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Our target is to become carbon-negative by 2040: Dalmia Cement

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Elaborating on its sustainability initiatives, Ashwani Pahuja, Chief Sustainability Officer and Executive Director, Dalmia Cement (Bharat) Limited, India reveals that In the last five years, the company has trimmed 17.6 million tonnes of carbon dioxide emissions from its operations.

Sustainability, as a concept, has picked up well within the cement manufacturers. Elaborate on initiatives adopted by Dalmia Cement.

Our target is to become carbon negative by 2040. The first step is RE 100 by 2030 and fossil fuel replacement by 2035. Since the last decade, there are major initiatives on sustainability starting with material circularity, increased utilisation of industrial waste including fly-ash and and slag. In 2013, we were consuming nearly 1 million tonnes of industrial waste, which has increased to 6 million tonnes. That is a six fold increase in our material circularity or circular economy.

Multiple energy efficiency optimization programmes have also been implemented at the plant including retrofitting of energy efficient equipment. Today, the average energy consumption within our group is 71 kWh/tonne, which is nearly 20% lower than the global average. These two measures coupled with certain initiatives in renewables (installed 8 MW solar PV + 9MW of waste recovery project) has made Dalmia one of the lowest carbon footprint companies globally. The CDP (Carbon Disclosure Project) has ranked Dalmia as the number one group globally in the business readiness for low carbon in their global sector report published in 2018.

In the last four years, we have also become five times water positive. The aim is to be 25 times water positive by 2030. In the last five years, we have avoided 17.6 million tonnes of carbon dioxide emissions from our operations.

What are the other measures under implementation?

To further reduce our dependency on fossil fuels, we are installing waste heat recovery in plants wherever it is technically feasible. From the current 9.2 MW, it will increase to 56.2 MW in next 4-5 years. And in carbon neutral fuels (biomass) currently at 4% will be enhanced to 25% in the next five years. More solar installation (77MW) is in the offing as part of RE100 target set for 2030. By then, all electricity consumption for plants will be from renewables.

Can you quantify the percentage of increase in fund allocations for sustainability initiatives annually?

There are certain constraints in the solar initiative for private players, particularly, in transmissions segment policies. We hope that this would be sorted by the government with enabling policies. Financing for sustainable technologies and carbon technologies is not an issue as global financing companies are ready to fund provided you reduce carbon footprint.

In line with Paris Climate Agreement, there may be a push from the government. In European countries, the polluter pays for industrial wastes as well as for various alternate fuels including landfill activities. We may expect such policies in the near future in our country. We are looking at bamboo plants in waste land, which in turn, can be a fuel for the cement industry as well as for the power industry.

As a standalone, it is very difficult to switch over to carbon neutral technologies unless there are very attractive carbon markets. In the near future, these carbon markets are likely to become active. There are Green Climate Funds to the tune of $100 million every year to the developing nations for carbon-neutral technologies.

Could you elaborate on the cost advantage after adopting newer technologies?

Cost benefits are not immediate but over the medium- to long-term, the benefits are good. Initially, solar was at Rs 16/ unit. However, technological advancements and economies of scale brought the prices down. In the long term, these technologies will have to become viable through economies of scale technologies and also by enabling policies including incentives and the carbon markets. So, it?? a mix of low interest green finance, liberal policies as well as economics of scale.

Does India have a compliance structure for companies that are internationally accepted when it comes to green funds?

IFC and ADB are ready to fund projects provided the organisations come forward with various carbon neutral initiatives. For Dalmia, which is arguably one of the lowest carbon footprint companies in the world, it is not that difficult.

Renjini Liza Varghese

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India’s Cement Sector Cuts Energy Use, but Worker Safety Worsens

iFOREST finds efficiency gains alongside water and safety concerns

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India’s cement sector has improved its energy and carbon efficiency, but rising groundwater use in water-stressed regions and deteriorating worker safety remain significant concerns, according to a report by the International Forum for Environment, Sustainability & Technology (iFOREST). The findings also highlighted weak policy implementation and gaps in sustainability reporting.

India, the world’s second-largest cement producer, uses about 2.54 gigajoules of energy per tonne (GJ/t), below the global average of 2.88 GJ/t. However, renewable sources accounted for only 5.1 per cent of the sector’s energy mix, indicating continued dependence on conventional sources.

The report assessed 18 cement companies against 107 Business Responsibility and Sustainability Reporting indicators for FY24 and FY25. The companies covered 87 per cent of India’s cement production. Carbon emissions intensity declined from 0.58 to 0.57 tonnes of carbon dioxide per tonne, but total emissions increased 4 per cent to 224.3 mn t, equivalent to about 6 to 7 per cent of India’s overall emissions.

