Concrete
Water is always a priority for us
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1 year agoon
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admin
Pearl Tiwari, CEO, Ambuja Foundation, talks about the various initiatives for water conservation, availability of drinking water and promotion of appropriate technology for water use efficiency.
What is the philosophy behind the Ambuja Foundation?
Ambuja Foundation was set up because the company believed Corporate Social Responsibility (CSR) to be an integral component for a sustainable business, and not an obligatory responsibility.
With investment in water, agriculture, skills, women, health and education, the Foundation enabled ‘livelihoods’ as a pathway to unleashing that potential. Partnering with like-minded corporations, governments and other organisations, it works collaboratively with communities to solve pressing community problems – empowering local people to be the catalysts and drivers of change. Over the last three decades, it has seen a transformation in the remote geographies of over 4,200 villages of 13 states of India.
Tell us about your water programme.
Ambuja Foundation has worked in water resource management for over 30 years, across 12 states. Based on local needs and for industries to survive, its conditioned interventions are designed considering topography, weather patterns and groundwater levels – from the deserts of Rajasthan to the mountains of Himachal Pradesh and Uttarakhand, from the interiors of Maharashtra to the coastline of Gujarat. Working in the space of water resource management has led us to create additional water storage capacity of 63.13 million cubic metres for rural and remote communities, and help villages flourish once more, thanks to abundant water.
Over this period, we have learnt first-hand how water issues in India vary greatly from region to region. The semi-arid Rajasthan, for instance, has always had to adapt to limited water supplies. In mountainous states such as Himachal Pradesh and Uttarakhand the water holding capacity of the soil is low and susceptible to excessive soil erosion. Moreover, the undulating topography and steep slopes lead to high water runoffs and landslides. The coastal regions grapple with salinity creeping inland rendering ground water unfit for agriculture and domestic use. In other regions such as Maharashtra, the water crisis is mostly due to neglect in the efficiency of water usage. India’s water challenges, therefore, require deep knowledge of local conditions and the development of hyper local solutions.
Having experienced a wide variety of water challenges first hand, the valuable insights and experience gained over time, now guide our approach to water resource management. Working hand in hand with local communities and government we’ve been able to build drought resilient villages – empowering the community as well as industries to secure their water future.
Water needs both technical and social solutions and hence our work focuses on both the demand and supply side interventions across three core areas:
Water for livelihood: Using a watershed management approach to managing water resources for quantity and quality, we marry traditional practices followed in the region with technology to enhance the effectiveness of localised water harvesting and storage solutions. Employing a variety of water storage solutions as appropriate to the local conditions such as check dams, khadins, nadis and subsurface dykes in Rajasthan to revive old mining pits and linking them to rivers and canals, has ensured all year round water supply for agriculture and the communities.
Drinking water security: Drinking water solutions too need to be adapted to local conditions, such as rooftop rainwater harvesting structures in areas of abundant rainfall and local water scarcity, handpumps where natural springs are found, to water filtration systems where groundwater is unsuitable for drinking. We educate local communities on the benefits of investing in these solutions, provide technical support for the installation, and financial subsidies where necessary. In collaboration with the local government, we mobilise the community to work together to address the supply of drinking water.
Water use efficiency: Communities need to be educated on the management and efficient use of water. Agriculture consumes almost 80 per cent of available water due to the widely prevalent flood irrigation techniques. Our interventions focus on the promotion of micro irrigation techniques, crop selection and the creation of local water user associations. These associations, consisting entirely of local farmers, are empowered to manage their local water sources and distribution.
How does this impact water positivity?
Industries require a significant amount of water – both during processing and also later in construction, and therefore water sustainability has always been a priority for them. Ambuja Cements Ltd (ACL) adopted a holistic approach and extended water management efforts ‘beyond the fence’ to neighbouring communities, quickly learning that water was a tipping point that could make or break a community as well as ensure sustainability for a company. Since inception, ACL believed that for a community’s development, conservation of natural resources is the topmost priority, of which water remains a critical resource.
From the beginning, the Founder of Ambuja Cements, Narotam Sekhsaria, believed that as the company prospered, communities around company plants should prosper, too. By ensuring the company gave back more water than it took, it not only saw livelihoods and therefore communities flourish, but the loyalty it built among the people was something deep and strong. This all came as a surprise to many, who thought a cement factory in the region would bring nothing but doom and gloom to agriculture and the communities that rely upon it.
Ambuja Foundation, takes care of ‘beyond the fence’ water initiatives on behalf of Ambuja Cements Ltd, and due to our tried and tested approach and impacts achieved, our work has spread beyond Ambuja territories. These tested efforts have powered Ambuja in gaining the water positive status eight times. Our Water Resource Management Programme has become so replicable that we have scaled our water work to many other corporate across the country, acting as a CSR implementing body for others.
