Economy & Market

The Tale of Two Cement Giants

Published

8 years ago

October 31, 2017

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ACC and UltraTech have both surprised the market a massive topline in July-September 2017 quarter. ICR compares their financial results.

Although it has been a pessimistic quarter for the Indian cement industry as data show cement production fall year-on-year, that began in December 2016. However, August and September showed some resilience with negligible recovery in the production growth rate. The pessimism is also corroborated by Cement Manufacturers Association (CMA) stating that the industry was sitting on more than 100 MT a year of excess or idle capacity. Even, the credit ratings agency ICRA following the output data has downgraded its forecast for cement demand growth to not more than 4 per cent for the 2017-18 FY.

The Indian Cement Review (ICR), in its April issue, had predicted demand to expand just 3.6 per cent in FY18 assuming real GDP grow 8.5 per cent leading to 4 per cent increase in construction activity during the year. Considering that economy will grow at 8.50-9.00 per cent in the next five years, the statistical relation between cement demand and economic growth, the ICR had predicted cement demand to grow at an annual growth rate of 4 per cent over the next five years. However, the GDP growth seem to taper in Q1 2017-18 and would remain slower throughout the year.

The bar graph shows production peak in 2015-16 before falling as monthly production broke the trend in the 2016-17 while the line graph pinpoints the month it started to go wrong, November 2016, when the government demonetized high currency notes. Production growth turned negative the in December 2017 and could not managed to correct itself since then. Nevertheless, it is convenient to blame the policy for the production slump but the trough in February 2017 before taking a lower level of decline since then.

The Reserve Bank of India (RBI) annual report in August 2017 suggested that the policy failed in its primary purpose of reducing the kind of corruption that a cash heavy economy can hide such as tax avoidance. People reportedly managed to find ways to bypass the bank deposit limit and may have successfully laundered large amounts of cash without being caught. However, Financial Times have pointed out, the longer term implications of forcing the economy towards digital payments and increasing the tax base could yet be beneficial overall.

Coming back, the CMA’s blame of overcapacity for the current mess, it appears to have underplayed the capacity crisis facing India. UltraTech Cement’s number based on data from the Department of Industrial Policy and Promotion, show an overcapacity of 155 MT in 2016-17 and this is poised to blot to 157 tonne in 2017-18, even utilisation rate is expected to rise slightly. UltraTech’s estimates utilisation rate topping 70 per cent until the 2020-21 while Mint newspaper concur, although reckoning the rate would bounce sooner, in 2019-20. As CMA brought forth the industry’s excess capacity, it pinned outlook on infrastructure schemes like the Mumbai-Ahmedabad bullet train announced recently, This prompted JK Cements to point that one train project will not make much of a difference for demand to bounce back.

Infrastructure was one of the important factors for ICRA and the other credit agencies to forecast growth in cement demand and development then had indicated that industry may be able to narrow the gap between production capacity and demand. Unfortunately, demonetisation undid ICRA’s growth prediction for 2016-17.

It had predicted demand growth at 6 per cent but it turned out to be just 1.2 per cent. So downgrading forecast for 2017-18, on fears of weather and adverse impact of Goods and Services Tax (GST) beginning Q2, is valid. Major cement producers such as Ultratech and Ambuja Cement had based their road to recovery in their latest investor presentations on the 6 per cent growth or even higher. Being lower than expected and overcapacity gap not narrowing down, the hope now is pinned at a brisk business in second half of 2017-18.

Prospect still bright despite lean Q2 2017-18
During Q2 2017-18, characterise as lean season for cement consumption due to south-west monsoon, demand and pricing trends of cement was a mixed bag. But, a closer inspection suggests the recent past as well as future prospect are in good shape.

While prices in east and west India have surprised with year-on-year rise, it was not so in other regions. Hence, average all-India cement prices are pegged flat to up 3 per cent cent in Q2. But, if one were to factor in the 2-3 per cent reduction in the tax rates after implementation of GST, which is also reflected in the prices, the overall pricing trend is encouraging.

