Economy & Market
Budget Impact | Cement Industry Speaks Out
Published
10 years agoon
By
admin
Various corporate leaders, analysts and industry associations spoke to INDIAN CEMENT REVIEW after the Union Budget was presented to offer their views on how the recommendations will impact the cement industry.
Dr S Chouksey, President, Cement Manufacturers’ Association
I congratulate the Hon’ble Finance Minister Arun Jaitley on behalf of the Indian cement industry for presenting a Budget which is high on reforms, and will boost the rural economy and uplift the weaker sections of society. The government’s bold steps to usher in poll reforms, curb tax evasion, and the further push to the digital economy are all forward looking. The cement industry is buoyant with the government’s commitment to provide 10 million houses to the homeless or those with kachha houses. The granting of infrastructure status to affordable housing is yet another step which would be looked at positively by the cement industry, though we were expecting the housing sector in general would be granted infrastructure status.
Industry’s concerns on high taxation on the sector, of course, remain and is expected that they will definitely be taken care of while fixing the rates in the GST regime. We welcome the government’s other policy measures, including increasing the fund alloca?tion for infrastructure and particularly that of providing mason trai?ning to 5 lakh persons by 2022. This will increase employment opportu?nities and also bring in more efficiency to the construction sector. The target of 100 per cent rural electrification by April 2018 will bring in development oppor?tunities right up to the core of rural India. Similarly, the thrust on rail mo?dernisation and station redevelopment would also boost the construction sector. This sector has the potential for creation of employment opportunities and the government’s various steps to boost the construction sector will neutralise the unemployment created in some medium and small scale industries due to demonetisation.
Vaibhav Agarwal, Vice President – Research, PhillipCapital
In our opinion, this Budget is the most stru?cturally positive one for the cement sector in the last decade. Although there were no direct announcements by the Finance Minster for the cement sector, a number of his announcements will lead to increased and sustained consumption of cement.
10 million houses by 2019 for the houseless
-This provision will lead to incremental cement demand of ~75 million tonnes over the next two-three years.
100 per cent rural electrification by 1st May 2018
-This implies deeper penetration of development opportunities in rural India in the form of construction of houses and roads; hence a structural positive.
Continued focus on sanitation
-Sanitation coverage in rural India is currently 60 per cent. The budget commentary remained very positive on sanitation projects. In our recent ground checks, we found that sanitation projects are one of the key demand drivers for cement. The continued thrust on such projects will help boost cement demand.
Higher investment in affordable housing and affordable housing being granted ‘Infrastructure’ status will translate into more cement consum?ption for such projects. Grant of infrastructure status means more participation on the supply side by construction companies/contractors/builders and faster execution of such projects.
Fostering a conducive labour environment
Labour issues are one of the key ones in construction projects. Continuous availability of labour is frequently a problem at most sites (most labour is generally migrant). The government’s focus on developing a conducive labour environment will mean labour issues will be sorted out to a large extent, implying smooth execution of projects at construction sites with steady cement consumption. This will also mean the other regular labour concerns for contractors (wages, job benefits) are resolved, which will ameliorate labour migration concerns. In addition, there are a few other announcements in the Budget which will have a positive impact on the industry:
The thrust on rail modernisation/station redevelopment projects and 25 stations going in for redevelopment will lead to material cement consumption.
Similarly, the introduction of the Metro Rail Act and various Metro rail policies will lead to faster and structured execution of such projects, implying better visibility of cement demand.
Further, the Centre has increased investments in the roads sector and 2,000 km of coastal roads have been identified for development. This will lead to more cement demand from road projects. The various airport upgradation/maintenance projects may imply increased cement consumption. Consumption may be even higher if upgradation work involves runways.
Amendment of the Negotiable Instruments Act, 1881
This was one of the key demands from north Indian channel partners and distributors. Northern India is a largely a cash-and-carry economy and issuing post-dated cheques is a normal practice. Trade associations in these regions had approached the government for these amendments.
