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2015 Forging Ahead

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The expected higher government spending on infrastructure and a robust growth in housing sector will trigger the demand for cement in 2015, a year that is also expected to be another year of consolidation in the industry.
The Indian cement industry is the second largest market after China accounting for about eight per cent of the total global production. It had a total capacity of over 360 million tonne (mt) as of the financial year 2013-14. The industry grew at a rate in the previous decade, registering a compounded growth of about eight per cent. The housing sector is the biggest demand driver of cement, accounting for about 67 per cent of the total consumption, followed by infrastructure – 13 per cent; commercial construction – 11 per cent; and industrial construction – nine per cent. To meet the rise in demand, cement companies are expected to add 56 mt capacity over the next three years. The cement capacity in India may register a growth of eight per cent by end of next year to 395 mt from the current level of 366 mt. It may increase further to 421 mt by the end of 2017. The country?s per capita consumption stands at around 190 kg.

The market scenario
The cement production remained subdued during FY14 growing by a modest three per cent during April-March 2014 as against 7.7 per cent in the corresponding period of the previous year. The cement demand remained weak primarily due to weak demand from end-user industries. Delays in environmental clearances for industrial and infrastructure projects and unavailability of sand in some states contributed to slow growth. In fact, as against year-to-date growth of three per cent, cement production registered an even lower growth of two per cent during Q3 FY14 and 1.2 per cent in Q4 FY14 which are seasonally strong quarters for the cement industry, as per a recent ICRA report.

Companies are taking steps to optimise their overhead costs, improve efficiency and lower consumption norms. They have increasingly started using pet coke and lignite instead of expensive coal as a source of fuel and utilising waste heat gases to produce power. Steps are also being taken to optimise power consumption norms and reduce the power consumed per tonne of cement. Further, companies are focusing on using higher proportion of additives such as fly ash and cement to bring down their cost of production. As a result, the power and fuel cost as well as raw material cost has seen some easing.

Growth and demand outlook
Highlighting the industry scenario, Arvind Pathak, Chief Executive Officer, Reliance Cement Company, had this to say. ?With cement capacity touching ~390 million tonne and likely demand of 275 million tonne in 2015, there is expected to be a surplus capacity of ~115 million tonne during the year. Industry is projected to operate at a rate of 70-72 per cent of capacity utilisation in 2015.?

On the expected CAGR growth, Pathak says, ?With expected pick up in GDP growth rate and considering a multiplier of 1.2, cement demand is expected to grow at the rate of 7-8 per cent during FY15-16.? On the demand front he observes, ?Demand is mostly expected to come from government-backed projects in 2015. Concretisation of roads, dedicated freight corridors, development of smart cities, metro rail projects, construction of toilets under ?Swacch Bharat Abhiyan? are the major thrust areas the government is going to focus on which will drive cement consumption from 2015 onwards. Further, with new rules on funding for infrastructure projects under 5:25 rule, and revival of many stalled projects, the overall demand is expected to be high.? He adds, ?With easing of rules for FDI in real estate sector and the likely reduction of interest rates, commercial and real estate sector are also likely to drive cement consumption.? According to him, the likely demand mix in 2015 is expected to be housing (60 per cent), infrastructure ( 22 per cent) and commercial (18 per cent).

Vinod Juneja, Managing Director, Binani Group of Industries, ups the growth curve further. According to him, with various projects and expansion plans both by the state and central governments, the cement industry will grow by 10-11 per cent in the coming financial year. The demand will also grow high in the coming years. It is estimated that infrastructure will drive demand in the coming years from airports, highways and railway activities. Juneja adds, ?The National Highways Authority of India (NHAI) has sought to end all its pending issues and litigation regarding land acquisition, cost over-run etc; NHAI and Airports Authority of India (AAI) have got big expansion plans both in metro and non-metro sectors, hence cement market will grow minimum 10-11 per cent.? He further adds, ?The decrease in the housing loan interest rate and the increase in the tenure of the loans repayment will further boost the cement sector leading the cement industry to a sunshine industry.?

VP Sharma, Managing Director & Chief Executive Officer, ABG Cement, confidently avers, ?I am bullish about cement demand going high. The important sectors which will drive the cement demand are infrastructure and housing. The various initiatives taken by the present government, particularly in the areas of concrete roads, railways, ports, smart cities, and low-cost housing will drive the demand. Towards the end of 2015, demand for cement should be close to 8-9 per cent, which will become double-digit by the end of 2015.? Sharma adds, ?The year 2015 will see excess supply of cement to the tune of 50 to 60 million tonne. But consistent increase in demand will help us to absorb excess supplies going forward.?

Sharma cements the arguments, ?From the time the present government came to power, they have emphasised on building the infrastructure, i.e., concrete roads, railways, ports and low-cost housing. This will certainly increase cement demand. Recently, the Minister for Road Transport and Highways and Shipping, Nitin Gadkari quoted that all central road projects will be done by concrete. This would result in increase in cement demand.?

