Economy & Market

Logistics is the biggest cost component in the whole chain of RMC business.

Published

5 years ago

October 14, 2021

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More than 80 per cent of concrete produced in developed nations is used as ready- mix. In India, however, it is less than nine per cent. What is stopping the RMC market from taking off? ICR interacts with Bankat Mandhania, Director, Ashtech (India), a leading cement and ready- mix concrete manufacturer in the country, to get some insights. Excerpts from the interview.

How is the RMC market performing?

If you talk about growth, yes it is there as more people are realising the advantages of using RMC. Once someone uses RMC, he is bound to be convinced of the advantages. After this, he will be ready to shell out extra for the product since what is gained in return is good service along with a good product. As per sustainability, the business goes on as there is no entry barrier to the RMC sector. Anybody can set up a RMC unit. So it is open to competition. We do not get premium for a brand name. Leading cement companies are out there in the RMC business, but if you see the revenues, they are not making too much money there. But they are there for sure.

Why is the demand for RMC so little in India compared to foreign countries?

Though the demand is less in India, the RMC market is growing. Yes, it is true that in foreign countries today, 90 per cent of the concrete manufactured is sold in RMC form. Here things are a bit different. If you check Indian markets, almost 70 per cent of the cement is sold in bags. That gives you a comparison between the two. Masons and builders here need to be updated and that takes time. But once the builder uses RMC, he understands the advantage. It also requires some volume of work to be done over a period of time. But those into constructing small buildings and two floor apartments are will not go for RMC. Once we start doing sizeable projects, the construction community will experience the benefits of RMC first- hand.

Is the equipment readily available for RMC production?

You have the entire spectrum of manufacturers in India. You have players from Ahmedabad-based companies catering to local markets and foreign multinationals. There is a vast spectrum of RMC equipment to choose from. All the standard equipment is from standard manufacturers worldwide so you are not compromising on quality of equipment for sure. Availability is not a problem, the choice is there, and any type or size is there.

It is said that crushed sand is not as good as natural sand. What is your take on this?

The natural sand that we are talking about is no longer available. There is no river sand anymore in the area of Mumbai. We are using creek sand which is by itself, never recommended. It is as an alkaline material. River sand was used in the British era, ferried from Gujarat. So Marine Drive and everything that is British- built, was all done with river sand. They got it 60 years back to ensure quality construction; there is no river sand as such in India today. Also, in the name of manufactured sand, we are using powder and that is stone dust. For manufactured sand you need a VSI plant, which has come into Mumbai just a few years ago. Pune is more mature in terms of sand use. They are using crushed sand for plasters too. Now crushed sand manufactures here too, have fantastic gradations available with them.

Are we stuck with the minimum grades of concrete?

The grade of concrete depends on the end application. The more challenging the structural demand, the higher the grade of concrete used is. It is wrong to say we cannot do it. M70 is what we used for the JJ flyover about seven years ago. The Bandra-Worli Sea link is made with M60 grade concrete. All Metros have got M60 specified material. So we are able to manufacture a wide range of concrete. The biggest market here is the residential market where buildings are from four floors to 40 floors. M30 grade concrete will satisfy the structural demands of a four- floor building. The higher the building, the higher the grade requirement is. World One (the worldÂ´s tallest residential tower by the Lodha Group) is using M90; they are producing it and they are doing a good job. We have variations in grade available to suit our requirements and we also have a good knowledge base.

Is skilled workforce available adequately?

We are definitely falling short of good quality manpower. There is a shortage of quality control people, too. We are nowhere near the international standards of an available workforce in terms of quality and in sufficient quantity. In India, people have little option but to compromise on a lot of things. Although the country sees large numbers of engineers graduating every year, very few of them are employable. Whether we can handle this type of concrete demand is a question mark. You have enough civil engineers but are they really employable?

How do you deal with it? Do you have a separate training module for them?

We take two to three civil engineers every year and we mould them. You have to nurture them. Employability or job requirement is something you have to pay attention to and you have to take that effort and make sure that they understand and learn the industryÂ´s requirements. Then, a couple of years down the line, you can give them additional responsibilities. We take fresh engineers every year. When we see candidates with good potential, we create opportunities for them and ensure that they stay with us. Skill shortage is an issue in RMC.

What are the other challenges encountered in the RMC sector?

