Connect with us

Concrete

Practising Sustainability at Every Step

Published

on

Shares

Pearl Tiwari, Director and CEO, Ambuja Cement Foundation (ACF), takes us through the efforts taken and progress made by the community development initiatives undertaken by ACF, which is making a difference in the areas of healthcare, water conservation, livelihoods, education and women empowerment.

Ambuja Foundation is an independent, pan-India development organisation, committed to generating prosperous rural communities. They believe in the vast, untapped potential of rural communities and the unstoppable power of the people that live there. With investments in water, agriculture, skills, women, health and education, they enable ‘livelihoods’ as a pathway to unleashing that potential.
Partnering with like-minded corporations, governments and others, they work collaboratively with communities to solve pressing community problems – empowering local people to be the catalysts and drivers of change. With over almost three decades of work, they have seen a complete transformation in the remote geographies in which they work.  
Today, with the full support and encouragement of Ambuja Cements, ACF is committed to expanding their footprint and impact of their work even further, through partnerships – building many more sustainable, prosperous rural communities and revitalising rural India as the backbone of this country.

Community Development Initiatives
Ambuja Cements has been working with grassroots communities for over 30 years – its founders had the vision that, as the company prospered, so should the communities around them. Community development initiatives were, therefore, carried out extensively long before the CSR law came into play.
As the company, and therefore its CSR, grew, there became a need to create a separate organisation of development professionals to execute projects. For the last 29 years, Ambuja’s CSR initiatives have been implemented through Ambuja Cement Foundation. ACF has played a pivotal role in improving the lives of the communities, in and around ACL plant operations, with an objective to energise, involve and enable them to realise their potential. This has enabled the company to fulfil its commitment to be a socially responsible corporate citizen.
Over the years, Ambuja Cement Foundation as a stand-alone development organisation, has grown exponentially, due to Ambuja Cements support and also its expansion into various other geographies. It has progressed so well by facilitating the convergence with government schemes to support projects, and via the active participation of the community members – encouraging community members to actively contribute and take ownership of the projects. With successful community participation, this impactful, on the ground model has led to ACF being recognised as a leading CSR implementing agency. As a result, several other corporates have invited ACF to be an implementing partner in executing their own CSR, so with full encouragement from Ambuja Cements Ltd, ACF has grown its footprint significantly in terms of size and reach – beyond ACL territories, working in needy districts and communities where ACF’s expertise in remote rural community development is most needed.
In terms of governance, Ambuja Cements has a very active and involved CSR Board Committee. They see great benefit in the work of the Foundation as there are many direct benefits to the business also – which reinforces the statement ‘you can do well by also doing good.’ The CEO of the Foundation reports to the MD of Ambuja Cements and the board is frequently updated on the impacts, achievements, and interventions of the Foundation.

Rural Communities
Livelihoods are the key to solving the riddle of rural poverty. With a good livelihood, most people can solve many of their own problems.
Whilst there have been great gains in the reduction of poverty across the country over the last 25 years, many of those that have ‘come out of poverty’ still live in dire and difficult circumstances – they simply do not have a level of income to enable them to live a decent quality of life, rather than just bare subsistence.
Income levels, therefore, need to be sufficient enough to enable them to meet some fundamental household needs – food, energy, housing, drinking water, sanitation, healthcare, education and social security. Whilst it may sound simple, it’s not. Livelihood is a multifaceted issue, and is so much more than just the impact of skills and education.
Following the livelihoods pentagon approach, ACF believes that for any person to earn a livelihood, they require five sets of capital to support them:

  • They need skills, but if they have health problems, the skills do not matter.
  • They need a basic education, but if they cannot access affordable loans they get into a vicious cycle of debt.
  • They need technical know-how, but if there is no water for the family or farming, it is of
  • little help.
  • They need bargaining power, but if they do not work together their voice cannot be heard.

To prosper, rural villagers need all these things and more, to support them in earning a livelihood. Therefore, ACF takes a holistic approach to helping rural families generate livelihoods – working across 6 thrust areas of water, agriculture, skills, women, health, and education. ACF works with 2.2 lakh farmers, 35,000 women and 88,000 youth – directly helping them enhance livelihoods, build businesses, diversify income streams and skills for a
strong livelihood.

