Concrete

Decarbonising Cement Transportation

Published

1 year ago

April 21, 2025

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The Indian cement industry is embracing green logistics through electric and alternative fuel vehicles, digital innovations and sustainable transport strategies to reduce carbon emissions and improve efficiency. Kanika Mathur looks at the collaborative efforts between industry leaders and government initiatives driving this transformation toward a net-zero future.

The Indian cement industry, as the world’s second-largest producer, plays a pivotal role in the nation’s infrastructure development. However, this prominence comes with significant environmental challenges, particularly in logistics operations. Green logistics—integrating sustainable practices into transportation and supply chain management—has emerged as a critical focus area. By adopting eco-friendly transportation methods, optimising supply chains and leveraging technological innovations, the industry aims to reduce its carbon footprint and enhance operational efficiency.
According to Cargo Insights, the cement industry plans to invest around `40,000 crore to add 40 MTPA annually, targeting an increase of 100-120 MTPA over the next three years.
India is the sixth-largest market for medium and heavy-duty trucks (MHDTs), with over 200,000 vehicles sold in 2021 and more than 40 lakh trucks operating on its roads. However, the dominance of internal combustion engine (ICE) trucks, with over 90 per cent running on diesel, presents significant challenges, including high emissions and fuel dependency. In the cement industry, road transport plays a crucial role, with 74 to 76 per cent of cement, 15 to 20 per cent of clinker, and most limestone, fly ash, and other additives being transported by trucks. While coal and slag rely more on rail, the sector remains heavily dependent on road logistics, underscoring the urgent need for sustainable alternatives such as LNG and electric trucks to reduce environmental impact and improve efficiency, informs a report by the Confederation of Indian Industry (May 2024).

Environmental imperative
Logistics in the cement industry is a major contributor to carbon emissions, primarily due to the extensive use of fossil fuel-powered transportation. With approximately 74 per cent of cement and clinker transport relying on roadways, the environmental impact is substantial. Transitioning to greener logistics solutions is essential to mitigate these emissions and align with global sustainability goals.
“Jassper Shipping is dedicated to reducing carbon footprints, including those of clients. Emission-reduction plans and carbon offset investments aim to achieve net-zero carbon emissions by 2035. Over the next two quarters, the number of EVs in the fleet will increase from 58 to 150. The last-mile delivery supply chain is becoming more sustainable and efficient with EV integration while maintaining high-quality service,” says Pushpank Kaushik, CEO, Jassper Shipping.
According to the Investment Information and Credit Rating Agency (ICRA), cement demand in India may touch approximately 460 million metric tonnes (MT) by 2025, and the sector is projected to grow its capacity by 5 per cent annually until
March 2027.
India’s per capita cement consumption remains below 300 kg, which is only half of the global average, indicating significant potential for growth. However, economic progress often comes at an environmental cost, with the cement industry accounting for approximately seven per cent of India’s total CO2 emissions due to its heavy reliance on coal. During China’s peak growth in 2008, the country produced 113.5 crore MT of cement, emitting approximately 0.46 MT of CO2 per MT of cement. In 2024, while India is producing only 40 per cent of China’s 2008 cement volumes, its specific emissions remain comparable. Additionally, environmental concerns are exacerbated by clinker dust, wastage during manufacturing and packaging, and transportation leaks, all of which contribute to the industry’s overall carbon footprint.
As India works toward its ambitious goal of becoming a net-zero emissions nation by 2070, it faces the challenge of balancing rapid economic growth with sustainability. The cement industry, as a key player in infrastructure development, must integrate green solutions at multiple levels of the value chain. This transformation involves optimising power consumption, improving manufacturing processes, developing eco-friendly products and implementing better preservation methods post-processing. By adopting these measures, the industry can contribute to India’s sustainability goals while maintaining its critical role in economic expansion.

