Economy & Market

Clean & Green

Published

11 years ago

February 28, 2015

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There is renewed focus on making the cement industry cleaner and greener by optimizing various processes of manufacturing, storage and distribution that will help reduce the carbon footprint and make the industry far more profitable and sustainable.
Though Indian cement industry is one of the most efficient in the world, it still produced 137 tonne of CO2 in 2010 – approximately 7 per cent of India?s total manmade CO2 emission. The Indian cement industry has made strong efforts to reduce its carbon footprint. It has successfully reduced CO2 emission from 1.12 kg CO2 per tonne cement in 1996 to 0.719 kg CO2/tonne cement in 2010. Today, awareness of sustainability in cement industry has picked up momentum and several efforts are on integrating the sustainability issues (essentially in energy conservation, resource optimisation and environment) with business planning and reviews. Cement industry needs to focus on five broad categories of carbon emission reduction levers, viz., thermal and electrical energy efficiency, co-processing of alternate fuels and raw materials, clinker substitution, waste heat recovery for power generation and adoption of new technologies like CCS (Carbon Capture and Storage), algal growth promotion and use of bio fuels.

Technological improvement is a key pillar in the cement industry?s drive to reduce emissions levels and energy consumption. Research and development investments have enabled cement producers worldwide to install modern, energy-efficient technology in new, and to some extent, in existing, cement plants. New technologies have enabled increased use of clinker substitutes and alternative fuels in cement production, leading to significant direct (eg, from limestone decarbonisation and fuel burning) CO2 emissions reductions. Technology developments have also enabled significant indirect emissions reductions (eg, from electricity use). Indian cement industry have comparatively better technology as most of the plants are new and they are equipped with latest technologies.

Says JC Toshniwal, Executive Director, Wonder Cement, ?Almost all cement plants are today working on improving their fuel efficiency, power efficiency, renewable energy, waste heat recovery (WHR), etc. So all these are now focus points towards sustainability in the industry. Cement industry in India is one of the most efficient globally, may be better than global level, in terms of power and fuel consumption.? He adds, ?Now the focus has gradually shifted towards renewable energy, WHR, and blended cement which also help in reducing CO2 generation. The industry is also working on reduction of SOx and NOx, which are adverse to the environment. For this purpose, cement manufacturers are setting up different types of calciners like two-stage calciners where NOx generation is reduced. In the next 3-4 years, you can see some drastic changes in the industry on these parameters.?

Anil Kumar Pillai, Chief Executive Officer, JSW Cement, throws light on some of the possible ways to increase sustainability in cement production. According to Pillai, use of the latest technology equipment/technology up-gradation for older plants is a must. Waste heat recovery boilers should be installed to generate power from waste hot gases; use of alternative raw materials; use of fluxes to lower the burning temperature in cement kiln to lower the energy consumption; use of chemical gypsum to the optimum level so that mineral gypsum may be conserved; use of grinding aids to reduce electrical energy consumption; and production of blended cements such as PPC, PSC, limestone blended cement etc are some other areas. He adds, ?However, judging from the possibilities to improve sustainability by optimizing the raw material supply, adopting latest energy efficient technologies, optimizing the production process, substituting alternative fuels and raw materials, and finally blending the final product with suitable admixtures, it seems that the emphasis of most cement producers is still focused on selected parts of these different possibilities, especially the final substitution of cement by various mineral admixtures. It is therefore imperative for the cement producers to adapt fast enough and to a sufficient degree to exploiting all the possible options to reduce their environmental footprint.?

Key levers to reduce emission in the Indian cement industry are increased rates of blending leading to a reduction in clinker to cement ratio, increased use of AFR, widespread implementation of WHR, transportation of raw materials through conveyor belt instead of road transport, installation of various VFD/high energy efficient equipment to reduce SPC. Cement manufacturing process from surface mining/quarrying, locating main acclimatisation unit near limestone deposits, transporting clinker through rail, transporting fly ash through pipeline are few measures which will help in achieving and sustaining this targets.

