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Green revolution in cement industry

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Nobody could have imagined of creating building materials made of crop residues and industrial by-products. But GreenJams have revolutionised the way building materials are being manufactured. Tarun Jami, the Founder of GreenJams, spent five years studying hempcrete academically to equip himself with the technical skills to create a carbon-negative product, and after a lot of trials and tribulations, he invented Agrocrete–a carbon-negative building material comprising of crop residues and a lime-based binder. While Agrocrete is a scientific anomaly, the most amazing aspect about it is that it augments farmers??income, keeps the air clean, and generates rural employment. It is carbon-negative and helps reverse climate change too.

??reen??and ??nvironmentally efficient??products have become the buzzwords today. The Indian cement and construction industry is working effectively towards reducing carbon footprints and meeting sustainability targets. Calcination and clinker-making process are the biggest contributors to CO2 emission. About 7-8 per cent of global carbon emissions come from clinker manufacturing alone. Materials like fly ash bricks, AAC blocks, and any other novel building materials use clinker-based cement.

Cemet production is a significant source of global carbon dioxide (CO2) emissions. About 7-8 per cent of global carbon emissions come from clinker manufacturing alone. So, what is the solution? GreenJams has an answer to this problem too. The company has come up with another innovative product called BINDR?? 100 per cent upcycled product that can help cement companies cut their carbon footprint by more than 80 per cent when compared to regular Portland cement.

Below are excerpts from the interview with Tarun Jami, the Founder of GreenJams.

How did you start your journey towards making a carbon-neutral building material for the construction industry?

Late during my undergrad days of studying civil engineering, I had come across the topic-what climate change is and the impact that construction activities have on it. Since then, I got conscious of what destruction construction would cause to our environment. Ever since I developed this conviction, I was on the lookout for technologies and materials that would help make construction less harmful to the environment.

Towards the end of my engineering, I had stumbled upon a building material called hempcrete. It was carbon-negative and was made of hemp, and it felt like I had discovered a wonderland. I suddenly realised that with this hempcrete, we could make construction better for the planet. Can you imagine that construction could help reverse climate change? That epiphany set me on a journey that took me this far.

Could you brief us about your innovative product BINDR– a low-carbon replacement of Portland cement? Does it qualify for all quality and strength tests? How is it better than Portland cement?

BINDR is a 100 per cent up-cycled replacement of Portland cement with a characteristic strength equivalent to 43 grade OPC. We aren?? yet claiming structural capabilities for BINDR since we haven?? yet proven its long-term durability. Being a 100 per cent upcycled product, we can cut its carbon footprint by more than 80 per cent when compared to regular Portland cement. At 0.1 kg CO2/kg, the embodied carbon can?? go lower than this at this price point.

Agrocrete is made from crop residue. You have changed the traditional processes. How did you think of such an innovative idea? How was the response in the market in the beginning?

Agrocrete came out of a lot of trials and tribulations. It emerged as a response to a much deeper societal problem in India. About 44 per cent of Delhi-NCR?? poor winter air quality is because of crop residue burning. Almost 100 million tonnes of crop residues are burnt annually in India, leading to almost 2 lakh crore of economic loss to the country. I almost crashed my car on my visit to Delhi in late 2019 because of the impact that poor air quality had on my health. While Agrocrete is a scientific anomaly, the most amazing aspect about it is the fact that it augments farmers??income, keeps the air clean, and generates rural employment. It is carbon-negative and helps reverse climate change too. In the beginning, the market response was very skeptical and it still is. I get questions on fire resistance, decay, and durability of the blocks, which are all great, by the way.

Were there any hurdles you faced? How did you overcome them?

There were so many hurdles we faced. The biggest hurdles were technical and financial. While we somehow managed to solve the financial hurdles, the technical ones were more difficult to overcome. I spent five years studying hempcrete academically to equip myself with the technical skills to create Agrocrete. In 2017 I had started my Ph.D. at CSIR-Central Building Research Institute (CSIR-CBRI), Roorkee.

How cost-effective is your Agrocrete product? Does it offer faster completion of a project? How? Could you tell us about the manufacturing process of Agrocrete material? What kind of technology was involved?

