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Establishing New Benchmarks in Plant Construction

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Anupam Agrawal, Senior Executive Director, Dalmia Cement; and Shailesh Agarwal, Partner, Consulting (Infrastructure Practice) EY India, present a case study of the 3.5 mtpa Dalmia Bharat Cement plant in Karnataka, demonstrating how structured planning enabled the project to achieve sustained high-volume concreting.

The ongoing 3.5 MTPA cement plant project of Dalmia Bharat Cement in Karnataka, India, has achieved a historic milestone in the Indian cement construction sector by sustaining concrete casting volumes exceeding 10,000 m3 for six consecutive months. This unprecedented achievement highlights exceptional engineering execution, disciplined project management, and effective teamwork on site.
Despite external challenges such as festive-season manpower shortages and labour migration during state elections, the project maintained consistent productivity through proactive workforce management, strong leadership presence, and resilient supply chain planning. The sustained high-performance execution enabled adherence to tight project timelines and established a new industry benchmark for large-scale industrial concreting in India.
The project represents a major cement capacity expansion, involving extensive reinforced cement concrete (RCC) works executed under stringent timeline constraints. Given the scale of the project and its strong interdependency with mechanical erection activities, the ability to sustain continuous high-volume concrete placement was identified as a critical success factor.
Traditionally, achieving concrete placement volumes exceeding 10,000 m3 in a single month is considered exceptional within the cement construction industry. Sustaining this level of output consistently over a six-month period, particularly during festival-intensive months such as October, was widely regarded as improbable. Despite these constraints, the project successfully maintained uninterrupted high-volume concreting, thereby challenging conventional productivity benchmarks.
To achieve this objective, the Dalmia Bharat project team established a robust project monitoring and control system through an internal cross-functional team, supported by a Project Management Office (PMO) framework provided by EY. This framework encompassed integrated planning and scheduling, cost control, quality assurance, procurement coordination, and systematic risk management. The structured approach ensured optimal resource utilisation, adherence to aggressive timelines, and compliance with technical and quality requirements across all work fronts.
To mitigate execution risks associated with reliance on a single contractor, the project adopted a multi-vendor execution strategy, engaging four contractors for major concrete works, with M/s Goel Construction executing the largest share of the concreting volume. This approach enhanced execution flexibility, improved productivity, and reduced schedule risk.

Key challenges
Project execution was constrained by a combination of workforce, supply chain, operational, and schedule-related challenges. The primary constraints encountered during the execution phase are summarised as follows:
• Manpower Availability (R1 & R2): The festival season in October resulted in reduced workforce availability, while concurrent state elections led to significant migration of both skilled and unskilled labour, impacting site productivity.
• Supply Chain Continuity (R3): The project was highly dependent on the uninterrupted supply of critical materials, including aggregates, reinforcement steel, formwork systems, and construction equipment. Any disruption posed a direct risk to planned concreting cycles.
• Equipment Reliability (R4): Sustained high-volume concreting operations increased the likelihood of equipment fatigue and breakdowns, necessitating enhanced maintenance planning and standby arrangements.
• Schedule Constraints (R5): The project was governed by aggressive timelines with minimal float. Any delay in civil works had the potential to adversely affect downstream mechanical erection and commissioning activities, leaving little tolerance for schedule slippage.

Risk matrix and rating

Risk Description Category Risk Level

1 Festive season manpower shortage Workforce High
2 Labour migration due to state elections Workforce High
3 Disruption in material and equipment supply Supply Chain Medium
4 Equipment breakdown due to continuous operations Operations Medium
5 Tight timelines with minimal schedule float Schedule Critical

Likelihood High R1 & R2 R5
Medium R3 & R4
Low
Impact-> Low Medium High

Strategy and execution approach
A. ‘All Boots on Ground’ leadership model
A defining element of the project execution strategy was the adoption of the ‘All Boots on Ground’ leadership model, which emphasised continuous senior leadership presence at the project site. This approach enabled real-time decision-making, accelerated issue resolution, and strong alignment across engineering, supervision, and contractor teams. The close on-site leadership engagement ensured that planning objectives were effectively translated into consistent field-level execution and performance.
B. Workforce retention and motivation strategy
To mitigate workforce availability risks arising from festive periods and state elections, a targeted manpower retention and motivation programme titled ‘Kaun Banega Lakhpati’ was implemented. The initiative successfully achieved workforce retention levels of approximately 85 per cent to 90 per cent during high-risk periods, including the month of October. The program contributed to sustained productivity, reduced labour attrition, and enhanced workforce morale and commitment during peak execution phases.
C. Planning and execution framework
Project execution was driven through a structured planning framework comprising monthly micro-level planning, detailed activity breakdowns and critical path method (CPM) analysis. Weekly review meetings facilitated early identification of execution bottlenecks and enabled timely corrective actions. In addition, shift-wise productivity planning ensured optimal utilisation of manpower and construction equipment. Advance availability of approved construction drawings further supported uninterrupted execution across multiple work fronts.
D. Supply chain and logistics management
A proactive supply chain and logistics management strategy was adopted to support sustained high-volume concreting operations. This included advance material forecasting, close coordination with contractors and suppliers, and round-the-clock logistics monitoring. As a result, uninterrupted availability of key construction materials was maintained, and no material-related work stoppages were recorded during the six-month period of high-volume concrete placement.
E. Equipment reliability and maintenance management
To address equipment reliability risks associated with continuous high-intensity operations, comprehensive preventive maintenance plans were implemented for batching plants, concrete pumps, transit mixers and formwork systems. Standby equipment arrangements and rapid-response maintenance teams were deployed to minimise downtime. These measures ensured zero critical equipment failures during peak concreting activities, thereby supporting uninterrupted execution.

