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Strong branding can create customer loyalty

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Meghna Bhimrajka, Independent Marketing Consultant, speaks about branding being essential to the cement industry for differentiation and customer loyalty, despite the challenge of commoditisation.

How critical is branding in the highly competitive cement industry, and what unique challenges does it present?
Branding in the cement industry is crucial because it helps differentiate products in a market where the core product is largely commoditised. Strong branding can create customer loyalty, justify premium pricing and enhance market perception. The unique challenges in the cement industry can include overcoming the perception of cement as a low-involvement product, communicating technical superiority and sustainability efforts and addressing the diverse needs of both B2B and B2C segments.

What specific branding strategies do you recommend for cement manufacturers to differentiate them from competitors?
To stand out, cement manufacturers can focus on the following:

  • Visual identity: A brand’s look and feel make a lasting impression on customers. Associating the brand with colours like yellow or green can reinforce that impression.
  • Appropriate associations: Align with brand with ambassadors that embody the brand’s value to reinform messaging and value proposition
  • Localise the content: Use of local languages rather than Hindi/English can help customers relate to the brand better
  • Customer engagement: Brands can boost customer engagement through CSR activities, on-ground events, and building communities.
  • Emotional Branding: Connect with customers on an emotional level by associating the brand with reliability, strength and trust.

How can cement brands effectively communicate their value proposition to both B2B and B2C segments?
For B2B segments, emphasise the technical benefits, cost-efficiency and reliability of the products. Use case studies, whitepapers and technical datasheets to communicate these points.
For B2C segments, focus on ease of use, aesthetic appeal and the brand’s reputation for quality and safety. Use marketing materials like brochures, social media content and testimonials from satisfied customers to highlight these aspects.

Cite examples of successful cement branding initiatives that have significantly impacted market perception and sales.
One notable example is the ‘Duracem’ campaign by UltraTech Cement. By emphasising the durability and strength of their products through a series of impactful advertisements and on-ground activations, UltraTech successfully repositioned itself as the go-to brand for long-lasting construction projects.

How does sustainability factor into the branding of cement products, and what best practices should companies follow to highlight their green initiatives?
Sustainability is increasingly important in the cement industry due to regulatory pressures and growing environmental awareness among consumers. Companies should:

Certifications obtained and display eco-certifications for their products.
Transparency: Provide clear information about their sustainable practices and achievements.
Engagement: Involve stakeholders in sustainability initiatives and share success stories.
Education: Use marketing campaigns to educate customers on the benefits of using sustainable cement products.
Branding: Use brand touchpoints like stores, packaging, website and social media to further promote all sustainable practices undertaken by the brand

In what ways can digital marketing and social media be leveraged to enhance the visibility and reach of a cement brand?
Digital marketing and social media can amplify a cement brand’s visibility by:

Content marketing: Sharing informative and engaging content about product benefits, industry trends, and company initiatives.
SEO and PPC: Optimising websites for search engines and using pay-per-click advertising to drive traffic.
Social media campaigns: Utilising platforms like LinkedIn for B2B marketing and Facebook or Instagram for B2C engagement.
Video marketing: Creating videos that demonstrate product applications, customer testimonials, and behind-the-scenes looks at manufacturing processes.
Email marketing: Sending targeted email campaigns to nurture leads and maintain customer relationships.

What are the key elements of a consistent branding strategy across various product lines and markets in the cement industry?
Consistency in branding involves:

  • Unified visual identity: Maintain a consistent logo, colour scheme and design across all materials.
  • Core message: Create a central brand message that can be adapted to different products and markets.
  • Brand values: Communicate core values, such as innovation, sustainability and reliability, across all platforms and interactions.

How do you measure the effectiveness of branding efforts for a cement company, and which metrics or key performance indicators (KPIs) are most indicative of success?
Effectiveness can be measured through:

  • Brand awareness: Track metrics like social media mentions, website traffic, and search engine ranking.
  • Customer engagement: Monitor social media interactions, email open rates and website engagement metrics.
  • Sales performance: Analyse sales data to see if there’s a correlation with branding initiatives.
  • Customer loyalty: Measure repeat purchase rates and customer satisfaction scores.
  • Market share: Compare market share before and after branding campaigns.
  • Return on investment: Calculate the ROI of branding efforts by comparing the cost of campaigns to the increase in revenue and market presence.

– Kanika Mathur

Concrete

Lokesh Lays Stone For Rs 31 Billion Cement Unit In Kadapa

Line-2 expansion to make Kadapa a major cement hub

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Andhra Pradesh Education and IT Minister Nara Lokesh on Wednesday laid the foundation stone for the Line-2 expansion of Dalmia Bharat Cement at Chinnakomerla village in Mylavaram Mandal in Kadapa district. The project carries an investment of Rs 31 billion (bn) and is slated for completion by the third quarter of the financial year 2028. The expansion is intended to boost industrial growth and employment generation across the Rayalaseema region.

