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Regional mix helps Ambuja post strong results

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Ambuja Cements’ exposure to west, north and east India drove strong growth in realisations, which were much better than the forecasts. Cement volume growth of 5 per cent was also a positive in the current context, driving market share gains. The company managed to post the highest unit EBITDA in nearly 19 quarters, as was the case with its 50 per cent-sub, ACC. Net earnings still fell 13 per cent YoY to Rs 3.9 billion, which was 22 per cent ahead of the estimate.

Ambuja’s 2Q standalone EBITDA rose 6 per cent YoY to Rs 6.1 billion, 19 per cent ahead of our estimate. Depreciation was a bit lower and so was other income; the tax rate of 28.2 per cent too came in a bit lower. Net earnings declined 13 per cent YoY to Rs 3.9 billion, which was 22 per cent ahead of our estimate. Consolidated EBITDA (including ACC) was up 21 per cent YoY to Rs 12.9 billion while net earnings rose 7 per cent YoY to Rs 5.6 billion.

Ambuja reported 5 per cent YoY growth in cement volume with overall volume up 4 per cent; this was a tad lower than our forecast. Cement realisation, however, rose at a strong 11 per cent QoQ to Rs 233 per bag. Ambuja benefitted from its strong presence, as all its regions had strong pricing trends. We believe that prices rose the most in west India followed by north and then the east. Overall costs were also under check with unit cost up just 1 per cent QoQ. The cost of manufacturing (materials+energy) rose 2 per cent QoQ while freight was marginally down. Unit EBITDA increased to a 19-quarter high of Rs 1,010 per tonne (+67 per cent QoQ). Ambuja’s 50 per cent-held subsidiary, ACC, reported better results than we had expected led by higher volume and lower costs. Overall 2Q EBITDA rose 20 per cent YoY to Rs 5 billion, 12 per cent ahead, and a saw strong beat at the net earnings level too. Volume growth of 10 per cent was also strong led by new capacity in the east with a 5 per cent QoQ rise in net realisations. Unit EBITDA at ACC was also at a 19-quarter high of Rs 735 per tonne.

JSW IPO to hit market in 2019
JSW Cement, a subsidiary of JSW Steel, announced that it is looking at a valuation of around Rs 25,000 crore to Rs 30,000 crore when it issues its initial public offer (IPO) in 2019.

The company is eyeing at raising Rs 2,500-Rs 3,000 crore from a 10 per cent dilution in the first phase. It plans to propose for an IPO after 2019 general elections as the company want to be a 20 MT cement company with limestone reserves in two to three states.

Govt nod for Cement Corp revival
The Government has approved revival of the three operating units of state-owned Cement Corporation of India and will shut down the non-operating units of the company. In a written reply in the Rajya Sabha, Minister of State for Heavy Industries and Public Enterprises Babul Supriyo said that the Government has approved ‘revival (of Cement Corporation of India) as a public sector enterprise’through closure of non-operating units and revival of three operating units.

The Board for Reconstruction of Public Sector Enterprises had recommended closure and sale of non-operating units and revival of operating units as a public sector enterprise. However, in its reply, the Government was silent on the sale of the non-operating units and said it has approved their closure.

PWD to use green tech for laying roads
The Public Works Department (PWD) will go in for Cold In-Place Recycling (CIR) of bituminous pavement, an environment-friendly green technology for laying roads. The National Highway wing of the PWD is adopting the new technology close on the heels of using shredded plastic, rubber, application of geosynthetics, coir geotextiles and pavement recycling to enhance the life of road corridors.

The National Highway 66 corridor between Pathirappally and Purakkad in Alappuzha district has been subjected for the first time in the State the CIR, a rehabilitation technique of pavement in which the existing materials are reused. Of the 28-km stretch identified, 16 had been relaid using green technology with Indian Road Congress (IRC) specifications and is offering cozy ride to motorists, Chief Engineer, PWD, NH KP Prabhakaran told. The remaining stretch in Alappuzha will be taken up after the rain and has plans to use it to more NH corridors.

The Reclaimed Asphalt Pavement (RAP) material is obtained by milling, planning or crushing the existing pavement. RAP material along with fresh aggregate are mixed, laid and then compacted. The CIR can restore old pavement to the desired profile, eliminate ruts, restore the crown and cross slope and eliminate potholes, unevenness and rough areas.

