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A leap towards a technology horizon

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Indian cement plants are gearing up for the future by embracing digitisation to earn a competitive advantage in the market. The plant is just one component of the cement value chain, but it remains one of the most important components in achieving operational efficiencies, higher energy efficiency, reduced carbon footprint, and overall business goals.

Over the last few years, cement companies are increasingly focusing on transforming the way they do business, through implementing the right technologies. They are investing heavily in digital assets to automate their operations. Artificial Intelligence, big data, cloud, IoT, and systems integration technologies are some of the new technology horizons that Indian cement companies are adopting to offer a competitive advantage and create sustainable growth in the near future.

The ongoing pandemic has made cement companies realise the importance of technology in cement plants. Cement companies today have started embracing various technologies to achieve considerable productivity gains and to recover from the impact of Covid-19. We spoke to companies like ACC, Shree Cement, JK Lakshmi, and KnowledgeLens, to understand various trends and technologies in the cement industry. Our takeaway is that Indian cement companies are on a journey to achieve resilient, agile, green, and efficient cement plants.

According to new market research by Global Market Estimates, the Global Artificial Intelligence in Cement Production Market is projected to grow at a CAGR value of 28.5% during the forecast period of 2021 to 2026. Predictive analysis and AI help to identify the inefficiencies in the process and hence a lot of cement companies are looking for deploying such solutions. Solution providers such as ABB, Siemens, ES Processing, Petuum, Halliburton, and thyssenkrupp among others are the players in the artificial intelligence in the cement production market.

Technology advancements

A strong IT infrastructure enables a fully integrated cement value chain. Right from algorithms, cement quality, energy efficiency, and cement-to-clinker ratios, technology can automatically track and improve the efficiency level of each piece of equipment and procedure.

ACC and Ambuja Cement have technologies such as Tool Location System (TLS) and Supervisory Control and Data Acquisition (SCADA) to increase plant efficiency and uptime. Neeraj Akhoury, CEO India LafargeHolcim, MD & CEO of Ambuja Cements, explains, ??aunched almost a year ago, another innovation – the Remote Troubleshooting Tool using Smart Glass Technology has proven to be a delight for site engineers. This two-way tool ensures timely and expert support to plants, especially during this pandemic where this tool has been considered a boon. Digital Eye is another technology utilised by both companies to digitally monitor factory and plant operations using drones and video analytics to operate effectively and increase safety.??/p>

Similarly, Orient Cement has taken IT initiatives to accelerate the digitisation journey by leveraging Industry 4.0 technologies to improve their plant?? Operational Visibility and bring in Predictive Analytics for better operational efficiency.

Predictive analysis is the buzzword today. In cement plants, it can be used for Equipment Monitoring and Predictive Maintenance by installing factory-fitted sensors. These sensors are intelligent enough to detect the source of the problem. Having such tools reduces inspection time and ordering time, which leads to a reduction in overall cost to the company.

Technologies around predictive quality and process control are also been deployed at cement plants for major processes such as raw material crushing and grinding, baking raw material, and clinkerisation. In a typical traditional method, this process depends on a lot of parameters like the speed of the mill, mill temperature, clinker feed temperature, grinding duration, etc, which makes it time-consuming and complicated. Having an advanced predictive system can detect variability across these parameters.

Cement companies have realised the need of improving their processes. Such is the case of Orient Cement, the company needed a robust technology that could facilitate a manufacturing data lake to facilitate historical analytics of the plant data for operational insights, anomalies detection, and areas of process improvement. The cement company implemented iLens ??Industrial IoT Solution at their Plant at Devapur.

Sudheesh Narayanan, Founder & CEO of Knowledge Lens, explains, ??e interfaced the Plant?? PLCs (Programmable Logic Controller) with in-built protocol support to perform real-time data acquisition of around 4000 parameters across multiple PLC Machines in 3 Units to monitor the assets, storage of historian data and a mechanism to backup, synchronise the data from plant network to the corporate network in a secure manner. The data was stored in a highly scalable big data platform which served as a unified storage repository to perform monitoring and analytics.??/p>

Therefore, Data analysis is the key. It is another important area where cement companies are looking at automation. A few cement companies use data obtained from their systems and processes to determine and assess cement quality and energy consumption.

Technology for Seamless Supply chain

Seamless logistic operations are important in every cement plant because the raw material and the finished product are reactive to external conditions like moisture, heat, impurities, etc. The transport of materials mostly happens through heavy trucks. For a seamless operation, it is important to have control of your supply chain. Thus, cement companies are installing supply chain solutions to monitor the location of each vehicle in their fleet, and measure the payload carried by each vehicle. During Covid times, automation in this area has proved to be a boon to check the vitals of the crew members. IT solutions offer help in routing vehicles to their destinations without wasting time and cost.

