Economy & Market

Cement Outlook 2012: Not as bleak as it looks

Published

15 years ago

January 9, 2011

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Every other news that pertains to the cement sector presents a gloomy picture and leading the posse are research analysts who are not very optimistic of cement stocks with the exception of a few leading companies that have consistently performed well even under duress. Indian Cement Review checks out whether it is time to call the doctor….The Indian cement industry had witnessed a dream run in the recent past. Consumption of cement in the country had grown at a CAGR of 9.9 per cent during the period FY 06-10. The cement demand growth had surpassed the economic growth rate during the same period. In FY10, cement demand grew at 11.1 per cent recording a multiplier of 1.4 times with the economic growth rate. However, in FY11, cement demand grew at merely 5.1 per cent on YoY basis. The multiplier of cement demand growth to the GDP growth declined below one. Construction activities remained subdued in the last fiscal owing to various reasons. Prolonged monsoon, heavy winter, delay in execution of infrastructural projects due to environmental hurdles and end of construction activities related to Commonwealth Games all together led to lower cement demand growth in FY11. Slowdown in the housing sector due to rising interest rates also impacted cement off take.The long-term cement demand in the country is expected to remain intactGoing forward, cement demand will largely be driven by the increased focus of the government on the infrastructure development and promotion of low-cost affordable housing in the country. The real estate sector continues to dominate as the largest cement-consuming sector in the country. Decent economic growth, rising income levels of a growing middle class, concept of nuclear families catching pace, tax incentives and modern attitudes towards home ownership (the average age of a new homeowner has declined to 32 years compared with 45 years a decade ago) will continue to boost the housing demand and real estate related to the retail segment. The measures announced in the recent budget also indicate continued support of the government to the affordable housing segment which will help the real estate sector to continue its growth momentum and in turn cement demand. CARE Research estimates that in the next four to five years, cement demand to the tune of about 250-260 mn tonne is expected to emanate from the construction of new dwellings in the urban region alone.Infrastructure sector will need more than 600 million tonne of cement during the Twelfth Five Year PlanCement demand is expected to pick up as government expenditure on infrastructure projects catches momentum. In the recent budget, GoI has taken various initiatives to attract foreign funds towards the infrastructural sector. Such measures will help in providing the much-needed financial support to the infrastructural projects and in turn enable faster execution which will boost the cement demand. GoI has envisaged an investment of more than Rs 4000 bn for infrastructure development under the Twelfth Five Year Plan. This will augur well for the cement industry, currently almost 25 per cent of the total cement consumption in the country is contributed by the infrastructure sector. Based on the cement component in the civil construction, CARE Research has estimated that the investments planned under various sub-sectors of the infrastructure sector during the Twelfth Five Year Plan will derive a cement demand of more than 600 million tonne. The share of the infrastructure sector in the total cement consumption is estimated to reach a level of 35 per cent by the end of FY17. Cement demand which is expected to emanate on the back of the planned investments under different infrastructure sub-segments in the Twelfth five year plan is shown in the following chart: Cement demand is expected to grow at a CAGR of 9.3 per cent during the period FY 12-14. The following table gives the overall cement demand-supply situation over next three years:Capacity utilisation rate to remain in the range of 74-76 per cent during FY 12-14In past few years, the gap between cement demand and capacity has been widening due to substantial capacity addition. The cement industry witnessed a capacity addition of about 142.2 million tonne during the period of FY05-11. Out of this, about 67 million tonne of capacity was added in last two fiscals which is almost 23 per cent of industry’s total capacity as on March 31, 2011. As a result, the overall utilisation rate of the industry dropped from the peak of 93 per cent in FY07 to 75 per cent in FY11.Cement industry is expected to add capacity of about 86 million tonne in the period FY 12-14. The industry will continue to face a