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Sustainability is behavioural and cultural

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Neeti Mahajan, Consultant, EY India, discusses the advancements in geospatial analysis, policy support and innovative business models for decarbonising cement.

A s the cement industry navigates the path to net-zero, Carbon Capture, Utilisation, and Storage (CCUS) emerges as a game-changer in reducing emissions. By capturing CO2 before it enters the atmosphere, CCUS transforms industrial waste into valuable resources, paving the way for a more sustainable future. This conversation with Neeti Mahajan, Consultant at EY India, explores the challenges, opportunities and strategies for making CCUS mainstream.

As a sustainability consultant, how do you see CCUS contributing to the cement industry’s decarbonisation efforts?
The cement industry has been a traditionally hard-to-abate and emission-intense sector. With increasing commitments towards net-zero futures and targets, the cement industry is also undergoing a significant green revolution, driven by innovations in sustainable practices such as the use of eco-friendly materials, carbon capture technologies, and the incorporation of industrial by-products like fly ash and slag, which can reduce carbon emissions by up to 80 per cent during production.
One of the biggest changes has been the increasing adoption of CCUS, which plays a pivotal role in revolutionising the cement industry by significantly reducing greenhouse gas emissions associated with cement production. This technology addresses the inherent challenge of unavoidable process emissions, which account for approximately 60 to 65 per cent of total CO2 emissions in cement manufacturing due to the calcination of limestone. By capturing CO2 emissions before they enter the atmosphere, CCUS not only mitigates climate change impacts but also enables the cement sector to pursue carbon neutrality ambitions effectively. The captured CO2 can be utilised in various applications, such as producing synthetic fuels or chemical products, thereby creating a circular economy that reuses waste emissions as valuable resources.
Additionally, geological storage of CO2 ensures that these emissions are sequestered for centuries, further contributing to long-term environmental benefits.
Implementing CCUS technology can also enhance the economic viability of cement producers by opening new revenue streams through the sale of captured CO2 for industrial use. In turn, as the industry transitions to greener practices, CCUS is becoming essential for compliance with stricter environmental regulations and market expectations. The development of standardised carbon capture units also leans to streamline implementation, making it more cost-effective and scalable across different plants.

How can sustainability communication help bridge the gap between technical CCUS innovations and stakeholder engagement in the cement sector?
Sustainability communication and stakeholder engagement are two sides of the same coin. Transparency, accountability and responsibility are fundamental for sustainability to be functional, efficient and in all honesty, environment- and people-friendly. Communication and stakeholder engagement solve this problem. Any business or industry is dependent on its stakeholders to function. There is no profit or turnover, or future without the customers, and there is no business without the investors. Similarly, there is no ease of doing business without the regulators, there are no internal pillars without the employees and no purpose without the communities. Stakeholders are essentially the ones to run a business and being completely transparent with them through effective and clear communication is the way to go.

The cement industry has been a hard-to-abate sector with the traditional functioning for all these years. With new regulatory requirements coming in, like SEBI’s Business Responsibility and Sustainability Reporting for the top 1000 listed companies, value chain disclosures for the top 250 listed companies, and global frameworks to reduce emissions from the cement industry – this can send stakeholders into a state of uncertainty and unnecessary panic leading to a semi-market disruption. To avoid this, communication on technologies like CCUS, and other innovative tech technologies which will pave the way for the cement industry, is essential. Annual reports, sustainability reports, the BRSR disclosure, and other broad forms of communication in the public domain, apart from continuous stakeholder engagement internally to a company, can go a long way in redefining a rather traditional industry.

Based on your background in geoinformatics, how can spatial analysis be leveraged to identify optimal sites for CO2 sequestration in India?
Spatial analysis is crucial for identifying optimal sites for CO2 sequestration in India by leveraging geospatial technologies and methodologies. It forms the first step towards a reconnaissance survey, essential for understanding the geological aspects of any region. This analysis plays a pivotal role in assessing soil types, percolation rates, watershed management, and the capacity of various soil formations, translating into a primary step for efficient carbon sequestration.

