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SDGs in Industry 4.0 era: Action plan of 19 countries

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In September 2015 at the United Nations (UN) Headquarters in New York, 193 member countries adopted the historic new agenda, entitled ??ransforming Our World: The 2030 Agenda for Sustainable Development,??and 169 targets with an objective of transforming the world. The Sustainable Development Goals (SDGs) are the blueprint to achieve a better and more sustainable future for all. These 17 SDGs addressed the global challenges we face, including those related to poverty, inequality, climate change, environmental degradation, peace and justice. These 17 SDGs are all interconnected, and in order to leave no one behind, it is important that each of the 193 member countries undertake efforts at achieving them by 2030.

When the 17 SDGs were adopted The UN Secretary-General Ban Ki-moon said ??t is a roadmap to ending global poverty, building a life of dignity for all and leaving no one behind. It is also a clarion call to work in partnership and intensify efforts to share prosperity, empower people?? livelihoods, ensure peace and heal our planet for the benefit of this and future generations?? The 17 SDGs adopted are given in the annexure.

Every country is at a different level of social, economic and technological development and the Government of each country strives to work in a direction to improve the living standard of the citizens of their country, though the speed at which this takes place differs. Each country does strive to help the socially and economically weaker section to improve and also assists the citizens to lead a better social, economic and healthier life, reduce the disparity; at the same time the challenges that each country faces differs.

However, in each country the citizens, civil society, business and the Government needs to strive in tackling the problems relating to poverty, inequality, climate change, environmental degradation, peace and justice and make all out efforts at achieving the 17 SDGs by 2030.

Industry 4.0

The fourth industrial revolution (Industry 4.0) has taken further from what was achieved by the earlier three industrial revolution with the adoption of computers and automation and enhanced it with smart and autonomous systems fueled by data and machine learning including use of robots. As Industry 4.0 unfolds, computers are getting connected and are able to communicate with one another which can facilitate in making decisions without human involvement. Cyber-physical systems are a reality where humans and smart factories connect and communicate to each other via the Internet of Things and the Internet of Services, which makes Industry 4.0 possible and the smart factory a reality. It is also leading to real-time capability where data can be collected and analysed to provide insights immediately.

Industry 4.0 presents several challenges and opportunities to all the stake holders in a country and we need to strive at finding solutions to these challenges at the same time taking advantage of the opportunities in achieving SDGs. A major challenge that Industry 4.0 will throw up is changes in skill required for new type of employments; at the same time decline in prospects of employment for persons not having the new requisite skills. There are also opportunities wherein the benefits of Industry 4.0 could help in education, tele medicines, effective disaster response, etc.

Industry 4.0 is a reality and has entered the world of work and governance. We need to handle it in a manner, wherein it helps the country in achieving the 17 SDGs. We do find that in many countries of the world, activities are still by and large in the operating phase of industrial revolution two and three and the same will continue. Hence, while looking at SDGs in Industry 4.0 era, we will have to bear in mind the reality at which each of the 193 member countries of the world operate, and how the various stake holders can use Industry 4.0 for the benefit of the citizens of their country.

19 countries meet

The Association of Overseas Technical Cooperation and Sustainable Partnership (AOTS) of Japan sponsored by the Ministry of Health, Labour & Welfare, Government of Japan organized a Joint Study Workshop of Employers??Organization of 19 countries on the ??ustainable Development Goals (SDGs) in the era of Industry 4.0??from 13 to 15 January 2020 in Hanoi, Vietnam. There were 32 participants from the 19 countries (i.e. Bangladesh, Cambodia, China, India, Indonesia, Korea, Lao PDR, Malaysia, Mexico, Mongolia, Myanmar, Nepal, Pakistan, Philippines, Singapore, Sri Lanka, Thailand, Turkey and Vietnam) that participated in this workshop. I was a participant in the workshop on behalf of the Indian Employer Organization (i.e. Employers??Federation of India) invited by AOTS.

The objective of the workshop was to understand the approaches adopted by the 19 participating countries towards the SDGs and in the workshop evolve through the experience of the participants on what could be an approach at achieving these in the Industry 4.0 era. During the workshop it emerged that each of the 19 countries that participated in the workshop has one of the ministries or a Government agency as the focal point to plan , execute , monitor and document the countries progress with reference to achievement of each of the 17 SDGs , though the priority on each of these goals differed from country to country. Each of the 19 country participants presented the approach taken by their country. Noteworthily, The Government of Vietnam in 2017 had divided the 17 SDGs in four focal areas with a Vision statement for each, and is working in the direction of achievement of the Vision as stated by them. The details are given below.

