Economy & Market
Logistics: A cost-effective approach
Published
16 years agoon
By
admin
With the industry showing a downward trend in profit margins, better logistics management proves beneficial to many of the cement manufacturers. Nitin Madkaikar, Economist, FirstInfo Centre, explores the various modes of logistics that can provide a cost-effective means of cement transportation.
Cement, being a bulk commodity, transporting is a costly affair. The selling and distribution costs account for around 18 per cent of sales revenues. In 2009-10, top 30 cement companies spent more than Rs 10,000 crore to carry cement to the consumer. The domestic cement industry has been making continuous efforts to cut its logistic costs.
At the time when the industry was entering into the downside of the cycle, with profit margins coming down to 20-25 per cent from 35-40 per cent, better logistics management proved beneficial to many of the cement manufacturers. Using more railway routes than roads, shrinking lead distance (distance between the manufacturing facility and market) and opting for sea-routes wherever possible were some of the ways the industry explored. Currently, for every 50-kg bag of cement, the logistic cost comes to around Rs 18-25 by road and Rs 12-15 by the railway, depending on the distance. For example, the country’s third-largest cement maker, Ambuja Cements, opted for sea-routes to transport its cement from Gujarat to southern market.
Today, 70 per cent of the cement movement worldwide is by sea compared to just 1-2 per cent in India. However, the scenario is changing with most of the big players like L&T, ACC and Grasim having set up their bulk terminals.
About 3 per cent of the gross revenue is spent on inward logistics while outward logistics accounts for another bulk of 15 per cent. Inward logistics include, coal and limestone transportation, while outward logistics is mostly the final product cement. Some companies also incur outbound logistics cost on transporting clinker to their grinding plants. Plants that are closer to the collieries, the inbound transportation costs are less. For plants located far away from the collieries they have the option to import coal.
While the freight cost could be optimised on the imported coal through usage of company’s own ships for part of the quantity, the international prices of imported coal and its volatility together with the strengthening of the dollar against rupee could derail this. This could impact the delivery prices of imported coal and also the cost of production.
In case of final product, the costs of handling and secondary movement are very high. Although transportation by sea is the cheapest option, unless there is right connectivity from the port to the consuming centre the gains are minimum.
Companies, which have plants located closer to the markets as well as to the source of raw materials have an advantage over their peers, as this leads to lower freight costs. Also, plants located in coastal belts find it much cheaper to transport cement by the sea route in order to cater to the coastal markets such as Mumbai and the states of Gujarat and Tamil Nadu.
Checking logistics costs is an ongoing process for the cement companies. Many are trying to reduce the costs by around 5-7 per cent by optimising the distance of transport. Statistics suggest that about 45 per cent of the cement produced in the country is being transported by the railway. Cement makers prefer roads for shorter distances.
Looking ahead
With demand for cement expected to remain strong in 2011 with a growth of over 10 per cent, the logistic activities are in for a boom. In the 2011-12 fiscal, additional cement capacity of 27 million tonne is likely to go on stream. With the bulk of the capacities coming up in the South, the demand supply imbalance in 2011 would continue to be a cause of concern in the South, though it is expected to improve or remain in a status quo position in other regions.
The dwindling availability of coal linkage and the move to sell high grade indigenous coal at international prices are likely to impact power and fuel costs. The prices of other major inputs mainly slag, gypsum and fly ash are likely to further harden in 2011, whilst the increase in petroleum product prices would continue to impact freight costs. A shortage in railway wagon availability may adversely impact despatches in peak months.
The Indian cement industry is the second largest in the world after China, with a total capacity of close to 300 million tonne and plays a major role in the development of the Nation. Therefore, considering the role of Industry in the economy’s development, it is necessary to incentivise bulk transportation and thereby optimize cost, save fuel and reducing carbon emission while ensuring safe carriage.
Railways to levy surcharge
Indian Railways will levy a surcharge of up to 7 per cent from 1 April to earn a higher freight earning during busy season. The move is likely to add to the inflationary pressure on the economy even as finance ministry is expecting a lower inflation during 2011-12.
