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Prefab Concrete: Moulding a Success Story

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The Indian prefabricated component industry although is in a nascent stage, is fast catching attention of builders and construction companies. Even a fraction of upcoming investments in real estate and infrastructure project is spent in using prefabs would add about Rs 20,000 crore of business to the industry in next five year, from the current level of less than Rs 2,000 crore, that’s 10 times, finds FIRSTINFOCENTREHistorically, houses have been built in one place and reassembled in another and possibly the first recorded prefab house was the manning portable cottage constructed by a London carpenter, H Manning. He constructed a house that was built in components, then shipped and assembled by British emigrants. Another interesting building was the prefabricated hospital that the British Army deployed in 1855 during the Crimean War designed by Isambard Kingdom Brunel with innovations in sanitation, ventilation and ria flushing toilet.The world’s first prefabricated, pre-cast panelled apartment blocks were pioneered in Liverpool. A process was invented by city engineer John Alexander Brodie, whose inventive genius also had him inventing the football goal net. The tram stables at Walton in Liverpool followed in 1906. The idea was not extensively adopted in Britain, however was widely adopted elsewhere, particularly in Eastern Europe.Prefabricated homes were produced during the Gold Rush in the United States, when kits were produced to enable Californian prospectors to quickly construct accommodation. Homes were available in kit form by mail order in the United States in 1908."Prefabricated" refers to building built in components (eg, panels), modules (modular homes) or transportable sections (manufactured homes). Modular homes are created in sections, and then transported to the site for construction and installation. These are typically installed and treated like a regular house. Although the sections of the house are prefabricated, the sections, or modules, are put together at the construction much like a typical home.In India, the prefabricated or precast material industry is in a nascent stage. It is worth Rs 1,500 crore in infrastructure construction and less than Rs 500 crore in case of prefabricated homes. People are experimenting with them and some contractors specialise in them although there are certain drawbacks to the support system in urban area. At present, precast technology are more in vogue in rural India and not so favourable for elite housing as aesthetics may be compromised.However, of late, many builders have taken up prefabrication to meet demand. Earlier used in large projects, this system is gradually being preferred in most aspects of construction. Facing a shortage of labourers, builders are resorting to new ways to meet the unprecedented construction demand in one of the fastest growing property markets in Asia. Prefabricated building systems that have been traditionally used in India to build bridges, metro rails and industrial units so as to save money and time are now finding their way into constructing homes.Says a structure consultant, that using prefabricated materials has made construction work easy and it also brings down the construction time by as much as 50 per cent. Though using such materials is more common abroad, prefabricated structures are used in India in only large construction projects.Use of prefabricated materials has more or less become a norm in building construction in markets overseas. The trend has just started in India, because of the construction boom and western architectural influences.Now, more and more builders are opting for prefabricated materials to put together large structures without employing large labourers. Prefabricated materials are essentially ready-to-fit materials manufactured at a factory outside the construction site. They are later assembled at the construction site by masons and joiners.In prefabricated housing construction, only the foundation and floor slabs are constructed the conventional way, which involves brick work, timber work, cement and sand to the building site. Sections of walls and roof are fabricated at a factory-with or without windows and door frames attached – and transported to the site, where they are just assembled and bolted together.Prefabrication saves time and as a result cost. For instance, casting of a super structure, where the structure of a building above the ground level takes 7-28 days if the casts are made at the construction site. But if the casts are made at a plant outside the construction site, it takes just seven days.Although prefabrication is being used on a growing number of projects, most construction work is still site-based.Players in Prefabricated componentsThe cement prefabricated component industry is largely fragmented with large number of small players dominating regional business. Many producers still continue with conventional methods of production that meet local demand and specifications. Few organised players using modern technology are emerging with modest investments in plant and machinery. Couple of them also have technical tie-up with foreign specialists. Among the major players having pan-India presence is NCL Industries.NCL Prefab a division of NCL Industries, was set up in 1979. The company’s manufacturing unit is located at Jeedimetla, Hyderabad. NCL has developed its prefab housing systems by using Bison Panel. These systems are mainly used in farmhouses, dwelling houses, row houses, project houses, custom-made houses, rest houses, guest houses, hill resorts, store sheds, penthouses, security cabins, mobile check-posts, industrial sheds, disaster housing, defense barracks, school buildings and many more. Office quarters for Reliance Petroleum staffs, guest houses for Sanghi Industries in Hyderabad, office building for Arvind Mills in Ahmedabad, hill resort at Kodaikanal and a four-storey school building in Pune are some of the projects undertaken by the company using this technology.The company feels that the prefab business has really caught on, as most construction companies, army, as well as paramilitary forces, have started using them on a regular basis. While announcing the 2010-11 third quarter results K Ravi, MD of NCL Industries, stated the that company will take up construction of prefab structures in a joint venture with Austria’s VST namely, NCL VST Infra Limited. The idea is to introduce the prefab technology in India, particularly for high rise buildings. The cost of the project is estimated at Rs 21 crore and the first unit will come up in Hyderabad. Later on it will spread the technology throughout the country.The current technology limits the operations to cater to ground floors and manufacturing normal prefab shelters. Using new technology known as the formation; the shuttering material will remain in the building.Prospects and challengesThe current cement prefabricated component industry size estimated at Rs 2,000 crore, although in a nascent stage, is fast catching attention of builders and construction companies. The size has potential to grow 10 times even if a fraction of upcoming investment in real estate and infrastructure projects is spent in using prefabs. The potential sectors which can use prefabricated component are roads and bridges, railways, airports, ports, warehousing and storage housing and commercial complexes. As of end-May 2011, total investment in pipeline in these sectors was about Rs 32,400 billion. Even 0.6 per cent of this can bring in additional business of Rs 200 billion for the prefab industry. High potential segments are roads and bridges, railways, airports and ports. These four can generate more than Rs 150 billion of business alone. However, much would depend on quality of products offered, meeting specifications and timely delivery as these projects are time and cost conscious.NCL’s improved prefab systemsThe wall panel height is increased to 9 feet & 10 feet.Expanded polystyrene sheets are sandwiched between double skin panels for better thermal comfortEach panel is lipped on all sides with appropriate GI sections for easy interlocking. The lipping provided is helping to avoid damage of the edges during transport False ceiling is introduced for all most all the modelsThe roofs are provided with GI corrugated sheets or pre-painted sheets with appropriate ridge elementsDesigned eve plates are introduced at the edges of the roofs to add elegance to the sheltersElectrification for lighting and air conditioning is stream lined in the systemThe system of erection is simplified using minimum components