On demand, although monsoon was a factor impacting construction, sand availability, active government projects, etc., had a bearing on regional patterns. While north and east as well as Andhra Pradesh/ Telangana witnessed volume grow of 10 per cent y in Q2, largely driven by high execution of government projects, demand apparently declined in central and south, dragged by sand shortage in Uttar Pradesh and Tamil Nadu. Tamil Nadu and Kerala markets did not see much activity in government projects. Expectedly, central and south India saw major price impact. Before the announcement of Q2 results, HDFC Securities expected cement companies to post 13.4 per cent volume growth while Kotak Institutional Equities expected a lower volume growth of 6 per cent in cement volumes. With healthy volume growth and realisation, pan-India players like UltraTech and ACC, and those with larger exposure to east and west like Ambuja Cements and Shree Cement were expected to report better Q2 performance. Nevertheless, rising cost of fuels such as pet-coke and coal, would restrict any sharp increase in per tonne profitability in year on year comparison.

Beyond Q2, the prospect is positive, expert believe, for the cement companies anticipating a turnaround in demand in the second half of 2017-18, led by rural recovery even as the first six months may have seen the impact of the Real Estate (Regulation and Development) Act (RERA). JM Financial expect demand from the affordable housing and infrastructure segments to drive volume growth in the second half of the current fiscal year, while Centrum Broking indicated that cement demand should recover post monsoon and as the GST and RERA drag fades in the coming months and sand availability improves.

Experts also opine that with overall capacity expansion pace is slowing and with demand outpacing, cement manufacturers should benefit. Reliance Securities foresees incremental demand to outpace incremental supply, and, thus, better utilisation rate in the ensuing years. Factoring an average annual expansion in capacity of 8-10 MT, incremental demand is pegged at 15-20 MT over 2018-2020.

Performance analysis of top cement companies in Q2 2017-18
ACC and UltraTech Cement have both surprised the market a massive topline in July-September 2017 quarter. Prices have firmed supported by some rise in demand which was seen picking up in the north slightly in the west also, south has been lagging behind, signs in west and north are good price wise and volume wise. Infrastructure sector was picking up substantially implying healthy growth in the foreseeable future. Low-cost housing is slow to pick up and with the monsoons being good, rural demand is expected to pick up in January-February onwards.

UltraTech
UltraTech, the largest cement company with capacity of 89 million tonne per annum (85 mtpa in India), has presence in all the regions in India. In 2017-18, UlltraTech expanded its capacity by 25 per cent by acquiring 21.2 MT from Jaiprakash Associates. It also has 80 per cent stake in Dubai-based Star Cement.

Compared to market expectations, UltraTech has beaten consensus with great Set of numbers given the consolidation. Numbers are way ahead of consensus and beats street estimate by 21 per cent. Despite consolidation it has delivered Rs 1,000 EBITDA a tonne, which is termed com?mendable against the expectation of Rs 871 a tonne. Q over Q realisation improved 1 per cent.

UltraTech reported a 28 per cent decline in net profit (in standalone) to Rs 431 crore for the quarter ended September 2017. It had clocked net profit of Rs 601 crore in the July-September 2016. The company’s net sales were up 7.1 per cent at Rs 6,571 crore during Q2 2017-18 as against Rs 6,135 crore in same quartet the year-ago.

This quarter continued to witness increasing cost trends, attributable to increase in fuel price while total expenses were up 11 per cent at Rs 6,095 crore as against Rs 5,491 crore. Depreciation increased 59 per cent to Rs 499 crore while interest cost doubled to Rs 376 crore due to cost involving new cement plant acquisition. Meanwhile, EBITDA increased 24 per cent to Rs 1,350 crore, translating into EBITDA/tonne of Rs 1,028 and margin of 21 per cent.

The company stated that the acquisition of cement plants of Jaiprakash Associates and Jaypee Cement Corp had helped it augment capacity to 93 million ton per annum. The acquisition has also enhanced its footprint in the high growth markets of central India, eastern UP and coastal Andhra Pradesh, where the company has been focusing to increase its presence. Volumes for Q2 increased 18 per cent to 12.84 MT due to the ramp-up of JPA assets. Pricing improvement was better than expectation at Rs 5,001 a tonne due to firm prices across most focused markets.

