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“Readymix concrete contributes in a big way in driving our vision of building a safer, smarter and sustainable world”

mix industry as it is a very unorganised sector. We are a leader in the ready-mix industry. Currently, we have around 70 plants across India, and the space we are working in has an estimated potential of 50 million m3 per annum. While I might not be able to give you a specific number; based on the rate at which this industry is growing; I can assure you that we will surely optimise our presence in it.

How you have been helping in ‘Shaping the new World’ since the change from Lafarge to Nuvoco? It has been over a year since the change took place; and the ready-mix business has been contributing in a big way in driving our company’s vision of ‘Shaping a New World’. Quality, Innovation and Trust are the pillars of our organisation; with innovation being at the very core of our efforts.

We are associated with some of the big projects which are going to change the landscape of India. For instance, we are associated with several metro projects like the Mumbai metro. We have already executed work in Noida, Delhi and Jaipur metros. Another way in which we are making an impression is by associating with beautification projects like the one in Jaipur; wherein we are supplying ready-mix products and solutions. In a year or so, when you go to Jaipur, the landscape would have changed. Some of the other large projects with which we are associated include the World Trade Center and IT Infinity Park in Chennai. In Mumbai, where space is the biggest issue and there is a lot of vertical construction taking place, we offer high grade concrete solutions that add to the

built-up area without compromising on quality or strength. One of the many high rises to which we have contributed is the Lodha World One project; where we are the only building materials company to have the capability of providing them with M95 grade concrete; also known as High Performance Concrete.

What are your impressions of the business opportunities you see emerging across India?I would say that the opportunities are immense. This assessment is based on the fact that the per capita cement consumption in the country is only 300 kg per person, per year. If you compare that with China; where it is close to 2000 kg per person, per year; you will see the potential that exists. India has just taken off; and the future prospects are enormous. Even if you were to increase cement consumption by 100 kg; it would culminate into a huge demand for concrete. Secondly, with the government’s thrust on infrastructure and other projects; the business has received a lot of impetus. Thirdly, the increase in FDI in India. These three triggers will take concrete consumption to the next level in the coming years.

How much of growth do you see in the business with roads and highway work coming up aggressively? We are quite excited about opportunities in the road segment. Although we are not supplying our products to NHAI by putting up our plants on site; we are commercially supplying to those projects. The work there is fuelling demand for concrete for various other projects in the vicinity. For instance, the bullet

train project has a huge requirement of concrete. In the near future the quantum of concrete required for this project alone is so huge that it could well drive business for four to five of the big players in the country. Apart from the bullet train; there are many other projects in the pipeline, which will lead to growth.

Could you give us an understanding of the concrete consumption patterns across projects in India? In concrete we divide consumption across 4 sectors: Housing, Industrial and Commercial, Infrastructure, Power and IT spaces. Housing is the biggest segment followed by Industrial and Commercial, and Infrastructure. From a development perspective while housing is going to grow at an estimated 7-8 per cent; infrastructure will register a faster rate, touching an estimated 8-10 per cent. Readymix players like us will majorly benefit from the rising demand in the infrastructure segment. So when you combine the growth pattern in both infra and housing going forward, there is a high demand for concrete. This will also give us a good opportunity in partnering with all those agencies associated with building infrastructure projects across India.

Please tell us about your manufacturing plants, capacities and investments. We are a leader in the ready-mix business in India, and are present across the country. Wherever there is demand for good concrete; we set up our plants and provide concrete to our customers. Ready-mix business is mostly in the big cities; and we are present in all the metros, as well as in the Tier 1 and Tier 2 cities. We also we

Nuvoco Vistas Corp Ltd (formerly known as Lafarge India Ltd) has been a part of the India’s construction landscape since 1999 through its cement business. The company, with an established presence across all major cities and towns in India, currently operates six cement and around 70 ready-mix concrete plants. Its operations across two business divisions include cements, ready-mix concrete and aggregates. Arun Shukla, Chief, Rmx & Aggregates, Nuvoco Vistas Corp Ltd spoke to Shrikant Rao about his company’s plans to contribute to the India Growth Story.

Give us an understanding of Nuvoco Vistas Corp Ltd’s performance in 2017 and the growth of the company’s RMX and aggregates business? The year has been very good for us. At Nuvoco we have done quite well in the ready-mix business managing to beat the budgeted numbers. And that is primarily the result of, both, our strategy of providing differentiated solutions and products to our customers in the market, and taking advantage of the ongoing project opportunities in India.

