Economy & Market
Multiple headwinds to slow down cement cos earnings
Published
9 years agoon
By
admin
The earnings projections of cement companies for FY18 are likely to suffer amid lower antic-ipated sales volumes and subdued prices. According to dealer estimates, the all-India average cement price fell by 2 per cent sequentially to Rs 326 per 50 kg bag in the December 2017 quarter. On a year-on-year basis, it rose marginally by 5 per cent. Historically, the sector has been reporting better traction in December. However, this time, realisation is under pressure due to several headwinds.
For instance, cost of sand, a key raw material, has increased by 4-5 times from the year ago due to lesser availability. In addition, construction activities in the real estate segment have slowed following demonetisation and implementation of Real Estate Regulatory Authority (RERA) Bill. The segment accounts for 60-65 per cent of total cement consumption. This has impacted offtake volume.
According to analysts, meeting the earlier expectation of 7-8 per cent volume growth for the full year will be a difficult task. To deliver that much growth, companies would require to clock 9 per cent growth in the second half of the fiscal.
Pet coke duty hike to hit operating margins
Cement companies operating profits may fall by one per cent following the Government’s decision to hike import duty on pet coke to 10 percent from the current 2.5 percent, a report said. ‘The operating margins of cement companies, which use high proportion of pet coke are likely to be affected following the government’s decision to increase the import duty on pet coke to 10 per cent from the present 2.5 per cent. The operating margins of cement manufacturers may fall by about 1 per cent, if increased cost is not passed on to end users,’ India Ratings said in its report.
The increase in import duty was announced after the Supreme Court decided to lift the ban on the use of pet coke. The Supreme Court allowed the cement industry to use pet coke as a feedstock, which had been banned last month to clean up the air pollution. While, issuing the exemption order for cement units, the apex court asked the government to frame guidelines for the use of pet coke.
Ind-Ra said that the cement manufacturers may resort to coal imports due to low domestic availability. Cement manufacturers prefer using pet coke, as it contains high calorific value (7,500-8, 500 Kcal/kg), to non-coking coal (2,200-7,000 Kcal/kg). The rise in the import duty on pet coke will result in a rise in power and fuel cost per metric tonne to Rs 5-7 per bag.
Total pet coke consumption in India increased by 34 per cent in October 2017 to 2 million metric tonne as compared with the level recorded for October 2015. Of the total pet coke consumed in the country during FY17-1HFY18, about 50 per cent was sourced domestically and the remaining through imports. According to Ind-Ra’s assessment, 35 per cent of the total pet coke imports were consumed by the cement industry.
Cement prices set to increase
Cement prices in India are expected to increase by Rs 3-4/bag by mid-January as the government has decided to hike the import duty on pet coke from the current 2.5 to 10 per cent. The rise in duty is expected to increase production costs by Rs 50-60/t and sector analysts predict the increase will be passed on to customers. ‘In case they are not passing it on, their EBITDA is likely to get affected and under the current scenario, no company will wish for it,’ an analyst with stockbroking firm Motilal Oswal Financial Services told. While the price of pet coke is currently 10-12 per cent higher than that of imported coal, its lower volume requirement means it is more cost-effective for cement producers to use.
Dalmia Bharat to acquire Murli Industries
Cement manufacturer Dalmia Bharat said its Rs 402 crore bid to acquire Murli Industries Ltd (MIL) has been approved by the Committee of Creditors (CoC) of the Nagpur-based company. The resolution plan submitted by Dalmia Cement (Bharat) Ltd, a subsidiary of Dalmia Bharat, to CoC of MMIL under the Insolvency and Bankruptcy Code, 2016 was approved recently.
‘Committee of creditors of MIL on December 20, 2017 approved the proposed resolution plan submitted by our subsidiary, DCBL for recommendation to NCLT Mumbai for its approval in relation to revival of MIL,’the company said.
It further added:
‘Following receipt of requisite approvals, the resolution plan provides for a payment of Rs 402 crore which is 1.7 times higher than the determined liquidation value.’
MIL has an integrated cement manufacturing plant with installed capacity of 3 MTPA in Chandrapur district of Maharashtra along with a captive thermal power plant of 50 MW. In addition, MIL also has paper and solvent extraction units in Maharashtra. MIL was referred to the corporate insolvency process by its lenders in April 2017. It had interests in cement, paper, solvent, power and pulp.
Coal shortage hits thermal power plants
Thermal power plants across India are facing a shortage of coal. If this situation does not improve over the next the few days, there is a real threat that power generated may stop. About 600 MW of coal-based power generation is already affected due to the coal shortage. The Western and Northern regions are the most affected, and in States such as Maharashtra and Rajasthan, about 40 per cent of power generated from coal is affected.
According to data of the Central Electricity Authority (CEA), most thermal power plants have just one to three days of reserve coal stock. Sources in Singareni Collieries say thermal plants to which it supplies coal are not facing any shortage of coal. These include plants in Telangana and Andhra Pradesh. According to CEA data, the number of thermal power plants in the country with critical stock (for only seven days) is four. The number of thermal power plants with super critical stock (for only four days) is 23.
