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Cement industry is giving a major thrust to energy-saving projects

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Dr Hitesh Sukhwal, Deputy General Manager – Environment, Udaipur Cement Works, discusses how the highly energy-intensive nature of cement production can be changed with the use of automation and optimising processes.

What is the energy consumption in one cycle of cement manufacturing process? Which process is the most energy intensive?
Cement manufacturing is a highly energy intensive process. It requires a large number of resources for making availability from raw material to finished goods. The cement manufacturing process can be divided into three major processes viz. raw material processing, clinkerisation and finish grinding processing (cement production – finished goods). Based on the water content in raw materials, the cement manufacturing process further can be divided into four categories like dry, semi-dry, semi-wet and wet process. Since cement production requires complete evaporation from the raw material, a higher percentage of water content will require a more energy intensive process.

In general, energy consumption in the cement industry is fulfilled from electrical energy and thermal energy from different kinds of fuels. Over 90 per cent of the energy consumed from fuels in the production of clinker. On the other hand, electrical energy is used for processing the raw material, burning the clinker, grinding of finished product, packaging etc. Maximum utilisation of electrical energy in cement manufacturing process is in grinding.

Based on the manufacturing process whether dry, semi dry, wet process, energy consumed accordingly. Today with few exceptions, almost all cement industries have adopted the dry manufacturing process, which is a more efficient process for energy consumption in comparison to wet processes.

What are the sources of energy used for cement manufacturing in your organisation?
Udaipur Cement Works Limited (UCWL) has an integrated cement plant with an installed production capacity of 2.2 million tonnes per annum (MTPA).

Our company is committed towards sustainable business growth by adopting the latest state-of-theart technology based and resource efficient equipment in its manufacturing process. The company has ISO certification for Environment (14001), Occupational Health and Safety (45001), Energy (50001) and Quality Management System (9001). Company has also inventoried its carbon and water footprint as per ISO 14064 and ISO 14046.

With in-house innovations, our company has done various energy saving projects and reduced energy consumption. UCWL has a 6.0 MW waste heat recovery-based power plant as a green power source.

During fiscal 2021-22, UCWL increased its solar power generation capacity by 4.35 MW, in addition to the existing 10.1 MW. Further, our unit is going to install 10 MW WHRS with the ongoing Line 2 project. Today, the company sourced about 45 per cent of its energy from green power sources in the total power mix i.e., Solar and WHRS. We are also utilising alternative fuel as a source of thermal energy.

How does automation and technology help in optimising the use of energy in cement plants?
Cement industry is highly energy intensive. We are living in a new era of digitalisation. Nowadays, everything we want on our one hand about operational reports, monitoring, checking data and verification and of course the health of machines in day-to-day operation. It is only possible by adopting technology innovations and automation by the industry. Every cement industry is improving productivity to make up for the upcoming demand in consideration with cost viability. An improvement in a production technology is the best way for reduction in energy consumption. The latest digital technology is a key element for the continuous improvement for operational excellence. Advanced HMI/SCADA empowers optimal supervision and control of all operational sections in cement plants. These control devices can be linked up with equipment and enabled to get trends of machine, alarms etc., which can further be used as a reporting tool for desktop meeting and decision making. To become energy efficient is a need of the hour for the cement industry. There are technology solutions with which the industry can reduce and optimise the use of energy in cement plant such as by installation of sensors in various operational units, automated real time weighing system, smart metering for accurate measurement and monitoring, real time data acquisition system, online process sensors for getting operational report, advanced process control system, remote access for online monitoring etc. For example, Variable Frequency Drive (VFD) is the best example in the cement industry to cut down energy consumption in various operations.

What are the major challenges your organisation faces in managing the energy needs of the cement manufacturing process? As I said, our unit is meeting out more than 45 per cent of its total electrical energy requirement from the green renewable sources viz. solar and WHRS. Remaining electrical energy requirements are being fulfilled from the grid. Sometimes fluctuation in power supply from the grid disturbs the main operation in cement plants. We are working upon improving and getting rid of this issue for the plant.

