Economy & Market

Cement Industry: Forging ahead despite odds

Published

14 years ago

July 31, 2012

admin

Indian cement industry is growing at a brisk pace of 9-10 per cent, in spite of the fact that it is saddled with excess capacity, and buffeted by slowing economy. However, the prospects of the industry remains bright as the high level of housing deficit in India and the infrastructure sector growth will drive the industry’s growth going forward.The cement industry in India is the second largest market after China with a total capacity of over 300 m tonnes (MT) as of financial year ended 2011-12. The industry has gone through a consolidation phase due to which the top three players alone control over a third of the total capacity. However, due to large number of players, the balance capacity remains quite fragmented.During the last decade, the Indian cement industry has registered a decent growth of about 9 per cent to 10 per cent. However, the per capita consumption of cement still remains quite low when compared with the world average. When compared with China’s per capita consumption of 1,380 kg in 2010, India’s per capita consumption at 230 kg is abysmally poor. The positive thing is that low per capita consumption indicates that there is huge scope for growth in the Indian cement industry.Cement industry in India is largely divided into five main regions, viz. north, south, west, east and the central region. This is because cement being a bulk commodity its transportation over long distances is uneconomical. In the last on year, capacity additions have happened at a faster rate than the growth in demand, due to which prices of cement have remained subdued.The principal growth driver for the cement industry is residential housing. However, with the government’s thrust on the infrastructure sector, this sector is likely to emerge as the next growth driver.ConcernsThe cement industry has been facing quite a few challenges due to adverse investment environment and rising fuel prices. Investment in cement plants is always on a long-term basis due to the long gestation period. Also, with interest rates at a high, the capital costs are high too. Licensing of coal and limestone reserves, supply of power from the state grid, etc. are controlled by the government, so the cement companies have no option but to buy from the state. The shortage of coal and the volatile fuel prices have forced the producers to rely on captive power. There is tough competition amongst the players, which also takes a toll on the company’s profitability.The Reserve Bank of India’s policy measures to increase interest rates aimed at curbing inflationary pressures resulted in credit crunch thereby adversely impacting real estate, infrastructure and other construction projects. The vagaries of monsoons and logistical bottlenecks slowed down construction work and, as a result, average industry capacity utilisation at one point fell to as low as 70 per cent. The low cement demand dented average realizations, while additional capacities exacerbated the oversupply situation. On the other hand, rising input and fuel costs hurt the margins of cement players, while export markets saw sluggish growth due to the slowdown in the global economy, especially the sagging construction activity in the Gulf region.ProspectsRising inflation, high interest rates, high prices of commodities and fuels have slowed down Indian economy and since the cement industry’s prospects are linked to the prospects of the economy, the cement industry would face an uphill task ahead. The housing sector consumes almost 60-70% of the country’s cement and if the slowdown in real estate persists for an extended period, it would adversely impact the consumption of cement.Despite the overcapacity situation in the cement industry, several major capacity additions on the anvil in the next few years in anticipation of rise in cement demand. As a result, the supply overhang would persist for the next two-three years, putting pressure on realizations. The demand for cement is likely to grow at around 8-9 per cent due to the government’s thrust on infrastructure and housing.ACCCement House, 121, Maharshi Karve Road, Mumbai – 400 020Phone: +91-22-33024321 Fax: +91-22-66317440 www.acclimited.comKuldip K Kaura, CEO & MDACC is India’s foremost manufacturer of cement and concrete. ACC’s operations are spread throughout the country with 16 modern cement factories with installed capacity of about 30 mn tonnes p.a., more than 40 Ready Mix Concrete plants, 21 sales offices, and several zonal offices. It has a workforce of about 9,000 persons and a countrywide distribution network of over 9,000 dealers.The house of Tata was associated with ACC upto 2000. Between 999 and 2000, the Tata group sold all 14.45 per cent of its shareholding in ACC in three stages to subsidiary companies of Gujarat Ambuja Cements (later called Ambuja Cement), who then became the largest single shareholder in ACC. In January 2005, Holcim Group of Switzerland announced its plans to enter into a long-term strategic alliance with the Ambuja Group by acquiring a majority stake in