Concrete

The Curious Business of Concrete

Published

7 years ago

January 2, 2019

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If cement was not a global business but a regional business at best, then concrete (or ready mixed concrete, RMC, as one may call the concrete business in some parlances) business can at best be called local, in terms of geographical spread. Some have attempted to use glorified jargons such as "glocal" etc., in respect of cement, to signify its globalisation in the areas of technology and sustainability, but in case of RMC, even such coined adjectives are not applied. Even so, there is sense in looking at the global scenario of ready mixed concrete business, simply because the global trends, and the global learnings, particularly those from Europe and North America provide a window into what may happen in emerging markets like ours, as our construction markets mature, and as our construction practices advance.

But, before we do that, a small introduction of "concrete" itself will be in order. We have always tried to remind our readers that the value chain is cement – concrete- construction, and that if cement is a construction material, then concrete is a construction intermediate. To introduce concrete to the lay person, one may say that the grey powder-like product that we know as cement is but one ingredient, albeit an important one, for making concrete mix. To quote volubly from the report entitled ‘Global Concrete Report 2018, published by Global Cement Magazine:

‘Cement is the main ‘active’ ingredient in a concrete mix, which, when combined with water recrystallises into a hard matrix which solidifies around the other constituents, binding them together. Cement makes up around 15-20 per cent of the weight of the ingredients, which also include water, sand and aggregate. Other ingredients may include special chemicals that delay or accelerate setting, that impart higher early strength or reduced heat of hydration, or which increase the flowability of the unset concrete. Other ingredients may include inert fillers such as ground limestone, or cementitiously-active alternative materials such as ground-granulated blast furnace slag, silica fume, rice husk ash or flyash. Each cubic metre of concrete weighs around 2,400 kg, and includes 350 kg of cement (140 kg/t), 700 kg of sand (280 kg/t), 1,200 kg of aggregate (480 kg/t) and 150 kg of water (60 kg/t).’ This gives us an idea that, clearly, concrete is not just cement, but many other things indeed!

Here are a few conclusions that one can draw from the same report:
Top 25 RMC companies in the world produced 388 million cubic metres of concrete in 2017, which was a mere 10 per cent of the global output. This tells us that the business is local in nature, and is fragmented, if we analyse market-by-market.

There are only two Indian Concrete Businesses figuring in this top 25, namely UltraTech Concrete at seventh, and ACC Concrete at 21st positions. This is an apparent anomaly, given that India is by far the second largest cement producing nation in the world, and this reflects the situation of the Indian construction market – the fact that it is unorganised, non-automated, retail and fragmented.

The list of top 25 has just a few concrete companies, which are not backed by cement manufacturing ventures, and the few that make the grade are in USA, and have aggregate supplies integrated into them. In fact, the top 10 concrete companies are all subsidiaries of bigger cement set-ups. This tells us some things about downstream integration strategies and evolution of cement delivery channels as markets mature.

In India, while the ready-mix concrete market has still a long way to go, we already find instances of cement companies integrating downstream into concrete delivery businesses, as also construction companies finding it useful to integrated upstream into RMC outfits. I am sure that many of these enterprises are discovering the truism that even if the overall value chain is profitable, individual components of that chain may be value- destroying.

Sumit Banerjee Chairman, Editorial Advisory Board

Concrete

Shree Cement Targets Above Industry Volume Growth In FY27

Chairman says firm will favour organic expansion and higher dividends

Published

3 days ago

June 16, 2026

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Shree Cement expects to outpace the industry in the financial year 2026-27 as it pursues organic expansion and pricing discipline following a recent investor conference. The chairman said the company has completed a pricing realignment and recovered volumes lost during that exercise. Management signalled a clear preference for internal investments rather than acquisitions to support growth.

The company reported that capacity additions and demand growth across core markets are expected to underpin stronger volume performance, with a target of growing volumes at around 1.1 times the industry growth rate. Cash levels are likely to decline as capital expenditure progresses and shareholder distributions increase, the chairman indicated. The board has prioritised higher dividends over a buyback as a means of reducing excess cash.

Shree Cement described a market shift towards value and affordability rather than a race to the lowest price, which links demand expansion more closely with pricing. Historically, prices have risen at around three per cent annually over long periods, the company noted, and while prices may increase faster this year because of cost pressures from geopolitical tensions, a material improvement in industry profitability is not anticipated. In North India, the company expects additional capacity to be absorbed as demand grows, estimating a requirement of roughly 10 million (mn) tonne (t) of incremental demand annually.