Zeroing on the demand scenario, Ashutosh Rampal, Vice President, Marketing, KJS Cement, Maihar, says, ?The cement demand in FY15-16 will be driven by government spending on public infrastructure, in spite of the newly elected government?s pressing need to curb fiscal deficit. This has been clearly stated policy line. Private enterprise has a low share in nation building and the much touted Public-Private-Partnership (PPP) has not gathered mass, thanks to the economic downturn and policy paralysis of the UPA government. Public infrastructure spending by the government is expected to lead the growth in cement consumption in FY15-16, till the PPP model becomes robust and the private companies start taking interest in the infra projects. Retail housing off take was sluggish last year due to high interest rates and fragile economic stability. This is expected to change for better in FY15-16 due to relaxation of land utilisation norms and easing interest rates. The ambitious NCR-Kandla industrial freight corridor is awaiting rejuvenation by Japanese funding who in turn are treading cautiously due to ambivalence of Indian Babudom. To conclude, the industry will do well subject to the government taking effective steps to rev up the system.?

Highlighting the ground reality, Rampal adds, ?The NDA government has promised government expenditure on building public infrastructure as a means to boost the income generation in the economy. In addition to this, the easing of land acquisition norms for key infrastructure projects and government focus on manufacturing and infra industry is expected to boost the demand scenario. Since no significant new capacity is coming up, the year is expected to be good for cement industry.PPP projects are stuck because of cost escalation and poor availability of long- term low-cost funds. Renegotiation of stalled PPP infra projects, especially those of NHAI and take off of Indo-Japanese NCR-Delhi-Kandla freight corridor require urgent attention to boost the cement and steel consumption across the country.? The demand outlook for FY15 remains relatively more favourable given the new government?s focus on revival of infrastructure and investment spending. The growth in FY15 will also be supported by a low base as cement production grew by merely three per cent in FY14. During April-May 2014, cement production has grown by 7.7 per cent YoY as against 3.9 per cent in the corresponding period last year. Pick-up of real estate and industrial activity, infrastructure projects and overall investment cycle will remain critical for the sector over the near-term.

As per ICRA report, the initiatives announced to promote infrastructure and housing investment in Union Budget are likely to have a positive impact on cement demand. Increased provision under Rural Housing Fund and interest deduction on housing loans will boost urban and rural housing demand and in turn, demand for cement. Further, government measures to promote investment in ports, roads, airports and other infrastructure projects are also likely to support cement demand. Cement companies are also likely to benefit from the increase in long term funding availability for infrastructure projects which is likely to facilitate more investment in these sectors.

2015: A year of further consolidation
According to Sharma, 2015 will be another year of more consolidation in the cement industry. He says, ?The bigger players will look for consolidation as we have seen in 2014 to have better price control. The prices may stabilise towards end of 2015. Our company will work towards increasing the capacity utilisation rather than any capacity addition in the present circumstances. However, based on market scenario, we may look towards end of 2015 for any capacity addition.?

Pathak also is on the same page. According to him, consolidation in cement industry will continue with non-serious and marginal players exiting the market and entry of large multinational cement players. He adds, ?Our current plan of capacity expansion of 10 million tonne is on track (5 million tonne in Maihar, Madhya Pradesh and another 5 million tonne in Yavatmal, Maharashtra). This will take our total installed capacity to 15.5 million tonne. However, immediately in 2015, there is not going to be any new capacity addition.? Pathak further adds, ?With increased focus of the government on infrastructure and real estate development, demand is expected to be better in 2015. This, coupled with slowdown in capacity additions, will enable industry to pass on cost increases and boost profitability.

Says Rampal, ?I clearly see consolidation of industry. The quality players will take over the smaller inefficient and high-cost players with weak cash flows. Ultratech Cement, Shree Cement and Bharat Dalmia Cement will straddle the space of mergers and acquisitions. Allocation of coal blocks and increased capacity utilisation of government undertakings will help reduce the manufacturing costs. FY15-16 will see a fillip in demand and the market prices. This in turn will create enterprise value and bolster balance sheets for cement companies.? He adds, ?We are planning to increase capacity to 5 mtpa shortly by adding another 2.10 mtpa clinkerisation unit at Maihar with forward grinding units in Bihar, Odisha and Uttar Pradesh. By this time, our own railway siding would be functional, thereby helping us in evacuation of cement.?

Pricing pressures
During the past two years the industry witnessed high operating costs, including all major cost heads such as raw materials, energy and freight. The steep depreciation of the rupee and hike in rail freight and diesel prices further aggravated the concerns. Cement manufacturers still continue to be under the pressure of rising input costs. According to ICRA report cement manufacturers witnessed significant increase in freight costs over the past two years, due to increase in freight rates by railways, consistent increase in diesel prices and increased dependence on costlier road transport due to shortage of railway wagons. Apart from this, the prices of key raw materials limestone and gypsum have also increased. Further, increase in domestic coal prices by CIL in May 2013, declining availability of low cost linkage coal have increased power and fuel costs. However, declining international coal and pet coke price have provided some benefits to Indian cement companies; but the extent of this benefit has partly been offset by rupee depreciation.

According to Rampal, cement prices directly depend upon three parameters: the capacity expansion that disturbs the equilibrium of demand-supply in a region; the quality of players; and the difference in variable cost of production of players. He says, ?Firm prices and the capacity utilisation of 85-90 per cent in FY15-16 is expected to stay for next 2-3 years.?

Pathak explains, ?With demand picking up and rate of new capacity additions slowing down, industry would be able to pass on the cost increase to consumers and cement prices are likely to grow in the range of 5-7 per cent in 2015.?

In many regions prices have gone over Rs. 300 per bag. Says Juneja, ?Cement prices have already reached above Rs 300 per bag which includes excise, octroi, sales tax, primary and secondary transportation and handling charges.? Sharma observes, ?There will be pressure on the prices as in the past. However, focus will be to keep the current price stable and increase volumes.?

