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Growth and Equilibrium

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Ujjwal Parwal, Director and Founder, RationalStat, underscores the importance of a balance between economic growth and sustainability, as the cement industry takes the challenge of technology and innovation head on.

Emphasising the critical role of a well-established infrastructure network in the pursuit of India’s ambitious US$ 5 trillion economic targets, India is making substantial investments in large-scale projects aimed at bolstering economic resilience and unlocking new avenues for investments. India is experiencing rapid growth through improved connectivity, enhanced logistics, and the initiation of residential and commercial projects to meet both present and future needs. Key development projects like the Bharatmala project, Delhi-Mumbai Industrial Corridor, PM Gati Shakti and others are driving this growth.
However, this expansion of infrastructure is taking place against a backdrop of increasing concerns about climate change, making it essential to strike a balance between economic development and sustainability. Cement, a critical component of all infrastructure projects and the foundation of construction is poised to experience a significant surge in demand. Achieving the right equilibrium between economic growth and sustainability necessitates the incorporation of innovation and technology to make the cement manufacturing process more environmentally friendly.

Market Scenario
Between 2012 and 2023, the installed cement production capacity grew by 61 per cent to 570 MT from 353 MT. The Indian cement sector’s capacity is expected to expand at a compound annual growth rate (CAGR) of 4-5 per cent over the five-year period up to the end of 2028. The expected cement production capacity in 2028 will be nearly 720 MT. In addition, India’s cement production in 2024 is expected to grow by 7-8 per cent driven by infrastructure-led investment and mass residential projects. Cement consumption in India grew at a considerable CAGR of 5.7 per cent from 2016 to 2022. As per RationalStat research reports, the Indian cement industry is likely to add 82 million tonnes by 2024, the highest in the last 10 years, driven by increasing spending on housing and infrastructure activities. Cement consumption is expected to reach 480 million tonnes by the end of 2028.

Challenges and Opportunities
At present, India is witnessing significant infrastructure development, with a concurrent rise in housing demand. Consequently, Moody’s predicts that cement production in India will increase by approximately 6-8 per cent over fiscal years 2023 and 2024. The housing sector, which typically accounts for 60-65 per cent of India’s cement consumption, remains a central driver of demand. Therefore, the challenge lies in enhancing the cleanliness, efficiency and sustainability of the cement manufacturing process through innovation and technology.
India is the second largest producer of cement in the world, and the cement sector is a major contributor to the country’s greenhouse gas (GHG) emissions. However, the Indian cement industry is also taking steps to reduce its environmental impact through the adoption of new technologies. The cement industry is one of the largest industrial emitters of greenhouse gases (GHGs), accounting for around 7 per cent of global CO2 emissions. This is due to the energy-intensive process of cement production, which involves heating limestone and clay to over 1400 degrees Celsius.
The shift towards sustainable cement manufacturing is also pressing, given that cement production is one of the highest-emitting industries globally, contributing to 7 per cent of global CO2 emissions. It is one of the most widely used products worldwide, with applications ranging from residential to urban construction, making it indispensable for societal progress. Hence, swift adoption of sustainable practices is necessary to mitigate environmental impact and contribute to achieving sustainability targets, such as India’s goal of becoming carbon-neutral by 2070.

Role of Technology
Incorporating innovation and technology is the key to making cement production in India more environmentally friendly. Cement manufacturers must play a dual role by supporting India’s economic growth by meeting cement demand and contributing to the sustainability mission by ensuring minimal environmental impact of cement production. Strategies may include the integration of waste heat recovery systems to meet energy demands sustainably, reducing electricity requirements, investing in high-efficiency coolers and preheaters to minimise kiln heat requirements and transitioning to clean energy sources like solar or wind energy.

The Road Ahead
Cement manufacturers can also explore waste-to-fuel conversion processes and the implementation of carbon capture, utilisation and storage methods, which involve capturing CO2 emissions and either storing them or using them to produce chemicals, concrete or plastics, thereby promoting a circular economy.

Cement plants must use digitalisation and
technological advancement, accelerating the
adoption of technologies such as robotics, artificial
intelligence, IoT, data analytics and other innovations
to expedite sustainability efforts like process
optimisation, higher efficiency, enhanced visibility
and control over operations


