Connect with us

Concrete

Creating Value through CSR

Published

on

Shares

Industrial and social progress can go hand-in-hand, while economic targets are being efficiently met. This can be deduced to be the goal of the current Corporate Social Responsibility (CSR) programmes that are being curated by cement companies. CSR has evolved with a deeper understanding of human and environmental factors that have a direct impact on economic growth.

The world has come a long way from Milton Friedman’s statement, “The purpose of corporate social responsibility is to make profits.” The jury have settled for a clear mandate that corporations have the responsibility to partake in the development of the society around the place where such development is in severe shortage. In India, on 29th August, 2013, The Companies Act 2013 replaced the Companies Act of 1956 and the New Act has introduced far-reaching changes that affect company formation, administration and governance, and incorporates an additional section i.e. Section 135 – clause on Corporate Social Responsibility obligations (‘CSR’) for companies listed in India. The clause covers the essential prerequisites pertaining to the execution, fund allotment and reporting for successful
project implementation.


Most industrial activity in India is in locations far away from the developed cities and towns; there are only a few bright spots, where the township got developed around the industrial unit and the unit only prospered as the development gained ground around the place, whether it be in education, basic health, welfare or skill development. The network effects got better off single units spilling over to a cluster of units. Surprisingly these examples like Jamshedpur, Renukoot and Rourkella in the East or the industrial hubs that later fructified in many regional clusters happened without the enforcement of CSR as a legal requirement.
The early entrepreneurs believed in the role of CSR as a value creating idea, not a mere formality of stipulations and budget exercises, however the need for a uniform code of conduct has made the progress in this area far more structured and corporations can now actually transparently showcase their progress made, which wasn’t the case before.
For an industry such as cement, which starts with a mining activity that is only possible at remote locations, given the limestone deposits, CSR has always been at the forefront of management attention; the Section 135 has put some structure of governance around the subject with specific reporting guidelines.
Of the many areas which outline the focus, the spate of disruptions that Covid-19 had spearheaded threw some additional pointers to the need of additional work. There are three such areas:

  1. Responsibility towards the pool of migrant workers in times of disruption
    The disruptions around the pandemic started with displacement of people in both directions, from the place of work to the place of home and vice versa. Lack of information, communication, absence of logistics, absence of mobile health services, all of this compounded into a cascade of events leading to major dislocations that impacted lives and livelihood of people. When such dislocations happen, the corporates suffer in the form of production losses, delivery delays and rising cost of sales. Concerted preventive work needs to be done in a planned manner as in remote locations that depend on migrant workers, all of these cannot be left for government support only as has been the case in the last pandemic.
  2. Facilitating skill development centres at the industrial cluster
    Skill development is one of the central tenets of CSR activities, which needs to be also seen in the light of those specific skills that are in short supply in the cluster where the unit operates. Investments in this area have to go up many times to ensure that rigid dependence on migrant labour can be minimised. Skill development is more than just the numbers and hours, but actually ensuring the quality of skills to match what skilled migrant labour provide, whether in the area of masonry, carpentry, fitter or technician to the specialised skills around kiln maintenance.
  3. Employability improvement program at the cluster
    This is the final step to ensure that skills developed in the cluster are retained through employment in the cluster, which is a logical progression of the theme. Schemes that focus on a comprehensive skill development program that is targeted to certain specialised jobs in the industrial activities of the cluster, will make the circle complete.
    Cement industrial complexes in remote settings suffer from local skills and while the migrant labour fills up this void, it remains the responsibility of the unit to create a sustainable supply of labour that will create continuity of operations. This is more than just CSR, it is a core business challenge that we are talking about here. Take kiln maintenance, refractory lining, replacement, overhauling of key equipment and none of this can be done with only the local skills available at the cluster.
    A crisis like the pandemic has taught us that those skills, which make our units run efficiently, more often than not, come from the distant quarters in our land. If we take care of these migrant labour in times of crisis, we could do better in staving off major disruptions. Having a more long-term view on this will lead us to make changes in the way we look at skill development in the clusters of industrial activities.
    This is where CSR moves to a value creating role, both for industrial progress as well as for the society where such activities are entrenched.

– Procyon Mukherjee

Concrete

Shree Digvijay Cement Reports Annual And Quarterly Results

Annual revenue rises as EBITDA expands sequentially

Published

on

By

Shares



Shree Digvijay Cement Company Limited reported consolidated financial results for the quarter and year ended 31 March 2026, showing higher revenues and improved profitability. Revenue from operations for the quarter was Rs 2,084.7 mn, up from Rs 1,833.4 mn in the prior quarter, while revenue for the year was Rs 7,491.0 mn versus Rs 7,251.5 mn a year earlier. EBITDA for the quarter rose to Rs 251.0 mn from Rs 38.4 mn in the preceding quarter and reached Rs 746.1 mn for the year. Profit after tax for the year was Rs 250.0 mn.

