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

Material Flow Efficiency

Published

2 hours ago

March 18, 2026

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We explore how material handling systems are becoming strategic assets in cement plants, enabling efficient movement of raw materials, clinker and finished cement. Advanced conveying, automation and digital technologies are improving plant productivity while supporting energy efficiency and sustainability goals.

Material handling systems form the operational backbone of cement plants, enabling the efficient movement of raw materials, clinker and finished cement across complex production networks. With India’s cement industry producing over 391 million tonnes of cement in FY2024 and possessing an installed capacity of around 668 mtpa, according to the CRISIL Research Industry Report, 2025, efficient material logistics have become critical to maintaining plant productivity and cost competitiveness. At the same time, cement production is highly energy intensive and contributes around 7 per cent to
8 per cent of global CO2 emissions, making efficient material flow and logistics optimisation essential for reducing operational inefficiencies and emissions states the International Energy Agency Cement Technology Roadmap, 2023. As plants scale capacity and integrate digital technologies, modern material handling systems, ranging from automated conveyors to intelligent stockyards, are increasingly recognised as strategic assets that influence plant stability, energy efficiency and environmental performance.

Strategic role of material handling
Material handling is no longer viewed as a secondary utility within cement plants; it is now recognised as a strategic system that directly influences production efficiency and process stability.
Cement manufacturing involves the continuous movement of large volumes of limestone, clay, additives, clinker and finished cement across multiple production stages. Even minor disruptions in conveying systems or storage infrastructure can lead to kiln feed fluctuations, production delays and significant financial losses. According to Indian Cement Industry Operational Benchmarking Study, 2024, unplanned downtime in large integrated cement plants can cost between Rs.15–20 lakh per hour, highlighting the economic importance of reliable material handling systems.
Modern cement plants are therefore investing in advanced mechanical handling systems designed for high throughput and operational reliability. Large integrated plants can process over 10,000 tonnes per day of clinker, requiring highly efficient conveying systems and automated stockyards to maintain continuous material flow, suggests the International Cement Review Industry Analysis, 2024. Efficient material handling also reduces spillage, minimises dust emissions and improves workplace safety. As cement plants become larger and more technologically advanced, the role of material handling is evolving from simple transport infrastructure to a critical operational system that supports both productivity and sustainability.

From quarry to plant
The transport of raw materials from quarry to processing plant represents one of the most energy-intensive stages of cement production. Traditionally, limestone and other raw materials were transported using diesel-powered trucks, which resulted in high fuel consumption, dust generation and increased operational costs. However, modern plants are increasingly adopting long-distance belt conveyors and pipe conveyors as a more efficient alternative. These systems allow continuous material transport over distances of 10–15 kilometres, significantly reducing fuel consumption and operating costs while improving environmental performance, states the FLSmidth Cement Industry Technology Report, 2024.
Milind Khangan, Marketing Manager, Vertex Market Research & Consulting, says, “Efficient and enclosed handling of fine materials such as cement, fly ash and slag requires modern pneumatic conveying systems. By optimising the air-to-material ratio, these systems can reduce energy consumption by 10 per cent to 15 per cent while ensuring smooth material flow. Closed-loop conveying further minimises dust loading and improves the performance of bag filters, supporting cleaner plant operations. In addition, flow-regulated conveying lines help prevent clogging and maintain reliable dispatch performance. Overall, automation in pneumatic conveying delivers immediate operational benefits, including improved equipment uptime, lower energy use, reduced material spillage and more stable kiln and mill performance.”
Pipe conveyor systems are particularly gaining traction because they provide a completely enclosed transport system that prevents material spillage and dust emissions. According to global cement engineering studies, conveyor-based transport can reduce energy consumption by up to 30 per cent compared to truck haulage, while also improving operational reliability. Several cement plants in India have already implemented such systems to stabilise quarry-to-plant logistics while reducing carbon emissions associated with diesel transport.