Regarding thermal energy concern, dynamic fuel prices affected the input production cost in cement manufacturing. Tell us about the compliance and standards followed by you to maintain energy use and efficiency in the organisation? Our manufacturing unit is covered under the Perform, Achieve and Trade (PAT) scheme under Bureau of Energy Efficiency (BEE) by the Ministry of Power, Government of India for reducing its specific energy consumption year on year.

The company is also certified with ISO 50001 for Energy Management.

How often are audits done to ensure optimum use of energy? What is the suggested duration for the same?
As I stated earlier, our company is covered under the PAT scheme. We are an ISO 50001 certified company under energy management. We have a dedicated resource under the designation of ‘energy manager,’ who is qualified to keep a check on the energy consumption of the plant and continuously optimise the same.

A periodic energy audit (once in three years) as per EC Act is done. Half yearly internal audits and external audits once a year are performed under energy management. Moreover, power monitoring reports are discussed on an everyday basis during the desktop production meeting.

How does energy conservation impact the profitability of the organisation? What impact does it have on the productivity of the process?
The cost of cement production is governed by so many factors like availability of raw material, quality of raw material and off course fuel for thermal energy and electrical energy. As we know, the cement industry is highly energy intensive. The cost of energy as a part of the total production in the cement industry is significant. To improve the bottom line, the cement industry needs to focus on energy conservation and effective management. A huge amount of thermal energy is consumed in clinkerisation whereas high electrical energy is consumed in the grinding section.

The cost of energy per unit directly impacts the profitability of the organisation. The dynamic price of fuel and cost of electrical energy production played an important role in the cement making cost.

What are your efforts towards carbon emission reduction?
In view of climate change and the COP 26 commitments by the nation, today the UCWL meets more than 45 per cent of its total electricity requirement from the green renewable sources like solar and WHRS. The company has increased its capacity by installation of 4.5 MW solar power generation in addition to the 10.1 MW existing solar power capacity.

In addition to the existing 6 MW WHRS, we are going to increase WHRS capacity by installation of an additional 10 MW WHRS. By using green renewable power sources, we will be able to reduce a significant amount of carbon emission from our operation. We are also utilising alternative fuel or industrial waste derived fuel in our cement manufacturing process, which is also an impact on carbon emission reduction.

In what areas can cement manufacturers drastically reduce their energy consumption and how?
The cement industry is giving major thrust on energy saving projects. With the help of process optimisation, adoption of technological innovation, digitalisation of process control system, manufacturing of blended cement, AFR, retrofitting of old machineries/ motors, replacement of ball mills with vertical raw mill, efficient pollution control equipment etc. cement manufacturers can reduce energy consumption, cost of production and reduction in carbon emission.

Vertical roller mill is more energy efficient and requires less space as compared to a ball mill. By installing a roller press (for size reduction) before the mill can improve grinding quality. The significant changes in technology in the grinding section will reduce electrical energy requirement (specific energy consumption). Increase in blended percentage in cement making decreases specific energy consumption.

What kind of innovations in the area of energy consumption do you wish to see in the cement industry?
In the near future, sustainability and digitisation will be two key areas for cement business development.

Every technology innovation in terms of automation and digitisation will lead the cement industry in the area of energy consumption, carbon emission reduction and profitability.

Artificial intelligence and Industry 5.0 can provide new innovations in energy reduction. Innovation in plant machinery, robotics and manufacturing of eco green cement will make sense for cement sustainability.

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FORNNAX Appoints Dieter Jerschl as Sales Partner for Central Europe

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FORNNAX TECHNOLOGY has appointed industry veteran Dieter Jerschl as its new sales partner in Germany to strengthen its presence across Central Europe. The partnership aims to accelerate the adoption of FORNNAX’s high-capacity, sustainable recycling solutions while building long-term regional capabilities.

FORNNAX TECHNOLOGY, one of the leading advanced recycling equipment manufacturers, has announced the appointment of a new sales partner in Germany as part of its strategic expansion into Central Europe. The company has entered into a collaborative agreement with Mr. Dieter Jerschl, a seasoned industry professional with over 20 years of experience in the shredding and recycling sector, to represent and promote FORNNAX’s solutions across key European markets.

