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Constantly increasing prices of building materials are a major challenge

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Shraddha Kedia-Agarwal, Director, Transcon Developers, brings in the perspective of developers as they tackle the issue of rising cement costs and the overall impact on consumer behaviour.

How has the rise in cement and building materials cost impacted your business?
The rise in cement and other building material costs have had a major impact on our business. Construction costs have risen significantly as budgets have remained fixed, resulting in a decrease in profitability. The prolonged delivery of materials has also caused a delay in projects and a requirement for increased cash flow during the construction phase.
As of March 2022, construction costs had gone up by 10 to 12 per cent year-on-year due to a 20 per cent spike in key material costs such as cement, steel, aluminium, copper and fuel. This was further exacerbated by geopolitical issues and inflation leading to increased labour costs. Developers are particularly challenged, as they have to deal with high levels of debt and liquidity constraints.

As the costs are expected to remain volatile for a few more months, is there any change in your strategy or approach towards the launch of new projects?
Though we are actively monitoring market conditions, we are not planning any change to our approach on launching new projects. However, we are increasing construction budgets and focusing more on external amenities in order to provide more value to buyers. This may result in increased costs, but the extra benefits provided should outweigh this cost.

Tell us about the impact on timely delivery of developer projects.
The constantly increasing prices of building materials are a major challenge for the construction industry, as they can lead to delays in project completion and reduced quality of work. Fluctuations in the market value for these materials present a significant risk for all stakeholders involved, such as suppliers, contractors, and clients.
There is an increased lead time for materials, and suppliers are hesitant to accept orders due to the uncertainty of the market. This means that material contractors are further apprehensive about accepting offers or quotation requests. As a result, developers may need to adjust their plans in order to ensure timely completion of projects.

How has the consumer behaviour changed with change in property costs? Do you expect the demand to decrease?
The changing property costs have certainly affected consumer behaviour. As prices increase, consumers may be more hesitant to purchase and less likely to spend beyond their budgets.
The real estate industry has been adapting to the pandemic since its onset, and the second wave of infections had further compounded their challenges. In particular, there has been a steep rise in the cost of key raw materials such as steel, cement, solid blocks, nails, binding wires, and plywood. This increase has been as much as 100 per cent in some cases compared to last year, severely limiting the developers› ability to offer discounts to their customers.
The decrease in demand may drive developers to offer more amenities or better value proposition in order to remain competitive in the market.

What is the major challenge that you have come across with the rising costs and how are you combating the same?
One major challenge with rising costs is that companies must make the right decisions on how to optimise their manufacturing processes, implement cost-saving measures and negotiate supplier terms in order to reduce their input costs without sacrificing quality. This is why selective manufacturing and value engineering are important, as they allow companies to reduce costs while still achieving their desired output. Additionally, fast/advance payments can help companies meet their vendors› needs while also helping them reduce their overall expenses. Finally, a focus on material consumption can provide companies with an opportunity to decrease their costs by reducing their materials used and exploring cheaper alternatives.

How do you envision the future of real estate development and consumer behaviour with the rising cost of cement and other construction materials?
In the future, the rising cost of cement and other construction materials will likely lead to real estate developers exploring alternative recycled materials. Additionally, consumer behaviour will likely shift towards more energy-efficient and environment-friendly construction methods, as well as green design initiatives like zero-waste construction and biophilic design. Real estate developers will also have to look for ways to reduce their material consumption, such as through the implementation of prefabricated structures, the use of intelligent building technologies and the development of holistic sustainability strategies.

-Kanika Mathur

Concrete

Cement Makers Reaffirm Commitment to Sustainable Growth

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World Environment Day spotlight on innovation and circularity

On World Environment Day, the Indian cement industry reiterated its commitment to supporting India’s climate ambitions through sustainable manufacturing, resource efficiency and the adoption of cleaner technologies.

The Cement Manufacturers’ Association (CMA) said the sector remains aligned with the Government of India’s Net Zero commitments and is accelerating efforts to reduce its environmental footprint while supporting the country’s infrastructure and development agenda.

Parth Jindal, President, CMA and Managing Director, JSW Cement, said the industry is increasingly adopting cleaner technologies, improving energy efficiency and expanding the use of alternative fuels and raw materials. He also highlighted the growing importance of circular economy practices, where industrial by-products and waste streams from one sector are utilised as resources in another.

“The Indian Cement Industry is aligned to the Government’s commitments on carbon mitigation and is accelerating the adoption of cleaner technologies, resource efficiency and circular economy practices while actively exploring the potential of Carbon Capture, Utilisation and Storage (CCUS) as a critical pathway for deep decarbonisation,” said Jindal.

He added that coprocessing industrial waste and by-products helps conserve natural resources, reduce disposal requirements and lower the environmental footprint across multiple sectors.

According to Jindal, sustainability is no longer limited to manufacturing processes but is increasingly influencing investment decisions, innovation strategies and long-term growth plans within the industry.

Echoing similar views, Dr Raghavpat Singhania, Vice President, CMA and Managing Director, JK Cement, said sustainable development extends beyond emissions reduction and must also focus on responsible resource utilisation and waste minimisation.

