Cement Demand Projection

Driven by strong government focus on housing and infrastructure development, consumption of cement is estimated to grow from 265 million tonnes per annum (mtpa) in fiscal year 2017 (FY17) to 322 mtpa in FY20.

Housing is the biggest driver of cement demand in India. It accounts for nearly 60-65% of total cement consumption. Overall, cement demand is likely to increase by 7-9% per annum.

JK Cements Expansion Plans

JK Cement, part of the JK Organisation conglomerate, plans to invest up to Rs 1,500 crore in the next 3-4 years to hike production capacity of grey cement by over 30 per cent to 14 million tonnes per annum. The actual value of investments would depend on whether the company expands capacity through greenfield or brownfield investments.

The company is likely to add one plant in Panna, Madhya Pradesh, which would be a greenfield project. JK Cement is evaluating expansion opportunities at its Rajasthan-based Mangrol plant. In 2014, JK Cement had invested in expanding capacity at Mangrol and split-grinding unit at Jhajjar.

The company will either set up new units or expand the production capacity of existing plants to tap growth opportunities in the grey cement segment, with demand primarily expected to come from the government's push for big infrastructure projects. Projects like smart cities, Sagarmala and housing for all are being taken up and all the growth and demand augurs well for the cement industry. Addition demand drivers for the cement industry are an expected rise in rural housing and good monsoon.

Reducing Global Carbon Dioxide Emissions

Cement Manufacture and CO2 Emissions

The construction sector is a major contributor to global carbon dioxide emissions. Though this is well known, it appears difficult to reduce the scale of construction activities, especially as it is a established route to bring about more equitable conditions in developing countries like India as against developed countries.

In the manufacture of Portland cement, limestone and  key inputs like clay are heated together in huge kilns to very high temperatures (approx. 1,450 degrees C), so that the components fuse without melting to give cement clinker. This part of the process releases the most amount of CO2. The carbon dioxide comes both from the burning of the fuel needed to create that temperature and also due to the breakdown of limestone into calcium oxide and carbon dioxide. The former process accounts for 40% of CO2 emissions while, the latter part accounts for 60% of the CO2 emissions in manufacture of cement. The best thing to do would be to substitute CO2-intensive clinker with one of less CO2 emissions.

Currently in India, fly ash which is a waste bye-product in the burning of coal for producing energy, is used in the manufacture of blended cement or Portland pozzolana cement. However, this is used in lower proportions and only where available so, is ineffective in reducing emissions to a more reasonable level.

One method of effectively reducing global carbon dioxide emissions is the use of Limestone Calcined Clay Cement or the LC3 technology. A research collaboration between India and Switzerland on a new cement material that can reduce carbon dioxide emissions in the manufacturing process is set to take off into implementation.