The race for EVS
A significant stride toward green logistics is the industry’s pilot testing of electric trucks (E-trucks). Around 150 E-trucks have been deployed to assess their feasibility in cement transportation. Neeraj Akhoury, President, Cement Manufacturers’ Association (CMA), and Managing Director, Shree Cement, highlighted that while E-trucks can potentially reduce operating costs and emissions, challenges such as high ownership costs, heavy batteries, limited charging infrastructure and range constraints need to be addressed.
Companies like UltraTech Cement are leading the way by expanding their EV fleet. UltraTech has signed contracts to deploy approximately 100 EV trucks, aiming to transport 75,000 metric tonnes of clinker monthly. This initiative is part of a broader strategy to incorporate 500 electric trucks by
June 2025, aligning with the Government of India’s eFAST initiative.
The company has signed a transport service contract to deploy approximately 100 EV trucks, which will transport 75,000 MT of clinker each month. This initiative positions UltraTech as the first Indian cement company to integrate EV trucks on such a large scale for long-distance logistics.
By replacing conventional fossil-fuel-powered
trucks with EVs, the company expects to reduce its transport-related carbon emissions by 17,000 MT annually, making a significant contribution to sustainable logistics.
This large-scale deployment follows a successful pilot project launched in January 2024, which introduced five electric trucks on the same route. The pilot also focused on setting up essential charging infrastructure and implementing driver training programs to ensure smooth operations. Encouraged by the positive results, UltraTech is now evaluating additional routes for EV integration and is preparing for another pilot to facilitate clinker transport between two of its other manufacturing units. This phased approach demonstrates the company’s commitment to expanding green logistics solutions across its supply chain.
In a press release, KC Jhanwar, Managing Director, UltraTech Cement, stated, “UltraTech is fully committed to achieving its Net Zero goal by 2050. We have taken a holistic approach to embedding sustainability in our operations. Scaling up EV trucks in our logistics is a testament to our commitment to advancing sustainable practices in the industry.”
UltraTech plans to scale up its EV fleet to 500 trucks by June 2025 under the Government of India’s eFAST initiative. The company has been a pioneer in sustainable transportation, having introduced CNG vehicles in 2021 and LNG vehicles in 2022 before adopting EV trucks in 2024. Currently, its logistics network operates over 468 CNG and
67 LNG trucks, ensuring a reduced environmental footprint across multiple manufacturing units. This ambitious expansion further cements UltraTech’s leadership in integrating sustainability into its business operations while advancing India’s green energy and carbon reduction goals.

Integrating alternative fuels and renewable energy
Beyond electrification, the industry is exploring alternative fuels to power logistics operations. JK Lakshmi Cement, in collaboration with GreenLine Logistics, has introduced LNG-fueled heavy trucks to decarbonise its road logistics. This initiative marks a significant step toward reducing emissions associated with cement transportation.
Back in 2022, JK Lakshmi Cement had announced its tie-up with GreenLine, an Indian green and smart logistics company. This collaboration introduced LNG-fueled heavy trucks in the company’s logistics protocol. While Arun Shukla, President and Director, JK Lakshmi Cement, had hailed this as their first step towards sustainable transportation in an official statement, the company has come a long way in integrating green logistics in its supply chain over the years. Companies such as GreenLine Logistics are helping the cement transportation industry become more eco-conscious, thereby facilitating the transition towards a more circular economy.
Heavy trucking contributes approximately 10 to 12 per cent of total emissions. Switching to LNG-fuelled trucks can reduce CO2 emissions by 28 per cent, NOx by 59 per cent, SOx by 100 per cent, and particulate matter by 91 per cent, while also cutting noise pollution by 30 per cent. This transition
offers a cleaner, more sustainable alternative for freight transport.
Additionally, the adoption of renewable energy sources within manufacturing and logistics operations is gaining momentum. The Indian cement industry has been proactive in utilising waste heat recovery systems and renewable energy, contributing to a reduction in overall carbon emissions.
Another dimension to consider is improving the supply chain efficiency. The integration of digital technologies is revolutionising supply chain management in the cement industry. Advanced tracking systems, data analytics and the Industrial Internet of Things (IIoT) are being employed to optimise routes, monitor vehicle performance, and reduce fuel consumption. These technologies not only enhance efficiency but also contribute to sustainability by minimising unnecessary transportation and associated emissions.

