Concrete

The Indian cement industry is achieving an exemplary performance

Published

3 years ago

November 18, 2022

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Jim O’Brien, CSR Consultant and Convenor of Global Aggregates Information Network (GAIN), evaluates how far the industry has come with the efforts to decarbonise cement and to have a positive impact on the environment as he places India’s performance on the spectrum of the international cement industry.

The cement industry is responsible for approximately 8 per cent of emissions globally. What are the key factors the industry must be looking into to reduce this?
Yes, the cement industry is responsible for around 8 per cent of the global CO2 emissions, and it is taking very active steps to reduce that footprint. In parallel, it must be realised that cement is an essential building material for a rapidly-developing modern society like India. Cement, aggregates, and concrete are essential to building the much-needed infrastructure and housing for what is now the most populous and rapidly-developing region in the world. Those concrete structures will gradually absorb much of the CO2 emitted during the cement production, and enable adaptation to whatever changes in climate may occur in the decades ahead. That wider perspective needs to be understood.

What is your outlook about India’s decarbonisation scenario? How is the country faring vis-a-vis other countries in the West?
Even though India pledged to reach Net Zero by 2070, its cement industry is forging ahead on a decarbonisation path to reach that goal by 2050 – or even earlier. In the analysis based on their 2021 sustainability reports, the top Indian players like Ultratech, Shree and Dalmia, demonstrably lead the world in process parameters like:

Achieving best kiln thermal efficiencies, approaching as low as 3000MJ/tonne clinker, against an industry average of around 3500MJ/tonne clinker.
Achieving best specific net CO2 emissions, now in the region of only 500kgCO2 /tonne cementitious product, against an industry average in the region of 600kg/CO2 /tonne.
Achieving reduction in specific net CO2 emissions by over 40 per cent compared to their levels in 1990, which are world-leading performances, of which the Indian cement industry can be truly proud.
These world-leading trends witness the major past and ongoing investments in modern kiln technology in India, in turn motivated the rapidly growing market and buoyant economic outlook for at least this decade.

Tell us more about the impact of alternative fuels and raw materials on the energy efficiency of the cement industry.
There are surprisingly contrasting results for the Indian players in this area:

The use of alternative fuels in India is amongst the lowest in the world, amounting to only a few per cent of thermal substitution; this is probably because waste legislation is not yet as advanced in India as it is in Europe, where, for example, kilns often use up to nearly 100 per cent of the alternative fuels.
These alternative fuels bring two distinct advantages. Firstly, use of these fuels (or at least the biomass component thereof) allows credits in the calculation of net CO2 emissions. Secondly, these fuels are cheaper, the more hazardous ones coming even with a negative cost, with significant commercial benefit.
The use of alternative materials in India is, on the other hand, amongst the highest in the world, ranging from 20 per cent to 40 per cent substitution, allowing very low clinker/cement ratios approaching 60 per cent; this is viable through the plentiful availability of puzzolans, slags and fly-ashes in India compared to Europe.
The high use of alternative materials and consequent low clinker/cement ratios in India not only greatly reduces the net specific CO2 emissions, but also reduces the volume of limestone needed to produce cement, an important factor in India.

How can technology and automation contribute towards building a sustainable environment?
The leading Indian players are also technology leaders in:

Highly efficient electrical energy consumption in the region of 70-80kWh/tonne cement, compared to the international average of around 100kWh/tonne, in India achieved through advanced grinding technology, probably also helped by the less demanding cement fineness required.
The extensive investment in waste heat recovery systems, plus the move to renewable energy, in particular through solar installations, all of which help to reduce Scope 2 CO2 emissions.
Automation is clearly key to optimising all processes both within and beyond the cement plant, and the latter can help in reducing Scope 3 transport emissions of both incoming raw materials and outgoing products.

