Economy & Market

Profit margins in other commodities are better than those in cement.

Published

5 years ago

October 14, 2021

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Lower profit margins with rising expenses have made dealers wonder if continuing in cement dealing is really a good business option. While some are shutting shop, other are barely surviving.Rajesh Parwal, Properitor, Bharat Traders talks to ICR about issues that ail the sector.

Tell us about your dealership business.

We are in the business of dealing in cement since the last 17 years. We are the exclusive dealers for UltraTech Cement in Pune district. We stock products of different grades by the companies.

Why is cement selling business getting tough?

First is that the demand is less. Builders are not starting any new projects. Earlier they had three four phased projects; now they are barely able to finish the first phase. Most of them believe that the markets will pick up only after the 2014 elections. So they are waiting for the markets to pick up pace. Some cement manufacturers have started the DCS (Direct Consumer Service) initiative; here the consumers and the manufacturer are connected directly. Dealers are not mediators in all the deals. However, bypassing dealers is also affecting the business.

Have spiraling cement prices affected the business?

No, I donÂ´t think so. Cement has hovered around Rs 290-310 in the last two-three years. We have seen growth even when prices were high. So, high price of cement alone may not be the reason behind the slowdown. However, with the rising cost of fuel, transport cost and the sluggishness of the market, the price seems high now.

Have dealers taken any steps to safeguard the business?

Yes, we had a dialogue with top cement manufacturers, requesting them to include us in their growth. We have suggested that the manufactures could sell directly to the consumer if the sales volume is more than 500 tonnes. For volumes below that, we must be included.

How is the market reacting to the sluggishness?

In Pune at least, 10 to 15 top dealers have closed down their shops and diversified to other areas. In cement, the margins are at the most upto 1 -2 per cent. Today that is not sufficient. Our expenses have increased with time. The cost of fuel, cost of labour for loading and unloading, cost of having employee for clerical work, etc, have all gone up but the profit margin has remained the same. Profit margins in other commodities are better than than in cement.

If you see the profit margins in other businesses, for example in food commodities, it is at least 8 per cent. Naturally then, it doesn`t make much of business sense to continue in cement dealing.

How is the RMC market impacting your business?

Earlier, 70 per cent of the cement consumed was sold in bags and the remaining 30 per cent was consumed in bulk by RMC sector. Now, 45 per cent goes to RMC in bulk while 55 per cent is sold in bags. Very soon we will see a complete switchover, the way we saw in Mumbai, where 70 per cent cement will be consumed by RMC and the remaining 30 per cent will come from dealers. Dealers cannot participate in this transaction as the RMC manufacturer gets in touch with the manufacturer directly.

Concrete

Fornnax Wins AIRIA’s Special Export Award for Rubber Machinery in 2025-26

Published

4 days ago

October 19, 2026

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Fornnax Technology Pvt. Ltd. has been honoured with the Special Export Award – Rubber Machinery for 2025–26 by the All-India Rubber Industries Association (AIRIA), in recognition of its highest exports of tyre recycling plants to the European region.

With more than a decade of experience in India’s tyre recycling industry, Fornnax has contributed to the development of advanced recycling technologies and infrastructure. The company currently holds a 90% market share in India’s domestic tyre recycling sector, while exports account for 30% of its business, spanning markets such as Europe, Australia and the GCC.

The award marks another milestone for Fornnax, whose tyre recycling lines and advanced shredding technologies are supporting the growth of the circular economy in India and international markets.

Commenting on the recognition, Mr. Jignesh Kundaria, Founder and Director of Fornnax, said:

“This honour from AIRIA is a reflection of an incredible journey we have undertaken over the years. When we started Fornnax, there was no established recycling industry in India to follow. We chose to build for the future instead. Today, when you see India’s tyre recycling sector, it has already transformed into a dynamic, high-growth industry and we are extremely proud to have played our part in building it.”

Unlike standalone equipment suppliers, Fornnax focuses on developing complete, high-capacity recycling infrastructure. Its integrated systems combine multiple stages of shredding and size reduction to enable efficient, continuous operations. This system-level engineering approach helps recycling operators improve throughput, equipment reliability and operational consistency.

The recognition reinforces Fornnax’s commitment to developing engineering technologies that contribute to a more efficient and circular recycling ecosystem.