ACF Sakhis are a key vehicle of health care delivery, driving various health promotion initiatives at a community level.

Key Programmes
ACF works with a vision to create a sustainable and self-dependent society, by generating livelihood opportunities for the rural population. For this, ACF has chosen to work in the selected thrust areas:

  • Water Management
  • Livelihoods (SEDI and Agro-based)
  • Women empowerment
  • Health
  • Education

All programmes at ACF are undertaken with community participation with the help of tools like Participatory Rural Appraisals (PRAs), which ensure better understanding of local nuances and hence efficient implementation in varied geographies.
ACF has also worked in water resource management for almost 30 years across 11 states – from the deserts of Rajasthan, to the mountains of Himachal Pradesh, and from the interiors of Maharashtra to the coastline of Gujarat. Over this period, they have learnt first-hand how water issues in India vary greatly from region to region.
The semi-arid Rajasthan, for instance, has always had to adapt to limited water supplies. In mountainous states such as Himachal Pradesh and Uttaranchal the water holding capacity of the soil is low and susceptible to excessive soil erosion. Moreover, the undulating topography and steep slopes lead to high water runoffs and landslides. The coastal regions grapple with salinity creeping inland rendering ground water unfit for agriculture and domestic use. In other regions such as Maharashtra, the water crisis is mostly a man made calamity. India’s water challenges, therefore, require deep knowledge of local conditions and the development of hyper local solutions.
Working hand in hand with local communities and Government ACF has built drought resilient villages – empowering the community to secure their water future.

ACF’s work in women led microenterprises has helped over 10,000 women to kickstart their businesses.

Water needs both technical and social solutions and hence their work focuses on both the demand and supply side interventions in three core areas:
Drinking Water Security: ACF works with families and communities to ensure clean drinking water availability for daily household consumption. This includes solutions such as Rooftop Rainwater Harvesting Systems to ensure fresh water availability and the revival of drinking water sources such as pumps, tube wells and village ponds. ACF distributes water throughout villages via solar pumps, overhead tanks, and pipelines to bring water to within 200m of each household, and ensures schools have water also. Access to safe water is paramount, and so ACF trains communities to test and monitor the quality of their water and where necessary, install filtration plants as a solution. Source sustainability is also addressed.
Water for Livelihoods: ACF works hand in hand with local communities to plan, implement and manage projects to harvest rainwater and ensure all-year-round water for farmers, families, and communities. They do this by building and renovating water harvesting systems like ponds and check dams – supporting groundwater recharge along the way. ACF also works with communities to revive the ancient traditional systems of water. Soil moisture is critical and farm bunds, trenches and loose stone check dams are built to conserve it for livelihoods. Additionally, ACF works with communities to rejuvenate watersheds and restore the natural ecosystems that support water.
Water Use Efficiency: Once water has been made available, the communities need to be educated on its management and efficient usage. Agriculture consumes almost 80 per cent of available water due to the widely prevalent flood irrigation techniques. Their interventions focus on promotion of micro irrigation techniques, reduction of conveyance losses, small lift irrigation schemes and both participatory groundwater management and irrigation management.
ACF’s health programmes integrate preventive, promotive, and curative care, using our Sakhi’s as grassroot healthcare providers trained to manage a range of conditions.
Maternal Child and Adolescent Health: Their trained Sakhis’ provide home based new-born care services, antenatal and postnatal care, promote immunisation, tackle malnutrition and address anaemia and other issues around adolescent health.
Communicable and Non-Communicable Disease: ACF educates the community and builds their capacity to bring about lifestyle changes, develop a proactive approach to health, and to present for early diagnosis and treatment of communicable and non-communicable diseases. This includes health promotion on NCDs, TB and HIV; screening and diagnosis of high-risk patients, facilitating access to affordable treatment, promotion tobacco free and providing counselling for mental health.
WASH: ACF promotes safe drinking water, sanitation, and hygiene to ensure the health and wellbeing of communities they work in. Promoting personal and environmental health, creating open defecation free villages, ensuring WASH services in institutions like schools and panchayats and tackling menstrual hygiene, they actively work to prevent the spread of disease. Additionally, a cadre of Swachhata Doots (adolescent volunteers) works to keep villages and schools clean.
Curative Health: ACF provides curative healthcare services in collaboration with primary healthcare providers, to address gaps in rural healthcare provision. This includes mobile medical vans, diagnostic centres, and community health clinics. Speciality health camps are organised and ACF also provides health care centres for the migratory trucker population.

