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Concrete

When Volumes Matter

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The fourth quarter of the last financial year was a washout for the cement sector as prices dipped across the country. From a drop of Rs.5 per bag in central India to a drastic cut of Rs.10 per bag in Gujarat, the flat trend of the last few months can be attributed to unseasonal rains and low labour availability affecting construction activities. Volume push, fall in demand and increased discount offerings are other factors that have affected attempts of price hikes. But fast recovery is expected in the June quarter as demand picks up amid seasonal recovery.

Another reason for the cement sector to recover on the price front is the upcoming elections. With elections scheduled in 2024, the government is accelerating all of its housing and infrastructure initiatives, thereby spurring the demand for cement. Cement companies are definitely bullish about growth and the Indian cement industry is likely to witness a fresh capacity increase of 145 MT-155 MT amounting to a capex of Rs.1.2 lakh crore by FY27. A report by CRISIL confirms that demand for cement will remain buoyed at a CAGR of 6-7 per cent over the forecast period. The addition of 145 MT-155 MT to the already existing capacity of 570 MT will further consolidate India’s position as the second largest cement producer in the world.

Cement is an important component of revenue for the state governments and this point has been underscored by the recent impasse in Himachal Pradesh where the Ambuja and ACC plants had been shut down for over two months over the disagreement over freight charged by the 6,500 truckers. The state government was losing Rs.60 cr to Rs.80 cr per day in electricity, VAT and GST. A GST cut from 28 per cent to 18 per cent would reduce GST revenues by Rs.13,000 cr annually. However, if this reduction in price is passed on to the consumers, a higher demand could reduce the reduction in revenue. Finally, the impasse was resolved with the intervention of Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu. Himachal Pradesh truckers, agreed to a lower freight rate after the company assured them of additional volumes from neighbouring states.

Another trend that is emerging with regards to adding fresh capacity is the logistics-oriented approach. Many cement companies are preferring to install their new grinding units near the distribution centres for freight cost rationalisation. This will also boost the attempts to decarbonise cement. Further, initiatives such as the launch of LNG trucks by Dalmia Cement (Bharat) for transportation of raw materials and bagged cement is helping build a green supply chain for cement. Decarbonisation is taking place in every step of the supply chain, and India is definitely a trailblazer in green initiatives in the cement sector.

Concrete

Smarter Motion for Cement Growth

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Sanjeev Arora, President – Motion Business & IEC LV Motors Division, ABB India, discusses efficient drive powertrain technology for cement manufacturing, which is powering India’s next phase of sustainable growth.

India’s growth story is being written at an unprecedented scale. From highways and airports to smart cities, metros, renewable energy parks and industrial corridors, infrastructure development is accelerating rapidly. At the heart of this transformation lies one of the country’s most foundational industries – cement. India is already the world’s second largest cement producer, and demand is expected to rise significantly over the next decade as investments in urbanisation, housing, manufacturing and public infrastructure continue to expand. However, the cement industry also finds itself at a defining crossroads. It must scale production while simultaneously reducing emissions, improving efficiency, strengthening reliability and ensuring operational excellence.
This is where technology will play a decisive role. For decades, motors and drives have quietly powered every stage of cement manufacturing, from crushers, kilns and conveyors to mills, fans and packing units. They have become strategic enablers of sustainability, digitalisation, safety and profitability. The future of cement manufacturing will be defined by plants that are not only more productive, but also more intelligent, energy efficient and resilient.
In many ways, the journey toward a leaner and cleaner cement industry begins with how motion systems are designed, monitored and optimised.

Decarbonising cement
A substantial share of electricity consumption within a cement plant comes from motor driven systems such as fans, pumps, compressors, conveyors and grinding mills. Globally, electric motors account for nearly 45 per cent of the world’s electricity consumption in industrial applications. This makes energy efficient motor systems one of the fastest and most impactful levers available for decarbonisation.
In India, where industrial energy demand continues to grow alongside economic expansion, improving motor efficiency can create meaningful environmental and business outcomes. Replacing IE2 motors with high efficiency IE4 and IE5 motors, combined with variable speed drives (VSDs), can significantly reduce energy consumption while improving process control. ABB’s latest generation of IE5 ultra-premium efficiency motors and synchronous reluctance motor technologies are helping industries achieve substantially lower energy losses compared to conventional systems.
Compared to the commonly deployed IE2 motors, IE5 motors can achieve nearly 50 per cent lower energy losses across several operating ranges, making them particularly relevant for energy intensive sectors such as cement where motors operate continuously at scale. In large scale industrial applications, it is estimated that upgrading to IE5 motor systems can deliver energy savings significant enough to enable payback periods of nearly one to two years, depending on operating hours and load conditions.
The impact goes beyond energy bills. Lower energy consumption directly contributes to reduced carbon emissions and supports India’s broader sustainability ambitions, including the country’s commitment toward net zero pathways and industrial decarbonisation. At ABB in India, our installed base of motors and drives has already contributed to significant annual energy savings across industries. According to our estimates, ABB motors and drives installed over last 12 years, save nearly 20 TWh of electricity annually in India, equivalent to roughly half of Delhi’s annual electricity consumption.