As per the railway decision, a surcharge of 5 per cent will be charged on coal and coke group, while all other commodities will attract a busy season charge of 7 per cent. Container traffic has been exempt from any such charge. Railway considers the entire year barring July-September of every year as busy period.
In 2010-11 also, railways had increased freight rates of iron ore, coal, sugar, cement, steel, potash, coke and some petroleum products.
Railways has also decided to levy a congestion charge of flat 20 per cent on traffic to neighbouring Bangladesh and Pakistan. The measure has been taken to encourage faster clearance of rakes at the borders.
Logistics cost reduction cannot be the sole objective and seen in isolation by the cement industry. The most important part is the service. At the end of the day, if one is unable to serve the customer he will never be in the industry. – Rajeev Mehta
How do you evaluate logistics in cement industry?
Logistics costs are going to come down provided one is on the right track. If he chases cost in isolation by just working in cost reduction, he cannot reduce cost in an inflationary world. The process of cost negotiations of olden days are over now. Under negotiation, one arrived only at the lowest quoted price and was content assumingly to have reduced the cost. Here, he only arrives at the best negotiated prices but not at a best cost. Today the concept of negotiation is no more prevalent. If one wants to work the truck freight to a particular destination, the right cost should take into account all the statutory duties, all the toll taxes, fuel cost, and all other allied cost, cost of vehicles, turnaround efficiency, everything. These known efficiency parameters should be arrived at the right price. Here the cost can be reduced only by increasing the efficiency.
The second most important factor is to use technology to the helm. The real time visibility is the key to success. Through technology one can find whether the truck is detained, which route is appropriate, entry restriction, etc. Technology plays a key role in aligning these activities.
What are functional bottlenecks?
In the old system, the key was to have a godown and the evacuation quantity used to be very small. Today one rack carry 3,800 metric tonne as against 1,700 to 1,800 metric tonne earlier. Now the size has almost doubled. Unfortunately in India, evacuation resources have not kept pace with the requirement. Most goods sheds are under control of the union, the fleet size has not expanded as per the growth of the cement business, labour is controlled by the union, labour availability has not increased as per the increment in volumes.
There is no mechanisation process in India, in spite of the wishes of the industry. Here the government has to play an active role. Industry on its own cannot make mechanisation happen. It should be a collaborative effort. Mechanisation, in the short run will create turbulence, but in the long run everybody will be benefitted. People need to be educated and prepared to face these short term turbulences.
What is your estimate of losses due to prevalent evacuation system
Mechanisation can alone reduce cost by a minimum of 10 per cent. The company could currently evacuate 3,000 tonne by manual route from goods shed, just because systems are not mechanised. Going ahead, labour in India will become a scare commodity, so one should be prepared for such eventuality in 2015-2020. The industry will have to join hands and take up a pilot project. It has to be a collaborative effort.
This has driven the logistics to almost 15 per cent of total cost which is very high by global standards given the volumes.
Logistics cost in India is going to come down a) efficiency b) technology is the key c) mechanisation is another area d) last but not the least, people should know the right cost. There has to be organised movement of transport. Every truck coming to Mumbai should log-in at the octroi point, when they are going back from Mumbai and in which destination they want to go. Those people who want to send material to that location can also log-in. So it can be marriage of both, need business and who are willing to give business. Today only brokers are there in this field. They are making money by non-visibility of information. That cost of brokers is unnecessarily borne by the company and the end-user. Make a transportation where every information is visible. Let people log-in and say we are interested in transporting our good.
Railways haul about 40 per cent of cement, what are the bottlenecks there?
Railways has very good system, which gives real time visibility. On technology front, the railways has done a great job. Per se, for any bottleneck railways cannot be blamed. It continues to be a socialistic set-up and at the pace at which the economy is growing the railways has limited resources. Railways have increased the number of trains but where are the tracks. This has to move parallel. Every year railways add 100 of passenger and goods trains, running on the same track. It is not railway that is slow it is a general problem in the country. The time taken to conceive a project and to execute that project is huge.
