Economy & Market

How Indian cement companies can manage the impact of COVID-19

Published

7 years ago

January 6, 2020

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Following flatlining demand growth in FY 20, the impact of Covid-19 is expected to see cement demand contract by anywhere between 10 to 25 per cent according to the latest estimates by CRISIL.

The spread of the coronavirus pandemic and the resulting lockdown across India has created an unparalleled crisis for the Indian cement industry. Manufacturing has been severely disrupted by restrictions on plant operations and the movement of labour, while the suspension of construction activity and the closure of the retail channel has resulted in a precipitous collapse in demand.

Following flatlining demand growth in FY 20, the impact of Covid-19 is expected to see cement demand contract by anywhere between 10 to 25 per cent according to the latest estimates by CRISIL ‘ depending on when and how the Government lockdown eases. This could result in capacity utilisation falling from an estimated 65 to 67 per cent in FY20 to 56 to 58 per cent in FY21. Further, given the high degree of uncertainty about how the pandemic and its economic consequences will unfold, such projections could be subject to major revisions as we progress through the crisis. Given the scale and scope of Covid-19’s impact on the Indian cement industry, executives can be forgiven for feeling overwhelmed. However, by thinking and acting along three time horizons concurrently, it is possible for industry leaders to take steps to mitigate the impact of the lockdown, get their organisations back to work, and build a road to resurgence. By adopting this framework to manage through the crisis, leaders can break down the challenge into more manageable chunks and deploy dedicated organisational resources to tackle them in tandem.

Manage the lockdown
The current lockdown in place across large parts of the country has put severe restrictions on cement plant operations, supply chain logistics and the availability of labour. With the Covid-19 case count rising in many districts, cement companies will have to confront a geographic patchwork of restrictions and stop-start relaxations across their operational footprint. At the same time, cement companies have had to transition overnight from fairly traditional workplace practices to large-scale work from home, creating both technological and cultural hurdles to effective collaboration. In stark contrast to service industries, labour and capital intensive sectors like cement involve high-touch activity during manufacturing, transportation and sale of goods which makes maintaining physical distancing rules a particular challenge.

To manage the business during the lockdown cement companies should first ensure they have put in place an effective Covid-19 team. Within this team one task force should be designated with responsibility for crisis management and business continuity and should comprise leaders from supply chain, production, IT, HR, and government liaison. The priorities for this team should be ensuring the safety of employees and customers, defining and maintaining the minimum viable operation, coordinating with local authorities to ensure compliance and easing of emerging bottlenecks, and making work from home as productive as possible.

Building organisational resilience during this period is key. For example, cement supply chains will need to shift from previous focus on optimisation toward maximum resilience, as issues like inter-state transport bans disrupt previous patterns of movement for both inputs and finished goods. Using tools like visual dashboards can provide companies with a clearer picture of operational status and respond dynamically to changing on-ground situations.

Get back to work
As the lockdown eases, cement companies will be able to run at an increased level of operation but this will not be a return to the way things were. With the Coronavirus likely to persist throughout 2020 and probably beyond, companies will need to adapt to a new normal. Physical distancing rules will need to be maintained, resurgences of the virus may lead to a re-introduction of restrictions, and cement demand will remain below potential as the economic impact of the crisis plays out. Indian cement companies need to start preparing to cross this coming chasm today.

To think and act along this time horizon, a second task force of the Covid-team needs to focus on reviving revenue and ensuring cash conservation. This challenge will require major inputs from sales & marketing, finance, manufacturing and supply chain to help adapt the business model to the new operating climate.

The lockdown and ensuing economic slowdown will lead to acceleration of some earlier demand trends as well as emerging new trends. After years of sluggish growth, construction in the residential real estate sector will likely further retrench as consumer demand for new housing falls. In addition, the commercial real estate market which was an earlier bright spot, is expected to contract sharply. Therefore cement demand is likely to become more dependent on government spending on infrastructure and affordable housing. Demand may also shift geographically away from harder hit urban areas to rural regions where restrictions on activity may be more limited.

As well as identifying and targeting the most attractive customer segments during this period, cement companies will also need to track and tap into emerging trends in construction practices. One leading Indian cement company expects the combination of scarce labour availability in urban areas and the need for physical distancing to accelerate the demand for ready-mix-concrete (RMC). Companies may need to fast-track existing plans or pivot to new opportunities to revive revenues in the coming quarters.

