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Premiumisation is the Future of Cement

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Sushrut Pant, Head of Marketing, Shree Cement, discusses the changing trends in the positioning of cement due to its exponentially rising importance in the nation building.

A towering skyscraper pierces Mumbai’s skyline; its foundation rooted in cement chosen for one reason: durability. Cement has always been the backbone of infrastructure development, but for too long, it’s been treated as a basic commodity—bought and sold on price alone. But that’s changing.
As India’s infrastructure and housing sectors surge, the shift toward premiumisation—building branded, high-value products—is becoming key to sustainable growth. Today, the cement industry is not just about price. It’s about delivering quality, building trust, standing out in a crowded market, and creating value that lasts.
In FY25, India’s cement industry had an installed capacity of 668 million tonnes, with production close to 470 million tonnes. Demand is set to climb to 450.78 million tonnes by FY27, driven by a 2025-26 infrastructure budget of over `11 lakh crore. With over 210 large cement plants in operation, price wars have squeezed margins. Premiumisation offers a way out. In 2024, premium cement products—priced 10 per cent to 15 per cent higher than standard grades—saw a 25 per cent demand spike in urban markets. Stakeholders across the value chain—from contractors and developers to homeowners—are choosing reliability in projects where failure isn’t an option.
So, what does premiumisation look like? Premiumisation is a combination of high performance, value addition and emotional rewards. It’s high-strength cement for skyscrapers, rapid-setting mixes for urgent builds, and green blends cutting CO2 emissions by up to 30 per cent. These products are developed to meet specific needs, backed by rigorous testing and certifications. A 2024 study, for example, highlighted the consistent performance of premium cements used in mega projects like the Mumbai-Ahmedabad Bullet Train Corridor, where 20,000 cubic meters were consumed daily—helping reduce rework costs by 12 per cent.
This reliability builds trust, turning one-time buyers into loyal customers. At the core of this transformation is branding. A bag of cement is no longer just a product—it’s a promise. As India’s real estate market heads toward a `112 lakh crore (US$1.3 trillion) valuation by FY34, strong brand identity will be a key differentiator. Marketing plays a vital role—telling stories on how a branded cement is able to realise the dream of a small-town Independent Home Builder (IHB). When campaigns spotlight a cement’s role in metro lines or sustainable housing, they create emotional resonance, instil confidence and trust. Customers begin to see the brand as a partner, not just a supplier.
Sustainability is another major driver. With India targeting net-zero emissions by 2070, the cement industry faces pressure to reduce its environmental footprint. In 2024, green cement adoption grew 15 per cent in urban areas, led by blended products using industrial by-products. These cements could save up to 300 kg of CO2 per tonne compared to traditional mixes. Communicating these benefits—using real data and practical examples—strengthens credibility with eco-conscious consumers, from architects to policymakers.
One more important aspect in premiumisation is about solving consumers’ problems and offering higher order value adds beyond the basic benefits. For instance, seepage is a big unsolved problem for any home owner and water-repellent segment is the most premium and fastest growing cement segment. Slag cement is another example where it commands a higher pricing power due to added benefit of providing a brighter finish.
Premiumisation, however, doesn’t come easy. It demands sustained investment in research, stringent quality control, and ongoing customer education. But the rewards—higher margins, stronger brand loyalty, and a competitive edge—are worth it. In 2025, with the cement industry anticipating 8 per cent sales growth, those who position cement as a branded, value-driven product will lead the way. They are not just selling cement—they’re building trust, shaping progress, and driving sustainable growth in a market ready for change.
There was a time when cement was viewed strictly as a commodity—sold in bulk, priced competitively and chosen mainly by institutional buyers focused on cost. Branding, in this environment, had limited space to flourish. But over the past decade, the sector has seen a quiet transformation. Cement is no longer just a grey powder sold by the bag. It’s becoming a branded product that consumers recognise, trust, and choose deliberately.
What’s behind this shift? A key factor is the rise of individual home builders and retail consumers. Unlike bulk buyers, these customers are personally invested in their decisions. They ask not just how much, but why this brand. They look for quality, consistency, service reliability, and increasingly, sustainability.
In response, marketing strategies have evolved. The focus has moved beyond pricing or distribution to understanding the end consumer—where they live, what they value, and how they engage. This has driven integrated media strategies that blend traditional channels with digital outreach, on-ground activations, and personalised content experiences. Today, messaging is crafted not just to inform, but to connect.
An emotional hook often tips the scale. Recent industry campaigns have leaned into cultural cues, celebrity associations and values like trust and resilience to build brand recall. Such branding creates affinity—transforming what was once a functional purchase into a considered choice.
Technology is also playing a transformative role in how cement is produced, marketed, and delivered. From advanced analytics and AI-based modelling to digital tracking and real-time logistics, companies are ensuring quality, improving efficiency, and enhancing customer experience. Brands that lead in these areas are setting benchmarks—earning both trust and a stronger reputation.
Ultimately, the journey from commodity to brand in cement is more than a marketing story—it’s a structural evolution. It reflects the changing landscape of construction and housing, where every material is a choice that signals quality, intent, and responsibility. Cement, once selected solely for its price, is now judged by what it stands for. And in that lies both the challenge and the opportunity for every player in the industry.

Concrete

Adani Cement to Deploy World’s First Commercial RDH System

Adani Cement and Coolbrook partner to pilot RDH tech for low-carbon cement.

