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Automation leads to significant gains through optimal raw mix

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D L Kantham, Director – Technical, Penna Cement, discusses the use of alternative raw materials and fuels in making green cement, along with the use of technology and automation, to ensure that the industry moves towards Net Zero goals.

Tell us about the importance of going green for the Indian cement industry.
Globally cement production capacity stands at 4.2 billion tonnes per annum. Cement production, a source of anthropogenic CO2, accounts for 8 per cent of global emissions. Indian production capacity currently stands at about 550 million tonnes per annum with annual production of around 370 million tons per annum. Annual cement production is expected to reach about 480 million tons annually by 2028-29. Hence, the cement industry in India must ‘Go Green’ to be aligned with the Net Zero Target by 2050. This target is aligned with the Paris Agreement to limit global warming to 1.50C.

What are the key alternative raw materials used to manufacture green cement?
We use fly ash, slag and other pozzolanic materials as key alternative raw materials to manufacture greener cement.

What is the role of fuel in making cement green? How does the use of alternative fuels impact the productivity and efficiency of the manufacturing process?
Using alternative fuels like pharma wastes and municipal solid wastes, leads to reduced fossil fuel (coal) usage, thereby reducing carbon emission. Alternative fuel utilisation in the cement industry reduces production costs and reduces CO2 emissions in the atmosphere.

Tell us about the cement blends or products from your organisation that are lower in their carbon content.
Penna Power (Portland Pozzolana Cement) conforming to IS 1489:2015 (32-35 per cent fly ash blended), Penna Suraksha (Portland Slag Cement) conforming to IS 455:2015 (38-48 per cent GGBS Blended) and Concrete Guard, a premium blended product conforming to IS: 1489:2015 aimed to motivate and supply 100 per cent blended cement in retail markets satisfying the customer requirements in IHB market segments.

Tell us about your Net Zero goals. How much have you achieved so far?
Our Net Zero goal is to increase our blended cement production ratio to 75 per cent from the 40 per cent level in 2015. Currently, blended cement production constitutes about 55 per cent.

How do you incorporate sustainability in your cement manufacturing process

  • Increasing Clinker to Cement Ratio (Higher use of PFA/GGBS in the mix).
  • Alternative fuels like pet coke, pharma waste and municipal waste.
  • Energy efficiency technologies, such as Waste Heat Recovery to reduce fossil fuel requirements and adaptation of better cement grinding systems (Roller Press), grinding aids, etc.

What is the role of automation and technology in making cement an eco-friendly product?
Automation leads to significant gains through optimal raw mix, better product output in quantity and quality through minimal human involvement and saves time in decision making on end product quality by quicker analysis of raw materials.

What are the major challenges in reducing the carbon content of cement manufacturing, and how can they be resolved?
Two key areas for reducing the carbon content from cement include:
Reduction in clinker to cement ratio through greater uptake of blended cement in all the key consumption segments – housing, government projects, precast cement products and ready-mix concrete. This involves developing new blended cement to suit the requirements in segments where OPC is still preferred for specific reasons, and to adapt to a higher percentage of alternative fuels in the process.
Following actions may be taken to improve greater uptake of blended cements, which leads to a reduction in the clinker cement ratio:

  • We need to enhance market awareness and acceptability because users are reluctant to select blended cement over portland cement in some regions, though substantial progress has happened in India over the past two decades.
  • Need to involve all the key stakeholders – cement manufacturers, government policymakers – national standards, consultants, key end users, and related allied products, e.g., chemical admixtures used in concrete production for exchange of experience on reducing clinker to cement ratio, promote training events with national standardisation bodies and accreditation institutes etc.
  • Independent organisations to develop cement and concrete standards and codes that allow the widespread use of blended cements while ensuring product reliability and durability at final applications to promote the use of blended cement. For example, additional types of blended cement with a higher blending ratio for specific end applications.
  • Government to promote blended cement in sourcing and public procurement policies and the private big project consultants.
  • Industries and universities conduct R&D into processing techniques for potential cement blending materials that cannot be used due to quality constraints, for example, rice husk ash.
  • Introducing a freight subsidy for transporting supplementary cementitious materials from surplus areas to cement clusters is desirable where SCM availability is limited.
  • Deploying innovative technologies (including carbon capture, usage and storage (CCUS)). Government can stimulate investment and innovation in these areas through funding for R&D.

Broadly, CCUS prevents CO2 from being released into the atmosphere by capturing it and either using it or injecting it in geological formations for permanent storage. CCUS will be crucial to reduce cement sector CO2 emissions, particularly the process emissions released during limestone calcination. While the commercial deployment of CCUS is currently limited, several innovative efforts have been underway in recent years.

How do you measure the impact of your green cement on the environment and society, and what steps do you take to continuously improve its sustainability?
Resource and environmental protection agencies use specific indicators to track and enforce
changes. Today, one of the critical measurement techniques is footprint evaluation. The three common footprint indicators are carbon, ecological, water and soil footprint.
Green concrete produced from green cement has been proven to have enhanced the structure’s durability. This ensures a reduction in demand for natural resources (limestone in particular), thereby improving the sustainability, associated energy consumption, and a corresponding decrease in GHG (GreenHouse Gas) emissions.
Additional cement product profiles, for example, Composite Cement and LC3 Cement (Limestone Calcined Clay Cement), are being researched and developed to suit the market requirement, which will help us further improve on sustainability.

-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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