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Leading the Green Revolution

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Ajay Kapur, CEO – Cement Business, Adani Group, explores India’s proactive measures, from embracing renewable energy and waste heat recovery to reducing clinker usage and innovatively repurposing industrial by-products, signaling a promising shift towards sustainable cement manufacturing.

Imagine a world without cement – it’s almost like picturing a skyline without its defining structures. As one of the most commonly used building materials, the manufacturing of cement faces significant challenges in decarbonising. Tackling this challenge goes beyond the ordinary, considering that the cement sector is a major player, contributing up to 7-8 per cent of global greenhouse gas emissions. The significance of this issue is particularly pronounced for India, as we currently hold the dual status of the world’s second-largest producer and consumer of cement. The production capacity of the Indian cement sector is poised to grow to more than 700 million tonnes (MT) over the next five years from around 570 MT now. Consumption on the other hand is also set to grow to 450 MT by 2027.
As the Indian economy expands and continues on this growth path to reach $5 trillion in GDP in the near term and emerge as the world’s third largest economy before the end of the current decade, the environmental challenges will also become more formidable.
Most large cement manufacturers in India have already committed to becoming carbon neutral sometime around the middle of this century and this is also going to contribute to India’s Net Zero ambition set for 2070. The road ahead for Indian cement manufacturers is very similar to what the energy sector faces. India’s economic turnaround that started in 1991 also brought home conversations around the rising and unprecedented levels of consumption of energy to fire up the economy, putting the country under the environmental spotlight, too. Cement production is not only energy intensive but also depends on natural mineral resources. The widespread adoption of well-understood and sustainable cement production practices has been a gradual process, gaining momentum over time. Today, the Indian cement sector is ready to meet sustainability challenges head-on through a whole range of measures that covers the entire value chain in cement manufacturing, leading all the way to increasing the share of green cement on the demand side.

Alternative fuel and raw materials
Being an energy-intensive sector, cement manufacturers have started investing in cleaner sources of energy like solar and wind as captive generation units to run their plants. This shift in no small measure is supported by the falling cost of renewable energy India. Between 2010 and now, the cost of solar modules in India have dropped by more than 80 per cent, making it one of the most sought after sources of clean energy for large industrial units including cement. Similar efforts are also on to move finished cement, packed and bulk on more sustainable or green logistics like soya extract-based biofuel powered shipping. Bulk terminals and grinding units along India’s long coastline can enable the movement of clinker and cement through the sea route at the lowest possible cost.
The share of green energy is further enhanced through investments in Waste Heat Recovery Systems (WHRS). These systems not only adhere to the principles of the circular economy but also result in fossil fuels savings. This not only nurtures a more cost-efficient process but also directly impacts the bottom line.
According to the Ministry of New and Renewable Energy (MNRE), the Indian cement Industry has the highest potential to adopt WHRS as an alternative to conventional sources of energy. WHRS installations will continue to grow along with the increase in capacity to manufacture cement, bringing it close to 1.3 GW at current production capacity levels. It is estimated that WHRS would help replace the energy requirement equivalent to 8.6 million tonnes of coal, resulting in emissions savings of 12.8 million tonnes of CO2 by the Indian cement manufacturers.
Cement manufacturers are also cutting down on the ‘clinker factor’ by replacing them with industrial by-products without compromising the quality (strength) of the cement. Cutting down the clinker factor offers two immediate benefits. One, it reduces energy consumption because clinker is produced at ~1400°C (from limestone etc.,) and two, it also softens the environmental impact of by-products like flyash, slag and silica fumes. Manufacturing a tonne of Ordinary Portland cement also releases around 800 kg of CO2. Investments are also made in recycling massive quantities of municipal waste into Refuse Derived Fuel or RDF through its pre- and co-processing facilities, which is then used as energy to run cement kilns. The impact of producing and using RDF not only saves on energy from conventional sources but also helps large cities manage municipal waste in a safe manner. Mega cities like Mumbai are now working with cement companies to manage municipal waste through a symbiotic relationship that benefits manufacturers and city administrators.
Red mud, a waste derived from aluminium production, is also now used in the cement manufacturing process as an alternative raw material. Again, this helps build a circular economy through utilisation of aluminium industry’s by-products in an environmentally sound manner. Other large industrial sectors like pharmaceuticals also tapped for zero residue of their process waste and ETP sludge. Similarly cement manufacturers are also able to process hazardous wastes released by the automobile and automobile ancillary sector such as chromium, zinc and paint sludge, oil residue and cotton waste.
Water management is yet another area that is making cement manufacturing in India more sustainable. Apart from becoming water positive (returning more water than what is consumed) from an operations point of view, a lot is also being done under the larger banner of CSR where cement manufacturers are now active participants in water conservation projects, working along with local rural communities including farmers. Large cement manufacturers in India are also working on conserving biodiversity in their areas of operations including large afforestation projects, which helps in strengthening the water table.

