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Bumpy ride on a cemented road

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There are companies which focus on the quality of their cement, to the extent that they have automated systems for regular quality tests, writes Sanjay Joshi.

India’s cement industry is the second largest in the world, in terms of production, with over 8 per cent (502 million tonnes per annum in 2018) of the global installed capacity and generating employment for over 1 million people. Unfortunately however, this production does not fully convert into consumption as the demand-supply situation is highly skewed with the latter being significantly higher than the former. With per capita cement consumption at less than 200 kg when the world boasts of an average of 500 kg, can the Indian cement industry be the driver of growth for India? We need to understand certain dynamics to answer this question.

Industry Dynamics
The Indian cement industry consists mostly of regional players, rather than national ones. The reason for that, is cement being a bulk commodity and therefore freight-intensive, transporting it over long distances proves uneconomical. And hence, this industry has largely been a regional play. Lately, there’s been a lot of consolidation – big players have been vigorously pushing to acquire smaller regional players. This trend is likely to continue, and we may be witnessing even more acquisitions in the near future.

The industry defines three categories of cement companies. The differentiating factors between one category and the other are primarily quality and price. Let us delve a bit deeper into these factors and understand how the industry operates, playing with either or both of these factors.

At the time of construction, the difference between a good and a not-so-good cement is not visible to the end consumer. And that is the reason why many low-priced cement companies are flourishing in the market today. The consumer has little or no idea about how the cement used in their construction will behave after some years. Hence he does not put much emphasis on ascertaining the quality and instead, goes after a lower price.

There are companies which focus on the quality of their cement, to the extent that they have automated systems for regular quality tests. These systems ensure that not just a sample of cement is tested but the entire production is tested on a regular basis. Understandably the cement produced is of superior quality and provides greater value for the price paid.

Building one’s own house is a dream fulfilment for most people and the individual house builders (IHBs) need to realise that construction of their house is a one-time investment. Saving some amount in cement, which would be quite negligible when calculated and compared to the total investment being made on the construction, can prove to be an uninformed decision in the long run.

New shifts in consumer connect
Traditionally, cement companies have highlighted only functional benefits in their consumer connect programs or advertisements, with the objective of educating the end consumer. However, the consumer today is not only well-equipped to research what they don’t know, they are also flooded with advertisements and information from multiple sources. In such an "information overload" world, functional benefits are not able to attract the consumer’s attention the way they used to earlier. Rather, in today’s times, it is the emotional connect that has the potential to tap into the consumer’s attention span and subsequently his purchase decision. This has been recognized by most companies of the industry, which is why cement advertising has more emotional content and connect these days.

Scenario in 2020
The demand for cement showed a downward trend during the first half of the FY 2019, owing largely to lower spending by the government, which accounted for about 40 per cent of the demand. Along with that, the real estate sector had also been less supportive, being hit by several factors simultaneously – labour shortage, a liquidity crunch, weak project execution, shortage of funds, and less availability of sand and water in many states. Natural phenomena like cyclone Fani (in case of Bihar, Odisha and WB) and excessive rainfall also impacted demand.

The silver lining is that demand growth in the second half is expected to improve because of a gradual pick up in the government’s fund release for institutional projects. The industry would be witnessing higher revenues and profits due to lower raw material costs, falling global commodity prices and reduced power and fuel costs (owing to softening in pet coke and coal prices) as well.

The demand drivers of cement in India are primarily the housing and real estate sector (65 per cent), public infrastructure (20 per cent) and industrial development (15 per cent). The current demand is expected to increase owing to expanding investments of these drivers.

Higher government spending on infrastructure and housing will be a key growth driver for the industry. The Government of India has placed significant emphasis on infrastructure development with the aim of making 100 smart cities, expanding the capacity of our railways, upgrading 1,25,000 kms of road length over the next five years and increasing the facilities for storage and handling of goods in order to reduce transportation costs.

