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We are focusing on predictive measures

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Gaurav Gautam, Business Unit Head, Beumer Group, discusses the role of automation with Kanika Mathur.

The Beumer Group has made significant contributions to the cement industry, focusing on automation and digital transformation. In an attempt to understand the effect of technology on sustainability, we get them to expound on the idea of creating an eco-system that is conducive to growth.

Tell us about your organisation and its role in the cement industry.
I represent Beumer Group, a 90-year-old family-owned company headquartered in Germany. We are experts in material handling, and that has always been our focus. With our products and solutions, we cater to various industries, including cement, building materials, petrochemicals, and the mineral mining segment on the bulk side. Additionally, we serve industries such as airports and automation in the discrete side of operations. Our primary focus remains on evolving and innovating. Given the current world of disruptions, changes are happening much faster, and we understand the necessity to remain innovative, not just in our products but also in our overall value propositions to customers.

Tell us about some of the innovative products that you supply to the cement industry, and how have they helped improve their operations?
As I mentioned, we don’t just focus on products. Instead, we aim to offer comprehensive value to our customers. By this, I mean that while products and solutions are a part of what we provide, we also emphasise long-term services. We address product lifecycle costs, total cost of ownership, and digital transformation.
On the digital side, we are introducing tools that go beyond reactive measures—where you address problems only after they occur. Instead, we are focusing on predictive measures. For instance, we use data to analyse and forecast potential issues that might arise in the next one to three months. This predictive approach ensures greater equipment availability.
We focus on overall equipment effectiveness, addressing three critical aspects: availability, accuracy, and throughput. Our portfolio encompasses both upstream and downstream solutions. On the upstream side, we specialise in long-distance conveying, cross-country conveyors, stacker reclaimers, and yard equipment handling machines. We also offer critical applications for kiln feeds and preheaters, including tall elevators. On the downstream side, we excel in innovative filling, packing, and palletising machines.

Tell us more about your bagging, packaging, and palletising machines. How are they helping the cement industry become more efficient and faster?
The bagging, packaging, and palletising area is crucial in cement plants as this is where revenue generation happens for our customers. Unfortunately, this area often lacks the same efficiency focus as other sections and continues to employ significant manpower. It is also less human-friendly, as workers still handle 50-kg bags under challenging conditions. We are committed to automating these processes and working alongside our customers to identify and resolve challenges. However, introducing automation requires a supportive ecosystem. Innovative equipment alone isn’t enough if the ecosystem isn’t prepared.
We approach this as a partnership with our customers, where we understand their problems—whether it’s space issues or challenges with manual loading. While full automation will take time, we have made significant progress. Several of our customers, such as UltraTech, Holcim and Wonder Cement, have already adopted automation, particularly on the loading side of bagging lines.

What are your views on fully automated packaging? What are some innovations and challenges in packaging?
Currently, packaging remains a live operation, meaning whatever is filled is immediately despatched, leaving no buffer in between. This model poses challenges, as it limits the window for preventive maintenance, affecting equipment availability. We are working towards transitioning this live model to a hybrid one. While moving entirely from live loading to palletising is not immediate, we are introducing palletising machines. Palletising buffers the bags, organises them into pallets, and allows faster loading. This also decouples the filling and loading processes, improving efficiency.
European and American markets have widely adopted this model, and China is also moving in this direction. We believe India will follow suit soon.

Does the type of bag make a difference in functionality?
Yes, it does—especially on the filling side. While our auto-loading machines are robust and can handle any type of bag, including woven or traditional SDP bags, the quality of the bag significantly impacts the filling process. Auto bag-placing machines have specific preconditions regarding bag quality.
On the loading side, our electromechanical machines do not use pneumatic systems, which is a key differentiator. This design ensures robust performance irrespective of bag type.

What controls do you have in place to maintain a dust-free and moisture-free packaging environment?
Technology plays an essential role, but the ecosystem is equally important for achieving optimal performance. The Indian cement industry predominantly uses woven SDP bags, which limit the ability to maintain a dust-free packing plant. However, we have made substantial improvements in our filling and packing machines. We have introduced intelligent flow rates, optimised filling cycles, and enhanced dust collection systems. These developments significantly reduce fugitive dust during operations.
On the loading side, automation has helped minimise manual handling, which further reduces dust. Our auto-loading machines, for instance, place bags directly onto the truck bed, eliminating the need for manual bag placement and mitigating fugitive dust. While technology has supported advancements, evolving the ecosystem and transitioning to better-quality bags remain critical for long-term improvements.

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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