Economy & Market

Creating a brand requires focus, sustained work and resources

Published

10 years ago

October 31, 2016

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Rahul Akkara, VP (Strategy and Brand), JSW Cement Ltd.
JSW is mainly into the production of steel, and generates slag as a by-product, a key material for cement. Rahul Akkra explains his strategy behind building up the JSW brand, and the difference that a strong brand can make to the bottom-line of a cement manufacturer.

If cement is a commodity, why is branding relevant?
Though cement is still in the space of a commodity, the consumer wants to understand which cement bag is going in his/her home. Today, consumers are very evolved in the decision-making process. Years ago, it was left to the mason to decide which cement would come inside homes. The result would be that the mason would buy a cheap cement and the owner of the house would see cracks in his walls in a few years. That trend is changing now. Hence it becomes important to ensure that the brand recall is high.

What difference does a strong brand make to the bottom-line of a cement company in India? What difference does it make to producers outside India?
A strong brand, be it in cement or any other commodity, helps to create a pull at the point of sale, and helps achieve higher realisations. Better the brand recall, better the pull and better are the chances of getting an improved price realisation for your cement bag. In a market which is so price sensitive, high brand recall for the brand helps to sustain the prices and improves margins.

Do companies plan differently for corporate branding and product branding in the cement industry?
Most cement brands work on a single brand architecture, so when you advertise at a corporate level, its rub-off also comes on the product. Having a multi-brand architecture would also result in more investments.

What are the most interesting brand messages in the Indian cement industry? How have these been conveyed? Can you compare these messages with FMCG brands?
Most cement companies use strength as a key message delivery, unlike FMCG companies where there are different levers like taste, design, and packaging. One has to understand that FMCG is an impulsive category while commodity is need based.

Isn’t product quality associated with branding? Can you quote any examples of brands failing or succeeding due to product quality?
Take the case of PSC Cement. Till two years back, no one knew about this new category in cement. People were used to buying OPC and PPC Cement. We were the only company in southern India to make PSC Cement; there was a need to educate the consumer on using this cement. We took the initiative and developed a communication strategy that informed the consumer to wait and buy the right cement. The result – it helped us to create a 6 per cent share for PSC Cement in the market, and in that 6 per cent, we today have more than a 95 per cent share. PSC Cement is superior to OPC and PPC, and all it needed was a good commu-nication strategy to be put in place.

Broadly speaking, what are the time and costs involved in creating and establishing a new brand for an all-India player or for a regional player?
Creating a brand is not an overnight process. It requires focus, sustained work and resources. A brand is an investment, and how much investment does one need to put in cannot be determined; it would largely depend on what is the vision that one has for the brand.

What do you think of premium cement brands? What do they promise to deliver over and above normal cement? Can you give some good examples of value creation through premium branding?
The difference between premium brands and normal brands is the value proposition and the service that one gives to consumers. The consumer is ready to pay an extra price for the brand where he gets a better value for the money spent. This would be by way of not just a superior product offering, but also by way of good pre- and post-sales service which would be a mix of a technical and sales service support system.

Is the introduction of PPC and PSC a challenge or an opportunity for the cement industry?
Today PPC accounts for almost 65 per cent of the market, while PSC is about 7 per cent in India and around 60 per cent all over the world.

It is very important that we use more of PSC and blended cement as natural resources are getting depleted on account of use of limestone and water. PSC uses slag as a raw material and requires less water for curing as compared to PPC and OPC. Also PSC Cement is a green cement, as the CO2 emission is less as compared to PPC and OPC.

How common are brand transitions in India? Are they connected with M & A activity? Or are there exceptions?
There have been quite a few acquisitions of late in the cement industry. However, these acquisitions have only been for assets and not for the brand. Establishing a brand takes a lot of time, money and resources. (Good) brands help organisations to achieve higher market capitalisation. Hence the transition of the brand as far as the cement space is concerned is very rare.

How are brand strategies and packaging strategies implemented in associated product categories like white cement, wall putty, waterproofing compounds, etc? Is there any learning inherent for the cement industry?
There are different kinds of packaging like paper and HDPE bags which are predominantly used in the cement sector. Of late, with an intent to launch premium products in the market, many companies have gone about experimenting on packaging as well. One such introduction is the use of Uflex packing for cement. Uflex packing gives you the liberty to do graphic and 11-colour printing as against HDPE or where you do four- and six-colour prints. Uflex is also very expensive in terms of cost per bag, so if the organisation is pretty confident of getting the price premiums for its product packed in Uflex packaging, it should go ahead and do it.