What is the role of your parent organisation in contribution to water positivity?
When a company is ‘net water positive’ it means they are creating more water than they are actually using in their business. Whilst it is not a legal compliance, businesses need water to operate and cannot function without it – it makes good business sense to invest in a variety of ways to become water positive. Ambuja Cements Limited is proud to be already ahead of the curve. It is the only cement producer that has been recognised for its leadership in water security by the United Nations Global Compact Network India and recognised ‘A list’ in Global Water Stewardship by the global environment non-profit CDP.
There are various strategies they harness to minimise their water footprint when it comes to being water positive:
Promoting conservation and efficiency: Ambuja Cements efforts have been instrumental in bringing positive changes in people’s lives and biodiversity across regions of their operations, especially in water starved areas. Via Ambuja Foundation, sustainable withdrawal, water efficiency, responsible water harvesting and groundwater recharge is promoted to ensure continuous supply and reduce the number of people affected by water scarcity. All water programmes are also aligned with available government schemes and mobilise individuals to ultimately have these benefits utilised by the community.
Prioritisation of water: Water is always a priority for us. Stakeholder engagement is the key to implementation and thus community engagement plans and advisory panels were created out of which water resource management resulted in the high priority area.
Investment in infrastructure: ‘Inside of the fence,’ Ambuja Cements employs many strategies to recycle, reuse and reduce its use of water in its operations. Several water efficiency measures have been put in place, like the installation of Waste Heat Recovery, roller press, dip tube in lower stage cyclones, raw water storage tank (10000 KL), and air-cooled air compressors and dryers. Ambuja Cement plants recycle water – in Rabriyawas Rajasthan for example, the plant recycles about 70,000 cubic metres of water (14 per cent of water withdrawal) which helps the plant to reduce its overall water withdrawal. Similarly, on site in Rabriyawas there is a revival of water harvesting, which saw the connection of water-logged areas to main drainage lines. There is also a sewage treatment plant installed and all the waste water discharged from the plant and colonies are directed to this treatment plant, which in turn is used for horticulture purposes in the plant areas.
Sustainable development plan: Although ACL uses a dry process of cement production, which uses minimal water, water conservation and its sustainability remains on a high pedestal in the company’s overall sustainable development plan with aspirational targets for 2030.
Investing in human resources: Ambuja also invests in human resources in order to utilise technical as well as social skills to support the Community Water Programme. Apart from having the technical capability, balancing community needs and requirements is also a social skill that one needs a forte in. Ambuja’s Technical Engineers play a major role in providing guidance during setup of water infrastructures in the communities and also during maintenance and audits.
Frameworks and assessments: ACL has also developed a water sustainability risk assessment framework in association with IUCN to account company risks as well as the basin risks covering various risk aspects and identifying cement units with water stress. This assessment also uses the WBCSD Global Water Tool. Two plants are in water scarce regions but overall, ACL complies with all regulatory requirements on water.
What are the major challenges in achieving water positivity?
Water resource development remains one of the priority areas at Ambuja. The programme continues to focus on water conservation, drinking water and promotion of appropriate technology for water use efficiency. It is implemented across locations surrounding the company’s manufacturing plants to address the water-related needs, which is a primary concern of the residing communities.
However, with all these come a number of challenges:
High investment cost: Building and reviving water structures comes with a high investment cost. It is capital intensive and puts a strain on the organisation. Thus, Ambuja Foundation always seeks collaborative efforts from the community, the local panchayat or government related schemes to partner together on certain projects – pooling resources and making them go further.
Community conflicts: Time is heavily invested in convincing communities on the change they need to bring in their area. There are disagreements and fears on land being taken away and sometimes it is taken for granted that Ambuja will simply cover costs.
Climate change: Nature is unpredictable and with it comes its consequences. The team faces challenges when strategic and infrastructural plans are created, which are affected due to unpredictable weather.
Long-term impact: Change and impactful results in rural India take time, and sometimes long-term commitments from key stakeholders is a challenge to secure.
Scientific monitoring impacts: We have created great impact in our communities in the last 30 years. However, we find it a challenge to find relevant organisations to conduct monitoring and impact assessment due to a lack of technical skills and expertise available to review performance or standardise procedures.
How do you measure your impact?
Ambuja Foundation follows an evidence based practice while planning and implementing development initiatives. Ambuja Foundation has an in-house research and monitoring team that objectively and systematically oversees the implementation, progress and impact of programmes at Ambuja Foundation. We conduct project assessments including mid-course evaluation and impact evaluation. We work alongside various consultants to evaluate some of our programmes by conducting baseline studies, Social Return On Investment (SROI) studies and other external impact studies and reports. Ambuja Cements has also quantified its impacts both positive and negative by using the True Value Framework developed by the global accounting firm KPMG. This measure of the company’s interaction with the environment and society helps in making strategic business decisions.