In the Indian context, what would be the best practices to follow to ensure a sustainable environment?
There is much more to sustainability performance than CO2 emissions; the larger Indian players also feature prominently in other aspects.
In air emissions, they laudably achieve particulate emissions less than 40g/tonne clinker, NOx less 1000g/tonne clinker and SOx less 100g/tonne clinker, all well below industry averages, but do not yet report on minor air emissions.
Because of water scarcity in India, the larger players are highly focused on water use optimisation, achieving as low as 84 litres/tonne of cement, way below the industry average of around 300 litres/tonne; the major players pride themselves in being many times water-positive through rainwater harvesting.
The Indian players are highly conscious of waste reduction and re-use, one reporting itself as ‘plastic-positive’, their high use of alternative materials indeed puts them amongst the biggest recyclers in any industry.
As part of their ‘licence to operate from society’, the leading players have restoration plans for all their quarries, several with replanting programmes and biodiversity monitoring action plans where appropriate.

How can organisations overcome the challenges of maintaining a healthy and sustainable environment?
A number of relevant social indicators can be cited:
Like the cement industry globally, the Indian industry has a strong focus on occupational health and safety.

However, a number of fatalities to employees, contractors and third parties were reported amongst the Indian players in 2021; while the industry has achieved major improvement in fatality reduction over the last decade, the only acceptable figure is zero.
Indian employee accident rates are extremely low, as also are contractor rates, bearing witness to the strong operational focus on those key areas.
In terms of training, the Indian figures of 10-20 hours of training per employee per year are at or below the industry average of 20 hours, though many international players now have from 30 to 90 hours per employee per year.
Employee turnover rates in the Indian companies tend to be in the region of 6 per cent to 8 per cent, below the industry average of 12 per cent, indicating long-term employee loyalty in the Indian companies.
The employee age profiles in the Indian companies tend to be about 10 per cent below the age of 30, with 70 per cent between the ages of 30 and 50, with 20 per cent over 50, the average employee age being less than industry average, which bodes well for the future; however, the Indian companies have typically less than 5 per cent female employees, much lower than the industry average of 12 per cent.
Indian companies have world-leading programmes in terms of vital support to local communities in education (particularly for women), medical facilities, provision and clean water and sanitation; these witness the Indian cement industry’s huge dedication to the broader social needs of Indian society.

How do you envision the future of a sustainable environment in relation to the cement and building materials sector?
As demonstrated, the Indian cement industry is achieving an exemplary performance within the context of its cement plants and surrounding communities. So far, the Indian industry has in general little downward integration into concrete and aggregates, as is much more common in Europe and other developed regions. Accordingly, both the aggregates and concrete sectors are less developed in India compared to other countries, and could, I suggest, benefit in terms of broader synergistic, sustainability, quality and reputational terms through greater involvement of the cement industry.
The Indian cement industry, in the broadest sense, I believe, is all about delivering the most sustainable solutions in housing, infrastructure, transport and well-being to its society of 1.4 billion people; they deserve and rightly expect a happy, secure, prosperous, and sustainable future in the world’s fastest growing major regional economy. Accordingly, the opportunities for ambitious Indian entrepreneurial companies in further developing its cement, concrete and aggregates industries are immense.

–Kanika Mathur

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Concrete

FORNNAX Appoints Dieter Jerschl as Sales Partner for Central Europe

Published

5 days ago

February 5, 2026

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FORNNAX TECHNOLOGY has appointed industry veteran Dieter Jerschl as its new sales partner in Germany to strengthen its presence across Central Europe. The partnership aims to accelerate the adoption of FORNNAX’s high-capacity, sustainable recycling solutions while building long-term regional capabilities.

FORNNAX TECHNOLOGY, one of the leading advanced recycling equipment manufacturers, has announced the appointment of a new sales partner in Germany as part of its strategic expansion into Central Europe. The company has entered into a collaborative agreement with Mr. Dieter Jerschl, a seasoned industry professional with over 20 years of experience in the shredding and recycling sector, to represent and promote FORNNAX’s solutions across key European markets.

Mr. Jerschl brings extensive expertise from his work with renowned companies such as BHS, Eldan, Vecoplan, and others. Over the course of his career, he has successfully led the deployment of both single machines and complete turnkey installations for a wide range of applications, including tyre recycling, cable recycling, municipal solid waste, e-waste, and industrial waste processing.

