Economy & Market
Looking EAST
Published
8 years agoon
By
admin
Vaibhav Agarwal of PhillipCapital India reviews the ups and downs of the cement industry in 2017 and also shares the expectations from the industry in 2018.
The year 2017 has remained a challenging year for the cement industry. As per the Department of Industrial Policy & Promotion, cement production fell 2 per cent yoy in April-October 2017. However, the validity of these numbers is uncertain. GV’s checks pointed at 3-4 per cent industry growth in this period, most of which was led by east-India markets. The demand in the east remains most robust (in double digits) followed by central, north, south, and west markets. Cement manufacturers who have been through a consolidation phase or have increased their capacities (organically or inorganically) continue to outperform in terms of volume growth. The industry saw multiple challenges in 2017, most of which were structural and permanent, including:
Latent effect of demonetisation – mainly dented the southern markets
GST rollout – though this was not a major concern, it created teething troubles in the initial months
Strict loading compliances severely dampened the earnings of several manufacturers – Shree Cement remains the worst affected (led to its de-rating by nearly 20 per cent)
Accommodating the largest consolidation move in the sector – UltraTech acquiring Jaypee
Sand mining bans dented cement demand in several states
Pet-coke ban (implemented by the Supreme Court of India, subsequently withdrawn on a conditional basis)Latent effect of demonetisation
In the initial phases of demonetisation, the southern markets, being less-cash, were least impacted. However, this less-cash nature was limited to the cement distribution system while end markets such as real estate and contractors continued to depend on cash and were negatively affected, which in turn hurt distributors. In order to keep business as usual, cement distributors sought support from cement manufacturers in the form of extended credit periods, which increased the working capital cycle of the industry, especially of southern manufacturers.GST rollout for the cement sector
The rollout was smooth, except for initial teething troubles and a few structural changes in the distribution system, which impacted short-term demand dynamics. The rollout led to the proportion of ex-factory sales increasing multifold, as all buyers were inclined to take full credit of the GST impact by paying the requisite GST on freight component. Because of GST, the differential EBITDA contribution gap between trade and non-trade sales reduced significantly (to just about Rs 10 per bag say from Rs 20-25 earlier), as the differential in cost of sales for cement manufacturers narrowed. While this was more of an initial challenge (now streamlined), it is a key structural change in the distribution system of the sector (but for the better).Strict loading compliances: The dampener
After GST, and given the very strong retaliation on overloading by various NGOs/environmentalists, it is a thing of the past for the cement sector. Ground checks revealed extremely strict adherence to overloading norms in almost all regions of the country. GST has made it extremely difficult for cement manufacturers to not to comply with truck-loading norms, as the processes of invoicing and transportation have become much more transparent. It is very unlikely that this will reverse, and ground checks suggest a sustained impact of Rs 4-10 per bag (depending on region of operation and lead distance travelled).
North and east markets have seen very high overloading in the past, so much so that few plants in east India were shut on grounds on non-compliance to environmental norms. The overloading practices of these plants were severely damaging the roads around the plant and hurting the local habitat. In order to avoid local agitation, in many cases, loading compliance has also been applied to dumpers for limestone transfer from mines. Manufacturers such as Shree Cement have been worst hit, visible in the structural de-rating of the stock by nearly 20 per cent.UltraTech buying Jaypee
This was the sector’s largest consolidation move which had wide-ranging implications. It impacted the distribution dynamics of the states in which the acquisitions were made as UltraTech needed to be accommodated in terms of volume share. Volume pushers such as Shree Cement had to compromise on its volume push strategy – likely to be visible in its Q3 numbers. Another problem was the difference in the mindsets of the managements of UltraTech and Jaypee. While UltraTech has always been predominantly a brand-conscious company, Jaypee’s business model has been based on a volume-push strategy. It was difficult to convince erstwhile Jaypee distributors to come on board UltraTech’s strategy.Sand-mining bans dent demand
Sand is essential for cement usage. For manufacturing concrete, with every tonne of cement nearly four tonnes of sand is needed. For all other usage, for every one tonne of cement nearly eight tonnes of sand is required. Broadly, the ballpark ratio of cement to sand is 1:6. Many state governments of the country such as Tamil Nadu, Bihar, West Bengal, Rajasthan, and Uttar Pradesh have been regularly intervening in sand mining, denting the availability of sand. The worst impacted state is Tamil Nadu, where no resolution seems to be in sight. Various NGOs and environmentalists have raised regular concerns about sand mining, because in many cases this activity is done beyond the allotted quota, leading to illegal sand mining. As a result, many states are now depending on ‘crush sand’ for their requirements. The problem is that all states do not have enough crush-sand infrastructure (factories, licenses) – and this continues to affect sand availability. Though this issue is longstanding, 2017 was one of the worst years for cement demand because of lack of sand availability in the states mentioned above.
