Economy & Market
GST regime is full of challenges and needs resilience
Published
7 years agoon
By
admin
Endorsed as "Good & Simple Tax", Amman Devralia, Executive Director, KHD Humboldt Wedag, has a high expectation that it will buoy the Indian economy and bring the informal sector into the formal sector. In an interview with Nitin Madkaikar, Devralia reiterates its success will depend on the readiness of the entire supply chain (suppliers, distributors, retailers, logistics partners etc.) to adopt the regime. Is the GST regime conducive as it described before the launch on July 1, 2017?
GST has been endorsed as "Good and Simple Tax". ‘Good’ because it minimises the cascading effect of taxes (i.e., levying of tax on things that have already been taxed), thereby reducing the cost of doing business, and ‘Simple’ as it replaces multitude of indirect taxes, thereby increasing ease-of-doing business.
There are huge expectations that the biggest indirect tax reform will boost the Indian economy in the long run and huge shift will be seen from unorganised to organised sector. However, a period of three months is too short to come to a conclusion.
The fundamental aspect of GST is the seamless flow of input tax credit along the entire value chain, wherein credit of taxes paid on inputs at each stage is available in the subsequent stage of value addition, thereby making GST essentially a tax only on value addition at each stage. The ability to claim input tax credit under the GST regime depends on timely compliance and matching of data filed by the parties along the entire supply chain. Any lapse on part of the supplier may lead to denial of input tax credit in the hands of the recipient, thereby casting an additional burden on the recipient to ensure timely compliance by the supplier. As a safeguard, two-stage payment mechanism is being followed by the recipient wherein the basic portion is paid upfront to the supplier and tax portion only after reconciliation of data filed in the respective GST returns.
Some of the concerns includes:
a) readiness of the entire supply chain;
b) un-interrupted connectivity to GST Network;
c) increased level of compliance and reporting on a monthly basis. Reports say that three returns have to be filed each month. Is this posing any operational problem/s in the supply chain?
Large entities were filing at-least three returns each month under different indirect tax laws (i.e. excise return, first stage dealer return, VAT and CST return) under the erstwhile tax regime as well. The real pain area under the GST regime as compared to the erstwhile tax regime is the level of compliance and reporting required to be done on a monthly basis. Entities are required to enter invoice level details in the monthly GST returns, which is a cumbersome process. Smaller entities without the required infrastructure are finding it difficult to manually enter invoice level details and large entities are facing infrastructural bottlenecks in uploading huge volume of data. In some ways, the government has outsourced the tax compliance to businesses in order to ensure compliance along the entire supply chain. Are you satisfied with the procedures that came into force after July 1?
The design of a single IT platform – GST Network – as a common interface between the tax payers and tax authorities for the core functions of administration (like, registration, filing and processing of returns, payments and refunds), is definitely a step towards paperless regime. However, provisions with respect to self-invoicing and payment vouchers for inward supplies from unregistered vendors, issuance of advance receipt vouchers on receipt of advances from customers, etc., entails additional paper work. Further, the ongoing glitches in the GST Network has been disappointing and raises doubts about the operational capacity of the GST Network, which is the foundation for paperless regime. The three months being seasonally weak for the industry, what was the impact on business compared with the past weak seasons?
As per industry reports, cement production witnessed a decline of 3.9 per cent in Q1FY17. Cement production stood at 72.67 million tonne (MT) in Q1FY17 as compared to 75.7 MT in Q1FY16. The decline was due to low inventory addition in the real estate and housing sector (accounting for about two-third of the total cement consumption in India), as the regulations and compliances under newly implemented Real Estate (Regulation and Development) Act, 2016 – RERA, made the developers cautious. With RERA implementation to be completed by the end of Q2FY17, clarity on the impact of GST on the real estate and housing sector coupled with government’s initiatives towards building affordable housing should eventually drive the demand for cement from the real estate and housing sector. Also, public infrastructure development lead by execution of smart cities and national highways projects across the country should drive the demand for cement from the infrastructure and construction sector in the next quarters. Has the need for working capital risen, given that refunds are still locked with exchequer?
Yes, under the erstwhile tax regime, exporters enjoyed upfront tax exemption on purchases against concessional tax forms, which is not available under the GST regime. Under the GST regime, GST paid on inward supplies is required to be claimed as refund by the exporters. However, due to glitches in the GST Network, the deadline for filing GST returns for July 2017 (the first month under the GST regime) has been extended twice, with GSTR-3 now required to be filed as late as November 10, 2017. The extension in filing GST returns for the first and therefore subsequent months means delay in processing of refunds by the authorities thereby increasing the requirement for additional working capital. Do you think GST regime will attract investment in your end use industry?
The demand for cement is driven by real estate and housing sector, accounting for about two-third of the total cement consumption in India. The other major consumers of cement include infrastructure, commercial construction and industrial construction. Given the government’s initiatives towards building affordable housing and public infrastructure development, GST regime will certainly attract investment in the real estate and construction sector. Further, bringing the real estate under the ambit of GST can boost the investment in the sector. Is there any other information you wish to share.
The GST regime aims to widen the tax base by bringing the informal sector under the ambit of formal economy resulting in higher tax revenues for the exchequer, gradually allowing a move towards fewer slabs and lower GST rate. The transition has just started and the ride to make GST a "Good and Simple Tax" will be long and full of challenges requiring resilience on part of government and businesses. The successful implementation of GST will certainly drive the Indian economy offering opportunities for growth across sectors.
Concrete
Fastest Growing Cement Companies in India
Published
6 minutes agoon
March 12, 2025By
admin
India is the world’s second-largest cement producer, with over 7 per cent of global installed capacity. The installed cement capacity in India is 553 mtpa, with a production of 298 mtpa. Ready availability of raw materials for making cement, such as limestone and coal, is a key factor aiding the growth of the sector.
