Connect with us

Economy & Market

Building up Capacity

Published

on

Shares

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

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Concrete

Green Construction Through Cement Innovation

Published

on

By

Shares

Indian Cement Review (ICR) and Fuller Technologies brought industry, policy and technology leaders together to discuss how cement innovation can drive green construction at scale, writes Rakesh Rao.

India is building at a pace few countries can match. Highways, airports, housing, logistics parks, industrial corridors and urban infrastructure are reshaping the country’s economic geography. But beneath this growth story lies a difficult question: can India continue to build at scale without locking itself into a high-carbon future?

That question formed the core of an online panel discussion titled “Driving Green Construction Through Cement Innovation”, organised by Indian Cement Review (ICR) in association with Fuller Technologies as the Presenting Partner on June 25, 2026. The webinar brought together experts from cement technology, R&D, global industry platforms, building performance policy and international development cooperation to examine how low-carbon cement and material innovation can accelerate India’s green construction transition.

The discussion came at a crucial time. India has committed to achieving net-zero emissions by 2070 and reducing the carbon intensity of its economy by 45 per cent by 2030. At the same time, the country’s construction sector is expanding rapidly, driven by urbanisation, infrastructure development, housing demand and industrial growth. Cement, as one of the most widely used construction materials, sits at the heart of this transition. It is indispensable to development, but also central to the challenge of reducing embodied carbon in buildings and infrastructure.

Moderated by Nitika Krishan, Senior Urban Infrastructure and Sustainable Policy Consultant, the panel featured:

  • Kiranmai Sanagavarapu, Director, Low Carbon Solutions, Fuller Technologies;
  • Dr Hemantkumar Aiyer, VP and Head R&D, Nuvoco Vistas Corp Ltd;
  • Devika Wattal, Innovation Lead, Global Cement and Concrete Association (GCCA);
  • Dr Sunita Purushottam, MD, GBPN India (Global Buildings Performance Network); and
  • Vaibhav Rathi, Senior Technical Advisor, GIZ (the German Agency for International Cooperation)

Setting the tone for the discussion, Nitika Krishan underlined the scale of the challenge before the sector. “The question before us is no longer whether we build, but how we build sustainably,” she said. She pointed out that construction accounts for nearly 40 per cent of global energy-related carbon emissions when both operational and embodied carbon are considered. Cement production, she added, remains one of the hardest industrial processes to decarbonise.

For India, this is not merely an environmental issue. It is a development issue, a competitiveness issue and increasingly, a market issue. As one of the world’s largest cement producers and among the fastest-growing construction markets, India’s material choices will influence the carbon trajectory of its built environment for decades. As Krishan observed, sustainability solutions in economies such as India must not remain limited to laboratory success. They must be scalable, commercially viable and practical at national level.

The innovation gap: From technology to market

Experts believe that there is a need to bridge the innovation gaps for making decarbonisation in cement and concrete scalable. Devika Wattal of GCCA, explained, “The starting point must be the core cement manufacturing process itself. The first and foremost is the heart of our process, the heart of cement manufacturing. How do we reduce clinker? That is always a topic where industry is working very intrinsically.”

Clinker reduction remains one of the most important pathways for lowering emissions in cement. Since clinker production is energy-intensive and chemically emits carbon dioxide, reducing the clinker factor through supplementary cementitious materials (SCMs), blended cements and new chemistries can have a significant impact. Wattal also noted that carbon capture, utilisation and storage (CCUS) will have a role, though it may not be the first lever for all markets.

However, she stressed that innovation cannot stop at technology development. A solution that works in the lab must also be adaptable to industry, scalable in production and acceptable in construction practice. “It is important for that innovation to be adaptable, to be scalable, and so that it can be executed in real time,” she said.

Wattal also called for stronger enabling systems around innovation. These include performance-based standards, product-level embodied carbon databases and clearer frameworks for evaluating green materials. Without these, low-carbon cement products may struggle to compete with conventional materials in procurement and design.

R&D must balance carbon, cost and performance

Bringing in the R&D perspective into the discussion, Dr Hemantkumar Aiyer of Nuvoco Vistas emphasised that low-carbon cement development cannot be treated as a single-variable exercise. Cement must perform in real construction conditions. It must deliver strength, durability, consistency and cost competitiveness, while also reducing carbon.

