Economy & Market
Creating larger societal value
Published
12 years agoon
By
admin
ACC has a firm commitment to create larger societal value. The company initiated its community development activities in pre-independence era and since then it has continued to engage with development initiatives with a host communities around its operations.
The communities living around ACC?s operations are the key stakeholders of the organisation. The company actively assists these communities in identifying, prioritising and meeting their developmental aspirations. It has adopted participatory community self-reliance initiatives across its sites in India by creating forums such as community advisory panel (CAP) which acts as a platform for the community, local district administration, NGOs and other opinion groups to come together and implement projects. The panels have proven to be valuable in presenting stakeholder views, review the progress of community projects, obtain timely feedback from stakeholders, and ensuring appropriate delivery of plan initiatives in a participatory method.
New CSR policy
In 2013, ACC revisited its CSR policy in view of the emerging regulatory framework. ACC?s Board constituted a CSR committee to particularly focus on guiding and monitoring of CSR initiatives of the company.
According to Pratyush Panda, Head – CSR, ACC, a wide range of social development initiatives were undertaken in partnership with local communities, government and non-government organisations. ?The initiatives reached out to people residing around ACC?s operational areas as well as to various disasters hit areas around the country. Focus of these initiatives were mainly on enhancing literacy and education for community, preventive health and sanitation, livelihood, employability and income generation, women empowerment, augmentation of community infrastructure, environment and other CSR initiatives such as promotion of local arts, culture and sports,? he says.
During 2013, ACC?s community development initiatives mainly focused on 132 villages, having a population of 0.6 million, located primarily around its 14 plants.
Education for society?s future
?ACC?s initiatives in education benefited 18,380 children in the neighbourhood communities. It has established schools at all its locations, where employees? children and those from surrounding communities are provided quality education,? says Panda. Management of these schools is outsourced to reputed educationists, thereby ensuring that the schools maintain high standards of education. Since most plants are situated in remote hinterlands, the ACC schools are at once the most accessible and invariably among the best in the region. The schools are supported by providing funds and infrastructure for initial construction, meeting a part of the teachers? salaries and up-gradation activities.
ACC continued to support seven Government-run Industrial Training Institutes (ITI), under a Public Private Partnership scheme (PPP), through a joint initiative with the Ministry of Labour and Employment, Government of India. Its support focuses on enhancing the skills and employability of the students passing out of these institutes by upgrading the quality of education offered there.
ACC also runs two technical training institutes of its own, both of which enjoy considerable repute as centres providing technical training. The Sumant Moolgaokar Technical Institute (SMTI) at Kymore was first established in 1949 to train young men in specialized trades to become artisans, foremen and first line supervisors. It had its own independent curriculum and certification. Since 2008, the institute works with a revised objective of complementing the education received by engineering diploma trained candidates. In 2013, SMTI trained 120 young men through an 18 month course as Diesel Mechanic-cum-Fitter and Electrical Instrumentation. The other institute managed by it is the ACC Cement Technology Institute (ACTI) which offers specialized technical training to young engineering graduates. ACTI trained 166 boys and 32 girls during the year with both class room and practical trainings in operation and maintenance of cement plants.
Community development
The thrust in this respect comprises promoting health, women?s empowerment and creating livelihoods. These initiatives benefited more than 109,000 people directly while twice as many people were indirect beneficiaries.
Promoting health: Panda elaborates on AAC?s initiatives on promoting health. ?Health being one of the prime concerns of the community and critical for general wellbeing of ACC?s stakeholders, significant initiatives were undertaken in this domain. Total 109,450 people benefited from our various health and nutrition related initiatives.? ACC?s health initiatives mainly focus on preventive health of the community. Active awareness campaigns are undertaken to enhance communities understanding about various disease prevention and healthy ways of living. Regular preventive health support to the community is reached out through health camps and mobile health vans. Most of these plant sites are situated in remote parts of the country, with little access to adequate healthcare and medical services. ACC supports the local administration in promoting national health campaigns on important issues such as malaria, prevention and immunisation and DOTS. During 2013, 3,273 general and special health camps were conducted to reach out preventive care to community members. In addition, regular support to the ACC hospitals support was also extended to various government Primary Health Care centres and Community Health Care centres.
