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Customised Cement Additives

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A combined understanding of particle size evolution during grinding and chemical interactions during cement hydration can be used to develop high performance cement additives. This customisation approach ensures that cement plants maximise efficiency while delivering superior performing products to their customers.

Portland Pozzolan Cements (PPCs), in which part of the Portland cement clinker has been substituted by fly ash, are well established in India with clinker replacement levels often being greater than 30 per cent. This high level of substitution poses a challenge for the cement plant during grinding as well as in ensuring that the final performance of the PPC meets the requirements of customers. Consequently, many cement plants are turning towards customised cement additives to ensure efficiency in the grinding process while enhancing the cement performance.

Particle Size Distribution
PPCs are typically produced by the co-grinding of the clinker, fly ash and gypsum in a ball mill (with or without roller press) or vertical roller mill. This range of grinding technologies combined with the significant differences in the hardness of the clinker and fly ash can result in large variations in the particle size distribution of the produced cement, which consequently impact the performance.

A significant amount of research has been published which demonstrate the impact that the different particle size fractions have on cement strength performance in both ordinary Portland cement as well as blended cements [1, 2, and 3]. Consequently, it is sensible to question whether it is possible to combine different cement additive raw materials in such a way as to modify the particle size distribution of the finished cement and thereby optimise its performance. It is well known that the particles distributed in the 5 to 30 ?m size fraction contribute the most to the overall strength development. Therefore, if we are able to enrich the amount of particles in this size range, we should be able to increase the compressive strength of the cement.

In our laboratory we prepared a series of PPCs (67 per cent OPC clinker, 29 per cent fly ash and 4 per cent gypsum) while using various cement additive raw materials to improve the grinding efficiency. After 35 minutes of grinding, samples were taken and Blaine surface area, sieve residue and particle size distribution (laser diffraction) measurements were conducted. Some of the key results are presented in the following tables and figures.

After grinding, a Blaine specific surface area of around 350 m2/kg was achieved and the particle size distributions of three cements are given in figure 1. The reference cement ground without an additive and the cement produced with cement raw material, RM 2, are almost identical. This is not surprising as RM 2 was chosen for its chemical effect on the hydration reaction and not for its physical effect on grinding.

However, a significant effect on the particle size distribution can be seen when the cement is ground using cement additive RM 1. The cement additive RM 1 was chosen as it is known to have a positive effect on the particle size distribution during grinding. In the particle size range 5 to 30?m; there is around a 10 per cent increase in the volume of particles for the cement produced with RM 1 compared with the reference cement produced without any additives.

What is more interesting is the change in the volume of particles in the range 5 to 15 ?m as these are known to contribute the most to the early strength development. The difference between the reference cement and the cement produced using additive RM 1 was around 50 per cent. The values for both ranges are given in table 1.

The increase in the 5 to 15 ?m range is particularly important in the case of PPC. In a cement containing fly ash, the early strength is one of the more problematic areas when trying to increase the clinker substitution rate as the fly ash itself contributes almost nothing to the one-day strength. This is because for the pozzolanic reaction to be initiated, it requires the presence of calcium hydroxide, which is released from the hydration of the main clinker minerals. Consequently, if the amount of clinker particles in the 5 to 15 ?m range increases, this will lead to a faster rate of reaction of the main clinker minerals, thereby producing more calcium hydroxide to help boost the reaction with the fly ash.

Cement Hydration and Strength Development
The hydration of cement is a complex process, but for a clinker or cement with the same mineralogical and chemical composition, grinding it finer, i.e., producing a larger number of smaller particles will increase the rate of reaction. Consequently, this will increase the compressive strength of that cement and is essentially the physical effect that we presented in the previous section.

However, many of the cement additive raw materials also impact the hydration process directly by reacting with the various clinker minerals. Depending on the additive used, this interaction will vary and could, for example, accelerate the conversion of ettringite, produced from the hydration of the aluminate phase (C3A) with sulfate, into mono-sulfate or accelerate the rate of hydration of alite (C3S), thereby changing the rate of formation of the calcium silicate hydrates (CSH).

