Concrete

Battling costs

Published

4 years ago

March 1, 2022

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Oil is within kissing distance of $120 per barrel as the Russia-Ukraine conflict continues in intensity. Government budgets are disrupted and inflation is knocking on all doors. Despite international economic gyrations, the Indian cement industry’s crusade towards net zero continues at an unabated pace.
Individual players have taken a keen interest and assumed the onus of responsibility of utilising alternative fuel and raw materials as well as greener energy sources. In a promising move, the Government of India has launched the Green Hydrogen policy, which will definitely add to the country’s efforts for net zero carbon emissions by 2070, as it will impact high-on-carbon-emission industries such as the cement sector. The policy entails:
• Waiver of interstate transmission system (ISTS) charges for 25 years for projects commissioned before June 30, 2025.
• Access to renewable energy through State utilities with 30 days of banking facility.
• Priority access to connectivity with the ISTS network.
• Multiple modes for procuring RE for green hydrogen production.

The Hydrogen Policy should make it possible for companies like Reliance Industries to produce blue hydrogen at a ‘competitive cost’ of about $1.2 – $1.5 per kg as it repurposes its $4 billion gasification assets. Reliance will re-purpose a Rs 300 billion plant that currently converts petroleum coke into synthesis gas to produce blue hydrogen for $1.2 – $1.5 per kilo. Hydrogen is labelled blue whenever the carbon generated from steam reforming is captured and stored. Blue hydrogen is, therefore, sometimes referred to as carbon neutral as the emissions are not dispersed in the atmosphere.
Green hydrogen – also referred to as ‘clean hydrogen’ – is produced by using clean energy from renewable energy sources, such as solar or wind power, to split water into two hydrogen atoms and one oxygen atom through a process called electrolysis.
Reliance, which has set a net-zero carbon emission target for its businesses by 2035, is looking at blue hydrogen in the interim period to reduce the cost of green hydrogen. Fossil-based hydrogen costs about $1.80, and the cost of blue hydrogen is estimated at about $2.40 – $3 per kg.
Every discussion on green cement includes how to make optimum use of slag. There has been notable development on that front with the processing of slag to create Ground Granulated Blast Furnace Slag (GGBS).The EDP data sets the global warming potential of GGBS at 60.21 kg CO2 equivalent, which is among the lowest in the industry. In an encouraging development, Tata Steel BSL has exported 9000 tonne of LD slag through the Dhamra Port Company to Bangladesh from its Odisha unit. The company has been involved in sustainable operations for its by-products, including 100 per cent recycling of fly ash, LD slag and blast furnace slag.
Cement has been in the news due to a 3-5 per cent month-on-month price increase in January across India, especially in the southern and eastern parts. Weak demand in the concluding months of 2021 made way for a spurt in demand and prices in January and February. The price jump is also attributed to the recent Russia-Ukraine crisis as it has led to a hike in energy, fuel and logistics costs. Road infrastructure, which has slowed down in current fiscal, is set for an acceleration with a target of 25,000 km next fiscal, and so is housing, as the Government has reiterated its commitment towards Housing for All by allocating `480 billion towards PM Awas Yojana. The challenge is the rising input costs of pet coke and coal amid oil price and logistics disruption. There is no room for cost inefficiency. The battle between growth in revenue and cost will sharpen in days to come.

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Nuvoco Vistas Reports Record Q2 EBITDA, Expands Capacity to 35 MTPA

Cement Major Nuvoco Posts Rs 3.71 bn EBITDA in Q2 FY26

Published

2 weeks ago

October 22, 2025

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Nuvoco Vistas Corp. Ltd., one of India’s leading building materials companies, has reported its highest-ever second-quarter consolidated EBITDA of Rs 3.71 billion for Q2 FY26, reflecting an 8% year-on-year revenue growth to Rs 24.58 billion. Cement sales volume stood at 4.3 MMT during the quarter, driven by robust demand and a rising share of premium products, which reached an all-time high of 44%.

The company continued its deleveraging journey, reducing like-to-like net debt by Rs 10.09 billion year-on-year to Rs 34.92 billion. Commenting on the performance, Jayakumar Krishnaswamy, Managing Director, said, “Despite macro headwinds, disciplined execution and focus on premiumisation helped us achieve record performance. We remain confident in our structural growth trajectory.”

Nuvoco’s capacity expansion plans remain on track, with refurbishment of the Vadraj Cement facility progressing towards operationalisation by Q3 FY27. In addition, the company’s 4 MTPA phased expansion in eastern India, expected between December 2025 and March 2027, will raise its total cement capacity to 35 MTPA by FY27.

Reinforcing its sustainability credentials, Nuvoco continues to lead the sector with one of the lowest carbon emission intensities at 453.8 kg CO? per tonne of cementitious material.

Concrete

Jindal Stainless to Invest $150 Mn in Odisha Metal Recovery Plant

New Jajpur facility to double metal recovery capacity and cut emissions

Published

2 weeks ago

October 17, 2025

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Jindal Stainless Limited has announced an investment of $150 million to build and operate a new wet milling plant in Jajpur, Odisha, aimed at doubling its capacity to recover metal from industrial waste. The project is being developed in partnership with Harsco Environmental under a 15-year agreement.

The facility will enable the recovery of valuable metals from slag and other waste materials, significantly improving resource efficiency and reducing environmental impact. The initiative aligns with Jindal Stainless’s sustainability roadmap, which focuses on circular economy practices and low-carbon operations.

In financial year 2025, the company reduced its carbon footprint by about 14 per cent through key decarbonisation initiatives, including commissioning India’s first green hydrogen plant for stainless steel production and setting up the country’s largest captive solar energy plant within a single industrial campus in Odisha.

Shares of Jindal Stainless rose 1.8 per cent to Rs 789.4 per share following the announcement, extending a 5 per cent gain over the past month.

Concrete

Vedanta gets CCI Approval for Rs 17,000 MnJaiprakash buyout

Acquisition marks Vedanta’s expansion into cement, real estate, and infra

Published

2 weeks ago

October 17, 2025

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Vedanta Limited has received approval from the Competition Commission of India (CCI) to acquire Jaiprakash Associates Limited (JAL) for approximately Rs 17,000 million under the Insolvency and Bankruptcy Code (IBC) process. The move marks Vedanta’s strategic expansion beyond its core mining and metals portfolio into cement, real estate, and infrastructure sectors.

Once the flagship of the Jaypee Group, JAL has faced severe financial distress with creditors’ claims exceeding Rs 59,000 million. Vedanta emerged as the preferred bidder in a competitive auction, outbidding the Adani Group with an overall offer of Rs 17,000 million, equivalent to Rs 12,505 million in net present value terms. The payment structure involves an upfront settlement of around Rs 3,800 million, followed by annual instalments of Rs 2,500–3,000 million over five years.

The National Asset Reconstruction Company Limited (NARCL), which acquired the group’s stressed loans from a State Bank of India-led consortium, now leads the creditor committee. Lenders are expected to take a haircut of around 71 per cent based on Vedanta’s offer. Despite approvals for other bidders, Vedanta’s proposal stood out as the most viable resolution plan, paving the way for the company’s diversification into new business verticals.