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Sustainable mining is an essential element

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Anurag Bagaria, Director – Sales & Mining Head, KK Bagaria Group and Anurag Bagaria Group, discusses the restrictions on mining, the efforts his company is taking in reducing environmental impact and the collaborations that are on cards with cement companies to achieve net zero goals.

Tell us about the key materials that are mined for the cement industry?
There are a lot of minerals mined and manufactured by us for the cement industry. We majorly mine high calcium limestone which helps give their product quality and strength. We are located in central India at Katni, Madhya Pradesh which is a hub for cement manufacturing. All major cement plants have their manufacturing units here and we have witnessed the growth and commissioning of a couple of plants every year like ACC Cement, four units of Birla Cement etc.
For the cement industry, we also mine the laterite stone, which is rich in Al2O3. They use it to derive a certain grade of bauxite for their manufacturing process. We also mine hydrated lime or quicklime, as a raw material for the cement industry.
For the energy needs of the cement industry, they burn coal in their furnaces. Coal mining is 95 per cent under the Government of India. Our role as miners is to procure the required grade of coal from the government and supply the same to cement plants.
We are also the manufacturer of high alumina fire bricks which are used in furnaces, ramming mass and castables in the cement plants.
Usually, the mining volumes are in lakhs of tonnes. However, it depends on the permissions from the government agencies like the Mining Ministry of India and the environment department.

Tell us about the state-of-the-art machinery and equipment used.
We use the best machinery and equipment for our work at the mines. JCB’s, poclain excavators, levelers, diesel excavators with bucket, wheel loaders, backhoe loaders, bulldozers, dump trucks, tippers, graders, rock breakers, vibratory compactors, cranes, fork lifts, dozers, off-highway dumpers (20T to 60T), drills, scrapers, motor graders etc., are the various machinery that we for our end-to-end mining process.

What is the role of automation and technology in your mining process?
Yes, automation plays an important role in the mining process. Our mining, over the past 65 years, has been significantly labour intensive. However, now we have moved over to the use of machinery and equipment in the work process.
We have retained our labour forces as they have contributed greatly to the mining work and we believe in giving employment to them. It is a strong belief that if one hires the right person for the job then they make the functionality of technology, machinery and equipment better, making them more productive and efficient.

How do you incorporate sustainability in your mining process?
We incorporate sustainability into our mining process by using renewable energy sources, such as solar and wind power, to power our operations. We also use water recycling systems to reduce water consumption and minimise our environmental impact. Additionally, we use advanced technologies to reduce our carbon footprint and minimise our waste output. Finally, we strive to ensure that our operations are conducted in a responsible manner that respects the local environment and communities. Sustainable mining is an essential element.

What are the challenges in protecting the environment and running the business?
We cannot say that protecting the environment is a challenge because according to government rules and norms, mining has a lot of restrictions in the forest areas. The government only sanctions 250 metres of forest land for mining.
Also, to ensure that there is no loss of green in the forest, we have a plantation drive. In our time as miners, we have planted around thousands of trees over a period of time. We maintain around 6000 cows, which not only is good for the environment, but they also provide for the vermi compost that helps better grow the trees.
We strongly believe in a green planet and are aware of the rising carbon situation. As an organisation, our endeavour is to plant as many trees as we can and bring that amount of oxygen to the environment, thus contributing to the protection of our planet.

How do you think depleting reserves impact the supply of these minerals?
The lowering of mineral reserves shall surely impact the industries and it has been a topic of conversation and concern amongst those who use minerals as their primary source of products. It is for these reasons that sustainable mining has gained popularity and is a means to maintain these reserves.
As the reserves of limestones and other minerals are depleting, it can have a significant impact on the supply of these minerals to cement players. This could lead to an increase in the cost of production, as they may have to source these minerals from more expensive sources. It could also lead to a decrease in the availability of these minerals, which could lead to a shortage of supply and an increase in prices. This could have a negative impact on the cement industry, as it could lead and with time and due to new technology materials, which are treated as low grade limestone are also being used with plants by installing washers and other machines which help in increasing their grade.
For example, earlier high silica limestone is not used in the manufacturing process now we wash the material due to which the silica percentage decreaseds, so it could be used for cement manufacturing.

How do you envision your collaboration with the cement industry in the coming years?
I envision our collaboration with the cement industry to focus on developing innovative solutions to reduce the environmental impact of cement production. This could include exploring new technologies and materials to reduce emissions, developing more efficient production processes, and finding ways to reuse and recycle materials. Additionally, I believe that our collaboration should focus on educating the public about the importance of sustainable cement production and the benefits of using sustainable materials.

-Kanika Mathur

Concrete

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

Crisil Sees Margins Easing Despite Steady Demand

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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.

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Concrete

UltraTech Board Approves Rs 50 bn Fundraise Via NCDs

Company to issue half a million debentures for expansion plan

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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.

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Concrete

Lokesh Lays Stone For Rs 31 Billion Cement Unit In Kadapa

Line-2 expansion to make Kadapa a major cement hub

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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.

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