) and revenue from operations increased 15.9 per cent to Rs 24,648.20 crore (Rs 246.482 bn). The board approval is expected to complement internal cash flows as the company advances its expansion programme.

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Concrete

Lokesh Lays Stone For Rs 31 Billion Cement Unit In Kadapa

Line-2 expansion to make Kadapa a major cement hub

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Andhra Pradesh Education and IT Minister Nara Lokesh on Wednesday laid the foundation stone for the Line-2 expansion of Dalmia Bharat Cement at Chinnakomerla village in Mylavaram Mandal in Kadapa district. The project carries an investment of Rs 31 billion (bn) and is slated for completion by the third quarter of the financial year 2028. The expansion is intended to boost industrial growth and employment generation across the Rayalaseema region.

Once commissioned, the Kadapa facility will become Dalmia Bharat’s largest integrated cement manufacturing ecosystem in southern India, creating over 1,000 direct and indirect jobs and opening new business avenues for regional micro, small and medium enterprises and transport operators. Lokesh said the expansion signalled growing corporate confidence in the state and reflected the practical ease of doing business that secured repeat investment.

He placed the project within the government’s wider economic targets and recalled the Yuvagalam padayatra commitment to generate two million (mn) jobs within five years, noting that the state would cultivate talent while industry created opportunities. Lokesh highlighted Andhra Pradesh’s competitive pursuit of major manufacturing accounts, mentioning past successes and a personal initiative to engage global investors when persuading them to anchor expansion in the state.

The plant will leverage Kadapa’s abundant limestone reserves to scale production and sustainability. Clinker capacity is planned to rise from two point five million tonnes per annum (mn tpa) to six point one mn tpa, while overall cement output will increase from three point six mn tpa to nine point six mn tpa. The unit is designed to operate on over eighty per cent renewable energy and deploy waste heat recovery, zero liquid discharge, water recycling and advanced AI systems to optimise efficiency. Industries Minister TG Bharat, BC Welfare Minister S. Savitha and Jammalamadugu MLA C. Adinarayana Reddy attended the ceremony.

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