surplus situation. The operating rate of the industry will remain in the narrow range of 74 – 76 per cent during FY 12-14.Even though the Break-even Cushion is at comfortable level, prices to remain under pressureEven with the decline in the operating rate to a level below 80 per cent, the cement industry has been able to hold the prices on the back of high break-even cushion value.Break-even CushionBreak-even cushion is defined as the ratio of overall capacity utilisation rate of the industry to the utilisation rate at the break-even point in a particular year.Although the break-even cushion value has declined in the past three years, it is still at the comfortable level of two times. With this, cement industry is in better position to avoid substantial price cuts. However, CARE Research expects cement prices to remain under pressure in the current fiscal.(Revati Kasture, Head – Industry Research & Chaitanya Raut, Sr. Manager CARE Ratings)Operating rates will be challenged, profitability headed towards decadal lowCRISIL Research expects cement profitability to decline to its lowest level in the past 10 years by 2012-13. A huge demand-supply imbalance, fueled by supply glut, will drive cement profitability down. The supply glut will slacken cement manufacturers’ operating rates, restricting their ability to pass on a sharp rise in power and fuel costs to consumers.Over the next two years, while cement capacities rise by 60 million tonne per annum (mtpa), demand will increase by a mere 30 mtpa. Operating rates of cement manufacturers will therefore plunge to around 72 per cent in 2012-13 from an already subdued 78 per cent in 2010-11. Cost of power and fuel, a major input for cement, will increase by around 18 per cent in 2011-12, given a steep increase in coal prices by the industry’s dominant supplier, Coal India Ltd. In addition, an increase in effective excise duty rates will lower cement manufacturers’ net price realisations by 2-4 per cent."The magnitude of the demand-supply imbalance and cost escalation will halve the cement industry’s EBITDA margins from the current 20 per cent to around 10 per cent in 2012-13 – the lowest level in the past 10 years," Prasad Koparkar, Head – Industry and Customised Research, CRISIL Research said. Small-sized cement manufacturers – with capacities of less than 2 mtpa – are likely to post losses of about 2 per cent at the EBITDA level in 2012-13. Large cement manufacturers – capacities of 10 mtpa or higher, however, will fare better than the industry average, with EBITDA margins of about 12 per cent.The key reasons for the better performance of large cement manufacturers will be their greater use of captive power and their inherent economies of scale. These companies meet three-fourth of their power requirements through captive generation. Small cement companies, in contrast, meet a mere 5 per cent of their power requirements through the captive route, and source the remainder from the more expensive grid power. "Captive power can make a critical difference to cement profitability," Ajay D’souza, Head, CRISIL Research explained. "Every 10 percentage point increase in captive power consumption can improve cement companies’ EBIT DA margins by 50 basis points."An expert from the industry however dismisses the fears and says that the environment is being painted gloomier than it actually is. "If you look at some established companies they have been doing well despite the hardships and constraints. We expect the agriculture sector to grow and with the good monsoons we have had so far, we are looking at greater rural demand – NREGA spending is up. In a bid to counter global slowdown the government is already planning to boost up internal spending on infrastructure."Sumit Banerjee, CEO, Reliance Cementation, has this to say on the scenario: "Cement sector is cyclical and what we are seeing today is hopefully the bottom of the cycle. The current imbalance in the demand-supply situation is temporary and that too regional in nature. While a near equilibrium exists between demand and supply in some regions, there is excess capacity in South. With consumption growth expected to remain under pressure on account of delays in infrastructure and reality projects, rising capital cost, etc. the average all India capacity utilisation level in FY 12 is expected to touch less then 75 per cent, lowest in the past decade, and then gradually climbing back to 77 per cent in FY 13 and more than 78 per cent in FY14. However, on a longer term basis, with a GDP growth back on track, and thrust on development of physical infrastructure, we expect the growth in cement demand to be robust at around 10% in future. Moreover, with fewer limestone deposits now available to support new plants, coupled with constraints of acquiring land and getting statutory approvals, capacity