Overall water withdrawal declined 9.5 per cent during the study period, while withdrawals in water-stressed areas, mainly in Rajasthan, increased by more than 20 per cent. Groundwater’s share of withdrawals in these areas rose from 27 per cent to 38 per cent, raising concerns about the sector’s impact on vulnerable water resources.

The sector employs about 228,000 people, including 63 per cent contractual workers, 3.1 per cent women and 0.07 per cent persons with disabilities. Women in key managerial roles earned 26.8 per cent less than men, while median pay for women workers fell 11.1 per cent in FY25 as men’s pay increased. Worker injuries rose 36.5 per cent to 359, and fatalities increased from 17 to 22, with workers accounting for more than 90 per cent of deaths.

iFOREST recommended cement-specific reporting guidance, standardised metrics, mandatory production disclosure and third-party verification. It also called for environmental, social and governance policies to be integrated into business strategies and implemented more effectively on the ground.

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Ambuja Cements Expects Volume Growth to Outpace Industry in H2

Ambuja Cements sees stronger trade and institutional demand in H2 FY27.

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Ambuja Cements expects its sales volumes to grow faster than the cement industry during the second half of fiscal year 2027, as it seeks a recovery in institutional demand after a weak first half. The Gautam Adani-owned company is aiming to rebuild volumes while protecting profitability.

The company reported a 90 per cent year-on-year decline in consolidated net profit attributable to owners of the parent to Rs. 1.93 bn for the quarter ended 30 September, from Rs. 17.74 bn a year earlier. The previous year’s profit included a reversal of income-tax provisions worth Rs. 16.97 bn. Revenue from operations rose marginally to Rs. 91.66 bn from Rs. 91.3 bn.

Trade volumes increased 8.6 per cent year-on-year in the September quarter, but weaker institutional sales left overall volumes broadly unchanged. Ambuja Cements expects both trade and institutional sales to turn positive in the third and fourth quarters. Trade sales are made through dealers and distributors, while institutional or business-to-business sales involve bulk supplies to infrastructure developers, government projects and real estate companies.

The company had earlier reduced institutional sales that did not generate adequate returns. It now plans to rebuild the business selectively, while continuing to prioritise trade sales and higher-value products. Trade accounted for 74 per cent of sales in the quarter, up six percentage points from a year earlier, while premium products increased to 37 per cent of trade sales from 35 per cent. Blended cement’s share rose to 82 per cent from 77 per cent.

Ambuja Cements commissioned 4.6 mn t of capacity during the quarter. Another 3.2 mn t at Bathinda in Punjab and Jodhpur has stabilised, with the facilities expected to ramp up in the second half. A further 2.4 mn t facility at Varkala in Bihar is scheduled for commissioning during the period. Higher fuel and logistics costs remain a challenge, while the company has realised a cement price increase of about Rs. 10 per bag in October and is targeting operating costs of Rs. 4,250 per t for the full year.

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JK Lakshmi Cement Begins Rs 110 Billion Assam Plant Project

The 2.5 MTPA integrated cement plant is expected to be completed by FY2029.

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JK Lakshmi Cement has recently laid the foundation stone for Project Kamakshi, its first integrated cement manufacturing facility in Assam, marking its entry into Northeast India. The groundbreaking ceremony was held at Umrangso village in Dima Hasao district in the presence of Assam Chief Minister Himanta Biswa Sarma.
The project involves an investment of Rs 110 billion, including the mining lease, and will have an annual cement production capacity of 2.5 million tonnes, supported by a 1 million tonne clinkerisation unit. Scheduled for completion by FY2029, the facility is expected to generate employment for over 2,000 people while catering primarily to the growing Northeast market.
The integrated plant will feature dedicated railway sidings to facilitate efficient transportation of raw materials and finished cement, strengthening supply chain reliability and regional distribution.
Vinita Singhania, Chairperson and Managing Director, JK Lakshmi Cement, said, “”Project Kamakshi is the start of a long-term relationship with Assam and the wider North East. This is a region that is building fast, and it deserves quality cement made close to home. With this plant, we want to bring scale, jobs, and dependable supply to the region. At JK Lakshmi Cement, we believe that building a stronger India goes beyond infrastructure. It is also about growing together with the communities we serve.””
The investment aligns with the company’s strategy to expand into high-growth markets beyond its established presence in Northern, Western and Eastern India. The project is also expected to support regional economic development and infrastructure growth.
JK Lakshmi Cement aims to pursue its expansion plans while working towards its long-term target of achieving net-zero emissions by 2047.

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