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How Technology Helps Building Materials

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Vishal Kanodia, Managing Director, Kanodia Cement, explains the role technology plays in making the building material segment more sustainable.

In today’s world, sustainability has become a key concern for businesses across all sectors. The building material segment is no exception. With the rapid pace of urbanisation and the increasing demand for housing, commercial complex and infrastructure segments, it is high time for the construction industry to look for alternative, sustainable building materials that can meet the growing demand for construction without degrading the environment.
The good news is that technology has the potential to play a significant role in making the building material segment more sustainable. Let’s explore how different technological elements can help us achieve this goal.

Traditional Technology Elements
Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), Transportation Management Systems (TMS) and Enterprise Reporting have been around for a while and are widely used in the building material industry. These technologies help in streamlining operations, improving customer engagement, better feedback from the last mile customers and providing real-time visibility into business processes, which ultimately augment customer satisfaction.
Industry 3.0, which refers to the third wave of the industrial revolution that started in the 1960s, brought about the automation of production processes. It enabled the industry to produce goods at scale, reducing production costs and increasing efficiency. While Industry 3.0 technologies are still prevalent, it is time for the building material segment to embrace newer technologies that can help them become more cost effective and sustainable.

Green Building and Sustainability
The use of alternative sustainable building materials is one way to make the industry more sustainable. Technologies such as modular building design and precast construction can help in the faster construction of buildings while reducing the wastage of materials. The use of renewable energy, such as solar panels, can reduce the dependence on non-renewable sources of energy.
Carbon credits, wastewater treatment and reuse of water and material reuse are some other sustainability initiatives that can be taken up by the building material industry.

Digital Disruption
Digital commerce, big data analytics, artificial intelligence (AI) and machine learning are some of the newer technologies that can disrupt the building material industry. They can help in the optimisation of production processes, reduce energy and water consumption and enable the industry to produce goods at scale with minimal human intervention.
Industry 4.0, which is the fourth wave of the industrial revolution, refers to the integration of technologies such as AI, machine learning and the Internet of Things (IoT) to create smart factories. These factories can operate with minimal human intervention and can optimise production processes based on real-time data.

Smart Supply Chain
A smart supply chain can enable the building material industry to optimise logistics and reduce the wastage of materials. Technologies such as autonomous mobile robots (AMR), indoor drones, and visual AI can help in the automation of material handling and warehouse operations. IoT-based asset tracking can provide real-time visibility into the location of materials, enabling better inventory management.
Smart last-mile logistics can enable the industry to enhance the transportation of goods to their final destination. Technologies such as vehicle telemetry, geo-fencing, and drones can help in the optimisation of last-mile delivery.

What Lies Ahead
The building material industry is at a crossroads. The industry needs to embrace newer, sustainable technologies that can enable it to produce goods at scale without degrading the environment.
With the help of technologies such as AI,machine learning, and the IoT, the industry can optimise production processes, reduce energy and water consumption and automated material handling and warehouse operations. The role of technology in the sustainability of building materials is significant and has played a crucial role in reducing the environmental impact of the building materials segment.
However, it is not just about using technology to scale up the supply chain and manufacturing processes. The use of technology in the sustainability of building materials also involves the use of green building materials and renewable energy sources.
Alternative sustainable building materials such as bamboo, straw bale and recycled plastic are becoming more popular due to their low environmental impact and their ability to reduce energy consumption. Moreover, the use of renewable energy sources such as solar power, wind power, and geothermal energy has become more common, as it helps reduce the reliance on non-renewable energy sources. The use of green building materials, renewable energy sources, carbon credits and digital disruption has helped companies reduce waste, optimise resource usage and lower their carbon footprint, leading to a more sustainable future. As technology continues to evolve, we can expect to see even more innovative solutions that will help the building materials segment become even more sustainable.

ABOUT THE AUTHOR
Vishal Kanodia is the Managing Director of Kanodia Cement. He has a rich experience in the cement manufacturing industry and a leadership flair.

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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