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Automation and technology play a considerable role in our industry

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Nitesh Sharma, Managing Director, Shri Maa Group, gives us a lowdown on the process of making bags for cement, the technology involved in the process, efforts towards sustainability and the important role packaging plays in cement storage and transportation.

Tell us about the variety of bags manufactured by your organisation to cater to the cement industry?
We manufacture all kinds of bags used suitable for packaging cement in India and globally. Our product range is as listed below:

  • PP stitched valve bags
  • Laminated PP stitched valve bags
  • Laminated PP Block Bottom bags
  • Laminated PP Block Bottom BOPP bags
  • Laminated PP Block Bottom BOPP bags with Liner
  • FIBC BULK bags

What is the material and capacity of these bags manufactured by you?
The materials used by our organisation to make cement packaging are polypropylene raffia grade, polypropylene lamination grade, polypropylene multifilament yarn and high resistance corona treated ink.
These bags hold the capacity to pack up to 50 kg cement. Our production capacity allows us to manufacture 400 million bags per annum.

How do you incorporate sustainability in cement packaging manufacturing?
Yes, we do incorporate sustainability for cement packaging in our manufacturing process in the following manner:

  • For all the products manufactured in our facilities, we use single family plastic raw materials, above 300 microns, which makes our product easily recyclable and reusable.
  • The waste incurred during the manufacturing process, i.e., post industry wastage is recycled and used in different plastic product applications. Thus, we are a zero plastic waste company.

Tell us about the role of automation and technology in your manufacturing process?
Yes, automation and technology play a considerable role in our industry. Earlier bag stitching used to be done manually, which involved a lot of work like making valves, folding of bags and thereafter stitching, which always resulted in a lot of variation in sizes. That used to result in a lot of bags being rejected while cement packaging.
With automation, high speed bag converting machines can make bags up to 140 bags per minute with full accuracy. Due to this accuracy level, no bags get rejected for its size or dimension fault.
These new machines also allow us to work at a higher speed and improve productivity with a high output of bags, thus, meeting the industry demands timely. Automation and technology help us save cost, improve productivity and efficiency by incorporating high outputs with least amount variance.

What alternative materials are being used for packagingof cement that support the environment?
The only alternative to PP bags is paper bags, which is not at all sustainable, looking at the volume in which bags are required in the Indian cement industry. Moreover, paper bags have a much higher carbon footprint as compared to PP bags. The cost of paper bags is also higher as compared to PP bags. Cement makers are hardly using paper bags for packaging of cement for these reasons and PP bags are the only ones that are used.

Cement bags are exposed to harsh environments. How equipped is your product to prevent cement wastage?
Bags made of polypropylene can easily sustain harsh environments. Usually, we do not need to add any additives to retain the properties of the bags as in a normal case, cement is consumed within one to two months after it is produced and packed. But if there is a need to have longevity, we can add certain additives to the master batch to retain the properties of the bag. These additives allow the bags to sustain harsh conditions and environments, if exposed, for up to a year.

What are the key challenges in providing packaging material for cement?
We manufacture and supply a large volume of bags to the cement industry. Each batch of the bag that goes out to the customer requires and goes through internal quality checks before it is supplied for the filling and packaging of cement.
Even though we have incorporated automation in our systems, a lot of manpower is required to make bags for the cement industry making our job labour intensive. The challenge is to acquire and retain this high skilled labour in large numbers in our industry.

Tell us about some innovations in packaging in the pipeline that the cement industry can look forward to.
There have been a lot of innovations going on in cement bags in the last couple of years. We are working on making these bags more sustainable in terms of environmental issues. We were the first to develop high quality low weight bags in India and with our technology partner ExxonMobil we launched these bags with Nuvoco Vista Corp Ltd., who are one of the leading manufacturers of cement. Nuvoco supported us in launching these bags and thus, we could reduce the bag weight by almost 20 per cent with better quality results.
These bags have been available in the market for the last couple of years and are performing very well. By reducing the weight of the bags, we could achieve the following:

  • Reduce the cost of the bags
  • Use less plastics
  • With a similar quantity of raw materials, we can make 20 per cent more bags
  • These bags are made with such additives that it can sustain an even much harsher environment and for a longer period.
  • After recycling, quality of the RP granules is much better than the existing high weight bags
  • Further, we are working on some technologies where we can wash, clean and de-ink the bags post consumer use and recycle them to very high standard reprocessed granules, which can again be used up to a considerable percentage in manufacturing of the bags. This will reduce waste to a large extent and help us reduce costs as well, thus, benefiting the environment and the industry.

-Kanika Mathur

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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