The impact on the hydration process can be evaluated by monitoring the rate of heat evolution for a hydrating PPC and in our case we used a TA Instruments TAM-Air isothermal calorimeter for this purpose. The heat of hydration curves for the two selected cement additive raw materials, RM 1 and RM 2 along with the reference cement, are shown in figure 2.

The curves shown mainly refer to the hydration of alite and there are clear differences between the three cements. Although the initiation of the main hydration reaction as well as the overall shape of the curves are similar for the reference cement and the cement containing RM 1, the area under the curve is larger for the cement with RM 1. The peak height is also greater and together this would tend to suggest that the reaction had progressed to a greater extent over the same time period when the additive RM 1 was used.

In the case of the cement produced with additive RM 2, there is a clear reduction in the alite induction period demonstrated by the fact that the hydration heat starts to rise rapidly around 30 minutes earlier than the reference cement. This decrease in the induction period should also have a positive effect on the strength development. Compressive strength measurements were conducted using the three laboratory cements and the results are provided in table 2. The cement produced with RM 1 shows the best overall performance in terms of strength improvement and this can be attributed to the combination of particle size effects and chemical interactions. Additionally, the strength gain at later ages is quite significant and most likely occurs due to the enhancement of the fly ash reaction.

The use of cement additives affects both the physical nature of a cement, i.e., its particle size distribution and also the chemical reactions that occur during the hydration reaction. These effects are often overlapping and understanding these interactions can lead to the formulation of more effective customised cement additives.

Practical Application
The previous two sections have highlighted some of the more theoretical aspects when using cement additives in a controlled laboratory environment. However, the critical aspect is how well can this information be transferred to a real life application to achieve the desired performance. The following example demonstrates how we have applied this knowledge to optimise the performance of a PPC for one of our customers in India. The cement plant is producing a PPC with around 25 per cent fly ash addition in a ball mill with a capacity of around 210 T/hr.

The key objective for the customer was to increase the mill output and boost the one-day strength performance. Over the trial period, several products and dosages were evaluated in order to determine the optimum product. An overview of some key results from the trial is given in table 3.

All three products that were evaluated in plant scale trials demonstrated a marked improvement in both the mill output and one-day compressive strength when compared to the reference level. This allowed the customer to select the product that was best aligned with their expectations in terms of cost and performance.

Therefore, by developing an understanding of both the physical effects occurring during grinding and the chemical effects during cement hydration, there is no need for a cement plant to compromise on performance, quality or cost. Moving away from standard products towards a customised approach can lead to significant benefits for a cement plant and is an ideal solution, when compromising on cost and performance is not an option.

This article has been authored by Sridhar Gowda and Nilesh Malave, Fosroc Chemicals (India) Pvt Ltd, Fatzunnahar Ngopil, Fosroc International Limited (Malaysia) and Martyn Whitehead, Fosroc Asia Sdn Bhd (Malaysia).

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Price hikes, drop in input costs help cement industry to post positive margins: Care Ratings

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Region-wise,the southern region comprises 35% of the total cement capacity, followed by thenorthern, eastern, western and central region comprising 20%, 18%, 14% and 13%of the capacity, respectively.

The cement industry is expected to post positive margins on decent price hikes over the months, falling raw material prices and marked drop in overall production costs, said an analysis of Care Ratings.

Wholesale and retail prices of cement have increased 11.9% and 12.4%, respectively, in the current financial year. As whole prices have remained elevated in most of the markets in the months of FY20, against the corresponding period of the previous year.

Similarly, electricity and fuel cost have declined 11.9% during 9M FY20 due to drop in crude oil prices. Logistics costs, the biggest cost for cement industry, has also dropped 7.7% (selling and distribution) as the Railways extended the benefit of exemption from busy season surcharge. Moreover, the cost of raw materials, too, declined 5.1% given the price of limestone had fallen 11.3% in the same aforementioned period, the analysis said.

