Economy & Market

The Tale of Two Cement Giants

Published

9 years ago

October 31, 2017

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ACC and UltraTech have both surprised the market a massive topline in July-September 2017 quarter. ICR compares their financial results.

Although it has been a pessimistic quarter for the Indian cement industry as data show cement production fall year-on-year, that began in December 2016. However, August and September showed some resilience with negligible recovery in the production growth rate. The pessimism is also corroborated by Cement Manufacturers Association (CMA) stating that the industry was sitting on more than 100 MT a year of excess or idle capacity. Even, the credit ratings agency ICRA following the output data has downgraded its forecast for cement demand growth to not more than 4 per cent for the 2017-18 FY.

The Indian Cement Review (ICR), in its April issue, had predicted demand to expand just 3.6 per cent in FY18 assuming real GDP grow 8.5 per cent leading to 4 per cent increase in construction activity during the year. Considering that economy will grow at 8.50-9.00 per cent in the next five years, the statistical relation between cement demand and economic growth, the ICR had predicted cement demand to grow at an annual growth rate of 4 per cent over the next five years. However, the GDP growth seem to taper in Q1 2017-18 and would remain slower throughout the year.

The bar graph shows production peak in 2015-16 before falling as monthly production broke the trend in the 2016-17 while the line graph pinpoints the month it started to go wrong, November 2016, when the government demonetized high currency notes. Production growth turned negative the in December 2017 and could not managed to correct itself since then. Nevertheless, it is convenient to blame the policy for the production slump but the trough in February 2017 before taking a lower level of decline since then.

The Reserve Bank of India (RBI) annual report in August 2017 suggested that the policy failed in its primary purpose of reducing the kind of corruption that a cash heavy economy can hide such as tax avoidance. People reportedly managed to find ways to bypass the bank deposit limit and may have successfully laundered large amounts of cash without being caught. However, Financial Times have pointed out, the longer term implications of forcing the economy towards digital payments and increasing the tax base could yet be beneficial overall.

Coming back, the CMA’s blame of overcapacity for the current mess, it appears to have underplayed the capacity crisis facing India. UltraTech Cement’s number based on data from the Department of Industrial Policy and Promotion, show an overcapacity of 155 MT in 2016-17 and this is poised to blot to 157 tonne in 2017-18, even utilisation rate is expected to rise slightly. UltraTech’s estimates utilisation rate topping 70 per cent until the 2020-21 while Mint newspaper concur, although reckoning the rate would bounce sooner, in 2019-20. As CMA brought forth the industry’s excess capacity, it pinned outlook on infrastructure schemes like the Mumbai-Ahmedabad bullet train announced recently, This prompted JK Cements to point that one train project will not make much of a difference for demand to bounce back.

Infrastructure was one of the important factors for ICRA and the other credit agencies to forecast growth in cement demand and development then had indicated that industry may be able to narrow the gap between production capacity and demand. Unfortunately, demonetisation undid ICRA’s growth prediction for 2016-17.

It had predicted demand growth at 6 per cent but it turned out to be just 1.2 per cent. So downgrading forecast for 2017-18, on fears of weather and adverse impact of Goods and Services Tax (GST) beginning Q2, is valid. Major cement producers such as Ultratech and Ambuja Cement had based their road to recovery in their latest investor presentations on the 6 per cent growth or even higher. Being lower than expected and overcapacity gap not narrowing down, the hope now is pinned at a brisk business in second half of 2017-18.

Prospect still bright despite lean Q2 2017-18
During Q2 2017-18, characterise as lean season for cement consumption due to south-west monsoon, demand and pricing trends of cement was a mixed bag. But, a closer inspection suggests the recent past as well as future prospect are in good shape.

While prices in east and west India have surprised with year-on-year rise, it was not so in other regions. Hence, average all-India cement prices are pegged flat to up 3 per cent cent in Q2. But, if one were to factor in the 2-3 per cent reduction in the tax rates after implementation of GST, which is also reflected in the prices, the overall pricing trend is encouraging.

On demand, although monsoon was a factor impacting construction, sand availability, active government projects, etc., had a bearing on regional patterns. While north and east as well as Andhra Pradesh/ Telangana witnessed volume grow of 10 per cent y in Q2, largely driven by high execution of government projects, demand apparently declined in central and south, dragged by sand shortage in Uttar Pradesh and Tamil Nadu. Tamil Nadu and Kerala markets did not see much activity in government projects. Expectedly, central and south India saw major price impact. Before the announcement of Q2 results, HDFC Securities expected cement companies to post 13.4 per cent volume growth while Kotak Institutional Equities expected a lower volume growth of 6 per cent in cement volumes. With healthy volume growth and realisation, pan-India players like UltraTech and ACC, and those with larger exposure to east and west like Ambuja Cements and Shree Cement were expected to report better Q2 performance. Nevertheless, rising cost of fuels such as pet-coke and coal, would restrict any sharp increase in per tonne profitability in year on year comparison.

