Concrete

Limiting the damage

Published

3 years ago

July 15, 2022

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World Environment Day on 5th June was ushered in with a greater gusto in India than ever before. In keeping with the theme of this year’s celebration, ‘Only One Earth,’ the Government of India has also taken substantial steps such as banning single use plastic among others.

Considering the urgency with which the cement sector is moving towards decarbonisation, here are some facts that are propelling cement players to take immediate action:

The steel and cement sectors would see a three-to-four-fold increase in demand and a near tripling of sectoral CO2 emissions by 2050, making the industrial sector the single largest source of CO2 emissions in India, as per an estimate by The Energy and Resources Institute (TERI) and World Business Council for Sustainable Development (WBCSD).
More than half of all CO2 emissions since 1751 have been emitted in the last 30 years, says a study by Institute for European Environmental Policy (IEEP).
The 20 big companies that contributed to almost 33 per cent of world-historic emissions are from the energy and cement sectors.
The per capita consumption of cement in India is 195 kg, which is far less than the world average of 500 kg and 1000 kg of China, as per Bureau of Energy Efficiency.

Decarbonisation of the cement industry cannot be achieved without technology. Using state-of-the-art technology, cement companies should aim at…

Making their processes more energy efficient
Using renewable energy sources
Shifting to alternative fuels
Investing in carbon capture and storage
Utilising other industrial waste as raw material
Exploring alternative cementitious materials
Recycling waste and having circular processes

Technology and R&D are the two tools that will enable the cement sector to harness alternative energy such as solar thermal power, make improvements in the usage of biomass and green hydrogen and increase material circularity.
A significant achievement in India has been the substitution of part of the limestone with by-products from other processes in the form of industrial wastes like slag from steel plants and fly ash from thermal power plants. This blending has greatly contributed to helping the Indian cement industry perform better than global players in terms of specific emissions of CO2 per tonne of cement. Slag Cement can substitute 70-80 per cent of OPC in various grades of concrete mixtures, while it can be used 100% in massive mass concrete projects and other industrial structures. Achieving higher thermal efficiencies helps conserve the use of coal. Equally noteworthy has been the gainful utilisation of industrial, municipal and agricultural wastes and biomass to serve as alternative fuels that replace fossil fuels.
We see a lot of constructive initiatives undertaken by the government, too, in this journey towards decarbonisation. For instance, last year, India and the United Kingdom announced the Industrial Deep Decarbonization Initiative (IDDI). It is one of the largest and most diverse coalitions of governments and the private sector to create net-zero carbon industrial products. Over the next three years, the governments will work towards decarbonisation of heavy industries, including, of course, cement. While the sentiment is in the right place here, only time will tell if the efforts match up to the expected outcome.

–Pratap Padode, Founder and Editor-in-chief

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Dalmia Bharat’s Q3 FY25 Net Profit Plunges by 75.19%

The company’s net consolidated total income dropped by 12.17% to Rs 32.18 billion in Q3 FY25.

Published

15 hours ago

January 23, 2025

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Dalmia Bharat, a leading cement manufacturing company, reported a sharp decline of 75.19 per cent in its net consolidated profit for the quarter ending December 31, 2025. The company disclosed in a BSE filing that its profit after tax stood at Rs 660 million in Q3 FY25, compared to Rs 2.66 billion in the same quarter of the previous fiscal year.

The company’s net consolidated total income dropped by 12.17 per cent to Rs 32.18 billion in Q3 FY25, down from Rs 36.64 billion in the corresponding quarter last year.

According to Puneet Dalmia, the managing director and CEO, India experienced a slightly slower start to the year following multiple years of high growth. He assured that the company’s capacity expansion plans were progressing as expected, with a target of reaching 49.5 million tonnes (MnT) by the end of the fiscal year.

Chief Financial Officer Dharmender Tuteja highlighted that cement demand growth in Q3 fell short of earlier expectations. He noted that the company’s volumes declined by 2 per cent year-on-year, while EBITDA fell by 34.5 per cent year-on-year to Rs 5.11 billion, primarily due to continued softness in cement prices. However, he expressed optimism for the coming quarters, citing improving demand and signs of a positive trend in prices.

During the quarter, the company completed debottlenecking projects at its facilities in Rajgangpur, Odisha (0.6 MnT), and Kadapa, Andhra Pradesh (0.3 MnT), increasing its total clinker capacity to 23.5 MnT. Additionally, it commissioned a 4 MW captive solar power plant in Medinipur, West Bengal, and 46 MW renewable energy capacity under Group Captive, bringing its total operational renewable energy capacity to 252 MW.

Concrete

Gadchiroli Added to JSW’s List in Maharashtra’s Steel City Plan

A significant portion of this investment is likely to be concentrated in Nagpur and Gadchiroli.

Published

1 day ago

January 22, 2025

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On the first day of the World Economic Forum (WEF) at Davos, the state government signed memorandums of understanding (MoUs) worth over Rs 3.35 trillion for industrial investments in Vidarbha. By 8:30 pm (Indian time), the largest deal was secured with JSW Group, involving investment proposals worth Rs 3 trillion, which are expected to create 10,000 jobs. A significant portion of this investment is likely to be concentrated in Nagpur and Gadchiroli.

The Pune-based Kalyani Group, with interests in the defence and steel sectors, also signed an MoU for an investment proposal in Gadchiroli. According to a source from the state’s industries department, there is a possibility that the company will establish a defence production unit there.

Concrete

Q3 Preview: UltraTech Cement Set for 26% Drop in PAT

The company’s profit after tax is estimated at Rs 13.04 billion for the third quarter of FY25.

Published

1 day ago

January 22, 2025

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UltraTech Cement is expected to report a 26 per cent decline in net profit year-on-year (Y-o-Y) for the quarter ending December 31, primarily due to lower realisations and higher depreciation, according to analysts. The company’s profit after tax is estimated at Rs 13.04 billion for the third quarter of FY25.

A survey conducted among five brokerages revealed that UltraTech Cement is projected to achieve a revenue of Rs 166.96 billion, reflecting a 1.2 per cent increase Y-o-Y.

Among the brokerages surveyed, Axis Securities presented the most optimistic projections, while B&K Securities predicted the slowest growth in both revenue and profit after tax (PAT) for the company.

According to Yes Securities, the company’s volumes are anticipated to grow by 9 per cent Y-o-Y to reach 29.76 million tons per annum. The growth in volumes is attributed to strong demand from institutional players and continued momentum in the housing sector.

Analysts noted that after weak demand growth of around 1-2 per cent in H1FY25, industry cement demand improved in Q3FY25. However, Motilal Oswal Financial Services, in its quarterly update, pointed out regional challenges, including pollution-related curbs in Delhi-NCR, sand scarcity, and unfavourable weather conditions such as severe cold and unseasonal rains, which negatively impacted overall demand growth.

The average cost of producing one ton of cement (excluding fixed costs) is expected to decrease by 4 per cent Y-o-Y, amounting to Rs 4,761 in Q3FY25.