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Operational Excellence Redefined!

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Operational excellence in cement is no longer about producing more—it is about producing smarter, cleaner and more reliably, where cost per tonne meets carbon per tonne.

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 Optimization, 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 very 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 XRF and XRD 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… 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 tell the garbage.” 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, 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 ton will matter as much as cost per ton,” says Dr Hegde. Vokuda echoes it: the industry will shift from optimising cost per tonne to carbon per ton.

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 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.

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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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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