According to Care Ratings, though the overall sales revenue has increased only 1.3%, against 16% growth in the year-ago period, the overall expenditure has declined 3.2% which has benefited the industry largely given the moderation in sales.

Even though FY20 has been subdued in terms of production and demand, the fall in cost of production has still supported the cement industry by clocking in positive margins, the rating agency said.

Cement demand is closely linked to the overall economic growth, particularly the housing and infrastructure sector. The cement sector will be seeing a sharp growth in volumes mainly due to increasing demand from affordable housing and other government infrastructure projects like roads, metros, airports, irrigation.

The government’s newly introduced National Infrastructure Pipeline (NIP), with its target of becoming a $5-trillion economy by 2025, is a detailed road map focused on economic revival through infrastructure development.

The NIP covers a gamut of sectors; rural and urban infrastructure and entails investments of Rs.102 lakh crore to be undertaken by the central government, state governments and the private sector. Of the total projects of the NIP, 42% are under implementation while 19% are under development, 31% are at the conceptual stage and 8% are yet to be classified.

The sectors that will be of focus will be roads, railways, power (renewable and conventional), irrigation and urban infrastructure. These sectors together account for 79% of the proposed investments in six years to 2025. Given the government’s thrust on infrastructure creation, it is likely to benefit the cement industry going forward.

Similarly, the Pradhan Mantri Awaas Yojana, aimed at providing affordable housing, will be a strong driver to lift cement demand. Prices have started correcting Q4 FY20 onwards due to revival in demand of the commodity, the agency said in its analysis.

Industry’s sales revenue has grown at a CAGR of 7.3% during FY15-19 but has grown only 1.3% in the current financial year. Tepid demand throughout the country in the first half of the year has led to the contraction of sales revenue. Fall in the total expenditure of cement firms had aided in improving the operating profit and net profit margins of the industry (OPM was 15.2 during 9M FY19 and NPM was 3.1 during 9M FY19). Interest coverage ratio, too, has improved on an overall basis (ICR was 3.3 during 9M FY19).

According to Cement Manufacturers Association, India accounts for over 8% of the overall global installed capacity. Region-wise, the southern region comprises 35% of the total cement capacity, followed by the northern, eastern, western and central region comprising 20%, 18%, 14% and 13% of the capacity, respectively.

Installed capacity of domestic cement makers has increased at a CAGR of 4.9% during FY16-20. Manufacturers have been able to maintain a capacity utilisation rate above 65% in the past quinquennium. In the current financial year due to the prolonged rains in many parts of the country, the capacity utilisation rate has fallen from 70% during FY19 to 66% currently (YTD).

Source:moneycontrol.com

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Wonder Cement shows journey of cement with new campaign

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The campaign also marks Wonder Cement being the first ever cement brand to enter the world of IGTV…

ETBrandEquity

Cement manufacturing company Wonder Cement, has announced the launch of a digital campaign ‘Har Raah Mein Wonder Hai’. The campaign has been designed specifically to run on platforms such as Instagram, Facebook and YouTube.

#HarRaahMeinWonderHai is a one-minute video, designed and conceptualised by its digital media partner Triature Digital Marketing and Technologies Pvt Ltd. The entire journey of the cement brand from leaving the factory, going through various weather conditions and witnessing the beauty of nature and wonders through the way until it reaches the destination i.e., to the consumer is very intriguing and the brand has tried to showcase the same with the film.

Sanjay Joshi, executive director, Wonder Cement, said, "Cement as a product poses a unique marketing challenge. Most consumers will build their homes once and therefore buy cement once in a lifetime. It is critical for a cement company to connect with their consumers emotionally. As a part of our communication strategy, it is our endeavor to reach out to a large audience of this country through digital. Wonder Cement always a pioneer in digital, with the launch of our IGTV campaign #HarRahMeinWonderHai, is the first brand in the cement category to venture into this space. Through this campaign, we have captured the emotional journey of a cement bag through its own perspective and depicted what it takes to lay the foundation of one’s dreams and turn them into reality."

