Economy & Market

A circular economy is imperative for a sustainable future

Published

7 years ago

January 4, 2020

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Ujjwal Batria, Chief Operating Officer, Dalmia Cement (Bharat)

Give us a brief on the activities of Dalmia Group in the Indian subcontinent regarding AFR.

Cement is an essential commodity in construction and infrastructure development. Although there is some environmental impact during its production, we have always adhered to strict environmental norms and have implemented various measures in line with the evolving technologies to reduce the carbon footprint. In sync with the Swachh Bharat Mission, we make major use of AFR (alternative fuels and raw materials).

Apart from AFR, we use fly ash (thermal power plant waste) and BF Slag (steel industry waste) in our blended cement, which comprises nearly 80 per cent of our product portfolio. Our AFR consumption has more than doubled from 14.5 per cent in FY20 per cent 13-14 to 30 per cent in FY2017-18. Portland Slag Cement and Portland Composite Cement collectively contribute to nearly 50 per cent of our product portfolio. Similarly, our clinker factor has come down to 63 per cent at current levels from about 81 per cent in 2013.

What has been the performance of Dalmia in the last two years in terms of TSR? What do you think about the next three years?
At the group level, we have touched 4 per cent TSR (Thermal Substitution Rate) compared to nearly 0.5 per cent five years ago. We have also developed pockets of excellence in some plants where nearly 18 per cent of TSR has been achieved. Presently, we are utilising various alternative fuels such as biomass, tyre nylon threads, carbon black, spent wash, paint sludge, spent carbon, sawdust as well as waste from cotton, plastic and footwear. While boosting the bottom line, these simultaneously curb GHG (greenhouse gas) emissions from cement operations. Moving forward, we are augmenting our fuel feeding systems with additional investments for making more use of both solid and liquid alternative fuels.

What do you think needs to be done urgently to improve the overall TSR numbers in the country?
Thermal Substitution Rate refers to the percentage of sustainable alternative fuels used in replacing fossil fuels. Commodity materials such as refuse-derived fuel (RDF) improve TSR percentage but lower investment payback. India is targeting 25 per cent TSR by 2025. Yet, compared to global standards (TSR of about 60 per cent to 100 per cent in many countries), we remain far behind. The main issues – waste characteristics and lack of support from the required agency for generating good segregated waste quality.

A circular economy is imperative for a sustainable future. Given its second-largest producer tag, India’s cement industry contributes to the circular process by handling different types of waste – whether it is steel industry slag, municipal solid waste or fly ash. The cement industry can be a mega player in waste management. In 2017-18, its production was 298 MTPA, which is expected to touch more than 550-600 MTPA by 2025. To meet this demand, it requires more than 51 million tonnes of coal that is already in short supply.

Besides, given the Centre’s Swachh Bharat Mission, we should use alternative fuels and raw materials (AFR). Along with the need for AFR, it is essential to use RDF along with other industrial waste, which is anyway a part of kiln feeds. Consequently, RDF offers an immense opportunity to boost the TSR of cement kilns, which could also save millions in foreign exchange due to lower coal imports. From 1 per cent a few years ago, the average TSR is now 4 per cent. The target is 25 per cent by 2025 and 30 per cent by 2030.

Are you handling industrial or any hazardous waste at any of the plants under your control? Kindly provide details.
The country’s cement industry is no longer as polluting or hazardous as some others since a complete transformation has occurred in this sector. A single visit to any of our sites will dispel any preconceived notions about cement plants being most polluting and hazardous.

The environmental emission norms mandated by the Government of India for the cement industry are at par with many developed countries. Cement is a basic building block and an essential glue that binds concrete – the world’s second-most consumed commodity after water. Nonetheless, when any industrial activity takes place on such a scale, some collateral impact on the environment cannot be ruled out. In recent years, however, the industry has made its operations significantly safer.

Overall, the industry is using waste more energy efficiently. The industry consumes almost 50 per cent of the country’s fly ash. Likewise, the steel industry’s entire BF Slag is used by our industry. Many cement plants in India are water positive. In other words, we are providing more water to nature than we take from it. The cement industry is growing by leaps and bounds in promoting sustainable business practices in India. Recently, international climate research rating agency CDP published their report on the global cement sector. CDP ranked six cement companies from India in the Top 10. Dalmia Cement has been ranked No.1 in the CDP report on business readiness for low carbon transition.

More than 65 per cent of cement production capacity in India comes under the Global Cement and Concrete Association (GCCA). The main objective of GCCA is introducing sustainable business practices in the industry. Moreover, safety is the topmost priority. Typically, there is a major shift in providing a safe environment for our employees. Progressive cement companies are implementing a people-first policy, making the safety of workers a priority. Engagement in the supply chain is another area where much progress has been made. Various programmes such as defensive driving and driver passport system have been initiated for greater safety of workers, including during transport-related operations.

