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Synthetic lubricants have become a strategic choice

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Dr SB Hegde, Professor, Jain College of Engineering, India, and Visiting Professor, Pennsylvania State University, USA, makes a compelling case that lubrication is the most undervalued lever for energy efficiency and profitability.

In a sector where one hour of unplanned kiln stoppage can cost up to `22 lakhs and bearing failures in vertical roller mills run into crores, the conversation around plant performance rarely begins with lubrication. Industry expert Dr SB Hegde brings an academic rigour to a subject that most plant managers treat as routine maintenance and not as a strategic investment. He outlines how synthetic lubricants, predictive maintenance and OEM collaboration can together deliver returns.

How critical is lubrication strategy in ensuring reliability and productivity in modern cement plants?
Lubrication strategy is the backbone of reliability and productivity in modern cement plants. While lubricants account for only two to three per cent of total operating costs, poor lubrication is responsible for up to 70 per cent of maintenance problems, equipment failures and unplanned downtime.
Leading global cement plants achieve 85 per cent + Overall Equipment Effectiveness (OEE) largely due to disciplined lubrication management. High performance synthetic lubricants deliver proven 2 to 6.5 per cent energy savings (typically three to four per cent) in critical equipment such as kiln rollers, vertical roller mills (VRM), ball mill gearboxes and crushers. In India, this translates to 8-15 crore annual savings per 1 MTPA plant, or80-150 per tonnes of cement, with payback in 6-12 months.
With 160-170 million tonnes of new capacity expected by FY28 and many plants still operating at 65 per cent to 68 per cent OEE, a strong lubrication strategy has become a strategic necessity. It is not a routine maintenance activity, it is a high return investment that directly improves reliability, productivity
and sustainability.

What is the biggest lubrication related challenges faced by the Indian cement industry today?
The Indian cement industry operates under some of the harshest lubrication conditions in the
world, extreme dust, high temperatures (100-140°C), heavy shock loads, and continuous 24/7 operation. The most serious challenge is severe dust contamination, responsible for nearly 36 per cent of bearing failures. A major bearing failure in a VRM or kiln can cost 2-3.5 crore. Other key issues include incorrect lubricant selection, inconsistent greasing practices and cost perception of specialty lubricants. One hour of unplanned kiln stoppage due to lubrication failure can cost8-22 lakhs.
These challenges push maintenance costs to 15 to 25 per cent of total production cost and can cause annual losses of `8-15 crore or more for a one MTPA plant. Addressing them through proper lubricant selection, contamination control and condition monitoring is now critical.

How can advanced lubricants contribute to energy efficiency and sustainability in cement manufacturing?
Advanced synthetic and high-performance lubricants are among the most practical and effective tools for improving energy efficiency and sustainability in cement manufacturing. They reduce friction and operating temperatures, delivering 2-6.5 per cent energy savings (typically three to four per cent).
In India, this results in 8-15 crore annual savings per 1 MTPA plant (80-150 per ton), with payback in 6-12 months. A three to four per cent energy reduction also lowers CO2 emissions by 2-4 kg per tonne of cement. For a one MTPA plant, this equals
2,000-4,000 tonnes of CO2 reduction annually,
generating carbon credit revenue of `0.16-1 crore under India’s CCTS.
Additionally, they extend drain intervals 3-5 times and reduce lubricant consumption by 15 per cent to 30 per cent. With new capacity additions and stricter emission norms, advanced lubricants offer an excellent combination of profitability and environmental performance.

What role does predictive maintenance and oil condition monitoring play in reducing plant downtime?
Predictive maintenance (PdM) and oil condition monitoring are game changers for reducing unplanned downtime. They shift maintenance from reactive to proactive by detecting issues early through oil analysis, vibration and temperature data.
These technologies can reduce unplanned downtime by up to 50 per cent and improve uptime by 10 to 20 per cent. In one documented case, a cement plant achieved 57× ROI within six months, generating savings of over 8.4 crore and preventing a major failure that would have caused more than 160 hours of downtime. For Indian plants, where one hour of kiln stoppage costs8-22 lakhs, PdM typically delivers 25 per cent lower maintenance costs, 20 to 40 per cent longer equipment life, and payback in three-six months. It has become essential for achieving high reliability in the rapidly expanding cement industry.

How are synthetic and specialty lubricants transforming the performance of heavy cement equipment?
Synthetic and specialty lubricants are significantly transforming the performance of heavy cement
equipment by providing superior protection under extreme conditions of high temperature, shock loads, dust and continuous operation.
They deliver three-seven times longer component life, 2 to 6.5 per cent energy savings, and 15-25°C lower operating temperatures. Modern solutions such as PAO based synthetic gear oils (ISO VG 320-460), high-temperature synthetic greases, and advanced open gear compounds also provide three-five times longer drain intervals and 15 to 30 per cent lower lubricant consumption. In the Indian context, these improvements translate into `8-15 crore annual savings per one MTPA plant. As the industry adds large new capacity, synthetic and specialty lubricants have become a strategic choice for higher reliability and lower total cost of ownership.

How important is lubrication management in extending the lifecycle of critical plant machinery?
Lubrication management is extremely important and one of the most effective ways to extend the lifecycle of critical cement plant machinery. Properly implemented, it can increase equipment life by 20 to 50 per cent or more.
Since nearly 70 per cent of failures in bearings, gearboxes and rollers are lubrication related, disciplined practices such as right lubricant, correct quantity, contamination control and monitoring, can help deliver substantial benefits. For a typical one
MTPA plant, good lubrication management can save 6-12 crore annually through reduced replacements and downtime. In my view, lubrication management is not a routine maintenance task but a strategic practice that directly determines long term asset performance, reliability and profitability. How can collaboration between lubricant companies, OEMs and cement manufacturers drive operational excellence? Collaboration between lubricant companies, OEMs and cement manufacturers is a powerful driver of operational excellence. It combines equipment design knowledge, lubricant technology and practical plant experience to deliver superior results. Such partnerships help develop tailor-made solutions, integrate automatic lubrication systems with predictive monitoring, and accelerate innovation in energy efficient products. One such collaboration delivered 57x ROI in six months with savings exceeding8.4 crore.
With 160-170 million tonnes of new capacity expected by FY28, these collaborations are essential for achieving world class reliability, lower operating costs, and stronger sustainability performance. Cement manufacturers who actively engage in such partnerships will gain a clear competitive advantage.

  • Kanika Mathur

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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