Economy & Market
Challenging Days Ahead
Published
13 years agoon
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Bad news never comes singly. India’s economic growth has slumped to its lowest in more than two years while output expansion at key industries tumbled to a six-year low and even the finance minister, Pranab Mukherjee, has warned that there are tough times ahead. There has been a sharp deceleration in industrial growth with output growth in eight core industries, including steel, cement and coal, dropping to near-zero in October, a sharp decline from 7.2 per cent one year back. Under the circumstances, the cement sector needs to remain vigilant and while bracing itself for weaker growth, seek out newer strategies to ensure that targeted capacity and production stays on line while staying in line with environmental demands and limitations in raw material availability.It is worrying indeed that fiscal deficit for the first seven months of the year has already reached 75 per cent of the year’s estimate. Experts concur with the finance minister that a combination of domestic and international issues are going to impact the country’s growth. GDP data released by the government on in the last week of November 2011 has revealed broad-based weakness in the economy, with mining contracting 2.9 per cent and manufacturing rising by 2.7 per cent in the last quarter. Despite the gloomy outlook, the finance ministry is hopeful that the economy will recover some of its lost momentum and is expecting 7.3 per cent GDP as against last year’s 8.5 per cent.According to Research & Markets report on the Indian cement sector, economic recovery, which had gained momentum in the first half of FY11, started showing signs of moderation in the second half. The biggest hindrance to growth momentum, however, has been high inflation. Inflation refuses to abate and has forced RBI to pursue monetary tightening measures even at the cost of growth. Rising energy prices and interest rates will continue to pose a challenge for businesses in the near future. Despite these short term challenges, the overall economic sentiment remains healthy and a good growth rate for the next year is expected.FY11 was quite challenging for the cement industry. On the one hand, demand growth weakened due to lower realty and infrastructure spending, while on the other, extended monsoons and logistical constraints dampened construction activity.On the supply front, overcapacity continued to plague the industry. During the year, the industry witnessed capacity addition of around 28 million TPA in addition to the 60 million TPA added in the previous year. Industry capacity utilization was at 75 per cent against 84 per cent recorded in the previous year. Surplus cement scenario together with sluggish demand and volatile prices adversely impacted domestic realizations which were lower by 4 per cent as compared to the previous year. On the cost front, the higher price of both domestic and imported coal resulted in a 25 per cent increase in energy costs, which rose substantially from 671 per ton to 838 per ton. During the year, imported coal prices rose by 36 per cent from CIF $ 89 per ton to $ 121 per ton. In addition to the normal price hike in domestic coal, there was a further increase in domestic coal prices in the range of 30 per cent -150 per cent from 1st March, 2011, according to the report.While the larger economic issues play out a crucial role on the industry’s performance, it is left to the sector to analyse the various other shortcomings it faces and seek remedies for the same.PRESENT STATUS
- Capacity and Production:
The installed capacity of cement in the country has grown during the period 1991 to 2011 at an average rate of 8.3 per cent CAGR while the production has grown at the rate of 8 per cent during the same period. The table -1 gives the installed capacity and production of cement between 1991-2011.
- Thermal Energy:
The weighted average of thermal energy consumption of major 26 plants is shown in figure – 1. It would be seen that very little improvement is made over the years between 2005-2006 to 2007-2008. The world’s best ranges between 680-690 Kcal/kg clinker. Though there are some cement plants in India which are able to fall in this category but industry as a whole has challenge before it to further improve on this account.
- Electric Energy Efficiency:
The weighted average of consumption of electric energy of 26 plants is given in figure – 2. The electric consumption has virtually reached at plateau and showing very little further improvement. The best operated plants have brought down the consumption in the range of 65-68 kwh/t cement, however, industry as a whole has scope for further improvement. Environmental Performance of Cement Plants:The National Ambient Air Quality Requirement as per CPCB is given in table – 2.The modern cement plants are able to adhere to these norms. The new generation plants with capacity 8000TPD and above are even excelling the norms.
