Economy & Market
Forecast 2013
Published
13 years agoon
By
admin
ICR examines and studies the cement, concrete, concrete equipment sector for the coming year. The study was done basically to comprehend and analyse the current state of each sector. Also, ICR bring to you the opinions of dealers, who know the real pulse of the market.The first half of the year 2012 of the cement industry witnessed a sluggish demand and almost the other half felt the cost pressure. In the states like Andhra Pradesh, the year ended on a discouraging note since the prices dipped further by Rs 40-45. However as per the Working Committee report on cement industry suggests that the Government of India plans to increase its investment in infrastructure to US $ 1 trillion in the Twelfth Five Year Plan (2012-17) as compared to US $ 514 billion expected to be spent on infrastructure development under the Eleventh Five Year Plan (2007-12). Further, infrastructure projects such as the dedicated freight corridors, upgraded and new airports and ports are expected to enhance the scale of economic activity, leading to a substantial increase in cement demand. Housing sector and road also provide significant opportunities. The cement demand is likely to be sensitive to the growth in these sectors and also the policy initiatives. Further, capacity addition in cement would continue to be preferably front loaded. It may be desirable to create some excess capacity rather than operate with shortages or supply bottlenecks. Keeping in view the factors responsible for the increasing demand for the sector and the assumptions mentioned below, four lines of projection in the demand for cement up to next 25 years (2027) have been given. The annual average growth in the demand, production and installed capacity of the cement during the period could be within the range of 10-11.75 per cent. The production of cement would be sensitive to the GDP growth and the growth of sectors which are major users of cement. A step up in demand of these sectors could provide some stimulus to the cement sector as well.Assumptions??Base line growth from 2014-15 is kept at assumed GDP growth, or an elasticity of 1.0.??The growth is expected to increase by 1 per cent above the base line in scenario 2 assuming NH and SH to be initially covered.??In scenario 3, assuming a further increase in growth by 0.5 per cent and in scenario 4 growth is scaled up further by 0.25 per cent.??Base Growth kept a little lower than GDP growth in first three years because of pickup in demand may take some time.??With all the three expectations being met, growth improves to 10.75 per cent or with an assumed elasticity of roughly 1.2, as against observed elasticity of 1.07 during 12th Plan and further to 11.75 per cent in the next 10 years. Elasticity tapers off to 1.175.12 The Task Force for the 11th Plan for the Cement sector also mentioned that the concrete roads, besides providing an excellent surface, enjoy a lower life cycle cost. In the current scenario, however, concrete roads enjoy an initial cost advantage as well.2012 a mixed bagThe year 2012 for the cement industry was full of controversies. Be it the issue of catelisation, wherein the 11 cement giants were penalised with a mammoth amount of Rs 6,304 crore or the reduction in prices of cement by the end or the year. The cement market was volatile and slowed signs of improvement. The acquisition of Calcom in the beginning of the year and Adhunik in September 2012 by Dalmia proved that consolidation remains the key for the cement business. By the end of the year they increased their stake in Calcom by 26 per cent.Expressing his opinion on the market scenario in the year 2012, Jagdeep Verma, Head- Business Consulting, Holtec Consulting said, "The good news was that cement consumption grew by 8 per cent, despite a slowdown in GDP growth. Retail prices too increased by an average 6-7 per cent over the last year, though there were large price fluctuations in some states and key consumption centres on account of consumption-supply imbalances. The price increase enabled most producers to offset the increased cost of inputs, significant offenders being fuel and logistics."He further explained the negative side of the sector. "On the flip side, industry sentiment was adversely affected, not only by the penalty proposed by the Competition Commission of India, but also by general economic sluggishness, the current prevalence of market surplus, high borrowing rates/ poor liquidity conditions in user segments, difficulties faced in land acquisition/ procuring environmental clearances and ambivalent perceptions regarding the emerging politico-economic scenario. All this manifested itself in a reining in of capacity addition initiatives. Firms with high costs pressures are opening up to M&A possibilities and PE funding in order to smoothen their cash flow obligations."However Prakash Raja, the Committee Member of Cement Dealers’ Stockist Association feels that on one hand where there was a hike in cement prices, on the other hand, the demand that showed signs of pick up never really caught on, which brought a lot of volatility in the market. "We have seen cement companies, which have been region specific for almost decades, now venturing out in hunt for newer markets. Consequently, a mini price war was witnessed this year. In fact the rates are still far from being stable. Since many construction companies do not utilise input Value Added Tax (‘VAT’) credit, they prefer buying material against C-form, ensuring concessional rate of Central Sales Tax (‘CST’) and consequently, lowering of input costs. This has made it worthwhile for the new market seeking companies to do business across states, without really breaking the bank." The slump has impacted their business in a threefold manner. Jugal Raja, King’s Trade Links said that the slump has a threefold effect on the dealers. "Higher borrowing costs, higher prices of cement and elongation of credit period offered to the buyers are the