Concrete

Cement Firms Target Bulk Buyers

Cement firms shift focus to bulk buyers.

Published

2 years ago

September 13, 2024

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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.

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Concrete

UltraTech Cement FY26 PAT Crosses Rs 80 bn

Company reports record sales, profit and 200 MTPA capacity milestone

Published

2 days ago

April 29, 2026

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UltraTech Cement reported record financial performance for Q4 and FY26, supported by strong volumes, higher profitability and improved cost efficiency. Consolidated net sales for Q4 FY26 rose 12 per cent year-on-year to Rs 254.67 billion, while PBIDT increased 20 per cent to Rs 56.88 billion. PAT, excluding exceptional items, grew 21 per cent to Rs 30.11 billion.

For FY26, consolidated net sales stood at Rs 873.84 billion, up 17 per cent from Rs 749.36 billion in FY25. PBIDT rose 32 per cent to Rs 175.98 billion, while PAT increased 36 per cent to Rs 83.05 billion, crossing the Rs 80 billion mark for the first time.

India grey cement volumes reached 42.41 million tonnes in Q4 FY26, up 9.3 per cent year-on-year, with capacity utilisation at 89 per cent. Full-year India grey cement volumes stood at 145 million tonnes. Energy costs declined 3 per cent, aided by a higher green power mix of 43 per cent in Q4.

The company’s domestic grey cement capacity has crossed 200 MTPA, reaching 200.1 MTPA, while global capacity stands at 205.5 MTPA. UltraTech also recommended a special dividend of Rs 2.40 billion per share value basis equivalent to Rs 240.

Concrete

Towards Mega Batching

Optimised batching can drive overall efficiencies in large projects.

Published

3 days ago

April 28, 2026

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India’s pace of infrastructure development is pushing the construction sector to work at a significantly higher scale than previously. Tight deadlines necessitate eliminating concreting delays, especially in large and mega projects, which, in turn, imply installing the right batching plant and ensuring batching is efficient. CW explores these steps as well as the gaps in India’s batching plant market.

Choose well

Large-scale infrastructure and building projects typically involve concrete consumption exceeding 30,000-50,000 cum per annum or demand continuous, high-volume pours within compressed timelines, according to Rahul R Wadhai, DGM – Quality, Tata Projects.

Considering the daily need for concrete, “large-scale concreting involves pouring more than 1,000–2,000 cum per day while mega projects involve more than 3,000 cum per day,” says Satish R Vachhani, Advanced Concrete & Construction Consultant…

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Concrete

Andhra Offers Discom Licences To Private Firms Outside Power Sector

Policy allows firms over 300 MW to seek distribution licences

Published

4 days ago

April 27, 2026

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The Andhra Pradesh government will allow private firms that require more than 300 megawatt (MW) of power to apply for distribution licences, making the state the first to extend such licences beyond the power sector. The policy targets information technology, pharmaceuticals, steel and data centres and aims to reduce reliance on state utilities as demand rises for artificial intelligence infrastructure.

Approved applicants will be able to procure electricity directly from generators through power purchase agreements, a change officials said will create more competitive tariffs and reduce supply risk. Licence holders will use the Andhra Pradesh Transmission Company (APTRANSCO) network on payment of charges and will not need a separate distribution network initially.

Licences will be granted under the Electricity Act, 2003 framework, with the Central and State electricity regulators retaining authority over terms and approvals. The recent Electricity (Amendment) Bill, 2025 sought to lower entry barriers, enable network sharing and encourage competition, while the state commission will set floor and ceiling tariffs where multiple discoms operate.

Industry players and original equipment manufacturers welcomed the policy, saying competitive supply is vital for large data centre investments. Major projects and partnerships such as those involving Adani and Google, Brookfield and Reliance, and Meta and Sify Technologies are expected to benefit as capacity expands in the state.

Analysts noted India’s data centre capacity is forecast to reach 10 gigawatts (GW) by 2030 and cited International Energy Agency estimates that global data centre electricity consumption could approach 945 terawatt hours by the same year. A one GW data centre needs an equivalent power allocation and one point five times the water, which authorities equated to 150 billion litres (150 bn litres).

Advisers warned that distribution licences will require close regulation and monitoring to prevent misuse and to ensure tariffs and supply obligations are met. Officials said the policy aims to balance investor requirements with regulatory oversight and could serve as a model for other states.