“The root of understanding and balancing all these aspects lies in materials, and knowing the materials,” he said.

According to Dr Aiyer, R&D teams must understand the variability of raw materials such as fly ash, slag and clinker. Different sources produce different material behaviours. This makes mix optimisation, material characterisation and processing-property relationships critical. When performance is affected, cement manufacturers must understand how strength enhancers, admixtures and other performance chemicals interact with the material system.

He also linked material science with process efficiency. Clinkerisation takes place at extremely high temperatures, around 1,400 to 1,450 degrees Celsius. Any improvement in raw mix design, process control or energy optimisation can, therefore, help reduce emissions and cost. Dr Aiyer pointed to artificial intelligence-based optimisation, Cement 4.0 tools and advanced software as important enablers for real-time process and material control.

“The more you understand the materials, the more you can control it,” he said.

LC3: The promise is proven, the sequencing is not

Limestone calcined clay cement, commonly referred to as LC3, has attracted global attention because it can reduce clinker content significantly by using calcined clay and limestone while maintaining performance in many applications. Kiranmai Sanagavarapu of Fuller Technologies said the technology itself has already moved beyond proof of concept. Fuller Technologies has worked with calcined clay technology for nearly two decades and has seen plants running in France and Ghana. These plants, she said, are meeting local and national specifications, while the economics are beginning to make sense.

“The calciner is performing, the economics is stacking up, it is making business sense to produce,” she said.

But if the technology is viable, why has adoption not scaled faster? For Sanagavarapu, the answer lies in project sequencing. Too often, clay characterisation happens after equipment is specified. This, she warned, is a backward approach because calciner design depends on clay mineralogy, kaolinite content, iron levels, reactivity, moisture and other variables.

“If you don’t know what your deposit looks like before you commit for the equipment, you are, in a way, going blind into designing,” she said.

She also identified permitting and plant integration as major bottlenecks. Environmental clearances, mining permissions and local regulatory approvals must begin early. Similarly, calcined clay must be integrated into existing grinding, blending and logistics systems from the design stage, not treated as an afterthought during commissioning.

India already has IS 18189:2023 standard for LC3, but Sanagavarapu pointed out that the standard is not yet visible enough in procurement documents. “The gap between what is technically being permitted and what the procurement is asking is the single biggest bottleneck,” she said.

In her view, successful scale-up depends on getting the sequence right: clay characterisation first, permitting in parallel, standards aligned with construction, and integration built into plant design.

India’s LC3 journey: Progress, but demand remains thin

Providing details of India’s LC3 commercialisation experience, Vaibhav Rathi of GIZ noted that JK Cement carried out the first commercial production of LC3 at its Rajasthan plant, followed by JK Lakshmi Cement three months later. These initiatives were supported by the International Climate Initiative of the Government of Germany, with IIT Delhi contributing deep institutional knowledge on LC3 research and BIS certification.

Rathi said India’s early experience has produced clear lessons. One of the biggest was the need to build capacity among regulators. While BIS certification existed, State Pollution Control Boards were unfamiliar with the technology and unsure about the approval pathway.

“The capacity building is not just needed amongst the producer and the users of the cement, but also the regulators who are working with this technology for the first time,” he said.

He also highlighted the need for better information on China clay deposits. Since China clay is currently classified as a minor mineral, centralised data on availability, quality and location is limited. If cement manufacturers are to adopt LC3 at scale, stronger mineral intelligence will be important.

The third issue is demand. LC3 has already been used in projects such as Palava City in Mumbai and Noida International Airport, but these remain limited examples. “It is in a chicken and egg situation,” Rathi said. “Cement companies are saying we need more demand, and users are saying there is not enough cement available.”

Public procurement, he suggested, could help break this cycle. If agencies such as CPWD and other public bodies begin testing, accepting and specifying LC3, it could create the market confidence needed for cement companies to invest in production and storage.

Building codes must catch up with innovation

Dr Sunita Purushottam of GBPN India argued that material choices will determine built environment emissions over the long term, but India’s current policy signals remain fragmented. Although LC3 has received BIS recognition, she pointed out that building codes, municipal bylaws, schedules of rates and sustainability codes do not yet provide uniform guidance on low-carbon cement.