Capacity addition in the cement industry is estimated at 63-70 mt between FY25 and FY26, with approximately 33-35 mt expected in FY25 alone. This is driven by an increasing spend on housing and infrastructure activities. The capacity utilisation is expected to rise to 71 per cent in FY25 from 70 per cent in FY24, backed by higher cement volumes, driven by demands in roads, urban infrastructure and commercial real estate. India’s cement production was expected to reach 457 mt by FY25, a growth rate of 5 per cent per cent year on year.
The cement industry is mainly driven by the consequential number of construction activities with growing demand and a surging need for residential complexes for the urbanised population. Further, the construction of various infrastructure projects such as airports and roads, undertaken by the Government in recent times, propels the growth of the market.
Consumption of cement has also been growing consistently on the back of rising rural housing demand. Strong expansion of the industrial sector is one of the main demand drivers for the cement industry. As a result, there is a strong potential for an increase in long-term demand. Initiatives such as the development of 98 smart cities are expected to significantly boost the sector.
Massive modernisation and assimilation of state-of-the-art technology have made cement plants energy-efficient and environment-friendly. The cement industry contributes to environmental cleanliness by consuming hazardous waste like fly ash (around 30 mt) from thermal power plants and the entire 8 million tonne of granulated slag produced by steel manufacturing units. It uses alternate fuels and raw materials through advanced and environment-friendly technologies.
JSW Cement is the only company in the list to have achieved double digit year-on-year growth of 25 per cent outperforming its peers.
Sagar Cements (SCL) acquired Andhra Cements (ACL) in 2023 at a cost of Rs.922 crore, helping
it achieve capacity guidance of 10 million tonnes per annum (mtpa) before 2025.
Star Cements ranks as the second largest in profits with an impressive growth of 34 per cent.
NCL Industries has more than doubled its growth from 2023 to 2024, outperforming its competitors.
Fastest Growing Cement Companies – Large JK Cement
JK Cement’s operations commenced with commercial production at its flagship grey cement unit at Nimbahera, Rajasthan, in 1975. Today, it is one of India’s leading manufacturers of grey cement, with an installed capacity of 20 mtpa, and one of the world’s leading white cement manufacturers, with a total white cement capacity of 1.20 mtpa and wall putty capacity of 1.2 mtpa. Its vision is to be the preferred manufacturer of cement and cement-based products that partners in nation-building. It is India’s No. 1 white cement and wall putty company and has been at the forefront of the country’s cement industry, focusing on quality, innovation and sustainability with superior products and a strong brand name.
JK white cement is sold across 43 countries around the globe. The company has a strong international presence with two subsidiaries, JK Cement
Works Fujairah FZC and JK White Cement (Africa). Over four decades, it has partnered India’s multisectoral infrastructure needs on the strength of its product excellence, customer orientation and technology leadership.
The recent acquisition of Toshali Cement for Rs.900 million marks a significant expansion into the Eastern Indian market, adding 0.6 mtpa to its cement production capacity. Toshali Cement, based in Odisha, operates two key units: an integrated unit in Koraput with a clinker capacity of 0.33 mtpa and a grinding capacity of 0.2 mtpa, and a grinding unit in Cuttack with a capacity of 0.44 mtpa. Additionally, the acquisition includes a limestone mining license for which JK Cement will pay an extra `670 million. This strategic move strengthens its footprint in a region poised for growth owing to government infrastructure projects and housing initiatives.
The company reported net sales of Rs.105.6315 billion during the financial year ending 31 March 2024, compared to Rs.90.9391 billion the previous year. Notably, it recorded a PAT of Rs.8.3064 billion, a significant increase from the
Rs.5.2068 billion reported the previous year. This growth is reflected in an improved EPS of `107.5, up from `65.06 in the preceding financial year.
Ultra Tech Cement
Ultra Tech Cement is the cement flagship company of the Aditya Birla Group and the largest manufacturer of grey cement, RMC and white cement in India. It provides a range of products that caters to the needs of various aspects of construction, from foundation to finish, under five business verticals: Grey Cement, White Cement, Concrete, Building Products and Ultra Tech Building Solutions.
It is the only cement company globally (outside China) to have 100+ mtpa of cement manufacturing capacity in a single country. Its business operations span the UAE, Bahrain, Sri Lanka and India. It has a consolidated installed capacity of 132.45 mtpa and 23 manufacturing units, 28 grinding units, one clinkerisation unit and eight bulk packaging terminals. It is the third-largest cement producer in the world, excluding China.
In the white cement segment, Ultra Tech operates under the brand name Birla White. It has one white cement unit and three wall care putty units, with a current capacity of 1.98 mtpa. With 185+ RMC plants in 85+ cities, Ultra Tech is the largest manufacturer of concrete in India. A founding member of the Global Cement and Concrete Association (GCCA), it is a signatory to the GCCA Climate Ambition 2050 and has committed to the Net Zero Concrete Roadmap announced by GCCA. It is focused on accelerating the decarburisation of its operations.
The acquisition of a 1.1 mtpa grinding unit from India Cements for Rs.3.15 billion marks a strategic move to strengthen its market presence in Maharashtra. The unit, located in Parli, comes with a captive railway siding, enhancing logistics and operational efficiency. This acquisition is part of the company’s broader plan to expand capacity, as it also announced a Rs.5.04 billion investment to expand its Parli and Dhule units. With these expansions, it aims to cater to future growth in the region, aligning with its target to boost total capacity to nearly 200 mtpa by FY26.