Special initiatives in healthcare and nutrition are taken for women and children in coordination with health authorities. Communities are mobilised to participate in programmes for immunisation, anti natal care, post natal care and birth spacing methods. Iron folic acid tablets were provided to prevent anemia among pregnant mothers and adolescent girls.
?The support to Anganwadi initiative would be one such example. Anganwadis are integral part of Integrated Child Development Scheme (ICDS) that plays a vital role in rural areas for overall development of children as well as support to pregnant and lactating mothers. ACC provided support to 132 Anganwadis that are serving the host communities. This has resulted in better supply and use of government?s medicine supplies through AWC which has direct impact on infant and maternal mortality,? explains Panda.
Other support activities included health and accidental insurance for Self Help Group (SGH) members and drivers in ACC?s supply chain, subsidised ambulance facility to villagers for their emergency needs and subsidised hospitalization of villagers.
Women?s empowerment: Various initiatives are pursued to promote skill building and income generating schemes for local women groups. Women SHGs are imparted relevant training in their selected livelihoods and supported in the establishment of micro-enterprises. As many as 737 SHGs were organised during the year. Members of these new as well as old SHGs were provided training for group cohesiveness, book-keeping, product development, marketing of the products, market linkages, bank linkages and exposure to best practices in SHG functioning. Some of these groups have initiated their own micro enterprises. Through bank linkages and inter- loaning, these members generated a total savings of Rs 1.52 crore.
ACC AHEAD (Association for Health, Education and Development), the volunteering wing of the company?s ladies clubs at all plants, set up in 2008, continued to support social volunteering and community programmes with special emphasis on empowering women. The group has been successful in creating livelihood opportunities for numerous community women in the areas of tailoring, embroidery, knitting, making masala, pickles, fancy bags, gloves and in making, disposable cups and plates.
Livelihood and employability: ?ACC believes in empowerment of people and assisting them in sustainability of their livelihood, as that will make the community self-reliant and increase their self-respect,? says Panda. During the year, ACC?s various initiatives in this direction benefited 17,288 people. Under its employability initiatives, it supported training of 3,579 youth from poor families in the host community, of which, 2,501 persons were placed with various employers enabling a similar number of families to live above poverty line.
Building infrastructure for liveable neighborhoods
ACC plays a vital role in facilitating the creation and maintenance of basic infrastructure around all its operations such as roads, safe drinking water, deepening of ponds, and repairs to schools, Anganwadi and other community amenities. ACC makes every possible effort to make these basic necessities available to the neighbourhood communities, according to Panda.
Wherever needed, NGO partners join in to ensure quality execution of the projects. Efforts are also taken to bring benefits of government schemes for the welfare of village communities. Previously, ACC?s initiatives for infrastructure development benefited 435,392 people. Each plant contributed in creation of water harvesting structures and installation of hand pumps for drinking water. Excavation of pond for irrigation and other water uses, directly and indirectly benefited 272,418 people, whereas drinking water initiatives benefited 72,294 people.
Disaster response initiatives
ACC?s disaster relief support initiatives in these disaster affected areas of Uttarakhand and Maharashtra benefited 8,703 people. Uttarakhand faced devastation during disastrous flash floods in June 2013. ACC?s Disaster Response Team (DRT) reached out to affected villages in Uttarkashi region. 24 volunteers from various units of north region joined hands with Sales Unit, Dehradun. ACC?s DRT provided relief to the people through ACC Mobile Health Unit, doctors, nurses and pharmacists, along with safe drinking water, food and clothing.
CSR activities ACC?s corporate social responsibility helps the company in various ways. From building a more motivated workforce to becoming a sustainable entity, ACC aligns its initiatives keeping in mind its goals. Some such examples are as below:
Alternate fuels & raw materials (AFR): The concept of AFR involves substituting mainstream non-renewable fuel resources like coal with replenishable alternate fuels. A subsidiary activity of AFR is waste co-processing which is basically a means of waste management. Under the mainstream AFR activities, currently the Gagal plant is using mill scale (a reject from steel rolling mills) as a substitute for iron ore.
A few of waste management initiatives undertaken by ACC are as follows:
Maddukrrai Solid Waste Management Initiative: ACC Maddukarrai Cement Works in association with the local Panchayat, and NGO Hand in Hand/SEED Trust launched the ?Clean & Green Madukkarai?. The vision behind the initiative was to make Madukkarai a plastic and garbage-free community by 2015.
