Concrete

Indian Cement Industry Set to Build 100-150MT Capacity

Published

1 year ago

December 15, 2023

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The 14th Cement Expo and 9th Indian Cement Review Conference 2023 flags off

The two-day event was inaugurated by Dr Vibha Dhawan, Director General, TERI; and Ali Emir Adiguzel, Founder and Director, World Cement Association
The chief guests in their speeches reaffirmed their confidence in the Indian cement industry’s stance of ‘Driving Sustainability Through Technology.’
The 9th Indian Cement Review Conference 2023 proved to be a melting pot of ideas in technological innovations that will help the cement industry become more sustainable and achieve its net zero targets.
The Conference and EXPO charted the journey of the Indian cement industry – from hard-to-abate to possible-to-abate.

DELHI, December 14, 2023: The prestigious Manekshaw Centre, New Delhi, came alive on the morning of December 14th, as luminaries, exhibitors, visitors and delegates converged for the grand inauguration of the 14th Cement Expo and 9th Indian Cement Review Conference 2023. The momentous occasion witnessed the ceremonial ribbon-cutting by Dr Vibha Dhawan, Director General, TERI; and Ali Emir Adiguzel, Founder and Director, World Cement Association, initiating two days of insightful discussions and collaborative initiatives.

Pratap Padode, Founder, FIRST Construction Council (FCC) guided the esteemed dignitaries to the Expo, facilitating introductions with exhibitors and detailed discussions on the showcased products and services. Cement EXPO 2023, seamlessly co-located with the 9th Indian Cement Review (ICR) Conference and the 7th Indian Cement Review Awards, is masterfully organised by FCC, an eminent infrastructure think tank, and Indian Cement Review (ICR), India’s foremost cement publication with a rich 38-year legacy. The 14th Cement EXPO garnered significant support from the Ministry of Road Transport and Highways, Government e Marketplace (GeM), and the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, Government of India (GoI).

The formal inauguration of the 9th Indian Cement Review Conference 2023 commenced with the traditional lamp lighting ceremony, accompanied by keynote addresses and speeches from distinguished chief guests and dignitaries. Among the notable speakers were Dr Vibha Dhawan, Emir Adiguzel, Dr LP Singh, Director General, National Council for Cement and Building Material, and Kaustubh Phadke, India Head, Global Cement and Concrete Association.

Reiterating their confidence in the Indian cement industry’s commitment to ‘Driving Sustainability Through Technology,’ the chief guests set the tone for the conference. The 9th Indian Cement Review Conference 2023 served as a dynamic forum, bringing together diverse perspectives and fostering discussions on technological innovations crucial for the industry’s sustainability journey. With a focus on the theme ‘Driving Sustainability Through Technology,’ the conference aimed to spotlight advancements and suggest strategies for leveraging technology’s transformative power in the cement sector.

In his opening address, Padode said, “All the big players of the Indian cement industry are focussing on increasing their capacity, with an estimated projection of 200 million tonnes of fresh capacity to be added in the coming years. Emphasis is also laid on being the lowest-cost cement producer in India. In fiscal 2023, 30-32 MT (inclusive of grinding and integrated units) capacity addition is reportedly expected. Given that the higher input costs have moderated we could see capacity addition picking up pace in fiscal 2024 at over 30-32 MT leading up to the addition of 150 MT by fiscal 2027. Considering this speed of expansion, the tug of competition and a buoyant demand from infrastructure and housing segments, the Indian cement sector is poised to take a giant leap.”

In his keynote address, Dr Singh said, “The definition of sustainability means we continue development and growth of our infrastructure while protecting the environment for our future generations. As far as sustainability in cement and concrete is concerned, NCCBM is working on every aspect of cement and concrete sustainability.”

Phadke further added, “Indian cement sector is most energy efficient, with more than 40 per cent of CO2 intensity reduced at India level. The industry progress report highlights the work done by cement industry globally. It follows the roadmap released globally by GCCA at the Glassdoor Summit to deliver a Net Zero concrete by 2050. The report also highlights our progress towards 2030.”

Dr Dhawan addressed the issue of climate change: “Nearly two-third of infrastructure development in India is still pending. Cement and steel are materials that are required in bulk to support this kind of development. This gives an insight into a higher demand, leading to the need of higher production, which is an opportunity for cement manufacturers to grow their business and develop the nation.”

