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ABSTRACT. The Indian Construction industry has been traditionally labour oriented. The pace of
mechanization in the past was very slow due to the availability of cheap and abundant labour, lack of
capital investment and highly fragmented nature of the construction sector.
The liberalization of Indian economy started from 1989 and paved the way for large-scale investments
in infrastructure, industrial and agriculture sectors. The mega projects required speed and quality of
construction compatible with international standards. It led to partial mechanization of construction
industry and advent of Ready mixed concrete in India is the outcome of this development.
The Ready Mixed Concrete in India on commercial basis started in 1994 and has achieved about 2%
conversion from the site-mixed concrete by the year 2001. It is heartening that the acceptability of
Ready mixed concrete is increasing though at a slow pace. The entry of foreign firms and major
Indian cement producers in this field are likely to provide necessary boost to this industry in the
future. The growth prospects of Ready-mixed concrete are enormous, provided requisite support is
given by the regulatory authorities, consumers and decision makers. At the present, the cost
differential between Ready-mixed concrete and site mixed concrete is proving major constraint in its
growth. This problem will be resolved with the increasing awareness about the advantages of RMC
by the end consumers.
Keywords: Ready-mixed concrete, construction, site, growth, constraint, environment, advantage,
cement, additives, admixtures, plant, quality, assurance.
255
INTRODUCTION
Construction is the second largest industry in India, next only to agriculture. According to the
infonnation published by National Institute for Construction Management and Research (NICMAR),
construction accounts for more than 40 percent of the national plan outlay, contributes 5 percent to the
GDP annually and 78 percent to the gross capital formation 1. Nearly 16 percent of the nation's
working population is reportedly dependent on construction for its livelihood. Nearly 32 million
workers and professionals are directly employed in construction activities. Of, them, 24 million are
unskilled 2 . Thus, the construction industry in India has, by and large, been a labour-intensive
industry, although change in favour of modernization and automation is now discernible in certain
fields. Ready-mixed concrete is one such field.
Concrete is largest "man-made' material of construction all over the world. Excepting cement, (and
additives, if any) which is a factory - produced material, all other ingredients of concrete are locally
available. It is estimated that world over about 1650 million tons of cement and 6500 million tons of
concrete were consumed during the year 2000 . The average, per capita annual consumption of
cement worldwide is about 260 kg and that of concrete 1 ton, while in India, the cement consumption
is about 95 kg and that of concrete 375 kg (0.156 m\ The cement and concrete consumption is
expected to grow at the average rate of 2 to 3% world over while in India it is expected to grow at 5 to
6% during the next decade
Cement is an intennediate product in construction, as it requires further processing to get the end
product - that is concrete. Traditionally, concrete construction has been a labour-intensive activity.
Even today, an overwhelming majority of concrete produced in the country is site mixed, and most of
it is volume-batched. Although, weigh-batching and use of a mixer are now insisted upon on many
medium-sized construction projects, the labour component in the production of concrete is still very
high. The situation is however changing in favour of mechanization especially in the urban areas.
This is conducive to the development of Ready-mixed concrete in India.
NEEDOFRMC
One of the major casualties of heavy reliance on labour-intensive techniques of concrete construction
is the quality of work. With emphasis on cost as the over-riding factor in deciding the award of
contracts, there was no premium on quality of concrete. As a result, it is no surprise that the
phenomenon of early deterioration of concrete structures is assuming serious proportions in the
country. Fortunately there is growing realization that quality cannot be achieved by relying on the
age-old labour-intensive techniques of concrete construction. Besides quality, speed of construction
is also an important factor. Faster speed generally leads to economy in construction. Site-mixed
concrete has serious limitations as far as speed of construction is concerned. The breaks in concreting
operations lead to provision of numerous construction joints, which are a pennanent source of trouble
and affect durability of structure adversely.
During the past few decades the concrete technology has advanced considerably and great emphasis
has been made in the understanding of concrete as a material, its microstructure, the phenomena of
deterioration, effects of various additives on the properties of concrete, etc. As a result, the character
of concrete has been changing. It has no longer remained a simple mixture of cement, sand and
aggregates to be mixed in a certain proportion, say 1:2 :4, but a scientific conglomeration of these
materials along with special additives like chemical admixtures, and mineral admixtures .
Transportation and handling of these additives, as also their dispensation and mixing in concrete
cannot be effectively accomplished by manual means. This requires mechanization and automation.
256
Environmental issues have also assumed greater importance in recent years. During the past,
environmental considerations did not figure at all in project planning; therefore site storage, mixing,
wastage, etc were acceptable. However, especially in urban areas, the work sites do not have
adequate space for storage of cement, aggregates, sand, etc. The materials of construction quite often
spill on the roads, leading to traffic delays and blocking of drainage lines causing inconvenience to
the users.