Team Madukkarai also plans to set up a bio-gasifier plant which consumes the bio-waste and produce methane gas which will be converted to electricity. This electricity will be used for lighting the local street lamps.
Co-processing of pine needles as alternative fuel at Gagal: Every year, particularly during the summer months, large numbers of such fires create havoc in the forests of the sub Himalayas. Forest fires cause immense loss of nutrient, organic material from the soil, damage to soil micro-organisms, change in soil structure, destruction of plantations and local extermination of small animals and plants.
One of the main reasons of the fire spreading to a large region is the presence of large spreads of dry leaves and wood at the bottom of the forest cover. ACC Gagal proposed a workable solution to AK Thakur, DFO of Suket Forest Division, to permit the company?s CSR team along with local villagers to collect pine needles (locally called Chalaru) for co-processing in the cement kiln at Gagal.
Green Building Centres (GBC)
The ACC GBC is designed to be a state-of-the-art one-stop-shop for housing expertise which will offer locally produced, eco-friendly, easy-to-use and reasonably priced construction products.
oVisitors to the centre get a first-hand glimpse of locally produced and reasonably priced construction products, with ready access to knowledge and training on how to use and apply these products in a rural context. The ACC GBC comes fully equipped with a quality control laboratory. The centre also has equipment which enables builders to manufacture the products on their own and thus achieve further savings,? says Panda.
ACC has collaborated with architects and experts who can provide consultations regarding the project, product detail, application and design.
ACC associates with well-established enterprises as well as NGOs to promote local entrepreneurial talent. While the entrepreneur is responsible to manage the centre, ACC supports the venture by providing its branded products backed with proven technical expertise. The entrepreneur runs it as a business and thus has an incentive to work for its success, creating local jobs along the way. This helps in the development of talent among the local rural population. The materials available at the ACC GBC are produced from local resources and incorporate waste materials like fly ash, helping to reduce its carbon footprint significantly and in preserving earth?s natural resources, while simultaneously keeping costs down.
ACC?s stellar employees
ACC?s understands that CSR activities go a long way in building relationships. ACC has a large workforce of about 9,000 people, comprising experts in various disciplines assisted by a dedicated workforce of skilled persons. ACC employees, referred to as the ACC parivar, come from all parts of the country and belong to a variety of ethnic, cultural and religious backgrounds. This helps ACC in connecting better with various communities across the country and to understand their needs. The dedication of the employees to pursue the CSR goal of the company reflects the special stellar qualities they possess. This has led to ACC employees being recognized as ?value-adding? human capital in the industry.
Pratyush Panda, Head – CSR, ACC
ACC believes in empowerment of people and assisting them in sustainability of their livelihood, as that will make the community self- reliant and increase their self-respect.
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In a research-backed article, Dr SB Hegde examines why carbon-adjusted profitability and LC3 will decide the next set of winners in cement manufacturing.
The Indian cement industry has achieved world-class operational efficiency through lower specific energy consumption, high plant utilisation and a reduced average clinker factor of approximately 67.5 per cent. These traditional measures of operational excellence remain essential. However, they are no longer sufficient. Carbon now carries a measurable financial cost under India’s Carbon Credit Trading Scheme (CCTS) and under European carbon markets. Future leadership will be defined by carbon-adjusted profitability, the ability to generate strong returns while systematically lowering the carbon intensity of every ton sold.
Limestone calcined clay cement (LC3) offers a practical, scalable pathway to achieve this dual objective. By replacing up to 50 per cent of clinker with calcined clay and limestone, LC3 can reduce CO2 emissions by 30–40 per cent while delivering comparable or superior durability performance.
This article examines the technical foundations of LC3, European industrial practices, the emerging Indian carbon market and a concrete roadmap for Indian companies to embed carbon-adjusted metrics and LC3 into daily operations, incentives and commercial strategy.
Limits of traditional operational excellence
For many years, plant performance has been judged primarily by five indicators: specific heat consumption, specific power consumption, kiln and mill utilisation, clinker factor and overall equipment effectiveness. These metrics drove continuous improvement and helped the industry reduce energy use and increase the share of blended cement. Three structural changes have rendered them incomplete as sole measures of success.
First, carbon now carries a real or opportunity cost. Plants that improve volume or lower cash cost while raising or stagnating emissions intensity create a hidden liability that will surface as CCTS trading matures and as green procurement expands.