Provide more details on the platform created for handling hazardous waste.
Cement kilns deploy co-processing in waste disposal. Unlike landfilling and incineration, this practice is a more sustainable and environment-friendly waste disposal method thanks to the lower emissions and lack of residue after the treatment. Recently, our cement sector has made significant investments in ensuring a greener future via the enhanced use of AFR and other means. But the industry’s contribution is contingent on the progress of the nation’s overall waste management segment.

The progress on the AFR front has been robust, which includes the penetration of blended cements. While OPC (Ordinary Portland Cement) was the market leader in India earlier, today it has only around 20-25 per cent of market share. It is heartening that nearly 75 per cent of the nation’s cement production presently is in the form of various types of blended cement against barely 30 per cent in 1999-2000. The Indian cement industry has more potential to use alternative fuels than is being done currently. Yet, to achieve this, a complete transformation is required in India’s waste management sector from the generation point to disposal methods. Once implemented, the circular economy could become the backbone of India’s waste management practices. There is overwhelming customer acceptance of environment-friendly products. Many States have also come forward and developed policies for greater utilisation of blended cements. On our part, we are continuing policy advocacy and training of masons in using more blended cements and making them sensitive to environmental issues such as climate change. The use of industrial wastes in cement offers the technical advantages of improved durability and lower carbon footprint.

Can hazardous waste and other waste materials go together in the kiln or have to be moved separately?
Cement kilns use co-processing for waste disposal. Unlike landfilling and incineration, this is a more sustainable and environment-friendly waste disposal method due to lower emissions and lack of residue after the treatment. Thereby, waste materials in industrial processes are used as AFRs in recovering material and energy from them. These are fully utilised as a replacement for fossil fuels in cement kilns. Given the high temperatures in cement kilns, various kinds of wastes are disposed of effectively without harmful emissions by co-processing. In many countries, different types of plastic wastes are regularly disposed of in an environmentally-sound manner through co-processing. In essence, hazardous and non-hazardous wastes, which includes plastic wastes, are used as AFRs.

Nonetheless, care is required in selecting wastes and equipment, with trained personnel handling the co-processing of any waste. Tell us something about the pre-processing required for hazardous waste.
Conversion of Segregated Combustible Fraction (SCF) into RDF is done by a waste management operator at the existing waste management site. This comprises setting up a pre-processing facility with storage, shredding and blending operations. The cement company needs to establish a co-processing facility in the plant to ensure its viability. For the plant, the expenditure streams are the pre-processing cost and RDF transportation cost.

In utilising hazardous waste, enormous challenges arise since it’s necessary to have proper inputs from waste generators about the waste characteristics while having a proper material safety data sheet to understand the important precautions during transportation and usage of different wastes.

What has been your experience in moving waste across state borders after the introduction of GST? To what extent the movement has become less painful?
Overall, the introduction of GST has made transport of waste smoother besides reducing the compliance costs as well as complexity. Earlier, due to multiple state entry taxes and CST, it was more cost-effective in maintaining multiple warehouses in different states. But the higher number of warehouses meant most were operating below capacity, creating operational inefficiencies. GST has made this practice redundant as companies benefit by consolidating and maintaining warehouses wherever it is more beneficial. This has thus boosted operational efficiencies.

Additionally, there is a reduction in transit time as vehicles now spend less time idling at checkpoints. In turn, this has lowered logistics costs. Taking these factors into account, movement of waste is less cumbersome for cement companies today.

It is said processing of any kind of waste is not a problem but the issue is of logistics and getting waste at the plant at the right price. How do you think the problem can be solved?
For an industry holding 10 per cent global market share and as the third-largest volume product loader of the Indian Railways, multi-modal transport options are crucial. In comparison with other industries, as a per centage of sales, cement holds the highest logistics cost. This cost soars when the material is unloaded and transported further via road and if it is brought from or taken to the hinterland. The industry requires solutions for controlling transport costs since it comprises about 20% of retail cement prices. Therefore, automation of key processes vis-a-vis monitoring and controls could provide savings in freight costs. Some initiatives can include planned transport deploying intelligent algorithms as well as smart monitoring in implementing operations via GPS technologies.

Wherever possible, Railways should be used for transport as it is the most economical form. Such a focused approach can yield cost benefits. Meanwhile, initiatives are being undertaken by the Railways to ease movement of goods – whether raw materials or finished products. Development of mega stations and dedicated freight corridor will also be useful in boosting cement logistics. More cement manufacturers are now inking long-term freight contracts with the Railways, which will lead to a significant reduction in operating costs.

