Connect with us

Economy & Market

Revival is in the Offing

Published

on

Shares

The demand growth trend picked up steam in FY18. Expectations are rife that FY19 will consolidate these gains and result in higher capacity utilisation, if not pricing power.
After a couple of years of demand pressures and price pressures, the Indian cement industry is expecting a full-fledged recovery in demand growth in the current fiscal. Cement production grew by 6.3 per cent and touched 298 million metric tonnes (MMT) in FY18 (2017-18), from 280 MMT in FY17, which is a 1.2 per cent fall compared to FY16. Apart from growth in demand seen in some key markets, rating agency ICRA has attributed this growth also to "the base effect of the demonetisation-driven low demand during the corresponding period of last year."
The demand for cement also dipped along with the deceleration in growth in the economy following currency demonetisation in November 2016, which derailed the growth momentum across several industries. Close on the heels of this debilitating disruption, hurried introduction of Goods and Services Tax (GST) has also left its negative trail. The growth reported in FY18 has come from the last two quarters of the year – at 11 per cent and 18 per cent respectively, despite negative growth registered in the first half of the fiscal. Analysts are considering this growth trend to be the first sign of sustained growth to be witnessed in the next few years.
Two-thirds of the total cement demand comes from housing and the remaining from infrastructure and industrial construction. "Two areas where we evidently see growth from for the cement industry is from housing and infrastructure. For the current year, we expect 5.5-6.5 per cent growth in cement production, says Ashish K Nainan, Research Analyst – Industry Research, CARE Ratings.
Is there any scope for increasing cement consumption in India? The answer is in the affirmative. Despite India being the second largest producer of cement in the world, even after two-and-a-half decades of globalisation, its per capita consumption is down in the dumps. "India is one of the lowest in per capita consumption of cement. Average consumption in India is just ~200 kg/year compared to 1700 kg/year in China and 660kg/year in Vietnam (comparable developing economy). The global average consumption is far ahead at 580kg/year," says Anoop Kumar Saxena, CEO-VICAT in India.
Calling FY18 as ‘a landmark year for the industry’ which has surpassed all odds and delivered reasonably good operating results, Vaibhav Agarwal, Analyst with PhillipCapital India Research, says, "FY19 will be a ‘year of pure execution’ driven by improving operating efficiencies, focus on a sustainable rise in volumes, and the industry re-establishing its attention on improving cement prices, led by UltraTech." Triggers
Sabyasachi Majumdar, Senior Vice President & Group Head, ICRA,
who has hinted at the first signs of revival in cement demand as back as in February 2018 itself and predicted around 5 per cent growth in FY19, said then, "This demand growth is bolstered by a pick-up in the housing segment – primarily affordable housing, rural housing and higher infrastructure spend. Improved rural incomes, higher rural credit and increased allocation for rural, agricultural and allied sector are likely to boost rural housing demand."
"Further, Pradhan Mantri Awas Yojana (PMAY) continues to be a major driver for cement demand with around 50 lakh houses targeted in the rural areas and 37 lakh houses in the urban areas in FY2019. Also, the demand is likely to be supported by the higher outlay on urban housing and the increased thrust on infrastructure as reflected in 21 per cent higher allocation," Majumdar added.
Despite several micro and macro challenges, such as demonetisation, GST, RERA, bans on overloading, sand mining, and petcoke, many of which were structural, the industry has seen a visible demand recovery in FY18, especially in the second half.
"A substantial recovery in rural demand especially from Individual House builder (IHB) segment along with sustained pickup in infrastructure development aided demand growth. We believe demand growth for current fiscal should remain healthy mainly to be supported by PMAY housing projects and continued thrust on infrastructure development," says Binod Kumar Modi – Senior Analyst – Reliance Securities.
Real estate sector witnessed disruption in construction and sales activity beginning demonetization exercise. The disruption continued with builders taking a cautious approach to RERA [The Real Estate (Regulation and Development) Act, 2016] implementation, temporarily halting new sales or construction. Implementation of RERA in May 2017 impacted the demand for cement from real estate segment in Q1 and Q2 of FY18.
FY18 witnessed implementation of Union Government backed mega-infrastructure projects such as Bharatmala for roads, Sagarmala for ports and development of dedicated freight corridors and smart city project.
"We feel the current focus from the Government is positive for the cement sector in particular. Infrastructure offers a huge tapable market for cement in India, but is limited due to limited funding for these projects at the moment. On the other hand, housing in rural and urban markets are expected to witness steady demand on the back of higher disposable income and factors like good monsoons," says Nainan.
The demonetisation exercise had impacted the demand from rural and retail real estate segment during the second half of Q3 and, Q4 in FY17. But the same has evidently recovered during FY18.
Demand drivers
VICAT India, having presence mostly in South India, expects that cement demand expected to grow ~7-8 per cent year-on-year (YoY) over the next two-three years. By now it is a given with several analysts predicting that the demand growth for cement during FY19 will surpass 5 per cent level.
Cement consumption is broadly classified into demand from three distinct segments:
Housing and real estate (65%)
Public infrastructure (20%)
Industrial development (15%)
All the analysts ICR spoke to are voting for affordable housing as the prime mover of cement demand in the coming years. Nainan of CARE says, "If one were to go by the bare-minimum market demand, affordable housing is a 8-10 billion sq.ft. opportunity. And this would form the backbone for cement demand over the next 2-3 years. Expect a 6-7 per cent growth in demand in the housing segment for cement.