?Blended cement proportion in total Indian cement industry is approximately 70 per cent. Manufacturing of PPC results in approximately 20-30 per cent reduction in CO2 against 1 MT of OPC production also manufacturing of PSC results in 30-35 per cent reduction in CO2 mitigation,? says VP Sharma, Managing Director & CEO, ABG Cement. ?We at ABGCL will be producing 100 per cent blended cement. The target goal for ABGCL to reduce carbon footprint by 2020 is 30 per cent for its equivalent of OPC production by employing different methods like waste heat recovery, alternate fuel firing, installing solar panels on major building roofs and producing blended cement,? he points out. According to Sharma, Indian cement industry has huge potential in reduction of usage of fossil fuel by using alternative fuels – hazardous AFR like slag and non-hazardous AFRs like pet coke, shredded tyres, rice husk, bio masses, municipal waste etc. Present thermal substitution rate by usage of AFR is as low as 1-1.2 per cent against 40 per cent achieved by developed countries. He adds, ?The cement industry has shown great enthusiasm for installation of waste heat recovery system but we still have way to go for achieving its full potential. Installation of waste heat recovery system shall be made compulsory for all new cement projects and proper studies shall be made to make it highly efficient by 6/5 stage pre-heater systems. We are already in discussion with various vendors for installation of WHR system of 8-10 MW power generations with our six-stage pre-heater.?

Says Prabir Ray, Head RMC, Building Products Division and Key Accounts, UltraTech Cement, ?UltraTech is committed towards improving its sustainable footprint through constant innovation. We focus on producing quality products that meet the needs of our customers, while ensuring that we reduce our environmental footprint, take care of our employees? health and safety, and contribute to wider initiatives for our communities. We are a member of Cement Sustainability Initiative (CSI), and we aim to improve our sustainable footprint in waste management, energy reduction, water conservation, biodiversity management, afforestation and emission reduction.? He further adds, ?We are strategically focusing on development of products and services that help customers build sustainable structures – structures which are more durable, more resource-efficient, more cost effective and more conducive to the human lifestyle. Innovation is the tool we have adopted to spearhead scientifically engineered products that complement future-ready construction practices.?

PAT impact
According to Pillai, Perform – Achieve – Trade (PAT) compliance could be treated as an important milestone in the journey towards energy excellence. With ever-rising cost of input energy, companies aspiring for such excellence are bound to gain sustainable strategic advantage and earn handsome dividends. By achieving PAT target, not only compliance is met but also organizations can move toward triple bottom line reporting. In spite of many benefits of the PAT scheme, the underlying principles of National Mission for Enhanced Energy Efficiency (NMEEE) can only be realized if PAT is seen as milestone and not a destination in the long journey toward energy excellence. PAT scheme rewards the over achiever and penalise the underperformer.

Says Kamal Kumar, Chief General Manager, Holtec Consulting, ?Introduction of PAT scheme for energy intensive industries improve energy efficiency and facilitates cost effectiveness by certifying energy saving measures that could be traded through its market-based mechanism. It is a good scheme to achieve the target, but the parameters which have been fixed by the BEE are quite stringent, specifically for the old vintage plants. Largely, the PAT scheme will facilitate in reducing the energy consumption levels of the system.?

Reducing energy consumption will not only benefit the DC but would also have a lasting impact on the planet. One tonne (tonnes of oil equivalent) reduction in energy consumption can potentially reduce carbon dioxide emissions by 3.18 tonne. In addition to the above, the BEE conducts conferences and workshops on energy efficiency and advanced technologies. Companies could use such programs to train their employees for sustainable energy management. These employees could be further empowered by management to achieve higher performance through suitably designed key performance indicators (KPI).

?The PAT scheme has generated a lot of ripples in the energy intensive process industries and is perceived as a source of capital outflows in tough economic times. The PAT scheme aims at reducing the energy consumption per unit of output product. In the current situation, when increasing competition is already putting pressure on margins, reduction in energy cost will help boost the bottomline. For example, energy cost accounts for 35-40 per cent of total manufacturing expenses for Designated Consumers? (DCs) in the cement sector. So, reduction of 10 per cent in the energy cost could potentially boost operating profit margins by around 20 per cent,? says Pillai. He adds, ?With the new Companies Act mandating CSR spend, increased profit margins would also allow companies to contribute some portion of their profits to strengthening the community. Hence, the PAT scheme hits the sweet spot between the three pillars of the triple bottom line.?

The way ahead
The Indian cement industry is probably one of the most energy-efficient in the world today. Some of the plants have thermal and electrical specific energy consumption (SECs) comparable to the best cement plants in the world resulting in low emission intensities. The industry which is on the top in the Certified Emission Reductions Projects list registered with the Clean Development Mechanism (CDM) of the Kyoto Protocol has contributed significantly to the eco-friendly use of industrial wastes and thereby has succeeded in reducing its carbon footprint. However, the opportunity for improvement does exist, particularly in the area of five key levers that can contribute to emissions reductions such as alternative fuel and raw materials; energy efficiency; clinker substitution; waste heat recovery and newer technologies. This roadmap sets out a pathway by which the Indian cement industry can reach its targets to improve energy efficiency and reduce CO2 emissions by 2050, thereby laying the foundation for low-carbon growth in the years beyond.

