Economy & Market
“India has miles to go in cement consumption”
Published
8 years agoon
By
admin
Anoop Kumar Saxena, CEO – VICAT in India
How do you see the growth prospects for the industry during the current year and in the next three years? Have you seen any hints on growth, by now?
India has miles to go in terms of cement consumption and there is enough headroom for strong cement demand. Two strong reasons:
(i) Even after seven decades of independence, and nearly two-and-a-half decades of globalisation, India is one of the lowest per capita consumers of cement. Average consumption in India is just approximately 200 kg/year compared to 1,700 kg/year in China and 660 kg/year in Vietnam (comparable developing economy). The global average consumption is far ahead at 580 kg per year.
(ii) Although India is the second-largest producer of cement, there is disconnect between country’s GDP growth and cement output.
Prudent policy formulation and robust spending by the Government to create infrastructure & housing for all can drive floating hope into reality. Cement demand is expected to grow approximately 7 to 8 per cent YoY over the next 2-3 years. Currently, country’s cement production capacity is 441 MT and expected to increase to 467.3 MT by 2019 and likely to further increase to 484.1 MT by 2020-2021. Significant concentration of the cement capacities will continue to increase in southern and western regions largely due to bulk of limestone reserves in these regions. We expect cement demand to recover healthily from the impact of the government’s demonetisation policy and the early impact of GST implementation over the next couple of quarters.
Last quarter performance is indicating that rural housing and infrastructure demand is recovering strongly, although demand has not picked up in the real estate segment. Cement demand increased by 11 per cent and 18 per cent respectively in third and fourth quarter of 2017-18.What are the triggers for your views on the Industry’s growth prospects and how they are set to impact demand in your view?
Rising urbanisation, an increasing number of households and higher employment are primarily driving the demand for housing, accounting for
60 per cent of total cement consumption.
?? Initiatives undertaken by the government are expected to provide an impetus to construction activity in rural and semi-urban areas through large infrastructure and housing development projects, respectively.
?? The affordable housing segment has been in focus with two major schemes providing a fillip to growth, including Pradhan Mantri Awas Yojana-Urban (PMAY-U) and Pradhan Mantri Awas Yojana-Gramin (PMAY-G).What are the changing dynamics of cost and profitability of the industry during the current year, from the present standpoint?
Cost inflation (primarily energy cost) and low pricing power are key challenges of Industry during current year. The demand-supply balance drives cement pricing, like in any other commodities. Given that demand-supply gap will continue in the range of 100-140 MT for the next two to three years, overall capacity utilisation will hover 70-75 per cent. Hence, we believe that there will not be pricing power to drive the profitability, prices will go up and down during period with no significant improvement at all.
Input cost curve has continued to deteriorate due to higher diesel, petcoke and coal prices, as well as an increase in import duty of petcoke. It is very difficult for industry to pass the hike in input prices immediately as because consolidations by various players, the market share stabilisation would be key agenda which will not keep in driving price increase. Plant efficiency, logistics efficiency and mitigate the risk of increasing cost of fuel and other raw material to maintain the profitability.How do you see the three segments of cement demand – residential, infrastructure and industrial construction – are set to boost/impact cement demand this year?
Housing: (55 per cent) sector is expected to grow by 5-6 % mainly due to following reason:
?? Housing for all (High Impact): Govt. plans to build 20 million units for economically weaker section by 2002.
?? Several Housing Projects planned by Government for rural segment like PMAY. Also focus on urban sector
Industrial commercial sector is expected to grow by 5-6 per cent mainly due to following reason: Currently weak investment from this segment. But expected to pickup on the back of key policy such as Make in India, etc.
Infrastructure (25 per cent) sector is expected to grow by 10.5 to 12.5 per cent mainly due to following reasons:
Roads & highways (high impact): Investment to increase by 1.8x in five years to Rs 9.8 trillion. Other projects like Bharatmala investment ($16 billion) to drive growth.
Railway (high impact): $134 billion earmarked by RailMin towards sector development through 2019. Further eight corridors ($12-13 billion), several metro projects to drive the demand, metro rail projects, irrigation project in Andhra Pradesh and Telangana, Navi Mumbai Airport Project.Housing is by far the biggest contributor to cement demand. Do you see any major recovery on the sector during the reminder of the year with the government’s thrust to ‘Housing for All’ scheme?
Housing accounts for 60 per cent of total demand and rest is accounted by commercial and industrial establishments. Currently, housing demand is not following traditional pattern of market share of total demand and trend shows that demand in this sector has slowed down. However, initiatives undertaken by the government are expected to provide an impetus to construction activity in rural and semi-urban areas through large infrastructure and housing development projects, respectively. Housing for all schemes are largely driven by two major scheme; PMAY-U and PMAY-G and this can drive the recovery of cement demand in housing sector.Pre-poll year is considered to be an infra year. What are the infrastructure areas that may get boost going by last Budget?
We expect demand growth to gain momentum in FY19 because of a relatively steady base and parliamentary elections leading to announcement of new infrastructure projects and the rush for completion of existing projects to showcase them during the elections.What is the demand growth do you foresee for the year in the geographies of your operations and what are triggers?