Total revenue jumped 12 per cent to Rs.686.41 billion for FY2023-24, from Rs.612.37 billion in FY2022-23. Profit before tax was Rs.93.88 billion, compared to Rs.72.62 billion the previous year. Net profit
was Rs.69.05 billion, compared to Rs.49.51 billion for 2022-2023.
Shree Cement
Shree Cement is one of India’s top three cement producers, with operations spanning both the domestic and international markets. It is known for its range of cement products, including OPC, PPC and clinker. With a focus on efficiency and sustainability, it has positioned itself as one of the lowest-cost producers in the country. Its commitment to innovation is reflected in the diverse range of solutions it offers for construction, from housing to large-scale infrastructure projects.
The company operates across India and abroad, with a total production capacity of 50.4 mtpa. It has 12 integrated cement plants and multiple grinding units, making it one of the largest cement manufacturers in the country. Its reach extends to the UAE and its expansion plans are aligned with its goal of achieving 80 mtpa by 2030. Additionally, it has invested significantly in green energy, with a power generation capacity of 474 mw, including renewable energy sources such as solar and wind.
In FY2024, Shree Cement reported robust financial performance, with a revenue of Rs.205.2 billion, representing a 15 per cent increase from the previous year. Net income for FY2024 stood at Rs.24 billion, reflecting an impressive 89 per cent growth compared to FY2023. The profit margin also increased to
12 per cent, up from 7.1 per cent the previous year. These strong financial results were driven by increased operational efficiency and higher revenues from expanding operations.
Nuvoco Vistas Corporation
Nuvoco Vistas Corporation, a part of the Nirma Group, is one of India’s leading cement manufacturers, with a strong presence in the country’s building materials industry. With a total installed capacity of 25.0 MTPA, the company operates 11 cement plants, including integrated units, grinding units, and ready-mix concrete plants across key regions such as Chhattisgarh, Jharkhand, Rajasthan, Haryana, and West Bengal. As part of its long-term expansion strategy, Nuvoco plans to increase its total capacity to 31.0 MTPA by Q3 FY27 through strategic acquisitions and greenfield expansions.
Nuvoco focuses on sustainable and innovative cement solutions, offering a premium product portfolio, including Concreto, Duraguard, and Zero M (a low-carbon cement). The company is also a key player in the ready-mix concrete (RMX) market, operating 56 RMX plants nationwide. As part of its cost optimisation initiative (Project Bridge 2.0), the company continues to enhance operational efficiencies, focusing on reducing power and fuel costs while improving its distribution network.
As part of its growth strategy, Nuvoco is leveraging its recent Vadraj Cement acquisition, which will add 6.0 MTPA of cement capacity and 3.5 MTPA of clinker capacity, strengthening its position in Gujarat and Maharashtra. This acquisition will diversify its footprint across North and West India, making it the third-largest player in the Western market. The company also benefits from strong backward integration, with captive limestone mines, power generation capabilities, and a 50 MW renewable energy portfolio, including waste heat recovery systems (WHRS) and solar power.
For 9M FY25, Nuvoco Vistas reported a total revenue of Rs.73.3 billion, with an EBITDA of Rs.8.35 billion. Cement sales volume stood at 4.7 million tons in Q3 FY25, reflecting a 16% YoY growth. With a strong focus on capacity expansion, premiumisation, and sustainability, Nuvoco is well-positioned to capitalise on infrastructure demand and market growth, further strengthening its cost efficiency and brand leadership.
Fastest Growing Cement Companies – Medium
JSW Cement
Part of the diversified $ 23 billion JSW Group, JSW Cement is India’s leading green cement company with a current capacity of 19 mtpa and is on a mission to support the country’s growth in core economic sectors with speed and innovation, delivering the best-quality green cement to customers. Its vision is to build a self-reliant India by boosting infrastructure and the fast-growing economy through projects setting new benchmarks.
The company’s world-class facilities and technological advancements give it the firepower to keep expanding to newer geographies around the country and target new customer segments. It has manufacturing units in Vijayanagar, Karnataka; Nandyal, Andhra Pradesh; Salboni, West Bengal; Jajpur, Odisha; Dolvi, Maharashtra and Fujairah, UAE, among others. With a strong presence in 11 major states in India, it is expanding its footprint in the country and overseas by adding to its existing five active state-of-the-art manufacturing plants and three mines, and intends to increase its production capacity. It is targeting 25 mtpa production by 2023 and all its current business investments are driven to achieve this goal.
JSW Cement is present across the value chain of building materials comprising cement, concrete and construction chemicals. This gives it a unique advantage to cater to the diverse needs of the construction industry with premium, high-quality and eco-friendly products. Its subsidiary, Shiva Cement, is currently investing over `15 billion in a 1.36 mtpa clinker unit to be established in Sundergarh, Odisha. The project includes setting up a 1 mtpa grinding unit and associated facilities.
During FY2023-24, the company reported total income of `59.5189 billion, compared to `49.0114 billion in FY2022-23. PAT was reported at `2.2092 billion in FY2023-24, compared to `2.4975 billion the previous year.
Star Cement
Star Cement is the No. 1 cement brand in India’s Northeast and one of the fastest growing cement brands in West Bengal and Bihar. Its state-of-the-art cement plants bring together innovation and technology to provide high-quality cement, focusing on best-in-class sustainable construction. It has established itself as the most accredited brand in the region for providing high-quality cement and fair pricing.
The company has gained a prominent
position in the Indian construction industry for its premium quality cement, focusing on sustainable development, to meet today’s challenging building material needs and home-building aspirations of millions of customers, supported by pioneering marketing initiatives. It is powered by three cement plants located at Lumshnong in Meghalaya, Sonapur-Guwahati in Assam and Mohitnagar Jalpaiguri in West Bengal, making it one of the largest manufacturers of cement in eastern India. It is proud to have consistently earned recognition and top awards in the construction industry.
