Archive · 3 Dec 2025
Cement Companies Focus on Premium Products
Some big cement companies in India are trying to sell more expensive, premium cement instead of raising prices.
They think this will help them make more money.
The companies say people are willing to pay more for better cement when building their homes.
But some experts think this might not work for very long because other companies will also start selling premium cement, and it might be hard to keep prices high.
The companies are also trying to save money by making their factories more efficient.
They hope this will help them make more money even if they can't raise prices.
Cement companies are focusing on premium products to lift margins instead of raising prices.
Nuvoco Vistas reported a 44% premium mix in Q2 FY26 and plans to increase it further.
Demand is expected to pick up mid-November, with potential price revisions from January 2026.
Large players are targeting cost reductions of ₹300-500 per tonne over the next 2-3 years.
Experts warn that premium mix alone cannot drive meaningful margin gains without cost controls.
- Who
- Cement companies like Nuvoco Vistas Corp., Birla Corporation, and JK Lakshmi Cement
- What
- Are focusing on premium products to lift margins instead of raising prices
- When
- After the GST rate on cement was rationalized in September
- Where
- In India
- Why
- To protect profitability amid heightened competition and pass on the benefit of lower taxes to consumers
- Companies Involved
- Nuvoco Vistas Corp., Birla Corporation, JK Lakshmi Cement
- Market Share
- Top four companies account for 60% of India's cement production capacity
- Premium Mix
- Nuvoco Vistas reported a 44% premium mix in Q2 FY26
- Expected Demand Recovery
- Mid-November
- Potential Price Revisions
- Expected from January 2026
- Cost Reduction Targets
- ₹300-500 per tonne for large players, ₹50-200 per tonne for mid-tier peers