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Regional mix helps Ambuja post strong results

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Ambuja Cements’ exposure to west, north and east India drove strong growth in realisations, which were much better than the forecasts. Cement volume growth of 5 per cent was also a positive in the current context, driving market share gains. The company managed to post the highest unit EBITDA in nearly 19 quarters, as was the case with its 50 per cent-sub, ACC. Net earnings still fell 13 per cent YoY to Rs 3.9 billion, which was 22 per cent ahead of the estimate.

Ambuja’s 2Q standalone EBITDA rose 6 per cent YoY to Rs 6.1 billion, 19 per cent ahead of our estimate. Depreciation was a bit lower and so was other income; the tax rate of 28.2 per cent too came in a bit lower. Net earnings declined 13 per cent YoY to Rs 3.9 billion, which was 22 per cent ahead of our estimate. Consolidated EBITDA (including ACC) was up 21 per cent YoY to Rs 12.9 billion while net earnings rose 7 per cent YoY to Rs 5.6 billion.

Ambuja reported 5 per cent YoY growth in cement volume with overall volume up 4 per cent; this was a tad lower than our forecast. Cement realisation, however, rose at a strong 11 per cent QoQ to Rs 233 per bag. Ambuja benefitted from its strong presence, as all its regions had strong pricing trends. We believe that prices rose the most in west India followed by north and then the east. Overall costs were also under check with unit cost up just 1 per cent QoQ. The cost of manufacturing (materials+energy) rose 2 per cent QoQ while freight was marginally down. Unit EBITDA increased to a 19-quarter high of Rs 1,010 per tonne (+67 per cent QoQ). Ambuja’s 50 per cent-held subsidiary, ACC, reported better results than we had expected led by higher volume and lower costs. Overall 2Q EBITDA rose 20 per cent YoY to Rs 5 billion, 12 per cent ahead, and a saw strong beat at the net earnings level too. Volume growth of 10 per cent was also strong led by new capacity in the east with a 5 per cent QoQ rise in net realisations. Unit EBITDA at ACC was also at a 19-quarter high of Rs 735 per tonne.

JSW IPO to hit market in 2019
JSW Cement, a subsidiary of JSW Steel, announced that it is looking at a valuation of around Rs 25,000 crore to Rs 30,000 crore when it issues its initial public offer (IPO) in 2019.

The company is eyeing at raising Rs 2,500-Rs 3,000 crore from a 10 per cent dilution in the first phase. It plans to propose for an IPO after 2019 general elections as the company want to be a 20 MT cement company with limestone reserves in two to three states.

Govt nod for Cement Corp revival
The Government has approved revival of the three operating units of state-owned Cement Corporation of India and will shut down the non-operating units of the company. In a written reply in the Rajya Sabha, Minister of State for Heavy Industries and Public Enterprises Babul Supriyo said that the Government has approved ‘revival (of Cement Corporation of India) as a public sector enterprise’through closure of non-operating units and revival of three operating units.

The Board for Reconstruction of Public Sector Enterprises had recommended closure and sale of non-operating units and revival of operating units as a public sector enterprise. However, in its reply, the Government was silent on the sale of the non-operating units and said it has approved their closure.

PWD to use green tech for laying roads
The Public Works Department (PWD) will go in for Cold In-Place Recycling (CIR) of bituminous pavement, an environment-friendly green technology for laying roads. The National Highway wing of the PWD is adopting the new technology close on the heels of using shredded plastic, rubber, application of geosynthetics, coir geotextiles and pavement recycling to enhance the life of road corridors.

The National Highway 66 corridor between Pathirappally and Purakkad in Alappuzha district has been subjected for the first time in the State the CIR, a rehabilitation technique of pavement in which the existing materials are reused. Of the 28-km stretch identified, 16 had been relaid using green technology with Indian Road Congress (IRC) specifications and is offering cozy ride to motorists, Chief Engineer, PWD, NH KP Prabhakaran told. The remaining stretch in Alappuzha will be taken up after the rain and has plans to use it to more NH corridors.

The Reclaimed Asphalt Pavement (RAP) material is obtained by milling, planning or crushing the existing pavement. RAP material along with fresh aggregate are mixed, laid and then compacted. The CIR can restore old pavement to the desired profile, eliminate ruts, restore the crown and cross slope and eliminate potholes, unevenness and rough areas.

In Alappuzha, the pavement condition warranted for almost a full depth reclamation as the damages extended up to the sub-base at many locations. The pavement was milled for a thickness of 160 mm and relaid using cold process.

A wearing course of 50 mm BC was given over recycled layer. The CIR involves reuse of existing pavement materials without application of heat. Foam bitumen was used as recycling agent in the cold milling equipment. Almost 15 per cent fresh aggregate was added along with cement.

The existing road would be cleaned by air compressor and the around 15 per cent aggregates and 1.5 per cent cement would be pre-spread on the asphalt road. The road would be rehabilitated by in-situ pulverising (milling) the top 160 mm of the existing pavement. At the time of pulverizing, the pre-spread aggregates, cement and hot bitumen is injected into milled surface. The recycled mix is then compacted and graded to profile using roller and grader and eventually sealed by BC.

