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2015 will be another year of more consolidation in the cement industry where quality players may take over smaller inefficient and high cost players with weak cash flows.
As per reports, the results of the government?s initiatives have already started reflecting in the growth of the cement industry to 8.5 per cent in the first eight months of the current fiscal. If this momentum gains further, the cement demand will again pick up a double digit growth. Even with 10 per cent growth, this will accelerate the cement production by over two-and-a-half times, to 665 MT in the next ten years, i.e. by 2024, which would require a cement capacity of around 750 MT at 90 per cent utilization. This will call for an additional investment of about Rs 2.5-3 lakh crore for creating another 390 MT of cement capacity. Concretisation of roads, dedicated freight corridors, development of smart cities, metro rail projects, are some of the major thrust areas of the government, which will drive cement consumption in coming year. At the same time, as per industry sources, 2015 will be another year of more consolidation in the cement industry where quality players may take over smaller inefficient and high cost players with weak cash flows. Impact of consolidation According to Manoj Misra, Chairman and Managing Director, Cement Corporation of India, large cement players in India will use the acquisition route to enhance capacity and market share; and in the long term smaller plants will not be able survive. Says Misra, ?The top five players will hold 70-80 per cent of capacities and market in the next decade; there is expectation that more global players would come into India as they would like to get a foothold in the market as the demand will propel in the emerging economies.?

Says Prashant K Tripathy, Group Head – Manufacturing, Dalmia Cement Bharat, Cement industry has experienced more change in the last decade than its entire history. With the demand in the cement sector poised to grow over 9 per cent in the next two years, increase in prices is a huge concern. Thus, consolidation helps in stabilizing prices? Tripathy adds,?There has been and increased focus on infrastructure and development with growth in demand in housing and industrial sector, with growing Indian GDP. Entry of foreign cement players resulted in the consolidation of the fragmented industry. Large number of mergers and acquisitions were witnessed in recent years.?

Explaining to what extent this is going to alter the market structure Misra adds, ?To better serve their markets, companies will combine their operations and streamline their offerings. Efficiencies of scale allow businesses to reduce costs and prices and ease decisions for potential investors. As a business segment ages and matures, numerous companies may find themselves offering the same products, at roughly the same price and quality, to the same market. The competition drags down sales and profits, while businesses struggle to innovate and remain viable. The answer in this situation is market consolidation: the takeover of the small by the strong through outright purchase or merger. By merging or acquiring, combining operations, closing factories and reassigning workers, a firm can reduce costs and improve profit margins. In addition, cutting redundant administrative workers and combining sales and marketing divisions can significantly lessen labour and head-office costs. This action reduces competition and tends to boost prices. That?s not so good for the consumer, perhaps, but it?s a natural cyclical development in the business realm.? He further adds, ?Global giants like Holcim and Lafarge have joined hands and their estimated capacity in Indian market is now at 65 million tonne. Indian giant Aditya Birla is also in the mode of acquiring and merging with small units throughout India to maintain its leadership position. AB group has also expanded its capacity to 59 million tonne, but has plans to enhance further to maintain its leadership. Hence the cement industry will be controlled mainly by two giants. The market will be dictated by the two groups in matter of pricing and supplies.?

Speaking about the positive impact of consolidation in the cement industry, Arvind Pathak, Chief Executive Officer, Reliance Cement Company says, ?Consolidation being witnessed in the industry is good and is in the right direction. Serious players increasing stakes in terms of manufacturing capacity is a good indicator of long term growth and stability for cement markets. Large players given the available financial headroom and scale of operation are expected push the industry towards operational efficiency and better service quality to the consumers. Consolidation will ensure not only healthy competition but also high level of quality and service assurance to the end consumers.? He adds, ?The Indian cement markets are poised for unprecedented growth on the back of both infrastructure as well as growth in the housing sector. This can be witnessed in the structural changes in the Indian economy being proposed by the present government. Reliance Cement is gearing up accordingly to cater to the upcoming demand and our capacity addition plans are in line with the expected demand in the coming years.?

Says Noopur Jain, Assistant Vice President, ICRA, ?Of late, there has been some activity of acquisition in cement industry. Indian cement industry is still fragmented and can see some consolidation of assets to synergise. But I have not seen any exits by most companies except those who are facing liquidity crunch. More than consolidation, the more important input in pricing will be the demand-supply because although some sort of consolidation is happening by way of acquisitions, it is not changing the structure of the industry.?

Capacity utilization
After expanding at an average rate of 8-10 per cent in the last three decades, the cement growth in 2013-14 had dwindled to 3 per cent, the lowest in the last 20 years, due to slowdown in the economy and deceleration in the construction activities. With cement production at 256 MT against a capacity at 360 MT, the cement industry was saddled with an idle cement capacity of over 100 MT valuing a colossal dead investment of over Rs 70,000 crore at today?s cost. What will be the impact of lower capacity utilization on the industry as a whole? Says Tripathy, ?We are expecting that the capacity utilization in 2015-16 will be better than current financial year, giving a positive impact on the company bottom-line. The advantages of consolidation have been witnessed for over a decade now since sustained merger and acquisition activity in cement has led to much improvement in profitability and valuations in the sector.? He adds, ?During 2007-12, the cement capacity in India almost doubled to around 300 MTPA. Our capacity utilisation has adequate margin in the Tamil Nadu and AP plants therefore we may be able to fulfill the market demands. Our cement plants in India have grown manifolds in terms of capacity; we are also acquiring some new plants to increase the volume and expand further.?