The Government of Vietnam has worked out four focal areas and grouped the 17 SDGs and for each focal area developed a Vision Statement, which are as follows:

Focal area one: Investing in People covering SDGs 1,2,3,4,5& 6 with vision statement: Providing inclusive and equitable quality social services and social protection systems for people living in Vietnam to be healthy, educated and free of poverty and empowered to reach their full potential.

Focal area two: Ensuring climate resilience and environment sustainability covering SDGs 2, 5, 6, 7, 8, 9, 11, 12, 13, 14 and 15 with vision statement: Effectively responding to climate change and natural disasters, as well as sustainable managing resources and the environment.

Focal area three: Fostering prosperity and partnership covering SDGs 5, 8, 10, 12 and 17 with vision statement: Shifting to sustainable and productivity led growth model, as well as creating a fairer, more efficient and inclusive labour market that ensures decent work and opportunities for all.

Focal area four: Promoting justice, peace and inclusive governance covering SDGs 5, 10 and 16 with vision statement: Strengthening governance and adherence to the rule of law, ensuring respect for and the protection of human rights and freedom from discrimination, and moving towards a more just and inclusive society.

Action plan developed by 19 country participants

The 19 country participants during the workshop interacted and worked out a framework for actions that the Government, business and social activists can undertake for achieving the 17 SDGs and these are listed below:

SDG1: No poverty & SDG2: Zero hunger

(i) There is growing urban and non-urban poverty – the Government needs to provide subsidy to the targeted groups and also schemes to ensure zero hunger

(ii) The fourth industrial revolution would result in job displacement and there is need to preserve jobs for vulnerable groups which would involve skill development programme

(iii) The Government needs to establish a proper mechanism for management and disbursement of funds to the poor from taxes or other fund collected from corporations and individuals

(iv) The Government need to ensure sustainable food production and also ensure to provide nutritious food to all children below age five to eradicate malnutrition

(v) Community cultivation and community kitchens/app that helps collect left over food from restaurants and super markets before they lose their shelf life and dispersed to the needy

(vi) Ensure everyone gets two meals a day

SDG3: Good health and well being

(i) Child birth mortality rate and maternal mortality rate to be closely monitored, drastically reduced and extensively controlled

(ii) Increase in public health expenditure by each country from existing level, as it is a major need

(iii) Need to recognise allocation of funds for mental health, as fourth industrial revolution will lead to its increase

(iv) New initiatives for business transformation

(v) Business can provide online platforms /apps for employees??health and well-being such as mental and physical consultations online

(vi) Need for an effective population control

(vii) Disclosure on the content of all eatable items

(viii) Education on health/using technology for imparting at an economical cost

SDG4: Quality education

(i) Need for free compulsory quality primary education

(ii) Less academic and more skill-based education

(iii) Produce more doers compared to administrators

(iv) Education and skill development should be aligned with the developments of the fourth industrial revolution

(v) Dual curriculum

(vi) Closer collaboration between industry and academia to ensure curriculum meets industry and business needs

(vii) Business to partner with government, educational institutions, vocational institutes and offer effective apprenticeships

(viii) Government should facilitate for developing affordable vocational/tertiary education infrastructure.

SDG5: Gender equality

(i) Women representation at the high /decision making level

(ii) Empowering gender equality for all

(iii) Reduce gender pay gap (equal pay for equal work)

(iv) Social safety security for the housewives

(v) Enhanced maternity leave benefit

(vi) Flexible working hours where feasible

(vii) Provide incentives and grants to women to enter gig economy (e-commerce)

(viii) Business can provide virtual workplaces / flexible work for women

(ix) Digital training for women

(x) Need for action rather than talk / social media campaigns with case examples of success

(xi) Need for a change in positive mind set of men, towards women

(xii) Ensuring inclusiveness of lesbian, gay, bisexual, and transgender (LGBT)

SDG6 Clean Water and Sanitation

(i) Wherever activities of business and domestic usage results in discharge of waste water and effluent into the water bodies, Government intervention is required to ensure compliance of standards on discharge. Also, industry and business to ensure compliance

(ii) Rainwater harvesting

(iii) Community toilets in non-urban areas where cost of constructing individual household toilet may be prohibitive