Second, lower-carbon products such as LC3 and high-performance blended cements are creating differentiated market segments. Customers in infrastructure, real estate and export-oriented construction are beginning to specify embodied-carbon limits.
Third, investors and lenders increasingly treat carbon intensity as a financial risk factor. Traditional KPIs can mask the divergence between short-term cash profit and long-term carbon-adjusted value.
What is carbon-adjusted profitability?
Carbon-adjusted profitability evaluates normal profit after explicit adjustment for carbon performance. A practical expression is:
Carbon-Adjusted EBITDA = Conventional EBITDA – Carbon Cost + Green Premium Income
Carbon cost may be an internal carbon price, the actual cost of purchasing Carbon Credit Certificates under CCTS, or the opportunity cost of high emissions relative to peers. Green premium income arises when customers pay more for verified lower-carbon cement or when the company sells surplus credits. Tracking both conventional and carbon-adjusted profit side-by-side gives management a clearer picture of value creation under evolving market rules.
Table 1. Traditional KPIs versus Carbon-Adjusted Leadership Metrics
Traditional Focus New Leadership Metric Why It Matters
Specific energy consumption Emissions intensity (kg CO2/t cement) Directly linked to future CCTS and CBAM costs
Kiln utilisation Carbon-adjusted contribution margin Reveals true value of incremental volume
Clinker factor Share of lower-carbon products sold (incl. LC3) Measures commercial success of the transition
Power cost per tonne Effective carbon cost per tonne sold Expose hidden liabilities
Absolute EBITDA Carbon-adjusted EBITDA + green premium Aligning profit with future market reality
LC3: Technical foundations and performance advantages
LC3 is a ternary blended cement that typically combines approximately 50 per cent clinker, 30 per cent calcined clay, 15 per cent limestone and 5 per cent gypsum (the classic LC3-50 formulation). The decisive technical advantage is that clay is calcined at 700–850 °C, far below the 1,450 °C required for clinker production. This lower temperature, together with the substantial reduction in clinker content, delivers CO2 reductions of 30–40 per cent relative to ordinary Portland cement (OPC).
Chemistry is synergistic. Calcined kaolinitic clay (metakaolin) reacts with calcium hydroxide from clinker hydration and with limestone to form additional C-A-S-H gel and carboaluminate phases. These phases densify the microstructure, reduce porosity and improve durability.
Field experience shows superior resistance to chloride ingress, sulphate attack and alkali–silica reaction. Early-age strength can match OPC with high-reactivity clays; later-age strengths routinely meet 42.5 and 52.5 grade requirements.
Importantly, LC3 does not require high-purity kaolin. Clays with 40 per cent or even lower kaolinite content can be activated successfully, expanding raw-material availability across India. Calcination can use adapted rotary kilns or dedicated flash calciners, making the technology compatible with existing plant infrastructure and far less capital-intensive than carbon capture.
Economic analyses show that LC3 can be produced at equal or lower cost than OPC in many locations because of reduced energy demand and cheaper clay. Life-cycle assessments consistently report 30–40 per cent lower embodied CO2 per tonne of cement.
Table 2. Comparative profile: OPC versus LC3-50
Parameter OPC LC3-50
Typical clinker content ~95 per cent ~50 per cent
CO2 emissions (relative) Baseline (≈0.85 t CO2/t cement process + fuel) 30–40 per cent lower
Clay calcination temperature Not applicable 700–850 °C
Key hydration products C-S-H, portlandite, ettringite C-A-S-H + carboaluminates
Chloride & sulphate resistance Good Superior
Production cost potential Baseline Equal or lower in most locations
Infrastructure compatibility Existing High (minor adaptations)
In India, commercial adoption has begun in earnest. JK Cement commenced the first commercial production of LC3 in the Indian subcontinent at its Mangrol plant in Rajasthan in 2025 under BIS standard IS 18189.
By early 2026, approximately 2,000 tonnes had been produced and sold, avoiding an estimated 500 tonnes of CO2. JK Lakshmi Cement followed with commercial launch of its Green PRO LC3 grade from the Jaykaypuram plant. As of mid-2026, two producers are supplying LC3 to the market. The first large-scale infrastructure application is the Noida International Airport (Jewar), where LC3 was used in the runway and a building complex, demonstrating full constructability and performance under demanding conditions. These early volumes are still small relative to national cement demand, but they mark the critical transition from pilot to commercial reality. Companies that scale capacity now will be positioned to capture both CCTS credits and emerging green-procurement demand.