What are the inwards and outwards logistics, the cost proportion?
In cement industry, inward logistics costs are about three per cent of gross revenue and outbound close to 15 per cent. Clinker going to grinder it is outward.
What are preferred modes of transportation of cement?
Roads are cheaper up to a lead of 300 km, over which it is railways. Sea route is the most economical. But in India sea route is viable only on the west coast, where limestone and markets, both are available. On the east cost the problem is that the regions does not have limestone. In Gujarat limestone is available bang on the coast. Sea route is economical but not available across.
What are the new challenges in road transport?
The toll taxes are a concern now on roads. There has been a progressive increase in the toll rates and the number of points. On a stretch on 200 km there a 5-6 toll points, which hinders speed. This has resulted in increased cost and time. There is an urgent need for high tech toll booths.
What is the focus on logistics going ahead?
Every industry has its own efficiency levels and are trying to address them in different ways. In cement, per se, volumes have gone up and in spite of all these limitations the thrust is to move towards better services.
Economy & Market
Fornnax Names Lukas Baur as Authorised Service Partner to Bolster EU Operations
Published
2 days agoon
July 23, 2026By
admin
Strapline: Fornnax Technology has appointed NOBA Maschinenservice’s Lukas Baur as its authorised service partner for the European Union, strengthening its commitment to delivering fast, reliable, and localised after-sales support across the region.
Fornnax Technology, a leading manufacturer of industrial shredding solutions, has announced the appointment of Mr. Lukas Baur of NOBA Maschinenservice as its authorised service partner for the European Union. The partnership, formalised under the authorisation of Fornnax CEO Mr. Jignesh Kundaria, reinforces the company’s commitment to providing dependable, localised service support to its expanding customer base across Europe.
Strengthening Service Through Proven Expertise
With over two decades of experience in servicing, maintaining, and overhauling industrial shredders, Mr. Baur brings extensive technical expertise to the partnership. His capabilities span welding, hardfacing, shaft and knife rebuilding, complex assembly, hydraulics, and complete electrical engineering services, delivered in collaboration with a trusted partner company based in Halle/Saale.
Operating from Worbis, Germany, Mr. Baur is strategically positioned to provide emergency support across the European Union within 24 hours, covering an operational radius of approximately 1,000 kilometres.
Supporting this capability is a well-equipped service infrastructure comprising 12 Mercedes Sprinter service vans, a team of 24 skilled technicians, specialised bearing-change tools, a fully equipped hydraulic workshop, and a 1,000-square-metre facility with a five-ton crane track. Together, these resources position his team to manage the complete spectrum of Fornnax’s European service requirements efficiently and reliably.
Partnership Driven by Industry Insight
Having spent years servicing Eldan, Lindner, and Vecoplan shredders across the European recycling industry, Mr. Baur’s decision to collaborate with Fornnax is rooted in his understanding of market needs and customer expectations. His experience has provided valuable insight into what recycling plant operators require—not only from their machinery but also from the service teams supporting them.
According to Mr. Baur, Fornnax’s reputation for robust machine construction, superior wear protection, and maintenance-friendly design made the partnership a natural fit.
The collaboration comes at a time when Europe’s tyre recycling industry is facing mounting challenges, including rising cost pressures, shrinking margins, delayed investments, and a shortage of skilled labour. Mr. Baur believes these conditions reinforce the need for technically strong service partners capable of delivering rapid, dependable support.
Commenting on the partnership, he said, “Fornnax, with its exceptional price-performance ratio and superior quality, has the potential to become a market leader in Europe. We would like to be their service partner in this journey.”
Comprehensive Support Across the Equipment Lifecycle
As Fornnax’s authorised service partner, Mr. Baur will oversee the complete lifecycle support of the company’s equipment throughout the European Union. His responsibilities will include installation, commissioning, preventive maintenance, emergency repairs, and spare parts support across mechanical, hydraulic, and electrical systems.
