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We are expecting a turnover of Rs 400/450 cr after completion of Phase-1

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RP Gupta, Chairman and Managing Director, Shiva Cement.

New capacity additions are becoming difficult due to regulatory hurdles in land acquisition, mining leases and environmental approval, says RP Gupta, Chairman and Managing Director, Shiva Cement. In an exclusive chat with ICR, he elaborates on the company’s expansion drive. Excerpts from the interview.

Could you throw more light on the current expansion plan, Phase I and Phase II?
We had signed MOU with the Odisha government for expanding plant capacity up to 2.6 mtpa with an investment upto Rs. 800 crore in two phases. Currently, Phase I plan is under implementation up to 1 mtpa with a capital outlay of Rs. 270 crore. Commercial production of Phase 1 is likely to commence from Jan 2015 and thereafter Phase 2 expansion shall be taken up.

What will be the total investment and how do you plan to raise the capital?
Phase 1 shall be financed through a debt of Rs 170 crore and balance by equity and cash accruals. The lead bank has already sanctioned term loan of Rs 70 crore. Consortium members are in the process of sanction of balance 100 crore which will be completed by 1st week of July. Promoters have already brought in about Rs 30 crore.

Will ACC be taking more shares in SCL and how it is going to help its shareholders?
ACC has nominated directors in SCL’s Board and the total production of cement is marketed under ACC brand. They also provide technical and managerial guidance. Equity participation by ACC shall be negotiated only after sanction of loan. Shareholders shall be certainly benefited after expansion out of increased volume and efficiency. Several surplus assets shall be put to productive use after expansion.

What is your take on the current demand-supply mismatch?
In the recent past, substantial capacity was added in the country in anticipation of growth in demand. Unfortunately, demand is sluggish due to the slowdown in infrastructure and economy as a whole. However, such cyclical effects have been witnessed in the past also. Cement industry being a core sector, the medium and long- term view should be taken, which is certainly promising. Demand growth will certainly bounce back and excess capacity shall bottom out in the next two years. New capacity additions are becoming difficult due to regulatory hurdles in land acquisition, mining leases and environmental approval. If these issues are not addressed, it can create huge shortage and price hike, which is otherwise not desirable. It is understood that the domestic players do not enjoy a level playing field vis- a- vis global players, especially when it comes to import of cement. Yes. Input costs like fuel, energy and logistics cost is high in India, as compared to several other countries. All these are directly/indirectly controlled by the government. Yet India will always remain a net exporter of cement and clinker. The Indian cement industry is quite matured and adopting the latest technology in a quick manner. But the real worry is paucity of fuel and energy. We must liberalise the primary energy sector and create competition for improving supply with affordable cost and reducing dependency on imported energy. Competition is also needed in the secondary energy distribution and cross subsidy to be removed. Otherwise, the cement price will keep on spiralling.

Brief us on the steps you have taken to optimise fuel/energy efficiency.
Saving fuel and energy is most vital not only for the profitability but also for addressing environmental concerns. After expansion, our fuel and energy consumption-per-tonne of cement shall be much lower than the industry average due to adoption of latest technology.

Where does the company see itself five years down the line, in terms of reducing its carbon footprints?
After expansion, carbon emission per tonne of cement in SCL could be lower by about 40 per cent in comparison to industry average due to saving in fuel, energy and limestone consumption. The major reduction will be on the account of lowering clinker consumption through latest technologies.

How do you assess the challenges on the logistics front?
Logistics costs in our country are too high. Inadequate capacity in railway aggravates the problem for long- distance despatches of bulky product like cement, coal and minerals. Fortunately, our plant is located in the vicinity of market and raw material source. Therefore dependency upon rail despatch is quite low which provides us with an edge over other. However, in the larger interest of the country, we must transfer goods traffic from road to railway for cost- efficiency and reducing burden of imported energy. This needs a major restructuring of railway and augmenting investment of Rs.12 lakh crore in 12th Plan as against 2.6 lakh crore in 11th Plan. Details of such restructuring and financing solution are discussed in my book æTurn Around India.’

