Concrete

Cementing a Sustainable Future

Published

3 years ago

January 12, 2024

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Anuj Khandelwal, Business Head, JK Cement, discusses his company’s technological odyssey in environmental stewardship, and how it changed the thought process of India’s cement sector.

In the realm of global construction, the cement industry stands as a vital pillar, albeit one burdened with a significant environmental footprint, contributing to 5-8 per cent of global emissions. JK Cement recognises the imperative role it must play in fostering sustainability, understanding that our long-term growth is intricately linked to advancing the sustainability agenda.

Commitment to Sustainability
JK Cement has undertaken a proactive stance by signing up for Science-Based Targets Initiative (SBTi)-based goals, committing to a robust 21.7 per cent reduction in specific gross CO2 emissions by 2030 compared to the 2020 baseline. These ambitious targets, already validated and approved by SBTi, signify a substantial stride toward a greener future. Remarkably, we have exceeded expectations, achieving a 16.3 per cent reduction in H1FY24 and poised to surpass our FY25 commitments of a 7.2 per cent reduction.

Challenges in the Industry
Understanding the unique challenges of the cement and lime industry is pivotal. Unlike many other industries, the majority of greenhouse gas emissions in cement production emanate not from energy use but from the raw materials themselves. Approximately 60 per cent of CO2 emissions result from limestone processing, necessitating a nuanced approach to sustainability across four dimensions:

Reduce the need for energy-intensive materials
Improve energy intensity
Greenify sources
Prevent release at the source

A Catalyst for Sustainability
Embracing the philosophy that technology is pivotal in the road to sustainability, JK Cement has strategically invested in technological advancements. Our sustainability journey revolves around three key technological pillars:

Technological upgrades for lower energy intensity
Upgrading manufacturing technologies and equipment has been instrumental in achieving lower energy intensity. Notable examples include the upgrade of older plants and kilns, such as Nimbahera L3 and Mangrol L2, with ongoing projects in Mangrol L1 and deployment of state-of-the-art Waste Heat Recovery Systems (WHRS) ensures maximal green power output across all our integrated units.
Technological innovations for enabling usage of greener sources
The substitution of traditional fuels and raw materials with green sources demands technological innovations. JK Cement has taken the lead in deploying a chlorine bypass system at our Muddapur plant to achieve over 35 per cent Thermal Substitution Rate (TSR). Upgrades in feeding systems across kilns facilitate higher TSR levels.
These innovations are integral to our circularity agenda. By harnessing cutting-edge technology, we are redefining our processes, ensuring a more sustainable and environmentally friendly approach to cement production.
Unlocking scale and navigating challenges with technology
Scaling sustainability initiatives requires automation and digital solutions. This is a critical part of our capability build as we move towards the new clean-tech solutions offered.
For instance, real-time power balancing solutions address the variability in green power generation profiles. Digital load and demand balancing solutions have increased the usage of green power, helping us achieve a remarkable 48 per cent+ green power mix for JK Cement in H1FY24.
Similarly addressing challenges associated with quality variance in alternate fuels and impact on stable kiln operations required innovative solutions. NIR sensors for online quality testing enable precise control over the alternative fuel blend. In parallel, automated feedback loops helped ensure stable kiln operations even at higher TSR levels.
Investments in digital quality control systems enable the incorporation of higher alternate raw materials, crucial for maintaining product quality amid the variability of alternate materials.
Our investment in digital solutions not only underscores our commitment to sustainability
but also positions us as industry leaders. By leveraging automation, we not only achieve environmental goals but also enhance operational efficiency and competitiveness. These technological interventions also showcase our dedication to overcoming challenges.
The Road Ahead
Technological innovation remains central to JK Cement’s future sustainability initiatives.
After evaluating the underlying physical and technical limits of available technologies, our
findings are that the three technologies available today can have a material impact on driving
down carbon emissions from cement production by 2030. Therefore, our short-term focus is on the three groups of cost-saving technologies to drive the focus further:
• Substitute Cementitious Materials (SCM), including LC3 Cement
• Biomass and waste alternative fuels
• AI for energy efficiency, predictive maintenance, quality improvement and cement logistic and fleet optimisation
Similarly exploring avenues such as hydrogen (H2) utilisation and electrification, Carbon Capture, Utilisation and Storage (CCUS), carbon-neutral transport, CO2 capture in the built environment, and efficient concrete use will be pivotal in achieving our long-term goals and the basis of technological evolution in these.
As we look to the future, the role of technology in sustainability cannot be overstated. Our commitment to exploring innovative solutions aligns with the ever-evolving landscape of sustainable practices, positioning JK Cement as a beacon of environmental responsibility in the cement industry.

Conclusion
In conclusion, JK Cement views technology as a catalyst for not only meeting but exceeding sustainability targets. As we navigate the complexities of the cement industry, we remain dedicated to pioneering sustainable solutions that redefine the role of technology in our environmental stewardship. Our endeavours are not just about cement; they are about shaping a sustainable future for generations to come.

ABOUT THE AUTHOR:
Anuj Khandelwal, Business Head, JK Cement, has about 15 years of experience across industry, consulting and strategy roles. He is an MBA from Indian Institute of Management, Lucknow and also has a Chartered Accountancy (CA) degree.

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Cement Makers’ Margins To Fall Rs 50-75 Per Tonne Amid West Asia Conflict

Crisil Sees Margins Easing Despite Steady Demand

Published

2 weeks ago

July 29, 2026

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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.

Concrete

UltraTech Board Approves Rs 50 bn Fundraise Via NCDs

Company to issue half a million debentures for expansion plan

Published

2 weeks ago

July 28, 2026

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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.

Concrete

Lokesh Lays Stone For Rs 31 Billion Cement Unit In Kadapa

Line-2 expansion to make Kadapa a major cement hub

Published

3 weeks ago

July 20, 2026

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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.