CEA said that plants having low stocks due to outstanding dues, supply being more than committed quantity, and not lifting offered coal, are not listed in the critical and super critical data. In Andhra Pradesh, the Rayalaseema Thermal Power Station (RTPS) has coal stock for only four days, the Simhadri thermal power station has coal stock for two more days and Vizag thermal power plant has coal stock for three days. In Telangana, Ramagundam thermal power plant has coal stock for three days and Kakatiya and Kothagudem thermal power plants have coal stock for 10-21 days. There are nine plants in the northern region and 12 plants in the western region that are in critical and super critical stages.
The Union power ministry says that the issue of coal supply to power plants is being addressed in a coordinated manner by the three concerned ministries – power, coal and Railways. The Power Ministry said that this is being monitored at the highest level and that in spite of the the unprecedented rise in the demand for coal based power, due to better coordinated planning the demand of electricity in the grid is being met. More than 65 per cent of India’s electricity generation capacity comes from thermal power plants, with about 85 per cent of the country’s thermal power generation being coal-based.
The 10 biggest thermal power stations operating in India are all coal-fired.
SC allows use of pet coke in cement
The Supreme Court allowed the cement industry to use petroleum coke, a dirtier alternative to coal which had temporarily been banned as pollution levels shot up in Delhi last month. India is the world’s biggest consumer of petroleum coke, better known as pet coke, a dark solid carbon material that emits 11 per cent more greenhouse gas than coal, according to studies.
The Supreme Court in October banned the use of pet coke in and around New Delhi in a bid to clean the air in one of the world’s most polluted cities. But a blanket ban on the sale and use of petcoke could hit the country’s small and medium scale industries, which employ millions of workers and operate on thin margins, businesses say.
Supreme Court Judge Madan Bhimrao Lokur, in issuing the exemption order for cement and limestone industries, asked the government to frame guidelines for the use of pet coke. Shares of Indian cement companies, which use pet coke as feedstock, surged as much as 5 per cent on news of the court decision. Local producers of pet coke include Indian Oil Corp, Reliance Industries and Bharat Petroleum Corp.
Cement prices firm up in South
Prices of cement have jumped by an average Rs 25-30 per bag in the Southern States. The price is now hovering around Rs 310-320 per bag in Andhra Pradesh and Telangana. In Karnataka, its around Rs 340, while in Tamil Nadu and Kerala, it is being sold at over Rs 360. The prices were in the range of Rs 280 in Andhra Pradesh and Telangana. The present increase has not been normal, says M Prasad, a wholesale dealer of leading cement brands here. ‘Normally prices go up as the construction activity picks up during February to July for the year, which is seen as the best season for price realisation,’ he added.
Interestingly, the summer of 2017 proved different to the earlier three-four summers as prices unusually fell to around Rs 270 in Andhra Pradesh and Telangana. Typically, the prices are at peak with demand picking up and construction activity in full swing.
There has been no change in other factors such as production capacity and demand. Still the capacity utilisation and demand are under 40 per cent. The second quarter had seen a price erosion.
As per industry data, prices from August, September to October show that price erosion was in the range of Rs 5 in Andhra Pradesh and Telangana markets.
In Bengaluru, the prices remained more or less stable. Chennai also saw a drop of another Rs 5-10. In the days to come, the expected volume growth in the industry could be varied.
In Andhra Pradesh, the non-grounding of works related to the new capital Amaravati did not give the anticipated boost to the industry. The industry is hoping to gain from new capital probably a year and year-and-a-half from now in a slow fashion to be ramped up later. Even in Telangana, the real estate sector in the capital Hyderabad, is seeing ups and downs as far as new projects are concerned.
Cement, steel at the core of strongest infra show in a year
India’s infrastructure sector logged the highest growth in more than a year in November, while the country’s biggest carmakers reported double-digit sales growth in December, kicking off the new year on a positive note for the economy and pointing to a persistent revival trend. The index of eight core industries rose 6.8 per cent in November, the Government data showed, riding high on growth in cement and steel sectors. These have a weight of more than 40 per cent in the Index of Industrial Production (IIP), suggesting strong industrial growth in November after a dismal October.
‘Steel and cement growth at very high growth rates of 16.6 per cent and 17.3 per cent indicates restoration of the production in these sectors over pre-demonetisation levels which augurs well for real sector investment,’ said Economic Affairs Secretary, Subhash Chandra Garg.
Part of the rise is due to the favourable base effect stemming from the disruption in the wake of demonetisation in November 2016 that will prevail over the next few months.
The core sector grew 3.6 per cent in November 2016. The core sector growth in November 2017 was the best since 7.1 per cent in October 2016.
‘The early indicators for industrial production in the organised sectors in November 2017 provide favourable signals, such as the uptick in growth of the core sector and sharp improvement in the expansion of automobile production and non-oil merchandise exports,’ said Aditi Nayar, Principal Economist, ICRA.
