Concrete

Cementing a Sustainably Progressive Strategy

Published

4 years ago

September 19, 2022

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Dr Arvind Bodhankar, Executive Director, ESG & CRO, Dalmia Bharat, discusses methods to tackle energy efficiency problems with an improved ESG strategy, new technologies and latest innovations.

Driving the circular economy as a leading cement manufacturer in the country involves being committed towards environmental sustainability. By ensuring a low-carbon transition, it is possible to envision a future that is not just green and livable for people today but for generations to come. We need to keep in mind that cement is the second largest material consumed on our planet after water and producing it means utilising a lot of natural resources. Therefore, as responsible cement manufacturers, we need to tackle these problems by embedding our ESG strategy within our corporate framework and collaboratively working with new technologies, the latest innovations and, more importantly, partnering with policy-related enablers.

Impact of Governmental Infrastructure Spending
The Government of India’s spend on infrastructure is already providing a necessary stimulus to the cement industry. A key example would be the government’s Gatishakti project with a commitment to 1.4 crores housing under the affordable housing scheme for which a spend Rs 1.47 lakh crore is expected on infrastructure. This will require a significant amount of cement, which will result in the Indian cement sector as well the nation reaching new heights. But before we get to that level, it is important to address the challenges being faced by the cement industry in India.

Reducing Climate Risk Through Collaborative Efforts
The cement industry affects climate change as it contributes seven to eight per cent to the global carbon pool. To curtail this, stakeholders that include members of the United Nations Principal of Responsible Investment and such have begun to reach out to cement industry players across the globe to come up with solutions to cut down on CO2 emissions to see investments flow in.

While some corporations are just beginning to look for solutions others such as us, Dalmia Bharat are leading the pack with commitments that encourage the circular economy. Global visionaries, such as our honourable Prime Minister Narendra Modi, have also stated that India will become a carbonneutral country by 2070 and is committed to 520 GW of renewable energy by 2030. This has helped ease new policies as far as renewable energy is concerned and enabled sector leaders such as us to stay the course to meet our goal of becoming carbon negative by 2040.

While some may see this a stretched target, the right technology implementation has already helped us achieve nearly 43 per cent reduction in carbon footprints from the 1990 baseline enabling us to surpass the target we set for ourselves for 2025. And by collaborating with government and nongovernmental organisations on policy and public advocacy we can keep track of climate change emerging risks, work closely with leadership as well as the operations team to develop the mitigation plan and track its implementation. By 2030, we are confident that we will be able to get rid of conventional energy, that is, energy from power plants.

Integrating Organisational Goals with a Progressive ESG Strategy
The leadership of a cement organisation must be committed to ESG. A key example for this would be the 2040 target that we at Dalmia Bharat have set. Especially in a sector where 55 per cent to 60 per cent are processes-related emissions, yet we have been able to achieve the interim targets of our roadmap. This shows the commitment at a corporate, environment and social level. We believe clean and green is profitable and sustainable, and we see this becoming a possibility only when it is firmly entrenched within our strategy. Everything that we set out to do, we look at it from the lens of sustainability and ESG. So, whether it is ours or any other company, there are some inherent risks such as raw material security, climate change, environment, and health and safety. But when you have a robust environment framework, one can control the risk and bring it to an acceptable level. Organisations must have a focus on alternate fuel, which leads to raw material security.

Due to our strategic focus on ESG, we have made the commitment not only to become carbon negative by 2040 but also like ‘RE100’, EP 100, EV 100, FMC and LEADIT to act as catalyst for change in the Heavy-industry sector. All these initiatives have positively impacted the trust from stakeholders and improved our ESG scores so that we can help build a nation that encourages a circular economy and sustains for aeons to come

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

Crisil Sees Margins Easing Despite Steady Demand

Published

6 hours ago

July 29, 2026

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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.

Concrete

UltraTech Board Approves Rs 50 bn Fundraise Via NCDs

Company to issue half a million debentures for expansion plan

Published

1 day ago

July 28, 2026

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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.

Concrete

Lokesh Lays Stone For Rs 31 Billion Cement Unit In Kadapa

Line-2 expansion to make Kadapa a major cement hub

Published

1 week ago

July 20, 2026

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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.