Finally, in light of lower cement demand, companies will also need to review their capital investment and market entry decisions. Many Indian cement companies had earmarked substantial investments for new plant as well as entry into new geographies. Those plans will need to be urgently revisited given lower expected capacity utilisation at existing operations over the next year.

Build a new road to resurgence
Although a post-Covid landscape may seem far away today, cement companies need to start thinking about the new world that will emerge once the pandemic abates – and the challenges and opportunities that will come with it. Cement companies will emerge from the crisis to face a very different scenario in terms of the competitive landscape, customer behaviour, and employee mindset.

The fundamental shifts that Coronavirus will bring about require the focus of a dedicated team within the Covid-19 task force charged with thinking along a longer time frame and building a new road to resurgence. This requires a team with an aptitude for visioning, strategic insight and large-scale change management. Topics such as digitalisation, technological and product innovation, sustainability, and cultural transformation will come to the fore as cement companies look to reimagine their business models for a new world. By thinking and acting concurrently along these three time horizons and committing dedicated resources to each of them. Indian cement companies can mitigate the impact of the current lockdown, revive revenues in the coming quarters and chart a new path to sustainable success in the post-Covid world.

ABOUT THE AUTHORS:
Deepak Sharma is Director of Strategy at Kanvic Consulting. His advice is sought by Fortune 500 companies, large owner managed and multi national companies looking to tap growth opportunities and tackle the most complex strategic challenges. He can be reached at deepak@kanvic.com

Shiv Sharma is an Associate Principal at Kanvic Consulting. He works in Kanvic’s strategy team in Gurgaon and manages client engagements across industrial and consumer sectors in the areas of strategy, marketing, sales and organisation. He can be reached at shiv@kanvic.com

Concrete

Wonder Cement appoints Mahesh Singh as VP Corporate Brand Communication

Published

3 days ago

October 9, 2026

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Singh brings 20+ years of brand and marketing experience, and will lead integrated corporate brand communication initiatives at Wonder Cement

New Delhi

Wonder Cement, a leading cement manufacturer, has appointed Mahesh Singh as Vice President – Corporate Brand Communication. In his new role, he will oversee corporate brand strategy and communication, including digital and performance marketing, public relations, trade, events, exhibitions, sports and experiential marketing.

Singh brings over two decades of experience across marketing and communications, with roles spanning the automotive industry, agencies and entrepreneurship. He spent more than a decade with Honda Motorcycle & Scooter India, working across integrated communication, media, digital, retail and consumer engagement. His stint also included helping build the company’s digital marketing capabilities.

He moved to dentsu X India as Vice President – Strategy & Planning, working across categories such as automotive, auto components, electric vehicles, FMCG, consumer electronics, BFSI, apparel and brand consulting. His responsibilities included media and marketing strategy, product launches, content, performance marketing and consumer activations.

Singh subsequently took an entrepreneurial route with Radiant Brands before joining Shriram Ltd (SPR Autotech) as Head – Marketing & Communications. There, his remit included brand and corporate strategy, communications, PR and ORM, retail identity, loyalty programmes and events.

At Wonder Cement, Singh will be responsible for bringing together the company’s corporate brand communication initiatives across digital, performance marketing, PR, trade, sports and experiential platforms. The role will focus on creating an integrated approach to communication across consumers, trade partners and other key stakeholders.

The appointment brings to Wonder Cement a marketer whose career has spanned the brand, agency and entrepreneurial sides of the communications ecosystem.

Wonder Cement, part of the RK Group, is a cement manufacturer with roots in Rajasthan and a focus on quality, trust and transparency. The company has grown to six manufacturing plants, and a cement capacity of 21.5 MTPA. With more than 2,000 employees and a network of over 5,000 dealers, its operations span manufacturing, distribution and customer engagement, with a focus on consistent product quality and efficient execution.

Concrete

JSW Cement commissions additional 1 MTPA grinding unit at Nagaur

Published

4 days ago

October 8, 2026

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With this commissioning, JSW Cement’s total cement grinding capacity has increased to 25.10 MTPA,
Mumbai

JSW Cement, one of India’s leading green cement producers and part of the diversified JSW Group, today announced the successful commissioning of an additional 1.00 MTPA cement grinding unit at Nagaur, Rajasthan. The commissioning marks another significant milestone in the Company’s growth strategy.

With this commissioning, JSW Cement’s total cement grinding capacity has increased to 25.10 MTPA, while its total clinker manufacturing capacity, including clinker capacity at its joint venture, JSW Cement FZC, stands at 9.74 MTPA.