India’s GDP growth recovered to 6.3 per cent in the July-September period from a three-year low of 5.7 per cent in the preceding quarter. Most experts had expected a stronger rebound as the impact of demonetisation and rollout of GST in July had faded.
CIL assures captive power producers of coal supply
State-owned miner Coal India (CIL) has assured coal availability to power industry body ICPPA, whose members include firms from steel and aluminium segment, as they are heavily dependent on the dry fuel. CIL Chairman and MD Gopal Singh along with other senior officials held a meeting with members of Indian Captive Power Producers Association (ICPPA). In India, captive power producers’ capacity stands at 40,000 Mega Watts (MW) and about 30,000 MW is produced by using coal, which is about 75 per cent. The rest is produced through alternate materials like gas-based and others, ICPPA General Secretary Rajiv Agarwal told.
‘The industry is highly dependent on coal and the government must understand this. There are many plants who are on the verge of shut down. Many may become a non-performing asset (NPA),’ he said. CIL, in the meeting, said about 71 per cent materialisation of coal was done during April-December 2017 for both IPPs (integrated power producers) and CPPs and assured there is no shortage of coal.
ICPPA said it is not satisfied by the words of the PSU, who it said is supposed to supply the dry fuel to industry. Agarwal said, ‘The given figure included dispatches by both rail and road. The share of CPPs rail dispatches is in the range of only 30 to 50 per cent and out of this 30 per cent major supply was given to those plants who were near the pits.’
Even if coal linkage auction is concerned, 41.5 MT was offered to the CPPs, he said and added, that out this the industry could not bid for 8.5 MT offered at ‘Magad-Amrapali of CCL (Central Coalfields Ltd)’ a place with evacuation constraint.
The future of India’s roads took centrestage at RAHSTA Expo 2026, where policymakers, contractors and industry leaders came together under one roof. The event blended thought leadership, technology showcase and industry recognition into a single powerful platform.
India’s roads and highways community gathered in full strength at the Jio World Convention Centre, Mumbai, for the 16th edition of the RAHSTA Expo (Roads and Highways Sustainable Technologies & Advancement). Over two action-packed days, the event brought together policymakers, contractors, consultants, developers, equipment manufacturers, material suppliers, technology providers and investors to deliberate on the future of India’s ,infrastructure while showcasing the latest innovations driving the sector.
The event culminated in the prestigious RAHSTA Awards, where Shri. Ajay Tamta, Union Minister of State for Road Transport & Highways, felicitated organisations and professionals for their outstanding contributions to road construction, engineering, safety, sustainability and technology. With leading contractors, senior government officials, industry veterans and technology providers under one roof, the event reaffirmed RAHSTA’s position as one of India’s most influential platforms for the roads, highways, bridges and tunnels ecosystem.
Organised by FIRST Construction Council in association with ASAPP Info Global Group, RAHSTA has steadily evolved beyond an exhibition into a platform where policy, technology, engineering and business converge to address the opportunities and challenges shaping India’s next generation of transport infrastructure.
Beyond expansion, towards value
The conference opened with a thought-provoking address by Pratap Padode, Founder and Editor-in-Chief, Construction World, who observed that India’s highways sector has reached an important inflection point. Introducing this year’s theme – ‘From Expansion to Value: The Next Phase of India’s Highways’ – he noted that while the country has successfully expanded its road network over the past two decades, the industry’s priorities are now shifting towards building infrastructure that delivers greater lifecycle value, durability, safety and operational efficiency. With funding pressures, asset monetisation and evolving project models changing the sector’s dynamics, he said the focus must now move beyond kilometres constructed to the quality and long-term performance of every asset.
Dr Brijesh Dixit, Managing Director, Maharashtra State Infrastructure Development Corporation (MSIDC), reminded delegates that successful infrastructure delivery is ultimately a collective effort. Emphasising on collaboration between government, industry and engineering professionals, he remarked, “There is no loser in a winning team, and there is no winner in a losing team,” urging stakeholders to work together to deliver projects with quality, financial sustainability and technological excellence.
Delivering the keynote address, Bidur Kant Jha, Director, New Technologies for Highway Development, Ministry of Road Transport & Highways (MoRTH), outlined the Government’s long-term vision for India’s highway network. Highlighting the country’s 6.26 million km roads network, he spoke about the growing adoption of digital planning tools such as BIM and GIS, bridge health monitoring systems and Integrated Smart Transport Corridors under the Vision 2047 roadmap. He emphasised that while India remains open to global innovations, every new technology must be adapted to Indian conditions before large-scale deployment.
Addressing the gathering during the awards ceremony, Tamta underlined the increasing role of specialised equipment and modern construction technologies in executing complex infrastructure projects across diverse terrains. Referring to challenging tunnel projects in Uttarakhand, he noted how advanced machinery has transformed execution capabilities, while also acknowledging the rapid evolution of Indian contractors into globally competitive infrastructure companies. Recognising excellence through industry awards, he said, motivates organisations to continually raise performance standards and embrace innovation.
