Cement Industry Looks Beyond Commoditization

The Indian cement industry, which is one of the largest in the world, has traditionally focused on commoditized products. Major cement companies primarily manufactured ordinary Portland cement and supplied in bulk. However, in the last few years, some companies have started realizing that there is an opportunity to move beyond commoditization by introducing specialized cement products catering to specific construction needs. Specialty Cement is one such company which has strategically positioned itself as a specialist cement manufacturer rather than a volume player.

Specialized Products Filling Application-Specific Needs

Specialty Cement was set up in 2005 with a vision to develop and supply application-engineered cement products. Rather than focus on large volumes of ordinary cement, the company identified specialized cement application areas which were underserved. It launched products like sulphate resistant cement ideal for marine structures, low alkali cement suitable for prestressed concrete, white cement for architectural applications and oil well cement used in oil drilling. Each of these products is designed to fulfil the technical requirements of the specific construction application. The company also launched products like special pavement cement and structural repair cement which have good demand from infrastructure and real estate sectors. With dedicated R&D efforts, Cement has continuously enhanced its product portfolio over the years. Currently, specialized products contribute over 70% of its total revenues.

Focus On Technical Support And Collaboration

Rather than rely only on marketing, Cement realized the importance of technical support for specialized products. It has invested in setting up a well-equipped R&D lab and employs qualified cement technologists and engineers. The technical team regularly interacts with architects, structural designers and engineers from core industries to understand their requirements. Cement also collaborates with academic institutes and industry participants on joint research projects. It shares the technical knowledge gained with customers through training programs, manuals and online resources. This emphasis on technical know-how has helped the company gain credibility as a problem-solving partner for discerning customers. It is now seen as a go-to destination for specialized cement solutions even for large and complex projects.

Manufacturing Focus Despite Limited Capacities

Despite its relatively smaller plant capacities compared to large players, Cement gives highest priority to quality and consistency in manufacturing. All its three cement plants located in coastal regions are equipped with German machinery and automated systems for strict quality control. The plants primarily use inline blending technology which ensures homogenous mixing of raw materials as per the product recipe. The company also continuously upgrades pollution control equipment to meet stringent environmental norms. It has obtained several international certifications recognizing its capabilities and standards. Cement believes that high and reliable product quality is critical for specialized applications, especially when customer safety is involved. This manufacturing focus has enabled the company to tap even export markets and work on projects of national importance.

Customized Logistics And Supply Chain

Given the technical nature of its products, Cement realizes that logistics and supply chain management are equally critical. Unlike ordinary cement which can be transported in bulk, specialized cements often require pack-level customized solutions. The company collaborates with logistic providers and has invested in fleets of specialized trucks, bags, containers and warehousing facilities. It also provides value-added services like on-site mixing, mobile batching plants and supply of complementary materials. For overseas and critical domestic projects, Cement even arranges for engineering support during construction. This level of customized logistics has won appreciation from multi-national customers. The company is now expanding its logistics infrastructure and online interface to achieve last-mile delivery efficiency.

Positive Industry Outlook And Future Plans

The growingthrust on infrastructure, real estate, industrialization and core sector construction is positive for the specialized cement industry. Many large projects coming up in areas like airports, ports, smart cities, oil & gas and renewables will involve complex construction methods. This will drive demand for application-engineered cement solutions. Specialty Cement is well positioned to benefit given its focus on technical collaboration and customized solutions. It is now scaling up manufacturing capacities through brownfield and greenfield expansions.

In Summary, the company also intends to venture overseas through collaboration models. Cement is confident that its niche strategy will allow it to maintain margins and achieve sustained growth even in changing industry scenarios. With continued progress in R&D and customer partnerships, it aims to strengthen its credentials as a solutions leader in specialized cements.

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