Rise of the digital plant
As cement plants become larger and more automated, operational continuity has become critical. Unplanned downtime in a cement facility can lead to significant production losses, supply chain disruptions and maintenance costs. This is driving a major shift toward digitally connected operations.
The next generation of motors and drives is embedded with intelligent monitoring capabilities that enable real time visibility into equipment performance, energy consumption and operating conditions. Combined with Industrial IoT, advanced analytics and predictive maintenance solutions, plant operators can now move from reactive maintenance to proactive asset management. In practical terms, this means maintenance teams can detect anomalies such as overheating, vibration imbalances or bearing degradation long before equipment failure occurs.
Predictive maintenance technologies are especially important in cement manufacturing because of the extreme conditions in which equipment operates. Dust, vibration, fluctuating loads and high ambient temperatures place enormous stress on rotating equipment. Digital condition monitoring systems can continuously assess equipment health, identify performance deviations and help optimise maintenance schedules, reducing downtime, extending equipment life and improving operational reliability.
As cement manufacturers navigate fluctuating energy prices, changing market demand and sustainability targets, intelligent motor systems provide the flexibility needed to optimise production dynamically.

Toward total cost of ownership
One of the most significant shifts taking place in industrial decision-making today is moving away from evaluating equipment based solely on upfront capital cost toward understanding total cost of ownership (TCO). In a typical motor system, the purchase price often represents only a small fraction of the total lifecycle cost however energy consumption, maintenance requirements, downtime and operating efficiency account for the vast majority of long-term operational expenses. For cement manufacturers operating in highly competitive markets, this distinction is critical.
A high efficiency motor paired with an appropriately configured variable speed drive may require a higher initial investment, but the long-term benefits are substantial. Reduced electricity consumption, lower maintenance needs, longer service intervals and improved process stability can deliver faster payback and stronger profitability over time.
In addition to reducing energy use, optimised drive powertrain also minimises mechanical stress on equipment. This improves reliability and reduces wear on bearings, couplings and connected systems.
As sustainability reporting and energy benchmarking become increasingly important
across industries, forward looking cement manufacturers are recognising that investments in efficient drive powertrain create both operational and environmental value.

Engineering reliability
Cement applications demand robust insulation systems, superior thermal management, advanced sealing technologies and durable mechanical construction. ABB’s heavy-duty motors and drives are engineered specifically to withstand these extreme operating environments while maintaining efficiency and performance.
Equally important is the ability to maintain serviceability over long operating lifecycles.
In sectors such as cement, where plants are expected to operate continuously for decades, lifecycle support becomes a strategic consideration. Modernisation, retrofitting and service solutions are therefore playing an increasingly important role in helping operators improve efficiency with minimal upgradation and without requiring complete infrastructure replacement.
ABB’s Motion Services portfolio supports customers through predictive maintenance,
performance optimisation, digital diagnostics
and lifecycle management solutions designed to maximise uptime and equipment longevity. Reliability in cement manufacturing is no longer simply about avoiding breakdowns. It is about ensuring continuity, protecting productivity, enabling operational confidence and excellence.

Safety-productivity connection
Industrial safety and operational productivity are deeply interconnected. As cement plants become more automated and digitally integrated, modern motor and drive technologies are also contributing to safer work environments. Remote monitoring capabilities reduce the need for personnel to physically inspect equipment in hazardous or hard to access areas. Intelligent systems can provide alerts, diagnostics and performance insights remotely, improving both safety and maintenance response times.
Advanced drive technologies also support safer operations through smoother start-and-stop, controlled acceleration and reduced mechanical shocks. These capabilities not only protect equipment but also reduce operational risks for plant personnel. Additionally, digitally enabled systems improve visibility into operational conditions, helping teams respond more effectively to potential safety issues before they escalate. In many ways, the modern cement plant is evolving into a more connected and collaborative ecosystem where automation, digital intelligence and motion technologies work together to improve both human safety and operational excellence.