“The current cement regulations are largely prescriptive and favouring traditional materials,” she said. This limits the ability of alternative materials to compete on performance, durability and emissions.

Dr Purushottam also raised the issue of taxation. Cement, including LC3, currently falls under the same GST bracket as conventional cement. A differentiated tax structure, she argued, could help accelerate market adoption. “In order for the market to demand LC3, that differentiation in the GST could go a long way,” she said.

She noted that green building certifications such as IGBC and GRIHA are already creating demand for low-carbon materials by assigning points for embodied carbon and sustainable material use. However, she said large-scale adoption will require regulatory mandates, particularly through building codes and state-level notifications.

She also cautioned that low-carbon cement alone does not solve the entire building performance problem. A material may reduce embodied carbon, but the operational carbon of a building depends on thermal performance, design, insulation and energy use. “The energy part has two elements,” she said. “One is the embodied carbon of the material itself, and the other is the operational carbon.”

Collaboration is the bridge between invention and impact

Wattal said GCCA sees innovation as a strategic priority and works through platforms that connect industry with academia and start-ups. “There is no way we will decarbonise our sector without innovation,” she said.

However, she stressed that research must be connected to actual industry challenges. Innovations developed in isolation may fail when they encounter real-world barriers such as raw material variability, plant integration, cost, standards and finance. Start-ups, too, need industry mentorship and scale-up pathways.

Wattal also flagged the importance of finance. Even strong technologies may struggle to attract investment if there is no common understanding of bankability. “We have always put projects into, is this a bankable project? But the definition of a bankable project has never been defined,” she said.

For India, she saw strong potential in its academic and start-up ecosystem, but said the challenge lies in alignment and prioritisation. The country has the research base, industrial capacity and market size. What it now needs is a coordinated route from innovation to deployment.

There is a practical concern for cement manufacturers: how can existing plants be adapted for lower emissions without compromising reliability or commercial viability?

Kiranmai Sanagavarapu addressed, “The reliability risk in calcined clay retrofit is definitely real, but it is almost always self-inflicted. The risk arises when a new process is added to an existing circuit without properly redesigning grinding and blending configurations.”

Existing cement plants, she explained, can take two broad routes. The first is external sourcing of calcined clay combined with mill optimisation. This requires lower capital investment and can potentially move in 12 to 18 months if other conditions are in place. It may reduce emissions by around 20 to 30 per cent. The second route is integrated calcination on site, which requires higher capital expenditure and longer lead times, but provides greater control over quality, supply and emissions reduction potential.

For Sanagavarapu, the principle is simple: low-carbon retrofits must be designed with intent. “Design it with an intent properly from the start. Start in the market conditions where the economics are already working,” she said.

Circularity: The overlooked advantage

According to Vaibhav Rathi, fly ash and slag are already well established in cement and construction (C&D), but construction and demolition waste remains underutilised. “C&D waste is a growing business opportunity which not many have taken up,” he said. India’s continuous construction and demolition activity creates huge volumes of waste, much of which contributes to air pollution, land degradation and material inefficiency. With the right processing and standards, this waste can be converted into useful construction products.

Rathi also pointed out that LC3 has a circular economy dimension that is often overlooked. It can use low-grade kaolin-rich clay left behind after high-grade clay is extracted for other applications. “LC3 is not only a low-carbon solution, but also a circular economy solution,” he said.

At the same time, he cautioned that LC3 in India is not yet cheap because it has not reached scale. Site-specific techno-commercial feasibility studies, supported jointly by development agencies and industry, could help companies assess whether LC3 production makes technical and financial sense at a given location.

Dr Purushottam added that India must address both low-carbon cement and construction waste together. “Both low-carbon cement and C&D waste go hand in hand. India does not have an option but to work on both,” she said.

Dr Aiyer called for policy shifts from both government and industry, including preferential purchasing of sustainable materials, minimum supplementary cementitious material requirements in public and public-private projects, and faster regulatory implementation. “If we can fast-track the regulatory standards and their implementation on the ground, that is the way to go,” he said.

From green ambition to green construction

Cement innovation is no longer only about chemistry. It is about systems. Low-carbon cement will scale only when technology, standards, procurement, finance, regulation, education and construction practice move together.

