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The Indian growth story got a temporary jolt but it is bottoming out

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Bidyut Bhattacharya, Chief Technical Director, Sinoma International Engg Co India Positive about the potential of the country, Bidyut Bhattacharya, Chief Technical Director, Sinoma International Engg Co India explains that though the Indian industry saw a bad patch on the road to economic growth, the way forward is still exciting. The mature cement industry can definitely make use of some policy changes that will put the industry back on track in 2014. Excerpts from the interview.

Has the economic slowdown impacted production capacity augmentation or the setting up of new cement plants?
There is no denying the fact that there was a serious economic slowdown in India, over the last couple of years, resulting in a dismal GDP growth rate. Consequently, cement consumption has suffered and created a large overcapacity situation. So it is natural that new cement capacity augmentation has not been too encouraging.

Are we in the state of cement production overcapacity?
Yes, we are in a state of overcapacity of cement for the time being. In the backdrop of sub five percent growth rate, rough estimates project a figure of as high as 80 to 100 million tonnes of overcapacity in the country. The situation is even more precarious in the southern belt.

What policy changes can help the cement industry regain momentum from the year 2014 onwards?
The first and foremost requirement would be to boost investor sentiment. Enabling polices and a stable vision for the future is equally mandatory. The low-capacity utilisation of already installed production lines is troubling. To improve cement consumption, the economic growth rate is vital. In this respect, we strongly feel that government spending and regulatory clearances of large infrastructure projects will play an important role to revive not only the cement industry but the overall economy as well. Housing sector is also vital for cement consumption.

One of the major reasons/excuses for the present day reduced level of capex spending on new projects lies in regulatory hurdles and inordinate delays in clearances. This needs to be taken care of.

Higher cost of borrowing is another impediment to new investments in this sector. For a supportive interest rate regime, food inflation specifically, needs to be controlled with particular focus on supply side bottlenecks.

Energy sourcing is another bottleneck for the cement sector. Cement plants are highly energy- intensive and require both thermal energy in form of coal (in the case of India) and electrical power. Quality/quantity and the cost of both these energies seem to be bothering the Indian cement industry. The issue of lower quality coal need to be addressed by blending imported high grade coal. Supply of more washed coal from CIL would help. For power, co-generation (through WHR technology) would give a big relief and should be made mandatory as it is in China. Usage of alternate fuels is also vital.

Which new design trends are we likely to see in cement plants and the supporting systems?
The Indian cement industry, over the years, has employed the best available technology for production. Thanks to a high degree of blended cement utilisation, Indian cement producers are at the forefront of fuel and electrical energy consumption on a per- tonne- of- product basis. An additional benefit in terms of sustainability is lower per tonne CO2 emission. Stricter regulatory requirements are leading increasingly towards greener technologies; and they, in turn, lead to further energy efficiency.

Utilising a Vertical Roller Mill (VRM) or roll press circuit in finish grinding mode for raw material grinding is the industry norm today, and it provides a significant energy cost reduction over the traditional closed circuit ball mill system. Likewise, for coal grinding also, a vertical mill is used. For the energy-intensive finish grinding process, the ball mill plus roll press system is widely popular. In specific cases where slag grinding is involved with high per cent moisture, VRM technology for finish grinding is used. Only in extreme cases today, do we get request for close circuit ball mill for grinding; it is inherently less energy efficient. High efficiency separators are standard today for all milling systems.As regards the pyro-processing area, Indian cement producers continuously strive to achieve the lowest specific fuel consumption along with high power saving. High efficiency fourth generation grate coolers are being utilised widely since they provide high recuperation efficiency along with lower maintenance interventions. As the total cooling air requirement reduces from the earlier 2.2Nm3/kg clinker to say, 1.8Nm3/kg clinker, there is a lot of savings through reduced exhaust air and fans power consumption. To achieve lower fuel consumption, six stage pre-heater systems is the popular choice along with in-line calciners. Advanced low NOx technologies are utilised in many cement plants. For process fans, a static efficiency = 82 per cent and use of variable speed drives reduces power consumption.

Do you see the demand for WHR systems growing in the future?
Waste Heat Recovery is slowly catching up in India. It is imperative to make WHR a mandatory requirement for any new cement plant, as is already the case in some countries. A significant portion of the energy requirement can be sourced through utilisation of waste heat from the pre-heater and cooler. In this context, Indian cement producers/consultants need to do a more specific, case to case basis, cost -benefit analysis for the six-stage vs. Five-stage pre-heater system, specifically when raw material moisture is high or when civil design parameters like wind speed/seismic conditions are not favourable. There is also the need to account for additional time taken for six- stage construction.

What is the scope for alternative fuels in cement plants?
Considering the dwindling quality/supply of domestic coal and logistic issues of imported supply, a variety of alternate fuels are being utilised cost-effectively. Not only Pet coke but a host of other materials from tyres to rice husk, plastic, sawdust are all being used. Utilisation of municipal wastes/sludge is still in its infancy in India primarily due to supply-side bottlenecks. It is worthwhile to mention here that cement pyro-processing systems are highly suitable for burning waste material, apart from contributing to the calorific value, due to the very high incineration temperature, close to 1,800 to 2,000deg C at the flame zone, higher residence time like five to six sec in calciners, assimilation of heavy metals in the clinker, negligible dust emission through kiln bag filters and dry dust curtains with high surface area in the pre-heater, etc.

What are your suggestions for improving energy efficiency in cement plants?
In terms of overall energy efficiency, we at Sinoma strongly recommend Waste Heat Recovery (WHR) from both the kiln and grate cooler. For the coolers themselves, we recommend fourth generation walking floor type or moving bar/S-type grate coolers. High efficiency, high momentum burner pipes are a must. Modern design low pressure drop high efficiency pre-heater cyclones also plays an important part. For grinding, we recommend the roll press and vertical mills depending upon the process and materials.

As an EPC service provider and supplier of critical plant and machinery what was 2013 like for you?
In the backdrop of poor growth rate and not much positive investor sentiment, 2013 was not a very encouraging year for the industry overall.

However, we are rather bullish on the India story. India cannot and shall not remain a sub 5 per cent growth rate country for long. The Indian growth story got a temporary jolt but is bottoming out. Already green shoots are visible. If we consider the stock markets reflect, at least to some extent, investor sentiment, clearly the sentiment is positive with indices hovering around all- time highs. Even events like the start of QE tapering made virtually no dent. The Indian currency stabilised rather quickly. Smart moves by the RBI in tackling the CAD issues have fortified confidence further. The expectation of a strong and stable government coming to power in May/June 2014, is boosting the overall outlook. Clearance of some high profile infrastructure projects through the Cabinet Committee is a big positive. With a favourable monsoon and the start of the harvesting season, easing of inflation expectations is widely anticipated.

Considering all this, we anticipate a much more exciting time from the second half of 2014 onwards.

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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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