Sridhar S Sundaram, Vice President, Head of Global Product Line – Grinding and Gears, FLSmidth explains the role of technology in enhancing cement manufacturing processes to enable bigger and faster strides towards net zero targets.
Productivity growth through automation in the cement industry has grown from use of technology in the old physiological days to Artificial Intelligence (AI) powered softwares today. Cement plants operate in an automated way but there are still manual interventions that happen in an operating plant. These variations are also controlled now with AI powered softwares. This is helping customers have minimum manual intervention in the operation of the cement plants and increase production up to 5 per cent. However, when productivity increases, the energy consumption also decreases since the systems are automated to use only the optimum amount of energy. FLSmidth has an optimisation software called Process Expert Controller (PXC), which does the trick for cement manufactures and helps them enhance their production and productivity levels. Data is meant to enable better decision making. There is a control system, optimisation software and apart from these systems, there is also an application called Site Connect. Data from the control system is available at the head office in a monitor, tablet and mobile phone that enables better decision making and managerial interventions, which in due course of time better production and profits. This kind of digitalisation is at a nascent stage. The aim is to get as many plants connected as possible. Data from this software goes to the cloud, then back to the stakeholders i.e., FLSmidth headquarters, customer headquarters, and to all those who need the data to make better decisions. Work is also in progress on the backend algorithms for data collection. Based on these algorithms, there can be alarms, flags etc., enabling predictive interventions of plant maintenance.
No Alternative to Safety There are quite a few experts who have spoken about how to reduce CO2. OxyRich fuel and Green Hydrogen are the next generation topics as we exhaust the existing alternative fuel options. When we go from the present 15 per cent use of alternative fuels to 50 to 60 per cent use of alternative fuels, that itself will take care of the sustainability aspect of the cement industry. Beyond this, when CO2 capture is thought of then OxyRich and Green Hydrogen come into play. This technology is evolving and will eventually benefit all industries that have a high emission rate. The industry must use alternative fuels. Agriculture wastes can contribute up to 10 per cent of alternative fuels. Now, the industry is targeting 30 to 50 per cent use of alternative fuels, which comes out as waste derived fuels. Feedback that has come from the cement plants states that the odour and other problems associated with these fuels could be hazardous to the health. While it is encouraged for cement plants to use alternative fuels, the challenge is to safeguard every employee at the plant and surroundings with the other harmful effects of the waste derived fuels. The approach towards the use of waste derived fuels should be in a manner that all aspects of its use and safety should be taken care of before its implementation.
Technology at its best The industry has an intention to reduce its carbon footprint and make cement production friendly for the environment. However, without governance and regulation, the implementation will be a challenge and there will be no standard practice. If you go back 30 years when stacks in cement plants had a lot of dust, it was the government that made the norms and kept making them stricter, which has led to a highly reduced dust emission from cement plants. Similarly, usage of technology for reduction of carbon footprint will require intervention and regulation for cement players. In Europe, there is a penalty known as carbon tax while the talk of Indian industry is Sustainability Incentive. Either way, there needs to be an intervention to bring down emission levels in any industry.
Future Collaborations FLSmidth is always with its customers. And the company has a mission zero roadmap, too. The strategy and aim are to design a plant with zero emission by 2030. There are steps involved to this. The first step is to modernise old plants, which will have a huge impact on reducing carbon emission and energy consumption. Second step would be to collaborate with new technologies and make them available in the market in an accelerated manner. For this, a deal has been signed with Dalmia Cement that both companies will collaborate in pushing the sustainability agenda at a much larger scale than before. With Dalmia Cement as a partner, FLSmidth can immediately test its new technologies. Once that is successful, it can be taken to the market faster than before. The company is looking at partnerships with leading players to help bring better technology to the industry. Their role, too, is key in bringing a change and FLSmidth is looking forward to collaborating with all players of the Indian cement industry.
ABOUT THE AUTHOR:
Sridhar S Sundaram, VP & Head of Global Product Lines – Grinding and Gears, holds managerial expertise with varied and international experience in Technical, Sales and O&M functions.