What steps does the company take to reduce the impact on the environment?
Environmental concern is one of the aspects of CSR and not the core issue, in my personal opinion. Rather, the core aspect is protecting the interest of shareholders, employees, customers, suppliers and neighbouring villagers. Environmental concern has been over politicised in our country. India’s per capita GHG emission is about 1.43 T as against world average 4.74 T. The industry’s share of GHG emission in the country is barely 21.7 per cent as against 17.6 per cent by agriculture, 10.2 per cent by domestic and 7.5 per cent by transport. It requires a separate debate while focussing on industry alone. This is elaborated in my book æTurn Around India,’ recently launched by Narendra Modi. Any growth and development is bound to damage environment; maybe in less or more proportion. We must not compromise with growth and development till our per capita income comes near to the world average and current account deficit is brought to nil. Thereafter, we should increase spending on green technology as a part of global mission. Every developed country has adopted a similar strategy during their development phase. Hence, we should also take a rational approach on this front.

What is your take on the usage of AFR?
Currently, we are not working seriously on alternative fuel, since our plant is located in the coal belt. However, some trials were conducted on the use of CHAR, a waste product of sponge kilns. It needs extensive study before putting into commercial use.

Brief us on the challenges faced by the cement industry today. How has SCL been able to sustain the growth momentum?
The immediate challenge is sluggish demand but it is a temporary phenomenon. The regular challenge will be escalating cost of fuel and energy for which we have taken adequate care in our expansion plan to reduce consumption. Another challenge is logistics cost and shortage of railway rakes arising due to lack of investment in railway and cross subsidy on goods freight. Fortunately, this is converted to our advantage due to market vicinity. But these issues need a pro-active policy for public interest.

In a very intense competitive market, what makes SCL different?
The core strength of SCL owns limestone mines. Existing integrated cement plants in this region do not have surplus limestone to expand the capacity and there are no virgin limestone deposits in the eastern zone. The other advantages are vicinity of market and vicinity of slag. We have adopted latest technology in the upcoming expansion with maximum use of slag which reduces production cost to significant level. Of course, our 26 years’ experience in the cement manufacturing and alliance with ACC are the added advantages.

Is there any plan to broaden the product basket?
Not at present

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Concrete

Dalmia Bharat Acquires Jaiprakash Associates Cement Assets for ₹2,850 Crore

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Dalmia Cement executed a Business Transfer Agreement with Jaiprakash Associates and Adani Infra, to acquire 5.2 MnTPA of cement capacity across Madhya Pradesh and Uttar Pradesh.

Dalmia Cement (Bharat) announced on May 22, 2026 that it had signed a Business Transfer Agreement with Jaiprakash Associates Limited and Adani Infra (India) Limited for the acquisition of cement plants located at Rewa in Madhya Pradesh and Churk, Chunar and Sadwa in Uttar Pradesh. The deal was struck at an enterprise value of ₹2,850 crore and is expected to close within two weeks of execution.

The acquired assets from Jaiprakash Associates include 5.2 MnTPA of cement capacity and 3.3 MnTPA of clinker capacity. The package also covers 99 MW of thermal power capacity and railway sidings at Rewa, Chunar, and a common siding at Churk. This infrastructure gives the acquisition immediate operational utility beyond just production tonnage.

The transaction has a long backstory. Dalmia Cement had originally entered into a framework agreement with Jaiprakash Associates in December 2022, covering the sale of these business assets along with a long-term clinker supply arrangement. However, before the deal could be completed, Jaiprakash Associates was admitted to insolvency proceedings under the Insolvency and Bankruptcy Code. The earlier agreements could not be consummated as a result.

In an official statement, Puneet Dalmia, Managing Director & CEO, Dalmia Bharat, said, “I am very excited about addition of these assets in our portfolio. This serves as a great strategic fit for Dalmia. It helps us move forward in our journey to be a pan India player and provide a strong head start to serve the high potential markets in Central region. I am optimistic that the expansion potential of these assets along with close proximity with Dalmia’s captive mines will help us create a capacity hub for the future”.

Following the approval of Adani Group’s resolution plan for Jaiprakash Associates under the IBC framework, Dalmia approached the new management to revive discussions. The fresh Business Transfer Agreement was executed to settle all pending disputes, legal proceedings, and arbitration matters arising from the original framework agreement with Jaiprakash Associates.

