Connect with us

Economy & Market

Cement Makers Bullish on FY2019

Published

on

Shares

Cement is never used as cement alone but is always converted to a value-added product in practice. Therefore application of cement becomes extremely important. The cement producers have a dedicated department that looks into the applications of product. Now onwards, we shall try and cover it through a series of articles in a structured way.
India is the second largest cement producer globally and is a vital part of the economic development, providing employment opportunities to more than a million people, directly or indirectly. Since its deregulation in 1982, the Indian cement industry has grown at a tremendous pace attracting huge investments – both from domestic as well as foreign investors. The industry has added over 110 MT of capacity in the last five years.
However, the financial year 2017-18 has been a relatively tough one for the industry due to ban on sand mining, use of pet coke and diminished market concentration of industry leaders. Slower progress in infrastructure projects and low offtake from housing and industrial users also slowed down the growth. A number of foreign players are also eyeing India’s cement sector, owing to high margins and steady demand.Industry structure
The Indian cement industry is dominated by a few companies. The top 20 cement companies account for almost 70 per cent of the total cement production of the country. A total of 210 large cement plants account for a cumulative installed capacity of over 350 MT, with 350 small plants accounting for the rest. Of these 210 large cement plants, 77 are located in the States of Andhra Pradesh, Rajasthan and Tamil Nadu.
Due to increased construction and infrastructural activities, which has led to growth in demand, cement industry has seen major consolidation and large investments in recent years. During the year, UltraTech Cement acquired Jaypee Cement while Orient Cement took over two entities – Bhilai Jaypee Cement and Nigrie Cement grinding unit. An improvement in utilisation rates of the newly-acquired capacities and fresh capacity additions by these players has led to higher volumes.The construction market
India’s construction value of output stands over at Rs 26,500 billion and has been slowly expanding over the years. With value addition close to Rs 10,000 billion, its share in total GDP rose from 5.6 per cent in 1990-91 to over 7.3 per cent in 2017-18. However, the growth of construction activity has slowed down significantly in recent years but picked in 2017-18. The last highest yearly growth of 10.8 per cent was recorded in 2011-12, but thereafter it has not even touched 5 per cent until now. In 2016-17, it is estimated to have increased 1.3 per cent and rebounded to 4.3 per cent in 2017-18. Going ahead, it appears that the growth will remain under 4 per cent, thus will result in slower increase in demand for construction materials including cement. However, the growth will largely depend on the government’s initiative in developing the infrastructure and the process of boosting the housing sector.
In construction, cement is the second largest component, although its value accounts for only 12.5 per cent of total input cost of construction, whereas steel takes away nearly half the cost of inputs. Over Rs 2,100 billion worth of cement is consumed to construct a variety of structures over the past three years. Under this premise, dwelling construction accounts for 27.5 per cent of all construction activity, while another 40 per cent is accounted for non-residential buildings construction. Roads and bridges, which is the major infrastructure component, accounts for just 6.4 per cent of construction. The remaining is other structures and land improvement activity. Thus, housing and commercial construction is the major economic activity and is largely dependent on cement and steel. According to estimates, housing sector accounts for about 67 per cent of the total cement consumption while infrastructure makes up for 13 per cent of the consumption in India.Cement industry performance in 2017-18
Cement production volume in 2017-18 grew 6.3 per cent year-on-year after a decline of 1.2 per cent in 2016-17, for the first time in 15 years as demonetisation reduced demand. The industry with an estimated capacity of about 465 million ton (as of December 2017), saw production grow 3.8 per cent per annum during the period 2012-13 to 2017-18. With no authentic data available on cement consumption or demand, it is assumed in this report, that production will be a proxy to consumption since ending stocks are negligible.
The cement industry witnessed a revival during 2017-18, backed by government spending on infrastructure. Construction of houses under the ‘Housing for All’ scheme and Pradhan Mantri Awas Yojana (PMAY) have been major drivers of demand from the housing segment especially in the rural areas. Infrastructure projects under Bharatmala, Sagarmala and smart cities continued to drive demand from infrastructure segment.
The real estate sector witnessed disruption in the construction and sales activity beginning demonetisation exercise in November 2016. The disruption continued with builders taking a cautious approach to RERA implementation, temporarily halting new sales or construction. Implementation of RERA in May 2017 impacted the demand for cement from real estate segment in first and second quarters of 2017-18.
Cement prices remained range bound in the past four years. They are mainly driven by regional capacity, utilisation levels and demand within the region. The price variation across regions contract when there is steady demand from both retail and institutional cement consumers. Western and eastern regions with favourable demand continue to record higher price for cement.Prospect for 2018-19
Cement demand has a very close linkage with economic growth and government spending. Demand for housing is driven by income growth while infrastructure development largely depends on government expenditure, both state and central. In recent past, demand for cement has remained poor as the economic growth slowed down to less than 7 per cent between 2012-13 and 2016-17 from an average of 9 per cent between 2005-06 and 2010-11 when cement demand had expanded by 8.5 per cent per annum. Considering that economy will grow between 7 to 8.25 per cent in the next five years, the statistical relation between cement demand and economic growth, predicts that cement demand will grow at the rate of 3.6 per cent per annum during the period 2018-23. In 2018-19, demand is expected to rise 3.8 per cent assuming GDP grows 7 per cent and overall construction activity expand 5.2 per cent during the year.
However, large cement companies are bullish on economic growth in 2018-19 and well as on the cement industry. This was largely evident from the developments in the last quarter of 2017-18 and early 2018-19. After a prolonged lull in demand, volume growth picked up pace, buoyed by government spending on infrastructure projects; but prices are far from their historic levels. Cement prices took a hard knock in the seasonally strong March quarter of 2017-18.
Care Ratings observes that demand for cement from housing and real estate sectors is expected to grow by around 7 per cent, and from infrastructure by 8 to 10 per cent. The demand from affordable housing is expected to sustain on the back of the government allocating Rs 6,500 crore for urban housing. Completion of the same would lead to an incremental demand of 1 to 1.5 per cent (3 to 4.5 MT) for cement in 2018-19. Additionally, the monsoon forecasts for the year indicate normal rainfall, which should lead to sustained demand from rural housing segment.