three negatives that have ensured that most of our revenues are literally wiped out. To illustrate, if we take the cement price hike on a smoothened average basis to be Rs.40, the cost of borrowings rise at 2.5-3 per cent per annum and the elongation of credit period on an average by 40-60 days, the income remaining constant, one can imagine the impact on the margins. Given the slow down and overall slug-gishness, lowering volumes have made this worse than it looks. Many dealers have been raising their voice against the stagnant commission and pass-on since the last 5 years.Although the prices of cement have risen, the absolute value of dealers’ pass-on has been kept constant by the manufacturers, citing growth in volumes to be enough to compensate the dealers. Now that there is slow down, there is a strong case for the hike in dealers’ margins, albeit only at the manufacturers’ discretion."Even the concrete equipment sector witnessed severe disappointment. Anand Sundaresan, Managing Director, Schwing Stetter said that the entire industry went through a bad phase and the concrete equipment industry was no exception to that which led to drop in their numbers. Talking about the percentage in slouch he said,"It will be very difficult to talk about by what percentage has our business gone down since the Finance Minister is also trying his level best to improve the sector by introducing new policies which might work out and we might be in a better position."Recently Lucky Cement, Pakistan’s largest cement manufacturer was keen on setting up a cement plant in India. Generally cements from Pakistan are said to be of a cheaper rate and of a better quality. But Jugal Raja, Dealer, King’s Trade Links believes that India being the second largest producer of cement in the world is producing almost three times the total output of the third largest producer – Iran. We firmly believe there is no case, be it quality or affordability that makes our economy open up to such imports, more so when such notorious activities have been un-earthed. If the pricing is so enticing, there must be a reason for it. We see it and it’s high time the end users as well as the authorities see it. This may sound like a very Nationalist and even slightly jingoistic view, but imagine where cement companies from South of India are finding it difficult in terms of costs to move the material to areas such as Mumbai at Rs 270 per bag, how would it be a profitable affair for an economy such as Pakistan which is surviving on external aid to push it from longer distances at Rs 220 per bag."Challenges
With the mismatch of demand and supply faced by the cement industry is expected to encounter with a lot of challenges, which will further impact all the related industries.According to Sundaresan, the major challenge faced by the equipment manufacturing sector is substantial increase in input costs due to a hike in commodity prices, increase in interest rates, increase in employee and power costs and almost an increase of 25 per cent in the dollar exchange rate between April 2011 and average exchange rate in the year 2012.Whilst Verma feels that the cement industry will face a series of challenges like dwindling natural resources, cost reduction, optimisation of logistics, acute shortage of dom-estic coal and the increase in costs and gestation period. "Shortage of natural resources is a serious cause of concern. Among these, limestone, fossil fuel and water, if not conserved, could definitely inhibit the long term growth of the industry. The onus of conservation, till now, has generally been technology-based and, therefore, largely driven by equipment suppliers. Wasteful practices need much higher attention and cement producers must pick up the baton on directly arresting these in the course of normal operations." He further said that the life of limestone reserves being limited to the next 40 years or so, initiatives to use poorer grades appear imminent; despite conventional wisdom, high quality limestone imports are, possibly, inevitable.Cost reduction will be another issue which is expected to dominate the upcoming two to three fiscals. The biggest costs in cement business are energy and logistics, thus adequate attention has, only been recently directed at one of the largest components of delivered cost, viz. input and output freight. Given the acute shortage of domestic coal and the increase in costs in imported coal, alternate fuels would continue to receive enhanced attention and could provide 7-10 per cent of the total thermal fuel requirements by FY 2015-16. The usage of gas, especially in plants enjoying logistical proximity to gas resources, could well become a reality. While Greenfield plants would setup captive power plants to ensure reliable power supply, the existing plans would consider use of alternative fuels and also installation of Waste Heat Recovery systems to keep costs under control Verma further explained, "An analysis of the components of the final delivered cost of cement shows that 40 per cent is constituted by production costs, 25 per cent by the transport costs of inputs and outputs and 35 per cent by direct and indirect taxes. Optimisation of transportation logistics, spanning modes, nodes and routes, is thus an area deserving a higher degree of focused attention.The potential for reducing costs in non-equipment related domains, e.g. material inventories, consumable consumption rates and tariffs, financial expenses, etc. has still not been adequately harnessed.Also with the pre-project activities, such as land acquisition and statutory clearances, being expected to consume more time, the gestation period in the future is likely to be in the range of 5-7 years.Industry players could attempt to bring down actual construction time by employing more steel in civil engineering structures.According to SN Subrahmanyan, Member of the Board and Sr. EVP (Infrastructure & Construction), L&T Construction, the cement equipmeny industry is also going through alot of changes. The