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Indian Cement Industry Set to Build 100-150MT Capacity

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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.

Concrete

Cement Makers’ Margins To Fall Rs 50-75 Per Tonne Amid West Asia Conflict

Crisil Sees Margins Easing Despite Steady Demand

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Crisil said operating margins of Indian cement manufacturers are expected to decline by Rs 50-75 per tonne (t) this fiscal to Rs 925-950 per t due to higher input costs triggered by the West Asia conflict. The analysis covered 18 cement companies accounting for nearly 90 per cent of India’s domestic cement capacity and noted margins had improved sharply to around Rs 1,000 per t in fiscal 2026.

Crisil noted that the reduction would be driven mainly by higher power and fuel costs, which account for about 30 per cent of total costs, as petcoke and imported coal prices have surged amid geopolitical uncertainties. Freight costs, which account for about a quarter of total costs, are also expected to remain elevated because of higher diesel prices. The impact on profitability is likely to be more pronounced in the first half of the fiscal year before easing commodity prices moderate cost pressures later.

The rating agency said steady domestic demand and strong balance sheets should keep credit profiles stable despite the moderation in margins. Green energy currently accounts for 35-40 per cent of the sector’s total electricity consumption and is expected to partly cushion higher energy costs. Operating cash flows are likely to remain resilient, supported by projected 6-7 per cent growth in cement demand this fiscal.

Crisil highlighted that demand growth will be driven primarily by infrastructure spending, which meets about one-third of sector consumption, and by a nearly 18 per cent higher budgetary allocation for core ministries that should support project execution. Weaker rural housing demand amid pressure on agricultural incomes from a possible below-average monsoon may be offset by improved urban housing demand supported by favourable home-loan rates and a strong pipeline of Pradhan Mantri Awas Yojana-Urban projects. Ongoing capacity additions will keep capital expenditure elevated and may lift net debt to EBITDA to between 1.2 and 1.4 times from around 1.0 time last fiscal, though ratios are expected to remain healthy.

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Concrete

UltraTech Board Approves Rs 50 bn Fundraise Via NCDs

Company to issue half a million debentures for expansion plan

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UltraTech Cement’s board of directors has approved raising Rs 5,000 crore (Rs 50 bn) through non?convertible debentures issued in rupees.

The finance committee cleared a proposal to issue up to 500,000 fully paid, unsecured, listed, rated, redeemable, rupee?denominated, non?convertible, non?cumulative debentures of Rs 1 lakh each (Rs 0.1 mn each), aggregating to the Rs 5,000 crore programme.

As of June 2026 the firm reported net debt of Rs 15,875 crore (Rs 158.75 bn) and said its capacity expansion projects under execution are backed by capital expenditure of about Rs 17,000 crore (Rs 170 bn) over the next two to two?and?a?half years.

UltraTech spent Rs 9,500 crore (Rs 95 bn) on capital expenditure in financial year 2026 and in April the group crossed 200.1 mn tonnes per annum of domestic grey cement capacity and 205.5 mn tonnes per annum of global capacity.

The chief financial officer indicated the company would take consolidated capacity beyond 242 mn tonnes per annum, with grey cement capacity reaching 212.7 mn tonnes per annum by the end of financial year 2027. He noted the net debt?to?earnings before interest, taxes, depreciation and amortisation ratio stood at 0.87 times as of June 2026 and the company was confident of ending financial year 2027 with the ratio below one time.

In the first quarter of financial year 2026?27 UltraTech’s net profit attributable to owners rose 16.8 per cent year?on?year to Rs 2,599.3 crore (Rs 25.993 bn) and revenue from operations increased 15.9 per cent to Rs 24,648.20 crore (Rs 246.482 bn). The board approval is expected to complement internal cash flows as the company advances its expansion programme.

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Concrete

Lokesh Lays Stone For Rs 31 Billion Cement Unit In Kadapa

Line-2 expansion to make Kadapa a major cement hub

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Andhra Pradesh Education and IT Minister Nara Lokesh on Wednesday laid the foundation stone for the Line-2 expansion of Dalmia Bharat Cement at Chinnakomerla village in Mylavaram Mandal in Kadapa district. The project carries an investment of Rs 31 billion (bn) and is slated for completion by the third quarter of the financial year 2028. The expansion is intended to boost industrial growth and employment generation across the Rayalaseema region.

Once commissioned, the Kadapa facility will become Dalmia Bharat’s largest integrated cement manufacturing ecosystem in southern India, creating over 1,000 direct and indirect jobs and opening new business avenues for regional micro, small and medium enterprises and transport operators. Lokesh said the expansion signalled growing corporate confidence in the state and reflected the practical ease of doing business that secured repeat investment.

He placed the project within the government’s wider economic targets and recalled the Yuvagalam padayatra commitment to generate two million (mn) jobs within five years, noting that the state would cultivate talent while industry created opportunities. Lokesh highlighted Andhra Pradesh’s competitive pursuit of major manufacturing accounts, mentioning past successes and a personal initiative to engage global investors when persuading them to anchor expansion in the state.

The plant will leverage Kadapa’s abundant limestone reserves to scale production and sustainability. Clinker capacity is planned to rise from two point five million tonnes per annum (mn tpa) to six point one mn tpa, while overall cement output will increase from three point six mn tpa to nine point six mn tpa. The unit is designed to operate on over eighty per cent renewable energy and deploy waste heat recovery, zero liquid discharge, water recycling and advanced AI systems to optimise efficiency. Industries Minister TG Bharat, BC Welfare Minister S. Savitha and Jammalamadugu MLA C. Adinarayana Reddy attended the ceremony.

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