The story begins with a family performing the bhoomi poojan of their new plot. It is the place where they are investing their life-long earnings; and planning to build a dream house for the family and children. The family believes in the tradition of having a ‘perfect shuruaat’ (perfect beginning) for their future dream house. The video later highlights the process of construction and in sequence it is emphasising the value of ‘Perfect Shuruaat’ through the eyes of a cement bag.

Tarun Singh Chauhan, management advisor and brand consultant, Wonder Cement, said, "Our objective with this campaign was to show that the cement produced at the Wonder Cement plant speaks for itself, its quality, trust and most of all perfection. The only way this was possible was to take the perspective of a cement bag and showing its journey of perfection from beginning till the end."

According to the company, the campaign also marks Wonder Cement being the first ever cement brand to enter the world of IGTV. No other brand in this category has created content specific to the platform.

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In spite of company’s optimism, demand weakness in cement is seen in the 4% y-o-y drop in sales volume. (Reuters)

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Cost cuts and better realizations save? the ?day ?for ?UltraTech Cement, Updated: 27 Jan 2020, Vatsala Kamat from Live Mint

Lower cost of energy and logistics helped Ebitda per tonne rise by about 29% in Q3
Premiumization of acquired brands, synergistic?operations hold promise for future profit growth Topics

UltraTech Cement
India’s largest cement producer UltraTech Cement Ltd turned out a bittersweet show in the December quarter. A sharp drop in fuel costs and higher realizations helped drive profit growth. But the inherent demand weakness was evident in the sales volumes drop during the quarter.

Better realizations during the December quarter, in spite of the 4% year-on-year volume decline, minimized the pain. Net stand-alone revenue fell by 2.6% to ?9,981.8 crore.

But as pointed out earlier, lower costs on most fronts helped profitability. The chart alongside shows the sharp drop in energy costs led by lower petcoke prices, lower fuel consumption and higher use of green power. Logistics costs, too, fell due to lower railway freight charges and synergies from the acquired assets. These savings helped offset the increase in raw material costs.

The upshot: Q3 Ebitda (earnings before interest, tax, depreciation and amortization) of about ?990 per tonne was 29% higher from a year ago. The jump in profit on a per tonne basis was more or less along expected lines, given the increase in realizations. "Besides, the reduction in net debt by about ?2,000 crore is a key positive," said Binod Modi, analyst at Reliance Securities Ltd.

Graphic by Santosh Sharma/Mint
What also impressed analysts is the nimble-footed integration of the recently merged cement assets of Nathdwara and Century, which was a concern on the Street.

Kunal Shah, analyst (institutional equities) at Yes Securities (India) Ltd, said: "The company has proved its ability of asset integration. Century’s cement assets were ramped up to 79% capacity utilization in December, even as they operated Nathdwara generating an Ebitda of ?1,500 per tonne."

Looks like the demand weakness mirrored in weak sales during the quarter was masked by the deft integration and synergies derived from these acquired assets. This drove UltraTech’s stock up by 2.6% to ?4,643 after the Q3 results were declared on Friday.

Brand transition from Century to UltraTech, which is 55% complete, is likely to touch 80% by September 2020. A report by Jefferies India Pvt. Ltd highlights that the Ebitda per tonne for premium brands is about ?5-10 higher per bag than the average (A cement bag weighs 50kg). Of course, with competition increasing in the arena, it remains to be seen how brand premiumization in the cement industry will pan out. UltraTech Cement scores well among peers here.

However, there are road bumps ahead for the cement sector and for UltraTech. Falling gross domestic product growth, fiscal slippages and lower budgetary allocation to infrastructure sector are making industry houses jittery on growth. Although UltraTech’s management is confident that cement demand is looking up, sustainability and pricing power remains a worry for the near term.

