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Multiple headwinds to slow down cement cos earnings

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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.

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Economy & Market

Fornnax Names Lukas Baur as Authorised Service Partner to Bolster EU Operations

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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.

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Nuvoco Vistas launches Limla cement plant, expands Gujarat footprint

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Nuvoco Vistas opens a 2 MMTPA grinding unit at Limla, entering Gujarat and advancing its target of 35 MMTPA capacity by FY 2028.

Surat (Gujarat)

Nuvoco Vistas Corporation Ltd, a part of Nirma Group and one of India’s leading building materials company, has inaugurated the Limla Cement Plant in Surat (Gujarat), one of Vadraj Cement Limited’s (VCL) principal manufacturing facilities. The commissioning represents a key milestone in Nuvoco’s acquisition and restoration of VCL, while supporting the company’s expansion across the Western Indian cement market.

Vadraj Cement Limited is a subsidiary of Nuvoco Vistas Corporation Limited and has installed cement capacity of 6 MMTPA across its assets. The Limla inauguration therefore represents the first operational step in the acquired platform’s wider revival, while the Kutch facilities provide clinker supply, mineral security and coastal logistics support for the western business.

Nuvoco completed its acquisition of Vadraj Cement Limited, then under the Corporate Insolvency Resolution Process, after paying a consideration of Rs 1,800 crore in June 2025. VCL’s asset portfolio comprises a clinker unit at Kutch and a grinding unit at Limla in Surat. It also includes high-quality captive limestone reserves and a captive jetty at Kutch, supporting more efficient logistics. Following the takeover, Nuvoco began an extensive programme of restoration, refurbishment and expansion at both locations, leading to the commissioning of the Limla plant.

The Limla Cement Plant is expected to support a phased increase in sales volumes across Gujarat. It will also help Nuvoco supply neighbouring markets in Western Maharashtra and release cement capacity from its northern plants, which can consequently be redirected towards markets in North India. The plant will manufacture a full portfolio comprising Ordinary Portland Cement, Portland Slag Cement, Portland Pozzolana Cement and Portland Composite Cement. It will additionally produce the complete Nuvoco Duraguard range, including the premium Nuvoco Duraguard Microfibre product. The acquisition is also expected to generate operational synergies with Nuvoco’s existing plants at Nimbol and Chittorgarh in Rajasthan, improving logistics optimisation and market reach across important regional markets.

The grinding unit at the Limla Cement Plant was completed ahead of schedule, with 2 MMTPA of capacity now inaugurated to expand Nuvoco’s operating scale and customer reach. After Vadraj Cement’s assets become fully operational, plants in North and West India are expected to account for nearly 40 per cent of Nuvoco’s total cement capacity. This will broaden the company’s manufacturing network, strengthen access to high-growth markets and support its plan to increase consolidated cement capacity to 35 MMTPA by FY 2028, reinforcing its longer-term growth strategy.

Commenting on the development, Jayakumar Krishnaswamy, Managing Director, Nuvoco Vistas Corp Ltd, said: “The inauguration of the Limla Grinding Unit in Surat is an important milestone in Nuvoco’s growth journey and demonstrates our commitment to disciplined, value-accretive expansion. Gujarat is strategically significant for Nuvoco, with substantial opportunities arising from infrastructure investment, industrial growth, rapid urbanisation and continuing demand from the housing and construction sectors. The facility strengthens our regional footprint, improves operational flexibility and increases our ability to serve customers across northern and western markets with greater reliability and efficiency.”

He added: “Through the Vadraj acquisition, we have refurbished and restarted a strategically important asset, returning it to operations in record time through strong execution and collaboration between teams. The achievement demonstrates our ability to create value from acquired assets, fulfil our commitments and retain the confidence of stakeholders. It also highlights the strength of our project delivery capabilities and our continued focus on building sustainable, profitable growth over the long term.”

Nuvoco Vistas Corporation Limited is a building materials company whose vision is to build a safer, smarter and more sustainable world. It is among the leading players in East India and has a significant presence across North and West India. Nuvoco began operations in 2014 with a greenfield cement plant at Nimbol, Rajasthan. It later acquired Lafarge India Limited, which had entered India in 1999, followed by Emami Cement Limited in 2020 and Vadraj Cement Limited in April 2025. The company has also announced an expansion in eastern India through a new grinding mill at the Arasmeta Cement Plant, supported by several debottlenecking programmes involving equipment upgrades, process improvements and internal capacity initiatives. These developments place Nuvoco on track to achieve total cement capacity of approximately 35 MMTPA. The company reported total income of Rs 11,362 crore in FY 2025-26, reflecting its continuing growth trajectory.