?While it may be correct when we say the cement industry is projected to operate at 70-75 per cent in the near terms – a closer look at the expected regional performance is required. The central region where Reliance Cement is currently present is expected to operate far better than other areas. Our expectation is that the capacity utilisation in this region would be close to 90 per cent if not more and hence we foresee a positive impact on our performance,? says Pathak. He adds, ?We have current capacity of 5.8 MTPA, operating from four locations – Maihar (Satna), Kundanganj (Raebareilly), Butibori (Nagpur) and Durgapur. We have another 10 MTPA in the immediate pipeline. Capital expenditure is expected to be in the range of Rs 7,000-7,500 crore.?

Cement industry was at its all-time low in FY 14 with a marginal growth by 3 per cent and there was an excess capacity. Now we see a reversal in that trend as the demand has grown. In the first eight months of the current FY, the demand has grown by 8.5 per cent as compared to 3 per cent last fiscal. Says Jain, ?In the previous fiscal, since there was excess capacity existing, there was a slowdown in fresh capacity additions. With the demand is growing now, we expect the excess capacity to be absorbed by the industry in the next 2-3 years and expect the utilization level to improve in medium term from around 72 per cent to 78 per cent by 2017. As per industry trends, the capacity addition in the next two years is going to be in the range of 20-25 million tonne per annum. However, some of these projects will be running with delays and may face execution challenges or they may come up in the middle of the year with the effective capacity addition. I think the demand improvement will be the key for the overall utilization level to improve in future. Also the stable government at the Centre has taken steps to speed up the execution of various projects. All these are going to materialise in the coming 2-3 years.?

Jain adds, ?Although the utilisation level will improve from the current level of 70-72 per cent to 78-80 per cent in a couple of years, it will be still lower than what we saw in the peak of FY 06 and FY07 when India was witnessing a very high growth rate. That time the utilisation level touched 90s and even 100 per cent.? According to him even though there is a surplus capacity in the system, most of the cement players will keep announcing new capacities. This is because many existing plants are very old and they won?t be so efficient. So the players will set up new facilities to increase operational efficiency.

Speaking about the demand scenario, Misra says, ?The metro rail projects in Mumbai, Bangalore and Hyderabad and the expansion phase in Delhi drive cement demand in this segment. Concrete roads and national highways, rural linkage roads, development of smart cities, hydel dams, river canal lining and linkage and many other infrastructure related. Airports modernization across major cities will also expand demand. Huge demand of cement is expected to emerge as the above projects are expected to roll out in the entire country. With the huge demand coming, greenfield and brownfield units are going to be set up and by 2020 it is expected that the installed capacity in India would be 500 million tonne.? Misra adds, ?With CCI and its present operating units at Tandur in Telangana, Rajban in Himachal Pradesh (nearer to Uttarakand) and Bokajan in Assam will have the opportunity to maximize its capacity utilisation. We are in process of setting up a new clinkerisation unit at Bokajan and close circuiting at Tandur and Rajban to enhance the existing capacity.?

Challenges
Speaking about the challenges Jain says, ?On the demand side, there needs to be a big push from the government sector to speed up investment in infrastructure and housing, which is happening but it is to be seen whether this is happening on a sustainable basis. Major challenge faced by the industry is the cost. Major cost components are the freight cost, power and fuel cost and raw material cost. The raw material cost is increasing at a steady level, but the freight cost increase is steep due to increase in diesel prices and subsequent raise of freight rates by Indian Railways and other transport and logistics firms. This is happening at a time when the industry is already facing the slowdown.?

Misra is on the same page. He says, ?The rising cost of production attributed mainly due to high price of energy and coal is adversely affecting the industry. Also there is at time the issue of availability of railway rakes. Transportation at times by road and especially for loose cement movement is a challenge in front of the industry. Another aspect is the taxes which forms about 60 per cent of the price of cement (taxes/duties direct and indirect). There is a pressing need to rationalise the tax structure.?

Pathak had this to say. ?It may be observed that while the manufacturing facilities are concentrated around the limestone belts these facilities are catering to the entire nation. Cost of logistics account for over 35 to 40 per cent of the total delivered cost of cement to the end consumers. Innovations have taken place in terms of adoption of split grinding/blending facilities bringing down the cost of logistics however; availability of railway infrastructure (rakes, reach and unloading facilities), roads and fragmented transportation service providers pose a major challenge to the industry to increase efficiency in terms of total delivered cost of cement. We as an industry have to start looking at sea route and inland water ways to effectively and efficiently cater to the upcoming demand and start investing in developing these infrastructures. Says Tripathy ?Our current capacity is 20 million tonne of cement including the group plants in Odisha and newly acquired Bokaro grinding unit. We have existing plants in Tamil Nadu three lines, AP one kiln, Meghalaya one kiln and a grinding unit in Assam near Guwahati. We are currently executing two green field projects, one near Belgaum in Karnataka and the other one in Assam. These two projects will be commissioned in year 2015 and will add another 3 million tonne to our current capacity making a grand total of 23 million tonne per annum.?

However, the long term growth seems to be intact. The government?s continuous thrust on and commit?ment for, affordable housing, construction of cement concrete roads, creation of 100 smart cities, world-class infrastructure development, with emphasis on development of freight corridors and ports connectivity should give a definite fillip to the creation of more demand for cement in the country.