Strategy meeting of the water user committee near their community pond.

Women Empowerment
Gender is a cross-cutting theme at ACF and they ensure that women play an integral role, and are engaged, across all their programme verticals.
Firstly, they focus on the social participation and inclusion of women – drawing them out of their homes and mobilising them into SHGs to initiate saving and forming social networks. They harness the power of women as key drivers for improving the health and sanitation of communities and ensure their participation in village forums such as village development committees, water user associations and other key decision-making bodies.
ACF also provides pathways for women to achieve economic empowerment – generating incomes, starting new businesses, skilling and accessing government schemes and credit. Their work in women-led microenterprises is noteworthy with over 10,000 women kickstarting businesses and thriving. Additionally, they promote inclusive agriculture. Earlier the role of women in agricultural activities were limited to labour, however they have been actively mainstreaming women into agriculture and crop development and engaging them in Farmer Producer Companies as decision makers.
ACF also places a big focus on building local institutions, like Women’s Federations. By collectivising women, they help them unite on common problems and work together to find solutions – creating market linkages, kickstarting their own cooperatives, and actively taking up local social issues like alcoholism, domestic violence, and the ill-treatment of widows. They have 11 Women’s Federations till date, with 14,120 women members.

Through its agriculture thrust area, ACF is set to promote micro-irrigation and create additional livelihoods to supplement farmer incomes.

Education and Skill Development
Rural youth, not only lack opportunity, they also lack awareness and the motivation to seek employment; aspirations are often unrealistic and solely focused on white collar jobs. At the same time several skill-based positions are lying vacant for want of appropriately skilled manpower.
At ACF, they follow a unique model of skill training, that motivates and counsel’s youth, offers them a tailored programme designed to meet the employment needs of businesses within their areas, and find good jobs in and around their districts. After placement, rural youth face many challenges in their first job placement. In order to increase retention, they provide ongoing mentoring and support to transition into formal employment.
ACF’s 35 Skill and Entrepreneurship Training Institutes (SEDI), across 10 states, currently offer 33 NSDC certified courses in 12 sectors. Their intervention follows a three phased approach:
Training: They closely engage with industry in regional areas to understand their skilling and recruitment needs, and develop tailored skilling courses to impart those skills to unemployed youth in the area. Training is imparted in a classroom setup that stimulates the actual work environment for the respective trades. The training calendar is a balanced schedule of classroom, practical and on-the-job training, soft skills, basic IT and English as well as industry visits to expose the trainees to the realities of the workplace and prepare them for employment. Guest lectures by prospective employers, help their trainees understand workplace realities and prepare themselves to deal with them. Counselling of both the trainees, and their parents to develop their willingness to relocate for employment is an essential element of their training. They actively foster entrepreneurship at SEDI to help students start their own business and equip them with the necessary skills for it to flourish.
Placement: Once skill training is complete, SEDI helps facilitate the placement of graduates into their first jobs, via a network of partnerships with industries and businesses. But it doesn’t end there, as rural youth need a lot of counselling and hand holding in their initial job placements. Group placements, group housing, and other transition facilities such as transport facilities from the remote villages to the cities (as per the felt needs of the trainee cohorts) ensure that peer support and guidance is readily available to the newly placed trainees thus enabling a smooth transition of the trainees into a formal workspace. Refresher Training is a key component of their model.
Entrepreneurship: ACF also promotes and supports entrepreneurship – encouraging graduates to start micro and small enterprises, and training existing entrepreneurs to take their businesses to an all-new level. A new Enterprise Development Curriculum has been launched, which provides training and mentoring on every aspect of starting and growing a small business. Over 23,112 young people have established their own enterprise.