The southern region will continue to add capacity, although the pace of new addition is likely to taper at approximately 2.4 per cent CAGR over FY16-FY20E. However, with a strong base we expect the demand-supply gap to be significant for any real strong pricing momentum despite the recent strong pick up in the demand. Strong demand revival from the region driven by twin state development of Andhra Pradesh and Telangana since 3QFY18 will keep the demand momentum continuing. However, Shree Cement entry in south India will make south India market more competitive.How the consolidation underway in the industry and expansions coming on stream are set to impact capacity utilisation of the industry during the year?
India’s cement industry is fragmented. About 55-60 per cent market share is controlled by large players and consolidation in cement sector has not significantly changed the share of large players as in the past few years, most of deals are signed between large players. New and mid-size players are likely to lead the consolidation in order to secure market share quickly and get exposure to the desired regions.
QoQ margin for south Indian cement will reduce due to subdued pricing in January-March 2018 and an increase in cost pressure. Higher proportion of sales to infrastructure projects could further dent realisations.
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Rock blasting is essential for extracting hard rock and shaping safe excavation profiles in mining and construction. Accurate and consistent loading of explosive emulsions ensures controlled fragmentation, protects personnel, and maximizes productivity. Even minor deviations in pumping can cause delays or reduce product quality. BN pumps with SJA support routine maintenance and pre-operation checks by allowing fast verification of joint integrity, enabling more efficient operations.
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Concrete
Digital process control is transforming grinding
Published
3 weeks agoon
February 20, 2026By
admin
Satish Maheshwari, Chief Manufacturing Officer, Shree Cement, delves into how digital intelligence is transforming cement grinding into a predictive, stable, and energy-efficient operation.
Grinding sits at the heart of cement manufacturing, accounting for the largest share of electrical energy consumption. In this interview, Satish Maheshwari, Chief Manufacturing Officer, Shree Cement, explains how advanced grinding technologies, data-driven optimisation and process intelligence are transforming mill performance, reducing power consumption and supporting the industry’s decarbonisation goals.
How has the grinding process evolved in Indian cement plants to meet rising efficiency and sustainability expectations?
Over the past decade, Indian cement plants have seen a clear evolution in grinding technology, moving from conventional open-circuit ball mills to high-efficiency closed-circuit systems, Roller Press–Ball Mill combinations and Vertical Roller Mills (VRMs). This shift has been supported by advances in separator design, improved wear-resistant materials, and the growing use of digital process automation. As a result, grinding units today operate as highly controlled manufacturing systems where real-time data, process intelligence and efficient separation work together to deliver stable and predictable performance.
From a sustainability perspective, these developments directly reduce specific power consumption, improve equipment reliability and lower the carbon footprint per tonne of cement produced.
How critical is grinding optimisation in reducing specific power consumption across ball mills and VRMs?
Grinding is the largest consumer of electrical energy in a cement plant, which makes optimisation one of the most effective levers for improving energy efficiency. In ball mill systems, optimisation through correct media selection, charge design, diaphragm configuration, ventilation management and separator tuning can typically deliver power savings of 5 per cent to 8 per cent. In VRMs, fine-tuning airflow balance, grinding pressure, nozzle ring settings, and circulating load can unlock energy reductions in the range of 8 per cent to 12 per cent. Across both systems, sustained operation under stable conditions is critical. Consistency in mill loading and operating parameters improves quality control, reduces wear, and enables long-term energy efficiency, making stability a key operational KPI.
What challenges arise in maintaining consistent cement quality when using alternative raw materials and blended compositions?
The increased use of alternative raw materials and supplementary cementitious materials (SCM) introduces variability in chemistry, moisture, hardness, and loss on ignition. This variability makes it more challenging to maintain consistent fineness, particle size distribution, throughput and downstream performance parameters such as setting time, strength development and workability.
As clinker substitution levels rise, grinding precision becomes increasingly important. Even small improvements in consistency enable higher SCM utilisation without compromising cement performance.
Addressing these challenges requires stronger feed homogenisation, real-time quality monitoring and dynamic adjustment of grinding parameters so that output quality remains stable despite changing input characteristics.
How is digital process control changing the way grinding performance is optimised?
Digital process control is transforming grinding from an operator-dependent activity into a predictive, model-driven operation. Technologies such as online particle size and residue analysers, AI-based optimisation platforms, digital twins for VRMs and Roller Press systems, and advanced process control solutions are redefining how performance is managed.
At the same time, workforce roles are evolving. Operators are increasingly focused on interpreting data trends through digital dashboards and responding proactively rather than relying on manual interventions. Together, these tools improve mill stability, enable faster response to disturbances, maintain consistent fineness, and reduce specific energy consumption while minimising manual effort.
How do you see grinding technologies supporting the industry’s low-clinker and decarbonisation goals?