Agith G Antony with input from Sudheer Vathiyath

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Concrete

Exploring new dynamics

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As we step into a dynamic yet challenging year for the cement industry, it is clear that growth is being reshaped by intense competition and evolving market dynamics. Despite robust demand fuelled by infrastructure development, manufacturers are grappling with eroding margins due to a relentless price war. To counter these pressures, cost-cutting has become the industry’s mantra. From optimising clinker production to exploring green energy, the focus is on resilience.

The Investment Information and Credit Rating Agency’s(ICRA) recent revision of the growth forecast for the cement industry to 4-5 per cent for FY25 reflects these challenges, underscoring the need for strategic innovation.

Simultaneously, opportunities for transformation are emerging, as highlighted at the National Council for Cement
and Building Materials (NCCBM) Conference. Two groundbreaking MoUs were signed, marking a significant step toward decarbonisation and technological advancement in cement manufacturing. This collaboration, supported by ICR, reinforces the industry’s commitment to sustainable growth.

Looking ahead, 2025 promises to be a pivotal year for knowledge-sharing and innovation. Mark your calendars for the Cement Expo Forum on 5-6th March 2025 in Hyderabad, a must-attend event for stakeholders. Preceding this, our Metro Rail Conference on 22nd January 2025 and AI-Powered Data Centre Conference on 12th February 2025 in Mumbai will spotlight critical sectors driving India’s growth.

Our sister publications, Construction World and Equipment India, are also gearing up for the Bauma Munich show with a special April 2025 issue.

Let’s embrace 2025 as a year of new opportunities and transformative growth. Wishing you a prosperous and impactful year ahead!

To participate in our exciting journey, reach out to us at marketing@asappinfoglobal.com.

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Concrete

Revolutionising Kiln and Refractory Management

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Dr SB Hegde, Professor and Director of Postgraduate Studies, Jain College of Engineering and Technology, Hubli, and Visiting Professor, Pennsylvania State University, USA, discusses the innovations in kiln and refractory management.

The role of kilns and refractories in meeting evolving cement production demands is paramount, as they directly influence operational efficiency, cost control, and environmental compliance. Indian cement production currently stands at over 421 million tonnes per annum (MTPA), with projections to exceed 800 MTPA by 2030, driven by urbanisation and infrastructure investments. Kiln utilisation in India averages 75 to 85 per cent, reflecting a robust demand for consistent clinker production.
Refractory costs constitute around 15 to 20 per cent of the operational expenditure in cement plants, primarily driven by frequent maintenance cycles due to high thermal loads and wear. Innovations in refractory materials, such as alkali-resistant bricks and low-cement castables, are increasingly adopted to improve kiln life, reduce downtime, and enhance heat retention. Decarbonisation has pushed plants to upgrade kiln technology, transitioning to pre-calciner systems and alternate fuels, which in turn demand advanced refractory materials to withstand chemical and thermal stresses.
Government initiatives like the National Infrastructure Pipeline (NIP) with a projected investment of `111 lakh crore and schemes like PMAY and Gati Shakti are expected to significantly boost cement demand. For example, NIP alone involves 9,300+ projects, leading to increased kiln utilisation and a sharper focus on energy efficiency and reduced emissions. Industry leaders such as UltraTech and Dalmia Bharat are investing heavily in low-carbon and energy-efficient production, with capital expenditures exceeding `12,000 crore for capacity expansion and carbon-neutral initiatives.
In alignment with global trends, Indian cement plants are also integrating smart technologies for predictive maintenance of kilns, reducing refractory wear, and optimising fuel use. Such advancements aim to lower production costs and align with the industry’s sustainability goals. This strategic emphasis positions the kiln and refractory segments as critical components in addressing the challenges of decarbonisation, cost efficiency, and operational excellence in a competitive market landscape.

Advanced Kiln Operation Strategies
A. Dynamic Process Optimisation
AI-Driven Kiln Control Systems: The adoption of artificial intelligence (AI) in kiln operations is revolutionising cement manufacturing by enhancing efficiency and reducing costs. Indian cement plants such as UltraTech and Dalmia Bharat have begun deploying AI-driven kiln control systems like ABB’s Advanced Process Control and FLSmidth’s Expert Optimiser. These systems leverage machine learning to adjust kiln parameters in real time, achieving higher stability and reducing fuel consumption. For instance, AI integration has demonstrated a return on investment (ROI) of up to 15 per cent within two years in energy savings alone.
Data-Driven Process Modeling: Real-time data from sensors and IoT devices is now utilised for process modelling to optimise fuel mix. For example, Indian plants have achieved specific heat consumption reductions of approximately 5 per cent by fine-tuning the proportion of petcoke and coal blends using advanced algorithms. This aligns with decarbonisation goals while maintaining clinker quality.
Case Study: A leading cement manufacturer in Rajasthan implemented an advanced AI kiln control system, reducing specific heat consumption from 750 kcal/kg to 712 kcal/kg of clinker, saving `20 crore annually in fuel costs while cutting CO2 emissions by 10,000 tons per annum.

