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EPC concept could be the future when it comes to retrofit projects

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Manoj Thakur Head – Mechanical, Penta India Cement and Minerals.

We at Penta would like to participate in the growth of our clients in cement plants by picking the right and most effective solutions for them, assures Manoj Thakur, Head – Mechanical, Penta India Cement and Minerals. Excerpts from the interview…

How important is predictive maintenance?
In the past few years, capacity utilisation of cement plants have been low in the range of 60-70 per cent. As a result, the machinery was not stressed to its maximum potential and plants also got more time to take care of breakdowns. It is expected that with the Government of India providing enough scope in infrastructure development, there will be a rise in demand. Once cement plants are pushed to achieve 90-100 per cent of their design capacities, there will be no more cushion available for unexpected breakdowns or shutdowns. This is when predictive maintenance will start playing an important role.

Indian cement industry has realised that implementing the predictive maintenance leads to a substantial increase in productivity. Concept of online monitoring is well understood and accepted by cement manufacturers wherein the state of health of a machine is known before taking it for the maintenance. In recent years, many examples of predictive maintenance have been seen, for example, many existing storage silos and structures have been taken for additional strengthening based on the results from non-destructive tests, process fans have been taken for balancing on the results from vibration monitoring tests etc. Not only major players but even medium players use regular services of consultants for carrying out predictive maintenance.

What are the challenges in retrofitting a cement plant?
The most critical challenge is that cement plant retrofits are expected to be carried out without affecting the production. In consequence, the cement players prefer technologies that require the least downtime. However, there are very few contracting agencies to take up such challenges. Another challenge is the plant layout. Many old plants were designed with no provision for the future expansion and thus retrofit projects could not be carried out. At some plants, projects were executed at huge costs for layout reasons. Though Indian cement industry is very traditional, EPC concept could be the future of it when comes to retrofit projects, keeping the existing plant in operation or with very minimum time required for the interface. Keeping pace with newer and compact technologies is essential to accommodate retrofit projects in poor layouts. This is where smart engineering comes to play.

Consulting firms like Penta excel in these niche areas and have the expertise to work out customised solutions for cement plants.

How does one decide between retrofitting and switching completely to a new system?
Penta usually assesses the potential of an existing old plant for the possibility of capacity increase before suggesting retrofit solutions. For capacity increases on a larger scale, letGC?s say doubling the plan capacity, switching to a complete new system becomes necessary. However, execution of a new cement plant has a long gestation period right from the day of conception.

There are various reasons in India taking too much time for pre-project activities including approval and procurement of land, acquisition of mines, access to coal reserves, environmental clearances, etc. Once these pre-project requirements have been met, project-related activities take their routine pace to accomplish the job. Retrofit solutions are sometimes seen as the compromise in these difficult situations.

Which type of retrofit can have greater impact on production efficiency?
Each type of retrofit, whether enhancing production efficiency, electrical, mechanical or monitoring and automation, has its respective justifications and goals. It would be unfair to compare them as they are apples and oranges. Of course, it ultimately results in improving the plant availability. Moreover, upgradation in the mechanical domain may have to combine with a retrofit in electrical and automation domain. To choose, it greatly depends on the condition and requirement of different areas i.e., mechanical, electrical and control and automation.

To achieve the benefit of a retrofit in totality, it needs to be the combination of all. A mechanical retrofit alone cannot enhance the production efficiency if existing motor control bucket, panel board or switchgear are of older designs. Likewise, retrofit for monitoring and automation are inadequate if existing machinery/equipment do not keep margin for the increased outputs. Hence, it could be advisable not to implement short-term solutions in one domain without exploring the implications in another.

How does one keep pace with the advancements in sub-systems like automation?
Cement manufacturers need to assess the need of such upgrades with a close look at their current plant availability. A balance can be achieved with regular maintenance schedules for existing equipment and opting for necessary automation upgrades. World-class suppliers develop and come up with newer technologies in automation year after year. Automation upgrades certainly help in improving the plant efficiency by various automated solutions. However, the selection of upgrades should be need based and in keeping with the capabilities of the hardware as well as the skill level of the plant personnel.

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Concrete

Lokesh Lays Stone For Rs 31 Billion Cement Unit In Kadapa

Line-2 expansion to make Kadapa a major cement hub

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Andhra Pradesh Education and IT Minister Nara Lokesh on Wednesday laid the foundation stone for the Line-2 expansion of Dalmia Bharat Cement at Chinnakomerla village in Mylavaram Mandal in Kadapa district. The project carries an investment of Rs 31 billion (bn) and is slated for completion by the third quarter of the financial year 2028. The expansion is intended to boost industrial growth and employment generation across the Rayalaseema region.

Once commissioned, the Kadapa facility will become Dalmia Bharat’s largest integrated cement manufacturing ecosystem in southern India, creating over 1,000 direct and indirect jobs and opening new business avenues for regional micro, small and medium enterprises and transport operators. Lokesh said the expansion signalled growing corporate confidence in the state and reflected the practical ease of doing business that secured repeat investment.

