Economy & Market
“Railways consider private terminals as their competitors”
Published
12 years agoon
By
admin
Yogesh Mehta Joint Vice President – Commercial, Shree Cement
Government policies must be so framed as to encourage bulk cement transport in India. There are many ways to boost logistical efficiencies at plant and government level. Yogesh Mehta shares with ICR what Shree Cement is doing at its plant and how the government can help to do more. Excerpts from the interview…
How much is the contribution of the logistical expenses to the cost of the product? How can one reduce this cost?
Logistics is one of the major cost contributors to cost and has significant influence on the final price of the product. Factors leading to the high cost mainly include transportation and warehousing costs, maintaining distribution networks and the expenses of procuring raw materials. Overall the cost amounts to almost 25 per cent of final cost of product.
There is a need to identify major cost drivers in logistics and to replace traditional forms of cost allocation structures with more appropriate methods. Well organised logistics management can have significant impact on overall return on investment and ultimately bring value to the stakeholder.
To reduce logistical expenditure, the cement industry can adopt the following measures:
- Encourage big cement users for bulk/loose cement transport. This will reduce packing cost and is also eco-friendly. It is beneficial for both – the seller and the buyer
- Establish grinding units, blending or packing units in big market area for direct delivery of materials
- Plan dispatches in a way that reduce rail freight/rail freight on return journeys availed for procurements
- Maximise dispatches directly to the end user so that warehousing/distribution cost can be reduced, and
- Optimise truck size/fleet capacity, timing of vehicle engaged in cement and raw material loading, unloading as well as the transit time, so that operational cost of vehicle is reduced by maximising efficiency of every trip made by the vehicle.
How do you synchronise your production volume with respect to fluctuating market demands?
Looking at the nature of cement commodity, no one can produce excess and store it for long period. Hence all cement industries plan their production according to their sale projections/targets. Being a smart producer of cement, the industry maintains cement stock just sufficient to meet the demand for next to 2-3 days at production centre and similarly a stock of 2-3 days in kept in transit and at godowns. So on an average the company maintains around 5 days stock to absorb fluctuations in a timely manner.
Besides that, most importantly, extra cement grinding capacity can be planned while setting up various production units based on future projected demand/fluctuation.
What are the problems faced by the cement industry in the last mile delivery?
Hurdles in last mile delivery may be classified as encountered with big and small consumers. Both have different types of problems, which need to be resolved in manner that ensures that the deliveries are made in minimum lead time. These challenges are as under:
Big consumer:
- Maintaining supply according to their consumption schedules
- Cement storage constraints at consumption sites
- Labour unavailability and unloading issues at night
- Sudden spurt in demand in short of period making it difficult to arrange vehicles for transport, and
- Lack of rail wagons for small delivery for far-off destination, where road delivery is not feasible.
Small consumer:
- Meeting demands of small quantity with minimum lead time
- Requirement of product at remote locations, and
- Lack of storage space.
The problems mentioned above can be tackled by doing well-planned supply co-ordination with consumer, supported by strong logistic backbone having commitment towards costumer?s satisfaction. Big consumers have their own planning of consumption which is fulfilled from plant directly by adopting any mode, i.e., rail or road. To overcome storage issues, stock on wheels is one of the best options considering unloading of cement vehicles within stipulated time frame with excellent coordination with consumer. However, small users may be served better by the cement dealer networks or from nearest warehouses. Therefore such delivery networks/warehouses need to be situated at strategic locations from where supply can be made effectively.
In SCL, we encourage regular and big consumer to use bulk (loose) cement, which can be stored easily in vertical silos with minimum requirements. Here we faced a hurdle where the bulk cement users were not able to use their existing compressor facility. The pumps were not compatible with all of the individual bulk carrying vehicles. To overcome this, we have installed compressors mounted on mobile vans.
By using loose cement, customers, industry and builders can reduce their dependency on manual intervention to a great extent. The labour involvement in cement bag unloading as well as feeding in silos could be avoided.
To give delivery at long distances, SCL has established cement production units near consumer areas, from where multiple consumer deliveries are clubbed together for last mile delivery with minimum lead time.