In Alappuzha, the pavement condition warranted for almost a full depth reclamation as the damages extended up to the sub-base at many locations. The pavement was milled for a thickness of 160 mm and relaid using cold process.

A wearing course of 50 mm BC was given over recycled layer. The CIR involves reuse of existing pavement materials without application of heat. Foam bitumen was used as recycling agent in the cold milling equipment. Almost 15 per cent fresh aggregate was added along with cement.

The existing road would be cleaned by air compressor and the around 15 per cent aggregates and 1.5 per cent cement would be pre-spread on the asphalt road. The road would be rehabilitated by in-situ pulverising (milling) the top 160 mm of the existing pavement. At the time of pulverizing, the pre-spread aggregates, cement and hot bitumen is injected into milled surface. The recycled mix is then compacted and graded to profile using roller and grader and eventually sealed by BC.

Bank of Baroda moves NCLT to recover money from Binani
Bank of Baroda has filed a petition against Binani Cement Ltd with the National Company Law Tribunal’s (NCLT) Kolkata bench, seeking to recover Rs 97 crore in an outstanding loan under the new Insolvency and Bankruptcy Code after the firm failed to come up with a restructuring plan to clear its dues.

Lawyers for Binani Cement, a privately held firm of the Braj Binani Group, claimed that the application from Bank of Baroda had several technical flaws, and that its claim was minuscule compared with the total value of the group’s assets, which, according to its lawyers, is Rs 14,000 crore.

Binani Cement, which is a unit of Binani Industries Ltd, had assets worth Rs 5,074 crore at the end of March, according to the holding firm’s auditor, MZSK & Associates. NCLT’s Kolkata bench reserved its order on whether or not it would admit the lender’s application under the new insolvency code. If the application is admitted, the company’s board will be superseded and an interim resolution professional appointed to take control of its assets and operations. Bank of Baroda wants management consulting firm Deloitte to be appointed as interim resolution professional.

Pratap Chatterjee, counsel for Binani Cement, said Bank of Baroda was not the lead lender to the cement maker and that it had not taken the approval of the joint forum of lenders before moving NCLT. Citing Reserve Bank of India rules, Chatterjee said Bank of Baroda was required to write to the joint forum and wait for at least 30 days before unilaterally moving NCLT.

Chatterjee asked why Bank of Baroda was seeking the appointment of an administrator to recover a small loan of Rs 97 crore when the lead banker, Central Bank of India, was not seeking dispute resolution in this manner.

Gujarat HC notice to govt, Ambuja over mining safety
The Gujarat High Court has issued notice to concerned authorities and the cement factory in Gir-Somnath district over a PIL complaining that safety measures are not taken in mining activity and that the mining is illegally carried out in reserve forest areas.

Petitioner RTI Activist Sangathan has sought direction from the high court to direct the authorities to make Gujarat Ambuja Cement Ltd compel to erect fence around its mining areas. The petitioner has complained that at least 15 persons have lost their lives in Gir-Somnath district where the company is undertaking its mining operations. This has happened due to deliberate neglect on part of the company and the authorities that fencing is a must safety measure.

The petitioner alleged that the company also undertakes mining in private land, grazing land as well as in the forest areas also. Upon hearing the case, the HC issued notice to the Centre, the cement company, Director of Mining Safety, DySP of Gir-Somnath and the Jamwala Range Forest Officer of Gir sancturary. Further hearing is on September 6.

LafargeHolcim lowers growth forecast
Swiss-French cement group LafargeHolcim has lowered its forecast for growth in global cement markets this year after second quarter sales fell short of expectations. Based on developments in the first half 2017, it expected growth in its markets this year of between 1 and 3 per cent in 2017, the world’s largest cement company by sales said. That compared with the 2 to 4 per cent it had expected in May.

However, Beat Hess, Chairman, said that the group still expected to meet its 2017 and 2018 targets, ‘with key countries such as the US, India, Nigeria and, notably this quarter, Mexico making significant contributions to earnings, more than offsetting headwinds in some of our markets.’

LafargeHolcim reported net sales had risen by 3.6 per cent to SFr 6.85 billion on a like-for-like basis in the three months to June. That compared with the almost SFr 7 billion expected on average by analysts. Adjusted pre-tax operating profits of SFr 1.74 billion were 10 per cent higher than a year earlier on a like-for-like basis – and slightly higher than expected by analysts.

