Economy & Market

Indian Cement Industry: The year gone by and the challenges ahead

Published

14 years ago

December 31, 2011

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Though the year 2011 has been bumpy for the Indian cement sector, demand growth for the sector is likely to bounce back given the positive outlook of the general construction and infrastructure sector. The main impediments which have impacted the industry are the recent devaluation of the rupee and bank funding becoming costlier for the industry. This has led to a rise in import & input costs for the company in the form of freight and logistics cost. Read on to know the journey of the Indian Cement industry in the current scenarioIndia is the second largest producer of cement in the world after China and the Indian cement industry has seen a tremendous boom during the last few years in sync with the booming Indian economy. However, the fiscal 2011-12 saw the Indian economy suffering a setback due to an increase in inflation, spiking interest rates and a surge in the prices of commodities and fuels alongwith a devalued rupee. A lull has also been observed in the country’s housing sector, which accounts for over 60-70 percent of the country’s cement demand.Pervasion of a negative sentiment in the Indian Economy :As per the monthly "Economic Watch for November 2011" brought out by the Federation of Indian Chambers of Commerce and Industry (FICCI), the country’s economic growth is expected to slump to 6.6-6.8 percent in the financial year 2011-12. This projection by the industry’s apex body comes in the wake of the Indian government having lowered the country’s GDP growth forecast from the originally projected 9 percent to 7.25-7.75 percent. A poor performance by the mining, manufacturing and capital goods sectors resulted in a 5.1 percent on year contraction in the country’s industrial production in October in over two years. The growth of India’s GDP in the July-September quarter was pegged at 6.9 percent, the lowest in two years on account of the weak global fundamentals and a tight monetary policy by the government. The export sector is also likely to witness a moderation given the bearish fundamentals gripping the world economy. The situation has been complicated further by a widening trade deficit in the current fiscal. Exports for the April-November period increased by 33.2 percent on year to $ 192.7 billion while imports rose by 30.2 percent on year to $ 309.5 billion.A gloom has also been witnessed in the investment climate of the country with a slowdown in the housing and construction industry, which are critical demand drivers for the cement industry. This view was further emphasized by Jayram Nambiar, Ex Managing Director, Pfeiffer India Pvt Ltd who stated, "there has been a substantial reduction in private investments in major capital projects in 2011. There has been low government expenditure on public projects and a fall in investment levels in the housing and construction industry. The cement industry is unlikely to see a revival in demand to the tune of 8-9 percent for some time."Indian Cement Industry : The year that wasThe negative sentiment in the economy has also found its reverberations in the cement sector.Jayram Nambiar, Ex Managing Director-Pfeiffer India Pvt Ltd has concurred "as per a report by the CMA, the country produced 98.81 mt of cement in April-October 2011 which is only 1.2 percent higher than 96.75 mt produced in 2010. A slowdown in demand for cement has been noticed from the housing industry and if the trend continues, the annual growth in demand for cement will remain in the range of 3 per cent on a year on year basis , in 2011-12". The year 2011 also witnessed low cement capacity utilizations compounded by a fall in capacity additions. It was further observed that inspite of an oversupply situation, increased cost of inputs such as fuel and commodities led to a rise in prices of cement across India. Commenting on the capacity parameters for the cement industry, Umesh Shrivastava, Executive Chairman, Holtec Consulting Private Limited stated, "the average capacity utilization, over the year is likely to be in the range of 70-75 percent, which despite being low, is pegged at a level higher than the breakeven point of 50 percent. A slowdown has also been observed in capacity additions, with only 12-13 mtpa of capacity commissioned till now. A capacity addition of around 30 mtpa was expected to come onstream in the period April 1, 2011-31 March 2012." The industry was expecting the installation of around 15-20 mtpa of capacity in 2011. However, a difference in value perceptions between prospective sellers and buyers led to the prospect remaining unrealized. As compared to a peak cycle witnessed during FY 2007-08, cement industry utilization rates witnessed a downslide in FY 2011-12. Commenting on this aspect, Sumit Banerjee, Vice Chairman, Reliance Cementation augured, "the cement sector is cyclical in nature and continues to witness peak and trough cycles. Following a peak capacity utilization rate of 98 percent in FY08, the industry witnessed a down cycle with utilization rate falling to 74 percent in FY 2011-12. Hopefully, this should be the bottom of the cycle with the utilization rate expected to record an improvement to 76 percent in