Shree Cement is an excellent example who have gone from old methods to advanced Supply chain mechanism. Earlier, the company was handling 5000 trucks on daily basis across all units. This massive volume was leading to Truck Turnaround Time (TAT) of 12-13 Hrs and was resulting in a rise in freight cost significantly. Moreover, due to security checks, vehicles were being stranded within the plants at various for several hours, severely impacting the dispatch capacity.

To address these challenges, Shree Cement has installed RFID Based Integrated Logistics Management System (ILMS), Boom Barriers at security checkpoints, Manless weighbridges, Auto Invoice Generation through Robotics Process Automation (RPA), and Auto E-way bill through third-party applications.

Now, truck movement inside the plant premises is completely automated. Real-time tracking of vehicles is being done leading to a reduction in turnaround time to 4-5 Hrs. ??he visibility has increased dramatically leading to smooth and clutter-free movement. Not only this, all our 80 manless weighbridges and invoicing through RPA have saved 320 and 100 manpower respectively. This manpower was shifted to more productive operations resulted in more output and less new hiring,??says Yogesh Mehta, Vice President, Shree Cement.

Similarly, ACC and Ambuja Cement realised the need for digital implementation in Supply chain Management, and thus have implemented Blue Yonder Luminate Planning for supply chain transformation and digitalisation. They launched the Transport Analytics Center (TAC) in March 2020, which ensured allowing operational teams with real-time data on distribution safety, cost optimisation, and efficiency improvement.

Reaping the Benefits

Modernisation comes with loads of benefits to the cement industry, such as improved operations, better customer service, cost optimisation, and better collaboration.

Akhoury states that the company?? ??lants of Tomorrow??certified operation promises 15 to 20 per cent more operational efficiency compared to a conventional cement plant.

Interestingly, there are technologies been deployed by cement players to track real-time journeys. Some cement companies have installed integrated dashboards that offer key insights into their businesses. This integrated system aids decision-makers to identify the weakest links in the supply chain and take necessary steps to improve the process.

Cement plants are rethinking their products and taking energy-efficient measures to achieve carbon neutrality. According to few analysts, cement plants have the capacity to reduce CO2 emissions by up to 75 per cent by 2050. And this could be achieved by advanced measures like scaling of carbon capture, utilisation, and storage technologies.

Reducing CO2 emissions is on every cement company?? top agenda. By adopting the right technologies, the cement companies are aggressively looking forward to meeting their sustainability targets. Cement players are more conscious now of selecting and investing in technology to improve the energy efficiency of their production facilities. With help of technology, they are aiming at using alternative raw materials and fuels to replace CO2-intensive clinker.

Best practices

There cannot be a single approach for all cement plants. Each plant has its own objective and challenges and should choose its path depending on goals, desire for centralisation, existing in-house infrastructure, capacity, budget, and resources. One common objective could be around value generation. This is where technology comes into the picture. Companies need to introspect questions like–Can a fully integrated manufacturing unit generate higher margins?

Cost estimation and time estimation should be taken into account before choosing the right IT solution. Beyond that, some of these investments might be driven by compliance requirements.

CONCLUSION

Indeed, there has been an acceleration in the adoption level of IT at cement plants today and we feel that the Indian cement plants will operate in a drastically different way than it operates today.

Concrete

Cement Makers’ Margins To Fall Rs 50-75 Per Tonne Amid West Asia Conflict

Crisil Sees Margins Easing Despite Steady Demand

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Crisil said operating margins of Indian cement manufacturers are expected to decline by Rs 50-75 per tonne (t) this fiscal to Rs 925-950 per t due to higher input costs triggered by the West Asia conflict. The analysis covered 18 cement companies accounting for nearly 90 per cent of India’s domestic cement capacity and noted margins had improved sharply to around Rs 1,000 per t in fiscal 2026.

Crisil noted that the reduction would be driven mainly by higher power and fuel costs, which account for about 30 per cent of total costs, as petcoke and imported coal prices have surged amid geopolitical uncertainties. Freight costs, which account for about a quarter of total costs, are also expected to remain elevated because of higher diesel prices. The impact on profitability is likely to be more pronounced in the first half of the fiscal year before easing commodity prices moderate cost pressures later.