LafargeHolcim was formed by the ?41 billion merger in 2015 of Lafarge of France and Holcim of Switzerland. Over the past year, the group has been dogged by a scandal over a plant it operated in Syria until September 2014. In April, Eric Olsen resigned as chief executive to help restore calm at the company – although the company said he was not involved in or aware of any wrongdoing.

Global pension funds keen on highway projects
International pension funds with an appetite for staying invested for several years are expected to be primary suitors for the highway contracts to be auctioned by the National Highways Authority of India (NHAI). Experts say the Government wants to generate cash to support its next tranche of investment in the highways sector. They are of the view that foreign pension funds would be keen to bid for such projects because they typically invest in those with a longer duration, unlike private companies, which look for quick results.

‘Since most of the construction-related risk is taken care of by the Government, the private sector would be interested in these contracts because the traffic is already established and the Government is hopeful of getting surplus cash post auctions,’said Adil Zaidi, partner-economic development and infrastructure advisory, EY. He said the Government should plan the highways and alignments it intended to auction.

Global pension funds might be attracted by the certainty of the return on investment, an analyst said. Last year, the Cabinet Committee on Economic Affairs authorised the NHAI to monetise 111 publicly-funded requiring reduced NHAI involvement in projects.

Further, the corpus generated from the proceeds of such project monetisation could be utilised by the Government to meet its requirements on development and O&M of highways in the country NH projects that were operational and were generating toll for at least two years after the Commercial Operations Date (COD) through the toll-operate-transfer (TOT) model. Around 75 operational NH projects completed under public funding have been preliminarily identified for potential monetisation using the TOT model. This model would provide an operation and maintenance (O&M) framework, requiring the NHAI’s reduced involvement in projects after construction completion.

Further, the corpus generated from the proceeds of such project monetisation could be utilised by the government to meet its fund requirements regarding development and O&M of highways in the country. This could help the development and strengthening of highways in unviable geographies. The Government aims to cater for that category of investors which is averse to taking construction risks but is adequately equipped for making long-term investments in road infrastructure, e.g. institutional investors including pension and insurance funds, and sovereign funds. In the past Macquarie, Brookfield, Cube Highways, and other such global funds took equity in NH projects worth about 4,150 crore, from which private promoters had exited. The auction can also be seen as a move to allow the entry of sovereign funds from Abu Dhabi and Qatar into such projects.

Orient posts Rs 39 cr net profit
CK Birla group firm Orient Cement Ltd reported a net profit of Rs 38.92 crore in the first quarter ended on June 30, 2017. The company had posted a net loss of Rs 7.56 crore in the same period last fiscal, Orient Cement Ltd said.

Revenue from operations during the period under review was at Rs 656.73 crore as against Rs 505.21 crore in the year-ago period, up 30 per cent. During the quarter, the company signed definitive agreement for acquisition of 74 per cent shares of Bhilai Jaypee Cement from Jaiprakash Associates and its nominees for an enterprise value of Rs 1,450 crore.

The company also inked similar pact for the business transfer of Nigrie Cement Grinding unit of Jayprakash Power Ventures Ltd at an enterprise value Rs 496 crore.

Govt to assist Assam for repair of highways
The Minister of Road Transport & Highways and Shipping Nitin Gadkari has announced a financial assistance of Rs 200 crore as the first installment for the immediate repairs of National Highways damaged due to heavy rains in Assam. The announcement was made after the Assam Chief Minister Sarbananda Sonowal called on Gadkari for a review of the situation in Assam where heavy rains have led to National Highways being damaged.

Meanwhile, an expert team of the National Highways Authority of India (NHAI) officials has been dispatched for on the spot assessment of the damage. If needed, further financial assistance will be provided based on the NHAI team’s report. Another Rs 400 crore has been sanctioned for dredging work in Brahmaputra river. The work will start from September using six dredgers. Dredging will increase the depth of the river and prevent it from flooding. A total of seven bridges are to be built on Brahmaputra river during the next five years for better road connectivity with the NE region. Work on two bridges is underway. DPR for three more bridges is to be prepared by the State Government.

Gadkari has also asked the State Government to submit the DPR for the proposed Bhramaputra National Highways to be built along the banks of the river at a cost of Rs 40,000 crore.