Stockyard management and homogenisation
Stockyards play a critical role in maintaining raw material consistency and stabilising kiln feed quality. Modern cement plants use advanced stacker and reclaimer systems to ensure efficient storage and blending of raw materials before they enter the grinding and pyroprocessing stages. Automated stacking methods such as chevron or windrow stacking enable uniform distribution of materials, while bridge-type or portal reclaimers ensure consistent extraction during kiln feed preparation. These systems are essential for maintaining stable chemical composition of raw meal, which directly influences kiln efficiency and clinker quality. The Cement Plant Operations Handbook, 2024 indicates that advanced homogenisation systems can reduce raw mix variability by up to 50 per cent, significantly improving kiln stability and energy efficiency. Integrated stockyard management systems also incorporate sensors for monitoring bulk density, moisture levels and stockpile volumes, enabling real-time control over material blending processes.

Clinker and cement conveying technologies
Once clinker is produced in the kiln, it must be efficiently transported to storage silos and subsequently to grinding and packing units. Modern cement plants rely on high-capacity belt conveyors, bucket elevators and pneumatic conveying systems to manage this stage of material flow. Steel-cord belt bucket elevators are now capable of lifting materials to heights exceeding 120 metres with capacities reaching 1,500 tonnes per hour, making them suitable for large-scale clinker production lines, states the European Cement Engineering Association Technical Paper, 2023.
For fine materials such as cement, fly ash and slag, pneumatic conveying systems provide a reliable and dust-free solution. These systems transport powdered materials using controlled airflow, ensuring enclosed and contamination-free movement between grinding units, silos and packing stations. Optimised pneumatic systems can reduce energy consumption by 10 per cent to 15 per cent compared to older conveying technologies, while also improving plant cleanliness and environmental compliance, according to the Global Cement Technology Review, 2024.

Automation and digitalisation
Digitalisation is transforming material handling systems by introducing real-time monitoring, predictive maintenance and automated control. Advanced sensors and Industrial Internet of Things (IIoT) platforms enable plant operators to track conveyor health, stockpile levels and equipment performance in real time. Predictive maintenance systems analyse vibration patterns, temperature fluctuations and equipment load data to detect potential failures before they occur. According to McKinsey’s Industry 4.0 Manufacturing Report, 2023, for heavy industries, digital monitoring and predictive maintenance technologies can reduce equipment downtime by up to 30 per cent and increase productivity by 10 per cent to 15 per cent. Digital control centres also integrate data from conveyors, stacker reclaimers and dispatch systems, enabling centralised management of material flows from quarry to dispatch.

Handling of AFR
The growing adoption of Alternative Fuels and Raw Materials (AFR) has introduced new challenges and opportunities for material handling systems in cement plants. AFR materials such as refuse-derived fuel (RDF), biomass and industrial waste often have irregular particle sizes, variable moisture content and lower bulk density compared to conventional fuels. As a result, specialised storage, dosing and feeding systems are required to ensure consistent kiln combustion. According to the Cement Sector Decarbonisation Roadmap published by NITI Aayog in 2026, increasing the use of AFR could enable India’s cement sector to achieve thermal substitution rates of around 20 per cent in the coming decades. To support this transition, plants are investing in automated receiving stations, shredding units, drying systems and precision dosing equipment to stabilise AFR supply and combustion performance.

Energy efficiency and dust control
Material handling systems also play a crucial role in improving plant energy efficiency and environmental performance. Modern conveyor systems equipped with variable speed drives and energy-efficient motors can significantly reduce electricity consumption. Permanent magnet motors used in conveyor drives can deliver 8 per cent to 12 per cent energy savings compared to conventional induction motors, improving overall plant energy efficiency according to the IEA Industrial Energy Efficiency Study, 2023. Dust control is another major concern in cement plants, particularly during material transfer and storage operations. Enclosed conveyors, dust extraction systems and advanced bag filters are widely used to minimise particulate emissions and improve workplace safety.