B. Impact of Alternative Fuels on Kiln Dynamics
Co-Processing of Waste: Indian cement plants increasingly use refuse-derived fuels (RDF) and plastic waste, aligning with sustainability objectives.
Co-processing at cement plant/s for instance, has replaced up to 15 per cent of conventional fuel with alternative fuels, saving up to 50 per tonne of clinker produced. However, these fuels pose challenges such as fluctuating flame stability and accelerated refractory wear, requiring high-performance refractory linings.
Thermal Efficiency and Refractory Wear: Petroleum coke (petcoke) and biomass are widely used as alternative fuels, with petcoke offering superior calorific value but exacerbating alkali attacks on refractories. Biomass, while more sustainable, requires modified kiln burners to maintain thermal efficiency. Studies show that petcoke can reduce thermal efficiency by 3 per cent while increasing refractory maintenance costs by 10 per cent.
Comparative Analysis: An Indian kiln running on coal exhibits a refractory life cycle of approximately 12 months, whereas the use of RDF and petcoke often reduces this to 8-10 months. This highlights the need for advanced refractory materials resistant to alkali and chlorine attacks common with alternative fuels.
C. Advanced Material Flow Management
Mitigating Coating and Ring Formation: Predictive tools based on AI and machine learning are now addressing material build-up issues such as ring and coating formation. Plants using AI systems report a 25 per cent reduction in unplanned stoppages due to excessive coating, translating into savings of `5 crore annually.
Impact of Rawmix Variability: Variations in raw material chemistry, particularly silica and alumina content, affect refractory life. Data from Indian plants shows that deviations in raw mix standard deviation beyond ±1.5 per cent reduce refractory lifespan by 20 per cent. Advanced raw material blending systems, such as Schenck Process feeders, ensure consistent feed chemistry, enhancing kiln lining durability.
Insights into Blending Precision: Enhanced raw material precision in an Andhra Pradesh cement plant increased refractory life by three months, yielding a cost reduction of `1.2 crore annually in maintenance expenses. Investments in XRF analysers and online quality monitoring systems are increasingly adopted to sustain these results.
These advanced strategies demonstrate the transformative potential of technology and innovation in improving kiln operations and refractory management. Integrating AI, alternative fuels, and precision raw material control positions Indian cement plants for sustainable and cost-efficient production.

Cutting-Edge Refractory
Management Practices
A. Innovative Refractory Materials
Development of Alkali-Resistant Bricks and Coatings: Modern kilns frequently operate with alternative fuels, including refuse-derived fuels (RDF), petcoke, and biomass, which lead to increased alkali loads and vapor-phase infiltration. High alumina and magnesia-rich bricks with low silica content have become critical in managing alkali attack. These bricks incorporate additives like zircon and spinel to resist alkali penetration at temperatures above 1300°C. Recent data from Indian kilns utilising RDF indicates a refractory lifespan improvement from 10 months to 15 months with alkali-resistant linings. Furthermore, advanced ceramic coatings with a thickness of 0.5–1 mm are applied to enhance resistance to alkali-induced chemical stress and thermal spalling, particularly in the lower transition zones.
High-Performance Monolithic Refractories: Monolithic refractories, specifically low-cement castables (LCCs) and ultra-low-cement castables (ULCCs), are replacing conventional bricks in various kiln sections due to their seamless structure, superior thermal shock resistance, and low porosity. In preheater and calciner zones of Indian cement plants, ULCCs have demonstrated a 25 per cent reduction in maintenance frequency. For example, at a kiln in Karnataka, LCC applications resulted in specific heat savings of 2.5 per cent, contributing to annual fuel cost reductions of `3 crore. These refractories also exhibit higher abrasion resistance, withstanding air velocities of up to 25 m/s in cyclone stages without significant wear.
Nano-Structured Refractory Solutions: Nano-engineered refractory materials use ultra-fine oxides like nano-alumina and nano-zirconia, improving thermal and mechanical properties. These refractories provide enhanced creep resistance at temperatures exceeding 1400°C and reduce thermal conductivity by up to 15 per cent. Trials conducted at UltraTech Cement showed a significant reduction in heat loss through the kiln shell, enhancing overall thermal efficiency. The adoption of these materials is projected to increase by 30 per cent across Indian plants by 2030, driven by the need for higher energy efficiency.
B. Proactive Refractory Monitoring
Thermal Imaging and Laser-Based Shell Scanning: Advanced thermal imaging tools detect surface hotspots with precision down to 1°C. In the rotary kiln of an Andhra Pradesh plant, implementing such tools reduced undetected refractory wear by 40 per cent, leading to annual cost savings of `2.7 crore. Laser shell scanners, capable of mapping shell temperatures along the kiln’s length, have enhanced monitoring accuracy, enabling predictive maintenance schedules that minimise unscheduled shutdowns.
IoT-Enabled Refractory Sensors: Real-time data acquisition through IoT-integrated sensors embedded in refractory linings provides insights into temperature gradients, heat flux, and stress distribution. These sensors use wireless communication to alert operators to potential failure points. A study at a Gujarat plant using IoT-enabled systems showed a 10 per cent improvement in refractory life, translating to savings of `1.5 crore annually. Such systems are instrumental in reducing failures caused by temperature shocks exceeding 100°C/min during emergency shutdowns.
Case Study: A kiln at a major Indian cement producer integrated predictive analytics with shell temperature data. The system identified abnormal wear patterns near the kiln’s hot spot zone, enabling preemptive relining during scheduled maintenance. This proactive approach extended refractory life by 20 per cent and saved `4 crore over three years.
C. Failure Mechanisms and Mitigation
Thermal-Mechanical-Chemical Degradation: Refractory wear in Indian kilns is predominantly driven by the combined effects of thermal cycling, mechanical load variations, and chemical attack. Thermal cycling, particularly during start-ups and shutdowns, creates thermal shock stresses that exceed the critical tensile strength of refractories, causing cracks and spalling. High alkali content from petcoke or RDF leads to the formation of alkali sulphates and chlorides, which infiltrate and weaken the lining. Moreover, mechanical stresses from
coating dislodgement and raw material build-up exacerbate wear.
Advanced Coatings for Thermal Shock and Erosion: Spinel-rich ceramic coatings with nano-bonding technology reduce thermal gradients and erosion rates by forming a thermal barrier with low thermal expansion coefficients. These coatings, applied in calciner zones, reduced thermal shock-related spalling incidents by 30 per cent at a Rajasthan plant operating with mixed-fuel inputs.
R&D Case Study – Hybrid Refractory Formulations: Researchers are developing hybrid formulations combining magnesia-alumina spinels and silicon carbide (SiC) to improve resistance to thermal shock and abrasion. Trials in a Tamil Nadu plant demonstrated a 20 per cent reduction in material loss during high thermal cycling, with improved alkali resistance. Additionally, coatings incorporating graphene oxide reduced hot face temperature by 30°C, further extending refractory life.