(iv) Protection and restoration of water related ecosystem

(v) Water and sanitation management through people participation

SDG7: Affordable and clean energy

(i) Reduce taxes for green enterprises

(ii) Encourage the use of renewable energy

(iii) Recycling

(iv) Smart cities

(v) Green architecture

SDG8 Decent Work and Economic Growth

(i) Occupational Safety and Health (OSH) management at work place. Need for awareness, training, policy guidelines, best practices

(ii) Empowering people who are physically challenged through skill development and providing for a suitably designed friendly work place for them

(iii) Flexible working hours

(iv) Social Security net ??unemployment insurance for displaced workers

(v) Old age pension fund /old age saving scheme

(vi) Productivity linked performance pay

(vii) Ensure non exploitation of migrant workforce through memorandum of understanding between country of origin and destination

(viii) Restructure companies in line with new technologies

(ix) Digital evaluation of companies

SDG9 Industry Innovation and Infrastructure

(i) Reliable and continuous power and water supply at a reasonable price

(ii) Internet and other communication have to be available and affordable penetration has to be wide

(iii) Promote start up and entrepreneurship culture

(iv) Ensure to innovate continuously to be competitive and digital readiness for meeting challenges of fourth industrial revolution

(v) Create digital ecosystem to bring businesses together and share their experiences

(vi) Mechanism for easy access to capital /credit for micro, mini and small businesses.

SDG10: Reduced inequalities

(i) Fourth industrial revolution would result in income disparity between highly skilled and low skilled workers ??reskilling and upskilling needed

(ii) Inclusive growth by empowering and promoting social and economic inclusion for all, irrespective of age, sex, disability, race, ethnicity, origin, religion, economic or other status

SDG11: Sustainable cities

(i) Green and smart cities

(ii) Sustainable cities and communities

(iii) Urban planning, development plans

(iv) Integrated transportation system

(v) Create community events

(vi) Community child care centres and recreation centres

(vii) Social networking

(viii) Autonomous driving system

(ix) Government needs to ensure adequate, safe, affordable housing, transportation and basic services

SDG12: Responsible consumption

(i) Increased production which results in higher quantum of air emissions, effluent discharge and solid waste needs to be monitored for achieving reduced quantum from the past by the use of new technologies. Business and Government needs to partner in the same, coupled with incentives and penalties

(ii) Consumer awareness and education

(iii) Organic products/eco products

(iv) Imposition of penalty on unconsumed/wasted food

(v) Circular economy

(vi) Saving energy policy

(vii) Investment in latest technologies

(viii) Environment friendly technologies

SDG 13: Climate action

(i) Specialised ministry/agencies to manage environmental issues

(ii) Reduction of greenhouse gasses

(iii) Use of renewable energy

(iv) Waste management

(v) Supporting green jobs/businesses

(vi) Preserving forest coverage

(vii) Circular economy reduce, reuse and recycle/use of app to recover electronic wastes and clothes and others

(viii) Conserve water and move towards use of clean energy

(ix) Clean energy as means of transportation/electricity generated by wind and / or solar power

(x) Control carbon emissions/paying a price for carbon emissions

(xi) Ensuring green education and green business/as far as possible paperless functioning

SDG 14: Life below water

(i) Effluent/waste water management

(ii) Imposing fines on dumping waste in the sea/river/pond

(iii) Netting policies

(iv) Seasonal fishing policy

(v) Ocean acidification

(vi) Sustainable management of marine ecosystem

SDG 15: Life on land

(i) Declaring ecological critical areas

(ii) Conservation of the endangered species

(iii) Preservation of heritage

(iv) Preventing deforestation

(v) Promoting afforestation and use farmed timber only

SDG 16: Justice and peace

(i) Review and where possible reduce budget on defence spending

(ii) Revisiting/rationalising the justice system

(iii) Equal access and dispensation to justice

(iv) Members of the society should be equally treated before the law

(v) Judicial reforms to be visited/reviewed at regular intervals

(vi) Prevention of corruption/nepotism

SDG 17: Partnership for the Goals

(i) Collaboration among the ministries and agencies to ensure sustainable development at the national level

(ii) Create social dialogue platforms at company level

(iii) Collaboration with inter and regional partner for mutual development in the respective areas/creating memorandum of understanding /agreements

(iv) New initiatives to bring social partners together on technological issues, digital trainings, digital transformation of industries

Conclusion

The Millennium Summit of UN in 2000 came forward with eight international Millennium Development Goals (MDGs) for the year 2015, and these have been followed by the 17 SDGs and each country has been working on them. In India at the Central Government level, NITI Aayog has been assigned the role of overseeing, reporting and monitoring the implementation of SDGs.