MAJOR CHALLENGES

Selection of plant location – proximity sources of raw material, additive (gypsum, slag, fly ash, AFR etc)
Highly energy-intensive industry using non-renewable raw materials and thus emits large amount of CO2 especially from limestone and coal burning
Older cement plants have to invest heavily for technological up-gradation Marginal grade of limestone has to be compensated with low ash coal imported from South Africa, Indonesia etc.
Many limestone reserves are located in ecologically sensitive areas
About 90 per cent of limestone in India is extracted by blasting and less than 10 per cent by surface miner. Blasting has much higher environmental impact ? dust, noise, vibration, fly rock generation etc. Most of the limestone is quite hard and thus not suitable for extraction with surface miner
Solid waste generation and its proper management in mines (low grade limestone, clay etc)
Product is not recyclable
Challenges in maintaining stringent dust emission levels while material storage and handling
Challenges in maintaining NOx levels
Scarcity of water in most areas
Lack of railway siding at many plants
Availability of wagons from railways
Market pressure for high compressive strength
Lack of awareness among customers towards the environmental benefits of using blended cement (PSC, PPC etc)
Lack of captive power generation at most plants – high transmission losses have to be incurred while sourcing power from long distances

PERFORM – ACHIEVE – TRANSFER
Perform – Achieve-Trade (PAT) is the Energy Conservation drive launched by BEE (Bureau of Energy Efficiency) under National Mission for Enhanced Energy Efficiency. Base line figures are average of past three years (2007-08, 2008-09 & 2009-10). Target has been given by BEE to reduce from baseline figures in a span of three years, starting April, 2012 and ending March 2015. PAT is applicable for energy intensive industries. It covers 563 designated consumers in eight sectors. The energy specific improvement target would have to be almost ?Unit Specific?. Each Designated Consumers (DC) is mandated to reduce its Special Energy Consumption (SEC) by a fixed percentage based on its current SEC (or baseline SEC) within the sectorial bandwidth. In Indian scenario, if we look at percentage wise, on an average 40 per cent energy consumed by industry, 7 per cent by Agriculture and Fisheries, 43 per cent commercial and services, 10 per cent household and others. This PAT scheme is participated by ?Designated Consumers? of energy intensive sectors – thermal power plant/iron and steel/cement/fertiliser/textile/pulp and paper/chloro-alkali. At the end of third year, Energy Saving Certificate will be issued to a DC, who will achieve target reduction from baseline. DC who will fail to achieve the target, penalty linked with value of non-compliance will be imposed. This ES Certificate can be traded to others who will fail to meet their target. This trading can be carried out between any two DCs. The exchange will also maintain data on traded prices, traded volume and trend. Special trading platform will be created in the two Power Exchanges (IEX and PXIL). This scheme has to come out very effective across industry. It is directly linked with profitability in long term. It will help in reducing cost and improve profitability.

GREENCO RATING
The first of its kind in the world the GreenCo Rating System by CII Godrej GBC, provides a much needed holistic framework to evaluate industries on their environmental performance. CII, through an extensive stakeholder consultation and interaction with experts, have developed the guidelines of GreenCo. This rating will act as a milestone for companies pursuing green to assess where they stand and help them in defining the path forward. Vasavadatta Cement, Sedam was awarded GreenCo Gold by the Confederation of Indian Industry (CII) for the year 2012-15. It is the first cement plant to be certified under GreenCo, Green Company Rating System. Under the leadership of CK Jain, Unit Head, Vasavadatta Cement, Sedam has been able to achieve GreenCo Gold due to tremendous amounts of hard work taken by the plant for years together on various aspects of sustainability. Another major cement company that has bagged the GreenCo Certification is ACC, Thondebhavi Cement Works which has been rated GreenCo Silver.

Says Jain, ?The Green Company Rating System has helped us in effectively communicating to our stake holders about our commitment to sustainable growth, to reduce consumption of natural resources without jeopardising growth of the company. According to him one of the most important reasons behind applying for the rating system was to understand the company?s environmental performance on various aspects of environmental sustainability. This includes areas such as energy efficiency, water conservation, greenhouse gas emission, waste management, material conservation, recycling and recyclability, green supply chain, product stewardship, life cycle analysis, other areas like ventilation, biodiversity preservation, innovation, etc.

Jain further adds, ?GreenCo gives energy efficiency 20 per cent weightage. Energy costs also account for approximately 45 per cent of our expenditure. The system emphasises the need to have an energy policy, formation of cross-functional energy management cell, energy metering and monitoring systems, setting internal, national and international benchmarks and equipment wise efficiency monitoring. All these initiatives have a direct impact on the energy consumption of the plant as well as energy costs. The rating system has helped us in achieving our objectives of understanding our environmental performance on various aspects of environmental sustainability and in framing a long term roadmap on how to be greener.?

