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The cement industry is at a turning point. As the cement industry is changing, companies are generating value by concentrating on their micromarkets.

India is now the world’s second-largest market for cement after China, both in terms of production and distribution. This has made India an attractive location for investment by incumbents as well as entry by new players. As a result of this investment activity, the sector has seen substantial gains in manufacturing technology, improved product quality, and falling production costs.

Going forward, the Indian cement industry is primed for further growth due to the country’s low cement intensity and strong demand drivers. India’s per capita consumption of cement (at 225 kg) is still far below the global average of over 580kg. It is also significantly lower than other large developing economies like China.This leaves substantial headroom for industry growth in the coming years.

Over the last few years, the cement industry has already pocketed most of the potential benefits from implementing operational best practices at their respective plants. Therefore, the clear challenge for Indian cement companies today is to identify new source of margin improvement. Based on our limited interaction with the industry players, INDIAN CEMENT REVIEW identified three key areas of performance excellence-sales and marketing, next-gen supply chain management and going digital-that can deliver sustained margins for cement players in shifting industry scenario.

The first area of focus for cement players is to achieve excellence in sales and marketing. By taking action on this front, companies can both stimulate demand and improve price realisation to drive margin improvement. A recent report by Kanvic identifies four key elements of sales and marketing where companies currently lag and which can be provide a winning advantage. These elements are improving visibility beyond factory gate, engaging micro-marketing, discounting, and bringing key account management to non-trade customers.

Improving visibility
Often companies are unaware of the actual price at which their products is sold by the trade, or the price at which their competitor sells. As a result of this limited visibility, cement companies bargain power with their channel partners is weakened and they (cement manufacturers) protect their prices. Given the already slim margins in this commodity segment, these blind spots can have a major impact on profitability. Meanwhile, for the individual home buyers, according to Nilesh Narwekar, CEO, JSW Cement, ‘it becomes critical for a cement manufacturer to reach primary and secondary layer as it has a direct logistics bearing, a cost per tonne.’That said, he further added: ‘it is also necessary how a cement manufacturer attracts enough primary and secondary layers to be a part of wanting to sell a particular brand.’

In order to improve visibility, cement companies need to implement an effective system for gathering information from the market on a continuous basis and apply it in a decision making. For example, one of the leading cement manufacturers has created a dedicated team whose sole purpose is to gather pricing information on the company and competitor products.

Since the point of sale is the moment of truth, where the products and solutions meet their customers and end-users, for LafargeHolcim, being a business partner to all players in the distribution chain is the key. According to an official, who did not wish to be quoted, ‘We make our products and solutions available at all times, generating additional business for customers as distributors, retailers, and DIY stores.’ He added, ‘We also offer in-store animations, product knowledge, digital platforms, mobile apps, and financing schemes for customers and end-users, including individuals and professionals.’

Incentivising dealers
The dealer networks are extremely important for companies, contributing 70-80 per cent of their sales. So, borrowing a trick or two from credit card loyalty programmes, many companies now have personalised rewards and recognition schemes for their dealers, affiliates and key influencers. These days, companies are wooing dealers with gold, offering scholarship to kids like never before – with some help from data and algorithms. Cement firm Nuvoco (formerly Lafarge India) conducts a national-level singing competition for the family members of its dealers. A high-engagement activity, it gets participation from nearly 42 per cent of its membership base. Nuvoco, besides organising singing competitions, also has accident and health insurance for dealers and their family members. Another, large cement major awards its dealers’ children who have obtained high marks. This is a big hit in the southern and eastern regions, especially.

Discounting factor
With improved price information, cement companies are better placed to bring greater discipline in discounting. Today, as per the report by Kanvic, cement companies lack strategic approach to discounting, often succumbing to the pressure from their channel partners to increase discount to stimulated demand. To counter these profit-eroding practices, companies need to implement the policies and processes that target discount at where they generate the most value for the business.

For example, by shifting from a uniform discounting policy to one that rewards loyalty and achievement of sales goals, cement companies can differentiate between their most profitable channel partners. The implementation of discount policies should also be accompanied by effective checks and balances that prevent abuse of discount.

Micro-marketing
To maximise the effect of their micro marketing and achieve optimal demand fulfillment, cement companies need to move to a micro marketing approach. This involves getting a picture of demand that is much more granular than the regional or state-level focus that prevails today. Instead, Kanvic believes that Indian cement companies need to zoom in to the district level to measure an area’s sales potential and allocate the necessary resource accordingly.