Future trends in material handling
The future of material handling in cement plants will be shaped by automation, digitalisation and sustainability considerations. Emerging technologies such as AI-driven logistics optimisation, autonomous mobile equipment and digital twins are expected to further improve plant efficiency and operational visibility. Digital twin models allow engineers to simulate material flow patterns, optimise stockyard operations and predict equipment performance under different operating conditions. According to the International Energy Agency Digitalisation and Energy Report, 2024, the adoption of advanced digital technologies could improve industrial energy efficiency by up to 20 per cent in heavy industries such as cement manufacturing. As cement plants expand capacity and adopt low-carbon technologies, intelligent material handling systems will play a critical role in maintaining productivity and reducing environmental impact.

Conclusion
Material handling systems have evolved from basic transport infrastructure into strategic operational systems that directly influence plant efficiency, reliability and sustainability. From quarry transport and automated stockyards to digital dispatch platforms and advanced conveying technologies, modern material handling solutions enable cement plants to manage large production volumes while maintaining process stability.
As India’s cement industry continues to expand to meet infrastructure and urban development demands, investments in advanced material handling technologies will become increasingly important. By integrating automation, digital monitoring and energy-efficient systems, cement manufacturers can improve operational performance while supporting the industry’s long-term sustainability and decarbonisation goals.

Kanika Mathur

Concrete

Modernise to Optimise

Published

2 hours ago

March 18, 2026

admin

Cement plant modernisation is reshaping the industry through upgrades in
kilns, energy systems, digitalisation, AFR integration and advanced material
handling. We explore these technologies that improve efficiency, reduce
emissions, strengthen competitiveness, while preparing the industry for India’s
next phase of infrastructure growth.

India’s cement industry, the world’s second-largest, is undergoing a rapid transformation driven by infrastructure demand, decarbonisation targets and technological advancement. The sector’s installed capacity stood at approximately 668 million tonnes per annum (mtpa) in FY2025 and is projected to reach 915–925 mtap by 2030, supported by large-scale capacity expansions and infrastructure investment cycles, suggests CRISIL Intelligence Industry Report, 2025. At the same time, cement production remains highly energy intensive and contributes about 6 per cent to 7 per cent of India’s total greenhouse gas emissions, making efficiency improvements and modernisation critical for long-term sustainability as stated in CareEdge ESG Research, 2025. As a result, cement manufacturers are investing in advanced kiln technologies, digital monitoring systems, waste heat recovery, alternative fuels, and modern material handling infrastructure to enhance productivity while aligning with global decarbonisation pathways.

Need for modernisation
The need for plant modernisation is closely linked to the sector’s rapid capacity expansion and rising operational complexity. India’s installed cement capacity has grown significantly in the last decade and is expected to exceed 900 mtpa by 2030, driven by demand from housing, infrastructure and urban development projects, as per the CRISIL Intelligence Industry Report, 2025. However, increasing scale also places pressure on energy efficiency, logistics, and production stability. The report also suggests that the cement plants must upgrade equipment and processes to operate at higher utilisation rates, which are projected to reach 75 per cent to 77 per cent by the end of the decade, compared to around 72 per cent to 74 per cent in FY2026.
Environmental imperatives are another major driver of modernisation. Cement manufacturing is responsible for a significant share of industrial emissions because clinker production requires high-temperature processes that depend heavily on fossil fuels. According to CareEdge ESG research, the cement sector contributes 6–7 per cent of India’s total greenhouse gas emissions, with approximately 97 per cent of emissions arising from direct fuel combustion and process emissions in kilns. Consequently, plant modernisation initiatives now focus not only on productivity improvements but also on reducing emissions intensity, energy consumption, and reliance on conventional fuels.
“One of the most impactful upgrades implemented at Shree Cement in the last five years has been the adoption of advanced data management platforms that provide real-time visibility across major process areas. This digital advancement has strengthened plant automation by enabling faster and more accurate responses to process variations while improving the reliability of control loops. Real-time dashboards, integrated analytics and automated alerts now support quicker, data-driven decision-making, helping optimise kiln and mill performance, improve energy control and detect deviations early. By consolidating data from multiple systems into a unified digital environment, the company has enhanced operational consistency, reduced downtime and improved both productivity and compliance. This shift towards intelligent automation and real-time data management has become a key driver of operational excellence and future-ready plant management,” says Satish Maheshwari, Chief Manufacturing Officer, Shree Cement.