Mr. Jerschl brings extensive expertise from his work with renowned companies such as BHS, Eldan, Vecoplan, and others. Over the course of his career, he has successfully led the deployment of both single machines and complete turnkey installations for a wide range of applications, including tyre recycling, cable recycling, municipal solid waste, e-waste, and industrial waste processing.

Speaking about the partnership, Mr. Jerschl said,
“I’ve known FORNNAX for over a decade and have followed their growth closely. What attracted me to this collaboration is their state-of-the-art & high-capacity technology, it is powerful, sustainable, and economically viable. There is great potential to introduce FORNNAX’s innovative systems to more markets across Europe, and I am excited to be part of that journey.”

The partnership will primarily focus on Central Europe, including Germany, Austria, and neighbouring countries, with the flexibility to extend the geographical scope based on project requirements and mutual agreement. The collaboration is structured to evolve over time, with performance-driven expansion and ongoing strategic discussions with FORNNAX’s management. The immediate priority is to build a strong project pipeline and enhance FORNNAX’s brand presence across the region.

FORNNAX’s portfolio of high-performance shredding and pre-processing solutions is well aligned with Europe’s growing demand for sustainable and efficient waste treatment technologies. By partnering with Mr. Jerschl—who brings deep market insight and established industry relationships—FORNNAX aims to accelerate adoption of its solutions and participate in upcoming recycling projects across the region.

As part of the partnership, Mr. Jerschl will also deliver value-added services, including equipment installation, maintenance, and spare parts support through a dedicated technical team. This local service capability is expected to ensure faster project execution, minimise downtime, and enhance overall customer experience.

Commenting on the long-term vision, Mr. Jerschl added,
“We are committed to increasing market awareness and establishing new reference projects across the region. My goal is not only to generate business but to lay the foundation for long-term growth. Ideally, we aim to establish a dedicated FORNNAX legal entity or operational site in Germany over the next five to ten years.”

For FORNNAX, this partnership aligns closely with its global strategy of expanding into key markets through strong regional representation. The company believes that local partnerships are critical for navigating complex market dynamics and delivering solutions tailored to region-specific waste management challenges.

“We see tremendous potential in the Central European market,” said Mr. Jignesh Kundaria, Director and CEO of FORNNAX.
“Partnering with someone as experienced and well-established as Mr. Jerschl gives us a strong foothold and allows us to better serve our customers. This marks a major milestone in our efforts to promote reliable, efficient and future-ready recycling solutions globally,” he added.

This collaboration further strengthens FORNNAX’s commitment to environmental stewardship, innovation, and sustainable waste management, supporting the transition toward a greener and more circular future.

 

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Budget 2026–27 infra thrust and CCUS outlay to lift cement sector outlook

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Higher capex, city-led growth and CCUS funding improve demand visibility and decarbonisation prospects for cement

Mumbai

Cement manufacturers have welcomed the Union Budget 2026–27’s strong infrastructure thrust, with public capital expenditure increased to Rs 12.2 trillion, saying it reinforces infrastructure as the central engine of economic growth and strengthens medium-term prospects for the cement sector. In a statement, the Cement Manufacturers’ Association (CMA) has welcomed the Union budget 2026-27 for reinforcing the ambitions for the nation’s growth balancing the aspirations of the people through inclusivity inspired by the vision of Narendra Modi, Prime Minister of India, for a Viksit Bharat by 2047 and Atmanirbharta.

The budget underscores India’s steady economic trajectory over the past 12 years, marked by fiscal discipline, sustained growth and moderate inflation, and offers strong demand visibility for infrastructure linked sectors such as cement.

The Budget’s strong infrastructure push, with public capital expenditure rising from Rs 11.2 trillion in fiscal year 2025–26 to Rs 12.2 trillion in fiscal year 2026–27, recognises infrastructure as the primary anchor for economic growth creating positive prospects for the Indian cement industry and improving long term visibility for the cement sector. The emphasis on Tier 2 and Tier 3 cities with populations above 5 lakh and the creation of City Economic Regions (CERs) with an allocation of Rs 50 billion per CER over five years, should accelerate construction activity across housing, transport and urban services, supporting broad based cement consumption.