India’s infrastructure ambitions
The cement industry is entering a transformative phase. As India advances toward becoming a global manufacturing and infrastructure powerhouse, the sector will need to balance growth, competitiveness and sustainability simultaneously. It is an opportunity for us to help industries outrun leaner and cleaner. By combining energy efficiency, digital intelligence and engineering innovation, the cement sector can accelerate its transition toward a more sustainable and resilient future while continuing to power India’s growth ambitions. And that journey has already begun.

About the author
Sanjeev Arora, President – Motion Business & IEC LV Motors Division, ABB India comes with nearly three decades of experience in industrial motion technologies, energy-efficient motor systems, and driving sustainable industrial transformation across India and the Middle East & Africa.

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Concrete

Synthetic lubricants have become a strategic choice

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Dr SB Hegde, Professor, Jain College of Engineering, India, and Visiting Professor, Pennsylvania State University, USA, makes a compelling case that lubrication is the most undervalued lever for energy efficiency and profitability.

In a sector where one hour of unplanned kiln stoppage can cost up to `22 lakhs and bearing failures in vertical roller mills run into crores, the conversation around plant performance rarely begins with lubrication. Industry expert Dr SB Hegde brings an academic rigour to a subject that most plant managers treat as routine maintenance and not as a strategic investment. He outlines how synthetic lubricants, predictive maintenance and OEM collaboration can together deliver returns.

How critical is lubrication strategy in ensuring reliability and productivity in modern cement plants?
Lubrication strategy is the backbone of reliability and productivity in modern cement plants. While lubricants account for only two to three per cent of total operating costs, poor lubrication is responsible for up to 70 per cent of maintenance problems, equipment failures and unplanned downtime.
Leading global cement plants achieve 85 per cent + Overall Equipment Effectiveness (OEE) largely due to disciplined lubrication management. High performance synthetic lubricants deliver proven 2 to 6.5 per cent energy savings (typically three to four per cent) in critical equipment such as kiln rollers, vertical roller mills (VRM), ball mill gearboxes and crushers. In India, this translates to 8-15 crore annual savings per 1 MTPA plant, or80-150 per tonnes of cement, with payback in 6-12 months.
With 160-170 million tonnes of new capacity expected by FY28 and many plants still operating at 65 per cent to 68 per cent OEE, a strong lubrication strategy has become a strategic necessity. It is not a routine maintenance activity, it is a high return investment that directly improves reliability, productivity
and sustainability.

What is the biggest lubrication related challenges faced by the Indian cement industry today?
The Indian cement industry operates under some of the harshest lubrication conditions in the
world, extreme dust, high temperatures (100-140°C), heavy shock loads, and continuous 24/7 operation. The most serious challenge is severe dust contamination, responsible for nearly 36 per cent of bearing failures. A major bearing failure in a VRM or kiln can cost 2-3.5 crore. Other key issues include incorrect lubricant selection, inconsistent greasing practices and cost perception of specialty lubricants. One hour of unplanned kiln stoppage due to lubrication failure can cost8-22 lakhs.
These challenges push maintenance costs to 15 to 25 per cent of total production cost and can cause annual losses of `8-15 crore or more for a one MTPA plant. Addressing them through proper lubricant selection, contamination control and condition monitoring is now critical.

How can advanced lubricants contribute to energy efficiency and sustainability in cement manufacturing?
Advanced synthetic and high-performance lubricants are among the most practical and effective tools for improving energy efficiency and sustainability in cement manufacturing. They reduce friction and operating temperatures, delivering 2-6.5 per cent energy savings (typically three to four per cent).
In India, this results in 8-15 crore annual savings per 1 MTPA plant (80-150 per ton), with payback in 6-12 months. A three to four per cent energy reduction also lowers CO2 emissions by 2-4 kg per tonne of cement. For a one MTPA plant, this equals
2,000-4,000 tonnes of CO2 reduction annually,
generating carbon credit revenue of `0.16-1 crore under India’s CCTS.
Additionally, they extend drain intervals 3-5 times and reduce lubricant consumption by 15 per cent to 30 per cent. With new capacity additions and stricter emission norms, advanced lubricants offer an excellent combination of profitability and environmental performance.

