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Sustainability as a Culture

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Tarun Mishra, Co-founder, Covacsis Technologies, explores the role of technology in driving the cement sector towards a sustainable future.

The industrial era of the 20th century had more sustainable business practices than the 21st century. However, the global community has realised the need to bring sustainable practices back into the manufacturing process. Thus, the idea of sustainability as a culture, not just a metric to comply with, has evolved. Right impetus on innovating and developing effective manufacturing technologies coupled with making sustainability a boardroom agenda are important steps.
Making the world sustainable by minimising all kinds of waste produced in manufacturing processes and by minimising consumption of natural resources are essential parts of sustainability.
The core idea of sustainability is to drive towards:

  1. 1. Zero impact on the environment due to operations
  2. 2. Zero impact on the society

  3. Manufacturing industry worldwide ought to play a greater role in this endeavour. Cement industry must rise to take larger responsibility, and become a role model for other industries in developing this culture as part of business practices by employing design thinking and digital interventions.
    Mineral processing and cement production are extremely energy intensive activities. Reaching net zero and decarbonising cement requires lengthy changes throughout the value chain.
    Cement-based materials, such as concrete and mortars, are used in extremely large amounts. Cement plays an important role in terms of economic and social relevance since it is fundamental to build and improve infrastructure. On the other hand, this industry is also a heavy polluter. Cement production releases 5-6 per cent of the entire CO2 generated due to human activities, accounting for about 4 per cent of global warming. It can release huge amounts of persistent organic pollutants, such as dioxins and heavy metals and particles. Energy consumption is also considerable. Cement production uses approximately 0.6 per cent of all energy produced in the US.
    A huge innovation and solution is underway to make cement greener and sustainable, such as the use of alternative materials that can be used to minimise CO2 production and reduce energy consumption, such as calcium sulphoaluminate and Ăź-Ca2SiO4-rich cements.
    Also sustainability of the cement industry can be significantly improved by using residues from other industrial sectors. Under adequate conditions, waste materials such as tyres, oils, municipal solid waste and solvents can be used as supplementary fuel in cement plants.
    While the role of research and development is necessary to improve cement industry sustainability over a long run, with intelligent systems it is possible to get immediate results by optimising complex cement plant’s energy use while maintaining high equipment availability. All this must start with measuring various sustainability metrics and dimensions within the organisation.

Measurement metrics
An effective measurement requires:

  1. What to measure?
    The sustainability metrics defined across the value chain becomes extremely important in the overall scheme of things. What is not measured never improves, therefore, a thorough study to map every value element and to identify sustainability metrics is imperative.
    For example, cement manufacturers can think ways and means to measure:
    a. Carbon neutrality at every stage such as kiln, cement mills, etc.
    b. Waste produced or treated
    c. Net health hazard in every process and job function
    d. Net safety hazard in the process and job function
  2. How to measure? What method to use for measuring?
    Current manual mode of recording and logging information is limiting, ineffective and non-actionable. Furthermore, the current method is based on sample data collection once a shift or once a day. It does not fulfill beyond meeting compliance needs.
    A new generation method using IIOT will eliminate manual methods and provide comprehensive, error free and valuable data along with the root cause analysis to improve further.
  3. When do they get measured?
    A comprehensive set of metrics getting measured using elaborate and error free methods is great but still not sufficient. Measuring these metrics in real time delivers unthinkable opportunities to the organisation to arrest performance compromises immediately and set things right without losing anything. Intelligent technologies like Covacsis’ Intelligent Plant Framework uses extensive data science to track all sorts of irregularities instantaneously and provides comprehensive root cause analysis with recommendations.
    For example, C3S percentage change in kiln operation may affect the coal consumption per ton of clinker. Real time discovery and understanding of the right relation between C3S and other process parameters will allow the shop floor team to optimise coal costs. Some of these are not part of conventional distributed control systems (DCS), supervisory control and data acquisition (SCADA) and Historians.

An Organisational Practice
Platforms, tools or solutions like Intelligent Plant Framework provide easy, automatic and autonomous real time understanding with complete visibility about every anomaly.
A large part of assistance is provided through autonomous alerts and notifications mechanisms to users outlining those activities which are potentially compromising on sustainability metrics along with a detailed root cause analysis.
Sustainability is a cross functional agenda in every organisation. Production, quality, engineering, planning, utility, cost, human resource and other departments are required to form a cross functional committee to drive the agenda of sustainability.
Every process in the value stream must have a sustainability index. This index is to be computed in real time and published on a live screen and dashboard along with detailed analytics. Likewise, every department must have sustainability rating done automatically and autonomously on a daily basis to enforce the culture of sustainability.
Every individual must have a sustainability score in the organisation as part of their performance. This will help the human resource department in organising the right training for the right people in the organisation. Digital boot camp on sustainability is a great way to make the agenda pervasive across the organisation.

ABOUT THE AUTHOR:


Tarun Mishra, Co-founder, Covacsis,
is a proponent of industrial IOT since 2009. He helps companies built a profitable business by redefining manufacturing operations and its performance.

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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