Economy & Market

SEW-EURODRIVE India Opens Drive Technology Centre in Chennai

Published

2 weeks ago

March 25, 2026

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The new facility strengthens SEW-EURODRIVE India’s manufacturing, assembly and service capabilities

SEW-EURODRIVE India has inaugurated a new Drive Technology Centre (DTC) in Chennai, marking a significant expansion of its manufacturing and service infrastructure in South India. The facility is positioned to enhance the company’s responsiveness and long-term support capabilities for customers across southern and eastern regions of the country.

Built across 12.27 acres, the facility includes a 21,350-square-metre assembly and service setup designed to support future industrial growth, evolving application requirements and capacity expansion. The centre reflects the company’s long-term strategy in India, combining global engineering practices with local manufacturing and service capabilities.

The new facility has been developed in line with green building standards and incorporates sustainable features such as natural daylight utilisation, solar power generation and rainwater harvesting systems. The company has also implemented energy-efficient construction and advanced climate control systems that help reduce shopfloor temperatures by up to 3°C, improving production stability, product quality and working conditions.

A key highlight of the centre is the 15,000-square-metre assembly shop, which features digitisation-ready assembly cells based on a single-piece flow manufacturing concept. The facility also houses SEW-EURODRIVE India’s first semi-automated painting booth, aimed at ensuring uniform surface finish and improving production throughput.

With the commissioning of the Chennai Drive Technology Centre, SEW-EURODRIVE India continues to strengthen its manufacturing footprint and reinforces its long-term commitment to supporting industrial growth and automation development in India.

Concrete

Material Flow Efficiency

Published

3 weeks ago

March 18, 2026

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We explore how material handling systems are becoming strategic assets in cement plants, enabling efficient movement of raw materials, clinker and finished cement. Advanced conveying, automation and digital technologies are improving plant productivity while supporting energy efficiency and sustainability goals.

Material handling systems form the operational backbone of cement plants, enabling the efficient movement of raw materials, clinker and finished cement across complex production networks. With India’s cement industry producing over 391 million tonnes of cement in FY2024 and possessing an installed capacity of around 668 mtpa, according to the CRISIL Research Industry Report, 2025, efficient material logistics have become critical to maintaining plant productivity and cost competitiveness. At the same time, cement production is highly energy intensive and contributes around 7 per cent to
8 per cent of global CO2 emissions, making efficient material flow and logistics optimisation essential for reducing operational inefficiencies and emissions states the International Energy Agency Cement Technology Roadmap, 2023. As plants scale capacity and integrate digital technologies, modern material handling systems, ranging from automated conveyors to intelligent stockyards, are increasingly recognised as strategic assets that influence plant stability, energy efficiency and environmental performance.

Strategic role of material handling
Material handling is no longer viewed as a secondary utility within cement plants; it is now recognised as a strategic system that directly influences production efficiency and process stability.
Cement manufacturing involves the continuous movement of large volumes of limestone, clay, additives, clinker and finished cement across multiple production stages. Even minor disruptions in conveying systems or storage infrastructure can lead to kiln feed fluctuations, production delays and significant financial losses. According to Indian Cement Industry Operational Benchmarking Study, 2024, unplanned downtime in large integrated cement plants can cost between Rs.15–20 lakh per hour, highlighting the economic importance of reliable material handling systems.
Modern cement plants are therefore investing in advanced mechanical handling systems designed for high throughput and operational reliability. Large integrated plants can process over 10,000 tonnes per day of clinker, requiring highly efficient conveying systems and automated stockyards to maintain continuous material flow, suggests the International Cement Review Industry Analysis, 2024. Efficient material handling also reduces spillage, minimises dust emissions and improves workplace safety. As cement plants become larger and more technologically advanced, the role of material handling is evolving from simple transport infrastructure to a critical operational system that supports both productivity and sustainability.