Why the shift is accelerating
According to the World Bank’s State and Trends of Carbon Pricing 2026, direct carbon pricing now covers nearly 30 per cent of global greenhouse-gas emissions and generated more than US$107 billion in public revenue in 2025. The average global carbon price stands at approximately US$21 per tonne, although regional prices vary widely.
In Europe, the EU ETS price has traded near €80–85 per tonen in mid-2026. Free allocation for cement is being withdrawn in parallel with CBAM. European producers therefore face a clear signal: every tonne of avoided CO2 improves both compliance and competitiveness. Holcim has scaled calcined-clay production, including Europe’s first dedicated line at Saint-Pierre-la-Cour (France) and a second line in the Czech Republic (2026). Heidelberg Materials, Cementir (FUTURECEM) and others have commercialised low-clinker calcined-clay blends across multiple markets, showing that carbon-adjusted profitability is already reshaping capital allocation in the world’s most mature carbon market.India’s CCTS is now operational. Binding emission intensity targets apply to 186 cement facilities for FY 2025–26 and FY 2026–27. Average required reductions for integrated plants are modest (around 2.7 per cent by FY 2027), yet the direction is clear.
Trading of Carbon Credit Certificates is expected in the second half of 2026, with early prices likely in the `800–1,500 per tonne range. Plants that outperform targets can sell credits; those that underperform must buy them or face compensation. Cement is well positioned to be a net supplier of credits if clinker factor continues to fall through LC3 and other low-clinker systems.
Way forward for India
India starts from a strong baseline, world-class energy efficiency and a clinker factor already lower than the global average. The next competitive frontier is the deliberate reduction of process emissions through clinker substitution at scale. LC3 is uniquely suited to Indian conditions because suitable clays are widely distributed, the technology fits existing kiln and grinding infrastructure, and the resulting product can meet the performance demands of both infrastructure and building construction.
A practical national pathway contains five interlocking elements:
- Standards and acceptance: Accelerated finalisation and promotion of BIS specifications for calcined-clay and limestone–calcined-clay cements will remove a key barrier to commercial uptake. Alignment with European practice (EN 197-5) can facilitate knowledge transfer and export readiness.
- Supply-chain development: Investment in flash calcination capacity and systematic characterisation of regional clay deposits will secure reliable, low-cost feedstock. Existing rotary kilns can be adapted for initial volumes while dedicated calciners are built.
- Incentive alignment: Part of variable compensation for plant managers, sales teams and senior leadership should be linked to emissions intensity reduction and to the volume of lower-carbon products (including LC3) sold. Without this link, traditional volume and cost targets will continue to dominate behaviour.
- Product-level carbon accounting: Reliable measurement of emissions intensity at the individual cement grade level, supported by third-party verification where required, is essential for both CCTS compliance and credible green claims.
- Demand-side pull: Green public procurement policies that specify maximum embodied-carbon thresholds for major infrastructure projects will create a predictable market for LC3 and other low-carbon cements, accelerating scale and cost reduction.
Companies that treat LC3 as a strategic product line rather than a niche offering will be better positioned to generate surplus Carbon Credit Certificates, capture any emerging green premium, and protect margins as carbon costs rise.
Organisational changes required
Technical capability alone is insufficient. Three organisational shifts are required.
Daily management: Emissions intensity must appear on the same daily and monthly dashboards as heat consumption, power consumption and utilization. Plant reviews should examine both conventional and carbon-adjusted results.
Incentives: A meaningful portion of bonuses for plant heads, technical teams and sales leadership should be tied to lower emissions intensity and successful commercialisation of LC3 and other low-carbon grades.
Commercial approach: Sales teams need clear volume and pricing targets for lower-carbon products, supported by technical service that helps customers specify and place the material correctly. Without commercial pull, excellent technical performance remains under-utilised.
Table 3. Three-stage roadmap to carbon-adjusted profitability
Time Horizon Priority Actions Expected Outcome
Next 12 months Add emissions intensity to plant dashboards; establish internal carbon price; initiate LC3 pilot production and customer trials Visibility and early organisational learning
12–24 months Revise incentive systems; scale LC3 and other low-carbon grades to key accounts; secure third-party verification capability People and sales aligned with carbon goals
24–36 months Embed carbon-adjusted metrics in board reporting and capital allocation; expand calcined-clay capacity Full system integration and competitive advantage
Questions senior leaders should ask
Boards can accelerate the transition by insisting on answers to a short list of questions:
• Is our carbon-adjusted profit improving, stable or declining relative to conventional EBITDA?
