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Improving Operations using AI

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Tushar Kulkarni, Business Head – Minerals, Cement & Mining, Siemens Large Drivers India, discusses the role of Artificial Intelligence (AI) and premium efficiency standard products in making cement plant operations more sustainable.

By FY27, cement consumption in India is expected to reach 450.78 million tonnes, driven majorly by expanding demand from housing, commercial construction, national infrastructure projects and industrial construction*. To meet the growing demand, many cement companies are planning or are undertaking capacity expansions. Despite market growth, challenges such as fluctuating raw material prices, energy costs, transportation costs, skill shortages and regulatory complexities continue to persist for cement plants.
Cement plants constantly strive to improve productivity and cost efficiency through sustainable manufacturing and operations. It is imperative for them to maintain continuous and reliable machine operations for producing high-quality cement that comply with industry standards, while also adhering to the environmental emission norms and regulations.
Over the last two decades, various technologies for advanced process control (APC) have been developed for the cement industry, viz fuzzy logic, expert systems and rudimentary approaches of artificial intelligence – these being the most widespread form of technology applied to process control. However, with the changes in technology and increasing use of alternate fuel residual (AFR) and alternative raw materials, the current optimisation systems (APC) have limited performance over process control and require excessive retuning.
In this context, adoption of latest technologies viz digitalisation solutions and use of Artificial Intelligence (AI) will significantly help cement plants in their efforts towards innovation, efficiency and sustainability goals through improved process optimization and increased productivity. Our SICEMENT® Operations Digital solutions portfolio (AI based) is well-positioned to support the cement industry in this endeavor.
*Source: IBEF Aug 23

Transforming Data into Insights
Digitalisation involves the integration of digital technologies, automation and data exchange, which creates large volumes of diverse and continuous data. To leverage such a wealth of data, data science is the catalyst that transforms data into actionable intelligence. Data science involves leveraging advanced techniques and technologies to extract meaningful insights, patterns and knowledge from a large volume of data.
Data science being the backbone of digitalisation process, plays a pivotal role to harness the power of data for strategic decision making, efficiency gains and innovation, such as:
Data-driven decision making: Extracting valuable insights from large datasets for insights driven informed decision making.
Predictive analytics: Forecasting future trends and enhancing operational efficiency.
Process optimisation: Identifying areas of optimisation, which can lead to more efficient production and reduced energy consumption.
Smart maintenance: Predictive maintenance models can forecast potential failures, allowing for proactive interventions and minimising downtime.
Integration of AI in data science increases the capabilities of extracting valuable insights, making predictions and automating various tasks. It empowers data scientists to manage complex problems and extract meaningful information from diverse datasets.
To understand more on applying AI in cement production, let us look at an example of the rotary kiln in cement production. It is known that the different parameters of the kiln react differently to changes in the control parameters – some are sensitive, others do not react at all. In addition, some parameters have linear characteristics, while others behave nonlinearly. These significant differences require a differentiated approach to improve the control strategy. AI technology is designed to manage linear and nonlinear behaviour in a complex environment where numerous dependencies determine the engineering process.
The main difference between a data-centric solution and traditional expert systems is the development of a dedicated machine learning-based kiln model that provides more accurate insights into future kiln process trends than traditional approaches. The latter typically provides insights that are based on a generic mathematical toolbox and a simple aggregation of recent historical data. Advanced Process Control (APC) is widely used to improve kiln and mill control. However, in practice, the limitations of the current APC approach are apparent. For instance, a typical fuzzy logic is not able to cover all operating scenarios and is sensitive to operational changes. A typical Model Predictive Control (MPC) uses linear models in most cases and any change in equipment leads to a completely new setting of the model.
In contrast, by incorporating long-term data sets for AI training, the trained AI models can learn from the past and establish correlations between parameters and time and between actions and outcomes. This knowledge, accumulated in the models, forms the basis for better control performance.
The advantage of the AI-based solution over the previously described APC / MPC solutions is the development of a dedicated machine learning based kiln model that leads to more accurate insights into the future trends of the burning process than conventional approaches, which are usually based on a generic mathematical toolbox and a simple aggregation of recent historical data.

Driving Sustainability through Efficient Products
Industry has to adapt to products that have the highest possible efficiency standards. There is a huge drive by regulatory bodies as well as the manufacturers to scale up efficiencies of products used in process. Let us take an example of Low Voltage Motors. Currently the Minimum Efficiency Performance Standard (MEPS) in India is IE2 efficiency. Motors in IE3 and IE4 efficiency class also are available in the market. Due to the very lucrative ROI and also a concern on carbon emission, the penetration of motors with efficiency standard > IE2 is rapidly increasing and as per the estimation, > 30 per cent by kW of LV Motors produced are with efficiency class > IE2. With this encouraging voluntary shift to motors in efficiency class > IE2, industry is expecting the regulatory body to make IE3 as MEPS soon. Sectors such as the cement industries have already started moving towards IE4 in recent years.
The standards allow tolerance in efficiency declared by manufacturers for the purpose of accommodating manufacturing inconsistencies. However, many motors sold to users are by-design, utilising the negative side tolerances meant for manufacturing inconsistencies. Bearing this in mind, IEC has revised the criteria for CE Compliance w.e.f. 1st July 2022 which are stringent and so users are now assured of minimal utilisation of tolerance on the negative side. This will ensure IE3 and IE4 motors with enhanced operational efficiencies. Further, condition monitoring of motors with the help of cloud-based platforms can enhance the operational efficiencies.
Stringent standards, responded positively by manufacturers and aware users will pave a
path of higher level of sustainability in the cement industry.

ABOUT THE AUTHOR:
Tushar Kulkarni, Business Head – Minerals, Cement & Mining, Siemens Large Drivers India,
leads the business verticals of Minerals – Cement & Mining within Innomotics India Pvt Ltd. With over 20 years of experience, he has held positions across business development, customer relationship management and project management amongst others.

Case Study: Retrofitting of lower efficient DC Motor by compact and highly efficient SIMOTICS H-Compact AC motor for Kiln Main Drive at one of India’s largest cement manufacturers. An Innomotics engineer was invited by a customer with an existing motor based on Direct Current Technology and was installed approx. 30 years ago. Based on the customer’s request, the Innomotics engineer visited the site to replace this old motor with a high efficiency AC Motor for Kiln Main Drive application. The customer’s priority was to have a tailor-made solution without disturbing existing mechanical and foundation set-up. After a detailed study during the site visit, the solution was a H-Compact 1PQ4 motor with high efficiency (97.7 per cent @ 75 per cent load) which enabled a reduction in annual energy consumption by 682,000 kWh. This helped in CO2 emission reduction by 440 Tons per annum which approximately would require 17,600 full grown trees to offset. Rating: 1000kW/6P/690V/50Hz/60°C, Application: Kiln Main Drive; Frame: H-Compact, 1PQ4 500 frame.

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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