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Cement Firms Target Bulk Buyers

Cement firms shift focus to bulk buyers.

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Cement companies in India are increasingly targeting bulk buyers, such as infrastructure projects and real estate developers, as they face challenges related to pricing pressures, shrinking margins, and rising input costs. Amidst this difficult market environment, focusing on bulk sales helps mitigate volatility in the retail segment while ensuring steady revenue streams.

Key Points:

Pricing and Margin Pressures: The cement industry is currently grappling with higher production costs due to increased fuel and raw material prices. This, coupled with intense competition, has resulted in a squeeze on profit margins. Cement firms are finding it hard to pass on these rising costs to consumers, particularly in the retail segment, which remains sensitive to price hikes.

Shift Toward Bulk Buyers: To counter these challenges, companies are increasingly shifting their attention to bulk buyers, which include large infrastructure projects, real estate developers, and government initiatives. Bulk buyers offer stable demand and better pricing terms, helping companies manage their financial health more efficiently. Projects like roads, highways, and affordable housing are expected to drive substantial cement demand in the coming years.

Steady Demand from Infrastructure Projects: Government-led infrastructure initiatives, such as PM Gati Shakti, Smart Cities Mission, and affordable housing schemes, are fueling cement demand. Cement firms see these projects as key opportunities to stabilize revenues, with bulk sales providing them with assured orders over long periods.

Diversification of Sales Strategy: Companies are rethinking their sales strategies by strengthening relationships with contractors, developers, and government agencies. This approach helps cement companies secure long-term contracts, reduce market volatility, and counter the uncertainties of fluctuating retail demand.

Investment in Distribution Networks: To better serve bulk buyers, many cement companies are investing in expanding and upgrading their distribution infrastructure. This includes improving storage facilities, logistics, and transportation networks to ensure timely and cost-effective delivery of bulk cement.

Sustainability and Efficiency: Companies are also focusing on sustainability initiatives, improving energy efficiency, and cutting carbon emissions. This aligns with the global trend toward greener construction practices, which is becoming increasingly important to bulk buyers, especially in large infrastructure projects.

As the cement industry adapts to evolving market conditions, the focus on bulk buyers offers a viable path forward for maintaining profitability amidst growing operational challenges.

Concrete

Star Cement launches ‘Star Smart Building Solutions’

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Star Cement has launched ‘Star Smart Building Solutions,’ a new initiative aimed at promoting sustainable construction practices, as per a recent news report. This venture introduces a range of eco-friendly products, including tile adhesives, tile cleaners and grouts, designed to enhance durability and reduce environmental impact. The company plans to expand this portfolio with additional value-added products in the near future. By focusing on sustainable materials and innovative building solutions, Star Cement aims to contribute to environmentally responsible construction and meet the evolving needs of modern infrastructure development.

Image source:https://www.starcement.co.in/

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Concrete

Nuvoco Vistas reports record quarterly EBITDA

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Nuvoco Vistas reported its highest-ever quarterly consolidated EBITDA of Rs.556 crore in Q4 FY25, with annual EBITDA at Rs.1,391 crore. Cement sales reached 19.4 MMT in FY25, with Q4 contributing 5.7 MMT. Revenue rose 4 per cent YoY to Rs.3,042 crore in Q4. Net debt reduced by Rs.390 crore to Rs.3,640 crore. The company received NCLT approval for acquiring Vadraj Cement, targeting 31 MMTPA capacity by FY27. Key marketing initiatives, expanding RMX and MBM businesses, and a focus on sustainability (457 kg CO2/tonne) drove performance. Nuvoco remains focused on premiumisation, operational efficiency, and market expansion.

Image source:nuvoco.com

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Concrete

UltraTech Cement increases capacity by 1.4Mt/yr

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UltraTech Cement has expanded its production capacity by 1.4 million tonnes per annum (Mt/yr) through a combination of debottlenecking efforts and operational efficiency upgrades across several of its plants. The enhancements include an addition of 0.6Mt/yr in grinding capacity at the Nagpur facility in Maharashtra and a combined 0.8Mt/yr at the Panipat and Jhajjar units in Haryana. With these upgrades, the company’s total domestic grey cement capacity has risen to 184.8Mt/yr, while its global capacity now stands at 190.2Mt/yr.

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