Here are some cement producers in India with sustainability goals:
UltraTech Cement: UltraTech Cement is committed to reducing its carbon footprint and increasing its use of renewable energy. The company has set a target to reduce its CO2 emissions by 33 per cent by 2030. UltraTech Cement is also investing in waste heat recovery systems and geopolymer concrete.
Dalmia Bharat Cement: Dalmia Bharat Cement has set a target to achieve net-zero emissions by 2040. The company is investing in carbon capture and storage (CCS) technologies, waste heat recovery systems, and renewable energy. Dalmia Bharat Cement is also using supplementary cementitious materials (SCMs) to reduce the clinker content of cement.
Shree Cement: Shree Cement is committed to reducing its environmental impact and promoting sustainable development. The company has set a target to reduce its water consumption by 20 per cent by 2030. Shree Cement is also investing in renewable energy and waste management.
Ambuja Cements: Ambuja Cements is committed to reducing its carbon footprint and promoting sustainable development. The company has set a target to increase its use of renewable energy to 25 per cent by 2030. Ambuja Cements is also investing in waste heat recovery systems and geopolymer concrete.
ACC Limited: ACC Limited is committed to reducing its environmental impact and promoting sustainable development. The company has set a target to reduce its carbon footprint by 33 per cent by 2030. ACC Limited is also investing in renewable energy and water conservation.
These are just a few examples of cement producers in India with sustainability goals. Many other cement companies in India are also taking steps to reduce their environmental impact and promote sustainable development. In addition to the companies listed above, a number of startups in India are also working to develop and commercialise sustainable cement technologies.
One of the most effective ways to reduce GHG emissions from cement production is to improve energy efficiency. This can be done by using more efficient kilns, preheaters, and other equipment.
For example, some cement companies are now using waste heat recovery systems to capture heat from the kiln and use it to generate electricity or preheat the raw materials. Others are using alternative fuels, such as biomass, to reduce their reliance on fossil fuels.
Reducing clinker content: Clinker is the main component of cement, and it is also the most energy-intensive to produce. By reducing the clinker content of cement, cement companies can significantly reduce their GHG emissions.
One way to reduce clinker content is to use supplementary cementitious materials (SCMs), such as fly ash, slag, and silica fume. SCMs are industrial waste products that can be used to replace a portion of the clinker in cement without sacrificing performance.
Another way to reduce clinker content is to use new cement formulations. For example, some cement companies are now developing low-carbon cement that uses less clinker and more SCMs.
Capturing and storing carbon emissions: Carbon capture and storage (CCS) is a technology that can be used to capture carbon dioxide emissions from industrial processes and store them underground. CCS is a key technology for achieving net-zero emissions in the cement industry.
A number of cement companies are currently piloting and deploying CCS technologies. For example, HeidelbergCement is developing a CCS project at its Nordkalk plant in Finland. The project is expected to capture and store over 800,000 tonnes of CO2 per year once it is operational.
The geopolymer concrete market in India is in its early stages of development, but it is growing rapidly. The Indian government’s support for geopolymer concrete products is likely to boost the growth of the market in the coming years.

Geopolymer concrete products have a number of benefits over traditional concrete products, including a lower carbon footprint, increased durability, and improved performance. Geopolymer concrete products can be used in a wide range of applications, including construction, precast products, refractory materials, and soil stabilisation.
For example, FlyAsh Solutions and Geopolymer Solutions are developing and manufacturing geopolymer concrete products.
The Indian cement industry is taking steps to reduce its environmental impact and promote sustainable development. By adopting new technologies and investing in renewable energy, the Indian cement industry can play a leading role in driving global sustainability.

Driving Sustainability
Technology is playing a vital role in driving sustainability in the cement sector. Cement companies are investing heavily in new technologies to improve energy efficiency, reduce clinker content and capture and store carbon emissions.
In the face of growing demand, the cement industry is at a pivotal juncture where it must address environmental concerns associated with manufacturing, including reducing energy consumption, emissions, and increasing sustainability. The industry must emerge as a key contributor to creating a cleaner and greener future by leveraging innovation and technology to help India achieve its sustainable development goals more rapidly.

ABOUT THE AUTHOR:
Ujjwal Parwal, Director and Founder, RationalStat,
has over 10 years of industry experience in global market research and procurement intelligence. HE is a skilled market researcher and helps growth-driven organisations and entrepreneurs understand market entry prospects, and industry assessment, and grow their revenue strategically.

Concrete

India’s Cement Sector Cuts Energy Use, but Worker Safety Worsens

iFOREST finds efficiency gains alongside water and safety concerns

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India’s cement sector has improved its energy and carbon efficiency, but rising groundwater use in water-stressed regions and deteriorating worker safety remain significant concerns, according to a report by the International Forum for Environment, Sustainability & Technology (iFOREST). The findings also highlighted weak policy implementation and gaps in sustainability reporting.

India, the world’s second-largest cement producer, uses about 2.54 gigajoules of energy per tonne (GJ/t), below the global average of 2.88 GJ/t. However, renewable sources accounted for only 5.1 per cent of the sector’s energy mix, indicating continued dependence on conventional sources.