LC3 and other low-carbon technologies have shown promise. India has early commercial examples, strong research capability and growing market interest. But mainstream adoption will depend on whether demand can be created, regulators can be capacitated, standards can be embedded in procurement, and manufacturers can see a clear business case.

For a country building at India’s scale, the opportunity is enormous. Cement will continue to be central to infrastructure and urban development. The challenge now is to ensure that the cement used in India’s growth story carries a lower carbon burden.

  • Rakesh Rao

Participate in Cement Expo 2026 and discover how next-gen infrastructure can be built with innovations in cement.

Continue Reading

Concrete

Indian Railways Plans Green Fly Ash Transport Network

Published

on

By

Shares

Specialised rail logistics will move fly ash from power plants to infrastructure industries.

New Delhi

Indian Railways is planning a large-scale green logistics initiative to transport fly ash from thermal power plants to industries where it can be reused in infrastructure and construction activities.

The initiative was discussed during a review meeting chaired by Union Minister for Railways Ashwini Vaishnaw. Union Ministers of State for Railways V Somanna and Ravneet Singh Bittu were also present.

India generates nearly 340 million tonnes of fly ash every year from thermal power plants. The proposed initiative aims to create an efficient rail-based transport system using specialised containers and dedicated logistics arrangements to move fly ash safely from power plants to end-use industries.

Fly ash is widely used in road construction, cement manufacturing, brick production, concrete, blocks and boards. By improving its movement through the railway network, the initiative is expected to support better utilisation of this industrial by-product while reducing environmental concerns linked to storage and disposal.

The move also aligns with India’s circular economy goals by converting waste from thermal power generation into a useful raw material for the construction and infrastructure sectors. Wider availability of fly ash can help reduce material costs in areas such as bricks and cement, supporting more affordable infrastructure and housing development.

Through this initiative, Indian Railways aims to provide a cleaner, safer and more organised transport solution for fly ash, turning an environmental challenge into an infrastructure resource.

Continue Reading

Concrete

Powering Cement Through Intelligent Motion

Published

on

By

Shares

Gears, drives, and motors have evolved from essential mechanical components into strategic enablers of reliability, efficiency, and sustainability in modern cement plants. ICR explores how advanced motion technologies, predictive maintenance, digitalisation, and intelligent drive systems are helping cement manufacturers reduce downtime, optimise energy use, and build future-ready operations.

As the Indian cement industry prepares for another phase of capacity expansion, the focus is shifting from merely increasing production volumes to improving operational efficiency, reliability, and sustainability. According to industry estimates, India is expected to add nearly 160–170 million tonnes of cement capacity between FY26 and FY28, driven by infrastructure investments, urbanisation, and housing demand. In this environment, gears, drives, and motors have emerged as critical enablers of productivity, forming the backbone of every major process from raw material extraction and grinding to clinker production and cement dispatch.
Motors alone account for nearly 60 per cent to 70 per cent of industrial electricity consumption globally, according to the International Energy Agency (IEA), while rotating equipment failures remain among the leading causes of unplanned downtime across heavy industries. In cement plants, where equipment operates under high loads, extreme dust conditions, elevated temperatures, and continuous-duty cycles, the performance of gears, drives, and motors directly influences energy consumption, maintenance costs, plant availability, and overall profitability. As digitalisation and Industry
4.0 technologies gain momentum, these systems are evolving from passive mechanical components into intelligent assets capable of delivering real-time operational insights.

