Concrete
Powering Performance
Published
1 year agoon
By
admin
India’s cement industry is undergoing a strategic shift, embracing innovation, lean operations and sustainability to boost productivity. ICR delves into the smarter systems, greener practices and skilled workforces that the sector is investing in to stay competitive and future-ready.
India’s cement industry stands as a cornerstone of the nation’s infrastructure development, ranking as the second-largest producer globally. With a market size of 338.04 million metric tonnes (MMT) in 2024, it’s projected to grow at a CAGR of 5.4 per cent to reach 571.97 MMT by 2034. This growth is fuelled by robust infrastructure projects, urbanisation and government initiatives.
Despite this upward trajectory, the industry faces challenges such as fluctuating demand, rising input costs and environmental concerns. To navigate these, cement plants must prioritise productivity enhancements. Embracing technological advancements, optimising operations and sustainable practices are pivotal in achieving this goal.
Embracing Industry 4.0 and digital transformation
The integration of Industry 4.0 technologies is revolutionising cement manufacturing. Approximately 15 per cent of major Indian cement plants have initiated the adoption of these technologies, leading to a 12 per cent improvement in production efficiency.
Digital tools such as IoT sensors, AI-driven analytics and real-time monitoring systems enable predictive maintenance, reducing unplanned downtimes. For instance, AI algorithms can analyse equipment data to forecast potential failures, allowing timely interventions.
JayaKrishna Kokku, Lead – Technical Operations, APAC and Middle East, Nanoprecise Sci Corp, says, “The AI-driven analytics platform from Nanoprecise processes sensor data using advanced machine learning and physics-based algorithms. It detects early signs of component degradation (e.g., bearing faults, misalignment and imbalance) and provides actionable insights. By identifying potential failures weeks or months in advance, the platform allows cement plant operators to shift from reactive to proactive maintenance.”
Moreover, automation in processes like material handling and quality control ensures consistency and reduces human error. This not only enhances product quality but also optimises resource utilisation.
Investments in digital infrastructure are crucial. Over the past two years, the Indian cement industry has invested around `5.00 billion (approximately $67 million) in upgrading technologies to align with Industry 4.0 standards.
Operational excellence through lean manufacturing
Implementing lean manufacturing principles can significantly boost productivity. Techniques like Total Productive Maintenance (TPM) and the 5S methodology have proven effective in the cement sector.
TPM focuses on proactive maintenance to prevent equipment failures, thereby ensuring continuous production. By involving all employees in maintenance activities, plants can achieve higher equipment efficiency and reduce downtime.
“Efficient material handling is the backbone of any industrial operation. At Elastocon, our engineering philosophy revolves around creating belts that deliver consistent performance, long operational life, and minimal maintenance. We focus on key performance parameters such as tensile strength, abrasion resistance, tear strength, and low elongation at working tension. Our belts are designed to offer superior bonding between plies and covers, which directly impacts their life and reliability. We also support clients with maintenance manuals and technical advice, helping them improve their system’s productivity and reduce downtime,” says Kamlesh Jain, Managing Director, Elastocon.
The 5S methodology—Sort, Set in Order, Shine, Standardise and Sustain—enhances workplace organisation. A well-organised workspace reduces waste, improves safety and facilitates smoother operations.
Adopting these lean tools fosters a culture of continuous improvement, where employees are empowered to identify and eliminate inefficiencies, leading to sustained productivity gains.
AFR: A sustainable route to productivity
As cement plants seek to optimise operations while aligning with sustainability goals, the use of Alternative Fuels and Raw Materials (AFR) has emerged as a transformative solution. AFR not only reduces dependency on traditional fossil fuels but also contributes to waste management and cost efficiency. According to the Cement Manufacturers’ Association (CMA), the Thermal Substitution Rate (TSR) in India rose from 4 per cent in 2010 to approximately 7 to 8 per cent by 2024, with a government target to reach 25 per cent TSR by 2030. This shift directly supports both environmental objectives and plant productivity by enhancing kiln efficiency and lowering energy costs.