Taking Challenges Head-on
Initially, ACL and ACF faced huge challenges in convincing the local community that ACF was there to help them, not exploit them. There was a need to demonstrate their sincerity via initial projects and slowly build up a reciprocal relationship of trust. That trust has stood the test of time, and today ACF the community relationships are their greatest assets.
Similarly, being a corporate company, community people thought that work would simply ‘be done for them.’ There was a mentality of that nature. However, at ACF, nothing is given for free. They work towards getting community participation, contribution, and involvement – encouraging them to take ownership of projects. Only then, does the sustainability and success of a project develop.
Working in the remote interiors of the country, they have faced challenges in hiring high level professionals. To tackle this, their strategy has been to take ordinary people with basic training in development, but who have the right attitude, values, and ethics, and to train them overtime. Whilst it takes time, this strategy has worked wonders for them and today they have built a loyal and highly skilled staff base who are the best at what they do on the ground in communities. Similarly, finding good quality staff and retaining them in the remote interiors is a challenge. However, today, ACF is a Best Place to Work and a highly sought-after workplace.
Convergence with government schemes has enabled significant growth and funds to support various projects, however the release of those funds for reimbursement are often delayed and so they face an accumulation of cash flow difficulties.

Helping Hands
ACL commenced doing CSR long before it was mandated by the government and over almost 30 years, ACF has developed a core set of expertise and experience which can help other cement organisations and corporates to meet their social responsibilities, impactfully. They are ready to partner with others on joint projects.
ACF’s experience has helped many corporates tackle key challenges they face in executing their CSR. Located in the deep interiors where the problem of rural poverty lies, ACF also has a proven process in place to enable last mile reach. Their core expertise in building community capacity and ownership has been instrumental in making projects sustainable in the long run. By marrying modern technology with the traditional wisdom of the community, ACF has been able to provide lasting solutions to complex local problems. ACF build’s people’s institutions so that the long-term sustainability of each project is managed by the local people. An ability to lead and manage a consortium of partners – helping them find common ground. i.e. Government, NABARD, NGOs, Corporates and Community. Lastly, ACF has a very professional approach, capturing detailed data on impact and sharing it with their partners
via proper reporting – helping them meet their regulatory requirements.

Bringing Sustainability to the Table
While ACF started as a CSR arm of the company, as a foundation their role has expanded exponentially. They now operate in extended territories and are committed to harnessing their interventions to transform rural India joining hands with other corporate, government and nonprofits to support their work.
Looking at the future plans, ACF will focus on ensuring 100 per cent households of the operating communities receive safe drinking water and will continue to promote water stewardship. Through its agriculture thrust area, ACF will promote micro-irrigation and create additional livelihoods to supplement farmer incomes.
ACF will also focus on improving the socio-economic conditions of the communities by increasing outreach and providing access to skill training for needy/marginalised youth and continue supporting the establishment and growth of small business enterprises in rural communities. This will not be possible without ensuring that people receive good quality health and productive services, and improved education systems are in place for the future generation.
ACF has come a long way in bringing transformation in rural India and is committed to playing a small role in helping India progress. While it continues with its vision to building prosperous communities, it will continue its extensive work and operate in alignment to achieve the Sustainable Development Goals. ACF invites like-minded organisations to partner with them and extend their work to more geographies.

ABOUT THE AUTHOR:
Pearl Tiwari, President (CSR and Sustainability), Ambuja Cement Foundation
, is a development professional with over 36 years of experience, currently focussed on CSR. She is involved in strategic corporate social responsibility and inclusive development.

Concrete

Indian Cement Industry Sees Further Consolidation

Cement industry to face consolidation soon.

Published

on

By

Shares



India’s cement sector is set for further consolidation in the near-to-medium term, according to a recent report. With increasing competition, rising input costs, and the need for economies of scale, companies are expected to explore mergers and acquisitions (M&A) to strengthen their market positions. As the industry faces various challenges, including high energy costs and fluctuating demand, consolidation is viewed as a strategic move to drive growth and sustainability.

Key Points:
Market Consolidation: The Indian cement industry has already witnessed significant consolidation over the past few years, with several large firms acquiring smaller players to enhance their market share. The trend is expected to continue, driven by the need to optimize operations, cut costs, and gain better pricing power. Consolidation helps companies to expand their geographic reach and strengthen their portfolios.

