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A cornerstone of the Indian cement industry

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Some things are changing at FLSmidth Cement, but most remain the same, as the company’s Indian head, Manoj Taneja, explained to Indian Cement Review.

FLSmidth Cement is changing. Over recent years, the company’s pureplay strategy has separated its cement and mining businesses, and the cement business is now undergoing divestment: news that was met by some with uncertainty. However, according to Manoj Taneja, Head of India Cluster and Designated Partner in FLSmidth Cement India LLP, this has all been a “good move” that allows the cement business to “take control of our future”.
Taneja began his professional career as a service engineer at EEL India Ltd, a manufacturer of various material handling and bag packing systems acquired by FLSmidth in 2009. He has led the company’s Indian operations since 2022. “It is an exciting time at FLSmidth Cement. With pureplay and the divestment, we can now chart our own course. The most obvious example of this in our Indian business is consolidating our manufacturing footprint into a single facility near our corporate headquarters in Chennai. This allows us to focus exclusively on our cement clients, improving efficiency and responsiveness, simplifying logistics, and centralising our expertise into a single point of excellence. Chennai also offers good access to the rest of the country, making it easier for clients to visit our factory for inspections and performance testing.”
The corporate headquarters is also moving as the company seeks offices that better match its needs. “As we continue to embrace a flexible post-COVID working model, finding a workspace that supports this shift and provides our employees with a favourable working environment is essential,” Taneja explained. “We are staying in Chennai, however, and currently undertaking a site selection process that aims to limit the inconvenience caused to employees.”

A name you can rely on
Some things, however, remain constant. “We are still delivering the same industry-leading equipment and services as we have always done,” according to Taneja. Nowhere is this more obvious than the record-setting new clinker line at Shree Cement Ltd’s Nawalgahr plant in Rajasthan. Inaugurated in December 2023 with a guaranteed capacity of 11,500 tph, the plant is averaging daily clinker production of 13,695 tonnes. The line features a four-string preheater with low-NOX calciner, a 6m dia. x 88m long kiln, and the largest Cross Bar® Cooler ever delivered, with a grate area of over 325m2.
Shree Cement Ltd also recently signed their first group-level PlantLine™ service agreement in India, covering all current and future FLSmidth Cement automation solutions across seven plants. “PlantLine agreements aim to maintain the operational excellence of digital and automation solutions through a comprehensive, customisable range of services,” explained Tanega. “The Shree Cement agreement puts us just shy of 300 PlantLine agreements globally and shows the increasing significance of services that help improve and maintain plant performance.”
“One of the main benefits of our services is access to specialist (and potentially hard-to-acquire) skills and experience,” continued Taneja. “Our global network offers 24/7 access to support from a world-leading team of experts in all aspects of the cement-making process, plant, equipment, and automation systems, wherever you are in the world.”

Renewed focus on cement
Another outcome of the company’s pureplay transition is “keeping our cement clients front and centre of our activities; there is no competition with mining,” emphasised Taneja. “For example, here, in India, we recently ran nine client-focused webinars on diverse topics, all on the theme of enhancing equipment reliability. These sessions received an overwhelming response, attracting over 100 participants each, from all levels of client organisations, which indicates the widespread interest and engagement in the topics discussed.”
Webinars are a “great way to exchange and foster closer collaboration between us and our clients,” Taneja added. “However, we also understand the importance of face-to-face meetings and will attend several upcoming in-person conferences.”
This includes the upcoming 18th NCB International Conference and Exhibition in New Delhi, where FLSmidth Cement will present papers on various topics, including a paper on alternative fuels. “We are particularly excited about the impending commercial launch of our new FUELFLEX® Pyrolyzer, which uses hot meal from the lower preheater cyclones to dry and pyrolyze hard-to-burn refuse-derived fuels or biomass,” said Taneja. This innovative new equipment enables cement plants to achieve up to 100% fossil fuel replacement in the calciner, cutting CO2 emissions, diverting waste from landfills, and reducing fuel costs.
Other topics to be presented include a paper on the digital cement plant and another on supplementary cementitious materials, focusing on calcined clay. “We see growing interest in technologies that reduce the carbon intensity of cement,” explained Taneja. “Part of our core mission is to help the cement industry address and reduce its environmental impact. We are also fortunate to have some of the industry’s true sustainability leaders here in India, opening the way for collaborative innovation to solve these most pressing issues.”

A past to build the future on
“Change is a fact of life,” concluded Taneja. “This is particularly true in a dynamic and changing market such as the Indian cement industry. However, there are some things you can rely on throughout all the changes. One of those cornerstones is FLSmidth Cement. We remain committed to supplying equipment, services, and solutions that
improve the cement industry – just as we have always done.”

(Communication by the management of the company)

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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Concrete

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

HDFC Securities warns monsoon slowdown and higher fuel costs

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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.

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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

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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.

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