Looking ahead, he also plans to develop a centralised spare parts distribution hub for European customers, particularly if Fornnax establishes a warehouse facility in Worbis to facilitate faster deliveries. To further strengthen service coverage, Mr. Baur intends to expand operations by adding two to three additional service teams and vehicles each year, progressively increasing capacity across the continent.
A Shared Commitment to Customer Excellence
Highlighting the strategic importance of the partnership, Mr. Jignesh Kundaria, Director and CEO of Fornnax, said:
“We strongly believe that by continuously improving our service quality and customer satisfaction index, we can build long-term relationships with our customers. Higher customer satisfaction leads to greater trust, which significantly increases repeat orders and ultimately drives sustained growth in our sales revenue.”
This customer-first philosophy underpins Fornnax’s strategy of building a dedicated European service partner network instead of relying solely on remote support. With Mr. Baur joining this network, customers across the European Union will benefit from faster response times, expert technical assistance, and dedicated on-ground support from a partner with extensive experience in high-throughput shredding operations.
Mr. Baur’s appointment also reflects Fornnax’s broader ambition to establish itself as the preferred shredding solutions provider for the European recycling industry, marking another important milestone in the company’s international growth strategy.
Concrete
Nuvoco Vistas launches Limla cement plant, expands Gujarat footprint
Published
2 weeks agoon
July 13, 2026By
admin
Nuvoco Vistas opens a 2 MMTPA grinding unit at Limla, entering Gujarat and advancing its target of 35 MMTPA capacity by FY 2028.
Surat (Gujarat)
Nuvoco Vistas Corporation Ltd, a part of Nirma Group and one of India’s leading building materials company, has inaugurated the Limla Cement Plant in Surat (Gujarat), one of Vadraj Cement Limited’s (VCL) principal manufacturing facilities. The commissioning represents a key milestone in Nuvoco’s acquisition and restoration of VCL, while supporting the company’s expansion across the Western Indian cement market.
Vadraj Cement Limited is a subsidiary of Nuvoco Vistas Corporation Limited and has installed cement capacity of 6 MMTPA across its assets. The Limla inauguration therefore represents the first operational step in the acquired platform’s wider revival, while the Kutch facilities provide clinker supply, mineral security and coastal logistics support for the western business.
Nuvoco completed its acquisition of Vadraj Cement Limited, then under the Corporate Insolvency Resolution Process, after paying a consideration of Rs 1,800 crore in June 2025. VCL’s asset portfolio comprises a clinker unit at Kutch and a grinding unit at Limla in Surat. It also includes high-quality captive limestone reserves and a captive jetty at Kutch, supporting more efficient logistics. Following the takeover, Nuvoco began an extensive programme of restoration, refurbishment and expansion at both locations, leading to the commissioning of the Limla plant.
The Limla Cement Plant is expected to support a phased increase in sales volumes across Gujarat. It will also help Nuvoco supply neighbouring markets in Western Maharashtra and release cement capacity from its northern plants, which can consequently be redirected towards markets in North India. The plant will manufacture a full portfolio comprising Ordinary Portland Cement, Portland Slag Cement, Portland Pozzolana Cement and Portland Composite Cement. It will additionally produce the complete Nuvoco Duraguard range, including the premium Nuvoco Duraguard Microfibre product. The acquisition is also expected to generate operational synergies with Nuvoco’s existing plants at Nimbol and Chittorgarh in Rajasthan, improving logistics optimisation and market reach across important regional markets.
The grinding unit at the Limla Cement Plant was completed ahead of schedule, with 2 MMTPA of capacity now inaugurated to expand Nuvoco’s operating scale and customer reach. After Vadraj Cement’s assets become fully operational, plants in North and West India are expected to account for nearly 40 per cent of Nuvoco’s total cement capacity. This will broaden the company’s manufacturing network, strengthen access to high-growth markets and support its plan to increase consolidated cement capacity to 35 MMTPA by FY 2028, reinforcing its longer-term growth strategy.