The report assessed 18 cement companies against 107 Business Responsibility and Sustainability Reporting indicators for FY24 and FY25. The companies covered 87 per cent of India’s cement production. Carbon emissions intensity declined from 0.58 to 0.57 tonnes of carbon dioxide per tonne, but total emissions increased 4 per cent to 224.3 mn t, equivalent to about 6 to 7 per cent of India’s overall emissions.

Overall water withdrawal declined 9.5 per cent during the study period, while withdrawals in water-stressed areas, mainly in Rajasthan, increased by more than 20 per cent. Groundwater’s share of withdrawals in these areas rose from 27 per cent to 38 per cent, raising concerns about the sector’s impact on vulnerable water resources.

The sector employs about 228,000 people, including 63 per cent contractual workers, 3.1 per cent women and 0.07 per cent persons with disabilities. Women in key managerial roles earned 26.8 per cent less than men, while median pay for women workers fell 11.1 per cent in FY25 as men’s pay increased. Worker injuries rose 36.5 per cent to 359, and fatalities increased from 17 to 22, with workers accounting for more than 90 per cent of deaths.

iFOREST recommended cement-specific reporting guidance, standardised metrics, mandatory production disclosure and third-party verification. It also called for environmental, social and governance policies to be integrated into business strategies and implemented more effectively on the ground.

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Concrete

Ambuja Cements Expects Volume Growth to Outpace Industry in H2

Ambuja Cements sees stronger trade and institutional demand in H2 FY27.

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Ambuja Cements expects its sales volumes to grow faster than the cement industry during the second half of fiscal year 2027, as it seeks a recovery in institutional demand after a weak first half. The Gautam Adani-owned company is aiming to rebuild volumes while protecting profitability.

The company reported a 90 per cent year-on-year decline in consolidated net profit attributable to owners of the parent to Rs. 1.93 bn for the quarter ended 30 September, from Rs. 17.74 bn a year earlier. The previous year’s profit included a reversal of income-tax provisions worth Rs. 16.97 bn. Revenue from operations rose marginally to Rs. 91.66 bn from Rs. 91.3 bn.

Trade volumes increased 8.6 per cent year-on-year in the September quarter, but weaker institutional sales left overall volumes broadly unchanged. Ambuja Cements expects both trade and institutional sales to turn positive in the third and fourth quarters. Trade sales are made through dealers and distributors, while institutional or business-to-business sales involve bulk supplies to infrastructure developers, government projects and real estate companies.

The company had earlier reduced institutional sales that did not generate adequate returns. It now plans to rebuild the business selectively, while continuing to prioritise trade sales and higher-value products. Trade accounted for 74 per cent of sales in the quarter, up six percentage points from a year earlier, while premium products increased to 37 per cent of trade sales from 35 per cent. Blended cement’s share rose to 82 per cent from 77 per cent.

Ambuja Cements commissioned 4.6 mn t of capacity during the quarter. Another 3.2 mn t at Bathinda in Punjab and Jodhpur has stabilised, with the facilities expected to ramp up in the second half. A further 2.4 mn t facility at Varkala in Bihar is scheduled for commissioning during the period. Higher fuel and logistics costs remain a challenge, while the company has realised a cement price increase of about Rs. 10 per bag in October and is targeting operating costs of Rs. 4,250 per t for the full year.

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Concrete

JK Lakshmi Cement Begins Rs 110 Billion Assam Plant Project

The 2.5 MTPA integrated cement plant is expected to be completed by FY2029.

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JK Lakshmi Cement has recently laid the foundation stone for Project Kamakshi, its first integrated cement manufacturing facility in Assam, marking its entry into Northeast India. The groundbreaking ceremony was held at Umrangso village in Dima Hasao district in the presence of Assam Chief Minister Himanta Biswa Sarma.
The project involves an investment of Rs 110 billion, including the mining lease, and will have an annual cement production capacity of 2.5 million tonnes, supported by a 1 million tonne clinkerisation unit. Scheduled for completion by FY2029, the facility is expected to generate employment for over 2,000 people while catering primarily to the growing Northeast market.
The integrated plant will feature dedicated railway sidings to facilitate efficient transportation of raw materials and finished cement, strengthening supply chain reliability and regional distribution.
Vinita Singhania, Chairperson and Managing Director, JK Lakshmi Cement, said, “”Project Kamakshi is the start of a long-term relationship with Assam and the wider North East. This is a region that is building fast, and it deserves quality cement made close to home. With this plant, we want to bring scale, jobs, and dependable supply to the region. At JK Lakshmi Cement, we believe that building a stronger India goes beyond infrastructure. It is also about growing together with the communities we serve.””
The investment aligns with the company’s strategy to expand into high-growth markets beyond its established presence in Northern, Western and Eastern India. The project is also expected to support regional economic development and infrastructure growth.
JK Lakshmi Cement aims to pursue its expansion plans while working towards its long-term target of achieving net-zero emissions by 2047.

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