The company’s product range for construction includes OPC 43 and 53 grades, PPC and Portland slag cement (PSC). Anti-rust cement (ARC) is another marquee product in the value-added segment in line with evolving customer and construction needs. Known for competence and quality, these products are sought after by customers, engineers, dealers
and contractors.
Star Cement recorded a total revenue of Rs.29.11 billion in FY2023-24, compared to Rs.27.05 billion in FY2022-23. It reported an EBITDA of Rs.5.83 billion in FY2023-24, compared to Rs.5.2 billion the previous year. PAT stood at
Rs.2.95 billion, compared to Rs.2.48 billion in FY2022-23. Projected EPS is Rs.7.3 in FY 2023-24, compared to Rs.6.1 the previous year.
Orient Cement
Orient Cement is a prominent player in India’s cement industry, with a strong presence across key regions. It manufactures and markets high-quality cement under the brands Birla A1 Premium and Birla A1 Strong Crete. It operates three integrated cement plants and a grinding unit, catering to markets in Maharashtra, Telangana and Karnataka. With a strategic focus on sustainability, it is also making strides in reducing its carbon footprint and adopting cleaner energy sources.
In addition to domestic operations, the company has been exploring growth opportunities in new geographies, aiming to strengthen its market position across India. Its efforts towards product innovation and capacity expansion have helped it capture a larger market share in competitive regions. Its strategic investments in modernising manufacturing facilities are expected to improve operational efficiency and increase output. A customer-centric approach and strong distribution network have also played a key role in maintaining its competitive edge.
In FY2024, Orient Cement demonstrated steady financial performance, reporting a revenue of Rs.7.2058 billion for Q2, which marked a 17.11 per cent year-on-year increase. Net profit for the same period stood at Rs.246.3 million, a significant improvement compared to a loss of Rs.95 million in the previous year. This reflects its focus on cost management and operational efficiency. For Q3 FY24, revenue increased to Rs.7.5131 billion while net profit surged by 63.5 per cent to Rs.449.9 million.
JK Lakshmi Cement
JK Lakshmi Cement, a subsidiary of the JK Organisation, is a key player in the Indian cement industry, with an installed capacity of 16.5 MTPA. The company operates integrated cement plants in Rajasthan and Chhattisgarh, along with grinding units in Gujarat, Haryana, Odisha, and West Bengal. Its subsidiary, Udaipur Cement Works Ltd. (UCWL), contributes an additional 4.7 MTPA, enhancing its overall market presence.
JK Lakshmi is on track to achieve 30 MTPA capacity by 2030 through strategic greenfield and brownfield expansions.
The company offers a diversified product portfolio, including blended cement, ready-mix concrete (RMC), and autoclaved aerated concrete (AAC) blocks. It has also launched low-carbon and premium cement products, catering to growing sustainability demands. JK Lakshmi is investing heavily in renewable energy, with 48% of its power sourced from WHRS and solar. The company’s focus on cost leadership has enabled it to maintain one of the lowest cement production costs in the industry.
As part of its expansion strategy, JK Lakshmi Cement is developing additional grinding units in Surat (1.35 MTPA) and Prayagraj, Madhubani, and Patratu (3.4 MTPA combined). Additionally, it is expanding clinker capacity at its Durg plant (2.3 MTPA) and foraying into the North Eastern market with a clinker unit (1.0 MTPA) and a cement grinding unit (1.5 MTPA) in Assam. These projects will strengthen its market reach and logistics efficiencies, ensuring long-term growth and profitability.
For 9M FY25, JK Lakshmi Cement reported a total revenue of `42.95 billion, with an EBITDA of `5.44 billion. Despite volume pressures, the company remains focused on cost efficiency, premiumisation, and market expansion. Its Project Bridge 2.0 initiative is driving operational improvements, helping JK Lakshmi maintain its position as a cost-efficient and growth-driven cement producer in India.
Fastest Growing Cement Companies – Small
Udaipur Cement Works
Udaipur Cement Works (UCWL) is one of India’s leading cement manufacturers, with its roots in Udaipur, the city of lakes in Rajasthan. A subsidiary of JK Lakshmi Cement (JKLC), it is a manufacturer and supplier of cement and cementitious products with manufacturing facilities in Rajasthan. With an integrated cement manufacturing unit with an installed cement production capacity of 2.2 mtpa, it manufactures a range of cement, including PPC, OPC and clinker.
The company is relentlessly focused on product quality, customer satisfaction and innovation, which has helped push boundaries and tap the immense potential for development in the infrastructure and construction sectors in India. Its philosophy is based on sustainable growth and a developmental framework that works for a better and happier future. Working principles have been aligned to contribute to the nation’s commitment to meet the UN Sustainable Development Goals and it upholds the highest levels of system standards, such as the ISO Certification for Environment (14001), Occupational Health and Safety (45001), Energy (50001), and Quality Management (9001) systems. It has also inventoried its carbon and water footprint as per ISO 14064 – 1 and ISO 14046.
The company reported a total income of Rs.11.7436 billion during FY2023-24 compared to Rs.10.3226 billion in FY2022-23. It posted a PAT of Rs.628.8 million for FY 2023-24 as against Rs.351 million the previous year and EPS of Rs.1.25 compared to Rs.1.15.
On July 31, 2024, as part of its amalgamation plan, JK Lakshmi Cement Ltd’s board approved the merger of its three subsidiaries – Udaipur Cement Works Ltd, Hansdeep Industries & Trading Co and Hidrive Developers and Industries Pvt Ltd – with itself.