With this development, the supply chain should be more comfortable with such instruments. We found north India averse to digital wallets and the swipe machine culture, given the 1-2 per cent transaction charges involved. Change in dynamics of affordable housing (30/60 sq mt carpet from 30/60 sq mt built-up area) would lead to larger sizes of such houses, which in turn will mean higher cement consumption.
The ‘Notional Rent Income’ tax on unsold inventory for builders, post one year of receiving the commencement certificate if such houses remain unsold/unoccupied, will means correction in real estate prices/rentals, implying quicker-than-anticipated (though lower) cash flows to builders. The builder will be able to execute projects faster and transparently, implying better cement demand.
Exemption of capital gains tax where land is being pooled for the creation of Andhra Pradesh’s capital city if the person was holding the land as on 2 June, 2014, implies more transparent and faster execution of the capital city and quicker-than-anticipated cement demand. India Cements will be the key gainer followed by Dalmia Bharat, Ramco and other southern cement companies.
Reduction in holding period for considering capital gains tax to two years from three years and change of base year for indexation to 2001 from 1981 reduces the capital gains tax liability. This will mean quicker decisions in the real-estate markets to buy/sell (as the holding period comes down) and will also prompt builders for faster execution of projects, implying more sustained demand for cement from the real estate sector.
The increase in disposable income by a marginal reduction in tax rates in the Rs 2,50,000-Rs 5,00,000 tax bracket to 5 per cent from 10 per cent is a sentiment booster for those within this bracket, aspiring to buy new houses.
In short, the Budget’s overall impact on the cement sector is positive. All cement companies are winners, especially India Cements, Dalmia Bharat, JK Cement, JK Lakshmi Cement and UltraTech Cement.
Sameer Nagpal, CEO – Refractories, Dalmia Bharat Group
For refractories, which are the backbone for core manufacturing sectors like steel and cement, increase in expenditure allocation, particularly in railways, highways and housing should help build demand. I was expecting more for the manufacturing sector in terms of reforms and some specific measures to safeguard domestic manufacturing from cheaper, unreliable imports and that has not happened. Overall, it is a mixed Budget.
Crisil Research
The Budget has had a positive impact on the cement sector with infrastructure investments and affordable housing to drive demand.
Here are the key Budget proposals:
Pradhan Mantri Awas Yojana (PMAY) allo?cation increased by 39 per cent to Rs 290 billion;
Allocation from Ministry of Rural Development increased by 10 per cent to Rs 1.05 trillion in FY18;
Investments in cement-intensive infrastructure segments (excluding power) are up 9.8 per cent to Rs 4.2 trillion. The total outlay towards National Highways is at Rs 1.24 trillion, up 11.1 per cent over the previous fiscal’s revised estimates;
Affordable housing to be accorded infrastructure status.
Crisil’s view:
The increased government spending on PMAY will provide an impetus to the housing segment, which has been fairly muted over the last few years. Further, grant of infrastructure status to affordable housing would facilitate easier access to low-cost finance and thereby support demand.
A 9.1 per cent increase in allocation to rural development and 44 per cent rise in PMAY-Gramin is likely to catalyse growth in cement demand from rural housing, which typically constitutes 35 per cent of cement demand.
Further, increased government spending on infrastructure, especially cement-intensive sectors such as National Highways (up by 11.1 per cent), metros (15 per cent ), and other schemes (e.g., Swachh Bharat up by 27 per cent ), will augment cement sales.
Sundeep Kumar, Executive Director – Corporate Affairs & Communications, Dalmia Bharat Group
It is a positive and decisive Budget coming especially against the backdrop of the Government’s boldest measure of demonetisation. The Finance Minister has spelled out a forward-looking regimen for the infrastructure sector with a total allocation of up to Rs 3.96 trillion. Giving industry status will greatly ease financing for affordable housing. With the Metro rail emerging in cities and railway lines of 3,500 km to be commissioned next, along with tier-II city airports, there is a greater scope for public- partnership to thrive, which will aid construction activity and lead to a boom in demand for cement as well.