Challenges in implementing green logistics
Despite the clear benefits, the transition to green logistics is fraught with challenges:

High initial investment: The upfront costs for EVs and alternative fuel vehicles are considerably higher than traditional diesel trucks.
Infrastructure limitations: The lack of adequate charging stations and refueling infrastructure for alternative fuels hampers widespread adoption.
Regulatory Hurdles: Navigating the evolving landscape of environmental regulations and standards can be complex and resource-intensive.
Technological adaptation: Integrating new technologies requires substantial changes in existing operational frameworks and workforce training.

“At Fleetronix, we are constantly looking ahead to the future of logistics, and we see a massive opportunity in using technology to make fleet management smarter and more sustainable. Right now, fleet maintenance is often reactive – issues are fixed after they cause downtime. But we envision a future where predictive maintenance becomes the norm. Our goal is to develop a system that identifies potential problems before they turn into costly breakdowns, ensuring trucks run efficiently and reducing unnecessary emissions,” says Anuradha Parakala, Co-founder, Chief Strategy and Product Officer, Fleetronix Systems.
“As the industry moves towards hybrid and electric vehicles, we see Fleetronix playing a key role in optimising fleet transitions – from smart route planning that maximises battery efficiency to integrated tracking for EV charging. Our vision is clear: healthier trucks, lower emissions, and a logistics industry that’s not just efficient, but truly sustainable. And we are actively building the technology to make it happen,” she adds.

Collaborative efforts and government initiatives
Addressing these challenges necessitates collaboration between industry stakeholders and government bodies. The Indian government is facilitating Memorandums of Understanding (MoUs) for new technologies, promoting research and development through incentives, and providing subsidies to encourage the adoption of green logistics practices. Such partnerships are crucial for creating an ecosystem conducive to sustainable logistics.
Furthermore, the Indian cement industry’s commitment to green logistics is poised to yield significant environmental and economic benefits. As technological advancements continue and infrastructure improves, the adoption of sustainable practices is expected to accelerate. This transition not only aligns with global sustainability targets but also positions the industry competitively in a rapidly evolving market.

Conclusion
Embracing green logistics is imperative for the Indian cement industry to mitigate its environmental impact and ensure long-term sustainability. Through the adoption of electric and alternative fuel vehicles, integration of renewable energy, and leveraging technological innovations, the industry is making commendable strides toward eco-friendly operations. Continued collaboration among industry players, government agencies and technology providers will be essential to overcome existing challenges and
fully realise the potential of green logistics in
cement manufacturing.

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Nuvoco commissions Surat grinding unit

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Published

16 hours ago

July 14, 2026

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Nuvoco Vistas Corp. has announced its financial results for the quarter ended June 30, 2026, reporting growth in volumes, earnings and profitability while advancing its expansion plans in western India.

The company inaugurated a 2-million-tonnes-per-annum (MTPA) grinding unit at its Limla Cement Plant in Surat on July 11, 2026, ahead of schedule. The facility, part of the Vadraj Cement assets, is expected to strengthen Nuvoco’s presence in western India while freeing up capacity at its Rajasthan plants to cater to demand in northern markets.

Progress at the Kutch project remains on track, with phased commissioning scheduled to begin in the third quarter of FY27. The company has also commenced work on a bulk cement terminal at Viramgam, Sachana, Gujarat, featuring a dedicated railway siding. The terminal is expected to become operational by the second quarter of FY28 and will support distribution across Gujarat. These projects form part of Nuvoco’s capacity expansion programme, which is expected to increase its total cement capacity to 35 MTPA by FY28.

