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Multiple headwinds to slow down cement cos earnings

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The earnings projections of cement companies for FY18 are likely to suffer amid lower antic-ipated sales volumes and subdued prices. According to dealer estimates, the all-India average cement price fell by 2 per cent sequentially to Rs 326 per 50 kg bag in the December 2017 quarter. On a year-on-year basis, it rose marginally by 5 per cent. Historically, the sector has been reporting better traction in December. However, this time, realisation is under pressure due to several headwinds.

For instance, cost of sand, a key raw material, has increased by 4-5 times from the year ago due to lesser availability. In addition, construction activities in the real estate segment have slowed following demonetisation and implementation of Real Estate Regulatory Authority (RERA) Bill. The segment accounts for 60-65 per cent of total cement consumption. This has impacted offtake volume.

According to analysts, meeting the earlier expectation of 7-8 per cent volume growth for the full year will be a difficult task. To deliver that much growth, companies would require to clock 9 per cent growth in the second half of the fiscal.

Pet coke duty hike to hit operating margins
Cement companies operating profits may fall by one per cent following the Government’s decision to hike import duty on pet coke to 10 percent from the current 2.5 percent, a report said. ‘The operating margins of cement companies, which use high proportion of pet coke are likely to be affected following the government’s decision to increase the import duty on pet coke to 10 per cent from the present 2.5 per cent. The operating margins of cement manufacturers may fall by about 1 per cent, if increased cost is not passed on to end users,’ India Ratings said in its report.

The increase in import duty was announced after the Supreme Court decided to lift the ban on the use of pet coke. The Supreme Court allowed the cement industry to use pet coke as a feedstock, which had been banned last month to clean up the air pollution. While, issuing the exemption order for cement units, the apex court asked the government to frame guidelines for the use of pet coke.

Ind-Ra said that the cement manufacturers may resort to coal imports due to low domestic availability. Cement manufacturers prefer using pet coke, as it contains high calorific value (7,500-8, 500 Kcal/kg), to non-coking coal (2,200-7,000 Kcal/kg). The rise in the import duty on pet coke will result in a rise in power and fuel cost per metric tonne to Rs 5-7 per bag.

Total pet coke consumption in India increased by 34 per cent in October 2017 to 2 million metric tonne as compared with the level recorded for October 2015. Of the total pet coke consumed in the country during FY17-1HFY18, about 50 per cent was sourced domestically and the remaining through imports. According to Ind-Ra’s assessment, 35 per cent of the total pet coke imports were consumed by the cement industry.

Cement prices set to increase
Cement prices in India are expected to increase by Rs 3-4/bag by mid-January as the government has decided to hike the import duty on pet coke from the current 2.5 to 10 per cent. The rise in duty is expected to increase production costs by Rs 50-60/t and sector analysts predict the increase will be passed on to customers. ‘In case they are not passing it on, their EBITDA is likely to get affected and under the current scenario, no company will wish for it,’ an analyst with stockbroking firm Motilal Oswal Financial Services told. While the price of pet coke is currently 10-12 per cent higher than that of imported coal, its lower volume requirement means it is more cost-effective for cement producers to use.

Dalmia Bharat to acquire Murli Industries
Cement manufacturer Dalmia Bharat said its Rs 402 crore bid to acquire Murli Industries Ltd (MIL) has been approved by the Committee of Creditors (CoC) of the Nagpur-based company. The resolution plan submitted by Dalmia Cement (Bharat) Ltd, a subsidiary of Dalmia Bharat, to CoC of MMIL under the Insolvency and Bankruptcy Code, 2016 was approved recently.

‘Committee of creditors of MIL on December 20, 2017 approved the proposed resolution plan submitted by our subsidiary, DCBL for recommendation to NCLT Mumbai for its approval in relation to revival of MIL,’the company said.

It further added:
‘Following receipt of requisite approvals, the resolution plan provides for a payment of Rs 402 crore which is 1.7 times higher than the determined liquidation value.’

MIL has an integrated cement manufacturing plant with installed capacity of 3 MTPA in Chandrapur district of Maharashtra along with a captive thermal power plant of 50 MW. In addition, MIL also has paper and solvent extraction units in Maharashtra. MIL was referred to the corporate insolvency process by its lenders in April 2017. It had interests in cement, paper, solvent, power and pulp.