Bulk cement small deliveries are also catered through bulk cement loading terminal, where customers can take loose cement delivery in short lead time and in small lots as per their convenience. In this way all customers are served by SCL in the loose cement too. SCL is one of the leaders in implementing eco-friendly initiatives. The company has converted PP bag-using consumers into bulk cement users.
How do you ensure that your fleet is performing at its best?
There is a variety of vehicles that ply cement for us. Some vehicles are dedicated for cement dispatches, which form 80 per cent of the fleet. The rest of the cement dispatch is done through return vehicles, which normally ply in open market. Market trucks are attracted to us due to surety of load availability, i.e., assurance. Dedicated vehicles require load planning with lowest turnaround trip time. So the optimum use of vehicles achieved by maximum quantity loaded to earn more revenue in defined period serves as an incentive to them. In SCL?s case, we have a fixed size of our truck fleet that plies on our dedicated route dispatches. After restricting the number of trucks (by reducing fleet strength by 25 per cent), we observed that the rate of vehicle utilisation has improved. Now maximum quantity is dispatched using minimum number of vehicles. As a result, our benchmarking freights are achieved as well as revenue to truckers has also increased.
To further improve the performance of the fleet, SCL increased laden run km of vehicles by 9 per cent in last fiscal year, i.e., 53 per cent in FY 2013-14 from 44 per cent in FY 2012-13, by providing return load of raw material to dedicated fleets. This ensures increased revenue for every run km.
Also, while ensuring dedicatedly fleet performance, SCL encourages market fleet to approach SCL?s independent/impartial reverse freight bidding system, in which they can decide their own revenue, as result of their own choice routes available for transit.
Do you think that it is a good idea to outsource logistical functions?
Looking at the huge involvement of logistics cost in total cost of product, at first instant the obvious answer is NO to outsource logistical functions in SCL. In logistic function huge dedication is required for customer satisfaction which is possible with personal involvement only, with an object of cost reduction.
By outsourcing, it is not necessary that we get financial benefits but on the contrary, purity of work and quality of service both may disturb or get affected and the result may not up to the mark. Scarcity of expert and experienced employees will always be there since none of the outsourced party will give preference to priority work in a dynamic company which is objective/essence of logistics. Secondly the pipeline of experienced manpower, in a growing organisation which has need of expert people, will become dry because outsource people do not necessarily have cultural acquaintances.
How do you assess the potential of coastal shipping and IWT? What are the major hurdles that dent the growth potential of IWT?
Coastal shipping can be a very good option for reduction of cost for plants located close to water bodies. However, there is an unmet need of small jetties for delivery at unloading point as well as connecting with road to consumption centres across coast. In Bihar, industries are located in Southern region, but the main consumer market of Bihar lies in north. As of now no infrastructure is available to let heavy commercial vehicles cross Ganges River, except rail, which is already insufficient to meet the growing demand.
IWT has very good potential in India. IWT can be used where we have limitations in road/rail transportation, but are blessed with plenty of rivers and other water bodies. SCL is one of the first cement companies to associate with Inland Waterways Authority of India (IWAI) to move cement trucks via waterways by Roll on-Roll off of trucks from vessels. IWAI provides facility for cement laden trucks to disembark vessels at Patna (South Bihar) and then roll-off at Chhapra road (North Bihar) accounting to a lead distance reduction by 60 km. This not only conserves natural resources like fuel but also prevents congestion on overburdened road/rail infrastructure.
To make IWT a success, the government is expected to build the infrastructure of small loading and unloading jetties through IWAI as-well-as dredge the river channels regularly. The government should provide freight subsidy for using IWT to encourage its use at large scale.
Why has cement transport via BCCW not picked up that well in the country?
In India, the use of bulk (loose) cement is not as popular as it is in the international market. Compared to packed cement, use of bulk cement is just 8-9 per cent since no infrastructure or encouragement is provided for bulk cement transport and use. BCCW transport to be economically viable requires minimum order size of 3000+ MT of cement in one way single trip and the wagon must bring back fly ash from the nearest source from the cement dispatch point. Consumers are not always located near to the railway line. Cement companies have to establish packing units at rail site to take two way advantage. Since two way movement of cement and fly ash cannot be done on rail line, use of BCCW has not yet picked up in India.