Beyond Q2, the prospect is positive, expert believe, for the cement companies anticipating a turnaround in demand in the second half of 2017-18, led by rural recovery even as the first six months may have seen the impact of the Real Estate (Regulation and Development) Act (RERA). JM Financial expect demand from the affordable housing and infrastructure segments to drive volume growth in the second half of the current fiscal year, while Centrum Broking indicated that cement demand should recover post monsoon and as the GST and RERA drag fades in the coming months and sand availability improves.

Experts also opine that with overall capacity expansion pace is slowing and with demand outpacing, cement manufacturers should benefit. Reliance Securities foresees incremental demand to outpace incremental supply, and, thus, better utilisation rate in the ensuing years. Factoring an average annual expansion in capacity of 8-10 MT, incremental demand is pegged at 15-20 MT over 2018-2020.

Performance analysis of top cement companies in Q2 2017-18
ACC and UltraTech Cement have both surprised the market a massive topline in July-September 2017 quarter. Prices have firmed supported by some rise in demand which was seen picking up in the north slightly in the west also, south has been lagging behind, signs in west and north are good price wise and volume wise. Infrastructure sector was picking up substantially implying healthy growth in the foreseeable future. Low-cost housing is slow to pick up and with the monsoons being good, rural demand is expected to pick up in January-February onwards.

UltraTech
UltraTech, the largest cement company with capacity of 89 million tonne per annum (85 mtpa in India), has presence in all the regions in India. In 2017-18, UlltraTech expanded its capacity by 25 per cent by acquiring 21.2 MT from Jaiprakash Associates. It also has 80 per cent stake in Dubai-based Star Cement.

Compared to market expectations, UltraTech has beaten consensus with great Set of numbers given the consolidation. Numbers are way ahead of consensus and beats street estimate by 21 per cent. Despite consolidation it has delivered Rs 1,000 EBITDA a tonne, which is termed com?mendable against the expectation of Rs 871 a tonne. Q over Q realisation improved 1 per cent.

UltraTech reported a 28 per cent decline in net profit (in standalone) to Rs 431 crore for the quarter ended September 2017. It had clocked net profit of Rs 601 crore in the July-September 2016. The company’s net sales were up 7.1 per cent at Rs 6,571 crore during Q2 2017-18 as against Rs 6,135 crore in same quartet the year-ago.

This quarter continued to witness increasing cost trends, attributable to increase in fuel price while total expenses were up 11 per cent at Rs 6,095 crore as against Rs 5,491 crore. Depreciation increased 59 per cent to Rs 499 crore while interest cost doubled to Rs 376 crore due to cost involving new cement plant acquisition. Meanwhile, EBITDA increased 24 per cent to Rs 1,350 crore, translating into EBITDA/tonne of Rs 1,028 and margin of 21 per cent.

The company stated that the acquisition of cement plants of Jaiprakash Associates and Jaypee Cement Corp had helped it augment capacity to 93 million ton per annum. The acquisition has also enhanced its footprint in the high growth markets of central India, eastern UP and coastal Andhra Pradesh, where the company has been focusing to increase its presence. Volumes for Q2 increased 18 per cent to 12.84 MT due to the ramp-up of JPA assets. Pricing improvement was better than expectation at Rs 5,001 a tonne due to firm prices across most focused markets.

Ambuja and ACC
According to Neeraj Akhoury, Managing Director and CEO, ACC, "results demonstrate its capacity to respond quickly and resolutely to changing market dynamics and execute strategies with focus and determination." ACC’s operating results has beaten consensus by 10 per cent against market expectation of 19 per cent. Volume grew 17.6 per cent YoY was higher against. consensus of 6 per cent. The cement giant has maintained control on its operating expenditure as anticipated. EBITDA was at Rs 592 a tonne, 12 per cent higher than expectations at Rs 527 a tonne.

Ambuja delivered a strong set of numbers while focusing on brand building, through differentiated offerings for individual home builders, building and infrastructure segments. According to Ajay Kapur, Managing Director and CEO, the company’s strategy to focus on key markets, premium products and value based pricing has paid off, leading to strong net sales and EBITDA growth.