From quarry to plant
The transport of raw materials from quarry to processing plant represents one of the most energy-intensive stages of cement production. Traditionally, limestone and other raw materials were transported using diesel-powered trucks, which resulted in high fuel consumption, dust generation and increased operational costs. However, modern plants are increasingly adopting long-distance belt conveyors and pipe conveyors as a more efficient alternative. These systems allow continuous material transport over distances of 10–15 kilometres, significantly reducing fuel consumption and operating costs while improving environmental performance, states the FLSmidth Cement Industry Technology Report, 2024.
Milind Khangan, Marketing Manager, Vertex Market Research & Consulting, says, “Efficient and enclosed handling of fine materials such as cement, fly ash and slag requires modern pneumatic conveying systems. By optimising the air-to-material ratio, these systems can reduce energy consumption by 10 per cent to 15 per cent while ensuring smooth material flow. Closed-loop conveying further minimises dust loading and improves the performance of bag filters, supporting cleaner plant operations. In addition, flow-regulated conveying lines help prevent clogging and maintain reliable dispatch performance. Overall, automation in pneumatic conveying delivers immediate operational benefits, including improved equipment uptime, lower energy use, reduced material spillage and more stable kiln and mill performance.”
Pipe conveyor systems are particularly gaining traction because they provide a completely enclosed transport system that prevents material spillage and dust emissions. According to global cement engineering studies, conveyor-based transport can reduce energy consumption by up to 30 per cent compared to truck haulage, while also improving operational reliability. Several cement plants in India have already implemented such systems to stabilise quarry-to-plant logistics while reducing carbon emissions associated with diesel transport.

Stockyard management and homogenisation
Stockyards play a critical role in maintaining raw material consistency and stabilising kiln feed quality. Modern cement plants use advanced stacker and reclaimer systems to ensure efficient storage and blending of raw materials before they enter the grinding and pyroprocessing stages. Automated stacking methods such as chevron or windrow stacking enable uniform distribution of materials, while bridge-type or portal reclaimers ensure consistent extraction during kiln feed preparation. These systems are essential for maintaining stable chemical composition of raw meal, which directly influences kiln efficiency and clinker quality. The Cement Plant Operations Handbook, 2024 indicates that advanced homogenisation systems can reduce raw mix variability by up to 50 per cent, significantly improving kiln stability and energy efficiency. Integrated stockyard management systems also incorporate sensors for monitoring bulk density, moisture levels and stockpile volumes, enabling real-time control over material blending processes.

Clinker and cement conveying technologies
Once clinker is produced in the kiln, it must be efficiently transported to storage silos and subsequently to grinding and packing units. Modern cement plants rely on high-capacity belt conveyors, bucket elevators and pneumatic conveying systems to manage this stage of material flow. Steel-cord belt bucket elevators are now capable of lifting materials to heights exceeding 120 metres with capacities reaching 1,500 tonnes per hour, making them suitable for large-scale clinker production lines, states the European Cement Engineering Association Technical Paper, 2023.
For fine materials such as cement, fly ash and slag, pneumatic conveying systems provide a reliable and dust-free solution. These systems transport powdered materials using controlled airflow, ensuring enclosed and contamination-free movement between grinding units, silos and packing stations. Optimised pneumatic systems can reduce energy consumption by 10 per cent to 15 per cent compared to older conveying technologies, while also improving plant cleanliness and environmental compliance, according to the Global Cement Technology Review, 2024.

Automation and digitalisation
Digitalisation is transforming material handling systems by introducing real-time monitoring, predictive maintenance and automated control. Advanced sensors and Industrial Internet of Things (IIoT) platforms enable plant operators to track conveyor health, stockpile levels and equipment performance in real time. Predictive maintenance systems analyse vibration patterns, temperature fluctuations and equipment load data to detect potential failures before they occur. According to McKinsey’s Industry 4.0 Manufacturing Report, 2023, for heavy industries, digital monitoring and predictive maintenance technologies can reduce equipment downtime by up to 30 per cent and increase productivity by 10 per cent to 15 per cent. Digital control centres also integrate data from conveyors, stacker reclaimers and dispatch systems, enabling centralised management of material flows from quarry to dispatch.

Handling of AFR
The growing adoption of Alternative Fuels and Raw Materials (AFR) has introduced new challenges and opportunities for material handling systems in cement plants. AFR materials such as refuse-derived fuel (RDF), biomass and industrial waste often have irregular particle sizes, variable moisture content and lower bulk density compared to conventional fuels. As a result, specialised storage, dosing and feeding systems are required to ensure consistent kiln combustion. According to the Cement Sector Decarbonisation Roadmap published by NITI Aayog in 2026, increasing the use of AFR could enable India’s cement sector to achieve thermal substitution rates of around 20 per cent in the coming decades. To support this transition, plants are investing in automated receiving stations, shredding units, drying systems and precision dosing equipment to stabilise AFR supply and combustion performance.

Energy efficiency and dust control
Material handling systems also play a crucial role in improving plant energy efficiency and environmental performance. Modern conveyor systems equipped with variable speed drives and energy-efficient motors can significantly reduce electricity consumption. Permanent magnet motors used in conveyor drives can deliver 8 per cent to 12 per cent energy savings compared to conventional induction motors, improving overall plant energy efficiency according to the IEA Industrial Energy Efficiency Study, 2023. Dust control is another major concern in cement plants, particularly during material transfer and storage operations. Enclosed conveyors, dust extraction systems and advanced bag filters are widely used to minimise particulate emissions and improve workplace safety.