- Product Mix:
The Indian cement industry has undergone major shift in product mix especially during the last decade. The environmental and sustainability issues may demand same trend to continue in the future. The table -3 gives product mix during the different periods;CHALLENGES AHEAD
- Lime Stone:
Lime stone will continue to be the life line of cement manufacture. As per thumb rule, for every ton of clinker produced, 1.75 tonnes mineable line stone deposits of proven variety should be available. For 350 million tons installed targeted capacity by the end of XI plan (2012), nearly 600 mn.t of cement grade lime stone have to be made available annually. Keeping in view the rapid expansion of Indian Cement Industry, NCB initiated the task of preparation of national inventory of cement grade lime stone. As on 31st March, 2002, India’s total reserves have been estimated as given in table – 4.Table – 4 Lime Stone ReservesSizable reserves are located in inaccessible areas, difficult terrains reserved forests, bio-zones and coastal regulatory Zones, etc. The proven category reserves are only 22,476mn.t which are likely to last for next 35 to 40 years at the present rate of production.Apart from limited availability of measured reserve for green field projects, about 27 per cent of total reserves are of marginal grade which can only be utilized with sweetener or after up-gradation through beneficiation. Availability of cement grade limestone will be becoming a major challenge for the cement industry in the future.
- Coal :
Availability of coal is proving another bottleneck in the growth of cement industry. The coal demand of cement industry is given in table -5.During the last decade the coal demand has gone almost four times. The infrastructure deficiencies at ports are causing problems in importing coal and availability of indigenous coal to cement industry is not assured. The first preference is being given to Thermal Power Plants and then to steel industry in allocation of coal by the Govt. The cost of coal is escalating every year and posing challenge before the cement industry. The situation is likely to aggravate in future.BLENDING MATERIALS
- Fly Ash:
Large quality of fly ash is generated in India but in many cases, the location of major Thermal Power Plants is far away from cement plants and in absence of proper infrastructure for transportation and handing of fly ash, most of it cannot be utilized. The availability of fly ash is given in table – 6The cost of fly ash is continuously increasing due to transportation and permission given to thermal power plants to charge for it instead of giving free. The mega thermal plants located in East UP, West Bengal, North Bihar and generally in Eastern part of India have very few cement plants in close vicinity. The mismatch in location of Thermal Power Plants and cement plants is shown in Figure – 3The availability of good quality fly ash at reasonable cost is also going to be major factor before the cement industry in coming years.
- GGBS
Ground Granulated Blastfurnace Slag (GGBS) cement is a by-product of the steel industry. Molten slag lying on top of the molten iron in the blastfurnace comprises silicates (glass), and is the raw material for GGBS cement. The molten slag – of no use to the steel making process – is cooled and then finely ground to form GGBS cement. Currently around 200 kg of slag is generated for each ton of steel produced in India making it 11 to 12 mt slag annually. Most of the slag is produced in the eastern part of the country where it is used in production of slag cement. The availability of blast furnace slag will continue to remain limited and possibilities need to be explored to use slags other than blast furnace like zinc slag, copper slag, steel slag for manufacture of slag cement. At present these slags are not permitted by BIS for production of slag cement.HIGH INPUT COSTS AND INFRASTRUCTURAL WEAKNESS
At present, the cement industry is facing two fold problems of high input costs and infrastructural weakness. The inputs with spiraling cost increase are coal, power and transport by rail or road. The coal from public sector is of poor quality, high ash and low calorific value content and at times costlier than imported coal. There is need to introduce competition for improving quality, regularity in supply and reduced prices. The power from public utilities is of poor quality due to frequent power cuts and fluctuating voltage. Power sector reforms if taken up seriously will enable quality power to cement plants at reasonable cost.Transport by rail or road is a cost-intensive component and amounts to almost 15 per cent to 20 per cent of the delivered cost to the consumers. The railway tariff is high and need to be rationalized for an essential product like cement. Road transport on the other hand, provides limited alternative because of inadequacy of road network and rising cost of road transport due to continuously rising fuel cost. Inland water transport is a low investment, eco-friendly and cheap mode especially for bulk commodities like cement. Coastal shipping and inland waterways will help in bringing down the transportation cost. Due to increasing use of cement in bilk, more and more bulk terminals will be needed in the years to come and inland water transport and coastal shipping can be of great help in this regard.TO INCREASE USE OF CEMENTCement is not the end-use product for the consumer. Concrete and mortar are the real end-products. Use of concrete at present is very low, about 0.5t per head annually against World’s average of 1.0t. Use of concrete and cement based products need to be promoted especially in the following sectors to increase the demand of cement.