During Q1 FY27, the company recorded cement sales volumes of 5.3 million tonnes, up 5 per cent year-on-year. Consolidated total income rose 9 per cent to Rs 31.29 billion, while EBITDA increased 7 per cent to Rs 5.72 billion, marking the company’s highest-ever first-quarter EBITDA. Profit after tax grew 20 per cent year-on-year to Rs 1.60 billion.

Commenting on the results, Jayakumar Krishnaswamy, Managing Director, Nuvoco Vistas Corp., said the company delivered improved business performance despite macroeconomic and geopolitical challenges. He attributed the results to disciplined execution, cost optimisation and operational efficiencies, while highlighting the early commissioning of the Surat grinding unit as a key milestone in the company’s expansion strategy.

He added that the company remains focused on prudent procurement, supply chain efficiency and cost discipline while monitoring geopolitical developments that could affect industry supply chains and input costs.

Concrete

Cement Sector Faces Sluggish Growth in First Half of FY27

April Price Hikes Unlikely To Offset Margin Decline

Published

2 days ago

July 13, 2026

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Nuvama Institutional Equities has warned that India’s cement industry is expected to record subdued volume growth in the first half of fiscal year 2026-27 before a recovery in the second half. The brokerage assessed that price increases implemented in April 2026 will be insufficient to offset an overall decline in sector profitability. It attributed the outlook to weak demand and fresh capacity additions scheduled during fiscal years 2026-27 and 2027-28 that are likely to keep prices under pressure.

The report noted that demand was sluggish in April and May 2026 owing to global uncertainty, labour shortages, heatwaves, constraints in raw materials and unseasonal rainfall. Producers raised prices across regions in April to mitigate rising petcoke costs and higher packaging expenses, but the increases proved short lived. Nuvama reported that standard petcoke prices rose to USD153/t, around USD41/t higher than in the third quarter of fiscal year 2025-26.

Price correction followed weaker demand, limiting the net increase to about Rs 10-12 per bag by the end of the quarter. Imported petcoke prices have since fallen to USD132/t from a recent peak of USD168/t, although they remained roughly USD20/t higher quarter on quarter. The brokerage expected the higher input cost impact to begin reflecting from late quarter one of FY27 and to continue into early quarter two.

Nuvama also estimated that crude linked increases were likely to raise packaging costs by about Rs 120-150/t and to exert upward pressure on freight. It warned that soft demand combined with significant new supply coming on stream in FY27-28 would keep pricing under strain and constrain near term margin recovery. The report concluded that volume growth was likely to be sluggish in the first half of FY27 before recovering in the second half.

Concrete

Nuvoco Vistas launches Limla cement plant, expands Gujarat footprint

Published

2 days ago

July 13, 2026

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Nuvoco Vistas opens a 2 MMTPA grinding unit at Limla, entering Gujarat and advancing its target of 35 MMTPA capacity by FY 2028.

Surat (Gujarat)

Nuvoco Vistas Corporation Ltd, a part of Nirma Group and one of India’s leading building materials company, has inaugurated the Limla Cement Plant in Surat (Gujarat), one of Vadraj Cement Limited’s (VCL) principal manufacturing facilities. The commissioning represents a key milestone in Nuvoco’s acquisition and restoration of VCL, while supporting the company’s expansion across the Western Indian cement market.

Vadraj Cement Limited is a subsidiary of Nuvoco Vistas Corporation Limited and has installed cement capacity of 6 MMTPA across its assets. The Limla inauguration therefore represents the first operational step in the acquired platform’s wider revival, while the Kutch facilities provide clinker supply, mineral security and coastal logistics support for the western business.

Nuvoco completed its acquisition of Vadraj Cement Limited, then under the Corporate Insolvency Resolution Process, after paying a consideration of Rs 1,800 crore in June 2025. VCL’s asset portfolio comprises a clinker unit at Kutch and a grinding unit at Limla in Surat. It also includes high-quality captive limestone reserves and a captive jetty at Kutch, supporting more efficient logistics. Following the takeover, Nuvoco began an extensive programme of restoration, refurbishment and expansion at both locations, leading to the commissioning of the Limla plant.