Cost Implications and Operational Insights
A. Refractory Performance vs. OPEX
Breakdown: Refractory Cost per Tonne of Clinker Produced: In Indian kilns, refractory costs typically range between Rs.20 and Rs.40 per tonne of clinker, depending on the kiln size, fuel mix, and quality of refractories used. Plants employing higher-grade refractories, such as spinel-based or high-alumina bricks, report costs at the upper end of this range. For example, a kiln producing 5000 tonnes per day with advanced refractory materials incurs an annual refractory cost of Rs.6–7 crore, contributing 1–1.5 per cent of total operational expenditure (OPEX).
Impact of Suboptimal Refractories on Downtime and Clinker Costs: Suboptimal refractories can lead to frequent shutdowns, increased maintenance costs, and reduced clinker output. For instance, at a plant in Gujarat, refractory failures caused by poor alkali resistance led to a 5-day unscheduled shutdown, resulting in production losses of 10,000 tonnes and a cost escalation of `4.5 crore. A subpar refractory with a lifecycle of 8 months often results in 15–20 per cent higher overall costs compared to premium options lasting 12–18 months.
Comparative Study: ROI of High-Quality vs. Cheaper Refractories: High-quality refractories, while costlier upfront, deliver significantly better ROI. A Tamil Nadu plant using imported magnesia-alumina spinel bricks achieved a lifecycle extension of 24 months compared to 10 months for lower-grade bricks, reducing the total cost per tonne by
Rs.3. Advanced refractory adoption reduced clinker cost by 2 per cent, translating to annual savings of `4 crore for a 6000 TPD kiln.
B. Balancing Cost with Performance
Strategic Sourcing Models for Refractory Procurement in India: Indian cement plants increasingly adopt hybrid sourcing models, balancing local and imported refractories. While local refractories are cost-effective for general applications, imported options, such as European spinel or Japanese
magnesia-chrome refractories, offer superior performance in high-stress zones. Approximately 30 to 35 per cent of refractories used in premium Indian plants are imported, particularly for transition and burning zones.
Impact of Bulk Procurement and Vendor Partnerships: Collaborative procurement strategies, such as long-term agreements with suppliers, provide cost advantages of up to 15 per cent. For instance, bulk procurement of low-cement castables (LCC) by a cluster of cement plants in Andhra Pradesh achieved a 12 per cent reduction in unit costs. Vendor partnerships, where payments are linked to refractory lifecycle performance, further incentivise quality. An integrated plant in Rajasthan achieved Rs.2 crore annual savings through such a model.
Latest Procurement Trends: Performance-linked pricing is gaining traction in the Indian cement industry, where refractory vendors are evaluated based on key performance indicators (KPIs) such as lifecycle, downtime reduction, and clinker quality impact. In 2023, a Gujarat plant adopted this model, tying 20 per cent of payments to refractory performance metrics, achieving a 15 per cent increase in refractory lifecycle.
The integration of advanced materials and data-driven procurement practices is reshaping refractory management in Indian kilns, enabling cost-effective and reliable operations. Balancing cost with performance requires a nuanced approach, leveraging high-quality materials, strategic partnerships, and performance-focused contracts.