Expanding market reach

Dalmia added, “Our familiarity with these assets under the earlier tolling arrangement gives us a deep understanding of the facilities and helps us establish strong connect with channel partners and vendors. We believe that this will help us in faster ramp up of capacities and quicker inroads into the market. As we look forward, I am very confident that we will be able to leverage the strengths of Dalmia to operate these assets in a manner where we can maximise value creation for all our stakeholders.”

With the addition of these plants, Dalmia Bharat’s total installed cement capacity will rise to 54.7 MnTPA upon consummation. The company has further expansion projects underway at Belgaum, Pune, and Kadapa, which are expected to take overall capacity to 66.7 MnTPA by Q2 to Q3 FY28.

The Central India location of the Jaiprakash Associates plants gives Dalmia Bharat faster access to markets in Madhya Pradesh and Uttar Pradesh than a greenfield build would have allowed. The company also cited debottlenecking and brownfield expansion as near-term opportunities at the acquired sites. Dalmia Bharat said the assets were expected to contribute positively to EBITDA and overall returns, given the pricing environment in the region and the company’s cost structure.

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Concrete

PROMECON introduces infrared-based tertiary air measurement system for cement kilns

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The new solution promisescontinuous, real-time tertiary air flow measurement in cement plant operations.

PROMECON GmbH has launched the McON IR Compact, an infrared-based measuring system designed to deliver continuous, real-time tertiary air flow measurement in cement plant operations. The system addresses the longstanding process control challenge of accurate tertiary air monitoring under extreme kiln conditions. It uses patented infrared time-of-flight measurement technology that operates without calibration or maintenance intervention.

Precise tertiary air measurement is a critical requirement for stable rotary kiln operation. The McON IR Compact is engineered to function reliably at temperatures up to 1,200°C and in the presence of abrasive clinker dust. Its vector-based digital measurement architecture ensures that readings remain unaffected by swirl, dust deposits or drift. Due to these conditions conventional measurement systems in pyroprocess environments are often compromised.

The system is fully non-intrusive and requires no K-factors, recalibration or periodic readjustment, enabling years of uninterrupted operation. This design directly supports plant availability and reduces the maintenance overhead typically associated with process instrumentation in high-temperature zones.

PROMECON has deployed the McON IR Compact at multiple cement facilities, including Warta Cement in Poland. Plant operators report that the system has aided in identifying blockages, optimising purging cycles for gas burners, and supplying accurate flow data for AI-based process optimisation programmes. The practical outcomes include more stable kiln operation, improved process control, and earlier detection of process disturbances.

On the energy side, real-time tertiary air data enables reduction in induced draft fan load and helps flatten process oscillations across the pyroprocess. This translates to lower fuel and energy consumption, fewer unplanned shutdowns, and a measurable reduction in NOx peaks. This directly reflects on the downstream cost implications for plants operating SCR or SNCR systems for emissions compliance.

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Concrete

Filtration Technology is Critical for Efficient Logistics

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Niranjan Kirloskar, MD, Fleetguard Filters, makes the case that filtration technology, which has been long treated as a routine consumable, is in fact a strategic performance enabler across every stage of cement production and logistics.

India’s cement industry forms the core for infrastructure growth of the country. With an expected compound annual growth rate of six to eight per cent, India has secured its position as the second-largest cement producer globally. This growth is a result of the increasing demand across, resulting in capacity expansion. Consequently, cement manufacturers are now also focusing on running the factories as efficiently as possible to stay competitive and profitable.
While a large portion of focus still remains on production technologies and capacity utilisation, the hidden factor in profitability is the efficiency of cement logistics. The logistics alone account for nearly 30 per cent to 40 per cent of the total cost of cement, making efficiency in this segment a key lever for profitability and reliability.
In the midst of this complex and high-intensity ecosystem, filtration often remains one of the most underappreciated yet essential enablers of performance.