Can you help our readers on brands and distribution strategies as seen in the cement industry vis-?vis other building materials like paints, tiles, plumbing materials, plywood, reinforcement steel, etc?
Compared to paints, the distribution strategy of cement is a little different. Unlike paints where the material is dispatched from the factory godowns to the dealers, in cement, the distribution is from the factory to the dump, and subsequently the dealer and the sub-dealer.

How relevant will cement brands be in India after, say, 20 years?
Very relevant. In the next 20 years, the consumer buying pattern is going to witness a sea change. I also see a strong possibility of cement getting retailed online in a big way. RMCs are going to be the way forward.

Concrete

Cement Makers Reaffirm Commitment to Sustainable Growth

Published

1 week ago

June 5, 2026

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World Environment Day spotlight on innovation and circularity

On World Environment Day, the Indian cement industry reiterated its commitment to supporting India’s climate ambitions through sustainable manufacturing, resource efficiency and the adoption of cleaner technologies.

The Cement Manufacturers’ Association (CMA) said the sector remains aligned with the Government of India’s Net Zero commitments and is accelerating efforts to reduce its environmental footprint while supporting the country’s infrastructure and development agenda.

Parth Jindal, President, CMA and Managing Director, JSW Cement, said the industry is increasingly adopting cleaner technologies, improving energy efficiency and expanding the use of alternative fuels and raw materials. He also highlighted the growing importance of circular economy practices, where industrial by-products and waste streams from one sector are utilised as resources in another.

“The Indian Cement Industry is aligned to the Government’s commitments on carbon mitigation and is accelerating the adoption of cleaner technologies, resource efficiency and circular economy practices while actively exploring the potential of Carbon Capture, Utilisation and Storage (CCUS) as a critical pathway for deep decarbonisation,” said Jindal.

He added that coprocessing industrial waste and by-products helps conserve natural resources, reduce disposal requirements and lower the environmental footprint across multiple sectors.

According to Jindal, sustainability is no longer limited to manufacturing processes but is increasingly influencing investment decisions, innovation strategies and long-term growth plans within the industry.

Echoing similar views, Dr Raghavpat Singhania, Vice President, CMA and Managing Director, JK Cement, said sustainable development extends beyond emissions reduction and must also focus on responsible resource utilisation and waste minimisation.

“Sustainability in the built environment cannot be measured by emissions alone. It is equally about how efficiently we use resources, how effectively we minimise waste and how responsibly we create the infrastructure that will serve future generations,” said Singhania.

He noted that the cement industry is advancing its sustainability agenda through greater resource efficiency, increased circularity, technological innovation and continuous improvements in manufacturing practices. As a key contributor to India’s infrastructure development, the sector has a critical role to play in balancing economic growth with environmental responsibility.

On the occasion of World Environment Day, industry leaders reaffirmed their commitment to supporting India’s climate goals while delivering the materials required for resilient, durable and sustainable infrastructure.

Concrete

Building a Greener Future Together

Published

2 weeks ago

June 4, 2026

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Environmental sustainability requires immediate action, not just long-term commitments and discussions. Recycling, circular economy practices, and technology-driven waste management can help industries reduce environmental impact while supporting sustainable growth.

Author: Jignesh Kundaria, Director and CEO, Fornnax Technology

World Environment Day serves as an important reminder that environmental sustainability can no longer remain confined to discussions, reports, or long-term commitments. The environmental challenges facing the world today demand immediate, measurable, and collective action. Across industries and communities, waste generation continues to outpace our ability to process it responsibly, placing increasing pressure on ecosystems, natural resources, public health, and the well-being of future generations.

One of the most significant shifts required today is a change in how society perceives waste. Rather than being viewed as a material to be discarded, waste must be recognised as a valuable resource that can contribute to both economic growth and environmental protection when managed through the right technologies and systems. This mindset forms the foundation of the circular economy model that countries across the world are increasingly adopting to reduce landfill dependence, recover valuable materials, and create more sustainable industrial ecosystems.

India has made meaningful progress in strengthening awareness around sustainability, recycling, and environmental responsibility over the past decade. Significant efforts are being made to formalise the recycling sector through improved infrastructure, technology adoption, policy implementation, and broader stakeholder participation. These developments are creating a stronger foundation for responsible waste management and resource recovery across the country.

