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Future of cement distribution is exciting and challenging

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Syaam Prakash V, Vice President – Marketing, NCL Industries, speaks about their preferred distribution channels and the impact that technology is likely to have on the processes in the near future.

How many channels of distribution do you prefer to have for your product and how do you choose them?
Our channels for distribution of cement can be broadly classified into six types, selection of which is based on the channel’s reach, efficiency and cost optimisation and is finally driven by
consumer’s preference.

Which is your most preferred channel of distribution and why?
Our most preferred channel of distribution is through dealer to consumer. This channel has been our mainstay for several years and constitutes 80 per cent of our dealer network of over 2200. It gives us immense reach into rural Andhra Pradesh and Telangana. Now the company is focused to develop channel wholesaler – retailer to consumer. This is predominantly in urban markets where the company is focused to increase its presence. 75 per cent of our business is from channel sales, hence, we continue to strengthen it by adding close to 250 dealers a year across south India.

How do you select your distributors? Tell us about the parameters and selection process.
The following are the parameters to evaluate distributors selection:
» Retail network size, store locations and retail store space
» Synergy to existing network, niche clientele base
» Financial strength and potential to grow. Scope to add other products of NCL (cement article board, NCL doors etc) and group company products (AAC blocks, wall putty, paints,
UPVC etc)
» Current cement dealerships and their positioning vis-à-vis Nagarjuna Cement.

What are the major challenges in the line of distribution of cement?
The major challenges that we have faced in our distribution channels are:
» Timely, cost effective and seamless reach to consumers
» Continued channel partners loyalty
» Penetration, reach and depth in retail space
» Efficient last mile connectivity and service to consumers

What are the software and other IT solutions used to understand the cement distribution?
Currently we are not using any software specifically for cement distribution. We are evaluating
several options.

How is the acceptance of online sales of cement?
India has the third largest online shopper base of 140 million subscribers contributing to US $ 50 billion in turnover 2020. The segment is growing 35 per cent annually and the Indian digital economy is estimated at US $537 billion. However, the major share of which is from groceries, educational technology and personal care, beauty and wellness (PCB&W) segment etc. The online sales of cement is growing gradually in India as most of the customers still prefer to shop at brick and mortar stores.

Who are the major buyers of cement online?
Thus far, major buyers of cement online in India are Individual House Builders (IHB) and institutional buyers.
As we can see, bulk of cement is bought by central and state governments for low-cost housing, infrastructure etc. Urban housing (builders) and industrial buyers are yet to take up online buying in a big way and the space is still evolving as the same involves credit and contract buying.
Hence, purchase of cement online will increase in the years to come as penetration of smartphones and 5G network improves in rural markets.

How do you foresee the future of cement distribution?
Cement distribution has been evolving over the last few decades. We are graduating from being commodity (cement) sales to product marketing in the cement space. Further, due to various new applications (RMC, cement sheets, cement particle boards, AAC blocks, prefabricated structures, 3D printing, white top highway roads etc.) cement is moving into bulk sales (naked cement).
There are a lot of green initiatives in cement production and applications. New products are being developed and promoted for the benefit of individual as well as industrial customers.
India is second largest producer of cement in the world with 550 MMT per annum installed capacity and consumption is estimated to grow at 9 per cent CAGR in next few years (current per capita cement consumption is 250 kg against world average of 550 kg) hence the future of cement distribution is exciting and challenging.

