Economy & Market
Post lockdown scenario for cement
Published
6 years agoon
By
admin
The nationwide lockdown amid the outbreak of Covid-19 will have a significant near-term volume impact on the cement industry, feels Dr SB Hegde.
Cement plants have restarted their operations after shutting down to comply with the Government’s nationwide Covid-19 lockdown order. Now, it appears that there is no surprise if cement companies may force to stop the kiln/s once again due to lack of demand in the days to come. The cement companies are estimated to be sitting on large amounts of unsold cement/clinker stocks that should be enough to meet market demand for over months together!
The nation-wide lockdown amid the outbreak of Covid-19 will have a significant near-term volume impact on the cement industry. Cement volumes had been growing at 10 to 12 per cent YoY in east and 4 to 5 per cent YoY in the west and central regions. Cement dispatches have been stopped completely post March 21, and all major cement plants are shut thereafter. Moreover, all construction sites have stopped work following the Union home ministry guidelines. Dealers claimed that volume loss from the lockdown is estimated to be around 40 per cent in March and 60 per cent in April. The shutdown has come at a time of peak construction activity. Once the lockdown is over (currently May 17), it is expected that it would take another 10 to 15 days before construction activity normalizes as most of the migrant labor force has gone back to their hometowns.
For companies as well, it would take two to three days to fully ramp up the plant post restart. Some volume push is likely only from May end, volumes lost during the lockdown period can’t be recouped. Companies would also be holding some inventories in plants and warehouses. Since cement has a shelf life of two-three months, there should not be any loss from the same for both dealers and companies. Dealers generally provide unsecured credit to customers in this segment, which generally makes up for 60 per cent of volumes. While 70 per cent of the customers who buy on credit make payment within three to five days to avail cash discount, others avail full credit period of 30 days. Once the lockdown is lifted, dealers may have to extend additional credit of 10 to 15 days to customers for making payment, thereby increasing working capital.
In order to give relief to dealers, companies have communicated that they would consider the sales made till March 21 on a pro-rata basis to calculate the monthly incentives.
Cement prices have been buoyant this quarter with all-India average price up by Rs 13/bag QoQ in 4QFY20 (+3.5 per cent QoQ and +5 per cent YoY), which bodes well for margins. Region-wise average QoQ price hikes in 4QFY20 G?? East: Rs 20/bag, +6 per cent QoQ, +5 per cent YoY; north: Rs 15/bag, +4 per cent QoQ, +16 per cent YoY; south: Rs 3/bag, +1 per cent QoQ, -4 per cent YoY; west: Rs 13/bag, +4 per cent QoQ, +4 per cent YoY and central: Rs 9/bag, +3 per cent QoQ, +9 per cent YoY. Given increased working capital and no revenue currently, dealers have sought relief from bankers toward interest payment, credit limits. Moreover, while cash inflows have stopped, fixed costs shall continue to be incurred by dealers on account of rent and staff salaries, creating a further liquidity stress.
Factors that may affect
demand for cement in the upcoming quarters While the Central Government has permitted the cement industry to restart their production activities, its consumption may remain impaired in the backdrop of the extended lockdown for the building activities. Housing sector accounts for nearly 55 to 70 per cent of the cement consumption followed by infrastructure developments. However, limited respite to the construction businesses may dampen the overall demand for the raw material.
Workforce disruption and upcoming monsoons: According to some business Research and Advisory, consultants, "The building sentiment may remain the same or pick up only gradually, that too, around the last quarter of 2020. This is primarily because the majority of the construction labourers have returned to their homes and might be reluctant to join work even after the impact of the virus subsides. This is in line with the usual trend around this time of the year when labourers return to their villages since April and May is the harvesting period."
The upcoming monsoon period may also impede the flow of construction activities. Since flooring, plastering and masonry works are hard to accomplish during monsoons, developers suspend the building works temporarily and labourers either return to their native places or undertake temporary jobs. Overall, the labour force disruptions coupled with the upcoming monsoons may take a hit on the housing sector, and the cement acquisition may continue to be on the backburner.
Lack of funds: The heightened financial challenges in the realty market may also act as a deterrent for the cement industry. For instance, many developers expecting high sales on Gudi Padwa and Akshay Tritiya scheduled their new project launches around these festivals to keep their businesses afloat in the ensuing quarters. However, the Covid-19 induced self-isolation impaired the home buying sentiment and posed severe financial implications, especially for developers with weak balance sheets.
Many builders even deferred their new project launches until the situation improves. The postponement of new developments also indicates the lower cement consumption in the quarters to come.
Uncertainties in the job market: In the backdrop of the existential predicament, the prime focus of potential homebuyers is on saving for the future than undertaking hefty financial liabilities. Therefore, the residential sector may take a hit, directly impacting the cement industry. Barring affordable housing projects, demand in mid-segment and premium housing projects may continue to tread slowly. Infrastructure developments may also feel the heat due to limited reserves with the Government amid the economic slowdown.
The robust revival is likely to happen only in Q3 2020-21. However, this majorly depends on India’s ability to contain the virus at the earliest. The reverse migration of workers since the government announced the lockdown to contain the Covid-19 outbreak is a serious issue for labour-intensive sectors such as real estate. Also, with basic support from the government for three months, many interstate migrants may not return to work anytime soon. This may be bad news for homebuyers as shortage of labour can delay the completion of under-construction projects. Ashwini Kumar Sharma asks experts how much delay this can cause and how Covid-19’s impact on the economy and personal wealth of buyers will affect the sector, especially the residential segment.
Impact on real estate industry
Given the stalled real estate projects and delayed infrastructure developments, the cement industry in India has experienced a massive hit post the Coronavirus outbreak and the ensuing lockdown. While the Government’s permission to restart the cement production on rotational basis would improve the raw material’s supply in the country, its demand is unlikely to gain pace with no relief announced for the construction activities.
The Real Estate (Regulation and Development) Act, 2016 (RERA) provides for a one-year extension in project execution timelines, in case of events beyond the promoter’s control. So regulatory risks are reduced in case of a short-term disruption.
However, the ability and willingness of the migrant labour to return to work in an uncertain environment remains to be seen. Their decisions would be driven by the extent of pandemic-related fears, as well as ease of mobility after the lockdown is lifted.
In case the dearth of labour is prolonged, the impact on project timelines and costs could be more severe. Besides affecting profitability, the slowdown in execution will have a considerable impact on project collections. New sales will also be hit, given the increasing preference of homebuyers for near-complete and completed units. This adverse impact on inflows could further affect developers’ ability to execute projects, and may result in a vicious cycle.
ABOUT THE AUTHOR: The article is authored by Dr SB Hegde of Udiapur Cement Works, Rajasthan.
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SEEPEX introduces BN pumps with Smart Joint Access (SJA) to improve efficiency, reliability, and inspection speed in demanding rock blasting operations.
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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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