In 2015, Ambuja Foundation commissioned an independent agency to conduct an SROI analysis to identify the long-term impacts and benefits of its investments in water resource management in both Kodinar, Gujarat, and Rabriyawas, Rajasthan. Since then we have conducted many SROI studies to measure the impact of our work. SROI tells the story of how change is created in a community by measuring social, environmental and economic outcomes – and uses monetary values to represent them. By revealing social value, it highlights the areas of significant impact, and helps in understanding the ‘real’ impact and ripple effect of changes made in the area of water. The guiding principles of an SROI analysis are to involve stakeholders, understand what changes, value things that matter, do not over-claim, be transparent and verify the results.
- Kanika Mathur


Carbon Capture, Utilisation, and Storage (CCUS) is crucial for reducing emissions in the cement industry. Kanika Mathur explores how despite the challenges such as high costs and infrastructure limitations, CCUS offers a promising pathway to achieve net-zero emissions and supports the industry’s sustainability goals.
The cement industry is one of the largest contributors to global CO2 emissions, accounting for approximately seven to eight per cent of total anthropogenic carbon dioxide released into the atmosphere. As the world moves towards stringent decarbonisation goals, the cement sector faces mounting pressure to adopt sustainable solutions that minimise its carbon footprint. Among the various strategies being explored, Carbon Capture, Utilisation, and Storage (CCUS) has emerged as one of the most promising approaches to mitigating emissions while maintaining production efficiency. This article delves into the challenges, opportunities, and strategic considerations surrounding CCUS
in the cement industry and its role in achieving net-zero emissions.
Understanding CCUS and Its Relevance to Cement Manufacturing
Carbon Capture, Utilisation, and Storage (CCUS) is an advanced technological process designed to capture carbon dioxide emissions from industrial sources before they are released into the atmosphere. The captured CO2 can then be either utilised in various applications or permanently stored underground to prevent its contribution to climate change.
Rajesh Kumar Nayma, Associate General Manager – Environment and Sustainability, Wonder Cement says, “CCUS is indispensable for achieving Net Zero emissions in the cement industry. Even with 100 per cent electrification of kilns and renewable energy utilisation, CO2 emissions from limestone calcination—a key raw material—remain unavoidable. The cement industry is a major contributor to
GHG emissions, making CCUS critical for sustainability. Integrating CCUS into plant operations ensures significant reductions in carbon emissions, supporting the industry’s Net Zero goals. This transformative technology will also play a vital role in combating climate change and aligning with global sustainability standards.”
The relevance of CCUS in cement manufacturing stems from the inherent emissions produced during the calcination of limestone, a process that accounts for nearly 60 per cent of total CO2 emissions in cement plants. Unlike other industries where CO2 emissions result primarily from fuel combustion, cement production generates a significant portion of its emissions as an unavoidable byproduct. This makes CCUS a particularly attractive solution for the sector, as it offers a pathway to drastically cut emissions without requiring a complete overhaul of existing production processes.
According to a Niti Ayog report from 2022, the adverse climatic effects of a rise in GHG emissions and global temperatures rises are well established and proven, and India too has not been spared from adverse climatic events. As a signatory of the Paris Agreement 2015, India has committed to reducing emissions by 50 per cent by the year 2050 and reaching net zero by 2070. Given the sectoral composition and sources of CO2 emissions in India, CCUS will have an important and integral role to play in ensuring India meets its stated climate goals, through the deep decarbonisation of energy and CO2 emission intensive industries such as thermal power generation, steel, cement, oil & gas refining, and petrochemicals. CCUS can enable the production of clean products while utilising our rich endowments of coal, reducing imports and thus leading to an Indian economy. CCUS also has an important role to play in enabling sunrise sectors such as coal gasification and the nascent hydrogen economy in India.
The report also states that India’s current cement production capacity is about 550 mtpa, implying capacity utilisation of about 50 per cent only. While India accounts for 8 per cent of global cement capacity, India’s per capita cement consumption is only 235 kg, and significantly low compared to the world average of 500 kg per capita, and China’s per capita consumption of around 1700 kg per capita. It is expected that domestic demand, capacity utilisation and per capita cement consumption will increase in the next decade, driven by robust demand from rapid industrialisation and urbanisation, as well as the Central Government’s continued focus on highway expansions, investment in smart cities, Pradhan Mantri Awas Yojana (PMAY), as well as several state-level schemes.
Key Challenges in Integrating CCUS in Cement Plants Spatial Constraints and Infrastructure Limitations
One of the biggest challenges in integrating CCUS into existing cement manufacturing facilities is space availability. Most cement plants were designed decades ago without any consideration for carbon capture systems, making retrofitting a complex and costly endeavour. Many facilities are already operating at full capacity with limited available space, and incorporating additional carbon capture equipment requires significant modifications.