- Concrete roads
- White topping over existing bitumen roads
- Cement based bricks/blocks for walling in lieu of clay bricks
- Pre-fab components for mass housing in lieu of conventional systems for roofing, flooring, walling etc.
- Cement concrete lining to canals to reduce seepage losses.
- Development of inland water ways and linking of rivers.
The average consumption of cement per head is very low in India, in the range of 180-190 kg while world average is about 400kg and in developed countries it is 600-800kg. Cement-concrete is more durable than other conventional materials and the use of concrete in construction will bring down the life cycle of civil works and will be more eco-friendly and sustainable.ENVIRONMENTAL CONSCIOUSNESS AND CUSTOMER ORIENTATION
The main global concerns at present are conservation of energy and pollution control. In future pressure will mount on the industry to reduce energy and GHG emissions. The energy consumption of many of the cement plants in India is comparable with the "best practices". However, there is still a scope to bring down the energy consumption by improving operational efficiency and plant technology. Though many plants have won environmental excellence awards but industry as a whole can still achieve better results on this front.The future initiatives have to be directed for using hazardous or waste materials (pet coke, used tyres, municipal and agricultural waste etc.) as fuel and larger use of fly ash, ggbs and other industrial waster like Zinc-lead slag, copper slag, steel slag etc. Both these ventures would contribute to environmental improvement and legislative and statutory authorities should support these initiatives.The customers have to be educated in proper use of cement and to avoid wastages at site. The inhibition to use mineral admixtures like fly ash, ggbs and blended cements should be removed through proper training and demonstrations at construction sites. The new code on concrete mix proportioning IS 10262 has been issued by BIS in 2009, rationalizing the use of binding materials and to avoid excessive use of cementing materials in concrete. The good construction practices should be encouraged by upgrading the skills of construction professionals for increasing the life of construction and to avoid the wasteful consumption of materials in repairs and rehabilitation. The mechanization in construction is another area which would need focus in future. The promotion of RMC during the last decade has brought numerous benefits in making concrete more reliable, durable and cost effective material. Similarly the pre-cast industry, which is in very nascent stage has potential to provide speed, quality and sustainability to construction projects. Promotion of these technologies and practices would provide additional impetus to the growth of cement industry in the coming decade.TOUGH TIMES CALL FOR TOUGH MEASURESThe industry has to overcome new challenges to be vibrant and healthy in future. The major hurdles are likely to be availability of quality raw materials at reasonable cost, energy sources, compatible infrastructure for movement of raw materials and finished goods, skilled man power and commensurate financial resources for continued technological up-gradations and innovations to meet the future aspirations of the construction industry and the society at large. These challenges can be met by combined efforts of industry friendly legislative frame work, boost of infrastructure by government, adoption of technologies to increase demand for cement and the cement industry by continuously striving for technological excellence and innovations in all fields of its operation. The Indian cement industry will emerge stronger, more efficient, sustainable and vibrant in future by virtue of its dedication and an intense urge to serve the construction industry in best possible manner.A.K. Jain is Technical Advisor, Ultratech Cement Ltd
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Economy & Market
Walplast Expands HomeSure MasterTouch Line
It is a high-quality yet affordable wall paint
Published
2 weeks agoon
February 13, 2025By
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Walplast Products, a leading manufacturer of building and construction materials, has unveiled the expansion of its esteemed HomeSure MasterTouch portfolio with the launch of the new HomeSure MasterTouch Lush (Interior & Exterior Emulsion) and HomeSure MasterTouch Prime (Interior & Exterior Primer). These new offerings are strategically positioned as high-quality, yet affordable, high-performance solutions designed to enable individuals to achieve their dream of beautiful homes and “Elevating Lifestyles” (Raho Shaan Se).