Further, enhancing expenditure on National Highways will give the much needed fillip to the cement industry. Overall, with a focus on rural and agricultural development, housing, clean energy, elimination of poverty, providing basic necessities to the farmers, waivers for senior citizens in government schemes and a promise of aiding the Skill India and Digital India campaigns, the government has presented an all-inclusive Budget this time around. On tax reforms, there has been no relief or relaxation on corporate tax for larger corporates, which is disappointing.
Shishir Baijal, Chairman & Managing Director, Knight Frank India
This has been one of the path-breaking bud?gets with far-reaching changes, especially for the real estate sector. It is positive that the real estate sector has come in the central spectrum of the Union Budget. This has come at a time when the beleaguered sector has been looking at measures to boost the sentiments. The real estate sector, which was the hardest hit by demonetisation move, will be one of the major beneficiaries of this Budget.
Prudence in fiscal discipline is welcome and will encourage the RBI to look at a lower interest rate regime that will provide the much-needed fillip to this stressed sector. Increased focus on infrastructure, especially construction of new roads, improvement of existing roads and coastal connectivity, will go a long way to benefit the real estate sector.
Increase in allocation of funds under PMAY (Pradhan Mantri Awas Yojana) shows the focus of the government towards making ‘Housing for All’ a reality by 2020. Providing infrastructure status to affordable housing, a long-standing demand of the real estate industry, will not only bring the cost of financing down, but will also open up additional avenues for developers to raise funds. We believe that the shift in eligibility criteria for affordable housing from built-up area to carpet area will increase the unit size by 20-30 per cent and will offer home buyers the benefit of owning larger units. This will also encourage leading real estate players to enter the affordable housing segment.
The move to reduce the tenure of the Long Term Capital Gains Tax from three years to two years is extremely welcome and will help the marketability of real estate as an asset class. Changes in the taxation aspect of JDAs (Joint Development Agreements) will greatly encourage more land owners to partner with developers that will benefit the real estate developers, and in turn is likely to benefit the end consumers.
You may like
Concrete
Nuvoco Vistas, CleanMax Partner for Wind-Solar Hybrid Project in Rajasthan
Published
5 days agoon
September 29, 2026By
admin
The project – comprising 20 MW of wind and 26.4 MWdc of solar capacity – will support Nuvoco’s cement operations with cleaner power while strengthening its renewable energy and decarbonisation strategy.
Mumbai, September 29, 2026
Nuvoco Vistas Corp Ltd, part of Nirma Group and one of India’s leading cement companies, has partnered with Clean Max Enviro Energy Solutions Limited (CleanMax), a renewable energy solutions provider for the commercial and industrial (C&I) sector, to develop a 46.4 MW wind-solar hybrid renewable energy project in Rajasthan.
The project will support Nuvoco’s cement operations with cleaner power while strengthening its renewable energy and decarbonisation strategy. It is expected to increase the share of renewable energy in Nuvoco’s power mix, reducing fossil fuel consumption and associated emissions.
Developed by CleanMax, an Independent Power Producer (IPP), at Bhikamkhore, Rajasthan, the project will comprise 20 MW of wind capacity and 26.4 MWdc of solar capacity, along with a 2-MWh Battery Energy Storage System (BESS). Power generated from the facility will be supplied to Nuvoco through the State Transmission Utility (STU) Open Access network.
The hybrid project is expected to generate approximately 100 million units (MU) of renewable electricity annually and help avoid around 1,25,485 tonnes of CO₂ emissions every year across Scope 1 and Scope 2 emissions.
The initiative supports Nuvoco’s ongoing efforts to reduce the carbon intensity of its manufacturing operations through renewable energy adoption, Waste Heat Recovery Systems (WHRS), energy-efficiency measures and increased use of alternative fuels. It also aligns with the company’s DIRE (Digitalisation, Innovation and Renewables) agenda, which focuses on climate action, renewable energy transition, water stewardship, circularity and biodiversity conservation across its manufacturing ecosystem.
Commenting on the initiative, Jayakumar Krishnaswamy, Managing Director, Nuvoco Vistas Corp Ltd, said, “This marks an important step in advancing Nuvoco’s journey towards more sustainable and resilient operations. Our collaboration with CleanMax will increase the share of renewable energy across our Rajasthan operations, strengthening our energy mix while improving long-term cost efficiency and reducing our dependence on conventional power sources. Initiatives such as these reinforce our commitment to operational excellence and responsible growth, while supporting our vision of Building a Safer, Smarter and Sustainable World.”
