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Journey of cement as a sustainable construction material

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The global cement industry space is as big as $300 billion, almost half of that is in China, but the real distinctive way of looking at the space is to see how much of this is ??ustainably??organised, as most of it is not.

The two most dominant regions that are organising themselves sustainably is EU and China, the former is doing it through legislations and cement companies have to buy carbon credits, the price of which has moved to the stratosphere, so the financial incentives are driving it as less emissions can only reduce this impact. The latter is cracking down on all polluting industries and emission norms remain stringent for all industries, including cement.

The rest of the world do not have a concerted way of incentivising the sustainability journey in cement, although every government wants to limit the impact of emissions and there are norms set in this regard. These norms however are far short of making the journey for a net zero kind of impact, which essentially means that cement as a construction material will not add any net emission of CO2 to the atmosphere either during production or in sourcing of inputs or during transportation and use. This is a very tall task for three reasons.

The first reason is that the conversion of limestone to clinker itself is the fundamental driver of the bulk of the CO2 emissions as the molecular structure changes. The second most dominant factor for emissions is in the use of energy for heating of the limestone mix and the emissions that stem from the logistics sector on the inbound and outbound to move materials. The third is the entire supply chain of cement including all sources of direct and indirect materials add to the woes of emissions generated by the partners in the process. Thus making and distribution of cement becomes the text book case for emissions and sustainability.

The cement to CO2 mix is simple to understand that for every ton of cement produced 0.6 tons end up as CO2 in the atmosphere. So if the world produces 4.3 billion tonnes of cement, 2.6 billion tonnes of CO2 is emitted by the industry globally, out of which 1.82 billion tonne is only in the conversion of limestone to clinker.

This natural process of production of cement is where all attention is currently devoted as the rest has solutions like using solar or wind as energy source, waste heat recovery systems or electrification in transportation and improvement of efficiencies of all kind in the entire supply chain. But the basic production process of cement needs a breakthrough look if net zero targets are to be met.

This journey of reducing the emissions for producing cement started in the early part of 2000, when Polish cement manufacturers started using more fly ash as raw material inputs while grinding clinker to cement, this reduced the clinker in cement. The percentage use of fly ash moved to plus 30 per cent when it drew the world?? attention as it meant that overall emission reduction could touch 30 per cent of 70 per cent or 21 per cent.

The same started to happen with use of slag in slag based cement where the percentage use touched more than 50 per cent, which meant that 50 per cent of 70 per cent, or 35 per cent reduction in emission for the overall cement industry.

Thus alternate use of raw materials in the grinding, slag and fly ash helped to reduce CO2 emissions from close to 600 kg per ton of cement to 550 kg per tonne of cement now. The question now is to look at the balance, which is the very production of clinker through the natural process of conversion of limestone through application of heat, which releases CO2 to the atmosphere.

The current technologies where the attention has been drawn is towards carbon capture processes that will disallow release of carbon dioxide (CO2) to the atmosphere. The first one of its kind is the strategy of using CO2 for permanent storage during the production of concrete, where CO2 molecules are injected when cement is mixed with water to create concrete and it permanently stores CO2 to harden the concrete forever.

Today the world over pre-cast or pre-fabricated concrete blocks are the new norms of the day and this technology can be used to absorb the CO2 molecules to harden the concrete and this would prevent the release of CO2 to the atmosphere. This is the future use of CO2 not only from the emissions coming from the Cement industry but also from any industry that releases CO2 and it helps in the carbon credit offset for all industries as well.

Thus carbon capture, sequestration and its use in existing or future products is where the world?? attention is devoted; the efficiency improvement programs, use of waste heat recovery from the process by extracting from the cooler, use of alternate materials during grinding, etc. all comes on top.

If the world?? incentive systems are well coordinated, the pace at which these programs are run will only move to the next gear, as the investments can only pay back to offset the carbon credits.

The cement-concrete industry on the other hand by providing a useful carbon capture solution in its product would have the right for a premium that customers would be willing to pay as responsibility for the environment becomes mandatory for all.

Footnote:

ABOUT THE AUTHOR:

Procyon Mukherjee is an ex-Chief Procurement Officer at LafargeHolcim India.

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Concrete

Dalmia Acquires Five Point Two MnTPA Cement Assets in Central Region

Acquisition adds capacity, power and rail access

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Dalmia Cement (Bharat) Limited (DCBL) executed a business transfer agreement on 21 May 2026 to acquire a cement undertaking from Jaiprakash Associates Limited (JAL) and Adani Infra (India) Limited. The assets include plants at Rewa in Madhya Pradesh and Churk, Chunar and Sadwa in Uttar Pradesh with five point two million tonnes per annum (mn tpa) cement capacity and three point three mn tpa clinker capacity, plus 99 megawatt (MW) thermal power and railway sidings. The transaction carries an enterprise value of Rs 28.5 billion (bn).

DCBL, a wholly owned subsidiary of Dalmia Bharat Limited (DBL), will see cement capacity rise to 54.7 mn tpa on completion. Ongoing expansions at Belgaum, Pune and Kadapa are expected to raise capacity to 66.7 mn tpa by the second to third quarter of fiscal 2028. The company said the transaction would be consummated within two weeks.

