Concrete
A Quizzical Quarter
Published
4 years agoon
By
admin
With the cement industry’s combined quarterly earnings in the second quarter of the current financial years reaching its nadir since July-September 2013, the industry is facing tough times. Is this a temporary phase or is it likely to prolong into the next calendar year? ICR analyses various facets of this development to find the answers.
Nearly two years after the Covid-19 pandemic brought the Indian economy to a screeching halt, things are slowly returning back to normal in 2022. Year 2022 was one of reconsolidation for India Inc. While the United States of America is facing a recession, it has resulted directly in the inflow of cash in developing countries such as India, in the form of foreign direct investment. And since the infrastructure is one of the major sectors allowing 100 per cent foreign direct investment [1], it would be expected to boost the entire industry with allied industries such as cement experiencing massive growth. However, it can be noticed that this has yet to happen. In fact, the combined net profits of the top cement companies in India were the lowest in a decade [2] in July-September 2022. The fact that this situation has arisen even after the entry of a wealthy entity such as the Adani Group in the cement sector is even more surprising. So, what exactly does this imply, and what kind of an impact will the weakness of the infrastructure and cement industry have on the overall Indian economy?
Global perspective
Hetal Gandhi, Director – Research, CRISIL Market Intelligence and Analytics, says, “The cascading effect of fuel price hikes and global supply disruptions owing to Russia-Ukraine war in early 2022 has resulted in sharp rise in critical input materials such as coal, oil and gas, which in turn drove cement prices to an all-time high.”
In the light of the above comment, let’s take a look at India’s position on the global level. India is one of the largest players in the global cement industry with over 7 per cent of the total global installed capacity [3]. Within India, about 98 per cent of the total cement production capacity is held by the private sector while the Government only holds 2 per cent. But despite the private sector dominating the cement industry in India, one of the biggest drivers for demand for cement is and always has been the Government. Various infrastructure projects undertaken by the Government of India within the last two years, which include the development of urban infrastructure, commercial real estate, roads, etc., have given a massive boost to the cement sector. In addition to that, the 2022 Union Budget had made allocations worth Rs 4,28,400 crore for various infrastructure-related projects.

Within the time span of 2020 to 2022, the foreign direct investment into manufacturing cement and gypsum-related products reached US$ 5.48 billion. As per Directorate General of Commercial Intelligence and Statistics (DGCIS), India’s export of Portland cement, aluminous cement, slag cement, super sulphate cement, and similar hydraulic types of cement stood at US$ 118.15 million in FY21. India exported cement to countries such as Sri Lanka, Nepal, the US, the UAE, and Bangladesh. In addition to this, within the next 10 years, India is expected to become the main exporter of clinker and gray cement to the Middle East, Africa, and other developing nations of the world [2].
Gandhi points out, “Share of cement in total construction costs varies across segments, with rural housing having the highest share of 15-20 per cent while urban housing and real estate each have a relatively lower share of 5-10 per cent. In infra segment cost of cement as a proportion of overall costs varies from 4-10 per cent. Cement, a key raw material for the construction industry, witnessed a moderate ~3 per cent on-year price growth in H1 FY23 on an already high base (~6 per cent growth compared to same period in 2020). While cement prices had seen relatively moderate price growth, prices of other crucial construction materials like steel, bricks, sand, aggregates, etc. had surged through the roof in 2022 adversely impacting construction demand. Rising material costs impacted launches and completion of projects with many projects getting delayed.”

Market Dynamics
“Cement prices saw a temporary blip in Q3 2022 amidst seasonally lean demand period, however, with peak construction period in H2FY23, cement prices are expected to further increase to abate the impact of high input costs and growing by 4-5 per cent on-year in fiscal 2023, on an already high base of. Despite elevated prices, construction demand to remain strong amidst strong execution in real estate space, higher rural housing shortage and government impetus to infra projects before elections in 2024, driving cement demand growth of 10-12 per cent in FY23,” explains Gandhi.