There is lack of co-ordination amongst government enterprises both at the Centre and at State level. The Railways department should develop industrial parks along the rail terminals jointly with the state governments. The suggestions for rail terminal location should be invited from industrial organisations. As government initiative, a high level coordination committee should be formed, consisting of experts from industry, railway, and the Centre and State governments with an objective to promote return logistic in railway.
This initiative will develop many industries at a small cost of coordination. Cement industry alone cannot bear the cost of huge fly ash evacuation system at power plant. It should be a part of the government policy for power project?s in-built approvals that they should compulsorily develop fly ash filling system at their railway siding for BCCW type wagons.
The cement industry can develop infrastructure at their plants, but they cannot build infrastructure at fly ash sourcing point. Huge costs are involved at factory level for creation of storage silos for cement/fly ash, with compressor and transportation system from rail siding to their main plant.
What are the hindrances in setting-up private rail terminals?
Basic hindrances in setting-up private terminals are as under:
- Discouraging policies of railways towards private terminals. It is as if railway considers private terminals as their competitors, instead as supporters who will take on the load from overburdened rail system.
- Long and difficult approval process prevalent at various railway departments where approvals are required separately from commercial, technical, civil, rail transporter department, etc.
- Difficulties inland acquisition and high lease licensing for railways land for siding takeoffs.
- Clearances from various government bodies, i.e., road/highways authorities for ROB and RUB, State Electricity Boards for relocation of cable tower, etc. Take too much time.
- No incentive is offered by railway for cost recovery of infrastructure created by private terminals. Earlier Rs 40/- PMT was committed by railway as terminals charges but they have been withdrawn unexpectedly.
The Liberalised Wagon Investment Scheme (LWIS) seems to be skewed in favour of Railways. What is your take on this and what needs to be done?
LWIS policy does not correlate with huge investment. A wagon costs around Rs 60 lakh, whereas railway policy gives rebate on railway freight instead of ensuring return on investment (ROI) for a wagon. Only if the scheme is modified by way of freight rebate to investment based return will the LWIS be successful. Even if railway plans to give return by way of freight rebate then they have to ensure free movement of wagons on railway infrastructure, without any restriction. The freight rebate should match ROI at 15 per cent. This will help LWIS serve its true purpose.
Cement being the 3rd largest revenue earner for Indian railways, should there be preferential treatment given to the industry especially when restrictions are necessary to be imposed?
Cement is put on ?D? category for wagon allotment preference by railways. Hence, cement has low priority in comparison to ?B? category food grains and fertilisers. The cement industry has to suffer heavily on account of wagon shortages, being non priority in wagon allotment. Choking of rail infrastructure at loading and unloading points with large storage areas occupied by ?B? category seasonal items, puts restrictions on cement industry. Cement should be considered in par with other commodities.
Coastal shipping can be a good option for plants located close to water bodies. However, there is an unmet need of small jetties for delivery at unloading point as well as connected road network.
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Economy & Market
Fornnax Names Lukas Baur as Authorised Service Partner to Bolster EU Operations
Published
2 days agoon
July 23, 2026By
admin
Strapline: Fornnax Technology has appointed NOBA Maschinenservice’s Lukas Baur as its authorised service partner for the European Union, strengthening its commitment to delivering fast, reliable, and localised after-sales support across the region.
Fornnax Technology, a leading manufacturer of industrial shredding solutions, has announced the appointment of Mr. Lukas Baur of NOBA Maschinenservice as its authorised service partner for the European Union. The partnership, formalised under the authorisation of Fornnax CEO Mr. Jignesh Kundaria, reinforces the company’s commitment to providing dependable, localised service support to its expanding customer base across Europe.
Strengthening Service Through Proven Expertise
With over two decades of experience in servicing, maintaining, and overhauling industrial shredders, Mr. Baur brings extensive technical expertise to the partnership. His capabilities span welding, hardfacing, shaft and knife rebuilding, complex assembly, hydraulics, and complete electrical engineering services, delivered in collaboration with a trusted partner company based in Halle/Saale.
Operating from Worbis, Germany, Mr. Baur is strategically positioned to provide emergency support across the European Union within 24 hours, covering an operational radius of approximately 1,000 kilometres.
