Economy & Market
Challenging Days Ahead
Published
15 years agoon
By
admin
Bad news never comes singly. India’s economic growth has slumped to its lowest in more than two years while output expansion at key industries tumbled to a six-year low and even the finance minister, Pranab Mukherjee, has warned that there are tough times ahead. There has been a sharp deceleration in industrial growth with output growth in eight core industries, including steel, cement and coal, dropping to near-zero in October, a sharp decline from 7.2 per cent one year back. Under the circumstances, the cement sector needs to remain vigilant and while bracing itself for weaker growth, seek out newer strategies to ensure that targeted capacity and production stays on line while staying in line with environmental demands and limitations in raw material availability.It is worrying indeed that fiscal deficit for the first seven months of the year has already reached 75 per cent of the year’s estimate. Experts concur with the finance minister that a combination of domestic and international issues are going to impact the country’s growth. GDP data released by the government on in the last week of November 2011 has revealed broad-based weakness in the economy, with mining contracting 2.9 per cent and manufacturing rising by 2.7 per cent in the last quarter. Despite the gloomy outlook, the finance ministry is hopeful that the economy will recover some of its lost momentum and is expecting 7.3 per cent GDP as against last year’s 8.5 per cent.According to Research & Markets report on the Indian cement sector, economic recovery, which had gained momentum in the first half of FY11, started showing signs of moderation in the second half. The biggest hindrance to growth momentum, however, has been high inflation. Inflation refuses to abate and has forced RBI to pursue monetary tightening measures even at the cost of growth. Rising energy prices and interest rates will continue to pose a challenge for businesses in the near future. Despite these short term challenges, the overall economic sentiment remains healthy and a good growth rate for the next year is expected.FY11 was quite challenging for the cement industry. On the one hand, demand growth weakened due to lower realty and infrastructure spending, while on the other, extended monsoons and logistical constraints dampened construction activity.On the supply front, overcapacity continued to plague the industry. During the year, the industry witnessed capacity addition of around 28 million TPA in addition to the 60 million TPA added in the previous year. Industry capacity utilization was at 75 per cent against 84 per cent recorded in the previous year. Surplus cement scenario together with sluggish demand and volatile prices adversely impacted domestic realizations which were lower by 4 per cent as compared to the previous year. On the cost front, the higher price of both domestic and imported coal resulted in a 25 per cent increase in energy costs, which rose substantially from 671 per ton to 838 per ton. During the year, imported coal prices rose by 36 per cent from CIF $ 89 per ton to $ 121 per ton. In addition to the normal price hike in domestic coal, there was a further increase in domestic coal prices in the range of 30 per cent -150 per cent from 1st March, 2011, according to the report.While the larger economic issues play out a crucial role on the industry’s performance, it is left to the sector to analyse the various other shortcomings it faces and seek remedies for the same.PRESENT STATUS
- Capacity and Production:
The installed capacity of cement in the country has grown during the period 1991 to 2011 at an average rate of 8.3 per cent CAGR while the production has grown at the rate of 8 per cent during the same period. The table -1 gives the installed capacity and production of cement between 1991-2011.
- Thermal Energy:
The weighted average of thermal energy consumption of major 26 plants is shown in figure – 1. It would be seen that very little improvement is made over the years between 2005-2006 to 2007-2008. The world’s best ranges between 680-690 Kcal/kg clinker. Though there are some cement plants in India which are able to fall in this category but industry as a whole has challenge before it to further improve on this account.
- Electric Energy Efficiency:
The weighted average of consumption of electric energy of 26 plants is given in figure – 2. The electric consumption has virtually reached at plateau and showing very little further improvement. The best operated plants have brought down the consumption in the range of 65-68 kwh/t cement, however, industry as a whole has scope for further improvement. Environmental Performance of Cement Plants:The National Ambient Air Quality Requirement as per CPCB is given in table – 2.The modern cement plants are able to adhere to these norms. The new generation plants with capacity 8000TPD and above are even excelling the norms.