“Selling and distribution costs, on the other hand, are expected to remain flat this fiscal despite elevated fuel prices. Diesel prices witnessed ~5 per cent on-year growth in H1FY23 on an already high base (~22 per cent growth in H1FY22), however, freight costs to remain stable in current fiscal on back of continued uptick in rail transport and falling lead distances. Further, gradual easing of diesel costs in second half of the fiscal will also limit cost flare-up,” she adds.
The overall cement consumption in India was expected to grow at a CAGR of 5.65 per cent throughout 2016-2022[3]. However, the situation turned out to be vastly different. According to Business Standard, the biggest factor in the reduced margins and earnings for the players in the cement industry was a mix of high operating costs and lower-than-expected volume growth. This has led to the combined profits of 10 of the largest cement manufacturers in India to drop to 71.8 per cent YoY in this quarter. It is important to note that private players dominate the cement industry, as stated above, and even among them, the top 20 companies account for nearly 70 per cent of total cement production in India. Because of this, reduced margins and profits for some of the largest players including Ambuja Cement, Shree Cement, ACC, India Cement, and UltraTech Cement can have implications for the entire sector and the entire economy as well.
So, what should be expected from this turbulence within the sector? Well, the obvious implication is that infrastructure projects undertaken within the country will be affected. This ranges from Government projects on a large scale, to small-scale individual projects. Rural housing demand has been a major driving force in favor of the cement industry in recent years. But even a slight increase in the costs of raw materials can cause that demand to slow down, which would further lead to a negative impact on the economy. The Government, on the other hand, has other options to counter the increase in demand. A large-scale Government project such as the ‘PM Gati Shakti – National Master Plan (NMP)’, or the initiative for the development of 98 smart cities will surely favour the industry and ensure that an evergreen sector such as cement never truly suffers too many losses due to rising demand from such projects.
Optimistic Outlook
Having said that, it is more likely than not that this weak position of the cement industry is only temporary. It is apparent that the drivers behind the demand for cement are still stable and strong, and that the Government is actively pushing for development in all kinds of public infrastructure, as well as providing aid in the development of private infrastructure. Some of the biggest drivers in the sector, roads, and railways, are expecting major expansions in the near future, and cement plants at port ¬¬cities in Gujarat and Vishakhapatnam are also expected to offer other significant boosts to the industry by gaining logistical advantages over the traditional production states such as Andhra Pradesh, Madhya Pradesh, and Chhattisgarh. As far as the fears of the global recession are concerned, it will lead to increased foreign direct investment into developing countries for now. Once the developed countries become attractive for investment again, the increased foreign direct investment will dry up, however, by that point, we will have other advantages to work with. All things considered, the current situation is only a small speed-breaker in the journey toward expansion of the cement industry, and 2023 appears to be good for the economy and every sector therein, especially the ones related to infrastructure, such as cement.
References:
[1] www.dpiit.gov.in
[2] and [3] www.ibef.org
-Aniruddha Bhandare
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Concrete
Akhoya Gets New 2.2 Km Road Link Under SASCI
Two cement concrete roads opened at Rs 29.1 million (mn) cost
Published
2 days agoon
July 3, 2026By
admin
Two cement concrete pavement roads covering a total stretch of 2.2 km in Akhoya village were inaugurated on 27th June 2026 by MLA Nuklutoshi Longkumer, who attended as the special guest. The project comprises the one km L Pangersowa Road and the one point two km Longchara Junction to RC Chiten Jamir Memorial Government High School road. A formal programme followed the inauguration at the school auditorium.
A technical report was presented by Er Waloniba of the Urban Engineering Wing-III, Kohima, which stated the project was sanctioned in March 2026 under the Special Assistance to States for Capital Investment scheme for 2025-26 at a sanctioned cost of Rs 29.1 million (mn). The work order was issued to M/s Ensign Construction on thirtieth April 2026 with a stipulated completion period of 12 months. Work commenced on fourth May 2026 and was completed on sixth June 2026, with the contractor and team finishing the tasks in around two months. The project included a single-lane cement concrete pavement with side drains, two slab culverts and breast walls at required locations.
