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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

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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