Economy & Market

Logistics is the biggest cost component in the whole chain of RMC business.

Published

4 years ago

October 14, 2021

admin

More than 80 per cent of concrete produced in developed nations is used as ready- mix. In India, however, it is less than nine per cent. What is stopping the RMC market from taking off? ICR interacts with Bankat Mandhania, Director, Ashtech (India), a leading cement and ready- mix concrete manufacturer in the country, to get some insights. Excerpts from the interview.

How is the RMC market performing?

If you talk about growth, yes it is there as more people are realising the advantages of using RMC. Once someone uses RMC, he is bound to be convinced of the advantages. After this, he will be ready to shell out extra for the product since what is gained in return is good service along with a good product. As per sustainability, the business goes on as there is no entry barrier to the RMC sector. Anybody can set up a RMC unit. So it is open to competition. We do not get premium for a brand name. Leading cement companies are out there in the RMC business, but if you see the revenues, they are not making too much money there. But they are there for sure.

Why is the demand for RMC so little in India compared to foreign countries?

Though the demand is less in India, the RMC market is growing. Yes, it is true that in foreign countries today, 90 per cent of the concrete manufactured is sold in RMC form. Here things are a bit different. If you check Indian markets, almost 70 per cent of the cement is sold in bags. That gives you a comparison between the two. Masons and builders here need to be updated and that takes time. But once the builder uses RMC, he understands the advantage. It also requires some volume of work to be done over a period of time. But those into constructing small buildings and two floor apartments are will not go for RMC. Once we start doing sizeable projects, the construction community will experience the benefits of RMC first- hand.

Is the equipment readily available for RMC production?

You have the entire spectrum of manufacturers in India. You have players from Ahmedabad-based companies catering to local markets and foreign multinationals. There is a vast spectrum of RMC equipment to choose from. All the standard equipment is from standard manufacturers worldwide so you are not compromising on quality of equipment for sure. Availability is not a problem, the choice is there, and any type or size is there.

It is said that crushed sand is not as good as natural sand. What is your take on this?

The natural sand that we are talking about is no longer available. There is no river sand anymore in the area of Mumbai. We are using creek sand which is by itself, never recommended. It is as an alkaline material. River sand was used in the British era, ferried from Gujarat. So Marine Drive and everything that is British- built, was all done with river sand. They got it 60 years back to ensure quality construction; there is no river sand as such in India today. Also, in the name of manufactured sand, we are using powder and that is stone dust. For manufactured sand you need a VSI plant, which has come into Mumbai just a few years ago. Pune is more mature in terms of sand use. They are using crushed sand for plasters too. Now crushed sand manufactures here too, have fantastic gradations available with them.

Are we stuck with the minimum grades of concrete?

The grade of concrete depends on the end application. The more challenging the structural demand, the higher the grade of concrete used is. It is wrong to say we cannot do it. M70 is what we used for the JJ flyover about seven years ago. The Bandra-Worli Sea link is made with M60 grade concrete. All Metros have got M60 specified material. So we are able to manufacture a wide range of concrete. The biggest market here is the residential market where buildings are from four floors to 40 floors. M30 grade concrete will satisfy the structural demands of a four- floor building. The higher the building, the higher the grade requirement is. World One (the worldÂ´s tallest residential tower by the Lodha Group) is using M90; they are producing it and they are doing a good job. We have variations in grade available to suit our requirements and we also have a good knowledge base.

Is skilled workforce available adequately?

We are definitely falling short of good quality manpower. There is a shortage of quality control people, too. We are nowhere near the international standards of an available workforce in terms of quality and in sufficient quantity. In India, people have little option but to compromise on a lot of things. Although the country sees large numbers of engineers graduating every year, very few of them are employable. Whether we can handle this type of concrete demand is a question mark. You have enough civil engineers but are they really employable?

How do you deal with it? Do you have a separate training module for them?