The drive to take India’s economy to US$ 5 trillion by 2025, with initiatives such as Housing for All and Smart Cities Mission will be heavily reliant on the growth of the cement industry. Other Government initiatives that are expected to play a pivotal role in driving the growth of the industry are the construction of cement concrete roads and highways through the unique Bharatmala Project, construction of rural roads under the Pradhan Mantri Gram Sadak Yojana, metro rail networks in several cities, bullet train, etc. which will all propel the cement industry’s growth in the long-term.

Also as India’s population becomes increasingly urbanised and household sizes steadily fall, a growth rate of close to 6 per cent per annum is expected from the housing sector’s demand for cement.

Road ahead – 2030
The Industry believes that there would be a surge in demand due to the requirements of the strong infrastructure framework that the nation endeavours to put in place through its Government as well as Housing Projects. The demand for the housing segment is expected to grow at 6 per cent per annum’ through the PPP model (Public Private Partnership). As a result the per capita cement consumption in the country is expected to rise from 225 kg in 2018 to 435 kg by 2030. This will enable us to meet the future cement demand of the nation by 2030 at an additional capacity expansion of 365 MMT; which is an increase of almost 82 per cent of the current demand. So while it has been a bumpy ride for the cement industry in the last couple of years however the future looks very optimistic and promising.

ABOUT THE AUTHOR: The article is authored by Sanjay Joshi, Executive Director, Wonder Cement

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Concrete

Cement Makers Reaffirm Commitment to Sustainable Growth

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World Environment Day spotlight on innovation and circularity

On World Environment Day, the Indian cement industry reiterated its commitment to supporting India’s climate ambitions through sustainable manufacturing, resource efficiency and the adoption of cleaner technologies.

The Cement Manufacturers’ Association (CMA) said the sector remains aligned with the Government of India’s Net Zero commitments and is accelerating efforts to reduce its environmental footprint while supporting the country’s infrastructure and development agenda.

Parth Jindal, President, CMA and Managing Director, JSW Cement, said the industry is increasingly adopting cleaner technologies, improving energy efficiency and expanding the use of alternative fuels and raw materials. He also highlighted the growing importance of circular economy practices, where industrial by-products and waste streams from one sector are utilised as resources in another.

“The Indian Cement Industry is aligned to the Government’s commitments on carbon mitigation and is accelerating the adoption of cleaner technologies, resource efficiency and circular economy practices while actively exploring the potential of Carbon Capture, Utilisation and Storage (CCUS) as a critical pathway for deep decarbonisation,” said Jindal.

He added that coprocessing industrial waste and by-products helps conserve natural resources, reduce disposal requirements and lower the environmental footprint across multiple sectors.

According to Jindal, sustainability is no longer limited to manufacturing processes but is increasingly influencing investment decisions, innovation strategies and long-term growth plans within the industry.

Echoing similar views, Dr Raghavpat Singhania, Vice President, CMA and Managing Director, JK Cement, said sustainable development extends beyond emissions reduction and must also focus on responsible resource utilisation and waste minimisation.

“Sustainability in the built environment cannot be measured by emissions alone. It is equally about how efficiently we use resources, how effectively we minimise waste and how responsibly we create the infrastructure that will serve future generations,” said Singhania.

He noted that the cement industry is advancing its sustainability agenda through greater resource efficiency, increased circularity, technological innovation and continuous improvements in manufacturing practices. As a key contributor to India’s infrastructure development, the sector has a critical role to play in balancing economic growth with environmental responsibility.

On the occasion of World Environment Day, industry leaders reaffirmed their commitment to supporting India’s climate goals while delivering the materials required for resilient, durable and sustainable infrastructure.

 

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Concrete

Building a Greener Future Together

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Environmental sustainability requires immediate action, not just long-term commitments and discussions. Recycling, circular economy practices, and technology-driven waste management can help industries reduce environmental impact while supporting sustainable growth.

Author: Jignesh Kundaria, Director and CEO, Fornnax Technology

World Environment Day serves as an important reminder that environmental sustainability can no longer remain confined to discussions, reports, or long-term commitments. The environmental challenges facing the world today demand immediate, measurable, and collective action. Across industries and communities, waste generation continues to outpace our ability to process it responsibly, placing increasing pressure on ecosystems, natural resources, public health, and the well-being of future generations.