“The biggest challenge we come across repeatedly is that most cement manufacturing facilities were built decades ago without any consideration for carbon capture systems. Consequently, one of the primary hurdles is the spatial constraints at these sites. Cement plants often have limited space, and retrofitting them to integrate carbon capture systems can be very challenging. Beyond spatial issues, there are additional considerations such as access and infrastructure modifications, which further complicate the integration process. Spatial constraints, however, remain at the forefront of the challenges we encounter” says Nathan Ashcroft, Carbon Director, Stantec.
High Capital and Operational Costs CCUS technologies are still in the early stages of large-scale deployment, and the costs associated with implementation remain a significant barrier. Capturing, transporting, and storing CO2 requires substantial capital investment and increases operational expenses. Many cement manufacturers, especially in developing economies, struggle to justify these costs without clear financial incentives or government support.
Regulatory and Policy Hurdles The regulatory landscape for CCUS varies from region to region, and in many cases, clear guidelines and incentives for deployment are lacking. Establishing a robust framework for CO2 storage and transport infrastructure is crucial for widespread CCUS adoption, but many countries are still in the process of developing these policies.
Waste Heat Recovery and Energy Optimisation in CCUS Implementation
CCUS technologies require significant energy inputs, primarily for CO2 capture and compression. One way to offset these energy demands is through the integration of waste heat recovery (WHR) systems. Cement plants operate at high temperatures, and excess heat can be captured and converted into usable energy, thereby reducing the additional power required for CCUS. By effectively utilizing waste heat, cement manufacturers can lower the overall cost of carbon capture and improve the economic feasibility of CCUS projects.
Another critical factor in optimising CCUS efficiency is pre-treatment of flue gases. Before CO2 can be captured, flue gas streams must be purified and cleaned to remove particulates and impurities. This additional processing can lead to better capture efficiency and lower operational costs, ensuring that cement plants can maximise the benefits of CCUS.
Opportunities for Utilising Captured CO2 in the Cement Sector
While storage remains the most common method of handling captured CO2, the utilising aspect presents an exciting opportunity for the cement industry. Some of the most promising applications include:
Carbonation in Concrete Production
CO2 can be injected into fresh concrete during mixing, where it reacts with calcium compounds to form solid carbonates. This process not only locks away CO2 permanently but also enhances the compressive strength of concrete, reducing the need for additional cement.
Enhanced Oil Recovery (EOR) and Industrial Applications
Captured CO2 can be used in enhanced oil recovery (EOR), where it is injected into underground oil reservoirs to improve extraction efficiency. Additionally, certain industrial processes, such as urea production and synthetic fuel manufacturing, can use CO2 as a raw material, creating economic opportunities for cement producers.
Developing Industrial Hubs for CO2 Utilisation
By co-locating cement plants with other industrial facilities that require CO2, manufacturers can create synergies that make CCUS more economically viable. Industrial hubs that facilitate CO2 trading and re-use across multiple sectors can help cement producers monetise their captured carbon, improving the financial feasibility of CCUS projects.
Strategic Considerations for Large-Scale CCUS Adoption Early-Stage Planning and Feasibility Assessments
Cement manufacturers looking to integrate CCUS should begin with comprehensive feasibility studies to assess site-specific constraints, potential CO2 storage locations, and infrastructure requirements. A phased implementation strategy, starting with pilot projects before full-scale deployment, can help mitigate risks and optimise
system performance.
Neelam Pandey Pathak, Founder and CEO, Social Bay Consulting and Rozgar Dhaba says, “Carbon Capture, Utilisation and Storage (CCUS) has emerged as a transformative technology that holds the potential to revolutionise cement manufacturing by addressing its carbon footprint while supporting global sustainability goals. CCUS has the potential to be a game-changer for the cement industry, which accounts for about seven to eight per cent of global CO2 emissions. It addresses one of the sector’s most significant challenges—emissions from clinker production. By capturing CO2 at the source and either storing it or repurposing it into value-added products, CCUS not only reduces
the carbon footprint but also creates new economic opportunities.”
Government Incentives and Policy Support
For CCUS to achieve widespread adoption, governments must play a crucial role in providing financial incentives, tax credits, and regulatory frameworks that support carbon capture initiatives. Policies such as carbon pricing, emission reduction credits, and direct subsidies for CCUS infrastructure can make these projects more economically viable for cement manufacturers.
