The overall performance of cement companies show a mixed results in the quarter ended December 2014. While major players like ACC and Dalmia showed reasonable growth, smaller players experienced a dip, owing to mainly sharp increase in power and fuel costs and logistics cost. However, these costs are expected to recede in the coming quarters to offset the current dip in performance.
Research reports indicate that the Indian cement industry to grow at a CAGR of 8.96 per cent in 2014-19. The industry is currently trying to achieve global standards in production, safety and energy-efficiency. Major companies are in the middle of expansion mode while they have reasonably well performed in the quarter ended December 2014.
ACC net sales up 5.4 per cent in 2014
ACC has announced its financial results for the financial year ended on December 31, 2014. Total consolidated net sales for 2014 was Rs 11,480.31 crore compared to Rs 10,889.08 crore in 2013, registering growth of 5.4 per cent Profit after tax for 2014 was Rs 1,161.82 crore (including tax write back of Rs 309.23 crore) compared to Rs 1,094.67 crore in 2013 (including tax write back of Rs 216.74 crore).
The clinkering project for 2.79 million tonne per annum at Jamul and the grinding unit for 1.35 million tonne per annum at Sindhri are expected to be completed in 2015, according to a company release.
Dalmia Bharat quarterly results
The acquisition of Dalmia Cement East Ltd (formerly Bokaro Jaypee Cement Ltd) was consummated during the quarter with 100 per cent stake in the company, now wholly owned subsidiary of Dalmia Cement (Bharat) Ltd. The total enterprise value for the same is Rs 1,150 crore. The quarterly results under review include financials of Dalmia Cement East Ltd w.e.f. November 16, 2014 Total Income from operations was Rs 794 crore for the quarter as against Rs 707 crore for the corresponding period of previous year, led by increase in volumes (+6 per cent) and sales realisations (+9 per cent).
EBITDA for the quarter was flat at Rs 125 crore. Power and fuel cost on per tonne basis was lower by 16 per cent on YoY basis but the same has been offset by higher freight cost and slightly increase in raw material cost for North East operations. PAT for the quarter was positive at Rs 10 lakh as against loss of Rs 12 crore in the corresponding quarter of the previous year.
Southern operations: Variable costs on per tonne basis were lower by 4 per cent on YoY basis for the quarter on account of further enhancement in efficiencies. Power consumption per tonne of cement produced has improved to 69.5 kwh as against 71.3 kwh and fuel cost on calorific value basis has witnessed a reduction of 16 per cent. Freight costs were higher during the quarter but is expected to recede in coming quarters on account of drop in crude prices.
North-East operations: North East operations witnessed stabilization of operations during the quarter. Volumes were up 22 per cent on QoQ basis and EBITDA improved significantly on YoY and QoQ basis. Jayesh Doshi, Executive Director – Finance & Strategy, Dalmia Bharat, said, ?The macro economic factors are improving and expected to improve further. With higher GDP growth, impetus on ?Make in India? strategy and further rate cuts expected, industrial production expected to improve, resulting in improved cement demand. Improved demand and rationalisation of capacity additions, would also lead to improved capacity utilisations.?
Shree Cement Q2 profit slips 19%
Shree Cement matched street expectations with the second quarter net profit falling 18.9 per cent year-on-year to Rs 93.7 crore. Profit was impacted by higher costs of depreciation, freight and power and fuel but was supported by higher other income, revenue and tax gain. Total income of the company grew 17.2 per cent to Rs 1,544.5 crore during October-December quarter from Rs 1,318 crore in same quarter last year. The company follows July-June as its financial year. Operating profit increased 12.9 per cent year-on-year to Rs 306 crore but margin declined 70 basis points to 19.8 per cent in the quarter gone by.
Kalyanpur Cements income dips
Kalyanpur Cements has reported a standalone total income from operations of Rs 40.12 crore and a net loss of Rs 12.62 crore for the quarter ended December 2014. Other income for the quarter was Rs 0.09 crore. For the quarter ended December 2013 the standalone total income from operations was Rs 50.99 crore and net loss was Rs 10.94 crore, and other income Rs 0.07 crore.
Jignesh Kundaria, Director and CEO, Fornnax Technology
India is simultaneously grappling with two crises: a mounting waste emergency and an urgent need to decarbonise its most carbon-intensive industries. The cement sector, the second-largest in the world and the backbone of the nation’s infrastructure ambitions, sits at the centre of both. It consumes enormous quantities of fossil fuel, and it has the technical capacity to consume something else entirely: the waste our cities cannot get rid of.
According to CPCB and NITI Aayog projections, India generates approximately 62.4 million tonnes of municipal solid waste annually, with that figure expected to reach 165 million tonnes by 2030. Much of this waste is energy-rich and non-recyclable. At the same time, cement kilns operate at material temperatures of approximately 1,450 degrees Celsius, with gas temperatures reaching 2,000 degrees. This high-temperature environment is ideal for co-processing, ensuring the complete thermal destruction of organic compounds without generating toxic residues. The physics are in our favour. The infrastructure is not.
Pre-processing is not the support act for co-processing. It is the main event. Get the particle size wrong, get the moisture wrong, get the calorific value wrong and your kiln thermal stability will suffer the consequences.
