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Lubricants: A Strategic Lever in Manufacturing

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Professor Procyon Mukherjee discusses why Indian cement plants need to rethink lubrication as a technology and a long-term investment.

In most cement companies, discussions on competitiveness begin with market share, capacity expansion, fuel cost or logistics efficiency. Lubricants rarely receive the same strategic attention. They are typically classified as maintenance consumables-important, but operationally routine. Yet across the cement industry, that perception is changing rapidly. In plants where reliability and energy efficiency increasingly define profitability, lubrication is becoming a strategic lever.
The shift is happening because cement manufacturing today operates under greater pressure than ever before. Plants are expected to run continuously with tighter maintenance windows. Energy intensity remains under scrutiny. Alternative fuels and waste heat recovery are altering operating conditions. Digital automation has increased responsiveness-but also introduced more dynamic equipment behaviour. Under these conditions, the lubricant inside a gearbox or motor is no longer passive. It becomes part of how the machine performs.
The strongest cement companies have already recognised this.
At UltraTech Cement, one of the largest cement producers in the world, operational discipline around plant reliability increasingly emphasises standardised maintenance systems across a geographically dispersed network. That matters because a lubricant decision made in one plant affects maintenance reliability, inventory consistency and performance benchmarking across dozens of operating units. Standardisation of lubrication practices-particularly around critical equipment such as kiln drives, mill gearboxes and large fan motors-creates not only maintenance stability but also procurement leverage and data consistency. In a large network, lubrication becomes part of enterprise operating discipline.
The lesson is broader than one company. Scale changes lubrication economics. As cement groups expand across multiple plants, lubrication strategy becomes inseparable from operational governance.

Why lubrication has become central to reliability
The most expensive equipment failures in cement rarely begin dramatically. They begin with small deviations: rising gearbox temperature, lubricant contamination, bearing vibration or a motor drawing slightly more current than normal. The equipment continues to run, production remains stable and the early signs are often easy to overlook. Then weeks later a bearing fails, a reducer overheats or a kiln gearbox requires an emergency shutdown.
That pattern has pushed leading companies toward more disciplined reliability strategies.
Shree Cement has long been recognised in the Indian industry for operational efficiency and disciplined cost management. One reason is that highly efficient cement operations typically treat rotating equipment reliability as a plant-level performance variable, not simply a maintenance issue. In high-utilisation plants, kiln and grinding assets are pushed hard. Lubrication therefore directly influences uptime and energy efficiency. Even marginal reductions in friction or wear can improve equipment life while lowering electrical load.
That insight is increasingly important with vertical roller mills and digitally controlled drives. Unlike older systems with relatively steady operating patterns, newer equipment experiences dynamic torque changes and variable load profiles. Lubricants must respond consistently under fluctuating thermal and mechanical conditions. The technical requirement is higher than it used to be.
The lubricant is not simply reducing friction. It is stabilising performance under variability.

Procurement: The technicality of lubricant sourcing
The procurement implications are becoming equally important.
Traditionally, lubricant purchasing often followed a conventional sourcing model: negotiate annual contracts, standardise product grades and optimise price. That logic is still relevant but no longer sufficient. In a cement plant, a lower-cost lubricant that reduces purchase spend may increase oil replacement frequency, raise wear rates or contribute to avoidable downtime.
That trade-off is forcing procurement teams to think differently.
At Holcim, one of the clearest operational themes over the last decade has been lifecycle asset productivity combined with sustainability. In that model, lubricants are increasingly evaluated through the lens of total equipment effectiveness rather than only purchase cost. A lubricant that improves equipment reliability, extends service intervals and lowers energy draw may create more value than a lower-cost alternative.
The same logic is becoming relevant in India.
Procurement leaders are beginning to ask different questions: Which lubricants reduce lifecycle maintenance cost? Which suppliers can support oil analytics and technical advisory? Which lubricant platforms create plant-wide standardisation? Which products improve reliability in harsh dust-heavy operating environments?
The answer increasingly depends on technical capability rather than price alone. That marks
a significant shift from commodity sourcing to
strategic sourcing.