Kiln and pyroprocessing upgradation
The kiln remains the technological heart of cement manufacturing, and modernisation efforts often begin with upgrades to pyroprocessing systems. Many older plants in India operate with four- or five-stage preheaters, while modern plants increasingly adopt six-stage preheater and pre-calciner systems that significantly improve heat efficiency and clinker output. These systems enhance heat transfer, reduce fuel consumption, and stabilise kiln operations under high throughput conditions.
Professor Procyon Mukherjee suggests, “Cement manufacturing is, at its core, a thermal process. The rotary kiln and calciner together account for energy consumption and emissions. The theoretical thermal requirement for clinker production is around 1700–1800 MJ per tonne, yet real-world plants often operate far above this benchmark due to inefficiencies in combustion, heat recovery and material flow. Modernisation, therefore, must begin with the
kiln system, and not peripheral automation or
isolated upgrades. The shift from wet to dry process kilns, combined with multi-stage preheaters and precalciners, has already delivered step-change improvements, making dry kilns nearly 50 per cent more energy efficient.”
Recent investment programmes across the industry have included kiln cooler upgrades, advanced burners, and improved refractory materials designed to increase operational reliability and reduce specific heat consumption. Such upgrades are essential because cement production remains highly energy intensive, and continuous efficiency improvements are required to meet global decarbonisation targets. According to the International Energy Agency (IEA) Cement Tracking Report, 2023, the cement sector must achieve annual emissions intensity reductions of around 4 per cent through 2030 to align with global net-zero scenarios.

Energy efficiency and WHRS
Energy efficiency remains one of the most important areas of modernisation in cement manufacturing, given the sector’s heavy reliance on thermal and electrical energy. Modern plants deploy advanced process controls, efficient grinding systems, and improved combustion technologies to reduce specific energy consumption. The adoption of energy-efficient technologies is particularly important in India, where energy costs account for a large share of production expenses. As demand grows and plants expand capacity, improving energy performance becomes essential to maintain competitiveness.
Waste Heat Recovery Systems (WHRS) have emerged as a key solution for improving plant energy efficiency. During cement production, large volumes of high-temperature gases are released from kilns and coolers. WHRS technology captures this waste heat and converts it into electricity, thereby reducing reliance on external power sources. According to energy benchmarking studies for the Indian cement industry, installed waste heat recovery capacity in the sector has reached approximately 840 MW, with an additional potential of around 500 MW states the Green Business Centre, Energy Benchmarking Report, 2023. Several leading producers have already implemented large WHRS installations; for example, UltraTech Cement has deployed systems with around 121 MW of waste heat recovery capacity, reducing carbon emissions by nearly 0.5 million tonnes annually according to the Energy Alternatives India Case Study, 2024.

Integration of AFR
The integration of Alternative Fuels and Raw Materials (AFR) is another critical dimension of cement plant modernisation. AFR refers to the use of industrial waste, biomass, refuse-derived fuel (RDF), and other non-fossil materials as substitutes for conventional fuels such as coal and petcoke. Increasing the use of AFR helps reduce fossil fuel consumption while simultaneously addressing waste management challenges. According to the NITI Aayog Decarbonisation Roadmap, 2026, scaling the use of RDF and other alternative fuels could enable the sector to achieve thermal substitution rates of around 20 per cent in the coming decades.
However, integrating AFR requires significant plant modifications and operational adjustments. Waste-derived fuels often have inconsistent calorific values, higher moisture content, and heterogeneous physical properties compared to traditional fuels. As a result, modern plants invest in advanced fuel preparation systems, dedicated feeding equipment, and automated dosing technologies to ensure stable kiln operation. These upgrades allow plants to maintain consistent clinker quality while increasing the share of alternative fuels in their energy mix.