additions through new green field projects will also slacken in the coming few years. Together, both these factors are likely to result in shortening the down cycle time for the industry and 90 per cent capacity utilization level could be reached earlier than expected."On the drop of prices in the month of July he says, "The drop in cement prices in July is on expected lines due to onset of monsoon as there is an overall slowdown in construction activities. Prices are expected to remain under pressure until Oct 11 and thereafter we may see some upward correction."According to him the eastern and central regions are expected to show higher growth as compared to the other regions.Don’t call the doctor yet….Bleak as it looks, the industry has the capability to withstand the onslaught of varied negative factors and still come out a winner. Despite many analysts predicting dark days ahead for cement companies, shares of some of the larger companies have managed to hold their own while other sectors have dipped. Post the announcement of RBI on credit tightening, domestic benchmark indices have lost 12 per cent in value. The Bombay Stock Exchange’s benchmark Sensex lost 2,194.54 points, to close at 16,676.75 on August 30. But cement stocks have not only stood steady some of them have appreciated. At the time of going to press, UltraTech Cement had gained 7.1 per cent since then and Ambuja Cements was up by 1.4 per cent and ACC gained 0.4 per cent. While it may be true that the June quarter results may have something to do with their performance experts agree that it is definitely better than expected.True cement companies are facing problems that stretch from over-capacity, low price realisation to falling demand for building material, rising input costs, lack of major infrastructure projects and, a charge of cartelisation, but the days ahead still hold some hope. Comes the good news from some companies that dispatches are on the rise. Jaiprakash Associates has announced that its cement shipments in August rose 21 percent from a year earlier to 1.32 million tonne. ACC has announced that its production & despatch figures for the month of August 2011 recorded an increase in sales at 1.88 million tonne compared to 1.57 million tonne in the corresponding period. Also the production increased from 1.56 million tonne to 1.88 million tonne.With the monsoon coming to an end, demand is surely going to pick up soon. The government may also quick track many infrastructure projects to balance the global downgrade and help the economy and this also bodes well for the cement sector.10 Per cent growth, a possibilityWorldwide cement consumption is forecast to reach a record 3,859 million tonne in 2012, 17 per cent up from 2010 levels. Global cement consumption growth had slowed to 2.4 per cent in 2008, the crisis ridden year, recovered to 5.9 per cent in 2009 with volumes touching 2,998 million tonne and further to 3,294 million tonne in 2010, giving annual growth rate of 9.9 per cent. China dominates world cement statistics consuming 1,851 million tonne in 2010, almost double of 2004 levels, while India, the world’s second-largest consumer registered 212 million tonne in 2010. The United States, the third-largest consumer, saw demand fall down to 69 million tonne.What happened in India? The Indian cement industry sustained its growth rate even in the tough conditions of economic slowdown. According to FIRST Infocentre, the Indian cement industry witnessed tremendous growth on the back of continuously rising demand from the housing sector, increased activity in infrastructure, and construction boom. Recent industry developments and the government supportive policies are attracting global cement giants and sparking off a spate of mergers and acquisitions to spur growth. Numerous domestic and international cement companies are striving hard to establish their production base in the country.Majority of the cement companies expanded their installed capacity against the backdrop of government backed infrastructure construction projects as these projects created strong demand for cement. With the growth in real estate activities and boom in the development of infrastructure, cement industry was on a roll in India.Before venturing into forecast for 2012, it would be necessary to dwell into the base year, 2011. After growing by less than 5 per cent in 2010, cement consumption is projected to grow by 11 per cent to 240 million tonne in 2011.Cement consumption has a very strong correlation with the economic growth as construction activities pick-up with the rise income levels. Construction GDP is projected to grow 10 per cent.FIRST Infocentre provides three scenarios for cement consumption forecast for 2012 based on the correlation of past drivers, challenges, and opportunities for expansion;