A demanding operational landscape
Cement production and logistics inherently operate in some of the harshest industrial environments. With processes such as quarrying, crushing, grinding, clinker production, and bulk material handling expose the machinery to constant high temperatures, heavy loads, and dust, often the silent destructive force for engines.
The ecosystem is abrasive, and often one with a high contamination index. These challenging conditions demand equipment such as the excavators, crushers, compressors, and transport vehicles to perform and perform efficiently. The continuous exposure to contamination across every aspect like air, fuel, lubrication, and even hydraulic systems causes long-term damage. Studies have also shown that 70 to 80 per cent of hydraulic system failures are directly linked to contamination, while primary cause of engine wear is inadequate air filtration.
For engines as heavy as these, even a minor contaminant has a cascading effect; reducing efficiency, performance and culminating to unplanned downtime. Particles as small as 5 to 10 microns, far smaller than a human hair (~70 microns), can cause significant damage to critical engine components. In an industry where margins are closely linked to operational efficiency, such disruptions can significantly affect both cost structures and delivery timelines.

Dust management: A persistent challenge
Dust is a natural by-product in cement operations. From drilling and blasting in the quarries to packing in plants, this fine particulate matter does occupy a large space in operations. Dust concentration levels in quarry and crushing zones often create extremely high particulate exposure for equipment. These fine particles, when enter the engines and critical systems, accelerates the wear and tear of the component, affecting directly the operational efficiency. Over time every block fall; engine performance declines, fuel consumption rises, and maintenance cycles shorten. In this case, effective air filtration is the natural first line of defence. Advanced filtration systems are designed to capture high volumes of particulate matter while maintaining consistent airflow, ensuring that engines and equipment operate under optimal conditions.
In high-dust applications, as in cement production, even the filtration systems are expected to sustain performance over extended periods without the need of frequent replacement. This becomes crucial in remote quarry locations where access to frequent maintenance may be limited.

Fluid cleanliness and system integrity
Beyond air filtration, fluid systems also play a crucial role for equipment reliability in cement operations. Fuel systems are required to remain free from contaminants for efficient working of combustion and injection protection. Additionally, lubrication systems also need to maintain the oil purity to reduce friction and prevent any premature wear of moving parts. The hydraulic systems, which are key to several heavy equipment operations, are especially sensitive to contamination.
If fine particles or water enters these systems, it can lead to reduced efficiency, erratic performance, and eventual failure of the system. Modern filtration systems are designed with high-efficiency media capable of removing extremely fine contaminants, with advanced fuel and oil filtration solutions filtering particles as small as two to five microns. Multi-stage filtration systems further ensure that fluid performance is maintained even under challenging operating conditions.
Another critical aspect of fuel systems is water separation. Removing moisture helps prevent corrosion, improves combustion efficiency and enhances overall engine reliability. Modern water separation technologies can achieve over 95 per cent efficiency in removing water from fuel systems.

Ensuring reliability across the value chain
Filtration plays a critical role across every stage of cement logistics:
• Quarry operations: Equipment operates in highly abrasive environments, requiring strong protection against dust ingress and hydraulic contamination.
• Processing units: Crushers, kilns, and grinding mills depend on clean lubrication and cooling systems to sustain continuous operations.
• Material handling systems: Pneumatic and mechanical systems rely on clean air and fluid systems for efficiency and reliability.
• Transportation networks: Bulk carriers and trucks must maintain engine health and fuel efficiency to ensure timely deliveries.
Across these operations, filtration plays a vital role; as it supports consistent equipment performance while reducing the risk of unexpected failures.
Effective filtration solutions can reduce unscheduled equipment failures by 30 to 50 per cent across heavy-duty operations.

Uptime as a strategic imperative
In cement manufacturing, uptime is currency. Downtime not only delays the production, but it also greatly impacts the supply commitments and logistics planning. With the right filtration systems, contaminants are kept at bay from entering the
critical systems, and they also significantly extend the service intervals.
Optimised filtration can extend service intervals by 20 to 40 per cent, reducing maintenance frequency while maintaining consistent performance across demanding operating conditions. Filtration systems designed for heavy-duty applications sustain efficiency throughout their lifecycle, ensuring reliable protection with minimal interruptions. This leads to improved equipment availability, lower maintenance costs, and more predictable operations, with well-maintained systems capable of achieving uptime levels of over 90 to 95 per cent in challenging cement environments.

