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Transforming perception

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We are witnessing the journey of cement from commodity to brand, and there have been several facets of this journey. One important aspect is packaging. The primary objective of packaging is to contain, protect and preserve a product as well as support its handling and final presentation. It is an integral part of product planning and promotion. Packaging refers to the process and design, evaluation and production of packages.

Functions of Packaging

  • Promotion and selling of the product: To create a brand identity the packaging needs to be attractive, colourful, and visually appealing packages have promotional value. A well designed package is a powerful selling device because it helps the product stand out from the competitors.

  • Defining product identity: It is sometimes used to promote an image such as prestige, convenience or status. Can be a crucial part of marketing strategy particularly in advertising.

  • Providing information: Packages give directions for product use, information about guarantees, production related information like week of manufacturing, BIS Specification number, dos and don??s, etc. It also provides place and address of the manufacturer. Few of the marketing professionals are of the view that the bag not only should be attractive in looks but also should communicate with the customer. The colour and design should be disruptive, yet should reflect positivity.

  • Protecting the product: For cement it is important that the packaging should be durable and strong enough so that there is no tampering or spoiling during shipping and delivery of the packages. Being a hygroscopic material, it can easily attract moisture.

It is interesting to see the cement bag?? journey from plant to the end user; it reveals some areas of stress. Like oozing bags, due to iron hooks used by loaders, it has been a chronic problem in handling a cement bag consignment. At majority of places in our country like railway yards, truck loading bays and unloading in ware houses, at the consumption points, iron hooks are rampantly used by the labourers doing the job manually. Due to political interference in the job, the practice is continuing unabated. The quality of bags is another issue for bag bursting. The problem can be eased only by automating the process.

Cement packaging is conventionally done in bags and sacks. These bags and sacks can be made out of paper or plastic, jute. In India for long time we were using jute bag in spite the consumer disliked it but in order to support the jute industry a decision was taken to use jute bags. Then came the age of HDPE and PP bags. Paper as a packaging material was too expensive for us. But paper as a packaging material is favoured in European countries. In few micro markets of our country, paper bags are preferred. Paper bags are usually heavy-duty bags and sacks that are manufactured using multiple layers of paper and can be coated with layers of plastic films to provide a barrier against moisture. Paper bags did not get popular in our country mainly due to the methodology used in handling of paper bags.

The bag handlers always charge more rates for paper bags. However, woven and nonwoven plastic bags can also be employed for cement packaging. These bags can hold up to 50 kg of cement without damage. Bags and sacks used for cement packaging also offer printing area on its surface for branding and promotion of the product. Cement producers never thought of producing bags for their use until the recent past because it has been very convenient to source such a low cost material from outside as and when required. Normal PP bag costs around Rs 9 to 11 per piece and a laminated PP bag costs nearly Rs 15 per piece.

For cement companies, it is backward integration to produce bags for captive use. We suggest our readers to go through the interview of M Ravinder Reddy, Head of Marketing ??Vicat Group (India) and Director Marketing of Bharathi Cement, in the same issue for more information.

Starlinger from Austria in Europe is one of the notable companies in production of machinery for sacks, packaging fabrics and technical textiles woven from plastic tapes. The company has a strong presence in India. Its product AD*STAR cement packaging is a well-known sack concept which has been adopted across the world. The main advantage of using AD*STAR cement sacks is reduction in the bag breakage/ bursting.

What is AD*STAR?

??D*STAR ??is a trademark that can be used as a packaging solution only for the bags manufactured by Starlinger’s end-to-end machinery. Off late many cement manufacturers in India have been using AD*STAR packaging solutions for packing of premium cements in order to differentiate from normal cement.

Since it involves use of technology few cement companies thought that it would be advisable to produce the bags rather than to source these from outside. Considering the quantum of usage it has been felt necessary to produce the bags close to the cement manufacturing unit. Some ingredients of the bags are occasionally imported if not locally available. Various studies show that the use of high-grade virgin polypropylene for fabric production and the tight sealing of the sack bottom and top ensure low breakage even during rough handling, dropping, or after contact with water.

