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Taking The Alternative Route

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The cement industry can be leaders of change by taking the route of sustainability, using alternatives to conventional methods that shall positively impact the demand and meet goals set by global bodies. Kanika Mathur takes a deep dive into the various alternative fuels and raw materials the cement industry can depend upon to build a better and stronger future.

The world is going through a crisis. Natural resources are depleting, greenhouse gases are being emitted and pollution is on the rise. According to Fortune Business Insights, the global cement market is projected to grow from $326.80 billion in 2021 to $458.64 billion in 2028 at a CAGR of 5.1 per cent during the 2021-2028 period. The sudden rise is attributed to this market’s demand and growth, returning to the pre-pandemic levels once the pandemic is over.
In 2021, India also has chalked plans for infrastructural development like the ‘PM Gati Shakti – National Master Plan (NMP)’ for multimodal connectivity and is aiming for 100 smart cities. The Government also intends to expand the capacity of railways and the facilities for handling and storage to ease the transportation of cement and reduce transportation cost. These measures would lead to an increased construction activity, thereby boosting cement demand. The Union Budget allocated Rs. 13,750 crore (US$ 1.88 billion) and Rs. 12,294 crore (US$ 1.68 billion) for Urban Rejuvenation Mission: AMRUT and Smart Cities Mission and Swachh Bharat Mission, respectively and Rs. 27,500 crore (US$ 3.77 billion) has been allotted under Pradhan Mantri Awas Yojana, as published in the Indian Brand Equity Foundation Report for Indian Cement Industry Analysis 2021.
With the progressing economy and surging demand for cement and concrete, there is growth in infrastructure, but resources are getting exhausted by the day and the environment is facing that impact. It is imperative that an industry of this magnitude take steps by looking for alternative raw materials and fuels to meet the rising demand as well as protect natural reserves and nature on a whole.

Cement manufacturing process and conventional fuels and raw materials
All over the world, cement is one of the most important building materials. The process starts with extracting raw materials, crushing and transporting them to the manufacturing facility. The most important raw materials for making cement are limestone, clay and marl. These are extracted from quarries by blasting or by ripping using heavy machinery. Wheel loaders and dumper trucks transport the raw materials to the crushing installations. There the rock is broken down to roughly the size used in road metaling. It is then blended and homogenised, dried, and grinded.
The prepared raw material is then burned at approx. 1,450°C in a kiln. In this process, a chemical conversion takes place where carbon dioxide is emitted, and the product is the clinker.
Once the burnt clinker is cooled down, it is stored in clinker silos. From there the clinker is conveyed to ball mills or roller presses, in which it is ground down to very fine cement, with the addition of gypsum and anhydrite, as well as other additives, depending on the use to which the cement is to be put. The finished cement is stored in separate silos, depending on type and strength class.
The fuel used to heat the kiln is mainly coal which is a naturally occurring resource that is getting extinct by the day and also emits carbon. Similarly, limestone in the chemical process produces a large amount of carbon dioxide. This leads to the need of alternative raw materials and fuels in the cement manufacturing process.

Switching to alternative fuels and raw materials
Fuel is majorly required to heat the kiln. The products that would otherwise unrecyclable and may end up in landfills can serve as the perfect fuel for burning in the kilns. This would also mean disposing off the waste that may have polluted the land or sea.
By their nature, these fuels can be variable in quality, behaviour, moisture content and calorific value and will be difficult to convey, store, discharge and accurately dose into the fuel stream. Alternative fuels can help to reduce CO2 emissions.
Some of the widely used fuels that the industry is switching over to are: Refuse Derived Fuel (RDF), Solid Recovered Fuels (SRF), Wood, Waste Wood, Agricultural Waste, Tyre Derived Fuel, Meat and Bone Meal (MBM), Sewage Sludge Profuel, Chemical Residues, Oil Seeds, Municipal Solid Waste (MSW) and Sludge.
Leading cement manufacturing organisations have aligned themselves with the mission of the United Nations to achieve Net Zero Environment by 2050 and are on a pathway of creating greener solutions by switching to these fuels.
Saurabh Palsania, Executive Director, Dalmia Cement says “Cement industry has been using waste since its inception, be it fly ash or slag as an alternative fuel. Use of MSW in the cement industry is as good as fuel, but it comes with its own set of challenges. There are approximately 2000 sump sites and as per records there are about 1855 lakh tonnes of waste lying across India. The kilns in the cement industry that run at over 1300 degree Celsius can easily consume the waste and prevent it from ending up in landfills”.
“The industry has tie ups across multiple municipal corporations. We must improve our equipment and better utilise this available resource that can substitute carbon intensive fuels. We must also make this sector an organised sector for seamless operations” he adds.
Limestone makes up for 95 per cent of the raw material used in cement production. According to some estimates as mentioned by the Cement Manufacturers Association, around 180-250 kg of coal and about 1.5 tonne of limestone is required to produce a tonne of cement. Cement manufacturing also consumes minerals such as gypsum, Quartz, bauxite, coal, kaolin (china clay) and iron ore too in varying amounts.
Limestone is a naturally occurring mineral. Large amounts of limestone are calcified in cement manufacturing units to produce cement which leads to rapid depletion of this resource. It also emits a large amount of carbon dioxide in the process.
Cement industry has taken this into consideration and are moving towards materials like clay, chalk etc. to produce clinker that is less energy intensive and has reduced emission of carbon dioxide. These steps are important to ensure that the resource is conserved in nature and does not harm the environment as the chemical process cannot be changed. Organisations are constantly looking for innovations in the field of raw material and have employed experts in the field of alternative fuels and raw materials to come up with more sustainable solutions for this process.