Future trends in material handling
The future of material handling in cement plants will be shaped by automation, digitalisation and sustainability considerations. Emerging technologies such as AI-driven logistics optimisation, autonomous mobile equipment and digital twins are expected to further improve plant efficiency and operational visibility. Digital twin models allow engineers to simulate material flow patterns, optimise stockyard operations and predict equipment performance under different operating conditions. According to the International Energy Agency Digitalisation and Energy Report, 2024, the adoption of advanced digital technologies could improve industrial energy efficiency by up to 20 per cent in heavy industries such as cement manufacturing. As cement plants expand capacity and adopt low-carbon technologies, intelligent material handling systems will play a critical role in maintaining productivity and reducing environmental impact.

Conclusion
Material handling systems have evolved from basic transport infrastructure into strategic operational systems that directly influence plant efficiency, reliability and sustainability. From quarry transport and automated stockyards to digital dispatch platforms and advanced conveying technologies, modern material handling solutions enable cement plants to manage large production volumes while maintaining process stability.
As India’s cement industry continues to expand to meet infrastructure and urban development demands, investments in advanced material handling technologies will become increasingly important. By integrating automation, digital monitoring and energy-efficient systems, cement manufacturers can improve operational performance while supporting the industry’s long-term sustainability and decarbonisation goals.

Kanika Mathur

Concrete

Modernise to Optimise

Published

3 weeks ago

March 18, 2026

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Cement plant modernisation is reshaping the industry through upgrades in
kilns, energy systems, digitalisation, AFR integration and advanced material
handling. We explore these technologies that improve efficiency, reduce
emissions, strengthen competitiveness, while preparing the industry for India’s
next phase of infrastructure growth.

India’s cement industry, the world’s second-largest, is undergoing a rapid transformation driven by infrastructure demand, decarbonisation targets and technological advancement. The sector’s installed capacity stood at approximately 668 million tonnes per annum (mtpa) in FY2025 and is projected to reach 915–925 mtap by 2030, supported by large-scale capacity expansions and infrastructure investment cycles, suggests CRISIL Intelligence Industry Report, 2025. At the same time, cement production remains highly energy intensive and contributes about 6 per cent to 7 per cent of India’s total greenhouse gas emissions, making efficiency improvements and modernisation critical for long-term sustainability as stated in CareEdge ESG Research, 2025. As a result, cement manufacturers are investing in advanced kiln technologies, digital monitoring systems, waste heat recovery, alternative fuels, and modern material handling infrastructure to enhance productivity while aligning with global decarbonisation pathways.

Need for modernisation
The need for plant modernisation is closely linked to the sector’s rapid capacity expansion and rising operational complexity. India’s installed cement capacity has grown significantly in the last decade and is expected to exceed 900 mtpa by 2030, driven by demand from housing, infrastructure and urban development projects, as per the CRISIL Intelligence Industry Report, 2025. However, increasing scale also places pressure on energy efficiency, logistics, and production stability. The report also suggests that the cement plants must upgrade equipment and processes to operate at higher utilisation rates, which are projected to reach 75 per cent to 77 per cent by the end of the decade, compared to around 72 per cent to 74 per cent in FY2026.
Environmental imperatives are another major driver of modernisation. Cement manufacturing is responsible for a significant share of industrial emissions because clinker production requires high-temperature processes that depend heavily on fossil fuels. According to CareEdge ESG research, the cement sector contributes 6–7 per cent of India’s total greenhouse gas emissions, with approximately 97 per cent of emissions arising from direct fuel combustion and process emissions in kilns. Consequently, plant modernisation initiatives now focus not only on productivity improvements but also on reducing emissions intensity, energy consumption, and reliance on conventional fuels.
“One of the most impactful upgrades implemented at Shree Cement in the last five years has been the adoption of advanced data management platforms that provide real-time visibility across major process areas. This digital advancement has strengthened plant automation by enabling faster and more accurate responses to process variations while improving the reliability of control loops. Real-time dashboards, integrated analytics and automated alerts now support quicker, data-driven decision-making, helping optimise kiln and mill performance, improve energy control and detect deviations early. By consolidating data from multiple systems into a unified digital environment, the company has enhanced operational consistency, reduced downtime and improved both productivity and compliance. This shift towards intelligent automation and real-time data management has become a key driver of operational excellence and future-ready plant management,” says Satish Maheshwari, Chief Manufacturing Officer, Shree Cement.

