Why Shree Cement’s H.M. Bangur is sitting out of India’s aggressive cement bidding wars

One trend we are seeing is cement manufacturers owning multiple contiguous areas. For example, Aditya Birla Group has entered the paint industry through Grasim, Adani has entered cement consuming industries and JSW has entered the steel industry. What about Shree?

Be it UltraTech, JSW, Adani… Everyone has more than one job, whether it is related to it or not. Our company has a single business. Our family also has a business. We won’t like to diversify. Because sometimes you see that all your profits come from a single business and you feel that this may be risky. But often, when a group has three or four businesses, the main business may be making almost all the profit and the other businesses are losing money. We will continue to focus on cement and ready-mixed concrete (RMC), which is essentially cement. Only 8% of cement in India is currently sold as RMC. In the UAE, 70-80% of cement is sold as RMC. This is the model that India should adopt. RMC will come and without it cement cannot be sold efficiently.