Supporting emission and sustainability goals
With the rising environmental awareness, the cement industry too is aligning with the stricter norms and sustainability targets. In this scenario, the operational efficiency is directly linked to emission control.

Air and fuel systems that are clean enable
much more efficient combustion. They also reduce emissions from both the stationary equipment and transport fleets. Similarly, with a well-maintained fluid cleanliness, emission systems function better. Poor combustion due to contamination can increase emissions by 5 to 10 per cent, making clean systems critical for compliance.
Additionally, efficient and longer lasting filtration systems significantly reduce any waste generation and contribute to increased sustainable maintenance practices. Extended-life filtration solutions can reduce filter disposal and maintenance waste by 15 to 20 per cent. Smart and efficient filtration in this case plays an important role in meeting the both regulatory and environmental objectives within the industry.

Advancements in filtration technology
Over the years, there has been a significant evolution in the filtration technology to meet the modern industrial applications.
Key developments include:
• High-efficiency filtration media capable of capturing very fine particles without restricting flow
• Compact and integrated designs that combine multiple filtration functions
• Extended service life solutions that reduce replacement frequency and maintenance downtime
• Application-specific engineering tailored to different stages of cement operations
Modern multi-layer filtration media can improve dust-holding capacity by up to two to three times compared to conventional systems, while maintaining consistent performance. These advancements have transformed filtration from a basic maintenance component into a critical performance system.

Adapting to diverse operating conditions
The cement industry of India operates across diverse geographies. Spanning across regions with arid regions with higher dust levels, to the coastal areas with higher humidity, challenges of each region pose different threats to the engines. Modern filtration systems are thus tailored to address these unique challenges of each region.
Indian operating environments often range from 0°C to over 50°C, with some of the highest dust loads globally in mining zones.
Additionally, filtration technology can also be customised to variations which then align the system design with factors like dust load, temperature, and equipment usage patterns. Equipment utilisation levels in India are typically higher than global averages, making robust filtration even more critical. This approach ensures optimal performance and durability across different operational contexts.

Impact on total cost of ownership
Filtration has a direct and measurable impact on the total cost of ownership of equipment.
Effective filtration leads to:
• Lower wear and tear on critical components
• Reduced maintenance and repair costs
• Improved fuel efficiency
• Extended equipment life
• Higher operational uptime
Effective filtration can extend engine life by 20 to 30 per cent and reduce overall maintenance costs by 15 to 25 per cent over the equipment lifecycle. These benefits collectively enhance productivity and reduce lifecycle costs. Conversely, inadequate filtration can result in frequent breakdowns, increased maintenance expenditure, and reduced asset utilisation.

Building a more efficient cement ecosystem
With the rising demand across various sectors, the cement industry is expected to expand at an unprecedented rate. This growth is forcing the production to move towards a more efficient and resilient system of operations. This requires attention not only to production technologies but also to the supporting systems that enable consistent performance. Filtration must be viewed as a strategic investment rather than a routine consumable. By ensuring the cleanliness of air and fluids across systems, it supports reliability, efficiency, and sustainability.

The road ahead
The future of cement logistics will be shaped by increasing mechanisation, digital monitoring, and stricter environmental standards. The industry is also witnessing a shift towards predictive maintenance and condition monitoring, where filtration performance is increasingly integrated with real-time equipment diagnostics.
In this evolving landscape, the role of filtration will become even more critical. As equipment becomes more advanced and operating conditions more demanding, the need for precise contamination control will continue to grow. From quarry to construction site, filtration technology underpins the performance of every critical system. It enables equipment to operate efficiently, reduces operational risks, and supports the industry’s broader goals of growth and sustainability. In many ways, it is the unseen force that keeps the cement ecosystem moving, quietly ensuring that every link in the value chain performs as expected.

About the author
Niranjan Kirloskar, Managing Director, Fleetguard Filters, is focused on driving innovation, operational excellence, and long-term business growth through strategic and people-centric leadership. With a strong foundation in ethics and forward-thinking decision-making, he champions a culture of collaboration, accountability, and technological advancement.

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