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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

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

HDFC Securities warns monsoon slowdown and higher fuel costs

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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.

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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

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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.

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Concrete

Nuvoco Inaugurates Limla Cement Plant in Surat

Acquisition boosts Western India cement capacity

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Nuvoco Vistas Corporation Limited inaugurated the Limla Cement Plant in Surat, Gujarat, marking a key milestone in its acquisition and revival of Vadraj Cement Limited.

The company completed the acquisition of Vadraj, which had been undergoing a corporate insolvency resolution process, by discharging a consideration of Rs 18 billion (bn) in June 2025. Vadraj’s asset base includes a clinker unit at Kutch and a grinding unit at Limla, along with high quality captive limestone reserves and a captive jetty at Kutch that enhance logistics efficiency.

Since taking over the assets, Nuvoco has undertaken revival, refurbishment and expansion across both sites, culminating in the opening of the Limla facility. The grinding unit at Limla achieved project completion ahead of schedule with the commissioning of two million tonnes per annum (mn t per annum) grinding capacity, further expanding the company’s scale and market reach.

Upon full operationalisation of the Vadraj assets, nearly 40 per cent of Nuvoco’s total cement capacity will be accounted for by plants in the North and West regions, supporting improved access to high growth markets. The plant is expected to support a phased volume ramp up in Gujarat and to serve adjoining markets in western Maharashtra while releasing northern capacities for other markets.

It will produce a complete portfolio of cement products including Ordinary Portland Cement, Portland Slag Cement, Portland Pozzolana Cement and Portland Composite Cement, and will offer the Duraguard range including the premium Duraguard Microfibre. The transaction is set to create synergies with Nuvoco’s existing manufacturing facilities at Nimbol and Chittorgarh, strengthening logistics optimisation and market access across key regions.

Nuvoco reported total income of Rs 113.62 billion (bn) in FY 2025-26 and stated it is on track to consolidate total cement capacity to 35 million tonnes per annum (mn t per annum) by FY2028. The company operates across cement, ready-mix concrete and modern building materials segments and highlighted a pan-India ready-mix presence alongside contributions to major infrastructure projects. Corporate communications contact details were provided by the company.

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