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Modernised plants allow tighter control over quality

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Satish Maheshwari, Chief Manufacturing Officer, Shree Cement, discusses how digitalisation and automation are transforming plant performance while strengthening cost efficiency and environmental outcomes.

Across India’s cement industry, modernisation is increasingly shaping the way plants operate, compete and scale. In this conversation, Satish Maheshwari, Chief Manufacturing Officer, explains how Shree Cement is leveraging advanced process control, AI-enabled analytics, waste heat recovery and renewable energy to build smarter, more resilient manufacturing operations.

What are the key drivers pushing cement plants in India to prioritise modernisation?
Our approach to modernisation is firmly anchored in driving long-term cost efficiency and operational excellence. We are making targeted investments in automation, digital systems and advanced process controls to improve energy efficiency, enhance productivity and reduce variability across operations. This allows us to scale responsibly while maintaining strong cost discipline.
At the same time, modernisation supports a more diversified and resilient business model. As customer requirements evolve, there is a growing need for consistent quality, reliability and differentiated products, which modern plants are better equipped to deliver. Equally important is building control and flexibility across the value chain to manage input volatility and regulatory expectations.
Overall, this balanced focus on efficiency, innovation and scalability enables us to remain competitive in a price-sensitive market while preparing the organisation for sustainable growth over the long term.

How is plant modernisation helping you balance cost efficiency, productivity and sustainability targets simultaneously?
Plant modernisation enables us to address cost efficiency, productivity and sustainability through a single, integrated operating framework. By investing in advanced automation, digital process controls and data-led optimisation, we improve plant stability and throughput while reducing energy and fuel consumption per tonne, which strengthens cost efficiency.
At the same time, greater deployment of renewable energy and waste heat recovery reduces dependence on conventional power, improves energy security and lowers emissions, directly supporting our sustainability goals.
Modernised plants allow tighter control over quality and input intensity, ensuring consistent performance as we scale. In effect, modernisation ensures that productivity gains, cost discipline and environmental responsibility move in the same direction, enabling sustainable and competitive growth over the long term.

Which technologies have delivered the most measurable impact in your upgraded facilities?
Automation, AI enabled analytics, digital twins and modernised Waste Heat Recovery Systems (WHRS) have had the most tangible impact across Shree Cement’s upgraded facilities. Advanced Process Control has improved kiln and mill stability, reduced process variability and lowered overall energy consumption. AI based condition monitoring and predictive models have strengthened equipment health visibility, enabling early fault detection and significantly reducing unplanned downtime. Digital twins have supported better optimisation strategies and quicker ramp up after shutdowns by allowing teams to simulate scenarios and refine set points without disturbing live operations.
At the same time, enhanced WHRS have delivered measurable energy savings and reduced dependence on grid electricity, directly contributing to lower carbon intensity. Together, these technologies have improved reliability, elevated operational consistency, and strengthened the company’s sustainability performance. Their combined impact has positioned Shree Cement’s plants to operate with higher efficiency, improved resilience, and a future ready digital approach to manufacturing.

How do you evaluate ROI and payback periods when investing in large-scale plant modernisation projects?
At Shree Cement, ROI evaluation for large scale modernisation projects is built on a rigorous techno economic approach that prioritises efficiency, reliability, and long-term value creation. Each project undergoes a detailed assessment of its impact on key operational parameters such as specific power and heat consumption, throughput improvement, equipment life enhancement, maintenance cost reduction, and process stability. Real time performance data from existing systems is used to benchmark expected gains, ensuring that projections are grounded in actual operating behaviour. Financial metrics, including ROI, IRR, NPV and sensitivity to production variability, are carefully analysed to determine realistic payback periods under different operational scenarios.
Beyond financial returns, Shree Cement places strategic emphasis on sustainability, digitalisation, and regulatory preparedness when evaluating investments. Projects that contribute to lower emissions, improved energy efficiency, enhanced automation, and stronger ESG alignment are given significant weight, even when their payback horizons are moderate. This balanced assessment ensures that capital expenditure not only delivers measurable economic returns but also strengthens long term competitiveness, environmental compliance, and future ready operational resilience.

What operational challenges do you face while upgrading brownfield plants without disrupting ongoing production?
Upgrading a brownfield cement plant without disrupting ongoing production presents significant operational and managerial challenges. The constraints of highly restricted shutdown periods necessitate the completion of critical tie ins and modifications within compressed timelines, while ensuring uninterrupted supply commitments. To meet the tight timelines, we prepare necessary assemblies and tasks in advance, which are then quickly connected and executed during the shutdown period to minimise downtime.
Existing plant layouts, often characterised by limited space and legacy structural configurations, make the installation of additional equipment and the rerouting of ducts, cables, and utilities a complex undertaking. Execution activities are frequently carried out in proximity to live, high temperature equipment, demanding stringent safety controls and coordinated planning. Integrating new systems
with aging control architectures, instrumentation networks, and mechanical interfaces introduces further technical complexity.
Even minor disturbances during execution can adversely impact kiln draft control, cyclone separation efficiency and grinding system stability, requiring continuous coordination between execution teams and operations. The involvement of multiple contractors in confined working zones raises supervisory and interface management requirements, while temporary emission variations during tie in activities heighten environmental compliance obligations.
Ultimately, the core challenge lies in delivering modernisation initiatives that enhance plant efficiency and sustainability, while fully maintaining production performance and operational reliability.

