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We have always been active towards any social cause

Published

3 years ago

October 19, 2021

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Parmanand Patiwar Director – Public Relations, Wonder Cement Ltd
Wonder Cement is relatively a new entrant in the cement business, having its plant at Rajasthan. The company is going all out to commit itself to the people of Rajasthan for their health requirements. Parmanand Patiwar, Director – Public Relations, Wonder Cement Ltd, in conversation with the ICR team.

Explain the journey of Wonder Cement into CSR-related activities.
As a group, Wonder Cement has always been active towards any social cause. In fact, our parent company RK Marble is very active socially. We have been in the marble business since 1989 and then later ventured into cement. Our directors have extended helping hands to local communities in the past. We were initially into mining and now got into manufacturing. Our motto has always been to get connected with the people we work with, the problems associated with those people wherever we do business. We aim to improve their lifestyles. Since the beginning this has been our objective. We have a charitable trust by the name Ratanlal Kanwarlal, which is of RK Marble, and our directors are the trustees. The trust extends helping hand to those who are in need of support.

So, are you now operating through the same trust or there is a different trust created?
When Wonder Cement became a body corporate, we started doing these activities under different name in different areas. In other places, it is done in the name of Wonder Cement.

Now that you are doing this individually, are you doing with the help of another organisation?
No, we have our own in-house team taking care of this. We have our own hospital and qualified doctors attending the patients. For expert doctors, we take help from district hospitals. We hold camps in neighbouring areas and we also provide them with medical facilities.

Have you at anytime joined hands with NGOs?
Wonder Cement is doing all the programmes directly. But there are also certain agriculture-related activities for which we have joined hands with local NGOs for handling activities. In medical camps, we take help from societies like Indian Red Cross, etc.

What is the area you normally cover? Any plans for expansion?
Wonder Cement is a new and growing company, and hence we have started this initiative in the district where we have our cement plant. However, we plan to grow this activity in the neighbouring areas as well.

What kind of medical help do you provide to the people coming to the health camps?
During health camps, we generally carry out regular check ups only. There are people coming from small villages and towns who do not even know the problems they are facing. We make them aware of the possible problems and treat them. Those who require surgery, we inform them accordingly. They are advised to come to our hospital or go to some other hospital if required. If the patient has some financial issues, we also provide them with financial aid. Normally, the medicines are given free of cost.

What are the limitations at the camps?
There are no operation theatre at the camp. Necessary check ups like blood pressure and other important parameters of urine, blood, etc. are tested at camps. We generally carry out basic tests only.

How many people can be accommodated during health camps?
It all depends on the size of the village. A minimum of 50 to a maximum of 500. The number increases when there are patients with fever and viral infections.

What is the duration of the camp?
Usually it is for a day only, but again it all depends on the number of people participating. We have already fixed dates for health camps for different villages and towns. If someone misses one location of the camp, he can always come to a neighbouring village. We keep four camps in a month. We start around 9.30 am and end around 4-5 pm. If there are more patients then the time extends till we check all the patients.

In this case, how do you identify which village you should go to first and which one later?
We have already chalked out a monthly plan to where to start and where to end. We change our plan only during the emergency. For e.g: If there is an emergency or break of an epidemic in a village, then we go out of the way and reach there on priority. Otherwise we follow the plan.

Generally, what is the age group that comes to the camp?
Usually older people come to the camp. Women and pregnant women are more in number. Young people visit only during emergency.

Are there any special facilities for pregnant women?
Yes, we do have a gynecologist present at camp site. There are also counseling sessions taking place at the camp. Counseling topics include family planning and planned pregnancy.

How has been the response so far?
The response has been excellent so far. Each and every person wants to be aware about his health and he is getting an opportunity like this being at home. The needy who cannot go to the city, gets himself checked at the camp. Many a times, people are unaware of their problems and hence through this, we are spreading health awareness.

How do you guide older patients?
For cataract operation, we have an eye hospital, Dr Gomabai Hospital, in Neemuch, Madhya Pradesh. We group them in 4-5 camps and take them together to the nearby hospital and we get them operated. We make a list and call them to our factory if required and then take them to a hospital where they get operated. We do take them again when they need to undergo follow ups.

What about the budget for this health camp?
We have an open budget. We are open for all needy people and there is no budget constraint.

Do you get any support or cooperation from the concerned MPs or MLAs?
We call them to inaugurate the camp, we honour them, and they have always been supportive to our cause. Sometimes, they do suggest where to arrange the camp. We are open to their suggestions.

What is the company?s philosophy and principle regarding this initiative?
We are running an industry here and getting so much from the nature and from the people over here. This is a little way we can return what we have been getting. If we are able to spread across the message of health, then we have done a bit to the locals over here.

Apart from healthcare, are there any other activities undertaken by Wonder Cement?
If yes, kindly elaborate.
Everyone expects to get into direct or indirect employment with us. But we cannot satisfy each and everyone. Hence, we are putting in efforts to provide coaching to the bright students in the nearby areas. With this, they can at least find a job somewhere else. We have opened free coaching classes for youth in small villages. We are not giving the jobs directly but we are helping them to get the jobs.

