Concrete

A cement plant is a high energy intensive unit

Published

3 years ago

October 19, 2023

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Pankaj Kejriwal, Managing Director, Star Cement, delves into the importance of optimising refractories to make cement manufacturing more cost efficient and eco-friendly.

Tell us about the role of energy in the manufacturing of cement? What is the volume of energy consumption?
A cement plant is a high energy intensive unit. For manufacturing of cement, both thermal energy and electrical energy is required. In the year 2022-23, thermal energy consumption was 27.50 lakh mKcal (82 per cent of total energy) and electrical energy consumption was 5.97 lakh mKcal (18 per cent of total energy). In the cement industry, about 60 kWh of electrical energy is consumed to produce one ton of cement.
The power consumption pattern is as follows:

What are the various modes of energy sources used by your organisation for its manufacturing needs?
The electrical power is taken from various sources such as IEX through open access from state electricity grid and our own captive coal/biomass fuel based thermal power plant, bamboo chips and AFR like RDF is also being used in our plants. We have recently commissioned a 12.3 MW waste heat recovery system (WHRS) plant, and another 12.5 MW WHRS plant is in the pipeline. We are also installing about 15 MW of solar power plant.
The thermal energy is produced by coal in kiln. Linkage coal is utilised in kiln along with various local or purchased coal.

Which of the said energy sources yields maximum productivity for the plant and which yields the least?
Coal, pet coke and electricity are the dominant energy sources used in cement plants, although plants will burn a variety of other fuels, including tires, biomass, RDF and other waste fuels.
As per the mentioned energy sources, WHRS with CPP is our first priority whereas grid (IEX) power is the least priority energy source. As an AFR, we are using bamboo chips, bamboo briquettes and waste plastic bags in our plant. The green energy sources have large impact on the productivity and cost of cement manufacturing. It reduces the carbon emission. As a cost impact, it reduces power cost by 12 per cent in CPP and 1.5 per cent in process plant approximately.

What are the alternative energy sources that are being adapted by the cement industry and your organisation?
The main alternative fuels used in cement industry are residue oil and solvents, contaminated garbage, process waste from food industry / pharma industry, used tires and rubber waste, plastic waste, sewage sludge and waste animal meal. Star Cement uses alternative energy sources such as biomass like municipal waste, bamboo chips and are also installing a 15 MW solar energy plant.

What is the impact of greener energy sources on the productivity and cost of cement manufacturing?
Alternative fuels utilisation in cement industry reduces the production cost and also reduces the coal requirement, coal handling/grinding etc.

How does automation and technology help in optimising the use of energy in cement plants?
By leveraging the power of automation and AI-driven analytics, the cement industry can reduce maintenance costs, enhance equipment reliability, and achieve higher energy efficiency, ultimately leading to improved productivity and profitability.
We are also focusing on automation and technology up gradation to optimise the use of energy in cement plants. To achieve this, various steps has been taken towards energy conservation and technology absorption, few are as mentioned below:
• Installed VFD in Primary Air blower by which control the rpm of blower as per process requirement and saved the energy 86,000 kWh per year.
• Optimisation of RABH purging operation. Total power saving is 2,80,000 kwh per year.
• VFD installed in VRM bag filter of 55 Kw motor, by which saving achieved 7920 kWh per year.
• Increased clinker production and optimised
the running of the different circuits, by which specific power consumption is reduced by 1.08 kwh/MT clinker.
• Optimised the coal firing system and higher clinker production reduced the specific heat consumption by 7 Kcal/kg clinker.
• Installed tertiary crusher in raw mill circuit, thereby increasing ball mill output and reducing power consumption b 2 KW / tonne of raw meal.

What are the major challenges your organisation faces in managing the energy needs of cement manufacturers?
The major challenges for our organisation in managing the energy needs for the cement manufacturing process is the less availability of alternative fuels in plant locality. The segregation of waste is yet to improve and also the Polluter Pay Principle is not being implemented effectively,
thereby increasing the cost of alternative fuel at our factory gate.
Cement industry have a long way to go as far as alternate fuel and raw material usage is concerned.
In spite of several policy, regulatory or technological barriers that industry is facing, now is the opportune time for the Indian cement industry to focus all its efforts in furthering AFR utilisation in its processes.

Tell us about the compliance and standards followed by you to maintain energy use and efficiency in the organisation?
Our organisation is a designated consumer under PAT cycle 2 and 3. We are following all the compliance and standards as per BEE guidelines to achieve our Specific Energy Consumption targets as directed by Bureau of Energy Efficiency, Ministry of Power, Government of India.
As per BEE guidelines Mandatory Energy Audit, monitoring and verification audits are conducted to ensure optimum use of energy after every three years. We have also conducted detailed energy audit by CII, Hyderabad, in May 2023 as an additional exercise.

