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The cement industry must lead the sustainable journey

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Umashankar Choudhary, Unit Head, JK Cement throws light on the alternative fuels and raw materials that can be used in the production of cement which can lead to a significant reduction in energy and fuel consumption and also meet the organisation’s goals of achieving a lesser carbon footprint in the environment.

What are the raw materials and fuels currently used by your organisation in the cement manufacturing process?
In the process of cement manufacturing, the major constituent is clicker which we produce in our plants. Major raw materials for this clinker production are limestone which contributes to 97 to 98 per cent and the rest are additives. Mainly we use the DCP dust which is added around 2 per cent. This is also an alternative raw material because we are focusing on alternative raw material as well as alternative fuels for the clinker manufacturing.
In cement, we add additives like on gas, slag, and gypsum. Gypsum is of two types, namely, chemical and mineral. We use both chemical and mineral gypsum as per their availability and cost economy. As we speak about fuels, the major fuel is coal. However, now we want to maximise the use of alternative fuels, so we have started using RDF, MSW, hazardous industrial waste in the form of RDF which constitutes to about 70 to 80 per cent of the alternative fuel mix.

Please tell us more about the constitution of these alternative fuels and why they are chosen as alternative fuels.
Alternative fuels are chosen because they are available in abundance. Our plant is located in Karnataka and Goa is also nearby. We collect MSW, mainly the plastic waste and RDF in collaboration with the municipalities of the nearby areas. Goa is a hub of industries. We take all types of pharmaceutical wastes, bio medical waste from Karnataka, Goa and overall, a vicinity of 200 kilometers from our plant. Our contribution is about 77 to 80 per cent of plastic waste, consisting of mainly RDF and MSW. And rest of the waste is industrial waste which we get from various industries.

Except for limestone, which other raw materials can be used for clinker production?
As I mentioned earlier that we have to move towards maximising the use of alternative raw materials, lime mud that comes from the paper industry becomes and alternative raw material for us. It works well in place of limestone because of its higher lime content. Sometimes we even get about 45 to 55 per cent lime also. And at the same time, we have to promote low grade limestone with which we create a lighter clinker.
This low energy clinker hires 35 per cent lesser heat consumption than the conventional clinker production. It also contributes to huge reduction of carbon dioxide emission in terms of calcination and fuel reduction. This energy limestone in which MGO content is 13 to 15 per cent is being used as mineralizer. This material cannot be used in conventional cement manufacturing process. This high MGO limestone reduces the fuel consumption also.

What steps is your organisation taking to reduce the carbon footprint created by it?
The Confederation of Indian Industry (CII) is taking a good initiative for green gold ratings. Our Muddapur, Karnataka plant has received the Green Gold rating from CII in 2020. In this rating all sustainability goals are being included under various articles.
The major activities done to reduce the carbon footprint are energy efficiency, water conservation, renewable energy use, green house gases emission reduction, waste management, material conservation, recycling of materials, green supply chain, green ecology and infrastructure too.
For promoting of these activities, we are focusing our efforts on how to increase the production of blended cement up to 60 to 65 per cent of our total cement production. We are increasing additives up to the maximum permitted limits in blended cement like PPC. We are working on how to maximise the flag edition.
We have developed a new type of premium blended cement in place of Ordinary Portland cement (OPC) because we want to maximally promote the blended cements. This premium brand shall replace the OPC cement as it will be increasing the use of alternative fuels up to 30 per cent as compared to the current operation in the kiln which is 20 per cent alternative fuels. With this we have a clear roadmap of achieving 30 per cent GSR in the near future. Alongside a waste recovery system is also under progress.
We are targeting our energy roadmap to reach 55 unit per tonne of cement, an activity under progress, which is the national benchmark. We are adopting a shortest route for internal as well as external transport to minimise the greenhouse gas emissions.
Our organisation is focusing on all these activities to reduce the carbon footprint from the environment.

Tell us more about the role of technology and automation in the reduction of
carbon emission.

As I have mentioned that we are achieving a 20 per cent GSR. Furthermore, the cement plant is not able to cope up because the chloride per centage is more. What we shall now do is to utilise a chlorine bypass system that will help to further increase the GSR and take it up to 50 per cent GSR.
Once this is established, we are also proposing the installation of standard combustion system also to increase the utilization of alternative fuels, wastage recovery system, solar power plants and windmills as alternative sources of electronic energy. Also proposed is a system where we can produce low energy clinker and work with clay calcination
which can serve as an alternative to conventional clinker. We are now working on LC3 cement, which is a global standard technological innovation in the cement industry.

What happens to the waste generated by the cement manufacturing process in your organisation?
Generally, in cement industry there is no waste. However, some cement manufacturing processes have zero discharge, therefore there is no wastage. Agro waste and inhouse wastes are also processed in our pyroprocessing systems.
Our plants also use fly ash in the cement manufacturing process to make PPC as well as premium grade PPC cement also. There are some wastes produced such as electronic waste or medical waste which are further given to authorised recyclers to scrap properly.