Commenting on the development, Jayakumar Krishnaswamy, Managing Director, Nuvoco Vistas Corp Ltd, said: “The inauguration of the Limla Grinding Unit in Surat is an important milestone in Nuvoco’s growth journey and demonstrates our commitment to disciplined, value-accretive expansion. Gujarat is strategically significant for Nuvoco, with substantial opportunities arising from infrastructure investment, industrial growth, rapid urbanisation and continuing demand from the housing and construction sectors. The facility strengthens our regional footprint, improves operational flexibility and increases our ability to serve customers across northern and western markets with greater reliability and efficiency.”
He added: “Through the Vadraj acquisition, we have refurbished and restarted a strategically important asset, returning it to operations in record time through strong execution and collaboration between teams. The achievement demonstrates our ability to create value from acquired assets, fulfil our commitments and retain the confidence of stakeholders. It also highlights the strength of our project delivery capabilities and our continued focus on building sustainable, profitable growth over the long term.”
Nuvoco Vistas Corporation Limited is a building materials company whose vision is to build a safer, smarter and more sustainable world. It is among the leading players in East India and has a significant presence across North and West India. Nuvoco began operations in 2014 with a greenfield cement plant at Nimbol, Rajasthan. It later acquired Lafarge India Limited, which had entered India in 1999, followed by Emami Cement Limited in 2020 and Vadraj Cement Limited in April 2025. The company has also announced an expansion in eastern India through a new grinding mill at the Arasmeta Cement Plant, supported by several debottlenecking programmes involving equipment upgrades, process improvements and internal capacity initiatives. These developments place Nuvoco on track to achieve total cement capacity of approximately 35 MMTPA. The company reported total income of Rs 11,362 crore in FY 2025-26, reflecting its continuing growth trajectory.
Nuvoco operates a diversified portfolio across three segments: Cement, Ready-Mix Concrete and Modern Building Materials. Its cement portfolio includes Concreto, Duraguard, Double Bull, PSC, Nirmax and Infracem, covering Ordinary Portland Cement, Portland Slag Cement, Portland Pozzolana Cement and Portland Composite Cement. Its pan-India RMX business provides value-added products under Concreto for performance concrete, Artiste for decorative concrete, InstaMix for ready-to-use bagged concrete, X-Con covering M20 to M60 grades, and Ecodure for specialised green concrete. Nuvoco has supplied materials to projects including the Mumbai-Ahmedabad Bullet Train, Birsa Munda Hockey Stadium in Rourkela, Aquatic Gallery at Science City in Ahmedabad, and metro railway projects in Delhi, Jaipur, Noida and Mumbai.
Concrete
Green Construction Through Cement Innovation
Published
3 weeks agoon
July 2, 2026By
admin
Indian Cement Review (ICR) and Fuller Technologies brought industry, policy and technology leaders together to discuss how cement innovation can drive green construction at scale, writes Rakesh Rao.
India is building at a pace few countries can match. Highways, airports, housing, logistics parks, industrial corridors and urban infrastructure are reshaping the country’s economic geography. But beneath this growth story lies a difficult question: can India continue to build at scale without locking itself into a high-carbon future?
That question formed the core of an online panel discussion titled “Driving Green Construction Through Cement Innovation”, organised by Indian Cement Review (ICR) in association with Fuller Technologies as the Presenting Partner on June 25, 2026. The webinar brought together experts from cement technology, R&D, global industry platforms, building performance policy and international development cooperation to examine how low-carbon cement and material innovation can accelerate India’s green construction transition.
The discussion came at a crucial time. India has committed to achieving net-zero emissions by 2070 and reducing the carbon intensity of its economy by 45 per cent by 2030. At the same time, the country’s construction sector is expanding rapidly, driven by urbanisation, infrastructure development, housing demand and industrial growth. Cement, as one of the most widely used construction materials, sits at the heart of this transition. It is indispensable to development, but also central to the challenge of reducing embodied carbon in buildings and infrastructure.