current focus is on savings in energy consumption and emission control methods, with stringent pollution control norms which are tightened day by day and the introduction of PAT (Perform, Achieve and Trade) scheme. "Cement manufacturers are expected to operate their plant in optimised conditions all the time. Power availability is also a key factor that affects cement plant operations. Clients are looking for equipment which reduces energy, fuel consumption, and effective utilisation of waste heat. Due to this trend waste heat recovery systems and alternate fuel firing systems have become common requirements in cement plant tenders."Regarding future trends:In India Municipal Waste Firing (MWF) in cement plants is an area with great potential but still underutilised. The reason for that is non-homogeneity and lack of continuous availability of the wastes. This irregularity creates fluctuations in the cement process and causes undesirable emission levels, increase in energy consumption patterns and also affects clinker quality. Every state should have waste collection centres to ensure continuous supply of wastes to cement plants. Substantial research is required to develop municipal waste firing systems suitable for Indian conditions considering mode of transport and hygiene. Existing designs are predominantly based on western country municipal wastes, but the wastes generated in western countries are quite different from the municipal wastes generated in Indian cities due to cultural differences. This change in type of waste impacts the system performance and firing rate. Availability of municipal waste is also inconsistent in India. If flexible firing systems are developed then Municipal wastes can be substituted for fossil fuels by 20-30 per cent. Currently cement plants are able to substitute only 5-15 per cent of waste for fuel fired in the system due to above said reasons. We believe with increasing coal prices and non-availability of power may encourage more cement plant clients to prefer municipal waste firing systems in the near future.Government intervention
With over 200 major construction projects pending in India, the entire construction industry is suffering with losses. "First and the foremost, the government should push investment in infrastructure projects, and bring in whatever policies changes that are necessary to speed this up and make it investment friendly," said Sundaresan. The other hindrance faced by the industry is most road contractors talk about land acquisitions as one of the major bottlenecks for speedy completion of projects.Definitely, this issue has to be addressed, which is pending for quite some time. Coming to the equipment industry he commented, "Concerning the equipment industry, the government should bring in similar kind of sops like what was done during the budget 2009, i.e., reduction in excise duty for capital equipments. In addition to that, we have other usual grievances like abolition of entry tax, GST, Uniform Tax Policy, etc."Even the dealers are of the opinion that the Government needs to clearances to the pending projects. "We require only one support and that is the clearing of proposed and further issuance of quality projects which will help build a new India. The money injected will churn into the economy fastest through this route as we have witnessed in the past. To supplement this, we believe India has a top-notch infrastructure funding mechanism in the form of multiple lending institutions. Perhaps, easing of certain eligibility criteria will do a host of good." He further added, "Maybe, a different, more ‘ambitious projects’ centric version of IDFC is the need of the hour. Also, as mentioned earlier, there is disparity among VAT and concessional rate of CST for end-users not utilising input VAT to pay output VAT. This disparity should be mitigated with the introduction of GST as early as possible."At a general level, the industry would like stable economic policies and lowering of interest rates leading to positive growth sentiments and increase in GDP, GFCF and thereby construction related investment. This would enable the industry to systematically plan its capacity expansions and focus on ways to meet cement demand.At an industry level, cogent policies to own mines and coals blocks, as also those associated with land acquisition, would be desired. This would facilitate ease of setting up cement plants within acceptable gestation periods, generate acceptable returns to stakeholders and keep debt related cash outflows low-in turn downward inflowing cement prices.According to Verma, "A regulatory body to ensure adherence to India Standards by all concrete producers (commercial and captive) would help the industry to ensure quality concrete is made available to all end users. With such an intervention, the industry could then further educate its customers on concrete production and usage. Malpractices followed by small-scale concrete producers would come to an end and prices narrow down within an acceptable band. This could impel more cement producers to forward integrate into the RMC industry and serve their customers better."Also for the dealers logistics remains the biggest challenge for the year 2013. Mumbai, (which is considered a separate region altogether, giving exclusivity to this market, separate from the rest of the Western region) has the threshold logistical permissibility of 750,000- 800,000 metric tonne a month. With rising demand in satellite areas and the ambitious projects waiting in the flanks, there is consensus that this constraint be dealt with. Same goes for Bangalore and even for some up and coming tier-two cities such as Mangalore and Bhopal, where demand has been robust. Another challenge that the industry faces is really something which is not in control of the industry, viz, the log-jam of various projects, both private and state/central funded. This log-jam is expected to be cleared out before the last budget of the UPA-2 on a populist count. Be that