During July-September 2017 quarter Ambuja Cement recorded higher sales and growth in value-added pricing, but it also faced cost pressures relating to rising fuel costs, packaging and raw material prices. Thus, there has been a move to increase its use of petcoke and alternative fuels further, as against 67 per cent it achieved in June 2017. Ambuja Cement’s net sales rose 16 to Rs 2,320 crore even as sales volume grew slower at 11.6 per cent to 5.02 MT. EBITDA per tonne rose 3 per cent to Rs 706.

Merger ambitions
Ambuja Cement has a 50.05 per cent share in ACC and the board of directors have initiated a study into the possibility of merger between the two companies. A national daily recently pointed that in a post-merger situation, the new entity would save about 10 per cent in operating expenses, especially with better logistics in terms of reaching relevant markets, manpower and taxes. The new entity will have a production capacity of 63 MT, making it the No. 2 player after UltraTech.

Ban on petcoke will increase cement cost
An Indian Supreme Court ruling to ban the use of petcoke in and around National Capital Region is likely to have adversely impact on cement plants and prices in northern India, as produces are expected to switch to higher-cost fuels. The ban impacts cement producers in Uttar Pradesh, Haryana, and Rajasthan, while all have districts falling under the NCR. These producers will be required to use either domestic or imported coal from November 1, 2017, resulting in an increase in power and fuels costs.

Petcoke is a key fuel for the Indian cement industry. Its usage ranges from 100 per cent of total fuel consumption at Shree Cement to 62 per cent at Ambuja Cements. Power and fuel costs vary from highs of Rs 852 a ton at Ambuja and Rs 856 a tonne at J.K. Cement to Rs 425 per tonne at Shree Cement. The petcoke ban could add an additional Rs 8-10 per tonne to fuel and power costs.

Cement to benefit in the coming years
The government has identified the construction and infrastructure as one of the key sectors that will help improve overall economic growth. Infrastructure projects in power, irrigation, roads, metros and railways, as well as dedicated freight and industrial corridors, are likely to generate strong demand for cement in the country. Furthermore, increased spending on affordable and low-cost housing coupled with the normal monsoon is expected to boost the rural economy which augurs well for the cement industry.

– Nitin Madkaikar

Concrete

PROMECON introduces infrared-based tertiary air measurement system for cement kilns

Published

1 day ago

May 20, 2026

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The new solution promisescontinuous, real-time tertiary air flow measurement in cement plant operations.

PROMECON GmbH has launched the McON IR Compact, an infrared-based measuring system designed to deliver continuous, real-time tertiary air flow measurement in cement plant operations. The system addresses the longstanding process control challenge of accurate tertiary air monitoring under extreme kiln conditions. It uses patented infrared time-of-flight measurement technology that operates without calibration or maintenance intervention.

Precise tertiary air measurement is a critical requirement for stable rotary kiln operation. The McON IR Compact is engineered to function reliably at temperatures up to 1,200°C and in the presence of abrasive clinker dust. Its vector-based digital measurement architecture ensures that readings remain unaffected by swirl, dust deposits or drift. Due to these conditions conventional measurement systems in pyroprocess environments are often compromised.

The system is fully non-intrusive and requires no K-factors, recalibration or periodic readjustment, enabling years of uninterrupted operation. This design directly supports plant availability and reduces the maintenance overhead typically associated with process instrumentation in high-temperature zones.

PROMECON has deployed the McON IR Compact at multiple cement facilities, including Warta Cement in Poland. Plant operators report that the system has aided in identifying blockages, optimising purging cycles for gas burners, and supplying accurate flow data for AI-based process optimisation programmes. The practical outcomes include more stable kiln operation, improved process control, and earlier detection of process disturbances.

On the energy side, real-time tertiary air data enables reduction in induced draft fan load and helps flatten process oscillations across the pyroprocess. This translates to lower fuel and energy consumption, fewer unplanned shutdowns, and a measurable reduction in NOx peaks. This directly reflects on the downstream cost implications for plants operating SCR or SNCR systems for emissions compliance.

Concrete

Filtration Technology is Critical for Efficient Logistics

Published

6 days ago

May 15, 2026

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Niranjan Kirloskar, MD, Fleetguard Filters, makes the case that filtration technology, which has been long treated as a routine consumable, is in fact a strategic performance enabler across every stage of cement production and logistics.