- Product Mix:
The Indian cement industry has undergone major shift in product mix especially during the last decade. The environmental and sustainability issues may demand same trend to continue in the future. The table -3 gives product mix during the different periods;CHALLENGES AHEAD
- Lime Stone:
Lime stone will continue to be the life line of cement manufacture. As per thumb rule, for every ton of clinker produced, 1.75 tonnes mineable line stone deposits of proven variety should be available. For 350 million tons installed targeted capacity by the end of XI plan (2012), nearly 600 mn.t of cement grade lime stone have to be made available annually. Keeping in view the rapid expansion of Indian Cement Industry, NCB initiated the task of preparation of national inventory of cement grade lime stone. As on 31st March, 2002, India’s total reserves have been estimated as given in table – 4.Table – 4 Lime Stone ReservesSizable reserves are located in inaccessible areas, difficult terrains reserved forests, bio-zones and coastal regulatory Zones, etc. The proven category reserves are only 22,476mn.t which are likely to last for next 35 to 40 years at the present rate of production.Apart from limited availability of measured reserve for green field projects, about 27 per cent of total reserves are of marginal grade which can only be utilized with sweetener or after up-gradation through beneficiation. Availability of cement grade limestone will be becoming a major challenge for the cement industry in the future.
- Coal :
Availability of coal is proving another bottleneck in the growth of cement industry. The coal demand of cement industry is given in table -5.During the last decade the coal demand has gone almost four times. The infrastructure deficiencies at ports are causing problems in importing coal and availability of indigenous coal to cement industry is not assured. The first preference is being given to Thermal Power Plants and then to steel industry in allocation of coal by the Govt. The cost of coal is escalating every year and posing challenge before the cement industry. The situation is likely to aggravate in future.BLENDING MATERIALS
- Fly Ash:
Large quality of fly ash is generated in India but in many cases, the location of major Thermal Power Plants is far away from cement plants and in absence of proper infrastructure for transportation and handing of fly ash, most of it cannot be utilized. The availability of fly ash is given in table – 6The cost of fly ash is continuously increasing due to transportation and permission given to thermal power plants to charge for it instead of giving free. The mega thermal plants located in East UP, West Bengal, North Bihar and generally in Eastern part of India have very few cement plants in close vicinity. The mismatch in location of Thermal Power Plants and cement plants is shown in Figure – 3The availability of good quality fly ash at reasonable cost is also going to be major factor before the cement industry in coming years.
- GGBS
Ground Granulated Blastfurnace Slag (GGBS) cement is a by-product of the steel industry. Molten slag lying on top of the molten iron in the blastfurnace comprises silicates (glass), and is the raw material for GGBS cement. The molten slag – of no use to the steel making process – is cooled and then finely ground to form GGBS cement. Currently around 200 kg of slag is generated for each ton of steel produced in India making it 11 to 12 mt slag annually. Most of the slag is produced in the eastern part of the country where it is used in production of slag cement. The availability of blast furnace slag will continue to remain limited and possibilities need to be explored to use slags other than blast furnace like zinc slag, copper slag, steel slag for manufacture of slag cement. At present these slags are not permitted by BIS for production of slag cement.HIGH INPUT COSTS AND INFRASTRUCTURAL WEAKNESS
At present, the cement industry is facing two fold problems of high input costs and infrastructural weakness. The inputs with spiraling cost increase are coal, power and transport by rail or road. The coal from public sector is of poor quality, high ash and low calorific value content and at times costlier than imported coal. There is need to introduce competition for improving quality, regularity in supply and reduced prices. The power from public utilities is of poor quality due to frequent power cuts and fluctuating voltage. Power sector reforms if taken up seriously will enable quality power to cement plants at reasonable cost.Transport by rail or road is a cost-intensive component and amounts to almost 15 per cent to 20 per cent of the delivered cost to the consumers. The railway tariff is high and need to be rationalized for an essential product like cement. Road transport on the other hand, provides limited alternative because of inadequacy of road network and rising cost of road transport due to continuously rising fuel cost. Inland water transport is a low investment, eco-friendly and cheap mode especially for bulk commodities like cement. Coastal shipping and inland waterways will help in bringing down the transportation cost. Due to increasing use of cement in bilk, more and more bulk terminals will be needed in the years to come and inland water transport and coastal shipping can be of great help in this regard.TO INCREASE USE OF CEMENTCement is not the end-use product for the consumer. Concrete and mortar are the real end-products. Use of concrete at present is very low, about 0.5t per head annually against World’s average of 1.0t. Use of concrete and cement based products need to be promoted especially in the following sectors to increase the demand of cement.
- Concrete roads
- White topping over existing bitumen roads
- Cement based bricks/blocks for walling in lieu of clay bricks
- Pre-fab components for mass housing in lieu of conventional systems for roofing, flooring, walling etc.
- Cement concrete lining to canals to reduce seepage losses.
- Development of inland water ways and linking of rivers.
