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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.

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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