To this, Narwekar suggests a limited geography for cement players to focus on. He adds, ‘With limited geography, cement players can move its product from source with the best and cheapest route along with efficient transport management.’ This will entail cement players selling X million tonnes in pan-India, instead to a designated geography. From sales perspective, it will be difficult but, if a cement company has a strong network with assured demand from the region, its market share and volumes will increase in the region. ‘However, it’s a double-edged sword,’ cautioned Narwekar.

Today, new digital tools can make this quicker and dynamic. For example, last year Kanvic was assigned with a building material company. Kanvic helped its client to implement a tool where is sales force could record construction activity at the ward level in a major city to indicate where upcoming demand would come from. Through this process, the company was able to uncover untapped areas of demand to focus on.

Hence, by building a granular picture of demand in this way, cement companies can deploy their sales force, allocate marketing spend and plan fulfillment most effectively. Furthermore, with a clear understanding of an area’s sales potential, they can set more accurate targets for their sales team and more closely monitor changes in the market share.

Connecting the dots
Although representing a smaller share of sales today, non-trade cement customers will account for an increasing share of business in the years ahead considering a shift in the market towards non-trade. These larger customers will place very different demands on cement companies’ sales volume and marketing due to their more exacting expectations on price, quality and customer service. In order to profitably serve this growing segment, cement companies will need to implement effective system of key account management.

For Rajnish Kapur, Business Head-Grey Cement, JK Cement, the non-trade cement consumers contributes a significant amount to the company’s coffer. He adds: ‘Cement companies needs to ensure that large customers receive a level of service that is in line with the value they bring to the business.’

However, Kanvic believes that the largest customer base are not always the profitable. Key account practices, which only focus on the size of the customer, will often result in leakage of margins. Instead, cement companies need to make the effort to estimate their customer’s lifetime values to predict the profit their account could generate. On this basis, they can segment their key accounts and provide a level of service that is justified by their profitability.

Strategic approach
The second area where cement players can improve profitability is their supply chain management. Traditionally, Indian cement companies have focused on achieving efficiency in manufacturing, however, they have realised significant success by making good progress on key performance indicators (KPIs), relating to plant and people productivity, and cost reduction.

Yet, when it comes to supply chain, which on an average accounts for 20-25 per cent of a cement company’s costs, there has not been the same level of focus. Whenever Indian cement companies have looked at their supply chain, they’ve tended to take a more operational view that focuses on improving dispatch or route planning. However, to make supply chain a driver of profit improvement, cement companies need to take an end-to-end view that connects supply chain with their business strategy.

On the other hand, the faster growing non-trade segment, which comprises of large customers who buy direct, has different needs. Their expectations are for on-time delivery to meet critical project timeline along with lower price per tonne due to their high volume requirements. These expectations demand an efficient supply chain that delivers cement at the lowest cost. But shifting from an asset utilisation mindset to focussing on improving responsiveness or efficiency, cement companies can design a supply chain that improves the business’ bottom-line. Once the design of the supply chain has been aligned with the customer segments, achieving improvements in responsiveness and efficiency will require actions on three fronts: re-evaluating the geographic footprint, implementing data-driven decision making, and bringing supply chain partners on-board.

Geographic footprint
In India’s rapidly-developing market, the demand patterns for cement are constantly shifting. With infrastructure projects and housing developments springing up in new areas, there is a need to regularly re-evaluate the geographic footprint of cement manufacturers’ supply chains to ensure they can fulfil emerging demand responsively and efficiently. This re-evaluation should include mapping the location of warehouses and godowns against demand hotspots. Furthermore, following the implementation of GST, there is further scope to rationalise the supply chain based on actual market needs rather than the earlier focus on State-wise operations.

To this, Rajnish Kapur puts it in a right way. He opines, ‘If a cement manufacturer is able to supply its cement product at the right place at the right time and in the right cost to the customer, then you have an edge over your competitor.’

Data-driven decision making
Achieving substantial gains in supply chain responsiveness and efficiency require cement players to move to data-driven decisionmaking. Only by measuring performance at each and every step it is possible to identify and act on the incremental opportunities for improvement that contribute to supply chain excellence. The first step towards data-driven decision making is to create better visibility of inventory, vehicles and product movement across the supply chain. Some cement weighing trucks at the loading bay installs GPS to track their movements, but a few have taken the integrated approach that is necessary to realise its substantial gains. Instead, there is a need to identify all the points where valuable data can be collected and install sensor technology. Once installed, these sensors need to be interconnected which is now possible at low-cost, thanks to the falling prices and rise of cloud computing. With the data flowing from all sections of the supply chain, one is required to intelligently interpret this information to make correct decisions.