Shree Digvijay Cements
Shree Digvijay Cements is one of India’s pioneers in manufacturing cement, having started operations in 1944 in the coastal township of Digvijaygram (Sikka) in Jamnagar district,Gujarat. Since 2019, it is part of True North, formerly known as India Value Fund Advisers (IVFA). The company’s licensed capacity stands at 3 mtpa, housing a fully automatic modern cement plant which is ISO 9001, ISO 14001 and OHSAS 18000 certified.
The company is one of the key exporters of cement and cement clinker throughout the world, for which it received the Certificate of Honour of Export House from the President of India. It has a Gujarat-wide network of over 1,000 channel partners selling cement under the brand name Kamal Cement. In addition, it is among the earliest accredited companies awarded with the prestigious license from the American Petroleum Institute (API) for manufacturing oil well cement – API 10A Class G HSR cement. It has been a trendsetter in providing superior quality ordinary and special Portland cement. Its commitment to sustainable development and
high ethical standards in business dealings have been appreciated.
The company offers a unique combination of product quality and customer-tailored logistics solutions through a combination of road, railways and captive seaport that can harbour and handle 3,000 to 5,000 DWT vessels along the jetty. Safe anchorage for 5,000 to 35,000 DWT vessels is available 5 km from the port/wharf site. For safe anchorage of 50,000-100,000 DWT vessels, 20-25 m of water is available 10 km from the port site.
During FY 2023-24, the company reported net sales of 1.358 million tonne, up 7.8 per cent from 1.259 million tonne in FY2022-23. Total revenue was Rs.8.0097 billion, up 9.4 per cent from Rs.7.3192 billion in FY2022-23 and PAT was Rs.877.6 million, up 52 per cent compared to Rs.577.1 million the previous year.
NCL Industries
NCL Industries is a well-established player in the building materials sector, with diversified interests in cement, RMC, hydropower and cement particleboards. It operates under the Nagarjuna Cement brand and has expanded its footprint across multiple regions in India. Founded in 1980, it has steadily grown its production capacity and product offerings, contributing significantly to the infrastructure and construction sectors.
The company’s growth is driven by its continued investment in modernisation and expansion of its production facilities. This includes efforts to improve its production capabilities in cement and allied products. Additionally, it is committed to sustainability, with initiatives to enhance energy-efficiency in operations.
In FY2024, NCL Industries achieved substantial growth in both production and sales. Cement production during Q1 FY 2024 increased by 23 per cent year on year to 751,000 tonne, while sales volumes rose to 742,000 tonne during the same period. This growth reflects the company’s strategic focus on capacity expansion and operational efficiency. With a revenue of Rs.18.7 billion for FY2024, it has solidified its market position in India’s cement industry.
Sagar Cements
Sagar Cements, a key player in the Southern and Eastern Indian cement market, operates with a total installed cement capacity of 10.50 MTPA. The company has a strong presence across Telangana, Andhra Pradesh, Odisha, Maharashtra, and Madhya Pradesh, supported by integrated and grinding units in Mattampally, Bayyavaram, Gudipadu, and Jajpur. It is backed by AvH Resources India Pvt. Ltd. (a Belgian major) and Premji Invest, holding 19.64 per cent and 10.10 per cent equity stakes, respectively.
Sagar Cements continues to invest in sustainability and cost optimisation, with 102.96 MW of captive power capacity and an increasing share of green energy, including waste heat recovery systems (WHRS) and solar power plants. In January 2025, the company commissioned a 6 MW Solar Power Plant at its Gudipadu Unit, with plans for an additional 6 MW at Dachepalli. To reduce logistics costs and improve operational efficiencies, the company has also introduced electric vehicles (EVs) for raw material and cement transportation across key locations.
As part of its growth strategy, Sagar Cements is expanding its Dachepalli plant, increasing clinker capacity from 1.85 MTPA to 2.31 MTPA and cement capacity from 2.25 MTPA to 3.00 MTPA. This project is expected to be completed by FY26, with a total investment of Rs.4.70 billion. Additionally, the company is enhancing green energy infrastructure, with 9 MW WHRS at Dachepalli and 4.5 MW at Gudipadu, ensuring long-term sustainability.
For Q3 FY25, Sagar Cements reported a total revenue of Rs.5.64 billion, marking a 16 per cent YoY decline, with cement sales volume at 1.38 million tons. Operating EBITDA stood at Rs.0.38 billion, with an EBITDA margin of 7 per cent. The company continues to focus on cost optimisation, green energy transition, and capacity expansion, positioning itself for long-term growth and improved profitability in the Indian cement market.
KCP Cement
KCP Cement, a leading cement manufacturer in South India, operates with a total installed cement capacity of 4.3 MTPA across its plants in Macherla and Muktyala, Andhra Pradesh. The company produces Grade 53 Ordinary Portland Cement (OPC) and Portland Pozzolana Cement (PPC) under the brands KCP Cement and Shreshtaa. With a strong market presence in Andhra Pradesh and Tamil Nadu, KCP Cement caters to a wide customer base, including infrastructure developers, real estate companies, and retail buyers.
The company is committed to sustainable manufacturing, with a focus on waste heat recovery, solar, wind, and hydel power to reduce its carbon footprint. KCP Cement continues to invest in energy efficiency, aiming to lower production costs and environmental impact. Apart from cement, KCP operates in heavy engineering, sugar, and hospitality, ensuring a diversified revenue base. The company is also optimising its logistics and distribution network, expanding its fleet and improving supply chain efficiency to enhance operational effectiveness.
As part of its growth strategy, KCP Cement is leveraging its engineering expertise to strengthen its market position. The company is focused on cost efficiency, product diversification, and capacity expansion to improve profitability. Additionally, ongoing investments in alternative fuels and resource efficiency are expected to drive long-term sustainability and competitiveness.