Do you think that Indian plants have been handling waste in a safe manner that will not cause harm to society in general?
While supply, segregation, quality and consistency are important in handling waste safely, segregation is the most important. Segregation and management at source are generally the best means of managing waste. Thereafter, waste quality and consistency are essential for effective disposal. While existing norms are adequate, the focus needs to be on proper implementation. Standardisation of waste disposal norms could facilitate greater safety while ensuring the cement sector leaves a lower carbon trail.

Concrete

Nuvoco Vistas, CleanMax Partner for Wind-Solar Hybrid Project in Rajasthan

Published

1 day ago

September 29, 2026

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The project – comprising 20 MW of wind and 26.4 MWdc of solar capacity – will support Nuvoco’s cement operations with cleaner power while strengthening its renewable energy and decarbonisation strategy.

Mumbai, September 29, 2026

Nuvoco Vistas Corp Ltd, part of Nirma Group and one of India’s leading cement companies, has partnered with Clean Max Enviro Energy Solutions Limited (CleanMax), a renewable energy solutions provider for the commercial and industrial (C&I) sector, to develop a 46.4 MW wind-solar hybrid renewable energy project in Rajasthan.

The project will support Nuvoco’s cement operations with cleaner power while strengthening its renewable energy and decarbonisation strategy. It is expected to increase the share of renewable energy in Nuvoco’s power mix, reducing fossil fuel consumption and associated emissions.

Developed by CleanMax, an Independent Power Producer (IPP), at Bhikamkhore, Rajasthan, the project will comprise 20 MW of wind capacity and 26.4 MWdc of solar capacity, along with a 2-MWh Battery Energy Storage System (BESS). Power generated from the facility will be supplied to Nuvoco through the State Transmission Utility (STU) Open Access network.

The hybrid project is expected to generate approximately 100 million units (MU) of renewable electricity annually and help avoid around 1,25,485 tonnes of CO₂ emissions every year across Scope 1 and Scope 2 emissions.

The initiative supports Nuvoco’s ongoing efforts to reduce the carbon intensity of its manufacturing operations through renewable energy adoption, Waste Heat Recovery Systems (WHRS), energy-efficiency measures and increased use of alternative fuels. It also aligns with the company’s DIRE (Digitalisation, Innovation and Renewables) agenda, which focuses on climate action, renewable energy transition, water stewardship, circularity and biodiversity conservation across its manufacturing ecosystem.

Commenting on the initiative, Jayakumar Krishnaswamy, Managing Director, Nuvoco Vistas Corp Ltd, said, “This marks an important step in advancing Nuvoco’s journey towards more sustainable and resilient operations. Our collaboration with CleanMax will increase the share of renewable energy across our Rajasthan operations, strengthening our energy mix while improving long-term cost efficiency and reducing our dependence on conventional power sources. Initiatives such as these reinforce our commitment to operational excellence and responsible growth, while supporting our vision of Building a Safer, Smarter and Sustainable World.”

Kuldeep Jain, Founder and Managing Director, CleanMax, said, “Cement plants run continuously, so the power behind them has to be dependable for decades, not years. We’re seeing manufacturing industries view clean energy as an integral part of their core operations and long-term strategy. Our partnership with Nuvoco reflects that shift, and we’re pleased to support its decarbonisation journey. This wind-solar hybrid project is designed to deliver long-term cost certainty while supporting the Company’s transition to cleaner power.”

Nuvoco has been advancing its sustainability initiatives through renewable energy, operational efficiency and technology-driven solutions. The company operates across Cement, Ready-Mix Concrete (RMX) and Modern Building Materials (MBM) segments, with a presence across East, North and West India.

The company began operations in 2014 with a greenfield cement plant in Nimbol, Rajasthan, and later acquired Lafarge India Limited, which entered India in 1999, along with Emami Cement Ltd in 2020 and Vadraj Cement Limited in April 2025. With planned expansion initiatives, including a new grinding mill at the Arasmeta Cement Plant and multiple debottlenecking projects, Nuvoco aims to achieve a cement capacity of 35 MMTPA.

The company reported total income of Rs 113.62 billion in FY 2025-26, reflecting its continued growth trajectory. Its cement portfolio includes Concreto, Duraguard, Double Bull, PSC, Nirmax and Infracem brands, while its RMX business offers products under Concreto, Artiste, InstaMix, X-Con and Ecodure brands. Nuvoco also provides construction solutions under its Zero M range of modern building materials.

