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Optimisation is about doing more with less

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Rizwan Sabjan, Head – Regional Sales Enablement, FLSmidth, sheds light on the use and implementation of connectivity-based technologies and AI for the smooth transitioning of the cement industry from manual to automated processes that make cement plants more sustainable and greener.

Tell us about the role of technology in increasing the productivity of cement. Which of your equipment can contribute to the same?

Recently, the cement industries have seen a change in what shapes growth. The spotlight has shifted from increasing capacity to enhancing productivity. Digitisation has considerable advantages to make this shift possible. To support our customers, we are building a growing portfolio of digital solutions that connect, monitor and optimise performance, in response to the demands of this changing business landscape. We call it FLSmidth ENABLR, because it enables customers to simplify their operations and improve productivity.

Which technology is underrated and less used by cement makers, but is likely to prove beneficial in the long run?

Advance Process Control systems are very often seen as one of the main drivers needed to reach the dream of autonomous operations. In this context, it’s commonly portrayed in the media that artificial intelligence (AI) is replacing APC systems. But this wrongly assumes that AI is already a synonym for fully autonomous operations. This kind of misrepresentation does not help, as such fully autonomous continuous-process plants are still not that close to reality. The ability of AI technologies to continuously adapt to changing conditions to find the optimal operating parameters and targets is one of the key areas in which AI can improve the ability of APC systems to optimise cement processes.

Cognitive augmentation: The ability to gather, analyse and combine various data streams in real time can bring relatively quick benefits from operational and safety perspectives. One example would be building new virtual sensors to replace unreliable or unavailable signals, particularly when the instrumentation is placed in risky areas or is often out of service.

Smart controllers: In certain contexts, controllers, such as linear and non-linear MPCs or fuzzy, can be enhanced and complemented by virtual models of machinery or processes, known as digital twins. If the digital twins are done well, they can be used to find the controller’s optimum parameters, which leads to more stable processes, achieves higher production and quality levels, or decreases the amount of energy or water used.

Dynamic adaptiveness: Many cement processes are by nature nonlinear and time-varying: this means that actions that were optimal to achieve specific goals yesterday (or even an hour ago) may be suboptimal or even inefficient now. A clear example of this is the cement kiln, where a strong push to substitute fossil fuels with alternative fuels, in as high a ratio as possible, makes stabilisation and optimisation a challenging task, both for human and expert systems.

Most equipment and machinery in plants are often regularly inspected visually. Can these inspections be made more precise and pre-empt damage to save downtime and costs?

With equipment in continuous use, damage can happen at any time. While visual inspections are important to provide broad, contextualised operational insights, relying only on intermittent site visits puts customers at the risk of missing the early warning signs that could enable them to drastically reduce both downtime and expenses. Online condition monitoring is a continuous service that enables customers to detect potential failures well in advance, giving them plenty of time to take preventative action and avoid actual failure.

All these symptoms warn the customers that damage is imminent. In many cases, when the visible symptoms appear, it is already much too late for an ‘easy’ fix. By contrast, sensors on customer equipment are able to capture data that may be otherwise ‘invisible. Our online condition monitoring services connect this data to the cloud where it is continuously monitored and trended. If something is wrong, an alarm notifies our team of experts who are able to analyse the data remotely and develop a recommended action plan to rectify the fault well ahead of it escalating. It’s a low-stress, low-cost, low-risk approach to maintenance that offers high returns.

Kanika Mathur

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Concrete

Lower sales realization impacts margins for cement makers in Q2 FY25

The industry encountered several challenges, including an extended monsoon season.

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Major cement manufacturers reported a decline in margins for the September quarter, primarily due to lower prices, which led to decreased sales realization.

With the exception of three leading cement producers—UltraTech Cement, Ambuja Cement, and Dalmia Bharat—smaller companies, including Nuvoco Vistas Corp, JK Cement, Birla Corporation, and Heidelberg Cement, experienced a drop in both topline and sales volume during the second quarter of the current fiscal year.

