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Use of SCMs can be optimised with technology

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RS Kabra, Executive Vice President – Commercial, Wonder Cement, talks about the impact on profitability of the cement business and quality of the end product.

Tell us about the supplementary cementitious materials used by your organisation in manufacturing of cement.
The major cementitious materials used in India are fly ash and blast furnace slag. Fly ash is generated in huge volumes mainly in coal based thermal power plants and is a major hazard to the environment across the country. Slag is generated in the blast furnace of steel manufacturing plants.
We utilise fly ash as supplementary cementitious material in the manufacturing of Portland Pozzolana Cement (PPC) at all of our cement plants, as the plants are situated nearby thermal plants. With the use of fly ash as a SCM, besides contributing to environmentally friendly disposal of fly ash, we are also contributing in reduction of CO2 emission by reducing the use of thermal heat and electricity. This also leads to conserving natural mineral resources of limestone.
Blast furnace slag, another important supplementary cementitious material, is a by-product of the steel making process. The use of slag as a supplementary cementitious material is also well established in manufacturing of cement, specially in cement
plants which are located near steel plants. Our cement plants are not located near any steel plant; thus, at present we do not use slag as a supplementary cementitious material.

What are the key benefits of using supplementary cementitious materials?
The most important benefits of using SCMs in manufacturing of cement is environmentally
friendly disposal of these hazardous materials and a significant reduction in CO2 emission by savings in thermal heat, electricity, and conserving natural resources (limestone).
Substituting a cementitious material in the raw mix for cement manufacturing helps us in conserving natural minerals (limestone), thermal heat (coal), and electricity.

How does the use of supplementary materials increase the profitability of the cement manufacturing for your organisation?
Use of supplementary cementitious materials has a direct impact on the profitability of cement manufacturing companies as replacing natural limestone by SCMs results in reduced requirement of thermal heat, electricity etc.

What is the proportion of supplementary cementitious materials in the production of cement by your organisation?
The Bureau of Indian Standards guidelines permits the use of supplementary cementitious materials up to 35 per cent in PPC cement, accordingly at Wonder Cement we use up to 35 per cent fly ash in the manufacturing of Portland Pozzolana Cement.

Tell us about the quality standards and checks implemented for the final product made using supplementary materials.
In terms of quality, the end product, PPC manufactured by Wonder Cement is always substantially higher than the quality standard prescribed by the Bureau of Indian Standards (BIS) and also higher than most of the other brands of cement available in the market.
This high standard of quality of PPC manufactured by us is possible because of the adoption of the best available technology in the world, including automatic sampling, automatic testing and based on test results, automatic corrective actions, etc. There is absolutely no scope for manual errors or manual dependency in the process of cement manufacturing at WCL.
Tell us about the role of technology in deciding the proportions of SCMs.
Technology plays a very important role in producing quality cement as well as optimum use of SCMs. The processes of automatic sampling, automatic testing and automatic corrective actions play a major role in maintaining the quality of cement as well as optimum use of SCMs.

What are the major challenges you face while using supplementary materials for cement manufacturing?
There is availability of the latest technology, advanced equipment, and continuous use of technology rather than human dependency. Therefore, we do not see any challenge in using supplementary cementitious materials.

How does the use of cement made of supplementary materials impact its carbon footprint?
Fly ash is a supplementary cementitious material and is being used as part replacement of clinker in the raw mix for the production of PPC. Reduction in the use of clinker directly results in the reduction of the use of thermal heat and electricity, required in the manufacturing of clinker. The reduced use of clinker also results in conserving the natural mineral limestone as well as the energy consumed in mining the limestone.

  • Kanika Mathur

Concrete

Cement Prices to Stay Flat in Q2 FY27 as Costs Squeeze Margins

HDFC Securities warns monsoon slowdown and higher fuel costs

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HDFC Securities has said the cement industry is unlikely to register a sequential increase in prices in Q2 FY27 as monsoon-related demand moderation coincides with rising fuel and packaging costs that will squeeze margins. The brokerage observed that price gains remained modest, with increases of two to three per cent quarter-on-quarter across regions, and noted subdued offtake in May with improvement in June as a delayed monsoon supported construction activity. The brokerage added that modest pricing gains so far have been insufficient to offset the input cost escalation.

The report stated that input cost pressures intensified in Q1 FY27 owing to the West Asia conflict, which pushed up coal and pet coke prices and is expected to keep fuel costs elevated, with a likely peak in Q2 FY27. It assessed that total variable costs, including packing, could rise by around Rs 150 per t quarter-on-quarter and that lower offtake and seasonal operating deleverage could further raise operating expenditure by about Rs 50 per t quarter-on-quarter.