Rising Costs and Challenges: One of the primary drivers of consolidation is the rising cost of inputs, particularly energy and raw materials. With costs of coal and petroleum coke (key energy sources for cement production) soaring, companies are looking for ways to maintain profitability. Smaller and medium-sized players, in particular, find it challenging to cope with these rising costs, making them more likely targets for acquisition by larger companies.

Economies of Scale: Larger cement companies benefit from economies of scale, which help them absorb the impact of rising input costs more effectively. Consolidation allows firms to streamline production processes, reduce operational inefficiencies, and invest in advanced technologies that improve productivity. These efficiencies become critical in maintaining competitiveness in an increasingly challenging environment.

M&A Activity: The report highlights the potential for more mergers and acquisitions in the cement sector, particularly among mid-sized and regional players. The Indian cement market, which is highly fragmented, presents numerous opportunities for larger companies to acquire smaller firms and gain a foothold in new markets. M&A activity is expected to accelerate as firms seek growth through strategic alliances and acquisitions.

Regional Focus: Consolidation efforts are likely to be regionally focused, with companies looking to expand their presence in specific geographic areas where demand for cement is strong. Infrastructure development, government projects, and urbanization are driving demand in various parts of the country, making regional expansions an attractive proposition for firms looking to grow.

Impact on Competition: While consolidation may lead to a more concentrated market, it could also intensify competition among the remaining players. Larger firms with more resources and market reach could dominate pricing strategies and influence market dynamics. Smaller firms may either merge or struggle to compete, leading to a reshaping of the competitive landscape.

Demand Outlook: The near-term outlook for the cement industry remains uncertain, with demand being influenced by factors such as construction activity, infrastructure projects, and government initiatives. The report notes that while urban demand is expected to remain stable, rural demand continues to face challenges due to slow construction activities in those areas. However, the long-term outlook remains positive, driven by ongoing infrastructure developments and real estate projects.

Sustainability Focus: Companies are also focusing on sustainability and environmental concerns. Consolidation can provide larger companies with the resources to invest in green technologies and reduce their carbon footprint. This focus on sustainability is becoming increasingly important, with both government regulations and market preferences shifting toward greener production practices.

Conclusion:
The Indian cement industry is poised for further consolidation in the coming years, driven by rising costs, competitive pressures, and the need for economies of scale. M&A activity is likely to accelerate, with larger firms targeting smaller and regional players to strengthen their market presence. While consolidation offers opportunities for growth and efficiency, it could also reshape the competitive landscape and influence pricing dynamics in the sector.

Continue Reading

Concrete

Cement Companies May Roll Back Hike

Cement firms reconsider September price increase.

Published

on

By

Shares



Cement companies in India might be forced to reverse the price hikes implemented in September due to weakened demand and pressure from competitive market conditions, according to a report by Nuvama Institutional Equities. The recent price increase, which was expected to improve margins, may not hold as demand falls short of expectations.

Key Points:
Price Hike in September: Cement firms across India increased prices in September, aiming to improve their margins amidst rising input costs. This was seen as a strategic move to stabilize earnings as they were grappling with inflationary pressures on raw materials like coal and pet coke.

Weak Demand and Pressure: However, demand has not surged as expected. In some regions, particularly rural areas, construction activity remains low, which has contributed to the tepid demand for cement. The combination of high prices and low demand may make it difficult for companies to maintain the elevated price levels.

Competitive Market Forces: Cement manufacturers are also under pressure from competitors. Smaller players may keep prices lower to attract buyers, forcing larger companies to consider rolling back the September hikes. The competitive dynamics in regions like South India, where smaller firms are prevalent, are likely to impact larger companies’ pricing strategies.

Nuvama Report Insights: Nuvama Institutional Equities has highlighted that the September price hikes may not be sustainable given current market conditions. According to the report, the demand-supply imbalance and weak construction activities across many states could push cement companies to reconsider their pricing strategies.

Impact on Margins: If companies are compelled to roll back the price hikes, it could hurt their profit margins in the near term. Cement firms had hoped to recover some of their input costs through the price increases, but the competitive landscape and slow demand recovery could negate these gains.

