Concrete

Achieving net zero requires a multifaceted approach

Published

9 months ago

January 15, 2025

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Mahendra Singhi, Member of Board of Governors and Strategic Advisor, Dalmia Cement (Bharat), shares insights into India’s Net Zero mission with Kanika Mathur.

India’s path to Net Zero is full of challenges. As a hard-to-abate industry, the cement sector needs to chart out strategies for achieving carbon neutrality. Discover how innovative approaches and policy support are shaping a sustainable future in this exclusive and insightful interview.

What is your view on the net zero mission, and how do we plan to achieve it?
The net zero mission is not merely a necessity for the cement sector or any specific industry but a global imperative. Every sector, whether service or manufacturing, must strive for net zero to address climate change and ensure a safe future for subsequent generations. The cement industry, in particular, has a significant role to play since it accounts for approximately 7-8 per cent of global CO2 emissions.
CO2 is the most prevalent greenhouse gas, and the cement industry’s contribution to these emissions is substantial. However, the good news is that the cement industry, especially in India, has been proactive. Over the years, it has explored and implemented strategies to lower carbon emissions. Initially, the focus was on low-carbon technologies. By adopting these technologies, the industry has already achieved significant reductions in CO2 emissions. Moreover, companies have begun integrating net-zero strategies into their business models, recognising that climate strategies are also sound business strategies. For example, the CDP (Carbon Disclosure Project) report recently highlighted the top 10 global cement companies prepared for a low-carbon transition, and five of these were Indian companies. This reflects a mindset shift towards sustainability, with Dalmia Cement leading the pack.
At Dalmia Cement, we believe in the philosophy that clean and green practices are both sustainable and profitable. Over the last decade, this philosophy has translated into a 33 per cent reduction in our CO2 emissions while simultaneously increasing revenue and profits. Such achievements demonstrate that net zero is not only achievable but also beneficial for business.

Alternative fuels and raw materials, digitalisation, technology, and Industry 4.0 are seen as crucial. Which plays the most significant role, or are they equally important?
Achieving net zero requires a multifaceted approach, and in the context of the cement industry, four key levers are critical. First, reducing the clinker content in cement production is essential. Clinker production is a major source of emissions due to the calcination of limestone. To mitigate this, we are focusing on producing blended cements such as PPC, PSC, PCC, and the newer L3 cement. Currently, India produces 73 per cent low-carbon blended cement. However, there is a need to eliminate the production of OPC (Ordinary Portland Cement), which emits around 900 kg of CO2 per tonne, compared to 400-500 kg for blended cements. Government policies, as well as support from the real estate and construction sectors, are essential for this transition.
Secondly, the use of alternative fuels and raw materials (AFR) offers a significant opportunity to reduce emissions. Transitioning to non-fossil fuels has shown promising results in regions like Europe and Japan, where AFR usage has reached 70-80 per cent, aided by strict regulations and quality waste management. In India, while progress is evident, AFR usage currently stands at around 10-15 per cent. Scaling this up will significantly contribute to emission reductions, as AFR accounts for approximately 20 per cent of total emissions.
Third, the transition to renewable energy sources is imperative. Transitioning to 100 per cent renewable energy through waste heat recovery systems, solar, wind, or hydro power is vital. Many companies have set ambitious targets for renewable energy adoption. However, supportive government regulations, such as banking facilities for renewable power, are necessary to accelerate this shift.
Finally, carbon capture technology (CCU/CCS) represents one of the most challenging yet impactful levers for achieving net zero. Capturing and either utilising or storing CO2 emissions can address roughly 50 per cent of emissions. While successful pilot projects are underway in Europe and the US, widespread adoption in India requires cost reductions and government support through incentives similar to the PLI scheme.

