Concrete

Our backward integration strategy is a key differentiator

Published

2 years ago

December 24, 2024

Roshna

Mayank Gugalia, Director, Mahakoshal Refractories, talks about their specialisation in alumina refractories with a strong focus on sustainability with their commitment to quality, innovation in AFR solutions, and backward integration set them apart in the industry.

Could you share the sustainability initiatives undertaken by your company and how they contribute to environmental preservation?
Our company specialises in manufacturing alumina refractories and has grown to become one of the largest producers in India. Our product range includes alumina bricks, castables, high alumina cements, and synthetic aggregates.
Regarding sustainability, we recently installed a 1.5-megawatt solar power plant, which meets a significant portion of our energy requirements. Over the past three years, we have planted approximately 1,500 trees, reflecting our commitment to afforestation. Additionally, we have obtained the EcoWater certification, a notable recognition in sustainability and ESG. These efforts align with the government’s emphasis on green initiatives and underscore our dedication to environmental stewardship.

How does your brand distinguish itself from competitors, and what key attributes of your company would you like to highlight?
Our company focuses exclusively on alumina refractories, setting us apart from competitors. While others may diversify into basic refractories or flow controls, we prioritise becoming the best in the alumina segment. In terms of volume, we are among India’s largest manufacturers, and our quality standards have earned us a leading position domestically and in export markets, including the Middle East and Europe. Our commitment to sustainability further strengthens our reputation as a trusted and environmentally responsible manufacturer.

Cement is a significant consumer of refractories. Could you explain your association with the cement industry and provide an overview of the products you supply?
Our marketing portfolio is highly diversified, serving industries such as steel, aluminum, cement, and exports. For cement plants, we supply alumina bricks for rotary kilns, preheaters, and coolers, as well as a variety of castables. Our range includes gunning castables, tip casting products, and specialised solutions for critical applications like burner pipes. This extensive product portfolio positions us as a reliable partner for the cement industry.

How does your product portfolio align with the evolving needs of the cement industry, especially in terms of alternative fuels and raw materials (AFR)?
The specifications of AFR vary between cement companies due to its nature as a waste product. To meet these diverse needs, we conduct thorough R&D. We collect AFR samples, analyse their chemical properties in our laboratory, and design castables tailored to specific applications. Recently, we developed and implemented products in cement plants that have shown excellent performance and durability. By focusing on factors such as alkali content and chemical reactions, we ensure our products are optimised for AFR use.

Could you elaborate on the backward integration practices you’ve adopted and how they benefit cement plants?
Our backward integration strategy is a key differentiator. We own bauxite mines, ensuring a consistent supply of high-quality raw materials. We also process raw materials in-house using rotary kilns to produce high alumina cements and synthetic aggregates. These intermediate products are used in our refractory castables and are also sold to other refractory companies in India. This approach allows us to maintain strict quality control, improve product consistency, and enhance self-sustainability.

What is your perspective on the net-zero emissions mission and decarbonisation? How does your company align with these goals?
The net-zero mission is crucial for all industries, including medium-scale enterprises. While some perceive decarbonisation as costly, advancements such as affordable solar power installation have made renewable energy more accessible. Small and medium enterprises can also contribute by adopting eco-friendly fuels, planting trees, and implementing robust pollution control measures to manage dust and emissions. By reducing carbon footprints through these practices, industries can collectively move closer to achieving net-zero goals.

– Kanika Mathur

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Concrete

Lokesh Lays Stone For Rs 31 Billion Cement Unit In Kadapa

Line-2 expansion to make Kadapa a major cement hub

Published

6 days ago

July 20, 2026

admin

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.

Concrete

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

HDFC Securities warns monsoon slowdown and higher fuel costs

Published

1 week ago

July 17, 2026

admin

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.

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

Published

1 week ago

July 16, 2026

admin

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.