Economy & Market
2015 Forging Ahead
Published
11 years agoon
By
admin
The expected higher government spending on infrastructure and a robust growth in housing sector will trigger the demand for cement in 2015, a year that is also expected to be another year of consolidation in the industry.
The Indian cement industry is the second largest market after China accounting for about eight per cent of the total global production. It had a total capacity of over 360 million tonne (mt) as of the financial year 2013-14. The industry grew at a rate in the previous decade, registering a compounded growth of about eight per cent. The housing sector is the biggest demand driver of cement, accounting for about 67 per cent of the total consumption, followed by infrastructure – 13 per cent; commercial construction – 11 per cent; and industrial construction – nine per cent. To meet the rise in demand, cement companies are expected to add 56 mt capacity over the next three years. The cement capacity in India may register a growth of eight per cent by end of next year to 395 mt from the current level of 366 mt. It may increase further to 421 mt by the end of 2017. The country?s per capita consumption stands at around 190 kg.
The market scenario
The cement production remained subdued during FY14 growing by a modest three per cent during April-March 2014 as against 7.7 per cent in the corresponding period of the previous year. The cement demand remained weak primarily due to weak demand from end-user industries. Delays in environmental clearances for industrial and infrastructure projects and unavailability of sand in some states contributed to slow growth. In fact, as against year-to-date growth of three per cent, cement production registered an even lower growth of two per cent during Q3 FY14 and 1.2 per cent in Q4 FY14 which are seasonally strong quarters for the cement industry, as per a recent ICRA report.
Companies are taking steps to optimise their overhead costs, improve efficiency and lower consumption norms. They have increasingly started using pet coke and lignite instead of expensive coal as a source of fuel and utilising waste heat gases to produce power. Steps are also being taken to optimise power consumption norms and reduce the power consumed per tonne of cement. Further, companies are focusing on using higher proportion of additives such as fly ash and cement to bring down their cost of production. As a result, the power and fuel cost as well as raw material cost has seen some easing.
Growth and demand outlook
Highlighting the industry scenario, Arvind Pathak, Chief Executive Officer, Reliance Cement Company, had this to say. ?With cement capacity touching ~390 million tonne and likely demand of 275 million tonne in 2015, there is expected to be a surplus capacity of ~115 million tonne during the year. Industry is projected to operate at a rate of 70-72 per cent of capacity utilisation in 2015.?
On the expected CAGR growth, Pathak says, ?With expected pick up in GDP growth rate and considering a multiplier of 1.2, cement demand is expected to grow at the rate of 7-8 per cent during FY15-16.? On the demand front he observes, ?Demand is mostly expected to come from government-backed projects in 2015. Concretisation of roads, dedicated freight corridors, development of smart cities, metro rail projects, construction of toilets under ?Swacch Bharat Abhiyan? are the major thrust areas the government is going to focus on which will drive cement consumption from 2015 onwards. Further, with new rules on funding for infrastructure projects under 5:25 rule, and revival of many stalled projects, the overall demand is expected to be high.? He adds, ?With easing of rules for FDI in real estate sector and the likely reduction of interest rates, commercial and real estate sector are also likely to drive cement consumption.? According to him, the likely demand mix in 2015 is expected to be housing (60 per cent), infrastructure ( 22 per cent) and commercial (18 per cent).
Vinod Juneja, Managing Director, Binani Group of Industries, ups the growth curve further. According to him, with various projects and expansion plans both by the state and central governments, the cement industry will grow by 10-11 per cent in the coming financial year. The demand will also grow high in the coming years. It is estimated that infrastructure will drive demand in the coming years from airports, highways and railway activities. Juneja adds, ?The National Highways Authority of India (NHAI) has sought to end all its pending issues and litigation regarding land acquisition, cost over-run etc; NHAI and Airports Authority of India (AAI) have got big expansion plans both in metro and non-metro sectors, hence cement market will grow minimum 10-11 per cent.? He further adds, ?The decrease in the housing loan interest rate and the increase in the tenure of the loans repayment will further boost the cement sector leading the cement industry to a sunshine industry.?