Neeti Mahajan, Consultant, E&Y India says, “With new regulatory requirements coming in, like SEBI’s Business Responsibility and Sustainability Reporting for the top 1000 listed companies, value chain disclosures for the top 250 listed companies, and global frameworks to reduce emissions from the cement industry – this can send stakeholders into a state of uncertainty and unnecessary panic leading to a semi-market disruption. To avoid this, communication on technologies like carbon capture utilisation and storage (CCUS), and other innovative tech technologies which will pave the way for the cement industry, is essential. Annual reports, sustainability reports, the BRSR disclosure, and other broad forms of communication in the public domain, apart from continuous stakeholder engagement internally to a company, can go a long way in redefining a rather traditional industry.”
The Role of Global Collaborations in Scaling CCUS
International collaborations will be essential in driving CCUS adoption at scale. Countries that have made significant progress in CCUS, such as Canada, Norway, and the U.S., offer valuable insights and technological expertise that can benefit emerging markets. Establishing partnerships between governments, industry players, and research institutions can help accelerate technological advancements and facilitate knowledge transfer.
Raj Bagri, CEO, Kapture, says “The cement industry can leverage CCUS to capture process and fuel emissions and by using byproducts to replace existing carbon intensive products like aggregate filler or Portland Cement.”
Organisations like the Carbon Capture Knowledge Centre in Saskatchewan provide training programs and workshops that can assist cement manufacturers in understanding CCUS implementation. Additionally, global symposiums and industry conferences provide platforms for stakeholders to exchange ideas and explore collaborative opportunities.
According to a Statista report from September 2024, Carbon capture and storage (CCS) is seen by many experts as a vital tool in combating climate change. CCS technologies are considered especially important for hard-to-abate industries that cannot be easily replaced by electrification, such as oil and gas, iron and steel, and cement and refining. However, CCS is still very much in its infancy, capturing just 0.1 per cent of global CO2 emissions per year. The industry now faces enormous challenges to reach the one billion metric tons needing to be captured and stored by 2030 and live up to the hype.
The capture capacity of operational CCS facilities worldwide increased from 28 MtCO2 per year in 2014 to around 50 MtCO2 in 2024. Meanwhile, the capacity of CCS facilities under development or in construction has risen to more than 300 MtCO2 per year. As of 2024, the United States had the largest number of CCS projects in the pipeline, by far, with 231 across various stages of development, 17 of which were operational. The recent expansion of CCS has been driven by developments in global policies and regulations – notably the U.S.’ Inflation Reduction Act (IRA) – that have made the technology more attractive to investors. This has seen global investment in CCS more than quadruple since 2020, to roughly $ 11 billion in 2023.
The Future of CCUS in the Cement Industry
As technology advances and costs continue to decline, CCUS is expected to play a crucial role in the cement industry’s decarbonisation efforts. Innovations such as cryogenic carbon capture and direct air capture (DAC) are emerging as promising alternatives to traditional amine-based systems. These advancements could further enhance the feasibility and efficiency of CCUS in cement manufacturing.
In conclusion, while challenges remain, the integration of CCUS in the cement industry is no longer a question of “if” but “when.” With the right mix of technological innovation, strategic planning, and policy support, CCUS can help the cement sector achieve net zero emissions while maintaining its role as a vital component of global infrastructure development.

ICR explores the Indo-German partnership is driving growth through collaboration in trade, technology, sustainability, and workforce development, with a strong focus on SMEs and innovation. By leveraging each other’s strengths, both nations are fostering industrial modernisation, skill development, and economic resilience for a sustainable future.
The optimism expressed by the panellists suggests that Indo-German collaboration is not only beneficial for both countries but also sets a powerful example for global partnerships.
In a rapidly evolving global economy, strategic international collaborations are more important than ever. One such partnership that continues to gain momentum is between India and Germany. This collaboration spans a wide array of sectors—from trade and technology to sustainability and workforce development—and is already delivering impressive results. The recent First Construction Council webinar, titled ‘Indo-German Partnership: Collaborating for Growth’, provided an extensive look at this vital alliance. Moderated by Rajesh Nath, Managing Director, VDMA India, the session explored the evolution, opportunities, and challenges that define the Indo-German partnership, which saw an impressive $33 billion in bilateral trade in 2023.
From Trade to Technology
The Indo-German relationship has undergone a remarkable transformation over the years, transitioning from basic trade to multifaceted cooperation. Rajesh Nath opened the session by underscoring the dynamic nature of Indo-German trade, with more than 1,800 German companies now operating in India. “Machinery accounts for nearly a third of our bilateral trade,” Nath shared, highlighting sectors such as renewable energy, digitalisation, and green hydrogen as key growth areas for the future.
V.G. Sakthikumar, Managing Director, Schwing Stetter India, reflected on his company’s own journey, which mirrors the broader evolution of the Indo-German partnership. When Schwing Stetter first set up operations in India in 1998, the country was considered a relatively small market. Today, India has become the largest manufacturing hub for Schwing Stetter, with exports flowing to markets in Europe, the U.S., and even China. “Germany trusted India to produce high-quality products at competitive prices, and now, we export machinery back to Germany and America,” said Sakthikumar, underscoring the mutual growth that has defined this partnership.