Similarly, infrastructure segment may continue to remain in focus during the year as far as demand for cement is concerned. Development of national highways is expected to contribute 2-3 MT of incremental demand for cement.
Demand from various projects at proposed smart cities and under-construction metro rail projects at various stages of development in 14 cities are some of the projects expected to drive demand for cement during the fiscal 2019. The development of the above-mentioned projects across the geography is expected to improve capacity utilisation of cement plants across the five regions. Election in some of the key states in southern, northern and central regions followed by the general election in 2019 would ensure faster implementation of sanctioned projects. The infrastructure segment is expected to grow by 8-10 per cent, the analysis added.Challenges
Increase in pet coke prices in the global markets and global crude oil price has been leading to increase in domestic diesel prices would impact operating margins of major players during 2018-19.
Availability of sand is a major challenge globally which affects construction activity. India has been facing acute shortage of sand across states especially in northern and southern region. Even though sand seems to be an abundant resource, the availability of sand required for construction is scarce in these regions. Sand is largely illegally mined across many of the states in southern and northern regions, and the respective state governments have been trying to curb the same, in order to boost their tax revenues. This has led to a sudden drop in sand availability for construction.
In 2018-19, capacity addition of around 8-10 MT is expected in eastern and western region. Central, northern and southern regions combined are expected to add about 10-15 MT of production capacity. Revocation of the sand mining ban and acceptance of manufactured sand, popularly known as M-sand in various region, is expected to aid construction activities. It is expected that in order to meet rising demand, cement companies will add 56 million ton capacity over the next three years.
With two major states (Rajasthan and Madhya Pradesh) going into assembly elections followed by general elections in first and second quarters of 2019, the demand from infrastructure and construction is expected to peak in central, eastern and western region. Utilisation in cement capacity across regions is expected to improve during the year to around 67 per cent from 65 per cent in 2017-18.What large companies expect this year to be
ACC expects GDP growth, primarily fueled by consumption, to touch a respectable mark of 7.5 per cent in 2018-19, up from 6.5 per cent in the previous year. Budget initiatives are expected to raise the rural demand and bolster economic growth with initiatives such as Minimum Support Price (MSP) for farmers set at 1.5 times the cost of production, export impetus on agri-produce, increased allocation of Rs 14.4 lakh crore for rural housing and infrastructure and a 26 per cent increase in funding to the Pradhan Mantri Krishi Sinchayee Yojna (PMKSY). Additionally, private consumption expenditure is expected to increase with the implementation of the Seventh Pay Commission hike at the State level.
Demand for cement in 2018-19 is expected to increase from 6-7 per cent with continued government’s focus on rural development, affordable housing, smart cities, as well as infrastructure by laying thrust on construction of cement concrete roads, highways through its "Bharatmala Project", one of the biggest highway construction project. This also includes economic corridors’ development, coastal and port connectivity roads, border and international connectivity roads, expressway etc.
However, the cement industry is grappling with sub-optimal effective capacity utilisation of 70 per cent, with capacity overhang of more than 100 million ton. While cement plants in the northern, central and eastern regions of the country produced at levels above 85-90 per cent of capacity, excess capacity in the southern region has inhibited the industry’s average capacity utilisation. Intense competition and not enough demand pull, will continue to lead to excess capacity in 2018-19. However, this situation is expected to correct itself in 2019 with the increased outlays on housing, infrastructure development and agri-sector initiatives.
The five-fold increase in the outlay on Pradhan Mantri Awas Yojana – Urban (PMAY-U) to Rs31,500 crore, is expected to revive urban housing demand, while generating a 30 per cent share of the overall demand for cement. Infrastructure development outlay for highways, roads and railways has increased by 11 per cent and 22 per cent respectively. This will boost demand for cement from the infrastructure sector, which is estimated to account for 20 per cent of cement demand. A social welfare surcharge of 10 per cent, will replace the existing 3 per cent education cess on customs duty, which will marginally inflate the cost of imported inputs such as petcoke and non-coking coal products.
According to Gujarat Ambuja Cement, 2018-19 will be a year of growth, which has been rightly endorsed by the World Bank. According to the World Bank, when compared to other emerging economies, India has an "enormous growth potential" with the implementation of comprehensive reforms. Key indicators across the economy have shown positive rebounds and there is hope that the upward trajectory will continue in the new fiscal year to help achieve a GDP of +8 per cent for the years to come.
However, it also pointed towards major challenges that can impede cement growth. The industry is dependent on natural resources and is highly energy intensive. Natural resources like limestone, coal and minerals are essential to produce cement. The industry needs to ensure the uninterrupted supply of these materials at an optimum cost and quality, however due to the depletion of reserves, this is becoming challenging. Volatility in the price of coal is also an area of concern for the industry. The quality of raw material additive and mineral gypsum is also depleting.
Nevertheless, with an improvement in the economic scenario, immense potential is being offered to the cement industry by the infrastructural, commercial and housing sectors.
UltraTech Cement is bullish on the growth prospects for the cement industry as the government goes big on roads and metro spendings. Reportedly it said that cement demand in the country could well grow by about 8 per cent in 2018-19, led by government spending on infrastructure. With bulk of demand is being generated from infrastructure spending, roads and metro are driving this growth.Sensitive issues
The government plans banning burning petroleum coke as a fuel nationwide to comply with a Supreme Court request as part of a long-running case to clean the country’s air. A refinery by-product, petroleum coke, or pet coke, is used as a fuel because of its higher energy content than coal, but it releases larger amounts of carbon dioxide and sulphur dioxide, which can cause lung disease and acid rain.
The ongoing consolidation in cement industry has changed the supply dynamics. Competitive intensity remains high as some regional firms are venturing into newer markets and some of them are on a capacity addition spree. So cement makers will be chasing demand growth at the expense of prices. And the trend of depressed prices may not reverse in near term.– NITIN MADKAIKAR