It begins with geological assessments that map formations suitable for sequestration, such as deep saline aquifers and basalt formations, which have significant potential given India’s estimated 629 gigatonnes of theoretical CO2 storage capacity. Spatial analysis also addresses above-ground constraints by visualising factors like population density, arable land, and protected areas using Geographic Information Systems (GIS), thus identifying feasible areas for CO2 storage without negatively impacting human activities or the environment.

When it comes to climate action and remote sensing, research has predominantly focused on climate modelling and temperature predictions; however, from a solution-oriented perspective, the integration of remote sensing and spatial analysis can automate site sampling, soil and temperature assessments, analysis of holding capacity, and identification of regions across India where carbon sequestration can expedite the creation of carbon sinks, preventing CO2 from escaping into the atmosphere.

Advanced techniques like remote sensing and artificial intelligence further enhance this analysis by integrating multi-source data, allowing for predictive modelling based on historical emissions, land use patterns and climate conditions. Additionally, GIS tools can model how various factors influence carbon sequestration over time, estimating biomass and carbon stocks through multispectral data and LiDAR technology.

Hence, remote sensing and spatial technologies not only facilitate strategic planning and resource allocation for CCUS projects but also support India’s goal of achieving net-zero emissions by 2070. By understanding the spatial distribution of potential sites, policymakers can facilitate community engagement and minimise opposition to CCS initiatives, ultimately harnessing India’s significant geological potential while addressing environmental and social considerations effectively.

What role does climate education play in driving awareness and adoption of CCUS in industries like cement?
I have always believed and observed that sustainability is behavioural and cultural. Education and awareness building can make our citizens more informed to make their own decisions regarding sustainability and the environment. CCUS has been around for a long time, and is one of the primary solution-oriented processes to be discovered and implemented, yet many people do not know about this or how it works. In an industry as mainstream cement, educating about CCUS cannot only help in market expansion, more MSME participation, more economic growth and revenue generation – but it also drives the cement industry towards a sustainable path and also helps the consumer, which are also large vendors integrate sustainability directly or indirectly, into their value chains as well. Only when bigger and established companies talk about how they utilise CCUS, its strengths and benefits, only then smaller players start adopting the technology and it will become more accessible and mainstream.

From your experience, what are the key challenges in integrating CCUS into sustainability strategies for heavy industries?
Integrating CCUS into sustainability strategies for heavy industries comes with several significant challenges that make widespread adoption difficult. One major issue is the high costs involved in developing and implementing CCUS technologies, which can discourage companies from investing, especially when profit margins are already tight. Apart from this, the CCUS supply chain is complex and highly industrial, which creates accessibility and understanding issues as well.
Effective integration requires collaboration between different sectors, such as energy and manufacturing, to build shared infrastructure for transporting and storing CO2. Another challenge can be the uncertainty around regulations, changing laws and policies regarding carbon pricing and incentives can complicate long-term planning for businesses interested in CCUS solutions. There are also technical hurdles, such as ensuring that CO2 storage sites are safe and effective, as well as dealing with impurities in the captured CO2 that could affect its use. There is also a rising public concern about storing CO2 underground and a fear that this can create resistance to projects, making it essential for companies to engage with communities and communicate the benefits of CCUS clearly to build trust and support for these initiatives, focusing on spreading awareness and education on CCUS and aligned technological advances.

How can consultancy firms like EY support cement manufacturers in navigating the regulatory and economic challenges of CCUS implementation?
The Climate Change and Sustainability Services (CCaSS) function of EY is an expert division within that helps other companies, both public and private, to be more sustainable. With expertise for all aspects of sustainability across industries, EY has facilitated the sustainability journey of some of the biggest cement players in the country. With stringent sustainability regulation coming into India through SEBI and other global mandates which many sector leaders would like to focus on, the climate and business sustainability advisory at EY helps businesses to be prepared when it comes to climate change adaptation.

EY can help an organisation be ready, in this context, towards CCUS implementation through multiple routes.