How can policymakers balance urban infrastructure development with carbon emission reduction?
As a developing country, India must prioritise growth to provide essential resources and amenities. However, this growth must be decoupled from emissions. Policymakers can achieve this by mandating the use of low-carbon technologies in new infrastructure projects and promoting blended cements over OPC through procurement policies. Additionally, supporting renewable energy adoption by providing banking facilities for renewable power and enhancing waste management practices to improve AFR quality are crucial steps. Introducing a polluter-pay policy can further offset the additional costs incurred by the cement industry. The Indian government’s commitment to maintaining a lower per-capita emission level compared to developed nations underscores its resolve to achieve sustainable growth.

How do you see the journey towards net zero unfolding?
The journey towards net zero is advancing steadily. In 2018, we at Dalmia Cement announced our carbon-negative and net zero roadmap during COP24. This commitment inspired other companies worldwide to adopt similar strategies. By COP26 in Glasgow, the Global Cement and Concrete Association committed to achieving net zero cement and concrete by 2050.
The global cement sector has been proactive, embracing new technologies and sustainability practices. Indian companies, too, are leading the way with innovative strategies and strong commitments. I am optimistic that within the next 10-25 years, the Indian cement industry will make significant strides towards achieving net zero, setting a benchmark for other industries globally.

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Concrete

Cement Margins Seen Rising 12–18 per cent in FY26

Healthy demand and GST cut to boost cement profits per tonne.

Published

6 days ago

September 29, 2025

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Cement companies’ operating profit for fiscal year 2026 (FY26) is projected to grow by 12–18 per cent, reaching Rs 900–950 per metric tonne (MT), supported by robust demand, improved realisations, and stable input costs, according to ratings agency Icra.

In FY25, operating profit before interest, depreciation, tax and amortisation (OPBIDTA) stood at Rs 806 per MT, declining 16 per cent year-on-year due to weak realisations amid an extended monsoon and subdued government capital expenditure during the general elections.

Icra’s sample covers ACC, Ambuja Cements, JK Cements, JK Lakshmi Cement, The Ramco Cements, UltraTech Cement, Dalmia Bharat, Birla Corporation, Shree Cement, Sagar Cements, and Heidelberg Cement India, which together account for 74 per cent of industry capacity.

The recent GST cut on cement is expected to lower rural housing construction costs by 0.8–1.0 per cent, boosting volumes and supporting additional capacity. Average cement realisations are expected to rise 3–5 per cent in FY26.

Cement volumes increased by 8.5 per cent in the first five months of FY26, driven by strong demand from housing and infrastructure projects, despite early monsoons in some regions. During this period, cement prices rose 7.4 per cent year-on-year, particularly in northern and eastern markets. Input costs, especially for pet coke and freight, remain sensitive to global crude price movements and geopolitical factors.

Anupama Reddy, vice-president and co-group head of corporate ratings at Icra, said: “With the GST rate cut from 28 per cent to 18 per cent expected to be passed on to consumers, the average retail price of cement, currently Rs 350–360 per bag, will offer savings of Rs 26–28 per bag. Driven by strong demand, capacity additions may rise to 41–43 million metric tonnes per annum (MMTPA) in FY26 from 31 MMTPA in FY25, with the eastern region leading the growth in grinding capacity.”

Concrete

Adani’s Strategic Emergence in India’s Cement Landscape

Published

3 weeks ago

September 16, 2025

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Milind Khangan, Marketing Head, Vertex Market Research, sheds light on Adani’s rapid cement consolidation under its ‘One Business, One Company’ strategy while positioning it to rival UltraTech, and thus, shaping a potential duopoly in India’s booming cement market.