Also, in some schools there are no toilets. We have provided toilet facilities to such schools. We are also giving Rs 1 lakh every year to a school for its basic day-to-day needs and expenses. Under Swachch Bharat Abhiyaan, we have taken up sanitation project for constructing about 1,000 toilets in the neighbouring villages. At present, we have completed more than 50 per cent of that project. We have also provided sanitation facilities in about 150-200 schools.

Wonder Cement has constructed community centres in about 2-3 villages. Our vision is to have community centres is all villages where the villagers can hold their meetings, functions and do other work.

At times, we have joined hands with Government departments to make roads. We are doing drainage work and preliminary health centres in villages. We are making shades at the cremation grounds. To spread eco-friendly awareness, we are also planting trees in schools and villages and in panchayat areas.

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Price hikes, drop in input costs help cement industry to post positive margins: Care Ratings

Published

3 years ago

October 21, 2021

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Region-wise,the southern region comprises 35% of the total cement capacity, followed by thenorthern, eastern, western and central region comprising 20%, 18%, 14% and 13%of the capacity, respectively.

The cement industry is expected to post positive margins on decent price hikes over the months, falling raw material prices and marked drop in overall production costs, said an analysis of Care Ratings.

Wholesale and retail prices of cement have increased 11.9% and 12.4%, respectively, in the current financial year. As whole prices have remained elevated in most of the markets in the months of FY20, against the corresponding period of the previous year.

Similarly, electricity and fuel cost have declined 11.9% during 9M FY20 due to drop in crude oil prices. Logistics costs, the biggest cost for cement industry, has also dropped 7.7% (selling and distribution) as the Railways extended the benefit of exemption from busy season surcharge. Moreover, the cost of raw materials, too, declined 5.1% given the price of limestone had fallen 11.3% in the same aforementioned period, the analysis said.

According to Care Ratings, though the overall sales revenue has increased only 1.3%, against 16% growth in the year-ago period, the overall expenditure has declined 3.2% which has benefited the industry largely given the moderation in sales.

Even though FY20 has been subdued in terms of production and demand, the fall in cost of production has still supported the cement industry by clocking in positive margins, the rating agency said.

Cement demand is closely linked to the overall economic growth, particularly the housing and infrastructure sector. The cement sector will be seeing a sharp growth in volumes mainly due to increasing demand from affordable housing and other government infrastructure projects like roads, metros, airports, irrigation.

The government’s newly introduced National Infrastructure Pipeline (NIP), with its target of becoming a $5-trillion economy by 2025, is a detailed road map focused on economic revival through infrastructure development.

The NIP covers a gamut of sectors; rural and urban infrastructure and entails investments of Rs.102 lakh crore to be undertaken by the central government, state governments and the private sector. Of the total projects of the NIP, 42% are under implementation while 19% are under development, 31% are at the conceptual stage and 8% are yet to be classified.

The sectors that will be of focus will be roads, railways, power (renewable and conventional), irrigation and urban infrastructure. These sectors together account for 79% of the proposed investments in six years to 2025. Given the government’s thrust on infrastructure creation, it is likely to benefit the cement industry going forward.

Similarly, the Pradhan Mantri Awaas Yojana, aimed at providing affordable housing, will be a strong driver to lift cement demand. Prices have started correcting Q4 FY20 onwards due to revival in demand of the commodity, the agency said in its analysis.

Industry’s sales revenue has grown at a CAGR of 7.3% during FY15-19 but has grown only 1.3% in the current financial year. Tepid demand throughout the country in the first half of the year has led to the contraction of sales revenue. Fall in the total expenditure of cement firms had aided in improving the operating profit and net profit margins of the industry (OPM was 15.2 during 9M FY19 and NPM was 3.1 during 9M FY19). Interest coverage ratio, too, has improved on an overall basis (ICR was 3.3 during 9M FY19).

According to Cement Manufacturers Association, India accounts for over 8% of the overall global installed capacity. Region-wise, the southern region comprises 35% of the total cement capacity, followed by the northern, eastern, western and central region comprising 20%, 18%, 14% and 13% of the capacity, respectively.

Installed capacity of domestic cement makers has increased at a CAGR of 4.9% during FY16-20. Manufacturers have been able to maintain a capacity utilisation rate above 65% in the past quinquennium. In the current financial year due to the prolonged rains in many parts of the country, the capacity utilisation rate has fallen from 70% during FY19 to 66% currently (YTD).

Source:moneycontrol.com

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Wonder Cement shows journey of cement with new campaign

Published

3 years ago

October 21, 2021

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The campaign also marks Wonder Cement being the first ever cement brand to enter the world of IGTV…

ETBrandEquity

Cement manufacturing company Wonder Cement, has announced the launch of a digital campaign ‘Har Raah Mein Wonder Hai’. The campaign has been designed specifically to run on platforms such as Instagram, Facebook and YouTube.

