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Achieving Net Zero is an inspiring challenge

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Jayaram S Reddy, CMD, Promac India delves into their pioneering technologies, sustainability initiatives and their role in driving decarbonisation within the cement industry while aligning with the Net Zero mission.

Your collaboration has been long-standing. How has it impacted EPC solutions, and what has been its broader impact on the cement industry?
Our collaboration began in 1987, making it nearly 35 years of a productive partnership. This long-standing relationship has allowed us to bring world-class, cutting-edge technologies to Indian projects as well as international markets. By manufacturing all our equipment in India, in alignment with the government’s ‘Make in India’ initiative, we ensure that our solutions are both technologically advanced and cost-effective. This has not only benefited Indian customers but has also supported our exports to regions like the Middle East and Africa, providing these markets with affordable yet state-of-the-art equipment.
Our collaboration has had a transformative impact on the cement industry by offering efficient, reliable, and sustainable solutions. This partnership ensures that our clients access innovative and economically viable technology, improving their operations while contributing to global industrial advancements.

Could you highlight any specific features of the bioprocessing units you offer and explain how they benefit the cement industry, particularly in the context of decarbonisation?
Decarbonisation in the cement industry can be achieved through several approaches, with the reduction of reliance on fossil fuels being the most effective. Our bioprocessing solutions, such as the Taiheiyo Thermal Reactor (TTR), play a crucial role in this process. The TTR technology allows for the efficient use of alternative fuels, such as waste materials from other industries with calorific value. These fuels, including plastics, paper waste, and Refuse-Derived Fuel (RDF), are gassified in the TTR to harness their energy potential.
This process not only substitutes traditional fossil fuels like coal, oil, or natural gas but also optimises the burning conditions in the pyroprocessing unit. By reducing fossil fuel dependency and utilising waste, the TTR significantly aids in decarbonisation efforts while ensuring process efficiency.

How does your technology adapt to the evolving use of alternative fuels and raw materials in the cement industry?
Our TTR technology is designed with inbuilt adaptability, making it compatible with various types of alternative fuels. Whether it’s plastics, paper waste, or RDF, the system efficiently handles these materials. A key advantage of the TTR is its ability to pre-dry these fuels, enhancing their calorific value before they enter the pyroprocessing stage.
This flexibility ensures that cement plants can effectively transition to new fuel sources as they become available, maintaining operational efficiency and environmental compliance. The adaptability of our system helps clients respond to the evolving demands of the industry while continuing to prioritise sustainability.

What contributions do vertical roller mills and triangle mills make to energy and production efficiency?
Vertical roller mills (VRMs) serve two critical purposes in cement production. First, they efficiently grind materials, reducing large lumps of raw material into the fine powder necessary for processing. Second, they handle materials with high moisture content, drying them during the grinding process. This capability is particularly advantageous in regions with high rainfall or during the monsoon season, where raw materials often have elevated moisture levels. Compared to traditional ball mills, VRMs are significantly more energy-efficient, reducing power consumption while maintaining high productivity. This dual functionality—grinding and drying—makes VRMs an indispensable tool for improving both energy and production efficiency in cement plants.

Could you elaborate on your sustainability initiatives, particularly those contributing to the Net Zero mission?
Sustainability is central to our operations, and we address it through multiple avenues. One of our primary efforts is the use of alternative fuels to replace conventional fossil fuels. Additionally, we focus on minimising fuel consumption in our pyroprocessing systems through highly efficient designs for cyclones, calciners, and combustion systems.
Our vertical roller mills contribute by enhancing grinding and drying efficiency, reducing overall energy consumption. Moreover, our efforts to optimise the clinker-to-cement ratio include integrating supplementary materials like fly ash and slag, which reduces the reliance on raw clinker. These measures collectively help us align with the Net Zero mission by decreasing energy use, emissions, and natural resource consumption.

What makes Tahiyo Engineering’s designs and technologies unique compared to your competitors?
The primary differentiator is that Taiheiyo Engineering is part of Taiheiyo Cement, Japan’s largest cement company. This affiliation gives us a unique perspective, allowing us to develop technologies tailored to the specific needs and goals of cement producers. Our solutions are not only innovative but also practical, as they are tested extensively in our own plants before being offered to the market.
This approach ensures that every technology we provide is proven, reliable, and effective, giving customers confidence in its performance. Unlike traditional equipment manufacturers, we prioritise client needs, offering customised solutions instead of generic products.

What are your individual perspectives on the Net Zero mission and the innovations required to achieve it?
Achieving Net Zero is an inspiring challenge, particularly for foundational industries like cement, steel and power. As one of the largest contributors to carbon emissions, the cement industry is focused on reducing its environmental impact through various measures. These include improving the raw material-to-clinker ratio, using industrial by-products like fly ash and slag, and adopting alternative fuels to replace fossil fuels.
From our perspective, innovations like the Taiheiyo Thermal Reactor (TTR), which enhances the use of alternative fuels, and ongoing developments in carbon capture and clinker factor reduction technologies are essential. By rigorously testing these technologies in our plants before market deployment, we ensure their efficacy and contribute meaningfully to the industry’s decarbonisation efforts.