Digitalisation and smart plant operations
Digitalisation is rapidly transforming cement plant operations by enabling data-driven decision-making and predictive maintenance. Industry 4.0 technologies such as IoT sensors, artificial intelligence (AI), and advanced analytics are now used to monitor equipment performance, optimise process parameters, and anticipate maintenance requirements. These digital tools enable plant operators to detect early signs of equipment failure, minimise unplanned downtime, and improve operational efficiency. Predictive maintenance systems, for example, analyse vibration, temperature, and acoustic signals from rotating equipment to identify potential faults
before they escalate into major breakdowns. Digital twins and integrated control systems further allow operators to simulate plant performance under different scenarios and optimise production strategies. Such technologies are becoming increasingly important as cement plants operate at larger scales and higher levels of process complexity.
Maheshwari also adds, “Plant modernisation is also increasingly central to the global competitiveness of Indian cement manufacturers. As cost pressures rise across energy, logistics and regulatory compliance, modern plants offer the structural efficiency required to operate reliably and competitively over the long term. Technologies such as AI-driven Advanced Process Control (APC) integrated with real-time data systems are emerging as essential investments for the future. These platforms use predictive algorithms, machine learning and live process inputs to optimise kiln, mill and utility operations with greater precision than traditional control systems. By continuously analysing variations in feed chemistry, temperature profiles, energy demand and equipment behaviour, APC enables stable operations, lower specific energy consumption, reduced emissions and improved product consistency. As regulatory expectations tighten and plants pursue higher efficiency with lower carbon intensity, AI-enabled APC will play a crucial role in strengthening automation, enhancing decision-making and ensuring long-term operational resilience.”

Modern material handling and logistics
Material handling systems play a critical role in ensuring smooth plant operations and efficient logistics. Modern cement plants rely on advanced conveying systems, automated stockyards, and digital dispatch platforms to manage the movement of raw materials, clinker, and finished cement. Long-distance belt conveyors and pipe conveyors are increasingly replacing truck-based transport between quarries and plants, reducing fuel consumption, dust emissions, and operational costs. Automated stacker-reclaimers ensure consistent blending of raw materials,
which improves kiln stability and clinker quality. Meanwhile, advanced packing and dispatch systems equipped with high-speed rotary packers and robotic palletisers enhance throughput and reduce manual labour. These technologies allow cement plants to optimise logistics efficiency while supporting higher production capacities.

Emission control and environmental compliance
Environmental compliance has become a central focus of cement plant modernisation as regulators and investors place greater emphasis on sustainability performance. Modern plants deploy advanced emission control technologies such as high-efficiency bag filters, electrostatic precipitators, and selective non-catalytic reduction systems to reduce particulate matter and nitrogen oxide emissions.
Sine Bogh Skaarup, Vice President, Head of Green Innovation and R&D, Fuller Technologies says, “One of our key focus areas is decarbonisation. We help cement producers reduce CO2 and overall carbon emissions. We offer alternative fuel solutions and calcined clay technologies to enable the production of LC3 cement, which play a significant role in decarbonising the cement industry. By combining alternative fuels and calcined clay solutions, CO2 emissions can be reduced by up to 50 per cent, making this a highly impactful approach for sustainable cement production.”
Continuous emission monitoring systems are increasingly used to track environmental performance in real time and ensure compliance with regulatory standards. In addition to air pollution control, cement companies are also investing in water recycling systems, renewable energy integration, and carbon reduction initiatives. These measures are essential for aligning the sector with national climate goals and improving the environmental footprint of
cement manufacturing.

Economic benefits and future outlook
Beyond environmental and operational advantages, cement plant modernisation also delivers significant economic benefits. Energy efficiency improvements, digital process optimisation, and advanced material handling systems reduce operating costs and improve asset utilisation. Waste heat recovery and alternative fuels help lower fuel expenditure and reduce exposure to volatile fossil fuel markets. As the industry expands capacity to meet growing demand, modernised plants are better positioned to achieve higher productivity and maintain profitability. The long-term outlook for the sector remains positive, with India expected to continue large-scale infrastructure investments in roads, housing, railways, and urban development.
Milan R Trivedi, Vice President – Projects, Prod & QC, MR, Shree Digvijay Cement, says, “The main focus in case of modernisation projects drives through the investment decision, which is mainly based on IRR and impact on overall efficiency improvement, cost optimisation and improvement in reliability. However, there are certain modernisation, which has high impact on environmental impact, statutory requirements, etc. has higher priority irrespective of ROI or payback period.”
“The energy efficiency and reliability investment projects generally provide fast return on investment whereas strategic, digitalisation and environmental investment projects provide long term and compounded benefits. Typical modernisation investment projects are decided with IRR of about > 20 per cent, payback period of typically 2-3 years for fast-track projects,” he adds.
In this context, modernisation will remain a key strategic priority for cement manufacturers seeking to maintain competitiveness in an increasingly sustainability-focused market.