HISTORICAL PERSPECTIVE
Ready-mixed concrete was first patented in Germany in 1903, but the means of transporting it had not
been developed sufficiently by then to enable the concept to be commercially exploited. The first
conunercial delivery of RMC was made in Baltimore, USA in 1913 and the first revolving drum type
transit mixer, of a much smaller capacity than those available today, was born in 1926 3. By the late
1920s and 1930s, RMC was introduced in some of the European countries.
Some of the early plants were of a very small capacity. In 1931, a ready-mixed concrete plant set up
at what is now the site of Heathrow airport, London, had a 1.52 m3 (2_yd 3) capacity central mixer,
supplying six 1.33 m 3 (1 1'4 _yd 3 ) capacity agitators with an output of 30.58 m 3lhr (40 yd 3/hr).
Aggregates were stored in a four-compartment one of about 76.45 m (100 yd 3) capacity. The cement
was handled manually in bags. Till the beginning of World War II, there were only six firms
producing RMC in the UK. After the war, there was a boost to the RMC industry in the whole of
Europe, including the UK. In the mid-nineties, there were as many as 1,100 RMC plants in the UK,
consuming about 45 percent of the cement produced in that country.
In Europe, the European Ready Mixed Concrete Organization (ERMCO) was formed in 1967 and is a
federation of the national associations of the respective countries. In 1997 there were 5,850
companies represented by it having a turnover of 15 billion ECUs and producing a total of 305
million m 3 of RMC 4 . Cement consumption ranged from 33-62 percent of total cement sales, and
RMC consumption of 0.3-1.4 m3/capita/annum (0.72 - 3.36 ton) 4.
In the USA, till 1933, only 5 percent of the cement produced was utilized through the RMC route.
ASTM published the first specification of ready-mixed concrete, C34, in 1934. The industry in USA
has progressed steadily. During 1950 to 1975, the RMC industry's consumption of total OPC used in
the USA increased from 1I3 rd to 2/3 rd and by 1990, this consumption increased to 72.4 percent of the
total OPC used in that countr/. There were as many as 5,000 RMC companies in the country in
1978. This number however, dropped to 3,700 in 1994 with only 6 to 7 percent of the companies
controlling nearly 50 percent of the Ri\1C market share. According to Gaynor, this trend of
consolidation of the market has fostered greater technical sophisticationS in the industry.
In Japan, the first RMC plant was set up in 1949. Initially, dump trucks were used to haul concrete of
low consistency for road construction. In the early 1950s, mixing type truck mixers were introduced
and since then there has been a phenomenal growth of the industry in that country. By 1973, there
were 3,413 RMC plants 6 in Japan and this number rose to 4,462 by the end of the 1970s. By 1992
Japan was the then largest producer of RMC, producing 181.96 million tons of concrete6 . In many
other countries of the world, including some of the developing countries like Taiwan, Malaysia,
Indonesia, as well as certain countries in the Gulf region, the RMC industry is well-developed toda/.
The development of RMC industry world over has followed'S' curve. The progress during the
formative years say upto 10 years is slow, then it follows high growth path for the next 30 to 40 years
and again it start slowing down until it reaches a plateau. The growth pattern of RMC world over can
257
be divided into three phases. The phase I or the introduction phase is considered upto 10% cement
consumption by the RMC industry. The phase II or the growth phase is assumed upto 50% cement
consumption and phase III or consolidation phase is considered thereafter. During the consolidation
phase, the growth touches the plateau and shows a nominal growth in the range of 1-2%. Based on
the available data, the growth pattern of RMC in different countries is given in table - 1
Table - 1- Growth pattern ofRMC in different countries
Growth
Countries
Phase (I) Cement
Pattern
consumption (10%)
number of years
taken
Rapid
Finland,
Greece,
West 5 to 6
growth Germany, Japan, Switzerland,
Normal Spain, Ireland, Italy, Austria, 10 to 11
Growth Belgium,
Great
Britain,
Norway, Sweden, Australia
Slow
Portugal, France, Netherlands, 18 to 20
Growth Denmark
Phase (III)
Consolidation phase
achieved after
number of years
20 to 35
30 to 35
35 to 40
40 to 45
45 to 50
258
set up the first commercial plant at Bandra in Mumbai, which was followed by another in Navi
Mumbai. After this, a number of players have set up RMC plants in the country, mainly in the
metropolitan areas. Based on the information obtained from various RMC manufacturers, there were
47 plants in existence in the country by the end of year 2001 with a total capacity of 2,576 m3 /hr, as
given in Table 1.
At present nearly 0.2 million m3 RMC per month (2.4 million m3 per year) is produced by
commercial plants in India. The consumption of concrete in India during the year 2000 is estimated
170 million m3 . Though no authentic figures are available, but it can be assumed that nearly 25 to
30% concrete has been used by major mega projects where weigh-batched concrete through dedicated
plants is used. The balance 120 million m3 is used on medium, small and individual house building
projects . If the penetration of commercial RMC in this segment is considered then RMC has a share
of about 2% at present. The slow growth pattern model requires 18 to 20 years to achieve 10%
cement consumption. The actual start of commercial RMC in India can be assumed from 1994 and it
has already taken 8 years to achieve 2% penetration. The further growth of RMC in India will depend
upon numerous factors and some of these are discussed in this paper.