The deal follows a framework signed in December 2022 to settle long running disputes with JAL, including a long term clinker supply arrangement. Completion was delayed when JAL entered insolvency and the earlier sale did not finalise. Following approval of a resolution plan under the Insolvency and Bankruptcy Code, DCBL executed a fresh business transfer agreement to resolve pending legal and arbitral matters.

Company statements described the acquisition as strategic, accelerating access to central markets compared with a greenfield route and offering scope for expansion through debottlenecking and brownfield investment. Proximity to the company’s captive mines and established vendor relationships should support faster ramp up. The assets should augment EBITDA delivery and enhance returns by enabling entry into newer markets with relatively better prices.

Senior executives said the addition aligned with a long term plan to build a pan India presence and would provide a head start in central markets. They noted that familiarity with the plants under earlier tolling arrangements offers operational insight and strengthens channel relationships, supporting quicker market entry. Management expressed confidence that the assets’ expansion potential would generate value for stakeholders.

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Concrete

Ramco Cements Reports FY26 Revenue Growth And Higher Profit

Net debt reduced as exceptional items boost FY26 earnings

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Ramco Cements reported standalone audited results for FY26 with net revenue of Rs 90,560 million (mn) and profit after tax of Rs 6,940 mn. EBIDTA rose to Rs 14,820 mn and blended EBIDTA per tonne was Rs 788 on a two per cent volume rise to 18.81 million (mn) tonne (t). Cement revenue increased by five per cent and construction chemicals revenue rose by 66 per cent.

Raw material cost per tonne rose to Rs 1,023 from Rs 956 mainly due to a mineral bearing land tax of Rs 160 per t in Tamil Nadu, adding about Rs 86 per t. Power and fuel cost per tonne fell to Rs 1,098 from Rs 1,123 with petcoke mix down to 47 per cent and green power up to 40 per cent.

Profit before tax after exceptional items was Rs 8,790 mn. Net exceptional items were Rs 5,530 mn, including Rs 5,740 mn from sale of surplus land and Rs 200 mn of past service cost. The company monetised Rs 10,980 mn from non core asset sales over the past two years and recorded capex of Rs 9,970 mn, with guidance of Rs 8,000 mn for FY27.

Net debt fell by Rs 8,170 mn to Rs 36,640 mn at 31 March 2026 and cost of debt eased to 7.29 per cent, reducing net debt to EBIDTA to 2.47 times. Management indicated the full impact of higher fuel costs is expected from Q2 FY27, while packing and diesel cost increases will be visible in Q1 FY27. The board has proposed a dividend of Rs two point five zero per equity share and the company flagged risks from elevated fuel and logistics costs, commodity volatility and competitive pricing.

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Dalmia Cement to Acquire 5.2 MnTPA Capacity

Deal covers cement assets in Madhya Pradesh and Uttar Pradesh

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Dalmia Cement (Bharat), a wholly owned subsidiary of Dalmia Bharat, has executed a Business Transfer Agreement with Jaiprakash Associates and Adani Infra (India) to acquire cement assets with 5.2 MnTPA capacity in the Central region.

The acquisition covers cement plants located at Rewa in Madhya Pradesh, and Churk, Chunar and Sadwa in Uttar Pradesh. The assets include 5.2 MnTPA cement capacity, 3.3 MnTPA clinker capacity, 99 MW thermal power capacity, railway sidings at Rewa and Chunar, and a common railway siding at Churk. The enterprise value of the transaction is Rs 28.5 billion.

Following completion of the transaction, Dalmia Bharat’s cement capacity will increase to 54.7 MnTPA. Its ongoing expansion projects at Belgaum, Pune and Kadapa are expected to further raise capacity to 66.7 MnTPA by the second or third quarter of FY28. The transaction is expected to be completed within two weeks.

Dalmia Cement had entered into a framework agreement with Jaiprakash Associates in December 2022 for the sale of business assets and related agreements, including a business transfer agreement and cement sale purchase agreement. The agreements were intended to settle disputes between the parties, including those under the long-term clinker supply agreement. However, the transaction could not be completed after Jaiprakash Associates was admitted to insolvency.

Following approval of the Adani Group’s resolution plan for Jaiprakash Associates under the Insolvency and Bankruptcy Code, Dalmia Cement requested that the earlier agreement be considered to settle pending disputes. The company has now executed a fresh Business Transfer Agreement with Jaiprakash Associates and Adani Infra (India) for the cement undertaking.

The acquisition supports Dalmia Bharat’s strategy to become a pan-India cement player and provides faster access to Central markets compared to a greenfield project. The assets also offer expansion potential through debottlenecking and brownfield development.

Puneet Dalmia, Managing Director and CEO, Dalmia Bharat, said the assets are a strong strategic fit and will help the company serve high-potential markets in the Central region. He added that the expansion potential of the assets and their proximity to Dalmia’s captive mines could help create a future capacity hub.

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