Each of the 19 countries that participated in the joint study workshop organised by AOTS of Japan from 13 to 15 January 2020 in Hanoi, Vietnam have been making efforts at achieving the 17 SDGs. The action plan developed by the participants in the joint study workshop is a broad framework of what the representatives of the employer organisations of the countries present perceived could be undertaken, and hence is not a thorough check list.

In each country, the Government have developed an action plan, allocated budget, and also seeks support / partnership from business, civil society and also if possible, support from rich countries, as the money and effort required is substantial. There is need both at the International Level and also at each country level to work out an ??ffective recognition and reward system” for all contributors to speed up implementation in the direction of achieving SDGs. There is also need in each country for the civil society, employer organisations trade unions and the Government to work together, to understand the challenges and opportunities emanating from Industry 4.0 and how they could be used in benefitting the achievement of the 17 SDGs by 2030.

Footnote:

ABOUT THE AUTHOR:

Dr Rajen Mehrotra is Past President of Industrial Relations Institute of India (IRII), Former Senior Employers??Specialist for South Asian Region with International Labour Organization (ILO) and Former Corporate Head of HR with ACC and Former Corporate Head of Manufacturing and HR with Novartis India. Email: rajenmehrotra@gmail.com

Published in February 2020 issue of Current Labour Reports and Arbiter.

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Concrete

The primary high-power applications are fans and mills

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Alex Nazareth, Whole-time Director and CEO, Innomotics India, explains how plants can achieve both cost competitiveness and sustainability by lowering emissions, reducing downtime and planning for significant power savings.

As one of the most energy-intensive industries, cement manufacturing faces growing pressure to optimise power consumption, reduce emissions and improve operational reliability. Technology providers like Innomotics India are enabling this transformation by combining advanced motors, AI-driven digital solutions and intelligent monitoring systems that enhance process stability and reduce energy costs. From severe duty motors built for extreme kiln environments to DigiMine AI solutions that optimise pyro and mill operations, Alex Nazareth, Whole-time Director and CEO, Innomotics India, explains how the company is helping cement plants achieve measurable energy savings while moving closer to their sustainability goals.

How does your Energy Performance Contracting model typically reduce power consumption in cement plants—e.g., MWh saved?
Our artificial intelligence-based DigiMine AI Pyro and Mill solutions developed specifically for the cement industry, supports our customers in improving their process stability, productivity and process efficiency. In Pyro, this is achieved by optimising fuel consumption (Coal / AFR), reducing Specific Heat Consumption and reduction in emissions (CO2, SOx and NOx) through continuous monitoring of thermodynamics in pyro and recommending set-points of crucial parameters in advance for maintaining stable operations.
Within the mill, this is achieved by improving throughput, reduce energy / power consumption and maintaining stable operations on a continuous basis. Our ROI-based value proposition captures the project KPIs like reduction of coal usage, increase of AFR, reduction of specific heat consumption (Kcal / Kg), reduction of specific power consumption (KWH / tonne), reduction of emissions, etc., by a specific percentage. This gives clarity to our customers to understand the investment vis-à-vis savings and estimate the recovery time of their investment, which typically is achieved within one year of DigiMine AI Pyro and Mill solutions implementation.

What role do digitalisation and motor monitoring play in overall plant energy optimisation?
Motors are being used extensively in cement production, and their monitoring play crucial role in ensuring continuous operation of applications. The monitoring system can automatically generate alerts for any anomaly / abnormalities in motor parameters, which allows plant team to take corrective actions and avoid any major equipment damage and breakdown. The alerts help maintenance team to plan maintenance schedule and related activity efficiently. Centralised and organised data gives overview to the engineers for day-to-day activities. Cement is amongst the top energy intensive industries in comparison to other industries. Hence, it becomes critically important to optimise efficiency, productivity and up-time of plant equipment. Motor monitoring and digitalisation plays a vital role in it. Monitoring and control of multiple applications and areas
within the plant or multiple plants becomes possible with digitalisation.
Digitalisation adds a layer on top of OT systems, bringing machine and process data onto a single interface. This solves the challenges such as system silo, different communications protocol, databases and most importantly, creates a common definition and measurement to plant KPIs. Relevant stakeholders, such as engineers, head of departments and plant heads, can see accurate information, analyse it and make better decisions with appropriate timing. In doing so, plant teams can take proactive actions before machine breakdown, enable better coordination during maintenance activities while improving operational efficiency and productivity.
Further using latest technologies like Artificial Intelligence can even assist operators in running their plant with minimal requirement of human intervention, which allows operators to utilise their time in focusing on more critical topics like analysing data to identify further improvements in operation.

