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Cement Packaging : A Crucial Step in Getting Cement to End Consumers

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Packaging, across the value chain of cement operations, is a crucial process. ICR explores the various aspects of cement packaging, and its different types, while assessing the challenges and innovations that are expected in the future.

India is one of the largest producers of cement. With the ongoing infrastructural development in the country, the demand is ever rising for cement. Similarly, India also exports a significant amount of cement. Cement from the manufacturers must travel the lengths of the country to reach the users and cross borders during export. This requires strong packaging to avoid coming in contact with moisture and prevent wastage due to leakage. Once cement comes in contact with moisture it turns into concrete and that makes it of no use.


Packaging of cement plays a crucial rule in the process of taking it from the makers to the consumers. Manufacturer’s source highest grade technology and packaging material to protect their product from damage, wastage and to reach the end user in an unharmed manner. Packaging happens at the last leg of the cement manufacturing process. Cement is extracted from the silo bottom by aeration and transported to electronic packing machines by air slides and bucket elevators. Cement is packed in 50 kg packs, and HDPV bags or paper bags are used as per the customers’ requirement. Electronic packing machines are calibrated to deliver the correct weight.


The constant demand of good packaging material for cement gives way to two industries – the technology developers for automation of packaging and packaging material industry. According to a study conducted by the Data Bridge Market Research, the global cement packaging industry is expected to grow at a rate of 3.4 and from 2021 to 2027. This growth shall be credited to the increasing demand from construction industry, surging application of paper bags as it provides ease of printability and replacement of conventional plastic bags. On the other hand, evolution of advanced products will further create new and ample opportunities for the growth of cement packaging market in the above-mentioned forecast period. This will also be seen in the sustainable packaging solutions vertical over the years to come as that demand is growing in most sectors related to cement.

Standards and types of packaging bags for the cement industry
The industry largely uses Polypropylene bags for packaging of cement as it offers protection from moisture and strength to packaging. There are various categories of polypropylene bags available with coatings, linings etc. PP plain woven bags are simple bags made out of plastic and stitched together with to hold cement. The next type is PP lined bags that have an extra lining of plastic in the inside which protects cement from coming in contact with moisture. Next, are the laminated PP bags that have an extra layer of poly film on them. Their strength is higher than simple woven bags and provide greater resistance to air coming in touch with cement. They also give way to bigger branding and storing of cement in uncovered storages.
The higher quality in laminated bags is the BOPP laminated bags. BOPP stands for Biaxially Oriented Polypropylene. It is a layer that is added as an extra layer to the PP woven bags to enhance its strength. BOPP laminated bags have higher durability and are attractive and durable. These bags are primarily used to store and transport multiple contents, including grains, animal feed, and fertilizers.


PP Woven bags have various advantages when put in use for storing cement. They are highly chemical and weather resistant. They have high tear strength, which enables it to carry heavyweight materials. PP woven bags are 100 per cent reusable and have high durability making it the less pollutant product compared to other packaging bags.


Quality control for cement packaging is very important. The BIS (Bureau of Indian Standards) has set norms for cement packaging. As per Cl 9.2 of IS 455: 1989, the average net mass of cement per bag shall be 50 kg. The average net mass of cement per bag may also be 25 kg subject to tolerances and packed in suitable bags as agreed to between the purchaser and the manufacturer. Similarly, as per Cl 10.2 of IS 1489 (Part 1): 1991 and IS 1489 (Part 2): 1991, the average net mass of cement per bag shall be 50 kg. The average net mass of cement per bag may also be 25 kg subject to tolerances and packed in suitable bags as agreed to between the purchaser and the manufacturer. Also, as per IS 8112: 1989, the average net mass of cement per bag may also be 25 kg, 10 kg, 5 kg, 2 kg or 1 kg, subject to tolerances and packed in suitable bag as agreed to between the purchaser and the manufacturer.


The history of cement bags has seen advancement and evolution. Up to 1970s, all cement bags used to be made of jute, which had zero moisture resistance and was prone to high spillage during handling and transportation. Since then, the switchover has been to plain woven polypropylene (PP) sacks. To upgrade PP bags, the concept of lamination was introduced which came with increase in packaging and handling cost. Some manufacturers are also using BOPP laminated bags to enhance brand value.

The technology of cement packaging
The process of cement manufacturing is incomplete till the end product i.e., is packed in bags and is ready to be shipped out. This process takes place with the help of machine and equipment in an automated process. They are mainly used to complete the automatic packing of cement and other powder materials with good fluidity, such as fly ash, gypsum powder, cement additives, etc.


These machines can be classified as a fixed type and rotatory type. The fixed type usually has 1-4 cement discharging nozzles. The rotary type includes 6-14 nozzles and operates in a rotating way to realize the automatic cement bag filling.


With this machinery, cement bags are filled continuously through the discharging mouth by the impeller running at high speed. A weight is set for the filling and when the cement reached that set weight, a signal is transmitted to the main system and the filling is stopped. This process is electronically controlled; however, bags of the desired size are manually fed to the machine.