Overall, cement prices were estimated to remain flat in Q2 FY27 as monsoon-led demand weakness offsets limited upside in realisation, and rising fuel costs alongside seasonal deleverage were expected to compress industry margins by over Rs 100 per t quarter-on-quarter to below Rs 880 per t. The brokerage indicated that the combined impact of energy inflation and higher packing expenditure would be the principal drivers of margin contraction in the near term. HDFC Securities projected a recovery in margins in H2 FY27 should the West Asia turmoil subside and energy and packing costs cool off.

The brokerage expressed optimism on long-term demand fundamentals and said improving realisation together with an anticipated cost cool-off should support a margin rebound from H2 FY27 onward, underpinning favourable industry prospects over the medium term. Its outlook rests on monsoon normalisation and a decline in imported fuel prices in the second half of the fiscal year.

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Concrete

Dalmia Bharat Begins Rs 31 Bn Green Cement Unit in Kadapa

New Andhra Pradesh plant to add 9.6 MTPA cement capacity by FY28

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Dalmia Bharat Limited recently laid the foundation stone for its second manufacturing unit at Kadapa in Andhra Pradesh. The company will invest Rs 31 billion in developing the next-generation integrated cement manufacturing facility.
The foundation-laying ceremony was attended by Nara Lokesh, Andhra Pradesh Minister for Information Technology, Electronics and Communications, Real-Time Governance and Human Resources Development, along with Puneet Dalmia, Managing Director and Chief Executive Officer, Dalmia Bharat, senior government officials and company representatives.
Scheduled to be commissioned by the third quarter of FY28, the Kadapa unit will become Dalmia Bharat’s largest integrated manufacturing facility in southern India. It will have a clinker production capacity of 6.1 million tonnes per annum and a cement manufacturing capacity of 9.6 million tonnes per annum.
The facility is designed to produce what the company describes as one of the world’s greenest cements. It is also expected to generate approximately 1,000 direct and indirect employment opportunities while supporting local MSMEs, transporters, contractors and service providers.
Lokesh said the investment reflected Dalmia Bharat’s confidence in Andhra Pradesh and aligned with the state’s objective of promoting sustainable industrialisation, job creation and technology-led economic growth.
Puneet Dalmia said the project represented the company’s long-term vision of developing low-carbon cement manufacturing assets. He added that the facility would establish new benchmarks in operational efficiency and sustainability while supporting India’s infrastructure and environmental goals.
Dalmia Bharat will also expand its regional community development programmes in education, healthcare, skill development and welfare through its DIKSHa and Gram Parivartan initiatives.
The company currently has an installed cement manufacturing capacity of 54.7 million tonnes across 19 manufacturing units in 12 states. It is also the first cement company globally to commit to the RE100, EP100 and EV100 initiatives.

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Concrete

Nuvoco Inaugurates Limla Cement Plant in Surat

Acquisition boosts Western India cement capacity

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Nuvoco Vistas Corporation Limited inaugurated the Limla Cement Plant in Surat, Gujarat, marking a key milestone in its acquisition and revival of Vadraj Cement Limited.

The company completed the acquisition of Vadraj, which had been undergoing a corporate insolvency resolution process, by discharging a consideration of Rs 18 billion (bn) in June 2025. Vadraj’s asset base includes a clinker unit at Kutch and a grinding unit at Limla, along with high quality captive limestone reserves and a captive jetty at Kutch that enhance logistics efficiency.

Since taking over the assets, Nuvoco has undertaken revival, refurbishment and expansion across both sites, culminating in the opening of the Limla facility. The grinding unit at Limla achieved project completion ahead of schedule with the commissioning of two million tonnes per annum (mn t per annum) grinding capacity, further expanding the company’s scale and market reach.

Upon full operationalisation of the Vadraj assets, nearly 40 per cent of Nuvoco’s total cement capacity will be accounted for by plants in the North and West regions, supporting improved access to high growth markets. The plant is expected to support a phased volume ramp up in Gujarat and to serve adjoining markets in western Maharashtra while releasing northern capacities for other markets.

It will produce a complete portfolio of cement products including Ordinary Portland Cement, Portland Slag Cement, Portland Pozzolana Cement and Portland Composite Cement, and will offer the Duraguard range including the premium Duraguard Microfibre. The transaction is set to create synergies with Nuvoco’s existing manufacturing facilities at Nimbol and Chittorgarh, strengthening logistics optimisation and market access across key regions.

Nuvoco reported total income of Rs 113.62 billion (bn) in FY 2025-26 and stated it is on track to consolidate total cement capacity to 35 million tonnes per annum (mn t per annum) by FY2028. The company operates across cement, ready-mix concrete and modern building materials segments and highlighted a pan-India ready-mix presence alongside contributions to major infrastructure projects. Corporate communications contact details were provided by the company.

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