JSW Cement had commenced operations in North India in March 2026 with the Nagaur Integrated Plant, comprising a 3.30 MTPA clinkerisation unit and 2.50 MTPA cement grinding unit. With the commissioning of the additional 1.00 MTPA cement grinding unit, the plant’s total cement grinding capacity has increased to 3.50 MTPA, enhancing the company’s ability to cater to the growing cement demand across Rajasthan, Haryana, Punjab and the National Capital Region (NCR). The expansion has been funded through a strategic mix of equity and long-term debt.

During the quarter ended 30th September 2026, JSW Cement has also commissioned the Alternate Fuel Handling System and the Waste Heat Recovery system (WHRS) at the Nagaur Integrated Plant.

Nilesh Narwekar, CEO, JSW Cement, said: “The commissioning of additional 1.00 MTPA grinding capacity at Nagaur is a key strategic priority for us and will accelerate JSW Cement’s expansion into North India. We look forward to servicing the growing needs of the region and contributing to the economic growth of Rajasthan, Haryana, Punjab and the NCR area. I am delighted to share that the company has commissioned this grinding unit within the expected timeline, showcasing our project execution capabilities. Further, the Alternate Fuel Handling System and the Waste Heat Recovery system (WHRS) are expected to substantially reduce our production costs going forward.”

Concrete

UltraTech becomes first Indian cement firm to cross 2 GW green energy

Published

5 days ago

October 7, 2026

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UltraTech Cement has crossed 2 GW of captive green energy capacity, with renewables and waste heat recovery meeting 48 per cent of its power needs.

Mumbai

UltraTech Cement Limited has surpassed 2 GW of installed green energy capacity for captive use, becoming the first cement company in India to achieve the milestone. The Aditya Birla Group company commissioned 116.55 MW of wind capacity at its Inter-State Transmission System-connected wind-solar hybrid project in Barmer, Rajasthan, along with 10 MW of Waste Heat Recovery System capacity at Sarlanagar Cement Works in Karnataka.

With these additions, UltraTech’s cumulative installed green energy capacity has reached 2,024 MW. This includes 1,580 MW of renewable energy capacity and 444 MW of waste heat recovery capacity, together meeting around 48 per cent of the company’s current power requirements.

The company said the milestone reflects the progress of its long-term energy transition strategy. In FY27 so far, nearly one-third of UltraTech’s 76 manufacturing units in India have maintained green energy utilisation above 50 per cent of their electricity requirements, while five units have crossed 95 per cent.

K C Jhanwar, Managing Director, UltraTech Cement Limited, said, “Crossing the 2 GW green energy milestone is the result of a strategy we have pursued consistently over the past decade. Cement is an energy-intensive, hard-to-abate sector, and showing that reliability and growth can go hand in hand with a rapid shift to green energy sets a benchmark for the industry. With nearly half of our power needs now met through green energy, we are significantly less exposed to fossil fuel supply constraints and power price volatility. As we scale up renewables, waste heat recovery and battery storage across our operations, we are building an energy foundation for stable, long-term growth.”

UltraTech commissioned 430 MW of green energy capacity in FY26 and continues to expand its renewable energy and waste heat recovery portfolio.

The company is also progressively integrating Battery Energy Storage Systems across its operations to improve renewable energy utilisation and supply reliability.

In 2025, UltraTech operationalised what it described as India’s first on-site hybrid round-the-clock renewable energy project at Sewagram Cement Works in Gujarat. The project combines solar, wind and battery storage.

As part of its decarbonisation strategy, UltraTech said it has not invested in new captive thermal power capacity for either greenfield projects or brownfield expansions at its integrated units for more than a decade.

The company said its expanding green energy portfolio is helping reduce dependence on conventional grid electricity and fossil fuel-based power, while lowering exposure to fluctuations in coal and electricity prices.

UltraTech aims to increase green energy’s share in its total power mix to 85 per cent by 2030. As a member of RE100, it has also committed to meeting 100 per cent of its electricity requirement through renewable sources by 2050.

UltraTech Cement, the cement flagship of the Aditya Birla Group, has a total grey cement capacity of 210.1 MTPA and white cement and putty capacity of 3.5 MTPA. The company is also a signatory to the GCCA Climate Ambition 2050 and has committed to the GCCA Net Zero Concrete roadmap.