From the dealers point of view, Rahul Gandhi, Director, Mahaveer Building Material, had this to say. ?Currently, the basic issue is the price, which has gone up drastically in the last couple of months. At the same time, there is no change in sales margins. The government has to introduce some policy initiative by setting a minimum earning margin for the dealer and the margin should be according to the price, if the price is increased, the margin should be revised accordingly. This will help the dealer stay in the business in difficult times. GST will be a good initiative as the anomalies in tax structure will go and it will be uniform.? Ravi Lunawat, Partner, Lunawat Agency, supports the view. According to him, from the government, GST is a major initiative everybody is waiting for. He says, ?Last year when LBT started, it reduced the business of dealers in cities because that time the market was closed for almost two months and the builders bought cement from other markets. Once the GST starts, the price will be uniform everywhere, which will be good for us.?

SR Agarwal, Proprietor, Kirtee Enterprises is also on the same page. ?The Central government?s initiative to introduce GST is a good move for dealers,? he says. He further explains, ?Before LBT, the rate of cement in the rural area was different from city areas, which makes a difference of Rs 10-20 per bag. And now after the authorities upgraded octroi to LBT, the transport system is very fast and the material handling is also very easy. And the material is distributed at the same rate in the rural and urban areas. GST will definitely make the difference as it will benefit the complete value chain of the company, trader, transporter and the end-user. The overall procedure will be transparent.?

According to ICRA report, cement prices in North India had seen a significant hike of Rs 50 per bag during Q4 FY14, driven by temporary supply side disruptions following closure of two cement plants of Binani Cement with a total capacity of 6 mtpa in Rajasthan. The average wholesale cement price in Delhi increased from Rs 275 per bag (50 kg) in January 2014 to Rs 323 per bag in March 2014. Similarly, the average wholesale cement price in Chandigarh increased by Rs 58 per bag between January-March 2014 to Rs 334 per bag. The prices in certain parts of Western India, particularly Gujarat, were also impacted by the aforementioned shutdown. Wholesale prices in Ahmedabad market increased by Rs 47 per bag to Rs 300 per bag between January-March 2014. However, cement prices in these regions came under pressure in April-May 2014, following resumption of cement supply from Binani. Wholesale prices declined by Rs 15-30 per bag in Delhi, Ahmedabad and Chandigarh between April-June 2014. Prices in Mumbai market continued to remain under pressure and declined by Rs 20 per bag during January-May 2014 due to transfer of cement from Southern markets. However, with rise in prices in South in June 2014, the wholesale prices in Mumbai also increased by Rs 5-10 per bag in June 2014. Cement prices in Eastern markets increased by Rs 20-25 per bag during January-June 2014 as cement companies raised prices in the busy season to recover the rising costs.

South India remained the only major region which saw consistent decline in prices by about Rs 10-30 per bag during January-May 2014 due to overcapacity, disruption of production discipline and low demand during April-May 2014. However, cement companies raised prices significantly by about Rs 70 per bag in June 2014 to pass on the rising costs. However, the real estate companies and builders association have protested against such a steep price hike. During April-June 2014, the average price in Delhi was higher by 10 per cent, 22 per cent higher in Ahmedabad, 7 per cent higher in Chandigarh as compared to prices in the corresponding period of the previous year. Prices in Mumbai are flat while those in South and certain parts of East India are lower on YoY basis.

Great expectations
Rampal spells out the expectation from the government. He says, ?NDA government is already sending out message that it wants to kickstart manufacturing to facilitate the growth of labour income. Simplifying land acquisition, labour reforms and simplifying federal taxation through implementation of GST across the nation are the steps industry has already welcomed. Specifically, for the cement industry, the government spending will directly increase the cement demand, followed by take-off of retail housing and PPP infra projects. Government must analyse and find cure as to why infra companies are exiting from the BOT to EPC models. Is the policy environment or the trust missing for the private capital to consider incubating in these projects?? He adds, ?The Railways can facilitate the industry through preferential allocation of cement rakes (at the factory head) and raw material rakes (at the ports).?

According to Pathak, for increasing demand curve post initiation of different initiatives, government should now focus on implementation of its dream projects like 100 smart cities, bullet train and metro rail projects, house for every citizen by 2022, concretisation of national highways, etc, which will drive cement consumption. He further points out, ?To attract investments in railway infrastructure, government need to review the ?Own your Wagon Scheme? and make it more attractive for the industry players. Enough focus should be given to develop inland waterways, which would reduce the burden on existing rail and road network and also bring down the logistics cost.? As far as availability of power is concerned, Pathak adds, ?The government needs to focus on resolving the issues being faced by power sector by bring in clarity on coal auctioning, land acquisition bill, etc. A lot of power projects that are stuck/stalled due to various issues should be revived.?

Tax issues
Speaking on the issues related to different tax and lack of uniform tax structure, Pathak says, ?Cement is one of the highest taxed commodities in India. The total taxes and levies include royalties and import duties on input materials, electricity duties, sales tax, and excise duties account for one-third of the overall price of cement. Taxation rates in India are almost double of China. Government needs to focus on resolving raw materials and logistics issues to help cement sector getting clarity on policies. Clear roadmap for improvement in infrastructure sector is needed to help generating cement consumption in the country. Implementation of GST should start with more clarity on tax structure. The government should also reduce some of the taxes by providing it a status of core infrastructure sector.?

