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Economic Implications of Using SCMs

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ICR analyses how the integration of supplementary cementitious materials (SCM) and the strategies thereof has catalysed the cement industry’s economic landscape, fostering streamlined processes and enhanced resource utilisation, ultimately shaping a more resilient and profitable sector within India’s economy.

The way to look at any cementitious material in modern times would be to look at the carbon intensity inherent in it in terms of CO2 emissions, such as clinker, which forms the basis for making cement. After grinding the clinker (95 per cent) with gypsum and some correctives (together at 5 per cent), its emission intensity is 849-868 kg per tonne of output. Thus, when you produce ordinary Portland cement (OPC), which contains only clinker as the base cementitious material, the emission intensity is the highest at 750-860 kg of cement output. The lower end of the band is reserved for those who use the best technology that improves thermal efficiency and electrical efficiency.
Now, OPC could be the best suited for giving the early strength of cement measured by the compressive strength in MPa. Whether you take a 3-day or 7-day or 28-day strength, OPC would remain at the highest when you compare with any other form of cement that supplements clinker in the OPC with other cementitious materials like fly ash, slag, silica fume, natural pozzolans – such as calcined clays, shale and metakaolin, sugarcane bagass ash (SCBA) or rice husk ash (RHA).
The purpose of using supplementary cementitious material is two-fold:

  • Economic
  • Environmental
    The way to deal with this subject would be to look at the life cycle assessment of each of these and compute the impact. To make matters simple one may first look at the carbon intensity in each in terms of emissions and attach an appropriate environmental cost to it. Let us look at some of these numbers:
    Portland Pozzolana Cement (PPC) uses a mix of 60-65 per cent clinker, 5 per cent gypsum and 25-30 per cent fly ash thus taking the overall emission to an average 700 kg per tonne of cement. Efforts have been always to look at ways of maximising fly ash and PPC specifications allow for even 35 per cent fly ash to meet the compressive strength guidelines. However, we must note that compressive strength will be lower for 3 days, 7 days and 28 days for PPC when compared with OPC by at least 8-10 per cent. If one considers the cost of fly ash that is replacing clinker, the economic impact is huge as the cost of the former is a fraction of the latter.

Economic Implications
To compute the economic benefits of fly ash in PPC there are two important factors to be considered. The grinding units that are the final delivery points of cement units must be logistically located such that the cost of fly ash could be minimised. But this is a network optimisation question and the optimisation would entail outbound logistics cost of cement as well. Most advanced economies, India included, have looked at fly ash as an economic agent that not only turns waste into wealth but also reduces environmental impact of cement emissions (850 kg to 700 kg per tonne). The reduction in the landed cost of fly ash would further improve the economics through better logistics cost optimisation and mode-mix improvements. In recent times freight charges on rail in India for fly ash have been reduced to move fly ash over longer distances.
The environmental impact over long distance haulage of fly ash thus could be brought down
using rail as the mode, a crucial factor for the life cycle assessment.
The wider economic implication could be seen in the alternative deployment of a waste that was put to landfill is now an economic alternative to clinker. Some fly ash producers like NTPC or TATA Power or Adani Power, who together produce more than 100 million tonnes of fly ash per year, could be powerful actors to sway economic balance. Fly ash brick manufacturers who operate in the smaller concentrated networks, mostly SMEs, could be the next contenders in the value balance.
Slag based cement, uses 50 per cent clinker and 45 per cent slag and 5 per cent gypsum on an average. It is the next best example of SCM making a huge difference to the economic as well as environmental impact. By replacing a large amount of clinker, slag-based cement thus makes the emission intensity of cement come down to less than 500 kg per tonne of cement. This when looked at the back of the cost of slag vis-à-vis clinker, which it replaces in the cement, the economic implication is huge. The total production of blast furnace slag is growing, despite its environmental impact and it makes an economic case for GGBS.
However, blast furnace slag or the copper smelter slag, as inputs mixed together, is not free and must compete as commodities with clinker. But game theoretic approaches to price negotiations have fructified into either contracts that are short or medium term tenured (a sharp departure from the past) or pure spot contracts through auctions, that could be well mired in quasi-collusion dynamics of all kinds (in the past). Slag producers seeing an economic opportunity (as opposed to the environmental impact they face otherwise) have mostly experimented with a mix of spot and contracting strategy. The slag benefit in cement over clinker could be in the range of 30-40 per cent looking at the range of cost dynamics that would also include transportation cost by rail.
When one adds the CO2 emission impact benefit, fly ash and slag make a stunning case.

Exploring Other Options
The next most talked about SCMs are silica fumes and natural pozzolans, but their use has been limited in most parts of the world due to economic evaluations, including logistics cost. However, this economics could be lopsided in Europe where fly ash is hardly available and slag could be following suit. Natural pozzolans like calcined clay and metakaolin are therefore in news today, especially in Europe. In India, for example, they could be traded at cement cost, whereas in Europe they could well be lower than the clinker cost.
Utilisation of fly ash in cement has been improving in India but it is still far from the developed world numbers. The old wet fly ash lying in ponds and the dry lying in ash mounds could together be in excess of 100 million tonnes. While the vertical roller mills (VRM) technologies offer great benefits overall ball mills in grinding for absorption of wet fly ash, some innovative methods to use wet fly ash without adding to cost have been developed by some. Similarly, those having a logistics advantage towards a mix of fly ash and slag have settled for composite cement that could use a blend of fly ash and slag in their grinding mix. These could offer negotiating leverage while settling contracts in fly ash and slag.
At the end, to weigh the environmental impact in concrete, which uses a mix of sand, gravel, cement and water, one must see the equation differently: in a one cubic metre of concrete, using 14 per cent cement in the mix, the CO2 emission would be of the order of 410 kg/cubic metre compared to 290 kg per cubic using 30 per cent fly ash in PPC.