Supporting this capability is a well-equipped service infrastructure comprising 12 Mercedes Sprinter service vans, a team of 24 skilled technicians, specialised bearing-change tools, a fully equipped hydraulic workshop, and a 1,000-square-metre facility with a five-ton crane track. Together, these resources position his team to manage the complete spectrum of Fornnax’s European service requirements efficiently and reliably.
Partnership Driven by Industry Insight
Having spent years servicing Eldan, Lindner, and Vecoplan shredders across the European recycling industry, Mr. Baur’s decision to collaborate with Fornnax is rooted in his understanding of market needs and customer expectations. His experience has provided valuable insight into what recycling plant operators require—not only from their machinery but also from the service teams supporting them.
According to Mr. Baur, Fornnax’s reputation for robust machine construction, superior wear protection, and maintenance-friendly design made the partnership a natural fit.
The collaboration comes at a time when Europe’s tyre recycling industry is facing mounting challenges, including rising cost pressures, shrinking margins, delayed investments, and a shortage of skilled labour. Mr. Baur believes these conditions reinforce the need for technically strong service partners capable of delivering rapid, dependable support.
Commenting on the partnership, he said, “Fornnax, with its exceptional price-performance ratio and superior quality, has the potential to become a market leader in Europe. We would like to be their service partner in this journey.”
Comprehensive Support Across the Equipment Lifecycle
As Fornnax’s authorised service partner, Mr. Baur will oversee the complete lifecycle support of the company’s equipment throughout the European Union. His responsibilities will include installation, commissioning, preventive maintenance, emergency repairs, and spare parts support across mechanical, hydraulic, and electrical systems.
Looking ahead, he also plans to develop a centralised spare parts distribution hub for European customers, particularly if Fornnax establishes a warehouse facility in Worbis to facilitate faster deliveries. To further strengthen service coverage, Mr. Baur intends to expand operations by adding two to three additional service teams and vehicles each year, progressively increasing capacity across the continent.
A Shared Commitment to Customer Excellence
Highlighting the strategic importance of the partnership, Mr. Jignesh Kundaria, Director and CEO of Fornnax, said:
“We strongly believe that by continuously improving our service quality and customer satisfaction index, we can build long-term relationships with our customers. Higher customer satisfaction leads to greater trust, which significantly increases repeat orders and ultimately drives sustained growth in our sales revenue.”
This customer-first philosophy underpins Fornnax’s strategy of building a dedicated European service partner network instead of relying solely on remote support. With Mr. Baur joining this network, customers across the European Union will benefit from faster response times, expert technical assistance, and dedicated on-ground support from a partner with extensive experience in high-throughput shredding operations.
Mr. Baur’s appointment also reflects Fornnax’s broader ambition to establish itself as the preferred shredding solutions provider for the European recycling industry, marking another important milestone in the company’s international growth strategy.
Concrete
Nuvoco Vistas launches Limla cement plant, expands Gujarat footprint
Published
2 weeks agoon
July 13, 2026By
admin
Nuvoco Vistas opens a 2 MMTPA grinding unit at Limla, entering Gujarat and advancing its target of 35 MMTPA capacity by FY 2028.
Surat (Gujarat)
Nuvoco Vistas Corporation Ltd, a part of Nirma Group and one of India’s leading building materials company, has inaugurated the Limla Cement Plant in Surat (Gujarat), one of Vadraj Cement Limited’s (VCL) principal manufacturing facilities. The commissioning represents a key milestone in Nuvoco’s acquisition and restoration of VCL, while supporting the company’s expansion across the Western Indian cement market.
Vadraj Cement Limited is a subsidiary of Nuvoco Vistas Corporation Limited and has installed cement capacity of 6 MMTPA across its assets. The Limla inauguration therefore represents the first operational step in the acquired platform’s wider revival, while the Kutch facilities provide clinker supply, mineral security and coastal logistics support for the western business.
Nuvoco completed its acquisition of Vadraj Cement Limited, then under the Corporate Insolvency Resolution Process, after paying a consideration of Rs 1,800 crore in June 2025. VCL’s asset portfolio comprises a clinker unit at Kutch and a grinding unit at Limla in Surat. It also includes high-quality captive limestone reserves and a captive jetty at Kutch, supporting more efficient logistics. Following the takeover, Nuvoco began an extensive programme of restoration, refurbishment and expansion at both locations, leading to the commissioning of the Limla plant.
