Laying An Eco-Friendly Foundation With Green Cement Solutions

Sanjay Wali

Sr. Executive Director Head of Sales & Marketing Dalmia Cement (Bharat) Ltd.

Dalmia Cement is one of India’s pioneering homegrown cement companies which operates a manufacturing capacity of 35.9 MnT per annum (MTPA), across 14 cement plants which are spread across 10 states. Dalmia Cement is 12 times water positive and will be 20 times water positive by 2025. The company has the lowest carbon footprint in the cement sector, globally. It has also been ranked No. 1 in the global cement manufacturing sector by the Carbon Disclosure Project (CDP) for business readiness towards a low carbon economy transition. Mr. Sanjay Wali, Sr. Executive Director & Head of Sales & Marketing, Dalmia Cement, in conversation with CE&CR, shares industry insights, market strategy, sustainability efforts and much more.

CE&CR: What is the outlook for cement Industry?

Sanjay Wali: The all-India cement production in FY22 is expected at 332 million tonne, up 12% from last year supported by pent-up demand, rural housing requirement and pickup in infrastructure activity.

The rural housing demand is expected to be supported by the robust kharif harvest and continued healthy procurement, supporting farm income. The significant pick up in the infrastructure activity backed by the National Infrastructure Pipeline (NIP) is likely to see healthy traction in terms of new project awards and execution in the medium term, which is expected to boost cement demand.

Cement capacity additions are expected to increase by around 35-40 million tonne per annum in FY'22 and to 30-33 million tonne in FY'23 from around 15 MTPA in FY 2021. In FY’23, the production is expected to grow 8% to around 358 million tonne.

CE&CR: How has raw material especially coal and energy prices affected product pricing and overall cement sales?

Sanjay Wali: Cement production and distribution is witnessing outsized cost pressures from coal and energy prices. Retail prices of cement, after rising by an average ₹10-15 per bag pan-India since August’21 are still under pressure. However, given the strong demand outlook, prices are likely to go up again by ₹15-20 in the next few months. Furthermore, we also see sales volume rising over 10% in this fiscal, compared with a low base of the pandemic impacted FY 2020-21. These interplays should largely offset the impact of cost pressure on cash accruals and keep credit profiles stable.

CE&CR: Please share insights on Dalmia Cement’s go-to-market strategy. How is it different from competition in the market?

Sanjay Wali: Our go-to-market strategy straddles across consumers, influencers and the channel. We focus with equally on these 3 stakeholders. On top of this, we are committed to net-zero carbon emission by 2040, for which we are focusing on increasing the sales of greener cement options. These objectives coupled with added focus on leveraging digital technology, give us an edge in the market.

With a total capacity of 35.9MnT we at present are the 4th largest cement player in the country and enjoy a leading market position as a highly attractive region in the East. We aspire to be a pure play cement company and attain a total capacity of 130MnT by 2031 and emerge as one of the most profitable & environment friendly company in cement sector in India.

While we aspire to be the leading player in IHB segment, we also play a big role in building nation critical infrastructure. We have mastered the art of offering products which perfectly match with the specific needs of Institutional customers. We are the pioneers in the development of Railway Sleeper cement and Oil Well Cement in India. We are also the largest manufacturer of SRPC cement in the country. Our innovative offering, ‘DALMIA INFRAGREEN’ is a fast setting, high strength cement. Runways, highway stretches, metro sections, can be opened within 3 days post the laying of concrete using DALMIA INFRAGREEN.

CE&CR: What is your view on the macro environment impacting the growth of construction and infrastructure segment?

Sanjay Wali: Cement industry has been on a volume growth path led by several government initiatives and has bright prospects for this financial year. The government’s spending on infrastructure projects such as Bharatmala project and affordable housing schemes such as the Pradhan Mantri Awas Yojana (PMAY) with enhanced budgetary allocations will be the primary drivers of growth for the cement industry.

CE&CR: Take us through the concept of Green cement? How does it help in reducing the carbon footprint and encourage sustainability?

Sanjay Wali: We take pride in leading the initiatives which are paving the way for a carbon negative cement industry. Atmospheric CO2 levels and cement consumption is increasing with time. We at Dalmia Cement recognize the risk and are taking steps to reduce the carbon footprint. Sustainable living will be the way of life in the future and green cement is one of the most effective ways to lay an eco-friendly foundation.

Dalmia Cement extensively uses cementitious materials such as blast furnace slag from the steel industry and fly ash from thermal power plants, to lower the carbon emissions associated with cement production. This strategy has helped us to become one of the lowest carbon footprint cement company in the world and one of the most profitable as well. Dalmia Cement is focused on manufacturing Greener (blended) cement. Dalmia Cement’s per ton carbon foot print in FY’14 was 670 Kg CO2 /t cement, which by company’s effort reduced to 492 kg CO2 /t cement in FY’21 - a reduction of ~27% in 7 years.

CE&CR: Tell us more about the market response received for Dalmia Cement’s green product portfolio.

Sanjay Wali: The response from the market for Dalmia Cement’s green cement offering has been good. Our products are widely accepted and preferred by both IHBs and Institutional customers.

We have received various accolades and accreditations from leading Industry bodies. Our range of blended cement has received accreditation from “Indian Green Building Council (A CII body) and GRIHA (Green Rating for Integrated Habitat Assessment). Accreditation from these bodies mean that a builder or a promoter aspiring to build a green building can directly benefit by using Dalmia Cement’s Green Cement. Also by virtue of doing exemplar work in reducing company’s carbon footprint and promoting environment friendly cement option Dalmia Cement has gained several recent recognitions like “Greenest Product of the Year Award at Construction Week Award”, “Platinum Award under Apex Green Leaf Award”, “Sustainability 5-star Award by Ministry of Mines” etc.

CE&CR: What are the foreseeable trends driving cement sales in the near future?

Sanjay Wali: Cement volume growth will be driven by demand revival across segments − infrastructure, housing and industrial − as the impact of COVID-19 wanes.

Also, cement conventionally has been a low involvement category. However, the journey of involvement has already begun. Growing awareness amongst consumers and increased and improved availability of special products for special applications is propelling consumer’s involvement in this category.

Secondly, now consumers and influencers are far more active on digital platforms. The organizations which will be able to leverage the digital touchpoints will outperform the competition in the market.

For further information,
visit: www.dalmiabharat.com