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The age of concrete blocks can be up to a 100 years

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Nikita George, Director Operations, APCO Concrete Blocks and Allied Products, takes us through the manufacturing process of concrete blocks and its composition and also specifically discusses their patented product – cellular blocks.

Tell us about the type of concrete blocks that your organisation manufactures.
We manufacture mainly solid and cellular concrete blocks. The cellular block is our patented product, which has become increasingly popular due to its high utility value in the construction process. We are also gearing up to launch our new line of pavers and kerb stones by the end of August.

What is the composition of each type of block and what are their strengths?
Blocks constitute of mainly three items:
Cement,

  • Manufactured Sand and Stone Aggregates Our patented cellular blocks have a vast set of benefits:
  • Lightweight: The cellular block is between 8 to 9 kg lighter than the solid block. This not only increases the productivity of the labour but also helps in reducing the overall steel requirement for the project.
  • Thermal insulation properties: With the erratic weather conditions in India today, cellular blocks help in maintaining thermal insulation properties within the building. In a recent experiment conducted on a building, which used the cellular blocks, a marked reduction in temperature by three degrees was recorded.
  • Sound insulation properties: Due to the hollow nature of these concrete blocks, the product is able to cut the decibel levels by 14 per cent.
  • Compressive strength and water absorption properties: The cellular blocks exceed the ISO parameters for compressive strength and water absorption.

How do you ensure quality standards for the concrete blocks manufactured?
With our 50 years of experience in the concrete blocks manufacturing industry, we have continually evolved and tried our best to stay relevant with the international quality standards. Quality control begins with procurement of good quality raw material. Fortunately, we have our own crushers to cater to our production units. This helps us negate undesirable raw materials. State of the art machinery and a strong base of SOP help mitigate errors. Above all, of these we have a skilled set of managers who have over 25 years of experience in the concrete blocks field.

Tell us about the sustainability and environmental benefit while manufacturing and while using these blocks in construction?
The blocks that we manufacture follow the highest quality parameters that give a very long life span. When used in building, the age of concrete blocks can be up to 100 years. The blocks used in these buildings at the time of demolition can be re-crushed and used to manufacture the same product again. And since concrete blocks are one of the strongest products available in the market, the on site damages are virtually zero. Unlike native methods of concrete production, we use only M-sand. There is no usage of river sand hence, safeguarding our environment. Also, as mentioned before, concrete blocks can be reused even after the lifespan of a building. This cuts down on further usage of raw materials.

What are the key benefits that any builder can get from using your concrete blocks?
The concrete blocks industry to a large extent can still be categorised in the unorganised sector. Due to this, there is a lot of disparity in pricing and quality in the market. At APCO, with our 50 years of experience, we have won the trust of our customers by consistently proving the highest quality of our products and on-time delivery.
With our 5 production units strategically located around Bangalore city, we have the capability of producing up to one lakh blocks per day. This allows us to consistently supply large quantities to our customers. Our customers can also be assured that the quantity of blocks that leave our plants is the same quantity that will be unloaded at the site.
Apart from this as mentioned in the earlier answers, our cellular blocks host a wide range of benefits during and even after the construction of a building.

How do these concrete blocks contribute to the profitability of construction?
When APCO came into the market in the early ’70s, the construction industry was heavily reliant on the traditional clay bricks. It took us about 10 years before we got our first big break. And since then, the construction market has not looked back. There have been multiple competitors in the walling solutions market but in terms of pricing and quality no other product comes close. Most people build a house once. At APCO, we believe in making that house a home. We provide unrivalled quality and a fair price to all our customers!

What does the near future hold for APCO Concrete Blocks and allied products?
We will be launching our new product line of pavers and kerb stones by August and we are working towards APCO being present in a few more states around India.

Kanika Mathur

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Concrete

Construction Costs Rise 11% in 2024, Driven by Labour Expenses

Cement Prices Decline 15%, But Labour Costs Surge by 25%

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The cost of construction in India increased by 11% over the past year, primarily driven by a 25% rise in labour expenses, according to Colliers India. While prices of key materials like cement dropped by 15% and steel saw a marginal 1% decrease, the surge in labour costs stretched construction budgets across sectors.

“Labour, which constitutes over a quarter of construction costs, has seen significant inflation due to the demand for skilled workers and associated training and compliance costs,” said Badal Yagnik, CEO of Colliers India.

The residential segment experienced the sharpest cost escalation due to a growing focus on quality construction and demand for gated communities. Meanwhile, commercial and industrial real estate remained resilient, with 37 million square feet of office space and 22 million square feet of warehousing space completed in the first nine months of 2024.

“Despite rising costs, investments in automation and training are helping developers address manpower challenges and streamline project timelines,” said Vimal Nadar, senior director at Colliers India.

With labour costs continuing to influence overall construction expenses, developers are exploring strategies to optimize operations and mitigate rising costs.

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Concrete

Swiss Steel to Cut 800 Jobs

Job cuts due to weak demand

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Swiss Steel has announced plans to cut 800 jobs as part of a restructuring effort, triggered by weak demand in the global steel market. The company, a major player in the European steel industry, cited an ongoing slowdown in demand as the primary reason behind the workforce reduction. These job cuts are expected to impact various departments across its operations, including production and administrative functions.

The steel industry has been facing significant challenges due to reduced demand from key sectors such as construction and automotive manufacturing. Additionally, the broader economic slowdown in Europe, coupled with rising energy costs, has further strained the profitability of steel producers like Swiss Steel. In response to these conditions, the company has decided to streamline its operations to ensure long-term sustainability.

Swiss Steel’s decision to cut jobs is part of a broader trend in the steel industry, where companies are adjusting to volatile market conditions. The move is aimed at reducing operational costs and improving efficiency, but it highlights the continuing pressures faced by the manufacturing sector amid uncertain global economic conditions.

The layoffs are expected to occur across Swiss Steel’s production facilities and corporate offices, as the company focuses on consolidating its workforce. Despite these cuts, Swiss Steel plans to continue its efforts to innovate and adapt to market demands, with an emphasis on high-value, specialty steel products.

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Concrete

UltraTech Cement to raise Rs 3,000 crore via NCDs to boost financial flexibility

UltraTech reported a 36% year-on-year (YoY) decline in net profit, dropping to Rs 825 crore

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UltraTech Cement, the Aditya Birla Group’s flagship company, has announced plans to raise up to Rs 3,000 crore through the private placement of non-convertible debentures (NCDs) in one or more tranches. The move aims to strengthen the company’s financial position amid increasing competition in the cement sector.

UltraTech’s finance committee has approved the issuance of rupee-denominated, unsecured, redeemable, and listed NCDs. The company has experienced strong stock performance, with its share price rising 22% over the past year, boosting its market capitalization to approximately Rs 3.1 lakh crore.

For Q2 FY2025, UltraTech reported a 36% year-on-year (YoY) decline in net profit, dropping to Rs 825 crore, below analyst expectations. Revenue for the quarter also fell 2% YoY to Rs 15,635 crore, and EBITDA margins contracted by 300 basis points. Despite this, the company saw a 3% increase in domestic sales volume, supported by lower energy costs.

In a strategic move, UltraTech invested Rs 3,954 crore for a 32.7% equity stake in India Cements, further solidifying its position in South India. UltraTech holds an 11% market share in the region, while competitor Adani holds 6%. UltraTech also secured $500 million through a sustainability-linked loan, underscoring its focus on sustainable growth driven by infrastructure and housing demand.

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