This requires the applications of advanced analytics and machine learning algorithms as well as training people to utilise the generated insights they generate in their day-to-day decisions. As supply chain is a cross-functional aspect of the business, there is a need to integrate personnel from different departments in the decision-making process.

‘By taking this instrumented, interconnected and intelligent approach, cement companies can bring more consistency and a higher level of predictability to their supply chain operations,’ believes Kapur.

Bringing partners on board
Achieving supply chain excellence in the cement industry cannot be done alone. Companies will need to collaborate closely with supply chain partners to realise the potential benefits. This includes working closely with logistics partners to implement technology in their fleet to ensure continuous visibility of product and vehicle movements. Even more importantly, there is a need to establish a joint review and problem-solving mechanism that can quickly flag up and resolve issues and develop creative new solutions to drive further gains. This partnership model requires a mindset shift from the traditionally adversarial relationship, focused on constant price negotiation, to a collaborative approach that rewards performance improvement. Not only with logistics partners, cement companies will also need to work closely with technology providers and analytics experts to design and implement new systems and train people in their use. Companies should bear in mind that technology in this space is evolving rapidly so flexibility and adaptability are the key.

Go digital!
The third area that can contribute to long-term profit improvement in the Indian cement industry is the application of digital at scale. Today, companies are adopting new hardware and software solutions on a piecemeal basis to address specific problems, but a few players are viewing digital as a driver of overall business performance and all are struggling to adopt a truly digital culture.

To realise the potential of digital for their bottom-line, cement companies should make four major changes. Firstly, they need to make digital a priority for the C-suite. Secondly, they need to replace the technology lens with a business outlook. And thirdly, they must invest in digital talent.

Breaking the silo mindset
Finally, to realise the full benefits of digital, there is a need to take an integrated approach across the business. This requires cement companies to break-down the traditional silo mindset that separates functions like production, marketing, and sales. Successful digital transformation ensures all departments have a common understanding of digital and its importance to their function.

C-suite
ICR’s conversation with cement companies has revealed that digital is not yet a priority for C-level executives. In most cases, digital initiatives are usually left to lower levels of the organisation or the IT department, who are tasked with implementing new solutions like CRM. As a consequence, digital fails to become a strategic priority for the business.

To drive digital in a concerted way across the organisation leaders need to place it firmly on the C-suite agenda by discussing it alongside other strategic decisions. Furthermore, it is essential that a digital champion is appointed at a senior level who has the authority to lead the process across functions and with direct accountability to the board. They also have the responsibility of creating firm-level awareness of digital and its importance to the organisation’s future.

To kick-start this process, one large manufacturing organisation conducted a C-level workshop facilitated by external experts who brought an outside perspective on the opportunities and threats digital presented to their business. This helped foster a sense of urgency around digital and successfully brought it onto the board’s agenda.

Thinking beyond technologies
Even in cement companies that have adopted progressive digital initiatives, there is a tendency to see them through the technology lens which limits the field of vision to specific solutions, rather than looking at all encompassing impact of digital across business spectrum.

With digital technologies advancing at a fast pace and customers, even in more conservative B2B organisations – rapidly adopting new buying behaviour, a narrow view of digital will leave cement players exposed to the threat of digital disruption. For example, one leading company successfully deployed drone technology to achieve lower pricing from Indian Railways by ensuring wagons were not overloaded, and thus avoided heavy fines. In another case, the same company implemented an automated fuel management system at its mines through RFID tagging, which ensured fuel was only dispensed to authorised vehicles. However, the real long-term benefits from digital will come when individual initiatives such as these are taken in line with a strategic roadmap to digitalise the business. This approach will help prioritise the areas to digitalise first for maximum business impact and provide a common infrastructure to realise synergies across the business.

Invest in talent
In order to digitalise their business, cement companies will need to attract and retain a different a very different talent profile. Today’s digital talent typically prefer to go to analytics and Internet firms where they can learn and apply cutting-edge techniques. In order to attract this critical talent, cement companies will need to create a compelling value proposition for digital professionals to consider the industry and redefine their role and responsibilities beyond the traditional remit of information technology.

Shifting gears
The Indian cement industry is gradually shifting away from the traditionally dominant trade channel that retails cement bags to large numbers of small customers, and towards non-trade customers like large construction and ready-made concrete (RMC) companies. This trend will accelerate further as sectors like infrastructure and low-cost housing increase their share of cement demand. For example, infrastructure share of demand is projected to rise from around 20 per cent to 25 per cent by 2020. These segments will put greater pressure on price realisation through their desire to keep costs low and the high level of bargaining power that comes with a large scale of projects.

