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Powering Cement’s 700 MTPA Vision

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Milind Khangan explains how India’s cement industry is transforming material handling into a strategic backbone through Automation, AFR integration, and Advanced Analytics.

India’s cement industry, the world’s second-largest with an installed capacity approaching 700 million tonnes per annum (MTPA), lies at the core of the nation’s infrastructure expansion, urbanisation and Net-Zero transition. Yet, while kilns, fuels and clinker chemistry often dominate decarbonisation discussions, it is Material Handling (MH), the movement, storage and flow of raw materials, clinker, fuels and cement, that ultimately determines whether plants meet their designed efficiencies or face chronic operational bottlenecks.
Currently, as of 2026, material handling has evolved from the background utility to a strategic productivity system, which has been achieved through the use of long-distance conveying, automated yards, AFR logistics, as well as the use of digitised dispatch. The sector’s transformation can be framed through the 3As of Modern Material Handling: Automation, AFR Integration and Advanced Analytics. Together, they form a structured pathway to enhance throughput, stabilise pyro-system performance, improve energy efficiency and reduce emissions while strengthening plant competitiveness in a carbon-conscious market.

Automation: strengthening the primary flow
The first pillar, Automation, focuses on high-impact mechanical and control interventions across the value chain. With unplanned downtime costing Tier-1 integrated plants between 15 and 20 lakhs per hour, the reliability of conveyors, elevators, reclaimers and pneumatic systems is now a core operational and financial priority.

Long-distance conveying and curved systems
Quarries have been advancing into the captive mining areas, which has led to the use of curved conveying systems as a replacement to the traditional use of diesel, thus reducing the environmental impact as well as the costs of haulage.
• Pipe conveyors offer a completely enclosed system, which means there will be no spillage of materials, thus offering a complete dust suppression system.
• Permanent Magnet Motor drives offer an 8 to 12 percent electrical cost savings as opposed to the use of induction motors.
• During FY25 and FY26, multiple producers in Rajasthan and Andhra Pradesh commissioned 10 to 15 km pipe conveyor networks to stabilise raw material transport and reduce Scope 1 emissions.

High-efficiency vertical transport
Vertical movement of kiln feed and clinker, historically prone to mechanical failure, has undergone significant modernisation.
• Steel-cord belt bucket elevators now achieve lift heights above 120 metres and capacities of up to 1,500 tonnes per hour.
• Drift and speed monitoring systems detect misalignment instantly, improving uptime and reducing maintenance requirements by approximately 25 percent compared to chain elevators.
• These elevators are now widely adopted for 10,000 tonnes per day pyro lines.

Advanced stacker reclaimer platforms
Modern stockyards are equipped with automated homogenisation and reclaiming systems that directly influence raw mix quality.
• Precision stacking has reduced Lime Saturation Factor variance to below 3 percent, improving kiln stability.
• Bridge-type reclaimer offers uniform extraction of materials, thus preventing feed shocks.
• Moisture as well as bulk density sensors offer the ability to correct feed rate in real time.

Pneumatic conveying and fine-material handling
Efficient and enclosed handling of fine materials such as cement, fly ash and slag requires modern pneumatic conveying.
• Optimised air-to-material ratios reduce energy consumption by 10 to 15 percent.
• Closed-loop conveying reduces dust loading and enhances bag filter performance.
• Flow-regulated lines prevent clogging and ensure dispatch reliability.

Automation therefore delivers immediate benefits, including improved uptime, lower energy use, reduced spillage and more stable kiln and mill performance.

AFR integration: logistics of the green pivot
India’s 25 per cent to 30 per cent Thermal Substitution Rate (TSR) target for 2030 makes Alternative Fuels and Raw Materials (AFR) logistics a central design requirement for modern cement plants. AFR streams often have low density, high moisture, variable particle size and bridging tendencies, which require dedicated engineering solutions.

Automated AFR receiving to calciner circuits
Modern AFR yards employ enclosed, mechanised and automated systems to eliminate manual exposure and stabilise feeding.
• Walking-floor unloading, mechanical dischargers and screw weigh-feeders maintain dosing accuracy within plus or minus 1 percent.
• Dust-controlled pre-processing lines, including drying, shredding and homogenisation, improve fuel consistency.
• Indian majors recorded 2 to 3 percent TSR improvements in FY26 after implementing automated AFR lines.