The Limla Cement Plant is expected to support a phased increase in sales volumes across Gujarat. It will also help Nuvoco supply neighbouring markets in Western Maharashtra and release cement capacity from its northern plants, which can consequently be redirected towards markets in North India. The plant will manufacture a full portfolio comprising Ordinary Portland Cement, Portland Slag Cement, Portland Pozzolana Cement and Portland Composite Cement. It will additionally produce the complete Nuvoco Duraguard range, including the premium Nuvoco Duraguard Microfibre product. The acquisition is also expected to generate operational synergies with Nuvoco’s existing plants at Nimbol and Chittorgarh in Rajasthan, improving logistics optimisation and market reach across important regional markets.
The grinding unit at the Limla Cement Plant was completed ahead of schedule, with 2 MMTPA of capacity now inaugurated to expand Nuvoco’s operating scale and customer reach. After Vadraj Cement’s assets become fully operational, plants in North and West India are expected to account for nearly 40 per cent of Nuvoco’s total cement capacity. This will broaden the company’s manufacturing network, strengthen access to high-growth markets and support its plan to increase consolidated cement capacity to 35 MMTPA by FY 2028, reinforcing its longer-term growth strategy.
Commenting on the development, Jayakumar Krishnaswamy, Managing Director, Nuvoco Vistas Corp Ltd, said: “The inauguration of the Limla Grinding Unit in Surat is an important milestone in Nuvoco’s growth journey and demonstrates our commitment to disciplined, value-accretive expansion. Gujarat is strategically significant for Nuvoco, with substantial opportunities arising from infrastructure investment, industrial growth, rapid urbanisation and continuing demand from the housing and construction sectors. The facility strengthens our regional footprint, improves operational flexibility and increases our ability to serve customers across northern and western markets with greater reliability and efficiency.”
He added: “Through the Vadraj acquisition, we have refurbished and restarted a strategically important asset, returning it to operations in record time through strong execution and collaboration between teams. The achievement demonstrates our ability to create value from acquired assets, fulfil our commitments and retain the confidence of stakeholders. It also highlights the strength of our project delivery capabilities and our continued focus on building sustainable, profitable growth over the long term.”
Nuvoco Vistas Corporation Limited is a building materials company whose vision is to build a safer, smarter and more sustainable world. It is among the leading players in East India and has a significant presence across North and West India. Nuvoco began operations in 2014 with a greenfield cement plant at Nimbol, Rajasthan. It later acquired Lafarge India Limited, which had entered India in 1999, followed by Emami Cement Limited in 2020 and Vadraj Cement Limited in April 2025. The company has also announced an expansion in eastern India through a new grinding mill at the Arasmeta Cement Plant, supported by several debottlenecking programmes involving equipment upgrades, process improvements and internal capacity initiatives. These developments place Nuvoco on track to achieve total cement capacity of approximately 35 MMTPA. The company reported total income of Rs 11,362 crore in FY 2025-26, reflecting its continuing growth trajectory.
Nuvoco operates a diversified portfolio across three segments: Cement, Ready-Mix Concrete and Modern Building Materials. Its cement portfolio includes Concreto, Duraguard, Double Bull, PSC, Nirmax and Infracem, covering Ordinary Portland Cement, Portland Slag Cement, Portland Pozzolana Cement and Portland Composite Cement. Its pan-India RMX business provides value-added products under Concreto for performance concrete, Artiste for decorative concrete, InstaMix for ready-to-use bagged concrete, X-Con covering M20 to M60 grades, and Ecodure for specialised green concrete. Nuvoco has supplied materials to projects including the Mumbai-Ahmedabad Bullet Train, Birsa Munda Hockey Stadium in Rourkela, Aquatic Gallery at Science City in Ahmedabad, and metro railway projects in Delhi, Jaipur, Noida and Mumbai.
Concrete
Green Construction Through Cement Innovation
Published
3 weeks agoon
July 2, 2026By
admin
Indian Cement Review (ICR) and Fuller Technologies brought industry, policy and technology leaders together to discuss how cement innovation can drive green construction at scale, writes Rakesh Rao.