Ambuja Cements India (ACI), which at the time held 13.8 per cent equity stake in ACC. Holcim, along with ACI, also made an open offer to ACC shareholders, through Holdcem Cement and ACI, to acquire a majority shareholding in ACC. Consequently, ACI’s equity stake in ACC increased to 34.69 per cent after which ACI declared itself as a promoter of ACC.Ambuja CementsElegant Business Park, MIDC Cross Road ‘B’, Off Andheri-Kurla Road., Andheri (E), Mumbai 400059Tel : 022 – 40667000 www.ambujacement.comOnne van der Weijde, Managing DirectorAmbuja Cements Ltd (ACL) is one of the leading cement manufacturing companies in India. The company, initially called Gujarat Ambuja Cements, was founded by Narottam Sekhsaria in 1983 with a partner, Suresh Neotia. The company commenced cement production in 1986. The global cement major Holcim acquired management control of ACL in 2006. Holcim today holds little over 46% equity in ACL. The Company is currently known as Ambuja Cements. ACL’s current cement capacity is about 25 million tonnes. The company has five integrated cement manufacturing plants and eight cement grinding units across the country. ACL is one of the most efficient cement manufacturers in the world. ACL is the first Indian cement manufacturers to build a captive port with three terminals along the country’s western coastline to facilitate timely, cost effective and environmentally cleaner shipments of bulk cement to its customers. The company has its own fleet of ships. ACL has also pioneered the development of the multiple bio-mass co-fired technology for generating greener power in its captive plants.Bagalkot CementStadium House, Block No.1, 6th Floor, Veer Nariman Road, Churchgate, Mumbai – 400 020.Tel : 022-22023841, 22023897 Fax : 022-22022884 www.bagalkotcement.comAjay Kanoria, Chairman & MD,Bagalkot Cement and Industries (BCIL) is a Kanoria Group Initiative that was incorporated in 2007 to acquire the cement division of Bagalkot Udyog. BCIL manufactures two classes of cement – BAGALKOT SHAKTI and BAGALKOT SUPREME with four decades of technical expertise, innovation, quality control and professionalism. It is one of the many cement manufacturing units in the North Karnataka. The cement factory started in 1955 with the wet process kiln of 300-tpd capacity. It was converted to a dry process kiln in 1982. Currently the plant manufactures 297,000 TPA of Cement.Binani CementMercantile Chambers, 2nd Floor, 12 JN Heredia Marg, Ballard Estate, Mumbai – 400 001Tel : 022-22690506-10 Fax : 022-22690001, 22690003 www.binaniindustries.comBraj Binani, ChairmanFollowing the restructuring of the Braj Binani Group, between 1996 and 2004, Binani Industries (BIL) was founded to serve as the holding company for Binani Cement, Binani Zinc, Goa Glass Fibre and BT Composites. After establishing its footprint firmly in India, China and Dubai, the Braj Binani Group is now envisioning to explore newer global horizons. Setting its sights on emerging markets like South Africa, East Africa and Mauritius, the Group is endeavouring to establish a strong network of Binani Cement presence across the globe. The Braj Binani Group’s focused continual improvement has been recognised with internationally accepted certifications for its various ventures.Birla Corporation14, Government Place (East), Kolkata 701 069Tel: 033-22483131(D), 22481111 Fax: 033-22486960, 4572 www.birlacorporation.comHarsh V. Lodha, Chairman,Birla Corporation is the flagship company of the M.P. Birla Group. Incorporated as Birla Jute Manufacturing Company in 1919, the late chairman Madhav Prasad Birla transformed it from a manufacturer of jute goods to a leading multi-product corporation with widespread activities. Under the chairmanship of Priyamvada Birla, the company crossed the Rs 1300-crore turnover mark and the name was changed to Birla Corporation in 1998. After the demise of Priyamvada Birla, the late Rajendra S. Lodha, became the chairman of the M.P. Birla Group. Harsh V Lodha is currently the chairman of the company. Birla Corporation has products ranging from cement to jute goods, PVC floor covering, as well as auto trims (jute felt-based car interiors).Cement Corporation of IndiaScope Complex, Core No. 5, 7, Lodhi Road, New Delhi – 110 003.Tel : 011-24360005/ 24360099 Fax : 011-24360464/ 24364555 www.cementcorporation.co.inR. P. Tak, Chairman & MD,Cement Corporation of India (CCI) is a company established in 1965 and wholly owned by Government of India. CCI is a multi unit organisation at present having ten units spread over eight states with a total annual installed capacity of 38.48 lakh MT. In line with the advancement in cement technology CCI had been adopting the latest one with one million tonne plants at Tandur and Nayagaon. CCI manufactures various types of cements like Portland Pozzolana Cement (PPC), Portland Slag Cement (PSC) & Ordinary Portland Cement (OPC) of varying grades viz. 33, 43,53 and 53S (special grade cement for manufacture of sleepers for Indian Railways) grades. under strict quality control with the brand name of CCI Cement. CCI has a strong work-force of 988 employees.Cement Manufacturing Company