We take two to three civil engineers every year and we mould them. You have to nurture them. Employability or job requirement is something you have to pay attention to and you have to take that effort and make sure that they understand and learn the industryÂ´s requirements. Then, a couple of years down the line, you can give them additional responsibilities. We take fresh engineers every year. When we see candidates with good potential, we create opportunities for them and ensure that they stay with us. Skill shortage is an issue in RMC.

What are the other challenges encountered in the RMC sector?

Logistics is the biggest cost component in the whole chain. The transit mixer costs almost Rs 30 lakh and it can deliver only that much quantity in a day. The stronger the asset base, the better the company, and it can be relied upon by the consumer as a supplier. It works both ways. You have to ensure that the deliveries are made on time and that the material is poured as per schedule irrespective of hassles such as traffic or roadblocks. The system must be robust enough to absorb and respond to any issue that can pop up on the fly.

So how do you manage this?

We have 74 transit mixers and 24 pumps. We follow a process of sending a questionnaire to our consumer that asks for all the details including the peak requirement for the material. Based on this, we design equipment required for the work. That determines if there are going to be two slabs every day for one site, so a minimum of two pumps and seven transit mixers are required, and that too, if the site is close. But if the same site is far away, I will need 12 transit mixers. So having a complete understanding of the customer`s requirement and a solid contingency plan in place is key in this business.

Concrete

Budget 2026–27 infra thrust and CCUS outlay to lift cement sector outlook

Published

1 day ago

February 2, 2026

admin

Higher capex, city-led growth and CCUS funding improve demand visibility and decarbonisation prospects for cement

Mumbai

Cement manufacturers have welcomed the Union Budget 2026–27’s strong infrastructure thrust, with public capital expenditure increased to Rs 12.2 trillion, saying it reinforces infrastructure as the central engine of economic growth and strengthens medium-term prospects for the cement sector. In a statement, the Cement Manufacturers’ Association (CMA) has welcomed the Union budget 2026-27 for reinforcing the ambitions for the nation’s growth balancing the aspirations of the people through inclusivity inspired by the vision of Narendra Modi, Prime Minister of India, for a Viksit Bharat by 2047 and Atmanirbharta.

The budget underscores India’s steady economic trajectory over the past 12 years, marked by fiscal discipline, sustained growth and moderate inflation, and offers strong demand visibility for infrastructure linked sectors such as cement.

The Budget’s strong infrastructure push, with public capital expenditure rising from Rs 11.2 trillion in fiscal year 2025–26 to Rs 12.2 trillion in fiscal year 2026–27, recognises infrastructure as the primary anchor for economic growth creating positive prospects for the Indian cement industry and improving long term visibility for the cement sector. The emphasis on Tier 2 and Tier 3 cities with populations above 5 lakh and the creation of City Economic Regions (CERs) with an allocation of Rs 50 billion per CER over five years, should accelerate construction activity across housing, transport and urban services, supporting broad based cement consumption.

Logistics and connectivity measures announced in the budget are particularly significant for the cement industry. The announcement of new dedicated freight corridors, the operationalisation of 20 additional National Waterways over the next five years, the launch of the Coastal Cargo Promotion Scheme to raise the modal share of waterways and coastal shipping from 6 per cent to 12 per cent by 2047, and the development of ship repair ecosystems should enhance multimodal freight efficiency, reduce logistics costs and improve the sector’s carbon footprint. The announcement of seven high speed rail corridors as growth corridors can be expected to further stimulate regional development and construction demand.

Commenting on the budget, Parth Jindal, President, Cement Manufacturers’ Association (CMA), said, “As India advances towards a Viksit Bharat, the three kartavya articulated in the Union Budget provide a clear context for the Nation’s growth and aspirations, combining economic momentum with capacity building and inclusive progress. The Cement Manufacturers’ Association (CMA) appreciates the Union Budget 2026-27 for the continued emphasis on manufacturing competitiveness, urban development and infrastructure modernisation, supported by over 350 reforms spanning GST simplification, labour codes, quality control rationalisation and coordinated deregulation with States. These reforms, alongside the Budget’s focus on Youth Power and domestic manufacturing capacity under Atmanirbharta, stand to strengthen the investment environment for capital intensive sectors such as Cement. The Union Budget 2026-27 reflects the Government’s focus on infrastructure led development emerging as a structural pillar of India’s growth strategy.”