Moderated by Nitika Krishan, Senior Urban Infrastructure and Sustainable Policy Consultant, the panel featured:
- Kiranmai Sanagavarapu, Director, Low Carbon Solutions, Fuller Technologies;
- Dr Hemantkumar Aiyer, VP and Head R&D, Nuvoco Vistas Corp Ltd;
- Devika Wattal, Innovation Lead, Global Cement and Concrete Association (GCCA);
- Dr Sunita Purushottam, MD, GBPN India (Global Buildings Performance Network); and
- Vaibhav Rathi, Senior Technical Advisor, GIZ (the German Agency for International Cooperation)
Setting the tone for the discussion, Nitika Krishan underlined the scale of the challenge before the sector. “The question before us is no longer whether we build, but how we build sustainably,” she said. She pointed out that construction accounts for nearly 40 per cent of global energy-related carbon emissions when both operational and embodied carbon are considered. Cement production, she added, remains one of the hardest industrial processes to decarbonise.
For India, this is not merely an environmental issue. It is a development issue, a competitiveness issue and increasingly, a market issue. As one of the world’s largest cement producers and among the fastest-growing construction markets, India’s material choices will influence the carbon trajectory of its built environment for decades. As Krishan observed, sustainability solutions in economies such as India must not remain limited to laboratory success. They must be scalable, commercially viable and practical at national level.
The innovation gap: From technology to market
Experts believe that there is a need to bridge the innovation gaps for making decarbonisation in cement and concrete scalable. Devika Wattal of GCCA, explained, “The starting point must be the core cement manufacturing process itself. The first and foremost is the heart of our process, the heart of cement manufacturing. How do we reduce clinker? That is always a topic where industry is working very intrinsically.”
Clinker reduction remains one of the most important pathways for lowering emissions in cement. Since clinker production is energy-intensive and chemically emits carbon dioxide, reducing the clinker factor through supplementary cementitious materials (SCMs), blended cements and new chemistries can have a significant impact. Wattal also noted that carbon capture, utilisation and storage (CCUS) will have a role, though it may not be the first lever for all markets.
However, she stressed that innovation cannot stop at technology development. A solution that works in the lab must also be adaptable to industry, scalable in production and acceptable in construction practice. “It is important for that innovation to be adaptable, to be scalable, and so that it can be executed in real time,” she said.
Wattal also called for stronger enabling systems around innovation. These include performance-based standards, product-level embodied carbon databases and clearer frameworks for evaluating green materials. Without these, low-carbon cement products may struggle to compete with conventional materials in procurement and design.
R&D must balance carbon, cost and performance
Bringing in the R&D perspective into the discussion, Dr Hemantkumar Aiyer of Nuvoco Vistas emphasised that low-carbon cement development cannot be treated as a single-variable exercise. Cement must perform in real construction conditions. It must deliver strength, durability, consistency and cost competitiveness, while also reducing carbon.
“The root of understanding and balancing all these aspects lies in materials, and knowing the materials,” he said.
According to Dr Aiyer, R&D teams must understand the variability of raw materials such as fly ash, slag and clinker. Different sources produce different material behaviours. This makes mix optimisation, material characterisation and processing-property relationships critical. When performance is affected, cement manufacturers must understand how strength enhancers, admixtures and other performance chemicals interact with the material system.
He also linked material science with process efficiency. Clinkerisation takes place at extremely high temperatures, around 1,400 to 1,450 degrees Celsius. Any improvement in raw mix design, process control or energy optimisation can, therefore, help reduce emissions and cost. Dr Aiyer pointed to artificial intelligence-based optimisation, Cement 4.0 tools and advanced software as important enablers for real-time process and material control.
“The more you understand the materials, the more you can control it,” he said.