281, Deepali, Pitampura, New Delhi – 110 034Tel: 011-27033821/22/27 Fax: 011-27033824 www.cmcl.co.inSajjan Bhajanka, Vice Chairman & MDCement Manufacturing Company (CMC) is the largest cement manufacturer in north east India. The company’s plant is spread across 40 acres of land in the idyllic town of Lumshnong, a strategic location at Meghalaya that ensures easy availability of high-grade limestone. Its brand "Star Cement" has established itself as the most accredited brand of the region. CMCL’s product range includes Ordinary Portland Cement (OPC 43-Grade) and (OPC 53-Grade) and Portland Pozzolana Cement (PPC) in line with evolving customer needs. Presently, CMCL is marketing clinker to different grinding units located in India, Nepal & Bhutan, along with cement of 3 types. The company’s institutional customers comprise L&T, NHPC, PWD, Indian Railways and Ministry of Defence.Chettinad Cement CorporationRani Seethai Hall Building, 603, Anna Salai, Chennai – 600 006Tel : 044-28292727, 28292040 Fax : 044-28291558 www.chettinad.comM.A.M.R. Muthiah, Managing DirectorChettinad Cement is operating its cement business spanning three generations. Since its establishment in 1962 with a wet process cement plant at Puliyur near Karur, Chettinad cement has been expanding and making itself versatile in the field of cement products. Major supplier of Southern India’s cement needs, Chettinad Cement supplies cement for many residential, commercial and engineering projects. Chettinad Cement has established its position in the southern market by innovatively aligning its products and services to the needs of cement users. Its ‘Builders Choice’ brand offers extensive range of bagged products, including Ordinary Portland cements and blended cements to suit most building and construction applications.Dalmia Cement (Bharat)11th & 12th Floors, Hansalaya Building, 15, Barakhamba Road, New Delhi – 110 001Tel : 011-23310121 Fax : 011-23313303 www.dalmiacement.comPuneet Dalmia, Managing DirectorFounded in 1935 by Jaidayal Dalmia; the cement division of DCBL was established in 1939 and enjoys 70 years of expertise and experience. The company has cement plants in southern states of Tamil Nadu (Dalmiapuram & Ariyalur) and Andhra Pradesh (Kadapa), with a capacity of 9 million tonnes per annum. The company is a pioneer in super specialty cements used for oil wells, railway sleepers and air strips. The company holds a stake of 45.4% in OCL India, a major cement player in the eastern region, and now control a cement capacity of 14.3 million tonnes and has a strong presence in southern and eastern regions of the country. With the plant located close to its source of raw materials, the company keeps its freight and transport costs low, giving it an edge over competition.Gujarat Sidhee CementNKM International House, 178, Backbay Reclamation, Mumbai – 400 020Tel : 022-66365444, 32955563 Fax : 022-66365445 www.hathi-sidheecements.comM.S. Gilotra, Managing DirectorGujarat Sidhee Cement (GSC), a part of the Mehta Group, markets cement under the brand name ‘Sidhee’. The company manufacturers Oridanary Portland Cement (OPC) 53 grade, 43 grade, Portland Pozzolana Cement (PPC) types of cement and clinker. GSCL is one of the first Indian cement company to get 53 grade license. GSC is a recognized Export House and has won the Indian cement industry’s prestigious National Productivity Awards thrice in succession .The Indian arm of the Mehta Group comprises of "Saurashtra Cement " (SC), marketing cement under the brand name "Haathi". Saurashtra Cement manufacturers Portland Pozzolana Cement (PPC), Ordinary Portland Cement (OPC 53 grade, 43 grade), SRPC types of cement and clinker. SCL is a recognized Export House and has won the Indian cement industry’s prestigious national award for ‘Energy Efficiency.’Heidelberg Cement India9th Floor, Tower-C, Infinity Towers, DLF Cyber City, Phase-II, Gurgaon – 122 002, HaryanaTel : 0124-4503700 Fax : 0124-4147692 www.mycemco.comAshish Guha, Managing DirectorHeidelberg Cement India (MCL), a Heidelberg Cement Group Company, was promoted in 1958 by a Karnataka-based industrialist in technical and financial collaboration with Kaisers of USA as a Public Limited Company. Pursuant to the Share Subscription and Share Purchase Agreement and Escrow Agreement Cementrum I B.V.