Speaking about the partnership, Mr. Jerschl said,
“I’ve known FORNNAX for over a decade and have followed their growth closely. What attracted me to this collaboration is their state-of-the-art & high-capacity technology, it is powerful, sustainable, and economically viable. There is great potential to introduce FORNNAX’s innovative systems to more markets across Europe, and I am excited to be part of that journey.”

The partnership will primarily focus on Central Europe, including Germany, Austria, and neighbouring countries, with the flexibility to extend the geographical scope based on project requirements and mutual agreement. The collaboration is structured to evolve over time, with performance-driven expansion and ongoing strategic discussions with FORNNAX’s management. The immediate priority is to build a strong project pipeline and enhance FORNNAX’s brand presence across the region.

FORNNAX’s portfolio of high-performance shredding and pre-processing solutions is well aligned with Europe’s growing demand for sustainable and efficient waste treatment technologies. By partnering with Mr. Jerschl—who brings deep market insight and established industry relationships—FORNNAX aims to accelerate adoption of its solutions and participate in upcoming recycling projects across the region.

As part of the partnership, Mr. Jerschl will also deliver value-added services, including equipment installation, maintenance, and spare parts support through a dedicated technical team. This local service capability is expected to ensure faster project execution, minimise downtime, and enhance overall customer experience.

Commenting on the long-term vision, Mr. Jerschl added,
“We are committed to increasing market awareness and establishing new reference projects across the region. My goal is not only to generate business but to lay the foundation for long-term growth. Ideally, we aim to establish a dedicated FORNNAX legal entity or operational site in Germany over the next five to ten years.”

For FORNNAX, this partnership aligns closely with its global strategy of expanding into key markets through strong regional representation. The company believes that local partnerships are critical for navigating complex market dynamics and delivering solutions tailored to region-specific waste management challenges.

“We see tremendous potential in the Central European market,” said Mr. Jignesh Kundaria, Director and CEO of FORNNAX.
“Partnering with someone as experienced and well-established as Mr. Jerschl gives us a strong foothold and allows us to better serve our customers. This marks a major milestone in our efforts to promote reliable, efficient and future-ready recycling solutions globally,” he added.

This collaboration further strengthens FORNNAX’s commitment to environmental stewardship, innovation, and sustainable waste management, supporting the transition toward a greener and more circular future.

Concrete

Budget 2026–27 infra thrust and CCUS outlay to lift cement sector outlook

Published

1 week ago

February 2, 2026

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Higher capex, city-led growth and CCUS funding improve demand visibility and decarbonisation prospects for cement

Mumbai

Cement manufacturers have welcomed the Union Budget 2026–27’s strong infrastructure thrust, with public capital expenditure increased to Rs 12.2 trillion, saying it reinforces infrastructure as the central engine of economic growth and strengthens medium-term prospects for the cement sector. In a statement, the Cement Manufacturers’ Association (CMA) has welcomed the Union budget 2026-27 for reinforcing the ambitions for the nation’s growth balancing the aspirations of the people through inclusivity inspired by the vision of Narendra Modi, Prime Minister of India, for a Viksit Bharat by 2047 and Atmanirbharta.

The budget underscores India’s steady economic trajectory over the past 12 years, marked by fiscal discipline, sustained growth and moderate inflation, and offers strong demand visibility for infrastructure linked sectors such as cement.

The Budget’s strong infrastructure push, with public capital expenditure rising from Rs 11.2 trillion in fiscal year 2025–26 to Rs 12.2 trillion in fiscal year 2026–27, recognises infrastructure as the primary anchor for economic growth creating positive prospects for the Indian cement industry and improving long term visibility for the cement sector. The emphasis on Tier 2 and Tier 3 cities with populations above 5 lakh and the creation of City Economic Regions (CERs) with an allocation of Rs 50 billion per CER over five years, should accelerate construction activity across housing, transport and urban services, supporting broad based cement consumption.

Logistics and connectivity measures announced in the budget are particularly significant for the cement industry. The announcement of new dedicated freight corridors, the operationalisation of 20 additional National Waterways over the next five years, the launch of the Coastal Cargo Promotion Scheme to raise the modal share of waterways and coastal shipping from 6 per cent to 12 per cent by 2047, and the development of ship repair ecosystems should enhance multimodal freight efficiency, reduce logistics costs and improve the sector’s carbon footprint. The announcement of seven high speed rail corridors as growth corridors can be expected to further stimulate regional development and construction demand.