Coal shortage hits thermal power plants
Thermal power plants across India are facing a shortage of coal. If this situation does not improve over the next the few days, there is a real threat that power generated may stop. About 600 MW of coal-based power generation is already affected due to the coal shortage. The Western and Northern regions are the most affected, and in States such as Maharashtra and Rajasthan, about 40 per cent of power generated from coal is affected.

According to data of the Central Electricity Authority (CEA), most thermal power plants have just one to three days of reserve coal stock. Sources in Singareni Collieries say thermal plants to which it supplies coal are not facing any shortage of coal. These include plants in Telangana and Andhra Pradesh. According to CEA data, the number of thermal power plants in the country with critical stock (for only seven days) is four. The number of thermal power plants with super critical stock (for only four days) is 23.

CEA said that plants having low stocks due to outstanding dues, supply being more than committed quantity, and not lifting offered coal, are not listed in the critical and super critical data. In Andhra Pradesh, the Rayalaseema Thermal Power Station (RTPS) has coal stock for only four days, the Simhadri thermal power station has coal stock for two more days and Vizag thermal power plant has coal stock for three days. In Telangana, Ramagundam thermal power plant has coal stock for three days and Kakatiya and Kothagudem thermal power plants have coal stock for 10-21 days. There are nine plants in the northern region and 12 plants in the western region that are in critical and super critical stages.

The Union power ministry says that the issue of coal supply to power plants is being addressed in a coordinated manner by the three concerned ministries – power, coal and Railways. The Power Ministry said that this is being monitored at the highest level and that in spite of the the unprecedented rise in the demand for coal based power, due to better coordinated planning the demand of electricity in the grid is being met. More than 65 per cent of India’s electricity generation capacity comes from thermal power plants, with about 85 per cent of the country’s thermal power generation being coal-based.

The 10 biggest thermal power stations operating in India are all coal-fired.

SC allows use of pet coke in cement
The Supreme Court allowed the cement industry to use petroleum coke, a dirtier alternative to coal which had temporarily been banned as pollution levels shot up in Delhi last month. India is the world’s biggest consumer of petroleum coke, better known as pet coke, a dark solid carbon material that emits 11 per cent more greenhouse gas than coal, according to studies.

The Supreme Court in October banned the use of pet coke in and around New Delhi in a bid to clean the air in one of the world’s most polluted cities. But a blanket ban on the sale and use of petcoke could hit the country’s small and medium scale industries, which employ millions of workers and operate on thin margins, businesses say.

Supreme Court Judge Madan Bhimrao Lokur, in issuing the exemption order for cement and limestone industries, asked the government to frame guidelines for the use of pet coke. Shares of Indian cement companies, which use pet coke as feedstock, surged as much as 5 per cent on news of the court decision. Local producers of pet coke include Indian Oil Corp, Reliance Industries and Bharat Petroleum Corp.

Cement prices firm up in South
Prices of cement have jumped by an average Rs 25-30 per bag in the Southern States. The price is now hovering around Rs 310-320 per bag in Andhra Pradesh and Telangana. In Karnataka, its around Rs 340, while in Tamil Nadu and Kerala, it is being sold at over Rs 360. The prices were in the range of Rs 280 in Andhra Pradesh and Telangana. The present increase has not been normal, says M Prasad, a wholesale dealer of leading cement brands here. ‘Normally prices go up as the construction activity picks up during February to July for the year, which is seen as the best season for price realisation,’ he added.

Interestingly, the summer of 2017 proved different to the earlier three-four summers as prices unusually fell to around Rs 270 in Andhra Pradesh and Telangana. Typically, the prices are at peak with demand picking up and construction activity in full swing.

There has been no change in other factors such as production capacity and demand. Still the capacity utilisation and demand are under 40 per cent. The second quarter had seen a price erosion.

As per industry data, prices from August, September to October show that price erosion was in the range of Rs 5 in Andhra Pradesh and Telangana markets.

In Bengaluru, the prices remained more or less stable. Chennai also saw a drop of another Rs 5-10. In the days to come, the expected volume growth in the industry could be varied.

