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Concrete

Cementing a Greener Future

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Udai Singh, Vice President – Power Systems, Greater India, Schneider Electric, discusses the collaborative efforts undertaken by the industry for sustainable manufacturing operations.

A s the second-largest cement producer worldwide, India is experiencing a surge in demand, driven by rapid infrastructure development and residential expansion. In response to the pressing climate change concerns, the country is taking proactive measures and aligning its progress with sustainable practices. With a clear objective of achieving a net-zero economy by 2070, the cement industry plays a pivotal role in this transformative journey, necessitating a shift towards sustainable cement manufacturing through robust decarbonisation strategies and collaborative endeavours.
The global cement industry accounts for 7-8 per cent of the world’s carbon emissions. This is largely because cement production is a complex and highly energy-intensive process. The industry’s heavy reliance on coal for energy needs significantly contributes to elevated carbon emissions. This makes it critical for this industry to adopt a decarbonisation roadmap supported by technology, innovation and collaboration.

Collaboration for sustainability
Formulating a well-defined decarbonisation strategy in collaboration with expert consultants is crucial for cement companies to address operational challenges and identify key areas for emission reduction and energy efficiency. With a tailor-made decarbonisation roadmap, they can expedite the realisation of their emission reduction and energy efficiency targets. This approach involves benchmarking their facilities against industry peers on critical parameters, such as energy efficiency, carbon footprint reduction, adoption of renewable energy sources, minimising fossil fuel reliance and embracing sustainable practices. By diligently tracking their decarbonisation efforts through benchmarking, cement makers can gain valuable insights and knowledge, leading to better resource allocation, optimisation of energy-intensive processes and adoption of efficient practices for overall carbon reduction.
Also, considering the urgency to switch to renewable energy sources and reducing dependency on coal, the cement makers can use technology solutions with the help of technical sustainability experts to simulate the best mix of alternative fuels including biofuels, municipal waste, etc. Process Simulation can empower them to identify optimal combinations, reduce costs and gain flexibility in fuel choices, thereby minimising environmental impact and fortifying their resilience against market fluctuations and supply chain volatilities.
In addition, a decarbonisation strategy leveraging technological solutions not only enhances manufacturing efficiency but also extends to related operations. For instance, they can reduce idle hours of heavy earth-moving machinery to reduce energy demand and gain cost advantages. Moreover, deploying advanced digital solutions offers them better management and monitoring of the machinery with effective scheduling of equipment. Additionally, process optimisation and real-time dynamic simulations across various parameters within the facility lead to higher operational efficiency, reduced clinker to Cement ratio, reduced fuel and thermal energy consumption, predictive maintenance, and proactive issue detection of alternative fuels and raw material feed availability.

Beyond decarbonisation
While reducing carbon footprint is one of the primary objectives of sustainable cement manufacturing, cement manufacturers can gain a multitude of benefits from it. For instance, achieving sustainability in operations results in higher energy efficiency and reduced energy consumption. This massively lowers operational costs for cement companies and ultimately might result in reduction in prices of their end products, making them more competitive and resilient in the market.
Moreover, the surge in consumer awareness surrounding sustainable practices has elevated the significance of sustainable manufacturing. In today’s landscape, consumers are increasingly drawn to products with minimal environmental impact. Thus, by adopting sustainable practices, cement companies can align their offerings with consumer preferences, gaining a significant business advantage.
In addition to consumer preferences, fostering collaboration with technology partners paves the way for accelerated innovation and the deployment of cutting-edge technologies. This collaborative approach propels the cement industry towards greener production methods and reinforces its position at the forefront of the sustainability mission. By executing a robust decarbonisation strategy guided by collaborative efforts, the cement industry plays a pivotal role in supporting the transition towards a low-carbon future. The benefits of sustainable cement manufacturing extend well beyond reducing carbon emissions. Energy efficiency, cost savings, consumer appeal, and technological innovation all converge to enhance the industry’s overall environmental stewardship and competitiveness in the pursuit of a greener and more sustainable future.

ABOUT THE AUTHOR
Udai Singh, Vice President – Power Systems, Greater India, Schneider Electric
is a a seasoned business leader with extensive experience in sales, marketing, and operational management.

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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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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