He placed the project within the government’s wider economic targets and recalled the Yuvagalam padayatra commitment to generate two million (mn) jobs within five years, noting that the state would cultivate talent while industry created opportunities. Lokesh highlighted Andhra Pradesh’s competitive pursuit of major manufacturing accounts, mentioning past successes and a personal initiative to engage global investors when persuading them to anchor expansion in the state.

The plant will leverage Kadapa’s abundant limestone reserves to scale production and sustainability. Clinker capacity is planned to rise from two point five million tonnes per annum (mn tpa) to six point one mn tpa, while overall cement output will increase from three point six mn tpa to nine point six mn tpa. The unit is designed to operate on over eighty per cent renewable energy and deploy waste heat recovery, zero liquid discharge, water recycling and advanced AI systems to optimise efficiency. Industries Minister TG Bharat, BC Welfare Minister S. Savitha and Jammalamadugu MLA C. Adinarayana Reddy attended the ceremony.

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Concrete

Cement Prices to Stay Flat in Q2 FY27 as Costs Squeeze Margins

HDFC Securities warns monsoon slowdown and higher fuel costs

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HDFC Securities has said the cement industry is unlikely to register a sequential increase in prices in Q2 FY27 as monsoon-related demand moderation coincides with rising fuel and packaging costs that will squeeze margins. The brokerage observed that price gains remained modest, with increases of two to three per cent quarter-on-quarter across regions, and noted subdued offtake in May with improvement in June as a delayed monsoon supported construction activity. The brokerage added that modest pricing gains so far have been insufficient to offset the input cost escalation.

The report stated that input cost pressures intensified in Q1 FY27 owing to the West Asia conflict, which pushed up coal and pet coke prices and is expected to keep fuel costs elevated, with a likely peak in Q2 FY27. It assessed that total variable costs, including packing, could rise by around Rs 150 per t quarter-on-quarter and that lower offtake and seasonal operating deleverage could further raise operating expenditure by about Rs 50 per t quarter-on-quarter.

Overall, cement prices were estimated to remain flat in Q2 FY27 as monsoon-led demand weakness offsets limited upside in realisation, and rising fuel costs alongside seasonal deleverage were expected to compress industry margins by over Rs 100 per t quarter-on-quarter to below Rs 880 per t. The brokerage indicated that the combined impact of energy inflation and higher packing expenditure would be the principal drivers of margin contraction in the near term. HDFC Securities projected a recovery in margins in H2 FY27 should the West Asia turmoil subside and energy and packing costs cool off.

The brokerage expressed optimism on long-term demand fundamentals and said improving realisation together with an anticipated cost cool-off should support a margin rebound from H2 FY27 onward, underpinning favourable industry prospects over the medium term. Its outlook rests on monsoon normalisation and a decline in imported fuel prices in the second half of the fiscal year.

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Concrete

Dalmia Bharat Begins Rs 31 Bn Green Cement Unit in Kadapa

New Andhra Pradesh plant to add 9.6 MTPA cement capacity by FY28

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Dalmia Bharat Limited recently laid the foundation stone for its second manufacturing unit at Kadapa in Andhra Pradesh. The company will invest Rs 31 billion in developing the next-generation integrated cement manufacturing facility.
The foundation-laying ceremony was attended by Nara Lokesh, Andhra Pradesh Minister for Information Technology, Electronics and Communications, Real-Time Governance and Human Resources Development, along with Puneet Dalmia, Managing Director and Chief Executive Officer, Dalmia Bharat, senior government officials and company representatives.
Scheduled to be commissioned by the third quarter of FY28, the Kadapa unit will become Dalmia Bharat’s largest integrated manufacturing facility in southern India. It will have a clinker production capacity of 6.1 million tonnes per annum and a cement manufacturing capacity of 9.6 million tonnes per annum.
The facility is designed to produce what the company describes as one of the world’s greenest cements. It is also expected to generate approximately 1,000 direct and indirect employment opportunities while supporting local MSMEs, transporters, contractors and service providers.
Lokesh said the investment reflected Dalmia Bharat’s confidence in Andhra Pradesh and aligned with the state’s objective of promoting sustainable industrialisation, job creation and technology-led economic growth.
Puneet Dalmia said the project represented the company’s long-term vision of developing low-carbon cement manufacturing assets. He added that the facility would establish new benchmarks in operational efficiency and sustainability while supporting India’s infrastructure and environmental goals.
Dalmia Bharat will also expand its regional community development programmes in education, healthcare, skill development and welfare through its DIKSHa and Gram Parivartan initiatives.
The company currently has an installed cement manufacturing capacity of 54.7 million tonnes across 19 manufacturing units in 12 states. It is also the first cement company globally to commit to the RE100, EP100 and EV100 initiatives.

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