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Concrete

Fly ash: The New Cement

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If the merits of fly ash are so well established and if it is available at about one fifth the cost of cement, then why are we consuming only about 38 per cent of the fly ash available in the country? ICR interacts with leaders in construction world to understand the benefits and finer points of using fly ash.

As much as 60 per cent of power in India is generated by burning coal. And looking at the vast reserves of coal available, it will continue to be the primary source of power in the country.

But coal-fired power stations make more than just power. In a way they are also making cement called "Fly Ash." You could also call a power station, a cement factory, having steam as its by-product. Unfortunately, rather than being seen as a resource, fly ash has been considered as industrial waste. Till about a decade ago it was being disposed of in ash ponds. The cement consumer industry still sees fly ash as a pollutant, which it is using for blending in cement/concrete and contributing to the betterment of environment while improving the strength of the construction material.

Fly ash is neither free nor is it cheap. At least not the good quality fly ash. Good quality fly ash is produced by passing the fly ash generated at the power stations through electrostatic precipitators. Here fly ash is screened and classified. Only 15-20 per cent of the fly ash screened is retained back and is considered as a superior quality material. The process, and the low yield of high quality fly ash, adds to cost.

Merits of fly ash are well known in the industry and it is being used as a partial cement replacement (on average 30 per cent) in structural concrete. Thus, today fly ash has become the fourth ingredient in concrete, next to cement, aggregate and water. Despite this realisation though, fly ash is still under utilised in the construction sector. One of the prime reasons is the lack of properly detailed standards pertaining to use of fly ash. Though there are various Indian Standards published by the Bureau of Indian Standards (BIS) that specify the use of fly ash as part replacement of cement in concrete, in actual practice the guidelines are still in nascent stage. During mid seventies and early eighties, the quality of fly ash was not that good due to high content of unburnt carbon and negligible awareness. The eighties ushered in the era of super thermal power stations. Equipped with high-efficiency boilers and coal mills, the quality of fly ash produced in these power stations was good. These improvements, however, were not communicated adequately. The doubts regarding using fly ash in cement probably have lingered too long, and even today it is not odd to find engineers hesitant to use fly ash in their mix. Besides, fly ash being a high volume low value product, transportation adds severe restrictions to its reach and use. It is not economically viable to use fly ash beyond a radius of 100 km from the point of production.

Considering the tremendous growth required in the power sector for the development of Indian economy, it is expected that ash generation will reach 225 million tonnes by 2017. The quality of fly ash produced in India is superior due to low sulphur and unburnt carbon content. Growth in infrastructure will create huge cement demand. And if encouraged properly, fly ash can provide for at least 30 per cent of this demand. Using fly ash is economical too. Shailesh Puranik, Managing Director, Puranik Builders, puts it in numbers stating that, "Fly ash reduces 20 per cent of cement cost in a project. Today fly ash costs about Rs 50 to Rs 60 per bag, while cement on an average is sold at Rs 250-300 per bag. Fly ash reduces the construction cost by about Rs 10-15 per sq.ft. On top of that projects based on fly ash utilisation receive green credits that could be traded." That leaves us with no reason not to use fly ash when available.

Today utilisation of fly ash is limited mainly due to lack of required information to actual users like State/Central Governments, construction departments, builders, developers, etc. There is a need to communicate these benefits to todays nation builders. In a series of interviews that follow, we look at the benefits of using fly ash and the parameters to examine while picking up the right product.

Benefits of using fly ash

  • Reduced permeability of the structure to water and aggressive chemicals
  • Reduction in the amount of water needed for mixing
  • Consumes fly ash, which is other wise dumped in fly ash ponds leading to pollution
  • Serves as a substitute to cement which is about five times costlier than fly ash.

Concrete

Lokesh Lays Stone For Rs 31 Billion Cement Unit In Kadapa

Line-2 expansion to make Kadapa a major cement hub

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Andhra Pradesh Education and IT Minister Nara Lokesh on Wednesday laid the foundation stone for the Line-2 expansion of Dalmia Bharat Cement at Chinnakomerla village in Mylavaram Mandal in Kadapa district. The project carries an investment of Rs 31 billion (bn) and is slated for completion by the third quarter of the financial year 2028. The expansion is intended to boost industrial growth and employment generation across the Rayalaseema region.

Once commissioned, the Kadapa facility will become Dalmia Bharat’s largest integrated cement manufacturing ecosystem in southern India, creating over 1,000 direct and indirect jobs and opening new business avenues for regional micro, small and medium enterprises and transport operators. Lokesh said the expansion signalled growing corporate confidence in the state and reflected the practical ease of doing business that secured repeat investment.