Bank of Baroda moves NCLT to recover money from Binani
Bank of Baroda has filed a petition against Binani Cement Ltd with the National Company Law Tribunal’s (NCLT) Kolkata bench, seeking to recover Rs 97 crore in an outstanding loan under the new Insolvency and Bankruptcy Code after the firm failed to come up with a restructuring plan to clear its dues.

Lawyers for Binani Cement, a privately held firm of the Braj Binani Group, claimed that the application from Bank of Baroda had several technical flaws, and that its claim was minuscule compared with the total value of the group’s assets, which, according to its lawyers, is Rs 14,000 crore.

Binani Cement, which is a unit of Binani Industries Ltd, had assets worth Rs 5,074 crore at the end of March, according to the holding firm’s auditor, MZSK & Associates. NCLT’s Kolkata bench reserved its order on whether or not it would admit the lender’s application under the new insolvency code. If the application is admitted, the company’s board will be superseded and an interim resolution professional appointed to take control of its assets and operations. Bank of Baroda wants management consulting firm Deloitte to be appointed as interim resolution professional.

Pratap Chatterjee, counsel for Binani Cement, said Bank of Baroda was not the lead lender to the cement maker and that it had not taken the approval of the joint forum of lenders before moving NCLT. Citing Reserve Bank of India rules, Chatterjee said Bank of Baroda was required to write to the joint forum and wait for at least 30 days before unilaterally moving NCLT.

Chatterjee asked why Bank of Baroda was seeking the appointment of an administrator to recover a small loan of Rs 97 crore when the lead banker, Central Bank of India, was not seeking dispute resolution in this manner.

Gujarat HC notice to govt, Ambuja over mining safety
The Gujarat High Court has issued notice to concerned authorities and the cement factory in Gir-Somnath district over a PIL complaining that safety measures are not taken in mining activity and that the mining is illegally carried out in reserve forest areas.

Petitioner RTI Activist Sangathan has sought direction from the high court to direct the authorities to make Gujarat Ambuja Cement Ltd compel to erect fence around its mining areas. The petitioner has complained that at least 15 persons have lost their lives in Gir-Somnath district where the company is undertaking its mining operations. This has happened due to deliberate neglect on part of the company and the authorities that fencing is a must safety measure.

The petitioner alleged that the company also undertakes mining in private land, grazing land as well as in the forest areas also. Upon hearing the case, the HC issued notice to the Centre, the cement company, Director of Mining Safety, DySP of Gir-Somnath and the Jamwala Range Forest Officer of Gir sancturary. Further hearing is on September 6.

LafargeHolcim lowers growth forecast
Swiss-French cement group LafargeHolcim has lowered its forecast for growth in global cement markets this year after second quarter sales fell short of expectations. Based on developments in the first half 2017, it expected growth in its markets this year of between 1 and 3 per cent in 2017, the world’s largest cement company by sales said. That compared with the 2 to 4 per cent it had expected in May.

However, Beat Hess, Chairman, said that the group still expected to meet its 2017 and 2018 targets, ‘with key countries such as the US, India, Nigeria and, notably this quarter, Mexico making significant contributions to earnings, more than offsetting headwinds in some of our markets.’

LafargeHolcim reported net sales had risen by 3.6 per cent to SFr 6.85 billion on a like-for-like basis in the three months to June. That compared with the almost SFr 7 billion expected on average by analysts. Adjusted pre-tax operating profits of SFr 1.74 billion were 10 per cent higher than a year earlier on a like-for-like basis – and slightly higher than expected by analysts.

LafargeHolcim was formed by the ?41 billion merger in 2015 of Lafarge of France and Holcim of Switzerland. Over the past year, the group has been dogged by a scandal over a plant it operated in Syria until September 2014. In April, Eric Olsen resigned as chief executive to help restore calm at the company – although the company said he was not involved in or aware of any wrongdoing.

Global pension funds keen on highway projects
International pension funds with an appetite for staying invested for several years are expected to be primary suitors for the highway contracts to be auctioned by the National Highways Authority of India (NHAI). Experts say the Government wants to generate cash to support its next tranche of investment in the highways sector. They are of the view that foreign pension funds would be keen to bid for such projects because they typically invest in those with a longer duration, unlike private companies, which look for quick results.

‘Since most of the construction-related risk is taken care of by the Government, the private sector would be interested in these contracts because the traffic is already established and the Government is hopeful of getting surplus cash post auctions,’said Adil Zaidi, partner-economic development and infrastructure advisory, EY. He said the Government should plan the highways and alignments it intended to auction.

Global pension funds might be attracted by the certainty of the return on investment, an analyst said. Last year, the Cabinet Committee on Economic Affairs authorised the NHAI to monetise 111 publicly-funded requiring reduced NHAI involvement in projects.

Further, the corpus generated from the proceeds of such project monetisation could be utilised by the Government to meet its requirements on development and O&M of highways in the country NH projects that were operational and were generating toll for at least two years after the Commercial Operations Date (COD) through the toll-operate-transfer (TOT) model. Around 75 operational NH projects completed under public funding have been preliminarily identified for potential monetisation using the TOT model. This model would provide an operation and maintenance (O&M) framework, requiring the NHAI’s reduced involvement in projects after construction completion.