Longkumer acknowledged the Chief Minister, the advisor for urban development, contractors and other stakeholders for the allocation and support, and he commended the contractor for early completion. He noted that cooperation from landowners and the community had been important in resolving land related issues that can otherwise delay developmental works. He emphasised that planned developmental activities carried out with collective effort would enable more projects to be implemented successfully.
The headmaster of RC Chiten Jamir Memorial Government High School, I Chubasenba Longkumer, outlined the school background, noting it was established in 1962, was earlier known as Government High School Changtongya and was renamed in 2014. Local representatives said the improved approach roads would ease access for students, staff, patients and the general public and fulfil a long standing aspiration of residents. A dedicatory prayer was offered by the pastor and the programme concluded with a ribbon cutting attended by village council and town council representatives.
Indian Cement Review (ICR) and Fuller Technologies brought industry, policy and technology leaders together to discuss how cement innovation can drive green construction at scale, writes Rakesh Rao.
India is building at a pace few countries can match. Highways, airports, housing, logistics parks, industrial corridors and urban infrastructure are reshaping the country’s economic geography. But beneath this growth story lies a difficult question: can India continue to build at scale without locking itself into a high-carbon future?
That question formed the core of an online panel discussion titled “Driving Green Construction Through Cement Innovation”, organised by Indian Cement Review (ICR) in association with Fuller Technologies as the Presenting Partner on June 25, 2026. The webinar brought together experts from cement technology, R&D, global industry platforms, building performance policy and international development cooperation to examine how low-carbon cement and material innovation can accelerate India’s green construction transition.
The discussion came at a crucial time. India has committed to achieving net-zero emissions by 2070 and reducing the carbon intensity of its economy by 45 per cent by 2030. At the same time, the country’s construction sector is expanding rapidly, driven by urbanisation, infrastructure development, housing demand and industrial growth. Cement, as one of the most widely used construction materials, sits at the heart of this transition. It is indispensable to development, but also central to the challenge of reducing embodied carbon in buildings and infrastructure.
Moderated by Nitika Krishan, Senior Urban Infrastructure and Sustainable Policy Consultant, the panel featured:
- Kiranmai Sanagavarapu, Director, Low Carbon Solutions, Fuller Technologies;
- Dr Hemantkumar Aiyer, VP and Head R&D, Nuvoco Vistas Corp Ltd;
- Devika Wattal, Innovation Lead, Global Cement and Concrete Association (GCCA);
- Dr Sunita Purushottam, MD, GBPN India (Global Buildings Performance Network); and
- Vaibhav Rathi, Senior Technical Advisor, GIZ (the German Agency for International Cooperation)
Setting the tone for the discussion, Nitika Krishan underlined the scale of the challenge before the sector. “The question before us is no longer whether we build, but how we build sustainably,” she said. She pointed out that construction accounts for nearly 40 per cent of global energy-related carbon emissions when both operational and embodied carbon are considered. Cement production, she added, remains one of the hardest industrial processes to decarbonise.
For India, this is not merely an environmental issue. It is a development issue, a competitiveness issue and increasingly, a market issue. As one of the world’s largest cement producers and among the fastest-growing construction markets, India’s material choices will influence the carbon trajectory of its built environment for decades. As Krishan observed, sustainability solutions in economies such as India must not remain limited to laboratory success. They must be scalable, commercially viable and practical at national level.
The innovation gap: From technology to market
Experts believe that there is a need to bridge the innovation gaps for making decarbonisation in cement and concrete scalable. Devika Wattal of GCCA, explained, “The starting point must be the core cement manufacturing process itself. The first and foremost is the heart of our process, the heart of cement manufacturing. How do we reduce clinker? That is always a topic where industry is working very intrinsically.”
Clinker reduction remains one of the most important pathways for lowering emissions in cement. Since clinker production is energy-intensive and chemically emits carbon dioxide, reducing the clinker factor through supplementary cementitious materials (SCMs), blended cements and new chemistries can have a significant impact. Wattal also noted that carbon capture, utilisation and storage (CCUS) will have a role, though it may not be the first lever for all markets.