as it may be, the opportunity for the cement industry is huge, considering that the Indian growth story is still very much intact.Forecast 2013Most of the industries related to cement are expecting a sluggish year ahead. For the concrete equipment industry the year is expected to grow marginally. "Even though the government is bringing in a lot of policy reforms and steps for improving the economic growth, the award of contracts will take some time. Besides that, concreting comes at a much later stage, i.e. after excavation or earth moving. Therefore, for the concreting equipment industry, I feel 2013 will be a flat year or it will be with a marginal growth," said Anand. To combat the same the company is all set to launch new equipment in the upcoming bCIndia 2013.Cement consumption is expected to sustain in the range of 8-9 per cent, taking estimated cement consumption in FY 2013 from around 260 mio t to 280-285 mio t in FY 2014.Due to public perceptions of high cement prices, cement demand (not to be mistaken with consumption) would remain unfulfilled. Producing "affordable cement" without compromising the quantum (not per cent) of EBIDTA is possibly the one major initiative that would possibly dwarf all other initiatives. This would necessitate the harnessing of technology, amending operating practices and modifying customer mindsets. The net effect could be significant increase in customer base and consequentially a mini-explosion in the size of the cement market pie. There is also a strong likelihood of players announcing greenfield capacity additions, in order to ensure plants are operational by the time cement consumption overtakes capacity (FY 2018). Possible pre-conditions for these announcements to be translated into action would include a lowering of interest rates and expeditious action on statutory clearances.The likelihood of PE Firms playing a higher role to fund the cash-strapped companies would increase. M&A activities are also likely to accelerate, particularly with larger cement players having an opportunity to acquire plants under financial pressures.Capacities would most probably exchange ownership if the agreed valuation is in the range of USD 145-165/ t.On the technology front, efforts to utilise Alternative Fuels and install Waste Heat Recovery are initiatives which are likely to become much more widespread.For the dealers the summer of 2013 is touted to be the start of the new bull run for the entire infra space. With both, the Holcim group (ACC and Ambuja) and Aditya Birla group (Ultratech) having the right arsenal in place in the form of increased capacities, and with the other upcoming brands, the total tally of consumption in cement will see a huge pick up owing to moderated base of last two years. There were times when demand would be so high that companies were compelled to allocate the total arrivals in preference of consumer loyalty and buying patterns.We believe that won’t happen in the next bull run since the easing of logistical situation backed by the expansion of capacity has taken place since then.Thus only time will show that if the industry will regain its old pace or will deteriorate further.
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Concrete
Refractory demands in our kiln have changed
Published
1 day agoon
February 20, 2026By
admin
Radha Singh, Senior Manager (P&Q), Shree Digvijay Cement, points out why performance, predictability and life-cycle value now matter more than routine replacement in cement kilns.
As Indian cement plants push for higher throughput, increased alternative fuel usage and tighter shutdown cycles, refractory performance in kilns and pyro-processing systems is under growing pressure. In this interview, Radha Singh, Senior Manager (P&Q), Shree Digvijay Cement, shares how refractory demands have evolved on the ground and how smarter digital monitoring is improving kiln stability, uptime and clinker quality.
How have refractory demands changed in your kiln and pyro-processing line over the last five years?
Over the last five years, refractory demands in our kiln and pyro line have changed. Earlier, the focus was mostly on standard grades and routine shutdown-based replacement. But now, because of higher production loads, more alternative fuels and raw materials (AFR) usage and greater temperature variation, the expectation from refractory has increased.
In our own case, the current kiln refractory has already completed around 1.5 years, which itself shows how much more we now rely on materials that can handle thermal shock, alkali attack and coating fluctuations. We have moved towards more stable, high-performance linings so that we don’t have to enter the kiln frequently for repairs.
Overall, the shift has been from just ‘installation and run’ to selecting refractories that give longer life, better coating behaviour and more predictable performance under tougher operating conditions.
What are the biggest refractory challenges in the preheater, calciner and cooler zones?
• Preheater: Coating instability, chloride/sulphur cycles and brick erosion.
• Calciner: AFR firing, thermal shock and alkali infiltration.
• Cooler: Severe abrasion, red-river formation and mechanical stress on linings.
Overall, the biggest challenge is maintaining lining stability under highly variable operating conditions.
How do you evaluate and select refractory partners for long-term performance?
In real plant conditions, we don’t select a refractory partner just by looking at price. First, we see their past performance in similar kilns and whether their material has actually survived our operating conditions. We also check how strong their technical support is during shutdowns, because installation quality matters as much as the material itself.
Another key point is how quickly they respond during breakdowns or hot spots. A good partner should be available on short notice. We also look at their failure analysis capability, whether they can explain why a lining failed and suggest improvements.