Waste as an alternative to fuel and raw materials in the cement industry
Various types of cement have been introduced in the recent past by cement technologists the world over. Most of these cements have been developed by the addition of alternative waste (also known as SCM, supplementary cementitious materials) produced by other industries. Fly ash and various slags produced by metal industries are the two of the most significant components added as raw materials to the clinker production in cement kilns. Additionally, limestone is also used as a component of cement.
These additives are independently added as well as in combination in permissible percentages in the cement mixture along with clinker. Fly ash and GGBS slag are added in cement grinding to produce PPC and PSC cement. This combination of clinker, fly ash, and slag along with gypsum is used in cement grinding. The combinations of these three raw materials are based on the physical and chemical characteristics of the waste materials.
Similarly, organisations are working on supporting the circular economy concept and are collaborating with other organisations to collect various types of waste like plastic waste, agricultural waste, pharmaceutical waste etc. to use in the kilns and produce the required heat while substituting the role of coal in this process. This creates a huge impact on the environment in a positive manner as waste from the other industries does not pollute the land or water bodies and reduces the consumption of coal in cement making process.
According to Manoj Rustogi, Head – Sustainability, JSW Cement, “Wastage recovery is a very valid process in the alternative fuel and raw material context. As a policy intervention, recognising wastage recovery as a renewable power because there is no additional material used. It is the waste coming out from the cement making process that is used and tapped for electricity and power generation. 70 per cent of power requirement for clinker production can come from wastage recovery”.
“Another source of energy organisations must tap is solar energy. Combining the energy from waste recovery and solar power can take care of energy requirements of certain types of cements. A push from the government is required to adapt to this form of energy and it will surely take away a major chunk of carbon emission that we are currently dealing with” he adds.

Other efforts towards creating a sustainable environment
Leaders in cement manufacturing, organisations are taking the greener routes to keep the environment condition in check. From waste management facilities to rainwater harvesting and use of alternative fuels and raw materials, a lot of effort is being taken to develop a green economy.
Predicting the future of cement production, fuels and raw materials, SK Rathore, President, JK Cement says, “The world is now looking towards hydrogen as a green fuel. It is depending on how hydrogen is produced that makes it green and it is an expensive process. Another method of making cement greener and reducing the emission of carbon in the cement manufacturing process is the reduction of losses during clinker production with technological innovation”. He believes that development in these areas will be key in the near future and the cement industry will be quick to adapt to them for a better tomorrow and cleaner environment.
Pledging towards a net zero environment and building a better environment for the country is the goal of the cement industry in the decades to come. For this they are taking all efforts to look for alternative sources of energy as well as raw materials that does not compromise with the quality of the end product but also improves the operation process and gives least harm to the environment. Technical innovations and research in the area is sure to come up with solutions that will let the industry achieve their goals in the race to 2050.

Kanika Mathur

Concrete

UltraTech Board Approves Rs 50 bn Fundraise Via NCDs

Company to issue half a million debentures for expansion plan

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UltraTech Cement’s board of directors has approved raising Rs 5,000 crore (Rs 50 bn) through non?convertible debentures issued in rupees.

The finance committee cleared a proposal to issue up to 500,000 fully paid, unsecured, listed, rated, redeemable, rupee?denominated, non?convertible, non?cumulative debentures of Rs 1 lakh each (Rs 0.1 mn each), aggregating to the Rs 5,000 crore programme.

As of June 2026 the firm reported net debt of Rs 15,875 crore (Rs 158.75 bn) and said its capacity expansion projects under execution are backed by capital expenditure of about Rs 17,000 crore (Rs 170 bn) over the next two to two?and?a?half years.