However, she stressed that innovation cannot stop at technology development. A solution that works in the lab must also be adaptable to industry, scalable in production and acceptable in construction practice. “It is important for that innovation to be adaptable, to be scalable, and so that it can be executed in real time,” she said.
Wattal also called for stronger enabling systems around innovation. These include performance-based standards, product-level embodied carbon databases and clearer frameworks for evaluating green materials. Without these, low-carbon cement products may struggle to compete with conventional materials in procurement and design.
R&D must balance carbon, cost and performance
Bringing in the R&D perspective into the discussion, Dr Hemantkumar Aiyer of Nuvoco Vistas emphasised that low-carbon cement development cannot be treated as a single-variable exercise. Cement must perform in real construction conditions. It must deliver strength, durability, consistency and cost competitiveness, while also reducing carbon.
“The root of understanding and balancing all these aspects lies in materials, and knowing the materials,” he said.
According to Dr Aiyer, R&D teams must understand the variability of raw materials such as fly ash, slag and clinker. Different sources produce different material behaviours. This makes mix optimisation, material characterisation and processing-property relationships critical. When performance is affected, cement manufacturers must understand how strength enhancers, admixtures and other performance chemicals interact with the material system.
He also linked material science with process efficiency. Clinkerisation takes place at extremely high temperatures, around 1,400 to 1,450 degrees Celsius. Any improvement in raw mix design, process control or energy optimisation can, therefore, help reduce emissions and cost. Dr Aiyer pointed to artificial intelligence-based optimisation, Cement 4.0 tools and advanced software as important enablers for real-time process and material control.
“The more you understand the materials, the more you can control it,” he said.
LC3: The promise is proven, the sequencing is not
Limestone calcined clay cement, commonly referred to as LC3, has attracted global attention because it can reduce clinker content significantly by using calcined clay and limestone while maintaining performance in many applications. Kiranmai Sanagavarapu of Fuller Technologies said the technology itself has already moved beyond proof of concept. Fuller Technologies has worked with calcined clay technology for nearly two decades and has seen plants running in France and Ghana. These plants, she said, are meeting local and national specifications, while the economics are beginning to make sense.
“The calciner is performing, the economics is stacking up, it is making business sense to produce,” she said.
But if the technology is viable, why has adoption not scaled faster? For Sanagavarapu, the answer lies in project sequencing. Too often, clay characterisation happens after equipment is specified. This, she warned, is a backward approach because calciner design depends on clay mineralogy, kaolinite content, iron levels, reactivity, moisture and other variables.
“If you don’t know what your deposit looks like before you commit for the equipment, you are, in a way, going blind into designing,” she said.
She also identified permitting and plant integration as major bottlenecks. Environmental clearances, mining permissions and local regulatory approvals must begin early. Similarly, calcined clay must be integrated into existing grinding, blending and logistics systems from the design stage, not treated as an afterthought during commissioning.
India already has IS 18189:2023 standard for LC3, but Sanagavarapu pointed out that the standard is not yet visible enough in procurement documents. “The gap between what is technically being permitted and what the procurement is asking is the single biggest bottleneck,” she said.
In her view, successful scale-up depends on getting the sequence right: clay characterisation first, permitting in parallel, standards aligned with construction, and integration built into plant design.
India’s LC3 journey: Progress, but demand remains thin
Providing details of India’s LC3 commercialisation experience, Vaibhav Rathi of GIZ noted that JK Cement carried out the first commercial production of LC3 at its Rajasthan plant, followed by JK Lakshmi Cement three months later. These initiatives were supported by the International Climate Initiative of the Government of Germany, with IIT Delhi contributing deep institutional knowledge on LC3 research and BIS certification.
Rathi said India’s early experience has produced clear lessons. One of the biggest was the need to build capacity among regulators. While BIS certification existed, State Pollution Control Boards were unfamiliar with the technology and unsure about the approval pathway.
“The capacity building is not just needed amongst the producer and the users of the cement, but also the regulators who are working with this technology for the first time,” he said.
