Sushrut Pant, Head of Marketing, Shree Cement, discusses the changing trends in the positioning of cement due to its exponentially rising importance in the nation building.
A towering skyscraper pierces Mumbai’s skyline; its foundation rooted in cement chosen for one reason: durability. Cement has always been the backbone of infrastructure development, but for too long, it’s been treated as a basic commodity—bought and sold on price alone. But that’s changing.
As India’s infrastructure and housing sectors surge, the shift toward premiumisation—building branded, high-value products—is becoming key to sustainable growth. Today, the cement industry is not just about price. It’s about delivering quality, building trust, standing out in a crowded market, and creating value that lasts.
In FY25, India’s cement industry had an installed capacity of 668 million tonnes, with production close to 470 million tonnes. Demand is set to climb to 450.78 million tonnes by FY27, driven by a 2025-26 infrastructure budget of over `11 lakh crore. With over 210 large cement plants in operation, price wars have squeezed margins. Premiumisation offers a way out. In 2024, premium cement products—priced 10 per cent to 15 per cent higher than standard grades—saw a 25 per cent demand spike in urban markets. Stakeholders across the value chain—from contractors and developers to homeowners—are choosing reliability in projects where failure isn’t an option.
So, what does premiumisation look like? Premiumisation is a combination of high performance, value addition and emotional rewards. It’s high-strength cement for skyscrapers, rapid-setting mixes for urgent builds, and green blends cutting CO2 emissions by up to 30 per cent. These products are developed to meet specific needs, backed by rigorous testing and certifications. A 2024 study, for example, highlighted the consistent performance of premium cements used in mega projects like the Mumbai-Ahmedabad Bullet Train Corridor, where 20,000 cubic meters were consumed daily—helping reduce rework costs by 12 per cent.
This reliability builds trust, turning one-time buyers into loyal customers. At the core of this transformation is branding. A bag of cement is no longer just a product—it’s a promise. As India’s real estate market heads toward a `112 lakh crore (US$1.3 trillion) valuation by FY34, strong brand identity will be a key differentiator. Marketing plays a vital role—telling stories on how a branded cement is able to realise the dream of a small-town Independent Home Builder (IHB). When campaigns spotlight a cement’s role in metro lines or sustainable housing, they create emotional resonance, instil confidence and trust. Customers begin to see the brand as a partner, not just a supplier.
Sustainability is another major driver. With India targeting net-zero emissions by 2070, the cement industry faces pressure to reduce its environmental footprint. In 2024, green cement adoption grew 15 per cent in urban areas, led by blended products using industrial by-products. These cements could save up to 300 kg of CO2 per tonne compared to traditional mixes. Communicating these benefits—using real data and practical examples—strengthens credibility with eco-conscious consumers, from architects to policymakers.
One more important aspect in premiumisation is about solving consumers’ problems and offering higher order value adds beyond the basic benefits. For instance, seepage is a big unsolved problem for any home owner and water-repellent segment is the most premium and fastest growing cement segment. Slag cement is another example where it commands a higher pricing power due to added benefit of providing a brighter finish.
Premiumisation, however, doesn’t come easy. It demands sustained investment in research, stringent quality control, and ongoing customer education. But the rewards—higher margins, stronger brand loyalty, and a competitive edge—are worth it. In 2025, with the cement industry anticipating 8 per cent sales growth, those who position cement as a branded, value-driven product will lead the way. They are not just selling cement—they’re building trust, shaping progress, and driving sustainable growth in a market ready for change.
There was a time when cement was viewed strictly as a commodity—sold in bulk, priced competitively and chosen mainly by institutional buyers focused on cost. Branding, in this environment, had limited space to flourish. But over the past decade, the sector has seen a quiet transformation. Cement is no longer just a grey powder sold by the bag. It’s becoming a branded product that consumers recognise, trust, and choose deliberately.
What’s behind this shift? A key factor is the rise of individual home builders and retail consumers. Unlike bulk buyers, these customers are personally invested in their decisions. They ask not just how much, but why this brand. They look for quality, consistency, service reliability, and increasingly, sustainability.
In response, marketing strategies have evolved. The focus has moved beyond pricing or distribution to understanding the end consumer—where they live, what they value, and how they engage. This has driven integrated media strategies that blend traditional channels with digital outreach, on-ground activations, and personalised content experiences. Today, messaging is crafted not just to inform, but to connect.
An emotional hook often tips the scale. Recent industry campaigns have leaned into cultural cues, celebrity associations and values like trust and resilience to build brand recall. Such branding creates affinity—transforming what was once a functional purchase into a considered choice.
Technology is also playing a transformative role in how cement is produced, marketed, and delivered. From advanced analytics and AI-based modelling to digital tracking and real-time logistics, companies are ensuring quality, improving efficiency, and enhancing customer experience. Brands that lead in these areas are setting benchmarks—earning both trust and a stronger reputation.
Ultimately, the journey from commodity to brand in cement is more than a marketing story—it’s a structural evolution. It reflects the changing landscape of construction and housing, where every material is a choice that signals quality, intent, and responsibility. Cement, once selected solely for its price, is now judged by what it stands for. And in that lies both the challenge and the opportunity for every player in the industry.
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