He added, “The Rs 200 billion CCUS outlay for various sectors, including Cement, fundamentally alters the decarbonisation landscape for India’s emissions intensive industries. CCUS is a significant enabler for large scale decarbonisation of industries such as Cement and this intervention directly addresses the technology and cost requirements of the Cement sector in context. The Cement Industry, fully aligned with the Government of India’s Net Zero commitment by 2070, views this support as critical to enabling the adoption and scale up of CCUS technologies while continuing to meet the Country’s long term infrastructure needs.”

Dr Raghavpat Singhania, Vice President, CMA, said, “The government’s sustained infrastructure push supports employment, regional development and stronger local supply chains. Cement manufacturing clusters act as economic anchors across regions, generating livelihoods in construction, logistics and allied sectors. The budget’s focus on inclusive growth, execution and system level enablers creates a supportive environment for responsible and efficient expansion offering opportunities for economic growth and lending momentum to the cement sector. The increase in public capex to Rs 12.2 trillion, the focus on Tier 2 and Tier 3 cities, and the creation of City Economic Regions stand to strengthen the growth of the cement sector. We welcome the budget’s emphasis on tourism, cultural and social infrastructure, which should broaden construction activity across regions. Investments in tourism facilities, heritage and Buddhist circuits, regional connectivity in Purvodaya and North Eastern States, and the strengthening of emergency and trauma care infrastructure in district hospitals reinforce the cement sector’s role in enabling inclusive growth.”

CMA also noted the Government’s continued commitment to fiscal discipline, with the fiscal deficit estimated at 4.3 per cent of GDP in FY27, reinforcing macroeconomic stability and investor confidence.

Concrete

JK Cement Crosses 31 MTPA Capacity with Commissioning of Buxar Plant in Bihar

Published

4 days ago

January 30, 2026

admin

JK Cement has commissioned a 3 MTPA Grey Cement plant in Buxar, Bihar, taking its total capacity to 31.26 MTPA and placing it among India’s top five grey cement producers. The ₹500 crore investment strengthens the company’s national footprint while supporting Bihar’s infrastructure growth and local economic development.

JK Cement Ltd., one of India’s leading cement manufacturers, has announced the commissioning of its new state-of-the-art Grey Cement plant in Buxar, Bihar, marking a significant milestone in the company’s growth trajectory. With the commissioning of this facility, JK Cement’s total production capacity has increased to 31.26 million tonnes per annum (MTPA), enabling the company to cross the 30 MTPA threshold.

This expansion positions JK Cement among the top five Grey Cement manufacturers in India, strengthening its national footprint and reinforcing its long-term growth strategy.

Commenting on the strategic achievement, Dr Raghavpat Singhania, Managing Director, JK Cement, said, “Crossing 31 MTPA is a significant turning point in JK Cement’s expansion and demonstrates the scale, resilience, and aspirations of our company. In addition to making a significant contribution to Bihar’s development vision, the commissioning of our Buxar plant represents a strategic step towards expanding our national footprint. We are committed to developing top-notch manufacturing capabilities that boost India’s infrastructure development and generate long-term benefits for local communities.”

The Buxar plant has a capacity of 3 MTPA and is spread across 100 acres. Strategically located on the Patna–Buxar highway, the facility enables faster and more efficient distribution across Bihar and adjoining regions. While JK Cement entered the Bihar market last year through supplies from its Prayagraj plant, the Buxar facility will now allow the company to serve the state locally, with deliveries possible within 24 hours across Bihar.