The industry encountered several challenges, including an extended monsoon season, flooding, and a slow recovery in government demand, all contributing to weak overall demand.

Despite these challenges, power, fuel, and other costs largely remained stable across the industry. The all-India average cement price was approximately Rs 348 per 50 kg bag in June 2024, which represented an 11 per cent year-on-year decrease to Rs 330 per bag in September, although it saw a month-on-month increase of 2 per cent.

In the first half of FY25, cement prices declined by 10 per cent year-on-year, settling at Rs 330 per bag. This decline was notable compared to the previous year’s average prices of Rs 365 per bag and Rs 375 per bag in FY23, as reported by Icra.

Leading cement manufacturer UltraTech reported a capacity utilization rate of 68 per cent, with a 3 per cent growth in volume. However, its sales realization for grey cement declined by 8.4 per cent year-on-year and 2.9 per cent quarter-on-quarter during the July-September period.

In response to a query regarding cement prices during the earnings call, UltraTech’s CFO Atul Daga indicated that there had been an improvement in prices from August to September and noted that prices remained steady from September to October. He mentioned that the prices had risen from Rs 347 in August to approximately Rs 354 currently.

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Concrete

Steel companies face Rs 89,000 crore inventory crisis

Steel firms grapple with Rs 89,000 crore stockpile amid import surge.

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Steel companies in India are facing a significant challenge as they contend with an inventory crisis valued at approximately Rs 89,000 crore. This situation has arisen due to a notable increase in steel imports, which has put pressure on domestic producers struggling to maintain sales in a competitive market.

The surge in imports has been fueled by various factors, including fluctuations in global steel prices and increased production capacities in exporting countries. As a result, domestic steel manufacturers have found it difficult to compete, leading to rising stock levels of unsold products. This inventory buildup has forced several companies to reassess their production strategies and pricing models.

The financial impact of this inventory crisis is profound, affecting cash flows and profitability for many steel firms. With domestic demand remaining volatile, the pressure to reduce prices has increased, further complicating the situation for manufacturers who are already grappling with elevated production costs.

Industry experts are urging policymakers to consider measures that can support local steel producers, such as imposing tariffs on imports or enhancing trade regulations. This would help to protect the domestic market and ensure that Indian steel companies can compete more effectively.

As the steel sector navigates these challenges, stakeholders are closely monitoring the situation, hoping for a turnaround that can stabilize the market and restore confidence among investors. The current dynamics emphasize the need for a robust strategy to bolster domestic production and mitigate the risks associated with excessive imports.

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Concrete

JSW and POSCO collaborate for steel plant

JSW Group and POSCO ink MoU for steel project.

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JSW Group has signed a Memorandum of Understanding (MoU) with South Korea’s POSCO Group to develop an integrated steel plant in India. This collaboration aims to enhance India’s steel production capacity and contribute to the country’s growing manufacturing sector.

The agreement was formalized during a recent meeting between executives from both companies, highlighting their commitment to sustainable development and technological innovation in the steel industry. The planned facility will incorporate advanced manufacturing processes and adhere to environmentally friendly practices, aligning with global standards for sustainability.

JSW Group, a leader in the Indian steel industry, has expressed confidence that the joint venture with POSCO will bolster its position in the market and accelerate growth. The project is expected to attract significant investments, generating thousands of jobs in the region and contributing to local economies.

As India aims to boost its steel output to meet domestic demand and support infrastructure projects, this partnership signifies a crucial step toward achieving those goals. Both companies are committed to leveraging their expertise to develop a state-of-the-art facility that will produce high-quality steel products while minimizing environmental impact.

This initiative also reflects the increasing collaboration between Indian and international firms to enhance industrial capabilities and foster economic growth. The MoU sets the stage for a promising future in the Indian steel sector, emphasizing innovation and sustainability as key drivers of success.

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