Why gears, drives, and motors are the backbone of cement plant operations
Every major process in a cement plant depends on the seamless operation of gears, drives, and motors. Raw mills, vertical roller mills, crushers, kiln drives, conveyor systems, fans, and clinker coolers all rely on rotating equipment to maintain continuous production. A failure in any one of these systems can disrupt entire process chains, highlighting their strategic importance.
Modern cement plants process thousands of tonnes of material daily, requiring equipment capable of transmitting enormous torque while maintaining precision and reliability. Kiln drives and grinding systems, in particular, operate under some of the highest mechanical loads found in industrial manufacturing. The ability of gears and motors to withstand these conditions directly impacts plant throughput and production stability.
Satish Maheshwari, Chief Manufacturing Officer, Shree Cement says, “Effective lubrication management remains one of the most critical factors in extending the lifespan of cement plant drive systems. Proper lubrication, supported by regular oil analysis, vibration diagnostics, and condition monitoring, helps minimise wear, prevent unexpected failures, and maintain the integrity of critical components such as gearboxes, motors, and drive assemblies. By identifying potential issues at an early stage, plants can move from reactive maintenance to a more proactive and reliability-focused approach.”
“Smart motors, intelligent drives, and next-generation gearboxes are set to redefine cement plant maintenance and performance. Equipped with embedded sensors, IoT connectivity, digital twins, and AI-driven diagnostics, these technologies enable real-time condition monitoring, predictive maintenance, and seamless digital integration. As the industry embraces Industry 4.0, smart drive systems will play a pivotal role in improving energy efficiency, reducing downtime, and optimising asset performance across the cement manufacturing value chain” he adds.
Industry studies suggest that rotating equipment accounts for a significant proportion of maintenance expenditure in process industries. Effective design, selection, and maintenance of gears, drives, and motors therefore have a direct influence on asset utilisation, operational efficiency, and total cost of ownership.

The cost of downtime: reliability challenges in rotating equipment
Unplanned downtime remains one of the most expensive challenges facing cement manufacturers. Industry estimates indicate that a major failure involving a critical gearbox, kiln drive, or grinding mill can result in production losses running into lakhs of rupees per hour, depending on plant capacity and operating conditions.
Sanjeev Arora, President – Motion Business & IEC LV Motors Division, ABB India says, “One of the most significant shifts taking place in industrial decision-making today is moving away from evaluating equipment based solely on upfront capital cost toward understanding total cost of ownership (TCO). In a typical motor system, the purchase price often represents only a small fraction of the total lifecycle cost however energy consumption, maintenance requirements, downtime and operating efficiency account for the vast majority of long-term operational expenses. For cement manufacturers operating in highly competitive markets, this distinction is critical.”
“A high efficiency motor paired with an appropriately configured variable speed drive may require a higher initial investment, but the long-term benefits are substantial. Reduced electricity consumption, lower maintenance needs, longer service intervals and improved process stability can deliver faster payback and stronger profitability over time” he adds.
Cement plants present a particularly challenging environment for rotating equipment. Dust ingress, thermal fluctuations, shock loads, vibration, shaft misalignment, and lubrication contamination contribute significantly to equipment degradation. Studies by SKF indicate that nearly 50 per cent of bearing failures are linked to lubrication issues and contamination, while improper alignment and vibration-related problems remain leading causes of gearbox and motor failures.

Energy-efficient motors and drives: unlocking operational savings
Energy is one of the largest operating expenses for cement manufacturers, often accounting for 25 per cent to 35 per cent of total production costs. Grinding operations alone can consume nearly 60 per cent to 70 per cent of a plant’s electrical energy, making energy-efficient motors and drives a strategic investment.
According to the International Energy Agency, high-efficiency motors combined with Variable Frequency Drives (VFDs) can reduce energy consumption by 20 per cent to 30 per cent in suitable applications. By matching motor speed and torque to actual process requirements, VFDs minimise unnecessary power consumption while reducing mechanical stress on equipment, improving both efficiency and reliability.

Advances in gearbox design and power transmission technologies
Modern gearbox technology has evolved significantly in response to the increasing demands of cement manufacturing. Advanced materials, case-hardened gears, optimised tooth profiles, improved surface finishing, and enhanced lubrication systems are helping reduce friction, wear, and thermal loading.
Girish Hanchate, Director – Industrial Market, India SKF India (Industrial) says, “Smart diagnostics are significantly improving the lifecycle of gears, motors, and other rotating equipment by enabling a shift from reactive maintenance to condition-based asset management. Hidden issues such as vibration anomalies, bearing defects, misalignment, and temperature fluctuations can quietly reduce plant throughput by 10 per cent to 20 per cent while increasing energy consumption long before a breakdown occurs. By leveraging advanced sensors, predictive analytics, machine learning, and real-time monitoring of vibration, temperature, and motor current, cement manufacturers can detect developing faults early, optimise maintenance schedules, and prevent costly secondary damage. This not only improves reliability but also supports energy efficiency and sustainability objectives.”
“The next major evolution in drive and bearing technology lies in the development of fully integrated smart mechanical ecosystems that combine high-performance bearings, advanced lubrication management, and digital intelligence. Sensor-enabled condition monitoring embedded directly within bearings and drive systems allows operators to capture critical operational data at the source, enabling predictive maintenance and real-time performance optimisation. Innovations such as SKF’s VA9A1 Spherical Roller Bearing series, engineered specifically for demanding cement applications such as crushers and kilns, demonstrate this trend. By increasing internal bearing space and optimising lubricant flow, these designs improve grease retention, reduce wear, minimise downtime, and create more resilient, energy-efficient rotating equipment systems for the future of cement manufacturing” he adds.
Manufacturers are increasingly focusing on compact, high-torque gearbox designs capable of delivering higher power density while maintaining service life. Innovations such as condition-monitored gear systems, improved sealing technologies, and modular gearbox architectures are simplifying maintenance while enhancing operational reliability.

