2023 Trends Forecast for RMC Industry
Published on : Wednesday 15-02-2023
India's RMC industry is on the verge of significant growth in the near future, says Anil Banchhor, CEO & MD, RDC Concrete.
India's construction industry is one of the largest in the world and is expected to register an average annual growth of 6.1% between 2023 and 2026. Despite this growth, traditional construction practices in the country are often plagued by poor waste management, disorganised logistics, and unrestricted production of building materials leading to pollution and wastage. To combat this, many construction firms are implementing sustainable building practices, including incorporating ESG principles during planning, creating efficient risk management plans and utilising advanced technologies like ERP, BIM and data processing tools for better resource allocation.
However, construction companies should also take a keen interest in upgrading a crucial base material – cement. This can be achieved by investing in ready-mix concrete (RMC).
The future of construction lies in RMC
RMC offers a range of benefits, including convenience, environmental friendliness, reduced wastage, and improved quality and economy. Its ability to be customised to meet specific end-user needs is a major advantage, making it the future of construction.
Customer expectations in the industry are rapidly changing. These include lower wait time for building completion and the requirement of having their properties built with green materials. This can be achieved by switching to RMC. RMC plants are typically located close to construction sites, reducing the need for long-distance transportation. This reduces carbon emissions from transportation and minimises the carbon footprint, making it an ideal choice for being a sustainable construction material.
RMC is an environment-friendly alternative that can be blended with granulated steel alloys or even GGBS (Ground Granulated Blast-furnace Slag) to develop a highly durable concrete mixture with strong compressive and tensile strength.
Mitigating environmental concerns
RMC is produced in a controlled environment, which allows for precise measurements and consistent quality. The process of making RMC also requires less water, energy and raw materials as compared to traditional methods, which also contributes to its sustainability. Since the production of RMC is fully automated and computerised from the creation to batching cycle, there is less human involvement, and close to zero embedded emissions. This makes it a crucial green material.
RMC can also be made with supplementary cementitious materials (SCMs) such as fly ash or slag, which not only reduces the need for natural resources but also reduces the CO2 emissions that are associated with the production of cement. The use of SCMs in RMC also improves the durability and strength of the concrete, which extends the service life of the construction and reduces the need for maintenance over time. RMC is also recyclable, allowing for broken down, crushed, and reused in new construction projects, thus reducing demand for raw materials and minimising environmental impact.
Additionally, RMC has been given the GreenPro, a certification for environmentally friendly RMC in April 2018 by the Confederation of Indian Industry making it ideal for present-day construction activities.
Room to grow
The RMC industry is expected to grow at 15-20% CAGR. One major factor driving this growth is the increase in construction activity, particularly in the housing and infrastructure sectors. The Indian government's focus on affordable housing and infrastructure development has led to an increase in the number of construction projects, which could lead to an increase in the demand for RMC. The government has introduced a number of measures to boost the growth of the RMC industry, such as providing financial assistance and tax incentives to RMC manufacturers.
What’s next for RMC
India’s cement production capacity is expected to reach 550 MT by 2025, of which, RMC is expected to make a sizable contribution. The Indian government is promoting the use of RMC through various initiatives, such as a policy mandating its use in highway projects and endorsements by government officials at the 2022 "World of Concrete India" expo. The Smart Cities Mission (SCM) that aims to create cities that offer essential infrastructure and a high standard of living for citizens, as well as a clean and sustainable environment through the use of "smart" solutions, can also take advantage of RMC in its projects. This includes building construction with environmentally friendly materials, in which RMC plays a significant role. Another initiative where RMC can be utilised is PM Gati Shakti, which aims to enhance the country's logistics and public infrastructure capacity.
Way forward
India's RMC industry is on the verge of significant growth in the near future, driven by upcoming infrastructure projects, increased construction activity, and government initiatives. Although the sector is currently fragmented with a small number of organised players holding a market share of around 45-50%, and RMC usage limited to metro projects, it is gradually finding use in smaller cities. The introduction of GST and the Real Estate (Regulation and Development) Act, 2016, is expected to lead to increased consolidation in the industry. To sustain this growth trajectory, the industry must ensure a steady supply of high-quality aggregates, invest in a skilled workforce and research & technology for improved longevity of RMC.
Anil Banchhor is CEO & MD, RDC Concrete. RDC Concrete (India) Pvt Ltd is the largest independent ready mixed concrete company in India. The company was established in 1993 with participation from RDC Concrete, Singapore.The company manufactures and supplies Ready Mix Concrete (RMC). Its portfolio of customers includes construction companies, real estate developers, contractors, infrastructure companies, Road & Commercial Projects and individuals owners. Apart from normal concrete mixes of various grades, RDC Concrete also produces special concrete solutions using its world class infrastructure and technology and ensures product and service quality.