VP Sharma, Managing Director & Chief Executive Officer, ABG Cement, confidently avers, ?I am bullish about cement demand going high. The important sectors which will drive the cement demand are infrastructure and housing. The various initiatives taken by the present government, particularly in the areas of concrete roads, railways, ports, smart cities, and low-cost housing will drive the demand. Towards the end of 2015, demand for cement should be close to 8-9 per cent, which will become double-digit by the end of 2015.? Sharma adds, ?The year 2015 will see excess supply of cement to the tune of 50 to 60 million tonne. But consistent increase in demand will help us to absorb excess supplies going forward.?
Sharma cements the arguments, ?From the time the present government came to power, they have emphasised on building the infrastructure, i.e., concrete roads, railways, ports and low-cost housing. This will certainly increase cement demand. Recently, the Minister for Road Transport and Highways and Shipping, Nitin Gadkari quoted that all central road projects will be done by concrete. This would result in increase in cement demand.?
Zeroing on the demand scenario, Ashutosh Rampal, Vice President, Marketing, KJS Cement, Maihar, says, ?The cement demand in FY15-16 will be driven by government spending on public infrastructure, in spite of the newly elected government?s pressing need to curb fiscal deficit. This has been clearly stated policy line. Private enterprise has a low share in nation building and the much touted Public-Private-Partnership (PPP) has not gathered mass, thanks to the economic downturn and policy paralysis of the UPA government. Public infrastructure spending by the government is expected to lead the growth in cement consumption in FY15-16, till the PPP model becomes robust and the private companies start taking interest in the infra projects. Retail housing off take was sluggish last year due to high interest rates and fragile economic stability. This is expected to change for better in FY15-16 due to relaxation of land utilisation norms and easing interest rates. The ambitious NCR-Kandla industrial freight corridor is awaiting rejuvenation by Japanese funding who in turn are treading cautiously due to ambivalence of Indian Babudom. To conclude, the industry will do well subject to the government taking effective steps to rev up the system.?
Highlighting the ground reality, Rampal adds, ?The NDA government has promised government expenditure on building public infrastructure as a means to boost the income generation in the economy. In addition to this, the easing of land acquisition norms for key infrastructure projects and government focus on manufacturing and infra industry is expected to boost the demand scenario. Since no significant new capacity is coming up, the year is expected to be good for cement industry.PPP projects are stuck because of cost escalation and poor availability of long- term low-cost funds. Renegotiation of stalled PPP infra projects, especially those of NHAI and take off of Indo-Japanese NCR-Delhi-Kandla freight corridor require urgent attention to boost the cement and steel consumption across the country.? The demand outlook for FY15 remains relatively more favourable given the new government?s focus on revival of infrastructure and investment spending. The growth in FY15 will also be supported by a low base as cement production grew by merely three per cent in FY14. During April-May 2014, cement production has grown by 7.7 per cent YoY as against 3.9 per cent in the corresponding period last year. Pick-up of real estate and industrial activity, infrastructure projects and overall investment cycle will remain critical for the sector over the near-term.
As per ICRA report, the initiatives announced to promote infrastructure and housing investment in Union Budget are likely to have a positive impact on cement demand. Increased provision under Rural Housing Fund and interest deduction on housing loans will boost urban and rural housing demand and in turn, demand for cement. Further, government measures to promote investment in ports, roads, airports and other infrastructure projects are also likely to support cement demand. Cement companies are also likely to benefit from the increase in long term funding availability for infrastructure projects which is likely to facilitate more investment in these sectors.
2015: A year of further consolidation
According to Sharma, 2015 will be another year of more consolidation in the cement industry. He says, ?The bigger players will look for consolidation as we have seen in 2014 to have better price control. The prices may stabilise towards end of 2015. Our company will work towards increasing the capacity utilisation rather than any capacity addition in the present circumstances. However, based on market scenario, we may look towards end of 2015 for any capacity addition.?