India’s cement industry forms the core for infrastructure growth of the country. With an expected compound annual growth rate of six to eight per cent, India has secured its position as the second-largest cement producer globally. This growth is a result of the increasing demand across, resulting in capacity expansion. Consequently, cement manufacturers are now also focusing on running the factories as efficiently as possible to stay competitive and profitable.
While a large portion of focus still remains on production technologies and capacity utilisation, the hidden factor in profitability is the efficiency of cement logistics. The logistics alone account for nearly 30 per cent to 40 per cent of the total cost of cement, making efficiency in this segment a key lever for profitability and reliability.
In the midst of this complex and high-intensity ecosystem, filtration often remains one of the most underappreciated yet essential enablers of performance.

A demanding operational landscape
Cement production and logistics inherently operate in some of the harshest industrial environments. With processes such as quarrying, crushing, grinding, clinker production, and bulk material handling expose the machinery to constant high temperatures, heavy loads, and dust, often the silent destructive force for engines.
The ecosystem is abrasive, and often one with a high contamination index. These challenging conditions demand equipment such as the excavators, crushers, compressors, and transport vehicles to perform and perform efficiently. The continuous exposure to contamination across every aspect like air, fuel, lubrication, and even hydraulic systems causes long-term damage. Studies have also shown that 70 to 80 per cent of hydraulic system failures are directly linked to contamination, while primary cause of engine wear is inadequate air filtration.
For engines as heavy as these, even a minor contaminant has a cascading effect; reducing efficiency, performance and culminating to unplanned downtime. Particles as small as 5 to 10 microns, far smaller than a human hair (~70 microns), can cause significant damage to critical engine components. In an industry where margins are closely linked to operational efficiency, such disruptions can significantly affect both cost structures and delivery timelines.

Dust management: A persistent challenge
Dust is a natural by-product in cement operations. From drilling and blasting in the quarries to packing in plants, this fine particulate matter does occupy a large space in operations. Dust concentration levels in quarry and crushing zones often create extremely high particulate exposure for equipment. These fine particles, when enter the engines and critical systems, accelerates the wear and tear of the component, affecting directly the operational efficiency. Over time every block fall; engine performance declines, fuel consumption rises, and maintenance cycles shorten. In this case, effective air filtration is the natural first line of defence. Advanced filtration systems are designed to capture high volumes of particulate matter while maintaining consistent airflow, ensuring that engines and equipment operate under optimal conditions.
In high-dust applications, as in cement production, even the filtration systems are expected to sustain performance over extended periods without the need of frequent replacement. This becomes crucial in remote quarry locations where access to frequent maintenance may be limited.

Fluid cleanliness and system integrity
Beyond air filtration, fluid systems also play a crucial role for equipment reliability in cement operations. Fuel systems are required to remain free from contaminants for efficient working of combustion and injection protection. Additionally, lubrication systems also need to maintain the oil purity to reduce friction and prevent any premature wear of moving parts. The hydraulic systems, which are key to several heavy equipment operations, are especially sensitive to contamination.
If fine particles or water enters these systems, it can lead to reduced efficiency, erratic performance, and eventual failure of the system. Modern filtration systems are designed with high-efficiency media capable of removing extremely fine contaminants, with advanced fuel and oil filtration solutions filtering particles as small as two to five microns. Multi-stage filtration systems further ensure that fluid performance is maintained even under challenging operating conditions.
Another critical aspect of fuel systems is water separation. Removing moisture helps prevent corrosion, improves combustion efficiency and enhances overall engine reliability. Modern water separation technologies can achieve over 95 per cent efficiency in removing water from fuel systems.

Ensuring reliability across the value chain
Filtration plays a critical role across every stage of cement logistics:
• Quarry operations: Equipment operates in highly abrasive environments, requiring strong protection against dust ingress and hydraulic contamination.
• Processing units: Crushers, kilns, and grinding mills depend on clean lubrication and cooling systems to sustain continuous operations.
• Material handling systems: Pneumatic and mechanical systems rely on clean air and fluid systems for efficiency and reliability.
• Transportation networks: Bulk carriers and trucks must maintain engine health and fuel efficiency to ensure timely deliveries.
Across these operations, filtration plays a vital role; as it supports consistent equipment performance while reducing the risk of unexpected failures.
Effective filtration solutions can reduce unscheduled equipment failures by 30 to 50 per cent across heavy-duty operations.

Uptime as a strategic imperative
In cement manufacturing, uptime is currency. Downtime not only delays the production, but it also greatly impacts the supply commitments and logistics planning. With the right filtration systems, contaminants are kept at bay from entering the
critical systems, and they also significantly extend the service intervals.
Optimised filtration can extend service intervals by 20 to 40 per cent, reducing maintenance frequency while maintaining consistent performance across demanding operating conditions. Filtration systems designed for heavy-duty applications sustain efficiency throughout their lifecycle, ensuring reliable protection with minimal interruptions. This leads to improved equipment availability, lower maintenance costs, and more predictable operations, with well-maintained systems capable of achieving uptime levels of over 90 to 95 per cent in challenging cement environments.

