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Scarcity of Domestic Gypsum Supply

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The Indian cement manufacturers are likely to face serious challenges regarding gypsum availability and cost in the near future. Ramachandran, Chief Executive Officer, Zawawi Minerals LLC, Sultanate of Oman, discusses how identifying and ensuring a consistent supply of gypsum will become an on-going challenge.

The Indian cement demand is set for its third straight year of growth with a 7 per cent to 9 per cent jump to over 400 million tonnes in fiscal 2024. Cement demand in India is expected to continue growing for the next few years, backed by the government’s push for infrastructure development and increasing demand in the housing sectors. However, India has a scarcity of domestic gypsum supplies, which does not bode well for the fast-growing cement industry. An essential, non-substitutable critical raw material, gypsum is required for all varieties of cement production.
Since 2009, the gypsum supply deficit in the Indian domestic market has led to increased dependence on largely imports of natural gypsum predominantly from the Sultanate of Oman, and other countries like Iran, Thailand, small volume from Pakistan and Bhutan by road to the northern part of India. This dependency shall continue in coming years and is growing day by day.
FY 2009 to 2023, India imported 57.09 million tonnes of gypsum cumulatively, witnessed at a CAGR of 16.60 per cent. The gypsum import volume represents nearly 35 per cent of the total gypsum consumed by the cement industry. The Sultanate of Oman alone supplied 28 million tons (49.05 per cent) and the remaining 29.09 million tonnes were from Thailand, Iran, Pakistan and Bhutan etc. FY 2022 to 2023 – India imported 5.76 million tons of gypsum, which represents 35 per cent of the total gypsum consumption. The Sultanate of Oman supplied 5.20 million tons (90.39 per cent) and the remaining 0.56 million tonnes are from Thailand, Iran and Bhutan.
According to the production growth of cement and gypsum board, the industry’s demand for gypsum is expected to reach nearly 380 million tons cumulatively by FY 2037-2038 with a CAGR of 5.15 per cent. The maximum local gypsum supplies could be around 200 million tons, which includes FGD gypsum, Phospho-gypsum, Natural gypsum etc. The limited availability of domestic gypsum will lead to supply constraints and increased dependence on imports, cumulatively needing to import nearly 180 million tonnes of gypsum to meet the domestic demands.
Natural Gypsum: India’s local natural gypsum production and supplies are limited due to deep seated gypsum reserves not feasible for mining.
Phospho-gypsum: Phospho-gypsum production in India is limited, the majority of the existing Phosphop-gypsum stockpile may be consumed for on-going road construction, as reported by the Ministry of Road Transport and Highways. Recently, the Central Road Research Institute (CRRI) carried out an R&D project to explore the feasibility of Phospho-gypsum for road embankment and subgrade construction. The performance of Phospho-gypsum was as good as conventional sand embankment. It was concluded that 100 per cent of Phospho-gypsum can be used for both embankment and subgrade construction.
An Indian fertiliser company has constructed a road using phosphor-gypsum, which was evaluated by the CRRI. Based on their report, the Indian Road Congress (IRC) has been accredited for using phosphor-gypsum waste material for the road constructions.
FGD (Flue Gas Desulphurisation) gypsum: The production growth of FGD gypsum uncertainty shall continue due to huge investments of over US$ 13 billion for installing FGD units by the heavy debt-burden coal power companies. India had initially set a 2017 deadline for 2,11,520 MW thermal power plants to install FGD units to cut Sulphur emissions. That was later changed to varying deadlines for different regions, ending in 2022, and further extended to a period up to 31st December 2026. According to the latest guidelines, the power plant which have plans to retire before 31st December 2027 will now be exempted from installing FGD units and if the non-retiring power plants fail to adhere to the new deadlines, they will have to pay ‘environmental compensation’ ranging from 20 paise to 40 paise per unit electricity generated.
According to the Central Electricity Authority (CEA) the FGD unit implementation status as of May 2023 – only 9,280 MW (4.40 per cent) capacity already installed and only 1,00,430 MW have been awarded bids for installing FGD units.
On the other hand, considering the huge capital investments, limestone costs for the FGD process and other operating costs, the FGD gypsum will not be available at a cheaper price for the Indian consumers – only the limestone cost itself for the production of per tonne FGD gypsum will be US$ 18 or above.