Kuldeep Jain, Founder and Managing Director, CleanMax, said, “Cement plants run continuously, so the power behind them has to be dependable for decades, not years. We’re seeing manufacturing industries view clean energy as an integral part of their core operations and long-term strategy. Our partnership with Nuvoco reflects that shift, and we’re pleased to support its decarbonisation journey. This wind-solar hybrid project is designed to deliver long-term cost certainty while supporting the Company’s transition to cleaner power.”
Nuvoco has been advancing its sustainability initiatives through renewable energy, operational efficiency and technology-driven solutions. The company operates across Cement, Ready-Mix Concrete (RMX) and Modern Building Materials (MBM) segments, with a presence across East, North and West India.
The company began operations in 2014 with a greenfield cement plant in Nimbol, Rajasthan, and later acquired Lafarge India Limited, which entered India in 1999, along with Emami Cement Ltd in 2020 and Vadraj Cement Limited in April 2025. With planned expansion initiatives, including a new grinding mill at the Arasmeta Cement Plant and multiple debottlenecking projects, Nuvoco aims to achieve a cement capacity of 35 MMTPA.
The company reported total income of Rs 113.62 billion in FY 2025-26, reflecting its continued growth trajectory. Its cement portfolio includes Concreto, Duraguard, Double Bull, PSC, Nirmax and Infracem brands, while its RMX business offers products under Concreto, Artiste, InstaMix, X-Con and Ecodure brands. Nuvoco also provides construction solutions under its Zero M range of modern building materials.
Concrete
UltraTech Cement achieves 100% green energy milestone at Chhattisgarh plant
Published
5 days agoon
September 29, 2026By
admin
UltraTech Cement’s Kukurdih Works becomes its first integrated unit to meet 100 per cent electricity needs through green energy every month.
Raipur (Chhattisgarh)
UltraTech Cement Limited, the world’s largest cement company outside China, has achieved a significant decarbonisation milestone, with its Kukurdih Cement Works integrated unit in Chhattisgarh meeting 100 per cent of its electricity requirement through green energy every month since April 2026.
Commissioned in 2024, Kukurdih Cement Works has an installed grey cement capacity of 3.3 million tonnes per annum. The unit achieved this milestone through a combination of renewable power sourcing and Waste Heat Recovery Systems (WHRS), which now collectively meet its entire electricity demand while ensuring operational reliability.
Since April 2026, nearly one-third of UltraTech’s 76 manufacturing units in India have maintained green energy utilisation above 50 per cent of their electricity requirements. Five units, including Kukurdih, have exceeded 95 per cent green energy utilisation. The company is also progressively deploying Battery Energy Storage Systems (BESS) across its network to enable deeper renewable energy integration.
As part of its decarbonisation strategy, UltraTech has not invested in additional captive thermal power capacity for greenfield projects or brownfield expansions at its integrated units for over a decade.
As of Q1FY27, the company’s captive green energy capacity stood at 1,897 MW, comprising 1,463 MW of renewable energy capacity from solar, wind and hybrid sources, along with 434 MW of WHRS capacity. Under its RE100 commitment, UltraTech aims to increase the share of green power in its total energy mix to 85 per cent by 2030 and achieve 100 per cent by 2050.
UltraTech Cement Ltd, the cement flagship company of the Aditya Birla Group, is a $10-billion building solutions company and the largest cement producer globally by sales volume outside China. The company has a total grey cement capacity of 210.1 MTPA and white cement/putty capacity of 3.5 MTPA. It is a signatory to the GCCA Climate Ambition 2050 and has committed to the Net Zero Concrete roadmap announced by GCCA.
Praveen Vashistha, Founder, Gxpress Solutions, speaks about building a holistic logistics network that encompasses latest technology and current challenges faced by logistics service providers.
