Dr S B Hegde, Professor, Department of Civil Engineering, Jain College of Engineering and Technology, Hubli, and Visiting Professor, Pennsylvania State University, USA, discusses the hydrogen and automation revolutions in the cement industry in the concluding part of this two-part series.
The global cement industry is undergoing a transformative phase by embracing the hydrogen revolution as a beacon of sustainable energy. This paradigm shift involves the incorporation of green hydrogen as a clean energy source, not only reducing environmental impact but also establishing new benchmarks for responsible energy use in cement production.
Usage of hydrogen in cement plants. A. Global status Globally, several leading cement manufacturers have initiated pilot projects and full-scale implementations of hydrogen-based technologies in cement production. As of the latest data, the cement industry accounts for approximately 7 per cent of global carbon dioxide emissions, making the adoption of green hydrogen crucial for achieving emission reduction targets. In Germany, for instance, a prominent cement plant has invested over €40 million (approximately US$ 45 million) in a green hydrogen project. This initiative is expected to replace a significant portion of traditional fossil fuels, leading to a substantial reduction in carbon emissions. B. Indian perspective In the Indian context, the hydrogen revolution is gaining momentum as the cement industry strives to align with the nation’s commitment to sustainable development. While still in the early stages, pioneering cement plants in India are actively exploring the integration of green hydrogen into their production processes. C. Current initiatives and investments in India An exemplary case is a major cement manufacturer in India investing Rs 120 crores (approximately US$ 16 million) in a green hydrogen pilot project. This initiative aims to assess the feasibility of using green hydrogen as a primary fuel in cement kilns, with the potential to reduce carbon emissions by up to 30 per cent. D. Challenges and opportunities Despite the promising trajectory, challenges such as the cost of green hydrogen production and infrastructure development need to be addressed for widespread adoption. The Indian government’s focus on promoting green hydrogen and the establishment of a National Hydrogen Mission indicate a conducive environment for overcoming these challenges. E. Environmental impact The incorporation of green hydrogen into cement production offers a significant reduction in greenhouse gas emissions. As hydrogen combusts without producing carbon dioxide, it presents a cleaner alternative to traditional fossil fuels, aligning with global efforts to mitigate climate change. F. Setting new standards By embracing the hydrogen revolution, the cement industry is not only reducing its environmental impact but also setting new standards for responsible energy use. This shift positions cement manufacturers as leaders in sustainable practices and reinforces their commitment to a low-carbon future. G. Future trajectory The hydrogen revolution in cement production is poised to become a cornerstone of sustainable manufacturing globally and in India. Continued investments, collaborative research, and government support are expected to drive the widespread adoption of green hydrogen, ushering in a new era of responsible and environmentally conscious cement production. Automation Revolution As the cement industry propels into the future, a seismic shift is underway, steering towards a highly automated and robotic workforce. This commitment to automation transcends geographical boundaries, reshaping the landscape of cement production with a focus on precision, safety, and unparalleled efficiency. Let’s delve into the global and Indian scenarios, incorporating some figures to the transformative impact of robotics in the cement industry.
Global landscape A. Adoption of automation Globally, leading cement manufacturers are at the vanguard of adopting automation and robotic technologies. According to industry reports, over 50 per cent of major cement plants worldwide have integrated robotic systems into their production processes, marking a substantial increase in the last five years. B. Safety and precision The paramount focus is on ensuring the safety of human workers and achieving precision in tasks that are critical to cement production. Studies show a 70 per cent reduction in workplace accidents in cement plants that have implemented robotics, demonstrating a tangible improvement in safety conditions. C. Efficiency gains Automated and robotic systems significantly enhance the efficiency of cement production. Reports indicate a 20 per cent increase in production efficiency and a 15 per cent reduction in downtime in cement plants where robotic technologies are fully integrated. These gains contribute to cost-effectiveness and operational excellence.
D. Examples of implementation In Europe, a major cement plant has deployed autonomous robotic vehicles for transporting raw materials within the facility. This not only reduces manual labour but also streamlines the logistics process, contributing to a 25 per cent improvement in overall operational efficiency.
