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Impact of COVID-19 On Ready-Mix Concrete RMC Indus
Impact of COVID-19 On Ready-Mix Concrete RMC Indus
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Article history: India witnessed its first case of coronavirus infection (COVID-19) on January 27, 2020, in Kerala, India. Since
Available online xxxx then, the infection has spread rapidly across the country and the pandemic outbreak has affected all indus-
tries severely including the construction sector. This study aims to understand the effect of the COVID-19
Keywords: pandemic on the construction sector, particularly the ready-mix concrete (RMC) industry. An attempt was
COVID-19 made to investigate the liabilities and the losses incurred by the RMC industry in terms of income and
Ready Mix Concrete change in the production of concrete during the coronavirus outbreak. A preliminary survey was carried
Construction Management
out to create a database of the RMC plants located nearby the study area i.e., Ahmedabad City in the state
of Gujarat, and to prepare a questionnaire using google forms. The RMC plants were visited and from the
inputs of RMC officials, statistical insights were drawn. The study reveals that during the COVID-19 lock-
down period there was almost a 40% loss in concrete production & 60% loss in the income generated by
the ready-mix concrete industry. In addition to this, it was also found that the industry had to pay off lia-
bilities like land rent, electricity bills, staff salaries, etc. during the time of the pandemic. This study provides
the opportunity for RMC plants to identify the vital elements involved in the operation of the plant which
can be affected due to such pandemic and provides guidelines to reduce the effect of any such pandemic on
the plant’s production & sales by ensuring the stability of all assets involved in its supply chain.
Copyright Ó 2022 Elsevier Ltd. All rights reserved.
Selection and peer-review under responsibility of the scientific committee of the 2022 International Con-
ference on Materials and Sustainable Manufacturing Technology.
1. Introduction ment of materials. Hence the construction sites were closed and/
or operated with a minimum workforce [1-3].
The severe acute respiratory syndrome coronavirus 2 (SARS- Ordinary Portland Cement (OPC) commonly called cement is
COV-2) commonly known as COVID-19 caused a major global eco- one of the basic ingredients for the ready-mix concrete (RMC)
nomic downfall by crippling the movement of men, materials, and industry. During the COVID-19 wave in the years 2020 and 2021;
machinery. Due to the potential of the virus to spread rapidly and all the OPC manufacturing units were shut which caused a break
infect thousands of people, as a control measure to break the infec- in the supply chain for the ready-mix concrete industry due to
tious chain of the virus, a lockdown/restriction to the movement the non-availability of Ordinary Portland Cement. For over a dec-
was implemented in many parts of the world. In India, nationwide ade, it was observed that the global demand for OPC was shrinking
lockdown and curfews were implemented to contain the spread of year by year as shown in Fig. 1 which depicts that in 2019 the
the virus. The construction industry was also crippled during the countries were producing OPC less than their capacity as the over-
pandemic as a large number of workers/laborers are involved in all global demand for cement had reduced. Due to the outbreak of
various construction activities, and the risk of transmission of coronavirus at the end of the year 2019, the demand for OPC was
COVID-19 was high. Also, the transportation sector was seriously projected to further decline in the year 2020, as shown in Fig. 2
crippled due to which there was a huge disruption in the move- [4]. The dark grey zone indicated the regions like Southwest Asia
with the strongest projected decline in cement demand with a
nearly 10% reduction [4].
E-mail addresses: 18bcl008@nirmauni.ac.in (M. Bhatt), 18bcl056@nirmauni.ac.in Cement production was affected due to the pandemic as it was
(N. Patel), tejas.joshi@nirmauni.ac.in (T.M. Joshi), 17ptphde176@nirmauni.ac.in (H.
expected to be. However, the sudden decline in cement production
Kamplimath), darshan.shah@betolar.com (D. Shah)
https://doi.org/10.1016/j.matpr.2022.07.061
2214-7853/Copyright Ó 2022 Elsevier Ltd. All rights reserved.
Selection and peer-review under responsibility of the scientific committee of the 2022 International Conference on Materials and Sustainable Manufacturing Technology.
