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Technology advancement has opened up opportunities

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Gulshan Bajaj, Vice President (Technical), HeidelbergCement India, takes us through the various processes that his company has effectively put in place to use alternative raw materials while maintaining clinker and cement quality.

What are the core raw materials used in the production of cement?
Major component of cement is clinker, which is blended with materials like fly ash, slag and added with gypsum to produce various types of cements like Portland Pozzolana Cement (PPC), Portland Slag Cement (PSC) and composite cement.
Cement clinker, which is a burn out product from kiln resulting from fusion of raw meal, consists of calcium silicates and smaller amounts of calcium aluminates and alumina ferrites. The requirement of calcium is met by limestone in India.
Calcareous clay, calcareous shale, marble and Marl are other materials, which are rich in calcium. Looking at the composition of raw meal, corrective materials like bauxite, aluminous laterite, red mud, iron ore, quartzite, shale, sand etc are added in small quantities to maintain the desired clinker quality.

What are the alternative raw materials (ARM) that can be used in the production of cement? How does that impact the process of production?
Alternative raw materials come from rejects or byproducts of some industrial sectors which can be directly or after an intermediate treatment (preprocessing) can be co-processed in a cement plant. A non-exhaustive list of examples is:

  • Foundry sands
  • Alumina
  • Mill scales
  • Bottom or fly ashes from coal/lignite combustion
  • Industrial gypsum
  • Slags from different metallurgic processes
  • Industrial sludge
  • Polluted soils

Concrete crusher sand aerated concrete meal and fractions from demolition waste
These materials have already been decarbonated and could be used as an alternative to ‘virgin’ limestone thus avoiding CO2 emissions during its transformation to lime in the production process.
Each material has its own composition and behaves differently during the burning process. In order to maintain the consistent clinker quality and stable clinkerisation process, we need to analyse these materials with respect to quality (during raw mix design) and also impact on the environment (if any harmful gases are released).
There are certain materials, which come in both ARM and cement additives like ashes from coal fired thermal plants and slag from steel plants that have to be looked at from various angles.

Can cement maintain its quality standard with inclusion of supplementary raw materials as against limestone?
Yes, we can maintain clinker and cement quality with use of supplementary raw materials in controlled proportions.
In India, HeidelbergCement (HC) is using red mud as a corrective material to replace costly bauxite. Trials are going on and preliminary results are encouraging. HC at Group level is using ARMs that have been giving stable results with respect to quality.

Explain the impact on carbon emission of the production unit when alternative raw materials are used in various proportions.
When we use alternative raw materials, we directly reduce the CO2 emission at the clinker stage by replacing limestone with the material that has already been decarbonated thus compensating CO2 generated from limestone or correctives being replaced in raw mix.
Also, use of blending materials like fly ash and slag at the time of clinker grinding, results in producing higher quantities of cement by using lesser volume of clinker or limestone without compromising on the quality of the cement. This blending of alternative raw materials with raw material or clinker is reflected in the lower CO2/tonne of cement produced.

How can the cost of production be reduced by using alternative or supplementary raw materials in cement production?
Cost of production can be reduced in current state only if the desired quality of alternative raw material is available in vicinity and landed cost is less than the material being replaced, be it limestone, bauxite, iron ore etc.
Other support to improve alternative raw material usage and making it cost competitive is either by incentives from the government for reduction in CO2 footprint or by issuing certificates that are tradeable (ESCerts) thus, covering additional costs involved. It is likewise in the past ESCerts trading in electrical energy (BEE) and CDP (formerly Carbon
Disclosure Project).

What are the major challenges in using other cementitious materials?
Availability of the desired quality alternative raw material in the vicinity and its landed cost is the main challenge, which acts as a barrier towards increased use of alternate raw materials and investments involved.
Another challenge is competitive disadvantage to source pre-processed ARMs like China clay, which needs to be calcined before use, that adds-on to the cost. Purchase of pre-calcined clay is much costlier to the material it’s going to substitute.

What role does technology play in deciding which alternative materials can be used and the way they can be incorporated in the production process?
Old plants may pose some difficulty in use of alternative raw materials. For such plants, we can set up facilities that lead to better sampling, monitoring and predictive information for optimising the use of these alternate materials. However, technology advancement has opened up opportunities for testing and analysing the quality of ARMs beforehand.

What are the policy interventions expected from the Government to encourage use of ARM by industry?
Various policies that would be helpful in promoting ARM in India may be:

  • Incentivising the producer for use of ARM as a replacement of natural materials.
  • Implementing a waste policy that recognises and rewards the benefits of co-processing; ensuring no legal implications for use of ARMs.
  • Implementing waste legislation aimed at avoiding landfilling with waste that contains recoverable resources in terms of useful mineral content.
  • Adopting policies that reward the use of local sources and widely available materials.
  • Designing research and development policies aimed at fostering the recovery of minerals from waste for co-processing.
  • Making low cost finances available for adoption of technologies and setting up pre-processing.
  • Ensuring availability of ARM to the industry on a long term basis to justify the investment.

Does your organisation manufacture a variant of cement made from alternative raw materials? Tell us more about its performance and use.
HC India at present is carrying out trials for use of alternative raw materials at the clinker stage which is giving encouraging results. However, at Group level ARM is being used in various plants and is contributing to preserving natural resources.
In central India, we are already producing 100 per cent blended cement by using fly ash at the cement production stage. Once our ARM trials at the clinker stage are established, we foresee further improvement in our CO2 footprints thus contributing towards the greener environment.

How do you foresee the future of cement production?
With India’s per capita cement consumption at just ~260 kg per capita compared to the global average of ~525 kg per capita, there is a significant potential for the growth of the cement sector in India.
The tailwinds of rapid urbanisation, growing middle class and affordable housing, together with the post-pandemic recovery in construction will further demand for cement in India. Government initiatives in the infrastructure sector are expected to drive the growth of the cement sector over the next several decades.
Looking at climatic change and worldwide focus to bring out sustainable products, we foresee that efforts by industries to promote ARM will be picking up pace for a sustainable future .
Increasing use of AFR to substitute traditional fuels used in kilns (coal/ pet coke) is of great importance both for cement producers and for the society. The potential is enormous since the global cement industry produces about ~3.5 billion tons of cement that consume nearly ~350 million tons of coal-equivalent fossil and alternative fuels.
Thus, AFR is another area that industry would be focussing on.
Increased usage of renewable energy: India’s installed renewable energy accounts for a share of ~38 per cent in the overall power mix(source MNRE). Use of renewable energy in place of conventional energy is another area where industry may be heading to make cement more sustainable.
HC India has set up solar power plants in its surplus land and invested through equity in solar parks to source renewable power. We have also been focussing on increasing use of waste hot gases for power generation (WHR). Some of the HC plants HC have been meeting its > 90 per cent power requirement through renewable sources.
Our endeavour has always been ‘to consistently reduce, recycle and renew to make the world a wonderful place to live for generations to come.’

-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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