Pet coke ban implemented by the Supreme Court, subsequently withdrawn In November 2017, the Supreme Court of India issued an order implementing a ban on pet coke usage by cement manufacturers in overall plant operations in Rajasthan, Haryana, and Uttar Pradesh. GV found that many cement manufacturers in other regions voluntarily changed their fuel (to coal from pet coke) anticipating a ban. Few state governments also issued ‘soft notices’ to cement manufacturers; while these did not outright ban pet coke, they seemed to advise cement manufacturers to stop using or avoid using pet coke.
The industry filed a petition arguing that as long as emission norms of cement factories are within prescribed environmental norms, the industry should be allowed to use any fuel. This plea was partially successful and cement manufacturers were allowed to use pet coke in kiln operations, subject to the plant fulfilling environmental norms. However, the power plants may not be able to use pet coke again. This was another setback for the industry in 2017, and if this stay, which lasted for nearly a month, is implemented permanently, it will definitely have cost implications for cement manufacturers.
All the issues that the industry faced in 2017 are structural and will have long-term implications for the sector:
- After demonetisation, the distribution network, aggregate manufacturers, and other raw material suppliers have learned to be more organised.
- GST brought more parity to the industry’s product mix and in many markets the realisations and EBITDA contribution from trade and non-trade sales have moved more closer.
- The largest cement major of the sector UltraTech acquiring Jaypee has brought major consolidation into the sector, which will take a couple of quarters more to play out. It will be a challenging task for both UltraTech and as well as the industry to accept this consolidation move – from UltraTech’s perspective the key challenge will be to ramp up its consolidated capacity utilisation and garner additional premium for products sold from acquired Jaypee plants. This implies improving base cement prices in these markets, which is a long-term structural positive for the sector.
- The most crucial issue, which may continue to overhang the industry in 2018, will be sand – and it will remain state-specific. Tamil Nadu does not seem to have a resolution in the medium term; hence, demand is likely to remain low in this state. Rajasthan has implemented fresh bans towards the end of November 2017. Availability issues in other states are yet to be fully resolved. The key takeaway from this issue in 2017 is that respective states are likely to roll out permanent measures to address the problem of sand availability (by installing more crush sand factories, issuing new licenses, monitoring sand mining more stringently). Though these measures will take time to fall in place, they should help to prevent sand issues cropping up again.
- The pet-coke ban overhang is over for now, but the learning for cement manufacturers is that their plant operations can be interrupted if they do not comply with environmental norms. It is fair to assume that all cement manufacturers are now making doubly sure that plants consistently remain environment friendly, as this will mean lesser complications in the future.
Overall, 2017 has set a roadmap for cement manufacturers and largely addressed or has brought clarity to many structural issues that were directly or indirectly affecting the sector over the last many years. Going forward, the focus of cement manufacturers will remain limited to core business issues. Their performance will be more consistent as norms are now prescribed or being prescribed for several issues which have been impacting them consistently in the past.2018 roadmap
Demand will pick up in 2018 with the pre-election period round the corner; general elections are due to be held in India by 2019 to constitute the seventeenth Lok Sabha. Therefore, 2018 is the only year left for the government to prove its on-theground execution. Construction activity picks up generally 15 months before general elections and this momentum sustains until about 2-3 months before elections. Historically, cement demand growth in pre-election years has been 5-7 per cent. The key risk to 2018 is that if demand does not revive in 2018, cement demand revival will remain questionable until the end of CY19.