Innovation in lubrication
The lubricant market itself is changing.
Synthetic oils designed for high-load industrial gearboxes are delivering longer drain intervals and better thermal stability. Greases engineered for extreme temperature applications are improving motor reliability. Centralised lubrication systems are reducing dependence on manual greasing. Digital dispensing systems are improving consistency.
Some of the most advanced cement groups are pairing these technologies with automation.
Heidelberg Materials has consistently emphasised digital asset management and operational efficiency across heavy industrial assets. In that environment, lubrication increasingly works alongside equipment monitoring systems rather than as a standalone maintenance practice. Oil condition and equipment performance are treated as connected data streams.
That combination is becoming increasingly relevant in India as cement plants modernise. A lubrication programme that is disconnected from maintenance analytics is becoming less effective than one integrated with condition monitoring.
In other words, lubrication technology is becoming digital.

Predictive maintenance may be the biggest shift of all
For decades, lubrication in heavy industry followed a calendar. Oil was changed at fixed intervals. Bearings were greased according to schedule. Equipment was serviced periodically.
Predictive maintenance changes that model. Instead of relying only on time-based intervals, leading plants increasingly monitor condition continuously. They combine vibration signals, thermography, lubricant analysis and machine history to identify abnormal patterns early.
A particularly instructive example comes from CEMEX, which has invested heavily in digital operations and predictive maintenance across industrial assets globally. The operational principle is powerful: identify machine deterioration early enough that intervention becomes planned rather than reactive.

Lubricants become central to that approach.
Oil analysis can reveal microscopic wear particles before mechanical damage becomes visible. Contamination patterns can identify seal failure. Grease degradation can signal overheating. Combined with vibration monitoring, the lubricant becomes an operating-data source.
That fundamentally changes the economics.Instead of lubrication being an expense after procurement, it becomes part of operational intelligence. And for cement, operational intelligence matters. A kiln stoppage affects production, fuel planning, dispatch scheduling and customer commitments simultaneously. Preventing one major failure often creates more value than months of conventional cost optimisation.

Sustainability strategy begins with equipment reliability
Cement companies are also under growing pressure to improve sustainability. The conversation often focuses on emissions, fuel mix or clinker substitution. But lubrication plays an indirect-and meaningful-role. Longer lubricant life reduces waste disposal. Better friction control improves energy efficiency. Better contamination control extends equipment life and lowers replacement frequency. Predictive maintenance reduces emergency shutdowns and material waste.
Many global leaders are integrating reliability and sustainability into a single operational framework. That matters because energy efficiency and reliability are increasingly linked. A well-lubricated motor or gearbox typically operates more efficiently than one under stress. Small gains multiplied across grinding systems, fans and conveyors become economically significant.
The result is a quieter but important transformation: lubrication contributing to both profitability
and sustainability.

Improving the systems
A useful pattern emerges from leading cement companies globally and in India. They are not treating lubricants as background maintenance inventory. They are treating lubrication as part of a broader operating system-linked to reliability engineering, sourcing discipline, digital monitoring and sustainability performance.
The companies doing this well tend to share several characteristics. They standardise critical lubricant platforms across plants. They align procurement and maintenance decisions. They use oil and grease condition as part of predictive maintenance. They partner with suppliers not just for product delivery but for technical expertise. They measure lubricant decisions against uptime and lifecycle cost rather than price alone. This approach is becoming increasingly relevant in India’s cement industry, where operational competitiveness depends on extracting more performance from every asset.

Strategic implications
The future of cement manufacturing will undoubtedly involve automation, digital operations and more sophisticated process control. But the productivity of those investments still depends on physical equipment running reliably every day, which brings the focus back to gears, drives and motors, and increasingly, back to lubricants.
What was once viewed as a maintenance consumable is becoming a technical capability.
It influences reliability. It affects energy efficiency. It strengthens predictive maintenance. It supports sustainability. It shapes sourcing strategy.
The lubricant may remain physically invisible inside the gearbox or motor. Its business impact, however, is becoming increasingly visible in the competitiveness of the cement plant. Companies recognising this early are quietly building a stronger operational advantage.

About the author
Professor Procyon Mukherjee, ex-CPO Lafarge-Holcim India, ex-President Hindalco, ex-VP Supply Chain Novelis Europe, has been an industry leader in logistics, procurement, operations and supply chain management. His career spans 38 years starting from Philips, Alcan Inc (Indian Aluminum Company), Hindalco, Novelis and Holcim. He authored the book, ‘The Search for Value in Supply Chains’. He serves now as Visiting Professor in SP Jain Global, SIOM and as the Adjunct Professor at SBUP.

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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