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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 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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