FY 2012-13 and further to 79 percent in FY 2013-14."A moderate 3.1 percent year on year growth in dispatches was recorded by the Indian cement industry in FY 2011-12, following a year on year increase of 4.5 percent in FY 2010-11. The bleak scenario was a result of muted demand, especially in the Southern Indian state of Andhra Pradesh due to political instability. Demand growth for cement in fiscal 2011-12 was expected to remain lower at 4.5 percent due to a slowdown in the economy, sluggish growth in infrastructure and real estate projects and a low momentum in government sponsored housing and irrigation schemes.Cost pressures also added to the woes of the cement industry in this fiscal. There was a rise in limestone mining costs due to a hike in prices of diesel in June 2011. Heavy monsoons in the coal mining areas also forced cement companies to import coal at inflated price levels due to a fall in the value of the rupee. High input costs coupled with a fall in demand led to a pressure on the margins of companies. Commenting on the cost factor, Sumit Banerjee, Vice Chairman, Reliance Cementation said, "severe pressure has been exerted over cement production costs over the last two years. The underlying reason behind the same was an increase in costs incurred on raw material, fuel and power, and freight costs which account for around 70 percent of the overall costs for the manufacture of cement. This has affected the operating margin of the industry, which has gone down significantly inspite of higher cement prices."The year can also be noted for technological developments which included waste heat recovery systems and utilization of lower grades of limestone for making clinker. Positive moves were also witnessed on the part of stronger players in the domestic cement arena who tried to establish production capacities outside India and acquire sources for solid fuel.The road aheadThe future largely appears bleak for the cement industry in the fiscal 2012-13 due to prevalent weak economic fundamentals. Commenting on the adversities likely to be faced by the industry, Jayram Nambiar, Ex Managing Director, Pfeiffer India Pvt Ltd said, "looking ahead, the economic scenario the world over and in India is anti growth and the worst is yet to come. The problem in India has been compounded by the current unfavorable political climate. The coming general election is unlikely to lead to the emergence of a strong political party or coalition. The growth levels of 2008-09 are not likely to be witnessed over the next two years. The period is also likely to be tough for the cement industry. The industry will have to deal with problems like rising energy costs compounded with the depreciation of the rupee, higher freight and distribution costs and low price realizations due to weak demand." These problems shall further be exacerbated by a rise in labour costs due to inflationary trends and a rise in the cost of living index. However, price levels for cement cannot be expected to increase much due to high unutilized capacity far in excess of demand likely to prevail in 2012 and 2013. However, it should be noted that additional cement capacity of 20 million mtpa is being implemented and will be commissioned in 2012. If sufficient demand exists, a capacity utilisation of more than 85 percent is easily achievable. The weak economic climate will also have an impact on smaller cement producers and their operations, leading to a spate of consolidations. Concurring on this issue, Nambiar reiterated, "presently, 35 percent of the cement production capacity is in the hands of smaller producers for whom the future will be one of tribulation due to unfavourable economic conditions. The next two years will see a period of consolidation in the industry with the smaller players withdrawing from the industry by selling out to the financially stronger cement producers. Their share of the total cement capacity can be expected to increase to over 70 percent by 2014."Being a huge country, there will be a difference in the region wise demand for cement in the country which is broadly divided into the western, eastern, northern and southern regions. Elaborating on this aspect, Sumit Banerjee, Vice Chairman, Reliance Cementation stated, "demand for cement in the South is expected to go southward by 4 percent in FY2011-12, display lower than average growth at 5 percent in FY2012-13 and bounce back sharply in FY2013-14. A rise in growth will be witnessed by the Eastern and Central regions from the lower than average levels of 6 percent in FY2011-12 to 9 percent in FY2013-14. Demand for cement in the Northern region is expected to remain in the range of 7-9 percent while the Western region will show demand in the 10 percent range till FY2013-14."Reiterating on the capacity utilization differentials across different regions, Banerjee stated, "a moderation is expected to set in the average industry capacity utilization rate to 76 percent in FY2012-13 from 79 percent in FGY2010-11 before showing an upward curve to 79 percent in FY2013-14. The highest capacity utilization rates are likely to be witnessed by the Eastern and Northern regions at 90 percent levels in FY2012-13 while higher capacity additions could lead to a fall in capacity utilizations in Central India. Utilization rates are also