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We are committed to a sustainable low-carbon future

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Sudhir Pathak, Head – Central Design and Engg (CDE), QA, Green Hydrogen, Hero Future Energies, talks about empowering India’s hard-to-abate industries with innovative renewable energy technology.

How is Hero Future Energies contributing to reducing emissions in hard-to-abate sectors like cement manufacturing, and what role does renewable energy play in this effort?
Today, Hero Future Energies (HFE) is no longer simply a renewable energy (RE) provider but has transformed into an end-to-end Net Zero partner especially for construction and infrastructure clients in the hard-to-abate sectors. In addition to providing Scope 2 based solutions, such as behind the meter RE (rooftop and ground mount solar) and open access-based RE including developing RE-100 roadmaps we also support Scope 1 and 3 emission decarbonisation by providing complete turnkey solutions through the use of green hydrogen and its derivatives. For hard-to-abate sectors like cement, HFE is in advanced discussions with few leading players, regarding enabling decarbonisation of their heating applications such as pre-calciners, rotary kilns etc through green fuels. This supplements our Scope 2 solutions for the cement industry.

With HFE’s focus on clean technologies like green hydrogen and energy storage, how do you envision these innovations helping the cement industry reduce its carbon footprint?
The cement industry is one of the largest consumers of grid power (Scope 2) and also a guzzler of in-process fossil CO2 (Scope 1) including process-based CO2 through limekilns. In the case of Scope 2, decarbonisation can be achieved only up to 50 per cent to 60 per cent through plain hybrid solar and wind. However, for achieving balance 40 per cent, storage is essential, be it chemical or mechanical. Today, HFE is ready to provide such bespoke storage solutions as is evident through several complex RTC tenders that we have won in the last 6-8 months floated by agencies like SECI, NTPC and SJVN. These include tenders for FDRE projects, peak power, load following, etc. Further, regarding green hydrogen and its derivatives, we are ready to apply these for decarbonising industrial heating and mobility (Scope 1 and 3).

What are some of the biggest challenges you face when working with the cement sector to integrate renewable energy solutions and reduce emissions?
Deployment of renewable energy for mitigating Scope 2 emissions is relatively easy, except for RE behind the meter, looking at the high dust levels involved in cement production particularly in the crushers. Regarding Scope 1 decarbonisation, there are several challenges. Unlike in Europe, the majority of the Indian cement industry uses coal combustion in heating applications. This being a solid fuel, is suitable for horizontal rotary kilns and needs positive pressures for combustion processes, whereas, green hydrogen, being the lightest of molecules, are good and amenable, when working in vertical combustion shafts. Therefore, existing facilities may be used only partially, and for complete conversion, new installations will be needed. This will entail a significant amount of space inside the plants, which is currently scarce.

HFE has been involved in pioneering projects like hybrid power and energy storage. How do these technologies improve energy efficiency and lower emissions in industries like cement manufacturing?
Cement industry by its nature has a 24×7 duty cycle demand for electricity. Therefore, solar power by itself can’t be a perfect solution, the sector needs round-the-clock RE. While hybrid RE (a right mix of solar and wind), can help to an extent (better than only solar), we will still have to depend on storage to provide predictable supply of electricity, or what is termed as ‘Firm Dispatchable’ RE. In such cases, storage can be provided either through batteries like Li Ion, Sodium Ion, Metal Air or Pumped Hydro and Long Duration Energy Storage (LDES) mechanisms.

How does HFE address the intermittency issues of renewable energy, ensuring a stable and reliable energy supply to cement plants while minimising emissions?
As explained above, this can be resolved through appending storage solutions. However this needs meticulous assessment of RE power every year, every month, every day, every hour and every time block (15 minutes). Further, one needs to carry out an arduous due diligence process for forecasting solar and wind patterns for 25 years. We, at HFE, have the expertise to do this to a great extent, thereby derisking ourselves and offtakers from such vagaries. Our success in winning eight complex FDRE tenders in the recent past testify to this.

Given that cement is one of the largest contributors to industrial emissions, what potential do you see for technologies like green hydrogen to decarbonise cement production in the coming decade?
We believe that emergence of green hydrogen presents a huge opportunity to decarbonise hard to abate sectors such as cement. Not only green hydrogen, but its derivatives like ammonia and methanol also hold huge potential to mitigate industrial carbon footprint. The cement industry sees huge volumes of CO2 being emitted as a result of limestone processing, which is a crucial process. These can be reused and converted to low carbon methanol. With the government promoting M15, M85, MD15 and M100, the same can be used for quick decarbonisation.

What are HFE’s long-term goals regarding environmental sustainability and emission reduction, and how does the company plan to scale these efforts to help heavy industries achieve their sustainability targets?
At HFE, we are committed to a sustainable and low-carbon future through provision of smart, affordable, clean energy and tech solutions. On the utility front, we are focused on complex, high CUF projects that aim to help overcome the intermittency barrier and pave the way for firm, dispatchable, round the clock green power. For our C&I clients, we offer a complete suite of solutions as their Net Zero partner, evolving from being just an RE provider.

If India is to achieve its Net Zero goal, then industrial decarbonisation must take centrestage and this is the space where we believe HFE can be a major player. We see ourselves as an end to end integrated Net Zero partner for businesses, particularly those in hard to abate sectors like cement, steel, chemicals and mobility, charting out a Net Zero roadmap for them and then guiding them to reach the target in a phased manner.

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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