Cementing a Shattered Dream
Dr Arun Kumar

Post liberalization India will have over 41 million people without a proper roof over their head by 2000 AD.  While there is a significant improvement, both qualitatively and quantitatively in the housing stock, the housing shortage will continue to rise well beyond 2000 AD.  The government continues to pledge and sanction huge funds for housing; but most of the time with little success.

On the other hand, the cement industry continues to scale new heights.  The cement industry heavy weights touched the mark of 83 million tonnes installed capacity in 1995 while projecting runaway growth for the next decade.  It planned to reach a capacity of 90 million tonnes by 1997 and 120 million tonnes by 2005.  Its plans seem to have gone awry with self imposed production cuts in 1998 and rapidly falling prices of cement nationwide.

The matching of market expectations of cement and building materials industry with latent demand for affordable housing will need radical innovation.  Sustainable building materials and technologies with decentralized production are needed in large numbers to establish primary market acceptability of building alternatives.  The large scale dissemination and market promotion of total building solutions will require Technology Promoters.  Pioneering institutional initiatives for technology promotion have been launched by the Housing and Urban Development Corporation through its building centers programme for all districts of the country and the most recently initiated Technology Parks for urban centers.  The Building Materials Technology Promotion Council is also very actively engaged in commercial packaging of building technologies and their promotion through entrepreneurs.  Why is the impact of these initiatives limited in terms of reach, spread and acceptability ?

One major missing link is the Market Development of emerging building materials and technologies.  Conventional market mechanisms have been unable to catalyze conversion of basic needs into Market Demand.  The demand for cement continues to be sluggish even though cement companies continue to cut prices and invest in aggressive advertising. Cement based building products and technologies are still expensive and unaffordable for the mass market.  The opportunity exists right now for large scale commercial application of cement based building products like Ferrocement roofing channels, beams, trusses and water tanks; concrete blocks for walling, paving and rural roads; funicular shells, concrete door and window frames and prefabricated beams and structural elements.  All these can assist in marketing large volumes of cement as the production of products can be decentralized and widespread. Branding support can further enable the market acceptability of building products.

The Cement companies are in the best position to lead the charge for Market Development; essentially for boosting demand for cement in rural areas.  They have large networks of dealers and distributors and strong brand presence.  Opening up markets for cement based building products through marketing support, franchising and training support are within their easy reach.  Fifty years of controlled economy has resulted in the pursuit of a myopic approach by the large market players in the cement business.  Let us hope that the transition into the new millennium will bring forth a new wave of corporate citizenship and with it, the fulfillment of a dream.  q

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