The worst-case scenario forecast pegs cement consumption growth at 8 per cent in 2012 if real GDP grows by 6.5 per cent and prices of fuel inputs rise faster than in 2011.
The most likely scenario is around 10 per cent increase in cement consumption, wherein, the GDP will grow by 8 per cent and fuel costs move up moderately in line with the general inflation rate.
The optimistic projection pegs consumption growth at 12.2 per cent, assuming GDP grows 9.5 per cent and fuel prices rise slower than the general inflation rate.

Thoroughly examining all emerging trends and drivers fueling growth in the cement industry, the regional cement demand-supply dynamics varies from state to state. The Twelfth Five Year Plan is expected to spend over US$1 trillion on infrastructure sector over the five year period beginning 2012-13. During the first year, more of spill over projects will be targeted for completion, along with the addition of new plan projects. This will boost demand for cement in states that attract more investment projects. For example, Orissa has been seeing number of projects increasing rapidly.Courtesy: FIRST Infocentre

Concrete

The primary high-power applications are fans and mills

Published

2 weeks ago

October 10, 2025

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Alex Nazareth, Whole-time Director and CEO, Innomotics India, explains how plants can achieve both cost competitiveness and sustainability by lowering emissions, reducing downtime and planning for significant power savings.

As one of the most energy-intensive industries, cement manufacturing faces growing pressure to optimise power consumption, reduce emissions and improve operational reliability. Technology providers like Innomotics India are enabling this transformation by combining advanced motors, AI-driven digital solutions and intelligent monitoring systems that enhance process stability and reduce energy costs. From severe duty motors built for extreme kiln environments to DigiMine AI solutions that optimise pyro and mill operations, Alex Nazareth, Whole-time Director and CEO, Innomotics India, explains how the company is helping cement plants achieve measurable energy savings while moving closer to their sustainability goals.

How does your Energy Performance Contracting model typically reduce power consumption in cement plants—e.g., MWh saved?
Our artificial intelligence-based DigiMine AI Pyro and Mill solutions developed specifically for the cement industry, supports our customers in improving their process stability, productivity and process efficiency. In Pyro, this is achieved by optimising fuel consumption (Coal / AFR), reducing Specific Heat Consumption and reduction in emissions (CO2, SOx and NOx) through continuous monitoring of thermodynamics in pyro and recommending set-points of crucial parameters in advance for maintaining stable operations.
Within the mill, this is achieved by improving throughput, reduce energy / power consumption and maintaining stable operations on a continuous basis. Our ROI-based value proposition captures the project KPIs like reduction of coal usage, increase of AFR, reduction of specific heat consumption (Kcal / Kg), reduction of specific power consumption (KWH / tonne), reduction of emissions, etc., by a specific percentage. This gives clarity to our customers to understand the investment vis-à-vis savings and estimate the recovery time of their investment, which typically is achieved within one year of DigiMine AI Pyro and Mill solutions implementation.

What role do digitalisation and motor monitoring play in overall plant energy optimisation?
Motors are being used extensively in cement production, and their monitoring play crucial role in ensuring continuous operation of applications. The monitoring system can automatically generate alerts for any anomaly / abnormalities in motor parameters, which allows plant team to take corrective actions and avoid any major equipment damage and breakdown. The alerts help maintenance team to plan maintenance schedule and related activity efficiently. Centralised and organised data gives overview to the engineers for day-to-day activities. Cement is amongst the top energy intensive industries in comparison to other industries. Hence, it becomes critically important to optimise efficiency, productivity and up-time of plant equipment. Motor monitoring and digitalisation plays a vital role in it. Monitoring and control of multiple applications and areas
within the plant or multiple plants becomes possible with digitalisation.
Digitalisation adds a layer on top of OT systems, bringing machine and process data onto a single interface. This solves the challenges such as system silo, different communications protocol, databases and most importantly, creates a common definition and measurement to plant KPIs. Relevant stakeholders, such as engineers, head of departments and plant heads, can see accurate information, analyse it and make better decisions with appropriate timing. In doing so, plant teams can take proactive actions before machine breakdown, enable better coordination during maintenance activities while improving operational efficiency and productivity.
Further using latest technologies like Artificial Intelligence can even assist operators in running their plant with minimal requirement of human intervention, which allows operators to utilise their time in focusing on more critical topics like analysing data to identify further improvements in operation.

Which of your high-efficiency IEC low-voltage motors deliver the best energy savings for cement mills or fans?
Innomotics India offers a range of IEC-compliant low-voltage motors engineered to deliver superior performance and energy savings, particularly for applications such as cement mills, large fans, and blowers. Innomotics has the complete range of IE4 motors from 0.37kW to 1000kW to meet the demands of cement industry. The IE5 range is also available for specific requirements.