The average consumption of cement per head is very low in India, in the range of 180-190 kg while world average is about 400kg and in developed countries it is 600-800kg. Cement-concrete is more durable than other conventional materials and the use of concrete in construction will bring down the life cycle of civil works and will be more eco-friendly and sustainable.ENVIRONMENTAL CONSCIOUSNESS AND CUSTOMER ORIENTATION
The main global concerns at present are conservation of energy and pollution control. In future pressure will mount on the industry to reduce energy and GHG emissions. The energy consumption of many of the cement plants in India is comparable with the "best practices". However, there is still a scope to bring down the energy consumption by improving operational efficiency and plant technology. Though many plants have won environmental excellence awards but industry as a whole can still achieve better results on this front.The future initiatives have to be directed for using hazardous or waste materials (pet coke, used tyres, municipal and agricultural waste etc.) as fuel and larger use of fly ash, ggbs and other industrial waster like Zinc-lead slag, copper slag, steel slag etc. Both these ventures would contribute to environmental improvement and legislative and statutory authorities should support these initiatives.The customers have to be educated in proper use of cement and to avoid wastages at site. The inhibition to use mineral admixtures like fly ash, ggbs and blended cements should be removed through proper training and demonstrations at construction sites. The new code on concrete mix proportioning IS 10262 has been issued by BIS in 2009, rationalizing the use of binding materials and to avoid excessive use of cementing materials in concrete. The good construction practices should be encouraged by upgrading the skills of construction professionals for increasing the life of construction and to avoid the wasteful consumption of materials in repairs and rehabilitation. The mechanization in construction is another area which would need focus in future. The promotion of RMC during the last decade has brought numerous benefits in making concrete more reliable, durable and cost effective material. Similarly the pre-cast industry, which is in very nascent stage has potential to provide speed, quality and sustainability to construction projects. Promotion of these technologies and practices would provide additional impetus to the growth of cement industry in the coming decade.TOUGH TIMES CALL FOR TOUGH MEASURESThe industry has to overcome new challenges to be vibrant and healthy in future. The major hurdles are likely to be availability of quality raw materials at reasonable cost, energy sources, compatible infrastructure for movement of raw materials and finished goods, skilled man power and commensurate financial resources for continued technological up-gradations and innovations to meet the future aspirations of the construction industry and the society at large. These challenges can be met by combined efforts of industry friendly legislative frame work, boost of infrastructure by government, adoption of technologies to increase demand for cement and the cement industry by continuously striving for technological excellence and innovations in all fields of its operation. The Indian cement industry will emerge stronger, more efficient, sustainable and vibrant in future by virtue of its dedication and an intense urge to serve the construction industry in best possible manner.A.K. Jain is Technical Advisor, Ultratech Cement Ltd
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Indian Cement Review (ICR) and Fuller Technologies brought industry, policy and technology leaders together to discuss how cement innovation can drive green construction at scale, writes Rakesh Rao.
India is building at a pace few countries can match. Highways, airports, housing, logistics parks, industrial corridors and urban infrastructure are reshaping the country’s economic geography. But beneath this growth story lies a difficult question: can India continue to build at scale without locking itself into a high-carbon future?
That question formed the core of an online panel discussion titled “Driving Green Construction Through Cement Innovation”, organised by Indian Cement Review (ICR) in association with Fuller Technologies as the Presenting Partner on June 25, 2026. The webinar brought together experts from cement technology, R&D, global industry platforms, building performance policy and international development cooperation to examine how low-carbon cement and material innovation can accelerate India’s green construction transition.
The discussion came at a crucial time. India has committed to achieving net-zero emissions by 2070 and reducing the carbon intensity of its economy by 45 per cent by 2030. At the same time, the country’s construction sector is expanding rapidly, driven by urbanisation, infrastructure development, housing demand and industrial growth. Cement, as one of the most widely used construction materials, sits at the heart of this transition. It is indispensable to development, but also central to the challenge of reducing embodied carbon in buildings and infrastructure.
Moderated by Nitika Krishan, Senior Urban Infrastructure and Sustainable Policy Consultant, the panel featured:
- Kiranmai Sanagavarapu, Director, Low Carbon Solutions, Fuller Technologies;
- Dr Hemantkumar Aiyer, VP and Head R&D, Nuvoco Vistas Corp Ltd;
- Devika Wattal, Innovation Lead, Global Cement and Concrete Association (GCCA);
- Dr Sunita Purushottam, MD, GBPN India (Global Buildings Performance Network); and
- Vaibhav Rathi, Senior Technical Advisor, GIZ (the German Agency for International Cooperation)
Setting the tone for the discussion, Nitika Krishan underlined the scale of the challenge before the sector. “The question before us is no longer whether we build, but how we build sustainably,” she said. She pointed out that construction accounts for nearly 40 per cent of global energy-related carbon emissions when both operational and embodied carbon are considered. Cement production, she added, remains one of the hardest industrial processes to decarbonise.