Explains Rampal, ?Out of the market price of a bag of cement 35-40 per cent is taken away by VAT, excise and railway freight (cost of manufacturing and limestone being extra) putting a massive burden on the industry. In spite of being a priority sector for nation building, cement taxation in the country is at par with the prohibitive industries worldwide.? Rampal suggests, ?Reduction in excise duty by 3-4 per cent will be able to sustain the industry longer. Government should study the possibility of subsidising rail freight for food, cement and steel which will directly boost the movement and clear up all logistics bottlenecks in addition to keeping the inflation of essential commodities low.?

Juneja avers, ?Until and unless GST is implemented, there cannot be effective interstate movement due to cascading effect of multiple taxes. We are awaiting the Budget on 28 February 2015.? Sharma mirrors the observation. According to him India is one of the countries where there is higher tax structure in cement sector. Government has to rationalise excise duty, royalty and sales tax to help the sector to grow.

Raw material availability
According to Rampal, raw material availability of coal and gypsum is not a constraint. However he adds, ?The limestone availability is fast becoming a constraint as applications for mining lease for limestone are stuck either at the state level or at the central ministry level due to environmental or social impact assessment issues.

Government must speed these up through e-governance initiatives.? Says Sharma, ?I don?t see much action from the present government in this area; however, cement industry has to improve its raw material inventories, particularly limestone. Moreover, government has to speed up with coal block allotments.?

Sharma further adds, ?With increase in demand, pressure will be on logistics. We are yet to see action from the new government in this area.? As far as the availability of power is concerned, he says, ?Most of the cement plants are self-sufficient in power with captive power plants. We will require continuing import of coal due to the current uncertainties in the domestic coal supply. Cement industry is importing coal also due to favourable coal prices.

However, the industry has to focus more on alternative sources of power from waste heat etc to reduce energy cost.?

Moving forward
Cement demand is closely linked to the overall economic growth, particularly the housing and infrastructure sector. With the Government of India providing a boost to the infrastructure and various housing projects coming up in urban as well as rural areas, the cement sector has enough scope for development in the future. The weakness in the international crude oil prices and other commodities should help bring costs under control and improve profitability of the sector. If inflation comes under control, a likely lowering of interest rates would be a big positive for the cement sector. Despite the current challenges that dent the growth of the industry, the long term drivers for growth remain intact. Higher government spending on infrastructure, robust growth in rural housing and rising per capita incomes are likely to augur well for the cement sector.
Agith G Antony

2015 is expected to be another year of market consolidation. Cement companies expected to add 56 mt capacity over the next three years. The installed capacity may increase to 421 mt by the end of 2017. Demand is expected to grow at a rate of 7-8 per cent during FY15-16. The year 2015 will see excess supply of cement to the tune of 50-60 mt.

Government needs to review the ?Own your Wagon Scheme?.
Develop inland waterways, which would reduce the burden on existing rail and road network.
GST implementation should start with more clarity on tax structure. Government has to speed up with coal block allotments.

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Economy & Market

The Road Ahead Begins Here

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The future of India’s roads took centrestage at RAHSTA Expo 2026, where policymakers, contractors and industry leaders came together under one roof. The event blended thought leadership, technology showcase and industry recognition into a single powerful platform.

India’s roads and highways community gathered in full strength at the Jio World Convention Centre, Mumbai, for the 16th edition of the RAHSTA Expo (Roads and Highways Sustainable Technologies & Advancement). Over two action-packed days, the event brought together policymakers, contractors, consultants, developers, equipment manufacturers, material suppliers, technology providers and investors to deliberate on the future of India’s ,infrastructure while showcasing the latest innovations driving the sector.

The event culminated in the prestigious RAHSTA Awards, where Shri. Ajay Tamta, Union Minister of State for Road Transport & Highways, felicitated organisations and professionals for their outstanding contributions to road construction, engineering, safety, sustainability and technology. With leading contractors, senior government officials, industry veterans and technology providers under one roof, the event reaffirmed RAHSTA’s position as one of India’s most influential platforms for the roads, highways, bridges and tunnels ecosystem.

Organised by FIRST Construction Council in association with ASAPP Info Global Group, RAHSTA has steadily evolved beyond an exhibition into a platform where policy, technology, engineering and business converge to address the opportunities and challenges shaping India’s next generation of transport infrastructure.

Beyond expansion, towards value

The conference opened with a thought-provoking address by Pratap Padode, Founder and Editor-in-Chief, Construction World, who observed that India’s highways sector has reached an important inflection point. Introducing this year’s theme – ‘From Expansion to Value: The Next Phase of India’s Highways’ – he noted that while the country has successfully expanded its road network over the past two decades, the industry’s priorities are now shifting towards building infrastructure that delivers greater lifecycle value, durability, safety and operational efficiency. With funding pressures, asset monetisation and evolving project models changing the sector’s dynamics, he said the focus must now move beyond kilometres constructed to the quality and long-term performance of every asset.

Dr Brijesh Dixit, Managing Director, Maharashtra State Infrastructure Development Corporation (MSIDC), reminded delegates that successful infrastructure delivery is ultimately a collective effort. Emphasising on collaboration between government, industry and engineering professionals, he remarked, “There is no loser in a winning team, and there is no winner in a losing team,” urging stakeholders to work together to deliver projects with quality, financial sustainability and technological excellence.