What kind of innovations in the area of energy consumption do you wish to see in the cement industry?
Use of solar power, hydrogen fuel and maximising the use of AFR are the areas of innovations, we wish to see in the cement industry in near future. Also increasing the efficiency of WHR boilers will help in better recovering the waste heat.
Along with cheaper and greener fuel sources, we would like technology to further reduce the
energy consumption in the grinding process.
Usage of alternative materials, which reduce the overall clinker component in blended cement like LC3 will also go a long way in reducing the
energy requirements.

-Kanika Mathur

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Concrete

Cement Prices to Stay Flat in Q2 FY27 as Costs Squeeze Margins

HDFC Securities warns monsoon slowdown and higher fuel costs

Published

9 hours ago

July 17, 2026

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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.

Concrete

Dalmia Bharat Begins Rs 31 Bn Green Cement Unit in Kadapa

New Andhra Pradesh plant to add 9.6 MTPA cement capacity by FY28

Published

1 day ago

July 16, 2026

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Dalmia Bharat Limited recently laid the foundation stone for its second manufacturing unit at Kadapa in Andhra Pradesh. The company will invest Rs 31 billion in developing the next-generation integrated cement manufacturing facility.

The foundation-laying ceremony was attended by Nara Lokesh, Andhra Pradesh Minister for Information Technology, Electronics and Communications, Real-Time Governance and Human Resources Development, along with Puneet Dalmia, Managing Director and Chief Executive Officer, Dalmia Bharat, senior government officials and company representatives.

Scheduled to be commissioned by the third quarter of FY28, the Kadapa unit will become Dalmia Bharat’s largest integrated manufacturing facility in southern India. It will have a clinker production capacity of 6.1 million tonnes per annum and a cement manufacturing capacity of 9.6 million tonnes per annum.

The facility is designed to produce what the company describes as one of the world’s greenest cements. It is also expected to generate approximately 1,000 direct and indirect employment opportunities while supporting local MSMEs, transporters, contractors and service providers.

Lokesh said the investment reflected Dalmia Bharat’s confidence in Andhra Pradesh and aligned with the state’s objective of promoting sustainable industrialisation, job creation and technology-led economic growth.

Puneet Dalmia said the project represented the company’s long-term vision of developing low-carbon cement manufacturing assets. He added that the facility would establish new benchmarks in operational efficiency and sustainability while supporting India’s infrastructure and environmental goals.

Dalmia Bharat will also expand its regional community development programmes in education, healthcare, skill development and welfare through its DIKSHa and Gram Parivartan initiatives.

The company currently has an installed cement manufacturing capacity of 54.7 million tonnes across 19 manufacturing units in 12 states. It is also the first cement company globally to commit to the RE100, EP100 and EV100 initiatives.

Concrete

Nuvoco Inaugurates Limla Cement Plant in Surat

Acquisition boosts Western India cement capacity

Published

2 days ago

July 15, 2026

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Nuvoco Vistas Corporation Limited inaugurated the Limla Cement Plant in Surat, Gujarat, marking a key milestone in its acquisition and revival of Vadraj Cement Limited.

The company completed the acquisition of Vadraj, which had been undergoing a corporate insolvency resolution process, by discharging a consideration of Rs 18 billion (bn) in June 2025. Vadraj’s asset base includes a clinker unit at Kutch and a grinding unit at Limla, along with high quality captive limestone reserves and a captive jetty at Kutch that enhance logistics efficiency.

Since taking over the assets, Nuvoco has undertaken revival, refurbishment and expansion across both sites, culminating in the opening of the Limla facility. The grinding unit at Limla achieved project completion ahead of schedule with the commissioning of two million tonnes per annum (mn t per annum) grinding capacity, further expanding the company’s scale and market reach.

Upon full operationalisation of the Vadraj assets, nearly 40 per cent of Nuvoco’s total cement capacity will be accounted for by plants in the North and West regions, supporting improved access to high growth markets. The plant is expected to support a phased volume ramp up in Gujarat and to serve adjoining markets in western Maharashtra while releasing northern capacities for other markets.

It will produce a complete portfolio of cement products including Ordinary Portland Cement, Portland Slag Cement, Portland Pozzolana Cement and Portland Composite Cement, and will offer the Duraguard range including the premium Duraguard Microfibre. The transaction is set to create synergies with Nuvoco’s existing manufacturing facilities at Nimbol and Chittorgarh, strengthening logistics optimisation and market access across key regions.

Nuvoco reported total income of Rs 113.62 billion (bn) in FY 2025-26 and stated it is on track to consolidate total cement capacity to 35 million tonnes per annum (mn t per annum) by FY2028. The company operates across cement, ready-mix concrete and modern building materials segments and highlighted a pan-India ready-mix presence alongside contributions to major infrastructure projects. Corporate communications contact details were provided by the company.