Automation of the bag filling process has various advantages like having a stable operation, giving uniformity and structure to the bags, clean and hygienic filling of cement bags, ease of maintenance and lesser mechanical faults.

Challenges faced by users of cement due to cement packaging
Karan Sabhlok, Director, Kamdhenu Realities says, “one of the major challenges we face is when the labour unloads the packages of cement using hooks which leads to tearing of the packages and further lead to spillage of cement. We buy 50 kg packs and while loading and unloading the cement falls from packages and the rest in the pack gets hard and due to coming in contact with air, the strength of cement also decreases”.


He suggests that, “Cement should be packed in 2 bags, outer bag on which we will attach the hook and the inner bag which should be of at least 50 microns so that it keeps the cement safe from air. Also, the hook on the outer bag should be attached near the stitching so that there is least amount of damage to the bag”.


Some of the common challenges that users of cement like construction workers and builders face are wastage, leakage and tearing of cement bags while handling them. They are looking for cement manufacturers to provide stronger packaging materials or provisions where hooks can work without causing damage.


Throwing some more light on the challenges faced by builders Raj Kamal Yadav, General Manager – Strategy, Lodha Group says, “Cement industry uses unlaminated polypropylene bags with valves which allows them to pack cement very easily and fast, Since the bags are without lamination so cost of bags is low. However, the use of hooks in their logistics during the loading and unloading of cement causes tearage and leakage. These bags also have lower UV resistance and when placed in sunlight leads to cement losing its strength”.


These issues direct the cement packing industry to strive for innovation in packaging that can lead to lesser wastage and more ease of use.


Cement packaging taking a sustainable route
Cement manufacturers are moving towards paper packaging and makers of packaging are trying everyday to make cement packing material better for the environment and sustainable. While innovations are on the way, it is imperative that the environment is protected from the waste that may happen with used plastic bags.


Alpesh Patel, Managing Director, Knack Packaging says, “Every cement manufacturing company must ensure that used cement bags must be collected and either sent back for recycling or must be used as fuel in their kilns. This way they prevent waste accumulation in the ground and reduce the usage of natural resources for fuel supporting the environment.”
It is a question to dwell upon if the industry shall lean towards paper packaging that is recyclable, better in aesthetics, supports branding and is cost effective but does not protect cement well enough from environmental factors like moisture or they shall lean towards plastic sacks that do protect cement from moisture but produce larger amount of dust and are more prone to leakages.

Kanika Mathur

Concrete

Steel Ministry Proposes Rs.23.52 Lakh Crore for Decarbonisation

Steel Ministry unveils massive decarbonisation plan.

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Decarbonisation Proposal:
The Steel Ministry has outlined a substantial Rs.23.52 lakh crore proposal aimed at decarbonising the steel industry. This initiative is part of the broader sustainability and environmental goals set by the Indian government.

Objective and Goals:
The primary objective of the proposal is to reduce carbon emissions significantly and enhance the environmental performance of the steel sector. This aligns with India’s commitment to climate action and green growth.

Investment Focus:
The proposal will channel funds into advanced technologies, energy-efficient processes, and renewable energy sources. Key areas of investment include electrification, hydrogen-based steelmaking, and carbon capture technologies.

Expected Benefits:
Implementing this plan is expected to lead to major reductions in carbon emissions, improve air quality, and contribute to sustainable development. It will also bolster India’s position as a global leader in green steel production.

Industry Impact:
The steel industry, being a major emitter of greenhouse gases, will undergo a transformation. This shift will require industry-wide adaptation and could influence global steel market trends.

Government Support:
The Indian government is committed to providing policy support, incentives, and regulatory frameworks to facilitate this transition. This includes subsidies for green technologies and research and development funding.

Timeline and Phases:
The implementation will be carried out in phases over the coming years. Short-term goals will focus on immediate emission reductions, while long-term goals will target more comprehensive technological advancements.

Stakeholder Involvement:
Collaboration with industry stakeholders, technology providers, and research institutions will be crucial. Engagement with local communities and environmental groups will also play a role in ensuring the success of the proposal.

Challenges:
The initiative may face challenges such as high costs, technological barriers, and regulatory hurdles. Addressing these challenges will be essential for the successful execution of the decarbonisation plan.

Future Outlook:
The proposal positions India as a key player in the global movement towards sustainable steel production. It sets a precedent for other sectors to follow and supports the country’s broader climate goals.

Conclusion:
The Steel Ministry’s proposal for a Rs.23.52 lakh crore decarbonisation plan represents a significant step towards reducing carbon emissions in the steel industry. With substantial investment in green technologies and strong government support, this initiative aims to drive sustainable growth and position India as a leader in environmental stewardship.

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Concrete

New home prices in China fall 5.3% in August 2024

New home prices were down 5.3% from a year earlier.

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Official data revealed that China’s new home prices had fallen at their fastest rate in over nine years in August, as supportive measures failed to induce a significant recovery in the property sector. The data showed that new home prices were down 5.3% compared to the previous year, marking the sharpest decline since May 2015, compared to a 4.9% drop in July, based on calculations by Reuters from National Bureau of Statistics (NBS) data. Monthly figures indicated that new home prices had fallen for the fourteenth consecutive month, decreasing by 0.7%, which was the same drop recorded in July.