She added, “The unfortunate part of climate change is that it was established that a 1.5oC increase in temperature is acceptable as per norms, but that is slowly shifting to 2.5oC. Temperature above 52oC will not support human life. It will also impact biodiversity and climate change will bring along with itself a plethora of diseases known and unknown. The impact will not be uniform across the globe. Countries like ours will be impacted more as we are already affected by climate change.”

In his speech, Adiguzel said, “The power of Indian Cement industry goes beyond its sheer size. It is a catalyst for economic growth driving employment, investment and innovation, creating job opportunities directly or indirectly. The question is – are global Net Zero policies colliding with economic growth in India? Navigating the interplay between Net Zero policies, economic policies and emission targets in the cement industry is a global conversation.”

Jaxay Shah, Chairperson, Quality Council of India, joined the event via a video message. In his message, he said, “The Cement Expo stands as a testament of the dynamic adaptive nature of our industry. It is crucial that ideas, best practices and technology come together to forge the future of the cement and construction centres. This year’s theme ‘Driving Sustainability Through Technology’ highlights the intersection of technological innovations and sustainable practices. This synergy is essential for the growth of the cement industry in harmony with environment conservation.”

The conference included presentations by Flender, Gebr. Pfeiffer, Loesche India and ATS Conveyors.

Panel Discussions

The panel discussion on ‘Driving sustainability: Challenges and opportunities in cement industry’ covered the importance of collaboration, innovation, and knowledge sharing to drive the industry towards a more sustainable future. The panel included Manoj Rustagi, EVP & CSO, JSW Cement; Kaustubh Phadke, India Head, Global Cement & Concrete Association (moderator), Sameer Bharadwaj – Head Manufacturing Excellence, JK Cement; Soundararaj Naveenthakrishna – General Manager, IKN Engineering; and Aashish Maheshwari, Associate Business Director, Evonik India Pvt Ltd.

‘Exploring Alternative Materials and Technologies for Sustainable Cement Manufacturing’ was another topic that was discussed by an industry panel, which included Dr SB Hegde, Prof Jain University & Visiting Professor Pennsylvania State University, USA, (moderator); Ashwani Pahuja, Chairman & Managing Director, NextCem Consulting; KN Rao, My Home Industries; Dr Bibekanand Mohapatra, Advisor & Consultant, Ultratech; and Rajesh Khanna, Director Sales & Marketing, Loesche India.

Ulhas Parlikar, Global Consultant, presented a technical paper on ‘Circular Economy Practices in Cement Production,’ while Dr LP Singh, Director General, NCB, presented a paper on Role of CCUS in decarbonising Indian Cement Industry.

Day 1 of the 14th Cement Expo and 9th Indian Cement Review Conference unfolded as a melting pot of ideas, showcasing technological innovations poised to make the cement industry more sustainable and accelerate progress toward net-zero targets. The event effectively charted the trajectory of the Indian cement industry, transitioning from hard-to-abate challenges to a realm of possibilities achievable through technological advancements.

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Concrete

JK Cement Acquires Majority Stake in Saifco Cement to Expand in J&K

Saifco has an annual turnover of around Rs 860 million.

Published

2 days ago

February 1, 2025

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JK Cement has made a significant move in its growth strategy by acquiring a 60% equity stake in Saifco Cement, a cement manufacturer based in Srinagar, Jammu and Kashmir. The acquisition, valued at approximately Rs 1.74 billion, was approved during a board meeting on January 25, 2025.

Located in Khunmoh, Srinagar, Saifco’s integrated manufacturing unit, which includes both clinker and grinding capacities, aligns with JK Cement’s expansion plans. Saifco has an annual turnover of around Rs 860 million, and this acquisition not only strengthens JK Cement’s presence in the region but also offers a strategic advantage in the competitive Indian cement industry.

Saifco’s facility, spread across 54 acres, has a clinker capacity of 0.26 million tonnes per annum and a grinding capacity of 0.42 million tonnes per annum. The site also holds captive limestone reserves across 144.25 hectares, with a mineable reserve of 129 million tonnes.

This deal, which is expected to close after receiving regulatory approvals, allows JK Cement to tap into Saifco’s established infrastructure, sidestepping the time-consuming process of greenfield expansion. The acquisition will also position JK Cement to benefit from Saifco’s established market presence and supply chain.