Cement stocks surged over 5% on Monday, driven by Jefferies’ positive outlook on demand recovery, supported by increased government capital expenditure and favourable price trends.
JK Cement led the rally with a 5.3% jump, while UltraTech Cement rose 3.82%, making it the top performer on the Nifty 50. Dalmia Bharat and Grasim Industries gained over 3% each, with Shree Cement and Ambuja Cement adding 2.77% and 1.32%, respectively.
“Cement stocks have been consolidating without significant upward movement for over a year,” noted Vikas Jain, head of research at Reliance Securities. “The Jefferies report with positive price feedback prompted a revaluation of these stocks today.”
According to Jefferies, cement prices were stable in November, with earlier declines bottoming out. The industry is now targeting price hikes of Rs 10-15 per bag in December.
The brokerage highlighted moderate demand growth in October and November, with recovery expected to strengthen in the fourth quarter, supported by a revival in government infrastructure spending.
Analysts are optimistic about a stronger recovery in the latter half of FY25, driven by anticipated increases in government investments in infrastructure projects.
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The Ministry of Steel has proposed a 25% safeguard duty on certain steel imports to address concerns raised by domestic producers. The proposal emerged during a meeting between Union Steel Minister H.D. Kumaraswamy and Commerce and Industry Minister Piyush Goyal in New Delhi, attended by senior officials and executives from leading steel companies like SAIL, Tata Steel, JSW Steel, and AMNS India.
Following the meeting, Goyal highlighted on X the importance of steel and metallurgical coke industries in India’s development, emphasising discussions on boosting production, improving quality, and enhancing global competitiveness. Kumaraswamy echoed the sentiment, pledging collaboration between ministries to create a business-friendly environment for domestic steelmakers.
The safeguard duty proposal aims to counter the impact of rising low-cost steel imports, particularly from free trade agreement (FTA) nations. Steel Secretary Sandeep Poundrik noted that 62% of steel imports currently enter at zero duty under FTAs, with imports rising to 5.51 million tonnes (MT) during April-September 2024-25, compared to 3.66 MT in the same period last year. Imports from China surged significantly, reaching 1.85 MT, up from 1.02 MT a year ago.
Industry experts, including think tank GTRI, have raised concerns about FTAs, highlighting cases where foreign producers partner with Indian firms to re-import steel at concessional rates. GTRI founder Ajay Srivastava also pointed to challenges like port delays and regulatory hurdles, which strain over 10,000 steel user units in India.
The government’s proposal reflects its commitment to supporting the domestic steel industry while addressing trade imbalances and promoting a self-reliant manufacturing sector.
The Indian government has introduced anti-dumping duties on anodized aluminium frames for solar panels and modules imported from China, a move hailed by the Aluminium Association of India (AAI) as a significant step toward fostering a self-reliant aluminium sector.
The duties, effective for five years, aim to counter the influx of low-cost imports that have hindered domestic manufacturing. According to the Ministry of Finance, Chinese dumping has limited India’s ability to develop local production capabilities.
Ahead of Budget 2025, the aluminium industry has urged the government to introduce stronger trade protections. Key demands include raising import duties on primary and downstream aluminium products from 7.5% to 10% and imposing a uniform 7.5% duty on aluminium scrap to curb the influx of low-quality imports.
India’s heavy reliance on aluminium imports, which now account for 54% of the country’s demand, has resulted in an annual foreign exchange outflow of Rupees 562.91 billion. Scrap imports, doubling over the last decade, have surged to 1,825 KT in FY25, primarily sourced from China, the Middle East, the US, and the UK.
The AAI noted that while advanced economies like the US and China impose strict tariffs and restrictions to protect their aluminium industries, India has become the largest importer of aluminium scrap globally. This trend undermines local producers, who are urging robust measures to enhance the domestic aluminium ecosystem.
With India’s aluminium demand projected to reach 10 million tonnes by 2030, industry leaders emphasize the need for stronger policies to support local production and drive investments in capacity expansion. The anti-dumping duties on solar panel components, they say, are a vital first step in building a sustainable and competitive aluminium sector.