The macro economic conditions indicate a sluggish market due to challenging conditions and subdued demand.
The financial results of most cement companies showed a dip in net sales and profit margins. However, the companies see a positive outlook on a long term perspective due to the government?s steps on various infrastructure segments.
Ambuja Cements
Ambuja Cements reported 45 per cent fall in its June quarter net profit at Rs 226 crore. Net sales were down eight per cent at Rs 2,493 crore (Rs 2,706 crore). Sales volume increased marginally by two per cent to 5.88 million tonne (5.79 mt) in June quarter.The decline in cement prices by 10 per cent coupled with additional depreciation of Rs 22 crore led to lower profit, according to the company. Its logistics cost was up five per cent at Rs 715 crore (Rs 681 crore) largely due to increase in railway freight rates. The raw material cost was down marginally at Rs 217 crore (Rs 220 crore), while that of power dipped six per cent to Rs 584 crore (Rs 624 crore). Finance cost of the company increased to Rs 32 crore (Rs 20 crore).
Lower raw material prices and the company?s attempt to improve operational efficiencies helped contain the overall cost, but it could not mitigate the impact of sharp fall in cement prices in certain states, it said. Earnings before interest, tax, depreciation and amortisation was down 35 per cent at Rs 384 crore (Rs 588 crore).
Ambuja Cements expects cement demand to remain weak in the September quarter with the onset of monsoon across the country. In the short-term, the macro-economic indicators point to sluggish cement demand, it said.
However, it added, the government?s initiatives towards housing, concrete roads, smart cities and emphasis on infrastructure development should boost demand in the long run. The company will continue to focus on improving operation efficiencies, it added.
UltraTech Cement
Ultratech Cement reported a 6 per cent fall in consolidated net profit at Rs 591 crore for the first quarter ended June 30, 2015-16. The group firm had posted net profit of Rs 628 crore in the year-ago period.
Its consolidated net sales rose by 6 per cent to Rs 6,372 crore in April-June quarter of 2015-16, from Rs 5,989 crore in the same quarter of 2014-15 fiscal, UltraTech said in a filing to the BSE. During the quarter under review, cement and clinker sales stood at 12.14 million tonne against 11.70 mt, it said.
"Energy costs improved by 7 per cent. The reduction in fuel prices was partially offset by the increase in railway freight. Input prices remained stable, except for the rise in royalty for limestone and levies under the Mines and Minerals (Development & Regulation) (MMDR) Amendment Act, 2015," it added. UltraTech shareholders and creditors have approved the firm?s acquisition of Jaiprakash Associates Ltd?s (JAL) cement units at Bela and Sidhi in Madhya Pradesh that have a cement capacity of 4.9 million tonne per annum (MTPA) and a thermal power generation capacity 180 MW TPP, the company said.
"The Competition Commission of India has already approved the transaction. The transaction is now subject to approval from the High Court and getting all regulatory approvals," it added. UltraTech has also commissioned 15 MW waste heat recovery system, taking the company?s total power generation capacity from waste heat recovery to 48 MW.
ACC Ltd
ACC reported a 45 per cent drop in its consolidated net profit at Rs 133.5 crore for the second quarter ended June 30, on account of challenging market conditions and subdued demand. The firm had posted a net profit of Rs 243.2 crore in the corresponding quarter a year-ago, it said in a regulatory filing.
Total consolidated income fell marginally by 1.5 per cent to Rs 3,015.3 crore in April-June quarter from Rs 3,059.9 crore in the same quarter of 2014 fiscal, it added. The company attributed the decline in net profit to ?challenging? market conditions.
"Overall construction activity remained dull with weak expenditure on infrastructure and housing sectors leading to lower demand for cement. Surplus capacity in the industry heightened competition and made cement prices volatile," it said.
During the quarter, the company?s cement sales fell by 2.4 per cent to 6.20 million tonne (mt) from 6.35 mt in the year-ago period.
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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