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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

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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