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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

Indian Railways Plans Green Fly Ash Transport Network

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Specialised rail logistics will move fly ash from power plants to infrastructure industries.

New Delhi

Indian Railways is planning a large-scale green logistics initiative to transport fly ash from thermal power plants to industries where it can be reused in infrastructure and construction activities.

The initiative was discussed during a review meeting chaired by Union Minister for Railways Ashwini Vaishnaw. Union Ministers of State for Railways V Somanna and Ravneet Singh Bittu were also present.

India generates nearly 340 million tonnes of fly ash every year from thermal power plants. The proposed initiative aims to create an efficient rail-based transport system using specialised containers and dedicated logistics arrangements to move fly ash safely from power plants to end-use industries.

Fly ash is widely used in road construction, cement manufacturing, brick production, concrete, blocks and boards. By improving its movement through the railway network, the initiative is expected to support better utilisation of this industrial by-product while reducing environmental concerns linked to storage and disposal.

The move also aligns with India’s circular economy goals by converting waste from thermal power generation into a useful raw material for the construction and infrastructure sectors. Wider availability of fly ash can help reduce material costs in areas such as bricks and cement, supporting more affordable infrastructure and housing development.

Through this initiative, Indian Railways aims to provide a cleaner, safer and more organised transport solution for fly ash, turning an environmental challenge into an infrastructure resource.

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Concrete

ACC To Expand Cement Capacity Amid Strong Infrastructure Demand

Chairman signals calibrated growth and sustainability focus

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ACC will continue to expand its cement capacity in a calibrated manner, deepen its ready-mix concrete (RMC) footprint and accelerate the adoption of low-carbon technologies, the company chairman conveyed in the latest annual report. The note emphasised a balanced and disciplined approach as the business pursues growth while maintaining environmental safeguards.

He argued that the long-term growth outlook for the Indian economy remains strong but that demand conditions in the near term were likely to stay moderate, necessitating cautious expansion. He pointed to India’s relatively low per capita cement consumption compared with global averages as an indicator of significant long-term potential and highlighted the rise in public capital expenditure to Rs 12 trillion (Rs 12 tn), which he said accounted for about four point four per cent of the GDP.

Against this backdrop, ACC and the wider Adani Cement business are positioning themselves as integrated building materials solution providers rather than traditional commodity suppliers, prioritising capability creation over consolidation. The chairman framed cement as the ingredient and concrete as the performance and said that infrastructure and real estate development increasingly demand engineered solutions delivered at site.

He described how deeper integration across energy, logistics and digital systems is intended to improve responsiveness and efficiency across manufacturing, transport and market operations. The company intends to strengthen technical engagement, mix optimisation and application support to improve project timelines, reduce wastage and enhance structural durability while embedding data analytics and predictive systems.

On sustainability, ACC affirmed its commitment to reducing its environmental footprint through greater use of blended cement, renewable energy, alternative fuels and improved thermal efficiency, presenting industrial growth and environmental responsibility as parallel objectives. The message positioned the group to supply engineered concrete solutions at the point of application as it scales capacity and service offerings.

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Ambuja Sees Cement Demand Easing To Around Five Per Cent In FY27

Company Cites Housing, Infrastructure And Government Capex

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Ambuja Cements has said in its latest annual report that cement demand in India is likely to moderate to around five per cent in fiscal year twenty seven, marking a slowdown from the estimated six point five to seven point five per cent growth anticipated for fiscal year twenty six. The company described this as a transition to a more measured pace of expansion after several years of strong momentum in the sector.

It said that underlying demand drivers such as housing, infrastructure development, urbanisation and government capital expenditure remain intact and are expected to sustain cement consumption across regions. The report noted that global geopolitical uncertainties and weather risks, including forecasts of a below normal monsoon, could influence near term demand, while emphasising that the longer term infrastructure story for India continues to provide a solid foundation for the sector.

Industry observers have said that the sector may move towards mid single digit growth rates in fiscal year twenty seven after stronger performances in recent years. The company outlined a calibrated expansion strategy with capacity additions phased to match project pipelines, regional demand patterns and market absorption, seeking to avoid oversupply and pressure on pricing.

Ambuja has crossed the 100 million tonnes per annum capacity milestone (100 mn t per annum) following acquisitions and organic expansion, strengthening its position in the competitive market. The outlook in the report broadly aligns with other market assessments that placed demand at around five per cent in fiscal year twenty five, a recovery to six point five to seven point five per cent in fiscal year twenty six and an easing in fiscal year twenty seven as capacity increases. Executives remain focused on long term demand fundamentals driven by infrastructure and housing.

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