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Limiting the damage

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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

Concrete

Cement Prices Likely to Rise Rs. 10-15 per Bag from Mid-October

Input costs and steady demand may drive cement price increases

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Cement manufacturers in India are likely to raise prices by Rs. 10-15 per bag from mid-October, as they seek to offset persistent increases in power and fuel costs. Emkay Research said its channel checks indicated a high probability of an increase from October 12, supported by the start of the busy construction season and favourable demand-supply conditions.

The sector had implemented similar rate adjustments of Rs. 10-15 per bag during the first quarter, but the increases were insufficient to cover higher operating costs. Prices also softened during July and August because of the monsoon, widening the gap between realisations and input expenses. Delayed plant expansion programmes have pushed clinker utilisation rates towards 79 per cent by FY28, helping to balance market fundamentals.

Emkay Research said steady volume offtake was supporting cement consumption, with non-trade demand driving activity across regional markets. Industry volumes are expected to grow by 7-8 per cent year on year during the first half of FY27, while demand momentum is projected to remain firm over the following 18 months. The outlook includes the busy construction season in the second half of FY27 and infrastructure activity linked to general elections in the first half of calendar year 2029.

The brokerage expects overall cement demand to record a compound annual growth rate of about 7 per cent between FY26 and FY28. However, elevated operating expenses are likely to continue weighing on profitability. Input costs have risen by Rs. 300-400 per t over the past six to seven months, with the full impact expected to become visible in second-quarter earnings and remain persistent through the second half of FY27.

Spot prices for petcoke and imported coal are approximately 20 per cent and 16 per cent above their second-quarter averages, at USD 175 per t and USD 150 per t, respectively. Packing costs have also increased, with polypropylene granule prices rising above Rs. 135 per kg. Emkay Research estimated that second-quarter earnings could decline by Rs. 200-250 per t sequentially because of higher fuel bills and negative operating leverage, and said the sector requires sustained price increases of about Rs. 10 per bag to offset cost inflation.

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Concrete

Nuvoco Marks 10 Years, Targets 35 MMTPA Capacity by FY28

Nuvoco celebrates a decade of growth, targeting 35 MMTPA cement capacity by FY28.

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Nuvoco Vistas Corporation Limited is celebrating a decade of operations under the theme ‘Dus Saal Bemisaal’, highlighting its expansion in India’s building materials sector. The company has grown from a single cement manufacturing facility into a diversified organisation operating across cement, ready-mix concrete (RMC) and modern building materials.
The company’s journey began in 2014 when its parent, Nirma Group, commissioned a 2 million metric tonnes per annum (MMTPA) greenfield cement plant at Nimbol, Rajasthan. A major milestone followed in October 2016 with the acquisition of Lafarge India, significantly expanding its manufacturing footprint.
Nuvoco strengthened its market presence through the acquisition of Emami Cement, now NU Vista Limited, in 2020, followed by its public listing in 2021. In April 2025, the company added Vadraj Cement to its portfolio, strengthening its presence in western India.
Nuvoco has an operating cement capacity of 27 MMTPA and 14 manufacturing units, including the Kutch and Sachana facilities in Gujarat, which are in advanced stages of completion. It also operates 58 ready-mix concrete plants across India and offers a range of modern building materials.
The company aims to increase its cement capacity to 35 MMTPA by FY2027-28, representing approximately 15-fold growth over the decade.
Reflecting on the milestone, Hiren Patel, Chairman, Nuvoco Vistas Corporation Limited, said, “From our beginnings at Nimbol to the organisation we are today, every milestone has added a new chapter to Nuvoco’s journey and strengthened our belief in building for the long term.”
The company continues to focus on capacity expansion, operational efficiency, innovation and sustainability while strengthening its position in India’s construction materials market.

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Concrete

J&K Government Notifies City Gas Distribution Policy

Policy targets PNG and CNG expansion across all 20 districts

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Jammu and Kashmir government has notified the City Gas Distribution (CGD) Policy, 2026, following its approval by the Council of Ministers headed by Chief Minister Omar Abdullah. The policy sets out a phased framework for expanding Piped Natural Gas (PNG) and Compressed Natural Gas (CNG) access for households, businesses, industries and the transport sector across the Union Territory.

CGD networks will be expanded in phases across all 20 districts, with the aim of bringing reliable natural gas closer to consumers and supporting a gradual shift from conventional fuels. The government said the policy is designed to improve energy access while creating an investor-friendly and time-bound environment for gas distribution projects.

The policy provides for single-window and time-bound clearances, streamlined procedures for setting up CNG stations and standardised norms for the Right of Way. These measures are intended to reduce procedural delays, simplify project implementation and facilitate investment in natural gas infrastructure.

It also prioritises gas connectivity for major industrial estates, including those in Kathua, Samba and Pulwama. Improved access to natural gas is expected to support industrial activity, enhance energy efficiency and help businesses manage fuel costs, while strengthening their competitiveness and encouraging investment in the clean-energy sector.

The policy is also expected to create opportunities for local employment, apprenticeships and skill development in the construction, operation and maintenance of gas distribution networks and related services. Abdullah described the measure as an important step towards cleaner growth, sustainable development and a modern energy ecosystem in Jammu and Kashmir, saying it would expand reliable energy access and support industry and investment.

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