Further, the corpus generated from the proceeds of such project monetisation could be utilised by the government to meet its fund requirements regarding development and O&M of highways in the country. This could help the development and strengthening of highways in unviable geographies. The Government aims to cater for that category of investors which is averse to taking construction risks but is adequately equipped for making long-term investments in road infrastructure, e.g. institutional investors including pension and insurance funds, and sovereign funds. In the past Macquarie, Brookfield, Cube Highways, and other such global funds took equity in NH projects worth about 4,150 crore, from which private promoters had exited. The auction can also be seen as a move to allow the entry of sovereign funds from Abu Dhabi and Qatar into such projects.

Orient posts Rs 39 cr net profit
CK Birla group firm Orient Cement Ltd reported a net profit of Rs 38.92 crore in the first quarter ended on June 30, 2017. The company had posted a net loss of Rs 7.56 crore in the same period last fiscal, Orient Cement Ltd said.

Revenue from operations during the period under review was at Rs 656.73 crore as against Rs 505.21 crore in the year-ago period, up 30 per cent. During the quarter, the company signed definitive agreement for acquisition of 74 per cent shares of Bhilai Jaypee Cement from Jaiprakash Associates and its nominees for an enterprise value of Rs 1,450 crore.

The company also inked similar pact for the business transfer of Nigrie Cement Grinding unit of Jayprakash Power Ventures Ltd at an enterprise value Rs 496 crore.

Govt to assist Assam for repair of highways
The Minister of Road Transport & Highways and Shipping Nitin Gadkari has announced a financial assistance of Rs 200 crore as the first installment for the immediate repairs of National Highways damaged due to heavy rains in Assam. The announcement was made after the Assam Chief Minister Sarbananda Sonowal called on Gadkari for a review of the situation in Assam where heavy rains have led to National Highways being damaged.

Meanwhile, an expert team of the National Highways Authority of India (NHAI) officials has been dispatched for on the spot assessment of the damage. If needed, further financial assistance will be provided based on the NHAI team’s report. Another Rs 400 crore has been sanctioned for dredging work in Brahmaputra river. The work will start from September using six dredgers. Dredging will increase the depth of the river and prevent it from flooding. A total of seven bridges are to be built on Brahmaputra river during the next five years for better road connectivity with the NE region. Work on two bridges is underway. DPR for three more bridges is to be prepared by the State Government.

Gadkari has also asked the State Government to submit the DPR for the proposed Bhramaputra National Highways to be built along the banks of the river at a cost of Rs 40,000 crore.

Govt may lease out infra projects to private operators: NITI CEO
The Government needs to exit infrastructure projects and even look at handing over jails, schools and colleges to the private sector as happens to be the case in countries like Canada and Australia, NITI Aayog CEO Amitabh Kant said. At the same time, he was highly critical of India’s private sector, terming it as ‘most irrational’and ‘insensitive’. Kant said it messed up projects by aggressive bidding and creating current crisis in the public private partnership (PPP) model.

‘The Government has done a lot of big projects but the government is not good at operation and maintenance. Therefore, the government must start the process of reverse BOT (build, operate and transfer), must sell out projects and let the private sector handle it,’he said addressing India PPP Summit 2017, organised by industry body FICCI.

Citing the example of dirty bathrooms at airports, which fall under the Airport Authority of India, he said: ‘We must bring in the private sector. That is, the fastest way to bring in private sector and bring private sector money back in infrastructure. These projects are fully de-risked.’

Kant also said that there were huge opportunities for the private sector in India like station re-development projects, Port construction and Sagarmala projects. There is no shortage of money in the market and India can use the opportunity by de listing its projects, he said.

Dangote records sales volume rise across Africa
Dangote Cement, Africa’s largest cement producer, has announced its unaudited results for the six months ended June 30, 2017, posting a 12.6 percent increase in sales volume across Africa. Financials released indicated that the increase in sales volume showed a growing capture of Pan-African market as Dangote Cement continues to gain grounds.

Revenues from operations in Nigeria increased by 34.5 per cent while Pan-Africa revenue increased by 63.7 per cent mainly as a result of increased volumes and foreign exchange gains when converting the sales from country local currency into Naira. Analysis of the half year result revealed that sales volumes of African operations increased by 12.6 per cent to 4.7 million metric tonne with Sierra Leone making a 53 kt maiden contribution.

Record of sales from its operations scattered around the African continent revealed that a total of 1.1 million metric tonnes of cement was sold in Ethiopia, almost 0.7 million metric tonne sold in Senegal, 0.6 million metric tonne sold in Cameroon, and 0.5 million tonne in Ghana.

Also, 0.4 million metric tonnes of cement was sold in Tanzania and 0.3 million tonne in Zambia. Sales volumes from Nigerian operations fell from 8.8 mt to 6.9 mt, occasioned by the onset of rains which stalled many construction projects.

East proves best for Shree Cement
Shree Cement’s Street-beating Q1 performance was led by its cement business. Though the company’s power segment reported a loss at the operating level, cement was the show-stopper, enabling Shree Cement post an EBITDA (earnings before interest, tax, depreciation and amortisation) of Rs 680 crore, which was reasonably ahead of Bloomberg consensus estimates of Rs 646 crore. A better-than-expected recovery in cement realisations, led by price hikes since the start of April, helped the company beat cost pressures too.