Meanwhile, Dr Sanjay Mukherjee, IAS, Metropolitan Commissioner, MMRDA, highlighted that infrastructure development must increasingly focus on integrated urban mobility. Reflecting on Mumbai’s engineering journey – from its historic underground utility network to the Coastal Road and other transformative projects – he underlined that future infrastructure planning must seamlessly integrate roads, metro systems and public transport to create efficient, multimodal cities.
Uttar Pradesh takes centrestage
One of the highlights of the second day was Uttar Pradesh’s comprehensive presentation on its infrastructure-led industrial transformation.
Srihari Pratap Shahi, IAS, Additional CEO, Uttar Pradesh Expressways Industrial Development Authority (UPEIDA), demonstrated how the state’s expanding expressway network is evolving into a catalyst for industrial development through integrated manufacturing and logistics clusters. Expressways, he noted, are no longer merely transport corridors but engines of economic competitiveness.
Building on this narrative, Deeksha Jain, IAS, Additional Chief Executive Officer, Uttar Pradesh State Industrial Development Authority (UPSIDA), showcased the state’s rapidly expanding industrial ecosystem supported by extensive expressway connectivity, dedicated freight corridors, airports, industrial townships and investor-friendly policies. She highlighted Uttar Pradesh’s strong manufacturing growth, expanding industrial land bank, plug-and-play infrastructure and increasing use of digital governance to facilitate investments.
Further underlining the significance of the platform, Deepak Kumar, IAS, Infrastructure & Industrial Development Commissioner, Government of Uttar Pradesh, remarked, “RAHSTA provides an excellent platform for states to showcase our infrastructure progress and investment ecosystem. Uttar Pradesh has transformed significantly over the past decade, backed by more than 34 investor-friendly industrial policies, and platforms like RAHSTA help communicate these developments to industry stakeholders from across the country.”
Ideas that shaped the industry conversation
The two-day conference featured seven panel discussions, each examining a critical dimension of India’s evolving roads and highways sector.
The opening discussion on ‘Financing Roads & Highways in a Capital-Constrained Era’ brought together experts from Cube Highways, NIIF, SBI Capital Markets, Centrum Capital and Bandhan Infra Fund, who examined how the financing landscape is changing. Discussions revolved around asset monetisation, InvITs, institutional investments and new funding structures, with panellists agreeing that better project preparation, transparent governance and predictable returns will be crucial for attracting long-term capital into infrastructure.
Attention then shifted to execution realities during the panel on ‘Contractors’ Perspective: Execution Realities, Risks & the Quality Imperative.’ Representatives from GHV Infra Projects, PNC Infratech, NCC and Maccaferri candidly discussed the challenges of delivering projects amid contractual complexities, land acquisition delays, rising costs and tight timelines. While execution pressures remain significant, the discussion reinforced that better collaboration across the project value chain is essential for achieving both speed and quality.
Day 2 opened with a technically rich discussion on ‘Designing Roads for Sustainability, Durability & Climate Resilience’. Experts from CSIR-CRRI, IIT Bombay, IIT Madras, Zydex Group and SRMB Steel explored advanced pavement technologies, recycled materials, climate-resilient designs and scientific construction practices that can significantly improve durability while lowering lifecycle costs. Sustainability, they agreed, must become an integral part of road design rather than an afterthought.
The subsequent session on ‘Bridges & Tunnels: Complex Engineering, Safety & Future Readiness’ highlighted the growing complexity of India’s infrastructure projects. Panellists discussed advances in structural engineering, digital monitoring, risk management and safety practices that are enabling the successful delivery of increasingly ambitious bridge and tunnel projects across the country.
Technology remained a recurring theme during the discussion on ‘Technology as a Risk-Mitigation Tool for Developers & Investors’. Experts explained how AI, BIM, drones, predictive analytics, digital twins and intelligent monitoring systems are helping improve project planning, minimise execution risks, strengthen quality assurance and enhance asset management throughout the infrastructure lifecycle.
The construction equipment panel brought together leading industry experts to examine how technology, sustainability and digitalisation are redefining construction equipment in an era of rising cost pressures. Discussions centred on enhancing productivity, reducing lifecycle costs and preparing the industry for India’s infrastructure ambitions leading up to 2047.
The conference concluded with an engaging CXO Forum on ‘Rebuilding Confidence in India’s Roads & Highways Sector’, where senior industry leaders emphasised that stronger governance, better project preparation, digitalisation, transparent contracting and closer public-private collaboration will be essential to sustain India’s infrastructure growth over the coming decades.
Technology and recognition under one roof
Beyond the conference halls, RAHSTA Expo reflected the technological transformation underway across India’s road infrastructure ecosystem. Leading equipment manufacturers, technology companies and material suppliers showcased advanced construction equipment, intelligent digital platforms, pavement technologies, structural materials and productivity-enhancing solutions designed to improve project efficiency and asset performance. The exhibition created valuable opportunities for contractors, consultants, government agencies and project developers to evaluate new technologies while interacting directly with solution providers.
