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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 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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