Conclusion
India today has a very robust legislative mechanism to ensure that industrial sectors like cement abide by environmental laws. But cement manufacturers, recognising the growing environmental consciousness among consumers, are actively pursuing higher benchmarks to minimise burden on environmental damage. With the growing consumer centricity that has moved cement from being a commodity to a branded consumer product, manufacturers are now able to offer sustainability as part of the brand value and appeal. Green cement as a product in India is still in its nascent stage with a miniscule share in the overall market. It is expected to grow in coming years as sustainability is an important factor for today’s buyers.
Today’s well-informed consumers also expect manufacturers to play a more responsible role in protecting the environment through sustainable manufacturing practices. The transformation of the Indian cement sector has only begun.

ABOUT THE AUTHOR:
Ajay Kapur, CEO – Cement Business, Adani Group
has over 30 years of expertise in the cement, construction, power and heavy metals sector. He has been extensively involved in several business forums, such as CII, FICCI, and ASSOCHAM.

Concrete

Construction Costs Rise 11% in 2024, Driven by Labour Expenses

Cement Prices Decline 15%, But Labour Costs Surge by 25%

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The cost of construction in India increased by 11% over the past year, primarily driven by a 25% rise in labour expenses, according to Colliers India. While prices of key materials like cement dropped by 15% and steel saw a marginal 1% decrease, the surge in labour costs stretched construction budgets across sectors.

“Labour, which constitutes over a quarter of construction costs, has seen significant inflation due to the demand for skilled workers and associated training and compliance costs,” said Badal Yagnik, CEO of Colliers India.

The residential segment experienced the sharpest cost escalation due to a growing focus on quality construction and demand for gated communities. Meanwhile, commercial and industrial real estate remained resilient, with 37 million square feet of office space and 22 million square feet of warehousing space completed in the first nine months of 2024.

“Despite rising costs, investments in automation and training are helping developers address manpower challenges and streamline project timelines,” said Vimal Nadar, senior director at Colliers India.

With labour costs continuing to influence overall construction expenses, developers are exploring strategies to optimize operations and mitigate rising costs.

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Concrete

Swiss Steel to Cut 800 Jobs

Job cuts due to weak demand

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Swiss Steel has announced plans to cut 800 jobs as part of a restructuring effort, triggered by weak demand in the global steel market. The company, a major player in the European steel industry, cited an ongoing slowdown in demand as the primary reason behind the workforce reduction. These job cuts are expected to impact various departments across its operations, including production and administrative functions.

The steel industry has been facing significant challenges due to reduced demand from key sectors such as construction and automotive manufacturing. Additionally, the broader economic slowdown in Europe, coupled with rising energy costs, has further strained the profitability of steel producers like Swiss Steel. In response to these conditions, the company has decided to streamline its operations to ensure long-term sustainability.

Swiss Steel’s decision to cut jobs is part of a broader trend in the steel industry, where companies are adjusting to volatile market conditions. The move is aimed at reducing operational costs and improving efficiency, but it highlights the continuing pressures faced by the manufacturing sector amid uncertain global economic conditions.

The layoffs are expected to occur across Swiss Steel’s production facilities and corporate offices, as the company focuses on consolidating its workforce. Despite these cuts, Swiss Steel plans to continue its efforts to innovate and adapt to market demands, with an emphasis on high-value, specialty steel products.

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Concrete

UltraTech Cement to raise Rs 3,000 crore via NCDs to boost financial flexibility

UltraTech reported a 36% year-on-year (YoY) decline in net profit, dropping to Rs 825 crore

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UltraTech Cement, the Aditya Birla Group’s flagship company, has announced plans to raise up to Rs 3,000 crore through the private placement of non-convertible debentures (NCDs) in one or more tranches. The move aims to strengthen the company’s financial position amid increasing competition in the cement sector.

UltraTech’s finance committee has approved the issuance of rupee-denominated, unsecured, redeemable, and listed NCDs. The company has experienced strong stock performance, with its share price rising 22% over the past year, boosting its market capitalization to approximately Rs 3.1 lakh crore.

For Q2 FY2025, UltraTech reported a 36% year-on-year (YoY) decline in net profit, dropping to Rs 825 crore, below analyst expectations. Revenue for the quarter also fell 2% YoY to Rs 15,635 crore, and EBITDA margins contracted by 300 basis points. Despite this, the company saw a 3% increase in domestic sales volume, supported by lower energy costs.

In a strategic move, UltraTech invested Rs 3,954 crore for a 32.7% equity stake in India Cements, further solidifying its position in South India. UltraTech holds an 11% market share in the region, while competitor Adani holds 6%. UltraTech also secured $500 million through a sustainability-linked loan, underscoring its focus on sustainable growth driven by infrastructure and housing demand.

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