The move signals JK Cement’s ambition to expand further in the Jammu and Kashmir market and beyond, positioning Saifco as a key regional player under JK Cement’s umbrella. The acquisition could also lead to potential job creation and greater economic opportunities for local suppliers. As part of the integration, JK Cement is expected to bring operational synergies, improving production efficiency and cost management.

This deal is seen as a model for regional consolidation in India’s growing cement industry, with JK Cement’s established brand and distribution network poised to enhance Saifco’s operations and product offerings in the region.

(Greater Kashmir)

Concrete

‘Steel’ing the Show

India’s steel industry outperforms the global outlook by far. But this necessitates a special government response, construction experts tell CW.

Published

2 days ago

February 1, 2025

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The World Steel Association projects the global demand for steel to post a modest growth of 1.2 per cent in 2025 after a 0.9 per cent decline in 2024. Contrast this with India’s 8 per cent projected growth in steel demand this year, driven by infrastructure investments, and it comes as no surprise that steel imports are rising.

In response to rising imports, the Union Ministry of Steel has proposed doubling the basic customs duty on finished steel products to 15 per cent, up from the current 7.5 per cent, notes Mrityunjay Kumar Srivastava, Head of Supply Chain Management, Tata Projects. With this move, the Government hopes to curb the influx of cheaper steel imports and bolster domestic manufacturers. While these tariffs support local industries, he points out that they also present challenges for companies like Tata Projects, saying, “Increased import costs can strain budgets and affect project timelines.”

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Concrete

WCA President Emphasises Major Changes in Global Cement Industry

In contrast, cement production in India is rapidly expanding, with more than 200 million tons produced.

Published

3 days ago

January 31, 2025

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The President of the World Cement Association (WCA), Wei Rushan, addresses members to highlight the significant transformations shaping the global cement industry. Emphasising the need for innovation, sustainability, and collaboration, he called on industry stakeholders to embrace the evolving economic, regulatory, and geopolitical challenges ahead.

“The cement industry is experiencing profound changes, with businesses managing overcapacity and upgrading, balancing sustainable development with short-term survival, and weighing social responsibility against shareholder returns,” stated Rushan. “While each region faces unique challenges, our shared focus remains on driving sustainable growth, embracing technological advancements, and tackling climate change.”

As outlined in the WCA’s recent White Paper, global cement demand is expected to decline by 22 per cent by 2050. In established markets like Europe and North America, price increases are expected to persist, while in some emerging markets, prices may experience a short-term decline. However, from a long-term perspective, we expect emerging market to remain dynamic and resilient.

Key regional developments

Multinational companies are adjusting their strategies and scaling back cement business, focusing instead on North America. Meanwhile cement production in Europe continues to decline due to strict CO2 regulations and necessary capacity reductions, driving up cement prices. Efforts to address overcapacity in China and Japan have led to significant consolidation and restructuring.

In contrast, cement production in India is rapidly expanding, with more than 200 million tons produced. Indian companies are strengthening their domestic leadership, while multinational companies are exiting this high-potential market.

Globally, regional leaders are gaining influence, except in Europe and North America, where European multinationals continue to dominate. Chinese cement producers and other independent companies are aggressively expanding, particularly in Africa and Southeast Asia, solidifying their market presence.

Addressing global challenges

Wei identifies overcapacity as a major challenge facing the industry today. As a global representative for the cement industry, the WCA is willing to work with producers and stakeholders to explore ways to modernise and upgrade outdated plants. “To remain both profitable and environmentally responsible, the cement industry must aim to reduce capacity by 50 per cent, from 4.7 billion tons to 2.3 billion tons within the next decade. This requires focusing on modern, sustainable production units.”

He also noted carbon reduction and carbon neutrality as another key challenge. Although progress has been made through Carbon Capture and Storage (CCS) technologies, Rushan acknowledged the high costs and energy intensity of these solutions.

“Cement plays a crucial role in building sustainable infrastructure,” Mr. Wei continued. “By accelerating innovation, adopting low-carbon technologies, and fostering global collaboration, we can ensure cement remains an environmentally responsible material.”

The WCA urges industry stakeholders worldwide to act now by adopting sustainable practices, embracing innovation, and redefining cement industry norms.