India’s Industrial Modernisation
Germany has played a pivotal role in India’s industrial modernisation, particularly in advancing manufacturing capabilities. Maanav Goel, Managing Director, Hoffmann Quality Tools India, discussed how the historical and contemporary aspects of Indo-German cooperation have shaped both nations’ industries. “Before 1947, our interactions were largely limited to cultural exchanges,” Goel said, explaining how industrial cooperation became central after India’s independence. “Today, German companies like Hoffmann have developed high-quality tools tailored to industries such as automotive and aerospace.”
Goel also pointed out that German companies have been instrumental in advancing India’s Industry 4.0 ambitions. “Sustainability is not just a cost; it’s an investment,” he added, referring to the energy-efficient and precision-engineered solutions Hoffmann provides to enhance India’s manufacturing sector.
Research, Innovation, and the Role of Technology
Innovation has always been the core of the Indo-German partnership. Anandi Iyer, Director, Fraunhofer Office India, highlighted how research and innovation are driving both countries toward a more sustainable future. As the world’s largest applied research ecosystem, Fraunhofer has introduced technologies ranging from digital twins for manufacturing to waste-to-construction materials, all aimed at improving efficiency and sustainability in Indian industries.
Reflecting on Fraunhofer’s work in India, Iyer noted that India is not just a market for technology, but a hub of entrepreneurship and rapid implementation. “We entered India in 2008, and today we earn over €70 million annually from Indian industry contracts,” she shared. Iyer also stressed the importance of democratising technology, especially for India’s small and medium enterprises (SMEs). “SMEs are crucial to the future of both India and Germany. By creating innovation clusters similar to Germany’s, we can ensure that technology benefits all businesses, big and small,” she said.
Cornerstone of Growth
SMEs are a critical focus in the Indo-German partnership. Manoj Barve, India Head, BVMW, emphasised their importance in both countries. “In Germany, SMEs contribute 55 per cent to GDP and employ 60 per cent of the workforce,” Barve said. “India’s SMEs, which contribute 30 per cent to the country’s GDP, are equally important for job creation and economic growth.”
Barve also discussed the complementary strengths of India and Germany. India’s prowess in IT, coupled with Germany’s engineering expertise, provides a fertile ground for collaboration. “Germany’s advanced technology can support India’s ‘Make in India’ initiative, while India’s cost-effective manufacturing can help Germany tackle its energy-led inflation,” he explained.
Gender diversity was another issue Barve touched upon, pointing out that Germany’s workforce is 62 per cent female, supported by policies such as parental leave and flexible working hours. “India, at 37 per cent, has room to grow in this area,” he added. “Addressing issues like workplace safety and societal norms can help unlock the full potential of Indian women in the workforce.”
Navigating Challenges and Expanding Reach
The webinar also addressed the challenges that SMEs face when attempting to expand internationally. Nitin Pangam, Managing Director, Maeflower Consulting, emphasised the need for deeper market insights and sustained engagement to succeed globally. “SMEs need to understand target markets better, whether it’s leveraging the Inflation Reduction Act in the U.S. or tapping into infrastructure projects in Saudi Arabia,” Pangam said.
He also stressed the importance of government support for SMEs. “Institutions like Invest India and VDMA India play a crucial role in guiding SMEs toward international expansion,” Pangam added, suggesting that India could benefit from models like Enterprise Ireland’s, which helps SMEs navigate global markets.
Shared Responsibility
An often overlooked but vital aspect of Indo-German collaboration is skill development. Schwing Stetter’s Sakthikumar discussed how the company has been proactive in training operators and welders, addressing the significant skills gap in India’s construction machinery sector. “We have partnered with state governments to create training programs that produce highly skilled workers, and some of our welding schools have produced global champions,” he shared.
Iyer also highlighted the potential for India to adopt Germany’s dual education system, which sees 5 per cent of the workforce engaged in training at any given time. “This system can be a model for India, where industry-driven skill programs can help bridge the skills gap and align workers with evolving technologies,” Iyer explained.
Looking to the Future
The future of the Indo-German partnership lies in embracing sustainability, digitalisation, and workforce empowerment. Rajesh Nath summarised the webinar’s discussions, emphasising that sustainability and supply chain resilience will play a defining role in the relationship moving forward. “Leveraging technology and deepening institutional collaboration are key to the future,” Nath concluded, signalling the importance of continued cooperation in these areas.
The optimism expressed by the panellists suggests that Indo-German collaboration is not only beneficial for both countries but also sets a powerful example for global partnerships. As Iyer aptly remarked, “The future is bright, but it requires strategic steps to make SMEs and innovation the engines of growth.”