The Regulatory Push Is Real
The Solid Waste Management (SWM) Rules 2026 mandate that cement plants progressively replace solid fossil fuels with Refuse-Derived Fuel (RDF), starting at a 5 per cent baseline and scaling to 15 per cent within six years. NITI Aayog’s 2026 Roadmap for Cement Sector Decarbonisation targets 20 to 25 per cent Thermal Substitution Rate (TSR) by 2030. Beyond compliance, every tonne of coal replaced by RDF generates measurable carbon reductions which is monetisable under India’s emerging Carbon Credit Trading Scheme (CCTS). TSR is no longer a sustainability metric. It is a financial lever.
Yet our own field assessments across multiple Indian cement plants reveal a sobering reality: the primary barrier to scaling AFR adoption is not waste availability. It is the fragmented and under-engineered pre-processing ecosystem that sits between the waste and the kiln.
Why Indian Waste Is a Different Engineering Problem
Indian municipal solid waste is not the material that imported shredding equipment was designed for. Our waste streams frequently exceed 40 per cent to 50 per cent moisture content, particularly during monsoon cycles, saturated with abrasive inerts including sand, glass, and stone. Plants relying on imported OEM equipment face months of downtime awaiting proprietary spare parts. Machines built for segregated, low-moisture waste fail quickly and disrupt the entire pre-processing operation in Indian conditions.
The two most common failures we observe are what I call the biting teeth problem and the chewing teeth problem. Plants relying solely on a primary shredder reduce bulk waste to large fractions, but the output remains too coarse for stable kiln combustion. Others attempt to use a secondary shredder as a standalone unit without a primary stage to pre-size the feed, leading to catastrophic mechanical failure. When both stages are present but mismatched in throughput capacity, the system becomes a bottleneck. Achieving the 40 to 70 tonnes per hour required for meaningful coal displacement demands a precisely coordinated two-stage process.
Engineering a Made-in-India Answer
At Fornnax, our response to these challenges is grounded in one principle: Indian waste demands Indian engineering. Our systems are built around feedstock homogeneity, the holy grail of kiln stability. Consistent particle size and predictable calorific value are the foundation of stable kiln combustion. Without them, no TSR target is achievable at scale.
Our SR-MAX2500 Dual Shaft Primary Shredder (Hydraulic Drive) processes raw, baled, or loosely mixed MSW, C&I waste, bulky waste, and plastics, reducing them to approximately 150 mm fractions at throughputs of up to 40 tonnes per hour. The R-MAX 3300 Single Shaft Secondary Shredder (Hydraulic Drive), introduced in 2025, takes that primary output and produces RDF fractions in the 30 to 80 mm range at up to 30 tonnes per hour, specifically optimised for consistent kiln feeding. We have also introduced electric drive configurations under the SR-100 HD series, with capacities between 5 and 40 tonnes per hour, already operational at a leading Indian waste-processing facility.
Looking ahead, Fornnax is expanding its portfolio with the upcoming SR-MAX3600 Hydraulic Drive primary shredder at up to 70 tonnes per hour and the R-MAX2100 Hydraulic drive secondary shredder at up to 20 tonnes per hour, designed specifically for the large-scale throughput that higher TSR ambitions require.
The Investment Case Is Now
The 2070 Net-Zero target is not a distant goal for India’s cement sector. It starts today, with decisions being made on the plant floor.
The SWM Rules 2026 are already in effect, requiring cement plants to replace coal with RDF. Carbon credit markets are opening up, and coal prices are not going to get cheaper. Every tonne of coal a cement plant replaces with waste-derived fuel saves money on one side and generates carbon credit revenue on the other. Pre-processing infrastructure is no longer just a compliance requirement. It is a business investment with a measurable return.
The good news is that nothing is missing. The technology works. The waste is available in every Indian city. The government has provided the policy direction. The only thing standing between where the industry is today and where it needs to be is the commitment to build the right infrastructure.
The cement companies that move now will not just meet the regulations. They will be ahead of every competitor that waits.
About The Author
Jignesh Kundaria is the Director and CEO of Fornnax Technology. Over an experience spanning more than two decades in the recycling industry, he has established himself as one of India’s foremost voices on waste-to-fuel technology and alternative fuel infrastructure.
The World Cement Association (WCA) has announced SiloConnect as its newest associate corporate member, expanding its network of technology providers supporting digitalisation in the cement industry. SiloConnect offers smart sensor technology that provides real-time visibility of cement inventory levels at customer silos, enabling producers to monitor stock remotely and plan deliveries more efficiently. The solution helps companies move from reactive to proactive logistics, improving delivery planning, operational efficiency and safety by reducing manual inspections. The technology is already used by major cement producers such as Holcim, Cemex and Heidelberg Materials and is deployed across more than 30 countries worldwide.
TotalEnergies and Holcim have commissioned a floating solar power plant in Obourg, Belgium, built on a rehabilitated former chalk quarry that has been converted into a lake. The project has a generation capacity of 31 MW and produces around 30 GWh of renewable electricity annually, which will be used to power Holcim’s nearby industrial operations. The project is currently the largest floating solar installation in Europe dedicated entirely to industrial self-consumption. To ensure minimal impact on the surrounding landscape, more than 700 metres of horizontal directional drilling were used to connect the solar installation to the electrical substation. The project reflects ongoing collaboration between the two companies to support industrial decarbonisation through renewable energy solutions and innovative infrastructure development.