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Concrete

Nuvoco Vistas launches Limla cement plant, expands Gujarat footprint

Published

on

By

Shares

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.

Continue Reading

Concrete

Green Construction Through Cement Innovation

Published

on

By

Shares

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

Participate in Cement Expo 2026 and discover how next-gen infrastructure can be built with innovations in cement.

Continue Reading

Concrete

Indian Railways Plans Green Fly Ash Transport Network

Published

on

By

Shares

Specialised rail logistics will move fly ash from power plants to infrastructure industries.

New Delhi

Indian Railways is planning a large-scale green logistics initiative to transport fly ash from thermal power plants to industries where it can be reused in infrastructure and construction activities.

The initiative was discussed during a review meeting chaired by Union Minister for Railways Ashwini Vaishnaw. Union Ministers of State for Railways V Somanna and Ravneet Singh Bittu were also present.

India generates nearly 340 million tonnes of fly ash every year from thermal power plants. The proposed initiative aims to create an efficient rail-based transport system using specialised containers and dedicated logistics arrangements to move fly ash safely from power plants to end-use industries.

Fly ash is widely used in road construction, cement manufacturing, brick production, concrete, blocks and boards. By improving its movement through the railway network, the initiative is expected to support better utilisation of this industrial by-product while reducing environmental concerns linked to storage and disposal.

The move also aligns with India’s circular economy goals by converting waste from thermal power generation into a useful raw material for the construction and infrastructure sectors. Wider availability of fly ash can help reduce material costs in areas such as bricks and cement, supporting more affordable infrastructure and housing development.

Through this initiative, Indian Railways aims to provide a cleaner, safer and more organised transport solution for fly ash, turning an environmental challenge into an infrastructure resource.

Continue Reading

Video Thumbnail

    SIGN-UP FOR OUR GENERAL NEWSLETTER


    Trending News

    SUBSCRIBE TO THE NEWSLETTER

     

    Don't miss out on valuable insights and opportunities to connect with like minded professionals.

     


      This will close in 0 seconds