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We are optimising our power and fuel mix

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Raju Ramchandran, SVP & Head Manufacturing – Eastern Region, Safety and Sustainability, Nuvoco Vistas, outlines how the company is systematically embedding alternative fuels and raw materials into its manufacturing process.

For Nuvoco Vistas, the shift toward alternative fuels and raw materials (AFR) is woven into the fabric of how the company operates, innovates, and plans for the long term. Nuvoco is approaching AFR as both an environmental imperative and a business advantage. In this interview, Raju Ramchandran, SVP & Head Manufacturing – Eastern Region, Safety and Sustainability, Nuvoco Vistas, discusses the operational complexities of scaling AFR, the evolving role of policy in enabling adoption, and how digitalisation is shifting kiln management from reactive to predictive.

How does AFR fit into your company’s long-term decarbonisation and cost optimisation strategy?
AFR has been a key focus area as we work towards reducing emissions while improving cost efficiency. At Nuvoco, sustainability is embedded in the company’s vision, with a strong focus on advancing circular economy principles across our operations. Over the years, we have steadily adopted practices around reuse, recycling and resource optimisation across our value chain — from raw materials and energy to water, waste and packaging. This has helped us reduce dependence on virgin resources while improving overall operational efficiency.
From a fuel perspective, we are optimising our power and fuel mix by replacing conventional fossil fuels with alternative fuels. Our kilns are designed to safely utilise a wide range of waste streams, including biomass, RDF from municipal solid waste, industrial solid waste and liquid solvents. We are also placing a strong emphasis on biomass and other lower-carbon fuels to further reduce our carbon footprint. Beyond sustainability, AFR also supports cost optimisation by reducing reliance on imported fossil fuels and improving fuel flexibility in our operations.
Our focus is on scaling up AFR usage in a structured and sustainable manner, supported by stronger sourcing ecosystems and process optimisation. This will not only help us lower emissions but also build more resilient and cost-efficient operations over the long term. With rising raw material cost the company is focusing on using alternate raw materials while keeping the quality of product intact. Here the R&D wing of the company CDIC is playing a crucial role in testing various alternative raw materials (ARM) in its state-of-the-art laboratory at Mumbai and bring out tailor made recipes to optimise usage of ARM.

What operational or technological challenges have you faced in scaling AFR usage across plants?
A key challenge in scaling AFR is the inherent variability of waste-based fuels. Unlike conventional fuels, AFR streams can vary in quality, composition and calorific value, which makes maintaining consistent kiln performance more complex. We have addressed this through targeted investments in pre-processing infrastructure, kiln system upgrades and stronger process controls, which help bring greater consistency to fuel quality and operations. Equally important has been building strong in-house capabilities ensuring that AFR is embedded into day-to-day operations. This has helped us move from a trial-based approach to making AFR a reliable and integral part of our manufacturing process.

How do you balance clinker quality, kiln stability, and emission norms while increasing AFR substitution rates?
At Nuvoco, higher AFR usage is never pursued at the cost of product quality or environmental compliance. Every alternative fuel goes through a rigorous pre-qualification and testing process before it is introduced into the system. Once in operation, we rely on real-time monitoring of critical parameters including kiln performance, emissions and clinker quality to ensure stable and consistent operations.
A lot of focus also goes into process optimisation and control systems, which allow our teams to manage variations in fuel characteristics without impacting kiln stability. This is supported by well-defined governance frameworks and trained plant teams, ensuring that AFR integration is handled in a structured and controlled manner. In our experience, when managed effectively, higher AFR substitution does not create trade-offs. Instead, it enables us to run more sustainable operations while maintaining product quality and full compliance with emission norms.

What roles do policy frameworks and regulatory support in India play in accelerating AFR adoption?
Policy frameworks have played a critical role in advancing AFR adoption in India. As highlighted in NITI Aayog’s cement sector decarbonisation roadmap, the use of alternative fuels such as RDF is a key lever for reducing emissions and improving energy efficiency in the industry. This is further reinforced by the GCCA India-TERI (2025), Decarbonisation Roadmap for the Indian Cement Sector: Net Zero CO2 by 2070, which also emphasises scaling AFR as a key pathway for decarbonisation in the cement sector. Regulatory support through CPCB’s co-processing guidelines and the Hazardous Waste Rules has enabled cement plants to safely utilise waste as an alternative fuel, creating a structured pathway for adoption.
More recently, policy direction has become even stronger. The government’s notification in January 2026 outlines a clear roadmap to increase fuel substitution rates from current levels to around 15 per cent over the next few years, along with measures to improve waste processing infrastructure. This provides both clarity and momentum for the industry to scale up AFR usage. At the same time, the opportunity lies in execution. Improving waste segregation at source, ensuring consistent availability of quality RDF, and strengthening coordination across municipalities, waste processors and industry will be critical to fully realise this potential.

How are you building supply chain ecosystems for consistent and quality AFR sourcing in a fragmented waste market?
Building a reliable AFR supply chain requires strong partnerships and a lot of on-ground coordination. Given how fragmented the waste ecosystem is, we work closely with municipalities, authorised waste processors and logistics partners to create stable, long-term sourcing networks. A big focus for us has been on bringing consistency into the system whether it is standardising fuel specifications or investing in pre-processing infrastructure to ensure the material we receive is usable and efficient for our kilns. We are moving towards more structured, long-term partnerships, which help ensure both quality and continuity of supply. Over time, this ecosystem approach gives us greater reliability at the plant level and helps scale AFR usage in a sustainable way.

Can digitalisation and process optimisation unlock higher thermal substitution rates (TSR)?
Digitalisation is becoming a big lever in improving TSR. Earlier, a lot of decisions around fuel mix and kiln optimisation were based on experience and manual adjustments. At Nuvoco, we are leveraging advanced analytics and AI to bring greater precision and consistency to kiln operations. We are working on an AI-enabled dashboard that gives us real-time visibility into kiln operations and waste heat recovery, helping teams take quicker and better decisions on the ground.
Alongside this, we are developing an AI model that recommends the most efficient fuel mix, factoring in variables like moisture, cost, and operating conditions. The real shift is from being reactive to becoming predictive anticipating what works best rather than adjusting after the fact. This not only helps improve TSR but also drives efficiency and cost optimisation.

  • Kanika Mathur

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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