Which of your high-efficiency IEC low-voltage motors deliver the best energy savings for cement mills or fans?
Innomotics India offers a range of IEC-compliant low-voltage motors engineered to deliver superior performance and energy savings, particularly for applications such as cement mills, large fans, and blowers. Innomotics has the complete range of IE4 motors from 0.37kW to 1000kW to meet the demands of cement industry. The IE5 range is also available for specific requirements.

Can safe area motors operate safely and efficiently in cement kiln environments?
Yes, safe area motors are designed to operate reliably in these environments without the risk of overheating. These motors have ingress protection that prevents dust, moisture ingress and can withstand mechanical stress. These motors are available in IE3 / IE4 efficiency classes thereby ensuring lower energy consumption during continuous operation. These motors comply with relevant Indian as well as international standards.

How do your SD Severe Duty motors contribute to lower emissions and lower cost in heavy duty cement applications?
Severe duty motors enhances energy efficiency and durability in demanding cement applications, directly contributing to lower emissions and operational costs. With high-efficiency ratings (such as IE3 or better), they reduce power consumption, minimising CO2 output from energy use. Their robust design handles extreme heat, dust and vibration—common in cement environments—ensuring reliable performance and fewer energy losses.
These motors also lower the total cost of ownership by reducing downtime, maintenance and replacement frequency. Their extended service life and minimal performance degradation help cement plants meet sustainability targets, comply with emissions regulations and improve overall energy management—all while keeping production consistent and cost-effective.

What pump, fan or compressor drive upgrades have shown approximately 60 per cent energy savings in industrial settings and can be replicated in cement plants?
In the cement industry, the primary high-power applications are fans and mills. Among these, fans have the greatest potential for energy savings. Examples, the pre-heater fan, bag house fan, and cooler fans. When there are variations in airflow or the need to maintain a constant pressure in a process, using a variable speed drive (VSD) system is a more effective option for starting and controlling these fans. This adaptive approach can lead to significant energy savings. For instance, vanes and dampers can remain open while the variable frequency drive and motor system manage airflow regulation efficiently.

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Concrete

We conduct regular internal energy audits

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Shaping the future of low-carbon cement production involves integrating renewables, digitalisation and innovative technologies. Uma Suryam, SVP and Head Manufacturing – Northern Region, Nuvoco Vistas, gives us a detailed account of how.

In an industry where energy consumption can account for a significant portion of operating costs, cement manufacturers are under increasing pressure to adopt sustainable practices without compromising efficiency. Nuvoco Vistas has taken a decisive step in this direction, leveraging digitalisation, renewable energy and innovative technologies to drive energy efficiency across its operations. In this exclusive conversation, Uma Suryam, SVP and Head Manufacturing – Northern Region, Nuvoco Vistas, shares its approach to energy management, challenges of modernising brownfield plants and its long-term roadmap to align efficiency with India’s net-zero vision.

How has your company improved energy efficiency over the past five years?
Over the past five years, we have prioritised energy conservation by enhancing operational efficiency and scaling up renewable energy adoption. Through strategic fuel mix optimisation, deployment of cleaner technologies, and greater integration of renewables, we have steadily reduced our environmental footprint while meeting energy needs sustainably.
Technological upgrades across our plants have further strengthened efficiency. These include advanced process control systems, enhanced trend analysis, grinding media optimisation and the integration of solar-powered utilities. Importantly, grid integration at our key plants has delivered significant cost savings and streamlined energy management.
A notable milestone has been the expansion of our solar power capacity and Waste Heat Recovery Systems (WHRS). Our solar power capacity has grown from 1.5 MW in FY 2021–22 to 5.5 MW, while our WHRS capacity has increased from 44.7 MW to 49 MW, underscoring our commitment to sustainable energy solutions.

