Concrete

Constantly increasing prices of building materials are a major challenge

Published

3 years ago

January 16, 2023

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Shraddha Kedia-Agarwal, Director, Transcon Developers, brings in the perspective of developers as they tackle the issue of rising cement costs and the overall impact on consumer behaviour.

How has the rise in cement and building materials cost impacted your business?
The rise in cement and other building material costs have had a major impact on our business. Construction costs have risen significantly as budgets have remained fixed, resulting in a decrease in profitability. The prolonged delivery of materials has also caused a delay in projects and a requirement for increased cash flow during the construction phase.
As of March 2022, construction costs had gone up by 10 to 12 per cent year-on-year due to a 20 per cent spike in key material costs such as cement, steel, aluminium, copper and fuel. This was further exacerbated by geopolitical issues and inflation leading to increased labour costs. Developers are particularly challenged, as they have to deal with high levels of debt and liquidity constraints.

As the costs are expected to remain volatile for a few more months, is there any change in your strategy or approach towards the launch of new projects?
Though we are actively monitoring market conditions, we are not planning any change to our approach on launching new projects. However, we are increasing construction budgets and focusing more on external amenities in order to provide more value to buyers. This may result in increased costs, but the extra benefits provided should outweigh this cost.

Tell us about the impact on timely delivery of developer projects.
The constantly increasing prices of building materials are a major challenge for the construction industry, as they can lead to delays in project completion and reduced quality of work. Fluctuations in the market value for these materials present a significant risk for all stakeholders involved, such as suppliers, contractors, and clients.
There is an increased lead time for materials, and suppliers are hesitant to accept orders due to the uncertainty of the market. This means that material contractors are further apprehensive about accepting offers or quotation requests. As a result, developers may need to adjust their plans in order to ensure timely completion of projects.

How has the consumer behaviour changed with change in property costs? Do you expect the demand to decrease?
The changing property costs have certainly affected consumer behaviour. As prices increase, consumers may be more hesitant to purchase and less likely to spend beyond their budgets.
The real estate industry has been adapting to the pandemic since its onset, and the second wave of infections had further compounded their challenges. In particular, there has been a steep rise in the cost of key raw materials such as steel, cement, solid blocks, nails, binding wires, and plywood. This increase has been as much as 100 per cent in some cases compared to last year, severely limiting the developers› ability to offer discounts to their customers.
The decrease in demand may drive developers to offer more amenities or better value proposition in order to remain competitive in the market.

What is the major challenge that you have come across with the rising costs and how are you combating the same?
One major challenge with rising costs is that companies must make the right decisions on how to optimise their manufacturing processes, implement cost-saving measures and negotiate supplier terms in order to reduce their input costs without sacrificing quality. This is why selective manufacturing and value engineering are important, as they allow companies to reduce costs while still achieving their desired output. Additionally, fast/advance payments can help companies meet their vendors› needs while also helping them reduce their overall expenses. Finally, a focus on material consumption can provide companies with an opportunity to decrease their costs by reducing their materials used and exploring cheaper alternatives.

How do you envision the future of real estate development and consumer behaviour with the rising cost of cement and other construction materials?
In the future, the rising cost of cement and other construction materials will likely lead to real estate developers exploring alternative recycled materials. Additionally, consumer behaviour will likely shift towards more energy-efficient and environment-friendly construction methods, as well as green design initiatives like zero-waste construction and biophilic design. Real estate developers will also have to look for ways to reduce their material consumption, such as through the implementation of prefabricated structures, the use of intelligent building technologies and the development of holistic sustainability strategies.

-Kanika Mathur

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Concrete

UltraTech Cement FY26 PAT Crosses Rs 80 bn

Company reports record sales, profit and 200 MTPA capacity milestone

Published

4 days ago

April 29, 2026

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UltraTech Cement reported record financial performance for Q4 and FY26, supported by strong volumes, higher profitability and improved cost efficiency. Consolidated net sales for Q4 FY26 rose 12 per cent year-on-year to Rs 254.67 billion, while PBIDT increased 20 per cent to Rs 56.88 billion. PAT, excluding exceptional items, grew 21 per cent to Rs 30.11 billion.