Nuvoco operates a diversified portfolio across three segments: Cement, Ready-Mix Concrete and Modern Building Materials. Its cement portfolio includes Concreto, Duraguard, Double Bull, PSC, Nirmax and Infracem, covering Ordinary Portland Cement, Portland Slag Cement, Portland Pozzolana Cement and Portland Composite Cement. Its pan-India RMX business provides value-added products under Concreto for performance concrete, Artiste for decorative concrete, InstaMix for ready-to-use bagged concrete, X-Con covering M20 to M60 grades, and Ecodure for specialised green concrete. Nuvoco has supplied materials to projects including the Mumbai-Ahmedabad Bullet Train, Birsa Munda Hockey Stadium in Rourkela, Aquatic Gallery at Science City in Ahmedabad, and metro railway projects in Delhi, Jaipur, Noida and Mumbai.

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Concrete

Green Construction Through Cement Innovation

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Indian Cement Review (ICR) and Fuller Technologies brought industry, policy and technology leaders together to discuss how cement innovation can drive green construction at scale, writes Rakesh Rao.

India is building at a pace few countries can match. Highways, airports, housing, logistics parks, industrial corridors and urban infrastructure are reshaping the country’s economic geography. But beneath this growth story lies a difficult question: can India continue to build at scale without locking itself into a high-carbon future?

That question formed the core of an online panel discussion titled “Driving Green Construction Through Cement Innovation”, organised by Indian Cement Review (ICR) in association with Fuller Technologies as the Presenting Partner on June 25, 2026. The webinar brought together experts from cement technology, R&D, global industry platforms, building performance policy and international development cooperation to examine how low-carbon cement and material innovation can accelerate India’s green construction transition.

The discussion came at a crucial time. India has committed to achieving net-zero emissions by 2070 and reducing the carbon intensity of its economy by 45 per cent by 2030. At the same time, the country’s construction sector is expanding rapidly, driven by urbanisation, infrastructure development, housing demand and industrial growth. Cement, as one of the most widely used construction materials, sits at the heart of this transition. It is indispensable to development, but also central to the challenge of reducing embodied carbon in buildings and infrastructure.

Moderated by Nitika Krishan, Senior Urban Infrastructure and Sustainable Policy Consultant, the panel featured:

  • Kiranmai Sanagavarapu, Director, Low Carbon Solutions, Fuller Technologies;
  • Dr Hemantkumar Aiyer, VP and Head R&D, Nuvoco Vistas Corp Ltd;
  • Devika Wattal, Innovation Lead, Global Cement and Concrete Association (GCCA);
  • Dr Sunita Purushottam, MD, GBPN India (Global Buildings Performance Network); and
  • Vaibhav Rathi, Senior Technical Advisor, GIZ (the German Agency for International Cooperation)

Setting the tone for the discussion, Nitika Krishan underlined the scale of the challenge before the sector. “The question before us is no longer whether we build, but how we build sustainably,” she said. She pointed out that construction accounts for nearly 40 per cent of global energy-related carbon emissions when both operational and embodied carbon are considered. Cement production, she added, remains one of the hardest industrial processes to decarbonise.

For India, this is not merely an environmental issue. It is a development issue, a competitiveness issue and increasingly, a market issue. As one of the world’s largest cement producers and among the fastest-growing construction markets, India’s material choices will influence the carbon trajectory of its built environment for decades. As Krishan observed, sustainability solutions in economies such as India must not remain limited to laboratory success. They must be scalable, commercially viable and practical at national level.

The innovation gap: From technology to market

Experts believe that there is a need to bridge the innovation gaps for making decarbonisation in cement and concrete scalable. Devika Wattal of GCCA, explained, “The starting point must be the core cement manufacturing process itself. The first and foremost is the heart of our process, the heart of cement manufacturing. How do we reduce clinker? That is always a topic where industry is working very intrinsically.”

Clinker reduction remains one of the most important pathways for lowering emissions in cement. Since clinker production is energy-intensive and chemically emits carbon dioxide, reducing the clinker factor through supplementary cementitious materials (SCMs), blended cements and new chemistries can have a significant impact. Wattal also noted that carbon capture, utilisation and storage (CCUS) will have a role, though it may not be the first lever for all markets.

However, she stressed that innovation cannot stop at technology development. A solution that works in the lab must also be adaptable to industry, scalable in production and acceptable in construction practice. “It is important for that innovation to be adaptable, to be scalable, and so that it can be executed in real time,” she said.

Wattal also called for stronger enabling systems around innovation. These include performance-based standards, product-level embodied carbon databases and clearer frameworks for evaluating green materials. Without these, low-carbon cement products may struggle to compete with conventional materials in procurement and design.