The HomeSure MasterTouch Lush Interior Emulsion is a high-quality yet affordable wall paint that delivers best-in-class coverage and an aesthetically appealing, durable finish. Formulated with premium pigments and acrylic binders, it ensures excellent coverage, colour retention, and resistance to fungus, making it an ideal choice for homeowners seeking durability and value. Meanwhile, the HomeSure MasterTouch Lush Exterior Emulsion is specifically engineered to withstand varying weather conditions, particularly in regions with frequent rain and moderate humidity. With strong adhesion and UV-resistant properties, it protects exterior walls against algae growth and black spots while maintaining an elegant matte appearance.
Adding to its comprehensive range, Walplast introduces the HomeSure MasterTouch Prime Interior and Exterior Primers, offering superior adhesion, excellent whiteness, and long-lasting durability. These primers enhance the topcoat application, ensuring a flawless, smooth finish for both interior and exterior surfaces. Engineered with excellent workability and eco-friendly attributes, the primers are free from heavy metals, low VOC (Volatile Organic Compounds), and protect against algae and fungus, making them a reliable base for any painting project.
“At Walplast, we are committed to providing innovative and accessible solutions that enhance the beauty and longevity of homes. The HomeSure MasterTouch range is designed with the modern homeowner in mind—delivering affordability without compromising on quality. Our focus is to empower individuals to bring their dream homes to life with reliable and superior products,” said Kaushal Mehta, Managing Director of Walplast.
Aniruddha Sinha, Senior Vice President Marketing, CSR, and Business Head – P2P Division, Walplast added, “The HomeSure MasterTouch Lush and Prime range align with our vision of offering peace of mind to customers with durable, aesthetic, and affordable solutions for every home. The “Elevate your lifestyle” reflects our belief that everyone deserves to live in a home they take pride in. With this launch, we continue our mission of enabling dreams of beautiful homes for all.”
The newly launched products will be available across key markets, including Maharashtra, Rajasthan, Gujarat, Uttar Pradesh, Madhya Pradesh, Jharkhand, and Chhattisgarh. The HomeSure MasterTouch portfolio also includes premium emulsions such as Bloom and Vivid, as well as a premium primer, catering to diverse customer needs in the construction and home improvement sectors.
Walplast’s HomeSure portfolio encompasses a comprehensive range of construction solutions, including Wall Putty, Tile Adhesives, Gypsum-based products, Construction Chemicals, AAC blocks, and more. With a robust network of over 800 active distributors, 6000 dealers, and more than 65,000 influencers, the HomeSure division continues to be the preferred choice in the construction ecosystem, reinforcing Walplast’s position as an industry leader.
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Carbon Capture, Utilisation, and Storage (CCUS) is crucial for reducing emissions in the cement industry. Kanika Mathur explores how despite the challenges such as high costs and infrastructure limitations, CCUS offers a promising pathway to achieve net-zero emissions and supports the industry’s sustainability goals.
The cement industry is one of the largest contributors to global CO2 emissions, accounting for approximately seven to eight per cent of total anthropogenic carbon dioxide released into the atmosphere. As the world moves towards stringent decarbonisation goals, the cement sector faces mounting pressure to adopt sustainable solutions that minimise its carbon footprint. Among the various strategies being explored, Carbon Capture, Utilisation, and Storage (CCUS) has emerged as one of the most promising approaches to mitigating emissions while maintaining production efficiency. This article delves into the challenges, opportunities, and strategic considerations surrounding CCUS
in the cement industry and its role in achieving net-zero emissions.
Understanding CCUS and Its Relevance to Cement Manufacturing
Carbon Capture, Utilisation, and Storage (CCUS) is an advanced technological process designed to capture carbon dioxide emissions from industrial sources before they are released into the atmosphere. The captured CO2 can then be either utilised in various applications or permanently stored underground to prevent its contribution to climate change.
Rajesh Kumar Nayma, Associate General Manager – Environment and Sustainability, Wonder Cement says, “CCUS is indispensable for achieving Net Zero emissions in the cement industry. Even with 100 per cent electrification of kilns and renewable energy utilisation, CO2 emissions from limestone calcination—a key raw material—remain unavoidable. The cement industry is a major contributor to
GHG emissions, making CCUS critical for sustainability. Integrating CCUS into plant operations ensures significant reductions in carbon emissions, supporting the industry’s Net Zero goals. This transformative technology will also play a vital role in combating climate change and aligning with global sustainability standards.”