The studies in terms of global warming in use of bags show different results in different countries. E.g. the production phase of AD*STAR sacks have less impact on global warming than paper bags in Saudi Arabia because transportation contributes more to the global warming since the raw materials for the paper sacks have to be shipped which is not the case with AD*STAR bags. In short AD*STAR sacks show that it is environmentally friendlier packaging in terms of acidification potential (acid rain), ozone depletion potential, photochemical ozone creation potential (causes summer smog), as well as energy and fresh water consumption.

Regional preference

The geographical analysis of the cement packaging market has revealed that demand for cement packaging solutions is likely to be fueled by developing countries of the Asia Pacific and the Middle East & Africa. In countries such as India and China, polypropylene cement packaging is used most prominently. The material used for making cement bags is usually recycled, and bags are sewn by hand operated machines at large factories. Furthermore, China is one of the leading manufacturers of cement and has a high impact on the dynamics of the cement packaging industry.

Also, the Middle East region has witnessed the establishment of several new cement plants and revamped the existing ones, to cater to the growing demand for construction material. Hence, the sales of cement packaging solutions are growing at present. The market in the Middle East is turning to PP laminated bags from paper.

Paper v/s plastic

For years, there has been a debate on whether paper packaging is better for the environment than plastic. While the general belief is that paper products are more environmentally friendly because they are made from a renewable source, but the argument that paper is more sustainable than plastic is not so straight forward. Some of these misconceptions are due to not considering the entire life cycle of the bag. It is not a simple case of looking at how bags are being disposed of or how long they take to degrade; other aspects also have an impact on the environment.

While plastic packaging can have a bad reputation, banning them and moving solely to paper products could have other adverse effects. In the end, we need to remember the way we use these products to make the greatest difference, not just the bag itself! The most important decision we can make is to choose packaging that doesn?? end in landfills when it doesn?? have to and to select biodegradable options when recyclable options don?? exist.

HDPE and PP

HDPE stands for high-density polyethylene, is a versatile plastic known for its unique benefits. It is commonly used to create containers like milk and water jugs, water tanks etc. However, HDPE can remain flexible as well. For example, plastic bags. Long-lasting, weather resistant, and capable of carrying weight ??whether rigid or flexible.

PP, which stands for polypropylene plastic, is a type of plastic that is specifically known for its semi-crystalline nature. Additionally, PP is a lighter material compared to other types of plastic like HDPE. This makes it an ideal alternative across a variety of commercial applications. Polypropylene plastic is found in everything from ropes to carpets and clothing. It?? relatively affordable commercial material. Presently cement industry uses PP bags.

Additionally, PP is a lighter material compared to other types of plastic. This makes it an ideal alternative across a variety of commercial applications.

Cement packaging market: Key players

Apart from Starlinger from Austria the other key players operating in the global cement packaging market are Mondi Plc, LC Packaging International BV, Gascogne SA, Bischof + Klein SE & Co. KG, Uflex, Taurus Packaging, Unisun packaging, Gempack, Volgopromtrans LLC, ToolAsian Polysacks, Edna Group, and Rosenflex UK.

Concrete

Jefferies’ Optimism Fuels Cement Stock Rally

The industry is aiming price hikes of Rs 10-15 per bag in December.

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Cement stocks surged over 5% on Monday, driven by Jefferies’ positive outlook on demand recovery, supported by increased government capital expenditure and favourable price trends.

JK Cement led the rally with a 5.3% jump, while UltraTech Cement rose 3.82%, making it the top performer on the Nifty 50. Dalmia Bharat and Grasim Industries gained over 3% each, with Shree Cement and Ambuja Cement adding 2.77% and 1.32%, respectively.