Can safe area motors operate safely and efficiently in cement kiln environments?
Yes, safe area motors are designed to operate reliably in these environments without the risk of overheating. These motors have ingress protection that prevents dust, moisture ingress and can withstand mechanical stress. These motors are available in IE3 / IE4 efficiency classes thereby ensuring lower energy consumption during continuous operation. These motors comply with relevant Indian as well as international standards.

How do your SD Severe Duty motors contribute to lower emissions and lower cost in heavy duty cement applications?
Severe duty motors enhances energy efficiency and durability in demanding cement applications, directly contributing to lower emissions and operational costs. With high-efficiency ratings (such as IE3 or better), they reduce power consumption, minimising CO2 output from energy use. Their robust design handles extreme heat, dust and vibration—common in cement environments—ensuring reliable performance and fewer energy losses.
These motors also lower the total cost of ownership by reducing downtime, maintenance and replacement frequency. Their extended service life and minimal performance degradation help cement plants meet sustainability targets, comply with emissions regulations and improve overall energy management—all while keeping production consistent and cost-effective.

What pump, fan or compressor drive upgrades have shown approximately 60 per cent energy savings in industrial settings and can be replicated in cement plants?
In the cement industry, the primary high-power applications are fans and mills. Among these, fans have the greatest potential for energy savings. Examples, the pre-heater fan, bag house fan, and cooler fans. When there are variations in airflow or the need to maintain a constant pressure in a process, using a variable speed drive (VSD) system is a more effective option for starting and controlling these fans. This adaptive approach can lead to significant energy savings. For instance, vanes and dampers can remain open while the variable frequency drive and motor system manage airflow regulation efficiently.

Concrete

We conduct regular internal energy audits

Published

2 weeks ago

October 10, 2025

admin

Shaping the future of low-carbon cement production involves integrating renewables, digitalisation and innovative technologies. Uma Suryam, SVP and Head Manufacturing – Northern Region, Nuvoco Vistas, gives us a detailed account of how.

In an industry where energy consumption can account for a significant portion of operating costs, cement manufacturers are under increasing pressure to adopt sustainable practices without compromising efficiency. Nuvoco Vistas has taken a decisive step in this direction, leveraging digitalisation, renewable energy and innovative technologies to drive energy efficiency across its operations. In this exclusive conversation, Uma Suryam, SVP and Head Manufacturing – Northern Region, Nuvoco Vistas, shares its approach to energy management, challenges of modernising brownfield plants and its long-term roadmap to align efficiency with India’s net-zero vision.

How has your company improved energy efficiency over the past five years?
Over the past five years, we have prioritised energy conservation by enhancing operational efficiency and scaling up renewable energy adoption. Through strategic fuel mix optimisation, deployment of cleaner technologies, and greater integration of renewables, we have steadily reduced our environmental footprint while meeting energy needs sustainably.
Technological upgrades across our plants have further strengthened efficiency. These include advanced process control systems, enhanced trend analysis, grinding media optimisation and the integration of solar-powered utilities. Importantly, grid integration at our key plants has delivered significant cost savings and streamlined energy management.
A notable milestone has been the expansion of our solar power capacity and Waste Heat Recovery Systems (WHRS). Our solar power capacity has grown from 1.5 MW in FY 2021–22 to 5.5 MW, while our WHRS capacity has increased from 44.7 MW to 49 MW, underscoring our commitment to sustainable energy solutions.

What technologies or practices have shown the highest energy-saving potential in cement production?
One of our most significant achievements in advancing energy efficiency has been the successful commissioning of a 132 KV Grid Integration Project, which unified three of our major manufacturing units under a single power network. This milestone, enabled by a dedicated transmission line and a state-of-the-art Line-In Line-Out (LILO) substation, has transformed our energy management and operational capabilities.
With this integration, we have substantially reduced our contract demand, eliminated power disruptions, and enhanced operational continuity. Supported by an optical fibre network for real-time communication and automation, this project stands as a testament to our innovation-led manufacturing excellence and underscores Nuvoco’s vision of building a safer, smarter, and sustainable world.