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Customised Cement Additives

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A combined understanding of particle size evolution during grinding and chemical interactions during cement hydration can be used to develop high performance cement additives. This customisation approach ensures that cement plants maximise efficiency while delivering superior performing products to their customers.

Portland Pozzolan Cements (PPCs), in which part of the Portland cement clinker has been substituted by fly ash, are well established in India with clinker replacement levels often being greater than 30 per cent. This high level of substitution poses a challenge for the cement plant during grinding as well as in ensuring that the final performance of the PPC meets the requirements of customers. Consequently, many cement plants are turning towards customised cement additives to ensure efficiency in the grinding process while enhancing the cement performance.

Particle Size Distribution
PPCs are typically produced by the co-grinding of the clinker, fly ash and gypsum in a ball mill (with or without roller press) or vertical roller mill. This range of grinding technologies combined with the significant differences in the hardness of the clinker and fly ash can result in large variations in the particle size distribution of the produced cement, which consequently impact the performance.

A significant amount of research has been published which demonstrate the impact that the different particle size fractions have on cement strength performance in both ordinary Portland cement as well as blended cements [1, 2, and 3]. Consequently, it is sensible to question whether it is possible to combine different cement additive raw materials in such a way as to modify the particle size distribution of the finished cement and thereby optimise its performance. It is well known that the particles distributed in the 5 to 30 ?m size fraction contribute the most to the overall strength development. Therefore, if we are able to enrich the amount of particles in this size range, we should be able to increase the compressive strength of the cement.

In our laboratory we prepared a series of PPCs (67 per cent OPC clinker, 29 per cent fly ash and 4 per cent gypsum) while using various cement additive raw materials to improve the grinding efficiency. After 35 minutes of grinding, samples were taken and Blaine surface area, sieve residue and particle size distribution (laser diffraction) measurements were conducted. Some of the key results are presented in the following tables and figures.

After grinding, a Blaine specific surface area of around 350 m2/kg was achieved and the particle size distributions of three cements are given in figure 1. The reference cement ground without an additive and the cement produced with cement raw material, RM 2, are almost identical. This is not surprising as RM 2 was chosen for its chemical effect on the hydration reaction and not for its physical effect on grinding.

However, a significant effect on the particle size distribution can be seen when the cement is ground using cement additive RM 1. The cement additive RM 1 was chosen as it is known to have a positive effect on the particle size distribution during grinding. In the particle size range 5 to 30?m; there is around a 10 per cent increase in the volume of particles for the cement produced with RM 1 compared with the reference cement produced without any additives.

What is more interesting is the change in the volume of particles in the range 5 to 15 ?m as these are known to contribute the most to the early strength development. The difference between the reference cement and the cement produced using additive RM 1 was around 50 per cent. The values for both ranges are given in table 1.

The increase in the 5 to 15 ?m range is particularly important in the case of PPC. In a cement containing fly ash, the early strength is one of the more problematic areas when trying to increase the clinker substitution rate as the fly ash itself contributes almost nothing to the one-day strength. This is because for the pozzolanic reaction to be initiated, it requires the presence of calcium hydroxide, which is released from the hydration of the main clinker minerals. Consequently, if the amount of clinker particles in the 5 to 15 ?m range increases, this will lead to a faster rate of reaction of the main clinker minerals, thereby producing more calcium hydroxide to help boost the reaction with the fly ash.

Cement Hydration and Strength Development
The hydration of cement is a complex process, but for a clinker or cement with the same mineralogical and chemical composition, grinding it finer, i.e., producing a larger number of smaller particles will increase the rate of reaction. Consequently, this will increase the compressive strength of that cement and is essentially the physical effect that we presented in the previous section.

However, many of the cement additive raw materials also impact the hydration process directly by reacting with the various clinker minerals. Depending on the additive used, this interaction will vary and could, for example, accelerate the conversion of ettringite, produced from the hydration of the aluminate phase (C3A) with sulfate, into mono-sulfate or accelerate the rate of hydration of alite (C3S), thereby changing the rate of formation of the calcium silicate hydrates (CSH).