Delivering the keynote address, Bidur Kant Jha, Director, New Technologies for Highway Development, Ministry of Road Transport & Highways (MoRTH), outlined the Government’s long-term vision for India’s highway network. Highlighting the country’s 6.26 million km roads network, he spoke about the growing adoption of digital planning tools such as BIM and GIS, bridge health monitoring systems and Integrated Smart Transport Corridors under the Vision 2047 roadmap. He emphasised that while India remains open to global innovations, every new technology must be adapted to Indian conditions before large-scale deployment.

Addressing the gathering during the awards ceremony, Tamta underlined the increasing role of specialised equipment and modern construction technologies in executing complex infrastructure projects across diverse terrains. Referring to challenging tunnel projects in Uttarakhand, he noted how advanced machinery has transformed execution capabilities, while also acknowledging the rapid evolution of Indian contractors into globally competitive infrastructure companies. Recognising excellence through industry awards, he said, motivates organisations to continually raise performance standards and embrace innovation.

Meanwhile, Dr Sanjay Mukherjee, IAS, Metropolitan Commissioner, MMRDA, highlighted that infrastructure development must increasingly focus on integrated urban mobility. Reflecting on Mumbai’s engineering journey – from its historic underground utility network to the Coastal Road and other transformative projects – he underlined that future infrastructure planning must seamlessly integrate roads, metro systems and public transport to create efficient, multimodal cities.

Uttar Pradesh takes centrestage

One of the highlights of the second day was Uttar Pradesh’s comprehensive presentation on its infrastructure-led industrial transformation.

Srihari Pratap Shahi, IAS, Additional CEO, Uttar Pradesh Expressways Industrial Development Authority (UPEIDA), demonstrated how the state’s expanding expressway network is evolving into a catalyst for industrial development through integrated manufacturing and logistics clusters. Expressways, he noted, are no longer merely transport corridors but engines of economic competitiveness.

Building on this narrative, Deeksha Jain, IAS, Additional Chief Executive Officer, Uttar Pradesh State Industrial Development Authority (UPSIDA), showcased the state’s rapidly expanding industrial ecosystem supported by extensive expressway connectivity, dedicated freight corridors, airports, industrial townships and investor-friendly policies. She highlighted Uttar Pradesh’s strong manufacturing growth, expanding industrial land bank, plug-and-play infrastructure and increasing use of digital governance to facilitate investments.

Further underlining the significance of the platform, Deepak Kumar, IAS, Infrastructure & Industrial Development Commissioner, Government of Uttar Pradesh, remarked, “RAHSTA provides an excellent platform for states to showcase our infrastructure progress and investment ecosystem. Uttar Pradesh has transformed significantly over the past decade, backed by more than 34 investor-friendly industrial policies, and platforms like RAHSTA help communicate these developments to industry stakeholders from across the country.”

Ideas that shaped the industry conversation

The two-day conference featured seven panel discussions, each examining a critical dimension of India’s evolving roads and highways sector.

The opening discussion on ‘Financing Roads & Highways in a Capital-Constrained Era’ brought together experts from Cube Highways, NIIF, SBI Capital Markets, Centrum Capital and Bandhan Infra Fund, who examined how the financing landscape is changing. Discussions revolved around asset monetisation, InvITs, institutional investments and new funding structures, with panellists agreeing that better project preparation, transparent governance and predictable returns will be crucial for attracting long-term capital into infrastructure.

Attention then shifted to execution realities during the panel on ‘Contractors’ Perspective: Execution Realities, Risks & the Quality Imperative.’ Representatives from GHV Infra Projects, PNC Infratech, NCC and Maccaferri candidly discussed the challenges of delivering projects amid contractual complexities, land acquisition delays, rising costs and tight timelines. While execution pressures remain significant, the discussion reinforced that better collaboration across the project value chain is essential for achieving both speed and quality.

Day 2 opened with a technically rich discussion on ‘Designing Roads for Sustainability, Durability & Climate Resilience’. Experts from CSIR-CRRI, IIT Bombay, IIT Madras, Zydex Group and SRMB Steel explored advanced pavement technologies, recycled materials, climate-resilient designs and scientific construction practices that can significantly improve durability while lowering lifecycle costs. Sustainability, they agreed, must become an integral part of road design rather than an afterthought.

The subsequent session on ‘Bridges & Tunnels: Complex Engineering, Safety & Future Readiness’ highlighted the growing complexity of India’s infrastructure projects. Panellists discussed advances in structural engineering, digital monitoring, risk management and safety practices that are enabling the successful delivery of increasingly ambitious bridge and tunnel projects across the country.

Technology remained a recurring theme during the discussion on ‘Technology as a Risk-Mitigation Tool for Developers & Investors’. Experts explained how AI, BIM, drones, predictive analytics, digital twins and intelligent monitoring systems are helping improve project planning, minimise execution risks, strengthen quality assurance and enhance asset management throughout the infrastructure lifecycle.

The construction equipment panel brought together leading industry experts to examine how technology, sustainability and digitalisation are redefining construction equipment in an era of rising cost pressures. Discussions centred on enhancing productivity, reducing lifecycle costs and preparing the industry for India’s infrastructure ambitions leading up to 2047.

The conference concluded with an engaging CXO Forum on ‘Rebuilding Confidence in India’s Roads & Highways Sector’, where senior industry leaders emphasised that stronger governance, better project preparation, digitalisation, transparent contracting and closer public-private collaboration will be essential to sustain India’s infrastructure growth over the coming decades.

