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The use of Alternative Raw Materials (ARM) is expanding.

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Rajat Goswami, Director, Optifuel Enviro, explains how structured sourcing, process optimisation, and robust compliance frameworks are key to unlocking consistent, high TSR AFR adoption in cement plants.

As cement plants push toward higher thermal substitution rates, the challenge is no longer just adopting AFR but integrating it into a structured, scalable operating model. In this conversation, Rajat Goswami, Director, Optifuel Enviro, outlines how cement producers can move beyond fragmented sourcing to build reliable AFR ecosystems, optimise pyro processes, and align technical, commercial, and regulatory strategies for sustained performance.

How can cement plants move from fragmented AFR sourcing to a structured, high-TSR model across both hazardous and non-hazardous waste streams?
To achieve higher and consistent TSR, cement plants need a structured AFR strategy supported by a dedicated business development team. This team should be divided into focused streams-one for high-volume, TSR-positive materials like RDF and biomass, another for low-volume materials with negative cost benefits such as industrial hazardous waste and sludges, and a third for pre-processed AFR from external platforms. Quality-based sourcing is critical, with strict adherence to parameters like calorific value, ash, moisture, chlorine and particle size to ensure stable kiln performance.
From a commercial and operational perspective, companies should shift to long-term contracts of 5-10 years, especially with large waste generators, to ensure supply stability and cost efficiency. Proper AFR processing-shredding, blending, and homogenisation-is essential to convert waste into consistent, kiln-ready fuel. Strengthening pre-processing capabilities, in-house or through partnerships, is key to achieving higher TSR reliably.

What are the most critical technical bottlenecks in utilising diverse AFR materials, and how can they be systematically resolved at the plant level?
Improper AFR feeding is a major cause of kiln disturbances. Plants must invest in advanced feeding systems such as VFD-controlled screw feeders, apron feeders, and elevators for consistent feed. Selecting the correct feeding point-preferably at the calciner-is critical to ensure proper residence time; poor placement can lead to incomplete combustion and frequent CO generation. Layout constraints at preheater towers can be addressed using air-supported or pipe conveyors for efficient installation.
Another challenge is coating and ring formation due to imbalances in alkali, chlorine and sulphur, especially from AFR inputs. Maintaining optimal ratios and conducting hourly hot meal sampling
helps monitor chloride levels and enable corrective action. Blending AFR streams to control chlorine and ensuring consistent feed quality are essential for stable kiln operation.

How do you evaluate and balance calorific value, chemical composition, and risk when integrating hazardous wastes into cement kilns?
AFR evaluation must cover three dimensions: energy contribution, chemical composition, and
safety risk. Energy assessment includes NCV (as received), moisture, and ash content, which affect combustion efficiency. Chemical analysis must monitor
sulphur, chlorine, alkalis, and heavy metals (Hg, Pb, As) within CPCB limits to avoid operational and environmental risks.
Safety evaluation includes storage hazards (flash point above 55°C or suitable systems for volatile materials), emissions risks, and regulatory classification under Hazardous Waste Rules, 2016. A strong evaluation framework includes pre-acceptance lab testing, controlled trial runs with gradual AFR increase, and continuous monitoring of kiln parameters such as free lime, clinker litre weight, coating condition, emissions, and chloride in hot meal.

What role does pyro process optimisation play in enabling higher and more stable AFR substitution rates?
TSR levels above five per cent require strong kiln optimisation, as AFR directly impacts process stability. Key parameters include kiln outlet oxygen control for efficient combustion and minimising coal fluctuations through proper control systems. Stable burning zone temperature and kiln torque are essential to avoid process disruptions.
Flame shape and momentum must be optimised for proper heat transfer, while precise calciner temperature control ensures complete AFR combustion. Stable kiln draft is equally important, indicating continuous raw mix flow in the preheater. Together, these ensure stable operations and enable higher AFR usage without affecting product quality.

How can synthetic gypsum and alternative raw materials be scaled to reduce dependence on natural resources without affecting product quality?
The cement industry is increasingly using synthetic gypsum as a substitute for natural gypsum, with multiple viable sources available. Captive synthetic gypsum plants produce gypsum through the reaction of limestone with high-purity (98 per cent) sulphuric acid, delivering quality equal to or better than natural gypsum. Leading players like Shree Cement and Ambuja Cement use such systems to replace 50 per cent to 100 per cent of natural gypsum, with purity levels adjustable
between 50 per cent and 85 per cent. Another key source is Flue Gas Desulphurisation (FGD) gypsum from power plants using pet coke or high-sulphur coal, where purity typically ranges between 75 per cent to 80 per cent. In addition, chemical or industrial gypsum generated as a by-product from industries such as dyes, specialty chemicals, fertilisers, rolling mills, and water treatment is widely used due to its low cost, although purity varies between 40 per cent to 80 per cent and may include impurities like chemicals and heavy metals.

To use synthetic or chemical gypsum effectively, certain parameters must be ensured:
• Adequate purity, specifically CaSO4•2H2O content
• Low contaminants such as chlorides and organics
• Consistent quality through proper sourcing
and testing
To enhance its usage, cement plants should invest in:
• Drying and blending systems for consistency
• Long-term supply contracts with power plants and waste generators
• Quality monitoring and controlled dosing to maintain performance
Alongside gypsum, the use of Alternative Raw Materials (ARM) is expanding, driven by availability and location. Common ARMs include slag, fly ash, lime sludge, red mud and mine rejects. Fly ash is widely used in PPC cement, typically at 25 per cent to 30 per cent, while slag usage depends on proximity to steel plants. In regions like Chhattisgarh and Jharkhand, cement manufacturers use 50 per cent to 55 per cent slag in slag cement. These materials reduce dependence on natural resources while improving sustainability and cost efficiency.

What are the key regulatory and compliance challenges in AFR utilisation, and how can industry navigate them more effectively?
AFR adoption in India is governed by CPCB and SPCBs, presenting challenges such as lengthy approvals for hazardous waste, inter-state movement restrictions, extensive documentation, and strict emission compliance. These factors often slow down scaling efforts.
To navigate this, companies should secure approvals for multiple pre-approved waste categories and promote digital manifest systems for better traceability. Implementing Continuous Emission Monitoring Systems (CEMS) ensures compliance and builds regulator confidence. Proactive engagement with authorities-focused on transparency and collaboration-can significantly accelerate AFR adoption.

What practical roadmap should a cement plant follow to move from zero per cent to 20 per cent+ TSR sustainably?
Cement plants can scale AFR usage in phases. In Phase 1 (zero to five per cent), conduct kiln audits, install basic feeding systems, and start with easy AFR streams like biomass and RDF. Phase 2 (five per cent to 10 per cent) focuses on pre-processing, hazardous AFR trials, and building sourcing contracts.
In Phase 3 (10 per cent to 20 per cent), plants should implement multi-point feeding, enhance pre-processing, expand hazardous AFR usage, and strengthen QA/QC systems. Phase 4 (20 per cent+) involves advanced systems like chlorine bypass, Hot Disc, and pyrolysis, along with large pre-processing facilities, AI-based controls, and strong coordination between sourcing and plant teams to ensure sustained high TSR.

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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