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Digitalisation offers multifaceted benefits

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Amit Gupta, Division President, Motion Services, ABB India, discusses the role of motor-driven systems in enhancing productivity and efficiency of a cement plant.

What is the impact of the motor driven systems in the cement industry?
In the cement industry, motor-driven systems play a crucial role amidst challenging conditions marked by excessive dust and fluctuating temperatures. With hundreds of motors in the plant starting from a few kWs to MWs running various applications, motor driven systems consume a large part of energy in the cement manufacturing process. Running these systems efficiently and effectively is key to enhancing productivity. Cement industry has been in forefront in adopting energy efficient motors and use of Variable Frequency Drives (VFDs) for energy saving, however oversizing and missing to evaluate the efficiency of the system at the operating points are resulting in higher costs. ABB provides a comprehensive portfolio of high-efficiency motors tailored for such harsh environments. Supported by global service and ABB Ability™ digital solutions, these motors reduce unplanned downtime, enhance production efficiency, and heighten safety, thereby significantly impacting
the operational parameters of the cement industry.

How does Motion services help in maximising performance of motors and drives leading to improved uptime and efficiency in energy utilisation?
ABB Motion Services leverages its extensive experience in motors, generators, and drives to deliver comprehensive solutions. ABB’s customised service offerings and innovative
digital technologies ensure maximised uptime, optimised lifecycle management, enhanced performance, and improved energy efficiency for your electrical equipment.
The landscape of industrial maintenance is shifting towards outcome-based models, marking a departure from traditional task-based arrangements. In these innovative models, service partners are compensated not just for completing tasks, but for delivering tangible outcomes. This alignment of incentives ensures that both the business and service partner are fully invested in achieving shared maintenance goals, such as maximising energy savings or ensuring uptime.
This paradigm shift creates a mutually beneficial scenario where both parties stand to gain, fostering a win-win dynamic.
On the digital front, ABB Ability™ Condition Monitoring for powertrains makes maintenance easy and affordable. Our diagnostic solutions e.g. ABB Ability™ Life expectancy Analysis Program (LEAP) for high voltage motors and generators give insights to understand remnant insulation life of these machines and help customers to take timely corrective actions. For direct-on-line motors with possibility of optimal running, we offer VFD retrofits. One of the solutions here is our slip power recovery system (SPRS) for slip ring motors, where we typically save 10 to 20 per cent of energy. This holistic approach, backed by over 130 years of collective expertise, empowers clients across diverse industries to achieve operational excellence, profitability, and sustainability.

How does equipment modernisation contribute to reducing carbon emissions?
Equipment modernisation plays a pivotal role in mitigating carbon emissions through fast, efficient, and cost-effective methods aimed at enhancing plant reliability and performance. By modernising existing equipment, not only is its lifespan extended, but its performance is optimised, leading to greater
energy efficiency, avoids material waste from premature scrapping and avoids up to 55 per cent of CO2 emissions compared to a full replacement. Through life-cycle audits, ABB Motion Services assesses equipment condition and identifies obsolescence issues, offering tailored maintenance paths to boost reliability and performance while extending operational
life, thereby contributing to the reduction of carbon emissions.

What are the challenges faced in the cement industry along with potential solutions?
Many industrial businesses including cement still rely on outdated, high-risk maintenance methods, neglecting the true costs of unexpected downtime. ABB had conducted a study last year named the ‘Reliability Survey’ which emphasises this oversight, urging the industry to prioritise energy efficiency
and reliability. Digitalisation should enhance decision-making, paving the way for a proactive, outcome-driven approach. Industrial businesses should aim to progress from a high-risk run-to-fail maintenance approach to a long-term outcome-based strategy. This will improve reliability, business reputation, competitiveness, cut costs and provide peace of mind, empowering businesses to focus on their core competence.
Among the key challenges faced in the cement industry are reducing CO2 emissions, which requires transitioning to carbon-neutral methods such as biomass fuels, hydrogen, and electrification. There’s a growing need for digital traceability to establish cement’s digital identity for product tracking and performance monitoring throughout the supply chain. Furthermore, addressing skills gaps poses a significant hurdle, particularly with an ageing maintenance workforce, as indicated by a survey showing an average age of 37 among maintenance staff, a trend observed across different countries and sectors.

Can you provide insights into digitalisation within the cement industry?
Digitalisation offers multifaceted benefits. It not only enhances process, asset and plant-wide performance but also fosters sustainability. By embracing high levels of digitalisation, efficiency gains are maximised, leading to reduced energy consumption and increased utilisation of alternative fuels and renewable energy sources.
Achieving optimal digitalisation levels requires a unified, cross-functional and enterprise-wide approach to digital transformation, exemplified by solutions provided by ABB. This approach encompasses digital process and asset optimisation technologies, coupled with comprehensive training for plant personnel.
A holistic approach brings a suite of targeted business benefits to cement customers. It enables process optimisation by leveraging advanced control, artificial intelligence, and machine learning technologies, ensuring maximum efficiency in operations. It also facilitates asset optimisation by minimising downtime and enhancing the overall effectiveness of equipment, leading to improved reliability and performance. Driving quality improvement through in-line quality control measures, it incorporates feedback loops to adjust process parameters and maintain consistency in product quality. Moreover, Energy Appraisal enhances planning efficiency by enabling comprehensive planning across fleets, resulting in greater accuracy in forecasting and resource allocation. Additionally, it also boosts logistics productivity by streamlining in-plant logistics and warehousing operations, thereby enhancing workforce efficiency and overall operational performance.
In essence, digitalisation revolutionises the cement industry by driving efficiency, sustainability, and overall operational excellence through a cohesive and integrated digital approach.

How can ABB Energy Appraisal help plants save energy and lower carbon emissions?
ABB Energy Appraisal Service provides in-depth insights to facilitate informed decisions for conserving energy in electric motor-driven systems, thereby aiding in the reduction of CO2 emissions and enhancing a company’s sustainability efforts. By pinpointing the most energy-intensive motor-driven applications, it suggests strategies to enhance efficiency and promote sustainability. Additionally, the option to integrate an ABB Energy Appraisal into an ABB Motion OneCare agreement is available.
The Energy Appraisal offers several key benefits to industrial plants. Firstly, it enables the identification of motor-driven systems for energy savings, providing a comprehensive overview of potential savings and payback periods for each application. Additionally, it helps pinpoint strategies to reduce operational costs and mitigate CO2 emissions, aligning with sustainability objectives. Furthermore, the Appraisal serves as a guide for modernisation efforts, assisting in prioritising upgrades with optimal returns on investment. Importantly, these benefits are achieved with minimal disruption to operations, as the Appraisal can be conducted seamlessly without impacting facility activities, and any recommended equipment upgrades can be integrated into routine maintenance schedules, ensuring continuity of production.

  • Kanika Mathur

Concrete

Construction Costs Rise 11% in 2024, Driven by Labour Expenses

Cement Prices Decline 15%, But Labour Costs Surge by 25%

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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.

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Concrete

Swiss Steel to Cut 800 Jobs

Job cuts due to weak demand

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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.

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Concrete

UltraTech Cement to raise Rs 3,000 crore via NCDs to boost financial flexibility

UltraTech reported a 36% year-on-year (YoY) decline in net profit, dropping to Rs 825 crore

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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.

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