The Indo-German partnership represents a model of what strategic international cooperation can achieve. By focusing on trade, technology, sustainability, and workforce development, both nations have been able to create a mutually beneficial relationship that drives growth and innovation. As India and Germany move forward, their cooperation will serve as a blueprint for growth in the years to come.

Harking on the ‘sabka vikas’ maxim, Union Budget 2025 presented several key industries, including infrastructure and urban development, with promising provisions, while endowing the middle class with reformative taxation. ICR brings you a special report.
Finance Minister Nirmala Sitharaman’s Union Budget 2025 outlined a multi-pronged approach to achieving ‘Viksit Bharat.’ Key themes included poverty eradication, quality education, and affordable healthcare. The budget focused on tax reforms, middle-class empowerment, and national economic growth. Special attention was given to the aspirations of GYAN (Garib, Yuva, Annadata, and Nari Shakti).
Union Budget 2025 also stressed the need to expedite the pending housing projects. Together with the impetus given to infrastructure and urban development, the budget bodes well for the cement sector. We reached out to key opinion leaders from the industry to understand their reaction to the budget.
Towards sustainable growth
Arun Shukla, President and Director, JK Lakshmi Cement, applauded the focus of Union Budget 2025 on expanding infrastructure through PPP models and streamlining trade and warehousing facilities, as this will create a conducive environment for cement demand, driving sustainable growth in the industry.
Elaborating further he said, “As we continue to build a stronger future for India, the 2025 Union Budget offers a clear path forward, focusing on sustainable growth, affordable housing and infrastructure development. The completion of 50,000 dwelling units in stressed housing projects and the Rs.1.5 lakh crore allocation for infrastructure will bring much-needed relief to middle-class families, helping them move closer to homeownership while fostering rapid urbanisation. We are optimistic about the Rs 10 lakh crore asset monetisation plan, which will infuse capital into new projects, sparking innovation across key sectors.”
A media release from Cement Manufacturers’ Association (CMA) said that the cement industry is poised to leverage the opportunities presented by Union Budget 2025 by ensuring steady and sustained supplies of cement to meet the nation’s growing domestic market and infrastructure demand coupled with sustainable and innovative technologies.
Lauding the budget for its comprehensive focus on holistic and inclusive development, Neeraj Akhoury, President, CMA, and Managing Director, Shree Cement, stated, “The Budget reinforces a transformative journey towards building a resilient economy for advancing India’s development goals. The various initiatives announced by the Government balance people’s aspirations with the future requirements for the country’s economic growth. The focus on increased investments on infrastructure across states amplifies opportunities and avenues for the growth of the cement sector. We appreciate the sustained core focus on infrastructure and reiterate our commitment to being partners in the nation’s progress.”
He opined that the increased spending on large scale housing and infrastructure projects will drive demand for construction materials allowing capacity expansion and promotion of innovation in sustainable practices. “We are certain that despite challenges these measures will support the cement Industry in achieving a consistent CAGR growth rate of more than 6 per cent of installed cement capacity in the present financial year. Policy reforms in Budget 2025-26 signal a reaffirmation of the Government’s intent to augment socio economic growth across core sectors,” he added.
Calling the budget a forward-looking roadmap, Parth Jindal, Vice President, CMA and Managing Director, JSW Cement, said, “It prioritises growth in key sectors such as infrastructure, manufacturing, and technology. The increased investment in technology will accelerate advancements in green cement solutions, driving both sustainability and innovation within the industry. Notable allocations, including Rs.20,000 crore to foster innovation and Rs.1.5 lakh crore in 50-year interest-free loans to states for capital expenditure on infrastructure development, are expected to significantly bolster growth in the core sectors, including cement sector.
He further added, “The budget’s focus on a three-year pipeline of projects under the public-private partnership (PPP) model will incentivise private sector investment and catalyse a transformation in the infrastructure landscape. The establishment of five National Centres of Excellence for skill development, as part of the ‘Make for India, Make for the World’ initiative, will ensure that India’s emerging workforce is well-equipped to meet the demands of a rapidly growing economy.”
Praising the Finance Minister’s efforts at prioritising sustained reforms in manufacturing, mining, power and skill development, Vivek Bhatia, MD and CEO, TKIL Industries, said, “These sectors will be key drivers of growth, infrastructure development, governance improvements and sustainable development for the country. We welcome the government’s move towards accelerating India’s manufacturing sector. Over the past decade, structural reforms have drawn global attention, and the announcement of a National Manufacturing Mission is a significant step in strengthening the Make in India initiative. This will drive clean-tech manufacturing, bolstering the ecosystem for solar cells, EV batteries, wind turbines and more.”