  • Procyon Mukherjee

Concrete

NDMC Rolls Out Intensive Sanitation Drive Across Lutyens Delhi

Municipal body intensifies cleaning and monitoring across the capital

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The New Delhi Municipal Council has launched an intensive sanitation drive across Lutyens’ Delhi, aiming to raise cleanliness standards in the capital’s central precincts. The programme will combine enhanced manual sweeping with mechanised cleaning and systematic waste removal to cover parks, heritage precincts and prominent thoroughfares. Authorities described the initiative as a sustained effort to improve public hygiene and reduce environmental hazards while maintaining the area’s civic image.

Operational teams have been instructed to prioritise drain clearing and litter hotspots, with special attention to markets and transit nodes that attract heavy footfall. Coordination with city utilities and waste processing units will be stepped up to ensure timely collection and disposal, and supervisory rounds will monitor adherence to cleaning schedules. Officials also intend to use data-driven planning to deploy resources efficiently and to identify recurring problem areas.

The council plans to engage resident welfare associations and business stakeholders to foster community participation in maintaining cleanliness and to support behavioural change campaigns. Public communication will be amplified through notices and outreach to encourage responsible waste handling and to inform residents about collection timings and segregation norms. Enforcement measures for littering and unauthorised dumping will be reinforced as part of a broader strategy to deter violations and sustain cleanliness gains.

The move reflects a focus on urban sanitation that officials link to public health priorities and to the city administration’s commitment to maintaining civic amenities. Monitoring mechanisms will include regular reporting and inspections to review outcomes and to recalibrate operations where necessary, according to municipal sources. The council emphasised that continued community cooperation will be essential for the drive to deliver lasting improvements in the appearance and hygiene of the capital’s core areas.

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Concrete

UltraTech Appoints Jayant Dua As MD-Designate For 2027

Executive named to succeed current managing director in 2027

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UltraTech Cement has appointed Jayant Dua as managing director (MD) designate who will take charge in 2027, the company announced. The appointment signals a planned leadership transition at one of the country’s largest cement manufacturers. The board has set a clear timeline for the handover and has framed the move as part of a structured succession plan.

Jayant Dua will be referred to as MD after assuming the role and will be responsible for overseeing operations, strategy and growth initiatives across the company’s network. The company said the designation follows established governance norms and aims to ensure continuity in executive leadership. The appointment is expected to allow a phased transfer of responsibilities ahead of the formal changeover.

The decision is intended to provide strategic stability as UltraTech Cement navigates domestic infrastructure demand and evolving market dynamics. Management will continue to focus on operational efficiency, capacity utilisation and cost management while aligning investments with long term objectives. The board will monitor the transition and provide further information on leadership responsibilities closer to the effective date.

Investors and market observers will have time to assess the implications of the announcement before the change is effected, and analysts will review the company’s outlook in the context of the succession. The company indicated that it will communicate any additional executive appointments or organisational changes as they are finalised. Shareholders were advised to refer to formal filings and company releases for definitive details on governance or remuneration.

The leadership change will be managed with attention to stakeholder interests and operational continuity, and the company reiterated its commitment to delivery on ongoing projects and customer obligations. Senior management will engage with employees and partners to ensure a smooth handover while maintaining focus on safety and compliance. Further updates will be provided through official investor communications in due course.

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Concrete

Merlin Prime Spaces Acquires 13,185 Sq M Land Parcel In Pune

Rs 273 crore purchase broadens the developer’s Pune presence

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Merlin Prime Spaces (MPS) has acquired a 13,185 sq m land parcel in Pune for Rs 273 crore, marking a notable expansion of its footprint in the city.

The transaction value converts to Rs 2,730 mn or Rs 2.73 bn.

The parcel is located in a strategic area of Pune and the firm described the acquisition as aligned with its growth objectives.

The deal follows recent activity in the region and will be watched by investors and developers.

MPS said the acquisition will support its planned development pipeline and enable delivery of commercial and residential space to meet local demand.

The company expects the site to provide flexibility in product design and phased development to respond to market conditions.

The move reflects an emphasis on land ownership in key suburban markets.

The emphasis on land acquisition reflects a strategy to secure inventory ahead of demand cycles.

The purchase follows a period of sustained investor interest in Pune real estate, driven by expanding office ecosystems and residential demand from professionals.

MPS will integrate the new holding into its existing portfolio and plans to engage with local authorities and stakeholders to progress approvals and infrastructure readiness.

No financial partners were disclosed in the announcement.

The firm indicated that timelines will depend on approvals and prevailing market conditions.

Analysts note that strategic land acquisitions at scale can help developers manage costs and timelines while preserving optionality for future projects.

MPS will now hold an enlarged land bank in the region as it pursues growth, and the acquisition underlines continued corporate appetite for measured expansion in second tier cities.

The company intends to move forward with detailed planning in the coming months.

Stakeholders will assess how the site is positioned relative to existing infrastructure and connectivity.

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