The relevance of CCUS in cement manufacturing stems from the inherent emissions produced during the calcination of limestone, a process that accounts for nearly 60 per cent of total CO2 emissions in cement plants. Unlike other industries where CO2 emissions result primarily from fuel combustion, cement production generates a significant portion of its emissions as an unavoidable byproduct. This makes CCUS a particularly attractive solution for the sector, as it offers a pathway to drastically cut emissions without requiring a complete overhaul of existing production processes.
According to a Niti Ayog report from 2022, the adverse climatic effects of a rise in GHG emissions and global temperatures rises are well established and proven, and India too has not been spared from adverse climatic events. As a signatory of the Paris Agreement 2015, India has committed to reducing emissions by 50 per cent by the year 2050 and reaching net zero by 2070. Given the sectoral composition and sources of CO2 emissions in India, CCUS will have an important and integral role to play in ensuring India meets its stated climate goals, through the deep decarbonisation of energy and CO2 emission intensive industries such as thermal power generation, steel, cement, oil & gas refining, and petrochemicals. CCUS can enable the production of clean products while utilising our rich endowments of coal, reducing imports and thus leading to an Indian economy. CCUS also has an important role to play in enabling sunrise sectors such as coal gasification and the nascent hydrogen economy in India.
The report also states that India’s current cement production capacity is about 550 mtpa, implying capacity utilisation of about 50 per cent only. While India accounts for 8 per cent of global cement capacity, India’s per capita cement consumption is only 235 kg, and significantly low compared to the world average of 500 kg per capita, and China’s per capita consumption of around 1700 kg per capita. It is expected that domestic demand, capacity utilisation and per capita cement consumption will increase in the next decade, driven by robust demand from rapid industrialisation and urbanisation, as well as the Central Government’s continued focus on highway expansions, investment in smart cities, Pradhan Mantri Awas Yojana (PMAY), as well as several state-level schemes.
Key Challenges in Integrating CCUS in Cement Plants Spatial Constraints and Infrastructure Limitations
One of the biggest challenges in integrating CCUS into existing cement manufacturing facilities is space availability. Most cement plants were designed decades ago without any consideration for carbon capture systems, making retrofitting a complex and costly endeavour. Many facilities are already operating at full capacity with limited available space, and incorporating additional carbon capture equipment requires significant modifications.
“The biggest challenge we come across repeatedly is that most cement manufacturing facilities were built decades ago without any consideration for carbon capture systems. Consequently, one of the primary hurdles is the spatial constraints at these sites. Cement plants often have limited space, and retrofitting them to integrate carbon capture systems can be very challenging. Beyond spatial issues, there are additional considerations such as access and infrastructure modifications, which further complicate the integration process. Spatial constraints, however, remain at the forefront of the challenges we encounter” says Nathan Ashcroft, Carbon Director, Stantec.
High Capital and Operational Costs CCUS technologies are still in the early stages of large-scale deployment, and the costs associated with implementation remain a significant barrier. Capturing, transporting, and storing CO2 requires substantial capital investment and increases operational expenses. Many cement manufacturers, especially in developing economies, struggle to justify these costs without clear financial incentives or government support.
Regulatory and Policy Hurdles The regulatory landscape for CCUS varies from region to region, and in many cases, clear guidelines and incentives for deployment are lacking. Establishing a robust framework for CO2 storage and transport infrastructure is crucial for widespread CCUS adoption, but many countries are still in the process of developing these policies.
Waste Heat Recovery and Energy Optimisation in CCUS Implementation
CCUS technologies require significant energy inputs, primarily for CO2 capture and compression. One way to offset these energy demands is through the integration of waste heat recovery (WHR) systems. Cement plants operate at high temperatures, and excess heat can be captured and converted into usable energy, thereby reducing the additional power required for CCUS. By effectively utilizing waste heat, cement manufacturers can lower the overall cost of carbon capture and improve the economic feasibility of CCUS projects.
Another critical factor in optimising CCUS efficiency is pre-treatment of flue gases. Before CO2 can be captured, flue gas streams must be purified and cleaned to remove particulates and impurities. This additional processing can lead to better capture efficiency and lower operational costs, ensuring that cement plants can maximise the benefits of CCUS.