Gypsum Export Supply Outlook
Supply from Thailand:
Asia’s past dominant gypsum exporter began to cap their exports with the goal of conserving resources for their own significant domestic industries. The government authority regulated the minimum FOB (Free on Board) export selling price. Presently Thailand exports its gypsum at an FOB price of over US$ 20 per tonne and exports over 97 per cent of its gypsum to the historical gypsum importing countries in Southeast Asia.
Supply from Iran: Iran gypsum export volume significantly started falling after tightening the sanction parameters. Gypsum exports to India started dropping, the exports dropped to 0.17 million tonnes in the FY 2022-2023 from 1.57 million tonnes in the FY 2021-2022, nearly 89.35 per cent dropped.
Historically, Iran exports around 10 per cent of its annual production of gypsum majority to India and other GCC countries like UAE, Qatar etc. If the sanctions are lifted, the Iranian construction and infrastructure sector will grow exponentially, and this will create an immense demand for gypsum in the local construction industries. Hence, the gypsum export volumes shall be limited and the FOB selling price may be increased to the level of the pre-sanction period, i.e., FOB US$ 14 -15 per ton or more.
Supply from the Sultanate of Oman: The World’s largest gypsum supplier – Oman exports nearly 10 million tonnes of gypsum yearly, which is 50 per cent of Asia, Southeast Africa and GCC countries’ imported gypsum demand. Oman exports 50 per cent of its total volume to India and the remaining 50 per cent are exported to the historical gypsum importers like Bangladesh, Indonesia, Malaysia, Vietnam, Philippines, Japan, South Korea, UAE, Southeast Africa etc.
Gypsum, key critical raw material for the cement and gypsum board manufacturing industries, much of the imported gypsum consuming the above countries is now turning to the Sultanate of Oman for its requirements of the commodity. The Sultanate of Oman is emerging as the single most important supply source for gypsum, with no rivals. However, Oman’s present exportable gypsum reserves are very limited.
The Government authority of the Sultanate of Oman introduced w.e.f. January 2017, a FOB floor price of US$ 12.50 per ton of raw gypsum exported out of the country, which is keen to increase the FOB prices in coming years to meet its own objectives, to increase the country’s non-oil export revenue.
Even though gypsum accounts for just 2 per cent to 3 per cent of the total cost of cement sales, the Indian cement manufacturers are likely to face serious challenges regarding its availability and cost in the near future. Identifying and ensuring a consistent supply of gypsum will become an on-going challenge.

Data Sources

  • Global cement magazine
  • Global gypsum magazine
  • The Fertiliser Association of India (FAI)
  • Central Electricity Authority of India (CEA)
  • The Ministry of Energy and Mining – The Sultanate of Oman
  • Directorate General of Foreign Trade (DGFT) – Government of India
  • The Ministry of Road Transport and Highways of India
  • The Central Road Research Institute (CRRI) of India
  • Various published reports on Cement and Gypsum industries

ABOUT THE AUTHOR
Ramachandran is the Chief Executive Officer with Zawawi Minerals LLC in The Sultanate of Oman.