likely to be impacted in the Western region due to pressure exerted on account of cement supply from Southern India."The industry is also optimistic that demand for cement will surge in the near future through the revival of economic activity by the government especially through investment in infrastructure projects. Expressing confidence that the government will initiate the demand push process, Umesh Shrivastav, Executive Chairman, Holtec Consulting Private Limited stated, "following the slump of 2011, demand for cement is likely to see a recovery process and will touch levels of 6-8 percent in 2012. The increase in growth will be triggered by the government’s drive to revive economic activity by initiating investment in infrastructure projects. A correction is foreseen in interest rates and improved regulation as regards land acquisition and environmental clearance leading to revival of several on-hold projects. Cement prices are likely to maintain an upward curve due to increasing production and ownership costs alongwith lower capacity utilizations."Challenges & Opportunities for Indian Cement Industry during 2012 onwards:The forthcoming year 2012 for the Cement Industry is likely to see more of consolidation but lower growth rate. The challenges and opportunities may be summarized as follows:??Extraordinary delay in mining lease sanction and delay in land acquisition & MoEF clearance.??Non availability of domestic coal clubbed with poor quality. Hence, industry has to depend upon high cost imported coal. ??Depreciation of Indian currency has further increased the cost of imported coal, Fuel, Gypsum & other raw materials.??Continuous hike in power tariff, due to increase in coal cost & cross subsidy. Though captive power plant appear to be a part solution, but CPP is again depending upon coal supply linkage, which is uncertain.??On top of it, total taxation including excise, VAT, royalty and cross subsidy amounts to approx. 39 – 40% of Ex-works sales realization. Cement being mass consuming item, such high taxation needs re-visit.??Low packing rate and low level of dispatches leading to IR – Labor issues as per the applicable rules & norms of wage board.??Cement Plant being a capital intensive unit, high interest cost is another disincentive for fresh investment in the sector.??Reduced spending on Government Projects and Slow down in infrastructure investment is another cause of worry for fresh investment.Some of the Indian Economy Strong Points & Stimulators relating to Cement Industry??Growing population of currently 1.2 billion with increasing spending power??Government pursuing structural reforms, facilitating pan-Asian trade, increasing FDI inflows??Recent push at Prime Minister’s level for large infrastructure projects such as Highways, Roads, Ports, Railways, Power, Housing, etc. ??Requirement of Accelerated industrialization to cater to infrastructure and consumer markets??India’s economic growth based on reforms and economic liberalization likely to sustain on long term basis.Measures to be implemented for stimulating cement demand:In order to stimulate demand in an already sagging industry, the government needs to initiate certain measures in the form of providing tax incentive to the industry, reduce the overall tax value on the commodity and phase out cross subsidy on supportive components. The government can also consider classifying cement as "Declared Goods" like steel having a uniform VAT rate of 4 percent throughout the country. To throw light on the matter further, P.K.Ghosh, Chairman, Ercom Engineers Pvt Ltd Ercom Group said, "the overall taxation value on cement can be brought down to a level of 20-25 percent of ex-works selling price from the current level. Tax incentive should be provided by the government for promoting blended cement in the larger interest of mineral conservation, waste utilization and bringing down carbon emission. Cross subsidy burden on electricity, diesel and railway freight should be phased out in a gradual manner. The supply of superior quality coal should be increased through merchant mining in private sector. Companies who have been allotted captive coal blocks should be asked to increase production for selling in the open market."Cement manufacturers need to maximize production of blended cement by utilizing industrial waste like fly ash and slag for conserving mineral resources. The current average blending ratio in the country is pegged at approximately 27 percent which needs to be increased to 40 percent over the next 4-5 years. High energy consuming old and inefficient equipment needs to be replaced with modern equipment for optimizing and minimizing energy consumption alongwith increasing capacity. The industry needs to adopt the latest technology for Green Cement grinding for reducing clinker consumption and deriving benefits of carbon credits. Ready Mix Concrete (RMC) business may be promoted by cement companies or small companies should be encouraged to undertake RMC business at various locations, leading to bulk supply of cement and consequent reduction in packaging cost.ConclusionIn a nutshell, the government needs to support the cement industry in reviving its fortune through initiatives like reducing tax burden, providing incentives and ensuring availability of superior quality coal.