India is the second-largest cement-producing country in the world, following China. This expansion is being driven by tremendous public investment in the housing and infrastructure sectors. The industry is accelerating, with a boost from schemes such as PM Gati Shakti, Bharatmala, and the Vande Bharat corridors. An upsurge in affordable housing under the Pradhan Mantri Awas Yojana (PMAY) further supports this expansion. In May 2025, local cement production increased about 9 per cent from last year to about 40 million metric tonnes for the month. The combined cement capacity in India was recorded at 670 million metric tonnes in the 2025 fiscal year, according to the Cement Manufacturers’ Association (CMA). For the financial year 2026, this is set to grow by another 9 per cent.
In spite of the growing demand, the Indian cement industry is highly competitive. UltraTech Cement (Aditya Birla Group) is still the market leader with domestic installed capacity of more than 186 MTPA as on 2025. It is targeted to achieve 200 MTPA. Adani Cement recently became a major player and is now India’s second-largest cement company. It did this through aggressive consolidation, operational synergies, and scale efficiencies. Indian players in the cement industry are increasingly valuing operational efficiency and sustainability. Some of the strategies with high impact are alternative fuels and materials (AFR) adoption, green cement expansion, and digital technology investments to offset changing regulatory pressure and increasing energy prices.

Building Adani Cement brand
Vertex Market Research explains that the Adani Group is executing a comprehensive reorganisation and consolidation of its cement business under the ‘One Business, One Company’ strategy. The plan is to integrate its diversified holdings into one consolidated corporate entity named Adani Cement. The focus is on operating integration, governance streamlining, and cost reduction in its expanding cement business.
Integration roadmap and key milestones:

September 2022: The consolidation process started with the $6.4 billion buyout of Holcim’s majority stakes in Ambuja Cements and ACC, with Ambuja becoming the focal point of the consolidation.
December 2023: Bought Sanghi Industries to strengthen the firm’s presence in western India.
August 2024: Added Penna Cement to the portfolio, improving penetration of the southern market of India.
April 2025: Further holding addition in Orient Cement to 46.66 per cent by purchasing the same from CK Birla Group, becoming the promoter with control.
Ambuja Cements amalgamated with Adani Cement: This was sanctioned by the NCLT on 18th July 2025 with effect from April 1, 2024. This amalgamation brings in limestone reserves and fresh assets into Ambuja.
Subject to Sanghi and Penna merger with Ambuja: Board approvals in December 2024 with the aim to finish between September to December 2025.
Ambuja-ACC future integration: The latter is being contemplated as the final step towards consolidation.
Orient Cement: It would serve as a principal manufacturing facility following the merger.

Scale, capacity expansion and market position
In financial year-2025, Adani Cement, including Ambuja, surpassed 100 MTPA. This makes it one of the world’s top ten cement companies. Along with ACC’s operations, it is now firmly placed as India’s second-largest cement company. In FY25, the Adani group’s sales volume per annum clocked 65 million metric tonnes. Adani Group claims that it now supplies close to 30 per cent of the cement consumed in India’s homes and infrastructure as of June 2025.
The organisation is pursuing aggressive brownfield expansion:

By FY 2026: Reach 118 MTPA
By FY 2028: Target 140 MTPA

These goals will be driven by commissioning new clinker and grinding units at key sites, with civil and mechanical works underway.
As of 2024, Adani Cement had its market share pegged at around 14 to 15 per cent, with an ambition to scale this up to 20 per cent by FY?2028, emerging as a potent competitor to UltraTech’s 192?MTPA capacity (186 domestic and overseas).

Strategic advantages and competitive benefits
The consolidation simplifies decision-making by reducing legal entities, centralising oversight, and removing redundant functions. This drives compliance efficiency and transparent reporting. Using procurement power for raw materials and energy lowers costs per ton. Integrated logistics with Adani Ports and freight infrastructure has resulted in an estimated 6 per cent savings in logistics. The group aims for additional savings of INR 500 to 550 per tonne by FY 2028 by integrating green energy, using alternative fuel resources, and improving sourcing methods.

Market coverage and brand consistency
Brand integration under one strategy will provide uniform product quality and easier distribution networks. Integration with Orient Cement’s dealer base, 60 per cent of which already distributes Ambuja/ACC products, enhances outreach and responsiveness.
By having captive limestone reserves at Lakhpat (approximately 275 million tonnes) and proposed new manufacturing facilities in Raigad, Maharashtra, Adani Cement derives cost advantage, raw material security, and long-term operational robustness.