Additionally, the Government has set aside Rs 6,500 crore for affordable housing in the budget which will work like a stimulus."
Stating that ICRA expects the cement demand to show a growth of around 6 per cent in FY2019, Majumdar says, "This is primarily driven by a pick-up in the affordable and rural housing segments and infrastructure – primarily road and irrigation projects. The budget of FY2019 also provides support in this direction with higher rural credit, increased MSP, increased allocation for rural, agricultural and allied sectors along with continued focus on the PMAY and infrastructure investments."
Table 1. Affordable Housing – Gross Budgetary support)
2017-18 2018-19
PMAY-Grameen Rs. 23,000 Rs. 21,000
PMAY-Urban Rs. 6,043 Rs. 6,500
"The cement consumption stood at an estimated volume of 305 million tonnes (MT) in FY18, and is expected to grow at 6-7 per cent over the next 3-5 years, on the back of higher government spending in rural and urban housing projects and growth in infrastructure spends," says Madhumita Basu, Chief of Sales, Marketing & Innovation, Nuvoco.
In the residential real estate segment, the demand was subdued in comparison to previous year due to introduction of RERA in May 2017. RERA led to disruption in construction activity and real estate developers went slow on launching new projects in Q1 and Q2 FY18. However, this dip in demand was offset by demand from construction of affordable housing.
BK Modi believes that infrastructure share in total cement consumption is likely to move up from ~25-30 per cent going forward, while explaining, "Growing urbanisation and huge infrastructure deficit in the country – which requires infrastructure development as to support sustained GDP growth – are likely to ensure higher cement consumption in this segment."
Infrastructure projects like smart cities, metro projects, roads, ports and airport projects are expected to boost cement demand would witness higher growth of 8-10 per cent from this segment. "Infrastructure development has been a key plank for the current Central Government and few key projects are nearing completion especially in the view of a nearing General Election," says Nainan.
Infrastructure contributed immensely to the cement demand in FY2018. And pre-election spending has been one of the key demand drivers for cement historically in India, particularly from infrastructure segment. It can be sensed from the favourable budget allocations on Metros, road and highways, railways, ports and irrigation projects. "We further expect traction in road construction to continue in FY19 considering 7,400 km (up 70 per cent YoY) projects awarded in FY18. Additionally, Bharatmala programme – which targets to build approximately 34,800 km by 2022 in Phase I, with an estimated investment of Rs 5.3 trillion – is likely to aid sustained demand growth for cement industry," says BK Modi. Capacity additions
In their zeal to gain market share, aggressive manufacturers added robust capacity, leading to capacity utilisations collapsing from peak full capacity in 2008 to less than 70 per cent. However, expansions helped many manufacturers gain scale and size. "From here, we expect the industry to consolidate its position and then announce green field capex. Brownfield expansions and revival of unproductive assets will drive capex from FY19 to FY21," says Agarwal of PhillipCapital.
Madhya Pradesh, Rajasthan, Andhra Pradesh, Gujarat, Chhattisgarh, Tamil Nadu and Karnataka are the largest limestone producing states in the country which is an essential raw material for cement. "Currently, cement production capacity is 441 MMT and expected to increase to 467.3 MMT by 2019 and likely to further increase to 484.1 MMT by 2020-2021. Significant concentration of the cement capacities will continue to increase in southern and western regions, largely due to bulk of limestone reserves in these regions," says Saxena of VICAT.
However, capacity utilisation is expected to remain in the range of 65-70 per cent in the next two-three years, analysts say.Consolidation
Acquiring cement assets is cost-effective for the acquirer and provides access to new market and a ready-made supplier network. Cement industry is fragmented and 55-60 per cent market share is controlled by large players and consolidation in cement sector has not significantly changed the share of large players.
Agarwal feels that incremental consolidation will be slow. However, BK Modi is of the view that considering the ongoing high cost scenario and muted realisation environment, it could be difficult for many small and mid-sized cement companies to operate in dismal profitability. "Hence, industry consolidation will continue going forward."
Nuvoco’s Basu thinks that with the major players adding capacity; the prices will come under pressure as ramping up of new capacity and capturing market growth would take priority. Looking ahead
The demand for cement will continue to grow at above 5 per cent level in the next two-three years, mainly with push coming from affordable housing projects in both urban and rural areas. The next one year is expected to be good for cement demand from infrastructure segment, being a pre-poll year. Industrial consumption of cement has been muted since November 2016 and it is unlikely to get a leg up.
The hectic consolidation activity is expected to slow down a bit going ahead, but the scene is expected to shift to smaller and newer players, with costs inching up day by day and continuing pricing pressures. Though operating environment of the industry has improved in FY18, the same cannot be said about FY19 given rising costs, unless demand spikes.
Availability of sand is a major challenge to the construction activity in India. Though artificial sand is being pitched as an alternative, its acceptability is still low.
Cement capacities, expansions and prices will be driven by regional considerations more than anything else. CARE ratings predicts that the all-India prices will remain in the range of Rs 317 (+/- 5 per cent per bag post GST) during the year."
From the present stand point, the industry has to guard against risks like hindrance to volume growth momentum and rising costs.– BS SRINIVASALU REDDY

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