The rating agency said steady domestic demand and strong balance sheets should keep credit profiles stable despite the moderation in margins. Green energy currently accounts for 35-40 per cent of the sector’s total electricity consumption and is expected to partly cushion higher energy costs. Operating cash flows are likely to remain resilient, supported by projected 6-7 per cent growth in cement demand this fiscal.

Crisil highlighted that demand growth will be driven primarily by infrastructure spending, which meets about one-third of sector consumption, and by a nearly 18 per cent higher budgetary allocation for core ministries that should support project execution. Weaker rural housing demand amid pressure on agricultural incomes from a possible below-average monsoon may be offset by improved urban housing demand supported by favourable home-loan rates and a strong pipeline of Pradhan Mantri Awas Yojana-Urban projects. Ongoing capacity additions will keep capital expenditure elevated and may lift net debt to EBITDA to between 1.2 and 1.4 times from around 1.0 time last fiscal, though ratios are expected to remain healthy.

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Concrete

UltraTech Board Approves Rs 50 bn Fundraise Via NCDs

Company to issue half a million debentures for expansion plan

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UltraTech Cement’s board of directors has approved raising Rs 5,000 crore (Rs 50 bn) through non?convertible debentures issued in rupees.

The finance committee cleared a proposal to issue up to 500,000 fully paid, unsecured, listed, rated, redeemable, rupee?denominated, non?convertible, non?cumulative debentures of Rs 1 lakh each (Rs 0.1 mn each), aggregating to the Rs 5,000 crore programme.

As of June 2026 the firm reported net debt of Rs 15,875 crore (Rs 158.75 bn) and said its capacity expansion projects under execution are backed by capital expenditure of about Rs 17,000 crore (Rs 170 bn) over the next two to two?and?a?half years.

UltraTech spent Rs 9,500 crore (Rs 95 bn) on capital expenditure in financial year 2026 and in April the group crossed 200.1 mn tonnes per annum of domestic grey cement capacity and 205.5 mn tonnes per annum of global capacity.

The chief financial officer indicated the company would take consolidated capacity beyond 242 mn tonnes per annum, with grey cement capacity reaching 212.7 mn tonnes per annum by the end of financial year 2027. He noted the net debt?to?earnings before interest, taxes, depreciation and amortisation ratio stood at 0.87 times as of June 2026 and the company was confident of ending financial year 2027 with the ratio below one time.

In the first quarter of financial year 2026?27 UltraTech’s net profit attributable to owners rose 16.8 per cent year?on?year to Rs 2,599.3 crore (Rs 25.993 bn) and revenue from operations increased 15.9 per cent to Rs 24,648.20 crore (Rs 246.482 bn). The board approval is expected to complement internal cash flows as the company advances its expansion programme.

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Concrete

Lokesh Lays Stone For Rs 31 Billion Cement Unit In Kadapa

Line-2 expansion to make Kadapa a major cement hub

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Andhra Pradesh Education and IT Minister Nara Lokesh on Wednesday laid the foundation stone for the Line-2 expansion of Dalmia Bharat Cement at Chinnakomerla village in Mylavaram Mandal in Kadapa district. The project carries an investment of Rs 31 billion (bn) and is slated for completion by the third quarter of the financial year 2028. The expansion is intended to boost industrial growth and employment generation across the Rayalaseema region.

Once commissioned, the Kadapa facility will become Dalmia Bharat’s largest integrated cement manufacturing ecosystem in southern India, creating over 1,000 direct and indirect jobs and opening new business avenues for regional micro, small and medium enterprises and transport operators. Lokesh said the expansion signalled growing corporate confidence in the state and reflected the practical ease of doing business that secured repeat investment.

He placed the project within the government’s wider economic targets and recalled the Yuvagalam padayatra commitment to generate two million (mn) jobs within five years, noting that the state would cultivate talent while industry created opportunities. Lokesh highlighted Andhra Pradesh’s competitive pursuit of major manufacturing accounts, mentioning past successes and a personal initiative to engage global investors when persuading them to anchor expansion in the state.

The plant will leverage Kadapa’s abundant limestone reserves to scale production and sustainability. Clinker capacity is planned to rise from two point five million tonnes per annum (mn tpa) to six point one mn tpa, while overall cement output will increase from three point six mn tpa to nine point six mn tpa. The unit is designed to operate on over eighty per cent renewable energy and deploy waste heat recovery, zero liquid discharge, water recycling and advanced AI systems to optimise efficiency. Industries Minister TG Bharat, BC Welfare Minister S. Savitha and Jammalamadugu MLA C. Adinarayana Reddy attended the ceremony.

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