Logistics is the biggest cost component in the whole chain. The transit mixer costs almost Rs 30 lakh and it can deliver only that much quantity in a day. The stronger the asset base, the better the company, and it can be relied upon by the consumer as a supplier. It works both ways. You have to ensure that the deliveries are made on time and that the material is poured as per schedule irrespective of hassles such as traffic or roadblocks. The system must be robust enough to absorb and respond to any issue that can pop up on the fly.

So how do you manage this?

We have 74 transit mixers and 24 pumps. We follow a process of sending a questionnaire to our consumer that asks for all the details including the peak requirement for the material. Based on this, we design equipment required for the work. That determines if there are going to be two slabs every day for one site, so a minimum of two pumps and seven transit mixers are required, and that too, if the site is close. But if the same site is far away, I will need 12 transit mixers. So having a complete understanding of the customer`s requirement and a solid contingency plan in place is key in this business.

Concrete

Cement Makers Reaffirm Commitment to Sustainable Growth

Published

1 hour ago

June 5, 2026

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World Environment Day spotlight on innovation and circularity

On World Environment Day, the Indian cement industry reiterated its commitment to supporting India’s climate ambitions through sustainable manufacturing, resource efficiency and the adoption of cleaner technologies.

The Cement Manufacturers’ Association (CMA) said the sector remains aligned with the Government of India’s Net Zero commitments and is accelerating efforts to reduce its environmental footprint while supporting the country’s infrastructure and development agenda.

Parth Jindal, President, CMA and Managing Director, JSW Cement, said the industry is increasingly adopting cleaner technologies, improving energy efficiency and expanding the use of alternative fuels and raw materials. He also highlighted the growing importance of circular economy practices, where industrial by-products and waste streams from one sector are utilised as resources in another.

“The Indian Cement Industry is aligned to the Government’s commitments on carbon mitigation and is accelerating the adoption of cleaner technologies, resource efficiency and circular economy practices while actively exploring the potential of Carbon Capture, Utilisation and Storage (CCUS) as a critical pathway for deep decarbonisation,” said Jindal.

He added that coprocessing industrial waste and by-products helps conserve natural resources, reduce disposal requirements and lower the environmental footprint across multiple sectors.

According to Jindal, sustainability is no longer limited to manufacturing processes but is increasingly influencing investment decisions, innovation strategies and long-term growth plans within the industry.

Echoing similar views, Dr Raghavpat Singhania, Vice President, CMA and Managing Director, JK Cement, said sustainable development extends beyond emissions reduction and must also focus on responsible resource utilisation and waste minimisation.

“Sustainability in the built environment cannot be measured by emissions alone. It is equally about how efficiently we use resources, how effectively we minimise waste and how responsibly we create the infrastructure that will serve future generations,” said Singhania.

He noted that the cement industry is advancing its sustainability agenda through greater resource efficiency, increased circularity, technological innovation and continuous improvements in manufacturing practices. As a key contributor to India’s infrastructure development, the sector has a critical role to play in balancing economic growth with environmental responsibility.

On the occasion of World Environment Day, industry leaders reaffirmed their commitment to supporting India’s climate goals while delivering the materials required for resilient, durable and sustainable infrastructure.

Concrete

Building a Greener Future Together

Published

19 hours ago

June 4, 2026

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Environmental sustainability requires immediate action, not just long-term commitments and discussions. Recycling, circular economy practices, and technology-driven waste management can help industries reduce environmental impact while supporting sustainable growth.

Author: Jignesh Kundaria, Director and CEO, Fornnax Technology

World Environment Day serves as an important reminder that environmental sustainability can no longer remain confined to discussions, reports, or long-term commitments. The environmental challenges facing the world today demand immediate, measurable, and collective action. Across industries and communities, waste generation continues to outpace our ability to process it responsibly, placing increasing pressure on ecosystems, natural resources, public health, and the well-being of future generations.

One of the most significant shifts required today is a change in how society perceives waste. Rather than being viewed as a material to be discarded, waste must be recognised as a valuable resource that can contribute to both economic growth and environmental protection when managed through the right technologies and systems. This mindset forms the foundation of the circular economy model that countries across the world are increasingly adopting to reduce landfill dependence, recover valuable materials, and create more sustainable industrial ecosystems.

India has made meaningful progress in strengthening awareness around sustainability, recycling, and environmental responsibility over the past decade. Significant efforts are being made to formalise the recycling sector through improved infrastructure, technology adoption, policy implementation, and broader stakeholder participation. These developments are creating a stronger foundation for responsible waste management and resource recovery across the country.