Sales volume for the company s grinding and cement operations was zero point three six four mn t in the quarter and one point four zero three mn t for the year, while traded volumes were zero point zero three mn t in the quarter. EBITDA per tonne improved to Rs637 in the quarter and averaged Rs521 for the year. Under a brand usage, supply and distributorship agreement the company sold 29,928 t of Hi Bond cement, which generated Rs153.6 mn in revenue and Rs20.0 mn in EBITDA during the period.

The company said that it had commenced purchase and distribution of Hi Bond cement effective 19 March 2026 pursuant to the long term distributorship agreement, and that it had paid a refundable security deposit of Rs four bn under the same arrangement. Management indicated that the strategic integration with the Hi Bond network would support future growth and strengthen distribution capabilities. The board cited seasonally higher demand and improved pricing as factors behind the sequential improvement in realisations.

The board recommended a final dividend of Rs one per equity share subject to shareholder approval at the ensuing annual general meeting. The company reiterated focus on sustaining the positive momentum in revenue and margin metrics while integrating the new distributorship, and will continue to monitor market conditions and pricing trends to support further improvement in outcomes.

Continue Reading

Concrete

Cement Production Up Eight Point Six Per Cent To 491.4 mn t In FY26

Icra Sees Seven To Eight Per Cent Growth In FY27

Published

on

By

Shares



Icra reported that cement production volumes rose by eight point six per cent in the financial year 2026 to 491.4 million (mn) metric tonne (t). March output was 48.4 mn t, up four per cent year on year on a high base.

The agency projected that volumes are expected to grow by seven to eight per cent in the current financial year, supported by sustained demand from the housing and infrastructure sectors. Average cement prices were reported to have remained flat in March at Rs 340 per bag on a month on month basis, while prices for FY26 increased by two per cent to Rs 345 per bag year on year.

Among inputs, coal prices declined by 17 per cent year on year to USD 102 per t in April 2026 while petcoke prices rose sharply by 19 per cent month on month and 22 per cent year on year to around Rs 15,800 per t in April. Petcoke was higher by about five per cent year on year in FY26 and diesel prices were reported to have remained steady. Icra noted that coal, petcoke and diesel are expected to trend higher in FY27 and remain exposed to risks from the ongoing West Asia conflict.

The report emphasised that operating margins for Icra’s sample set of companies are estimated to moderate by 200 to 400 basis points (bps) in FY27 on account of a likely increase in input costs, with further downside risks should crude prices rise owing to geopolitical tensions. However, debt protection metrics are projected to remain comfortable and Icra maintained a stable outlook on the Indian cement sector.

Continue Reading

Concrete

UltraTech Cement FY26 PAT Crosses Rs 80 bn

Company reports record sales, profit and 200 MTPA capacity milestone

Published

on

By

Shares



UltraTech Cement reported record financial performance for Q4 and FY26, supported by strong volumes, higher profitability and improved cost efficiency. Consolidated net sales for Q4 FY26 rose 12 per cent year-on-year to Rs 254.67 billion, while PBIDT increased 20 per cent to Rs 56.88 billion. PAT, excluding exceptional items, grew 21 per cent to Rs 30.11 billion.

For FY26, consolidated net sales stood at Rs 873.84 billion, up 17 per cent from Rs 749.36 billion in FY25. PBIDT rose 32 per cent to Rs 175.98 billion, while PAT increased 36 per cent to Rs 83.05 billion, crossing the Rs 80 billion mark for the first time.

India grey cement volumes reached 42.41 million tonnes in Q4 FY26, up 9.3 per cent year-on-year, with capacity utilisation at 89 per cent. Full-year India grey cement volumes stood at 145 million tonnes. Energy costs declined 3 per cent, aided by a higher green power mix of 43 per cent in Q4.

The company’s domestic grey cement capacity has crossed 200 MTPA, reaching 200.1 MTPA, while global capacity stands at 205.5 MTPA. UltraTech also recommended a special dividend of Rs 2.40 billion per share value basis equivalent to Rs 240.

Continue Reading

Video Thumbnail

    SIGN-UP FOR OUR GENERAL NEWSLETTER


    Trending News

    SUBSCRIBE TO THE NEWSLETTER

     

    Don't miss out on valuable insights and opportunities to connect with like minded professionals.

     


      This will close in 0 seconds