Concrete

Constantly increasing prices of building materials are a major challenge

Published

4 years ago

January 16, 2023

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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

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Concrete

Jammu Division Begins First Cement Rail Traffic to Anantnag

Cement Loading From Kathua for Anantnag to Begin on September 14

Published

3 days ago

September 21, 2026

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Jammu Railway Division has placed an indent for the first movement of cement by rail within the division, linking Shaheed Captain Sunil Kumar Choudhary Kathua Railway Station with Anantnag Railway Station. Loading for the consignment is scheduled to begin on September 14.

Concrete

Hard Worker Wins Three Honours at Kyoorius Design Awards

Ramco Cements’ brand secures Grand Prix and two Blue Elephant honours.

Published

3 days ago

September 21, 2026

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The Ramco Cements Limited’s construction chemicals brand, Hard Worker, has won three honours at the Kyoorius Design Awards 2026, including the Grand Prix – Grey Elephant in the Design in Action category.

The brand also secured two Blue Elephant honours, one for Design in Action and another for Packaging, recognising the design approach behind its brand identity and packaging.

Launched in 2025, Hard Worker entered the construction chemicals segment with the brand promise, “Hard-working products for hardworking people.” Its visual identity uses animals and birds to represent product benefits. The camel represents the water-retention capability of Hard Worker Eco Plaster, while the cheetah represents the speed and performance of Hard Worker Block Fix.

The visual language has been extended across packaging, retail, communication, literature, digital platforms and other brand touchpoints. Hard Worker uses bold colours, distinctive animal illustrations and simple visual storytelling to communicate product benefits across markets and audiences, including construction workers and applicators.

“For Hard Worker, design was never an afterthought. It was fundamental to how we wanted to build the brand. In a category that is largely functional, we wanted to create a brand that people could recognise, understand and remember instantly. The Kyoorius recognition is a wonderful validation of this design-led approach,” said Mr. AV Dharmakrishnan, CEO, The Ramco Cements Limited.

Mr. Balaji K. Moorthy, Executive Director – Marketing, Ramco Cements said “In a category where communication has traditionally been product-led and functional, we wanted Hard Worker to stand apart by making design an integral part of the brand experience. From the distinctive animal-led packaging to our communication across consumer and trade touchpoints, every element was designed to make the brand more memorable and the product benefits easier to understand.”

Within its first 12 months, Hard Worker crossed Rs 3.5 bn in sales. The latest recognition follows six honours secured by the brand’s campaign at the Kyoorius Creative Awards earlier in 2026, including the Grey Elephant Grand Prix for its Eco Plaster film.

The Kyoorius Design Awards recognise outstanding design work in India’s visual communications sector across multiple categories and platforms. The 2026 awards were announced on 12 September in Goa.

The Ramco Cements Limited is part of the Ramco Group and operates across cement and allied building-material solutions. Hard Worker is its construction chemicals brand, offering solutions across key construction applications.

Concrete

Cement Firms to Invest Rs. 130 bn in Green Energy by FY28

Cement companies plan to expand clean energy capacity to 6 GW by FY28

Published

7 days ago

September 17, 2026

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India’s major cement companies are set to raise their clean energy capacity to 6 GW by March 2028 from around 4 GW at the end of March 2026, according to ratings agency ICRA. The planned expansion is expected to involve investments of Rs. 130 bn over the next two years.

The additional capacity could generate annual savings of Rs. 62 bn to Rs. 67 bn, resulting in an estimated payback period of 1.8 to 2.2 years. Cement is an emission-intensive industry, and leading producers have established net-zero roadmaps covering the next 15 to 20 years.

The calcination process accounts for 57 to 60 per cent of the sector’s total emissions, while fuel combustion contributes 27 to 30 per cent and electricity consumption accounts for 10 to 13 per cent. ICRA said the figures highlighted the need for a broad decarbonisation strategy involving green power, blended cement, alternative fuels and improvements in clinker efficiency.

Green energy is considered one of the most commercially attractive decarbonisation options because it can reduce emissions while lowering operating costs. Every 5 per cent increase in green power replacement can reduce power and fuel costs by Rs. 15 to Rs. 16 per tonne. A 25 per cent replacement level could therefore save Rs. 75 to Rs. 80 per tonne and expand operating margins by 140 to 160 basis points.

Cement producers are also assessing carbon capture, utilisation and storage, although high implementation costs, energy requirements and limited transport and storage infrastructure are expected to slow commercial adoption. The government has proposed Rs. 200 bn over five years to support deployment across key sectors. Meanwhile, companies are targeting thermal substitution rates of 10 to 15 per cent over the next three to five years, compared with the current industry level of around 6 per cent.