Concrete

UltraTech Cement achieves 100% green energy milestone at Chhattisgarh plant

Published

1 day ago

September 29, 2026

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UltraTech Cement’s Kukurdih Works becomes its first integrated unit to meet 100 per cent electricity needs through green energy every month.

Raipur (Chhattisgarh)

UltraTech Cement Limited, the world’s largest cement company outside China, has achieved a significant decarbonisation milestone, with its Kukurdih Cement Works integrated unit in Chhattisgarh meeting 100 per cent of its electricity requirement through green energy every month since April 2026.

Commissioned in 2024, Kukurdih Cement Works has an installed grey cement capacity of 3.3 million tonnes per annum. The unit achieved this milestone through a combination of renewable power sourcing and Waste Heat Recovery Systems (WHRS), which now collectively meet its entire electricity demand while ensuring operational reliability.

Since April 2026, nearly one-third of UltraTech’s 76 manufacturing units in India have maintained green energy utilisation above 50 per cent of their electricity requirements. Five units, including Kukurdih, have exceeded 95 per cent green energy utilisation. The company is also progressively deploying Battery Energy Storage Systems (BESS) across its network to enable deeper renewable energy integration.

As part of its decarbonisation strategy, UltraTech has not invested in additional captive thermal power capacity for greenfield projects or brownfield expansions at its integrated units for over a decade.

As of Q1FY27, the company’s captive green energy capacity stood at 1,897 MW, comprising 1,463 MW of renewable energy capacity from solar, wind and hybrid sources, along with 434 MW of WHRS capacity. Under its RE100 commitment, UltraTech aims to increase the share of green power in its total energy mix to 85 per cent by 2030 and achieve 100 per cent by 2050.

UltraTech Cement Ltd, the cement flagship company of the Aditya Birla Group, is a $10-billion building solutions company and the largest cement producer globally by sales volume outside China. The company has a total grey cement capacity of 210.1 MTPA and white cement/putty capacity of 3.5 MTPA. It is a signatory to the GCCA Climate Ambition 2050 and has committed to the Net Zero Concrete roadmap announced by GCCA.

Economy & Market

From First Mile to Last Mile

Published

3 days ago

September 28, 2026

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Praveen Vashistha, Founder, Gxpress Solutions, speaks about building a holistic logistics network that encompasses latest technology and current challenges faced by logistics service providers.

Logistics may seem to only entail transporting a package from one location to another. However, there is more to this term than just that. Logistics refers to the entire process of controlling all movement, transfers and decisions in the correct way at the right time and cost and with the desired level of visibility.

People nowadays want to receive more than just the delivery. They want quick, efficient, reliable and transparent logistics service. On the other hand, companies are facing higher operating costs, broken supply chains, congested cities, changing habits of consumers and growing complexity of logistics services. In this situation, a full logistics package is gaining importance not only as a competitive advantage but also as a necessity for a successful business.

The main challenge lies in uniting the first mile, the middle mile and the last mile into one seamless process.

The journey begins before the package moves

First-mile logistics may be the least recognised part of the logistics chain, but they have a crucial influence on all that follows.

This stage starts from the moment the shipment leaves the manufacturer, supplier, farm, warehouse or distribution centre. Depending on the industry, first-mile logistics may involve grouping shipments from multiple suppliers, compiling paperwork and checking the inventory before sending the shipments to a central hub.

Flaws in first-mile logistics produce effects later down the supply chain. Delays in cargo pickup can affect warehouse operations; improper packaging can damage goods in transit; and incorrect inventory information may cause stockholding or unnecessary replenishments.

This is why building a reliable network involves simplifying the operations done at the beginning of the supply chain.

Companies require accurate demand forecasts, supplier visibility, standard procedures, and software to capture information from the moment a shipment enters the supply chain. Route planning and fleet management are also important at this stage, especially as it may involve contacting multiple suppliers.

The main goal is simply to make the first mile predictable.

The middle mile: Where scale meets complexity

When products leave the original site, they travel through the ‘middle mile,’ which connects fulfilment centres, warehouses, sorting centres, and regional distribution points. In this phase, logistics networks begin operating on a large scale. A shipment can pass through several facilities before reaching the final destination. Each additional transfer entails the risk of delay or damage and information losses. Accordingly, the ideal solution is not to minimise the number of transfers but rather to optimise them. The use of hub-and-spoke networks, regional distribution centres, and strategically placed distribution centres can help companies shorten transportation routes and optimise distribution costs. Besides, data can be used to determine the optimal placement of inventories.

For instance, a retailer may find that it takes more time and is more expensive to deliver goods to customers if everything is stored in a central warehouse. Meanwhile, regional distribution helps meet the customer’s needs quicker and more efficiently.