Sustainability and Decarbonisation
A. Low-Carbon Kiln Operations
Reduction in Thermal Losses: Advanced refractories significantly minimise thermal losses in cement kilns, leading to reduced specific heat consumption. High-performance materials such as spinel-based and nano-bonded refractories have thermal conductivities 20 to 30 per cent lower than conventional options. For instance, an Indian cement plant in Madhya Pradesh reported a 6 per cent reduction in fuel consumption after upgrading its burning zone with high-alumina refractories engineered for higher insulation properties. This translates to a savings of approximately Rs.3.5 crore annually for a 6000 TPD kiln.
CO2 Emissions Reduction: By lowering fuel requirements, advanced refractories indirectly contribute to CO2 emission reductions. A case study from a leading cement manufacturer in Tamil Nadu showed that using ultra-low thermal conductivity refractories resulted in 0.1 tonnes of CO2 reduction per tonne of clinker, equivalent to a 5 per cent reduction in total emissions. This approach aligns with India’s commitment to reducing cement industry CO2 intensity by 45 per cent by 2050 under the Paris Agreement targets.
B. Recyclability of Spent Refractories
Recycling Spent Refractories into Raw Meal: Recycling initiatives are gaining traction in India as a means of improving sustainability and reducing raw material dependency. Spent refractories containing alumina and silica are increasingly being reused in kiln feedstock. For example, Dalmia Cement’s Ariyalur plant implemented a spent refractory recycling program, processing 300 tonnes annually into raw meal, resulting in savings of `2 crore in virgin material costs.
Economic Feasibility in Cost-Sensitive Markets: The recycling of refractories faces economic challenges, particularly in cost-sensitive regions. However, the adoption of efficient grinding and sorting technologies has made recycling viable. With an investment of Rs.50 lakhs in specialised equipment, one Karnataka-based plant reduced refractory disposal costs by 50 per cent while achieving a 10 per cent raw material cost offset.
C. Green Refractory Innovations
Development of Low-Carbon Refractories: Emerging R&D focuses on reducing the embodied carbon in refractories through alternative raw materials and production methods. For instance, magnesia-carbon refractories manufactured with bio-based binders instead of phenolic resins have shown a 15 per cent reduction in lifecycle carbon emissions. Adoption of these materials has started in premium plants in Maharashtra and Gujarat, which aim to lower their overall carbon footprint.
Adaptation of Global R&D for Indian Conditions: Globally, innovations such as non-chrome refractories and geopolymers are being adapted for Indian conditions. A collaboration between a Japanese refractory giant and an Indian manufacturer has led to the development of chrome-free bricks resistant to alkali and thermal shocks, optimised for kilns using Indian raw materials. Initial trials in Andhra Pradesh indicate a 20 per cent lifecycle improvement and a 25 per cent reduction in embodied carbon compared to conventional chrome-bearing options.
These advancements in kiln and refractory management underscore the cement industry’s ability to align operational goals with sustainability targets, paving the way for a greener, more efficient future.

Technological Advancements
A. Digital Twins for Kiln and Refractory Management
Simulating Refractory Wear and Optimising Kiln Performance: Digital twins replicate kiln operations virtually, enabling precise monitoring of refractory conditions and predictive analysis of wear patterns. These simulations help optimise operational parameters like fuel flow, rotational speed, and air distribution. In India, ACC Cement has implemented digital twins in a pilot project at its Wadi plant, reducing refractory failure rates by 15 per cent and increasing kiln availability by 8 per cent.
Pilot Projects in India: A key success story is UltraTech Cement’s adoption of digital twins at its Rawan plant. The system predicted hotspots leading to thermal degradation, allowing the team to preemptively reline sections of the kiln, saving Rs.1.2 crore annually in downtime and material costs. These projects show significant promise for widespread adoption, particularly in plants operating at >90 per cent capacity utilisation.
B. AI and Machine Learning Applications
Predictive Maintenance Tools for Refractory Performance: AI-driven tools analyse historical data on temperature, load, and chemical exposure to predict refractory life. For example, JSW Cement employs an AI-powered maintenance system that combines real-time thermal imaging with historical failure data, resulting in a 20 per cent reduction in unplanned maintenance events and Rs.1 crore annual savings.
ML-Based Algorithms for Failure Prediction: Machine learning algorithms have proven effective in identifying patterns of high-temperature zone failures, particularly in plants co-processing alternative fuels. At a Gujarat plant, a predictive model flagged potential failures in the burning zone 30 days in advance, allowing for targeted interventions.
This proactive approach increased refractory lifespan by 10 per cent, reducing replacement costs byRs.50 lakhs annually.
C. Emerging Refractory Materials
Ultra-High-Temperature Refractories for Newer Kiln Designs: Innovations in materials science have led to the development of ultra-high-temperature refractories capable of withstanding 2000°C without spalling or significant wear. Indian plants utilising these materials in kilns designed for alternative fuels have reported significant benefits. For instance, a Dalmia Cement plant in Tamil Nadu introduced nano-ceramic bonded bricks, resulting in a 25 per cent improvement in thermal efficiency and a 15 per cent extension in refractory life.
Case Study: Extending Refractory Life by 30 per cent: A Tier-1 cement plant in Rajasthan collaborated with a Japanese manufacturer to adopt magnesia-spinel bricks tailored for local kiln conditions. These advanced refractories not only extended the lining’s life by 30 per cent but also reduced fuel consumption by 5 per cent, yielding annual savings of Rs.2.5 crore.
The integration of digital twins, AI, and advanced materials underscores the cement industry’s commitment to leveraging technology for operational excellence. These advancements are driving cost efficiency, sustainability, and reliability in an increasingly competitive market.