The property market in China continues to struggle with deeply indebted developers, incomplete apartments, and declining buyer confidence, which is putting a strain on the financial system and threatening the 5% economic growth target for the year. A Reuters poll had forecast that home prices in China would decline by 8.5% in 2024 and by 3.9% in 2025 as the sector struggles to stabilise.

Zhang Dawei, chief analyst at property agency Centaline, mentioned that the property market is still gradually bottoming out, with home buyers’ demand, income, and confidence expected to take some time to recover. He noted that the market was anticipating a stronger policy response. According to the official data released on Saturday, property investment had fallen by 10.2% and home sales had dropped by 18.0% year-on-year in the first eight months of the year.

Chinese policymakers have stepped up efforts to support the property sector, including reducing mortgage rates and lowering home buying costs. These measures have partially revitalised demand in major cities, while smaller cities, which have fewer home purchase restrictions and high levels of unsold inventory, are particularly vulnerable. This situation underscores the difficulties faced by authorities in balancing demand and supply across different regions.

In a research note on Friday, Nomura indicated that with the growth slowdown worsening under new headwinds in the second half of the year, Beijing might eventually need to step in as the “builder of last resort” by directly providing funding to delayed residential projects that have already been pre-sold. According to Bloomberg News, China may cut interest rates on over $5 trillion in outstanding mortgages as early as this month.

To support these mortgage rate cuts, economists at ANZ suggested that a reduction in the five-year Loan Prime Rate was likely in September, along with a 20 basis point cut to the medium-term lending facility (MLF) and a 50 basis point cut to the reserve requirement ratio (RRR).

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Concrete

Indian Cement Industry Sees Further Consolidation

Cement industry to face consolidation soon.

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India’s cement sector is set for further consolidation in the near-to-medium term, according to a recent report. With increasing competition, rising input costs, and the need for economies of scale, companies are expected to explore mergers and acquisitions (M&A) to strengthen their market positions. As the industry faces various challenges, including high energy costs and fluctuating demand, consolidation is viewed as a strategic move to drive growth and sustainability.

Key Points:
Market Consolidation: The Indian cement industry has already witnessed significant consolidation over the past few years, with several large firms acquiring smaller players to enhance their market share. The trend is expected to continue, driven by the need to optimize operations, cut costs, and gain better pricing power. Consolidation helps companies to expand their geographic reach and strengthen their portfolios.

Rising Costs and Challenges: One of the primary drivers of consolidation is the rising cost of inputs, particularly energy and raw materials. With costs of coal and petroleum coke (key energy sources for cement production) soaring, companies are looking for ways to maintain profitability. Smaller and medium-sized players, in particular, find it challenging to cope with these rising costs, making them more likely targets for acquisition by larger companies.

Economies of Scale: Larger cement companies benefit from economies of scale, which help them absorb the impact of rising input costs more effectively. Consolidation allows firms to streamline production processes, reduce operational inefficiencies, and invest in advanced technologies that improve productivity. These efficiencies become critical in maintaining competitiveness in an increasingly challenging environment.

M&A Activity: The report highlights the potential for more mergers and acquisitions in the cement sector, particularly among mid-sized and regional players. The Indian cement market, which is highly fragmented, presents numerous opportunities for larger companies to acquire smaller firms and gain a foothold in new markets. M&A activity is expected to accelerate as firms seek growth through strategic alliances and acquisitions.

Regional Focus: Consolidation efforts are likely to be regionally focused, with companies looking to expand their presence in specific geographic areas where demand for cement is strong. Infrastructure development, government projects, and urbanization are driving demand in various parts of the country, making regional expansions an attractive proposition for firms looking to grow.

Impact on Competition: While consolidation may lead to a more concentrated market, it could also intensify competition among the remaining players. Larger firms with more resources and market reach could dominate pricing strategies and influence market dynamics. Smaller firms may either merge or struggle to compete, leading to a reshaping of the competitive landscape.

Demand Outlook: The near-term outlook for the cement industry remains uncertain, with demand being influenced by factors such as construction activity, infrastructure projects, and government initiatives. The report notes that while urban demand is expected to remain stable, rural demand continues to face challenges due to slow construction activities in those areas. However, the long-term outlook remains positive, driven by ongoing infrastructure developments and real estate projects.

Sustainability Focus: Companies are also focusing on sustainability and environmental concerns. Consolidation can provide larger companies with the resources to invest in green technologies and reduce their carbon footprint. This focus on sustainability is becoming increasingly important, with both government regulations and market preferences shifting toward greener production practices.

Conclusion:
The Indian cement industry is poised for further consolidation in the coming years, driven by rising costs, competitive pressures, and the need for economies of scale. M&A activity is likely to accelerate, with larger firms targeting smaller and regional players to strengthen their market presence. While consolidation offers opportunities for growth and efficiency, it could also reshape the competitive landscape and influence pricing dynamics in the sector.

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