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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

Cement Makers’ Margins To Fall Rs 50-75 Per Tonne Amid West Asia Conflict

Crisil Sees Margins Easing Despite Steady Demand

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Crisil said operating margins of Indian cement manufacturers are expected to decline by Rs 50-75 per tonne (t) this fiscal to Rs 925-950 per t due to higher input costs triggered by the West Asia conflict. The analysis covered 18 cement companies accounting for nearly 90 per cent of India’s domestic cement capacity and noted margins had improved sharply to around Rs 1,000 per t in fiscal 2026.

Crisil noted that the reduction would be driven mainly by higher power and fuel costs, which account for about 30 per cent of total costs, as petcoke and imported coal prices have surged amid geopolitical uncertainties. Freight costs, which account for about a quarter of total costs, are also expected to remain elevated because of higher diesel prices. The impact on profitability is likely to be more pronounced in the first half of the fiscal year before easing commodity prices moderate cost pressures later.

The rating agency said steady domestic demand and strong balance sheets should keep credit profiles stable despite the moderation in margins. Green energy currently accounts for 35-40 per cent of the sector’s total electricity consumption and is expected to partly cushion higher energy costs. Operating cash flows are likely to remain resilient, supported by projected 6-7 per cent growth in cement demand this fiscal.

Crisil highlighted that demand growth will be driven primarily by infrastructure spending, which meets about one-third of sector consumption, and by a nearly 18 per cent higher budgetary allocation for core ministries that should support project execution. Weaker rural housing demand amid pressure on agricultural incomes from a possible below-average monsoon may be offset by improved urban housing demand supported by favourable home-loan rates and a strong pipeline of Pradhan Mantri Awas Yojana-Urban projects. Ongoing capacity additions will keep capital expenditure elevated and may lift net debt to EBITDA to between 1.2 and 1.4 times from around 1.0 time last fiscal, though ratios are expected to remain healthy.

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Concrete

UltraTech Board Approves Rs 50 bn Fundraise Via NCDs

Company to issue half a million debentures for expansion plan

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UltraTech Cement’s board of directors has approved raising Rs 5,000 crore (Rs 50 bn) through non?convertible debentures issued in rupees.

The finance committee cleared a proposal to issue up to 500,000 fully paid, unsecured, listed, rated, redeemable, rupee?denominated, non?convertible, non?cumulative debentures of Rs 1 lakh each (Rs 0.1 mn each), aggregating to the Rs 5,000 crore programme.

As of June 2026 the firm reported net debt of Rs 15,875 crore (Rs 158.75 bn) and said its capacity expansion projects under execution are backed by capital expenditure of about Rs 17,000 crore (Rs 170 bn) over the next two to two?and?a?half years.

UltraTech spent Rs 9,500 crore (Rs 95 bn) on capital expenditure in financial year 2026 and in April the group crossed 200.1 mn tonnes per annum of domestic grey cement capacity and 205.5 mn tonnes per annum of global capacity.

The chief financial officer indicated the company would take consolidated capacity beyond 242 mn tonnes per annum, with grey cement capacity reaching 212.7 mn tonnes per annum by the end of financial year 2027. He noted the net debt?to?earnings before interest, taxes, depreciation and amortisation ratio stood at 0.87 times as of June 2026 and the company was confident of ending financial year 2027 with the ratio below one time.

In the first quarter of financial year 2026?27 UltraTech’s net profit attributable to owners rose 16.8 per cent year?on?year to Rs 2,599.3 crore (Rs 25.993 bn) and revenue from operations increased 15.9 per cent to Rs 24,648.20 crore (Rs 246.482 bn). The board approval is expected to complement internal cash flows as the company advances its expansion programme.

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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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