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Industrial relations practices of AIOE award-winning enterprises

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To promote effective industrial relations practices within enterprises in India, the All India Organisation of Employers (AIOE), which was born in 1932 and is an allied body of the Federation of Indian Chambers of Commerce and Industry (FICCI), Delhi confers National Award for Outstanding Industrial Relations (IR) Practices in enterprises every year from 1982.

AIOE invites applications from enterprises operating in any sector in India in a specified format. The enterprises have to initially compete regionally and then nationally. The regionally selected enterprises qualify to compete for the national award. This year both the regional as well as the national competition was undertaken online because of the Covid-19 pandemic. For the 2018-19 Award, there were eleven enterprises (i.e. Bayer Vapi, E.I.D. Parry

(India), GAIL (India), Hindalco Industries, Renukoot, Hyundai Motor India, ITC – Paper Boards and Speciality Papers Division ??Unit Bhadrachalam, Lucas TVS, NLC India, Piramal Glass, Tata Steel and Titan Company ??Watch Division) that qualified for the final round to compete for the National Industrial Relations Award. Enterprises had submitted their write-ups in a specified format, and teams which in some cases also included trade union office bearers made online presentations on September 12, 2020 to the three-member jury. All the eleven enterprises have developed effective industrial relations practices about, which they elaborated in their writeup as well as in the presentations where the jury members sought clarifications.

The award-winning enterprises in order of ranking chosen by the jury members, were based on the situation through which the enterprises went through, their writeup and the presentation on September 12, 2020 and the results are given below:

(i) ITC – Paper Boards and Speciality Papers Division ??Unit Bhadrachalam, Winner

(ii) NLC India, First Runner-up

(iii) Lucas TVS, Second Runner-up

Conclusion

Each of the three enterprises operates in different sectors (i.e. paper, mining plus power generation and automotive component) of the Indian economy. Contract labour is prevalent in all enterprises and the winner enterprise ITC – Paper Boards and Speciality Papers Division ??Unit Bhadrachalam, has identified a unique way of absorbing some of the contract labour which is elaborated in the annexure. Each of these three enterprises have ensured that the enterprise produces products / service meeting customer needs involving timely delivery in required quantity, specified quality and at competitive price.

Each of the three enterprises has ensured that the operations are viable and generates a reasonable cash surplus, to meet each of the stake holders??expectation including those of the workers and the contract labour. Each of these three enterprises had their trials and tribulations in industrial relations, two of them in a multi union situation and one in a single union situation. All three have a healthy industrial relations climate for the last five years ensuring uninterrupted operations.

In each of the three enterprises, there is a lot of emphasis on communication with the employee through various activities, so as to build an effective relationship for meeting the aspirations of the employees, at the same time ensuring success and growth of the enterprise. Also, each of the three enterprises have kept the employees well informed about business realities such as business plan, quality, delivery, safety, unit ??productivity and actions to be taken to improve performance, and in certain cases market visits by employees and their interaction with customers etc. Employees receiving such information, facilitates them in perceiving that they are given due importance and considered an integral part of the enterprise.

Each of the three enterprises has its own history on the industrial relations front that was prevalent in the past and the steps the management has taken to improve it for the future. The strategy for improving industrial relations climate by each of the three enterprises is specific to the environment in which it operates. The Industrial Relations strategy in each enterprise that is effective is dependent on the approaches of the management, trade unions, the workers and the contract workers of those enterprises which can be read in the attached annexure. The practices of the three award winning enterprises listed in the attached annexure can be useful for personnel of other enterprises to study, evaluate and adapt, for improving Industrial Relations in their enterprises.

ITC

ITC Limited ??Paper Boards and Speciality Papers Division ??Unit Bhadrachalam, is India?? largest, technologically advanced and most eco friendly paper division. The unit located at Bhadrachalam, is in the Indian state of Telangana. The plant is India?? largest integrated paper and paperboard manufacturing unit. Currently the unit produces high ??end virgin and recycled boards for packaging and graphic applications, and fine printing papers.

The unit in Bhadrachalam has 19 registered unions (14 unions of enterprise workers and 5 unions of contract workers). These 19 registered unions are affiliated to different National and State level unions. The recognised union is elected through a secret ballot, where majority union is given the recognition for collective bargaining. The current recognised union is ITC Bhadrachalam Paperboards Employee Union which is an amalgamation of 6 unions i.e. Indian National Trade Union Congress (INTUC), Telangana Rashtra Samithi (TRS), All India Trade Union Congress (AITUC), Bhartiya Mazdoor Sangh (BMS), Yuvajana Shramika Rythu (YSR) and Independent. The trade unions are being managed by in-house leadership. The plant has 1,437 unionised employees (1323 employees & 114 are Badlis) plus 3,200 contract labour (i.e. employees of service providers).

NLC India Limited, First Runner-up

NLC India (NLCIL), a ??avratna??Government of India Enterprise, with a present annual turnover of Rs 71. 46 billion with profit before tax of Rs 25.29 billion for 2018-19. NLCL is under the administrative control of Ministry of Coal and has a chequered history since its inception in 1956. NLCIL has three opencast lignite mines of total capacity of 28.5 million tonne per year in Neyveli, Tamil Nadu and one open cast lignite mine of capacity 2.1 million tonne per annum at Barsingsar, Rajasthan. It has six pithead thermal power stations with aggregate capacity of 4640 MW.

Lucas TVS Limited, Second Runner-up

Lucas TVS Ltd was established in 1962 as a Joint Venture between Lucas Plc. UK and TVS Group, India. In the year 2001 Lucas TVS Ltd became a wholly owned company of TVS Group, as Lucas the parent company ceased to exist worldwide. Lucas TVS develops and integrates their products in the vehicles and equipment, from the design stage onwards and carries out application engineering, development, manufacturing and service. The company developed innovative products, manufacturing systems and processes, which had brought growth in business and this helped Lucas TVS being one of the few companies in the World to be awarded the Deming Application Prize and the Deming Grand Prize, by Union of Japanese Scientists & Engineers and setting benchmarks in the industry. The company is currently supplying to over 90% of automotive manufacturers in India and also exporting to North America and Europe.

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 Internation.al Labour Organization (ILO) and Former Corporate Head of HR with ACC and Former Corporate Head of Manufacturing and HR with Novartis India Ltd. EMail: rajenmehrotra@gmail.com.

Published in October 2020 issue of Current Labour Reports.

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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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