Conclusion
The modernisation of cement plants is no longer a purely technical upgrade but a strategic transformation that reshapes how the industry operates. As India’s cement sector expands capacity toward the next growth cycle, improvements in energy efficiency, digitalisation, alternative fuels and advanced logistics will determine the competitiveness of individual plants. Modern technologies allow producers to operate at higher productivity levels while simultaneously reducing energy consumption and emissions intensity.
Looking ahead, the pace of technological adoption will play a decisive role in shaping the future of
the cement industry. Companies that successfully integrate modern equipment, digital systems, and sustainable production practices will be better positioned to meet rising infrastructure demand while aligning with global climate commitments. In this evolving landscape, plant modernisation stands as the cornerstone of both operational excellence and environmental responsibility.

Kanika Mathur

Concrete

Building a Sustainable Future

Published

2 hours ago

March 18, 2026

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Fuller Technologies (erstwhile FLSmidth Cement) presents a case study of Shree Cement’s Nawalgarh Plant.

Shree Cement achieved a new milestone and broke a world record in December 2023 when it started its new Nawalgarh plant in Rajasthan. The plant boasts both India’s largest OK® Mill and the world’s largest pyro line, which is rated at 11,500 tpd but achieving at more than 13 500 tpd. It put Shree Cement on track to exceed their target of 80 million tpa cement capacity in India by 2028. Shree Cement chose to partner with Fuller Technologies (then FLSmidth Cement) for the project, since the two groups share such similar values and Fuller offers a portfolio of solutions geared towards reducing the cement industry’s environmental impact.
Cement plays a vital role in India’s development, supporting the country’s ambitions for long-term economic growth. As urbanisation accelerates, infrastructure projects like Smart Cities, Bharat Mala, and metro rail developments are driving steady demand for cement. With per capita consumption increasing however historically lower than global averages, India’s evolving urban landscape and infrastructure needs are expected to significantly boost cement demand in the years ahead.
Shree Cement is well positioned to support India’s growth and is playing a pivotal role in the country’s expansive infrastructure development. The Nawalgarh plant will supply the wider region of north India with cement and clinker, feeding 3/4 grinding plants in the area.

The new Nawalgarh plant
With easy access to a rich supply of raw materials, Nawalgarh was an obvious choice for Shree Cement’s newest cement plant. With abundant reserves of limestone, the region also boasts strategic access to cement markets in northern India.
Though water scarcity is an issue in the region, the plant was committed to using modern, water-efficient technologies, ensuring minimal water consumption and waste. For example, the OK Mill™ can be operated without water, making it an optimal solution in regions where conserving water is particularly important.
Satish Maheshwari, Chief Manufacturing Officer, Shree Cement, says, “We have significantly invested in alternative fuels – including hazardous waste, municipal solid waste (RDF) and biomass – to reduce fossil fuel reliance. Our new state-of-the-art solid waste feeding system for MSW is operational at one site and is being replicated at others, enhancing alternative fuel use and improving thermal substitution in kilns.” The plant also follows Shree Cement’s principal of reducing clinker content in blended cements, which aims to reduce the carbon footprint of Shree Cement products.

The world’s biggest pyro line
The project kicked off with the issuance of the Letter of Intent (LOI) on 15th September 2021 for the Raw Mill. As per the LOI, equipment was expected to be delivered within 8-13 months from the contract’s effective date. The first lot of the raw mill arrived on-site in May 2022, with the major consignment – the Grinding Table – delivered in February 2023. Civil work for the Raw Mill and its building began in May 2022 and was completed by January 2023. Fabrication was wrapped up by June 2023 and erection commenced in January 2023, concluding by September 2023. The final commissioning was successfully completed on 14th December 2023, marking the operational start of the mill.