Concrete

PROMECON introduces infrared-based tertiary air measurement system for cement kilns

Published

4 hours ago

May 20, 2026

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The new solution promisescontinuous, real-time tertiary air flow measurement in cement plant operations.

PROMECON GmbH has launched the McON IR Compact, an infrared-based measuring system designed to deliver continuous, real-time tertiary air flow measurement in cement plant operations. The system addresses the longstanding process control challenge of accurate tertiary air monitoring under extreme kiln conditions. It uses patented infrared time-of-flight measurement technology that operates without calibration or maintenance intervention.

Precise tertiary air measurement is a critical requirement for stable rotary kiln operation. The McON IR Compact is engineered to function reliably at temperatures up to 1,200°C and in the presence of abrasive clinker dust. Its vector-based digital measurement architecture ensures that readings remain unaffected by swirl, dust deposits or drift. Due to these conditions conventional measurement systems in pyroprocess environments are often compromised.

The system is fully non-intrusive and requires no K-factors, recalibration or periodic readjustment, enabling years of uninterrupted operation. This design directly supports plant availability and reduces the maintenance overhead typically associated with process instrumentation in high-temperature zones.

PROMECON has deployed the McON IR Compact at multiple cement facilities, including Warta Cement in Poland. Plant operators report that the system has aided in identifying blockages, optimising purging cycles for gas burners, and supplying accurate flow data for AI-based process optimisation programmes. The practical outcomes include more stable kiln operation, improved process control, and earlier detection of process disturbances.

On the energy side, real-time tertiary air data enables reduction in induced draft fan load and helps flatten process oscillations across the pyroprocess. This translates to lower fuel and energy consumption, fewer unplanned shutdowns, and a measurable reduction in NOx peaks. This directly reflects on the downstream cost implications for plants operating SCR or SNCR systems for emissions compliance.

Concrete

Filtration Technology is Critical for Efficient Logistics

Published

5 days ago

May 15, 2026

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Niranjan Kirloskar, MD, Fleetguard Filters, makes the case that filtration technology, which has been long treated as a routine consumable, is in fact a strategic performance enabler across every stage of cement production and logistics.

India’s cement industry forms the core for infrastructure growth of the country. With an expected compound annual growth rate of six to eight per cent, India has secured its position as the second-largest cement producer globally. This growth is a result of the increasing demand across, resulting in capacity expansion. Consequently, cement manufacturers are now also focusing on running the factories as efficiently as possible to stay competitive and profitable.
While a large portion of focus still remains on production technologies and capacity utilisation, the hidden factor in profitability is the efficiency of cement logistics. The logistics alone account for nearly 30 per cent to 40 per cent of the total cost of cement, making efficiency in this segment a key lever for profitability and reliability.
In the midst of this complex and high-intensity ecosystem, filtration often remains one of the most underappreciated yet essential enablers of performance.

A demanding operational landscape
Cement production and logistics inherently operate in some of the harshest industrial environments. With processes such as quarrying, crushing, grinding, clinker production, and bulk material handling expose the machinery to constant high temperatures, heavy loads, and dust, often the silent destructive force for engines.
The ecosystem is abrasive, and often one with a high contamination index. These challenging conditions demand equipment such as the excavators, crushers, compressors, and transport vehicles to perform and perform efficiently. The continuous exposure to contamination across every aspect like air, fuel, lubrication, and even hydraulic systems causes long-term damage. Studies have also shown that 70 to 80 per cent of hydraulic system failures are directly linked to contamination, while primary cause of engine wear is inadequate air filtration.
For engines as heavy as these, even a minor contaminant has a cascading effect; reducing efficiency, performance and culminating to unplanned downtime. Particles as small as 5 to 10 microns, far smaller than a human hair (~70 microns), can cause significant damage to critical engine components. In an industry where margins are closely linked to operational efficiency, such disruptions can significantly affect both cost structures and delivery timelines.