Indian scenario A. Adopting trends In India, the adoption of robotic systems in the cement industry is steadily gaining traction. According to industry forecasts, over 30 per cent of large cement plants in India have initiated or completed the integration of robotic solutions into their production processes, with projections indicating a further 15 per cent increase in the next three years. B. Safety enhancement With a commitment to worker safety, Indian cement plants are integrating robotics into tasks that involve potential risks. Reports suggest a 40 per cent reduction in accidents related to material handling and other hazardous processes in plants where robotic systems are actively employed. C. Efficiency and precision The Indian cement industry is witnessing increased efficiency and precision in production through the deployment of robotic systems. According to operational data, cement plants in India have experienced a 12 per cent improvement in packaging precision and a 30 per cent reduction in errors in tasks performed by robots. D. Collaborations and investments To expedite the adoption of robotics, Indian cement manufacturers are collaborating with robotics companies and investing in research and development. Industry reports indicate that the Indian cement sector has witnessed a 25 per cent increase in investments in robotic technologies in the last two years. E. Future trajectory The future of cement production globally and in India is undeniably linked to the continued integration of robotic technologies. As advancements in robotics and automation unfold, the industry is poised to witness further improvements in safety, precision and overall efficiency. Projections estimate a 10 per cent increase in global robotic adoption in the next decade, with India leading this trend with an anticipated 20 per cent growth in robotic integration.
Global trends in marketing, technology and sustainability
Virtual global presence Establishing a virtual global presence through digital showrooms is a strategic approach, especially in an increasingly digital world. This provides customers with convenient access to your products regardless of geographical boundaries.
Augmented reality engagement Augmented reality adds an interactive and immersive dimension to your marketing materials. It enhances customer engagement and understanding of your products, making the experience more memorable.
AI-powered personalisation Personalised marketing content through AI algorithms demonstrates a customer-centric approach. Understanding and addressing individual needs can enhance customer satisfaction and loyalty.
Virtual knowledge sharing Offering virtual workshops and e-learning platforms is an excellent way to empower customers with knowledge. This not only builds trust but also positions your company as a thought leader in the industry.
Global educational partnerships Collaborating with international educational institutions contributes to knowledge exchange and the development of industry best practices. It fosters a global community focused on innovative construction methods.
A sustainable global future The emphasis on a sustainable global future reflects a broader commitment beyond business goals. It aligns with the growing importance of corporate social responsibility and environmental stewardship.
Conclusion In wrapping up our journey through the innovations and sustainable practices in the global cement industry, it’s clear that our commitment to excellence is shaping the future of construction. Embracing smart technologies like Industry 4.0 in cement plants ensures efficient and eco-friendly production. Our drive towards emission-free aspirations, with the use of advanced technologies, signifies a crucial step in creating a cleaner, greener world. We are actively reducing our carbon footprint, setting ambitious goals for a sustainable future. The transition to electrifying kiln technology reflects our dedication to cleaner production methods. By incorporating green hydrogen, we are not just reducing environmental impact but also setting new standards for responsible energy use in cement production. In marketing, our approach goes beyond borders. The use of virtual showrooms, augmented reality and AI-powered personalisation ensures that customers globally have an immersive and personalised experience. Empowering customers through virtual knowledge sharing and global educational partnerships showcases our commitment to spreading valuable insights globally. We envision a future where education and innovation lead to sustainable construction practices worldwide. In essence, our strategies aren’t just about revolutionising the cement industry; they are about creating a better, more sustainable world for everyone. By pushing the boundaries of innovation, embracing sustainability and fostering global education, we’re paving the way for a brighter future in construction.
References Klaus Schwab, The Fourth Industrial Revolution, World Economic Forum, 2016. International Energy Agency, Technology Roadmap: Carbon Capture and Storage, 2013. International Energy Agency, Energy Technology Perspectives 2020, 2020. International Renewable Energy Agency, Green Hydrogen Cost Reduction: Scaling up Electrolyzers to Meet the 1.5°C Climate Goal, 2021. International Federation of Robotics, World Robotics 2020 – Industrial Robots, 2020. McKinsey & Company, Reimagining marketing in the next normal, 2021. Statista, Augmented and virtual reality (AR/VR) forecast spending worldwide 2020-2024, 2021. Forbes, AI For Marketers: 8 Best Practices to Boost Your Strategy, 2021. E-learning Industry, Top eLearning Statistics and Facts For 2021, 2021. UNESCO, Global Education Monitoring Report 2020, 2020. United Nations, Sustainable Development Goals, 2021.
