Economy & Market
Consolidation in cement industry: Gobbling Up!
Published
14 years agoon
By
admin
The cement industry has been going through consolidation phase with large Indian cement players preying on smaller ones and foreign cement majors acquiring controlling stake in Indian majors. Prakash Patil looks at the M&A scenario and what it holds for the future of cement industry in India.It’s mergers and acquisitions season in the Indian cement industry and the latest big ticket deal is the acquisition of 51 per cent controlling stake by Irish cement major CRH in the two 2.4 MTPA plants of the Jaypee Group in Gujarat. A buoyant trend in prices could reportedly fetch the Jaypee Group at least $160 per tonne as replacement value, as it puts on the block its hived-off plants in western (2 units of 2.4 MT each) and southern India (1 unit of 5 MTPA). The deal for the two 2.4 MTPA plants is reportedly valued at Rs 4,200 crore. However, as Jaypee Group has its third plant with a capacity of 5 MTPA in Andhra Pradesh and the three plants would be valued at about Rs 9,000 crore. For CRH, this will be the second acquisition in India. The company had forayed into India in 2008 with the acquisition of 50 per cent stake in Hyderabad-based cement producer My Home Industries, which had an installed capacity of 4.2 MTPA.The latest CRH-Jaypee Group deal is an indication of the churning the Indian cement industry is going through over the last decade or so. The big fishes are on the prowl to gobble up smaller fries in the business and considering that there are 139 large cement plants and 365 mini cement plants in the country currently with 40 major and mid-size players having pan-India presence, the opportunities for acquisitions for the large cement players are enticing. And, it’s not just the small fries that are on the radar of the big players, even some of the biggest cement companies have been taken over in the past and many more are being wooed. After all, the cement business of Jaypee Group being acquired by CRH makes Jaypee Group the third largest cement player in India after UltraTech and Ambuja Cements.The big ticket dealsApart from the latest big ticket deal between the CRH-Jaypee Group, there have been quite a few large takeovers since 1999. When Gujarat Ambuja Cements (GACL) picked up 7.2 per cent stake in India’s then largest cement manufacturer ACC at a price of Rs 370 per share when the market price hovered around Rs 240 per share from the Tatas in December 1999, it created sensation. Later in 2000, GACL acquired the balance 7.2 per cent from the Tatas to become the largest shareholder in ACC. But the twist to this tale came when Swiss cement major Holcim picked up 14.8 per cent stake in Gujarat Ambuja Cements (later to merge with Ambuja Cements Eastern to become Ambuja Cements) for Rs 2,100 crore through the creeping acquisition route and later picked up another 20 per cent stake for Rs 2,400 crore. Subsequently, Holcim hiked its stake in Ambuja Cements to over 50 per cent, thereby acquiring complete management control over Ambuja Cements. The Holcim transaction and valuation provides an excellent indication of the extent to which investors and strategic players are ready to buy the India growth story. In 2005, Holcim acquired stake in ACC at an enterprise value (EV) of $111 per tonne and the next year Holcim acquired stake in Ambuja Cement at an EV of $193 per tonne. In 2007, Holcim again increased its stake in Ambuja Cements at an EV of $301 per tonne!With this acquisition, Holcim also acquired management control over ACC as Ambuja Cements had hiked its stake in ACC to more than 50 per cent. So, Holcim upped the ante for other global cement companies by acquiring majority stake and management control over two of India’s largest cement companies.Lafarge, the French cement major, got late into action in the M&A space and decided to take the acquisition route to fast track it cement business in India. The company declared in 2010 that it was open to consolidation in India and, according to Bruno Lafont, Chairman & CEO, Lafarge, the timeframe for acquisitions was the next five years. "We see consolidation happening (in the cement industry) in India in the mid term period. We are confident of our ability to deliver our investments in India and are open to seizing new opportunities, be it consolidation or greenfield projects," said Lafont while inaugurating the clinker line at Lafarge India’s cement plant in January 2010 at Sonadih in Chhattisgarh. The company entered the Indian market in 1999 with the acquisition of Tata Steel’s cement plant. This was followed by the purchase of the Raymond Cement facility in 2001 and the acquisition of L&T’s concrete business in 2008.The takeover of L&T’s cement business by Grasim Industries in June 2003 also created buzz in the market since this takeover catapulted Grasim Industries (later its cement division being merged into UltraTech Cement) from the third position to the numero uno position in India. After the takeover, UltraTech’s installed capacity went up from 13 MTPA to 31 MTPA. Grasim Industries had to shell out Rs 2,200 crore over a period of three years for a majority stake in Ultratech Cement. Today, UltraTech maintains its leadership position with an installed capacity of 52 MTPA, with Holcim at the no. 2 position with combined capacity of 45 MTPA through ACC and Ambuja Cement.These are just a few samples of big ticket deals that have happened in the cement sector in India since late nineties. There have been many more big and small takeovers and mergers by domestic players since mid-1990s and by foreign players since late-1990s (see box). According to the data published by the Department of Industrial Policy and Promotion, the cement sector attracted foreign direct investments (FDI) worth US$ 2.62 bn between April 2000 to May 2012, which is an ample indication of the fact that the cement sector has been attracting foreign investors in droves.The key M&A triggersClearly, the cement biggies have gone on a shopping spree since during the last decade or so. And not without reason. There are compelling reasons why domestic and foreign cement majors appear to be so bullish on India. "Major reasons for consolidation were excess capacity and entry of foreign players who wanted a pie of untapped Indian market…Apart from above two reasons, another factor that is leading to consolidation is the rising cost of greenfield capacity which also tends to have longer gestation period. Existing players are eyeing companies who are unable to meet rising cost of raw materials due to increasing imported coal prices. On the other hand, the top players who want to spread their reach are tapping such companies as it saves on time factor of greenfield capacities," says Alok Sanghi, Director, Sanghi Industries.