The last mile is where the customer judges you

When it comes to the logistics experience, the customer experience comes down to the delivery. While the last mile might comprise a small part of the entire journey in actual distance, it could also entail expensive and difficult processes. Delivery runs through densely populated cities, through traffic jams, through unsuccessful delivery attempts, and through changing consumer preferences and narrowed time frames.

Customers want to have control over their delivery. Delivery means that customers expect to know the exact moment when their order is delivered. They need to receive current updates about their orders and the ability to decide whether they want scheduled deliveries, or whether they want their order to be dropped off at a designated location far from their house.

As a result, last-mile logistics must incorporate both efficiency and experience. The technology may be used to ensure timely and accurate delivery, through such products as route optimisation and real-time delivery tracking.

However, technology is not enough to guarantee success in terms of last-mile delivery. Knowledge of the local area is still an important aspect that contributes to successful delivery.

One network, not three separate operations

First, the common mistake that organisations can make is treating the first mile, the middle, and the last mile separately.

An effective first mile of logistics does not matter much if the shipment waits in a hub for many hours. A perfectly working warehouse does not make a happy customer if the last-mile delivery fails. Therefore, even the fastest last-mile delivery can become an expensive operation if the supply is not well geographically positioned.

The three moments should work together as one whole system.

This implies having a common view on inventory, transport capacities, shipment statuses and demand. The Transportation Management System, Warehouse Management System and order management system should give information to each other instead of acting like separate islands.

That is where real-time information comes into play!

If something happens, such as a vehicle gets delayed, the company has to know that from the start. If not, someone from Customer Service should be informed about the situation.

Visibility is the new infrastructure

Previously, companies had to rely on physical assets, such as warehouses, trucks, and sorting facilities, to create their logistics networks. Today, they have an additional layer of technology providing visibility.

Command-and-control systems now include GPS tracking, Internet of Things devices, bar-coding, RFID, cloud computing, artificial intelligence, and analytics, which allow companies to know what the goods are doing, how well they are doing, and what is going to happen next.

Predictive analytics reveal possible delays. AI-powered forecasting increases availability. Digital dashboards enable the manager to monitor all operations in one place. The efficiency of such technologies is not measured in the amount of information they gather, but rather in their capability of converting data into knowledge.

Logistics managers should be able to answer the following questions: Where is it? When is it supposed to arrive? What causes the delay? What impact does it have? Can it be delivered some other way? How much will it cost?

The sooner the answers are given, the more resilient the logistics system is.

Resilience must be designed into the network

The events of recent years have highlighted the vulnerability of interconnected supply chains. Geopolitical tensions, bad weather, a lack of labour, poorly developed infrastructure and an unexpected spike in demand are some events that can cause problems for logistics systems without prior notice. Thus, companies should create an end-to-end network not just for normal times but also capable of functioning quickly in problematic situations. In order to create such a network, it is necessary to find alternative suppliers, use several means of transportation, create several routes of delivery, and establish inventory. It is also important to use scenario planning to define what to do if the main hub becomes unavailable or any means of transportation is blocked.

Sustainability: Part of the delivery equation

The future of logistics will also be shaped by environmental considerations.

As delivery volumes rise, businesses are under increasing pressure to reduce emissions without compromising service. Better route planning, load optimisation, electric vehicles, alternative fuels, renewable-energy-powered warehouses and consolidated deliveries can all contribute. The most sustainable shipment is often the one that does not require unnecessary movement in the first place.

Better demand forecasting and inventory placement can reduce empty miles and avoid repeated transportation. Consolidating deliveries can improve vehicle utilisation. Reverse logistics can ensure that products, packaging and materials return efficiently instead of becoming waste.

Sustainability, therefore, should not be treated as a separate initiative. It should be incorporated into network design itself.

The future belongs to connected logistics

An end-to-end logistics network ultimately seeks to close existing gaps between various processes.

Every mile of the process should be interconnected with the other miles. Warehouses should be aware of the restraints imposed by transportation. Delivery crews should be able to know at every moment the inventory at their disposal. Clients must have access to this useful information.

Companies that will be successful in this area will not necessarily be the ones with the biggest fleets or the most warehouses. They will simply be the ones that can employ their resources in the most effective manner.

The future of logistics will be represented by an ecosystem consisting of the combination of the physical aspect, digital intelligence, and personnel decisions. Every mile in the process of delivery is important. However, the key advantage here is getting those miles to work together.

For companies, it means having minimal resistance, enhancing their efficiency and improving customer care. For clients, it means simply having the right product delivered at the right time.

About the author: Praveen Vashistha, Founder, Gxpress Solutions,