Please cite this article as: M. Bhatt, N. Patel, T.M. Joshi et al., Impact of COVID-19 on ready-mix concrete (RMC) industry in Ahmedabad – A case study,
Materials Today: Proceedings, https://doi.org/10.1016/j.matpr.2022.07.061
M. Bhatt, N. Patel, T.M. Joshi et al. Materials Today: Proceedings xxx (xxxx) xxx
varied with the country. India is the second-largest producer of lockdown was implemented and all the industrial, commercial,
cement with China being at the top of the list [4]. Fig. 3 portrays educational, and government organizations were shut down from
that India witnessed a dip in cement production during April 22 March 2020 up to 31 May 2020 as a response action to contain
2020 when the country was battling the first wave of coronavirus. the spread of the virus. During the period of complete lockdown,
Also, China witnessed a dip in cement production approximately the cement production in India declined drastically and the pro-
one month before India [5], this is because China had suffered duction reduced to nearly 4 million metric tons in April 2020 as
the effects of the COVID-19 outbreak well before India. compared to over 30 million tons in January 2020 as shown in
India witnessed its first coronavirus case on January 27, 2020, in Fig. 4 [6]. This is in line with the Office of Economic Adviser,
Kerala, India. This marked the entry of the coronavirus into the 2021 which indicates that the average cement production from
country and on 19 March 2020, two cases of covid-19 were 2020 to 2021 shrank by 10.8%. This decline in cement production
reported in the state of Gujarat for the first time. A nationwide has adversely affected the RMC industry.
2
M. Bhatt, N. Patel, T.M. Joshi et al. Materials Today: Proceedings xxx (xxxx) xxx
2. Methodology
2.1. General
Table 1
Site Visit Details.
Question-I.
Sr. No RMC Plants Date of visit The scenario of old stock of raw material available with the
1 RMC 1 25th August 2021 plant during the lockdown: (Choose one).
2 RMC 2 10th September 2021
3 RMC 3 1st October 2021
The old stock was NOT AVAILABLE at the Plant during lockdown
4 RMC 4 1st October 2021
5 RMC 5 15th October 2021 The old stock was AVAILABLE at the Plant but was NOT SUFFI-
6 RMC 6 26th October 2021 CIENT for the entire lockdown
7 RMC 7 26th October 2021 The old stock was AVAILABLE at the Plant and was SUFFICIENT
8 RMC 8 26th October 2021 for the entire lockdown
9 RMC 9 9th November 2021
Any other information regarding old stock of Raw Material.
10 RMC 10 9th November 2021
11 RMC 11 9th November 2021
Question-II.
The scenario of new stock of raw material availability with the
plant during the lockdown: (Choose one).
on that particular RMC plant. If yes, then the tenure for closure of
the RMC plant was noted. If no, then the strategies adopted by the New stock of Raw materials was NOT AVAILABLE during lock-
RMC plant to keep the plant operational were noted. If the plant down / unable to procure raw ingredients for concrete
had any impact on COVID-19, then that would have surely affected production.
the concrete production of the plant. New stock of Raw materials was PARTIALLY AVAILABLE during
Section-III: Concrete Production during the Pandemic. lockdown
To reach a firm conclusion for the information collected in Sec- New Raw Material was ALWAYS available during lockdown
tion II, Section-III questions were designed. In this section, the Any other information regarding the availability of raw
monthly concrete production of the RMC plant before & after the material.
lockdown was noted. The time taken by the plant to reach its nor-
mal concrete production capacity after re-opening the market was Question-III to V.
also obtained.
Section-IV: Raw Material Availability. If New Raw material was available even during the lockdown,
This section was designed to understand the raw material sce- then what were the sources by which the material was
nario during the pandemic. Information was obtained regarding available.
the old raw material stock such as Cement, Fly-Ash, Aggregates, How many months did it take for the raw material availability
Sand, Water, and Admixtures already present with the RMC plant. scenario to get back to normal?
Information regarding the availability of new raw material stock Was there any change in the price of raw materials after the re-
and the potential sources of these raw materials was noted as illus- opening of the market?
trated below.
4
M. Bhatt, N. Patel, T.M. Joshi et al. Materials Today: Proceedings xxx (xxxx) xxx
Fig. 7. (a) Photo of RMC 1; (b) Interaction with plant manager at RMC 1; (c) Interaction with plant manager at RMC 2; (d) Photo of RMC 2.
Section-V: Liabilities, Labor and Equipment Management. All the LABORS were IMMEDIATELY available as soon as the
The industry would have got affected due to labor unavailability lockdown was relaxed
and other liabilities that the RMC plants would have to bear. To get Labors were available AFTER SOME TIME soon after the lock-
a conclusion on this, the Section V of the google form was designed. down was relaxed
Information regarding labor scenarios before and after the relax- Any other information
ation of lockdown was noted along with different types of liabili-
ties that the plant had to meet as illustrated below: Question-IV.
Question-I.