Tell us more about the steps taken towards contributing towards the circular economy by your organisation?
The concept of circular economy has been applied in the cement industry for decades. Utilising byproducts of other industries and other secondary materials, we are a playing major role of ulitising more than 40 types of waste from various industries and we are using them as alternative fuels and raw materials in the cement manufacturing process.
A cement plant can be considered synonymous to Lord Shiva. It has the capability to inhale and hold waste of all types and can be use that with certain changes in our raw mix and cool mix. We have started using alternative fuels and raw materials in our cement plants since 2016. Now we are co-processing more than 1.25 lakh tonnes per year of alternative fuels. Last year we co-processed over 75 thousand tonnes and this year we have achieved 1.3 to 1.4 lakh tonnes of alternative fuels. Co-processing reduces the consumption of carbon intensive fuels as well as contributes towards the circular economy that can be used waste materials which would otherwise end up in landfills.
Supplementary cement materials such as fly ash from coal fired powered station, blast furnace slag and waste from the steel industry we are using as raw materials in the clinker manufacturing process.

What are the technological innovations or alternatives the organisation could opt for in future to ensure environment sustainability?
Our organisation is already in the process of working on the chlorine bypass system and combustion system. Other than this we have also aligned our business model with the UN 2030 agenda for sustainable development. We have committed a Science Based Target Initiative (SBTI) for business ambition to a well below 2 degree Celsius. Our company has also joined UN CC 2050 race to zero campaign under BCCA to achieve net zero emission for cement
and concrete.
Our target is to reduce specific thermal energy which is 704 by 2030. Specific power consumption that is around 65 by 2030. We have to increase our WHR capacity for efficiency improvement to 45 kilowatts per hour per tonne of clinker. To have to also increase green power mix use up to 75 per cent by 2030.
We are working on a road to green transportation. This is a transition to a greater use of electrical energy and renewable resources. Our target is to achieve a clinker ratio of 65 per cent by 2030. We are also working on increasing blended cement and how to minimise the use of exhaustible resources and move towards alternative resources.

By when is your organisation expected to achieve Net Zero and how much carbon emission has been reduced by 2021?
Our company has aligned itself to the UN mission of achieving Net Zero. We have been continuously working towards achieving that goal and our target is to achieve 80 per cent of that by 2030. As mentioned earlier, we have targeted to achieve thermal energy consumption of 704 for the whole organisation and not an individual plant.
For individual plants, like this, Muddapur plant, we are running on with a 685 specific heat and the total power is 62 to 65. In the totality of the whole organisation, we have taken up the target of 2030 and will achieve the same. Net zero achievement shall be around 2050.
What I would also like to add on here is that the cement industry in the future is only going to survive on alternative fuels and raw materials. We have to source, utilise and promote the use of alternatives as in India, the average thermal rate is only 4 to 5 per cent. We have to identify the plants where it is only 2 to 3 per cent and start from there and take it up to 20 to 30 per cent. The Indian average should be 20 per cent to achieve a sustainable environment. Plants that are using alternative fuels and alternative raw materials have to work hard to achieve this thermal substitution rate.
These are natural resources, and the reserves will deplete after some years. We have to consciously think about the next generation and make an effort. Cement industry has to take a lead to towards a sustainable journey. They must move forward and take certifications on a global scale for greener methods and processes too.

Kanika Mathur

Concrete

Cement Makers’ Margins To Fall Rs 50-75 Per Tonne Amid West Asia Conflict

Crisil Sees Margins Easing Despite Steady Demand

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Crisil said operating margins of Indian cement manufacturers are expected to decline by Rs 50-75 per tonne (t) this fiscal to Rs 925-950 per t due to higher input costs triggered by the West Asia conflict. The analysis covered 18 cement companies accounting for nearly 90 per cent of India’s domestic cement capacity and noted margins had improved sharply to around Rs 1,000 per t in fiscal 2026.

Crisil noted that the reduction would be driven mainly by higher power and fuel costs, which account for about 30 per cent of total costs, as petcoke and imported coal prices have surged amid geopolitical uncertainties. Freight costs, which account for about a quarter of total costs, are also expected to remain elevated because of higher diesel prices. The impact on profitability is likely to be more pronounced in the first half of the fiscal year before easing commodity prices moderate cost pressures later.

The rating agency said steady domestic demand and strong balance sheets should keep credit profiles stable despite the moderation in margins. Green energy currently accounts for 35-40 per cent of the sector’s total electricity consumption and is expected to partly cushion higher energy costs. Operating cash flows are likely to remain resilient, supported by projected 6-7 per cent growth in cement demand this fiscal.

Crisil highlighted that demand growth will be driven primarily by infrastructure spending, which meets about one-third of sector consumption, and by a nearly 18 per cent higher budgetary allocation for core ministries that should support project execution. Weaker rural housing demand amid pressure on agricultural incomes from a possible below-average monsoon may be offset by improved urban housing demand supported by favourable home-loan rates and a strong pipeline of Pradhan Mantri Awas Yojana-Urban projects. Ongoing capacity additions will keep capital expenditure elevated and may lift net debt to EBITDA to between 1.2 and 1.4 times from around 1.0 time last fiscal, though ratios are expected to remain healthy.

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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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