The Indian cement industry is central to building a sustainable future for the nation and as one of the key enablers of infrastructure and growth, the sector must balance development with environmental responsibility.
Among these companies, Shree Cement has focused on launching premium products in the market and that strategy has helped it improve average realisation per tonne by about 5% on a sequential basis. A key driver for the high average realisation is the drop in the fuel sourcing cost with a rising share of green energy and efficiency measures.
Recognising the market demand for premium products, the share of premium products in its overall sales increased from 11.9% in the fourth quarter of financial year 2023-24 (Q4FY24) to 15.6% in Q4FY25. In Q4FY25, the company launched Bangur Marble cement, extra white Portland slag Cement in the Bihar, West Bengal and Jharkhand markets.
The products offer high-performance attributes and an eco-friendly approach, incorporating ground granulated blast-furnace slag by-product that is generated in the manufacture of steel. The composition supports a stronger, more durable structure while reducing environmental footprints.
“Blended cement forms a major part of our production strategy, helping conserve natural resources and cut emissions. In FY24, 73.5% of our cement output was blended, avoiding over 7.2 million tonnes of CO emissions,” says Neeraj Akhoury, Managing Director of Shree Cement.
Looking ahead, the company’s research and development efforts are focused on new-age, sustainable products such as Limestone Calcined Clay Cement (LC3) and with lab-scale production already underway, there is a strong potential for this innovation to support low-carbon construction.
“At Shree Cement, we believe this can be achieved through continuous innovation, operational efficiency and a long-term commitment to cleaner technologies. Energy conservation has long been a core focus for us. From simple shop-floor innovations to significant capital investments, every step is aimed at reducing emissions and improving efficiency,” says Akhoury. He lists out a series of accolades it has won for these efforts. It earned the prestigious ‘Best Performer’ award from the Bureau of Energy Efficiency for achieving the highest number of energy-saving certificates in PAT Cycles I and II, which aim to improve energy efficiency.
Shree Cement considers the scaling up of green power a major milestone in its journey. The company’s renewable energy capacity has now crossed 580 MW, driven by investments in solar, wind and work in Waste Heat Recovery (WHR) as it meets over 56% of energy consumption through sustainable sources. Over the last few years, it decided not to add any new thermal power capacity and progressively reduced the share of existing thermal power in overall power consumption.
It is also investing in the use of alternative fuels such as hazardous waste, biomass, and municipal solid waste (MSW) to reduce the dependence on fossil fuels. A state-of-the-art solid waste feeding system has been deployed to enhance alternate fuel consumption and improve thermal substitution within kilns at one of the units and is being replicated at others.
To support energy resilience, the company is implementing a 1 MW battery energy storage system at one of the units. This will allow it to store solar power and use it during non-solar hours, enhancing the efficiency of renewable energy assets.
As the cement industry shifts towards more climate-friendly options, there has been a growing demand for a procurement mandate to support the offtake of sustainable products. Akhoury believes that a policy on public procurement of blended cement can significantly accelerate decarbonisation.
“Mandating its use in public infrastructure projects will align government-funded development with national decarbonisation goals, drive demand for blended cement products and promote circular economy,” Akhoury adds.
Shree Cement sees sustainability not as a goal, but as a way of doing business by integrating environmental responsibility into every aspect of operations. It aims to lead by example and build sidings at various plants to streamline transportation and reduce dependence on conventional road logistics. This initiative will not only enhance the speed and reliability of material movement but also help reduce emissions associated with freight,” he explains further.
In recognition of such initiatives, Shree Cement has been picked as a winner in BT India’s Most Sustainable Companies 2025 awards in the Cement category.
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