  • Sustainability communication: ESG advisory at EY CCaSS helps an organisation in its regulatory disclosures (SEBI’s BRSR), ESG and sustainability reports, annual disclosures, and stakeholder engagement initiatives, which drives ESG communication and transparency through an organisation.
  • Decarbonisation pathways: EY can also help in identifying material topics for an organisation in order of action, impact and priority, thereby formulating an ESG-strategy, further advanced into a net-zero roadmap identifying decarbonisation levers for a business. In an industry as traditional as cement and long-standing companies, this is essential for them in the current business-as-usual scenario.
  • Sustainable investments: EY can also advise on sustainable investments, driving revenue and profit towards better R&D and a solution-oriented approach to make an organisation prepared for future regulation, forming a system of checks and balances.

EY CCaSS has been driving a sustainable change towards business sustainability for the past 25 years in India, and has been a long-standing partner for many big names in the cement industry and beyond.

What innovative approaches do you recommend to make CCUS solutions more accessible and financially viable for the cement industry?
The cement industry is definitely a major contributor to global CO2 emissions but as national and global regulations on decarbonisation and net-zero commitments tighten, the industry is increasingly adopting innovative CCUS technologies to enhance sustainability. Current advancements include post-combustion capture methods, such as chemical absorption, and direct air capture technologies aimed at reducing energy consumption and sequestering atmospheric CO2. Captured carbon can be repurposed for applications like synthetic fuels or enhancing concrete production through curing processes. To support these innovations, it is essential for governments to create favourable policies that incentivise investment in CCUS, alongside increased funding for research and development.
Public-private partnerships can facilitate knowledge sharing and resource allocation, while community engagement ensures transparency and acceptance of CCUS projects. Global collaboration and partnership are also vital for new benchmarks and establishing best practices.
Implementing lifecycle assessments will further ensure that CCUS technologies contribute positively to sustainability goals. CCUS can also be differentiated from traditional oil and gas industry techniques, made more accessible and awareness around this can be increased through climate and CCUS education as well. Circularity is the way forward, and to repurpose and reuse the captured carbon gives us a way forward, with more research and development and more innovative techniques.

Concrete

Dalmia Acquires Five Point Two MnTPA Cement Assets in Central Region

Acquisition adds capacity, power and rail access

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Dalmia Cement (Bharat) Limited (DCBL) executed a business transfer agreement on 21 May 2026 to acquire a cement undertaking from Jaiprakash Associates Limited (JAL) and Adani Infra (India) Limited. The assets include plants at Rewa in Madhya Pradesh and Churk, Chunar and Sadwa in Uttar Pradesh with five point two million tonnes per annum (mn tpa) cement capacity and three point three mn tpa clinker capacity, plus 99 megawatt (MW) thermal power and railway sidings. The transaction carries an enterprise value of Rs 28.5 billion (bn).

DCBL, a wholly owned subsidiary of Dalmia Bharat Limited (DBL), will see cement capacity rise to 54.7 mn tpa on completion. Ongoing expansions at Belgaum, Pune and Kadapa are expected to raise capacity to 66.7 mn tpa by the second to third quarter of fiscal 2028. The company said the transaction would be consummated within two weeks.

The deal follows a framework signed in December 2022 to settle long running disputes with JAL, including a long term clinker supply arrangement. Completion was delayed when JAL entered insolvency and the earlier sale did not finalise. Following approval of a resolution plan under the Insolvency and Bankruptcy Code, DCBL executed a fresh business transfer agreement to resolve pending legal and arbitral matters.

Company statements described the acquisition as strategic, accelerating access to central markets compared with a greenfield route and offering scope for expansion through debottlenecking and brownfield investment. Proximity to the company’s captive mines and established vendor relationships should support faster ramp up. The assets should augment EBITDA delivery and enhance returns by enabling entry into newer markets with relatively better prices.

Senior executives said the addition aligned with a long term plan to build a pan India presence and would provide a head start in central markets. They noted that familiarity with the plants under earlier tolling arrangements offers operational insight and strengthens channel relationships, supporting quicker market entry. Management expressed confidence that the assets’ expansion potential would generate value for stakeholders.