With Aachar Sanhita (model code of conduct for political parties) being implemented before elections, new projects cannot be executed. Demand until the end of election will remain sustainable only from the existing projects. Even after the general elections are over, the new elected government usually remains preoccupied with the making policy agendas and cabinet formation. Hence, a good six months in 2019 can be written off with no incremental demand likely from any new projects except for projects that were already under execution before the Aachar Sanhita is announced.Ear to the ground
- Demand in many pockets such as Andhra Pradesh, Telangana, and the whole of east India remains robust. These regions continue to register double-digit yoy growth. Demand in Andhra Pradesh and Telangana is being driven by fast-track execution of irrigation and infrastructure projects while in east India, infrastructure, housing, and projects to build toilets are driving demand.
- Underperforming states like Karnataka have registered a near double-digit yoy growth in recent months. Recovery is seen as a given in Maharashtra and Gujarat.
- Tamil Nadu and Kerala are unlikely to turn around in 2018 because of lack of political stability and sand issues.
- Rajasthan was impacted by sand issues towards the end of November 2017. Still, the demand in this state remains reasonable. Building toilets has contributed significantly to demand in Rajasthan.
- Demand in other pockets of north India is also picking up. Demand in Uttar Pradesh has gained momentum after sand issues were been partially resolved. Strong revival is seen in this state in 2018.
- Overall, demand sentiment is seen rising in 2018 driven by infrastructure, housing, irrigation, and projects related to building toilets gathering pace. Signs of recovery are already visible in specific areas. The worst in terms of demand seems over and demand should improve from here.
What to expect
The industry has been able to gain clarity on several structural issues in 2017. The way forward in 2018 will only be consistency in performance, improvement in operating matrix, and improvement in overall operating parameters. There are still a few notable consolidation moves pending in the industry, which would be meaningfully favorable in the long term. Recent media articles have suggested a strong possibility of Binani Cement being taken over by few cement majors. Names such as UltraTech, Dalmia Bharat, Shree Cement, and a few PE funds have been in the limelight for this deal. Dalmia Bharat has also already confirmed through a press release that it is looking at acquiring Murli Industries. These deals are likely to be executed in 2018, but since these cases are referred to NCLT, the execution timelines may elongate.
Dalmia Bharat seems the strongest and most aggressive candidate to grow inorganically in 2018. Cement majors such as UltraTech and Shree may face the CCI hurdle in large acquisitions in north India. For other mid-tier cement manufacturers such as JK Cement, JK Lakshmi Cement, and India Cements, improving their operating-cost matrix, garnering better market shares through ramp up of utilisations and improving EBITDA contribution through better branding and cost savings will be
the key.
Composite cement is also likely to be a new and big change for the industry in 2018. Cement manufacturers such as Ambuja and JK Lakshmi have already taken this initiative in a few pockets of east India and have been able to garner a premium of Rs 15-20 per bag. Composite cement will add a big cost lever to the industry, as it significantly improves the blending ratio, though the prospects of manufacturing composite cement will be limited to markets where slag is available. 2018 should be a turnaround year for the cement industry and the beginning of a fresh upcycle. Stability of the cost curve, better brand premium and branding exercises, and steady ramp ups in utilisations are the key factors to watch. On the downside, if 2018 proves disappointing, the industry will continue to struggle until CY19.
The article is authored by Vaibhav Agarwal of PhillipCapital India
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Economy & Market
Fornnax Names Lukas Baur as Authorised Service Partner to Bolster EU Operations
Published
13 hours 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.
Concrete
Nuvoco Vistas launches Limla cement plant, expands Gujarat footprint
Published
2 weeks agoon
July 13, 2026By
admin
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.
Concrete
Green Construction Through Cement Innovation
Published
3 weeks agoon
July 2, 2026By
admin
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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