Opportunities for Utilising Captured CO2 in the Cement Sector
While storage remains the most common method of handling captured CO2, the utilising aspect presents an exciting opportunity for the cement industry. Some of the most promising applications include:
Carbonation in Concrete Production
CO2 can be injected into fresh concrete during mixing, where it reacts with calcium compounds to form solid carbonates. This process not only locks away CO2 permanently but also enhances the compressive strength of concrete, reducing the need for additional cement.
Enhanced Oil Recovery (EOR) and Industrial Applications
Captured CO2 can be used in enhanced oil recovery (EOR), where it is injected into underground oil reservoirs to improve extraction efficiency. Additionally, certain industrial processes, such as urea production and synthetic fuel manufacturing, can use CO2 as a raw material, creating economic opportunities for cement producers.
Developing Industrial Hubs for CO2 Utilisation
By co-locating cement plants with other industrial facilities that require CO2, manufacturers can create synergies that make CCUS more economically viable. Industrial hubs that facilitate CO2 trading and re-use across multiple sectors can help cement producers monetise their captured carbon, improving the financial feasibility of CCUS projects.
Strategic Considerations for Large-Scale CCUS Adoption Early-Stage Planning and Feasibility Assessments
Cement manufacturers looking to integrate CCUS should begin with comprehensive feasibility studies to assess site-specific constraints, potential CO2 storage locations, and infrastructure requirements. A phased implementation strategy, starting with pilot projects before full-scale deployment, can help mitigate risks and optimise
system performance.
Neelam Pandey Pathak, Founder and CEO, Social Bay Consulting and Rozgar Dhaba says, “Carbon Capture, Utilisation and Storage (CCUS) has emerged as a transformative technology that holds the potential to revolutionise cement manufacturing by addressing its carbon footprint while supporting global sustainability goals. CCUS has the potential to be a game-changer for the cement industry, which accounts for about seven to eight per cent of global CO2 emissions. It addresses one of the sector’s most significant challenges—emissions from clinker production. By capturing CO2 at the source and either storing it or repurposing it into value-added products, CCUS not only reduces
the carbon footprint but also creates new economic opportunities.”
Government Incentives and Policy Support
For CCUS to achieve widespread adoption, governments must play a crucial role in providing financial incentives, tax credits, and regulatory frameworks that support carbon capture initiatives. Policies such as carbon pricing, emission reduction credits, and direct subsidies for CCUS infrastructure can make these projects more economically viable for cement manufacturers.
Neeti Mahajan, Consultant, E&Y India says, “With new regulatory requirements coming in, like SEBI’s Business Responsibility and Sustainability Reporting for the top 1000 listed companies, value chain disclosures for the top 250 listed companies, and global frameworks to reduce emissions from the cement industry – this can send stakeholders into a state of uncertainty and unnecessary panic leading to a semi-market disruption. To avoid this, communication on technologies like carbon capture utilisation and storage (CCUS), and other innovative tech technologies which will pave the way for the cement industry, is essential. Annual reports, sustainability reports, the BRSR disclosure, and other broad forms of communication in the public domain, apart from continuous stakeholder engagement internally to a company, can go a long way in redefining a rather traditional industry.”
The Role of Global Collaborations in Scaling CCUS
International collaborations will be essential in driving CCUS adoption at scale. Countries that have made significant progress in CCUS, such as Canada, Norway, and the U.S., offer valuable insights and technological expertise that can benefit emerging markets. Establishing partnerships between governments, industry players, and research institutions can help accelerate technological advancements and facilitate knowledge transfer.
Raj Bagri, CEO, Kapture, says “The cement industry can leverage CCUS to capture process and fuel emissions and by using byproducts to replace existing carbon intensive products like aggregate filler or Portland Cement.”
Organisations like the Carbon Capture Knowledge Centre in Saskatchewan provide training programs and workshops that can assist cement manufacturers in understanding CCUS implementation. Additionally, global symposiums and industry conferences provide platforms for stakeholders to exchange ideas and explore collaborative opportunities.