What technologies or practices have shown the highest energy-saving potential in cement production?
One of our most significant achievements in advancing energy efficiency has been the successful commissioning of a 132 KV Grid Integration Project, which unified three of our major manufacturing units under a single power network. This milestone, enabled by a dedicated transmission line and a state-of-the-art Line-In Line-Out (LILO) substation, has transformed our energy management and operational capabilities.
With this integration, we have substantially reduced our contract demand, eliminated power disruptions, and enhanced operational continuity. Supported by an optical fibre network for real-time communication and automation, this project stands as a testament to our innovation-led manufacturing excellence and underscores Nuvoco’s vision of building a safer, smarter, and sustainable world.

What role does digitalisation play in achieving energy efficiency in your operations?
Digitalisation plays a transformative role in driving energy efficiency across our operations. At Nuvoco, we are leveraging cutting-edge technologies and advanced digital tools to enhance productivity, optimise energy consumption and strengthen our commitment to sustainability and employee safety.
We are developing AI-enabled dashboards to optimise WHRS and kiln operations, ensuring maximum efficiency. Additionally, our advanced AI models evaluate multiple operational parameters — including fuel pricing, moisture content and energy output — to identify the most cost-effective fuel combinations in real time. These initiatives are enabling data-driven decision-making, improving operational excellence and reducing our environmental footprint.

What is your long-term strategy for aligning energy efficiency with decarbonisation goals?
As part of India’s climate action agenda, the cement sector has laid out a clear decarbonisation roadmap to achieve net-zero CO2 emissions by 2070. At Nuvoco, we view this as both a responsibility and an opportunity to redefine the future of sustainable construction. Our long-term strategy focuses on aligning energy efficiency with decarbonisation goals by embracing innovative technologies, alternative raw materials and renewable energy solutions.
We are making strategic investments to scale up solar power installations and enhance our renewable energy mix significantly by 2028. These initiatives are a key part of our broader vision to reduce Scope 2 emissions and strengthen our contribution to India’s net-zero journey, while continuing to deliver innovative and sustainable solutions to our customers.

How do you measure and benchmark energy performance across different plants?
We adopt a comprehensive approach to measure and benchmark energy performance across our plants. Key metrics include Specific Heat Consumption (kCal/kg of clinker) and Specific Power Consumption (kWh/tonne of cement), which are continuously tracked against Best Available Technology (BAT) benchmarks, industry peers and global standards such as the WBCSD-CSI and CII benchmarks.
To ensure consistency and drive improvements, we conduct regular internal energy audits, leverage real-time dashboards and implement robust KPI tracking systems. These tools enable us to compare performance across plants effectively, identify optimisation opportunities and set actionable targets for energy efficiency and sustainability.

What are the key challenges in adopting energy-efficient equipment in brownfield cement plants?
Adopting energy-efficient technologies in brownfield cement plants presents a unique set of challenges due to the constraints of working within existing infrastructure. Firstly, the high capital expenditure and relatively long payback periods often require careful evaluation before investments are made. Additionally, integrating new technologies with legacy equipment can be complex, requiring significant customisation to ensure seamless compatibility and performance.
Another major challenge is minimising production disruptions during installation. Since brownfield plants are already operational, upgrades must be planned meticulously to avoid affecting output. In many cases, space constraints in older facilities add to the difficulty of accommodating advanced equipment without compromising existing layouts.
At Nuvoco, we address these challenges through a phased implementation approach, detailed project planning and by fostering a culture of innovation and collaboration across our plants. This helps us balance operational continuity with our commitment to driving energy efficiency and sustainability.

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Concrete

Digitalisation is pivotal in driving energy efficiency

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As energy costs continue to dominate the cement industry, efficiency and sustainability are proving to be vital components. MM Rathi, Joint President, Power Management, Shree Cement, explains the company’s long-term strategy is focused on cutting emissions while powering growth with renewable energy solutions.

Energy efficiency has always been a cost-saving lever for the cement industry. Today, it is the backbone of sustainability and competitiveness. Cement manufacturers are under growing pressure to optimise consumption, diversify power sources and align with decarbonisation targets. Shree Cement has been at the forefront of this transformation, significantly scaling up its green power capacity and embedding advanced technologies across operations. In this exclusive conversation, MM Rathi, Joint President – Power Management, Shree Cement, shares insights on the company’s approach to energy efficiency, challenges in brownfield modernisation and long-term strategies for achieving net zero alignment.