In Andhra Pradesh, the non-grounding of works related to the new capital Amaravati did not give the anticipated boost to the industry. The industry is hoping to gain from new capital probably a year and year-and-a-half from now in a slow fashion to be ramped up later. Even in Telangana, the real estate sector in the capital Hyderabad, is seeing ups and downs as far as new projects are concerned.

Cement, steel at the core of strongest infra show in a year
India’s infrastructure sector logged the highest growth in more than a year in November, while the country’s biggest carmakers reported double-digit sales growth in December, kicking off the new year on a positive note for the economy and pointing to a persistent revival trend. The index of eight core industries rose 6.8 per cent in November, the Government data showed, riding high on growth in cement and steel sectors. These have a weight of more than 40 per cent in the Index of Industrial Production (IIP), suggesting strong industrial growth in November after a dismal October.

‘Steel and cement growth at very high growth rates of 16.6 per cent and 17.3 per cent indicates restoration of the production in these sectors over pre-demonetisation levels which augurs well for real sector investment,’ said Economic Affairs Secretary, Subhash Chandra Garg.

Part of the rise is due to the favourable base effect stemming from the disruption in the wake of demonetisation in November 2016 that will prevail over the next few months.

The core sector grew 3.6 per cent in November 2016. The core sector growth in November 2017 was the best since 7.1 per cent in October 2016.

‘The early indicators for industrial production in the organised sectors in November 2017 provide favourable signals, such as the uptick in growth of the core sector and sharp improvement in the expansion of automobile production and non-oil merchandise exports,’ said Aditi Nayar, Principal Economist, ICRA.

India’s GDP growth recovered to 6.3 per cent in the July-September period from a three-year low of 5.7 per cent in the preceding quarter. Most experts had expected a stronger rebound as the impact of demonetisation and rollout of GST in July had faded.

CIL assures captive power producers of coal supply
State-owned miner Coal India (CIL) has assured coal availability to power industry body ICPPA, whose members include firms from steel and aluminium segment, as they are heavily dependent on the dry fuel. CIL Chairman and MD Gopal Singh along with other senior officials held a meeting with members of Indian Captive Power Producers Association (ICPPA). In India, captive power producers’ capacity stands at 40,000 Mega Watts (MW) and about 30,000 MW is produced by using coal, which is about 75 per cent. The rest is produced through alternate materials like gas-based and others, ICPPA General Secretary Rajiv Agarwal told.

‘The industry is highly dependent on coal and the government must understand this. There are many plants who are on the verge of shut down. Many may become a non-performing asset (NPA),’ he said. CIL, in the meeting, said about 71 per cent materialisation of coal was done during April-December 2017 for both IPPs (integrated power producers) and CPPs and assured there is no shortage of coal.

ICPPA said it is not satisfied by the words of the PSU, who it said is supposed to supply the dry fuel to industry. Agarwal said, ‘The given figure included dispatches by both rail and road. The share of CPPs rail dispatches is in the range of only 30 to 50 per cent and out of this 30 per cent major supply was given to those plants who were near the pits.’

Even if coal linkage auction is concerned, 41.5 MT was offered to the CPPs, he said and added, that out this the industry could not bid for 8.5 MT offered at ‘Magad-Amrapali of CCL (Central Coalfields Ltd)’ a place with evacuation constraint.

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Concrete

Green Construction Through Cement Innovation

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

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

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

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

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

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

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

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

The innovation gap: From technology to market

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

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

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

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

R&D must balance carbon, cost and performance

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

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

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

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

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

LC3: The promise is proven, the sequencing is not

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Building codes must catch up with innovation

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

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

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

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

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

Collaboration is the bridge between invention and impact

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

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

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

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

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

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

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

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

Circularity: The overlooked advantage

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

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

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

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

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

From green ambition to green construction

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

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

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

  • Rakesh Rao

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

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Concrete

Indian Railways Plans Green Fly Ash Transport Network

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

New Delhi

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

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

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

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

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

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

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Concrete

Powering Cement Through Intelligent Motion

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

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

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

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

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

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

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

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

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

  • Kanika Mathur

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