Advanced R&D Insights
A. Collaborations and Innovations
Indian Cement Industry Partnerships: Indian cement manufacturers are increasingly collaborating with refractory suppliers to develop tailored solutions that address the specific challenges of local kiln conditions, such as high thermal gradients and the use of alternative fuels. For example, Shree Cement partnered with RHI Magnesita to develop specialised refractories for kilns using petcoke. This collaboration resulted in a 15 per cent increase in refractory lifespan and a 10 per cent reduction in downtime.
Cross-Industry R&D on Refractory Chemistry: Cross-industry research is driving innovations in refractory chemistry, with Indian firms collaborating with global players in steel and glass sectors. A notable initiative is the Tata Steel Research Centre’s partnership with UltraTech Cement to study thermal shock resistance in refractories, leading to a hybrid solution that combines the properties of magnesia and alumina. Initial trials indicate a 12 per cent improvement in thermal resilience under high-stress conditions.
B. Experimental Developments
Computational Modeling for High-Stress Zones: Advanced computational models are being used to simulate the behavior of refractories under extreme conditions, including high-temperature gradients and chemical attack. In a joint project by Birla Institute of Technology and Indian cement manufacturers, finite element analysis (FEA) was employed to predict wear patterns in rotary kilns. This research reduced the frequency of unplanned shutdowns by providing accurate wear predictions.
Minimising Alkali-Silica Reactions: Experimental research on alkali-silica reactions (ASR) caused by petcoke ash is gaining momentum. Studies conducted at CSIR-Central Glass & Ceramic Research Institute revealed that introducing zircon-based additives to refractories mitigates ASR-related damage, enhancing the durability of bricks by 20 per cent. Plants in Gujarat and Rajasthan have begun implementing these findings, with promising results in reducing kiln maintenance cycles.
C. Global vs. Indian Trends
Comparative R&D Budgets: Global leaders in the refractory industry, such as Vesuvius and Saint-Gobain, allocate 4–6 per cent of annual revenue to R&D, while Indian counterparts, including local refractory manufacturers, typically spend less than 1 per cent. For example, in 2023, RHI Magnesita invested €50 million globally in refractory R&D, compared to Rs.30 crores by the top Indian manufacturers collectively.
Lessons from Global Practices: Global refractory management practices emphasise predictive maintenance and advanced material science, with significant adoption of AI-based tools and robotics. Indian plants are gradually adapting these practices, with Ambuja Cement and ACC implementing robotic refractory installation systems in select kilns. While adoption remains limited, these innovations have reduced installation times by 25 per cent and increased overall safety.
These R&D advancements, collaborations, and global benchmarking efforts are setting the stage for the Indian cement industry to overcome traditional limitations and achieve greater efficiency, sustainability, and competitiveness in kiln and refractory management.

Future of Kiln and Refractory Management in India
Adoption of Circular Economy Principles in Refractory Usage: The Indian cement industry is moving towards circular economy models, focusing on the reuse, recycling, and repurposing of spent refractories. Traditionally discarded as waste, spent refractories are now being processed for use as secondary raw materials in clinker production. For instance, ACC Cement and UltraTech have implemented systems to integrate 30–40 per cent of spent refractories into raw meal blends, reducing dependence on virgin materials. This initiative aligns with India’s commitment to reducing industrial waste and has the potential to cut refractory disposal costs by `15–20 crore annually across the industry. Globally, advanced recycling technologies have demonstrated significant success. Indian manufacturers are collaborating with international players like Vesuvius to bring these technologies into the domestic market. Research indicates that widespread adoption of refractory recycling could lead to annual savings of Rs.500–700 per tonne of clinker produced in India.
Vision 2030: Energy-Efficient Kilns and Next-Gen Refractories: The Indian cement industry’s “Vision 2030” emphasises the adoption of ultra-modern kilns capable of achieving thermal efficiencies beyond 85 per cent. These kilns will require next-generation refractories with high thermal insulation and resistance to alternative fuel residues. Nano-engineered refractories are expected to play a critical role in this transformation, with pilot projects already showing a 10–15 per cent increase in energy efficiency. As of 2024, India’s average thermal energy consumption for clinker production stands at 720 kcal/kg clinker, compared to global benchmarks of 650 kcal/kg. Adoption of advanced refractories is projected to bridge this gap, saving up to `25 per tonne of clinker. The increased durability of these materials will also reduce kiln downtime, improving overall plant productivity by 5–7 per cent.
Predictions: Cost Savings and Emission Reductions with New Refractory Technologies: Advanced refractory materials and kiln technologies are forecasted to yield significant cost and environmental benefits by 2030. By implementing cutting-edge materials like high-alumina and magnesia-spinel bricks, Indian plants could achieve annual cost savings of `1,000–1,500 crore collectively through reduced maintenance and enhanced thermal efficiency. Emission reductions are also a critical area of impact. Studies indicate that optimising refractory performance can lower CO2 emissions by 0.02–0.05 tonnes per tonne of clinker produced. For an industry producing 350 million tonnes annually, this translates to an annual reduction of 7–17.5 million tonnes of CO2, supporting India’s broader climate goals under the Paris Agreement.

Conclusion
The adoption of advanced kiln operation strategies and refractory management practices is no longer optional but essential for the Indian cement industry to remain competitive in an evolving global landscape. Advanced digital tools such as AI-driven control systems and digital twins have demonstrated significant operational efficiencies, reducing specific heat consumption by 5–10 per cent and increasing clinker quality consistency. Simultaneously, the integration of high-performance refractory materials has enhanced durability and reduced maintenance costs, saving up to `1,000–1,500 crore annually across the industry. Sustainability is at the core of these advancements. Recycling initiatives for spent refractories and the development of low-carbon refractory materials are paving the way for a circular economy, contributing to a reduction of 7–17.5 million tonnes of CO2 annually. As Vision 2030 unfolds, the alignment of refractory technologies with India’s carbon neutrality goals will help cement plants achieve significant energy efficiency gains and meet stringent environmental targets.
In conclusion, industry-wide adoption of these innovative practices is imperative. While the upfront investment in advanced refractories and digital technologies might seem substantial, the long-term benefits in cost savings, operational excellence, and environmental impact far outweigh the initial costs. By embracing these solutions, the Indian cement industry can set global benchmarks for sustainability and efficiency, ensuring its growth and relevance in a carbon-conscious world.