Here both Narwekar from JSW Cement and Kapur from JK Lakshmi believe that the demand for RMC as a channel will grow only if there is a economy of scale. RMC would be more useful for programmes like Bharatmala, and Sagarmala.

– RAHUL KAMAT

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Concrete

JK Cement Crosses 31 MTPA Capacity with Commissioning of Buxar Plant in Bihar

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JK Cement has commissioned a 3 MTPA Grey Cement plant in Buxar, Bihar, taking its total capacity to 31.26 MTPA and placing it among India’s top five grey cement producers. The ₹500 crore investment strengthens the company’s national footprint while supporting Bihar’s infrastructure growth and local economic development.

JK Cement Ltd., one of India’s leading cement manufacturers, has announced the commissioning of its new state-of-the-art Grey Cement plant in Buxar, Bihar, marking a significant milestone in the company’s growth trajectory. With the commissioning of this facility, JK Cement’s total production capacity has increased to 31.26 million tonnes per annum (MTPA), enabling the company to cross the 30 MTPA threshold.

This expansion positions JK Cement among the top five Grey Cement manufacturers in India, strengthening its national footprint and reinforcing its long-term growth strategy.

Commenting on the strategic achievement, Dr Raghavpat Singhania, Managing Director, JK Cement, said, “Crossing 31 MTPA is a significant turning point in JK Cement’s expansion and demonstrates the scale, resilience, and aspirations of our company. In addition to making a significant contribution to Bihar’s development vision, the commissioning of our Buxar plant represents a strategic step towards expanding our national footprint. We are committed to developing top-notch manufacturing capabilities that boost India’s infrastructure development and generate long-term benefits for local communities.”

The Buxar plant has a capacity of 3 MTPA and is spread across 100 acres. Strategically located on the Patna–Buxar highway, the facility enables faster and more efficient distribution across Bihar and adjoining regions. While JK Cement entered the Bihar market last year through supplies from its Prayagraj plant, the Buxar facility will now allow the company to serve the state locally, with deliveries possible within 24 hours across Bihar.

Sharing his views on the expansion, Madhavkrishna Singhania, Joint Managing Director & CEO, JK Cement, said, “JK Cement is now among India’s top five producers of grey cement after the Buxar plant commissioning. Our capacity to serve Bihar locally, more effectively, and on a larger scale is strengthened by this facility. Although we had already entered the Bihar market last year using Prayagraj supplies, local manufacturing now enables us to be nearer to our clients and significantly raise service standards throughout the state. Buxar places us at the center of this chance to promote sustainable growth for both the company and the region in Bihar, a high-growth market with strong infrastructure momentum.”

The new facility represents a strategic step in supporting Bihar’s development vision by ensuring faster access to superior quality cement for infrastructure, housing, and commercial projects. JK Cement has invested approximately ₹500 crore in the project. Construction began in March 2025, and commercial production commenced on January 29, 2026.

In addition to strengthening JK Cement’s regional presence, the Buxar plant is expected to generate significant direct and indirect employment opportunities and attract ancillary industries, thereby contributing to the local economy and the broader industrial ecosystem.

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Economy & Market

From Vision to Action: Fornnax Global Growth Strategy for 2026

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Jignesh Kundaria, Director & CEO, Fornnax Recycling Technology

As 2026 begins, Fornnax is accelerating its global growth through strategic expansion, large-scale export-led installations, and technology-driven innovation across multiple recycling streams. Backed by manufacturing scale-up and a strong people-first culture, the company aims to lead sustainable, high-capacity recycling solutions worldwide.

As 2026 begins, Fornnax stands at a pivotal stage in its growth journey. Over the past few years, the company has built a strong foundation rooted in engineering excellence, innovation, and a firm commitment to sustainable recycling. The focus ahead is clear: to grow faster, stronger, and on a truly global scale.

“Our 2026 strategy is driven by four key priorities,” explains Mr. Jignesh Kundaria, Director & CEO of Fornnax.

First, Global Expansion

We will strengthen our presence in major markets such as Europe, Australia, and the GCC, while continuing to grow across our existing regions. By aligning with local regulations and customer requirements, we aim to establish ourselves as a trusted global partner for advanced recycling solutions.

A major milestone in this journey will be export-led global installations. In 2026, we will commission Europe’s highest-capacity shredding line, reinforcing our leadership in high-capacity recycling solutions.

