Connect with us

Concrete

Establishing New Benchmarks in Plant Construction

Published

on

Shares

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 Makers’ Margins To Fall Rs 50-75 Per Tonne Amid West Asia Conflict

Crisil Sees Margins Easing Despite Steady Demand

Published

on

By

Shares



Crisil said operating margins of Indian cement manufacturers are expected to decline by Rs 50-75 per tonne (t) this fiscal to Rs 925-950 per t due to higher input costs triggered by the West Asia conflict. The analysis covered 18 cement companies accounting for nearly 90 per cent of India’s domestic cement capacity and noted margins had improved sharply to around Rs 1,000 per t in fiscal 2026.

Crisil noted that the reduction would be driven mainly by higher power and fuel costs, which account for about 30 per cent of total costs, as petcoke and imported coal prices have surged amid geopolitical uncertainties. Freight costs, which account for about a quarter of total costs, are also expected to remain elevated because of higher diesel prices. The impact on profitability is likely to be more pronounced in the first half of the fiscal year before easing commodity prices moderate cost pressures later.

The rating agency said steady domestic demand and strong balance sheets should keep credit profiles stable despite the moderation in margins. Green energy currently accounts for 35-40 per cent of the sector’s total electricity consumption and is expected to partly cushion higher energy costs. Operating cash flows are likely to remain resilient, supported by projected 6-7 per cent growth in cement demand this fiscal.

Crisil highlighted that demand growth will be driven primarily by infrastructure spending, which meets about one-third of sector consumption, and by a nearly 18 per cent higher budgetary allocation for core ministries that should support project execution. Weaker rural housing demand amid pressure on agricultural incomes from a possible below-average monsoon may be offset by improved urban housing demand supported by favourable home-loan rates and a strong pipeline of Pradhan Mantri Awas Yojana-Urban projects. Ongoing capacity additions will keep capital expenditure elevated and may lift net debt to EBITDA to between 1.2 and 1.4 times from around 1.0 time last fiscal, though ratios are expected to remain healthy.

Continue Reading

Concrete

UltraTech Board Approves Rs 50 bn Fundraise Via NCDs

Company to issue half a million debentures for expansion plan

Published

on

By

Shares



UltraTech Cement’s board of directors has approved raising Rs 5,000 crore (Rs 50 bn) through non?convertible debentures issued in rupees.

The finance committee cleared a proposal to issue up to 500,000 fully paid, unsecured, listed, rated, redeemable, rupee?denominated, non?convertible, non?cumulative debentures of Rs 1 lakh each (Rs 0.1 mn each), aggregating to the Rs 5,000 crore programme.

As of June 2026 the firm reported net debt of Rs 15,875 crore (Rs 158.75 bn) and said its capacity expansion projects under execution are backed by capital expenditure of about Rs 17,000 crore (Rs 170 bn) over the next two to two?and?a?half years.

UltraTech spent Rs 9,500 crore (Rs 95 bn) on capital expenditure in financial year 2026 and in April the group crossed 200.1 mn tonnes per annum of domestic grey cement capacity and 205.5 mn tonnes per annum of global capacity.

The chief financial officer indicated the company would take consolidated capacity beyond 242 mn tonnes per annum, with grey cement capacity reaching 212.7 mn tonnes per annum by the end of financial year 2027. He noted the net debt?to?earnings before interest, taxes, depreciation and amortisation ratio stood at 0.87 times as of June 2026 and the company was confident of ending financial year 2027 with the ratio below one time.

In the first quarter of financial year 2026?27 UltraTech’s net profit attributable to owners rose 16.8 per cent year?on?year to Rs 2,599.3 crore (Rs 25.993 bn) and revenue from operations increased 15.9 per cent to Rs 24,648.20 crore (Rs 246.482 bn). The board approval is expected to complement internal cash flows as the company advances its expansion programme.

Continue Reading

Concrete

Lokesh Lays Stone For Rs 31 Billion Cement Unit In Kadapa

Line-2 expansion to make Kadapa a major cement hub

Published

on

By

Shares



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.

Continue Reading

Video Thumbnail
â–¶

    SIGN-UP FOR OUR GENERAL NEWSLETTER


    Trending News

    SUBSCRIBE TO THE NEWSLETTER

     

    Don't miss out on valuable insights and opportunities to connect with like minded professionals.

     


      This will close in 0 seconds