– Kanika Mathur

Concrete

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

Crisil Sees Margins Easing Despite Steady Demand

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Crisil said operating margins of Indian cement manufacturers are expected to decline by Rs 50-75 per tonne (t) this fiscal to Rs 925-950 per t due to higher input costs triggered by the West Asia conflict. The analysis covered 18 cement companies accounting for nearly 90 per cent of India’s domestic cement capacity and noted margins had improved sharply to around Rs 1,000 per t in fiscal 2026.

Crisil noted that the reduction would be driven mainly by higher power and fuel costs, which account for about 30 per cent of total costs, as petcoke and imported coal prices have surged amid geopolitical uncertainties. Freight costs, which account for about a quarter of total costs, are also expected to remain elevated because of higher diesel prices. The impact on profitability is likely to be more pronounced in the first half of the fiscal year before easing commodity prices moderate cost pressures later.

The rating agency said steady domestic demand and strong balance sheets should keep credit profiles stable despite the moderation in margins. Green energy currently accounts for 35-40 per cent of the sector’s total electricity consumption and is expected to partly cushion higher energy costs. Operating cash flows are likely to remain resilient, supported by projected 6-7 per cent growth in cement demand this fiscal.

Crisil highlighted that demand growth will be driven primarily by infrastructure spending, which meets about one-third of sector consumption, and by a nearly 18 per cent higher budgetary allocation for core ministries that should support project execution. Weaker rural housing demand amid pressure on agricultural incomes from a possible below-average monsoon may be offset by improved urban housing demand supported by favourable home-loan rates and a strong pipeline of Pradhan Mantri Awas Yojana-Urban projects. Ongoing capacity additions will keep capital expenditure elevated and may lift net debt to EBITDA to between 1.2 and 1.4 times from around 1.0 time last fiscal, though ratios are expected to remain healthy.

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Concrete

UltraTech Board Approves Rs 50 bn Fundraise Via NCDs

Company to issue half a million debentures for expansion plan

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UltraTech Cement’s board of directors has approved raising Rs 5,000 crore (Rs 50 bn) through non?convertible debentures issued in rupees.

The finance committee cleared a proposal to issue up to 500,000 fully paid, unsecured, listed, rated, redeemable, rupee?denominated, non?convertible, non?cumulative debentures of Rs 1 lakh each (Rs 0.1 mn each), aggregating to the Rs 5,000 crore programme.

As of June 2026 the firm reported net debt of Rs 15,875 crore (Rs 158.75 bn) and said its capacity expansion projects under execution are backed by capital expenditure of about Rs 17,000 crore (Rs 170 bn) over the next two to two?and?a?half years.

UltraTech spent Rs 9,500 crore (Rs 95 bn) on capital expenditure in financial year 2026 and in April the group crossed 200.1 mn tonnes per annum of domestic grey cement capacity and 205.5 mn tonnes per annum of global capacity.

The chief financial officer indicated the company would take consolidated capacity beyond 242 mn tonnes per annum, with grey cement capacity reaching 212.7 mn tonnes per annum by the end of financial year 2027. He noted the net debt?to?earnings before interest, taxes, depreciation and amortisation ratio stood at 0.87 times as of June 2026 and the company was confident of ending financial year 2027 with the ratio below one time.

In the first quarter of financial year 2026?27 UltraTech’s net profit attributable to owners rose 16.8 per cent year?on?year to Rs 2,599.3 crore (Rs 25.993 bn) and revenue from operations increased 15.9 per cent to Rs 24,648.20 crore (Rs 246.482 bn). The board approval is expected to complement internal cash flows as the company advances its expansion programme.

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Concrete

Lokesh Lays Stone For Rs 31 Billion Cement Unit In Kadapa

Line-2 expansion to make Kadapa a major cement hub

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Andhra Pradesh Education and IT Minister Nara Lokesh on Wednesday laid the foundation stone for the Line-2 expansion of Dalmia Bharat Cement at Chinnakomerla village in Mylavaram Mandal in Kadapa district. The project carries an investment of Rs 31 billion (bn) and is slated for completion by the third quarter of the financial year 2028. The expansion is intended to boost industrial growth and employment generation across the Rayalaseema region.

Once commissioned, the Kadapa facility will become Dalmia Bharat’s largest integrated cement manufacturing ecosystem in southern India, creating over 1,000 direct and indirect jobs and opening new business avenues for regional micro, small and medium enterprises and transport operators. Lokesh said the expansion signalled growing corporate confidence in the state and reflected the practical ease of doing business that secured repeat investment.

He placed the project within the government’s wider economic targets and recalled the Yuvagalam padayatra commitment to generate two million (mn) jobs within five years, noting that the state would cultivate talent while industry created opportunities. Lokesh highlighted Andhra Pradesh’s competitive pursuit of major manufacturing accounts, mentioning past successes and a personal initiative to engage global investors when persuading them to anchor expansion in the state.

The plant will leverage Kadapa’s abundant limestone reserves to scale production and sustainability. Clinker capacity is planned to rise from two point five million tonnes per annum (mn tpa) to six point one mn tpa, while overall cement output will increase from three point six mn tpa to nine point six mn tpa. The unit is designed to operate on over eighty per cent renewable energy and deploy waste heat recovery, zero liquid discharge, water recycling and advanced AI systems to optimise efficiency. Industries Minister TG Bharat, BC Welfare Minister S. Savitha and Jammalamadugu MLA C. Adinarayana Reddy attended the ceremony.

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