(subsidiary of Heidelberg Cement AG) acquired equity shares from the S.K. Birla Group and its affiliates. In addition, further equity shares were acquired under the open offer giving Cementrum I B.V. 54.89 per cent shareholding in Heidelberg Cement India. Heidelberg Cement Group, with its core products being cement, ready mixed concrete, aggregates and related activities, is one of the leading producers of building materials worldwide, and it employs around 54,000 people in more than 40 countries.India Cements"Coromandel Towers" 93,Santhome High Road, Karpagam Avenue, Raja Annamalai Puram, Chennai – 600 028Tel : 044-28524004 Fax : 044-28520702 www.indiacements.co.inN. Srinivasan, Vice Chairman & MD,India Cements was established in 1946 and the first plant was setup at Sankarnagar in Tamilnadu in 1949 . Since then it has grown to seven plants spread over Tamil Nadu and Andhra Pradesh. The capacities as on March 2010 have reached 14.05 mtpa. The company is the largest producer of cement in South India with its plants well spread with three in Tamil Nadu and four in Andhra Pradesh which cater to all major markets in South India and Maharashtra. The company is the market leader with a market share of 28% in the South. The company has access to huge limestone resources and plans to expand capacity by debottlenecking and optimisation of existing plants as well as by acquisitions. The company has a strong distribution network with over 10,000 stockists of whom 25 per cent are dedicated. The company has well established brands- Sankar Super Power, Coromandel Super Power and Raasi Super Power.Jaiprakash AssociatesSector-128 NOIDA – 201 304 (U.P.) Tel : 0120-4609000, 2470800, 4609002 (D) Fax : 0120-460964, 460946 www.jalindia.comSunny Gaur, Managing Director (Cement)Jaypee Group is the 3rd largest cement producer in the country. The group produces special blend of Portland Pozzolana Cement under the brand name ‘Jaypee Cement’ (PPC). Its cement division currently operates modern, computerized process control cement plants with an aggregate capacity of 28 MTPA. The company is in the midst of capacity expansion of its cement business in Northern, Southern, Central, Eastern and Western parts of the country and is slated to be 35.90 MTPA by FY13 (expected) with captive thermal power plants totaling 672 MW.JK CementsKamla Tower, Kanpur, Uttar Pradesh.Tel : 0512-2371478-81 Fax : 0512-2399854, 2394250 www.jkcement.comYadupati Singhania, MD & CEOThe company’s cement operations commenced commercial production in May 1975 at its first plant at Nimbahera in the state of Rajasthan. Today, JK Cement is one of the largest cement manufacturers in north India. The company is also the second largest white cement manufacturer in India by production capacity. While the grey cement is primarily sold in the northern India market, the white cement enjoys demand in the export market including countries like South Africa, Nigeria, Singapore, Bahrain, Bangladesh, Sri Lanka, Kenya, Tanzania, UAE and Nepal.JK Lakshmi CementNehru House, 4th Floor, 4, Bahadurshah Zafar Marg, New Delhi – 110 002.Tel : 011-23311112 Fax : 011-23722251, 23712680 www.jklakshmi.comVinita Singhania, Managing Director,One of the established names in the cement industry, JK Lakshmi Cement has state-of-the-art plant at Jaykaypuram, district Sirohi, Rajasthan. With the capacity expansion and further commissioning of split location grinding units at Motibhoyan, Kalol (Gujarat) & Bajitpur, Jhajjar (Haryana) the combined capacity of the company today stands at 5.30 mn. MTPA. The company uses the latest technology from Blue Circle Industries and modern equipments from Fuller International of USA.Kalyanpur CementsMaurya Centre, 1, Fraser Road, Patna – 800 001Tel : 0612-2225819 Fax : 0612-2239884 www.kalyanpur.comAnant Prakash Sinha, Managing Director,Kalyanpur Cements is a leading cement manufacturer in eastern India. It runs the only integrated cement manufacturing facility in Bihar and markets its cement in Bihar, Jharkhand and Uttar Pradesh. Kalyanpur was established in 1938 and markets its