Sharing his views on the expansion, Madhavkrishna Singhania, Joint Managing Director & CEO, JK Cement, said, “JK Cement is now among India’s top five producers of grey cement after the Buxar plant commissioning. Our capacity to serve Bihar locally, more effectively, and on a larger scale is strengthened by this facility. Although we had already entered the Bihar market last year using Prayagraj supplies, local manufacturing now enables us to be nearer to our clients and significantly raise service standards throughout the state. Buxar places us at the center of this chance to promote sustainable growth for both the company and the region in Bihar, a high-growth market with strong infrastructure momentum.”

The new facility represents a strategic step in supporting Bihar’s development vision by ensuring faster access to superior quality cement for infrastructure, housing, and commercial projects. JK Cement has invested approximately ₹500 crore in the project. Construction began in March 2025, and commercial production commenced on January 29, 2026.

In addition to strengthening JK Cement’s regional presence, the Buxar plant is expected to generate significant direct and indirect employment opportunities and attract ancillary industries, thereby contributing to the local economy and the broader industrial ecosystem.

Economy & Market

From Vision to Action: Fornnax Global Growth Strategy for 2026

Published

2 weeks ago

January 19, 2026

admin

Jignesh Kundaria, Director & CEO, Fornnax Recycling Technology

As 2026 begins, Fornnax is accelerating its global growth through strategic expansion, large-scale export-led installations, and technology-driven innovation across multiple recycling streams. Backed by manufacturing scale-up and a strong people-first culture, the company aims to lead sustainable, high-capacity recycling solutions worldwide.

As 2026 begins, Fornnax stands at a pivotal stage in its growth journey. Over the past few years, the company has built a strong foundation rooted in engineering excellence, innovation, and a firm commitment to sustainable recycling. The focus ahead is clear: to grow faster, stronger, and on a truly global scale.

“Our 2026 strategy is driven by four key priorities,” explains Mr. Jignesh Kundaria, Director & CEO of Fornnax.

First, Global Expansion

We will strengthen our presence in major markets such as Europe, Australia, and the GCC, while continuing to grow across our existing regions. By aligning with local regulations and customer requirements, we aim to establish ourselves as a trusted global partner for advanced recycling solutions.

A major milestone in this journey will be export-led global installations. In 2026, we will commission Europe’s highest-capacity shredding line, reinforcing our leadership in high-capacity recycling solutions.

Second, Product Innovation and Technology Leadership

Innovation remains at the heart of our vision to become a global leader in recycling technology by 2030. Our focus is on developing solutions that are state-of-the-art, economical, efficient, reliable, and environmentally responsible.

Building on a decade-long legacy in tyre recycling, we have expanded our portfolio into new recycling applications, including municipal solid waste (MSW), e-waste, cable, and aluminium recycling. This diversification has already created strong momentum across the industry, marked by key milestones scheduled to become operational this year, such as:

Installation of India’s largest e-waste and cable recycling line.
Commissioning of a high-capacity MSW RDF recycling line.

“Sustainable growth must be scalable and profitable,” emphasizes Mr. Kundaria. In 2026, Fornnax will complete Phase One of our capacity expansion by establishing the world’s largest shredding equipment manufacturing facility. This 23-acre manufacturing unit, scheduled for completion in July 2026, will significantly enhance our production capability and global delivery capacity.

Alongside this, we will continue to improve efficiency across manufacturing, supply chain, and service operations, while strengthening our service network across India, Australia, and Europe to ensure faster and more reliable customer support.

Finally: People and Culture

“People remain the foundation of Fornnax’s success. We will continue to invest in talent, leadership development, and a culture built on ownership, collaboration, and continuous improvement,” states Mr. Kundaria.

With a strong commitment to sustainability in everything we do, our ambition is not only to grow our business, but also to actively support the circular economy and contribute to a cleaner, more sustainable future.

Guided by a shared vision and disciplined execution, 2026 is set to be a defining year for us, driven by innovation across diverse recycling applications, large-scale global installations, and manufacturing excellence.