The event also served as a celebration of excellence through the RAHSTA Awards 2026, which recognised outstanding achievements across road construction, contracting, materials, equipment, technology, safety, sustainability and infrastructure development. Presented by Minister Tamta, the awards honoured organisations that are setting new benchmarks for quality, innovation and execution across India’s roads sector.
RAHSTA Expo 2026 also received extensive support from across the infrastructure ecosystem. Alongside leading corporate sponsors, the event was backed by industry bodies including the Builders Association of India (BAI), Construction Equipment Rental Association (CERA), Consulting Engineers Association of India (CEAI), International Road Federation (IRF), CSIR-CRRI, CILT India, All India Transporters Welfare Association, Hydraulic Trailer Owners Association (HTOA), Gujarat Contractors Association, Bitumen Forum, Fluid Power Society of India, Indian Institute of Material Management, Ministry of Ports, Shipping and Waterways, Gati Shakti Vishwavidyalaya and Mumbai First, reflecting the industry’s collective commitment to advancing India’s road infrastructure.
As the curtains came down on the two-day event, one message resonated throughout the conference: India’s highways story is entering a new chapter. While expansion will continue, the future will increasingly be defined by smarter planning, stronger partnerships, digital transformation, sustainable engineering and long-term value creation. By bringing together the entire infrastructure value chain on a single platform, RAHSTA Expo 2026 once again demonstrated why it has become one of the country’s most influential forums for shaping the future of roads, highways, bridges and tunnels.
Economy & Market
Fornnax Names Lukas Baur as Authorised Service Partner to Bolster EU Operations
Published
4 weeks agoon
July 23, 2026By
admin
Strapline: Fornnax Technology has appointed NOBA Maschinenservice’s Lukas Baur as its authorised service partner for the European Union, strengthening its commitment to delivering fast, reliable, and localised after-sales support across the region.
Fornnax Technology, a leading manufacturer of industrial shredding solutions, has announced the appointment of Mr. Lukas Baur of NOBA Maschinenservice as its authorised service partner for the European Union. The partnership, formalised under the authorisation of Fornnax CEO Mr. Jignesh Kundaria, reinforces the company’s commitment to providing dependable, localised service support to its expanding customer base across Europe.
Strengthening Service Through Proven Expertise
With over two decades of experience in servicing, maintaining, and overhauling industrial shredders, Mr. Baur brings extensive technical expertise to the partnership. His capabilities span welding, hardfacing, shaft and knife rebuilding, complex assembly, hydraulics, and complete electrical engineering services, delivered in collaboration with a trusted partner company based in Halle/Saale.
Operating from Worbis, Germany, Mr. Baur is strategically positioned to provide emergency support across the European Union within 24 hours, covering an operational radius of approximately 1,000 kilometres.
Supporting this capability is a well-equipped service infrastructure comprising 12 Mercedes Sprinter service vans, a team of 24 skilled technicians, specialised bearing-change tools, a fully equipped hydraulic workshop, and a 1,000-square-metre facility with a five-ton crane track. Together, these resources position his team to manage the complete spectrum of Fornnax’s European service requirements efficiently and reliably.
Partnership Driven by Industry Insight
Having spent years servicing Eldan, Lindner, and Vecoplan shredders across the European recycling industry, Mr. Baur’s decision to collaborate with Fornnax is rooted in his understanding of market needs and customer expectations. His experience has provided valuable insight into what recycling plant operators require—not only from their machinery but also from the service teams supporting them.
According to Mr. Baur, Fornnax’s reputation for robust machine construction, superior wear protection, and maintenance-friendly design made the partnership a natural fit.
The collaboration comes at a time when Europe’s tyre recycling industry is facing mounting challenges, including rising cost pressures, shrinking margins, delayed investments, and a shortage of skilled labour. Mr. Baur believes these conditions reinforce the need for technically strong service partners capable of delivering rapid, dependable support.
Commenting on the partnership, he said, “Fornnax, with its exceptional price-performance ratio and superior quality, has the potential to become a market leader in Europe. We would like to be their service partner in this journey.”
Comprehensive Support Across the Equipment Lifecycle
As Fornnax’s authorised service partner, Mr. Baur will oversee the complete lifecycle support of the company’s equipment throughout the European Union. His responsibilities will include installation, commissioning, preventive maintenance, emergency repairs, and spare parts support across mechanical, hydraulic, and electrical systems.
Looking ahead, he also plans to develop a centralised spare parts distribution hub for European customers, particularly if Fornnax establishes a warehouse facility in Worbis to facilitate faster deliveries. To further strengthen service coverage, Mr. Baur intends to expand operations by adding two to three additional service teams and vehicles each year, progressively increasing capacity across the continent.