Concrete

India Sets Up First Carbon Capture Testbeds for Cement Industry

Five CCU testbeds launched to decarbonise cement production

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The Department of Science and Technology (DST) recently unveiled a pioneering national initiative: five Carbon Capture and Utilisation (CCU) testbeds in the cement sector, forming a first-of-its-kind research and innovation cluster to combat industrial carbon emissions.
This is a significant step towards India’s Climate Action for fostering National Determined Contributions (NDCs) targets and to achieve net zero decarbonisation pathways for Industry Transition., towards the Government’s goal to achieve a carbon-neutral economy by 2070.
Carbon Capture Utilisation (CCU) holds significant importance in hard-to-abate sectors like Cement, Steel, Power, Oil &Natural Gas, Chemicals & Fertilizers in reducing emissions by capturing carbon dioxide from industrial processes and converting it to value add products such as synthetic fuels, Urea, Soda, Ash, chemicals, food grade CO2 or concrete aggregates. CCU provides a feasible pathway for these tough to decarbonise industries to lower their carbon footprint and move towards achieving Net Zero Goals while continuing their operations efficiently. DST has taken major strides in fostering R&D in the CCUS domain.
Concrete is vital for India’s economy and the Cement industry being one of the main hard-to-abate sectors, is committed to align with the national decarbonisation commitments. New technologies to decarbonise emission intensity of the cement sector would play a key role in achieving of national net zero targets.
Recognizing the critical need for decarbonising the Cement sector, the Energy and Sustainable Technology (CEST) Division of Department launched a unique call for mobilising Academia-Industry Consortia proposals for deployment of Carbon Capture Utilisation (CCU) in Cement Sector. This Special call envisaged to develop and deploy innovative CCU Test bed in Cement Sector with thrust on Developing CO2 capture + CO2 Utilisation integrated unit in an Industrial set up through an innovative Public Private Partnership (PPP) funding model.
As a unique initiative and one of its first kind in India, DST has approved setting up of five CCU testbeds for translational R&D, to be set up in Academia-Industry collaboration under this significant initiative of DST in PPP mode, engaging with premier research laboratories as knowledge partners and top Cement companies as the industry partner.
On the occasion of National Technology Day celebrations, on May 11, 2025 the 5 CCU Cement Test beds were announced and grants had been handed over to the Test bed teams by the Chief Guest, Union Minister of State (Independent Charge) for Science and Technology; Earth Sciences and Minister of State for PMO, Department of Atomic Energy, Department of Space, Personnel, Public Grievances and Pensions, Dr Jitendra Singh in the presence of Secretary DST Prof. Abhay Karandikar.
The five testbeds are not just academic experiments — they are collaborative industrial pilot projects bringing together India’s top research institutions and leading cement manufacturers under a unique Public-Private Partnership (PPP) model. Each testbed addresses a different facet of CCU, from cutting-edge catalysis to vacuum-based gas separation.
The outcomes of this innovative initiative will not only showcase the pathways of decarbonisation towards Net zero goals through CCU route in cement sector, but should also be a critical confidence building measure for potential stakeholders to uptake the deployed CCU technology for further scale up and commercialisation.
It is envisioned that through continuous research and innovation under these test beds in developing innovative catalysts, materials, electrolyser technology, reactors, and electronics, the cost of Green Cement via the deployed CCU technology in Cement Sector may considerably be made more sustainable.
Secretary DBT Dr Rajesh Gokhale, Dr Ajai Choudhary, Co-Founder HCL, Dr. Rajesh Pathak, Secretary, TDB, Dr Anita Gupta Head CEST, DST and Dr Neelima Alam, Associate Head, DST were also present at the programme organized at Dr Ambedkar International Centre, New Delhi.

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Concrete

JK Lakshmi Adopts EVs to Cut Emissions in Logistics

Electric vehicles deployed between JK Puram and Kalol units

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JK Lakshmi Cement, a key player in the Indian cement industry, has announced the deployment of electric vehicles (EVs) in its logistics operations. This move, made in partnership with SwitchLabs Automobiles, will see EVs transporting goods between the JK Puram Plant in Sirohi, Rajasthan, and the Kalol Grinding Unit in Gujarat.
The announcement follows a successful pilot project that showcased measurable reductions in carbon emissions while maintaining efficiency. Building on this, the company is scaling up EV integration to enhance sustainability across its supply chain.
“Sustainability is integral to our vision at JK Lakshmi Cement. Our collaboration with SwitchLabs Automobiles reflects our continued focus on driving innovation in our logistics operations while taking responsibility for our environmental footprint. This initiative positions us as a leader in transforming the cement sector’s logistics landscape,” said Arun Shukla, President & Director, JK Lakshmi Cement.
This deployment marks a significant step in aligning with India’s push for greener transport infrastructure. By embracing clean mobility, JK Lakshmi Cement is setting an example for the industry, demonstrating that environmental responsibility can go hand in hand with operational efficiency.
The company continues to embed sustainability into its operations as part of a broader goal to reduce its carbon footprint. This initiative adds to its vision of building a more sustainable and eco-friendly future.
JK Lakshmi Cement, part of the 135-year-old JK Organisation, began operations in 1982 and has grown to become a recognised name in Indian cement. With a presence across Northern, Western, and Eastern India, the company has a cement capacity of 16.5 MTPA, with a target to reach 30 MT by 2030. Its product range includes ready-mix concrete, gypsum plaster, wall putty, and autoclaved aerated fly ash blocks.

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Concrete

Holcim UK drives sustainable construction

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Holcim UK has released a report titled ‘Making Sustainable Construction a Reality,’ outlining its five-fold commitment to a greener future. The company aims to focus on decarbonisation, circular economy principles, smarter building methods, community engagement, and integrating nature. Based on a survey of 2,000 people, only 41 per cent felt urban spaces in the UK are sustainably built. A significant majority (82 per cent) advocated for more green spaces, 69 per cent called for government leadership in sustainability, and 54 per cent saw businesses as key players. Additionally, 80 per cent of respondents stressed the need for greater transparency from companies regarding their environmental practices.

Image source:holcim

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