cement under the popular KC Super, KC Special and Castcrete brands.KCPRamakrishna Buildings, 2, Dr. P.V. Cherian Crescent, Egmore, Chennai 600 008Tel : 044-66772609/10 Fax : 044-66772680 www.kcp.co.inV.L. Indira Dutt, Jt. Managing DirectorKCP, one of the country’s oldest cement producers, has a strong presence in the south India market. KCP strategically chose the greenfield plant located at Ramakrishnapuram, Muktyala Village, Jaggayyapet Mandal in Krishna district of Andhra Pradesh because it is close to large limestone reserves and provides easy access to the key markets of Andhra Pradesh, Tamil Nadu, Karnataka and Orissa. The company’s energy-efficient plant has an annual capacity of 1.52 million tonnes. Its cement plant at Macherla in Andhra Pradesh is India’s first dry process kiln and was installed in 1958 by HUMBOLDT, Germany even while it was still a prototype in Europe.Kesoram IndustriesP.O. Basantnagar – 505 187, Dist. Karimnagar (A.P.).Tel : 033-22435453, 22429454, 22135121; 08728-228123(D) Fax : 08728-228160, 228444 www.kesocorp.comK.C. Jain, Wholetime Director,Kesoram Industries has two units manufacturing under two brand names, viz Vasavadatta Cement and Kesoram Cement. While Vasavadatt unit is located at Sedam in Gulbarga district of Karnataka, Kesoram unit is located at Basantnagar in Karimnagar district of Andhra Pradesh. The installed capacity of Sedam unit is 57.5 lakh metric tonnes, the installed capacity of Basantnagar unit is 15 metric tonnes. The performance of cement division has been quite good during FY 11-12, with the company’s income from cement division rising from Rs 1852 crore in 2010-11 to Rs 2060 crore in 2011-12. The operating profit from the cement division jumped from Rs 274 crore in FY2010-11 to Rs 439 crore in FY2011-12NCL Industries7th Floor, Raghava Ratna Towers, Chirag Ali Lane, Abids, Hyderabad 500001Phone: 040-23201146, 23203637 www.nclind.comK Ravi, Managing DirectorNCL Industries, the flagship company of the NCL group of industries, has been serving the construction industry of Andhra Pradesh for the past 25 years with its cement under the brand name ‘Nagarjuna Cement’, which is an established premium brand in the coastal districts of Andhra Pradesh. The company expanded the capacity of the cement plant by stages from 200 TPD to 900 TPD. The company which is now operating two units and has expanded its capacity of 2,000 MT per day to 6,000 MT per day and is poised to have a capacity of two million tonnes per annum.Penna Cement IndustriesPlot No. 705, No. 8-2-268/A/1/5/1, Road No. 3 Banjara Hills, Hyderabad 500 034Phone: 040-44565100 Fax No. 040-23328073, 23355941, 23353947 www.pennacement.comP. Prathap Reddy, Managing DirectorPenna Cement Industries (PCI) was formed in year 1991 by Prathap Reddy. First plant was commissioned in 1994 at Talaricheruvu village in Tadipatri Mandal of Ananthapur district of Andhra Pradesh with initial capacity of 0.2 MTPA. Penna Cement has operational plants and with plans for setting up grinding units and packing units at various locations with total installed capacity of 7 MTPA. Penna Cement manufactures a wide range of cement including Ordinary Portland Cement (OPC 53grade and 43 grade), Portland Pozzolana Cement (PPC), Portland Slag Cement (PSC).Prism CementRahejas, Main Avenue, Vallabhai Patel Road, Santacruz (W), Mumbai 400 054.Tel: 91 22 6675 4142/3/4. Fax: 91 22 2600 1304. www.prismcement.comManoj Chhabra, Managing DirectorPrism Cement commenced its production in August 1997 and manufactures Portland Pozzollana Cement with the brand name ‘Champion’ and Ordinary Portland Cement (OPC). It has the highest quality standards due to efficient plant operations with automated controls. It caters mainly to markets of UP, MP and Bihar, with an average lead of 340-370 km of its plant at Satna, MP. It has integrated building materials company with a wide range from cement, ready-mixed concrete, tiles, and bath products to kitchens. The company has three Divisions, viz. Prism Cement, H & R Johnson (India), and RMC Readymix (India). Prism Cement Limited also has a 74% stake in Raheja QBE General Insurance Company Limited, a JV with QBE Group of Australia.UltraTech Cement

