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Operational Excellence Redefined!

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Operational excellence in cement is about producing smarter, cleaner and more reliably, where cost per tonne meets carbon per tonne. Industry experts weigh in on achieving sustainability through operational efficiency.

Operational excellence in cement has moved far beyond the old pursuit of ‘more tonne’. The new benchmark is smarter, cleaner, more reliable production, delivered with discipline across process, people and data. In an industry where energy can account for nearly 30 per cent of manufacturing cost, even marginal gains translate into meaningful value. As Dr SB Hegde, Professor, Jain College of Engineering & Technology, Hubli and Visiting Professor, Pennsylvania State University, USA, puts it, “Operational excellence is no longer about producing more. It is about producing smarter, cleaner, more reliably, and more sustainably.” The shift is structural: carbon per tonne will increasingly matter as much as cost per tonne, and competitiveness will be defined by the ability to stabilise operations while steadily lowering emissions.

From control rooms to command centres
The modern cement plant is no longer a handful of loops watched by a few operators. Control rooms have evolved from a few hundred signals to thousands—today, up to 25,000 signals can compete for attention. Dr Rizwan Sabjan, Head – Global Sales and Proposals, Process Control and Optimisation, Fuller Technologies, frames the core problem plainly: plants have added WHRS circuits, alternative fuels, higher line capacities and tighter quality expectations, but human attention remains finite. “It is quite impossible for an operator to operate the plant with so many things being added,” he says. “We need somebody who can operate 24×7 without any tiredness, without any distraction. The software can do that for us better.”
This is where advanced process control shifts from ‘automation spend’ to a financial lever. Dr Hegde underlines the logic: “Automation is not a technology expense. It is a financial strategy.” In large kilns, a one per cent improvement is not incremental, it is compounding.

Stability is the new productivity
At the heart of operational excellence lies stability. Not because stability is comfortable, but because it is profitable, and increasingly, low-carbon. When setpoints drift and operators chase variability, costs hide in refractory damage, thermal shocks, stop-start losses and quality swings. Dr Sabjan argues that algorithmic control can absorb process disturbances faster than any operator, acting as ‘a co-pilot or an autopilot’, making changes ‘as quick as possible’ rather than waiting for manual intervention. The result is not just fuel saving; it is steadier operation that extends refractory life and reduces avoidable downtime.
The pay-off can be seen through the lens of variability: manual operation often amplifies swings, while closed-loop optimisation tightens control. As Dr Sabjan notes, “It’s not only about savings, there are many indirect benefits, like increasing the refractory life, because we are avoiding the thermal shocks.”

Quality control
If stability is the base, quality is the multiplier. A high-capacity plant can dispatch enormous volumes daily, and quality cannot be a periodic check, it must be continuous. Yet, as Dr Sabjan points out, the biggest error is not in analysis equipment but upstream: “80 per cent of the error is happening at the sampling level.” If sampling is inconsistent, even the best X-ray Diffraction (XRD) and X-ray Fluorescence (XRF) become expensive spectators.
Automation closes the loop by standardising sample collection, transport, preparation, analysis and corrective action. “We do invest a lot of money on analytical equipment like XRD and XRF, but if it is not put on the closed loop then there’s no use of it,” he says, because results become person-dependent and slow.
Raju Ramachandran, Chief Manufacturing Officer (East), Nuvoco Vistas Corp, reinforces the operational impact from the plant floor: “There’s a stark difference in what a RoboLab does ensuring that the consistent quality is there. It starts right from the sample collection.” For him, automation is not about removing people; it is about making outcomes repeatable.

Human-centric automation
One of the biggest barriers to performance is not hardware, it is fear. Dr Sabjan describes a persistent concern that digital tools exist to replace operators. “That’s not the way,” he says. “The technology is here to help operator, not to replace them but to complement them.” The plants that realise this early tend to sustain performance because adoption becomes collaborative rather than forced.
Dr Hegde adds an important caveat: tools can mislead without competence. “If you don’t have the knowledge about the data, this will mislead you. It is like using ChatGPT. It may give you flawed output.” His point is not anti-technology; it is pro-capability. Operational excellence now requires multidisciplinary teams—process, chemistry, physics, automation and reliability—working as one.
GS Daga, Managing Director, SecMec Consultants, takes the argument further, warning that the technology curve can outpace human readiness: “Our technology movement AI will move fast and our people will be lagging behind.” For him, the industry’s most urgent intervention is systematic skilling—paired with the environment to apply those skills. Without that, even high-end systems remain underutilised.