Results and outcomes
The integrated application of disciplined planning practices, proactive manpower optimisation strategies, and leadership-driven execution resulted in consistent, measurable, and repeatable performance outcomes throughout the project execution phase.

Key project performance outcomes
• Sustained high-volume concreting: The project successfully achieved concrete placement volumes exceeding 10,000 m³ per month for six consecutive months, demonstrating sustained execution capability under high-intensity operational conditions.
• Festive-period performance: Despite traditionally reduced workforce availability during festive periods, the project maintained productivity during the month of October, achieving concrete volumes in excess of 10,000 m³, thereby surpassing conventional industry expectations.
• Workforce stability: Manpower retention levels of approximately 85 per cent to 90 per cent were maintained during identified high-risk periods, reflecting the effectiveness of workforce motivation and retention strategies.
• Accelerated clinker silo construction: A notable engineering achievement during this phase was the construction of the clinker silo within 12 days (achieved productivity of 2.5 mtr/day), significantly outperforming the prevailing industry benchmark of approximately 20 days (typical productivity of 1.5 mtr/ day). This accelerated execution underscores the effectiveness of integrated planning, synchronised resource deployment, and disciplined on-site execution.
• Equipment reliability: The implementation of preventive maintenance and standby arrangements resulted in zero critical equipment downtime, even during peak concreting operations.
• Industry benchmark establishment: Collectively, these outcomes established a first-of-its-kind benchmark in the Indian cement construction sector for sustained high-volume reinforced cement concrete execution over an extended duration.

Conclusion
The sustained success of the project reinforces a critical insight for large-scale industrial construction: consistent performance is achieved through disciplined systems, visible leadership engagement, and people-centric execution, rather than short-term acceleration measures. The integration of structured planning processes, empowered on-site decision-making, and proactive workforce engagement proved essential in mitigating external disruptions while maintaining execution momentum.
The achievement of sustained concrete placement volumes exceeding 10,000 m3 per month over a continuous six-month period at Project demonstrates the effectiveness of a structured project management framework combined with disciplined execution and leadership-driven site management.
This performance was realised despite significant challenges, including festive-season workforce constraints, labour migration during state elections, and the operational complexities associated with high-intensity construction activities.

About the author:
Anupam Agrawal brings around 34 years of experience in cement and heavy industry. At Dalmia Bharat, he is part of the senior executive bench steering capex transformation and growth across a pan-India footprint, working alongside leadership on efficiency,
expansion and governance.
 
Shailesh Agarwal works on institutionalising a resilient programme governance layer that supports client organisations in overcoming challenges and achieving business cases within defined budget, including cost and time.

Co- Author (contributions): Nikhil Dixit, Director -Consulting, EY India

Concrete

Centre Defers Clearance for Limestone Mine Near Bustard Habitat

Panel seeks revised mining plan and safeguards for pipelines and wildlife

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The Centre has deferred environmental clearance for a proposed limestone mine near a Great Indian Bustard habitat in Ramgarh, Rajasthan’s Jaisalmer district. The critically endangered species has an estimated wild population of about 130 in India.

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Concrete

Telangana to Supply Subsidised Cement for Indiramma Houses

Poor families allotted Indiramma houses to receive cement at Rs. 230 per bag

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The Telangana government will supply cement at a subsidised price of Rs. 230 per 50-kg bag to poor and low-income families allotted Indiramma houses. The prevailing market price is between Rs. 310 and Rs. 320 per bag, the Assembly was informed on Thursday.

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Cement Demand Strong As Prices Remain Stable

Volumes rise amid steady trade pricing and higher fuel costs

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Channel checks show cement demand remained healthy with volume growth estimated at six to seven per cent in July and August 2026. Trade prices were broadly stable while non-trade prices were volatile in the East, and attempted hikes were rolled back amid higher competition. Average fuel costs rose in August by five to nine per cent, lifting spot petcoke and coal prices.

All-India trade price remained flat month on month in August as increased rake supplies and competition offset early increases. Monsoon related demand softness limited sustained hikes and dealers indicated further attempts would depend on demand trends. Combined July and August volumes were estimated at six to seven per cent, supported by infrastructure spending while retail housing remained weather sensitive.

In the South, a Rs20 a bag hike in August did not hold and prices stayed flat month on month, while dealers planned Rs25 to Rs30 a bag from fifth September 2026 but with uncertain sustainability. In the East, trade prices were unchanged and non-trade prices corrected by Rs15 to Rs20 a bag amid weak construction in West Bengal, Jharkhand and Odisha.

The West remained most resilient on pricing and demand despite attempted hikes of Rs10 to Rs15 a bag, and Gujarat saw relatively better volumes in August. North and Central markets kept prices range bound as players focused on ramping up utilisation of new capacity, with schemes of up to Rs2 to Rs3 a bag used to meet month-end targets. Overall construction activity improved as the monsoon eased, aiding a pickup in several states.

Fuel cost pressures persisted, with South African coal at USD114 a t and petcoke around USD146 to USD147 a t in August, while spot imported petcoke and coal were higher. Imported coal consumption cost stood at Rs2.07 per Kcal and petcoke at USD2.11 per Kcal. Analysts estimate the all-India trade spread to decline by Rs90 to Rs100 a t quarter on quarter, weighing on near-term profitability and they prefer UltraTech Cement (UTCEM), JK Cement (JKCE) and Grasim Industries (GRASIM).

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