TAlthough the cement sale this year is better than the one before, it is still too early to celebrate. The demand is yet to pick-up and the dealers are waiting optimistically. Anshay Sehgal talks with ICR about the challenges and threats faced by cement dealers in Chhattisgarh. Excerpts from the interview.
Tell us about your business and the geographical region that you cover.
We have been in the cement dealing business from last 26 years. We are based in Raipur, which is the state capital of Chhattisgarh, our market area is Raipur and upcountry areas. We are an exclusive dealer for Birla Gold, a product from Century Cement, with sale volumes reaching around 1,800 metric tonnes per month.
What are the threats faced by dealers in your region?
There are few threats faced by dealers in this region. One of the biggest threat is influx of cement from southern India. In the off-season period, during monsoons, when the cement demand is low, the cement companies from Andhra Pradesh are dispatching cement to Northern markets. We have seen well known brands of South Indian cement companies sold in Chhattisgarh.
Now that the demand has gone up in Andhra, the inflow has stopped for a while.
The cement was sold at very low prices. As a result the price structure here was disturbed badly. It was sold at Rs 4-5 less than the average market price.
How could industries in south afford to dispatch cement over such large distances?
One is that the south Indian region is saturated with cement companies, while the demand is low to due to lack of any prominent infrastructural activities there. These companies are already operating at half the installed capacities. So, they have no option but to explore distant markets to sustain the business. In off-season, when the demand is low, it becomes even more difficult to meet sale targets. Also, cement in a way is a perishable good. You cant stock it through the monsoons, waiting for the demand to pick-up. Chhattisgarh had a good to moderate demand this year as new infrastructure projects were initiated. Naturally it attracted cement suppliers from distant places with low cement demand.
I also suspect that these companies are evading state level taxes to manage with such low prices. We do not have any organised regional association of dealers that could protest strongly against this. Although, few regional cement manufacturers have taken strong objection against this.
You have been exclusive dealer for Century Cement for a long time. What has keeps you attached with this brand?
The company has a very good distribution network. If the order is to dispatched within Raipur, it is executed in four hours max. The company has four large warehouses in the four corners Raipur. If the order is from a nearby district, then the material is delivered to the site in not more than 10 to 12 hours. In our business quick delivery is very important and so we have stayed with the brand so long. It is a well known brand and the demand is good for this brand.
What is one thing that a cement company must do to keep its dealers happy?
Pay their dues in time. The company that we deal with (Century Cement) is very ethical and professional when it comes to meeting financial obligations. The company pays its dues to dealers systematically. I have friends that deal in cement from other companies. I have seen them fighting with cement companies throughout the year for payments.
Century Cement is the only company that I know in the cement industry, which settles all its dues before the financial year end. That means a lot to dealers. Some companies announce big discounts and incentives, but they keep the dues unpaid for more than two years at a stretch. If the money remains blocked with the cement company for such a longtime, it denies us from investing it into our business and growing it further. One loses at multiple levels when dealing with such companies.
How do you see the business growth year ahead?
There is huge potential for growth, but the challenges are equally big. The year ahead will be challenging as the market gets saturated with more cement dealers. Cut throat competition will make it tough for small players to survive. Big dealers are trying to grab retailers from small dealers. Currently we have 40 retailers working for us and we are aware of the attempts made by our competitors to absorb our retailers in their network. So maintaining and growing the network will be a tough in the coming year.
What is your strategy to counter this?
We are giving out systematically planned incentives to our retailers. Sometimes the cement companies too support us financially.
What must be done immediately to safeguard your business?
Some builders are bringing in cement from outer states and are selling it back in the regional cement market. These builders have received tax exemptions from government and are buying cement at subsidised rates. The cement is being sold in the market instead of being used for infrastructure projects.
The builders are only paying 2 per cent tax, while we have to pay 14.5 per cent tax. That is a gap of 12.5 per cent, which is huge. This malpractice should stop immediately. Complaints to tax authorities have not yielded any results and the illegal cement sale continues in Chhattisgarh.
All local cement bodies have tried their level best to thwart this activity but the problem still persists in this region. Sale of illegally sourced cement is damaging market dynamics severely.
Jignesh Kundaria, Director and CEO, Fornnax Technology
India is simultaneously grappling with two crises: a mounting waste emergency and an urgent need to decarbonise its most carbon-intensive industries. The cement sector, the second-largest in the world and the backbone of the nation’s infrastructure ambitions, sits at the centre of both. It consumes enormous quantities of fossil fuel, and it has the technical capacity to consume something else entirely: the waste our cities cannot get rid of.