The Limla Cement Plant is expected to support a phased increase in sales volumes across Gujarat. It will also help Nuvoco supply neighbouring markets in Western Maharashtra and release cement capacity from its northern plants, which can consequently be redirected towards markets in North India. The plant will manufacture a full portfolio comprising Ordinary Portland Cement, Portland Slag Cement, Portland Pozzolana Cement and Portland Composite Cement. It will additionally produce the complete Nuvoco Duraguard range, including the premium Nuvoco Duraguard Microfibre product. The acquisition is also expected to generate operational synergies with Nuvoco’s existing plants at Nimbol and Chittorgarh in Rajasthan, improving logistics optimisation and market reach across important regional markets.

The grinding unit at the Limla Cement Plant was completed ahead of schedule, with 2 MMTPA of capacity now inaugurated to expand Nuvoco’s operating scale and customer reach. After Vadraj Cement’s assets become fully operational, plants in North and West India are expected to account for nearly 40 per cent of Nuvoco’s total cement capacity. This will broaden the company’s manufacturing network, strengthen access to high-growth markets and support its plan to increase consolidated cement capacity to 35 MMTPA by FY 2028, reinforcing its longer-term growth strategy.

Commenting on the development, Jayakumar Krishnaswamy, Managing Director, Nuvoco Vistas Corp Ltd, said: “The inauguration of the Limla Grinding Unit in Surat is an important milestone in Nuvoco’s growth journey and demonstrates our commitment to disciplined, value-accretive expansion. Gujarat is strategically significant for Nuvoco, with substantial opportunities arising from infrastructure investment, industrial growth, rapid urbanisation and continuing demand from the housing and construction sectors. The facility strengthens our regional footprint, improves operational flexibility and increases our ability to serve customers across northern and western markets with greater reliability and efficiency.”

He added: “Through the Vadraj acquisition, we have refurbished and restarted a strategically important asset, returning it to operations in record time through strong execution and collaboration between teams. The achievement demonstrates our ability to create value from acquired assets, fulfil our commitments and retain the confidence of stakeholders. It also highlights the strength of our project delivery capabilities and our continued focus on building sustainable, profitable growth over the long term.”

Nuvoco Vistas Corporation Limited is a building materials company whose vision is to build a safer, smarter and more sustainable world. It is among the leading players in East India and has a significant presence across North and West India. Nuvoco began operations in 2014 with a greenfield cement plant at Nimbol, Rajasthan. It later acquired Lafarge India Limited, which had entered India in 1999, followed by Emami Cement Limited in 2020 and Vadraj Cement Limited in April 2025. The company has also announced an expansion in eastern India through a new grinding mill at the Arasmeta Cement Plant, supported by several debottlenecking programmes involving equipment upgrades, process improvements and internal capacity initiatives. These developments place Nuvoco on track to achieve total cement capacity of approximately 35 MMTPA. The company reported total income of Rs 11,362 crore in FY 2025-26, reflecting its continuing growth trajectory.

Nuvoco operates a diversified portfolio across three segments: Cement, Ready-Mix Concrete and Modern Building Materials. Its cement portfolio includes Concreto, Duraguard, Double Bull, PSC, Nirmax and Infracem, covering Ordinary Portland Cement, Portland Slag Cement, Portland Pozzolana Cement and Portland Composite Cement. Its pan-India RMX business provides value-added products under Concreto for performance concrete, Artiste for decorative concrete, InstaMix for ready-to-use bagged concrete, X-Con covering M20 to M60 grades, and Ecodure for specialised green concrete. Nuvoco has supplied materials to projects including the Mumbai-Ahmedabad Bullet Train, Birsa Munda Hockey Stadium in Rourkela, Aquatic Gallery at Science City in Ahmedabad, and metro railway projects in Delhi, Jaipur, Noida and Mumbai.