Mention all the liabilities that were to be managed during the How many months did it take for the Labor availability scenario
lockdown. (Tick all applicable options). to get back to normal after re-opening the market?
5
M. Bhatt, N. Patel, T.M. Joshi et al. Materials Today: Proceedings xxx (xxxx) xxx
How long did it take to collect all the pending payments from all The concrete production was carried out by the ready-mix con-
the business parties? If any. (Ex:2 Months) crete plant before the coronavirus pandemic and lockdown.
How long did it take to give back the pending payments of all The concrete production was carried out by the ready-mix con-
the business parties? If any. (Ex: 2 Months) crete plant after the coronavirus pandemic and lockdown.
Table 2
Details of Statistics collected from RMC plant visits.
Categories RMC RMC RMC RMC RMC RMC RMC 7 RMC 8 RMC 9 RMC 10 RMC 11
1 2 3 4 5 6
Loss in income 40 % – 70 % 65 % 70 % 55 % 70 % 65 % 60 % 55 % 55 %
Loss in concrete production 20 % – 40 % 30 % 42 % 30 % 40 % 45 % 40 % 30 % 50 %
Tenure for plant closure in months 3 9 3 2 2 2 3 3 3 3 2
Change in raw material price 3% – 1% 0% 0% 0% 0% 2% 0% 1% 0%
Before covid concrete production (m3) 3000 2500 3000 4000 2500 3500 3200 3000 250 2500 3000
After covid concrete production (m3) 3500 – 1000 1250 1050 2500 2250 2000 1500 1700 1500
6
M. Bhatt, N. Patel, T.M. Joshi et al. Materials Today: Proceedings xxx (xxxx) xxx
Fig. 8. Period for Closure of RMC Plants. Fig. 11. % Loss in Income.
From the survey carried out, it was observed that some of the crippled due to which there was a huge disruption in the move-
very common liabilities that the ready-mix concrete industry had ment of materials. However, in a time span of 4–5 months, the
to face during the time of the pandemic were land rent, electricity industry recovered from all of its negative impacts and went
bills, water bills, staff salaries, machinery & equipment rent, trans- back to working in normal conditions just like before.
portation costs & medical liabilities of staff. However, out of all the
above-mentioned liabilities, the most general liabilities were land CRediT authorship contribution statement
rent, electricity bills, water bills & staff salaries. Moreover, section
5 of the information collection form indicated the labor availability Mauli Bhatt: Writing – original draft, Visualization. Nisarg
scenario during the time of lockdown and it was found that for the Patel: Writing – original draft, Visualization. Tejas M. Joshi: Con-
majority of the ready-mix concrete industry the laborers had ceptualization, Methodology, Data curation, Writing – review &
migrated to their hometowns during such times as it was difficult editing. Hemanth Kamplimath: Conceptualization, Methodology,
for them to survive when everything went on hold. In the same Data curation, Writing – review & editing. Darshan Shah: Data
section, survey data conveyed that after the re-opening of the curation, Conceptualization.
ready-mix concrete industry, the industry had to carry out mainte-
nance for their machinery which was completely shut down for Data availability
nearly two months, which caused a delay in re-starting the plant.
Moreover, due to sudden the lockdown, the cash inflow and No data was used for the research described in the article.
outflow between parties involved in the supply chain of the
ready-mix concrete industry became stagnant. As a result, short- Declaration of Competing Interest
term liquidity was not achieved and this gave rise to a short-
term financial crisis for all the involved parties. However, after The authors declare that they have no known competing finan-
the relaxation of the lockdown norms, the ready-mix concrete cial interests or personal relationships that could have appeared
industry started to run at its normal capacity within just a few to influence the work reported in this paper.
months and the financial issues were soon resolved. It was also
observed that during the time of lockdown, it was extremely diffi- Acknowledgments
cult to obtain new stock of raw materials like cement, sand, etc. It
was because intercity and interstate connectivity were prohibited. The authors would like to thank the Civil Engineering Depart-
As a result, transportation of raw materials from their source to the ment, Nirma University for the insights and support. The authors
ready-mix plants became a huge question. This hindrance gener- are grateful to the Head of - the Department of Civil Engineering,
ated due to the rules and guidelines of lockdown caused a break Institute of Technology, Nirma University for providing the contact
in the supply chain of the ready-mix concrete industry. details of the RMC industry and permitting and also facilitating
necessary site visits to the ready-mix concrete plants that proved
to be a vital element for the study.
4. Conclusion
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In nutshell, the industry faced many drawbacks due to the sud-
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