For India, this is not merely an environmental issue. It is a development issue, a competitiveness issue and increasingly, a market issue. As one of the world’s largest cement producers and among the fastest-growing construction markets, India’s material choices will influence the carbon trajectory of its built environment for decades. As Krishan observed, sustainability solutions in economies such as India must not remain limited to laboratory success. They must be scalable, commercially viable and practical at national level.
The innovation gap: From technology to market
Experts believe that there is a need to bridge the innovation gaps for making decarbonisation in cement and concrete scalable. Devika Wattal of GCCA, explained, “The starting point must be the core cement manufacturing process itself. The first and foremost is the heart of our process, the heart of cement manufacturing. How do we reduce clinker? That is always a topic where industry is working very intrinsically.”
Clinker reduction remains one of the most important pathways for lowering emissions in cement. Since clinker production is energy-intensive and chemically emits carbon dioxide, reducing the clinker factor through supplementary cementitious materials (SCMs), blended cements and new chemistries can have a significant impact. Wattal also noted that carbon capture, utilisation and storage (CCUS) will have a role, though it may not be the first lever for all markets.
However, she stressed that innovation cannot stop at technology development. A solution that works in the lab must also be adaptable to industry, scalable in production and acceptable in construction practice. “It is important for that innovation to be adaptable, to be scalable, and so that it can be executed in real time,” she said.
Wattal also called for stronger enabling systems around innovation. These include performance-based standards, product-level embodied carbon databases and clearer frameworks for evaluating green materials. Without these, low-carbon cement products may struggle to compete with conventional materials in procurement and design.
R&D must balance carbon, cost and performance
Bringing in the R&D perspective into the discussion, Dr Hemantkumar Aiyer of Nuvoco Vistas emphasised that low-carbon cement development cannot be treated as a single-variable exercise. Cement must perform in real construction conditions. It must deliver strength, durability, consistency and cost competitiveness, while also reducing carbon.
“The root of understanding and balancing all these aspects lies in materials, and knowing the materials,” he said.
According to Dr Aiyer, R&D teams must understand the variability of raw materials such as fly ash, slag and clinker. Different sources produce different material behaviours. This makes mix optimisation, material characterisation and processing-property relationships critical. When performance is affected, cement manufacturers must understand how strength enhancers, admixtures and other performance chemicals interact with the material system.
He also linked material science with process efficiency. Clinkerisation takes place at extremely high temperatures, around 1,400 to 1,450 degrees Celsius. Any improvement in raw mix design, process control or energy optimisation can, therefore, help reduce emissions and cost. Dr Aiyer pointed to artificial intelligence-based optimisation, Cement 4.0 tools and advanced software as important enablers for real-time process and material control.
“The more you understand the materials, the more you can control it,” he said.
LC3: The promise is proven, the sequencing is not
Limestone calcined clay cement, commonly referred to as LC3, has attracted global attention because it can reduce clinker content significantly by using calcined clay and limestone while maintaining performance in many applications. Kiranmai Sanagavarapu of Fuller Technologies said the technology itself has already moved beyond proof of concept. Fuller Technologies has worked with calcined clay technology for nearly two decades and has seen plants running in France and Ghana. These plants, she said, are meeting local and national specifications, while the economics are beginning to make sense.
“The calciner is performing, the economics is stacking up, it is making business sense to produce,” she said.
But if the technology is viable, why has adoption not scaled faster? For Sanagavarapu, the answer lies in project sequencing. Too often, clay characterisation happens after equipment is specified. This, she warned, is a backward approach because calciner design depends on clay mineralogy, kaolinite content, iron levels, reactivity, moisture and other variables.
“If you don’t know what your deposit looks like before you commit for the equipment, you are, in a way, going blind into designing,” she said.
She also identified permitting and plant integration as major bottlenecks. Environmental clearances, mining permissions and local regulatory approvals must begin early. Similarly, calcined clay must be integrated into existing grinding, blending and logistics systems from the design stage, not treated as an afterthought during commissioning.
India already has IS 18189:2023 standard for LC3, but Sanagavarapu pointed out that the standard is not yet visible enough in procurement documents. “The gap between what is technically being permitted and what the procurement is asking is the single biggest bottleneck,” she said.
In her view, successful scale-up depends on getting the sequence right: clay characterisation first, permitting in parallel, standards aligned with construction, and integration built into plant design.