Digital energy management
Digital optimisation is no longer confined to pilots; its impact is increasingly quantifiable. Raghu Vokuda, Chief Digital Officer, JSW Cement, describes the outcomes in practical terms: reductions in specific power consumption ‘close to 3 per cent to 7 per cent’, improvements in process stability ‘10 per cent to 20 per cent’, and thermal energy reductions ‘2–5 per cent’. He also highlights value beyond the process line—demand optimisation through forecasting models can reduce peak charges, and optimisation of WHRS can deliver ‘1 per cent to 3 per cent’ efficiency gains.
What matters is the operating approach. Rather than patchwork point solutions, he advocates blueprinting a model digital plant across pillars—maintenance, quality, energy, process, people, safety and sustainability—and then scaling. The difference is governance: defined ownership of data, harmonised OT–IT integration, and dashboards designed for each decision layer—from shopfloor to plant head to network leadership.

Predictive maintenance
Reliability has become a boardroom priority because the cost of failure is blunt and immediate. Dr Hegde captures it crisply: “One day of kiln stoppage can cost several crores.” Predictive maintenance and condition monitoring change reliability from reaction to anticipation—provided plants invest in the right sensors and a holistic architecture.
Dr Sabjan stresses the need for ‘extra investment’ where existing instrumentation is insufficient—kiln shell monitoring, refractory monitoring and other critical measurements. The goal is early warning: “How to have those pre-warnings… where the failures are going to come and then ensure that the plant availability is high, the downtime is low.”
Ramachandran adds that IoT sensors are increasingly enabling early intervention—temperature rise in bearings, vibration patterns, motor and gearbox signals—moving from prediction to prescription. The operational advantage is not only fewer failures, but planned shutdowns: “Once the shutdown is planned in advance, you have lesser, unpredictable downtimes and overall, you gain on the productivity.”

Alternative fuels and raw materials
As decarbonisation tightens, alternative fuels and raw materials (AFR) becomes central—but scaling it is not simply a procurement decision. Vimal Kumar Jain, Technical Director, Heidelberg Cement, frames AFR as a structured programme built on three foundations: strong pre-processing infrastructure, consistent AFR quality, and a stable pyro process. “Only with the fundamentals in place can AFR be scaled safely—without compromising clinker quality or production stability.”
He also flags a ground reality: India’s AFR streams are often seasonal and variable. “In one season to another season, there is major change, high variation in the quality,” he says, making preprocessing capacity and quality discipline mandatory.
Ramachandran argues the sector also needs ecosystem support: a framework for AFR preprocessing ‘hand-in-hand’ between government and private players, so fuels arrive in forms that can be used efficiently and consistently.

Design and execution discipline
Operational excellence is increasingly determined upstream—by the choices made in concept, layout, technology selection, operability and maintainability. Jain puts it unambiguously: “Long term performance is largely decided before the plant is commissioned.” A disciplined design avoids bottlenecks that are expensive to fix later; disciplined execution ensures safe, smooth start-up with fewer issues.
He highlights an often-missed factor: continuity between project and operations teams. “When knowledge transfer is strong and ownership carries beyond commissioning, the plant stabilises much faster… and lifecycle costs reduce significantly.”

What will define the next decade
Across the value chain, the future benchmark is clear: carbon intensity. “Carbon per tonne will matter as much as cost per tonne,” says Dr Hegde. Vokuda echoes it: the industry will shift from optimising cost per tonne to carbon per tonne.
The pathway, however, is practical rather than idealistic—low-clinker and blended cements, higher thermal substitution, renewable power integration, WHRS scaling and tighter energy efficiency. Jain argues for policy realism: if blended cement can meet quality, why it shall not be allowed more widely, particularly in government projects, and why supplementary materials cannot be used more ambitiously where performance is proven.
At the same time, the sector must prepare for Carbon Capture, Utilisation, and Storage (CCUS) without waiting for it. Jain calls for CCUS readiness—designing plants so capture can be added later without disruptive retrofits—while acknowledging that large-scale rollout may take time as costs remain high.
Ultimately, operational excellence will belong to plants that integrate—not isolate—the levers: process stability, quality automation, structured AFR, predictive reliability, disciplined execution, secure digitalisation and continuous learning. As Dr Sabjan notes, success will not come from one department owning the change: “Everybody has to own it… then only… the results could be wonderful.”
And as Daga reminds the industry, the future will reward those who keep their feet on the ground while adopting the new: “I don’t buy technology for the sake of technology. It has to make a commercial sense.” In the next decade, that commercial sense will be written in two numbers—cost per tonne and carbon per tonne—delivered through stable, skilled and digitally disciplined operations.
(This article is based on the virtual panel discussion on “Driving Operational Excellence in Cement,” organised by Indian Cement Review, in association with Fuller Technologies, on Feb 26, 2026.)

Concrete

Shiva Cement Merges with JSW Cement

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JSW Cement has announced a scheme of arrangement to merge its listed subsidiary Shiva Cement with itself, creating a single unified cement platform. The boards of both companies have approved the proposal, which will require clearances from stock exchanges, the Securities and Exchange Board of India, the National Company Law Tribunal, Odisha Industrial Infrastructure Development Corporation and other applicable authorities.