• Did recent volume growth improve or worsen our emissions intensity?
• What share of sales already comes from lower-carbon products, including LC3, and what is the trajectory?
• How exposed is our capital expenditure plan to rising carbon costs under CCTS and potential CBAM-related requirements?
• Do our incentive systems still reward only volume and cost, or have they been updated to include carbon performance?
Treating carbon with the same seriousness as energy cost or kiln utilization does not diminish operational excellence; it expands the definition of excellence to match the new competitive reality.
Looking ahead
By 2030 the gap between leading and lagging cement companies will not be decided by who records the lowest specific heat consumption. It will be decided by who delivers the strongest carbon-adjusted profits.
Absolute emissions may still rise as national production grows. That is not the issue. Companies that reduce intensity year after year and successfully sell cleaner products will pull ahead in both domestic and export markets. Those that do not will fall behind, even if their traditional efficiency numbers look strong.
Operational excellence built the Indian cement industry. It remains the foundation. It is no longer the complete picture. Carbon-adjusted profitability is the clearer measure of success.
LC3 is not a distant technology. It is available now. It cuts CO3 by 30–40 per cent, works with existing plants, and is already in commercial production in India. Companies that treat it as a strategic product, not a pilot, will protect their margins and generate tradable credits.
Leaders who act now will place carbon metrics on daily dashboards, link incentives to intensity reduction and LC3 sales, invest in calcined-clay capacity, and build commercial capability to sell lower-carbon products. They will shape the next chapter of the industry.
References
- World Bank. (2026). State and Trends of Carbon Pricing 2026. Washington, DC: World Bank Group.
- International Carbon Action Partnership (ICAP). (2026). India Carbon Credit Trading Scheme – Status and Coverage. Berlin: ICAP.
- Ministry of Environment, Forest and Climate Change / Bureau of Energy Efficiency. (2025). Greenhouse Gases Emission Intensity Target Rules, 2025. New Delhi: Government of India.
- Scrivener, K., Martirena, F., Bishnoi, S., & Maity, S. (2018). Calcined clay limestone cements (LC3). Cement and Concrete Research, 114, 49–56.
- RMI. (2024). The Business Case for LC3. Rocky Mountain Institute.
- European Commission. (2026). EU Emissions Trading System – Allowance Price Data and Free Allocation Phase-out Schedule. Brussels.
- Holcim. (2025–2026). Scaling Calcined Clay for Sustainable Building – Corporate Updates on European and Latin American Capacity. Zurich: Holcim Ltd.
- LC3 Project / EPFL. (2026). LC3 – A Guide to Best Practices for Scalable, Affordable and Sustainable Low-Carbon Building. Lausanne: École Polytechnique Fédérale de Lausanne.
- Business Today / Industry Reports. (2026). First Large-Scale LC3 Application at Noida International Airport, Jewar. New Delhi.
- NITI Aayog / Industry Analyses. (2026). Roadmap and Baseline Performance Indicators for the Indian Cement Sector. New Delhi.
- Springer / Innovative Infrastructure Solutions. (2026). LC3 Systems: A Review of Chemistry, Performance, Durability and Sustainability toward Market Adoption.
- Cementir Holding / Industry Sources. (2025–2026). FUTURECEM and Related Low-Clinker Technologies in Europe.
- Climate Risk Horizons & Independent Analyses. (2026). Assessment of Emission Intensity Targets under India’s CCTS for Cement and Other Hard-to-Abate Sectors.
- GCCA / TERI. (Various years). Decarbonization Roadmaps for the Indian Cement Industry.
- EN 197-5:2021. Cement – Part 5: Portland-composite cement CEM II/C-M and Composite cement CEM VI. European Committee for Standardization.
Concrete
More Oversight Makes Cement Plants Less Safe
Published
3 days agoon
August 28, 2026By
admin
Dijam Panigrahi makes a counterintuitive but data-backed argument that routing every sensor alert through human approval does not make cement plants safer.