R&D must balance carbon, cost and performance

Bringing in the R&D perspective into the discussion, Dr Hemantkumar Aiyer of Nuvoco Vistas emphasised that low-carbon cement development cannot be treated as a single-variable exercise. Cement must perform in real construction conditions. It must deliver strength, durability, consistency and cost competitiveness, while also reducing carbon.

“The root of understanding and balancing all these aspects lies in materials, and knowing the materials,” he said.

According to Dr Aiyer, R&D teams must understand the variability of raw materials such as fly ash, slag and clinker. Different sources produce different material behaviours. This makes mix optimisation, material characterisation and processing-property relationships critical. When performance is affected, cement manufacturers must understand how strength enhancers, admixtures and other performance chemicals interact with the material system.

He also linked material science with process efficiency. Clinkerisation takes place at extremely high temperatures, around 1,400 to 1,450 degrees Celsius. Any improvement in raw mix design, process control or energy optimisation can, therefore, help reduce emissions and cost. Dr Aiyer pointed to artificial intelligence-based optimisation, Cement 4.0 tools and advanced software as important enablers for real-time process and material control.

“The more you understand the materials, the more you can control it,” he said.

LC3: The promise is proven, the sequencing is not

Limestone calcined clay cement, commonly referred to as LC3, has attracted global attention because it can reduce clinker content significantly by using calcined clay and limestone while maintaining performance in many applications. Kiranmai Sanagavarapu of Fuller Technologies said the technology itself has already moved beyond proof of concept. Fuller Technologies has worked with calcined clay technology for nearly two decades and has seen plants running in France and Ghana. These plants, she said, are meeting local and national specifications, while the economics are beginning to make sense.

“The calciner is performing, the economics is stacking up, it is making business sense to produce,” she said.

But if the technology is viable, why has adoption not scaled faster? For Sanagavarapu, the answer lies in project sequencing. Too often, clay characterisation happens after equipment is specified. This, she warned, is a backward approach because calciner design depends on clay mineralogy, kaolinite content, iron levels, reactivity, moisture and other variables.

“If you don’t know what your deposit looks like before you commit for the equipment, you are, in a way, going blind into designing,” she said.

She also identified permitting and plant integration as major bottlenecks. Environmental clearances, mining permissions and local regulatory approvals must begin early. Similarly, calcined clay must be integrated into existing grinding, blending and logistics systems from the design stage, not treated as an afterthought during commissioning.

India already has IS 18189:2023 standard for LC3, but Sanagavarapu pointed out that the standard is not yet visible enough in procurement documents. “The gap between what is technically being permitted and what the procurement is asking is the single biggest bottleneck,” she said.

In her view, successful scale-up depends on getting the sequence right: clay characterisation first, permitting in parallel, standards aligned with construction, and integration built into plant design.

India’s LC3 journey: Progress, but demand remains thin

Providing details of India’s LC3 commercialisation experience, Vaibhav Rathi of GIZ noted that JK Cement carried out the first commercial production of LC3 at its Rajasthan plant, followed by JK Lakshmi Cement three months later. These initiatives were supported by the International Climate Initiative of the Government of Germany, with IIT Delhi contributing deep institutional knowledge on LC3 research and BIS certification.

Rathi said India’s early experience has produced clear lessons. One of the biggest was the need to build capacity among regulators. While BIS certification existed, State Pollution Control Boards were unfamiliar with the technology and unsure about the approval pathway.

“The capacity building is not just needed amongst the producer and the users of the cement, but also the regulators who are working with this technology for the first time,” he said.

He also highlighted the need for better information on China clay deposits. Since China clay is currently classified as a minor mineral, centralised data on availability, quality and location is limited. If cement manufacturers are to adopt LC3 at scale, stronger mineral intelligence will be important.

The third issue is demand. LC3 has already been used in projects such as Palava City in Mumbai and Noida International Airport, but these remain limited examples. “It is in a chicken and egg situation,” Rathi said. “Cement companies are saying we need more demand, and users are saying there is not enough cement available.”

Public procurement, he suggested, could help break this cycle. If agencies such as CPWD and other public bodies begin testing, accepting and specifying LC3, it could create the market confidence needed for cement companies to invest in production and storage.

Building codes must catch up with innovation

Dr Sunita Purushottam of GBPN India argued that material choices will determine built environment emissions over the long term, but India’s current policy signals remain fragmented. Although LC3 has received BIS recognition, she pointed out that building codes, municipal bylaws, schedules of rates and sustainability codes do not yet provide uniform guidance on low-carbon cement.

