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Technology prevents wastage of product

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Nitin Vyas, Managing Director and CEO, Beumer India, talks about how technology is the driving force behind the innovations in packaging, which will ultimately lead to more sustainable solutions and better efficiency.

Tell us about the loading systems and their impact on the energy efficiency of the cement manufacturing process.
If you break down the cement manufacturing processes into the raw and final product stages, about 25 per cent cost is sitting in the loading and packaging areas, which is part of the overall logistics. This is one of the most inefficient systems in the cement industry in the world, while the most efficient manufacturing systems are sitting in India. Unfortunately, a lot of focus has not come on the packing, loading and distribution of cement. Our machines not only function with respect to electro-mechanical loading efficiency or energy efficiency, they also are fully automatic. So, without any human intervention, a full truck can be loaded within 60 minutes. About 60 such machines are operational in India.
Looking at the larger picture and speaking about sustainability, our cement bags are a problem. They have a high porosity. The only two countries using these bags are India and China, where China will stop using these bags going forward as they are huge pollutants. When the bag is thrown, a lot of dust is generated. The cement industry needs to become responsible and not look at saving a miniscule amount of money per bag and rather look at the bigger picture and save the environment. Approximately Rs 2 per 50 kg bag needs to be spent to improve the quality, which will result in a better environment and better health conditions for the loader as well.
If I look at the macro numbers, India’s overall logistics cost is around 14 per cent of the GDP, whereas a developed nation’s overall logistic cost is up to 10 per cent. We are aspiring to achieve these numbers. However, the cement industry holds a logistic cost of 25 per cent, which is very high. Therefore, going forward, packing, distribution etc need to be considered to bring down this logistics cost. Sustainability needs to be created end-to-end.
The United Nations has given sustainability goals and the cement industry needs to benchmark against the same as a measure for their sustainability goals. We need to look at sustainability not only from the view of energy efficiency but as the upliftment of a society and environment. For me, in a packaging plant the word society refers to the workers. The economic benefit lies in the reduced logistic cost and a lot more. Sustainability needs to be looked at in a total framework, only then it can be achieved.

Do you think the industry experiences a gap in policies and regulations in the packaging arena?
There are no hard policies for packaging. There are no strict regulations on what kind of bags need to be used for packaging, what is the pollution limit in a packing plant etc. Sustainability is treated as fashion in today’s time, but it needs to be looked at more seriously, especially in the packaging and logistics domain.
We are hoping to implement more policies in the near future and there will be more transparency in policy and process in the days to come. Sustainability needs some push from the government, but eventually the onus is on the cement manufacturers to
follow through.

What is the role of technology in preventing wastage in packaging?
Anything that needs to be improved, needs to be measured. If you do not measure, you don’t know where you are standing. For example, your machine is supposed to produce 100 tonnes of cement in an hour, but in reality, it despatches only 80 tonnes in an hour, which should not be a satisfactory measure.
When the machines are technologically and digitally enabled, and the processes around them are made intelligent, too, then the measures are correct and precise. For a machine, system or line, manufacturers must measure Overall Equipment Effectiveness (OEE), to make it more efficient. This measurement will have an economic benefit, preventing wastage, by maximising the usage of the asset.
This enabling can work wonders in a cement packaging plant. For example, when a truck comes into the yard, enable it digitally by having a RF card, which the driver can scan and get to know his parking location and loading time. This saves time of filling out forms, reduces manual errors and saves cost. The truck can further get attached to machines, where packed bags can be loaded in a set weight and amount to have the most optimised loading of cement bags that can be despatched. Thus, technology prevents wastage of product, and it brings efficiency in terms of time and cost.

How important is data in building the kind of technology described by you?
Humans were originally hunters and gatherers. Our tools were bows and spears that were used for hunting. Then came the agricultural and industrial age when land was fuel and steel and coal were fuels, respectively. In today’s era, the digital age, data is the new fuel. Some of the data driven industries are richer than countries all together, because the new fuel for the economy is data. The first step to using data efficiently is to harvest it. Data is all over the place and data points need to be identified that should be harvested. People who use machines should understand the data points. Once the data is harvested it needs to be structured and put into categories and then start using it.
We do big data analytics for our machines. The objective is to improve the quality and efficiency of the machine. Data gives an opportunity to serve the existing market and improve existing machines while showcasing an opportunity to give economies of outcome. Thus, data is a powerful tool and one needs to identify and use it judiciously for their business and machines. It helps us better our technology by providing insights into the gaps as well as opportunities in the cement packaging sector.

What kind of innovations can be expected from your organisation in the near future?
We are working on a packaging machine that has a digital service attached to it. It comes with a smart glass, which will be given to the customer. So, whenever there is a breakdown or need for repair, there will not be a need for some person to come in. The personnel at the plant can wear these glasses. They have a camera and a screen that displays manuals and instructions. They can be heard and there is a facility to speak for help as well. All our machines are equipped with remote connectivity, which allows experts at the back office to take control of the machine and the person at the plant can show what is happening and get real time repair solutions, thus, saving on time and preventing longer downtimes.
This is one of many digital technologies that we plan to implement with our projects. For example, whenever we had a brown field on our existing plants, typically surveys were done manually, which used to take days. Now we are implementing 3D laser scanners, which will speed up the process at the plant. It beams the lasers around and with that we get the entire topography of the area, surface details and all required details to make modifications to our systems. All our machines now come digitally enabled. We also have apps to measure overall equipment effectiveness for plants and units to be more effective.

-Kanika Mathur

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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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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