India’s cement industry has spent the last two years wiring kilns, mills and coolers with sensors and automated control systems, and the safety case for doing so is strong on paper. Contract workers still make up the majority of the industry’s workforce, and fatal accidents remain a recurring problem. The Indian National Cement Workers Federation has noted that around 83 per cent of workers in the sector hold precarious positions, a fact that resurfaced after an oxygen cylinder explosion killed three contract workers at a plant in Chhattisgarh.
Industry tallies compiled by IndustriALL found cement plants recorded at least seventeen accidents in one year with 21 workers killed, and ten accidents the following year with nine killed, most of them contract staff. Automated monitoring, in theory, closes that gap. A sensor never gets complacent and never skips a check because a shift is short staffed.
However, plants that respond by routing every anomaly reading to a person for approval are quietly building a system that fails the same way understaffing does. When operators receive dozens of flagged deviations a shift, most of them minor, they learn a simple lesson: the fastest way through the queue is to approve without reading closely. The safety benefit disappears, not because the technology failed, but because the humans supervising it adapted to the volume.
Why alerts get ignored
A study cited by manufacturing technology publisher Applied SmartFactory found more than 95 per cent of alarms in a semiconductor fab were low priority, and only about 4 per cent ever triggered an action, with just 100 out of 5,000 alarms accounting for 70 per cent of all alarm activity. The mechanism is the same whether the trigger is a vibration sensor or an AI model flagging a kiln temperature swing. Once the ratio of noise to signal crosses a threshold, workers stop treating the system as a decision aid and start treating it as a formality to clear.
The scale of AI deployment underway makes this more than a theoretical risk. Stanford’s 2026 AI Index Report found organisational adoption of AI has reached 88 per cent, even as documented AI incidents rose to 362 in 2025, up sharply from 233 the year before, according to analysis of the report. The Index also found only about a third of organisations have adopted a formal governance framework, with NIST’s AI Risk Management Framework cited by 33 per cent and ISO/IEC 42001 cited by 36 per cent.
Most manufacturers are deploying monitoring systems faster than they are building the judgment for when a flagged event actually needs a person’s attention. In India, plants run by JK Cement have begun pairing CCTV feeds with AI to define safe zones around heavy machinery, a promising direction that still depends on operators trusting and reading the alerts the system generates.
A three-tier model for cement plant
The fix is not less monitoring or more monitoring. It is classifying decisions by risk and by novelty, rather than treating human oversight as a single switch that is either on or off. A workable model sorts factory floor events into three tiers.
The first tier, proceed, covers deviations the plant has seen before that fall within known safe bounds, such as a kiln feed rate adjustment within an established range. These should run without a stop for approval, because routing them to a person only trains that person to click through.
The second tier, pause, covers events that are unusual but not yet dangerous, such as a vibration reading trending toward a limit or a fuel blend shifting outside its typical mix. These warrant a brief human check before the system proceeds, giving an operator the chance to apply judgment the model does not yet have.
The third tier, escalate, covers events that are both high risk and unfamiliar, such as a pressure reading combined with a temperature spike that has no close precedent in the plant’s history. These should stop the process entirely and require a decision from someone with the authority to shut down a line.
Who should set the threshold
Where these tiers get drawn matters as much as the framework itself. Threshold setting is frequently handed to the vendor supplying the monitoring software or to a plant’s IT department, both of which understand the technology but not the specific tolerances of a given kiln, mill or line. Operations staff, who know that a particular grinding unit runs hotter under monsoon humidity or that a calciner behaves differently after a refractory reline, are better positioned to calibrate what counts as routine on their own equipment.
Handing threshold ownership to operations does not remove IT or vendors from the process, but it puts the calibration decision closest to the people who live with its consequences on the floor.
Signals that oversight is actually working
A few concrete indicators reveal whether a monitoring setup is functioning as intended or simply providing the appearance of safety. The escalation rate over time is the first: a rate that stays flat or climbs slowly as operations mature is healthy, while one that spikes and then falls sharply often means operators have started overriding the system rather than engaging with it. Time to resolution is the second: escalations that take progressively longer to close suggest fatigue or confusion about ownership, not diligence. The third, and most telling, is how accurate the system’s own uncertainty estimates turn out to be, meaning whether events flagged as high risk actually correlated with real incidents, and whether events waved through stayed incident free. A system whose escalations do not track with actual outcomes trains operators toward the same complacency that unmonitored equipment produces.