Strategic implications and risks
Consolidation at Adani Cement makes it not just a capacity leader but also an operationally agile competitor with the ability to reap digital and sustainability benefits. Its vertically integrated platform enables cost leadership, market responsiveness, and scalability.

Challenges potentially include:

Integration challenges across systems, corporate cultures, and plant operations
Regulatory sanctions for pending mergers and new capacity additions
Environmental clearances in environmentally sensitive areas and debt management with input price volatility

When materialised, this revolution would create a formidable Adani–UltraTech duopoly, redefining Indian cement on the basis of scale, innovation, and sustainability. India’s leading four cement players such as Adani (ACC and Ambuja), Dalmia Cement, Shree Cement, and UltraTech are expected to dominate the cement market.

Conclusion
Adani’s aggressive consolidation under the ‘One Business, One Company’ strategy signals a decisive shift in the Indian cement industry, positioning the group as a formidable challenger to UltraTech and setting the stage for a potential duopoly that could dominate the sector for years to come. By unifying operations, leveraging economies of scale, and securing vertical integration—from raw material reserves to distribution networks—Adani Cement is building both capacity and resilience, with clear advantages in cost efficiency, market reach, and sustainability. While integration complexities, regulatory hurdles, and environmental approvals remain key challenges, the scale and strategic alignment of this consolidation promise to redefine competition, pricing dynamics, and operational benchmarks in one of the world’s fastest-growing cement markets.

About the author:
Milind Khangan is the Marketing Head at Vertex Market Research and comes with over five years of experience in market research, lead generation and team management.

Concrete

Precision in Motion: A Deep Dive into PowerBuild’s Core Gear Series

Published

2 months ago

August 16, 2025

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PowerBuild’s flagship Series M, C, F, and K geared motors deliver robust, efficient, and versatile power transmission solutions for industries worldwide.

Products – M, C, F, K: At the heart of every high-performance industrial system lies the need for robust, reliable, and efficient power transmission. PowerBuild answers this need with its flagship geared motor series: M, C, F, and K. Each series is meticulously engineered to serve specific operational demands while maintaining the universal promise of durability, efficiency, and performance.
Series M – Helical Inline Geared Motors: Compact and powerful, the Series M delivers exceptional drive solutions for a broad range of applications. With power handling up to 160kW and torque capacity reaching 20,000 Nm, it is the trusted solution for industries requiring quiet operation, high efficiency, and space-saving design. Series M is available with multiple mounting and motor options, making it a versatile choice for manufacturers and OEMs globally.
Series C – Right Angled Heli-Worm Geared Motors: Combining the benefits of helical and worm gearing, the Series C is designed for right-angled power transmission. With gear ratios of up to 16,000:1 and torque capacities of up to 10,000 Nm, this series is optimal for applications demanding precision in compact spaces. Industries looking for a smooth, low-noise operation with maximum torque efficiency rely on Series C for dependable performance.
Series F – Parallel Shaft Mounted Geared Motors: Built for endurance in the most demanding environments, Series F is widely adopted in steel plants, hoists, cranes, and heavy-duty conveyors. Offering torque up to 10,000 Nm and high gear ratios up to 20,000:1, this product features an integral torque arm and diverse output configurations to meet industry-specific challenges head-on.
Series K – Right Angle Helical Bevel Geared Motors: For industries seeking high efficiency and torque-heavy performance, Series K is the answer. This right-angled geared motor series delivers torque up to 50,000 Nm, making it a preferred choice in core infrastructure sectors such as cement, power, mining, and material handling. Its flexibility in mounting and broad motor options offer engineers’ freedom in design and reliability in execution.
Together, these four series reflect PowerBuild’s commitment to excellence in mechanical power transmission. From compact inline designs to robust right-angle drives, each geared motor is a result of decades of engineering innovation, customer-focused design, and field-tested reliability. Whether the requirement is speed control, torque multiplication, or space efficiency, Radicon’s Series M, C, F, and K stand as trusted powerhouses for global industries.