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Concrete

Ramco Cements Reports FY26 Revenue Growth And Higher Profit

Net debt reduced as exceptional items boost FY26 earnings

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Ramco Cements reported standalone audited results for FY26 with net revenue of Rs 90,560 million (mn) and profit after tax of Rs 6,940 mn. EBIDTA rose to Rs 14,820 mn and blended EBIDTA per tonne was Rs 788 on a two per cent volume rise to 18.81 million (mn) tonne (t). Cement revenue increased by five per cent and construction chemicals revenue rose by 66 per cent.

Raw material cost per tonne rose to Rs 1,023 from Rs 956 mainly due to a mineral bearing land tax of Rs 160 per t in Tamil Nadu, adding about Rs 86 per t. Power and fuel cost per tonne fell to Rs 1,098 from Rs 1,123 with petcoke mix down to 47 per cent and green power up to 40 per cent.

Profit before tax after exceptional items was Rs 8,790 mn. Net exceptional items were Rs 5,530 mn, including Rs 5,740 mn from sale of surplus land and Rs 200 mn of past service cost. The company monetised Rs 10,980 mn from non core asset sales over the past two years and recorded capex of Rs 9,970 mn, with guidance of Rs 8,000 mn for FY27.

Net debt fell by Rs 8,170 mn to Rs 36,640 mn at 31 March 2026 and cost of debt eased to 7.29 per cent, reducing net debt to EBIDTA to 2.47 times. Management indicated the full impact of higher fuel costs is expected from Q2 FY27, while packing and diesel cost increases will be visible in Q1 FY27. The board has proposed a dividend of Rs two point five zero per equity share and the company flagged risks from elevated fuel and logistics costs, commodity volatility and competitive pricing.

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Concrete

Dalmia Cement to Acquire 5.2 MnTPA Capacity

Deal covers cement assets in Madhya Pradesh and Uttar Pradesh

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Dalmia Cement (Bharat), a wholly owned subsidiary of Dalmia Bharat, has executed a Business Transfer Agreement with Jaiprakash Associates and Adani Infra (India) to acquire cement assets with 5.2 MnTPA capacity in the Central region.

The acquisition covers cement plants located at Rewa in Madhya Pradesh, and Churk, Chunar and Sadwa in Uttar Pradesh. The assets include 5.2 MnTPA cement capacity, 3.3 MnTPA clinker capacity, 99 MW thermal power capacity, railway sidings at Rewa and Chunar, and a common railway siding at Churk. The enterprise value of the transaction is Rs 28.5 billion.

Following completion of the transaction, Dalmia Bharat’s cement capacity will increase to 54.7 MnTPA. Its ongoing expansion projects at Belgaum, Pune and Kadapa are expected to further raise capacity to 66.7 MnTPA by the second or third quarter of FY28. The transaction is expected to be completed within two weeks.

Dalmia Cement had entered into a framework agreement with Jaiprakash Associates in December 2022 for the sale of business assets and related agreements, including a business transfer agreement and cement sale purchase agreement. The agreements were intended to settle disputes between the parties, including those under the long-term clinker supply agreement. However, the transaction could not be completed after Jaiprakash Associates was admitted to insolvency.

Following approval of the Adani Group’s resolution plan for Jaiprakash Associates under the Insolvency and Bankruptcy Code, Dalmia Cement requested that the earlier agreement be considered to settle pending disputes. The company has now executed a fresh Business Transfer Agreement with Jaiprakash Associates and Adani Infra (India) for the cement undertaking.

The acquisition supports Dalmia Bharat’s strategy to become a pan-India cement player and provides faster access to Central markets compared to a greenfield project. The assets also offer expansion potential through debottlenecking and brownfield development.

Puneet Dalmia, Managing Director and CEO, Dalmia Bharat, said the assets are a strong strategic fit and will help the company serve high-potential markets in the Central region. He added that the expansion potential of the assets and their proximity to Dalmia’s captive mines could help create a future capacity hub.

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