He also highlighted the need for better information on China clay deposits. Since China clay is currently classified as a minor mineral, centralised data on availability, quality and location is limited. If cement manufacturers are to adopt LC3 at scale, stronger mineral intelligence will be important.
The third issue is demand. LC3 has already been used in projects such as Palava City in Mumbai and Noida International Airport, but these remain limited examples. “It is in a chicken and egg situation,” Rathi said. “Cement companies are saying we need more demand, and users are saying there is not enough cement available.”
Public procurement, he suggested, could help break this cycle. If agencies such as CPWD and other public bodies begin testing, accepting and specifying LC3, it could create the market confidence needed for cement companies to invest in production and storage.
Building codes must catch up with innovation
Dr Sunita Purushottam of GBPN India argued that material choices will determine built environment emissions over the long term, but India’s current policy signals remain fragmented. Although LC3 has received BIS recognition, she pointed out that building codes, municipal bylaws, schedules of rates and sustainability codes do not yet provide uniform guidance on low-carbon cement.
“The current cement regulations are largely prescriptive and favouring traditional materials,” she said. This limits the ability of alternative materials to compete on performance, durability and emissions.
Dr Purushottam also raised the issue of taxation. Cement, including LC3, currently falls under the same GST bracket as conventional cement. A differentiated tax structure, she argued, could help accelerate market adoption. “In order for the market to demand LC3, that differentiation in the GST could go a long way,” she said.
She noted that green building certifications such as IGBC and GRIHA are already creating demand for low-carbon materials by assigning points for embodied carbon and sustainable material use. However, she said large-scale adoption will require regulatory mandates, particularly through building codes and state-level notifications.
She also cautioned that low-carbon cement alone does not solve the entire building performance problem. A material may reduce embodied carbon, but the operational carbon of a building depends on thermal performance, design, insulation and energy use. “The energy part has two elements,” she said. “One is the embodied carbon of the material itself, and the other is the operational carbon.”
Collaboration is the bridge between invention and impact
Wattal said GCCA sees innovation as a strategic priority and works through platforms that connect industry with academia and start-ups. “There is no way we will decarbonise our sector without innovation,” she said.
However, she stressed that research must be connected to actual industry challenges. Innovations developed in isolation may fail when they encounter real-world barriers such as raw material variability, plant integration, cost, standards and finance. Start-ups, too, need industry mentorship and scale-up pathways.
Wattal also flagged the importance of finance. Even strong technologies may struggle to attract investment if there is no common understanding of bankability. “We have always put projects into, is this a bankable project? But the definition of a bankable project has never been defined,” she said.
For India, she saw strong potential in its academic and start-up ecosystem, but said the challenge lies in alignment and prioritisation. The country has the research base, industrial capacity and market size. What it now needs is a coordinated route from innovation to deployment.
There is a practical concern for cement manufacturers: how can existing plants be adapted for lower emissions without compromising reliability or commercial viability?
Kiranmai Sanagavarapu addressed, “The reliability risk in calcined clay retrofit is definitely real, but it is almost always self-inflicted. The risk arises when a new process is added to an existing circuit without properly redesigning grinding and blending configurations.”
Existing cement plants, she explained, can take two broad routes. The first is external sourcing of calcined clay combined with mill optimisation. This requires lower capital investment and can potentially move in 12 to 18 months if other conditions are in place. It may reduce emissions by around 20 to 30 per cent. The second route is integrated calcination on site, which requires higher capital expenditure and longer lead times, but provides greater control over quality, supply and emissions reduction potential.
For Sanagavarapu, the principle is simple: low-carbon retrofits must be designed with intent. “Design it with an intent properly from the start. Start in the market conditions where the economics are already working,” she said.
Circularity: The overlooked advantage
According to Vaibhav Rathi, fly ash and slag are already well established in cement and construction (C&D), but construction and demolition waste remains underutilised. “C&D waste is a growing business opportunity which not many have taken up,” he said. India’s continuous construction and demolition activity creates huge volumes of waste, much of which contributes to air pollution, land degradation and material inefficiency. With the right processing and standards, this waste can be converted into useful construction products.