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Concrete

Shree Cement Posts Strong Q4 as Volumes Rise

Revenue and Premium Sales Drive Margin Improvement

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Shree Cement reported results for the quarter and year ended 31 March 2026, with consolidated net revenue of Rs61,010 million (mn) and consolidated EBITDA of Rs13,840 mn. Standalone net revenue was Rs56,430 mn and profit after tax stood at Rs5,320 mn, improving from the prior year. Cash profit and operating metrics strengthened quarter on quarter. The board recommended a final dividend of Rs70 per share, taking total payout for the year to Rs150 per share.

Total domestic cement sales rose 11 per cent year on year from nine point five two mn tonnes (t) to 10.56 mn t, with quarter on quarter gains of about 24.5 per cent. Sales of premium products increased to 22 per cent of trade volume from 16 per cent in the prior quarter, supporting margin expansion.

The ready mixed concrete operations totalled 26 plants at year end and 10 new commercial plants inaugurated in March are under commissioning, which will raise the count to 36. The company commissioned an integrated project of three point six five mn t clinker and three point five mn t cement capacity in Karnataka, taking installed cement production capacity in India to 69.3 mn t.

Sustainability metrics included 61 per cent green electricity share in the quarter and green power generation capacity of 666.5 megawatt (MW). Manufacturing sites maintained zero liquid discharge and a water positivity index greater than eight times. Management said energy efficiency and digitalisation measures were helping to mitigate cost pressures from the West Asia conflict.

Management expressed confidence in medium term demand backed by infrastructure spending and Union Budget measures, while noting short term risks from geopolitics and monsoon forecasts. The company has incorporated a wholly owned subsidiary for overseas operations and is pursuing multiple expansion opportunities to accelerate capacity build up.

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Concrete

Shree Digvijay Cement Reports Annual And Quarterly Results

Annual revenue rises as EBITDA expands sequentially

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Shree Digvijay Cement Company Limited reported consolidated financial results for the quarter and year ended 31 March 2026, showing higher revenues and improved profitability. Revenue from operations for the quarter was Rs 2,084.7 mn, up from Rs 1,833.4 mn in the prior quarter, while revenue for the year was Rs 7,491.0 mn versus Rs 7,251.5 mn a year earlier. EBITDA for the quarter rose to Rs 251.0 mn from Rs 38.4 mn in the preceding quarter and reached Rs 746.1 mn for the year. Profit after tax for the year was Rs 250.0 mn.

Sales volume for the company s grinding and cement operations was zero point three six four mn t in the quarter and one point four zero three mn t for the year, while traded volumes were zero point zero three mn t in the quarter. EBITDA per tonne improved to Rs637 in the quarter and averaged Rs521 for the year. Under a brand usage, supply and distributorship agreement the company sold 29,928 t of Hi Bond cement, which generated Rs153.6 mn in revenue and Rs20.0 mn in EBITDA during the period.

The company said that it had commenced purchase and distribution of Hi Bond cement effective 19 March 2026 pursuant to the long term distributorship agreement, and that it had paid a refundable security deposit of Rs four bn under the same arrangement. Management indicated that the strategic integration with the Hi Bond network would support future growth and strengthen distribution capabilities. The board cited seasonally higher demand and improved pricing as factors behind the sequential improvement in realisations.

The board recommended a final dividend of Rs one per equity share subject to shareholder approval at the ensuing annual general meeting. The company reiterated focus on sustaining the positive momentum in revenue and margin metrics while integrating the new distributorship, and will continue to monitor market conditions and pricing trends to support further improvement in outcomes.

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Concrete

Cement Production Up Eight Point Six Per Cent To 491.4 mn t In FY26

Icra Sees Seven To Eight Per Cent Growth In FY27

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Icra reported that cement production volumes rose by eight point six per cent in the financial year 2026 to 491.4 million (mn) metric tonne (t). March output was 48.4 mn t, up four per cent year on year on a high base.

The agency projected that volumes are expected to grow by seven to eight per cent in the current financial year, supported by sustained demand from the housing and infrastructure sectors. Average cement prices were reported to have remained flat in March at Rs 340 per bag on a month on month basis, while prices for FY26 increased by two per cent to Rs 345 per bag year on year.

Among inputs, coal prices declined by 17 per cent year on year to USD 102 per t in April 2026 while petcoke prices rose sharply by 19 per cent month on month and 22 per cent year on year to around Rs 15,800 per t in April. Petcoke was higher by about five per cent year on year in FY26 and diesel prices were reported to have remained steady. Icra noted that coal, petcoke and diesel are expected to trend higher in FY27 and remain exposed to risks from the ongoing West Asia conflict.

The report emphasised that operating margins for Icra’s sample set of companies are estimated to moderate by 200 to 400 basis points (bps) in FY27 on account of a likely increase in input costs, with further downside risks should crude prices rise owing to geopolitical tensions. However, debt protection metrics are projected to remain comfortable and Icra maintained a stable outlook on the Indian cement sector.

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