References:
1. Schneider Electric. “AI-Driven Optimisation for Cement Kilns: Results and Case Studies.” *Journal of Process Control Engineering*, vol. 35, 2023, pp. 89–102.
2. FLSmidth. “Innovations in Kiln and Refractory Management: A Decade of Advances.” *Cement Technology*, vol. 28, no. 4, 2023, pp. 12–26.
3. National Council for Cement and Building Materials (NCCBM). “Recycling of Spent Refractories in Indian Cement Plants: Case Studies and Guidelines.” *NCCBM Technical Bulletin*, vol. 12, no. 3, 2022, pp. 45–60.
4. Kumar, S., and Sharma, V. “Impact of Alternative Fuels on Kiln Dynamics and Refractory Performance in India.” *International Journal of Cement and Concrete Research*, vol. 52, 2023, pp. 203–217.
5. World Business Council for Sustainable Development (WBCSD). “Low-Carbon Cement Production and Its Implications for Refractory Materials.” *Journal of Industrial Sustainability*, vol. 18, no. 1, 2023, pp. 33–50.
6. Patel, R., and Singh, A. “Digital Twins in Kiln Optimisation: Case Studies from Indian Plants.” IEEE Transactions on Industrial Informatics, vol. 20, no. 2, 2024, pp. 145–156.
7. International Cement Review. “Global Trends in Refractory Materials for Cement Kilns.” *Cement Industry Review*, vol. 45, no. 5, 2023, pp. 72–88.
8. Indian Cement Manufacturers Association. “Cement Industry Operational Data: Kiln and Refractory Costs in Focus.” *CMA Annual Technical Report*, 2023.
9. Gupta, M., and Roy, P. “The Role of Nano-Engineered Refractories in Enhancing Kiln Efficiency.” *Journal of Advanced Materials and Technologies*, vol. 15, no. 7, 2023, pp. 134–149.
10. Rao, T., et al. “Thermal Imaging and Real-Time Monitoring Tools for Refractory Health.” *Journal of Thermal Sciences and Engineering Applications*, vol. 14, no. 3, 2024, pp. 79–95.

ABOUT THE AUTHOR:
Dr SB Hegde is an industrial leader with expertise in cement plant operation and optimisation, plant commissioning, new cement plant establishment, etc. His industry knowledge cover manufacturing, product development, concrete technology and technical services.

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Achieving net zero is a collective responsibility

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Mayank Kamdar, Marketing Director, Lilanand Magnesite, talks about innovative solutions to address refractory-related challenges and enhance operational efficiency.

Tell us about Lilanand Magnesite.
We are a manufacturer of castable and gunning refractories, based in Porbandar, Gujarat. Our company has been in the business for nearly 25 years, specialising in the manufacturing and supply of high-performance castable refractories, which are primarily used in critical areas of cement plants. Over the years, we have also expanded our customer base to include industries such as steel, cement, and thermal power stations, where we address their refractory-related challenges.

Could you elaborate on some of the bottleneck issues that cement plants typically face and how your products help address these challenges?
Bottleneck issues often arise in specific equipment or areas that experience frequent failures. To address this, we study these areas closely to identify the root causes of the failures. Based on our findings, we develop solutions that either improve the refractory material itself or optimise the application methods in those critical areas. Our goal is to enhance the life and durability of the refractory materials used, thus helping to prevent unplanned shutdowns and minimise operational disruptions.

How does your company maintain consistently high quality or improve quality over time?
We maintain high quality through a rigorous procurement process. Every raw material we use is thoroughly tested before it is incorporated into our production. We work with a select group of reputable suppliers who have consistently provided quality materials over the years, ensuring that the final product meets our strict standards. Additionally, we focus on continuous improvement, constantly evaluating and refining our processes to ensure the highest quality in every batch.

With regard to innovation, are there any new developments or technologies that your company is working on to improve your products?
At Lilanand Magnesites, we are always striving to improve our products through continuous research and development. Currently, one of the key areas of focus is adapting our products to the increasing use of alternative fuels and municipal waste in cement kilns. Over the years, we have developed specialised products designed to withstand the challenging environments created by the burning of alternative fuels. For example, we offer anti-coating castables that are highly durable and suited for use in areas such as the kiln inlet, where AFR and municipal waste are burned.

How does your company contribute to sustainability and environmental conservation?
Our approach to sustainability is focused on manufacturing high-performance products that last longer than conventional refractories. By providing our customers with products that have a longer lifespan, we significantly reduce the need for frequent replacements. This ultimately lowers the refractory consumption per ton of cement produced, making our solution more sustainable. Additionally, by offering durable products, we reduce the overall environmental footprint associated with the manufacturing and disposal of refractories.

What challenges do you face in your industry, and how do you address them?
One of the biggest challenges in the refractory industry is the reliance on natural mineral resources. As these resources are finite, their quality can vary, which poses a challenge in ensuring consistent product quality. To address this, we explore new sources for raw materials and also develop synthetic products that offer consistent quality. Thus, we ensure that our products meet the high standards of our customers, even as natural resources become scarcer.

What is your view on the concept of net zero, and how is your company contributing to achieving this goal?
Achieving net zero is a collective responsibility that involves all stakeholders, from the bottom-most supplier to the top-most consumer. It is not something that can be achieved by any one individual or organisation alone. In our own factory, we have taken significant steps towards sustainability, such as installing solar energy systems that power the entire facility, eliminating our reliance on grid electricity. We also believe that using more durable products, rather than cheaper, less sustainable options, can contribute to reducing the environmental footprint. Every step in the supply chain, from production to consumption, must be geared towards minimising carbon emissions and waste, which will help us collectively achieve the net zero target.

– Kanika Mathur

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