The impact on the hydration process can be evaluated by monitoring the rate of heat evolution for a hydrating PPC and in our case we used a TA Instruments TAM-Air isothermal calorimeter for this purpose. The heat of hydration curves for the two selected cement additive raw materials, RM 1 and RM 2 along with the reference cement, are shown in figure 2.

The curves shown mainly refer to the hydration of alite and there are clear differences between the three cements. Although the initiation of the main hydration reaction as well as the overall shape of the curves are similar for the reference cement and the cement containing RM 1, the area under the curve is larger for the cement with RM 1. The peak height is also greater and together this would tend to suggest that the reaction had progressed to a greater extent over the same time period when the additive RM 1 was used.

In the case of the cement produced with additive RM 2, there is a clear reduction in the alite induction period demonstrated by the fact that the hydration heat starts to rise rapidly around 30 minutes earlier than the reference cement. This decrease in the induction period should also have a positive effect on the strength development. Compressive strength measurements were conducted using the three laboratory cements and the results are provided in table 2. The cement produced with RM 1 shows the best overall performance in terms of strength improvement and this can be attributed to the combination of particle size effects and chemical interactions. Additionally, the strength gain at later ages is quite significant and most likely occurs due to the enhancement of the fly ash reaction.

The use of cement additives affects both the physical nature of a cement, i.e., its particle size distribution and also the chemical reactions that occur during the hydration reaction. These effects are often overlapping and understanding these interactions can lead to the formulation of more effective customised cement additives.

Practical Application
The previous two sections have highlighted some of the more theoretical aspects when using cement additives in a controlled laboratory environment. However, the critical aspect is how well can this information be transferred to a real life application to achieve the desired performance. The following example demonstrates how we have applied this knowledge to optimise the performance of a PPC for one of our customers in India. The cement plant is producing a PPC with around 25 per cent fly ash addition in a ball mill with a capacity of around 210 T/hr.

The key objective for the customer was to increase the mill output and boost the one-day strength performance. Over the trial period, several products and dosages were evaluated in order to determine the optimum product. An overview of some key results from the trial is given in table 3.

All three products that were evaluated in plant scale trials demonstrated a marked improvement in both the mill output and one-day compressive strength when compared to the reference level. This allowed the customer to select the product that was best aligned with their expectations in terms of cost and performance.

Therefore, by developing an understanding of both the physical effects occurring during grinding and the chemical effects during cement hydration, there is no need for a cement plant to compromise on performance, quality or cost. Moving away from standard products towards a customised approach can lead to significant benefits for a cement plant and is an ideal solution, when compromising on cost and performance is not an option.

This article has been authored by Sridhar Gowda and Nilesh Malave, Fosroc Chemicals (India) Pvt Ltd, Fatzunnahar Ngopil, Fosroc International Limited (Malaysia) and Martyn Whitehead, Fosroc Asia Sdn Bhd (Malaysia).

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Price hikes, drop in input costs help cement industry to post positive margins: Care Ratings

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Region-wise,the southern region comprises 35% of the total cement capacity, followed by thenorthern, eastern, western and central region comprising 20%, 18%, 14% and 13%of the capacity, respectively.

The cement industry is expected to post positive margins on decent price hikes over the months, falling raw material prices and marked drop in overall production costs, said an analysis of Care Ratings.

Wholesale and retail prices of cement have increased 11.9% and 12.4%, respectively, in the current financial year. As whole prices have remained elevated in most of the markets in the months of FY20, against the corresponding period of the previous year.

Similarly, electricity and fuel cost have declined 11.9% during 9M FY20 due to drop in crude oil prices. Logistics costs, the biggest cost for cement industry, has also dropped 7.7% (selling and distribution) as the Railways extended the benefit of exemption from busy season surcharge. Moreover, the cost of raw materials, too, declined 5.1% given the price of limestone had fallen 11.3% in the same aforementioned period, the analysis said.