Second, Product Innovation and Technology Leadership

Innovation remains at the heart of our vision to become a global leader in recycling technology by 2030. Our focus is on developing solutions that are state-of-the-art, economical, efficient, reliable, and environmentally responsible.

Building on a decade-long legacy in tyre recycling, we have expanded our portfolio into new recycling applications, including municipal solid waste (MSW), e-waste, cable, and aluminium recycling. This diversification has already created strong momentum across the industry, marked by key milestones scheduled to become operational this year, such as:

  • Installation of India’s largest e-waste and cable recycling line.
  • Commissioning of a high-capacity MSW RDF recycling line.

“Sustainable growth must be scalable and profitable,” emphasizes Mr. Kundaria. In 2026, Fornnax will complete Phase One of our capacity expansion by establishing the world’s largest shredding equipment manufacturing facility. This 23-acre manufacturing unit, scheduled for completion in July 2026, will significantly enhance our production capability and global delivery capacity.

Alongside this, we will continue to improve efficiency across manufacturing, supply chain, and service operations, while strengthening our service network across India, Australia, and Europe to ensure faster and more reliable customer support.

Finally: People and Culture

“People remain the foundation of Fornnax’s success. We will continue to invest in talent, leadership development, and a culture built on ownership, collaboration, and continuous improvement,” states Mr. Kundaria.

With a strong commitment to sustainability in everything we do, our ambition is not only to grow our business, but also to actively support the circular economy and contribute to a cleaner, more sustainable future.

Guided by a shared vision and disciplined execution, 2026 is set to be a defining year for us, driven by innovation across diverse recycling applications, large-scale global installations, and manufacturing excellence.

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Concrete

Why Cement Needs CCUS

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Cement’s deep decarbonisation cannot be achieved through efficiency and fuel switching alone, making CCUS essential to address unavoidable process emissions from calcination. ICR explores if with the right mix of policy support, shared infrastructure, and phased scale-up from pilots to clusters, CCUS can enable India’s cement industry to align growth with its net-zero ambitions.

Cement underpins modern development—from housing and transport to renewable energy infrastructure—but it is also one of the world’s most carbon-intensive materials, with global production of around 4 billion tonnes per year accounting for 7 to 8 per cent of global CO2 emissions, according to the GCCA. What makes cement uniquely hard to abate is that 60 to 65 per cent of its emissions arise from limestone calcination, a chemical process that releases CO2 irrespective of the energy source used; the IPCC Sixth Assessment Report (AR6) therefore classifies cement as a hard-to-abate sector, noting that even fully renewable-powered kilns would continue to emit significant process emissions. While the industry has achieved substantial reductions over the past two decades through energy efficiency, alternative fuels and clinker substitution using fly ash, slag, and calcined clays, studies including the IEA Net Zero Roadmap and GCCA decarbonisation pathways show these levers can deliver only 50 to 60 per cent emissions reduction before reaching technical and material limits, leaving Carbon Capture, Utilisation and Storage (CCUS) as the only scalable and durable option to address remaining calcination emissions—an intervention the IPCC estimates will deliver nearly two-thirds of cumulative cement-sector emission reductions globally by mid-century, making CCUS a central pillar of any credible net-zero cement pathway.

Process emissions vs energy emissions
Cement’s carbon footprint is distinct from many other industries because it stems from two sources: energy emissions and process emissions. Energy emissions arise from burning fuels to heat kilns to around 1,450°C and account for roughly 35 to 40 per cent of total cement CO2 emissions, according to the International Energy Agency (IEA). These can be progressively reduced through efficiency improvements, alternative fuels such as biomass and RDF, and electrification supported by renewable power. Over the past two decades, such measures have delivered measurable gains, with global average thermal energy intensity in cement production falling by nearly 20 per cent since 2000, as reported by the IEA and GCCA.
The larger and more intractable challenge lies in process emissions, which make up approximately 60 per cent to 65 per cent of cement’s total CO2 output. These emissions are released during calcination, when limestone (CaCO3) is converted into lime (CaO), inherently emitting CO2 regardless of fuel choice or energy efficiency—a reality underscored by the IPCC Sixth Assessment Report (AR6). Even aggressive clinker substitution using fly ash, slag, or calcined clays is constrained by material availability and performance requirements, typically delivering 20 to 40 per cent emissions reduction at best, as outlined in the GCCA–TERI India Cement Roadmap and IEA Net Zero Scenario. This structural split explains why cement is classified as a hard-to-abate sector and why incremental improvements alone are insufficient; as energy emissions decline, process emissions will dominate, making Carbon Capture, Utilisation and Storage (CCUS) a critical intervention to intercept residual CO2 and keep the sector’s net-zero ambitions within reach.