Birla to invest Rs 2.4k cr in new cement plant Birla Corporation Limited, the MP Birla Group flagship company, would invest around Rs 2,400 crore for its proposed new cement plant at Mukutbandh near Nagpur. ‘We are planning to invest around Rs 2,400 crore for 4 MTPA greenfield cement plant at Mukutbandh. We will now go to the board for approval’, Chairman of Birla Corporation Harsh V Lodha told at the company’s AGM. Lodha said after the completion of the new plant, the total cement production capacity of the company would touch 20 MTPA from the present 15.5 MTPA after acquisition of Reliance Cement. Funding of the project would be a mixture of debt and internal accruals, he said.

Birla Corporation had acquired the cement plants of Reliance at a consideration of Rs 4,800 crore. To fund this acquisition, Birla Corporation had taken a loan of Rs 1,000 crore on its books. Lodha said that the company was making some capital expenditure at the acquired plants to make it more efficient.

‘Reliance’s plants did not have a captive power plant. So we are in the process of setting up a waste heat recovery system at a cost Rs 125 crore’, he said. This would provide us power to meet a portion of the total demand, 45 MW, free of cost. ‘We are studying the feasibility of a captive thermal power plant there’, he said.

Lodha said as the demand for cement was rising in central India and no new capacity was coming up in the region, the company was well-poised to take advantage of this. On GST, he said it would not have any major impact.

Concrete

Green Construction Through Cement Innovation

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Indian Cement Review (ICR) and Fuller Technologies brought industry, policy and technology leaders together to discuss how cement innovation can drive green construction at scale, writes Rakesh Rao.

India is building at a pace few countries can match. Highways, airports, housing, logistics parks, industrial corridors and urban infrastructure are reshaping the country’s economic geography. But beneath this growth story lies a difficult question: can India continue to build at scale without locking itself into a high-carbon future?

That question formed the core of an online panel discussion titled “Driving Green Construction Through Cement Innovation”, organised by Indian Cement Review (ICR) in association with Fuller Technologies as the Presenting Partner on June 25, 2026. The webinar brought together experts from cement technology, R&D, global industry platforms, building performance policy and international development cooperation to examine how low-carbon cement and material innovation can accelerate India’s green construction transition.

The discussion came at a crucial time. India has committed to achieving net-zero emissions by 2070 and reducing the carbon intensity of its economy by 45 per cent by 2030. At the same time, the country’s construction sector is expanding rapidly, driven by urbanisation, infrastructure development, housing demand and industrial growth. Cement, as one of the most widely used construction materials, sits at the heart of this transition. It is indispensable to development, but also central to the challenge of reducing embodied carbon in buildings and infrastructure.

Moderated by Nitika Krishan, Senior Urban Infrastructure and Sustainable Policy Consultant, the panel featured:

  • Kiranmai Sanagavarapu, Director, Low Carbon Solutions, Fuller Technologies;
  • Dr Hemantkumar Aiyer, VP and Head R&D, Nuvoco Vistas Corp Ltd;
  • Devika Wattal, Innovation Lead, Global Cement and Concrete Association (GCCA);
  • Dr Sunita Purushottam, MD, GBPN India (Global Buildings Performance Network); and
  • Vaibhav Rathi, Senior Technical Advisor, GIZ (the German Agency for International Cooperation)

Setting the tone for the discussion, Nitika Krishan underlined the scale of the challenge before the sector. “The question before us is no longer whether we build, but how we build sustainably,” she said. She pointed out that construction accounts for nearly 40 per cent of global energy-related carbon emissions when both operational and embodied carbon are considered. Cement production, she added, remains one of the hardest industrial processes to decarbonise.

For India, this is not merely an environmental issue. It is a development issue, a competitiveness issue and increasingly, a market issue. As one of the world’s largest cement producers and among the fastest-growing construction markets, India’s material choices will influence the carbon trajectory of its built environment for decades. As Krishan observed, sustainability solutions in economies such as India must not remain limited to laboratory success. They must be scalable, commercially viable and practical at national level.

The innovation gap: From technology to market

Experts believe that there is a need to bridge the innovation gaps for making decarbonisation in cement and concrete scalable. Devika Wattal of GCCA, explained, “The starting point must be the core cement manufacturing process itself. The first and foremost is the heart of our process, the heart of cement manufacturing. How do we reduce clinker? That is always a topic where industry is working very intrinsically.”

Clinker reduction remains one of the most important pathways for lowering emissions in cement. Since clinker production is energy-intensive and chemically emits carbon dioxide, reducing the clinker factor through supplementary cementitious materials (SCMs), blended cements and new chemistries can have a significant impact. Wattal also noted that carbon capture, utilisation and storage (CCUS) will have a role, though it may not be the first lever for all markets.

However, she stressed that innovation cannot stop at technology development. A solution that works in the lab must also be adaptable to industry, scalable in production and acceptable in construction practice. “It is important for that innovation to be adaptable, to be scalable, and so that it can be executed in real time,” she said.

Wattal also called for stronger enabling systems around innovation. These include performance-based standards, product-level embodied carbon databases and clearer frameworks for evaluating green materials. Without these, low-carbon cement products may struggle to compete with conventional materials in procurement and design.