Agrocrete helps reduce the cost of construction by almost 50 per cent in comparison to red bricks. The larger block sizes enabled by the significantly lesser weight help make it easy to work with for the masons. We are able to reduce the mortar joints by more than 60 per cent and the plaster requirements by almost 50 per cent because of the cleaner finish. The construction speed is up by almost 2.5X. Agrocrete manufacturing is a completely zero-emissions process. We utilise a patent-pending advanced alkali activation chemical technology. We do not use any furnaces and use latent chemical reactions to achieve strength.

Calcination and clinker-making process are the biggest contributors to CO2 emission. Please share your thoughts on how you can make a difference in this space.

About 7-8 per cent of global carbon emissions come from clinker manufacturing alone. Any reduction in clinker production is beneficial for the planet and humankind. Also, fly ash bricks, AAC blocks, and any other novel building materials use clinker-based cement which contribute a significant sum to the products??embodied carbon. BINDR could potentially be used to make all these products. Furthermore, by making mortars for block work and plastering, we can reduce the carbon footprint of buildings.

Tell us about the office space that you converted into a manufacturing unit at Roorkee

We built our manufacturing unit from scratch in Roorkee. We built this 1100 sq. ft. industrial building in four days flat at a cost of only Rs 200 /sq. ft. We were able to capture a total of 3.1 tons of carbon dioxide, making it carbon negative. We were able to achieve a 30 percent lesser cost of construction as compared to red bricks by reducing the mortar joints and construction time by 60 per cent. Our Roorkee manufacturing facility was built at Rs 2 lakh, which would have otherwise cost about Rs 5 lakh if we had built it using red bricks. We were able to reduce the mortar joints by more than 60 per cent and increased construction pace by 2.5x and consequently reduced labour costs.

Could you tell us about the ongoing projects and the cost and material involved in it? Any business expansion plans?

We are currently working on supplying Agrocrete hollow and solid blocks and BINDR to multiple residential projects in Punjab, Haryana, Uttarakhand, Delhi-NCR, and Uttar Pradesh. These are individual residences being built by private clients for themselves and the total number of Agrocrete hollow and solid blocks we are supplying are almost 1,00,000 units and BINDR will be about 200 bags.

We are currently in the process of setting up a brand new 2,000 blocks per day manufacturing facility in Visakhapatnam, Andhra Pradesh. The facility is expected to be operational in the next two to three months. We have received an overwhelming number of enquiries since July 13, 2021 from Karnataka, Maharashtra and Telangana and are looking for franchising partners who could set up the Agrocrete blocks manufacturing facilities in these markets.

A lot of well-established brands claim to be ??/strong>green??and ??nvironmentally efficient?? Your thoughts on this? Do you think the Indian cement & construction industry is on the right path towards sustainability?

The problem with the industry is that the benchmarks for ??reen??are getting higher and higher. Also, many products are greenwashed and do not consider lifecycle environmental impacts. With greenwashing becoming rampant, consumers and competitors are going to ask more difficult questions that manufacturers will have to be ready for. The Indian cement industry specifically is one of the greenest in the world. The average embodied carbon of Indian cement is much lower than the global average. With many companies committing to becoming carbon-neutral or even carbon-negative, I think we are on the right path towards sustainability. But it?? also time to now shift focus towards biodiversity and similar pursuits.

What are your plans in terms of adding more to product portfolio, investments, research, and development?

We have always been focused on research and development. Our team is capable, fast, and enterprising enough to develop new products that satisfy customer demands. In fact, our Agrocrete Plaster was created in response to a customer?? request. We are also looking to launch a range of carbon-negative home d?cor products under a new brand name called Sanscrete. It could potentially be the world?? first carbon-negative home d?cor brand. Sanscrete will focus on objects for home d?cor, and corporate and wedding gifting. We are currently looking to raise our first seed round and are inviting angel investors and HNIs to come to speak to us.

– Megha Rai

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Concrete

Indian Cement Industry Sees Further Consolidation

Cement industry to face consolidation soon.

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India’s cement sector is set for further consolidation in the near-to-medium term, according to a recent report. With increasing competition, rising input costs, and the need for economies of scale, companies are expected to explore mergers and acquisitions (M&A) to strengthen their market positions. As the industry faces various challenges, including high energy costs and fluctuating demand, consolidation is viewed as a strategic move to drive growth and sustainability.