For FY26, consolidated net sales stood at Rs 873.84 billion, up 17 per cent from Rs 749.36 billion in FY25. PBIDT rose 32 per cent to Rs 175.98 billion, while PAT increased 36 per cent to Rs 83.05 billion, crossing the Rs 80 billion mark for the first time.

India grey cement volumes reached 42.41 million tonnes in Q4 FY26, up 9.3 per cent year-on-year, with capacity utilisation at 89 per cent. Full-year India grey cement volumes stood at 145 million tonnes. Energy costs declined 3 per cent, aided by a higher green power mix of 43 per cent in Q4.

The company’s domestic grey cement capacity has crossed 200 MTPA, reaching 200.1 MTPA, while global capacity stands at 205.5 MTPA. UltraTech also recommended a special dividend of Rs 2.40 billion per share value basis equivalent to Rs 240.

Concrete

Towards Mega Batching

Optimised batching can drive overall efficiencies in large projects.

Published

5 days ago

April 28, 2026

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India’s pace of infrastructure development is pushing the construction sector to work at a significantly higher scale than previously. Tight deadlines necessitate eliminating concreting delays, especially in large and mega projects, which, in turn, imply installing the right batching plant and ensuring batching is efficient. CW explores these steps as well as the gaps in India’s batching plant market.

Choose well

Large-scale infrastructure and building projects typically involve concrete consumption exceeding 30,000-50,000 cum per annum or demand continuous, high-volume pours within compressed timelines, according to Rahul R Wadhai, DGM – Quality, Tata Projects.

Considering the daily need for concrete, “large-scale concreting involves pouring more than 1,000–2,000 cum per day while mega projects involve more than 3,000 cum per day,” says Satish R Vachhani, Advanced Concrete & Construction Consultant…

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Concrete

Andhra Offers Discom Licences To Private Firms Outside Power Sector

Policy allows firms over 300 MW to seek distribution licences

Published

6 days ago

April 27, 2026

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The Andhra Pradesh government will allow private firms that require more than 300 megawatt (MW) of power to apply for distribution licences, making the state the first to extend such licences beyond the power sector. The policy targets information technology, pharmaceuticals, steel and data centres and aims to reduce reliance on state utilities as demand rises for artificial intelligence infrastructure.

Approved applicants will be able to procure electricity directly from generators through power purchase agreements, a change officials said will create more competitive tariffs and reduce supply risk. Licence holders will use the Andhra Pradesh Transmission Company (APTRANSCO) network on payment of charges and will not need a separate distribution network initially.

Licences will be granted under the Electricity Act, 2003 framework, with the Central and State electricity regulators retaining authority over terms and approvals. The recent Electricity (Amendment) Bill, 2025 sought to lower entry barriers, enable network sharing and encourage competition, while the state commission will set floor and ceiling tariffs where multiple discoms operate.

Industry players and original equipment manufacturers welcomed the policy, saying competitive supply is vital for large data centre investments. Major projects and partnerships such as those involving Adani and Google, Brookfield and Reliance, and Meta and Sify Technologies are expected to benefit as capacity expands in the state.

Analysts noted India’s data centre capacity is forecast to reach 10 gigawatts (GW) by 2030 and cited International Energy Agency estimates that global data centre electricity consumption could approach 945 terawatt hours by the same year. A one GW data centre needs an equivalent power allocation and one point five times the water, which authorities equated to 150 billion litres (150 bn litres).

Advisers warned that distribution licences will require close regulation and monitoring to prevent misuse and to ensure tariffs and supply obligations are met. Officials said the policy aims to balance investor requirements with regulatory oversight and could serve as a model for other states.