Pathak also is on the same page. According to him, consolidation in cement industry will continue with non-serious and marginal players exiting the market and entry of large multinational cement players. He adds, ?Our current plan of capacity expansion of 10 million tonne is on track (5 million tonne in Maihar, Madhya Pradesh and another 5 million tonne in Yavatmal, Maharashtra). This will take our total installed capacity to 15.5 million tonne. However, immediately in 2015, there is not going to be any new capacity addition.? Pathak further adds, ?With increased focus of the government on infrastructure and real estate development, demand is expected to be better in 2015. This, coupled with slowdown in capacity additions, will enable industry to pass on cost increases and boost profitability.
Says Rampal, ?I clearly see consolidation of industry. The quality players will take over the smaller inefficient and high-cost players with weak cash flows. Ultratech Cement, Shree Cement and Bharat Dalmia Cement will straddle the space of mergers and acquisitions. Allocation of coal blocks and increased capacity utilisation of government undertakings will help reduce the manufacturing costs. FY15-16 will see a fillip in demand and the market prices. This in turn will create enterprise value and bolster balance sheets for cement companies.? He adds, ?We are planning to increase capacity to 5 mtpa shortly by adding another 2.10 mtpa clinkerisation unit at Maihar with forward grinding units in Bihar, Odisha and Uttar Pradesh. By this time, our own railway siding would be functional, thereby helping us in evacuation of cement.?
Pricing pressures
During the past two years the industry witnessed high operating costs, including all major cost heads such as raw materials, energy and freight. The steep depreciation of the rupee and hike in rail freight and diesel prices further aggravated the concerns. Cement manufacturers still continue to be under the pressure of rising input costs. According to ICRA report cement manufacturers witnessed significant increase in freight costs over the past two years, due to increase in freight rates by railways, consistent increase in diesel prices and increased dependence on costlier road transport due to shortage of railway wagons. Apart from this, the prices of key raw materials limestone and gypsum have also increased. Further, increase in domestic coal prices by CIL in May 2013, declining availability of low cost linkage coal have increased power and fuel costs. However, declining international coal and pet coke price have provided some benefits to Indian cement companies; but the extent of this benefit has partly been offset by rupee depreciation.
According to Rampal, cement prices directly depend upon three parameters: the capacity expansion that disturbs the equilibrium of demand-supply in a region; the quality of players; and the difference in variable cost of production of players. He says, ?Firm prices and the capacity utilisation of 85-90 per cent in FY15-16 is expected to stay for next 2-3 years.?
Pathak explains, ?With demand picking up and rate of new capacity additions slowing down, industry would be able to pass on the cost increase to consumers and cement prices are likely to grow in the range of 5-7 per cent in 2015.?
In many regions prices have gone over Rs. 300 per bag. Says Juneja, ?Cement prices have already reached above Rs 300 per bag which includes excise, octroi, sales tax, primary and secondary transportation and handling charges.? Sharma observes, ?There will be pressure on the prices as in the past. However, focus will be to keep the current price stable and increase volumes.?
From the dealers point of view, Rahul Gandhi, Director, Mahaveer Building Material, had this to say. ?Currently, the basic issue is the price, which has gone up drastically in the last couple of months. At the same time, there is no change in sales margins. The government has to introduce some policy initiative by setting a minimum earning margin for the dealer and the margin should be according to the price, if the price is increased, the margin should be revised accordingly. This will help the dealer stay in the business in difficult times. GST will be a good initiative as the anomalies in tax structure will go and it will be uniform.? Ravi Lunawat, Partner, Lunawat Agency, supports the view. According to him, from the government, GST is a major initiative everybody is waiting for. He says, ?Last year when LBT started, it reduced the business of dealers in cities because that time the market was closed for almost two months and the builders bought cement from other markets. Once the GST starts, the price will be uniform everywhere, which will be good for us.?