The next phase of expansion will focus on the north, west, east and northeast regions, with existing projects and planned capacities viewed as sufficient to meet future demand without pursuing acquisitions. Management said it has already regained lost volumes while sustaining higher prices and will continue to monitor regional opportunities, including a possible investment in West Bengal pending clarity on industrial policy. The company, which has a current market capitalisation of Rs 852,948.9 mn, has seen its shares lose more than 20 per cent over the past year.

Concrete

Ramco Cements’ Hard Worker Campaign Wins Seven Awards

Campaign earns honours for direction, editing and cinematography

Published

4 days ago

June 15, 2026

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The Hard Worker campaign by The Ramco Cements has secured seven honours at the Good Ads Matter Awards 2026, adding to its growing list of accolades and reinforcing its standing among the year’s most recognised advertising campaigns.

The awards were presented during the Good Ads Matter Awards Night 2026 held at Mehboob Studios in Mumbai. The campaign received recognition across multiple categories, highlighting excellence in direction, editing, cinematography and storytelling.

Among the honours, the campaign won Silver in the Campaign of the Year – Direction category, while filmmaker Prakash Varma was named Director of the Year for the films Tortoise & Hare and Eco Plaster. Tortoise & Hare also received Silver awards for Best Editing and Best Colour Grading, along with a Bronze award for Best Cinematography. Eco Plaster earned Bronze awards in the Best Direction – Narrative and Best Direction – Humour categories.

Both films extended their award-winning run, with Eco Plaster being recognised for its narrative centred on water conservation through innovative construction solutions, while Tortoise & Hare was honoured for its storytelling and craft execution.

The Hard Worker campaign was built around the idea that hard work deserves recognition and respect. Through culturally rooted and emotionally engaging stories, the campaign has connected with consumers, engineers, masons and the wider construction community across the country.

Commenting on the achievement, A V Dharmakrishnan, CEO of The Ramco Cements Limited, said that the continued recognition across leading creative platforms reflects the company’s commitment to meaningful and authentic communication rooted in the values of the people it serves.

Balaji K Moorthy, Executive Director – Marketing, The Ramco Cements Limited, said the awards recognise the craftsmanship behind the storytelling, from direction and cinematography to editing and narrative execution.

Following recognition at both the Kyoorius Creative Awards and the Good Ads Matter Awards, the Hard Worker campaign continues to demonstrate the impact of purpose-driven storytelling combined with strong creative execution and consumer relevance.

Concrete

Cement Makers Reaffirm Commitment to Sustainable Growth

Published

2 weeks ago

June 5, 2026

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World Environment Day spotlight on innovation and circularity

On World Environment Day, the Indian cement industry reiterated its commitment to supporting India’s climate ambitions through sustainable manufacturing, resource efficiency and the adoption of cleaner technologies.

The Cement Manufacturers’ Association (CMA) said the sector remains aligned with the Government of India’s Net Zero commitments and is accelerating efforts to reduce its environmental footprint while supporting the country’s infrastructure and development agenda.

Parth Jindal, President, CMA and Managing Director, JSW Cement, said the industry is increasingly adopting cleaner technologies, improving energy efficiency and expanding the use of alternative fuels and raw materials. He also highlighted the growing importance of circular economy practices, where industrial by-products and waste streams from one sector are utilised as resources in another.

“The Indian Cement Industry is aligned to the Government’s commitments on carbon mitigation and is accelerating the adoption of cleaner technologies, resource efficiency and circular economy practices while actively exploring the potential of Carbon Capture, Utilisation and Storage (CCUS) as a critical pathway for deep decarbonisation,” said Jindal.

He added that coprocessing industrial waste and by-products helps conserve natural resources, reduce disposal requirements and lower the environmental footprint across multiple sectors.

According to Jindal, sustainability is no longer limited to manufacturing processes but is increasingly influencing investment decisions, innovation strategies and long-term growth plans within the industry.

Echoing similar views, Dr Raghavpat Singhania, Vice President, CMA and Managing Director, JK Cement, said sustainable development extends beyond emissions reduction and must also focus on responsible resource utilisation and waste minimisation.

“Sustainability in the built environment cannot be measured by emissions alone. It is equally about how efficiently we use resources, how effectively we minimise waste and how responsibly we create the infrastructure that will serve future generations,” said Singhania.

He noted that the cement industry is advancing its sustainability agenda through greater resource efficiency, increased circularity, technological innovation and continuous improvements in manufacturing practices. As a key contributor to India’s infrastructure development, the sector has a critical role to play in balancing economic growth with environmental responsibility.

On the occasion of World Environment Day, industry leaders reaffirmed their commitment to supporting India’s climate goals while delivering the materials required for resilient, durable and sustainable infrastructure.