Cement kilns, operating at extremely high temperatures (up to 1450°C), are capable of safely co-processing various types of waste, including municipal solid waste (MSW), industrial waste, biomass, and refuse-derived fuel (RDF). This not only helps reduce the carbon footprint of the plant but also ensures steady fuel supply at reduced cost. For instance, Geocycle, a global waste management brand, has partnered with Indian cement companies to expand the co-processing of waste in kilns, helping improve fuel efficiency and reduce production interruptions due to conventional fuel shortages.
Alternative raw materials such as fly ash, slag and silica fume also play a crucial role in boosting cement plant productivity. These materials, when used in blended cement production, not only reduce clinker consumption (the most energy-intensive component of cement) but also improve the long-term strength and durability of the final product. This leads to lower energy consumption per ton of cement and a reduction in CO2 emissions by up to 30 per cent, depending on the blend. Plants using supplementary cementitious materials (SCMs) often report improved operational stability in grinding and reduced maintenance needs.
To fully leverage AFR, cement companies must invest in pre-processing facilities, modify feeding systems, and ensure regulatory compliance. While initial investments can be significant, the long-term gains in cost savings, environmental performance, and operational continuity make it a worthwhile strategy. Additionally, government incentives and evolving waste management policies in India are accelerating the adoption of AFR, presenting a win-win opportunity for productivity and sustainability in cement manufacturing.
Energy efficiency and sustainable practices
Energy costs constitute a significant portion of cement production expenses. In FY2024, prices of coal and pet coke declined by 47 per cent and 33 per cent respectively, offering some relief. However, long-term sustainability requires a shift towards energy-efficient practices.
Integrating renewable energy sources, such as solar and wind, into cement production processes is gaining traction. Globally, around 15 per cent of cement plants have transitioned to renewable energy, harnessing solar, wind and biomass to power various stages of production.
Additionally, the adoption of waste heat recovery systems can capture and reuse energy from kiln exhaust gases, reducing overall energy consumption. Such initiatives not only lower operational costs but also contribute to environmental conservation.
Implementing energy management systems and conducting regular energy audits can further identify areas for improvement, ensuring optimal energy utilisation across the plant.
Workforce development and skill enhancement
A skilled workforce is integral to the successful implementation of productivity-enhancing strategies. With the advent of advanced technologies, there’s a pressing need for upskilling employees to handle new tools and processes.
Janak Vakharia, CEO, Xpedeon, says, “Xpedeon fosters cross-functional collaboration by connecting departments such as engineering, procurement, finance, and site teams on a single digital platform. Its integrated system provides a common data environment that supports consistent and reliable project tracking. Features like role-based dashboards, document workflows, and system-generated alerts enable better communication and accountability. Office and site teams can coordinate activities more effectively, reducing rework and friction. The platform’s cloud-based nature ensures that information flows securely and instantly across multiple locations, supporting collaboration regardless of geography.”
Training programs focusing on digital literacy, equipment maintenance and process optimisation can empower employees to contribute effectively. Collaborations with technical institutes and industry experts can facilitate comprehensive training modules.
Moreover, fostering a culture of continuous learning and innovation encourages employees to seek improvements proactively. Recognition and reward systems can motivate staff to engage in productivity-enhancing initiatives.
Investing in human capital not only boosts operational efficiency but also enhances employee satisfaction and retention, contributing to long-term organisational success.
Strategic planning and market adaptability
In an increasingly competitive and dynamic environment, strategic planning and market adaptability have become essential pillars for boosting productivity in cement plants. The industry is facing multifaceted challenges including fluctuating demand, volatile input costs, environmental regulations and shifting customer expectations. To navigate this complexity, cement manufacturers must adopt a long-term strategic outlook that encompasses operational resilience, financial optimisation and agility in responding to market changes. According to a recent report by CRISIL, the Indian cement industry is expected to grow at 6 to 7 per cent CAGR between 2024 and 2028, making it critical for companies to align production strategies with market demand cycles to capture growth opportunities while maintaining efficiency.