Logistics may seem to only entail transporting a package from one location to another. However, there is more to this term than just that. Logistics refers to the entire process of controlling all movement, transfers and decisions in the correct way at the right time and cost and with the desired level of visibility.
People nowadays want to receive more than just the delivery. They want quick, efficient, reliable and transparent logistics service. On the other hand, companies are facing higher operating costs, broken supply chains, congested cities, changing habits of consumers and growing complexity of logistics services. In this situation, a full logistics package is gaining importance not only as a competitive advantage but also as a necessity for a successful business.
The main challenge lies in uniting the first mile, the middle mile and the last mile into one seamless process.
The journey begins before the package moves
First-mile logistics may be the least recognised part of the logistics chain, but they have a crucial influence on all that follows.
This stage starts from the moment the shipment leaves the manufacturer, supplier, farm, warehouse or distribution centre. Depending on the industry, first-mile logistics may involve grouping shipments from multiple suppliers, compiling paperwork and checking the inventory before sending the shipments to a central hub.
Flaws in first-mile logistics produce effects later down the supply chain. Delays in cargo pickup can affect warehouse operations; improper packaging can damage goods in transit; and incorrect inventory information may cause stockholding or unnecessary replenishments.
This is why building a reliable network involves simplifying the operations done at the beginning of the supply chain.

Companies require accurate demand forecasts, supplier visibility, standard procedures, and software to capture information from the moment a shipment enters the supply chain. Route planning and fleet management are also important at this stage, especially as it may involve contacting multiple suppliers.
The main goal is simply to make the first mile predictable.
The middle mile: Where scale meets complexity
When products leave the original site, they travel through the ‘middle mile,’ which connects fulfilment centres, warehouses, sorting centres, and regional distribution points. In this phase, logistics networks begin operating on a large scale. A shipment can pass through several facilities before reaching the final destination. Each additional transfer entails the risk of delay or damage and information losses. Accordingly, the ideal solution is not to minimise the number of transfers but rather to optimise them. The use of hub-and-spoke networks, regional distribution centres, and strategically placed distribution centres can help companies shorten transportation routes and optimise distribution costs. Besides, data can be used to determine the optimal placement of inventories.
For instance, a retailer may find that it takes more time and is more expensive to deliver goods to customers if everything is stored in a central warehouse. Meanwhile, regional distribution helps meet the customer’s needs quicker and more efficiently.
The last mile is where the customer judges you
When it comes to the logistics experience, the customer experience comes down to the delivery. While the last mile might comprise a small part of the entire journey in actual distance, it could also entail expensive and difficult processes. Delivery runs through densely populated cities, through traffic jams, through unsuccessful delivery attempts, and through changing consumer preferences and narrowed time frames.
Customers want to have control over their delivery. Delivery means that customers expect to know the exact moment when their order is delivered. They need to receive current updates about their orders and the ability to decide whether they want scheduled deliveries, or whether they want their order to be dropped off at a designated location far from their house.
As a result, last-mile logistics must incorporate both efficiency and experience. The technology may be used to ensure timely and accurate delivery, through such products as route optimisation and real-time delivery tracking.
However, technology is not enough to guarantee success in terms of last-mile delivery. Knowledge of the local area is still an important aspect that contributes to successful delivery.
One network, not three separate operations
First, the common mistake that organisations can make is treating the first mile, the middle, and the last mile separately.
An effective first mile of logistics does not matter much if the shipment waits in a hub for many hours. A perfectly working warehouse does not make a happy customer if the last-mile delivery fails. Therefore, even the fastest last-mile delivery can become an expensive operation if the supply is not well geographically positioned.
The three moments should work together as one whole system.
This implies having a common view on inventory, transport capacities, shipment statuses and demand. The Transportation Management System, Warehouse Management System and order management system should give information to each other instead of acting like separate islands.
That is where real-time information comes into play!
If something happens, such as a vehicle gets delayed, the company has to know that from the start. If not, someone from Customer Service should be informed about the situation.
Visibility is the new infrastructure
Previously, companies had to rely on physical assets, such as warehouses, trucks, and sorting facilities, to create their logistics networks. Today, they have an additional layer of technology providing visibility.