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Adani Cement and Coolbrook have announced a landmark agreement to install the world’s first commercial RotoDynamic Heater (RDH) system at Adani’s Boyareddypalli Integrated Cement Plant in Andhra Pradesh. The initiative aims to sharply reduce carbon emissions associated with cement production.
This marks the first industrial-scale deployment of Coolbrook’s RDH technology, which will decarbonise the calcination phase — the most fossil fuel-intensive stage of cement manufacturing. The RDH system will generate clean, electrified heat to dry and improve the efficiency of alternative fuels, reducing dependence on conventional fossil sources.
According to Adani, the installation is expected to eliminate around 60,000 tonnes of carbon emissions annually, with the potential to scale up tenfold as the technology is expanded. The system will be powered entirely by renewable energy sourced from Adani Cement’s own portfolio, demonstrating the feasibility of producing industrial heat without emissions and strengthening India’s position as a hub for clean cement technologies.
The partnership also includes a roadmap to deploy RotoDynamic Technology across additional Adani Cement sites, with at least five more projects planned over the next two years. The first-generation RDH will provide hot gases at approximately 1000°C, enabling more efficient use of alternative fuels.
Adani Cement’s wider sustainability strategy targets raising the share of alternative fuels and resources to 30 per cent and increasing green power use to 60 per cent by FY28. The RDH deployment supports the company’s Science Based Targets initiative (SBTi)-validated commitment to achieve net-zero emissions by 2050.  

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Birla Corporation Q2 EBITDA Surges 71%, Net Profit at Rs 90 Crore

Stronger margins and premium cement sales boost quarterly performance.

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Birla Corporation Limited reported a consolidated EBITDA of Rs 3320 million for the September quarter of FY26, a 71 per cent increase over the same period last year, driven by improved profitability in both its Cement and Jute divisions. The company posted a consolidated net profit of Rs 900 million, reversing a loss of Rs 250 million in the corresponding quarter last year.
Consolidated revenue stood at Rs 22330 million, marking a 13 per cent year-on-year growth as cement sales volumes rose 7 per cent to 4.2 million tonnes. Despite subdued cement demand, weak pricing, and rainfall disruptions, Birla Jute Mills staged a turnaround during the quarter.
Premium cement continued to drive performance, accounting for 60 per cent of total trade sales. The flagship brand Perfect Plus recorded 20 per cent growth, while Unique Plus rose 28 per cent year-on-year. Sales through the trade channel reached 79 per cent, up from 71 per cent a year earlier, while blended cement sales grew 14 per cent, forming 89 per cent of total cement sales. Madhya Pradesh and Rajasthan remained key growth markets with 7–11 per cent volume gains.
EBITDA per tonne improved 54 per cent to Rs 712, with operating margins expanding to 14.7 per cent from 9.8 per cent last year, supported by efficiency gains and cost reduction measures.
Sandip Ghose, Managing Director and CEO, said, “The Company was able to overcome headwinds from multiple directions to deliver a resilient performance, which boosts confidence in the robustness of our strategies.”
The company expects cement demand to strengthen in the December quarter, supported by government infrastructure spending and rural housing demand. Growth is anticipated mainly from northern and western India, while southern and eastern regions are expected to face continued supply pressures.

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Ambuja Cements Delivers Strong Q2 FY26 Performance Driven by R&D and Efficiency

Company raises FY28 capacity target to 155 MTPA with focus on cost optimisation and AI integration

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Ambuja Cements, part of the diversified Adani Portfolio and the world’s ninth-largest building materials solutions company, has reported a robust performance for Q2 FY26. The company’s strong results were driven by market share gains, R&D-led premium cement products, and continued efficiency improvements.
Vinod Bahety, Whole-Time Director and CEO, Ambuja Cements, said, “This quarter has been noteworthy for the cement industry. Despite headwinds from prolonged monsoons, the sector stands to benefit from several favourable developments, including GST 2.0 reforms, the Carbon Credit Trading Scheme (CCTS), and the withdrawal of coal cess. Our capacity expansion is well timed to capitalise on this positive momentum.”
Ambuja has increased its FY28 capacity target by 15 MTPA — from 140 MTPA to 155 MTPA — through debottlenecking initiatives that will come at a lower capital expenditure of USD 48 per metric tonne. The company also plans to enhance utilisation of its existing 107 MTPA capacity by 3 per cent through logistics infrastructure improvements.
To strengthen its product mix, Ambuja will install 13 blenders across its plants over the next 12 months to optimise production and increase the share of premium cement, improving realisations. These operational enhancements have already contributed to a 5 per cent reduction in cost of sales year-on-year, resulting in an EBITDA of Rs 1,060 per metric tonne and a PMT EBITDA of approximately Rs 1,189.
Looking ahead, the company remains optimistic about achieving double-digit revenue growth and maintaining four-digit PMT EBITDA through FY26. Ambuja aims to reduce total cost to Rs 4,000 per metric tonne by the end of FY26 and further by 5 per cent annually to reach Rs 3,650 per metric tonne by FY28.
Bahety added, “Our Cement Intelligent Network Operations Centre (CiNOC) will bring a paradigm shift to our business operations. Artificial Intelligence will run deep within our enterprise, driving efficiency, productivity, and enhanced stakeholder engagement across the value chain.”

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