India’s LC3 journey: Progress, but demand remains thin
Providing details of India’s LC3 commercialisation experience, Vaibhav Rathi of GIZ noted that JK Cement carried out the first commercial production of LC3 at its Rajasthan plant, followed by JK Lakshmi Cement three months later. These initiatives were supported by the International Climate Initiative of the Government of Germany, with IIT Delhi contributing deep institutional knowledge on LC3 research and BIS certification.
Rathi said India’s early experience has produced clear lessons. One of the biggest was the need to build capacity among regulators. While BIS certification existed, State Pollution Control Boards were unfamiliar with the technology and unsure about the approval pathway.
“The capacity building is not just needed amongst the producer and the users of the cement, but also the regulators who are working with this technology for the first time,” he said.
He also highlighted the need for better information on China clay deposits. Since China clay is currently classified as a minor mineral, centralised data on availability, quality and location is limited. If cement manufacturers are to adopt LC3 at scale, stronger mineral intelligence will be important.
The third issue is demand. LC3 has already been used in projects such as Palava City in Mumbai and Noida International Airport, but these remain limited examples. “It is in a chicken and egg situation,” Rathi said. “Cement companies are saying we need more demand, and users are saying there is not enough cement available.”
Public procurement, he suggested, could help break this cycle. If agencies such as CPWD and other public bodies begin testing, accepting and specifying LC3, it could create the market confidence needed for cement companies to invest in production and storage.
Building codes must catch up with innovation
Dr Sunita Purushottam of GBPN India argued that material choices will determine built environment emissions over the long term, but India’s current policy signals remain fragmented. Although LC3 has received BIS recognition, she pointed out that building codes, municipal bylaws, schedules of rates and sustainability codes do not yet provide uniform guidance on low-carbon cement.
“The current cement regulations are largely prescriptive and favouring traditional materials,” she said. This limits the ability of alternative materials to compete on performance, durability and emissions.
Dr Purushottam also raised the issue of taxation. Cement, including LC3, currently falls under the same GST bracket as conventional cement. A differentiated tax structure, she argued, could help accelerate market adoption. “In order for the market to demand LC3, that differentiation in the GST could go a long way,” she said.
She noted that green building certifications such as IGBC and GRIHA are already creating demand for low-carbon materials by assigning points for embodied carbon and sustainable material use. However, she said large-scale adoption will require regulatory mandates, particularly through building codes and state-level notifications.
She also cautioned that low-carbon cement alone does not solve the entire building performance problem. A material may reduce embodied carbon, but the operational carbon of a building depends on thermal performance, design, insulation and energy use. “The energy part has two elements,” she said. “One is the embodied carbon of the material itself, and the other is the operational carbon.”
Collaboration is the bridge between invention and impact
Wattal said GCCA sees innovation as a strategic priority and works through platforms that connect industry with academia and start-ups. “There is no way we will decarbonise our sector without innovation,” she said.
However, she stressed that research must be connected to actual industry challenges. Innovations developed in isolation may fail when they encounter real-world barriers such as raw material variability, plant integration, cost, standards and finance. Start-ups, too, need industry mentorship and scale-up pathways.
Wattal also flagged the importance of finance. Even strong technologies may struggle to attract investment if there is no common understanding of bankability. “We have always put projects into, is this a bankable project? But the definition of a bankable project has never been defined,” she said.
For India, she saw strong potential in its academic and start-up ecosystem, but said the challenge lies in alignment and prioritisation. The country has the research base, industrial capacity and market size. What it now needs is a coordinated route from innovation to deployment.
There is a practical concern for cement manufacturers: how can existing plants be adapted for lower emissions without compromising reliability or commercial viability?
Kiranmai Sanagavarapu addressed, “The reliability risk in calcined clay retrofit is definitely real, but it is almost always self-inflicted. The risk arises when a new process is added to an existing circuit without properly redesigning grinding and blending configurations.”
Existing cement plants, she explained, can take two broad routes. The first is external sourcing of calcined clay combined with mill optimisation. This requires lower capital investment and can potentially move in 12 to 18 months if other conditions are in place. It may reduce emissions by around 20 to 30 per cent. The second route is integrated calcination on site, which requires higher capital expenditure and longer lead times, but provides greater control over quality, supply and emissions reduction potential.
For Sanagavarapu, the principle is simple: low-carbon retrofits must be designed with intent. “Design it with an intent properly from the start. Start in the market conditions where the economics are already working,” she said.
