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Our next target is to further reduce heat consumption

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AK Dembla, President & Managing Director, Humboldt Wedag India Pvt Ltd, sheds light on the positive effect of pyroprocessing and technology in cement production, and its ultimate impact on efficiency and profitability.

Tell us about the key areas where pyroprocessing has evolved since the 1950s?
In the 1950s, pyroprocessing was at a very nascent stage. There used to be wet process plants and heat consumption used to be around 1400 to 1600 kCal/kg clinker. In 1956, the first 4-stage preheater technology was developed and KHD was a pioneer in it. This reduced the heat consumption to 800 kCal/kg clinker and subsequently there was a development of the calciner technology which further optimised the heat consumption and increased the kiln productivity. The technology since then has been developing and we have now been able to bring down the heat consumption to 680 to 685 kCal/kg clinker. This has been a major step that has been achieved by the industry.
Our next target is to further reduce heat consumption either through substitution with alternative fuels or through some low temperature cements. We are trying to make this possible with the current methodologies in place. However, if there is a technological disruption, then the case may differ.

How is your technology helping reduce the carbon footprint?
As mentioned, in the area of heat consumption, we have been able to bring it down to almost half of what it was right at the beginning (early 1950) and that has been a major step in the reduction of carbon footprint. Another major step is the use of alternative fuel which is used on an average at
6 per cent in the Indian cement industry, some plants even use it up to 20 per cent. So, whatever alternative fuel we use, equivalent heat we calculate because it comes through a circular economy. And that much heat is saved, thus, reducing the carbon footprint
as well.
The industry is also working on reducing
the clinker factor in cement. Initially there was a demand for OPC, but when PPC started being popularised in early 2000 (July 2000) when the government had allowed up to 35 per cent flyash as additive in blended cement, the clinker factor substantially reduced, thus, majorly reducing the carbon footprint of the industry. Similarly, more blended cements started getting introduced by the cement makers to reduce the carbon footprint and with advancement of technology and research, the industry is gearing up to achieve net zero in concrete (final product from cement) by 2050.

How has your equipment adapted to the changing raw mix and fuels?
The good thing about using alternative fuels is that if its use is planned initially, then the process can be designed/ adapted for it. The limitation of using alternative fuel in an existing plant is to use extra equipment like shredders, preparation units for plastic waste or municipal waste or agriculture waste or hazardous waste etc. Another limitation is that the amount of alternative fuel that can be fed in the existing system can go up to 20 per cent, beyond that there is a need to modify the calciner system or add equipment for proper combustion of waste apart from the problem of bypassing minor constituents like chloride etc. For new plants that plan to use alternative fuels, we provide them with additional equipment like combustion chamber, pyro-rotor etc. that helps cement makers accommodate a higher percentage (more than 80 per cent of calciner fuel) of alternative fuels in their manufacturing process. We also investigate environmental aspects like emission of NOx and handling of minor constituents in initial design.
How has your equipment impacting the profitability for cement manufacturers?
It is our endeavour to design our equipment on parameters that are industry standard with
state-of-the-art technology. We ensure that the power consumption and use of thermal energy should be at a minimum and the productivity of the pyro-system and the grinding systems should be at its best.
Apart from design of the system and abiding by the industry standards, we do a cost comparative analysis for coal versus alternative fuels for the manufacturer, we research on layouts to bring low civil and mechanical consumption weight-wise. There are multiple efforts taken by suppliers like us to optimise the system on all fronts as it is a competitive market. Our target is to help cement makers have a lesser capital investment to ease their financial repayments and plant operations are better in productivity and output.

What is the role of automation and technology in your workings for the pyroprocessing system?
The pandemic era nudged us to explore the use of lesser manpower and include automations in our systems. There were mainly two issues: dependency on manpower and misconception that automation means a higher cost. However, that is not true. If automation is included in systems, moving towards artificial intelligence, digitisation and Industry 4.0 Standards, experts have concluded that data can be retrieved on the go and optimise processes in real time which saves costs.
In recent years, automation and technology has become a big part of the industry with equipment and sensors being installed to get data that goes through the cloud to experts and is available globally for analysis and feedback in real time. This is helping the industry increase its productivity and reducing downtime by understanding and anticipating the attention required in a particular process at a particular time. This trend is expected to mature further with time throughout the cement industry.

How do you envision the future of the cement industry with your technology
and equipment?

At present, we are putting in a lot of effort on research and development in the area of reducing carbon footprint. The main equipment and system that we are currently installing in cement plants support alternative fuels, wastes as raw material, cogeneration and blended cements. The future holds the use of solar energy and wind energy as the source of substantial power for the cement plants. The industry must also look towards having the process of calcination without fossil fuels and with the use of electrical energy produced from green hydrogen, and use of technology like oxyfuel etc. A lot of research is on-going, which may take about 5 to 15 years to be implemented, but the alternative energy sources like green hydrogen and use of oxyfuel etc., shall have been made possible to bring down the carbon footprint to zero in concrete is a big ambition for the industry. Researchers are also working on the technology where carbon can be captured, stored, and re-used.
With our processes and systems also adapting to continuous research and evolving technology, together with the cement industry we shall build solutions that ensure sustainability and reduce carbon footprint. This is what I envision for the future.

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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