India is building at a pace few countries can match. Highways, airports, housing, logistics parks, industrial corridors and urban infrastructure are reshaping the country’s economic geography. But beneath this growth story lies a difficult question: can India continue to build at scale without locking itself into a high-carbon future?
That question formed the core of an online panel discussion titled “Driving Green Construction Through Cement Innovation”, organised by Indian Cement Review (ICR) in association with Fuller Technologies as the Presenting Partner on June 25, 2026. The webinar brought together experts from cement technology, R&D, global industry platforms, building performance policy and international development cooperation to examine how low-carbon cement and material innovation can accelerate India’s green construction transition.
The discussion came at a crucial time. India has committed to achieving net-zero emissions by 2070 and reducing the carbon intensity of its economy by 45 per cent by 2030. At the same time, the country’s construction sector is expanding rapidly, driven by urbanisation, infrastructure development, housing demand and industrial growth. Cement, as one of the most widely used construction materials, sits at the heart of this transition. It is indispensable to development, but also central to the challenge of reducing embodied carbon in buildings and infrastructure.
Moderated by Nitika Krishan, Senior Urban Infrastructure and Sustainable Policy Consultant, the panel featured:
- Kiranmai Sanagavarapu, Director, Low Carbon Solutions, Fuller Technologies;
- Dr Hemantkumar Aiyer, VP and Head R&D, Nuvoco Vistas Corp Ltd;
- Devika Wattal, Innovation Lead, Global Cement and Concrete Association (GCCA);
- Dr Sunita Purushottam, MD, GBPN India (Global Buildings Performance Network); and
- Vaibhav Rathi, Senior Technical Advisor, GIZ (the German Agency for International Cooperation)
Setting the tone for the discussion, Nitika Krishan underlined the scale of the challenge before the sector. “The question before us is no longer whether we build, but how we build sustainably,” she said. She pointed out that construction accounts for nearly 40 per cent of global energy-related carbon emissions when both operational and embodied carbon are considered. Cement production, she added, remains one of the hardest industrial processes to decarbonise.
For India, this is not merely an environmental issue. It is a development issue, a competitiveness issue and increasingly, a market issue. As one of the world’s largest cement producers and among the fastest-growing construction markets, India’s material choices will influence the carbon trajectory of its built environment for decades. As Krishan observed, sustainability solutions in economies such as India must not remain limited to laboratory success. They must be scalable, commercially viable and practical at national level.
The innovation gap: From technology to market
Experts believe that there is a need to bridge the innovation gaps for making decarbonisation in cement and concrete scalable. Devika Wattal of GCCA, explained, “The starting point must be the core cement manufacturing process itself. The first and foremost is the heart of our process, the heart of cement manufacturing. How do we reduce clinker? That is always a topic where industry is working very intrinsically.”
Clinker reduction remains one of the most important pathways for lowering emissions in cement. Since clinker production is energy-intensive and chemically emits carbon dioxide, reducing the clinker factor through supplementary cementitious materials (SCMs), blended cements and new chemistries can have a significant impact. Wattal also noted that carbon capture, utilisation and storage (CCUS) will have a role, though it may not be the first lever for all markets.
However, she stressed that innovation cannot stop at technology development. A solution that works in the lab must also be adaptable to industry, scalable in production and acceptable in construction practice. “It is important for that innovation to be adaptable, to be scalable, and so that it can be executed in real time,” she said.
Wattal also called for stronger enabling systems around innovation. These include performance-based standards, product-level embodied carbon databases and clearer frameworks for evaluating green materials. Without these, low-carbon cement products may struggle to compete with conventional materials in procurement and design.
R&D must balance carbon, cost and performance
Bringing in the R&D perspective into the discussion, Dr Hemantkumar Aiyer of Nuvoco Vistas emphasised that low-carbon cement development cannot be treated as a single-variable exercise. Cement must perform in real construction conditions. It must deliver strength, durability, consistency and cost competitiveness, while also reducing carbon.
“The root of understanding and balancing all these aspects lies in materials, and knowing the materials,” he said.
According to Dr Aiyer, R&D teams must understand the variability of raw materials such as fly ash, slag and clinker. Different sources produce different material behaviours. This makes mix optimisation, material characterisation and processing-property relationships critical. When performance is affected, cement manufacturers must understand how strength enhancers, admixtures and other performance chemicals interact with the material system.