#HarRaahMeinWonderHai is a one-minute video, designed and conceptualised by its digital media partner Triature Digital Marketing and Technologies Pvt Ltd. The entire journey of the cement brand from leaving the factory, going through various weather conditions and witnessing the beauty of nature and wonders through the way until it reaches the destination i.e., to the consumer is very intriguing and the brand has tried to showcase the same with the film.

Sanjay Joshi, executive director, Wonder Cement, said, "Cement as a product poses a unique marketing challenge. Most consumers will build their homes once and therefore buy cement once in a lifetime. It is critical for a cement company to connect with their consumers emotionally. As a part of our communication strategy, it is our endeavor to reach out to a large audience of this country through digital. Wonder Cement always a pioneer in digital, with the launch of our IGTV campaign #HarRahMeinWonderHai, is the first brand in the cement category to venture into this space. Through this campaign, we have captured the emotional journey of a cement bag through its own perspective and depicted what it takes to lay the foundation of one’s dreams and turn them into reality."

The story begins with a family performing the bhoomi poojan of their new plot. It is the place where they are investing their life-long earnings; and planning to build a dream house for the family and children. The family believes in the tradition of having a ‘perfect shuruaat’ (perfect beginning) for their future dream house. The video later highlights the process of construction and in sequence it is emphasising the value of ‘Perfect Shuruaat’ through the eyes of a cement bag.

Tarun Singh Chauhan, management advisor and brand consultant, Wonder Cement, said, "Our objective with this campaign was to show that the cement produced at the Wonder Cement plant speaks for itself, its quality, trust and most of all perfection. The only way this was possible was to take the perspective of a cement bag and showing its journey of perfection from beginning till the end."

According to the company, the campaign also marks Wonder Cement being the first ever cement brand to enter the world of IGTV. No other brand in this category has created content specific to the platform.

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In spite of company’s optimism, demand weakness in cement is seen in the 4% y-o-y drop in sales volume. (Reuters)

Published

3 years ago

October 21, 2021

admin

Cost cuts and better realizations save? the ?day ?for ?UltraTech Cement, Updated: 27 Jan 2020, Vatsala Kamat from Live Mint

Lower cost of energy and logistics helped Ebitda per tonne rise by about 29% in Q3
Premiumization of acquired brands, synergistic?operations hold promise for future profit growth Topics

UltraTech Cement
India’s largest cement producer UltraTech Cement Ltd turned out a bittersweet show in the December quarter. A sharp drop in fuel costs and higher realizations helped drive profit growth. But the inherent demand weakness was evident in the sales volumes drop during the quarter.

Better realizations during the December quarter, in spite of the 4% year-on-year volume decline, minimized the pain. Net stand-alone revenue fell by 2.6% to ?9,981.8 crore.

But as pointed out earlier, lower costs on most fronts helped profitability. The chart alongside shows the sharp drop in energy costs led by lower petcoke prices, lower fuel consumption and higher use of green power. Logistics costs, too, fell due to lower railway freight charges and synergies from the acquired assets. These savings helped offset the increase in raw material costs.

The upshot: Q3 Ebitda (earnings before interest, tax, depreciation and amortization) of about ?990 per tonne was 29% higher from a year ago. The jump in profit on a per tonne basis was more or less along expected lines, given the increase in realizations. "Besides, the reduction in net debt by about ?2,000 crore is a key positive," said Binod Modi, analyst at Reliance Securities Ltd.

Graphic by Santosh Sharma/Mint
What also impressed analysts is the nimble-footed integration of the recently merged cement assets of Nathdwara and Century, which was a concern on the Street.

Kunal Shah, analyst (institutional equities) at Yes Securities (India) Ltd, said: "The company has proved its ability of asset integration. Century’s cement assets were ramped up to 79% capacity utilization in December, even as they operated Nathdwara generating an Ebitda of ?1,500 per tonne."

Looks like the demand weakness mirrored in weak sales during the quarter was masked by the deft integration and synergies derived from these acquired assets. This drove UltraTech’s stock up by 2.6% to ?4,643 after the Q3 results were declared on Friday.

Brand transition from Century to UltraTech, which is 55% complete, is likely to touch 80% by September 2020. A report by Jefferies India Pvt. Ltd highlights that the Ebitda per tonne for premium brands is about ?5-10 higher per bag than the average (A cement bag weighs 50kg). Of course, with competition increasing in the arena, it remains to be seen how brand premiumization in the cement industry will pan out. UltraTech Cement scores well among peers here.

However, there are road bumps ahead for the cement sector and for UltraTech. Falling gross domestic product growth, fiscal slippages and lower budgetary allocation to infrastructure sector are making industry houses jittery on growth. Although UltraTech’s management is confident that cement demand is looking up, sustainability and pricing power remains a worry for the near term.