Logistics and connectivity measures announced in the budget are particularly significant for the cement industry. The announcement of new dedicated freight corridors, the operationalisation of 20 additional National Waterways over the next five years, the launch of the Coastal Cargo Promotion Scheme to raise the modal share of waterways and coastal shipping from 6 per cent to 12 per cent by 2047, and the development of ship repair ecosystems should enhance multimodal freight efficiency, reduce logistics costs and improve the sector’s carbon footprint. The announcement of seven high speed rail corridors as growth corridors can be expected to further stimulate regional development and construction demand.

Commenting on the budget, Parth Jindal, President, Cement Manufacturers’ Association (CMA), said, “As India advances towards a Viksit Bharat, the three kartavya articulated in the Union Budget provide a clear context for the Nation’s growth and aspirations, combining economic momentum with capacity building and inclusive progress. The Cement Manufacturers’ Association (CMA) appreciates the Union Budget 2026-27 for the continued emphasis on manufacturing competitiveness, urban development and infrastructure modernisation, supported by over 350 reforms spanning GST simplification, labour codes, quality control rationalisation and coordinated deregulation with States. These reforms, alongside the Budget’s focus on Youth Power and domestic manufacturing capacity under Atmanirbharta, stand to strengthen the investment environment for capital intensive sectors such as Cement. The Union Budget 2026-27 reflects the Government’s focus on infrastructure led development emerging as a structural pillar of India’s growth strategy.”

He added, “The Rs 200 billion CCUS outlay for various sectors, including Cement, fundamentally alters the decarbonisation landscape for India’s emissions intensive industries. CCUS is a significant enabler for large scale decarbonisation of industries such as Cement and this intervention directly addresses the technology and cost requirements of the Cement sector in context. The Cement Industry, fully aligned with the Government of India’s Net Zero commitment by 2070, views this support as critical to enabling the adoption and scale up of CCUS technologies while continuing to meet the Country’s long term infrastructure needs.”

Dr Raghavpat Singhania, Vice President, CMA, said, “The government’s sustained infrastructure push supports employment, regional development and stronger local supply chains. Cement manufacturing clusters act as economic anchors across regions, generating livelihoods in construction, logistics and allied sectors. The budget’s focus on inclusive growth, execution and system level enablers creates a supportive environment for responsible and efficient expansion offering opportunities for economic growth and lending momentum to the cement sector. The increase in public capex to Rs 12.2 trillion, the focus on Tier 2 and Tier 3 cities, and the creation of City Economic Regions stand to strengthen the growth of the cement sector. We welcome the budget’s emphasis on tourism, cultural and social infrastructure, which should broaden construction activity across regions. Investments in tourism facilities, heritage and Buddhist circuits, regional connectivity in Purvodaya and North Eastern States, and the strengthening of emergency and trauma care infrastructure in district hospitals reinforce the cement sector’s role in enabling inclusive growth.”

CMA also noted the Government’s continued commitment to fiscal discipline, with the fiscal deficit estimated at 4.3 per cent of GDP in FY27, reinforcing macroeconomic stability and investor confidence.

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Steel: Shielded or Strengthened?

CW explores the impact of pro-steel policies on construction and infrastructure and identifies gaps that need to be addressed.

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Going forward, domestic steel mills are targeting capacity expansion
of nearly 40 per cent through till FY31, adding 80-85 mt, translating
into an investment pipeline of $ 45-50 billion. So, Jhunjhunwala points
out that continuing the safeguard duty will be vital to prevent a surge
in imports and protect domestic prices from external shocks. While in
FY26, the industry operating profit per tonne is expected to hold at
around $ 108, similar to last year, the industry’s earnings must
meaningfully improve from hereon to sustain large-scale investments.
Else, domestic mills could experience a significant spike in industry
leverage levels over the medium term, increasing their vulnerability to
external macroeconomic shocks.(~$ 60/tonne) over the past one month,
compressing the import parity discount to ~$ 23-25/tonne from previous
highs of ~$ 70-90/tonne, adds Jhunjhunwala. With this, he says, “the
industry can expect high resistance to further steel price increases.”

Domestic HRC prices have increased by ~Rs 5,000/tonne
“Aggressive
capacity additions (~15 mt commissioned in FY25, with 5 mt more by
FY26) have created a supply overhang, temporarily outpacing demand
growth of ~11-12 mt,” he says…

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