. I n d'la In
. t h e vear 2001
TabIe: 2- RMC Plants
I
In
SI.
Name of the
Location
No.
Manufacturer
6
7
8
Capacity
m3/hr
No. of plants
206
86
112
80
80
3
2
2
1
1
Sub total
Hyderabad
Bangalore
Delhi (Gurgaon, Noida)
Chennai
564
110
80
110
80
9
2
I
2
I
Sub total
Mumbai / Navi Mumbai
Bangalore
Chennai
Sub total
Hyderabad
Coimbatore
Mumbai / Navi Mumbai
Bangalore
Chennai
Sub total
Bangalore
Hyderabad
380
30
30
60
90
90
6
2
I
1
4
1
I
2
3
3
300
10
160
80
2
1
Sub total
Mumbai / Navi Mumbai
Delhi
Sub total
Mumbai / Navi Mumbai
Chennai
240
3
I
2
3
2
2
259
160
80
80
320
120
60
180
240
112
9
10
11
12
13
Godrej
Ashok Bui1dcon
India Cements Ltd
Priya Cements Ltd
Pune Research Concrete
ltd
14
Tarmat
90
60
30
30
Mumbai
Pune
Sub total
30
30
2
1
1
1
1
**
1
1
2
47
60
TOTAL
2576
1950 1982
1982 1991
1991-2001
4.2
5.35
6.23
% Growth of cement
industry (average)
6.5
8.86
7.38
Growth of
cement industry
over GDP
1.54
1.65
1.18
The data of GDP growth and cement growth are not coherent and have fluctuated widely during the
various plans and annual plans. However, the following inferences can be drawn;
a. The cement industry growth has always been higher than the GDP growth
b. The cement industry has grown faster during 1981 - 1991 the era of partial and full decontrol
of cement industry.
c. The GDP growth has been higher after 1991, the post era of liberalization
d. The proportion of cement industry growth to GDP growth has come down during this period
from the average of 1.5 - 1.6 to 1.2
In coming times, the ratio of cement industry growth to GDP may vary between 1.1 to 1.2. If we
assume GDP growth of 5.5% upto the year 2012,5% from 2012 to 2022 and 4.5% from 2022 to 2032,
the pattern of cement and concrete consumption in the country may emerge as given in table 4
260
Commercial
RMC
(Million m 3)
168
282
348
Assumptions: - 70% of cement consumption is assumed in concrete. 60% of total concrete used in the
country is assumed to fall under commercial RMC as more and more captive plants are likely to be set
up on mega project.
Considering the growth pattern of RMC world over, potential in India and the progress made over the
last 8 years, the growth of RMC in India may follow a path slower than the slow growth pattern
followed by it internationally. The 2% penetration is achieved in 8 years time and it may take another
10 to 12 years to reach 5% penetration. The growth of commercial RMC in India can be estimated as
given in table - 5
(1)
Total Concrete
consumption
(million m3)
(2)
Concrete consumption
on sites without
dedicated plants (60%)
(3)
RMC
penetration
% of (3)
(4)
Total RMC
usage
(Miom 3)
(5)
Expected
number of
plants
(6)
2002
2007
2012
2017
2022
190
280
370
470
580
120
168
220
282
348
2
3.75
5.00
7.50
10.00
2.4
6.3
11.0
21.00
34.8
47
98
160
260
348
In arriving the figures few assumption are made (a) The growth pattern is expected to accelerate after
2012 (b) Utilization of plants to increase from present 6000 m3/month to 10,000 m3/month over the
years.
261
ADVANTAGES OF RMC
CONCLUSION
The growth of any industry especially in a developing country is dictated by technology absorption,
immediate markets capital investment, risk taking capacity, government support and future prospects.
Construction will continue to dominate Indian economic scene and cement and concrete will remain
the backbone of the construction industry. In this scenario, cement and concrete are indispensable
components of the engine for the economic growth. Cement and concrete will continue to grow at 1.1
to 1.2 times of GDP growth. With the international exposure of the economy, premium will be laid
on life cycle cost rather than on initial cost of the projects. It is here that RMC will receive
considerable importance over site mixed concrete.
The growth of RMC in India over last 8 years can be viewed from both optimistic and pessimistic
perspectives. It would be more prudent to view the developments positively. In a short span of time,
RMC has made a dent for itself throughout the country. People have become aware of it, people like
it, people want to use it, people have a very favourable opinion about it and it is this changing mindset
that will accelerate the future growth of RMC in India. There are numerous constraints in its growth
at present but the over whelming advantages the product offer will overcome the existing empasse.
World over growth of RMC has followed'S' curve and in India also, same pattern will emerge, may
be with minor changes in the gradient of the curve. The RMC industry has arrived in India and it will
continue to forge ahead with accelerated pace in the future.
REFERENCES:
1. Women in construction.
2.
3.
4.
5.
6.
7.
8.
9.
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