What percentage of your total operational cost is attributed to energy consumption?
At Shree Cement, energy is one of the most significant components of production cost, accounting for nearly 30 per cent to 40 per cent of total operational expenses. Within this, thermal energy typically contributes around 20 per cent to 25 per cent, while electrical energy forms about 10 per cent to 15 per cent. The exact share varies depending on factors such as the fuel mix (coal, pet coke or alternative fuels and raw materials), the power source (grid-based or captive like solar, wind or thermal), raw mix quality, and regional fuel and electricity price variations. This makes energy efficiency and the adoption of sustainable power sources a key focus area, both from a cost and sustainability perspective.

How has your company improved energy efficiency over the past five years?
Over the past five years, Shree Cement has consistently invested in enhancing energy efficiency across operations. Our green power capacity, covering wind, solar and Waste Heat Recovery (WHR), has more than doubled from 245 MW in 2020 to 592 MW in 2025. All grinding units are now equipped with biomass firing facilities, reducing dependence on conventional fuels. From the project stage itself, we prioritise efficiency by selecting advanced technologies such as six-stage kilns with integrated WHR, CFD-designed plants, and equipment fitted with VFDs, centrifugal compressors and high-efficiency fans. We also review and upgrade equipment systematically, replacing fans, compressors, blowers, pumps, boilers and turbines with more efficient options. This continuous approach has reduced costs while significantly advancing our sustainability journey.
What technologies or practices have shown the highest energy-saving potential in cement production?
WHR stands out as one of the most effective solutions, offsetting a significant portion of electricity required for clinker production. Hot air recirculation has also proven highly beneficial in reducing heat losses. Additionally, regular energy audits help us identify opportunities for improvement and implement corrective measures in daily operations. Together, these practices play a critical role in optimising energy efficiency and driving sustainable operations.

What are the key challenges in adopting energy-efficient equipment in brownfield cement plants?
The biggest challenge is the significant upfront investment required for upgradation. Retrofitting existing facilities often involves complex civil and structural modifications, which add costs and extend downtime. Integration is another hurdle, as new high-efficiency equipment may not align seamlessly with older kiln systems, fans, mills or automation setups. These factors make the transition in brownfield plants more resource-intensive and time-consuming compared to greenfield projects.

How do you measure and benchmark energy performance across different plants?
We track key performance indicators such as specific heat consumption and specific power consumption for each unit, benchmarking them against internal and external standards. Thermal Substitution Rate (TSR percentage) is another critical metric, measuring the share of alternative fuels in the thermal energy mix. Internally, we benchmark performance across plants to encourage best practice sharing. Externally, we compare against national averages and align with the Bureau of Energy Efficiency’s PAT (Perform, Achieve, Trade) scheme, which sets Specific Energy Consumption (SEC) baselines and targets for cement plants. This multi-layered approach ensures continuous monitoring, improvement, and industry leadership in energy efficiency.

What role does digitalisation play in achieving energy efficiency in your operations?
Digitalisation is pivotal in driving energy efficiency at Shree Cement. IoT sensors integrated with SCADA and DCS systems allow real-time monitoring of parameters like heat consumption and energy use, moving beyond periodic reports. Our digital platforms consolidate plant data, enabling management to compare metrics such as SPC, SHC, kWh per tonne and kcal per kg across units in real time. This visibility supports data-driven decisions, faster corrective actions, and higher operational efficiency.

How do government policies and incentives influence your energy-saving decisions?
Government policies and incentives strongly shape our energy-saving decisions. The Perform, Achieve, Trade (PAT) scheme sets plant-specific SEC targets. Non-compliance incurs penalties, while compliance earns tradable energy-saving certificates. This ensures energy efficiency is both cost-driven and regulatory. Additionally, subsidies and viability gap funding for renewable energy projects in wind, solar and AFR co-processing help reduce payback periods and make energy-saving investments more viable.

What is your long-term strategy for aligning energy efficiency with decarbonisation goals?
Our long-term strategy aligns energy efficiency with India’s net zero 2070 goals. Key levers include improving efficiency, expanding green electricity, producing more blended cement, and increasing alternative fuel use. Today, more than 60 per cent of our electricity comes from green sources such as solar, wind, and WHR, the highest in India’s cement industry. Our blended cement products, which reduce limestone and fuel consumption, further lower emissions. These products are certified under the GreenPro ecolabel by CII, validating our sustainability practices and environmental standards.

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