Concrete

India Sets Up First Carbon Capture Testbeds for Cement Industry

Five CCU testbeds launched to decarbonise cement production

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The Department of Science and Technology (DST) recently unveiled a pioneering national initiative: five Carbon Capture and Utilisation (CCU) testbeds in the cement sector, forming a first-of-its-kind research and innovation cluster to combat industrial carbon emissions.
This is a significant step towards India’s Climate Action for fostering National Determined Contributions (NDCs) targets and to achieve net zero decarbonisation pathways for Industry Transition., towards the Government’s goal to achieve a carbon-neutral economy by 2070.
Carbon Capture Utilisation (CCU) holds significant importance in hard-to-abate sectors like Cement, Steel, Power, Oil &Natural Gas, Chemicals & Fertilizers in reducing emissions by capturing carbon dioxide from industrial processes and converting it to value add products such as synthetic fuels, Urea, Soda, Ash, chemicals, food grade CO2 or concrete aggregates. CCU provides a feasible pathway for these tough to decarbonise industries to lower their carbon footprint and move towards achieving Net Zero Goals while continuing their operations efficiently. DST has taken major strides in fostering R&D in the CCUS domain.
Concrete is vital for India’s economy and the Cement industry being one of the main hard-to-abate sectors, is committed to align with the national decarbonisation commitments. New technologies to decarbonise emission intensity of the cement sector would play a key role in achieving of national net zero targets.
Recognizing the critical need for decarbonising the Cement sector, the Energy and Sustainable Technology (CEST) Division of Department launched a unique call for mobilising Academia-Industry Consortia proposals for deployment of Carbon Capture Utilisation (CCU) in Cement Sector. This Special call envisaged to develop and deploy innovative CCU Test bed in Cement Sector with thrust on Developing CO2 capture + CO2 Utilisation integrated unit in an Industrial set up through an innovative Public Private Partnership (PPP) funding model.
As a unique initiative and one of its first kind in India, DST has approved setting up of five CCU testbeds for translational R&D, to be set up in Academia-Industry collaboration under this significant initiative of DST in PPP mode, engaging with premier research laboratories as knowledge partners and top Cement companies as the industry partner.
On the occasion of National Technology Day celebrations, on May 11, 2025 the 5 CCU Cement Test beds were announced and grants had been handed over to the Test bed teams by the Chief Guest, Union Minister of State (Independent Charge) for Science and Technology; Earth Sciences and Minister of State for PMO, Department of Atomic Energy, Department of Space, Personnel, Public Grievances and Pensions, Dr Jitendra Singh in the presence of Secretary DST Prof. Abhay Karandikar.
The five testbeds are not just academic experiments — they are collaborative industrial pilot projects bringing together India’s top research institutions and leading cement manufacturers under a unique Public-Private Partnership (PPP) model. Each testbed addresses a different facet of CCU, from cutting-edge catalysis to vacuum-based gas separation.
The outcomes of this innovative initiative will not only showcase the pathways of decarbonisation towards Net zero goals through CCU route in cement sector, but should also be a critical confidence building measure for potential stakeholders to uptake the deployed CCU technology for further scale up and commercialisation.
It is envisioned that through continuous research and innovation under these test beds in developing innovative catalysts, materials, electrolyser technology, reactors, and electronics, the cost of Green Cement via the deployed CCU technology in Cement Sector may considerably be made more sustainable.
Secretary DBT Dr Rajesh Gokhale, Dr Ajai Choudhary, Co-Founder HCL, Dr. Rajesh Pathak, Secretary, TDB, Dr Anita Gupta Head CEST, DST and Dr Neelima Alam, Associate Head, DST were also present at the programme organized at Dr Ambedkar International Centre, New Delhi.

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Concrete

JK Lakshmi Adopts EVs to Cut Emissions in Logistics

Electric vehicles deployed between JK Puram and Kalol units

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JK Lakshmi Cement, a key player in the Indian cement industry, has announced the deployment of electric vehicles (EVs) in its logistics operations. This move, made in partnership with SwitchLabs Automobiles, will see EVs transporting goods between the JK Puram Plant in Sirohi, Rajasthan, and the Kalol Grinding Unit in Gujarat.
The announcement follows a successful pilot project that showcased measurable reductions in carbon emissions while maintaining efficiency. Building on this, the company is scaling up EV integration to enhance sustainability across its supply chain.
“Sustainability is integral to our vision at JK Lakshmi Cement. Our collaboration with SwitchLabs Automobiles reflects our continued focus on driving innovation in our logistics operations while taking responsibility for our environmental footprint. This initiative positions us as a leader in transforming the cement sector’s logistics landscape,” said Arun Shukla, President & Director, JK Lakshmi Cement.
This deployment marks a significant step in aligning with India’s push for greener transport infrastructure. By embracing clean mobility, JK Lakshmi Cement is setting an example for the industry, demonstrating that environmental responsibility can go hand in hand with operational efficiency.
The company continues to embed sustainability into its operations as part of a broader goal to reduce its carbon footprint. This initiative adds to its vision of building a more sustainable and eco-friendly future.
JK Lakshmi Cement, part of the 135-year-old JK Organisation, began operations in 1982 and has grown to become a recognised name in Indian cement. With a presence across Northern, Western, and Eastern India, the company has a cement capacity of 16.5 MTPA, with a target to reach 30 MT by 2030. Its product range includes ready-mix concrete, gypsum plaster, wall putty, and autoclaved aerated fly ash blocks.

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Concrete

Holcim UK drives sustainable construction

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Holcim UK has released a report titled ‘Making Sustainable Construction a Reality,’ outlining its five-fold commitment to a greener future. The company aims to focus on decarbonisation, circular economy principles, smarter building methods, community engagement, and integrating nature. Based on a survey of 2,000 people, only 41 per cent felt urban spaces in the UK are sustainably built. A significant majority (82 per cent) advocated for more green spaces, 69 per cent called for government leadership in sustainability, and 54 per cent saw businesses as key players. Additionally, 80 per cent of respondents stressed the need for greater transparency from companies regarding their environmental practices.

Image source:holcim

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