On top of this, we review the life they delivered in the last few campaigns, their supply reliability and their willingness to offer plant-specific custom solutions instead of generic grades. Only a partner who supports us throughout the life cycle, which includes selection, installation, monitoring and post-failure analysis, fits our long-term requirement.
Can you share a recent example where better refractory selection improved uptime or clinker quality?
Recently, we upgraded to a high-abrasion basic brick at the kiln outlet. Earlier we had frequent chipping and coating loss. With the new lining, thermal stability improved and the coating became much more stable. As a result, our shutdown interval increased and clinker quality remained more consistent. It had a direct impact on our uptime.
How is increased AFR use affecting refractory behaviour?
Increased AFR use is definitely putting more stress on the refractory. The biggest issue we see daily is the rise in chlorine, alkalis and volatiles, which directly attack the lining, especially in the calciner and kiln inlet. AFR firing is also not as stable as conventional fuel, so we face frequent temperature fluctuations, which cause more thermal shock and small cracks in the lining.
Another real problem is coating instability. Some days the coating builds too fast, other days it suddenly drops, and both conditions impact refractory life. We also notice more dust circulation and buildup inside the calciner whenever the AFR mix changes, which again increases erosion.
Because of these practical issues, we have started relying more on alkali-resistant, low-porosity and better thermal shock–resistant materials to handle the additional stress coming from AFR.
What role does digital monitoring or thermal profiling play in your refractory strategy?
Digital tools like kiln shell scanners, IR imaging and thermal profiling help us detect weakening areas much earlier. This reduces unplanned shutdowns, helps identify hotspots accurately and allows us to replace only the critical sections. Overall, our maintenance has shifted from reactive to predictive, improving lining life significantly.
How do you balance cost, durability and installation speed during refractory shutdowns?
We focus on three points:
• Material quality that suits our thermal profile and chemistry.
• Installation speed, in fast turnarounds, we prefer monolithic.
• Life-cycle cost—the cheapest material is not the most economical. We look at durability, future downtime and total cost of ownership.
This balance ensures reliable performance without unnecessary expenditure.
What refractory or pyro-processing innovations could transform Indian cement operations?
Some promising developments include:
• High-performance, low-porosity and nano-bonded refractories
• Precast modular linings to drastically reduce shutdown time
• AI-driven kiln thermal analytics
• Advanced coating management solutions
• More AFR-compatible refractory mixes
These innovations can significantly improve kiln stability, efficiency and maintenance planning across the industry.
Concrete
Digital supply chain visibility is critical
Published
1 day agoon
February 20, 2026By
admin
MSR Kali Prasad, Chief Digital and Information Officer, Shree Cement, discusses how data, discipline and scale are turning Industry 4.0 into everyday business reality.
Over the past five years, digitalisation in Indian cement manufacturing has moved decisively beyond experimentation. Today, it is a strategic lever for cost control, operational resilience and sustainability. In this interview, MSR Kali Prasad, Chief Digital and Information Officer, Shree Cement, explains how integrated digital foundations, advanced analytics and real-time visibility are helping deliver measurable business outcomes.
How has digitalisation moved from pilot projects to core strategy in Indian cement manufacturing over the past five years?
Digitalisation in Indian cement has evolved from isolated pilot initiatives into a core business strategy because outcomes are now measurable, repeatable and scalable. The key shift has been the move away from standalone solutions toward an integrated digital foundation built on standardised processes, governed data and enterprise platforms that can be deployed consistently across plants and functions.
At Shree Cement, this transition has been very pragmatic. The early phase focused on visibility through dashboards, reporting, and digitisation of critical workflows. Over time, this has progressed into enterprise-level analytics and decision support across manufacturing and the supply chain,
with clear outcomes in cost optimisation, margin protection and revenue improvement through enhanced customer experience.
Equally important, digital is no longer the responsibility of a single function. It is embedded into day-to-day operations across planning, production, maintenance, despatch and customer servicing, supported by enterprise systems, Industrial Internet of Things (IIoT) data platforms, and a structured approach to change management.
Which digital interventions are delivering the highest ROI across mining, production and logistics today?
In a capital- and cost-intensive sector like cement, the highest returns come from digital interventions that directly reduce unit costs or unlock latent capacity without significant capex.
Supply chain and planning (advanced analytics): Tools for demand forecasting, S&OP, network optimisation and scheduling deliver strong returns by lowering logistics costs, improving service levels, and aligning production with demand in a fragmented and regionally diverse market.
Mining (fleet and productivity analytics): Data-led mine planning, fleet analytics, despatch discipline, and idle-time reduction improve fuel efficiency and equipment utilisation, generating meaningful savings in a cost-heavy operation.