Looking ahead, the company aims to expand its international presence while continuing to develop advanced shredding and recycling solutions to address the growing volumes and evolving requirements of the global recycling industry.

For more information, visit: www.fornnax.com

Concrete

Wonder Cement appoints Mahesh Singh as VP Corporate Brand Communication

Published

2 weeks ago

October 9, 2026

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Singh brings 20+ years of brand and marketing experience, and will lead integrated corporate brand communication initiatives at Wonder Cement

New Delhi

Wonder Cement, a leading cement manufacturer, has appointed Mahesh Singh as Vice President – Corporate Brand Communication. In his new role, he will oversee corporate brand strategy and communication, including digital and performance marketing, public relations, trade, events, exhibitions, sports and experiential marketing.

Singh brings over two decades of experience across marketing and communications, with roles spanning the automotive industry, agencies and entrepreneurship. He spent more than a decade with Honda Motorcycle & Scooter India, working across integrated communication, media, digital, retail and consumer engagement. His stint also included helping build the company’s digital marketing capabilities.

He moved to dentsu X India as Vice President – Strategy & Planning, working across categories such as automotive, auto components, electric vehicles, FMCG, consumer electronics, BFSI, apparel and brand consulting. His responsibilities included media and marketing strategy, product launches, content, performance marketing and consumer activations.

Singh subsequently took an entrepreneurial route with Radiant Brands before joining Shriram Ltd (SPR Autotech) as Head – Marketing & Communications. There, his remit included brand and corporate strategy, communications, PR and ORM, retail identity, loyalty programmes and events.

At Wonder Cement, Singh will be responsible for bringing together the company’s corporate brand communication initiatives across digital, performance marketing, PR, trade, sports and experiential platforms. The role will focus on creating an integrated approach to communication across consumers, trade partners and other key stakeholders.

The appointment brings to Wonder Cement a marketer whose career has spanned the brand, agency and entrepreneurial sides of the communications ecosystem.

Wonder Cement, part of the RK Group, is a cement manufacturer with roots in Rajasthan and a focus on quality, trust and transparency. The company has grown to six manufacturing plants, and a cement capacity of 21.5 MTPA. With more than 2,000 employees and a network of over 5,000 dealers, its operations span manufacturing, distribution and customer engagement, with a focus on consistent product quality and efficient execution.

Concrete

JSW Cement commissions additional 1 MTPA grinding unit at Nagaur

Published

2 weeks ago

October 8, 2026

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With this commissioning, JSW Cement’s total cement grinding capacity has increased to 25.10 MTPA,
Mumbai

JSW Cement, one of India’s leading green cement producers and part of the diversified JSW Group, today announced the successful commissioning of an additional 1.00 MTPA cement grinding unit at Nagaur, Rajasthan. The commissioning marks another significant milestone in the Company’s growth strategy.

With this commissioning, JSW Cement’s total cement grinding capacity has increased to 25.10 MTPA, while its total clinker manufacturing capacity, including clinker capacity at its joint venture, JSW Cement FZC, stands at 9.74 MTPA.

JSW Cement had commenced operations in North India in March 2026 with the Nagaur Integrated Plant, comprising a 3.30 MTPA clinkerisation unit and 2.50 MTPA cement grinding unit. With the commissioning of the additional 1.00 MTPA cement grinding unit, the plant’s total cement grinding capacity has increased to 3.50 MTPA, enhancing the company’s ability to cater to the growing cement demand across Rajasthan, Haryana, Punjab and the National Capital Region (NCR). The expansion has been funded through a strategic mix of equity and long-term debt.

During the quarter ended 30th September 2026, JSW Cement has also commissioned the Alternate Fuel Handling System and the Waste Heat Recovery system (WHRS) at the Nagaur Integrated Plant.

Nilesh Narwekar, CEO, JSW Cement, said: “The commissioning of additional 1.00 MTPA grinding capacity at Nagaur is a key strategic priority for us and will accelerate JSW Cement’s expansion into North India. We look forward to servicing the growing needs of the region and contributing to the economic growth of Rajasthan, Haryana, Punjab and the NCR area. I am delighted to share that the company has commissioned this grinding unit within the expected timeline, showcasing our project execution capabilities. Further, the Alternate Fuel Handling System and the Waste Heat Recovery system (WHRS) are expected to substantially reduce our production costs going forward.”