According to Care Ratings, though the overall sales revenue has increased only 1.3%, against 16% growth in the year-ago period, the overall expenditure has declined 3.2% which has benefited the industry largely given the moderation in sales.

Even though FY20 has been subdued in terms of production and demand, the fall in cost of production has still supported the cement industry by clocking in positive margins, the rating agency said.

Cement demand is closely linked to the overall economic growth, particularly the housing and infrastructure sector. The cement sector will be seeing a sharp growth in volumes mainly due to increasing demand from affordable housing and other government infrastructure projects like roads, metros, airports, irrigation.

The government’s newly introduced National Infrastructure Pipeline (NIP), with its target of becoming a $5-trillion economy by 2025, is a detailed road map focused on economic revival through infrastructure development.

The NIP covers a gamut of sectors; rural and urban infrastructure and entails investments of Rs.102 lakh crore to be undertaken by the central government, state governments and the private sector. Of the total projects of the NIP, 42% are under implementation while 19% are under development, 31% are at the conceptual stage and 8% are yet to be classified.

The sectors that will be of focus will be roads, railways, power (renewable and conventional), irrigation and urban infrastructure. These sectors together account for 79% of the proposed investments in six years to 2025. Given the government’s thrust on infrastructure creation, it is likely to benefit the cement industry going forward.

Similarly, the Pradhan Mantri Awaas Yojana, aimed at providing affordable housing, will be a strong driver to lift cement demand. Prices have started correcting Q4 FY20 onwards due to revival in demand of the commodity, the agency said in its analysis.

Industry’s sales revenue has grown at a CAGR of 7.3% during FY15-19 but has grown only 1.3% in the current financial year. Tepid demand throughout the country in the first half of the year has led to the contraction of sales revenue. Fall in the total expenditure of cement firms had aided in improving the operating profit and net profit margins of the industry (OPM was 15.2 during 9M FY19 and NPM was 3.1 during 9M FY19). Interest coverage ratio, too, has improved on an overall basis (ICR was 3.3 during 9M FY19).

According to Cement Manufacturers Association, India accounts for over 8% of the overall global installed capacity. Region-wise, the southern region comprises 35% of the total cement capacity, followed by the northern, eastern, western and central region comprising 20%, 18%, 14% and 13% of the capacity, respectively.

Installed capacity of domestic cement makers has increased at a CAGR of 4.9% during FY16-20. Manufacturers have been able to maintain a capacity utilisation rate above 65% in the past quinquennium. In the current financial year due to the prolonged rains in many parts of the country, the capacity utilisation rate has fallen from 70% during FY19 to 66% currently (YTD).

Source:moneycontrol.com

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Wonder Cement shows journey of cement with new campaign

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The campaign also marks Wonder Cement being the first ever cement brand to enter the world of IGTV…

ETBrandEquity

Cement manufacturing company Wonder Cement, has announced the launch of a digital campaign ‘Har Raah Mein Wonder Hai’. The campaign has been designed specifically to run on platforms such as Instagram, Facebook and YouTube.

#HarRaahMeinWonderHai is a one-minute video, designed and conceptualised by its digital media partner Triature Digital Marketing and Technologies Pvt Ltd. The entire journey of the cement brand from leaving the factory, going through various weather conditions and witnessing the beauty of nature and wonders through the way until it reaches the destination i.e., to the consumer is very intriguing and the brand has tried to showcase the same with the film.

Sanjay Joshi, executive director, Wonder Cement, said, "Cement as a product poses a unique marketing challenge. Most consumers will build their homes once and therefore buy cement once in a lifetime. It is critical for a cement company to connect with their consumers emotionally. As a part of our communication strategy, it is our endeavor to reach out to a large audience of this country through digital. Wonder Cement always a pioneer in digital, with the launch of our IGTV campaign #HarRahMeinWonderHai, is the first brand in the cement category to venture into this space. Through this campaign, we have captured the emotional journey of a cement bag through its own perspective and depicted what it takes to lay the foundation of one’s dreams and turn them into reality."

