Concrete

Future of cement distribution is exciting and challenging

Published

4 years ago

March 1, 2022

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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.

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Adani Cement to Deploy World’s First Commercial RDH System

Adani Cement and Coolbrook partner to pilot RDH tech for low-carbon cement.

Published

23 hours ago

November 14, 2025

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Adani Cement and Coolbrook have announced a landmark agreement to install the world’s first commercial RotoDynamic Heater (RDH) system at Adani’s Boyareddypalli Integrated Cement Plant in Andhra Pradesh. The initiative aims to sharply reduce carbon emissions associated with cement production.

This marks the first industrial-scale deployment of Coolbrook’s RDH technology, which will decarbonise the calcination phase — the most fossil fuel-intensive stage of cement manufacturing. The RDH system will generate clean, electrified heat to dry and improve the efficiency of alternative fuels, reducing dependence on conventional fossil sources.

According to Adani, the installation is expected to eliminate around 60,000 tonnes of carbon emissions annually, with the potential to scale up tenfold as the technology is expanded. The system will be powered entirely by renewable energy sourced from Adani Cement’s own portfolio, demonstrating the feasibility of producing industrial heat without emissions and strengthening India’s position as a hub for clean cement technologies.

The partnership also includes a roadmap to deploy RotoDynamic Technology across additional Adani Cement sites, with at least five more projects planned over the next two years. The first-generation RDH will provide hot gases at approximately 1000°C, enabling more efficient use of alternative fuels.

Adani Cement’s wider sustainability strategy targets raising the share of alternative fuels and resources to 30 per cent and increasing green power use to 60 per cent by FY28. The RDH deployment supports the company’s Science Based Targets initiative (SBTi)-validated commitment to achieve net-zero emissions by 2050.

Concrete

Birla Corporation Q2 EBITDA Surges 71%, Net Profit at Rs 90 Crore

Stronger margins and premium cement sales boost quarterly performance.

Published

3 days ago

November 12, 2025

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Birla Corporation Limited reported a consolidated EBITDA of Rs 3320 million for the September quarter of FY26, a 71 per cent increase over the same period last year, driven by improved profitability in both its Cement and Jute divisions. The company posted a consolidated net profit of Rs 900 million, reversing a loss of Rs 250 million in the corresponding quarter last year.

Consolidated revenue stood at Rs 22330 million, marking a 13 per cent year-on-year growth as cement sales volumes rose 7 per cent to 4.2 million tonnes. Despite subdued cement demand, weak pricing, and rainfall disruptions, Birla Jute Mills staged a turnaround during the quarter.

Premium cement continued to drive performance, accounting for 60 per cent of total trade sales. The flagship brand Perfect Plus recorded 20 per cent growth, while Unique Plus rose 28 per cent year-on-year. Sales through the trade channel reached 79 per cent, up from 71 per cent a year earlier, while blended cement sales grew 14 per cent, forming 89 per cent of total cement sales. Madhya Pradesh and Rajasthan remained key growth markets with 7–11 per cent volume gains.

EBITDA per tonne improved 54 per cent to Rs 712, with operating margins expanding to 14.7 per cent from 9.8 per cent last year, supported by efficiency gains and cost reduction measures.

Sandip Ghose, Managing Director and CEO, said, “The Company was able to overcome headwinds from multiple directions to deliver a resilient performance, which boosts confidence in the robustness of our strategies.”

The company expects cement demand to strengthen in the December quarter, supported by government infrastructure spending and rural housing demand. Growth is anticipated mainly from northern and western India, while southern and eastern regions are expected to face continued supply pressures.

Concrete

Ambuja Cements Delivers Strong Q2 FY26 Performance Driven by R&D and Efficiency

Company raises FY28 capacity target to 155 MTPA with focus on cost optimisation and AI integration

Published

5 days ago

November 10, 2025

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Ambuja Cements, part of the diversified Adani Portfolio and the world’s ninth-largest building materials solutions company, has reported a robust performance for Q2 FY26. The company’s strong results were driven by market share gains, R&D-led premium cement products, and continued efficiency improvements.

Vinod Bahety, Whole-Time Director and CEO, Ambuja Cements, said, “This quarter has been noteworthy for the cement industry. Despite headwinds from prolonged monsoons, the sector stands to benefit from several favourable developments, including GST 2.0 reforms, the Carbon Credit Trading Scheme (CCTS), and the withdrawal of coal cess. Our capacity expansion is well timed to capitalise on this positive momentum.”

Ambuja has increased its FY28 capacity target by 15 MTPA — from 140 MTPA to 155 MTPA — through debottlenecking initiatives that will come at a lower capital expenditure of USD 48 per metric tonne. The company also plans to enhance utilisation of its existing 107 MTPA capacity by 3 per cent through logistics infrastructure improvements.

To strengthen its product mix, Ambuja will install 13 blenders across its plants over the next 12 months to optimise production and increase the share of premium cement, improving realisations. These operational enhancements have already contributed to a 5 per cent reduction in cost of sales year-on-year, resulting in an EBITDA of Rs 1,060 per metric tonne and a PMT EBITDA of approximately Rs 1,189.

Looking ahead, the company remains optimistic about achieving double-digit revenue growth and maintaining four-digit PMT EBITDA through FY26. Ambuja aims to reduce total cost to Rs 4,000 per metric tonne by the end of FY26 and further by 5 per cent annually to reach Rs 3,650 per metric tonne by FY28.

Bahety added, “Our Cement Intelligent Network Operations Centre (CiNOC) will bring a paradigm shift to our business operations. Artificial Intelligence will run deep within our enterprise, driving efficiency, productivity, and enhanced stakeholder engagement across the value chain.”