He placed the project within the government’s wider economic targets and recalled the Yuvagalam padayatra commitment to generate two million (mn) jobs within five years, noting that the state would cultivate talent while industry created opportunities. Lokesh highlighted Andhra Pradesh’s competitive pursuit of major manufacturing accounts, mentioning past successes and a personal initiative to engage global investors when persuading them to anchor expansion in the state.

The plant will leverage Kadapa’s abundant limestone reserves to scale production and sustainability. Clinker capacity is planned to rise from two point five million tonnes per annum (mn tpa) to six point one mn tpa, while overall cement output will increase from three point six mn tpa to nine point six mn tpa. The unit is designed to operate on over eighty per cent renewable energy and deploy waste heat recovery, zero liquid discharge, water recycling and advanced AI systems to optimise efficiency. Industries Minister TG Bharat, BC Welfare Minister S. Savitha and Jammalamadugu MLA C. Adinarayana Reddy attended the ceremony.

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Concrete

Cement Prices to Stay Flat in Q2 FY27 as Costs Squeeze Margins

HDFC Securities warns monsoon slowdown and higher fuel costs

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HDFC Securities has said the cement industry is unlikely to register a sequential increase in prices in Q2 FY27 as monsoon-related demand moderation coincides with rising fuel and packaging costs that will squeeze margins. The brokerage observed that price gains remained modest, with increases of two to three per cent quarter-on-quarter across regions, and noted subdued offtake in May with improvement in June as a delayed monsoon supported construction activity. The brokerage added that modest pricing gains so far have been insufficient to offset the input cost escalation.

The report stated that input cost pressures intensified in Q1 FY27 owing to the West Asia conflict, which pushed up coal and pet coke prices and is expected to keep fuel costs elevated, with a likely peak in Q2 FY27. It assessed that total variable costs, including packing, could rise by around Rs 150 per t quarter-on-quarter and that lower offtake and seasonal operating deleverage could further raise operating expenditure by about Rs 50 per t quarter-on-quarter.

Overall, cement prices were estimated to remain flat in Q2 FY27 as monsoon-led demand weakness offsets limited upside in realisation, and rising fuel costs alongside seasonal deleverage were expected to compress industry margins by over Rs 100 per t quarter-on-quarter to below Rs 880 per t. The brokerage indicated that the combined impact of energy inflation and higher packing expenditure would be the principal drivers of margin contraction in the near term. HDFC Securities projected a recovery in margins in H2 FY27 should the West Asia turmoil subside and energy and packing costs cool off.

The brokerage expressed optimism on long-term demand fundamentals and said improving realisation together with an anticipated cost cool-off should support a margin rebound from H2 FY27 onward, underpinning favourable industry prospects over the medium term. Its outlook rests on monsoon normalisation and a decline in imported fuel prices in the second half of the fiscal year.

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Concrete

Dalmia Bharat Begins Rs 31 Bn Green Cement Unit in Kadapa

New Andhra Pradesh plant to add 9.6 MTPA cement capacity by FY28

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Dalmia Bharat Limited recently laid the foundation stone for its second manufacturing unit at Kadapa in Andhra Pradesh. The company will invest Rs 31 billion in developing the next-generation integrated cement manufacturing facility.
The foundation-laying ceremony was attended by Nara Lokesh, Andhra Pradesh Minister for Information Technology, Electronics and Communications, Real-Time Governance and Human Resources Development, along with Puneet Dalmia, Managing Director and Chief Executive Officer, Dalmia Bharat, senior government officials and company representatives.
Scheduled to be commissioned by the third quarter of FY28, the Kadapa unit will become Dalmia Bharat’s largest integrated manufacturing facility in southern India. It will have a clinker production capacity of 6.1 million tonnes per annum and a cement manufacturing capacity of 9.6 million tonnes per annum.
The facility is designed to produce what the company describes as one of the world’s greenest cements. It is also expected to generate approximately 1,000 direct and indirect employment opportunities while supporting local MSMEs, transporters, contractors and service providers.
Lokesh said the investment reflected Dalmia Bharat’s confidence in Andhra Pradesh and aligned with the state’s objective of promoting sustainable industrialisation, job creation and technology-led economic growth.
Puneet Dalmia said the project represented the company’s long-term vision of developing low-carbon cement manufacturing assets. He added that the facility would establish new benchmarks in operational efficiency and sustainability while supporting India’s infrastructure and environmental goals.
Dalmia Bharat will also expand its regional community development programmes in education, healthcare, skill development and welfare through its DIKSHa and Gram Parivartan initiatives.
The company currently has an installed cement manufacturing capacity of 54.7 million tonnes across 19 manufacturing units in 12 states. It is also the first cement company globally to commit to the RE100, EP100 and EV100 initiatives.

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