Rathi also pointed out that LC3 has a circular economy dimension that is often overlooked. It can use low-grade kaolin-rich clay left behind after high-grade clay is extracted for other applications. “LC3 is not only a low-carbon solution, but also a circular economy solution,” he said.
At the same time, he cautioned that LC3 in India is not yet cheap because it has not reached scale. Site-specific techno-commercial feasibility studies, supported jointly by development agencies and industry, could help companies assess whether LC3 production makes technical and financial sense at a given location.
Dr Purushottam added that India must address both low-carbon cement and construction waste together. “Both low-carbon cement and C&D waste go hand in hand. India does not have an option but to work on both,” she said.
Dr Aiyer called for policy shifts from both government and industry, including preferential purchasing of sustainable materials, minimum supplementary cementitious material requirements in public and public-private projects, and faster regulatory implementation. “If we can fast-track the regulatory standards and their implementation on the ground, that is the way to go,” he said.
From green ambition to green construction
Cement innovation is no longer only about chemistry. It is about systems. Low-carbon cement will scale only when technology, standards, procurement, finance, regulation, education and construction practice move together.
LC3 and other low-carbon technologies have shown promise. India has early commercial examples, strong research capability and growing market interest. But mainstream adoption will depend on whether demand can be created, regulators can be capacitated, standards can be embedded in procurement, and manufacturers can see a clear business case.
For a country building at India’s scale, the opportunity is enormous. Cement will continue to be central to infrastructure and urban development. The challenge now is to ensure that the cement used in India’s growth story carries a lower carbon burden.
- Rakesh Rao
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Concrete
JK Cement Declared Preferred Bidder For Gilund Limestone Block
Shares Edge Higher As Company Wins Rajasthan Block
Published
5 days agoon
June 30, 2026By
admin
JK Cement gained after being declared preferred bidder for the Gilund Limestone Block in Chittorgarh, Rajasthan, a lease area of 370.96 hectares. The firm saw its shares trade at Rs. 5550.05, up by 28.45 points or 0.52 per cent from the previous close of Rs. 5521.60 on the BSE. The scrip opened at Rs. 5569.15 and touched a high of Rs. 5625.00 and a low of Rs. 5531.00.
The stock recorded turnover of 1742 shares on the counter and the BSE group A stock with face value Rs. 10 has a 52 week high of Rs. 7565.00 on 20-Aug-2025 and a 52 week low of Rs. 4670.05 on 12-Jun-2026. Last one week high and low stood at Rs. 5625.00 and Rs. 5329.00 respectively. The promoters holding in the company stood at 45.66 per cent, while institutions and non-institutions held 40.61 per cent and 13.73 per cent respectively.
The e-auction conducted by the Government of Rajasthan resulted in the company being declared preferred bidder for the mining lease, and the allocation will enable the company to plan phased development of the deposit, subject to regulatory approvals. The Gilund block spans 370.96 hectares and its allocation is intended to support raw material security for the company’s cement operations in the region. The designation follows the government auction process and will allow the company to plan development and integration of the deposit into its supply chain.
The current market capitalisation stands at Rs. 430.38 billion (bn), reflecting market response to the mining news and prevailing valuation levels for the sector. Investors and analysts will watch for formal allotment and related disclosures that can clarify timelines, capital expenditure and expected production profiles. The report is intended for informational purposes and does not constitute investment advice, and market participants are advised to consult advisers before making decisions.
Akhoya Gets New 2.2 Km Road Link Under SASCI
Green Construction Through Cement Innovation
JK Cement Declared Preferred Bidder For Gilund Limestone Block
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KERC Proposal To Cut Rooftop Solar Export Tariff Raises Concern
Akhoya Gets New 2.2 Km Road Link Under SASCI
Green Construction Through Cement Innovation
JK Cement Declared Preferred Bidder For Gilund Limestone Block
Star Cement Named Preferred Bidder For Boro Lakhindong Block