Where CCUS stands today
Globally, CCUS in cement is moving from concept to early industrial reality, led by Europe and North America, with the IEA noting that cement accounts for nearly 40 per cent of planned CCUS projects in heavy industry, reflecting limited alternatives for deep decarbonisation; a flagship example is Heidelberg Materials’ Brevik CCS project in Norway, commissioned in 2025, designed to capture about 400,000 tonnes of CO2 annually—nearly half the plant’s emissions—with permanent offshore storage via the Northern Lights infrastructure (Reuters, Heidelberg Materials), alongside progress at projects in the UK, Belgium, and the US such as Padeswood, Lixhe (LEILAC), and Ste. Genevieve, all enabled by strong policy support, public funding, and shared transport-and-storage infrastructure.
These experiences show that CCUS scales fastest when policy support, infrastructure availability, and risk-sharing mechanisms align, with Europe bridging the viability gap through EU ETS allowances, Innovation Fund grants, and CO2 hubs despite capture costs remaining high at US$ 80-150 per tonne of CO2 (IEA, GCCA); India, by contrast, is at an early readiness stage but gaining momentum through five cement-sector CCU testbeds launched by the Department of Science and Technology (DST) under academia–industry public–private partnerships involving IITs and producers such as JSW Cement, Dalmia Cement, and JK Cement, targeting 1-2 tonnes of CO2 per day to validate performance under Indian conditions (ETInfra, DST), with the GCCA–TERI India Roadmap identifying the current phase as a foundation-building decade essential for achieving net-zero by 2070.
Amit Banka, Founder and CEO, WeNaturalists, says “Carbon literacy means more than understanding that CO2 harms the climate. It means cement professionals grasping why their specific plant’s emissions profile matters, how different CCUS technologies trade off between energy consumption and capture rates, where utilisation opportunities align with their operational reality, and what governance frameworks ensure verified, permanent carbon sequestration. Cement manufacturing contributes approximately 8 per cent of global carbon emissions. Addressing this requires professionals who understand CCUS deeply enough to make capital decisions, troubleshoot implementation challenges, and convince boards to invest substantial capital.”

Technology pathways for cement
Cement CCUS encompasses a range of technologies, from conventional post-combustion solvent-based systems to process-integrated solutions that directly target calcination, each with different energy requirements, retrofit complexity, and cost profiles. The most mature option remains amine-based post-combustion capture, already deployed at industrial scale and favoured for early cement projects because it can be retrofitted to existing flue-gas streams; however, capture costs typically range from US$ 60-120 per tonne of CO2, depending on CO2 concentration, plant layout, and energy integration.
Lovish Ahuja, Chief Sustainability Officer, Dalmia Cement (Bharat), says, “CCUS in Indian cement can be viewed through two complementary lenses. If technological innovation, enabling policies, and societal acceptance fail to translate ambition into action, CCUS risks becoming a significant and unavoidable compliance cost for hard-to-abate sectors such as cement, steel, and aluminium. However, if global commitments under the Paris Agreement and national targets—most notably India’s Net Zero 2070 pledge—are implemented at scale through sustained policy and industry action, CCUS shifts from a future liability to a strategic opportunity. In that scenario, it becomes a platform for technological leadership, long-term competitiveness, and systemic decarbonisation rather than merely a regulatory burden.”
“Accelerating CCUS adoption cannot hinge on a single policy lever; it demands a coordinated ecosystem approach. This includes mission-mode governance, alignment across ministries, and a mix of enabling instruments such as viability gap funding, concessional and ESG-linked finance, tax incentives, and support for R&D, infrastructure, and access to geological storage. Importantly, while cement is largely a regional commodity with limited exportability due to its low value-to-weight ratio, CCUS innovation itself can become a globally competitive export. By developing, piloting, and scaling cost-effective CCUS solutions domestically, India can not only decarbonise its own cement industry but also position itself as a supplier of affordable CCUS technologies and services to cement markets worldwide,” he adds.
Process-centric approaches seek to reduce the energy penalty associated with solvent regeneration by altering where and how CO2 is separated. Technologies such as LEILAC/Calix, which uses indirect calcination to produce a high-purity CO2 stream, are scaling toward a ~100,000 tCO2 per year demonstrator (LEILAC-2) following successful pilots, while calcium looping leverages limestone chemistry to achieve theoretical capture efficiencies above 90 per cent, albeit still at pilot and demonstration stages requiring careful integration. Other emerging routes—including oxy-fuel combustion, membrane separation, solid sorbents, and cryogenic or hybrid systems—offer varying trade-offs between purity, energy use, and retrofit complexity; taken together, recent studies suggest that no single technology fits all plants, making a multi-technology, site-specific approach the most realistic pathway for scaling CCUS across the cement sector.
Yash Agarwal, Co-Founder, Carbonetics Carbon Capture, says, “We are fully focused on CCUS, and for us, a running plant is a profitable plant. What we have done is created digital twins that allow operators to simulate and resolve specific problems in record time. In a conventional setup, when an issue arises, plants often have to shut down operations and bring in expert consultants. What we offer instead is on-the-fly consulting. As soon as a problem is detected, the system automatically provides a set of potential solutions that can be tested on a running plant. This approach ensures that plant shutdowns are avoided and production is not impacted.”