Circularity: The overlooked advantage
According to Vaibhav Rathi, fly ash and slag are already well established in cement and construction (C&D), but construction and demolition waste remains underutilised. “C&D waste is a growing business opportunity which not many have taken up,” he said. India’s continuous construction and demolition activity creates huge volumes of waste, much of which contributes to air pollution, land degradation and material inefficiency. With the right processing and standards, this waste can be converted into useful construction products.
Rathi also pointed out that LC3 has a circular economy dimension that is often overlooked. It can use low-grade kaolin-rich clay left behind after high-grade clay is extracted for other applications. “LC3 is not only a low-carbon solution, but also a circular economy solution,” he said.
At the same time, he cautioned that LC3 in India is not yet cheap because it has not reached scale. Site-specific techno-commercial feasibility studies, supported jointly by development agencies and industry, could help companies assess whether LC3 production makes technical and financial sense at a given location.
Dr Purushottam added that India must address both low-carbon cement and construction waste together. “Both low-carbon cement and C&D waste go hand in hand. India does not have an option but to work on both,” she said.
Dr Aiyer called for policy shifts from both government and industry, including preferential purchasing of sustainable materials, minimum supplementary cementitious material requirements in public and public-private projects, and faster regulatory implementation. “If we can fast-track the regulatory standards and their implementation on the ground, that is the way to go,” he said.
From green ambition to green construction
Cement innovation is no longer only about chemistry. It is about systems. Low-carbon cement will scale only when technology, standards, procurement, finance, regulation, education and construction practice move together.
LC3 and other low-carbon technologies have shown promise. India has early commercial examples, strong research capability and growing market interest. But mainstream adoption will depend on whether demand can be created, regulators can be capacitated, standards can be embedded in procurement, and manufacturers can see a clear business case.
For a country building at India’s scale, the opportunity is enormous. Cement will continue to be central to infrastructure and urban development. The challenge now is to ensure that the cement used in India’s growth story carries a lower carbon burden.
- Rakesh Rao
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Concrete
Indian Railways Plans Green Fly Ash Transport Network
Published
7 days agoon
June 27, 2026By
admin
Specialised rail logistics will move fly ash from power plants to infrastructure industries.
New Delhi
Indian Railways is planning a large-scale green logistics initiative to transport fly ash from thermal power plants to industries where it can be reused in infrastructure and construction activities.
The initiative was discussed during a review meeting chaired by Union Minister for Railways Ashwini Vaishnaw. Union Ministers of State for Railways V Somanna and Ravneet Singh Bittu were also present.
India generates nearly 340 million tonnes of fly ash every year from thermal power plants. The proposed initiative aims to create an efficient rail-based transport system using specialised containers and dedicated logistics arrangements to move fly ash safely from power plants to end-use industries.

Fly ash is widely used in road construction, cement manufacturing, brick production, concrete, blocks and boards. By improving its movement through the railway network, the initiative is expected to support better utilisation of this industrial by-product while reducing environmental concerns linked to storage and disposal.
The move also aligns with India’s circular economy goals by converting waste from thermal power generation into a useful raw material for the construction and infrastructure sectors. Wider availability of fly ash can help reduce material costs in areas such as bricks and cement, supporting more affordable infrastructure and housing development.
Through this initiative, Indian Railways aims to provide a cleaner, safer and more organised transport solution for fly ash, turning an environmental challenge into an infrastructure resource.
Gears, drives, and motors have evolved from essential mechanical components into strategic enablers of reliability, efficiency, and sustainability in modern cement plants. ICR explores how advanced motion technologies, predictive maintenance, digitalisation, and intelligent drive systems are helping cement manufacturers reduce downtime, optimise energy use, and build future-ready operations.
As the Indian cement industry prepares for another phase of capacity expansion, the focus is shifting from merely increasing production volumes to improving operational efficiency, reliability, and sustainability. According to industry estimates, India is expected to add nearly 160–170 million tonnes of cement capacity between FY26 and FY28, driven by infrastructure investments, urbanisation, and housing demand. In this environment, gears, drives, and motors have emerged as critical enablers of productivity, forming the backbone of every major process from raw material extraction and grinding to clinker production and cement dispatch.
Motors alone account for nearly 60 per cent to 70 per cent of industrial electricity consumption globally, according to the International Energy Agency (IEA), while rotating equipment failures remain among the leading causes of unplanned downtime across heavy industries. In cement plants, where equipment operates under high loads, extreme dust conditions, elevated temperatures, and continuous-duty cycles, the performance of gears, drives, and motors directly influences energy consumption, maintenance costs, plant availability, and overall profitability. As digitalisation and Industry
4.0 technologies gain momentum, these systems are evolving from passive mechanical components into intelligent assets capable of delivering real-time operational insights.
