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Use of SCMs can be optimised with technology

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RS Kabra, Executive Vice President – Commercial, Wonder Cement, talks about the impact on profitability of the cement business and quality of the end product.

Tell us about the supplementary cementitious materials used by your organisation in manufacturing of cement.
The major cementitious materials used in India are fly ash and blast furnace slag. Fly ash is generated in huge volumes mainly in coal based thermal power plants and is a major hazard to the environment across the country. Slag is generated in the blast furnace of steel manufacturing plants.
We utilise fly ash as supplementary cementitious material in the manufacturing of Portland Pozzolana Cement (PPC) at all of our cement plants, as the plants are situated nearby thermal plants. With the use of fly ash as a SCM, besides contributing to environmentally friendly disposal of fly ash, we are also contributing in reduction of CO2 emission by reducing the use of thermal heat and electricity. This also leads to conserving natural mineral resources of limestone.
Blast furnace slag, another important supplementary cementitious material, is a by-product of the steel making process. The use of slag as a supplementary cementitious material is also well established in manufacturing of cement, specially in cement
plants which are located near steel plants. Our cement plants are not located near any steel plant; thus, at present we do not use slag as a supplementary cementitious material.

What are the key benefits of using supplementary cementitious materials?
The most important benefits of using SCMs in manufacturing of cement is environmentally
friendly disposal of these hazardous materials and a significant reduction in CO2 emission by savings in thermal heat, electricity, and conserving natural resources (limestone).
Substituting a cementitious material in the raw mix for cement manufacturing helps us in conserving natural minerals (limestone), thermal heat (coal), and electricity.

How does the use of supplementary materials increase the profitability of the cement manufacturing for your organisation?
Use of supplementary cementitious materials has a direct impact on the profitability of cement manufacturing companies as replacing natural limestone by SCMs results in reduced requirement of thermal heat, electricity etc.

What is the proportion of supplementary cementitious materials in the production of cement by your organisation?
The Bureau of Indian Standards guidelines permits the use of supplementary cementitious materials up to 35 per cent in PPC cement, accordingly at Wonder Cement we use up to 35 per cent fly ash in the manufacturing of Portland Pozzolana Cement.

Tell us about the quality standards and checks implemented for the final product made using supplementary materials.
In terms of quality, the end product, PPC manufactured by Wonder Cement is always substantially higher than the quality standard prescribed by the Bureau of Indian Standards (BIS) and also higher than most of the other brands of cement available in the market.
This high standard of quality of PPC manufactured by us is possible because of the adoption of the best available technology in the world, including automatic sampling, automatic testing and based on test results, automatic corrective actions, etc. There is absolutely no scope for manual errors or manual dependency in the process of cement manufacturing at WCL.
Tell us about the role of technology in deciding the proportions of SCMs.
Technology plays a very important role in producing quality cement as well as optimum use of SCMs. The processes of automatic sampling, automatic testing and automatic corrective actions play a major role in maintaining the quality of cement as well as optimum use of SCMs.

What are the major challenges you face while using supplementary materials for cement manufacturing?
There is availability of the latest technology, advanced equipment, and continuous use of technology rather than human dependency. Therefore, we do not see any challenge in using supplementary cementitious materials.

How does the use of cement made of supplementary materials impact its carbon footprint?
Fly ash is a supplementary cementitious material and is being used as part replacement of clinker in the raw mix for the production of PPC. Reduction in the use of clinker directly results in the reduction of the use of thermal heat and electricity, required in the manufacturing of clinker. The reduced use of clinker also results in conserving the natural mineral limestone as well as the energy consumed in mining the limestone.

  • 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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