One of the most significant shifts required today is a change in how society perceives waste. Rather than being viewed as a material to be discarded, waste must be recognised as a valuable resource that can contribute to both economic growth and environmental protection when managed through the right technologies and systems. This mindset forms the foundation of the circular economy model that countries across the world are increasingly adopting to reduce landfill dependence, recover valuable materials, and create more sustainable industrial ecosystems.

India has made meaningful progress in strengthening awareness around sustainability, recycling, and environmental responsibility over the past decade. Significant efforts are being made to formalise the recycling sector through improved infrastructure, technology adoption, policy implementation, and broader stakeholder participation. These developments are creating a stronger foundation for responsible waste management and resource recovery across the country.

However, achieving long-term environmental impact requires collaboration from all stakeholders. Industries, policymakers, technology providers, and communities must work together with greater accountability to strengthen recycling ecosystems, encourage responsible waste management practices, and create sustainable outcomes through consistent execution rather than temporary interventions.

As someone closely associated with the recycling industry, I firmly believe that technology will play a decisive role in addressing future environmental challenges. Advanced recycling systems have the potential to recover valuable resources, reduce pollution, minimise landfill burdens, and conserve energy, creating a more sustainable future for generations to come. This belief is deeply reflected in Fornnax’s motto, “Committed to Create a Green Future,” which embodies our commitment to building long-term environmental value through innovation and responsible action.

At the same time, technology alone cannot deliver meaningful change. Real progress requires intent, awareness, participation, and a shared sense of responsibility. Sustainable development can only be achieved when innovation is supported by collective action and a genuine commitment to environmental stewardship.

On this World Environment Day, let us move beyond conversations and take meaningful steps towards creating a cleaner, greener, and more sustainable planet. By embracing innovation, strengthening recycling ecosystems, and acting responsibly today, we can create lasting environmental impact and secure a better future for generations to come.

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Concrete

JK Lakshmi Advances LC3 Cement Expansion

Company highlights commercial production and research partnerships

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The meeting reviewed progress in limestone calcined clay cement (LC3) technology and its commercial adoption in India’s cement sector, focusing on low-carbon alternatives to conventional binders. JK Lakshmi Cement noted that limestone calcined clay cement can reduce carbon dioxide emissions by up to 40 per cent compared with conventional cement and said this reduction supports industry decarbonisation. The company highlighted that it was among the first two cement manufacturers in India to move LC3 into commercial production after the Bureau of Indian Standards approved the technology as a cement standard.

Vinita Singhania said the transition of LC3 from research to commercial production reflected collaboration between industry, academia and international institutions. Maya Tissafi acknowledged JK Lakshmi Cement’s role in advancing LC3 adoption in India and its contribution in taking the technology from laboratory trials to commercial implementation. Both representatives underlined the growing relevance of sustainable construction materials as India expands infrastructure and urban development.

The meeting explored continued collaboration with Swiss research institutions such as EPFL, EMPA and ETH Zurich alongside Indian academic partners and development organisations. JK Lakshmi Cement has been associated with the LC3 initiative since 2014 and worked with EPFL, IIT Delhi, IIT Madras, Development Alternatives and Technology and Action for Rural Advancement. The company conducted one of the earliest industrial trials of LC3 and recently announced commercial production of Green Pro LC3 cement from its Jaykaypuram plant in Rajasthan.

India remains the world’s second-largest cement producer and expansion of infrastructure, urbanisation and housing demand continue to support long-term sector growth, increasing interest in low-carbon technologies. The company reported an annual turnover of more than Rupees (Rs) 60 bn and current cement capacity of about 18 million (mn) tonnes (t) per annum, with a target of reaching 30 million (mn) tonnes (t) by 2030. Apart from grey cement, the company also makes ready-mix concrete, gypsum plaster, wall putty, primers, adhesives and fly ash blocks, and both sides concluded on the need for continued collaboration to develop sustainable construction solutions.

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