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When Innovation meets Technology

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Saurabh Rai discusses how the sector is reshaping its footprint to meet climate goals, from alternative fuels to digital transformation, and creating strategies to drive a greener path forward in cement production.

When it comes to combating climate change, every industry plays a critical role, and the cement sector is no exception. Cement is a fundamental component of construction and infrastructure, but its production carries a significant environmental burden. Accounting for approximately 8 per cent of the world’s CO2 emissions, the cement industry has become a focal point in the broader fight against climate change. The challenge of reducing its carbon footprint is urgent, and it has driven the industry to reconsider its operational strategies, with a renewed emphasis on innovation, technology,
and sustainability.

A new era of cement production
At the heart of this transformation is a recognition that meeting climate goals requires more than incremental change. It demands a comprehensive rethinking of cement production, combining cutting-edge technology with sustainable practices. The future of the sector hinges on the ability to align business interests with environmental imperatives, balancing the need for efficiency with the broader responsibility to reduce emissions.
At Arahas, we understand that the cement sector has a unique opportunity to leverage innovation to drive sustainability. The shift we envision involves more than simply adopting new technologies; it requires transforming the entire value chain. Whether by optimising energy use, developing greener
raw materials, or implementing digital tools, the industry must evolve to meet the demands of a low-carbon future.

Rise of carbon capture and utilisation
One of the most promising technologies emerging in the cement industry is carbon capture, utilisation and storage (CCUS). CCUS allows companies to capture CO2 emissions before they are released into the atmosphere and either store them or repurpose them for other uses. This technology not only reduces emissions but also turns carbon into a valuable resource. Captured CO2 can be used in the production of synthetic fuels or other materials, adding an innovative twist to what was once considered waste.
Beyond CCUS, cement manufacturers are increasingly moving away from traditional fossil fuels, which have historically been a significant source of emissions. In their place, alternative energy sources like biomass and waste-derived fuels are being utilised. These renewable fuels not only help to cut emissions but also align with circular economy principles, where waste is redefined as a resource rather than a burden.

Embracing digital transformation
Digital tools have become essential in the effort to reduce the environmental impact of cement production. By integrating technologies like artificial intelligence (AI), advanced sensors, and the Internet of Things (IoT), companies are able to monitor and optimise energy use in real time. This data-driven approach allows for more informed decision-making, reducing waste, lowering emissions, and improving operational efficiency.
For example, AI algorithms can predict energy needs based on production levels and adjust accordingly to minimise unnecessary consumption. This kind of predictive technology not only enhances sustainability efforts but also supports the financial health of the business by reducing costs. In this way, digital transformation is proving to be a win-win for the industry, promoting both environmental and economic sustainability.

Rethinking raw materials
The cement industry’s environmental impact is not only determined by energy consumption but also by the raw materials it uses. Clinker, a key ingredient in cement, is highly energy-intensive to produce, making it a major contributor to CO2 emissions. However, companies are now looking to alternative materials like fly ash and slag, which are by-products from other industries, to reduce their reliance on clinker.
By incorporating these alternatives into the cement-making process, manufacturers can significantly lower their carbon emissions. Additionally, circular economy models that emphasise recycling construction waste into new cement products are gaining traction. This not only reduces the need for new raw materials but also helps to decrease overall emissions, creating a more sustainable production cycle.

Collaboration and the role of policy
Sustainability in the cement industry cannot be achieved in isolation. Collaboration across the entire value chain—from raw material suppliers to technology providers and government regulators—is essential. Industry-wide initiatives, such as the Global Cement and Concrete Association’s (GCCA) commitment to achieving net zero by 2050, highlight the importance of collective action in driving progress.
Governments also play a crucial role by implementing policies that incentivise sustainable practices. Carbon pricing, emissions targets and subsidies for clean technologies are all effective tools for encouraging companies to invest in greener solutions. Public-private partnerships can provide the financial support and resources necessary to spur innovation and accelerate the transition to a low-carbon economy.

The future of cement production
Research and development (R&D) will be pivotal to the future of low-carbon cement. In particular, finding alternatives to clinker and developing more energy-efficient production methods are key areas of focus. Ongoing research into new binders, clinker substitutes and advanced technologies is helping to pave the way for a more sustainable cement industry.
Moreover, the digitalisation of cement production continues to create opportunities for improvement. Predictive maintenance, powered by AI, can help prevent equipment failures, improve energy efficiency and minimise downtime. By optimising production in real-time, companies can maintain competitiveness while also reducing their environmental impact.

India’s cement industry leading the way
India, as one of the world’s largest producers of cement, is at the forefront of efforts to make the industry more sustainable. The country’s cement sector faces a dual challenge: supporting rapid urbanisation while simultaneously reducing emissions. Despite these challenges, Indian companies have made significant strides toward sustainability.
One such example is Dalmia Cement, which has implemented energy-efficient technologies across its facilities. Waste heat recovery systems, for instance, capture and reuse energy that would otherwise be lost during production. These systems have helped Dalmia Cement reduce its overall energy consumption while also cutting emissions.
Other companies, such as UltraTech Cement, have embraced renewable energy sources like solar and wind power. By incorporating these cleaner alternatives, Indian cement producers are reducing their dependence on fossil fuels and further shrinking their carbon footprints.
In addition to energy efficiency measures, Indian companies are also rethinking their raw material strategies. By using materials like fly ash from thermal power plants, ACC has been able to produce blended cement that is not only more durable but also less carbon-intensive. This is a prime example of how sustainable practices can benefit both the environment and the business.
The use of alternative fuels is also on the rise in India. Shree Cement, for instance, has adopted biomass and petcoke as substitutes for traditional fossil fuels. This shift helps to reduce waste, lower emissions, and align with the broader goals of sustainability and efficiency.

Overcoming challenges and seizing opportunities
While the road to net zero in the cement industry is long and challenging, it is also filled with opportunities. As technologies evolve and sustainable practices become the norm, the sector is in a better position than ever to meet its climate goals. Achieving these goals will require continued innovation, strong partnerships, and a commitment to environmental stewardship. At Arahas, we are committed to helping the cement industry navigate this transformation. We believe that by combining advanced technologies with sustainable practices, the sector can not only reduce its environmental impact but also create a more resilient and competitive industry. The challenges ahead are significant, but the opportunities for growth, innovation, and positive change are even greater.
With the right strategies, collaborations, and mindset, the cement industry can lead the way to a more sustainable future.

About the author: Saurabh Rai, CEO of Arahas, is a visionary leader with over two decades of experience in geospatial, AI and digital innovation. Known for his strategic expertise, he is driving Arahas’ transformation into a tech scaleup, focusing on AI, analytics, ESG and disaster mitigation, with a commitment to sustainability. Currently, Arahas is at the forefront in the geospatial IT and AI domain.

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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