Dust management: A persistent challenge
Dust is a natural by-product in cement operations. From drilling and blasting in the quarries to packing in plants, this fine particulate matter does occupy a large space in operations. Dust concentration levels in quarry and crushing zones often create extremely high particulate exposure for equipment. These fine particles, when enter the engines and critical systems, accelerates the wear and tear of the component, affecting directly the operational efficiency. Over time every block fall; engine performance declines, fuel consumption rises, and maintenance cycles shorten. In this case, effective air filtration is the natural first line of defence. Advanced filtration systems are designed to capture high volumes of particulate matter while maintaining consistent airflow, ensuring that engines and equipment operate under optimal conditions.
In high-dust applications, as in cement production, even the filtration systems are expected to sustain performance over extended periods without the need of frequent replacement. This becomes crucial in remote quarry locations where access to frequent maintenance may be limited.

Fluid cleanliness and system integrity
Beyond air filtration, fluid systems also play a crucial role for equipment reliability in cement operations. Fuel systems are required to remain free from contaminants for efficient working of combustion and injection protection. Additionally, lubrication systems also need to maintain the oil purity to reduce friction and prevent any premature wear of moving parts. The hydraulic systems, which are key to several heavy equipment operations, are especially sensitive to contamination.
If fine particles or water enters these systems, it can lead to reduced efficiency, erratic performance, and eventual failure of the system. Modern filtration systems are designed with high-efficiency media capable of removing extremely fine contaminants, with advanced fuel and oil filtration solutions filtering particles as small as two to five microns. Multi-stage filtration systems further ensure that fluid performance is maintained even under challenging operating conditions.
Another critical aspect of fuel systems is water separation. Removing moisture helps prevent corrosion, improves combustion efficiency and enhances overall engine reliability. Modern water separation technologies can achieve over 95 per cent efficiency in removing water from fuel systems.

Ensuring reliability across the value chain
Filtration plays a critical role across every stage of cement logistics:
• Quarry operations: Equipment operates in highly abrasive environments, requiring strong protection against dust ingress and hydraulic contamination.
• Processing units: Crushers, kilns, and grinding mills depend on clean lubrication and cooling systems to sustain continuous operations.
• Material handling systems: Pneumatic and mechanical systems rely on clean air and fluid systems for efficiency and reliability.
• Transportation networks: Bulk carriers and trucks must maintain engine health and fuel efficiency to ensure timely deliveries.
Across these operations, filtration plays a vital role; as it supports consistent equipment performance while reducing the risk of unexpected failures.
Effective filtration solutions can reduce unscheduled equipment failures by 30 to 50 per cent across heavy-duty operations.

Uptime as a strategic imperative
In cement manufacturing, uptime is currency. Downtime not only delays the production, but it also greatly impacts the supply commitments and logistics planning. With the right filtration systems, contaminants are kept at bay from entering the
critical systems, and they also significantly extend the service intervals.
Optimised filtration can extend service intervals by 20 to 40 per cent, reducing maintenance frequency while maintaining consistent performance across demanding operating conditions. Filtration systems designed for heavy-duty applications sustain efficiency throughout their lifecycle, ensuring reliable protection with minimal interruptions. This leads to improved equipment availability, lower maintenance costs, and more predictable operations, with well-maintained systems capable of achieving uptime levels of over 90 to 95 per cent in challenging cement environments.

Supporting emission and sustainability goals
With the rising environmental awareness, the cement industry too is aligning with the stricter norms and sustainability targets. In this scenario, the operational efficiency is directly linked to emission control.

Air and fuel systems that are clean enable
much more efficient combustion. They also reduce emissions from both the stationary equipment and transport fleets. Similarly, with a well-maintained fluid cleanliness, emission systems function better. Poor combustion due to contamination can increase emissions by 5 to 10 per cent, making clean systems critical for compliance.
Additionally, efficient and longer lasting filtration systems significantly reduce any waste generation and contribute to increased sustainable maintenance practices. Extended-life filtration solutions can reduce filter disposal and maintenance waste by 15 to 20 per cent. Smart and efficient filtration in this case plays an important role in meeting the both regulatory and environmental objectives within the industry.