UltraTech spent Rs 9,500 crore (Rs 95 bn) on capital expenditure in financial year 2026 and in April the group crossed 200.1 mn tonnes per annum of domestic grey cement capacity and 205.5 mn tonnes per annum of global capacity.

The chief financial officer indicated the company would take consolidated capacity beyond 242 mn tonnes per annum, with grey cement capacity reaching 212.7 mn tonnes per annum by the end of financial year 2027. He noted the net debt?to?earnings before interest, taxes, depreciation and amortisation ratio stood at 0.87 times as of June 2026 and the company was confident of ending financial year 2027 with the ratio below one time.

In the first quarter of financial year 2026?27 UltraTech’s net profit attributable to owners rose 16.8 per cent year?on?year to Rs 2,599.3 crore (Rs 25.993 bn) and revenue from operations increased 15.9 per cent to Rs 24,648.20 crore (Rs 246.482 bn). The board approval is expected to complement internal cash flows as the company advances its expansion programme.

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Concrete

Lokesh Lays Stone For Rs 31 Billion Cement Unit In Kadapa

Line-2 expansion to make Kadapa a major cement hub

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Andhra Pradesh Education and IT Minister Nara Lokesh on Wednesday laid the foundation stone for the Line-2 expansion of Dalmia Bharat Cement at Chinnakomerla village in Mylavaram Mandal in Kadapa district. The project carries an investment of Rs 31 billion (bn) and is slated for completion by the third quarter of the financial year 2028. The expansion is intended to boost industrial growth and employment generation across the Rayalaseema region.

Once commissioned, the Kadapa facility will become Dalmia Bharat’s largest integrated cement manufacturing ecosystem in southern India, creating over 1,000 direct and indirect jobs and opening new business avenues for regional micro, small and medium enterprises and transport operators. Lokesh said the expansion signalled growing corporate confidence in the state and reflected the practical ease of doing business that secured repeat investment.

He placed the project within the government’s wider economic targets and recalled the Yuvagalam padayatra commitment to generate two million (mn) jobs within five years, noting that the state would cultivate talent while industry created opportunities. Lokesh highlighted Andhra Pradesh’s competitive pursuit of major manufacturing accounts, mentioning past successes and a personal initiative to engage global investors when persuading them to anchor expansion in the state.

The plant will leverage Kadapa’s abundant limestone reserves to scale production and sustainability. Clinker capacity is planned to rise from two point five million tonnes per annum (mn tpa) to six point one mn tpa, while overall cement output will increase from three point six mn tpa to nine point six mn tpa. The unit is designed to operate on over eighty per cent renewable energy and deploy waste heat recovery, zero liquid discharge, water recycling and advanced AI systems to optimise efficiency. Industries Minister TG Bharat, BC Welfare Minister S. Savitha and Jammalamadugu MLA C. Adinarayana Reddy attended the ceremony.

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Concrete

Cement Prices to Stay Flat in Q2 FY27 as Costs Squeeze Margins

HDFC Securities warns monsoon slowdown and higher fuel costs

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HDFC Securities has said the cement industry is unlikely to register a sequential increase in prices in Q2 FY27 as monsoon-related demand moderation coincides with rising fuel and packaging costs that will squeeze margins. The brokerage observed that price gains remained modest, with increases of two to three per cent quarter-on-quarter across regions, and noted subdued offtake in May with improvement in June as a delayed monsoon supported construction activity. The brokerage added that modest pricing gains so far have been insufficient to offset the input cost escalation.

The report stated that input cost pressures intensified in Q1 FY27 owing to the West Asia conflict, which pushed up coal and pet coke prices and is expected to keep fuel costs elevated, with a likely peak in Q2 FY27. It assessed that total variable costs, including packing, could rise by around Rs 150 per t quarter-on-quarter and that lower offtake and seasonal operating deleverage could further raise operating expenditure by about Rs 50 per t quarter-on-quarter.

Overall, cement prices were estimated to remain flat in Q2 FY27 as monsoon-led demand weakness offsets limited upside in realisation, and rising fuel costs alongside seasonal deleverage were expected to compress industry margins by over Rs 100 per t quarter-on-quarter to below Rs 880 per t. The brokerage indicated that the combined impact of energy inflation and higher packing expenditure would be the principal drivers of margin contraction in the near term. HDFC Securities projected a recovery in margins in H2 FY27 should the West Asia turmoil subside and energy and packing costs cool off.

The brokerage expressed optimism on long-term demand fundamentals and said improving realisation together with an anticipated cost cool-off should support a margin rebound from H2 FY27 onward, underpinning favourable industry prospects over the medium term. Its outlook rests on monsoon normalisation and a decline in imported fuel prices in the second half of the fiscal year.

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