How is modernisation reshaping workforce skills, safety standards, and day-to-day plant management practices?
Modernisation is significantly reshaping workforce skills, safety standards, and day to day plant management at Shree Cement, driving a shift toward more advanced, data centric and safety focused operations. With increasing adoption of digital tools, automated control systems, and high efficiency equipment, workforce capabilities are evolving from conventional plant operation to expertise in analytics, digital monitoring, remote diagnostics, and predictive maintenance. Training now emphasises technical upskilling, process optimisation and multi-disciplinary knowledge, enabling teams to operate more intelligent and interconnected systems.
Safety standards have also strengthened, supported by automation, continuous monitoring, and digitised safety management systems. Real time alerts, automated interlocks, safety by design equipment and digital permit to work systems are reducing manual exposure and enhancing overall workplace safety.
In day-to-day management, operations are becoming more proactive and technology driven. Supervisors and CCR teams increasingly rely on dashboards, performance analytics, and AI assisted insights to make faster, data backed decisions. Routine activities, such as equipment inspections, energy tracking, and process audits, are now supported by mobile apps, digital logs, and online reporting platforms, improving accuracy and accountability.
Modernisation has therefore transformed Shree Cement’s plants into more efficient, safer and knowledge-driven workplaces, where employees operate with greater precision, stronger safety culture, and enhanced decision-making capabilities

In what ways are modernised plants contributing to lower carbon emissions and alignment with ESG commitments?
Modernised plants are significantly reducing carbon emissions and strengthening ESG alignment at Shree Cement. High efficiency kilns, advanced grinding systems, and upgraded fans have lowered specific power and heat consumption, directly cutting CO2 intensity. Improved AFR feeding and combustion technologies enable higher alternative fuel usage, reducing reliance on fossil fuels.
WHRS expansions further convert waste heat into clean power, shrinking the overall carbon footprint. Digital tools, such as real time emissions monitoring and AI based process control, ensure continuous compliance with environmental norms. Through these modern upgrades, Shree Cement is advancing towards a more energy efficient, low carbon, and ESG aligned manufacturing ecosystem.

What role do partnerships with technology providers play in ensuring long-term efficiency and future readiness of your plants?
Partnerships with technology providers are critical for securing long term efficiency and future readiness in modern cement plants. Such collaborations enable access to advanced automation systems, high efficiency equipment, and data driven optimisation platforms that enhance reliability, reduce energy consumption, and strengthen process control.
Technology partners also contribute through specialised training, remote diagnostics, and performance benchmarking, ensuring that operational teams remain aligned with evolving industry standards and sustainability expectations. Examples include high efficiency grinding technologies, intelligent process control systems, real time emissions monitoring and predictive maintenance platforms.
Modernisation at Shree Cement is centred on real time, data driven operations that enhance efficiency, reliability and sustainability. With advanced automation, integrated digital platforms and intelligent controls across our plants, decision making has become faster, more accurate and predictive. These technologies stabilise core processes, improve safety and reduce energy intensity, enabling a smarter and more resilient manufacturing ecosystem that is ready for the industry’s future demands.

  • Kanika Mathur

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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Concrete

Nuvoco Inaugurates Limla Cement Plant in Surat

Acquisition boosts Western India cement capacity

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Nuvoco Vistas Corporation Limited inaugurated the Limla Cement Plant in Surat, Gujarat, marking a key milestone in its acquisition and revival of Vadraj Cement Limited.

The company completed the acquisition of Vadraj, which had been undergoing a corporate insolvency resolution process, by discharging a consideration of Rs 18 billion (bn) in June 2025. Vadraj’s asset base includes a clinker unit at Kutch and a grinding unit at Limla, along with high quality captive limestone reserves and a captive jetty at Kutch that enhance logistics efficiency.

Since taking over the assets, Nuvoco has undertaken revival, refurbishment and expansion across both sites, culminating in the opening of the Limla facility. The grinding unit at Limla achieved project completion ahead of schedule with the commissioning of two million tonnes per annum (mn t per annum) grinding capacity, further expanding the company’s scale and market reach.

Upon full operationalisation of the Vadraj assets, nearly 40 per cent of Nuvoco’s total cement capacity will be accounted for by plants in the North and West regions, supporting improved access to high growth markets. The plant is expected to support a phased volume ramp up in Gujarat and to serve adjoining markets in western Maharashtra while releasing northern capacities for other markets.

It will produce a complete portfolio of cement products including Ordinary Portland Cement, Portland Slag Cement, Portland Pozzolana Cement and Portland Composite Cement, and will offer the Duraguard range including the premium Duraguard Microfibre. The transaction is set to create synergies with Nuvoco’s existing manufacturing facilities at Nimbol and Chittorgarh, strengthening logistics optimisation and market access across key regions.

Nuvoco reported total income of Rs 113.62 billion (bn) in FY 2025-26 and stated it is on track to consolidate total cement capacity to 35 million tonnes per annum (mn t per annum) by FY2028. The company operates across cement, ready-mix concrete and modern building materials segments and highlighted a pan-India ready-mix presence alongside contributions to major infrastructure projects. Corporate communications contact details were provided by the company.

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