SR Agarwal, Proprietor, Kirtee Enterprises is also on the same page. ?The Central government?s initiative to introduce GST is a good move for dealers,? he says. He further explains, ?Before LBT, the rate of cement in the rural area was different from city areas, which makes a difference of Rs 10-20 per bag. And now after the authorities upgraded octroi to LBT, the transport system is very fast and the material handling is also very easy. And the material is distributed at the same rate in the rural and urban areas. GST will definitely make the difference as it will benefit the complete value chain of the company, trader, transporter and the end-user. The overall procedure will be transparent.?
According to ICRA report, cement prices in North India had seen a significant hike of Rs 50 per bag during Q4 FY14, driven by temporary supply side disruptions following closure of two cement plants of Binani Cement with a total capacity of 6 mtpa in Rajasthan. The average wholesale cement price in Delhi increased from Rs 275 per bag (50 kg) in January 2014 to Rs 323 per bag in March 2014. Similarly, the average wholesale cement price in Chandigarh increased by Rs 58 per bag between January-March 2014 to Rs 334 per bag. The prices in certain parts of Western India, particularly Gujarat, were also impacted by the aforementioned shutdown. Wholesale prices in Ahmedabad market increased by Rs 47 per bag to Rs 300 per bag between January-March 2014. However, cement prices in these regions came under pressure in April-May 2014, following resumption of cement supply from Binani. Wholesale prices declined by Rs 15-30 per bag in Delhi, Ahmedabad and Chandigarh between April-June 2014. Prices in Mumbai market continued to remain under pressure and declined by Rs 20 per bag during January-May 2014 due to transfer of cement from Southern markets. However, with rise in prices in South in June 2014, the wholesale prices in Mumbai also increased by Rs 5-10 per bag in June 2014. Cement prices in Eastern markets increased by Rs 20-25 per bag during January-June 2014 as cement companies raised prices in the busy season to recover the rising costs.
South India remained the only major region which saw consistent decline in prices by about Rs 10-30 per bag during January-May 2014 due to overcapacity, disruption of production discipline and low demand during April-May 2014. However, cement companies raised prices significantly by about Rs 70 per bag in June 2014 to pass on the rising costs. However, the real estate companies and builders association have protested against such a steep price hike. During April-June 2014, the average price in Delhi was higher by 10 per cent, 22 per cent higher in Ahmedabad, 7 per cent higher in Chandigarh as compared to prices in the corresponding period of the previous year. Prices in Mumbai are flat while those in South and certain parts of East India are lower on YoY basis.
Great expectations
Rampal spells out the expectation from the government. He says, ?NDA government is already sending out message that it wants to kickstart manufacturing to facilitate the growth of labour income. Simplifying land acquisition, labour reforms and simplifying federal taxation through implementation of GST across the nation are the steps industry has already welcomed. Specifically, for the cement industry, the government spending will directly increase the cement demand, followed by take-off of retail housing and PPP infra projects. Government must analyse and find cure as to why infra companies are exiting from the BOT to EPC models. Is the policy environment or the trust missing for the private capital to consider incubating in these projects?? He adds, ?The Railways can facilitate the industry through preferential allocation of cement rakes (at the factory head) and raw material rakes (at the ports).?
According to Pathak, for increasing demand curve post initiation of different initiatives, government should now focus on implementation of its dream projects like 100 smart cities, bullet train and metro rail projects, house for every citizen by 2022, concretisation of national highways, etc, which will drive cement consumption. He further points out, ?To attract investments in railway infrastructure, government need to review the ?Own your Wagon Scheme? and make it more attractive for the industry players. Enough focus should be given to develop inland waterways, which would reduce the burden on existing rail and road network and also bring down the logistics cost.? As far as availability of power is concerned, Pathak adds, ?The government needs to focus on resolving the issues being faced by power sector by bring in clarity on coal auctioning, land acquisition bill, etc. A lot of power projects that are stuck/stalled due to various issues should be revived.?