Commenting on the reasons for consolidation, Jailesh Dalal, Director, JAYCEE Buildcon (India), says "The Indian cement industry is fragmented and large domestic and international players would try to consolidate their position going forward for geographical diversification, concentrated focus on operational efficiency, challenges in acquiring land/limestone resources, exit of smaller players and divesture of cement businesses by diversified groups."Now, let’s look at each of these reasons why Indian cement industry is passing through the consolidation phase.Overcapacity
During 2007-12, cement producers added capacity to the tune of 150 MTPA, thereby almost doubling the total installed capacity to 303 MTPA in FY2012-13. According to a report by research firm RNCOS, "It is anticipated that the cement industry players will continue to increase their annual cement output in coming years and the country’s cement production will grow at a compound annual growth rate (CAGR) of around 12 per cent during 2011-12 to 2013-14." According to projections, by 2017 the total capacity nationally would add up to 470 MTPA.The increase in capacities by many of the Indian companies was in anticipation of demand from the infrastructure sector which failed to materialise. In a situation where demand fails to keep pace with supply, the capacity utilization rate is bound to decelerate. The capacity utilisation rate for the cement industry in India has dropped from 93 per cent in FY2006-07 to 75 per cent in FY2011-12. The fall-out of such overcapacity situation is that the cement prices are likely to come under downward pressure which would make survival difficult for smaller cement companies with capacities less than 1 MTPA and therefore vulnerable for takeover. However, the fact that cement majors have built up capacities in advance is an indication that these companies expect demand for cement to remain firm due to construction activity, which is expected to gather momentum due to government’s policy to boost investments in infrastructure.Infrastructure PotentialIndia’s high housing and infrastructure deficits points to the huge potential for development of housing and infrastructure. The cement sector will benefit hugely as and when the momentum in housing and infra development picks up. This potential for development has been attracting major players in hordes from across the world. The demand for cement, being a derived demand, primarily depends on the industrial construction, real estate business, construction activities and investments in the infrastructure sector.Currently, the housing sector consumes 55-60 per cent of cement produced in India and this is expected to change in the next few years when the emphasis will shift on infrastructure development such as roads, bridges, airports, and railways, which will consume a significant percentage of cement produced in the country. The consumption of cement in agriculture is negligible today; but with a greater thrust on agriculture and the suggested ‘second green revolution’, this sector too will extensively use cement to build warehouses and other logistics.But instead of opting to set up cement plants themselves, it makes sense for the foreign players to take the acquisition route not just to make foray into India but also ramp up capacity quickly. The high potential for growth in demand for cement is amply evident from the fact that the per capita cement consumption in India was 230 kg in 2010, which is almost half of the global average of around 450 kg and way below the Chinese average per capita consumption of 1220 kg. Hence, domestic and foreign cement companies remain bullish on the prospects of cement industry in India.High capital cost & long gestation periodA cement plant is typically a capital intensive business and to establish a greenfield project takes about three years. The cost of setting up a greenfield capacity has reportedly shot up from $120 per tonne to $160 per tonne in just two years. Besides, the cement business has a long gestation period and, depending on the market situation, the break-even point may extend to three-four years at an operating level of 70-75 per cent. The high capital cost and long gestation period makes establishing a new cement plant an unattractive business proposition. Hence, established and large players may prefer to poach on the existing and established players to beat the competition and increase their market share. "The cement sector is slowly heading for a major consolidation as greenfield projects are becoming difficult to set up due to increased hassles in areas like mineral concession, land acquisition and related environmental and operational issues. This may lead the cement industry in India to be consolidated in the hands of a few major giant cement companies and only a few cement companies with single or smaller capacity plants shall continue to operate purely due to regional and local factors," says P K Ghosh, Chairman, Ercom Engineers.Entry barriers & cumbersome proceduresDifficulty in accessing limestone reserves, which is a key input in cement production, acts as a significant entry barrier for new entrants. To overcome this difficulty, takeover of companies with access to limestone reserves is the easiest route to crossing the entry barrier. No wonder, none of the foreign cement majors tried to set up a greenfield cement plant as prospecting for limestone reserves is a time-consuming process. Even if the limestone reserves are established, getting the mining rights, railway siding, etc. can reportedly take upto 7-8 years, with only 25 per cent chance of striking enough limestone reserves to last for the entire economic life-span of the plant. Hence, acquisition is bound to pick up further momentum as more cement majors enter the Indian market.The benefits of consolidationThe consolidation in the cement industry would prove to be beneficial both for the acquiring companies as well as for the cement industry. Some of the benefits that would ensue from consolidation are as follows:
Economies of scaleA large cement company enjoys the benefits of economies of scale. Mergers and acquisitions bring about consolidation of capacities which adds up the benefits of scale. The economies of scale enable the company to reduce the production costs so that it can reduce the cement price to maintain an edge over the competitors.Extended reach and increased revenuesWhen a company takes over the production and distribution facilities of another company, it immediately extends its geographical reach and increases its market share on account of expansion of the market for its product. The market expansion helps in ramping up the revenues of the company within a short span of time. The enhanced geographical reach may also result in substantial reduction in transportation costs which are quite high as cement is a bulk commodity.Technological upgradationThe new energy-efficient but capital-intensive "dry" production technology offers to the companies efficiencies that provide vital edge over the companies not deploying such technologies. Small manufacturers may not possess the requisite financial resources or production volumes to be able to afford the most efficient technology, which puts them at a competitive cost disadvantage. The entry of foreign players has led to technological upgradation and innovation in Indian cement industry. "Despite the fact that the technology used by Indian cement companies is among the best in the world, more innovation is required to ensure that cement plans are not only environment-friendly, but also low-cost in nature. M&As in last decade has helped Indian firms propel to global standards. Foreign firms who took over Indian firms have made most of the investments in India in the last decade for upgrading technology and raising capacity. With higher spend on technology, existing players are likely to focus more on ready mix concrete, bulk sales and blended cement to ensure improvement in quality as well as environment consciousness with sustainable construction," says Sanghi.The Road AheadGoing forward, the acquisitions space is going to get hotter, with lot of small and mid-sized cement companies up for grabs. Once the economies of scale kick in on account of consolidation, the cement prices are likely to remain competitive yet remunerative. This would benefit both the cement companies as well as cement consumers. Summarising the benefits of consolidation, Dalal says, "M&As would largely have a positive impact in the cement industry in India on account of value creation, economies of scale and cost efficiencies, operational and supply chain efficiencies, higher competitiveness, technology transfer, better research and development and high quality products, financial leveraging and optimization of profitability and increased focus on health, safety and environment. In the future as well, M&As would augur well for the industry as it would bring world-class technology, products and operational efficiencies into India." Sanghi too feels that M&As would be beneficial and says, "M&As in cement industry is likely to bring pricing power, improve profitability and reduce cost of branding for top players. Through M&As, top players would have higher vertical integration and locational advantage with respect to sourcing raw materials and market reach."Of course, there is always the possibility of major companies forming a cartel to keep the cement prices artificially high, but with the Competition Commission of India keeping a vigil over the production figures, capacity utilization and cement prices, the cement companies would be wary of indulging in such malpractices. Sanghi too dismisses fear of cartelization saying, "If there was (cartelisation) as is claimed, cement companies would not have reported losses in any quarter. Also, prices would have been same across the year, if there was cartelization. But every year, cement prices fall during monsoon because there is a slowdown in demand; while prices rise on and around Diwali due to surge in demand from real estate."To sum up, consolidation is good for the cement industry and there are sunny days ahead for the industry in times to come.
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Concrete
Nuvoco Vistas launches Limla cement plant, expands Gujarat footprint
Published
1 week 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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Concrete
Indian Railways Plans Green Fly Ash Transport Network
Published
3 weeks agoon
June 27, 2026By
admin
Specialised rail logistics will move fly ash from power plants to infrastructure industries.
New Delhi
Indian Railways is planning a large-scale green logistics initiative to transport fly ash from thermal power plants to industries where it can be reused in infrastructure and construction activities.
The initiative was discussed during a review meeting chaired by Union Minister for Railways Ashwini Vaishnaw. Union Ministers of State for Railways V Somanna and Ravneet Singh Bittu were also present.
India generates nearly 340 million tonnes of fly ash every year from thermal power plants. The proposed initiative aims to create an efficient rail-based transport system using specialised containers and dedicated logistics arrangements to move fly ash safely from power plants to end-use industries.

Fly ash is widely used in road construction, cement manufacturing, brick production, concrete, blocks and boards. By improving its movement through the railway network, the initiative is expected to support better utilisation of this industrial by-product while reducing environmental concerns linked to storage and disposal.
The move also aligns with India’s circular economy goals by converting waste from thermal power generation into a useful raw material for the construction and infrastructure sectors. Wider availability of fly ash can help reduce material costs in areas such as bricks and cement, supporting more affordable infrastructure and housing development.
Through this initiative, Indian Railways aims to provide a cleaner, safer and more organised transport solution for fly ash, turning an environmental challenge into an infrastructure resource.
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