Supporting emission and sustainability goals
With the rising environmental awareness, the cement industry too is aligning with the stricter norms and sustainability targets. In this scenario, the operational efficiency is directly linked to emission control.

Air and fuel systems that are clean enable
much more efficient combustion. They also reduce emissions from both the stationary equipment and transport fleets. Similarly, with a well-maintained fluid cleanliness, emission systems function better. Poor combustion due to contamination can increase emissions by 5 to 10 per cent, making clean systems critical for compliance.
Additionally, efficient and longer lasting filtration systems significantly reduce any waste generation and contribute to increased sustainable maintenance practices. Extended-life filtration solutions can reduce filter disposal and maintenance waste by 15 to 20 per cent. Smart and efficient filtration in this case plays an important role in meeting the both regulatory and environmental objectives within the industry.

Advancements in filtration technology
Over the years, there has been a significant evolution in the filtration technology to meet the modern industrial applications.
Key developments include:
• High-efficiency filtration media capable of capturing very fine particles without restricting flow
• Compact and integrated designs that combine multiple filtration functions
• Extended service life solutions that reduce replacement frequency and maintenance downtime
• Application-specific engineering tailored to different stages of cement operations
Modern multi-layer filtration media can improve dust-holding capacity by up to two to three times compared to conventional systems, while maintaining consistent performance. These advancements have transformed filtration from a basic maintenance component into a critical performance system.

Adapting to diverse operating conditions
The cement industry of India operates across diverse geographies. Spanning across regions with arid regions with higher dust levels, to the coastal areas with higher humidity, challenges of each region pose different threats to the engines. Modern filtration systems are thus tailored to address these unique challenges of each region.
Indian operating environments often range from 0°C to over 50°C, with some of the highest dust loads globally in mining zones.
Additionally, filtration technology can also be customised to variations which then align the system design with factors like dust load, temperature, and equipment usage patterns. Equipment utilisation levels in India are typically higher than global averages, making robust filtration even more critical. This approach ensures optimal performance and durability across different operational contexts.

Impact on total cost of ownership
Filtration has a direct and measurable impact on the total cost of ownership of equipment.
Effective filtration leads to:
• Lower wear and tear on critical components
• Reduced maintenance and repair costs
• Improved fuel efficiency
• Extended equipment life
• Higher operational uptime
Effective filtration can extend engine life by 20 to 30 per cent and reduce overall maintenance costs by 15 to 25 per cent over the equipment lifecycle. These benefits collectively enhance productivity and reduce lifecycle costs. Conversely, inadequate filtration can result in frequent breakdowns, increased maintenance expenditure, and reduced asset utilisation.

Building a more efficient cement ecosystem
With the rising demand across various sectors, the cement industry is expected to expand at an unprecedented rate. This growth is forcing the production to move towards a more efficient and resilient system of operations. This requires attention not only to production technologies but also to the supporting systems that enable consistent performance. Filtration must be viewed as a strategic investment rather than a routine consumable. By ensuring the cleanliness of air and fluids across systems, it supports reliability, efficiency, and sustainability.

The road ahead
The future of cement logistics will be shaped by increasing mechanisation, digital monitoring, and stricter environmental standards. The industry is also witnessing a shift towards predictive maintenance and condition monitoring, where filtration performance is increasingly integrated with real-time equipment diagnostics.
In this evolving landscape, the role of filtration will become even more critical. As equipment becomes more advanced and operating conditions more demanding, the need for precise contamination control will continue to grow. From quarry to construction site, filtration technology underpins the performance of every critical system. It enables equipment to operate efficiently, reduces operational risks, and supports the industry’s broader goals of growth and sustainability. In many ways, it is the unseen force that keeps the cement ecosystem moving, quietly ensuring that every link in the value chain performs as expected.

About the author
Niranjan Kirloskar, Managing Director, Fleetguard Filters, is focused on driving innovation, operational excellence, and long-term business growth through strategic and people-centric leadership. With a strong foundation in ethics and forward-thinking decision-making, he champions a culture of collaboration, accountability, and technological advancement.

Concrete

Cement’s Next Fuel Shift

Published

6 days ago

May 15, 2026

admin

Jignesh Kindaria highlights how Thermal Substitution Rate (TSR) is emerging as a critical lever for cost savings, decarbonisation and competitive advantage in the cement industry.

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.