However, achieving long-term environmental impact requires collaboration from all stakeholders. Industries, policymakers, technology providers, and communities must work together with greater accountability to strengthen recycling ecosystems, encourage responsible waste management practices, and create sustainable outcomes through consistent execution rather than temporary interventions.

As someone closely associated with the recycling industry, I firmly believe that technology will play a decisive role in addressing future environmental challenges. Advanced recycling systems have the potential to recover valuable resources, reduce pollution, minimise landfill burdens, and conserve energy, creating a more sustainable future for generations to come. This belief is deeply reflected in Fornnax’s motto, “Committed to Create a Green Future,” which embodies our commitment to building long-term environmental value through innovation and responsible action.

At the same time, technology alone cannot deliver meaningful change. Real progress requires intent, awareness, participation, and a shared sense of responsibility. Sustainable development can only be achieved when innovation is supported by collective action and a genuine commitment to environmental stewardship.

On this World Environment Day, let us move beyond conversations and take meaningful steps towards creating a cleaner, greener, and more sustainable planet. By embracing innovation, strengthening recycling ecosystems, and acting responsibly today, we can create lasting environmental impact and secure a better future for generations to come.

Concrete

Dalmia Bharat Acquires Jaiprakash Associates Cement Assets for ₹2,850 Crore

Published

3 weeks ago

May 25, 2026

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Dalmia Cement executed a Business Transfer Agreement with Jaiprakash Associates and Adani Infra, to acquire 5.2 MnTPA of cement capacity across Madhya Pradesh and Uttar Pradesh.

Dalmia Cement (Bharat) announced on May 22, 2026 that it had signed a Business Transfer Agreement with Jaiprakash Associates Limited and Adani Infra (India) Limited for the acquisition of cement plants located at Rewa in Madhya Pradesh and Churk, Chunar and Sadwa in Uttar Pradesh. The deal was struck at an enterprise value of ₹2,850 crore and is expected to close within two weeks of execution.

The acquired assets from Jaiprakash Associates include 5.2 MnTPA of cement capacity and 3.3 MnTPA of clinker capacity. The package also covers 99 MW of thermal power capacity and railway sidings at Rewa, Chunar, and a common siding at Churk. This infrastructure gives the acquisition immediate operational utility beyond just production tonnage.

The transaction has a long backstory. Dalmia Cement had originally entered into a framework agreement with Jaiprakash Associates in December 2022, covering the sale of these business assets along with a long-term clinker supply arrangement. However, before the deal could be completed, Jaiprakash Associates was admitted to insolvency proceedings under the Insolvency and Bankruptcy Code. The earlier agreements could not be consummated as a result.

In an official statement, Puneet Dalmia, Managing Director & CEO, Dalmia Bharat, said, “I am very excited about addition of these assets in our portfolio. This serves as a great strategic fit for Dalmia. It helps us move forward in our journey to be a pan India player and provide a strong head start to serve the high potential markets in Central region. I am optimistic that the expansion potential of these assets along with close proximity with Dalmia’s captive mines will help us create a capacity hub for the future”.

Following the approval of Adani Group’s resolution plan for Jaiprakash Associates under the IBC framework, Dalmia approached the new management to revive discussions. The fresh Business Transfer Agreement was executed to settle all pending disputes, legal proceedings, and arbitration matters arising from the original framework agreement with Jaiprakash Associates.

Expanding market reach

Dalmia added, “Our familiarity with these assets under the earlier tolling arrangement gives us a deep understanding of the facilities and helps us establish strong connect with channel partners and vendors. We believe that this will help us in faster ramp up of capacities and quicker inroads into the market. As we look forward, I am very confident that we will be able to leverage the strengths of Dalmia to operate these assets in a manner where we can maximise value creation for all our stakeholders.”

With the addition of these plants, Dalmia Bharat’s total installed cement capacity will rise to 54.7 MnTPA upon consummation. The company has further expansion projects underway at Belgaum, Pune, and Kadapa, which are expected to take overall capacity to 66.7 MnTPA by Q2 to Q3 FY28.

The Central India location of the Jaiprakash Associates plants gives Dalmia Bharat faster access to markets in Madhya Pradesh and Uttar Pradesh than a greenfield build would have allowed. The company also cited debottlenecking and brownfield expansion as near-term opportunities at the acquired sites. Dalmia Bharat said the assets were expected to contribute positively to EBITDA and overall returns, given the pricing environment in the region and the company’s cost structure.