None of this argues against automation in Indian cement manufacturing, where a labor structure built on contract work and a track record of serious accidents make better monitoring an urgent need. It argues for treating human oversight as a design problem with three distinct settings, rather than a single
dial turned up whenever a plant wants to look safer on paper.
About the author:
Dijam Panigrahi, Co-founder and COO, GridRaster, is a spatial computing platform for industrial enterprises and manufacturers.
Concrete
The biggest gap arises from inconsistent leadership
Published
3 days agoon
August 28, 2026By
admin
Anuj Kumar Mathur, Safety Consultant, stresses on the importance of closing the enduring gap between what safety systems say on paper and what actually happens on the plant floor.
Robust safety manuals, certified PPE and digital monitoring systems mean little if the culture on the plant floor does not enforce them. Safety Consultant Anuj Kumar Mathur has spent enough time in high-risk operations to know precisely where that gap opens and why it persists. In this exclusive interaction, he suggests feasible ways to strengthen the safety culture at a manufacturing unit.
Having led safety across high-risk fuel operations, what lessons can the cement industry adopt to strengthen its safety culture beyond regulatory compliance?
Beyond regulatory compliance, the cement industry should embed visible leadership commitment, proactive risk assessment, process safety management, strong contractor control, near-miss learning, and employee engagement to build a resilient safety culture that prioritises prevention, operational discipline and continuous improvement over mere compliance.
As cement plants become increasingly automated and digitally connected, how should organisations redefine their approach to process safety and operational risk?
As cement plants become increasingly automated, organisations should integrate process safety with digital risk management by strengthening cybersecurity, real-time monitoring, predictive maintenance, management of change and workforce competency to ensure safe, reliable and resilient operations.
What are the most common gaps between having robust safety systems on paper and achieving consistent safety performance on the ground?
The biggest gap arises from inconsistent leadership commitment on ground, weak safety culture, inadequate supervision, poor risk communication, insufficient workforce engagement specially, ineffective training and failure to translate procedures into disciplined execution, accountability and continuous monitoring at the operational level.
How can cement manufacturers better integrate contractor safety, leadership accountability and workforce behaviour to build a truly zero-harm workplace?
Manufacturers can achieve a zero-harm workplace by enforcing uniform safety standards for employees and contractors, strengthening leadership accountability, promoting proactive hazard reporting, enhancing competency through continuous training and fostering a culture where safe behaviour is recognised, expected and consistently practiced
What emerging technologies and safety practices do you believe will have the greatest impact on risk prevention in cement manufacturing over the next decade?
Artificial intelligence, IoT-enabled monitoring, predictive analytics, digital twins, wearable safety devices, drones, robotics and advanced process automation will significantly enhance hazard detection, predictive maintenance, real-time risk management, and worker protection, enabling safer and more resilient cement manufacturing.
IoT-enabled monitoring is the use of interconnected sensors and smart devices to continuously collect, transmit and analyse real-time data from equipment, processes and the work environment. This enables early detection of unsafe conditions, equipment failures, or abnormal operating parameters, allowing timely intervention before incidents occur.
In cement manufacturing, IoT-enabled monitoring can be used for:
• Monitoring kiln, crusher, and mill temperatures, pressures, and vibrations.
• Detecting overheating of bearings and motors to prevent failures.
• Monitoring dust concentration, gas leaks (CO, SO2, NOx), and oxygen levels.
• Tracking conveyor belt alignment and condition.
• Monitoring structural health of silos and
storage facilities.
• Tracking worker location and exposure to hazardous environments using wearable devices.
• Providing real-time alerts and predictive maintenance recommendations.
Benefits:
• Early hazard detection
• Reduced equipment downtime
• Improved process safety and reliability
• Lower maintenance costs
• Enhanced regulatory compliance
• Better decision-making through real-time data and analytics
In simple terms, IoT-enabled monitoring transforms periodic manual inspections into continuous, real-time surveillance of plant safety and equipment health.
CarbonStrong Raises Rs 125 Million To Scale Low Carbon Cement Tech
Protect Your Margins
More Oversight Makes Cement Plants Less Safe
The biggest gap arises from inconsistent leadership
The Future of Vertical Material Handling
CarbonStrong Raises Rs 125 Million To Scale Low Carbon Cement Tech
Protect Your Margins
More Oversight Makes Cement Plants Less Safe
The biggest gap arises from inconsistent leadership