Manufacturing (APC and process analytics): Advanced Process Control, mill optimisation, and variability reduction improve thermal and electrical efficiency, stabilise quality and reduce rework and unplanned stoppages.
Customer experience and revenue enablement (digital platforms): Dealer and retailer apps, order visibility and digitally enabled technical services improve ease of doing business and responsiveness. We are also empowering channel partners with transparent, real-time information on schemes, including eligibility, utilisation status and actionable recommendations, which improves channel satisfaction and market execution while supporting revenue growth.
Overall, while Artificial Intelligence (AI) and IIoT are powerful enablers, it is advanced analytics anchored in strong processes that typically delivers the fastest and most reliable ROI.
How is real-time data helping plants shift from reactive maintenance to predictive and prescriptive operations?
Real-time and near real-time data is driving a more proactive and disciplined maintenance culture, beginning with visibility and progressively moving toward prediction and prescription.
At Shree Cement, we have implemented a robust SAP Plant Maintenance framework to standardise maintenance workflows. This is complemented by IIoT-driven condition monitoring, ensuring consistent capture of equipment health indicators such as vibration, temperature, load, operating patterns and alarms.
Real-time visibility enables early detection of abnormal conditions, allowing teams to intervene before failures occur. As data quality improves and failure histories become structured, predictive models can anticipate likely failure modes and recommend timely interventions, improving MTBF and reducing downtime. Over time, these insights will evolve into prescriptive actions, including spares readiness, maintenance scheduling, and operating parameter adjustments, enabling reliability optimisation with minimal disruption.
A critical success factor is adoption. Predictive insights deliver value only when they are embedded into daily workflows, roles and accountability structures. Without this, they remain insights without action.
In a cost-sensitive market like India, how do cement companies balance digital investment with price competitiveness?
In India’s intensely competitive cement market, digital investments must be tightly linked to tangible business outcomes, particularly cost reduction, service improvement, and faster decision-making.
This balance is achieved by prioritising high-impact use cases such as planning efficiency, logistics optimisation, asset reliability, and process stability, all of which typically deliver quick payback. Equally important is building scalable and governed digital foundations that reduce the marginal cost of rolling out new use cases across plants.
Digitally enabled order management, live despatch visibility, and channel partner platforms also improve customer centricity while controlling cost-to-serve, allowing service levels to improve without proportionate increases in headcount or overheads.
In essence, the most effective digital investments do not add cost. They protect margins by reducing variability, improving planning accuracy, and strengthening execution discipline.
How is digitalisation enabling measurable reductions in energy consumption, emissions, and overall carbon footprint?
Digitalisation plays a pivotal role in improving energy efficiency, reducing emissions and lowering overall carbon intensity.
Real-time monitoring and analytics enable near real-time tracking of energy consumption and critical operating parameters, allowing inefficiencies to be identified quickly and corrective actions to be implemented. Centralised data consolidation across plants enables benchmarking, accelerates best-practice adoption, and drives consistent improvements in energy performance.
Improved asset reliability through predictive maintenance reduces unplanned downtime and process instability, directly lowering energy losses. Digital platforms also support more effective planning and control of renewable energy sources and waste heat recovery systems, reducing dependence on fossil fuels.
Most importantly, digitalisation enables sustainability progress to be tracked with greater accuracy and consistency, supporting long-term ESG commitments.
What role does digital supply chain visibility play in managing demand volatility and regional market dynamics in India?
Digital supply chain visibility is critical in India, where demand is highly regional, seasonality is pronounced, and logistics constraints can shift rapidly.
At Shree Cement, planning operates across multiple horizons. Annual planning focuses on capacity, network footprint and medium-term demand. Monthly S&OP aligns demand, production and logistics, while daily scheduling drives execution-level decisions on despatch, sourcing and prioritisation.
As digital maturity increases, this structure is being augmented by central command-and-control capabilities that manage exceptions such as plant constraints, demand spikes, route disruptions and order prioritisation. Planning is also shifting from aggregated averages to granular, cost-to-serve and exception-based decision-making, improving responsiveness, lowering logistics costs and strengthening service reliability.
How prepared is the current workforce for Industry 4.0, and what reskilling strategies are proving most effective?
Workforce preparedness for Industry 4.0 is improving, though the primary challenge lies in scaling capabilities consistently across diverse roles.
The most effective approach is to define capability requirements by role and tailor enablement accordingly. Senior leadership focuses on digital literacy for governance, investment prioritisation, and value tracking. Middle management is enabled to use analytics for execution discipline and adoption. Frontline sales and service teams benefit from
mobile-first tools and KPI-driven workflows, while shop-floor and plant teams focus on data-driven operations, APC usage, maintenance discipline, safety and quality routines.