According to CPCB and NITI Aayog projections, India generates approximately 62.4 million tonnes of municipal solid waste annually, with that figure expected to reach 165 million tonnes by 2030. Much of this waste is energy-rich and non-recyclable. At the same time, cement kilns operate at material temperatures of approximately 1,450 degrees Celsius, with gas temperatures reaching 2,000 degrees. This high-temperature environment is ideal for co-processing, ensuring the complete thermal destruction of organic compounds without generating toxic residues. The physics are in our favour. The infrastructure is not.
Pre-processing is not the support act for co-processing. It is the main event. Get the particle size wrong, get the moisture wrong, get the calorific value wrong and your kiln thermal stability will suffer the consequences.
The Regulatory Push Is Real
The Solid Waste Management (SWM) Rules 2026 mandate that cement plants progressively replace solid fossil fuels with Refuse-Derived Fuel (RDF), starting at a 5 per cent baseline and scaling to 15 per cent within six years. NITI Aayog’s 2026 Roadmap for Cement Sector Decarbonisation targets 20 to 25 per cent Thermal Substitution Rate (TSR) by 2030. Beyond compliance, every tonne of coal replaced by RDF generates measurable carbon reductions which is monetisable under India’s emerging Carbon Credit Trading Scheme (CCTS). TSR is no longer a sustainability metric. It is a financial lever.
Yet our own field assessments across multiple Indian cement plants reveal a sobering reality: the primary barrier to scaling AFR adoption is not waste availability. It is the fragmented and under-engineered pre-processing ecosystem that sits between the waste and the kiln.
Why Indian Waste Is a Different Engineering Problem
Indian municipal solid waste is not the material that imported shredding equipment was designed for. Our waste streams frequently exceed 40 per cent to 50 per cent moisture content, particularly during monsoon cycles, saturated with abrasive inerts including sand, glass, and stone. Plants relying on imported OEM equipment face months of downtime awaiting proprietary spare parts. Machines built for segregated, low-moisture waste fail quickly and disrupt the entire pre-processing operation in Indian conditions.
The two most common failures we observe are what I call the biting teeth problem and the chewing teeth problem. Plants relying solely on a primary shredder reduce bulk waste to large fractions, but the output remains too coarse for stable kiln combustion. Others attempt to use a secondary shredder as a standalone unit without a primary stage to pre-size the feed, leading to catastrophic mechanical failure. When both stages are present but mismatched in throughput capacity, the system becomes a bottleneck. Achieving the 40 to 70 tonnes per hour required for meaningful coal displacement demands a precisely coordinated two-stage process.
Engineering a Made-in-India Answer
At Fornnax, our response to these challenges is grounded in one principle: Indian waste demands Indian engineering. Our systems are built around feedstock homogeneity, the holy grail of kiln stability. Consistent particle size and predictable calorific value are the foundation of stable kiln combustion. Without them, no TSR target is achievable at scale.
Our SR-MAX2500 Dual Shaft Primary Shredder (Hydraulic Drive) processes raw, baled, or loosely mixed MSW, C&I waste, bulky waste, and plastics, reducing them to approximately 150 mm fractions at throughputs of up to 40 tonnes per hour. The R-MAX 3300 Single Shaft Secondary Shredder (Hydraulic Drive), introduced in 2025, takes that primary output and produces RDF fractions in the 30 to 80 mm range at up to 30 tonnes per hour, specifically optimised for consistent kiln feeding. We have also introduced electric drive configurations under the SR-100 HD series, with capacities between 5 and 40 tonnes per hour, already operational at a leading Indian waste-processing facility.
Looking ahead, Fornnax is expanding its portfolio with the upcoming SR-MAX3600 Hydraulic Drive primary shredder at up to 70 tonnes per hour and the R-MAX2100 Hydraulic drive secondary shredder at up to 20 tonnes per hour, designed specifically for the large-scale throughput that higher TSR ambitions require.
The Investment Case Is Now
The 2070 Net-Zero target is not a distant goal for India’s cement sector. It starts today, with decisions being made on the plant floor.
The SWM Rules 2026 are already in effect, requiring cement plants to replace coal with RDF. Carbon credit markets are opening up, and coal prices are not going to get cheaper. Every tonne of coal a cement plant replaces with waste-derived fuel saves money on one side and generates carbon credit revenue on the other. Pre-processing infrastructure is no longer just a compliance requirement. It is a business investment with a measurable return.
The good news is that nothing is missing. The technology works. The waste is available in every Indian city. The government has provided the policy direction. The only thing standing between where the industry is today and where it needs to be is the commitment to build the right infrastructure.
The cement companies that move now will not just meet the regulations. They will be ahead of every competitor that waits.
About The Author
Jignesh Kundaria is the Director and CEO of Fornnax Technology. Over an experience spanning more than two decades in the recycling industry, he has established himself as one of India’s foremost voices on waste-to-fuel technology and alternative fuel infrastructure.
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