LC3: The promise is proven, the sequencing is not
Limestone calcined clay cement, commonly referred to as LC3, has attracted global attention because it can reduce clinker content significantly by using calcined clay and limestone while maintaining performance in many applications. Kiranmai Sanagavarapu of Fuller Technologies said the technology itself has already moved beyond proof of concept. Fuller Technologies has worked with calcined clay technology for nearly two decades and has seen plants running in France and Ghana. These plants, she said, are meeting local and national specifications, while the economics are beginning to make sense.
“The calciner is performing, the economics is stacking up, it is making business sense to produce,” she said.
But if the technology is viable, why has adoption not scaled faster? For Sanagavarapu, the answer lies in project sequencing. Too often, clay characterisation happens after equipment is specified. This, she warned, is a backward approach because calciner design depends on clay mineralogy, kaolinite content, iron levels, reactivity, moisture and other variables.
“If you don’t know what your deposit looks like before you commit for the equipment, you are, in a way, going blind into designing,” she said.
She also identified permitting and plant integration as major bottlenecks. Environmental clearances, mining permissions and local regulatory approvals must begin early. Similarly, calcined clay must be integrated into existing grinding, blending and logistics systems from the design stage, not treated as an afterthought during commissioning.
India already has IS 18189:2023 standard for LC3, but Sanagavarapu pointed out that the standard is not yet visible enough in procurement documents. “The gap between what is technically being permitted and what the procurement is asking is the single biggest bottleneck,” she said.
In her view, successful scale-up depends on getting the sequence right: clay characterisation first, permitting in parallel, standards aligned with construction, and integration built into plant design.
India’s LC3 journey: Progress, but demand remains thin
Providing details of India’s LC3 commercialisation experience, Vaibhav Rathi of GIZ noted that JK Cement carried out the first commercial production of LC3 at its Rajasthan plant, followed by JK Lakshmi Cement three months later. These initiatives were supported by the International Climate Initiative of the Government of Germany, with IIT Delhi contributing deep institutional knowledge on LC3 research and BIS certification.
Rathi said India’s early experience has produced clear lessons. One of the biggest was the need to build capacity among regulators. While BIS certification existed, State Pollution Control Boards were unfamiliar with the technology and unsure about the approval pathway.
“The capacity building is not just needed amongst the producer and the users of the cement, but also the regulators who are working with this technology for the first time,” he said.
He also highlighted the need for better information on China clay deposits. Since China clay is currently classified as a minor mineral, centralised data on availability, quality and location is limited. If cement manufacturers are to adopt LC3 at scale, stronger mineral intelligence will be important.
The third issue is demand. LC3 has already been used in projects such as Palava City in Mumbai and Noida International Airport, but these remain limited examples. “It is in a chicken and egg situation,” Rathi said. “Cement companies are saying we need more demand, and users are saying there is not enough cement available.”
Public procurement, he suggested, could help break this cycle. If agencies such as CPWD and other public bodies begin testing, accepting and specifying LC3, it could create the market confidence needed for cement companies to invest in production and storage.
Building codes must catch up with innovation
Dr Sunita Purushottam of GBPN India argued that material choices will determine built environment emissions over the long term, but India’s current policy signals remain fragmented. Although LC3 has received BIS recognition, she pointed out that building codes, municipal bylaws, schedules of rates and sustainability codes do not yet provide uniform guidance on low-carbon cement.
“The current cement regulations are largely prescriptive and favouring traditional materials,” she said. This limits the ability of alternative materials to compete on performance, durability and emissions.
Dr Purushottam also raised the issue of taxation. Cement, including LC3, currently falls under the same GST bracket as conventional cement. A differentiated tax structure, she argued, could help accelerate market adoption. “In order for the market to demand LC3, that differentiation in the GST could go a long way,” she said.
She noted that green building certifications such as IGBC and GRIHA are already creating demand for low-carbon materials by assigning points for embodied carbon and sustainable material use. However, she said large-scale adoption will require regulatory mandates, particularly through building codes and state-level notifications.