Kiln and pyroprocessing upgradation
The kiln remains the technological heart of cement manufacturing, and modernisation efforts often begin with upgrades to pyroprocessing systems. Many older plants in India operate with four- or five-stage preheaters, while modern plants increasingly adopt six-stage preheater and pre-calciner systems that significantly improve heat efficiency and clinker output. These systems enhance heat transfer, reduce fuel consumption, and stabilise kiln operations under high throughput conditions.
Professor Procyon Mukherjee suggests, “Cement manufacturing is, at its core, a thermal process. The rotary kiln and calciner together account for energy consumption and emissions. The theoretical thermal requirement for clinker production is around 1700–1800 MJ per tonne, yet real-world plants often operate far above this benchmark due to inefficiencies in combustion, heat recovery and material flow. Modernisation, therefore, must begin with the
kiln system, and not peripheral automation or
isolated upgrades. The shift from wet to dry process kilns, combined with multi-stage preheaters and precalciners, has already delivered step-change improvements, making dry kilns nearly 50 per cent more energy efficient.”
Recent investment programmes across the industry have included kiln cooler upgrades, advanced burners, and improved refractory materials designed to increase operational reliability and reduce specific heat consumption. Such upgrades are essential because cement production remains highly energy intensive, and continuous efficiency improvements are required to meet global decarbonisation targets. According to the International Energy Agency (IEA) Cement Tracking Report, 2023, the cement sector must achieve annual emissions intensity reductions of around 4 per cent through 2030 to align with global net-zero scenarios.

Energy efficiency and WHRS
Energy efficiency remains one of the most important areas of modernisation in cement manufacturing, given the sector’s heavy reliance on thermal and electrical energy. Modern plants deploy advanced process controls, efficient grinding systems, and improved combustion technologies to reduce specific energy consumption. The adoption of energy-efficient technologies is particularly important in India, where energy costs account for a large share of production expenses. As demand grows and plants expand capacity, improving energy performance becomes essential to maintain competitiveness.
Waste Heat Recovery Systems (WHRS) have emerged as a key solution for improving plant energy efficiency. During cement production, large volumes of high-temperature gases are released from kilns and coolers. WHRS technology captures this waste heat and converts it into electricity, thereby reducing reliance on external power sources. According to energy benchmarking studies for the Indian cement industry, installed waste heat recovery capacity in the sector has reached approximately 840 MW, with an additional potential of around 500 MW states the Green Business Centre, Energy Benchmarking Report, 2023. Several leading producers have already implemented large WHRS installations; for example, UltraTech Cement has deployed systems with around 121 MW of waste heat recovery capacity, reducing carbon emissions by nearly 0.5 million tonnes annually according to the Energy Alternatives India Case Study, 2024.

Integration of AFR
The integration of Alternative Fuels and Raw Materials (AFR) is another critical dimension of cement plant modernisation. AFR refers to the use of industrial waste, biomass, refuse-derived fuel (RDF), and other non-fossil materials as substitutes for conventional fuels such as coal and petcoke. Increasing the use of AFR helps reduce fossil fuel consumption while simultaneously addressing waste management challenges. According to the NITI Aayog Decarbonisation Roadmap, 2026, scaling the use of RDF and other alternative fuels could enable the sector to achieve thermal substitution rates of around 20 per cent in the coming decades.
However, integrating AFR requires significant plant modifications and operational adjustments. Waste-derived fuels often have inconsistent calorific values, higher moisture content, and heterogeneous physical properties compared to traditional fuels. As a result, modern plants invest in advanced fuel preparation systems, dedicated feeding equipment, and automated dosing technologies to ensure stable kiln operation. These upgrades allow plants to maintain consistent clinker quality while increasing the share of alternative fuels in their energy mix.

Digitalisation and smart plant operations
Digitalisation is rapidly transforming cement plant operations by enabling data-driven decision-making and predictive maintenance. Industry 4.0 technologies such as IoT sensors, artificial intelligence (AI), and advanced analytics are now used to monitor equipment performance, optimise process parameters, and anticipate maintenance requirements. These digital tools enable plant operators to detect early signs of equipment failure, minimise unplanned downtime, and improve operational efficiency. Predictive maintenance systems, for example, analyse vibration, temperature, and acoustic signals from rotating equipment to identify potential faults
before they escalate into major breakdowns. Digital twins and integrated control systems further allow operators to simulate plant performance under different scenarios and optimise production strategies. Such technologies are becoming increasingly important as cement plants operate at larger scales and higher levels of process complexity.
Maheshwari also adds, “Plant modernisation is also increasingly central to the global competitiveness of Indian cement manufacturers. As cost pressures rise across energy, logistics and regulatory compliance, modern plants offer the structural efficiency required to operate reliably and competitively over the long term. Technologies such as AI-driven Advanced Process Control (APC) integrated with real-time data systems are emerging as essential investments for the future. These platforms use predictive algorithms, machine learning and live process inputs to optimise kiln, mill and utility operations with greater precision than traditional control systems. By continuously analysing variations in feed chemistry, temperature profiles, energy demand and equipment behaviour, APC enables stable operations, lower specific energy consumption, reduced emissions and improved product consistency. As regulatory expectations tighten and plants pursue higher efficiency with lower carbon intensity, AI-enabled APC will play a crucial role in strengthening automation, enhancing decision-making and ensuring long-term operational resilience.”