R&D must balance carbon, cost and performance

Bringing in the R&D perspective into the discussion, Dr Hemantkumar Aiyer of Nuvoco Vistas emphasised that low-carbon cement development cannot be treated as a single-variable exercise. Cement must perform in real construction conditions. It must deliver strength, durability, consistency and cost competitiveness, while also reducing carbon.

“The root of understanding and balancing all these aspects lies in materials, and knowing the materials,” he said.

According to Dr Aiyer, R&D teams must understand the variability of raw materials such as fly ash, slag and clinker. Different sources produce different material behaviours. This makes mix optimisation, material characterisation and processing-property relationships critical. When performance is affected, cement manufacturers must understand how strength enhancers, admixtures and other performance chemicals interact with the material system.

He also linked material science with process efficiency. Clinkerisation takes place at extremely high temperatures, around 1,400 to 1,450 degrees Celsius. Any improvement in raw mix design, process control or energy optimisation can, therefore, help reduce emissions and cost. Dr Aiyer pointed to artificial intelligence-based optimisation, Cement 4.0 tools and advanced software as important enablers for real-time process and material control.

“The more you understand the materials, the more you can control it,” he said.

LC3: The promise is proven, the sequencing is not

Limestone calcined clay cement, commonly referred to as LC3, has attracted global attention because it can reduce clinker content significantly by using calcined clay and limestone while maintaining performance in many applications. Kiranmai Sanagavarapu of Fuller Technologies said the technology itself has already moved beyond proof of concept. Fuller Technologies has worked with calcined clay technology for nearly two decades and has seen plants running in France and Ghana. These plants, she said, are meeting local and national specifications, while the economics are beginning to make sense.

“The calciner is performing, the economics is stacking up, it is making business sense to produce,” she said.

But if the technology is viable, why has adoption not scaled faster? For Sanagavarapu, the answer lies in project sequencing. Too often, clay characterisation happens after equipment is specified. This, she warned, is a backward approach because calciner design depends on clay mineralogy, kaolinite content, iron levels, reactivity, moisture and other variables.

“If you don’t know what your deposit looks like before you commit for the equipment, you are, in a way, going blind into designing,” she said.

She also identified permitting and plant integration as major bottlenecks. Environmental clearances, mining permissions and local regulatory approvals must begin early. Similarly, calcined clay must be integrated into existing grinding, blending and logistics systems from the design stage, not treated as an afterthought during commissioning.

India already has IS 18189:2023 standard for LC3, but Sanagavarapu pointed out that the standard is not yet visible enough in procurement documents. “The gap between what is technically being permitted and what the procurement is asking is the single biggest bottleneck,” she said.

In her view, successful scale-up depends on getting the sequence right: clay characterisation first, permitting in parallel, standards aligned with construction, and integration built into plant design.

India’s LC3 journey: Progress, but demand remains thin

Providing details of India’s LC3 commercialisation experience, Vaibhav Rathi of GIZ noted that JK Cement carried out the first commercial production of LC3 at its Rajasthan plant, followed by JK Lakshmi Cement three months later. These initiatives were supported by the International Climate Initiative of the Government of Germany, with IIT Delhi contributing deep institutional knowledge on LC3 research and BIS certification.

Rathi said India’s early experience has produced clear lessons. One of the biggest was the need to build capacity among regulators. While BIS certification existed, State Pollution Control Boards were unfamiliar with the technology and unsure about the approval pathway.

“The capacity building is not just needed amongst the producer and the users of the cement, but also the regulators who are working with this technology for the first time,” he said.

He also highlighted the need for better information on China clay deposits. Since China clay is currently classified as a minor mineral, centralised data on availability, quality and location is limited. If cement manufacturers are to adopt LC3 at scale, stronger mineral intelligence will be important.

The third issue is demand. LC3 has already been used in projects such as Palava City in Mumbai and Noida International Airport, but these remain limited examples. “It is in a chicken and egg situation,” Rathi said. “Cement companies are saying we need more demand, and users are saying there is not enough cement available.”

Public procurement, he suggested, could help break this cycle. If agencies such as CPWD and other public bodies begin testing, accepting and specifying LC3, it could create the market confidence needed for cement companies to invest in production and storage.

Building codes must catch up with innovation

Dr Sunita Purushottam of GBPN India argued that material choices will determine built environment emissions over the long term, but India’s current policy signals remain fragmented. Although LC3 has received BIS recognition, she pointed out that building codes, municipal bylaws, schedules of rates and sustainability codes do not yet provide uniform guidance on low-carbon cement.

“The current cement regulations are largely prescriptive and favouring traditional materials,” she said. This limits the ability of alternative materials to compete on performance, durability and emissions.

Dr Purushottam also raised the issue of taxation. Cement, including LC3, currently falls under the same GST bracket as conventional cement. A differentiated tax structure, she argued, could help accelerate market adoption. “In order for the market to demand LC3, that differentiation in the GST could go a long way,” she said.

She noted that green building certifications such as IGBC and GRIHA are already creating demand for low-carbon materials by assigning points for embodied carbon and sustainable material use. However, she said large-scale adoption will require regulatory mandates, particularly through building codes and state-level notifications.