Regional Variations: Price rollback might not be uniform across the country. In regions where infrastructure development is picking up pace, cement prices may hold. Urban areas with ongoing real estate projects and government infrastructure initiatives could see a sustained demand, making price hikes more viable.

Future Outlook: The outlook for the cement sector will largely depend on the pace of recovery in construction activity, particularly in the housing and infrastructure sectors. Any significant recovery in rural demand, which is currently subdued, could also influence whether the price hikes will remain or be rolled back.

Strategic Adjustments: Cement firms may need to adopt a cautious approach in the near term, balancing between maintaining market share and protecting margins. Price adjustments in response to market conditions could become more frequent as companies try to adapt to the fluctuating demand.

Conclusion:
The September price hikes by cement companies may face reversal due to weak demand, competitive pressures, and market dynamics. Nuvama’s report signals that while the increase was aimed at margin recovery, it may not be sustainable, particularly in regions with low demand. The future of cement pricing will depend on construction sector recovery and regional market conditions.

Continue Reading

Concrete

Bridge Collapse Spurs Focus on Stainless Steel

Climate change prompts stainless steel push.

Published

on

By

Shares



The Ministry of Road Transport and Highways (MoRTH) is turning its attention to the use of stainless steel in bridge construction to counteract corrosion, an increasing issue linked to climate change. With recent bridge collapses highlighting the vulnerability of existing infrastructure to corrosion and extreme weather events, the ministry is promoting the adoption of durable materials like stainless steel to ensure the longevity and safety of India’s critical transport infrastructure.

Key Points:

Bridge Collapse and Climate Change: Recent incidents of bridge collapses across the country have raised alarm over the durability of current construction materials, with corrosion cited as a leading cause. Climate change, leading to harsher weather patterns and increased moisture levels, has accelerated the deterioration of key infrastructure. This has prompted MoRTH to consider long-term solutions to combat these challenges.

Corrosion: A Growing Concern: Corrosion of structural materials has become a serious issue, particularly in coastal and high-moisture regions. The Ministry has identified the need for a more resilient approach, emphasizing the use of stainless steel, known for its resistance to corrosion. This shift is seen as crucial in ensuring the longevity of India’s bridges and reducing maintenance costs over time.

Stainless Steel for Bridge Construction: Stainless steel, while more expensive initially, offers long-term savings due to its durability and resistance to environmental factors like moisture and salt. The Ministry is advocating for the material’s use in future bridge projects, particularly in areas prone to corrosion. Stainless steel is seen as a solution that can withstand the pressures of both natural elements and increasing traffic loads.

Government’s Proactive Steps: The government, through MoRTH, has started consulting with experts in the field of metallurgy and civil engineering to explore the expanded use of stainless steel. They are considering updates to construction standards and specifications to incorporate this material in new and rehabilitated infrastructure projects.

Economic Considerations: Although the initial investment in stainless steel may be higher than conventional materials, the reduced need for repairs and replacements makes it a cost-effective option in the long run. This approach also aligns with the government’s push for sustainable infrastructure that can withstand the test of time and climate change effects.

Future of Indian Infrastructure: With the push for stronger, more durable infrastructure, the Ministry’s move to adopt stainless steel for bridge construction marks a shift towards building climate-resilient structures. The use of this material is expected to not only enhance the safety and longevity of bridges but also reduce the financial burden on the government for constant repairs.

Industry Perspective: The stainless steel industry sees this shift as an opportunity to expand its market, particularly in the infrastructure sector. Stakeholders are engaging with the government to demonstrate the benefits of stainless steel, advocating for its increased use not just in bridges but across various infrastructure projects.

Conclusion: In response to the growing threat of climate change and its impact on infrastructure, the Ministry of Road Transport and Highways is prioritizing the use of stainless steel in bridge construction to combat corrosion and ensure the long-term durability of critical transport structures.

Continue Reading

Trending News

SUBSCRIBE TO THE NEWSLETTER

 

Don't miss out on valuable insights and opportunities to connect with like minded professionals.

 


    This will close in 0 seconds