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We have increased digital initiatives many folds during Covid time

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Rajesh Kumar Singh,Vice President ??IT, JK Lakshmi Cement

Kindly share your views on role of technology in cement industry today.

Cement being a high-density and mass consumption item, requires a prompt supply chain to serve its consumers. The scale of production of cement is another important aspect that is helping consumers in getting the product at a reasonable price. Characteristics like high density, Mass consumption, prompt supply chain, and scale of production are facets where the industry can innovate immensely with use of technology. Care of the environment is another area where this industry can use technology to reduce its carbon footprints and to consume industrial and domestic waste for a cleaner environment.

What are the various digital / IT technologies deployed in your company and what was the objective behind the implementation?

In JK Lakshmi Cement, IoT and AI enablement have been deployed at Crushers, Clins, and Cement Mills to improve productivity through consuming lesser raw materials, fuels, etc, and to control wastes in the form of heat and any other by-product. The supply chain cockpit has been set up for the planning and execution of logistics. This digital investment has facilitated optimising the supply chain and has enabled a swifter fulfilment model and better service to our customers. AI-ML and Auto-ML solutions have been deployed for Predictive Maintenance and automation of Packing Sections. A digital platform has been created to digitise our customers and channel partners. IoTs have been deployed in the health monitoring of hydrant systems, borewells, and water flow systems to conserve water to the maximum level.

Please elaborate on the stages of implementation. Was it done in a phased manner? How much time did it take? Did you find any hurdles?

These digital initiatives have been deployed in a phased manner. Criteria for phased deployment was primarily based on the readiness of the context where these solutions have been deployed. In cases, maturity of core technologies or availability of complementary technologies or its pricing has pushed us to go for a phased approach.

A transformation whether it is related to production processes or predictive maintenance or setting up a supply chain cockpit is generally spanned over 16 to 18 months and phased in two sprints. Through one sprint it can be complete in 9 to 12 months, but it is getting too risky to go ahead with one sprint as the degree of success will be known only after the sprint is over, thus limiting opportunities to refine the strategy in case something is not going as intended.

Managing change is a hurdle that needs to be planned judiciously to overcome. Any shortcoming on this will impact the timelines of deployment. In some cases, we faced challenges wherever planning on change management was not perfect but luckily it has impacted only on timelines of the project and not on success and its deliverables.

Kindly provide project cost/allocation of budget for technologies deployed, if possible.

We were very aggressive on investment in digital. We are ensuring that yearly returns from the initiatives are in multiples and not in percentages.

What benefits have you derived after IT implementation? How are new processes better than old methods?

With these initiatives, we are having better control over the cost of production. We have reduced the unplanned shutdown of machines and have improved services to our customers. With the new digital platform, now our customers feel that we are closer to them for every interaction they are doing with us.

In the new setup, we are sensing the situation early enough to respond in a timely manner and appropriately. In some cases, the ease and efficiency of processes have increased because new processes have got simpler and automated.

How was the upskilling done for training the staff with new technologies and processes? Were there any challenges?

Barring AI-ML, upskilling was not a challenge at all because the deployment of technologies has simplified the processes so it can be performed with lesser skillset and with higher efficiency and accuracy.

Even in the case of AI-ML, deployment of data science platform has de-skilled analytics tasks, which were otherwise possible by only skilled programmers and persons having high proficiency in data science.

Having said that, training would require for the teams who are transforming the processes through the deployment of technologies. But this training was lesser on technologies and more on how to manage change which will be inevitable because of transformation.

Training to the teams who were engaged in the transformation was a mesmerising experience and not a challenge.

How has IT played an important role in expanding your footprints in India/abroad? Do you think it helped you to compete with others in the market?

IT or digital platform which we have created for our customers has helped immensely by taking us closer to them. It has also enabled us to increase our reach and penetration in the markets we were operating or in the market where we were not present. More important is that it has helped us in identifying the market where we can operate more profitably.

Certainly, these IT deployments are helping us to do much better than what we were doing earlier. It might be resulting in increasing our competitiveness, but our focus is still to do better than what we have done the day had bygone.

How has COVID-19 emerged as a need for IT implementation in the cement industry? What initiatives did your company take during Covid times to achieve better efficiency even during lack of resources?

The need was always there for the implementation of IT solutions in cement or any other industry in India. As it happened for other industries, Covid-19 has amplified the requirement for digitisation and has also triggered the intent.

Our resources were very much there with us during Covid-19 breakdown, but they were not moving freely. In the beginning, they would not be connected adequately. So, we rushed to connect them securely, and then things started to fall in place in no time. Seeing the new normal, a lot of mindset and cultural issues have transformed instantaneously.

One big positive change worth mentioning during Covid-19 times was that acceptance for the change came with zero cost. We leveraged this opportunity and have multiplied digital initiatives to give a boost to our digital initiatives and succeeded. to a great extent. Increasing interaction between internal teams and business partners by use of digital technologies was the key to our success during the Covid time.

What are your future plans in terms of IT implementation and overall company goals?

As said earlier, we have increased digital initiatives many folds during Covid time. So, in immediate future, we would like to tap the benefits of newly deployed solutions.

Embedding AI-ML to every function and every process is the next goal we are aspiring for.

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Concrete

Cement Prices to Stay Flat in Q2 FY27 as Costs Squeeze Margins

HDFC Securities warns monsoon slowdown and higher fuel costs

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HDFC Securities has said the cement industry is unlikely to register a sequential increase in prices in Q2 FY27 as monsoon-related demand moderation coincides with rising fuel and packaging costs that will squeeze margins. The brokerage observed that price gains remained modest, with increases of two to three per cent quarter-on-quarter across regions, and noted subdued offtake in May with improvement in June as a delayed monsoon supported construction activity. The brokerage added that modest pricing gains so far have been insufficient to offset the input cost escalation.