The world’s largest clinker cooler
The Cross-Bar® Cooler at Nawalgarh is the largest in the world, with a grate area of 325 m2 and a throughput guaranteed at 11 500 tpd, though it has been running at around 13 500 tpd since commissioning. Offering both high throughput and highly stable operation, the cooler also contributes to Shree Cement’s sustainability goals thanks to its hot air recirculation, which generates about 8 MW through the waste heat recovery system.
“With a Cross-Bar Cooler, the bigger you go, the greater your efficiency gains,” says Gowrishankar Ramachandran, Senior Product Specialist, Fuller Technologies. “We were not concerned about the size of the project – we knew we could achieve the performance guarantees with ease. Start-up was paced to get the full pyro system up and running smoothly, starting at 5000 tpd and quickly ramping up to full capacity and then beyond. The combination of features ensures smooth operation whatever’s going on in the kiln and preheater, meaning the cooler is unphased by the introduction of new alternative fuels or variations in throughput.”
Featuring patented ABC Inlet technology, which ensures no build-up in the cooler, Shree Cement also benefit from the cooler’s Heavy Duty Roller Breaker (HRB) and Mechanical Flow Regulators (MFRs) to improve reliability and uptime.
• The ABC™ Inlet uses a patented in-grate design that pushes compressed air up through the grates, blasting agglomerations. Pressure sensors detect when build-up is starting to occur and the automated blast control system reacts accordingly, increasing blast frequency to disperse the clinker and prevent further buildup.
• The HRB can handle clinker boulders up to 1.5 m without blockages. It features a series of transport and crushing rollers that allow right-sized materials to pass through and crush larger materials down to a pre-set size. Its low speed contributes to a long wear life of 3-5 years, while the rollout design enables easy maintenance.
• MFRs control airflow across the whole clinker bed – irrespective of clinker bed height, particle size, distribution or temperature. This optimises heat recuperation and air distribution, reducing both fuel costs and the number of cooling
fans required.
This cooler is a ventless system, with hot air being recirculated back into the cooler instead of bringing in ambient air. This improves the WHR temperature and boosts the power generated through the system. With waste heat recovery from the preheater in addition to the cooler, the total power generated is around 15-18 MW.
Though the operation has the potential for high dust pickup, the cooler casings were enlarged so that dust pickup is less than 4 m/s. This reduces dust to the tertiary air duct and helps reduce the environmental impact of the cooler operation, as well as the wear and safety issues that come with dust settling on equipment and on the local environment.
The cooler is part of the world’s largest pyro system, with a guaranteed capacity of 11 500 tpd (with an achieved production of 13 695 tpd),
that includes:
• Four string pre-heater:
o Cyclone stage I: 7784 mm, Top (HR+)
o Cyclone stage II: 7984 mm
o Cyclone stage III-VI: 8180 mm with Low Nox Calciner
• Dia 6.0m x 88m long & 3 support kiln with forged tyres
• JETFLEX® 2.0 kiln burner (type standard
and plus)
• 2 x 750 tph PFISTER® FRW Rotor Weighfeeder 5.22/13 for Kiln feed and 6 x PFISTER® Smart Linear Feeder
The Fuller® Low NOx Calciner prevents the build-up of raw meal on the calciner walls and maintains a hot core for excellent combustion and NOx reduction. With a design based on extensive research, field tests and CFD modelling, the Low NOx calciner is capable of burning almost any fuel type, giving Shree Cement full flexibility to switch between coal, petcoke and alternative fuels. The calciner has the added advantage of reducing NOx while also minimising the need for ammonia injection, creating a cleaner, greener, more cost-effective process.
The JETFLEX burner was chosen for its high degree of fuel flexibility, further aiding Shree’s green ambitions. The burner can burn a mix of coal, petcoke, oil, natural gas and alternative fuels while maintaining an optimal flame shape. The flame formation is controlled by separate systems for axial and swirl air, ensuring fast ignition and stable flame formation with a shorter and more intense flame. That reduces volatility in the kiln and gives the Nawalgarh plant greater efficiency throughout the pyroprocess.