Advancements in filtration technology
Over the years, there has been a significant evolution in the filtration technology to meet the modern industrial applications.
Key developments include:
• High-efficiency filtration media capable of capturing very fine particles without restricting flow
• Compact and integrated designs that combine multiple filtration functions
• Extended service life solutions that reduce replacement frequency and maintenance downtime
• Application-specific engineering tailored to different stages of cement operations
Modern multi-layer filtration media can improve dust-holding capacity by up to two to three times compared to conventional systems, while maintaining consistent performance. These advancements have transformed filtration from a basic maintenance component into a critical performance system.

Adapting to diverse operating conditions
The cement industry of India operates across diverse geographies. Spanning across regions with arid regions with higher dust levels, to the coastal areas with higher humidity, challenges of each region pose different threats to the engines. Modern filtration systems are thus tailored to address these unique challenges of each region.
Indian operating environments often range from 0°C to over 50°C, with some of the highest dust loads globally in mining zones.
Additionally, filtration technology can also be customised to variations which then align the system design with factors like dust load, temperature, and equipment usage patterns. Equipment utilisation levels in India are typically higher than global averages, making robust filtration even more critical. This approach ensures optimal performance and durability across different operational contexts.

Impact on total cost of ownership
Filtration has a direct and measurable impact on the total cost of ownership of equipment.
Effective filtration leads to:
• Lower wear and tear on critical components
• Reduced maintenance and repair costs
• Improved fuel efficiency
• Extended equipment life
• Higher operational uptime
Effective filtration can extend engine life by 20 to 30 per cent and reduce overall maintenance costs by 15 to 25 per cent over the equipment lifecycle. These benefits collectively enhance productivity and reduce lifecycle costs. Conversely, inadequate filtration can result in frequent breakdowns, increased maintenance expenditure, and reduced asset utilisation.

Building a more efficient cement ecosystem
With the rising demand across various sectors, the cement industry is expected to expand at an unprecedented rate. This growth is forcing the production to move towards a more efficient and resilient system of operations. This requires attention not only to production technologies but also to the supporting systems that enable consistent performance. Filtration must be viewed as a strategic investment rather than a routine consumable. By ensuring the cleanliness of air and fluids across systems, it supports reliability, efficiency, and sustainability.

The road ahead
The future of cement logistics will be shaped by increasing mechanisation, digital monitoring, and stricter environmental standards. The industry is also witnessing a shift towards predictive maintenance and condition monitoring, where filtration performance is increasingly integrated with real-time equipment diagnostics.
In this evolving landscape, the role of filtration will become even more critical. As equipment becomes more advanced and operating conditions more demanding, the need for precise contamination control will continue to grow. From quarry to construction site, filtration technology underpins the performance of every critical system. It enables equipment to operate efficiently, reduces operational risks, and supports the industry’s broader goals of growth and sustainability. In many ways, it is the unseen force that keeps the cement ecosystem moving, quietly ensuring that every link in the value chain performs as expected.

About the author
Niranjan Kirloskar, Managing Director, Fleetguard Filters, is focused on driving innovation, operational excellence, and long-term business growth through strategic and people-centric leadership. With a strong foundation in ethics and forward-thinking decision-making, he champions a culture of collaboration, accountability, and technological advancement.

Concrete

Cement’s Next Fuel Shift

Published

5 days ago

May 15, 2026

admin

Jignesh Kindaria highlights how Thermal Substitution Rate (TSR) is emerging as a critical lever for cost savings, decarbonisation and competitive advantage in the cement industry.

India is simultaneously grappling with two crises: a mounting waste emergency and an urgent need to decarbonise its most carbon-intensive industries. The cement sector, the second-largest in the world and the backbone of the nation’s infrastructure ambitions, sits at the centre of both. It consumes enormous quantities of fossil fuel, and it has the technical capacity to consume something else entirely: the waste our cities cannot get rid of.
According to CPCB and NITI Aayog projections, India generates approximately 62.4 million tonnes of municipal solid waste annually, with that figure expected to reach 165 million tonnes by 2030. Much of this waste is energy-rich and non-recyclable. At the same time, cement kilns operate at material temperatures of approximately 1,450 degrees Celsius, with gas temperatures reaching 2,000 degrees. This high-temperature environment is ideal for co-processing, ensuring the complete thermal destruction of organic compounds without generating toxic residues. The physics are in our favour. The infrastructure is not.
Pre-processing is not the support act for co-processing. It is the main event. Get the particle size wrong, get the moisture wrong, get the calorific value wrong and your kiln thermal stability will suffer the consequences.