However, achieving long-term environmental impact requires collaboration from all stakeholders. Industries, policymakers, technology providers, and communities must work together with greater accountability to strengthen recycling ecosystems, encourage responsible waste management practices, and create sustainable outcomes through consistent execution rather than temporary interventions.

As someone closely associated with the recycling industry, I firmly believe that technology will play a decisive role in addressing future environmental challenges. Advanced recycling systems have the potential to recover valuable resources, reduce pollution, minimise landfill burdens, and conserve energy, creating a more sustainable future for generations to come. This belief is deeply reflected in Fornnax’s motto, “Committed to Create a Green Future,” which embodies our commitment to building long-term environmental value through innovation and responsible action.

At the same time, technology alone cannot deliver meaningful change. Real progress requires intent, awareness, participation, and a shared sense of responsibility. Sustainable development can only be achieved when innovation is supported by collective action and a genuine commitment to environmental stewardship.

On this World Environment Day, let us move beyond conversations and take meaningful steps towards creating a cleaner, greener, and more sustainable planet. By embracing innovation, strengthening recycling ecosystems, and acting responsibly today, we can create lasting environmental impact and secure a better future for generations to come.

Concrete

Dalmia Bharat Acquires Jaiprakash Associates Cement Assets for ₹2,850 Crore

Published

2 weeks ago

May 25, 2026

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Dalmia Cement executed a Business Transfer Agreement with Jaiprakash Associates and Adani Infra, to acquire 5.2 MnTPA of cement capacity across Madhya Pradesh and Uttar Pradesh.

Dalmia Cement (Bharat) announced on May 22, 2026 that it had signed a Business Transfer Agreement with Jaiprakash Associates Limited and Adani Infra (India) Limited for the acquisition of cement plants located at Rewa in Madhya Pradesh and Churk, Chunar and Sadwa in Uttar Pradesh. The deal was struck at an enterprise value of ₹2,850 crore and is expected to close within two weeks of execution.

The acquired assets from Jaiprakash Associates include 5.2 MnTPA of cement capacity and 3.3 MnTPA of clinker capacity. The package also covers 99 MW of thermal power capacity and railway sidings at Rewa, Chunar, and a common siding at Churk. This infrastructure gives the acquisition immediate operational utility beyond just production tonnage.

The transaction has a long backstory. Dalmia Cement had originally entered into a framework agreement with Jaiprakash Associates in December 2022, covering the sale of these business assets along with a long-term clinker supply arrangement. However, before the deal could be completed, Jaiprakash Associates was admitted to insolvency proceedings under the Insolvency and Bankruptcy Code. The earlier agreements could not be consummated as a result.

In an official statement, Puneet Dalmia, Managing Director & CEO, Dalmia Bharat, said, “I am very excited about addition of these assets in our portfolio. This serves as a great strategic fit for Dalmia. It helps us move forward in our journey to be a pan India player and provide a strong head start to serve the high potential markets in Central region. I am optimistic that the expansion potential of these assets along with close proximity with Dalmia’s captive mines will help us create a capacity hub for the future”.

Following the approval of Adani Group’s resolution plan for Jaiprakash Associates under the IBC framework, Dalmia approached the new management to revive discussions. The fresh Business Transfer Agreement was executed to settle all pending disputes, legal proceedings, and arbitration matters arising from the original framework agreement with Jaiprakash Associates.

Expanding market reach

Dalmia added, “Our familiarity with these assets under the earlier tolling arrangement gives us a deep understanding of the facilities and helps us establish strong connect with channel partners and vendors. We believe that this will help us in faster ramp up of capacities and quicker inroads into the market. As we look forward, I am very confident that we will be able to leverage the strengths of Dalmia to operate these assets in a manner where we can maximise value creation for all our stakeholders.”

With the addition of these plants, Dalmia Bharat’s total installed cement capacity will rise to 54.7 MnTPA upon consummation. The company has further expansion projects underway at Belgaum, Pune, and Kadapa, which are expected to take overall capacity to 66.7 MnTPA by Q2 to Q3 FY28.

The Central India location of the Jaiprakash Associates plants gives Dalmia Bharat faster access to markets in Madhya Pradesh and Uttar Pradesh than a greenfield build would have allowed. The company also cited debottlenecking and brownfield expansion as near-term opportunities at the acquired sites. Dalmia Bharat said the assets were expected to contribute positively to EBITDA and overall returns, given the pricing environment in the region and the company’s cost structure.