The transaction is expected to be completed within 12 to 14 months, subject to the necessary approvals from regulators, shareholders and creditors. Under the scheme, JSW Cement will issue 5 equity shares with a face value of Rs. 10 each for every 41 equity shares with a face value of Rs. 2 each held by Shiva Cement shareholders other than JSW Cement.

The company said the merger would consolidate financial, managerial, technical, distribution and marketing resources while reducing administrative duplication and compliance requirements. It would also provide greater funding flexibility, potentially lower financing costs and eliminate inter-company guarantees.

The consolidation is expected to strengthen backward integration by enabling JSW Cement to use Shiva Cement’s clinker manufacturing facility. This would reduce dependence on external clinker procurement and improve supply-chain efficiency. Public shareholders of Shiva Cement would receive direct ownership in JSW Cement, which has a broader institutional investor base and a more liquid listed presence.

JSW Cement acquired a controlling stake in Shiva Cement through transactions that began in January 2017. Shiva Cement operates a clinker facility in Odisha, near the borders of Odisha, Chhattisgarh and Jharkhand, and commissioned a 1 mtpa cement grinding unit at Sambalpur in FY26 through a commercial arrangement with Bhushan Power and Steel.

JSW Cement has 24.10 mtpa of cement grinding capacity and 9.74 mtpa of clinkerisation capacity. Its Indian operations comprise nine plants, including two integrated units, one clinker unit and six grinding units. The proposed merger is intended to simplify the corporate structure and align the financial statements of the two companies.

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Concrete

UltraTech’s Kukurdih unit runs fully on green energy

The Chhattisgarh plant has met 100 per cent of its electricity needs through green energy since April 2026.

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UltraTech Cement’s Kukurdih Cement Works in Chhattisgarh has met 100 per cent of its electricity requirement through green energy every month since April 2026. Commissioned in 2024, the integrated cement manufacturing unit has an installed grey cement capacity of 3.3 million tonnes per annum.
The plant meets its electricity requirement through a combination of renewable power sourcing and Waste Heat Recovery Systems (WHRS). UltraTech said the combination enables the unit to meet its power needs through green energy while maintaining operational reliability.
Since April 2026, nearly a third of UltraTech’s 76 manufacturing units in India have maintained green energy utilisation above 50 per cent of their electricity requirement. Five units, including Kukurdih, have exceeded 95 per cent green energy utilisation.
The company is also progressively deploying Battery Energy Storage Systems (BESS) across its manufacturing network to support greater integration of renewable energy. UltraTech said it has not invested in new captive thermal power capacity at its integrated units, including greenfield projects and brownfield expansions, for more than 10 years.
As of Q1FY27, UltraTech’s captive green energy capacity stood at 1,897 MW, comprising 1,463 MW of renewable capacity from solar, wind and hybrid sources, and 434 MW of WHRS capacity.
Under its RE100 commitment, the company aims to increase the share of green power in its total power mix to 85 per cent by 2030 and 100 per cent by 2050.

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Concrete

Cement Prices Rise Rs. 7 per Bag in September; October Hikes Expected

Cement prices rose in September as companies weighed further increases.

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Cement companies may seek to raise prices by Rs. 5 to Rs. 20 per bag across most markets in October, although the ability to sustain the increases will depend on demand recovery and dealer acceptance, according to a report by Centrum Broking. The outlook follows a pickup in pricing momentum during September after largely stable prices in July and August.

The all-India average trade price increased by Rs. 7 per bag month-on-month to Rs. 356 in September. Centrum Broking’s channel checks indicated gains across both trade and non-trade segments, with non-trade prices recording sharper increases in most markets. However, higher company billing rates were not fully passed on to customers in several regions because dealers continued selling at earlier prices to meet quarter-end volume targets.

The brokerage said demand weakness in Q2FY27 was less pronounced than the usual seasonal trend, with construction activity improving in several markets towards the end of the quarter. Demand remained range-bound across several markets in July and August, while September produced mixed regional trends. Higher rainfall affected activity in some areas, whereas lower rainfall supported construction work elsewhere.

South India recorded the largest price increase in September, at Rs. 11 per bag, followed by West India at Rs. 9. Central, East and North India each reported increases of Rs. 5 per bag. Despite the September recovery, the average all-India trade price for Q2FY27 stood at Rs. 351 per bag, down Rs. 1 sequentially, as weaker pricing in July and August offset the later gains.

Centrum Broking said the success of any October increases would depend on the pace of demand recovery and dealers’ willingness to accept higher prices. Fuel prices have also risen sharply in recent weeks, making the implementation and sustainability of price increases a key factor for the cement industry’s pricing outlook.

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