The economics of CCUS
Carbon Capture, Utilisation and Storage (CCUS) remains one of the toughest economic hurdles in cement decarbonisation, with the IEA estimating capture costs of US$ 80-150 per tonne of CO2, and full-system costs raising cement production by US$ 30-60 per tonne, potentially increasing prices by 20 to 40 per cent without policy support—an untenable burden for a low-margin, price-sensitive industry like India’s.
Global experience shows CCUS advances beyond pilots only when the viability gap is bridged through strong policy mechanisms such as EU ETS allowances, Innovation Fund grants, and carbon Contracts for Difference (CfDs), yet even in Europe few projects have reached final investment decision (GCCA); India’s lack of a dedicated CCUS financing framework leaves projects reliant on R&D grants and balance sheets, reinforcing the IEA Net Zero Roadmap conclusion that carbon markets, green public procurement, and viability gap funding are essential to spread costs across producers, policymakers, and end users and prevent CCUS from remaining confined to demonstrations well into the 2030s.

Utilisation or storage
Carbon utilisation pathways are often the first entry point for CCUS in cement because they offer near-term revenue potential and lower infrastructure complexity. The International Energy Agency (IEA) estimates that current utilisation routes—such as concrete curing, mineralisation into aggregates, precipitated calcium carbonate (PCC), and limited chemical conversion—can realistically absorb only 5 per cent to 10 per cent of captured CO2 at a typical cement plant. In India, utilisation is particularly attractive for early pilots as it avoids the immediate need for pipelines, injection wells, and long-term liability frameworks. Accordingly, Department of Science and Technology (DST)–supported cement CCU testbeds are already demonstrating mineralisation and CO2-cured concrete applications at 1–2 tonnes of CO2 per day, validating performance, durability, and operability under Indian conditions.
However, utilisation faces hard limits of scale and permanence. India’s cement sector emits over 200 million tonnes of CO2 annually (GCCA), far exceeding the absorptive capacity of domestic utilisation markets, while many pathways—especially fuels and chemicals—are energy-intensive and dependent on costly renewable power and green hydrogen. The IPCC Sixth Assessment Report (AR6) cautions that most CCU routes do not guarantee permanent storage unless CO2 is mineralised or locked into long-lived materials, making geological storage indispensable for deep decarbonisation. India has credible storage potential in deep saline aquifers, depleted oil and gas fields, and basalt formations such as the Deccan Traps (NITI Aayog, IEA), and hub-based models—where multiple plants share transport and storage infrastructure—can reduce costs and improve bankability, as seen in Norway’s Northern Lights project. The pragmatic pathway for India is therefore a dual-track approach: utilise CO2 where it is economical and store it where permanence and scale are unavoidable, enabling early learning while building the backbone for net-zero cement.