For 9M FY25, KCP Cement reported a total revenue of Rs.10.31 billion, with an EBITDA loss of Rs.0.64 billion. The company’s total expenses stood at Rs.1,068.63 crore, reflecting operational challenges. Despite short-term pressures, KCP remains committed to capacity expansion, operational improvements, and strategic investments to solidify its presence in the South Indian cement market.

An invigorating discussion amongst industry experts, on digital transformation, sustainability and cybersecurity, threw interesting insights.
The cement industry is at a crucial juncture, with digital transformation, sustainability, and automation shaping its future. The panel discussion explored key points on digitalisation, sustainability and automation, emphasising the importance of a multidisciplinary approach to modern cement manufacturing.
The webinar was moderated by Dr SB Hegde, Professor, Jain College of Engineering & Technology, Hubli; and Visiting Professor, Pennsylvania State University, USA.
Speakers included:
- Dr Hemantkumar Aiyer, VP & Head R&D, Nuvoco Vistas Corp
- Dr Raju Goyal, Executive President, Chief Technical and Sustainability Officer,
UltraTech Cement
- Dr Rizwan Sabjan, Head – Global Sales and Proposals, Process Control and Optimisation, FLSmidth Cement
- Prosenjit Dutta, Director Operations, PS Digitech-HR India
- Raghu Vokuda, Chief Digital Officer,
JSW Cement
- Sachin Vaidya, Regional GM – Digital, Process Industries, ABB
Role of digital transformation
Dr Hegde emphasised the need for integrating emerging technologies with a multidisciplinary approach to enhance cement plant efficiency. He highlighted that “understanding of systems and how to integrate them” is essential for maximising the benefits of digital tools.
Sabjan echoed this sentiment, stressing that cement plants need to embrace a cultural and mindset shift to fully leverage digital technologies. He pointed out, “Software can do wonders for the plant, but only if the workforce understands and implements it effectively.” He warned against isolated implementations, advocating for a holistic approach where departments like OT, quality control and automation work together.
Sustainability: The road ahead
With sustainability becoming a global priority, cement manufacturers must adapt to new environmental regulations and carbon reduction goals. Dr Hegde posed a critical question: “How is the cement industry moving towards sustainability, and how can plants prepare for these changes?”
Sabjan responded by highlighting the importance of long-term planning and commitment. “Often, discussions happen, but after two months, we forget about them and restart from scratch. This approach will not work. We need a structured, goal-oriented plan with defined KPIs,” he said. Sabjan emphasised the need for a systematic approach, focusing on tangible metrics such as energy savings. “If a plant aims to improve energy efficiency by five percent, it must set this as a goal and track progress,” he suggested.
The discussion also underscored the need for strong leadership to drive digital adoption. “A motivated team and a dynamic leader can make all the difference,” Dr Hegde noted.
Enhancing durability with digital tools
Strength and durability remain critical concerns in cement production. Goyal explained, “Machine learning-based lab technologies enable predictive analysis, allowing manufacturers to forecast 28-day, 7-day, and 1-day strengths before the material leaves the mill.” He also emphasised the importance of soft sensors, which “help predict strength and optimise mix design before production.”
He elaborated on the role of XRF/XRD analysis: “These tools provide elemental and mineralogical insights, allowing for quick adjustments to raw materials and ensuring consistent quality.” Furthermore, digital twins are revolutionising cement quality optimisation. “They allow us to simulate and test mix designs before implementation, reducing errors and optimising durability.”
Cybersecurity risks in IT-OT integration
As cement plants become increasingly digitalised, cybersecurity threats pose significant risks. Vaidya expressed concern that many manufacturers underestimate cybersecurity risks. “As a technology provider, I often struggle to convince cement manufacturers of the importance of cybersecurity. Some benefits are intangible but essential for plant security.”
He outlined major threats, including malware attacks, unauthorised network access, and operational disruptions. “Preventive measures include secure data transactions, network monitoring, and regular cybersecurity training for staff to minimise insider threats,” he said.
He urged cement companies to take cybersecurity seriously: “As digital transformation advances, cybersecurity is not an option—it is a necessity. Without proper security protocols, cement plants risk cyberattacks that could halt production.”
Dr Hegde agreed, adding, “People often ignore cybersecurity until they experience financial loss. Awareness must be proactive, not reactive.”
Dutta stated, “Advanced process control (APC) is a game-changer for cement manufacturing, allowing us to stabilise operations, optimise fuel efficiency, and reduce energy consumption through real-time data insights.”
He emphasised the transformative impact of real-time data analytics and advanced process control (APC) in cement manufacturing. He highlighted that APC enables manufacturers to optimise raw mix design, fuel efficiency and kiln operations through data-driven decision-making. By continuously monitoring critical parameters, APC minimises process variations, improves stability, and reduces energy consumption, leading to cost savings and enhanced productivity. Additionally, he stressed the role of predictive maintenance in preventing equipment failures, extending machinery lifespan and minimising downtime, ultimately ensuring consistent quality and operational efficiency in cement production.
Will Indian plants become fully autonomous?
With AI, robotics and digital twins transforming global cement production, the question arises: Can Indian cement plants become fully autonomous within the next 5–10 years?
Vokuda was skeptical about complete automation in the near future. “Indian cement plants will see significant automation, but full autonomy remains unlikely within a decade. A hybrid model, combining AI-powered decision-making with human oversight, is more practical.”
He highlighted key challenges: “Unlike developed nations, India’s low labour costs may make full automation less attractive. Additionally, digital twin technology in India is still in its early stages, focusing more on process twins than asset twins.”
Another challenge is data management. “AI-ML models require vast amounts of data, which necessitates ultra-low latency networks like 5G and edge computing. We are not yet at that level of technological maturity,” he explained.