One of the key aspects of strategic planning is demand forecasting using advanced analytics and real-time data. Cement plants are increasingly leveraging artificial intelligence (AI), machine learning and ERP systems to analyse market trends, construction cycles, and regional demands to plan production schedules more effectively. For instance, using predictive analytics, manufacturers can adjust output levels in anticipation of seasonal slowdowns or surges, preventing underutilisation or overstocking, both of which hurt productivity and profitability. Furthermore, portfolio diversification through product innovation—such as launching premium or blended cements tailored for infrastructure, residential, or green building projects—can buffer market volatility and create new revenue streams.
Geographical diversification and market segmentation are also vital for strategic adaptability. Companies with multiple production units or grinding stations are better positioned to respond to regional demand fluctuations by reallocating resources and optimising logistics. Market segmentation allows cement producers to offer differentiated value propositions to various customer segments—such as ready-mix concrete producers, contractors, and institutional buyers—ensuring better customer retention and tailored service. By customising pricing strategies, packaging solutions and delivery schedules, cement firms can improve customer satisfaction and streamline distribution, which directly feeds into enhanced
plant efficiency.
Lastly, strategic partnerships, mergers and digital transformation initiatives are enabling cement companies to stay ahead in a transforming market. Collaborations with technology providers, infrastructure developers, or waste management firms are helping plants access new capabilities and alternative resources. Furthermore, scenario-based planning and risk assessment have become key tools in preparing for supply chain disruptions or regulatory shifts. Plants that incorporate such flexibility into their strategic DNA are better equipped to make swift, informed decisions, ultimately boosting productivity while minimising operational risks.
Conclusion
Boosting productivity in cement plants is a multifaceted endeavour, encompassing technological adoption, operational efficiency, energy management, workforce development and strategic agility. By embracing these strategies, the Indian cement industry can enhance its competitiveness, meet growing demand, and contribute to sustainable development.
As the sector evolves, continuous innovation and adaptability will be key drivers of success. Stakeholders must collaborate to foster an ecosystem that supports productivity enhancements, ensuring the industry’s robust growth in the years to come.
– Kanika Mathur
Concrete
Cement Makers’ Margins To Fall Rs 50-75 Per Tonne Amid West Asia Conflict
Crisil Sees Margins Easing Despite Steady Demand
Published
5 days agoon
July 29, 2026By
admin
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.
Concrete
UltraTech Board Approves Rs 50 bn Fundraise Via NCDs
Company to issue half a million debentures for expansion plan
Published
6 days agoon
July 28, 2026By
admin
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.
Concrete
Lokesh Lays Stone For Rs 31 Billion Cement Unit In Kadapa
Line-2 expansion to make Kadapa a major cement hub
Published
2 weeks agoon
July 20, 2026By
admin
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.
Cement Makers’ Margins To Fall Rs 50-75 Per Tonne Amid West Asia Conflict
UltraTech Board Approves Rs 50 bn Fundraise Via NCDs
Fornnax Names Lukas Baur as Authorised Service Partner to Bolster EU Operations
Lokesh Lays Stone For Rs 31 Billion Cement Unit In Kadapa
Cement Prices to Stay Flat in Q2 FY27 as Costs Squeeze Margins
Cement Makers’ Margins To Fall Rs 50-75 Per Tonne Amid West Asia Conflict
UltraTech Board Approves Rs 50 bn Fundraise Via NCDs
Fornnax Names Lukas Baur as Authorised Service Partner to Bolster EU Operations
Lokesh Lays Stone For Rs 31 Billion Cement Unit In Kadapa
Cement Prices to Stay Flat in Q2 FY27 as Costs Squeeze Margins
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