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Consistency in branding is crucial for brand recognition

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Jacob Mathew, Head Communication, Penna Cement Industries, discusses the importance of focussed marketing and branding strategies for cement companies to stay ahead of the competition.

How important do you think branding is for a cement manufacturer in today’s competitive market?
In the cement sector, brand perception is a significant factor in promoting the secondary sales demand, especially in the retail segment. It helps to create a solid and recognisable identity, differentiate the brand from competitors, build customer trust, and establish a positive reputation. A well-developed brand can significantly influence customer preference and purchasing decisions in the present market. All the major cement players have been working towards enhancing the brand recall value, which has, in turn, improved the price.

What specific strategies or initiatives do you undertake to differentiate your cement brand from competitors in terms of branding?
We have been working on our branding efforts in a manner which is more effective and can reach the right target audience. Recognised for our innovative management by Golden Peacock awards, we focus on unique value propositions such as product quality, durability, and customer service to differentiate our cement brand from competitors. We mainly target the spending via below the line activities in targeted markets and engage the customer through tailor-made influencer schemes, such as mason/contractor programmes and channel connect meets. Thus, we ensure continuous visibility and top-of-the-mind recall for Brand Penna.

How do you ensure consistency in branding across different product lines and markets?
Ensuring branding consistency is done by setting up standard brand guidelines. Consistency in branding is crucial for brand recognition and customer trust. We establish clear brand guidelines that outline the brand’s visual identity, tone of voice, and critical messages. All the activities we engage with are within the SOPs to maintain the same procedural flow in case of different markets and across various products.

Have you conducted any market research or surveys to gauge the effectiveness of your cement brand? If so, what were the key findings and how did you respond to them?
We have been engaging in various research activities to understand our brand perception and how well we are connected to the market. The ongoing process is done with the help of primary and secondary research.
Primary research is done with the use of defined questionnaires and to a targeted market conducted by our techno marketing team and the outsourced agencies. The secondary research is done through published research reports, various articles, and industry sources. All the data accumulated via the same is evaluated and comprehended to reconstruct and redefine our target markets, wherein we increase our brand activities. The key findings help us identify areas of improvement, uncover customer needs and fine-tune our marketing strategies.

What role does sustainability play in your cement branding? How do you communicate about your sustainability efforts with your customers?
Sustainability is a critical aspect of our cement branding, along with a focus on ESG. We integrate sustainability into our brand messaging by highlighting our eco-friendly manufacturing processes, use of recycled materials, and energy-efficient operations. In the case of marketing, our concentration has been mainly on increasing blended sales. We have been converting specific markets to only blended cement to initiate sustainability and understand the market’s outlook for future requirements. We have also been working on introducing new products to substitute our
high-grade cement with the launch of Penna Concrete Guard, a green cement. We continue to focus on other continuous product development and integration.

How do you leverage digital platforms and social media to enhance the visibility and reach of your cement brand?
With full accessibility to digital and social media platforms, even in the tier II and III markets, customer engagement activities and communication for brand visibility are taken up. We actively leverage digital platforms and social media to increase the visibility and reach of our cement brand. We maintain an engaging website that provides comprehensive information about our products and sustainability initiatives. We also utilise social media channels to share informative content, engage with customers and address their queries. We have adopted the latest CRM/Visualisation/Optimisation tool technologies to create data centricity to help customers and channel partners. Our channel partners can access these dedicated portals through which brand and related communication happens. Additionally, we invest in targeted digital advertising campaigns to reach specific customer segments and maximise our brand exposure.

Can you share any examples of successful marketing campaigns or initiatives that have significantly boosted your cement brand’s recognition and sales?
One of the successful marketing campaigns has been the launch of Penna Concrete Guard. With the product belonging to our premium product segment, we have increased the counter sales with the help of creating a higher secondary demand for the product. It was done with the help of concentrating our spending on specific retail-based channels to increase sales and maintain the price. With this objective, we have expanded our brand position across various markets.

How do you handle any negative brand perception or reputation challenges that may arise, such as product quality concerns or environmental impact controversies?
Understanding the brand perception across markets and customers in the way of negative or positive outcomes is essential. For all the negative perceptions, we have understood the root cause for the same and to effectively resolve the same at the earliest.
Such as, in the case of product quality concerns, our dedicated technical team gives complete assistance to the sites to understand the cause and find a workable solution as per their requirement.
On the aspect of environmental impact, we have been working towards renewable energy in the form of setting WHRs and our proposed solar power plants.

-Kanika Mathur

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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