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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

Cement Makers’ Margins To Fall Rs 50-75 Per Tonne Amid West Asia Conflict

Crisil Sees Margins Easing Despite Steady Demand

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Crisil said operating margins of Indian cement manufacturers are expected to decline by Rs 50-75 per tonne (t) this fiscal to Rs 925-950 per t due to higher input costs triggered by the West Asia conflict. The analysis covered 18 cement companies accounting for nearly 90 per cent of India’s domestic cement capacity and noted margins had improved sharply to around Rs 1,000 per t in fiscal 2026.

Crisil noted that the reduction would be driven mainly by higher power and fuel costs, which account for about 30 per cent of total costs, as petcoke and imported coal prices have surged amid geopolitical uncertainties. Freight costs, which account for about a quarter of total costs, are also expected to remain elevated because of higher diesel prices. The impact on profitability is likely to be more pronounced in the first half of the fiscal year before easing commodity prices moderate cost pressures later.

The rating agency said steady domestic demand and strong balance sheets should keep credit profiles stable despite the moderation in margins. Green energy currently accounts for 35-40 per cent of the sector’s total electricity consumption and is expected to partly cushion higher energy costs. Operating cash flows are likely to remain resilient, supported by projected 6-7 per cent growth in cement demand this fiscal.

Crisil highlighted that demand growth will be driven primarily by infrastructure spending, which meets about one-third of sector consumption, and by a nearly 18 per cent higher budgetary allocation for core ministries that should support project execution. Weaker rural housing demand amid pressure on agricultural incomes from a possible below-average monsoon may be offset by improved urban housing demand supported by favourable home-loan rates and a strong pipeline of Pradhan Mantri Awas Yojana-Urban projects. Ongoing capacity additions will keep capital expenditure elevated and may lift net debt to EBITDA to between 1.2 and 1.4 times from around 1.0 time last fiscal, though ratios are expected to remain healthy.

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Concrete

UltraTech Board Approves Rs 50 bn Fundraise Via NCDs

Company to issue half a million debentures for expansion plan

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UltraTech Cement’s board of directors has approved raising Rs 5,000 crore (Rs 50 bn) through non?convertible debentures issued in rupees.

The finance committee cleared a proposal to issue up to 500,000 fully paid, unsecured, listed, rated, redeemable, rupee?denominated, non?convertible, non?cumulative debentures of Rs 1 lakh each (Rs 0.1 mn each), aggregating to the Rs 5,000 crore programme.

As of June 2026 the firm reported net debt of Rs 15,875 crore (Rs 158.75 bn) and said its capacity expansion projects under execution are backed by capital expenditure of about Rs 17,000 crore (Rs 170 bn) over the next two to two?and?a?half years.

UltraTech spent Rs 9,500 crore (Rs 95 bn) on capital expenditure in financial year 2026 and in April the group crossed 200.1 mn tonnes per annum of domestic grey cement capacity and 205.5 mn tonnes per annum of global capacity.

The chief financial officer indicated the company would take consolidated capacity beyond 242 mn tonnes per annum, with grey cement capacity reaching 212.7 mn tonnes per annum by the end of financial year 2027. He noted the net debt?to?earnings before interest, taxes, depreciation and amortisation ratio stood at 0.87 times as of June 2026 and the company was confident of ending financial year 2027 with the ratio below one time.

In the first quarter of financial year 2026?27 UltraTech’s net profit attributable to owners rose 16.8 per cent year?on?year to Rs 2,599.3 crore (Rs 25.993 bn) and revenue from operations increased 15.9 per cent to Rs 24,648.20 crore (Rs 246.482 bn). The board approval is expected to complement internal cash flows as the company advances its expansion programme.

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Concrete

Lokesh Lays Stone For Rs 31 Billion Cement Unit In Kadapa

Line-2 expansion to make Kadapa a major cement hub

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Andhra Pradesh Education and IT Minister Nara Lokesh on Wednesday laid the foundation stone for the Line-2 expansion of Dalmia Bharat Cement at Chinnakomerla village in Mylavaram Mandal in Kadapa district. The project carries an investment of Rs 31 billion (bn) and is slated for completion by the third quarter of the financial year 2028. The expansion is intended to boost industrial growth and employment generation across the Rayalaseema region.

Once commissioned, the Kadapa facility will become Dalmia Bharat’s largest integrated cement manufacturing ecosystem in southern India, creating over 1,000 direct and indirect jobs and opening new business avenues for regional micro, small and medium enterprises and transport operators. Lokesh said the expansion signalled growing corporate confidence in the state and reflected the practical ease of doing business that secured repeat investment.

He placed the project within the government’s wider economic targets and recalled the Yuvagalam padayatra commitment to generate two million (mn) jobs within five years, noting that the state would cultivate talent while industry created opportunities. Lokesh highlighted Andhra Pradesh’s competitive pursuit of major manufacturing accounts, mentioning past successes and a personal initiative to engage global investors when persuading them to anchor expansion in the state.

The plant will leverage Kadapa’s abundant limestone reserves to scale production and sustainability. Clinker capacity is planned to rise from two point five million tonnes per annum (mn tpa) to six point one mn tpa, while overall cement output will increase from three point six mn tpa to nine point six mn tpa. The unit is designed to operate on over eighty per cent renewable energy and deploy waste heat recovery, zero liquid discharge, water recycling and advanced AI systems to optimise efficiency. Industries Minister TG Bharat, BC Welfare Minister S. Savitha and Jammalamadugu MLA C. Adinarayana Reddy attended the ceremony.

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