Key Points:
Market Consolidation: The Indian cement industry has already witnessed significant consolidation over the past few years, with several large firms acquiring smaller players to enhance their market share. The trend is expected to continue, driven by the need to optimize operations, cut costs, and gain better pricing power. Consolidation helps companies to expand their geographic reach and strengthen their portfolios.

Rising Costs and Challenges: One of the primary drivers of consolidation is the rising cost of inputs, particularly energy and raw materials. With costs of coal and petroleum coke (key energy sources for cement production) soaring, companies are looking for ways to maintain profitability. Smaller and medium-sized players, in particular, find it challenging to cope with these rising costs, making them more likely targets for acquisition by larger companies.

Economies of Scale: Larger cement companies benefit from economies of scale, which help them absorb the impact of rising input costs more effectively. Consolidation allows firms to streamline production processes, reduce operational inefficiencies, and invest in advanced technologies that improve productivity. These efficiencies become critical in maintaining competitiveness in an increasingly challenging environment.

M&A Activity: The report highlights the potential for more mergers and acquisitions in the cement sector, particularly among mid-sized and regional players. The Indian cement market, which is highly fragmented, presents numerous opportunities for larger companies to acquire smaller firms and gain a foothold in new markets. M&A activity is expected to accelerate as firms seek growth through strategic alliances and acquisitions.

Regional Focus: Consolidation efforts are likely to be regionally focused, with companies looking to expand their presence in specific geographic areas where demand for cement is strong. Infrastructure development, government projects, and urbanization are driving demand in various parts of the country, making regional expansions an attractive proposition for firms looking to grow.

Impact on Competition: While consolidation may lead to a more concentrated market, it could also intensify competition among the remaining players. Larger firms with more resources and market reach could dominate pricing strategies and influence market dynamics. Smaller firms may either merge or struggle to compete, leading to a reshaping of the competitive landscape.

Demand Outlook: The near-term outlook for the cement industry remains uncertain, with demand being influenced by factors such as construction activity, infrastructure projects, and government initiatives. The report notes that while urban demand is expected to remain stable, rural demand continues to face challenges due to slow construction activities in those areas. However, the long-term outlook remains positive, driven by ongoing infrastructure developments and real estate projects.

Sustainability Focus: Companies are also focusing on sustainability and environmental concerns. Consolidation can provide larger companies with the resources to invest in green technologies and reduce their carbon footprint. This focus on sustainability is becoming increasingly important, with both government regulations and market preferences shifting toward greener production practices.

Conclusion:
The Indian cement industry is poised for further consolidation in the coming years, driven by rising costs, competitive pressures, and the need for economies of scale. M&A activity is likely to accelerate, with larger firms targeting smaller and regional players to strengthen their market presence. While consolidation offers opportunities for growth and efficiency, it could also reshape the competitive landscape and influence pricing dynamics in the sector.

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Concrete

Cement Companies May Roll Back Hike

Cement firms reconsider September price increase.

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Cement companies in India might be forced to reverse the price hikes implemented in September due to weakened demand and pressure from competitive market conditions, according to a report by Nuvama Institutional Equities. The recent price increase, which was expected to improve margins, may not hold as demand falls short of expectations.

Key Points:
Price Hike in September: Cement firms across India increased prices in September, aiming to improve their margins amidst rising input costs. This was seen as a strategic move to stabilize earnings as they were grappling with inflationary pressures on raw materials like coal and pet coke.

Weak Demand and Pressure: However, demand has not surged as expected. In some regions, particularly rural areas, construction activity remains low, which has contributed to the tepid demand for cement. The combination of high prices and low demand may make it difficult for companies to maintain the elevated price levels.

Competitive Market Forces: Cement manufacturers are also under pressure from competitors. Smaller players may keep prices lower to attract buyers, forcing larger companies to consider rolling back the September hikes. The competitive dynamics in regions like South India, where smaller firms are prevalent, are likely to impact larger companies’ pricing strategies.