He also linked material science with process efficiency. Clinkerisation takes place at extremely high temperatures, around 1,400 to 1,450 degrees Celsius. Any improvement in raw mix design, process control or energy optimisation can, therefore, help reduce emissions and cost. Dr Aiyer pointed to artificial intelligence-based optimisation, Cement 4.0 tools and advanced software as important enablers for real-time process and material control.
“The more you understand the materials, the more you can control it,” he said.
LC3: The promise is proven, the sequencing is not
Limestone calcined clay cement, commonly referred to as LC3, has attracted global attention because it can reduce clinker content significantly by using calcined clay and limestone while maintaining performance in many applications. Kiranmai Sanagavarapu of Fuller Technologies said the technology itself has already moved beyond proof of concept. Fuller Technologies has worked with calcined clay technology for nearly two decades and has seen plants running in France and Ghana. These plants, she said, are meeting local and national specifications, while the economics are beginning to make sense.
“The calciner is performing, the economics is stacking up, it is making business sense to produce,” she said.
But if the technology is viable, why has adoption not scaled faster? For Sanagavarapu, the answer lies in project sequencing. Too often, clay characterisation happens after equipment is specified. This, she warned, is a backward approach because calciner design depends on clay mineralogy, kaolinite content, iron levels, reactivity, moisture and other variables.
“If you don’t know what your deposit looks like before you commit for the equipment, you are, in a way, going blind into designing,” she said.
She also identified permitting and plant integration as major bottlenecks. Environmental clearances, mining permissions and local regulatory approvals must begin early. Similarly, calcined clay must be integrated into existing grinding, blending and logistics systems from the design stage, not treated as an afterthought during commissioning.
India already has IS 18189:2023 standard for LC3, but Sanagavarapu pointed out that the standard is not yet visible enough in procurement documents. “The gap between what is technically being permitted and what the procurement is asking is the single biggest bottleneck,” she said.
In her view, successful scale-up depends on getting the sequence right: clay characterisation first, permitting in parallel, standards aligned with construction, and integration built into plant design.
India’s LC3 journey: Progress, but demand remains thin
Providing details of India’s LC3 commercialisation experience, Vaibhav Rathi of GIZ noted that JK Cement carried out the first commercial production of LC3 at its Rajasthan plant, followed by JK Lakshmi Cement three months later. These initiatives were supported by the International Climate Initiative of the Government of Germany, with IIT Delhi contributing deep institutional knowledge on LC3 research and BIS certification.
Rathi said India’s early experience has produced clear lessons. One of the biggest was the need to build capacity among regulators. While BIS certification existed, State Pollution Control Boards were unfamiliar with the technology and unsure about the approval pathway.
“The capacity building is not just needed amongst the producer and the users of the cement, but also the regulators who are working with this technology for the first time,” he said.
He also highlighted the need for better information on China clay deposits. Since China clay is currently classified as a minor mineral, centralised data on availability, quality and location is limited. If cement manufacturers are to adopt LC3 at scale, stronger mineral intelligence will be important.
The third issue is demand. LC3 has already been used in projects such as Palava City in Mumbai and Noida International Airport, but these remain limited examples. “It is in a chicken and egg situation,” Rathi said. “Cement companies are saying we need more demand, and users are saying there is not enough cement available.”
Public procurement, he suggested, could help break this cycle. If agencies such as CPWD and other public bodies begin testing, accepting and specifying LC3, it could create the market confidence needed for cement companies to invest in production and storage.
Building codes must catch up with innovation
Dr Sunita Purushottam of GBPN India argued that material choices will determine built environment emissions over the long term, but India’s current policy signals remain fragmented. Although LC3 has received BIS recognition, she pointed out that building codes, municipal bylaws, schedules of rates and sustainability codes do not yet provide uniform guidance on low-carbon cement.
“The current cement regulations are largely prescriptive and favouring traditional materials,” she said. This limits the ability of alternative materials to compete on performance, durability and emissions.
Dr Purushottam also raised the issue of taxation. Cement, including LC3, currently falls under the same GST bracket as conventional cement. A differentiated tax structure, she argued, could help accelerate market adoption. “In order for the market to demand LC3, that differentiation in the GST could go a long way,” she said.