She also cautioned that low-carbon cement alone does not solve the entire building performance problem. A material may reduce embodied carbon, but the operational carbon of a building depends on thermal performance, design, insulation and energy use. “The energy part has two elements,” she said. “One is the embodied carbon of the material itself, and the other is the operational carbon.”

Collaboration is the bridge between invention and impact

Wattal said GCCA sees innovation as a strategic priority and works through platforms that connect industry with academia and start-ups. “There is no way we will decarbonise our sector without innovation,” she said.

However, she stressed that research must be connected to actual industry challenges. Innovations developed in isolation may fail when they encounter real-world barriers such as raw material variability, plant integration, cost, standards and finance. Start-ups, too, need industry mentorship and scale-up pathways.

Wattal also flagged the importance of finance. Even strong technologies may struggle to attract investment if there is no common understanding of bankability. “We have always put projects into, is this a bankable project? But the definition of a bankable project has never been defined,” she said.

For India, she saw strong potential in its academic and start-up ecosystem, but said the challenge lies in alignment and prioritisation. The country has the research base, industrial capacity and market size. What it now needs is a coordinated route from innovation to deployment.

There is a practical concern for cement manufacturers: how can existing plants be adapted for lower emissions without compromising reliability or commercial viability?

Kiranmai Sanagavarapu addressed, “The reliability risk in calcined clay retrofit is definitely real, but it is almost always self-inflicted. The risk arises when a new process is added to an existing circuit without properly redesigning grinding and blending configurations.”

Existing cement plants, she explained, can take two broad routes. The first is external sourcing of calcined clay combined with mill optimisation. This requires lower capital investment and can potentially move in 12 to 18 months if other conditions are in place. It may reduce emissions by around 20 to 30 per cent. The second route is integrated calcination on site, which requires higher capital expenditure and longer lead times, but provides greater control over quality, supply and emissions reduction potential.

For Sanagavarapu, the principle is simple: low-carbon retrofits must be designed with intent. “Design it with an intent properly from the start. Start in the market conditions where the economics are already working,” she said.

Circularity: The overlooked advantage

According to Vaibhav Rathi, fly ash and slag are already well established in cement and construction (C&D), but construction and demolition waste remains underutilised. “C&D waste is a growing business opportunity which not many have taken up,” he said. India’s continuous construction and demolition activity creates huge volumes of waste, much of which contributes to air pollution, land degradation and material inefficiency. With the right processing and standards, this waste can be converted into useful construction products.

Rathi also pointed out that LC3 has a circular economy dimension that is often overlooked. It can use low-grade kaolin-rich clay left behind after high-grade clay is extracted for other applications. “LC3 is not only a low-carbon solution, but also a circular economy solution,” he said.

At the same time, he cautioned that LC3 in India is not yet cheap because it has not reached scale. Site-specific techno-commercial feasibility studies, supported jointly by development agencies and industry, could help companies assess whether LC3 production makes technical and financial sense at a given location.

Dr Purushottam added that India must address both low-carbon cement and construction waste together. “Both low-carbon cement and C&D waste go hand in hand. India does not have an option but to work on both,” she said.

Dr Aiyer called for policy shifts from both government and industry, including preferential purchasing of sustainable materials, minimum supplementary cementitious material requirements in public and public-private projects, and faster regulatory implementation. “If we can fast-track the regulatory standards and their implementation on the ground, that is the way to go,” he said.

From green ambition to green construction

Cement innovation is no longer only about chemistry. It is about systems. Low-carbon cement will scale only when technology, standards, procurement, finance, regulation, education and construction practice move together.

LC3 and other low-carbon technologies have shown promise. India has early commercial examples, strong research capability and growing market interest. But mainstream adoption will depend on whether demand can be created, regulators can be capacitated, standards can be embedded in procurement, and manufacturers can see a clear business case.

For a country building at India’s scale, the opportunity is enormous. Cement will continue to be central to infrastructure and urban development. The challenge now is to ensure that the cement used in India’s growth story carries a lower carbon burden.

  • Rakesh Rao

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Concrete

Indian Railways Plans Green Fly Ash Transport Network

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Specialised rail logistics will move fly ash from power plants to infrastructure industries.

New Delhi

Indian Railways is planning a large-scale green logistics initiative to transport fly ash from thermal power plants to industries where it can be reused in infrastructure and construction activities.

The initiative was discussed during a review meeting chaired by Union Minister for Railways Ashwini Vaishnaw. Union Ministers of State for Railways V Somanna and Ravneet Singh Bittu were also present.

India generates nearly 340 million tonnes of fly ash every year from thermal power plants. The proposed initiative aims to create an efficient rail-based transport system using specialised containers and dedicated logistics arrangements to move fly ash safely from power plants to end-use industries.

Fly ash is widely used in road construction, cement manufacturing, brick production, concrete, blocks and boards. By improving its movement through the railway network, the initiative is expected to support better utilisation of this industrial by-product while reducing environmental concerns linked to storage and disposal.

The move also aligns with India’s circular economy goals by converting waste from thermal power generation into a useful raw material for the construction and infrastructure sectors. Wider availability of fly ash can help reduce material costs in areas such as bricks and cement, supporting more affordable infrastructure and housing development.