What role does digitalisation play in achieving energy efficiency in your operations?
Digitalisation plays a transformative role in driving energy efficiency across our operations. At Nuvoco, we are leveraging cutting-edge technologies and advanced digital tools to enhance productivity, optimise energy consumption and strengthen our commitment to sustainability and employee safety.
We are developing AI-enabled dashboards to optimise WHRS and kiln operations, ensuring maximum efficiency. Additionally, our advanced AI models evaluate multiple operational parameters — including fuel pricing, moisture content and energy output — to identify the most cost-effective fuel combinations in real time. These initiatives are enabling data-driven decision-making, improving operational excellence and reducing our environmental footprint.

What is your long-term strategy for aligning energy efficiency with decarbonisation goals?
As part of India’s climate action agenda, the cement sector has laid out a clear decarbonisation roadmap to achieve net-zero CO2 emissions by 2070. At Nuvoco, we view this as both a responsibility and an opportunity to redefine the future of sustainable construction. Our long-term strategy focuses on aligning energy efficiency with decarbonisation goals by embracing innovative technologies, alternative raw materials and renewable energy solutions.
We are making strategic investments to scale up solar power installations and enhance our renewable energy mix significantly by 2028. These initiatives are a key part of our broader vision to reduce Scope 2 emissions and strengthen our contribution to India’s net-zero journey, while continuing to deliver innovative and sustainable solutions to our customers.

How do you measure and benchmark energy performance across different plants?
We adopt a comprehensive approach to measure and benchmark energy performance across our plants. Key metrics include Specific Heat Consumption (kCal/kg of clinker) and Specific Power Consumption (kWh/tonne of cement), which are continuously tracked against Best Available Technology (BAT) benchmarks, industry peers and global standards such as the WBCSD-CSI and CII benchmarks.
To ensure consistency and drive improvements, we conduct regular internal energy audits, leverage real-time dashboards and implement robust KPI tracking systems. These tools enable us to compare performance across plants effectively, identify optimisation opportunities and set actionable targets for energy efficiency and sustainability.

What are the key challenges in adopting energy-efficient equipment in brownfield cement plants?
Adopting energy-efficient technologies in brownfield cement plants presents a unique set of challenges due to the constraints of working within existing infrastructure. Firstly, the high capital expenditure and relatively long payback periods often require careful evaluation before investments are made. Additionally, integrating new technologies with legacy equipment can be complex, requiring significant customisation to ensure seamless compatibility and performance.
Another major challenge is minimising production disruptions during installation. Since brownfield plants are already operational, upgrades must be planned meticulously to avoid affecting output. In many cases, space constraints in older facilities add to the difficulty of accommodating advanced equipment without compromising existing layouts.
At Nuvoco, we address these challenges through a phased implementation approach, detailed project planning and by fostering a culture of innovation and collaboration across our plants. This helps us balance operational continuity with our commitment to driving energy efficiency and sustainability.

Concrete

Digitalisation is pivotal in driving energy efficiency

Published

2 weeks ago

October 10, 2025

admin

As energy costs continue to dominate the cement industry, efficiency and sustainability are proving to be vital components. MM Rathi, Joint President, Power Management, Shree Cement, explains the company’s long-term strategy is focused on cutting emissions while powering growth with renewable energy solutions.

Energy efficiency has always been a cost-saving lever for the cement industry. Today, it is the backbone of sustainability and competitiveness. Cement manufacturers are under growing pressure to optimise consumption, diversify power sources and align with decarbonisation targets. Shree Cement has been at the forefront of this transformation, significantly scaling up its green power capacity and embedding advanced technologies across operations. In this exclusive conversation, MM Rathi, Joint President – Power Management, Shree Cement, shares insights on the company’s approach to energy efficiency, challenges in brownfield modernisation and long-term strategies for achieving net zero alignment.

What percentage of your total operational cost is attributed to energy consumption?
At Shree Cement, energy is one of the most significant components of production cost, accounting for nearly 30 per cent to 40 per cent of total operational expenses. Within this, thermal energy typically contributes around 20 per cent to 25 per cent, while electrical energy forms about 10 per cent to 15 per cent. The exact share varies depending on factors such as the fuel mix (coal, pet coke or alternative fuels and raw materials), the power source (grid-based or captive like solar, wind or thermal), raw mix quality, and regional fuel and electricity price variations. This makes energy efficiency and the adoption of sustainable power sources a key focus area, both from a cost and sustainability perspective.