He added, “The `1.5 lakh crore allocation for 50-year interest-free loans is set to accelerate infrastructure development, unlocking new growth avenues for us. These strategic measures position India as a rising global manufacturing hub, seamlessly aligning with its green energy and economic ambitions. We applaud these initiatives and eagerly anticipate the forthcoming policy on critical mineral recovery, which will play a pivotal role in driving sustainable industrial growth.”
Raman Bhatia, MD, Servotech Renewable Power System, echoed the sentiments as he noted the provisions made for incentivising electricity distribution reforms. He said, “The practical approach of allowing additional borrowing for states contingent on these reforms is commendable. The inclusion of 35 additional capital goods for EV battery manufacturing is a significant boost to domestic lithium-ion battery production, a critical component for the EV sector. I particularly appreciate the emphasis on improving domestic value addition and building our ecosystem for these crucial technologies. The substantial allocation for private sector-driven R&D and innovation is another welcome move that will further accelerate progress.”
Constructing a sturdier future
Union Budget 2025 bodes well for the infrastructure and construction industries, too, which in turn directly impacts the growth of the cement sector. Emphasis on economic expansion, infrastructure growth, support for MSMEs and empowering the middle-class are several key factors that will create favourable grounds for increase in construction activities.
Lalit Parihar, Managing Director, Aaiji Group, said, “Raising the exemption limit will boost disposable income, enhancing housing affordability and driving real estate demand. Increased infrastructure spending and the Rs 1 lakh crore Urban Challenge Fund will transform cities into growth hubs, fostering redevelopment and strengthening water and sanitation systems. These measures aim to stimulate domestic consumption, address the economic slowdown, and create a business-friendly environment. Overall, the budget takes a decisive step toward urban transformation and sustainable economic growth.”
Speaking about the limitations of the budget, Narayan Saboo, Chairman, BigBloc Construction, pointed out, “The focus on consumption-driven growth, coupled with strategic spending, is expected to provide a much-needed push to the economy. Although we were little disappointed with no major tax reliefs for MSMEs. Overall, it is a steady and practical budget aimed at sustaining momentum without major surprises. The budget outlines a long-term path for fiscal consolidation while delivering a significant boost to individual taxpayers by raising the exemption limit. This move is expected to stimulate domestic consumption, addressing the ongoing economic slowdown.”
“The government has not clarified its plans for increased infrastructure spending and other growth-oriented expenditures. However, there is no mention of last year’s CAPEX shortfall, which is a notable omission. While the budget does not introduce any groundbreaking measures, it provides a stable framework to support MSMEs and economic activity,” he added.
While Rakesh Reddy, Director, Aparna Constructions, highlighted the `1 lakh crore Urban Challenge Fund and the Rs.1.5 lakh crore interest-free loan to states for infrastructure development in his reaction to the budget, he also pointed out that several key industry expectations for the real estate sector remain unaddressed. “Granting industry status to real estate, streamlining approval processes, and enhancing liquidity support for developers were essential priorities which would have gone a long way in accelerating real estate growth,” he clarified.
“We welcome the Rs.1 lakh crore Urban Challenge Fund, which will spur housing and private sector participation. The Rs.15,000 crore SWAMIH Fund-2 will help complete 40,000 stalled units, boosting consumer confidence. Expanding UDAN’s connectivity to 120 destinations will drive tier II market growth. With policy continuity and economic expansion, this budget reinforces real estate as a key pillar of India’s $5 trillion economy journey,” stated Ashish Puravankara, Managing Director, Puravankara.
Prashant Sharma, President, NAREDCO Maharashtra, said, “The Union Budget 2025-26 has emphasised economic growth and inclusive development, but the absence of specific measures for the real estate sector is a major disappointment. While the Rs.1 lakh crore Urban Challenge Fund is a step in the right direction to transform cities into growth hubs, the sector was expecting direct incentives such as industry status, single-window clearances and increased tax benefits for homebuyers.”
Ravleen Sethi, Director, CareEdge Ratings, in her report stated that the ongoing consolidation in India’s cement sector is driving competition, with companies shifting focus to profitability and expansion. While the Union Budget 2025 provides some support through infrastructure spending and housing initiatives, the lower-than-expected capex allocation raises concerns. The government aims to boost private sector investment in infrastructure, but its pace of scaling up remains uncertain. Cement companies must prioritise operational efficiency and innovation to manage near-term challenges. A long-term growth outlook remains positive, but adaptability will be key in leveraging both public and private sector opportunities.
The Union Budget 2025 lays a solid foundation for economic growth, infrastructure expansion and middle-class empowerment. While it introduces key reforms and allocations to drive sustainable development, some industry expectations remain unmet. The emphasis on urban transformation, manufacturing, and green energy signals a progressive vision for Viksit Bharat. Moving forward, effective implementation will be crucial in realising the budget’s ambitious goals.

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