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“Cement packaging can be made much better and safer for the environment.”

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Alpesh Patel is the founder and managing director of Knack Packaging Pvt. Ltd. He established the company in 1993 and since then has been supervising and controlling all processes at the organisation. He also holds prominent roles in the industry as the Chairman of Plastic Export Promotion Council – Gujarat, Chairman of Indian Institute of Packaging – Ahmedabad and President of Poly Woven Association – Gujarat. He has been recognised with the Rashtriya Udhyog Ratna Award in Council for Economic Growth and Research for “Excellence in their respective field” in 2011. His philosophy is to keep learning, improving and growing.

What are the various types of cement packaging bags made by your company? Tell us more about the composition of the most used packaging material for cement?
There are three types of bags and the fourth is the new renovation. The first type of bag is a PP unlaminated bag, the second type is PP laminated coated bag and third type is BOPP laminated bag with block bottom. The issue with the PP unlaminated bags is that cement comes out of it often since it has a wall and due to which it also creates dust. The fourth quality of cement bag is a new product, known as pinch bottom bag. These are one of the world’s finest quality bags. It looks like a brick but the system of packing it is the same as the wall bag packing system. It does not have any leakages and is considered to be the best. I personally think that the third quality bags, BOPP laminated bags with block bottom are also great. They serve 98 per cent of what the pinch bags can do. Since during their packaging their mouth is open, that leaves little chance of leakage and that’s why they are just close to perfect.

What is the volume of cement packaging manufactured and consumed by cement companies in India?
I’ll tell you three things. We are producing 700,000 bags per day of which 150,000 bags per day are supplied to the cement industry on an everyday basis. This is a big question to answer but according to me, yearly about 60 to 70 crore bags are consumed by the cement industry. From these crores of bags, Knack Packaging supplies about 3 to 4 crores of bags to the manufacturers of cement.

Tell us more about the technology of manufacturing the bags used for cement packaging?
We use polypropylene (PP) granules to make the fabric of the cement packaging bags. These granules are selected on the basis of the type of bags that are to be made. This also falls under the textile industry since the granules are converted to a fabric like material but made of PP. You can consider just how shirts are made from a fabric, similarly, cement packaging bags are made from granule fabric.
We have the infrastructure to create the every size and type of cement packaging bags required by our customers.

How well are these bags equipped to protect cement?
When cement is packed in unlaminated bags, it causes a lot of dust and wastage on the packaging floor, while loading it and wherever it is stored. Even when these bags are carried to the place of construction, there is a certain amount of leakage. This happens due to the pressure with which cement is packed in these bags. Because of the coating on coated bags, cement comes out or is wasted only from the top and bottom where the bag is sealed off. In the third type of bags, the BOPP laminated bags, the wastage is significantly reduced. The material for the bags used is the same so it isn’t harming the environment. Since these bags have three layers, it not only prevents wastage, it also allows major branding.

What alternative materials are used to make cement packaging more eco-friendly?
PP unlaminated bags are made from PP granules. Then the coating on these bags is done with a material in the same family as that of PP. The BOPP print, in the third layer of the bags is also done from a material in the same family as PP. Various quality bags are made with layering of these materials. These materials are very easily recyclable and cause almost no harm to the environment. The bags can be reused as well, thus, reducing the wastage that may occur due to discarding one time use bags. These combinations are used with colour combinations to distinguish between bags.

What is the wastage that occurs in cement packaging? What is its volume?
According to the industry standard, there is only 2 to 3 per cent wastage in the manufacturing of cement packaging bags. This can also be greatly reduced by increasing the production efficiency in making the bags. However, this is the minimum amount of wastage in the industry possible.

Tell us more about the efforts taken to reduce the wastage in cement packaging?
Our industry has taken the initiative of recycling the waste that occurs during the production of cement packaging. Those 2 or 3 per cent of waste material is turned into granules and used again to make cement packaging fabric. This makes our wastage zero.
This is an initiative taken only by us at the moment and as the chairman of the Indian Institute of Packaging, I request all packaging makers to make this effort to leave the world a better place for the next generation. As leaders in the industry, it becomes our responsibility to lead the way of making this small effort to reduce the wastage in a big volume. Reprocess and reuse for a better tomorrow.

How can cement packaging be made more eco-friendly and contribute towards the betterment of the environment?
Cement packaging can be made much better, safer for the environment and supportive of the circular economy by developing ‘Reprocessing Plants’.
I have taken the effort to install these plants in all my group companies and have helped my fellow entrepreneurs and friends set up the same in their plants to make a difference for the environment. There are many internal processes that have wastage, that itself can be reprocessed and granulated and can be used to make the fabric of the next batch of packaging material or can be sold out where it can be used.

What are the innovations expected in the future for cement packaging?
There are some changes that will be seen in the packaging in the near future.
One would be small packaging of cement, i.e., 10 kg and 25 kg against the 50 kilo bags that are largely available in the current times. Bulk packaging would be avoided in the near future. The other would-be green packaging. This would mean 100 per cent biodegradable bags. And as we have also begun manufacturing pinch bottom bags, they are going to be big in the coming years. What I would like to add with this interview is value to the cement industry and a message to everyone in the cement industry and the cement packaging industry is to collect the cement bags back instead of putting them in waste. These used bags can be used in the kilns as fuel to be burned and create heat. This can save natural resources and thus result in reduction of natural disasters. Cement industry can be a large contributor to the protection of the environment and small steps like these can make a big difference for the future.

Kanika Mathur

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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