Tax issues
Speaking on the issues related to different tax and lack of uniform tax structure, Pathak says, ?Cement is one of the highest taxed commodities in India. The total taxes and levies include royalties and import duties on input materials, electricity duties, sales tax, and excise duties account for one-third of the overall price of cement. Taxation rates in India are almost double of China. Government needs to focus on resolving raw materials and logistics issues to help cement sector getting clarity on policies. Clear roadmap for improvement in infrastructure sector is needed to help generating cement consumption in the country. Implementation of GST should start with more clarity on tax structure. The government should also reduce some of the taxes by providing it a status of core infrastructure sector.?
Explains Rampal, ?Out of the market price of a bag of cement 35-40 per cent is taken away by VAT, excise and railway freight (cost of manufacturing and limestone being extra) putting a massive burden on the industry. In spite of being a priority sector for nation building, cement taxation in the country is at par with the prohibitive industries worldwide.? Rampal suggests, ?Reduction in excise duty by 3-4 per cent will be able to sustain the industry longer. Government should study the possibility of subsidising rail freight for food, cement and steel which will directly boost the movement and clear up all logistics bottlenecks in addition to keeping the inflation of essential commodities low.?
Juneja avers, ?Until and unless GST is implemented, there cannot be effective interstate movement due to cascading effect of multiple taxes. We are awaiting the Budget on 28 February 2015.? Sharma mirrors the observation. According to him India is one of the countries where there is higher tax structure in cement sector. Government has to rationalise excise duty, royalty and sales tax to help the sector to grow.
Raw material availability
According to Rampal, raw material availability of coal and gypsum is not a constraint. However he adds, ?The limestone availability is fast becoming a constraint as applications for mining lease for limestone are stuck either at the state level or at the central ministry level due to environmental or social impact assessment issues.
Government must speed these up through e-governance initiatives.? Says Sharma, ?I don?t see much action from the present government in this area; however, cement industry has to improve its raw material inventories, particularly limestone. Moreover, government has to speed up with coal block allotments.?
Sharma further adds, ?With increase in demand, pressure will be on logistics. We are yet to see action from the new government in this area.? As far as the availability of power is concerned, he says, ?Most of the cement plants are self-sufficient in power with captive power plants. We will require continuing import of coal due to the current uncertainties in the domestic coal supply. Cement industry is importing coal also due to favourable coal prices.
However, the industry has to focus more on alternative sources of power from waste heat etc to reduce energy cost.?
Moving forward
Cement demand is closely linked to the overall economic growth, particularly the housing and infrastructure sector. With the Government of India providing a boost to the infrastructure and various housing projects coming up in urban as well as rural areas, the cement sector has enough scope for development in the future. The weakness in the international crude oil prices and other commodities should help bring costs under control and improve profitability of the sector. If inflation comes under control, a likely lowering of interest rates would be a big positive for the cement sector. Despite the current challenges that dent the growth of the industry, the long term drivers for growth remain intact. Higher government spending on infrastructure, robust growth in rural housing and rising per capita incomes are likely to augur well for the cement sector.
Agith G Antony
2015 is expected to be another year of market consolidation. Cement companies expected to add 56 mt capacity over the next three years. The installed capacity may increase to 421 mt by the end of 2017. Demand is expected to grow at a rate of 7-8 per cent during FY15-16. The year 2015 will see excess supply of cement to the tune of 50-60 mt.
Government needs to review the ?Own your Wagon Scheme?.
Develop inland waterways, which would reduce the burden on existing rail and road network.
GST implementation should start with more clarity on tax structure. Government has to speed up with coal block allotments.
Concrete
Refractory demands in our kiln have changed
Published
3 days 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
3 days 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
3 days agoon
February 20, 2026By
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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
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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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