Technology and recognition under one roof

Beyond the conference halls, RAHSTA Expo reflected the technological transformation underway across India’s road infrastructure ecosystem. Leading equipment manufacturers, technology companies and material suppliers showcased advanced construction equipment, intelligent digital platforms, pavement technologies, structural materials and productivity-enhancing solutions designed to improve project efficiency and asset performance. The exhibition created valuable opportunities for contractors, consultants, government agencies and project developers to evaluate new technologies while interacting directly with solution providers.

The event also served as a celebration of excellence through the RAHSTA Awards 2026, which recognised outstanding achievements across road construction, contracting, materials, equipment, technology, safety, sustainability and infrastructure development. Presented by Minister Tamta, the awards honoured organisations that are setting new benchmarks for quality, innovation and execution across India’s roads sector.

RAHSTA Expo 2026 also received extensive support from across the infrastructure ecosystem. Alongside leading corporate sponsors, the event was backed by industry bodies including the Builders Association of India (BAI), Construction Equipment Rental Association (CERA), Consulting Engineers Association of India (CEAI), International Road Federation (IRF), CSIR-CRRI, CILT India, All India Transporters Welfare Association, Hydraulic Trailer Owners Association (HTOA), Gujarat Contractors Association, Bitumen Forum, Fluid Power Society of India, Indian Institute of Material Management, Ministry of Ports, Shipping and Waterways, Gati Shakti Vishwavidyalaya and Mumbai First, reflecting the industry’s collective commitment to advancing India’s road infrastructure.

As the curtains came down on the two-day event, one message resonated throughout the conference: India’s highways story is entering a new chapter. While expansion will continue, the future will increasingly be defined by smarter planning, stronger partnerships, digital transformation, sustainable engineering and long-term value creation. By bringing together the entire infrastructure value chain on a single platform, RAHSTA Expo 2026 once again demonstrated why it has become one of the country’s most influential forums for shaping the future of roads, highways, bridges and tunnels.

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Economy & Market

Fornnax Names Lukas Baur as Authorised Service Partner to Bolster EU Operations

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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.

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Concrete

Reimagining the Future

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From LC3 and AI-driven kilns to RDF gasification, ICR explores the full breadth of technological innovation reshaping India’s cement industry. Low-carbon materials, digital manufacturing, alternative fuels and breakthrough concrete science are collectively advancing the sector’s transition from high-emission commodity producer toward a net-zero, infrastructure-ready future.

Innovation has become the defining force shaping the future of the cement industry. As the world’s second-largest cement producer, India is witnessing rising demand driven by infrastructure development, urbanisation, affordable housing, and industrial growth. At the same time, the International Energy Agency (IEA) estimates that cement production accounts for nearly 7 per cent to 8 per cent of global CO2 emissions, with clinker manufacturing contributing the largest share, making innovation an operational necessity. The industry is therefore investing heavily in low-carbon cement technologies, artificial intelligence (AI), digital manufacturing, alternative fuels, renewable energy and carbon capture, utilisation and storage (CCUS). Innovations such as limestone calcined
clay cement (LC3), supplementary cementitious materials (SCMs), AI-driven process optimisation and automated quality control are enabling manufacturers to produce more sustainable, efficient, and high-performance cement.
According to the Global Cement and Concrete Association (GCCA), achieving net-zero emissions will require a combination of material innovation, digital transformation, circular economy practices and collaborative research, making innovation central to the industry’s long-term competitiveness and India’s sustainable infrastructure growth.

Next-generation cement
The future of cement lies in reducing its dependence on clinker-the most carbon-intensive component of cement-through the adoption of low-carbon materials and advanced blended cement technologies. Products such as Portland Pozzolana Cement (PPC), Portland Slag Cement (PSC), Portland Composite Cement (PCC), and LC3 are driving this shift by replacing clinker with SCMs like fly ash, GGBS, calcined clay and limestone.
According to GCCA, SCMs can replace 30 to 50 per cent of clinker, with some applications exceeding 70 per cent, significantly reducing carbon emissions without compromising strength or durability. These blended cements also improve concrete performance by enhancing durability, reducing permeability, and increasing resistance to chloride and sulphate attacks. As the availability of traditional SCMs declines with the decarbonisation of the power and steel sectors, the industry is increasingly exploring alternative materials and next-generation cement formulations to support long-term sustainability.
Shrivats Singhania, Deputy Managing Director, JK Lakshmi Cement, says, “Innovation is enabling the cement industry to address one of its most important challenges – producing more with fewer resources and lower emissions. Across the value chain, manufacturers are deploying technologies that simultaneously improve operational efficiency and advance sustainability goals. For example, greater adoption of alternative fuels, waste heat recovery systems, renewable energy, and digital process controls is helping reduce energy consumption and optimise resource utilisation. Data-driven manufacturing allows plants to monitor operations in real time, improve equipment reliability, minimise downtime, and reduce wastage, resulting in both environmental and economic benefits.”
“Meaningful progress is also being achieved through material innovation. The growing use of blended cements and next-generation products such as LC3 reduces dependence on clinker, the most carbon-intensive component of cement production, thereby lowering embodied carbon without compromising performance,” he adds.
Among emerging technologies, LC3 has gained global recognition as one of the most promising low-carbon cement innovations. In a standard formulation, LC3 comprises approximately 50 per cent clinker, 30 per cent calcined clay, 15 per cent limestone, and 5 per cent gypsum. LC3 can reduce CO2 emissions by up to 40 per cent compared with Ordinary Portland Cement (OPC) while delivering comparable strength and enhanced durability. Its reliance on abundant, locally available raw materials, rather than industrial by-products, makes it highly scalable and well suited to countries like India.
According to the LC3 Project, nearly 75 per cent of cement plants worldwide could adopt LC3 using existing manufacturing infrastructure, potentially reducing global CO2 emissions by over 400 million tonnes annually, if adopted at scale globally. India’s introduction of BIS standard IS 18189:2023 for LC3, coupled with its adoption in projects such as the Noida International Airport, marks a step toward commercial implementation. As demand for sustainable construction grows, LC3 is poised to become a cornerstone of low-carbon infrastructure development.