A Shared Commitment to Customer Excellence
Highlighting the strategic importance of the partnership, Mr. Jignesh Kundaria, Director and CEO of Fornnax, said:
“We strongly believe that by continuously improving our service quality and customer satisfaction index, we can build long-term relationships with our customers. Higher customer satisfaction leads to greater trust, which significantly increases repeat orders and ultimately drives sustained growth in our sales revenue.”
This customer-first philosophy underpins Fornnax’s strategy of building a dedicated European service partner network instead of relying solely on remote support. With Mr. Baur joining this network, customers across the European Union will benefit from faster response times, expert technical assistance, and dedicated on-ground support from a partner with extensive experience in high-throughput shredding operations.
Mr. Baur’s appointment also reflects Fornnax’s broader ambition to establish itself as the preferred shredding solutions provider for the European recycling industry, marking another important milestone in the company’s international growth strategy.
From LC3 and AI-driven kilns to RDF gasification, ICR explores the full breadth of technological innovation reshaping India’s cement industry. Low-carbon materials, digital manufacturing, alternative fuels and breakthrough concrete science are collectively advancing the sector’s transition from high-emission commodity producer toward a net-zero, infrastructure-ready future.
Innovation has become the defining force shaping the future of the cement industry. As the world’s second-largest cement producer, India is witnessing rising demand driven by infrastructure development, urbanisation, affordable housing, and industrial growth. At the same time, the International Energy Agency (IEA) estimates that cement production accounts for nearly 7 per cent to 8 per cent of global CO2 emissions, with clinker manufacturing contributing the largest share, making innovation an operational necessity. The industry is therefore investing heavily in low-carbon cement technologies, artificial intelligence (AI), digital manufacturing, alternative fuels, renewable energy and carbon capture, utilisation and storage (CCUS). Innovations such as limestone calcined
clay cement (LC3), supplementary cementitious materials (SCMs), AI-driven process optimisation and automated quality control are enabling manufacturers to produce more sustainable, efficient, and high-performance cement.
According to the Global Cement and Concrete Association (GCCA), achieving net-zero emissions will require a combination of material innovation, digital transformation, circular economy practices and collaborative research, making innovation central to the industry’s long-term competitiveness and India’s sustainable infrastructure growth.
Next-generation cement
The future of cement lies in reducing its dependence on clinker-the most carbon-intensive component of cement-through the adoption of low-carbon materials and advanced blended cement technologies. Products such as Portland Pozzolana Cement (PPC), Portland Slag Cement (PSC), Portland Composite Cement (PCC), and LC3 are driving this shift by replacing clinker with SCMs like fly ash, GGBS, calcined clay and limestone.
According to GCCA, SCMs can replace 30 to 50 per cent of clinker, with some applications exceeding 70 per cent, significantly reducing carbon emissions without compromising strength or durability. These blended cements also improve concrete performance by enhancing durability, reducing permeability, and increasing resistance to chloride and sulphate attacks. As the availability of traditional SCMs declines with the decarbonisation of the power and steel sectors, the industry is increasingly exploring alternative materials and next-generation cement formulations to support long-term sustainability.
Shrivats Singhania, Deputy Managing Director, JK Lakshmi Cement, says, “Innovation is enabling the cement industry to address one of its most important challenges – producing more with fewer resources and lower emissions. Across the value chain, manufacturers are deploying technologies that simultaneously improve operational efficiency and advance sustainability goals. For example, greater adoption of alternative fuels, waste heat recovery systems, renewable energy, and digital process controls is helping reduce energy consumption and optimise resource utilisation. Data-driven manufacturing allows plants to monitor operations in real time, improve equipment reliability, minimise downtime, and reduce wastage, resulting in both environmental and economic benefits.”
“Meaningful progress is also being achieved through material innovation. The growing use of blended cements and next-generation products such as LC3 reduces dependence on clinker, the most carbon-intensive component of cement production, thereby lowering embodied carbon without compromising performance,” he adds.
Among emerging technologies, LC3 has gained global recognition as one of the most promising low-carbon cement innovations. In a standard formulation, LC3 comprises approximately 50 per cent clinker, 30 per cent calcined clay, 15 per cent limestone, and 5 per cent gypsum. LC3 can reduce CO2 emissions by up to 40 per cent compared with Ordinary Portland Cement (OPC) while delivering comparable strength and enhanced durability. Its reliance on abundant, locally available raw materials, rather than industrial by-products, makes it highly scalable and well suited to countries like India.
According to the LC3 Project, nearly 75 per cent of cement plants worldwide could adopt LC3 using existing manufacturing infrastructure, potentially reducing global CO2 emissions by over 400 million tonnes annually, if adopted at scale globally. India’s introduction of BIS standard IS 18189:2023 for LC3, coupled with its adoption in projects such as the Noida International Airport, marks a step toward commercial implementation. As demand for sustainable construction grows, LC3 is poised to become a cornerstone of low-carbon infrastructure development.
Making of a smart cement plant
The modern cement plant is rapidly evolving into a digitally connected, AI-enabled manufacturing ecosystem where data drives every aspect of production – from raw material proportioning and kiln operations to quality control, maintenance and energy management.