Through this initiative, Indian Railways aims to provide a cleaner, safer and more organised transport solution for fly ash, turning an environmental challenge into an infrastructure resource.

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Concrete

Powering Cement Through Intelligent Motion

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Gears, drives, and motors have evolved from essential mechanical components into strategic enablers of reliability, efficiency, and sustainability in modern cement plants. ICR explores how advanced motion technologies, predictive maintenance, digitalisation, and intelligent drive systems are helping cement manufacturers reduce downtime, optimise energy use, and build future-ready operations.

As the Indian cement industry prepares for another phase of capacity expansion, the focus is shifting from merely increasing production volumes to improving operational efficiency, reliability, and sustainability. According to industry estimates, India is expected to add nearly 160–170 million tonnes of cement capacity between FY26 and FY28, driven by infrastructure investments, urbanisation, and housing demand. In this environment, gears, drives, and motors have emerged as critical enablers of productivity, forming the backbone of every major process from raw material extraction and grinding to clinker production and cement dispatch.
Motors alone account for nearly 60 per cent to 70 per cent of industrial electricity consumption globally, according to the International Energy Agency (IEA), while rotating equipment failures remain among the leading causes of unplanned downtime across heavy industries. In cement plants, where equipment operates under high loads, extreme dust conditions, elevated temperatures, and continuous-duty cycles, the performance of gears, drives, and motors directly influences energy consumption, maintenance costs, plant availability, and overall profitability. As digitalisation and Industry
4.0 technologies gain momentum, these systems are evolving from passive mechanical components into intelligent assets capable of delivering real-time operational insights.

Why gears, drives, and motors are the backbone of cement plant operations
Every major process in a cement plant depends on the seamless operation of gears, drives, and motors. Raw mills, vertical roller mills, crushers, kiln drives, conveyor systems, fans, and clinker coolers all rely on rotating equipment to maintain continuous production. A failure in any one of these systems can disrupt entire process chains, highlighting their strategic importance.
Modern cement plants process thousands of tonnes of material daily, requiring equipment capable of transmitting enormous torque while maintaining precision and reliability. Kiln drives and grinding systems, in particular, operate under some of the highest mechanical loads found in industrial manufacturing. The ability of gears and motors to withstand these conditions directly impacts plant throughput and production stability.
Satish Maheshwari, Chief Manufacturing Officer, Shree Cement says, “Effective lubrication management remains one of the most critical factors in extending the lifespan of cement plant drive systems. Proper lubrication, supported by regular oil analysis, vibration diagnostics, and condition monitoring, helps minimise wear, prevent unexpected failures, and maintain the integrity of critical components such as gearboxes, motors, and drive assemblies. By identifying potential issues at an early stage, plants can move from reactive maintenance to a more proactive and reliability-focused approach.”
“Smart motors, intelligent drives, and next-generation gearboxes are set to redefine cement plant maintenance and performance. Equipped with embedded sensors, IoT connectivity, digital twins, and AI-driven diagnostics, these technologies enable real-time condition monitoring, predictive maintenance, and seamless digital integration. As the industry embraces Industry 4.0, smart drive systems will play a pivotal role in improving energy efficiency, reducing downtime, and optimising asset performance across the cement manufacturing value chain” he adds.
Industry studies suggest that rotating equipment accounts for a significant proportion of maintenance expenditure in process industries. Effective design, selection, and maintenance of gears, drives, and motors therefore have a direct influence on asset utilisation, operational efficiency, and total cost of ownership.

The cost of downtime: reliability challenges in rotating equipment
Unplanned downtime remains one of the most expensive challenges facing cement manufacturers. Industry estimates indicate that a major failure involving a critical gearbox, kiln drive, or grinding mill can result in production losses running into lakhs of rupees per hour, depending on plant capacity and operating conditions.
Sanjeev Arora, President – Motion Business & IEC LV Motors Division, ABB India says, “One of the most significant shifts taking place in industrial decision-making today is moving away from evaluating equipment based solely on upfront capital cost toward understanding total cost of ownership (TCO). In a typical motor system, the purchase price often represents only a small fraction of the total lifecycle cost however energy consumption, maintenance requirements, downtime and operating efficiency account for the vast majority of long-term operational expenses. For cement manufacturers operating in highly competitive markets, this distinction is critical.”
“A high efficiency motor paired with an appropriately configured variable speed drive may require a higher initial investment, but the long-term benefits are substantial. Reduced electricity consumption, lower maintenance needs, longer service intervals and improved process stability can deliver faster payback and stronger profitability over time” he adds.
Cement plants present a particularly challenging environment for rotating equipment. Dust ingress, thermal fluctuations, shock loads, vibration, shaft misalignment, and lubrication contamination contribute significantly to equipment degradation. Studies by SKF indicate that nearly 50 per cent of bearing failures are linked to lubrication issues and contamination, while improper alignment and vibration-related problems remain leading causes of gearbox and motor failures.

Energy-efficient motors and drives: unlocking operational savings
Energy is one of the largest operating expenses for cement manufacturers, often accounting for 25 per cent to 35 per cent of total production costs. Grinding operations alone can consume nearly 60 per cent to 70 per cent of a plant’s electrical energy, making energy-efficient motors and drives a strategic investment.
According to the International Energy Agency, high-efficiency motors combined with Variable Frequency Drives (VFDs) can reduce energy consumption by 20 per cent to 30 per cent in suitable applications. By matching motor speed and torque to actual process requirements, VFDs minimise unnecessary power consumption while reducing mechanical stress on equipment, improving both efficiency and reliability.