Once commissioned, the Kadapa facility will become Dalmia Bharat’s largest integrated cement manufacturing ecosystem in southern India, creating over 1,000 direct and indirect jobs and opening new business avenues for regional micro, small and medium enterprises and transport operators. Lokesh said the expansion signalled growing corporate confidence in the state and reflected the practical ease of doing business that secured repeat investment.

He placed the project within the government’s wider economic targets and recalled the Yuvagalam padayatra commitment to generate two million (mn) jobs within five years, noting that the state would cultivate talent while industry created opportunities. Lokesh highlighted Andhra Pradesh’s competitive pursuit of major manufacturing accounts, mentioning past successes and a personal initiative to engage global investors when persuading them to anchor expansion in the state.

The plant will leverage Kadapa’s abundant limestone reserves to scale production and sustainability. Clinker capacity is planned to rise from two point five million tonnes per annum (mn tpa) to six point one mn tpa, while overall cement output will increase from three point six mn tpa to nine point six mn tpa. The unit is designed to operate on over eighty per cent renewable energy and deploy waste heat recovery, zero liquid discharge, water recycling and advanced AI systems to optimise efficiency. Industries Minister TG Bharat, BC Welfare Minister S. Savitha and Jammalamadugu MLA C. Adinarayana Reddy attended the ceremony.

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Concrete

Cement Prices to Stay Flat in Q2 FY27 as Costs Squeeze Margins

HDFC Securities warns monsoon slowdown and higher fuel costs

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HDFC Securities has said the cement industry is unlikely to register a sequential increase in prices in Q2 FY27 as monsoon-related demand moderation coincides with rising fuel and packaging costs that will squeeze margins. The brokerage observed that price gains remained modest, with increases of two to three per cent quarter-on-quarter across regions, and noted subdued offtake in May with improvement in June as a delayed monsoon supported construction activity. The brokerage added that modest pricing gains so far have been insufficient to offset the input cost escalation.

The report stated that input cost pressures intensified in Q1 FY27 owing to the West Asia conflict, which pushed up coal and pet coke prices and is expected to keep fuel costs elevated, with a likely peak in Q2 FY27. It assessed that total variable costs, including packing, could rise by around Rs 150 per t quarter-on-quarter and that lower offtake and seasonal operating deleverage could further raise operating expenditure by about Rs 50 per t quarter-on-quarter.

Overall, cement prices were estimated to remain flat in Q2 FY27 as monsoon-led demand weakness offsets limited upside in realisation, and rising fuel costs alongside seasonal deleverage were expected to compress industry margins by over Rs 100 per t quarter-on-quarter to below Rs 880 per t. The brokerage indicated that the combined impact of energy inflation and higher packing expenditure would be the principal drivers of margin contraction in the near term. HDFC Securities projected a recovery in margins in H2 FY27 should the West Asia turmoil subside and energy and packing costs cool off.

The brokerage expressed optimism on long-term demand fundamentals and said improving realisation together with an anticipated cost cool-off should support a margin rebound from H2 FY27 onward, underpinning favourable industry prospects over the medium term. Its outlook rests on monsoon normalisation and a decline in imported fuel prices in the second half of the fiscal year.

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Concrete

Dalmia Bharat Begins Rs 31 Bn Green Cement Unit in Kadapa

New Andhra Pradesh plant to add 9.6 MTPA cement capacity by FY28

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Dalmia Bharat Limited recently laid the foundation stone for its second manufacturing unit at Kadapa in Andhra Pradesh. The company will invest Rs 31 billion in developing the next-generation integrated cement manufacturing facility.
The foundation-laying ceremony was attended by Nara Lokesh, Andhra Pradesh Minister for Information Technology, Electronics and Communications, Real-Time Governance and Human Resources Development, along with Puneet Dalmia, Managing Director and Chief Executive Officer, Dalmia Bharat, senior government officials and company representatives.
Scheduled to be commissioned by the third quarter of FY28, the Kadapa unit will become Dalmia Bharat’s largest integrated manufacturing facility in southern India. It will have a clinker production capacity of 6.1 million tonnes per annum and a cement manufacturing capacity of 9.6 million tonnes per annum.
The facility is designed to produce what the company describes as one of the world’s greenest cements. It is also expected to generate approximately 1,000 direct and indirect employment opportunities while supporting local MSMEs, transporters, contractors and service providers.
Lokesh said the investment reflected Dalmia Bharat’s confidence in Andhra Pradesh and aligned with the state’s objective of promoting sustainable industrialisation, job creation and technology-led economic growth.
Puneet Dalmia said the project represented the company’s long-term vision of developing low-carbon cement manufacturing assets. He added that the facility would establish new benchmarks in operational efficiency and sustainability while supporting India’s infrastructure and environmental goals.
Dalmia Bharat will also expand its regional community development programmes in education, healthcare, skill development and welfare through its DIKSHa and Gram Parivartan initiatives.
The company currently has an installed cement manufacturing capacity of 54.7 million tonnes across 19 manufacturing units in 12 states. It is also the first cement company globally to commit to the RE100, EP100 and EV100 initiatives.

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