According to IEA, digital technologies can improve energy efficiency in heavy industries by 10 per cent to 20 per cent. Advanced process control systems in cement plants have demonstrated the potential to reduce thermal energy consumption by 3 to 5 per cent, lower electricity consumption by 2 to 10 per cent, and improve kiln throughput and clinker quality. AI-powered predictive maintenance further helps reduce unplanned equipment downtime by 30 to 50 per cent and extend equipment life by continuously analysing sensor data to detect failures before
they occur.
Jignesh Kundaria, Director and CEO, Fornnax Technology, says, “AFR is no longer viewed solely as a sustainability initiative. It has become a strategic business priority for cement manufacturers. Rising fuel costs, stricter environmental regulations, and growing pressure to reduce dependence on conventional fuels are accelerating AFR adoption across the industry. However, the success of an AFR project depends heavily on how effectively waste is processed before it reaches the kiln. Poor preprocessing can negatively impact kiln performance, fuel efficiency, and emission control systems. Inconsistent fuel
quality often forces operators to make frequent adjustments, reducing throughput and increasing energy consumption.”
Dr Kapil Kukreja, General Manager, NCCBM, says, “Variations in composition, particle size, and calorific value can lead to inconsistent combustion behaviour resulting in fluctuating heat release patterns. These fluctuations can affect process stability, temperature control and clinker quality. Additionally, incomplete combustion of RDF particles can result in increased emissions, higher unburnt carbon content, and operational difficulties within the calciner system. Higher ash and inert content of RDF can dilute the clinker quality and reduce calciner efficiency.”
Meanwhile, digital twins are allowing manufacturers to simulate entire production processes, optimise kiln performance, evaluate process changes virtually, and reduce operational risks before implementation. Automated Laboratory Information Management Systems (LIMS), coupled with online and offline XRF and XRD analysers, are delivering real-time monitoring of clinker chemistry and mineralogy, ensuring tighter quality control, lower clinker variability and more consistent cement performance.
Dr Prateek Sharma, Group Project Manager, NCCBM, explains, “Chlorides and alkalis present in RDF can lead to excess buildup and blockages in the kiln and calciner increasing the downtime of cement plants. Hence, issues with direct utilisation of RDF establishes the need for fuel conditioning and alternative utilisation approaches that can maximise the energy potential of RDF while minimising adverse impacts on plant operation. RDF gasification emerges as an efficient tool for converting solid RDF into syngas which can be used as a fuel with improved characteristics.”
Digitalisation and intelligent manufacturing will be among the most critical enablers of achieving the cement industry’s net-zero ambitions by improving operational efficiency while simultaneously reducing energy consumption and greenhouse gas emissions, confirms a GCCA report.
From research to reality
While the cement industry has made remarkable progress in developing breakthrough technologies, the transition from laboratory research to large-scale commercial deployment remains one of its greatest challenges. The successful adoption of innovations such as LC3), CCUS, advanced alternative fuels, green hydrogen and novel SCMs depend not only on technical feasibility but also on economic viability, regulatory support, raw material availability, and market acceptance.
Veerendra Jamdade, CEO and Founder, Vritti Solutions, states, “The cement industry has a market that is constantly in flux, due to factors such as infrastructure investment, seasonality of demand, fuel costs, building activity by region and general economic cycles; therefore, having accurate forecasts is very important in this type of market. Traditional ERP systems are primarily data repositories with limited analytic functionality; thus, they capture transactional and operational information but generally lack advanced analytical capabilities for converting captured data into actionable information. This
affects everything from demand forecasting and inventory planning through procurement and production scheduling.”
According to IEA, technologies that are still at the demonstration or early commercial stage-including CCUS and next-generation low-carbon binders-are expected to contribute nearly 40 per cent of the emissions reductions required for the global cement sector to achieve net-zero emissions by 2050, underscoring the importance of accelerating their scale-up. This requires robust R&D ecosystems, stronger collaboration between cement manufacturers, research institutions, technology providers,
equipment suppliers, and policymakers, as well as supportive standards and financial incentives to reduce investment risks.
Ashutosh Pandita, Director – Head, Cement Business, TKIL Industries, elaborates, “The cement industry’s most transformative innovation today is the increased use of alternative fuels and raw materials (AFR), supported by advanced feeding systems and process technologies that are driving both operational efficiency and decarbonisation. Looking ahead, oxyfuel combustion and carbon capture technologies remain underappreciated but hold immense potential for enabling deep reductions in carbon emissions and accelerating the industry’s journey towards net-zero production. By 2030, cement manufacturing is expected to become significantly more sustainable, energy-efficient, and technology-driven, with widespread adoption of AFR, low-clinker cement technologies, greater digitalisation and automation, and the early commercial deployment of carbon capture solutions, all supported by stronger industry collaboration and a shared commitment to achieving long-term sustainability goals.”