Modern material handling and logistics
Material handling systems play a critical role in ensuring smooth plant operations and efficient logistics. Modern cement plants rely on advanced conveying systems, automated stockyards, and digital dispatch platforms to manage the movement of raw materials, clinker, and finished cement. Long-distance belt conveyors and pipe conveyors are increasingly replacing truck-based transport between quarries and plants, reducing fuel consumption, dust emissions, and operational costs. Automated stacker-reclaimers ensure consistent blending of raw materials,
which improves kiln stability and clinker quality. Meanwhile, advanced packing and dispatch systems equipped with high-speed rotary packers and robotic palletisers enhance throughput and reduce manual labour. These technologies allow cement plants to optimise logistics efficiency while supporting higher production capacities.

Emission control and environmental compliance
Environmental compliance has become a central focus of cement plant modernisation as regulators and investors place greater emphasis on sustainability performance. Modern plants deploy advanced emission control technologies such as high-efficiency bag filters, electrostatic precipitators, and selective non-catalytic reduction systems to reduce particulate matter and nitrogen oxide emissions.
Sine Bogh Skaarup, Vice President, Head of Green Innovation and R&D, Fuller Technologies says, “One of our key focus areas is decarbonisation. We help cement producers reduce CO2 and overall carbon emissions. We offer alternative fuel solutions and calcined clay technologies to enable the production of LC3 cement, which play a significant role in decarbonising the cement industry. By combining alternative fuels and calcined clay solutions, CO2 emissions can be reduced by up to 50 per cent, making this a highly impactful approach for sustainable cement production.”
Continuous emission monitoring systems are increasingly used to track environmental performance in real time and ensure compliance with regulatory standards. In addition to air pollution control, cement companies are also investing in water recycling systems, renewable energy integration, and carbon reduction initiatives. These measures are essential for aligning the sector with national climate goals and improving the environmental footprint of
cement manufacturing.

Economic benefits and future outlook
Beyond environmental and operational advantages, cement plant modernisation also delivers significant economic benefits. Energy efficiency improvements, digital process optimisation, and advanced material handling systems reduce operating costs and improve asset utilisation. Waste heat recovery and alternative fuels help lower fuel expenditure and reduce exposure to volatile fossil fuel markets. As the industry expands capacity to meet growing demand, modernised plants are better positioned to achieve higher productivity and maintain profitability. The long-term outlook for the sector remains positive, with India expected to continue large-scale infrastructure investments in roads, housing, railways, and urban development.
Milan R Trivedi, Vice President – Projects, Prod & QC, MR, Shree Digvijay Cement, says, “The main focus in case of modernisation projects drives through the investment decision, which is mainly based on IRR and impact on overall efficiency improvement, cost optimisation and improvement in reliability. However, there are certain modernisation, which has high impact on environmental impact, statutory requirements, etc. has higher priority irrespective of ROI or payback period.”
“The energy efficiency and reliability investment projects generally provide fast return on investment whereas strategic, digitalisation and environmental investment projects provide long term and compounded benefits. Typical modernisation investment projects are decided with IRR of about > 20 per cent, payback period of typically 2-3 years for fast-track projects,” he adds.
In this context, modernisation will remain a key strategic priority for cement manufacturers seeking to maintain competitiveness in an increasingly sustainability-focused market.

Conclusion
The modernisation of cement plants is no longer a purely technical upgrade but a strategic transformation that reshapes how the industry operates. As India’s cement sector expands capacity toward the next growth cycle, improvements in energy efficiency, digitalisation, alternative fuels and advanced logistics will determine the competitiveness of individual plants. Modern technologies allow producers to operate at higher productivity levels while simultaneously reducing energy consumption and emissions intensity.
Looking ahead, the pace of technological adoption will play a decisive role in shaping the future of
the cement industry. Companies that successfully integrate modern equipment, digital systems, and sustainable production practices will be better positioned to meet rising infrastructure demand while aligning with global climate commitments. In this evolving landscape, plant modernisation stands as the cornerstone of both operational excellence and environmental responsibility.