Modern grinding technologies are central to the industry’s decarbonisation efforts. They enable higher incorporation of SCMs such as fly ash, slag, and limestone, improve particle fineness and reactivity, and reduce overall power consumption. Efficient grinding makes it possible to maintain consistent cement quality at lower clinker factors. Every improvement in energy intensity and particle engineering directly contributes to lower CO2 emissions.
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How much potential does grinding optimisation hold for immediate energy
and cost savings?
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Concrete
Refractory demands in our kiln have changed
Published
3 weeks agoon
February 20, 2026By
admin
Radha Singh, Senior Manager (P&Q), Shree Digvijay Cement, points out why performance, predictability and life-cycle value now matter more than routine replacement in cement kilns.
As Indian cement plants push for higher throughput, increased alternative fuel usage and tighter shutdown cycles, refractory performance in kilns and pyro-processing systems is under growing pressure. In this interview, Radha Singh, Senior Manager (P&Q), Shree Digvijay Cement, shares how refractory demands have evolved on the ground and how smarter digital monitoring is improving kiln stability, uptime and clinker quality.
How have refractory demands changed in your kiln and pyro-processing line over the last five years?
Over the last five years, refractory demands in our kiln and pyro line have changed. Earlier, the focus was mostly on standard grades and routine shutdown-based replacement. But now, because of higher production loads, more alternative fuels and raw materials (AFR) usage and greater temperature variation, the expectation from refractory has increased.
In our own case, the current kiln refractory has already completed around 1.5 years, which itself shows how much more we now rely on materials that can handle thermal shock, alkali attack and coating fluctuations. We have moved towards more stable, high-performance linings so that we don’t have to enter the kiln frequently for repairs.
Overall, the shift has been from just ‘installation and run’ to selecting refractories that give longer life, better coating behaviour and more predictable performance under tougher operating conditions.
What are the biggest refractory challenges in the preheater, calciner and cooler zones?
• Preheater: Coating instability, chloride/sulphur cycles and brick erosion.
• Calciner: AFR firing, thermal shock and alkali infiltration.
• Cooler: Severe abrasion, red-river formation and mechanical stress on linings.
Overall, the biggest challenge is maintaining lining stability under highly variable operating conditions.
How do you evaluate and select refractory partners for long-term performance?
In real plant conditions, we don’t select a refractory partner just by looking at price. First, we see their past performance in similar kilns and whether their material has actually survived our operating conditions. We also check how strong their technical support is during shutdowns, because installation quality matters as much as the material itself.
Another key point is how quickly they respond during breakdowns or hot spots. A good partner should be available on short notice. We also look at their failure analysis capability, whether they can explain why a lining failed and suggest improvements.
On top of this, we review the life they delivered in the last few campaigns, their supply reliability and their willingness to offer plant-specific custom solutions instead of generic grades. Only a partner who supports us throughout the life cycle, which includes selection, installation, monitoring and post-failure analysis, fits our long-term requirement.
Can you share a recent example where better refractory selection improved uptime or clinker quality?
Recently, we upgraded to a high-abrasion basic brick at the kiln outlet. Earlier we had frequent chipping and coating loss. With the new lining, thermal stability improved and the coating became much more stable. As a result, our shutdown interval increased and clinker quality remained more consistent. It had a direct impact on our uptime.
How is increased AFR use affecting refractory behaviour?
Increased AFR use is definitely putting more stress on the refractory. The biggest issue we see daily is the rise in chlorine, alkalis and volatiles, which directly attack the lining, especially in the calciner and kiln inlet. AFR firing is also not as stable as conventional fuel, so we face frequent temperature fluctuations, which cause more thermal shock and small cracks in the lining.
Another real problem is coating instability. Some days the coating builds too fast, other days it suddenly drops, and both conditions impact refractory life. We also notice more dust circulation and buildup inside the calciner whenever the AFR mix changes, which again increases erosion.
Because of these practical issues, we have started relying more on alkali-resistant, low-porosity and better thermal shock–resistant materials to handle the additional stress coming from AFR.
What role does digital monitoring or thermal profiling play in your refractory strategy?
Digital tools like kiln shell scanners, IR imaging and thermal profiling help us detect weakening areas much earlier. This reduces unplanned shutdowns, helps identify hotspots accurately and allows us to replace only the critical sections. Overall, our maintenance has shifted from reactive to predictive, improving lining life significantly.
How do you balance cost, durability and installation speed during refractory shutdowns?
We focus on three points:
• Material quality that suits our thermal profile and chemistry.
• Installation speed, in fast turnarounds, we prefer monolithic.
• Life-cycle cost—the cheapest material is not the most economical. We look at durability, future downtime and total cost of ownership.
This balance ensures reliable performance without unnecessary expenditure.
What refractory or pyro-processing innovations could transform Indian cement operations?
Some promising developments include:
• High-performance, low-porosity and nano-bonded refractories
• Precast modular linings to drastically reduce shutdown time
• AI-driven kiln thermal analytics
• Advanced coating management solutions
• More AFR-compatible refractory mixes
These innovations can significantly improve kiln stability, efficiency and maintenance planning across the industry.
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