India’s biggest OK Mill
The OK Mill 66.6 selected as the raw mill for this plant is the largest OK raw mill in the country with a guaranteed capacity of 1070 tph, though it has been running at 1080 tph since commissioning. The OK Mill was selected for its proven history of efficiency, low water usage and ease of maintenance. The rollers can be swung out for repair or hard-facing so that operation can continue with the remaining rollers, enabling continuous productivity. The OK-R-66-6 VRM for this plant includes a RARM-1300 separator, known for the simplicity of its design, which reduces wear and maintenance, lowers differential pressure and reduces mill fan power (and thus operational costs) while still providing efficient separation.
This is not the only OK Mill at the Nawalgarh plant. An OK 66-6 finish mill with ROKSH-1100 classifier is employed for cement grinding at 360 tph. In addition, the plant has an ATOX® 32.5 coal mill with RAKM-32.5 classifier for coal grinding, guaranteed at 46 tph but running at 56 tph.

Energy efficiency and saving
“Energy conservation remains a top priority for us, driving innovations from shop-floor experiments to major capital investments,” explains Maheshwari. “These efforts have reduced carbon emissions and production costs. Over 55 per cent of our energy needs across the company are met through green energy sources, including solar and wind power alongside our Waste Heat Recovery Systems. Combined, these systems produce in excess of 520 MW. We consistently exceed PAT Cycle targets and have been honoured as ‘Best Performer’ for the highest number of energy-saving certificates in both PAT Cycle I and II by the Bureau of Energy Efficiency.”

A digital native
Shree Cement is an advocate of the benefits and necessity of digitalisation to improve cement plant performance and efficiency. A few years ago, the company rolled out ECS/PlantDataManagement across 16 plants and 24 lines in a huge digital upgrade to drive efficiency and increase productivity. The new Nawalgarh plant won’t require a digital transformation, however, because it has been built as a digital native.
It is equipped with ECS/PlantDataManagement, which delivers all plant and process data in accessible and practical forms to plant managers and operators, maintenance teams, analysts, and decision-makers, giving them the insights necessary to optimise production lines, minimise equipment downtime, improve productivity and reduce environmental impact. ECS/PlantDataManagement includes important tools like UptimeGo, the downtime analysis solution, and SiteConnect, the mobile app that allows plant operators and managers to view real-time plant data anytime, anywhere from a mobile device.
The plant is also utilising advanced automation solutions across the plant, including in the laboratory where Fuller is enabling clinker substitution while ensuring optimal cement quality. QCX/RoboLab® is a high-tech robotics solution for automated sample preparation, analysis, and automated quality assurance (QA) and quality control (QC) procedures. This advanced automation system ensures fast, accurate, and safe analysis with as few operators as possible. It receives and co-ordinates samples from the QCX®/AutoSampling system and can take on challenging laboratory tasks to ensure optimal quality control in the face of variations in alternative fuels and changes to the cement mix. Again, this was a choice Shree Cement made to ensure the plant has the flexibility to deliver lower carbon cements without compromising on final product quality.

Conclusion
In December 2024, Shree Cement celebrated the first anniversary of the Nawalgarh plant. The plant’s rapid rise as a leading player in cement production aligns with the global position of this impressive company, whose strategic initiatives in alternative fuels, emissions reduction and water management have earned industry-wide recognition, including the acclaimed position of ‘industry mover’ in the construction materials category of the S&P Global Sustainability Yearbook 2025.
Shree Cement’s focus on blended cement production successfully lowered natural resource consumption and CO2 emissions by 7.2 million tonnes in FY23-24, with 73.52 per cent of total production comprising blended cement with an average clinker-to-cement ratio of 64.66 per cent.
“Partnering with a solutions provider like Fuller enables us to turn our sustainability ambitions into reality,” says Maheshwari. “Together we are shaping the future of our industry and our region, and we are very proud of the contributions we are making towards a more sustainable cement industry and greater economic prosperity.”