Policy, infrastructure and clusters
Scaling CCUS in the cement sector hinges on policy certainty, shared infrastructure, and coordinated cluster development, rather than isolated plant-level action. The IEA notes that over 70 per cent of advanced industrial CCUS projects globally rely on strong government intervention—through carbon pricing, capital grants, tax credits, and long-term offtake guarantees—with Europe’s EU ETS, Innovation Fund, and carbon Contracts for Difference (CfDs) proving decisive in advancing projects like Brevik CCS. In contrast, India lacks a dedicated CCUS policy framework, rendering capture costs of USD 80–150 per tonne of CO2 economically prohibitive without state support (IEA, GCCA), a gap the GCCA–TERI India Cement Roadmap highlights can be bridged through carbon markets, viability gap funding, and green public procurement.
Milan R Trivedi, Vice President, Shree Digvijay Cement, says, “CCUS represents both an unavoidable near-term compliance cost and a long-term strategic opportunity for Indian cement producers. While current capture costs of US$ 100-150 per tonne of CO2 strain margins and necessitate upfront retrofit investments driven by emerging mandates and NDCs, effective policy support—particularly a robust, long-term carbon pricing mechanism with tradable credits under frameworks like India’s Carbon Credit Trading Scheme (CCTS)—can de-risk capital deployment and convert CCUS into a competitive advantage. With such enablers in place, CCUS can unlock 10 per cent to 20 per cent green price premiums, strengthen ESG positioning, and allow Indian cement to compete in global low-carbon markets under regimes such as the EU CBAM, North America’s buy-clean policies, and Middle Eastern green procurement, transforming compliance into export-led leadership.”
Equally critical is cluster-based CO2 transport and storage infrastructure, which can reduce unit costs by 30 to 50 per cent compared to standalone projects (IEA, Clean Energy Ministerial); recognising this, the DST has launched five CCU testbeds under academia–industry public–private partnerships, while NITI Aayog works toward a national CCUS mission focused on hubs and regional planning. Global precedents—from Norway’s Northern Lights to the UK’s HyNet and East Coast clusters—demonstrate that CCUS scales fastest when governments plan infrastructure at a regional level, making cluster-led development, backed by early public investment, the decisive enabler for India to move CCUS from isolated pilots to a scalable industrial solution.
Paul Baruya, Director of Strategy and Sustainability, FutureCoal, says, “Cement is a foundational material with a fundamental climate challenge: process emissions that cannot be eliminated through clean energy alone. The IPCC is clear that in the absence of a near-term replacement of Portland cement chemistry, CCS is essential to address the majority of clinker-related emissions. With global cement production at around 4 gigatonnes (Gt) and still growing, cement decarbonisation is not a niche undertaking, it is a large-scale industrial transition.”

From pilots to practice
Moving CCUS in cement from pilots to practice requires a sequenced roadmap aligning technology maturity, infrastructure development, and policy support: the IEA estimates that achieving net zero will require CCUS to scale from less than 1 Mt of CO2 captured today to over 1.2 Gt annually by 2050, while the GCCA Net Zero Roadmap projects CCUS contributing 30 per cent to 40 per cent of total cement-sector emissions reductions by mid-century, alongside efficiency, alternative fuels, and clinker substitution.
MM Rathi, Joint President – Power Plants, Shree Cement, says, “The Indian cement sector is currently at a pilot to early demonstration stage of CCUS readiness. A few companies have initiated small-scale pilots focused on capturing CO2 from kiln flue gases and exploring utilisation routes such as mineralisation and concrete curing. CCUS has not yet reached commercial integration due to high capture costs (US$ 80-150 per tonne of CO2), lack of transport and storage infrastructure, limited access to storage sites, and absence of long-term policy incentives. While Europe and North America have begun early commercial deployment, large-scale CCUS adoption in India is more realistically expected post-2035, subject to enabling infrastructure and policy frameworks.”
Early pilots—such as India’s DST-backed CCU testbeds and Europe’s first commercial-scale plants—serve as learning platforms to validate integration, costs, and operational reliability, but large-scale deployment will depend on cluster-based scale-up, as emphasised by the IPCC AR6, which highlights the need for early CO2 transport and storage planning to avoid long-term emissions lock-in. For India, the GCCA–TERI India Roadmap identifies CCUS as indispensable for achieving net-zero by 2070, following a pragmatic pathway: pilot today to build confidence, cluster in the 2030s to reduce costs, and institutionalise CCUS by mid-century so that low-carbon cement becomes the default, not a niche, in the country’s infrastructure growth.

Conclusion
Cement will remain indispensable to India’s development, but its long-term viability hinges on addressing its hardest emissions challenge—process CO2 from calcination—which efficiency gains, alternative fuels, and clinker substitution alone cannot eliminate; global evidence from the IPCC, IEA, and GCCA confirms that Carbon Capture, Utilisation and Storage (CCUS) is the only scalable pathway capable of delivering the depth of reduction required for net zero. With early commercial projects emerging in Europe and structured pilots underway in India, CCUS has moved beyond theory into a decisive decade where learning, localisation, and integration will shape outcomes; however, success will depend less on technology availability and more on collective execution, including coordinated policy frameworks, shared transport and storage infrastructure, robust carbon markets, and carbon-literate capabilities.
For India, a deliberate transition from pilots to practice—anchored in cluster-based deployment, supported by public–private partnerships, and aligned with national development and climate goals—can transform CCUS from a high-cost intervention into a mainstream industrial solution, enabling the cement sector to keep building the nation while sharply reducing its climate footprint.

– Kanika Mathur

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