She also cautioned that low-carbon cement alone does not solve the entire building performance problem. A material may reduce embodied carbon, but the operational carbon of a building depends on thermal performance, design, insulation and energy use. “The energy part has two elements,” she said. “One is the embodied carbon of the material itself, and the other is the operational carbon.”
Collaboration is the bridge between invention and impact
Wattal said GCCA sees innovation as a strategic priority and works through platforms that connect industry with academia and start-ups. “There is no way we will decarbonise our sector without innovation,” she said.
However, she stressed that research must be connected to actual industry challenges. Innovations developed in isolation may fail when they encounter real-world barriers such as raw material variability, plant integration, cost, standards and finance. Start-ups, too, need industry mentorship and scale-up pathways.
Wattal also flagged the importance of finance. Even strong technologies may struggle to attract investment if there is no common understanding of bankability. “We have always put projects into, is this a bankable project? But the definition of a bankable project has never been defined,” she said.
For India, she saw strong potential in its academic and start-up ecosystem, but said the challenge lies in alignment and prioritisation. The country has the research base, industrial capacity and market size. What it now needs is a coordinated route from innovation to deployment.
There is a practical concern for cement manufacturers: how can existing plants be adapted for lower emissions without compromising reliability or commercial viability?
Kiranmai Sanagavarapu addressed, “The reliability risk in calcined clay retrofit is definitely real, but it is almost always self-inflicted. The risk arises when a new process is added to an existing circuit without properly redesigning grinding and blending configurations.”
Existing cement plants, she explained, can take two broad routes. The first is external sourcing of calcined clay combined with mill optimisation. This requires lower capital investment and can potentially move in 12 to 18 months if other conditions are in place. It may reduce emissions by around 20 to 30 per cent. The second route is integrated calcination on site, which requires higher capital expenditure and longer lead times, but provides greater control over quality, supply and emissions reduction potential.
For Sanagavarapu, the principle is simple: low-carbon retrofits must be designed with intent. “Design it with an intent properly from the start. Start in the market conditions where the economics are already working,” she said.
Circularity: The overlooked advantage
According to Vaibhav Rathi, fly ash and slag are already well established in cement and construction (C&D), but construction and demolition waste remains underutilised. “C&D waste is a growing business opportunity which not many have taken up,” he said. India’s continuous construction and demolition activity creates huge volumes of waste, much of which contributes to air pollution, land degradation and material inefficiency. With the right processing and standards, this waste can be converted into useful construction products.
Rathi also pointed out that LC3 has a circular economy dimension that is often overlooked. It can use low-grade kaolin-rich clay left behind after high-grade clay is extracted for other applications. “LC3 is not only a low-carbon solution, but also a circular economy solution,” he said.
At the same time, he cautioned that LC3 in India is not yet cheap because it has not reached scale. Site-specific techno-commercial feasibility studies, supported jointly by development agencies and industry, could help companies assess whether LC3 production makes technical and financial sense at a given location.
Dr Purushottam added that India must address both low-carbon cement and construction waste together. “Both low-carbon cement and C&D waste go hand in hand. India does not have an option but to work on both,” she said.
Dr Aiyer called for policy shifts from both government and industry, including preferential purchasing of sustainable materials, minimum supplementary cementitious material requirements in public and public-private projects, and faster regulatory implementation. “If we can fast-track the regulatory standards and their implementation on the ground, that is the way to go,” he said.
From green ambition to green construction
Cement innovation is no longer only about chemistry. It is about systems. Low-carbon cement will scale only when technology, standards, procurement, finance, regulation, education and construction practice move together.
LC3 and other low-carbon technologies have shown promise. India has early commercial examples, strong research capability and growing market interest. But mainstream adoption will depend on whether demand can be created, regulators can be capacitated, standards can be embedded in procurement, and manufacturers can see a clear business case.
For a country building at India’s scale, the opportunity is enormous. Cement will continue to be central to infrastructure and urban development. The challenge now is to ensure that the cement used in India’s growth story carries a lower carbon burden.
- Rakesh Rao
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