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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

Shiva Cement Merges with JSW Cement

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JSW Cement has announced a scheme of arrangement to merge its listed subsidiary Shiva Cement with itself, creating a single unified cement platform. The boards of both companies have approved the proposal, which will require clearances from stock exchanges, the Securities and Exchange Board of India, the National Company Law Tribunal, Odisha Industrial Infrastructure Development Corporation and other applicable authorities.

The transaction is expected to be completed within 12 to 14 months, subject to the necessary approvals from regulators, shareholders and creditors. Under the scheme, JSW Cement will issue 5 equity shares with a face value of Rs. 10 each for every 41 equity shares with a face value of Rs. 2 each held by Shiva Cement shareholders other than JSW Cement.

The company said the merger would consolidate financial, managerial, technical, distribution and marketing resources while reducing administrative duplication and compliance requirements. It would also provide greater funding flexibility, potentially lower financing costs and eliminate inter-company guarantees.

The consolidation is expected to strengthen backward integration by enabling JSW Cement to use Shiva Cement’s clinker manufacturing facility. This would reduce dependence on external clinker procurement and improve supply-chain efficiency. Public shareholders of Shiva Cement would receive direct ownership in JSW Cement, which has a broader institutional investor base and a more liquid listed presence.

JSW Cement acquired a controlling stake in Shiva Cement through transactions that began in January 2017. Shiva Cement operates a clinker facility in Odisha, near the borders of Odisha, Chhattisgarh and Jharkhand, and commissioned a 1 mtpa cement grinding unit at Sambalpur in FY26 through a commercial arrangement with Bhushan Power and Steel.

JSW Cement has 24.10 mtpa of cement grinding capacity and 9.74 mtpa of clinkerisation capacity. Its Indian operations comprise nine plants, including two integrated units, one clinker unit and six grinding units. The proposed merger is intended to simplify the corporate structure and align the financial statements of the two companies.

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Concrete

UltraTech’s Kukurdih unit runs fully on green energy

The Chhattisgarh plant has met 100 per cent of its electricity needs through green energy since April 2026.

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UltraTech Cement’s Kukurdih Cement Works in Chhattisgarh has met 100 per cent of its electricity requirement through green energy every month since April 2026. Commissioned in 2024, the integrated cement manufacturing unit has an installed grey cement capacity of 3.3 million tonnes per annum.
The plant meets its electricity requirement through a combination of renewable power sourcing and Waste Heat Recovery Systems (WHRS). UltraTech said the combination enables the unit to meet its power needs through green energy while maintaining operational reliability.
Since April 2026, nearly a third of UltraTech’s 76 manufacturing units in India have maintained green energy utilisation above 50 per cent of their electricity requirement. Five units, including Kukurdih, have exceeded 95 per cent green energy utilisation.
The company is also progressively deploying Battery Energy Storage Systems (BESS) across its manufacturing network to support greater integration of renewable energy. UltraTech said it has not invested in new captive thermal power capacity at its integrated units, including greenfield projects and brownfield expansions, for more than 10 years.
As of Q1FY27, UltraTech’s captive green energy capacity stood at 1,897 MW, comprising 1,463 MW of renewable capacity from solar, wind and hybrid sources, and 434 MW of WHRS capacity.
Under its RE100 commitment, the company aims to increase the share of green power in its total power mix to 85 per cent by 2030 and 100 per cent by 2050.

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Concrete

Cement Prices Rise Rs. 7 per Bag in September; October Hikes Expected

Cement prices rose in September as companies weighed further increases.

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Cement companies may seek to raise prices by Rs. 5 to Rs. 20 per bag across most markets in October, although the ability to sustain the increases will depend on demand recovery and dealer acceptance, according to a report by Centrum Broking. The outlook follows a pickup in pricing momentum during September after largely stable prices in July and August.

The all-India average trade price increased by Rs. 7 per bag month-on-month to Rs. 356 in September. Centrum Broking’s channel checks indicated gains across both trade and non-trade segments, with non-trade prices recording sharper increases in most markets. However, higher company billing rates were not fully passed on to customers in several regions because dealers continued selling at earlier prices to meet quarter-end volume targets.

The brokerage said demand weakness in Q2FY27 was less pronounced than the usual seasonal trend, with construction activity improving in several markets towards the end of the quarter. Demand remained range-bound across several markets in July and August, while September produced mixed regional trends. Higher rainfall affected activity in some areas, whereas lower rainfall supported construction work elsewhere.

South India recorded the largest price increase in September, at Rs. 11 per bag, followed by West India at Rs. 9. Central, East and North India each reported increases of Rs. 5 per bag. Despite the September recovery, the average all-India trade price for Q2FY27 stood at Rs. 351 per bag, down Rs. 1 sequentially, as weaker pricing in July and August offset the later gains.

Centrum Broking said the success of any October increases would depend on the pace of demand recovery and dealers’ willingness to accept higher prices. Fuel prices have also risen sharply in recent weeks, making the implementation and sustainability of price increases a key factor for the cement industry’s pricing outlook.

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