Command-and-control systems now include GPS tracking, Internet of Things devices, bar-coding, RFID, cloud computing, artificial intelligence, and analytics, which allow companies to know what the goods are doing, how well they are doing, and what is going to happen next.
Predictive analytics reveal possible delays. AI-powered forecasting increases availability. Digital dashboards enable the manager to monitor all operations in one place. The efficiency of such technologies is not measured in the amount of information they gather, but rather in their capability of converting data into knowledge.
Logistics managers should be able to answer the following questions: Where is it? When is it supposed to arrive? What causes the delay? What impact does it have? Can it be delivered some other way? How much will it cost?
The sooner the answers are given, the more resilient the logistics system is.
Resilience must be designed into the network
The events of recent years have highlighted the vulnerability of interconnected supply chains. Geopolitical tensions, bad weather, a lack of labour, poorly developed infrastructure and an unexpected spike in demand are some events that can cause problems for logistics systems without prior notice. Thus, companies should create an end-to-end network not just for normal times but also capable of functioning quickly in problematic situations. In order to create such a network, it is necessary to find alternative suppliers, use several means of transportation, create several routes of delivery, and establish inventory. It is also important to use scenario planning to define what to do if the main hub becomes unavailable or any means of transportation is blocked.
Sustainability: Part of the delivery equation
The future of logistics will also be shaped by environmental considerations.
As delivery volumes rise, businesses are under increasing pressure to reduce emissions without compromising service. Better route planning, load optimisation, electric vehicles, alternative fuels, renewable-energy-powered warehouses and consolidated deliveries can all contribute. The most sustainable shipment is often the one that does not require unnecessary movement in the first place.
Better demand forecasting and inventory placement can reduce empty miles and avoid repeated transportation. Consolidating deliveries can improve vehicle utilisation. Reverse logistics can ensure that products, packaging and materials return efficiently instead of becoming waste.
Sustainability, therefore, should not be treated as a separate initiative. It should be incorporated into network design itself.
The future belongs to connected logistics
An end-to-end logistics network ultimately seeks to close existing gaps between various processes.
Every mile of the process should be interconnected with the other miles. Warehouses should be aware of the restraints imposed by transportation. Delivery crews should be able to know at every moment the inventory at their disposal. Clients must have access to this useful information.
Companies that will be successful in this area will not necessarily be the ones with the biggest fleets or the most warehouses. They will simply be the ones that can employ their resources in the most effective manner.
The future of logistics will be represented by an ecosystem consisting of the combination of the physical aspect, digital intelligence, and personnel decisions. Every mile in the process of delivery is important. However, the key advantage here is getting those miles to work together.
For companies, it means having minimal resistance, enhancing their efficiency and improving customer care. For clients, it means simply having the right product delivered at the right time.
About the author: Praveen Vashistha, Founder, Gxpress Solutions,
UltraTech’s Kukurdih unit runs fully on green energy
Cement Prices Rise Rs. 7 per Bag in September; October Hikes Expected
Andhra Pradesh Clears Rs. 30 bn My Home Cement Plant
Nuvoco Vistas, CleanMax Partner for Wind-Solar Hybrid Project in Rajasthan
UltraTech Unit Runs Entirely on Green Energy
UltraTech’s Kukurdih unit runs fully on green energy
Cement Prices Rise Rs. 7 per Bag in September; October Hikes Expected
Andhra Pradesh Clears Rs. 30 bn My Home Cement Plant
Nuvoco Vistas, CleanMax Partner for Wind-Solar Hybrid Project in Rajasthan
UltraTech Unit Runs Entirely on Green Energy
Trending News
-
Concrete1 month agoUltraTech to Deploy 600+ Electric Trucks by Dec 2026
-
Concrete4 weeks agoKirby India Breaks Ground on Fourth PEB Plant in Tamil Nadu
-
Concrete1 month agoUltraTech Cement expands green logistics with 600+ electric truck fleet
-
Concrete4 weeks agoAditya Birla Group Launches Ultravolt Wires And Cables Business