Govt may lease out infra projects to private operators: NITI CEO
The Government needs to exit infrastructure projects and even look at handing over jails, schools and colleges to the private sector as happens to be the case in countries like Canada and Australia, NITI Aayog CEO Amitabh Kant said. At the same time, he was highly critical of India’s private sector, terming it as ‘most irrational’and ‘insensitive’. Kant said it messed up projects by aggressive bidding and creating current crisis in the public private partnership (PPP) model.

‘The Government has done a lot of big projects but the government is not good at operation and maintenance. Therefore, the government must start the process of reverse BOT (build, operate and transfer), must sell out projects and let the private sector handle it,’he said addressing India PPP Summit 2017, organised by industry body FICCI.

Citing the example of dirty bathrooms at airports, which fall under the Airport Authority of India, he said: ‘We must bring in the private sector. That is, the fastest way to bring in private sector and bring private sector money back in infrastructure. These projects are fully de-risked.’

Kant also said that there were huge opportunities for the private sector in India like station re-development projects, Port construction and Sagarmala projects. There is no shortage of money in the market and India can use the opportunity by de listing its projects, he said.

Dangote records sales volume rise across Africa
Dangote Cement, Africa’s largest cement producer, has announced its unaudited results for the six months ended June 30, 2017, posting a 12.6 percent increase in sales volume across Africa. Financials released indicated that the increase in sales volume showed a growing capture of Pan-African market as Dangote Cement continues to gain grounds.

Revenues from operations in Nigeria increased by 34.5 per cent while Pan-Africa revenue increased by 63.7 per cent mainly as a result of increased volumes and foreign exchange gains when converting the sales from country local currency into Naira. Analysis of the half year result revealed that sales volumes of African operations increased by 12.6 per cent to 4.7 million metric tonne with Sierra Leone making a 53 kt maiden contribution.

Record of sales from its operations scattered around the African continent revealed that a total of 1.1 million metric tonnes of cement was sold in Ethiopia, almost 0.7 million metric tonne sold in Senegal, 0.6 million metric tonne sold in Cameroon, and 0.5 million tonne in Ghana.

Also, 0.4 million metric tonnes of cement was sold in Tanzania and 0.3 million tonne in Zambia. Sales volumes from Nigerian operations fell from 8.8 mt to 6.9 mt, occasioned by the onset of rains which stalled many construction projects.

East proves best for Shree Cement
Shree Cement’s Street-beating Q1 performance was led by its cement business. Though the company’s power segment reported a loss at the operating level, cement was the show-stopper, enabling Shree Cement post an EBITDA (earnings before interest, tax, depreciation and amortisation) of Rs 680 crore, which was reasonably ahead of Bloomberg consensus estimates of Rs 646 crore. A better-than-expected recovery in cement realisations, led by price hikes since the start of April, helped the company beat cost pressures too.

Birla to invest Rs 2.4k cr in new cement plant Birla Corporation Limited, the MP Birla Group flagship company, would invest around Rs 2,400 crore for its proposed new cement plant at Mukutbandh near Nagpur. ‘We are planning to invest around Rs 2,400 crore for 4 MTPA greenfield cement plant at Mukutbandh. We will now go to the board for approval’, Chairman of Birla Corporation Harsh V Lodha told at the company’s AGM. Lodha said after the completion of the new plant, the total cement production capacity of the company would touch 20 MTPA from the present 15.5 MTPA after acquisition of Reliance Cement. Funding of the project would be a mixture of debt and internal accruals, he said.

Birla Corporation had acquired the cement plants of Reliance at a consideration of Rs 4,800 crore. To fund this acquisition, Birla Corporation had taken a loan of Rs 1,000 crore on its books. Lodha said that the company was making some capital expenditure at the acquired plants to make it more efficient.

‘Reliance’s plants did not have a captive power plant. So we are in the process of setting up a waste heat recovery system at a cost Rs 125 crore’, he said. This would provide us power to meet a portion of the total demand, 45 MW, free of cost. ‘We are studying the feasibility of a captive thermal power plant there’, he said.

Lodha said as the demand for cement was rising in central India and no new capacity was coming up in the region, the company was well-poised to take advantage of this. On GST, he said it would not have any major impact.

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Economy & Market

SEW-EURODRIVE India Opens Drive Technology Centre in Chennai

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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.

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Concrete

Material Flow Efficiency

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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

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Concrete

Modernise to Optimise

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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.

  • Kanika Mathur

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