What role does predictive maintenance and oil condition monitoring play in reducing plant downtime?
Predictive maintenance (PdM) and oil condition monitoring are game changers for reducing unplanned downtime. They shift maintenance from reactive to proactive by detecting issues early through oil analysis, vibration and temperature data.
These technologies can reduce unplanned downtime by up to 50 per cent and improve uptime by 10 to 20 per cent. In one documented case, a cement plant achieved 57× ROI within six months, generating savings of over 8.4 crore and preventing a major failure that would have caused more than 160 hours of downtime. For Indian plants, where one hour of kiln stoppage costs8-22 lakhs, PdM typically delivers 25 per cent lower maintenance costs, 20 to 40 per cent longer equipment life, and payback in three-six months. It has become essential for achieving high reliability in the rapidly expanding cement industry.

How are synthetic and specialty lubricants transforming the performance of heavy cement equipment?
Synthetic and specialty lubricants are significantly transforming the performance of heavy cement
equipment by providing superior protection under extreme conditions of high temperature, shock loads, dust and continuous operation.
They deliver three-seven times longer component life, 2 to 6.5 per cent energy savings, and 15-25°C lower operating temperatures. Modern solutions such as PAO based synthetic gear oils (ISO VG 320-460), high-temperature synthetic greases, and advanced open gear compounds also provide three-five times longer drain intervals and 15 to 30 per cent lower lubricant consumption. In the Indian context, these improvements translate into `8-15 crore annual savings per one MTPA plant. As the industry adds large new capacity, synthetic and specialty lubricants have become a strategic choice for higher reliability and lower total cost of ownership.

How important is lubrication management in extending the lifecycle of critical plant machinery?
Lubrication management is extremely important and one of the most effective ways to extend the lifecycle of critical cement plant machinery. Properly implemented, it can increase equipment life by 20 to 50 per cent or more.
Since nearly 70 per cent of failures in bearings, gearboxes and rollers are lubrication related, disciplined practices such as right lubricant, correct quantity, contamination control and monitoring, can help deliver substantial benefits. For a typical one
MTPA plant, good lubrication management can save 6-12 crore annually through reduced replacements and downtime. In my view, lubrication management is not a routine maintenance task but a strategic practice that directly determines long term asset performance, reliability and profitability. How can collaboration between lubricant companies, OEMs and cement manufacturers drive operational excellence? Collaboration between lubricant companies, OEMs and cement manufacturers is a powerful driver of operational excellence. It combines equipment design knowledge, lubricant technology and practical plant experience to deliver superior results. Such partnerships help develop tailor-made solutions, integrate automatic lubrication systems with predictive monitoring, and accelerate innovation in energy efficient products. One such collaboration delivered 57x ROI in six months with savings exceeding8.4 crore.
With 160-170 million tonnes of new capacity expected by FY28, these collaborations are essential for achieving world class reliability, lower operating costs, and stronger sustainability performance. Cement manufacturers who actively engage in such partnerships will gain a clear competitive advantage.

  • Kanika Mathur

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Concrete

Shree Cement Targets Above Industry Volume Growth In FY27

Chairman says firm will favour organic expansion and higher dividends

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Shree Cement expects to outpace the industry in the financial year 2026-27 as it pursues organic expansion and pricing discipline following a recent investor conference. The chairman said the company has completed a pricing realignment and recovered volumes lost during that exercise. Management signalled a clear preference for internal investments rather than acquisitions to support growth.

The company reported that capacity additions and demand growth across core markets are expected to underpin stronger volume performance, with a target of growing volumes at around 1.1 times the industry growth rate. Cash levels are likely to decline as capital expenditure progresses and shareholder distributions increase, the chairman indicated. The board has prioritised higher dividends over a buyback as a means of reducing excess cash.

Shree Cement described a market shift towards value and affordability rather than a race to the lowest price, which links demand expansion more closely with pricing. Historically, prices have risen at around three per cent annually over long periods, the company noted, and while prices may increase faster this year because of cost pressures from geopolitical tensions, a material improvement in industry profitability is not anticipated. In North India, the company expects additional capacity to be absorbed as demand grows, estimating a requirement of roughly 10 million (mn) tonne (t) of incremental demand annually.

The next phase of expansion will focus on the north, west, east and northeast regions, with existing projects and planned capacities viewed as sufficient to meet future demand without pursuing acquisitions. Management said it has already regained lost volumes while sustaining higher prices and will continue to monitor regional opportunities, including a possible investment in West Bengal pending clarity on industrial policy. The company, which has a current market capitalisation of Rs 852,948.9 mn, has seen its shares lose more than 20 per cent over the past year.

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