India’s leading cement producers are expected to invest INR120-130bn (US$1.3-1.4bn) in green-power capacity over the two years ending March 2028, according to ratings agency ICRA.
Renewable-energy and waste-heat-recovery capacity among seven major producers is forecast to rise by nearly 50 per cent, from approximately 4GW in March 2026 to 5.8-6GW by March 2028. ICRA estimates that the additional capacity could generate annual savings of INR62-67bn and achieve payback within 1.8-2.2 years.
The analysis covers UltraTech Cement, Shree Cement, ACC, Ambuja Cements, Birla Corp, Dalmia Bharat and Ramco Cements, which together represent around 65 per cent of India’s installed cement capacity.
ICRA estimates that every five-per-cent increase in green-power substitution can reduce power and fuel costs by INR15-16/t of cement. Replacing 25 per cent could save INR75-80/t and improve operating margins by 140-160 basis points.
The agency added that leading producers aim to raise thermal substitution rates from the current industry average of around six per cent to 10-15 per cent over the next three to five years. Large-scale carbon capture adoption is expected to proceed more slowly due to its cost, energy requirements and limited CO2 transport and storage infrastructure.