RDF, biomass and municipal waste handling
RDF and biomass materials require special treatment due to the variable moisture content and density.
• Flow activators and vertical agitators are used to prevent bridging in silos and hoppers.
• Homogenisation equipment is used to control calorific values and moisture content.
• Accurate weighing and dosing prevent calciner temperature shocks and support stable combustion.


Liquid and Hazardous Waste Management
Industrial liquids and hazardous wastes must have closed and compliant systems to ensure the safe management of the wastes.
• Nitrogen-blanketed storage tanks reduce vapour-related hazards.
• High-density sludge pumps allow controlled and leak-free transfer.
• Hermetically sealed metering systems comply with CPCB and SPCB guidelines.

Cement as a circular economy partner
Material handling capability now positions cement plants as regional waste utilisation hubs.
• Urban-industrial partnerships support reliable RDF supply chains.
• Centralised AFR hubs are emerging across high-production corridors.
• Co-processing minimises the use of landfills and meets national circularity goals.


AFR integration therefore provides dual
value by reducing fossil fuel consumption and expanding the cement sector’s role in India’s waste management framework.

Advanced analytics: the digital twin of material handling
Advanced Analytics signifies a shift from traditional practices to predictive and model-driven material handling processes. In 2026, the use of digital twin technology, IoT-based diagnostics, and AI or ML-based optimisation tools has become an essential part of a modern cement plant.

AI-driven predictive maintenance
Digital diagnostics of material handling equipment have led to a shift from reactive to predictive maintenance.
• Vibration and acoustic analysis can now predict critical failures 10-15 days in advance.
• Machine learning-based alignment monitoring minimises belt tears and plant downtime.
• Closed-loop AI models help stabilise kiln feed, reducing specific heat consumption by 3 to 5 percent.

Packing, Dispatch and Inventory Automation
The packaging and dispatch stage has become one of the most heavily digitalised parts of MH.
• Rotary packers with capacities up to 4,000 bags per hour improve throughput.
• Robotic palletisers minimise human intervention, resulting in fewer packaging errors.
• Truck loading machines minimise the time taken for trucks by 35-40 percent.
• RFID-based bag tracking systems, integrated with the weigh bridges, make the dispatch process 100 percent accurate.

Centralised Command Centres and Digital Twins
Integrated digital control rooms have begun to manage material handling operations from the mine to the market.
• Digital twins may be used to model belt loading, reclaim operations, AFR flows, and silo levels.
• Unified dashboards can be used to integrate conveyor health, yard inventory, and dispatch performance.
• Predictive scheduling and sequencing may be used to de-congest the system and improve stability.
Advanced analytics may take material handling from a reactive maintenance task to a strategic intelligence layer of the overall plant.

Policy and financial levers: Carbon market momentum
The Carbon Credit Trading Scheme (CCTS), launched in mid-2025, has helped to increase the pace of investments in modern MH systems.
• The Bureau of Energy Efficiency stipulates the reduction of GHG Emission Intensity by 2 percent for cement plants during FY25 to FY26.
• Electrified MH systems, solar-powered conveyor galleries, PMM-based drives, and AFR infrastructure qualify for carbon credits.
• Increasing the use of renewable-based MH systems can lead to greater Scope 2 reductions and improve carbon compliance.
With the development and evolution of the carbon market, MH systems offer the benefits of both operational ROI and regulatory benefits.

Conclusion
Material handling, which for decades played second fiddle to pyroprocessing, has emerged as a key driver of not only competitiveness but also sustainability and reliability in India’s cement industry. The three as of material handling provide a clear roadmap for scaling up improvements in:
• Increase reliability and throughput
• Reduce energy consumption
• Enable higher TSR levels
• Strengthen predictive and digital control
• Improve safety and ESG performance
• Reduce lifecycle and maintenance costs
As India prepares for a decade of infrastructure growth and circularity, the material handling systems implemented currently will be the benchmark for the next many decades. Scaling up these innovations from pilot projects to full-scale implementation is critical for India’s cement industry to reach its target of 700 MTPA and establish itself as a benchmark for modern material handling excellence.

About the author:
Milind Khangan, Marketing Head, Vertex Market Research & Consulting holds over 5 years of experience in market research, lead generation, and team management.

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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