Advances in gearbox design and power transmission technologies
Modern gearbox technology has evolved significantly in response to the increasing demands of cement manufacturing. Advanced materials, case-hardened gears, optimised tooth profiles, improved surface finishing, and enhanced lubrication systems are helping reduce friction, wear, and thermal loading.
Girish Hanchate, Director – Industrial Market, India SKF India (Industrial) says, “Smart diagnostics are significantly improving the lifecycle of gears, motors, and other rotating equipment by enabling a shift from reactive maintenance to condition-based asset management. Hidden issues such as vibration anomalies, bearing defects, misalignment, and temperature fluctuations can quietly reduce plant throughput by 10 per cent to 20 per cent while increasing energy consumption long before a breakdown occurs. By leveraging advanced sensors, predictive analytics, machine learning, and real-time monitoring of vibration, temperature, and motor current, cement manufacturers can detect developing faults early, optimise maintenance schedules, and prevent costly secondary damage. This not only improves reliability but also supports energy efficiency and sustainability objectives.”
“The next major evolution in drive and bearing technology lies in the development of fully integrated smart mechanical ecosystems that combine high-performance bearings, advanced lubrication management, and digital intelligence. Sensor-enabled condition monitoring embedded directly within bearings and drive systems allows operators to capture critical operational data at the source, enabling predictive maintenance and real-time performance optimisation. Innovations such as SKF’s VA9A1 Spherical Roller Bearing series, engineered specifically for demanding cement applications such as crushers and kilns, demonstrate this trend. By increasing internal bearing space and optimising lubricant flow, these designs improve grease retention, reduce wear, minimise downtime, and create more resilient, energy-efficient rotating equipment systems for the future of cement manufacturing” he adds.
Manufacturers are increasingly focusing on compact, high-torque gearbox designs capable of delivering higher power density while maintaining service life. Innovations such as condition-monitored gear systems, improved sealing technologies, and modular gearbox architectures are simplifying maintenance while enhancing operational reliability.

Predictive maintenance, condition monitoring, and asset health management
The shift from reactive to predictive maintenance is transforming asset management across the cement industry. Technologies such as vibration monitoring, thermography, oil analysis, ultrasound testing, and motor current signature analysis are enabling operators to identify potential failures before they occur.
Research by Deloitte suggests that predictive maintenance can reduce breakdowns by up to 70 per cent and lower maintenance costs by 25 per cent. In cement plants, where shutdown windows are limited and equipment operates continuously, predictive maintenance offers a powerful tool for improving reliability and extending asset life.
Digitalisation, industry 4.0, and the rise of intelligent drive systems
Industry 4.0 technologies are redefining the role of gears, drives, and motors. Smart sensors embedded within motors, bearings, and gear systems can continuously monitor temperature, vibration, load, lubrication condition, and energy consumption.
Girish Hanchate says, “As the industry embraces automation, sustainability, and digital transformation, the importance of intelligent motion technologies will continue to grow. The convergence of advanced engineering, predictive maintenance, and Industry 4.0 solutions is creating a new generation of cement plants where reliability, efficiency, and sustainability work together to deliver long-term value. For cement manufacturers navigating increasing production demands and environmental expectations, investing in smarter gears, drives, and motors is no longer optional—it is a business imperative.”
Cloud-based monitoring platforms and Industrial Internet of Things (IIoT) architectures enable maintenance teams to access equipment health data remotely, improving visibility across geographically dispersed operations. Advanced analytics and
artificial intelligence are further enhancing fault detection capabilities, enabling more accurate maintenance planning.
The emergence of digital twins represents another significant development. By creating virtual replicas of physical assets, operators can simulate operating conditions, predict failures, optimise maintenance schedules, and improve lifecycle management decisions. These technologies are helping transform rotating equipment into intelligent assets that actively contribute to operational decision-making.

Building future-ready cement plants through smart motion technologies
The future of cement manufacturing will depend heavily on the ability to integrate mechanical reliability with digital intelligence. Smart motion technologies combine high-efficiency motors,
intelligent drives, condition monitoring systems, and automation platforms to create more responsive and efficient operations.
Sustainability goals are also accelerating investment in advanced motion technologies. Reduced energy consumption, improved equipment efficiency, and extended asset life contribute directly to lower carbon emissions and reduced resource consumption.
These benefits align closely with the industry’s decarbonisation objectives.
As capacity expansions continue across India, future-ready cement plants will increasingly prioritise reliability, flexibility, and data-driven decision-making. Organisations that successfully integrate smart motion technologies into their operations will be better positioned to reduce costs, improve productivity, and maintain a competitive advantage in a rapidly evolving market.

Conclusion
Gears, drives, and motors are no longer viewed solely as mechanical components; they have become strategic assets that influence every aspect of cement plant performance. Their reliability affects production continuity, their efficiency impacts operating costs, and their digital capabilities increasingly shape maintenance and operational strategies.

  • Kanika Mathur

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