Making of a smart cement plant
The modern cement plant is rapidly evolving into a digitally connected, AI-enabled manufacturing ecosystem where data drives every aspect of production – from raw material proportioning and kiln operations to quality control, maintenance and energy management.
According to IEA, digital technologies can improve energy efficiency in heavy industries by 10 per cent to 20 per cent. Advanced process control systems in cement plants have demonstrated the potential to reduce thermal energy consumption by 3 to 5 per cent, lower electricity consumption by 2 to 10 per cent, and improve kiln throughput and clinker quality. AI-powered predictive maintenance further helps reduce unplanned equipment downtime by 30 to 50 per cent and extend equipment life by continuously analysing sensor data to detect failures before
they occur.
Jignesh Kundaria, Director and CEO, Fornnax Technology, says, “AFR is no longer viewed solely as a sustainability initiative. It has become a strategic business priority for cement manufacturers. Rising fuel costs, stricter environmental regulations, and growing pressure to reduce dependence on conventional fuels are accelerating AFR adoption across the industry. However, the success of an AFR project depends heavily on how effectively waste is processed before it reaches the kiln. Poor preprocessing can negatively impact kiln performance, fuel efficiency, and emission control systems. Inconsistent fuel
quality often forces operators to make frequent adjustments, reducing throughput and increasing energy consumption.”
Dr Kapil Kukreja, General Manager, NCCBM, says, “Variations in composition, particle size, and calorific value can lead to inconsistent combustion behaviour resulting in fluctuating heat release patterns. These fluctuations can affect process stability, temperature control and clinker quality. Additionally, incomplete combustion of RDF particles can result in increased emissions, higher unburnt carbon content, and operational difficulties within the calciner system. Higher ash and inert content of RDF can dilute the clinker quality and reduce calciner efficiency.”
Meanwhile, digital twins are allowing manufacturers to simulate entire production processes, optimise kiln performance, evaluate process changes virtually, and reduce operational risks before implementation. Automated Laboratory Information Management Systems (LIMS), coupled with online and offline XRF and XRD analysers, are delivering real-time monitoring of clinker chemistry and mineralogy, ensuring tighter quality control, lower clinker variability and more consistent cement performance.
Dr Prateek Sharma, Group Project Manager, NCCBM, explains, “Chlorides and alkalis present in RDF can lead to excess buildup and blockages in the kiln and calciner increasing the downtime of cement plants. Hence, issues with direct utilisation of RDF establishes the need for fuel conditioning and alternative utilisation approaches that can maximise the energy potential of RDF while minimising adverse impacts on plant operation. RDF gasification emerges as an efficient tool for converting solid RDF into syngas which can be used as a fuel with improved characteristics.”
Digitalisation and intelligent manufacturing will be among the most critical enablers of achieving the cement industry’s net-zero ambitions by improving operational efficiency while simultaneously reducing energy consumption and greenhouse gas emissions, confirms a GCCA report.

From research to reality
While the cement industry has made remarkable progress in developing breakthrough technologies, the transition from laboratory research to large-scale commercial deployment remains one of its greatest challenges. The successful adoption of innovations such as LC3), CCUS, advanced alternative fuels, green hydrogen and novel SCMs depend not only on technical feasibility but also on economic viability, regulatory support, raw material availability, and market acceptance.
Veerendra Jamdade, CEO and Founder, Vritti Solutions, states, “The cement industry has a market that is constantly in flux, due to factors such as infrastructure investment, seasonality of demand, fuel costs, building activity by region and general economic cycles; therefore, having accurate forecasts is very important in this type of market. Traditional ERP systems are primarily data repositories with limited analytic functionality; thus, they capture transactional and operational information but generally lack advanced analytical capabilities for converting captured data into actionable information. This
affects everything from demand forecasting and inventory planning through procurement and production scheduling.”
According to IEA, technologies that are still at the demonstration or early commercial stage-including CCUS and next-generation low-carbon binders-are expected to contribute nearly 40 per cent of the emissions reductions required for the global cement sector to achieve net-zero emissions by 2050, underscoring the importance of accelerating their scale-up. This requires robust R&D ecosystems, stronger collaboration between cement manufacturers, research institutions, technology providers,
equipment suppliers, and policymakers, as well as supportive standards and financial incentives to reduce investment risks.
Ashutosh Pandita, Director – Head, Cement Business, TKIL Industries, elaborates, “The cement industry’s most transformative innovation today is the increased use of alternative fuels and raw materials (AFR), supported by advanced feeding systems and process technologies that are driving both operational efficiency and decarbonisation. Looking ahead, oxyfuel combustion and carbon capture technologies remain underappreciated but hold immense potential for enabling deep reductions in carbon emissions and accelerating the industry’s journey towards net-zero production. By 2030, cement manufacturing is expected to become significantly more sustainable, energy-efficient, and technology-driven, with widespread adoption of AFR, low-clinker cement technologies, greater digitalisation and automation, and the early commercial deployment of carbon capture solutions, all supported by stronger industry collaboration and a shared commitment to achieving long-term sustainability goals.”
In India, organisations such as the National Council for Cement and Building Materials (NCCBM), leading academic institutions, and major cement companies are working together to develop and validate emerging technologies, while the introduction of standards such as IS 18189:2023 for Limestone Calcined Clay Cement (LC3) marks a significant step towards commercial adoption. However, challenges such as high capital investment, long validation cycles, limited infrastructure for technologies like CCUS, fluctuating availability of alternative raw materials, and customer acceptance continue to slow implementation. Bridging the gap between research and commercial reality will therefore require sustained investment in innovation, knowledge-sharing, pilot projects, policy support, and industry-wide collaboration to ensure that promising technologies evolve into scalable, economically viable solutions capable of transforming the future of cement manufacturing.