Commenting on the budget, Parth Jindal, President, Cement Manufacturers’ Association (CMA), said, “As India advances towards a Viksit Bharat, the three kartavya articulated in the Union Budget provide a clear context for the Nation’s growth and aspirations, combining economic momentum with capacity building and inclusive progress. The Cement Manufacturers’ Association (CMA) appreciates the Union Budget 2026-27 for the continued emphasis on manufacturing competitiveness, urban development and infrastructure modernisation, supported by over 350 reforms spanning GST simplification, labour codes, quality control rationalisation and coordinated deregulation with States. These reforms, alongside the Budget’s focus on Youth Power and domestic manufacturing capacity under Atmanirbharta, stand to strengthen the investment environment for capital intensive sectors such as Cement. The Union Budget 2026-27 reflects the Government’s focus on infrastructure led development emerging as a structural pillar of India’s growth strategy.”

He added, “The Rs 200 billion CCUS outlay for various sectors, including Cement, fundamentally alters the decarbonisation landscape for India’s emissions intensive industries. CCUS is a significant enabler for large scale decarbonisation of industries such as Cement and this intervention directly addresses the technology and cost requirements of the Cement sector in context. The Cement Industry, fully aligned with the Government of India’s Net Zero commitment by 2070, views this support as critical to enabling the adoption and scale up of CCUS technologies while continuing to meet the Country’s long term infrastructure needs.”

Dr Raghavpat Singhania, Vice President, CMA, said, “The government’s sustained infrastructure push supports employment, regional development and stronger local supply chains. Cement manufacturing clusters act as economic anchors across regions, generating livelihoods in construction, logistics and allied sectors. The budget’s focus on inclusive growth, execution and system level enablers creates a supportive environment for responsible and efficient expansion offering opportunities for economic growth and lending momentum to the cement sector. The increase in public capex to Rs 12.2 trillion, the focus on Tier 2 and Tier 3 cities, and the creation of City Economic Regions stand to strengthen the growth of the cement sector. We welcome the budget’s emphasis on tourism, cultural and social infrastructure, which should broaden construction activity across regions. Investments in tourism facilities, heritage and Buddhist circuits, regional connectivity in Purvodaya and North Eastern States, and the strengthening of emergency and trauma care infrastructure in district hospitals reinforce the cement sector’s role in enabling inclusive growth.”

CMA also noted the Government’s continued commitment to fiscal discipline, with the fiscal deficit estimated at 4.3 per cent of GDP in FY27, reinforcing macroeconomic stability and investor confidence.

Concrete

Steel: Shielded or Strengthened?

CW explores the impact of pro-steel policies on construction and infrastructure and identifies gaps that need to be addressed.

Published

1 week ago

January 31, 2026

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Going forward, domestic steel mills are targeting capacity expansion
of nearly 40 per cent through till FY31, adding 80-85 mt, translating
into an investment pipeline of $ 45-50 billion. So, Jhunjhunwala points
out that continuing the safeguard duty will be vital to prevent a surge
in imports and protect domestic prices from external shocks. While in
FY26, the industry operating profit per tonne is expected to hold at
around $ 108, similar to last year, the industry’s earnings must
meaningfully improve from hereon to sustain large-scale investments.
Else, domestic mills could experience a significant spike in industry
leverage levels over the medium term, increasing their vulnerability to
external macroeconomic shocks.(~$ 60/tonne) over the past one month,
compressing the import parity discount to ~$ 23-25/tonne from previous
highs of ~$ 70-90/tonne, adds Jhunjhunwala. With this, he says, “the
industry can expect high resistance to further steel price increases.”

Domestic HRC prices have increased by ~Rs 5,000/tonne
“Aggressive
capacity additions (~15 mt commissioned in FY25, with 5 mt more by
FY26) have created a supply overhang, temporarily outpacing demand
growth of ~11-12 mt,” he says…

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