According to a Statista report from September 2024, Carbon capture and storage (CCS) is seen by many experts as a vital tool in combating climate change. CCS technologies are considered especially important for hard-to-abate industries that cannot be easily replaced by electrification, such as oil and gas, iron and steel, and cement and refining. However, CCS is still very much in its infancy, capturing just 0.1 per cent of global CO2 emissions per year. The industry now faces enormous challenges to reach the one billion metric tons needing to be captured and stored by 2030 and live up to the hype.
The capture capacity of operational CCS facilities worldwide increased from 28 MtCO2 per year in 2014 to around 50 MtCO2 in 2024. Meanwhile, the capacity of CCS facilities under development or in construction has risen to more than 300 MtCO2 per year. As of 2024, the United States had the largest number of CCS projects in the pipeline, by far, with 231 across various stages of development, 17 of which were operational. The recent expansion of CCS has been driven by developments in global policies and regulations – notably the U.S.’ Inflation Reduction Act (IRA) – that have made the technology more attractive to investors. This has seen global investment in CCS more than quadruple since 2020, to roughly $ 11 billion in 2023.
The Future of CCUS in the Cement Industry
As technology advances and costs continue to decline, CCUS is expected to play a crucial role in the cement industry’s decarbonisation efforts. Innovations such as cryogenic carbon capture and direct air capture (DAC) are emerging as promising alternatives to traditional amine-based systems. These advancements could further enhance the feasibility and efficiency of CCUS in cement manufacturing.
In conclusion, while challenges remain, the integration of CCUS in the cement industry is no longer a question of “if” but “when.” With the right mix of technological innovation, strategic planning, and policy support, CCUS can help the cement sector achieve net zero emissions while maintaining its role as a vital component of global infrastructure development.
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ICR explores the Indo-German partnership is driving growth through collaboration in trade, technology, sustainability, and workforce development, with a strong focus on SMEs and innovation. By leveraging each other’s strengths, both nations are fostering industrial modernisation, skill development, and economic resilience for a sustainable future.
The optimism expressed by the panellists suggests that Indo-German collaboration is not only beneficial for both countries but also sets a powerful example for global partnerships.
In a rapidly evolving global economy, strategic international collaborations are more important than ever. One such partnership that continues to gain momentum is between India and Germany. This collaboration spans a wide array of sectors—from trade and technology to sustainability and workforce development—and is already delivering impressive results. The recent First Construction Council webinar, titled ‘Indo-German Partnership: Collaborating for Growth’, provided an extensive look at this vital alliance. Moderated by Rajesh Nath, Managing Director, VDMA India, the session explored the evolution, opportunities, and challenges that define the Indo-German partnership, which saw an impressive $33 billion in bilateral trade in 2023.
From Trade to Technology
The Indo-German relationship has undergone a remarkable transformation over the years, transitioning from basic trade to multifaceted cooperation. Rajesh Nath opened the session by underscoring the dynamic nature of Indo-German trade, with more than 1,800 German companies now operating in India. “Machinery accounts for nearly a third of our bilateral trade,” Nath shared, highlighting sectors such as renewable energy, digitalisation, and green hydrogen as key growth areas for the future.
V.G. Sakthikumar, Managing Director, Schwing Stetter India, reflected on his company’s own journey, which mirrors the broader evolution of the Indo-German partnership. When Schwing Stetter first set up operations in India in 1998, the country was considered a relatively small market. Today, India has become the largest manufacturing hub for Schwing Stetter, with exports flowing to markets in Europe, the U.S., and even China. “Germany trusted India to produce high-quality products at competitive prices, and now, we export machinery back to Germany and America,” said Sakthikumar, underscoring the mutual growth that has defined this partnership.
India’s Industrial Modernisation
Germany has played a pivotal role in India’s industrial modernisation, particularly in advancing manufacturing capabilities. Maanav Goel, Managing Director, Hoffmann Quality Tools India, discussed how the historical and contemporary aspects of Indo-German cooperation have shaped both nations’ industries. “Before 1947, our interactions were largely limited to cultural exchanges,” Goel said, explaining how industrial cooperation became central after India’s independence. “Today, German companies like Hoffmann have developed high-quality tools tailored to industries such as automotive and aerospace.”
Goel also pointed out that German companies have been instrumental in advancing India’s Industry 4.0 ambitions. “Sustainability is not just a cost; it’s an investment,” he added, referring to the energy-efficient and precision-engineered solutions Hoffmann provides to enhance India’s manufacturing sector.