The report stated that input cost pressures intensified in Q1 FY27 owing to the West Asia conflict, which pushed up coal and pet coke prices and is expected to keep fuel costs elevated, with a likely peak in Q2 FY27. It assessed that total variable costs, including packing, could rise by around Rs 150 per t quarter-on-quarter and that lower offtake and seasonal operating deleverage could further raise operating expenditure by about Rs 50 per t quarter-on-quarter.

Overall, cement prices were estimated to remain flat in Q2 FY27 as monsoon-led demand weakness offsets limited upside in realisation, and rising fuel costs alongside seasonal deleverage were expected to compress industry margins by over Rs 100 per t quarter-on-quarter to below Rs 880 per t. The brokerage indicated that the combined impact of energy inflation and higher packing expenditure would be the principal drivers of margin contraction in the near term. HDFC Securities projected a recovery in margins in H2 FY27 should the West Asia turmoil subside and energy and packing costs cool off.

The brokerage expressed optimism on long-term demand fundamentals and said improving realisation together with an anticipated cost cool-off should support a margin rebound from H2 FY27 onward, underpinning favourable industry prospects over the medium term. Its outlook rests on monsoon normalisation and a decline in imported fuel prices in the second half of the fiscal year.

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Concrete

Dalmia Bharat Begins Rs 31 Bn Green Cement Unit in Kadapa

New Andhra Pradesh plant to add 9.6 MTPA cement capacity by FY28

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Dalmia Bharat Limited recently laid the foundation stone for its second manufacturing unit at Kadapa in Andhra Pradesh. The company will invest Rs 31 billion in developing the next-generation integrated cement manufacturing facility.
The foundation-laying ceremony was attended by Nara Lokesh, Andhra Pradesh Minister for Information Technology, Electronics and Communications, Real-Time Governance and Human Resources Development, along with Puneet Dalmia, Managing Director and Chief Executive Officer, Dalmia Bharat, senior government officials and company representatives.
Scheduled to be commissioned by the third quarter of FY28, the Kadapa unit will become Dalmia Bharat’s largest integrated manufacturing facility in southern India. It will have a clinker production capacity of 6.1 million tonnes per annum and a cement manufacturing capacity of 9.6 million tonnes per annum.
The facility is designed to produce what the company describes as one of the world’s greenest cements. It is also expected to generate approximately 1,000 direct and indirect employment opportunities while supporting local MSMEs, transporters, contractors and service providers.
Lokesh said the investment reflected Dalmia Bharat’s confidence in Andhra Pradesh and aligned with the state’s objective of promoting sustainable industrialisation, job creation and technology-led economic growth.
Puneet Dalmia said the project represented the company’s long-term vision of developing low-carbon cement manufacturing assets. He added that the facility would establish new benchmarks in operational efficiency and sustainability while supporting India’s infrastructure and environmental goals.
Dalmia Bharat will also expand its regional community development programmes in education, healthcare, skill development and welfare through its DIKSHa and Gram Parivartan initiatives.
The company currently has an installed cement manufacturing capacity of 54.7 million tonnes across 19 manufacturing units in 12 states. It is also the first cement company globally to commit to the RE100, EP100 and EV100 initiatives.

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Concrete

Nuvoco Inaugurates Limla Cement Plant in Surat

Acquisition boosts Western India cement capacity

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Nuvoco Vistas Corporation Limited inaugurated the Limla Cement Plant in Surat, Gujarat, marking a key milestone in its acquisition and revival of Vadraj Cement Limited.

The company completed the acquisition of Vadraj, which had been undergoing a corporate insolvency resolution process, by discharging a consideration of Rs 18 billion (bn) in June 2025. Vadraj’s asset base includes a clinker unit at Kutch and a grinding unit at Limla, along with high quality captive limestone reserves and a captive jetty at Kutch that enhance logistics efficiency.

Since taking over the assets, Nuvoco has undertaken revival, refurbishment and expansion across both sites, culminating in the opening of the Limla facility. The grinding unit at Limla achieved project completion ahead of schedule with the commissioning of two million tonnes per annum (mn t per annum) grinding capacity, further expanding the company’s scale and market reach.

Upon full operationalisation of the Vadraj assets, nearly 40 per cent of Nuvoco’s total cement capacity will be accounted for by plants in the North and West regions, supporting improved access to high growth markets. The plant is expected to support a phased volume ramp up in Gujarat and to serve adjoining markets in western Maharashtra while releasing northern capacities for other markets.

It will produce a complete portfolio of cement products including Ordinary Portland Cement, Portland Slag Cement, Portland Pozzolana Cement and Portland Composite Cement, and will offer the Duraguard range including the premium Duraguard Microfibre. The transaction is set to create synergies with Nuvoco’s existing manufacturing facilities at Nimbol and Chittorgarh, strengthening logistics optimisation and market access across key regions.

Nuvoco reported total income of Rs 113.62 billion (bn) in FY 2025-26 and stated it is on track to consolidate total cement capacity to 35 million tonnes per annum (mn t per annum) by FY2028. The company operates across cement, ready-mix concrete and modern building materials segments and highlighted a pan-India ready-mix presence alongside contributions to major infrastructure projects. Corporate communications contact details were provided by the company.

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