Why gears, drives, and motors are the backbone of cement plant operations
Every major process in a cement plant depends on the seamless operation of gears, drives, and motors. Raw mills, vertical roller mills, crushers, kiln drives, conveyor systems, fans, and clinker coolers all rely on rotating equipment to maintain continuous production. A failure in any one of these systems can disrupt entire process chains, highlighting their strategic importance.
Modern cement plants process thousands of tonnes of material daily, requiring equipment capable of transmitting enormous torque while maintaining precision and reliability. Kiln drives and grinding systems, in particular, operate under some of the highest mechanical loads found in industrial manufacturing. The ability of gears and motors to withstand these conditions directly impacts plant throughput and production stability.
Satish Maheshwari, Chief Manufacturing Officer, Shree Cement says, “Effective lubrication management remains one of the most critical factors in extending the lifespan of cement plant drive systems. Proper lubrication, supported by regular oil analysis, vibration diagnostics, and condition monitoring, helps minimise wear, prevent unexpected failures, and maintain the integrity of critical components such as gearboxes, motors, and drive assemblies. By identifying potential issues at an early stage, plants can move from reactive maintenance to a more proactive and reliability-focused approach.”
“Smart motors, intelligent drives, and next-generation gearboxes are set to redefine cement plant maintenance and performance. Equipped with embedded sensors, IoT connectivity, digital twins, and AI-driven diagnostics, these technologies enable real-time condition monitoring, predictive maintenance, and seamless digital integration. As the industry embraces Industry 4.0, smart drive systems will play a pivotal role in improving energy efficiency, reducing downtime, and optimising asset performance across the cement manufacturing value chain” he adds.
Industry studies suggest that rotating equipment accounts for a significant proportion of maintenance expenditure in process industries. Effective design, selection, and maintenance of gears, drives, and motors therefore have a direct influence on asset utilisation, operational efficiency, and total cost of ownership.
The cost of downtime: reliability challenges in rotating equipment
Unplanned downtime remains one of the most expensive challenges facing cement manufacturers. Industry estimates indicate that a major failure involving a critical gearbox, kiln drive, or grinding mill can result in production losses running into lakhs of rupees per hour, depending on plant capacity and operating conditions.
Sanjeev Arora, President – Motion Business & IEC LV Motors Division, ABB India says, “One of the most significant shifts taking place in industrial decision-making today is moving away from evaluating equipment based solely on upfront capital cost toward understanding total cost of ownership (TCO). In a typical motor system, the purchase price often represents only a small fraction of the total lifecycle cost however energy consumption, maintenance requirements, downtime and operating efficiency account for the vast majority of long-term operational expenses. For cement manufacturers operating in highly competitive markets, this distinction is critical.”
“A high efficiency motor paired with an appropriately configured variable speed drive may require a higher initial investment, but the long-term benefits are substantial. Reduced electricity consumption, lower maintenance needs, longer service intervals and improved process stability can deliver faster payback and stronger profitability over time” he adds.
Cement plants present a particularly challenging environment for rotating equipment. Dust ingress, thermal fluctuations, shock loads, vibration, shaft misalignment, and lubrication contamination contribute significantly to equipment degradation. Studies by SKF indicate that nearly 50 per cent of bearing failures are linked to lubrication issues and contamination, while improper alignment and vibration-related problems remain leading causes of gearbox and motor failures.
Energy-efficient motors and drives: unlocking operational savings
Energy is one of the largest operating expenses for cement manufacturers, often accounting for 25 per cent to 35 per cent of total production costs. Grinding operations alone can consume nearly 60 per cent to 70 per cent of a plant’s electrical energy, making energy-efficient motors and drives a strategic investment.
According to the International Energy Agency, high-efficiency motors combined with Variable Frequency Drives (VFDs) can reduce energy consumption by 20 per cent to 30 per cent in suitable applications. By matching motor speed and torque to actual process requirements, VFDs minimise unnecessary power consumption while reducing mechanical stress on equipment, improving both efficiency and reliability.
Advances in gearbox design and power transmission technologies
Modern gearbox technology has evolved significantly in response to the increasing demands of cement manufacturing. Advanced materials, case-hardened gears, optimised tooth profiles, improved surface finishing, and enhanced lubrication systems are helping reduce friction, wear, and thermal loading.