Creating a green future
Clinker production will increasingly rely on low-carbon technologies such as LC3, high-volume SCMs, AFR, renewable energy, waste heat recovery, and eventually CCUS, enabling manufacturers to significantly reduce their environmental footprint.
Achieving net-zero concrete by 2050 will require a combination of clinker substitution (around 37 per cent of cumulative CO2 reductions), carbon capture technologies (approximately 36 per cent), and improvements in thermal efficiency, renewable energy, and circular economy practices.
Industry Expert SA Khadilkar comments, “Customer requirements are a key driver of innovation in the cement industry, influencing product development, process improvements, sustainability initiatives, and digital solutions. Innovation is most effective when it addresses real market needs, particularly in areas such as performance, durability, and application-specific requirements. Around a decade ago, ACC and Ambuja Cements (now Adani Cement) recognised this shift and introduced performance-oriented blended cement brands with enhanced durability, reduced water penetration, and OPC-like properties. Their success encouraged other major cement manufacturers to develop specialised cement brands with unique performance characteristics, demonstrating how product innovation has evolved to meet changing customer expectations.”
“Ultimately, customer expectations have transformed innovation from a technology-driven exercise into a market-driven strategy, ensuring that new developments create measurable value across the construction value chain,” he adds.
India is expected to add nearly 500 million square metres of urban built-up area by 2030, driving sustained demand for greener, more durable, and higher-performing construction materials, according to NITI Aayog. Meeting this demand will require cement manufacturers to evolve from commodity producers into integrated providers of sustainable building solutions, supported by data-driven manufacturing, collaborative R&D, customer-centric product innovation, and circular resource management. The cement plant of tomorrow will therefore be defined not only by its production capacity but also by its ability to manufacture smarter, cleaner, and more sustainable construction materials that support India’s ambitious infrastructure and climate goals.

Conclusion
The path ahead is clear in its direction, if not yet in its pace. India’s position as the world’s second-largest cement producer, combined with its infrastructure ambitions and its 2070 net-zero commitment, makes this transition both urgent
and consequential.
What this article has made evident is that no single technology will carry the industry to net zero. LC3 addresses clinker dependency. Digital manufacturing addresses efficiency and waste. Alternative fuels address fossil fuel dependence. CCUS addresses the residual process emissions that no other lever can reach. Each is necessary. None is sufficient alone. The industry’s task is to advance all of them simultaneously, at a pace that matches the scale of the challenge.
The plants that will build tomorrow’s highways, airports and homes will need to do so with a fraction of today’s carbon footprint.

Innovations in cement and concrete

  1. Carbon mineralisation in concrete: A 2026 peer-reviewed study in the Journal of the American Ceramic Society by MIT’s Masic Lab and CarbonCure Technologies used in-situ Raman microspectroscopy to show that CO2 injected during cement mixing triggers a three-stage hydration sequence, producing a more uniform microstructure with approximately 13 per cent higher early strength while permanently sequestering carbon within the concrete matrix.

Source: www.carboncure.com

  1. Zero-clinker geopolymer blocks: Theseus Development manufactures geopolymer blocks using upcycled aluminosilicate waste from quarries and mines through an inorganic polymerisation process, achieving up to 80 per cent lower embodied carbon compared to conventional cement blocks. An interlocking block design reduces mortar requirements, lowering construction costs while eliminating clinker entirely from the production process.

Source: www.rmi.org

  1. 3D-printed basalt fibre grids: Austrian startup Fiber Elements, founded in 2023, uses robotically wound continuous basalt fibres arranged into three-dimensional reinforcement grids that replace steel in concrete structures. The resulting composites are three times stronger than steel, weigh two-thirds less, resist corrosion entirely and reduce CO2 emissions by up to 70 per cent compared to conventional steel-reinforced concrete.

Source: www.eitmanufacturing.eu

  1. Self-healing concrete: Dutch company Basilisk leads commercial deployment of bacteria-based self-healing concrete, with licensed production now active in Japan and a highway viaduct pilot planned for 2026. Dormant Bacillus bacteria embedded in the mix activate upon crack formation, metabolising nutrients to precipitate calcium carbonate that autonomously seals fractures. The global self-healing concrete market is projected to grow significantly through 2031, driven by green building mandates and infrastructure agencies targeting lower maintenance costs and extended structural life.

Sources: www.thelegaljournalontechnology.com and www.mordorintelligence.com

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