Research, Innovation, and the Role of Technology
Innovation has always been the core of the Indo-German partnership. Anandi Iyer, Director, Fraunhofer Office India, highlighted how research and innovation are driving both countries toward a more sustainable future. As the world’s largest applied research ecosystem, Fraunhofer has introduced technologies ranging from digital twins for manufacturing to waste-to-construction materials, all aimed at improving efficiency and sustainability in Indian industries.
Reflecting on Fraunhofer’s work in India, Iyer noted that India is not just a market for technology, but a hub of entrepreneurship and rapid implementation. “We entered India in 2008, and today we earn over €70 million annually from Indian industry contracts,” she shared. Iyer also stressed the importance of democratising technology, especially for India’s small and medium enterprises (SMEs). “SMEs are crucial to the future of both India and Germany. By creating innovation clusters similar to Germany’s, we can ensure that technology benefits all businesses, big and small,” she said.
Cornerstone of Growth
SMEs are a critical focus in the Indo-German partnership. Manoj Barve, India Head, BVMW, emphasised their importance in both countries. “In Germany, SMEs contribute 55 per cent to GDP and employ 60 per cent of the workforce,” Barve said. “India’s SMEs, which contribute 30 per cent to the country’s GDP, are equally important for job creation and economic growth.”
Barve also discussed the complementary strengths of India and Germany. India’s prowess in IT, coupled with Germany’s engineering expertise, provides a fertile ground for collaboration. “Germany’s advanced technology can support India’s ‘Make in India’ initiative, while India’s cost-effective manufacturing can help Germany tackle its energy-led inflation,” he explained.
Gender diversity was another issue Barve touched upon, pointing out that Germany’s workforce is 62 per cent female, supported by policies such as parental leave and flexible working hours. “India, at 37 per cent, has room to grow in this area,” he added. “Addressing issues like workplace safety and societal norms can help unlock the full potential of Indian women in the workforce.”
Navigating Challenges and Expanding Reach
The webinar also addressed the challenges that SMEs face when attempting to expand internationally. Nitin Pangam, Managing Director, Maeflower Consulting, emphasised the need for deeper market insights and sustained engagement to succeed globally. “SMEs need to understand target markets better, whether it’s leveraging the Inflation Reduction Act in the U.S. or tapping into infrastructure projects in Saudi Arabia,” Pangam said.
He also stressed the importance of government support for SMEs. “Institutions like Invest India and VDMA India play a crucial role in guiding SMEs toward international expansion,” Pangam added, suggesting that India could benefit from models like Enterprise Ireland’s, which helps SMEs navigate global markets.
Shared Responsibility
An often overlooked but vital aspect of Indo-German collaboration is skill development. Schwing Stetter’s Sakthikumar discussed how the company has been proactive in training operators and welders, addressing the significant skills gap in India’s construction machinery sector. “We have partnered with state governments to create training programs that produce highly skilled workers, and some of our welding schools have produced global champions,” he shared.
Iyer also highlighted the potential for India to adopt Germany’s dual education system, which sees 5 per cent of the workforce engaged in training at any given time. “This system can be a model for India, where industry-driven skill programs can help bridge the skills gap and align workers with evolving technologies,” Iyer explained.
Looking to the Future
The future of the Indo-German partnership lies in embracing sustainability, digitalisation, and workforce empowerment. Rajesh Nath summarised the webinar’s discussions, emphasising that sustainability and supply chain resilience will play a defining role in the relationship moving forward. “Leveraging technology and deepening institutional collaboration are key to the future,” Nath concluded, signalling the importance of continued cooperation in these areas.
The optimism expressed by the panellists suggests that Indo-German collaboration is not only beneficial for both countries but also sets a powerful example for global partnerships. As Iyer aptly remarked, “The future is bright, but it requires strategic steps to make SMEs and innovation the engines of growth.”
The Indo-German partnership represents a model of what strategic international cooperation can achieve. By focusing on trade, technology, sustainability, and workforce development, both nations have been able to create a mutually beneficial relationship that drives growth and innovation. As India and Germany move forward, their cooperation will serve as a blueprint for growth in the years to come.
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