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Achieving net zero requires a multifaceted approach

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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.

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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