Despite these hurdles, he remains optimistic: “While full automation may take longer, the industry will continue to evolve with advancements in digital twins, real-time analytics, and AI-driven insights.”
Conclusion
Experts agree that while technology holds immense potential, its successful implementation depends on cultural shifts, strong leadership, and structured execution.
Key takeaways from the discussion include:
- Integration of digital tools: Multidisciplinary collaboration is essential for successful implementation.
- Sustainability goals: Defined KPIs and a long-term approach are crucial.
- Quality optimisation: Machine learning, real-time analysis, and digital twins are improving cement strength and durability.
- Cybersecurity: As digital transformation progresses, cement plants must prioritise cybersecurity.
- Automation: While full autonomy is unlikely soon, AI and digital tools will play a growing role in decision-making.
As the industry moves forward, cement manufacturers must embrace technological advancements while ensuring resilience against cybersecurity threats and operational challenges. With the right strategies, India’s cement sector can achieve greater efficiency, sustainability, and innovation in the years to come.
ICR’s virtual panel discussion was supported by FLSmidth Cement as the Presenting Partner and ABB as the Gold Partner.
Concrete
The Science and Application of Grinding Aids
Published
19 hours agoon
March 11, 2025By
admin
Dr SB Hegde discusses the importance of grinding aids as essential chemical additives that enhance cement grinding efficiency, reduce energy consumption and improve overall cement quality in the concluding part of his article.
Grinding aids represent a critical segment of the cement additives market, driven by their ability to enhance grinding efficiency, reduce energy consumption, and improve cement quality. The market dynamics of grinding aids vary significantly across regions, influenced by economic growth, cement production capacities and regulatory environments.
Global market size and growth projections
The global grinding aids market was valued at approximately US $ 1.2 billion in 2023 and is expected to grow at a CAGR of 5.5 per cent from 2023 to 2030, reaching nearly US $ 1.8 billion by 2030.
This growth is fueled by the increasing focus on energy efficiency and sustainable cement production practices worldwide.
Rapid urbanisation and infrastructure development, especially in emerging economies, are major growth drivers. Cement producers are increasingly adopting grinding aids to address rising energy costs, reduce carbon footprints, and improve production efficiencies. For instance, grinding aids have been shown to lower energy consumption by up to 25 per cent, making them a cost-effective solution for plants facing energy price volatility.
Regional trends: Developed vs. developing markets
- Developed markets: Europe and North America represent mature markets for grinding aids. Europe, driven by stringent environmental regulations such as the EU Emissions Trading System (EU ETS), has witnessed a steady rise in the adoption of low-VOC and eco-friendly grinding aids. Leading players in these markets emphasise sustainability and compliance with regulatory frameworks, contributing to steady demand.
In North America, the focus is on productivity enhancements in large-scale cement plants, with grinding aids used to achieve finer cement grades and support blended cement production. - Developing markets: Emerging economies in Asia-Pacific, the Middle East, and Africa exhibit the fastest growth in grinding aid adoption. The Asia-Pacific region accounted for over 40 per cent of global grinding aid consumption in 2023, with countries like India, China, and Vietnam leading the way. The rapid urbanisation, rising construction activity, and increasing cement production capacities in these regions are
driving demand.
In Africa, grinding aids are gaining traction as manufacturers focus on optimising production costs in an environment of fluctuating raw material and energy prices.
Market size and adoption rate in India
India, the world’s second-largest cement producer, offers a significant growth opportunity for grinding aids. In 2023, the grinding aids market in India was valued at US$ 150 million, with a projected growth rate of over seven per cent CAGR through 2030. The adoption rate remains relatively low at smaller plants, which prioritise cost-saving over efficiency gains. However, leading manufacturers and integrated cement plants are increasingly embracing grinding aids, particularly for blended cement production.
Blended cements, such as Portland Pozzolana Cement (PPC) and Portland Slag Cement (PSC), account for more than 70 per cent of the Indian cement market. Grinding aids tailored for fly ash and slag-blended cements are in high demand, with some products delivering up to a 15 per cent increase in mill throughput and improved early strength development.
Emerging trends
- Eco-friendly formulations: The growing demand for sustainable grinding aids has prompted companies to develop low-VOC and biodegradable alternatives.
- Customised solutions: Grinding aid formulations are increasingly tailored to address specific raw material challenges and production processes, such as VRMs or high-SCM cement blends.
- Digitalisation: Smart dosing systems integrated with real-time mill monitoring are enabling optimised grinding aid usage, ensuring consistent performance across diverse production conditions.
Bridging the Trust Gap
For cement plant operators, the quality and performance of grinding aids often appear as a ‘black box.’ The lack of transparency in the formulation and quality checks of these additives has historically limited trust and widespread adoption. Grinding aid manufacturers must address this issue by fostering transparency and providing detailed insights into the testing and validation of their products. This would not only instill confidence but also strengthen collaboration with cement companies.
Grinding aid producers should provide robust documentation outlining the physical and chemical characteristics of their formulations, supported by consistent performance data from laboratory tests, industrial-scale trials, and third-party validations. This transparency is essential to demystify grinding aids’ performance and demonstrate their effectiveness across diverse operational conditions.
Emerging innovations in grinding aid chemistry
The path forward for grinding aid manufacturers lies in innovation. Recent research highlights the potential of hybrid formulations combining traditional amines and glycols with advanced polymeric additives like polycarboxylate ethers (PCEs). These hybrid products can address specific challenges such as improving grindability in blended cements containing fly ash or slag, where traditional additives often underperform. Nano-engineering of grinding aids, incorporating nanoparticles for optimised dispersion and enhanced hydration kinetics, represents another promising avenue.