What is your market share?There is no structured data available of the ready- Mumbai Metro

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have our on site batching plants in interior locations; like our plant in Madhepura, Bihar where there is a locomotive factory. Similarly, we have our onsite batching plants at a location in Andhra Pradesh; where we supply products to be used in low cost housing projects. In total we have around 70 plus batching plants in India; with an installed capacity of 4 million m3. However, due to traffic restrictions and the very nature of concrete; the effective capacity is around 3-3.5 million m3.

Do you have an idea of the national requirement of concrete in the current scenario? I have shared with the potential that exists; even an increase of 100 kg per person, per year in cement consumption from the present consumption of 300 kg per person, per year holds tremendous opportunities. The government has provided impetus to housing and infrastrucuture; and we are looking to partner with all such agencies, which are engaged in development projects and taking the country to the next level. For instance, Lucknow is one of the fastest growing concrete markets; with an estimated size of 30,000 m3 concrete usage per month. We recently inaugurated our first state-of-art M1 batching plant there; marking our foray in the Uttar Pradesh market. It is located in Mohanlalganj near Lucknow, and is spread across an area of 60,000 sq. ft. The plant will primarily manufacture M60 to M75 grade concrete along with all the Value Added Products that Nuvoco offers. Simultaneously, mix concrete with customised strength ratios will also be produced that can be used in casting for slabs, beams, foundations, columns and overall RCC works. Additionally, we have plans to go to other geographies that have similar good opportunities for growth.

Tell us about the benefits Nuvoco’s concrete products are offering to construction in a limited shelf life environment.Concrete is a very local business because the product has a shelf life of only four hours; hence, you cannot export it or take it to far flung destinations. However, with our know-how, we have managed

to extend its shelf life to around 6-8 hours. Nuvoco is a pioneer in offering premixed concrete solutions in a bag called Instamix. This product is an ideal solution for home builders in areas which cannot be accessed by the traditional transit mixers. The product has seen great demand in the market, and won a lot of appreciation from all its users.

What are the pain points of the RMX business right now? This business experiences a lot of volatility; ranging from uncertainty in getting raw materials of consistent quality to traffic restrictions in cities, which pose challenges for footprint and movement. Transporting concrete from plants in cities to the interior is big challenge. Then there is also the issue of fluctuating demand and availability of natural sand. The industry is fragmented and contains a large number of unorganised players. However, the advent of some government initiatives like GST and RERA has leveled the playing field.

Very briefly if you could talk of the services offered to our customers….We believe in providing differentiated products and solutions to our customers. We have a world class innovation facility based out of Mumbai called Construction Development and Innovation Center (CDIC) wherein we work on future products. Apart from Instamix, we offer a wide range of value added products like Agile, which is a self-compacting concrete; its easy fluidity allows for the perfect filling of all shapes; with high quality surface finish. Artiste is a range of decorative concrete that combines freedom of design with low maintenance and durability. Xlite, the low-density concrete, reduces structural weight and lowers thermal conductivity. All these products, and more, are being used in iconic projects across the country. We also have readymix solutions for the cold weather and concrete solutions for running water. The list is endless, actually.

What is your strategy to extend your reach in the market?Readymix is a typically B2B business;

with various segments having different requirements. Therefore our strategy is to Differentiate and Innovate; namely, approach businesses with specific, customized products and solutions. For instance, for infrastructure projects like the metro, we provide concrete, which fulfills their requirement of quality and durability. Similarly, in the real estate and commercial space, we have products aimed to reduce costs and to give customers value for money.

Tell us of your plans to take business to the next level.The concrete business is expected to grow at 7-8 per cent; and the estimated concrete market size is 45 million m3. By 2020-21, concrete consumption is expected to increase to 1.3 million m³ and our endeavour will be to take advantage of the opportunity by being present in various geographies when it comes to commercial ready-mix concrete. One way in which we will be part of the country’s development is by partnering with various infrastructure bodies. With on-site batching plants; we have plans to expand our business. The end result is to attain our vision of creating to a safer, smarter and sustainable world.

How do you expect to fare in 2018-19?Let me just say it will be better than 2017-2018. At this juncture, the concrete industry has a very competitive landscape. Our strategy will be Differentiation and Innovation. We will differentitate ourselves by being close to our customers and enriching their experience; by continuing to build more sustainable relationships with them – right from reaching out, to understanding their problems, and delivering solutions that they seek. Our objective is to provide them with hassle-free interaction and speed in resolving their issues. We anticipate there will be three thrust areas for concrete demand in India: Housing, Industrial-Commercial, and Infrastructure. Our focus will be mainly on large infrastructure projects as well as housing; and be an end-to-end solution provider for them by covering the entire value chain. CBT