CEMENT
CONSTRUCTION WEEK JULY 2019 57supply of inputs. It allows for more efficiency and control of
the development ecosystem, and thus shields our customers
from elevated costs.”
There are mainly three regular varieties of cement: OPC
(Ordinary Portland Cement), PPC (Portland Pozzolana Ce-
ment) and PSC (Portland Slag Cement). PPC (with Fly ash)
and PSC (with Slag) are both blended cements and consid-
ered suitable for all types of buildings.
OPC is used to make almost all concrete due to its strength
and durability factors. It is used to make pavements, floors,
bridges, mortar for joining masonry and plaster to give per-
fectly finished walls. A uniform and fine blend of Portland and
Pozzolana produces a cement called Portland Pozzolana Ce-
ment (PPC) and is generally used in high rise buildings, un-
derwater concrete structures and in mass concrete construc-
tions. Quick Setting Cement, as the name suggests, is used in
constructing piers for bridges.
WORKING HAND-IN-HAND
The demand for cement is in the real estate sector, infrastruc-
ture and industry expansion sectors. Out of these, the major
demand is from the real estate sector. The real estate sector
and cement industry are closely related and any hike in ce-
ment prices will directly affect the real estate sector.
Shivamurthy says that regular price hikes of cement has
crippled the real estate sector. “It has also increased con-
struction cost. The developers’ apex body, CREDAI, believes
that a cement lobby is active and has demanded an interven-
tion from the government. Several developers also feel that
price hikes will play spoilsport for customers as, ultimately,
they will feel the brunt of this hike. Even though the real estate
sector is witnessing a slowdown, residential demand contin-
ues to stay steady and growing as people need a house to
live in. However, this matter is being dealt by developers with
dealers and best prices are being arrived at for major projects
to fit into their budget.”
Poddar believes that as far he knows most developers
haven’t forged any partnership with manufacturers. He
adds, “Registered cement companies seek higher prices
from developers considering the amount of consumption.
Cement producers have a perception that developers get
a good margin per square foot but they need to revisit
the facts when it comes to the affordable sector. Cement
companies may have a strategic relationship with devel-
opers but there’s no partnership between cement compa-
nies and developers.”DEVELOPERS MUST
CONSIDER MARKET
DATA OF LAST THREE
YEARS TO DETERMINE
AN OVERALL PRICE TREND.
SHIVAMURTHY KB
Though cement causes pollution during construction, manufacturers are
adhering to several sustainability measures.PRICE RISES IN METROS
ARE DUE TO MODERATE
GROWTH IN DEMAND,
THIS IS AN INDICATION
THAT MARGINS ARE NOT HEALTHY.
ASHOK MOHANANI