She noted that green building certifications such as IGBC and GRIHA are already creating demand for low-carbon materials by assigning points for embodied carbon and sustainable material use. However, she said large-scale adoption will require regulatory mandates, particularly through building codes and state-level notifications.
She also cautioned that low-carbon cement alone does not solve the entire building performance problem. A material may reduce embodied carbon, but the operational carbon of a building depends on thermal performance, design, insulation and energy use. “The energy part has two elements,” she said. “One is the embodied carbon of the material itself, and the other is the operational carbon.”
Collaboration is the bridge between invention and impact
Wattal said GCCA sees innovation as a strategic priority and works through platforms that connect industry with academia and start-ups. “There is no way we will decarbonise our sector without innovation,” she said.
However, she stressed that research must be connected to actual industry challenges. Innovations developed in isolation may fail when they encounter real-world barriers such as raw material variability, plant integration, cost, standards and finance. Start-ups, too, need industry mentorship and scale-up pathways.
Wattal also flagged the importance of finance. Even strong technologies may struggle to attract investment if there is no common understanding of bankability. “We have always put projects into, is this a bankable project? But the definition of a bankable project has never been defined,” she said.
For India, she saw strong potential in its academic and start-up ecosystem, but said the challenge lies in alignment and prioritisation. The country has the research base, industrial capacity and market size. What it now needs is a coordinated route from innovation to deployment.
There is a practical concern for cement manufacturers: how can existing plants be adapted for lower emissions without compromising reliability or commercial viability?
Kiranmai Sanagavarapu addressed, “The reliability risk in calcined clay retrofit is definitely real, but it is almost always self-inflicted. The risk arises when a new process is added to an existing circuit without properly redesigning grinding and blending configurations.”
Existing cement plants, she explained, can take two broad routes. The first is external sourcing of calcined clay combined with mill optimisation. This requires lower capital investment and can potentially move in 12 to 18 months if other conditions are in place. It may reduce emissions by around 20 to 30 per cent. The second route is integrated calcination on site, which requires higher capital expenditure and longer lead times, but provides greater control over quality, supply and emissions reduction potential.
For Sanagavarapu, the principle is simple: low-carbon retrofits must be designed with intent. “Design it with an intent properly from the start. Start in the market conditions where the economics are already working,” she said.
Circularity: The overlooked advantage
According to Vaibhav Rathi, fly ash and slag are already well established in cement and construction (C&D), but construction and demolition waste remains underutilised. “C&D waste is a growing business opportunity which not many have taken up,” he said. India’s continuous construction and demolition activity creates huge volumes of waste, much of which contributes to air pollution, land degradation and material inefficiency. With the right processing and standards, this waste can be converted into useful construction products.
Rathi also pointed out that LC3 has a circular economy dimension that is often overlooked. It can use low-grade kaolin-rich clay left behind after high-grade clay is extracted for other applications. “LC3 is not only a low-carbon solution, but also a circular economy solution,” he said.
At the same time, he cautioned that LC3 in India is not yet cheap because it has not reached scale. Site-specific techno-commercial feasibility studies, supported jointly by development agencies and industry, could help companies assess whether LC3 production makes technical and financial sense at a given location.
Dr Purushottam added that India must address both low-carbon cement and construction waste together. “Both low-carbon cement and C&D waste go hand in hand. India does not have an option but to work on both,” she said.
Dr Aiyer called for policy shifts from both government and industry, including preferential purchasing of sustainable materials, minimum supplementary cementitious material requirements in public and public-private projects, and faster regulatory implementation. “If we can fast-track the regulatory standards and their implementation on the ground, that is the way to go,” he said.
From green ambition to green construction
Cement innovation is no longer only about chemistry. It is about systems. Low-carbon cement will scale only when technology, standards, procurement, finance, regulation, education and construction practice move together.
LC3 and other low-carbon technologies have shown promise. India has early commercial examples, strong research capability and growing market interest. But mainstream adoption will depend on whether demand can be created, regulators can be capacitated, standards can be embedded in procurement, and manufacturers can see a clear business case.
For a country building at India’s scale, the opportunity is enormous. Cement will continue to be central to infrastructure and urban development. The challenge now is to ensure that the cement used in India’s growth story carries a lower carbon burden.
- Rakesh Rao
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