Girish Hanchate, Director – Industrial Market, India SKF India (Industrial) says, “Smart diagnostics are significantly improving the lifecycle of gears, motors, and other rotating equipment by enabling a shift from reactive maintenance to condition-based asset management. Hidden issues such as vibration anomalies, bearing defects, misalignment, and temperature fluctuations can quietly reduce plant throughput by 10 per cent to 20 per cent while increasing energy consumption long before a breakdown occurs. By leveraging advanced sensors, predictive analytics, machine learning, and real-time monitoring of vibration, temperature, and motor current, cement manufacturers can detect developing faults early, optimise maintenance schedules, and prevent costly secondary damage. This not only improves reliability but also supports energy efficiency and sustainability objectives.”
“The next major evolution in drive and bearing technology lies in the development of fully integrated smart mechanical ecosystems that combine high-performance bearings, advanced lubrication management, and digital intelligence. Sensor-enabled condition monitoring embedded directly within bearings and drive systems allows operators to capture critical operational data at the source, enabling predictive maintenance and real-time performance optimisation. Innovations such as SKF’s VA9A1 Spherical Roller Bearing series, engineered specifically for demanding cement applications such as crushers and kilns, demonstrate this trend. By increasing internal bearing space and optimising lubricant flow, these designs improve grease retention, reduce wear, minimise downtime, and create more resilient, energy-efficient rotating equipment systems for the future of cement manufacturing” he adds.
Manufacturers are increasingly focusing on compact, high-torque gearbox designs capable of delivering higher power density while maintaining service life. Innovations such as condition-monitored gear systems, improved sealing technologies, and modular gearbox architectures are simplifying maintenance while enhancing operational reliability.
Predictive maintenance, condition monitoring, and asset health management
The shift from reactive to predictive maintenance is transforming asset management across the cement industry. Technologies such as vibration monitoring, thermography, oil analysis, ultrasound testing, and motor current signature analysis are enabling operators to identify potential failures before they occur.
Research by Deloitte suggests that predictive maintenance can reduce breakdowns by up to 70 per cent and lower maintenance costs by 25 per cent. In cement plants, where shutdown windows are limited and equipment operates continuously, predictive maintenance offers a powerful tool for improving reliability and extending asset life.
Digitalisation, industry 4.0, and the rise of intelligent drive systems
Industry 4.0 technologies are redefining the role of gears, drives, and motors. Smart sensors embedded within motors, bearings, and gear systems can continuously monitor temperature, vibration, load, lubrication condition, and energy consumption.
Girish Hanchate says, “As the industry embraces automation, sustainability, and digital transformation, the importance of intelligent motion technologies will continue to grow. The convergence of advanced engineering, predictive maintenance, and Industry 4.0 solutions is creating a new generation of cement plants where reliability, efficiency, and sustainability work together to deliver long-term value. For cement manufacturers navigating increasing production demands and environmental expectations, investing in smarter gears, drives, and motors is no longer optional—it is a business imperative.”
Cloud-based monitoring platforms and Industrial Internet of Things (IIoT) architectures enable maintenance teams to access equipment health data remotely, improving visibility across geographically dispersed operations. Advanced analytics and
artificial intelligence are further enhancing fault detection capabilities, enabling more accurate maintenance planning.
The emergence of digital twins represents another significant development. By creating virtual replicas of physical assets, operators can simulate operating conditions, predict failures, optimise maintenance schedules, and improve lifecycle management decisions. These technologies are helping transform rotating equipment into intelligent assets that actively contribute to operational decision-making.
Building future-ready cement plants through smart motion technologies
The future of cement manufacturing will depend heavily on the ability to integrate mechanical reliability with digital intelligence. Smart motion technologies combine high-efficiency motors,
intelligent drives, condition monitoring systems, and automation platforms to create more responsive and efficient operations.
Sustainability goals are also accelerating investment in advanced motion technologies. Reduced energy consumption, improved equipment efficiency, and extended asset life contribute directly to lower carbon emissions and reduced resource consumption.
These benefits align closely with the industry’s decarbonisation objectives.
As capacity expansions continue across India, future-ready cement plants will increasingly prioritise reliability, flexibility, and data-driven decision-making. Organisations that successfully integrate smart motion technologies into their operations will be better positioned to reduce costs, improve productivity, and maintain a competitive advantage in a rapidly evolving market.
Conclusion
Gears, drives, and motors are no longer viewed solely as mechanical components; they have become strategic assets that influence every aspect of cement plant performance. Their reliability affects production continuity, their efficiency impacts operating costs, and their digital capabilities increasingly shape maintenance and operational strategies.
- –Kanika Mathur
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