“Sustainability in the built environment cannot be measured by emissions alone. It is equally about how efficiently we use resources, how effectively we minimise waste and how responsibly we create the infrastructure that will serve future generations,” said Singhania.

He noted that the cement industry is advancing its sustainability agenda through greater resource efficiency, increased circularity, technological innovation and continuous improvements in manufacturing practices. As a key contributor to India’s infrastructure development, the sector has a critical role to play in balancing economic growth with environmental responsibility.

On the occasion of World Environment Day, industry leaders reaffirmed their commitment to supporting India’s climate goals while delivering the materials required for resilient, durable and sustainable infrastructure.

 

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Building a Greener Future Together

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Environmental sustainability requires immediate action, not just long-term commitments and discussions. Recycling, circular economy practices, and technology-driven waste management can help industries reduce environmental impact while supporting sustainable growth.

Author: Jignesh Kundaria, Director and CEO, Fornnax Technology

World Environment Day serves as an important reminder that environmental sustainability can no longer remain confined to discussions, reports, or long-term commitments. The environmental challenges facing the world today demand immediate, measurable, and collective action. Across industries and communities, waste generation continues to outpace our ability to process it responsibly, placing increasing pressure on ecosystems, natural resources, public health, and the well-being of future generations.

One of the most significant shifts required today is a change in how society perceives waste. Rather than being viewed as a material to be discarded, waste must be recognised as a valuable resource that can contribute to both economic growth and environmental protection when managed through the right technologies and systems. This mindset forms the foundation of the circular economy model that countries across the world are increasingly adopting to reduce landfill dependence, recover valuable materials, and create more sustainable industrial ecosystems.

India has made meaningful progress in strengthening awareness around sustainability, recycling, and environmental responsibility over the past decade. Significant efforts are being made to formalise the recycling sector through improved infrastructure, technology adoption, policy implementation, and broader stakeholder participation. These developments are creating a stronger foundation for responsible waste management and resource recovery across the country.

However, achieving long-term environmental impact requires collaboration from all stakeholders. Industries, policymakers, technology providers, and communities must work together with greater accountability to strengthen recycling ecosystems, encourage responsible waste management practices, and create sustainable outcomes through consistent execution rather than temporary interventions.

As someone closely associated with the recycling industry, I firmly believe that technology will play a decisive role in addressing future environmental challenges. Advanced recycling systems have the potential to recover valuable resources, reduce pollution, minimise landfill burdens, and conserve energy, creating a more sustainable future for generations to come. This belief is deeply reflected in Fornnax’s motto, “Committed to Create a Green Future,” which embodies our commitment to building long-term environmental value through innovation and responsible action.

At the same time, technology alone cannot deliver meaningful change. Real progress requires intent, awareness, participation, and a shared sense of responsibility. Sustainable development can only be achieved when innovation is supported by collective action and a genuine commitment to environmental stewardship.

On this World Environment Day, let us move beyond conversations and take meaningful steps towards creating a cleaner, greener, and more sustainable planet. By embracing innovation, strengthening recycling ecosystems, and acting responsibly today, we can create lasting environmental impact and secure a better future for generations to come.

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Concrete

JK Lakshmi Advances LC3 Cement Expansion

Company highlights commercial production and research partnerships

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The meeting reviewed progress in limestone calcined clay cement (LC3) technology and its commercial adoption in India’s cement sector, focusing on low-carbon alternatives to conventional binders. JK Lakshmi Cement noted that limestone calcined clay cement can reduce carbon dioxide emissions by up to 40 per cent compared with conventional cement and said this reduction supports industry decarbonisation. The company highlighted that it was among the first two cement manufacturers in India to move LC3 into commercial production after the Bureau of Indian Standards approved the technology as a cement standard.

Vinita Singhania said the transition of LC3 from research to commercial production reflected collaboration between industry, academia and international institutions. Maya Tissafi acknowledged JK Lakshmi Cement’s role in advancing LC3 adoption in India and its contribution in taking the technology from laboratory trials to commercial implementation. Both representatives underlined the growing relevance of sustainable construction materials as India expands infrastructure and urban development.

The meeting explored continued collaboration with Swiss research institutions such as EPFL, EMPA and ETH Zurich alongside Indian academic partners and development organisations. JK Lakshmi Cement has been associated with the LC3 initiative since 2014 and worked with EPFL, IIT Delhi, IIT Madras, Development Alternatives and Technology and Action for Rural Advancement. The company conducted one of the earliest industrial trials of LC3 and recently announced commercial production of Green Pro LC3 cement from its Jaykaypuram plant in Rajasthan.

India remains the world’s second-largest cement producer and expansion of infrastructure, urbanisation and housing demand continue to support long-term sector growth, increasing interest in low-carbon technologies. The company reported an annual turnover of more than Rupees (Rs) 60 bn and current cement capacity of about 18 million (mn) tonnes (t) per annum, with a target of reaching 30 million (mn) tonnes (t) by 2030. Apart from grey cement, the company also makes ready-mix concrete, gypsum plaster, wall putty, primers, adhesives and fly ash blocks, and both sides concluded on the need for continued collaboration to develop sustainable construction solutions.

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