The regulatory push is real
The Solid Waste Management (SWM) Rules 2026 mandate that cement plants progressively replace solid fossil fuels with Refuse-Derived Fuel (RDF), starting at a 5 per cent baseline and scaling to 15 per cent within six years. NITI Aayog’s 2026 Roadmap for Cement Sector Decarbonisation targets 20 to 25 per cent Thermal Substitution Rate (TSR) by 2030. Beyond compliance, every tonne of coal replaced by RDF generates measurable carbon reductions which is monetisable under India’s emerging Carbon Credit Trading Scheme (CCTS). TSR is no longer a sustainability metric. It is a financial lever.
Yet our own field assessments across multiple Indian cement plants reveal a sobering reality: the primary barrier to scaling AFR adoption is not waste availability. It is the fragmented and under-engineered pre-processing ecosystem that sits between the waste and the kiln.

Why Indian waste is a different engineering problem
Indian municipal solid waste is not the material that imported shredding equipment was designed for. Our waste streams frequently exceed 40 per cent to 50 per cent moisture content, particularly during monsoon cycles, saturated with abrasive inerts including sand, glass, and stone. Plants relying on imported OEM equipment face months of downtime awaiting proprietary spare parts. Machines built for segregated, low-moisture waste fail quickly and disrupt the entire pre-processing operation in Indian conditions.
The two most common failures we observe are what I call the biting teeth problem and the chewing teeth problem. Plants relying solely on a primary shredder reduce bulk waste to large fractions, but the output remains too coarse for stable kiln combustion. Others attempt to use a secondary shredder as a standalone unit without a primary stage to pre-size the feed, leading to catastrophic mechanical failure. When both stages are present but mismatched in throughput capacity, the system becomes a bottleneck. Achieving the 40 to 70 tonnes per hour required for meaningful coal displacement demands a precisely coordinated two-stage process.

Engineering a made-in-India answer
At Fornnax, our response to these challenges is grounded in one principle: Indian waste demands Indian engineering. Our systems are built around feedstock homogeneity, the holy grail of kiln stability. Consistent particle size and predictable calorific value are the foundation of stable kiln combustion. Without them, no TSR target is achievable at scale.
Our SR-MAX2500 Dual Shaft Primary Shredder (Hydraulic Drive) processes raw, baled, or loosely mixed MSW, C&I waste, bulky waste, and plastics, reducing them to approximately 150 mm fractions at throughputs of up to 40 tonnes per hour. The R-MAX 3300 Single Shaft Secondary Shredder (Hydraulic Drive), introduced in 2025, takes that primary output and produces RDF fractions in the 30 to 80 mm range at up to 30 tonnes per hour, specifically optimised for consistent kiln feeding. We have also introduced electric drive configurations under the SR-100 HD series, with capacities between 5 and 40 tonnes per hour, already operational at a leading Indian waste-processing facility.
Looking ahead, Fornnax is expanding its portfolio with the upcoming SR-MAX3600 Hydraulic Drive primary shredder at up to 70 tonnes per hour and the R-MAX2100 Hydraulic drive secondary shredder at up to 20 tonnes per hour, designed specifically for the large-scale throughput that higher TSR ambitions require.

The investment case is now
The 2070 Net-Zero target is not a distant goal for India’s cement sector. It starts today, with decisions being made on the plant floor.
The SWM Rules 2026 are already in effect, requiring cement plants to replace coal with RDF. Carbon credit markets are opening up, and coal prices are not going to get cheaper. Every tonne of coal a cement plant replaces with waste-derived fuel saves money on one side and generates carbon credit revenue on the other. Pre-processing infrastructure is no longer just a compliance requirement. It is a business investment with a measurable return.
The good news is that nothing is missing. The technology works. The waste is available in every Indian city. The government has provided the policy direction. The only thing standing between where the industry is today and where it needs to be is the commitment to build the right infrastructure.
The cement companies that move now will not just meet the regulations. They will be ahead of every competitor that waits.

About the author
Jignesh Kundaria is the Director and CEO of Fornnax Technology. Over an experience spanning more than two decades in the recycling industry, he has established himself as one of India’s foremost voices on waste-to-fuel technology and alternative fuel infrastructure.