Personalised, role-based learning paths, supported by on-ground champions and a clear articulation of practical benefits, drive adoption far more effectively than generic training programmes.
Which emerging digital technologies will fundamentally reshape cement manufacturing in the next decade?
AI and GenAI are expected to have the most significant impact, particularly when combined with connected operations and disciplined processes.
Key technologies likely to reshape the sector include GenAI and agentic AI for faster root-cause analysis, knowledge access, and standardisation of best practices; industrial foundation models that learn patterns across large sensor datasets; digital twins that allow simulation of process changes before implementation; and increasingly autonomous control systems that integrate sensors, AI, and APC to maintain stability with minimal manual intervention.
Over time, this will enable more centralised monitoring and management of plant operations, supported by strong processes, training and capability-building.
Concrete
Cement Additives for Improved Grinding Efficiency
Published
1 day agoon
February 20, 2026By
admin
Shreesh A Khadilkar discusses how advanced additive formulations allow customised, high-performance and niche cements—offering benefits while supporting blended cements and long-term cost and carbon reduction.
Cement additives are chemicals (inorganic and organic) added in small amounts (0.01 per cent to 0.2 per cent by weight) during cement grinding. Their main job? Reduce agglomeration, prevent pack-set, and keep the mill running smoother. Thus, these additions primarily improve, mill thru-puts, achieve lower clinker factor in blended cements PPC/PSC/PCC. Additionally, these additives improve concrete performance of cements or even for specific special premium cements with special USPs like lower setting times or for reduced water permeability in the resultant cement mortars and concrete (water repellent /permeation resistant cements), corrosion resistance etc.
The cement additives are materials which could be further differentiated as:
Grinding aids:
• Bottlenecks in cement grinding capacity, such materials can enhance throughputs
• Low specific electrical energy consumption during cement grinding
• Reduce “Pack set” problem and improve powder flowability
Quality improvers:
• Opportunity for further clinker factor reduction
• Solution for delayed cement setting or strength development issues at early or later ages.
Others: materials which are used for specific special cements with niche properties as discussed in the subsequent pages.
When cement additives are used as grinding aids or quality improvers, in general the additives reduce the inter-particle forces; reduce coating over grinding media and mill internals. Due to creation of like charges on cement particles, there is decreased agglomeration, much improved flowability, higher generation of fines better dispersion of particles in separator feed and reduction of mill filling level (decrease of residence time). However, in VRM grinding; actions need to be taken to have stable bed formation on the table.
It has been reported in literature and also substantiated by a number of detailed evaluations of different cement additive formulations in market, that the cement additive formulations are a combination of different chemical compounds, typically composed of:
- Accelerator/s for the hydration reaction of cements which are dependent on the acceleration effect desired in mortar compressive strengths at early or later ages, the choice of the materials is also dependent on clinker quality and blending components (flyash / slag) or a mix of both.
- Water reducer / workability / wet-ability enhancer, which would show impact on the resultant cement mortars and concrete. Some of the compounds (retarders) like polysaccharide derivatives, gluconates etc., show an initial retarding action towards hydration which result in reducing the water requirements for the cements thus act as water reducers, or it could be some appropriate polymeric molecules which show improved wet-ability and reduce water demand. These are selected based on the mineral component and type of cements (PPC/PSC /PCC).
- Grinding aids: Compounds that work as Grinding Aid i.e. which would enhance Mill thru-put on one hand as well as would increase the early strengths due to the higher fines generation/ or activation of cement components. These compounds could be like alkanol-amines such as TIPA, DEIPA, TEA etc. or could be compounds like glycols and other poly-ols, depending on whether it is OPC or PPC or PSC or PCC manufacture.
Mechanism of action — Step By Step—
- Reduce Agglomeration, Cement particles get electrostatically charged during grinding, stick together, form “flocs”, block mill efficiency, waste energy. Grinding aid molecules adsorb onto particle surfaces, neutralise charge, prevent re-agglomeration.
- Improve Powder Flowability, Adsorbed molecules create a lubricating layer, particles slide past each other easier, better mill throughput, less “dead zone” buildup.
Also reduces caking on mill liners, diaphragms, and separator screens, less downtime for cleaning. - Enhance Grinding Efficiency (Finer Product Faster), By preventing agglomeration, particles stay dispersed more surface area exposed to grinding media, finer grind achieved with same energy input, Or: same fineness achieved with less energy, huge savings.
Example:
• Without aid ? 3500 cm²/g Blaine needs 40 kWh/ton
• With use of optimum grinding aid same fineness at 32 kWh/ton 20 per cent energy savings - Reduce Pack Set and Silo Caking Grinding aids (GA) inhibit hydration of free lime (CaO) during storage prevents premature hardening or “pack set” in silos. especially critical in humid climates or with high free lime clinker.