Nuvama Report Insights: Nuvama Institutional Equities has highlighted that the September price hikes may not be sustainable given current market conditions. According to the report, the demand-supply imbalance and weak construction activities across many states could push cement companies to reconsider their pricing strategies.

Impact on Margins: If companies are compelled to roll back the price hikes, it could hurt their profit margins in the near term. Cement firms had hoped to recover some of their input costs through the price increases, but the competitive landscape and slow demand recovery could negate these gains.

Regional Variations: Price rollback might not be uniform across the country. In regions where infrastructure development is picking up pace, cement prices may hold. Urban areas with ongoing real estate projects and government infrastructure initiatives could see a sustained demand, making price hikes more viable.

Future Outlook: The outlook for the cement sector will largely depend on the pace of recovery in construction activity, particularly in the housing and infrastructure sectors. Any significant recovery in rural demand, which is currently subdued, could also influence whether the price hikes will remain or be rolled back.

Strategic Adjustments: Cement firms may need to adopt a cautious approach in the near term, balancing between maintaining market share and protecting margins. Price adjustments in response to market conditions could become more frequent as companies try to adapt to the fluctuating demand.

Conclusion:
The September price hikes by cement companies may face reversal due to weak demand, competitive pressures, and market dynamics. Nuvama’s report signals that while the increase was aimed at margin recovery, it may not be sustainable, particularly in regions with low demand. The future of cement pricing will depend on construction sector recovery and regional market conditions.

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Concrete

Bridge Collapse Spurs Focus on Stainless Steel

Climate change prompts stainless steel push.

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The Ministry of Road Transport and Highways (MoRTH) is turning its attention to the use of stainless steel in bridge construction to counteract corrosion, an increasing issue linked to climate change. With recent bridge collapses highlighting the vulnerability of existing infrastructure to corrosion and extreme weather events, the ministry is promoting the adoption of durable materials like stainless steel to ensure the longevity and safety of India’s critical transport infrastructure.

Key Points:

Bridge Collapse and Climate Change: Recent incidents of bridge collapses across the country have raised alarm over the durability of current construction materials, with corrosion cited as a leading cause. Climate change, leading to harsher weather patterns and increased moisture levels, has accelerated the deterioration of key infrastructure. This has prompted MoRTH to consider long-term solutions to combat these challenges.

Corrosion: A Growing Concern: Corrosion of structural materials has become a serious issue, particularly in coastal and high-moisture regions. The Ministry has identified the need for a more resilient approach, emphasizing the use of stainless steel, known for its resistance to corrosion. This shift is seen as crucial in ensuring the longevity of India’s bridges and reducing maintenance costs over time.

Stainless Steel for Bridge Construction: Stainless steel, while more expensive initially, offers long-term savings due to its durability and resistance to environmental factors like moisture and salt. The Ministry is advocating for the material’s use in future bridge projects, particularly in areas prone to corrosion. Stainless steel is seen as a solution that can withstand the pressures of both natural elements and increasing traffic loads.

Government’s Proactive Steps: The government, through MoRTH, has started consulting with experts in the field of metallurgy and civil engineering to explore the expanded use of stainless steel. They are considering updates to construction standards and specifications to incorporate this material in new and rehabilitated infrastructure projects.

Economic Considerations: Although the initial investment in stainless steel may be higher than conventional materials, the reduced need for repairs and replacements makes it a cost-effective option in the long run. This approach also aligns with the government’s push for sustainable infrastructure that can withstand the test of time and climate change effects.

Future of Indian Infrastructure: With the push for stronger, more durable infrastructure, the Ministry’s move to adopt stainless steel for bridge construction marks a shift towards building climate-resilient structures. The use of this material is expected to not only enhance the safety and longevity of bridges but also reduce the financial burden on the government for constant repairs.

Industry Perspective: The stainless steel industry sees this shift as an opportunity to expand its market, particularly in the infrastructure sector. Stakeholders are engaging with the government to demonstrate the benefits of stainless steel, advocating for its increased use not just in bridges but across various infrastructure projects.

Conclusion: In response to the growing threat of climate change and its impact on infrastructure, the Ministry of Road Transport and Highways is prioritizing the use of stainless steel in bridge construction to combat corrosion and ensure the long-term durability of critical transport structures.

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