“The current cement regulations are largely prescriptive and favouring traditional materials,” she said. This limits the ability of alternative materials to compete on performance, durability and emissions.

Dr Purushottam also raised the issue of taxation. Cement, including LC3, currently falls under the same GST bracket as conventional cement. A differentiated tax structure, she argued, could help accelerate market adoption. “In order for the market to demand LC3, that differentiation in the GST could go a long way,” she said.

She noted that green building certifications such as IGBC and GRIHA are already creating demand for low-carbon materials by assigning points for embodied carbon and sustainable material use. However, she said large-scale adoption will require regulatory mandates, particularly through building codes and state-level notifications.

She also cautioned that low-carbon cement alone does not solve the entire building performance problem. A material may reduce embodied carbon, but the operational carbon of a building depends on thermal performance, design, insulation and energy use. “The energy part has two elements,” she said. “One is the embodied carbon of the material itself, and the other is the operational carbon.”

Collaboration is the bridge between invention and impact

Wattal said GCCA sees innovation as a strategic priority and works through platforms that connect industry with academia and start-ups. “There is no way we will decarbonise our sector without innovation,” she said.

However, she stressed that research must be connected to actual industry challenges. Innovations developed in isolation may fail when they encounter real-world barriers such as raw material variability, plant integration, cost, standards and finance. Start-ups, too, need industry mentorship and scale-up pathways.

Wattal also flagged the importance of finance. Even strong technologies may struggle to attract investment if there is no common understanding of bankability. “We have always put projects into, is this a bankable project? But the definition of a bankable project has never been defined,” she said.

For India, she saw strong potential in its academic and start-up ecosystem, but said the challenge lies in alignment and prioritisation. The country has the research base, industrial capacity and market size. What it now needs is a coordinated route from innovation to deployment.

There is a practical concern for cement manufacturers: how can existing plants be adapted for lower emissions without compromising reliability or commercial viability?

Kiranmai Sanagavarapu addressed, “The reliability risk in calcined clay retrofit is definitely real, but it is almost always self-inflicted. The risk arises when a new process is added to an existing circuit without properly redesigning grinding and blending configurations.”

Existing cement plants, she explained, can take two broad routes. The first is external sourcing of calcined clay combined with mill optimisation. This requires lower capital investment and can potentially move in 12 to 18 months if other conditions are in place. It may reduce emissions by around 20 to 30 per cent. The second route is integrated calcination on site, which requires higher capital expenditure and longer lead times, but provides greater control over quality, supply and emissions reduction potential.

For Sanagavarapu, the principle is simple: low-carbon retrofits must be designed with intent. “Design it with an intent properly from the start. Start in the market conditions where the economics are already working,” she said.

Circularity: The overlooked advantage

According to Vaibhav Rathi, fly ash and slag are already well established in cement and construction (C&D), but construction and demolition waste remains underutilised. “C&D waste is a growing business opportunity which not many have taken up,” he said. India’s continuous construction and demolition activity creates huge volumes of waste, much of which contributes to air pollution, land degradation and material inefficiency. With the right processing and standards, this waste can be converted into useful construction products.

Rathi also pointed out that LC3 has a circular economy dimension that is often overlooked. It can use low-grade kaolin-rich clay left behind after high-grade clay is extracted for other applications. “LC3 is not only a low-carbon solution, but also a circular economy solution,” he said.

At the same time, he cautioned that LC3 in India is not yet cheap because it has not reached scale. Site-specific techno-commercial feasibility studies, supported jointly by development agencies and industry, could help companies assess whether LC3 production makes technical and financial sense at a given location.

Dr Purushottam added that India must address both low-carbon cement and construction waste together. “Both low-carbon cement and C&D waste go hand in hand. India does not have an option but to work on both,” she said.

Dr Aiyer called for policy shifts from both government and industry, including preferential purchasing of sustainable materials, minimum supplementary cementitious material requirements in public and public-private projects, and faster regulatory implementation. “If we can fast-track the regulatory standards and their implementation on the ground, that is the way to go,” he said.

From green ambition to green construction

Cement innovation is no longer only about chemistry. It is about systems. Low-carbon cement will scale only when technology, standards, procurement, finance, regulation, education and construction practice move together.

LC3 and other low-carbon technologies have shown promise. India has early commercial examples, strong research capability and growing market interest. But mainstream adoption will depend on whether demand can be created, regulators can be capacitated, standards can be embedded in procurement, and manufacturers can see a clear business case.

For a country building at India’s scale, the opportunity is enormous. Cement will continue to be central to infrastructure and urban development. The challenge now is to ensure that the cement used in India’s growth story carries a lower carbon burden.

  • Rakesh Rao

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