Predictive maintenance, condition monitoring, and asset health management
The shift from reactive to predictive maintenance is transforming asset management across the cement industry. Technologies such as vibration monitoring, thermography, oil analysis, ultrasound testing, and motor current signature analysis are enabling operators to identify potential failures before they occur.
Research by Deloitte suggests that predictive maintenance can reduce breakdowns by up to 70 per cent and lower maintenance costs by 25 per cent. In cement plants, where shutdown windows are limited and equipment operates continuously, predictive maintenance offers a powerful tool for improving reliability and extending asset life.
Digitalisation, industry 4.0, and the rise of intelligent drive systems
Industry 4.0 technologies are redefining the role of gears, drives, and motors. Smart sensors embedded within motors, bearings, and gear systems can continuously monitor temperature, vibration, load, lubrication condition, and energy consumption.
Girish Hanchate says, “As the industry embraces automation, sustainability, and digital transformation, the importance of intelligent motion technologies will continue to grow. The convergence of advanced engineering, predictive maintenance, and Industry 4.0 solutions is creating a new generation of cement plants where reliability, efficiency, and sustainability work together to deliver long-term value. For cement manufacturers navigating increasing production demands and environmental expectations, investing in smarter gears, drives, and motors is no longer optional—it is a business imperative.”
Cloud-based monitoring platforms and Industrial Internet of Things (IIoT) architectures enable maintenance teams to access equipment health data remotely, improving visibility across geographically dispersed operations. Advanced analytics and
artificial intelligence are further enhancing fault detection capabilities, enabling more accurate maintenance planning.
The emergence of digital twins represents another significant development. By creating virtual replicas of physical assets, operators can simulate operating conditions, predict failures, optimise maintenance schedules, and improve lifecycle management decisions. These technologies are helping transform rotating equipment into intelligent assets that actively contribute to operational decision-making.

Building future-ready cement plants through smart motion technologies
The future of cement manufacturing will depend heavily on the ability to integrate mechanical reliability with digital intelligence. Smart motion technologies combine high-efficiency motors,
intelligent drives, condition monitoring systems, and automation platforms to create more responsive and efficient operations.
Sustainability goals are also accelerating investment in advanced motion technologies. Reduced energy consumption, improved equipment efficiency, and extended asset life contribute directly to lower carbon emissions and reduced resource consumption.
These benefits align closely with the industry’s decarbonisation objectives.
As capacity expansions continue across India, future-ready cement plants will increasingly prioritise reliability, flexibility, and data-driven decision-making. Organisations that successfully integrate smart motion technologies into their operations will be better positioned to reduce costs, improve productivity, and maintain a competitive advantage in a rapidly evolving market.

Conclusion
Gears, drives, and motors are no longer viewed solely as mechanical components; they have become strategic assets that influence every aspect of cement plant performance. Their reliability affects production continuity, their efficiency impacts operating costs, and their digital capabilities increasingly shape maintenance and operational strategies.

  • Kanika Mathur

Continue Reading

Video Thumbnail

    SIGN-UP FOR OUR GENERAL NEWSLETTER


    Trending News

    SUBSCRIBE TO THE NEWSLETTER

     

    Don't miss out on valuable insights and opportunities to connect with like minded professionals.

     


      This will close in 0 seconds