The story begins with a family performing the bhoomi poojan of their new plot. It is the place where they are investing their life-long earnings; and planning to build a dream house for the family and children. The family believes in the tradition of having a ‘perfect shuruaat’ (perfect beginning) for their future dream house. The video later highlights the process of construction and in sequence it is emphasising the value of ‘Perfect Shuruaat’ through the eyes of a cement bag.

Tarun Singh Chauhan, management advisor and brand consultant, Wonder Cement, said, "Our objective with this campaign was to show that the cement produced at the Wonder Cement plant speaks for itself, its quality, trust and most of all perfection. The only way this was possible was to take the perspective of a cement bag and showing its journey of perfection from beginning till the end."

According to the company, the campaign also marks Wonder Cement being the first ever cement brand to enter the world of IGTV. No other brand in this category has created content specific to the platform.

Continue Reading

Process

In spite of company’s optimism, demand weakness in cement is seen in the 4% y-o-y drop in sales volume. (Reuters)

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Cost cuts and better realizations save? the ?day ?for ?UltraTech Cement, Updated: 27 Jan 2020, Vatsala Kamat from Live Mint

Lower cost of energy and logistics helped Ebitda per tonne rise by about 29% in Q3
Premiumization of acquired brands, synergistic?operations hold promise for future profit growth Topics

UltraTech Cement
India’s largest cement producer UltraTech Cement Ltd turned out a bittersweet show in the December quarter. A sharp drop in fuel costs and higher realizations helped drive profit growth. But the inherent demand weakness was evident in the sales volumes drop during the quarter.

Better realizations during the December quarter, in spite of the 4% year-on-year volume decline, minimized the pain. Net stand-alone revenue fell by 2.6% to ?9,981.8 crore.

But as pointed out earlier, lower costs on most fronts helped profitability. The chart alongside shows the sharp drop in energy costs led by lower petcoke prices, lower fuel consumption and higher use of green power. Logistics costs, too, fell due to lower railway freight charges and synergies from the acquired assets. These savings helped offset the increase in raw material costs.

The upshot: Q3 Ebitda (earnings before interest, tax, depreciation and amortization) of about ?990 per tonne was 29% higher from a year ago. The jump in profit on a per tonne basis was more or less along expected lines, given the increase in realizations. "Besides, the reduction in net debt by about ?2,000 crore is a key positive," said Binod Modi, analyst at Reliance Securities Ltd.

Graphic by Santosh Sharma/Mint
What also impressed analysts is the nimble-footed integration of the recently merged cement assets of Nathdwara and Century, which was a concern on the Street.

Kunal Shah, analyst (institutional equities) at Yes Securities (India) Ltd, said: "The company has proved its ability of asset integration. Century’s cement assets were ramped up to 79% capacity utilization in December, even as they operated Nathdwara generating an Ebitda of ?1,500 per tonne."

Looks like the demand weakness mirrored in weak sales during the quarter was masked by the deft integration and synergies derived from these acquired assets. This drove UltraTech’s stock up by 2.6% to ?4,643 after the Q3 results were declared on Friday.

Brand transition from Century to UltraTech, which is 55% complete, is likely to touch 80% by September 2020. A report by Jefferies India Pvt. Ltd highlights that the Ebitda per tonne for premium brands is about ?5-10 higher per bag than the average (A cement bag weighs 50kg). Of course, with competition increasing in the arena, it remains to be seen how brand premiumization in the cement industry will pan out. UltraTech Cement scores well among peers here.

However, there are road bumps ahead for the cement sector and for UltraTech. Falling gross domestic product growth, fiscal slippages and lower budgetary allocation to infrastructure sector are making industry houses jittery on growth. Although UltraTech’s management is confident that cement demand is looking up, sustainability and pricing power remains a worry for the near term.

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