How has your company improved energy efficiency over the past five years?
Over the past five years, Shree Cement has consistently invested in enhancing energy efficiency across operations. Our green power capacity, covering wind, solar and Waste Heat Recovery (WHR), has more than doubled from 245 MW in 2020 to 592 MW in 2025. All grinding units are now equipped with biomass firing facilities, reducing dependence on conventional fuels. From the project stage itself, we prioritise efficiency by selecting advanced technologies such as six-stage kilns with integrated WHR, CFD-designed plants, and equipment fitted with VFDs, centrifugal compressors and high-efficiency fans. We also review and upgrade equipment systematically, replacing fans, compressors, blowers, pumps, boilers and turbines with more efficient options. This continuous approach has reduced costs while significantly advancing our sustainability journey.
What technologies or practices have shown the highest energy-saving potential in cement production?
WHR stands out as one of the most effective solutions, offsetting a significant portion of electricity required for clinker production. Hot air recirculation has also proven highly beneficial in reducing heat losses. Additionally, regular energy audits help us identify opportunities for improvement and implement corrective measures in daily operations. Together, these practices play a critical role in optimising energy efficiency and driving sustainable operations.

What are the key challenges in adopting energy-efficient equipment in brownfield cement plants?
The biggest challenge is the significant upfront investment required for upgradation. Retrofitting existing facilities often involves complex civil and structural modifications, which add costs and extend downtime. Integration is another hurdle, as new high-efficiency equipment may not align seamlessly with older kiln systems, fans, mills or automation setups. These factors make the transition in brownfield plants more resource-intensive and time-consuming compared to greenfield projects.

How do you measure and benchmark energy performance across different plants?
We track key performance indicators such as specific heat consumption and specific power consumption for each unit, benchmarking them against internal and external standards. Thermal Substitution Rate (TSR percentage) is another critical metric, measuring the share of alternative fuels in the thermal energy mix. Internally, we benchmark performance across plants to encourage best practice sharing. Externally, we compare against national averages and align with the Bureau of Energy Efficiency’s PAT (Perform, Achieve, Trade) scheme, which sets Specific Energy Consumption (SEC) baselines and targets for cement plants. This multi-layered approach ensures continuous monitoring, improvement, and industry leadership in energy efficiency.

What role does digitalisation play in achieving energy efficiency in your operations?
Digitalisation is pivotal in driving energy efficiency at Shree Cement. IoT sensors integrated with SCADA and DCS systems allow real-time monitoring of parameters like heat consumption and energy use, moving beyond periodic reports. Our digital platforms consolidate plant data, enabling management to compare metrics such as SPC, SHC, kWh per tonne and kcal per kg across units in real time. This visibility supports data-driven decisions, faster corrective actions, and higher operational efficiency.

How do government policies and incentives influence your energy-saving decisions?
Government policies and incentives strongly shape our energy-saving decisions. The Perform, Achieve, Trade (PAT) scheme sets plant-specific SEC targets. Non-compliance incurs penalties, while compliance earns tradable energy-saving certificates. This ensures energy efficiency is both cost-driven and regulatory. Additionally, subsidies and viability gap funding for renewable energy projects in wind, solar and AFR co-processing help reduce payback periods and make energy-saving investments more viable.

What is your long-term strategy for aligning energy efficiency with decarbonisation goals?
Our long-term strategy aligns energy efficiency with India’s net zero 2070 goals. Key levers include improving efficiency, expanding green electricity, producing more blended cement, and increasing alternative fuel use. Today, more than 60 per cent of our electricity comes from green sources such as solar, wind, and WHR, the highest in India’s cement industry. Our blended cement products, which reduce limestone and fuel consumption, further lower emissions. These products are certified under the GreenPro ecolabel by CII, validating our sustainability practices and environmental standards.