About the author: Dr SB Hegde is an industrial leader with expertise in cement plant operation and optimisation, plant commissioning, new cement plant establishment, etc. His industry knowledge covers manufacturing, product development, concrete technology and technical services.
(*Refer to the January 2024 issue of Indian Cement Review for the first part of this article.)
The cost of construction in India increased by 11% over the past year, primarily driven by a 25% rise in labour expenses, according to Colliers India. While prices of key materials like cement dropped by 15% and steel saw a marginal 1% decrease, the surge in labour costs stretched construction budgets across sectors.
“Labour, which constitutes over a quarter of construction costs, has seen significant inflation due to the demand for skilled workers and associated training and compliance costs,” said Badal Yagnik, CEO of Colliers India.
The residential segment experienced the sharpest cost escalation due to a growing focus on quality construction and demand for gated communities. Meanwhile, commercial and industrial real estate remained resilient, with 37 million square feet of office space and 22 million square feet of warehousing space completed in the first nine months of 2024.
“Despite rising costs, investments in automation and training are helping developers address manpower challenges and streamline project timelines,” said Vimal Nadar, senior director at Colliers India.
With labour costs continuing to influence overall construction expenses, developers are exploring strategies to optimize operations and mitigate rising costs.
Swiss Steel has announced plans to cut 800 jobs as part of a restructuring effort, triggered by weak demand in the global steel market. The company, a major player in the European steel industry, cited an ongoing slowdown in demand as the primary reason behind the workforce reduction. These job cuts are expected to impact various departments across its operations, including production and administrative functions.
The steel industry has been facing significant challenges due to reduced demand from key sectors such as construction and automotive manufacturing. Additionally, the broader economic slowdown in Europe, coupled with rising energy costs, has further strained the profitability of steel producers like Swiss Steel. In response to these conditions, the company has decided to streamline its operations to ensure long-term sustainability.
Swiss Steel’s decision to cut jobs is part of a broader trend in the steel industry, where companies are adjusting to volatile market conditions. The move is aimed at reducing operational costs and improving efficiency, but it highlights the continuing pressures faced by the manufacturing sector amid uncertain global economic conditions.
The layoffs are expected to occur across Swiss Steel’s production facilities and corporate offices, as the company focuses on consolidating its workforce. Despite these cuts, Swiss Steel plans to continue its efforts to innovate and adapt to market demands, with an emphasis on high-value, specialty steel products.
UltraTech Cement, the Aditya Birla Group’s flagship company, has announced plans to raise up to Rs 3,000 crore through the private placement of non-convertible debentures (NCDs) in one or more tranches. The move aims to strengthen the company’s financial position amid increasing competition in the cement sector.
UltraTech’s finance committee has approved the issuance of rupee-denominated, unsecured, redeemable, and listed NCDs. The company has experienced strong stock performance, with its share price rising 22% over the past year, boosting its market capitalization to approximately Rs 3.1 lakh crore.
For Q2 FY2025, UltraTech reported a 36% year-on-year (YoY) decline in net profit, dropping to Rs 825 crore, below analyst expectations. Revenue for the quarter also fell 2% YoY to Rs 15,635 crore, and EBITDA margins contracted by 300 basis points. Despite this, the company saw a 3% increase in domestic sales volume, supported by lower energy costs.
In a strategic move, UltraTech invested Rs 3,954 crore for a 32.7% equity stake in India Cements, further solidifying its position in South India. UltraTech holds an 11% market share in the region, while competitor Adani holds 6%. UltraTech also secured $500 million through a sustainability-linked loan, underscoring its focus on sustainable growth driven by infrastructure and housing demand.