Leveraging AI for optimisation
The integration of artificial intelligence (AI) and machine learning tools into grinding aid application systems is reshaping the cement industry. AI-driven systems enable real-time optimisation of grinding aid dosages by analysing mill performance data, such as power consumption, throughput, and particle size distribution. For example, a cement plant in Europe reported a 15 per cent reduction in specific energy consumption and a 10 per cent
increase in mill throughput using AI-optimised dosing systems. This innovation reduces operational variability and improves the predictability of grinding aid performance.
Expectations from grinding aid producers
The cement industry demands more than just products; it seeks partnerships with grinding aid manufacturers. Key expectations include:
1. Customised formulations: Tailored products designed for specific raw materials, clinker compositions, and mill configurations to maximise efficiency and performance.
2. Eco-friendly additives: Grinding aids with low volatile organic compound (VOC) emissions and biodegradable ingredients that align with the industry’s sustainability goals.
3. Comprehensive technical support: On-site training and technical services to help plant operators understand grinding aid chemistry, application techniques and performance optimisation strategies.
4. Advanced quality control systems: Transparent testing protocols, including real-time quality assurance of grinding aids delivered to cement plants. Regular reporting of performance consistency through defined KPIs like grindability index and Blaine fineness is essential.
Role of cement companies in promoting grinding aid usage
Cement producers must take an active role in promoting grinding aid adoption. Sharing success stories of energy savings, improved mill performance, and enhanced cement quality can encourage industry-wide adoption. For example, an Indian cement manufacturer recently documented a 20 per cent improvement in 28-day compressive strength and a 10 per cent reduction in energy consumption with glycol-based additives, driving interest among peers.
Moreover, collaborative initiatives between cement producers and grinding aid manufacturers, such as joint research programs and knowledge-sharing forums, could lead to significant advancements in grinding technology. Organisations like the Cement Manufacturers’ Association of India and the World Cement Association can facilitate these partnerships.
Conclusion
Grinding aids play a pivotal role in modern cement manufacturing, offering significant advantages in energy efficiency, mill productivity and cement quality. Despite their transformative potential, adoption remains inconsistent due to challenges like raw material variability, operational concerns and limited trust in product formulations. Transparency and collaboration between grinding aid producers and cement manufacturers are critical to addressing these issues and fostering broader acceptance.
Innovations in grinding aid chemistry, including hybrid formulations and nano-engineered additives, have unlocked new possibilities for enhancing grindability and hydration performance. Meanwhile, advancements in artificial intelligence and data analytics have opened avenues for real-time optimisation, ensuring precise dosing and measurable cost savings. These developments underscore the evolving synergy between technology and grinding aid applications.
Globally, the grinding aid market is poised for growth, with developed regions leading adoption and emerging economies like India offering immense potential driven by infrastructure demands. However, tapping into these opportunities requires grinding aid producers to align with industry expectations. Cement manufacturers expect customised solutions, eco-friendly formulations, technical support and transparent quality assurance processes to build trust and confidence.
The path forward demands a collaborative approach. Grinding aid producers must continue investing in research and innovation while actively engaging with the cement industry to educate stakeholders and demonstrate measurable benefits. Concurrently, the cement industry must champion adoption through case studies, knowledge sharing, and regulatory support. Together, these efforts will ensure grinding aids fulfill their promise of enabling a more efficient, sustainable, and resilient cement manufacturing sector.
References
1. Gao, J., Zhang, S., Wang, X., & Ma, B. (2011). “Effect of organic grinding aids on cement properties and the analysis via liquid chromatography-mass spectrometry.” Construction and Building Materials, 25(8), 3600–3605.
2. Amritphale, S. S., Patel, M., & Singh, R. (2017). “Grinding aids: A study on their mechanism of action in cement grinding processes.” Indian Cement Review.
3. Cembureau – The European Cement Association. “Cement grinding optimisation through grinding aids.” Industry Report, 2023.
4. Flatt, R. J., & Schober, I. (2012). “Superplasticisers and the rheology of concrete.” International Journal of Cement Chemistry, 64(4), 91–109.
5. Mejeoumov, G. G. (2007). “Improved cement quality and grinding efficiency by means of closed mill circuit modeling.” PhD Dissertation, Texas A&M University.
6. Global Cement. “Advances in grinding aids: Market trends and new technologies.” Published October 2024.
7. Statista. “Global grinding aids market size and forecast (2023-2030).” Published March 2024.
8. Pal, B. K., & Rath, P. C. (2020). “Influence of grinding aids on particle size distribution, strength, and hydration of cement.” Journal of Materials Science and Applications, 45(2), 234–246.
9. Indian Cement Review. “Emerging market scope of grinding aids in India.” Published July 2023.
10. Zhang, H., Li, X., & Zhao, Y. (2022). “The role of grinding aids in improving cement hydration kinetics.” Journal of Advanced Materials Science, 17(6), 527–540.
11. Sika AG. “Technical Report on Polycarboxylate Ether (PCE) based grinding aids.” Published 2022.
12. Cement and Concrete Research. “AI-driven optimisation in cement grinding: Case studies and industrial applications.” Volume 152, 2023.
13. Taylor, H. F. W. (1997). Cement Chemistry (2nd Edition). Thomas Telford Publishing.
14. Indian Bureau of Mines (IBM). “Market trends and challenges in cement manufacturing.” Annual Report, 2024.
15. World Cement Association. “Sustainability in grinding aids and cement additives.” Published 2024.
About the author:
Dr SB Hegde, a global cement industry leader with over 30 years of experience, is a Professor at Jain College of Engineering, India, and a Visiting Professor at Pennsylvania State University, USA. Recipient of the ‘Global Visionary’ award, Dr Hegde advises India’s think tank CSTEP on hydrogen usage in cement and consults for major cement companies. He also serves on expert panels of key industry bodies and journals globally.
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