"B" Wing, 2nd floor, Ahura Centre, Mahakali Caves Road, Andheri (East), Mumbai 400 093.Tel: 91-22-66917800; Fax: 91-22-66928109 Website: www.ultratechcement.comO. P. Puranmalka, Whole-Time Director,UltraTech Cement is the ultimate 360? building materials destination, providing an array of products ranging from grey cement to white cement, from building products to building solutions and an assortment of ready mix concretes catering to varied needs and applications. UltraTech’s products include Ordinary Portland cement, Portland Pozzolana cement and Portland blast-furnace slag cement. UltraTech is India’s largest exporter of cement clinker spanning export markets in countries across the Indian Ocean, Africa, Europe and the Middle East. The company exports over 2.5 million tonnes per annum, which is about 30 per cent of the country’s total exports. UltraTech and its subsidiaries have a presence in 5 countries through 11 integrated plants, 1 white cement plant, 1 clinkerisation plant, 15 grinding units, 2 rail and 3 coastal terminals and 101 RMC plants.

Economy & Market

SEW-EURODRIVE India Opens Drive Technology Centre in Chennai

Published

2 weeks ago

March 25, 2026

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The new facility strengthens SEW-EURODRIVE India’s manufacturing, assembly and service capabilities

SEW-EURODRIVE India has inaugurated a new Drive Technology Centre (DTC) in Chennai, marking a significant expansion of its manufacturing and service infrastructure in South India. The facility is positioned to enhance the company’s responsiveness and long-term support capabilities for customers across southern and eastern regions of the country.

Built across 12.27 acres, the facility includes a 21,350-square-metre assembly and service setup designed to support future industrial growth, evolving application requirements and capacity expansion. The centre reflects the company’s long-term strategy in India, combining global engineering practices with local manufacturing and service capabilities.

The new facility has been developed in line with green building standards and incorporates sustainable features such as natural daylight utilisation, solar power generation and rainwater harvesting systems. The company has also implemented energy-efficient construction and advanced climate control systems that help reduce shopfloor temperatures by up to 3°C, improving production stability, product quality and working conditions.

A key highlight of the centre is the 15,000-square-metre assembly shop, which features digitisation-ready assembly cells based on a single-piece flow manufacturing concept. The facility also houses SEW-EURODRIVE India’s first semi-automated painting booth, aimed at ensuring uniform surface finish and improving production throughput.

With the commissioning of the Chennai Drive Technology Centre, SEW-EURODRIVE India continues to strengthen its manufacturing footprint and reinforces its long-term commitment to supporting industrial growth and automation development in India.

Concrete

Material Flow Efficiency

Published

3 weeks 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

3 weeks 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.