In India, organisations such as the National Council for Cement and Building Materials (NCCBM), leading academic institutions, and major cement companies are working together to develop and validate emerging technologies, while the introduction of standards such as IS 18189:2023 for Limestone Calcined Clay Cement (LC3) marks a significant step towards commercial adoption. However, challenges such as high capital investment, long validation cycles, limited infrastructure for technologies like CCUS, fluctuating availability of alternative raw materials, and customer acceptance continue to slow implementation. Bridging the gap between research and commercial reality will therefore require sustained investment in innovation, knowledge-sharing, pilot projects, policy support, and industry-wide collaboration to ensure that promising technologies evolve into scalable, economically viable solutions capable of transforming the future of cement manufacturing.
Creating a green future
Clinker production will increasingly rely on low-carbon technologies such as LC3, high-volume SCMs, AFR, renewable energy, waste heat recovery, and eventually CCUS, enabling manufacturers to significantly reduce their environmental footprint.
Achieving net-zero concrete by 2050 will require a combination of clinker substitution (around 37 per cent of cumulative CO2 reductions), carbon capture technologies (approximately 36 per cent), and improvements in thermal efficiency, renewable energy, and circular economy practices.
Industry Expert SA Khadilkar comments, “Customer requirements are a key driver of innovation in the cement industry, influencing product development, process improvements, sustainability initiatives, and digital solutions. Innovation is most effective when it addresses real market needs, particularly in areas such as performance, durability, and application-specific requirements. Around a decade ago, ACC and Ambuja Cements (now Adani Cement) recognised this shift and introduced performance-oriented blended cement brands with enhanced durability, reduced water penetration, and OPC-like properties. Their success encouraged other major cement manufacturers to develop specialised cement brands with unique performance characteristics, demonstrating how product innovation has evolved to meet changing customer expectations.”
“Ultimately, customer expectations have transformed innovation from a technology-driven exercise into a market-driven strategy, ensuring that new developments create measurable value across the construction value chain,” he adds.
India is expected to add nearly 500 million square metres of urban built-up area by 2030, driving sustained demand for greener, more durable, and higher-performing construction materials, according to NITI Aayog. Meeting this demand will require cement manufacturers to evolve from commodity producers into integrated providers of sustainable building solutions, supported by data-driven manufacturing, collaborative R&D, customer-centric product innovation, and circular resource management. The cement plant of tomorrow will therefore be defined not only by its production capacity but also by its ability to manufacture smarter, cleaner, and more sustainable construction materials that support India’s ambitious infrastructure and climate goals.
Conclusion
The path ahead is clear in its direction, if not yet in its pace. India’s position as the world’s second-largest cement producer, combined with its infrastructure ambitions and its 2070 net-zero commitment, makes this transition both urgent
and consequential.
What this article has made evident is that no single technology will carry the industry to net zero. LC3 addresses clinker dependency. Digital manufacturing addresses efficiency and waste. Alternative fuels address fossil fuel dependence. CCUS addresses the residual process emissions that no other lever can reach. Each is necessary. None is sufficient alone. The industry’s task is to advance all of them simultaneously, at a pace that matches the scale of the challenge.
The plants that will build tomorrow’s highways, airports and homes will need to do so with a fraction of today’s carbon footprint.
Innovations in cement and concrete
- Carbon mineralisation in concrete: A 2026 peer-reviewed study in the Journal of the American Ceramic Society by MIT’s Masic Lab and CarbonCure Technologies used in-situ Raman microspectroscopy to show that CO2 injected during cement mixing triggers a three-stage hydration sequence, producing a more uniform microstructure with approximately 13 per cent higher early strength while permanently sequestering carbon within the concrete matrix.
Source: www.carboncure.com
- Zero-clinker geopolymer blocks: Theseus Development manufactures geopolymer blocks using upcycled aluminosilicate waste from quarries and mines through an inorganic polymerisation process, achieving up to 80 per cent lower embodied carbon compared to conventional cement blocks. An interlocking block design reduces mortar requirements, lowering construction costs while eliminating clinker entirely from the production process.
Source: www.rmi.org
- 3D-printed basalt fibre grids: Austrian startup Fiber Elements, founded in 2023, uses robotically wound continuous basalt fibres arranged into three-dimensional reinforcement grids that replace steel in concrete structures. The resulting composites are three times stronger than steel, weigh two-thirds less, resist corrosion entirely and reduce CO2 emissions by up to 70 per cent compared to conventional steel-reinforced concrete.
Source: www.eitmanufacturing.eu
- Self-healing concrete: Dutch company Basilisk leads commercial deployment of bacteria-based self-healing concrete, with licensed production now active in Japan and a highway viaduct pilot planned for 2026. Dormant Bacillus bacteria embedded in the mix activate upon crack formation, metabolising nutrients to precipitate calcium carbonate that autonomously seals fractures. The global self-healing concrete market is projected to grow significantly through 2031, driven by green building mandates and infrastructure agencies targeting lower maintenance costs and extended structural life.
Sources: www.thelegaljournalontechnology.com and www.mordorintelligence.com
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