It may be stated here that Overdosing of GA can cause: – Foaming in mill (especially with glycols) reduces grinding efficiency, retardation of cement setting (especially with amines/acids), odor issues (in indoor mills) – Corrosion of mill components (if acidic aids used improperly)
The best practice to optimise use of GA is Start with 0.02 per cent to 0.05 per cent dosage test fineness, flow, and set time adjust up/down. Due to static charge of particles, the sample may stick to the sides of sampler pipe and so sampling need to be properly done.
Depending on type of cements i.e. OPC, PPC, PSC, PCC, the grinding aids combinations need to be optimised, a typical Poly carboxylate ether also could be a part of the combo grinding aids
Cement additives for niche properties of the cement in concrete.
The cement additives can also be tailor made to create specific niche properties in cements, OPC, PPC, PSC and PCC to create premium or special brands. The special niche properties of the cement being its additional USP of such cement products, and are useful for customers to build a durable concrete structure with increased service life.
Such properties could be:
• Additives for improved concrete performance of cements, high early strength in PPC/PSC/PCC, much reduced water demand in cement, cements with improved slump retentivity in concrete, self-compacting, self levelling in concrete, cements with improved adhesion property of the cement mortar
• Water repellence / water proofing, permeability resistance in mortars and concrete.
• Biocidal cement
• Photo catalytic cements
• Cements with negligible ASR reactions etc.
Additives for cements for improved concrete performance
High early strengths: Use of accelerators. These are chemical compounds which enhance the degree of hydration of cement. These can include setting or hardening accelerators depending on whether their action occurs in the plastic or hardened state respectively. Thus, the setting accelerators reduce the setting time, whereas the hardening accelerators increase the early age strengths. The setting accelerators act during the initial minutes of the cement hydration, whereas the hardening accelerators act mainly during the initial days of hydration.
Chloride salts are the best in class. However, use of chloride salts as hardening accelerators are strongly discouraged for their action in promoting the corrosion of rebar, thus, chloride-free accelerators are preferred. The hardening accelerators could be combinations of compounds like nitrate, nitrite and thiocyanate salts of alkali or alkaline earth metals or thiosulphate, formate, and alkanol amines depending on the cement types.
However, especially in blended cements (PPC/PSC/PCC the increased early strengths invariably decrease the 28 day strengths. These aspects lead to creating combo additives along with organic polymers to achieve improved early strengths as well as either same or marginally improved 28 days strengths with reduced clinker factor in the blended cement, special OPC with reduced admixture requirements. With use of appropriate combination of inorganic and organic additives we could create an OPC with substantially reduced water demand or improved slump retentivity. Use of such an OPC would show exceptional concrete performance in high grade concretes as it would exhibit lower admixture requirements in High Grade Concretes.
PPC with OPC like properties: With the above concept we could have a PPC, having higher percentage flyash, with a combo cement additive which would have with concrete performance similar to OPC in say M40/M50 concrete. Such a PPC would produce a high-strength PPC concrete (= 60 MPa @ 28d) + improved workability, durability and sustainability.
Another interesting aspect could also be of using ultrafine fine flyash /ultrafine slags as additions in OPC/PPC/PSC for achieving lower clinker factor as well as to achieve improved later age strengths with or without a combo cement additive.
The initial adhesion property at sites of especially PPC/PSC/PCC based mortars can be improved through use of appropriate organic polymers addition during the manufacture of these cements. Such cements would have a better adhesion property for plastering/brick bonding etc., as it has much lower rebound loss of their mortars in such applications.
It is needless to mention here that with use of additives, we could also have cement with viscosity modifying cement additives, for self-compaction and self-leveling concrete performance.
Use of Phosphogypsum retards the setting time of cements, we can use additive different additive combos to overcome retardation and improve the 1 day strengths of the cements and concretes.
About the author:
Shreesh Khadilkar, Consultant & Advisor, Former Director Quality & Product Development, ACC, a seasoned consultant and advisor, brings over 37 years of experience in cement manufacturing, having held leadership roles in R&D and product development at ACC Ltd. With deep expertise in innovative cement concepts, he is dedicated to sharing his knowledge and improving the performance of cement plants globally.
Refractory demands in our kiln have changed
Digital supply chain visibility is critical
Redefining Efficiency with Digitalisation
Cement Additives for Improved Grinding Efficiency
Digital Pathways for Sustainable Manufacturing
Refractory demands in our kiln have changed
Digital supply chain visibility is critical
Redefining Efficiency with Digitalisation
Cement Additives for Improved Grinding Efficiency
Digital Pathways for Sustainable Manufacturing
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