In India itself, seven major M&A deals have been announced or completed in the last three years in the cement sector involving a total capacity of 41 million tonne (10 per cent of total installed capacity) and a value of US $4.3 billion. No, this is not an original discovery by us, we are only quoting from a recent report by a reputed investment banking group. If the scale and urgency of this phenomenon sounds rather unusual, it may be worth rationalising that the desire to consolidate has always been driven by the ultimate goal of acquiring more and more pricing power. This is what we term as the unending hunger for concentration.
In one of our editorial analyses last year titled?Shortcut to growing Bigger?, we had critiqued this trend in the context of the great big global cement merger of our times, between Lafarge and Holcim. We had also questioned the reality of value creation through such global mergers for local commodities like cement. We had also said that it is not necessary that the biggest companies thrive, but it is the ?fittest? (a la Charles Darwin?) who will prosper. In addition, our submission was that such massive mergers routinely chase mirages of value creation through blindsided cost-reduction measures, and therefore, while being dubiously beneficial to shareholders, these are certainly value destroying for other stakeholders like customers and employees. Read this in the contemporary context of sustainable management philosophies, and you will know that this does not make for a story with a happy ending.
Why are we revisiting these postulates now? Because, the Lafarge-Holcim merger has now been consummated, the merged entity has been listed in Zurich and Paris stock exchanges since July 2015, and meanwhile, another global merger involving Heidelberg and Italcementi has been approved – and it is time to take stock of these stocks! Both Market Capitalisation and Equity Price of Lafarge Holcim have nosedived during this period, with the shares losing 38 per cent in the last one year.
Markets are unforgiving examiners of companies? performances and even factor in the expected outcomes of management actions being planned. So, leave alone the employees and customers, even the shareholders have given an unequivocal thumbs-down to this merger. What this essentially means is that there is a confidence deficit in the ambitious cost-reduction plans announced by the management during merger. And, in case you hadn?t noticed, the merger has not caused even a kilogram of concentration in India, since the whole of Lafarge India?s business is now having to be divested in a controlled manner to one of the smaller players.
Even as all this dust is settling down on the famous merger of mergers, the proposed amalgamation of Heidelberg and Italcementi has been given the go-ahead. As of now, we have no idea what this will achieve, apart from rewriting the global top ten list of cement companies, which to my mind is immaterial, given that the markets are very very national/local. The lesson for all stakeholders is to watch these moves very carefully, and not get carried away by hyperbole of any kind.
There is however, one positive development is supporting the appetite for consolidation in the cement sector in India. The government has gone the extra mile by amending the MMDR Act to give space to cement mergers by allowing transfer of mines obtained through non-auction routes, and make some extra money on the side. We hope this helps the cement players in their unending pursuit of consolidation, but we also hope that in the end, all of this somehow, also helps the customers get better products and services. Man lives on Hope.
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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