Cement markets have performed well over the past year, gaining the share market with most cement company shares looking up.
With infrastructure development in full swing in India, the cement sector stands to gain by the demand for cement in India. Markets have performed well over the past one year with Sensex delivering approximately 2.90 per cent over a one year period and almost 7.50 per cent on YTD basis.
Even as broader markets struggled to gain in double digits, three cement stocks have more than doubled in one year time frame. Kakatiya Cement Sugar & Industries Ltd (KCSI), Shiva Cement Ltd, and Deccan Cements Ltd, are the three stocks that have gained more than 100 per cent in one year time frame.
From Oct-15 to Oct-16 period KCSI has gained almost 226 per cent, Shiva Cement Ltd 147 per cent and Deccan Cement-128 per cent.
The other cement stocks that did well by generating more than 50 per cent returns over one year are Shree Digvijay Cement Company Ltd, Ramco Industries Ltd, OCL India Ltd, Burnpur Cement Ltd, Sainik Finance & Industries Ltd, Century Textiles & Industries Ltd, Heidelberg Cement India Ltd, Mangalam Cement Ltd, and Barak Cement Ltd.
(Source: PM)
ICICI Direct is bullish on UltraTech Cement and has recommended buy rating on the stock with a target price of Rs 4,600 in its research report. UltraTech Cement announced its Q2FY17 results that are not directly comparable due to adoption of new accounting standard (IND-AS). Under the new accounting standard, the company reported sales including excise duty. Hence, optically revenues look significantly higher than estimates (Rs 6,134.6 crore as against the estimated Rs 5,502.8 crore).
After adjusting for excise duty, revenues of Rs 5,397.9 crore are in line with the estimated figure. However, the EBITDA and PAT were above estimates mainly due to lower than anticipated power cost and higher than anticipated other income (IND AS impact). Revenues during the quarter declined 2.3 per cent year-on-year (YoY) to Rs 5,397.9 crore due to 3.1 per cent YoY decline in realisation (Rs 4,828 per tonne against the estimated Rs 4,804 per tonne), partly offset by 0.8 per cent YoY growth in volumes (11.2 MT as against the estimate of 11.5 MT) EBITDA per tonne increased 17.6 per cent YoY to Rs 978 per tonne (against estimateed Rs 900 per tonne) in Q2FY17, led by lower power and fuel cost per tonne and freight cost per tonne. The cement sector is poised to witness robust growth in the coming years, led by: improving demand, slowdown in capacity addition and consolidation. UltraTech being a pan India player makes it a key beneficiary of this upturn. Further, improving realisation and the companyGC?s focus on cost rationalisation is expected to aid margins. With the industry-leading growth, higher margins and healthy balance-sheet, maintain our positive view with a target price of Rs 4,600 per share (at 20.0 x FY18E EV/EBITDA).
(Source: ICICI Direct)
JK Lakshmi Cement plans to raise up to Rs 500 crore through private placement for which it will seek shareholders approval. The Board shall consider issue of non-convertible debentures (NCDs) of up to Rs 500 crore, in one or more tranches, on private placement basis subject to requisite approval of the shareholders, according to the company. Part of the $4 billion JK Group, JK Lakshmi Cement operates integrated cement facilities at Sirohi (Rajashthan), Durg (Chhatisgarh), Kalol and Surat (Gujarat) and Jharli (Haryana).
At present, it produces 8.4 million tonne annually and its capacity is scheduled to go up to 12 million tonne per annum shortly.
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.
The World Cement Association (WCA) has announced SiloConnect as its newest associate corporate member, expanding its network of technology providers supporting digitalisation in the cement industry. SiloConnect offers smart sensor technology that provides real-time visibility of cement inventory levels at customer silos, enabling producers to monitor stock remotely and plan deliveries more efficiently. The solution helps companies move from reactive to proactive logistics, improving delivery planning, operational efficiency and safety by reducing manual inspections. The technology is already used by major cement producers such as Holcim, Cemex and Heidelberg Materials and is deployed across more than 30 countries worldwide.
TotalEnergies and Holcim have commissioned a floating solar power plant in Obourg, Belgium, built on a rehabilitated former chalk quarry that has been converted into a lake. The project has a generation capacity of 31 MW and produces around 30 GWh of renewable electricity annually, which will be used to power Holcim’s nearby industrial operations. The project is currently the largest floating solar installation in Europe dedicated entirely to industrial self-consumption. To ensure minimal impact on the surrounding landscape, more than 700 metres of horizontal directional drilling were used to connect the solar installation to the electrical substation. The project reflects ongoing collaboration between the two companies to support industrial decarbonisation through renewable energy solutions and innovative infrastructure development.