“Cement stocks have been consolidating without significant upward movement for over a year,” noted Vikas Jain, head of research at Reliance Securities. “The Jefferies report with positive price feedback prompted a revaluation of these stocks today.”

According to Jefferies, cement prices were stable in November, with earlier declines bottoming out. The industry is now targeting price hikes of Rs 10-15 per bag in December.

The brokerage highlighted moderate demand growth in October and November, with recovery expected to strengthen in the fourth quarter, supported by a revival in government infrastructure spending.
Analysts are optimistic about a stronger recovery in the latter half of FY25, driven by anticipated increases in government investments in infrastructure projects.
(ET)

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Concrete

Steel Ministry Proposes 25% Safeguard Duty on Steel Imports

The duty aims to counter the impact of rising low-cost steel imports.

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The Ministry of Steel has proposed a 25% safeguard duty on certain steel imports to address concerns raised by domestic producers. The proposal emerged during a meeting between Union Steel Minister H.D. Kumaraswamy and Commerce and Industry Minister Piyush Goyal in New Delhi, attended by senior officials and executives from leading steel companies like SAIL, Tata Steel, JSW Steel, and AMNS India.

Following the meeting, Goyal highlighted on X the importance of steel and metallurgical coke industries in India’s development, emphasising discussions on boosting production, improving quality, and enhancing global competitiveness. Kumaraswamy echoed the sentiment, pledging collaboration between ministries to create a business-friendly environment for domestic steelmakers.

The safeguard duty proposal aims to counter the impact of rising low-cost steel imports, particularly from free trade agreement (FTA) nations. Steel Secretary Sandeep Poundrik noted that 62% of steel imports currently enter at zero duty under FTAs, with imports rising to 5.51 million tonnes (MT) during April-September 2024-25, compared to 3.66 MT in the same period last year. Imports from China surged significantly, reaching 1.85 MT, up from 1.02 MT a year ago.

Industry experts, including think tank GTRI, have raised concerns about FTAs, highlighting cases where foreign producers partner with Indian firms to re-import steel at concessional rates. GTRI founder Ajay Srivastava also pointed to challenges like port delays and regulatory hurdles, which strain over 10,000 steel user units in India.

The government’s proposal reflects its commitment to supporting the domestic steel industry while addressing trade imbalances and promoting a self-reliant manufacturing sector.

(ET)

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Concrete

India Imposes Anti-Dumping Duty on Solar Panel Aluminium Frames

Move boosts domestic aluminium industry, curbs low-cost imports

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The Indian government has introduced anti-dumping duties on anodized aluminium frames for solar panels and modules imported from China, a move hailed by the Aluminium Association of India (AAI) as a significant step toward fostering a self-reliant aluminium sector.

The duties, effective for five years, aim to counter the influx of low-cost imports that have hindered domestic manufacturing. According to the Ministry of Finance, Chinese dumping has limited India’s ability to develop local production capabilities.

Ahead of Budget 2025, the aluminium industry has urged the government to introduce stronger trade protections. Key demands include raising import duties on primary and downstream aluminium products from 7.5% to 10% and imposing a uniform 7.5% duty on aluminium scrap to curb the influx of low-quality imports.

India’s heavy reliance on aluminium imports, which now account for 54% of the country’s demand, has resulted in an annual foreign exchange outflow of Rupees 562.91 billion. Scrap imports, doubling over the last decade, have surged to 1,825 KT in FY25, primarily sourced from China, the Middle East, the US, and the UK.

The AAI noted that while advanced economies like the US and China impose strict tariffs and restrictions to protect their aluminium industries, India has become the largest importer of aluminium scrap globally. This trend undermines local producers, who are urging robust measures to enhance the domestic aluminium ecosystem.

With India’s aluminium demand projected to reach 10 million tonnes by 2030, industry leaders emphasize the need for stronger policies to support local production and drive investments in capacity expansion. The anti-dumping duties on solar panel components, they say, are a vital first step in building a sustainable and competitive aluminium sector.

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