Ambuja and ACC
According to Neeraj Akhoury, Managing Director and CEO, ACC, "results demonstrate its capacity to respond quickly and resolutely to changing market dynamics and execute strategies with focus and determination." ACC’s operating results has beaten consensus by 10 per cent against market expectation of 19 per cent. Volume grew 17.6 per cent YoY was higher against. consensus of 6 per cent. The cement giant has maintained control on its operating expenditure as anticipated. EBITDA was at Rs 592 a tonne, 12 per cent higher than expectations at Rs 527 a tonne.

Ambuja delivered a strong set of numbers while focusing on brand building, through differentiated offerings for individual home builders, building and infrastructure segments. According to Ajay Kapur, Managing Director and CEO, the company’s strategy to focus on key markets, premium products and value based pricing has paid off, leading to strong net sales and EBITDA growth.

During July-September 2017 quarter Ambuja Cement recorded higher sales and growth in value-added pricing, but it also faced cost pressures relating to rising fuel costs, packaging and raw material prices. Thus, there has been a move to increase its use of petcoke and alternative fuels further, as against 67 per cent it achieved in June 2017. Ambuja Cement’s net sales rose 16 to Rs 2,320 crore even as sales volume grew slower at 11.6 per cent to 5.02 MT. EBITDA per tonne rose 3 per cent to Rs 706.

Merger ambitions
Ambuja Cement has a 50.05 per cent share in ACC and the board of directors have initiated a study into the possibility of merger between the two companies. A national daily recently pointed that in a post-merger situation, the new entity would save about 10 per cent in operating expenses, especially with better logistics in terms of reaching relevant markets, manpower and taxes. The new entity will have a production capacity of 63 MT, making it the No. 2 player after UltraTech.

Ban on petcoke will increase cement cost
An Indian Supreme Court ruling to ban the use of petcoke in and around National Capital Region is likely to have adversely impact on cement plants and prices in northern India, as produces are expected to switch to higher-cost fuels. The ban impacts cement producers in Uttar Pradesh, Haryana, and Rajasthan, while all have districts falling under the NCR. These producers will be required to use either domestic or imported coal from November 1, 2017, resulting in an increase in power and fuels costs.

Petcoke is a key fuel for the Indian cement industry. Its usage ranges from 100 per cent of total fuel consumption at Shree Cement to 62 per cent at Ambuja Cements. Power and fuel costs vary from highs of Rs 852 a ton at Ambuja and Rs 856 a tonne at J.K. Cement to Rs 425 per tonne at Shree Cement. The petcoke ban could add an additional Rs 8-10 per tonne to fuel and power costs.

Cement to benefit in the coming years
The government has identified the construction and infrastructure as one of the key sectors that will help improve overall economic growth. Infrastructure projects in power, irrigation, roads, metros and railways, as well as dedicated freight and industrial corridors, are likely to generate strong demand for cement in the country. Furthermore, increased spending on affordable and low-cost housing coupled with the normal monsoon is expected to boost the rural economy which augurs well for the cement industry.

– Nitin Madkaikar

Concrete

The primary high-power applications are fans and mills

Published

2 weeks ago

October 10, 2025

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Alex Nazareth, Whole-time Director and CEO, Innomotics India, explains how plants can achieve both cost competitiveness and sustainability by lowering emissions, reducing downtime and planning for significant power savings.

As one of the most energy-intensive industries, cement manufacturing faces growing pressure to optimise power consumption, reduce emissions and improve operational reliability. Technology providers like Innomotics India are enabling this transformation by combining advanced motors, AI-driven digital solutions and intelligent monitoring systems that enhance process stability and reduce energy costs. From severe duty motors built for extreme kiln environments to DigiMine AI solutions that optimise pyro and mill operations, Alex Nazareth, Whole-time Director and CEO, Innomotics India, explains how the company is helping cement plants achieve measurable energy savings while moving closer to their sustainability goals.

How does your Energy Performance Contracting model typically reduce power consumption in cement plants—e.g., MWh saved?
Our artificial intelligence-based DigiMine AI Pyro and Mill solutions developed specifically for the cement industry, supports our customers in improving their process stability, productivity and process efficiency. In Pyro, this is achieved by optimising fuel consumption (Coal / AFR), reducing Specific Heat Consumption and reduction in emissions (CO2, SOx and NOx) through continuous monitoring of thermodynamics in pyro and recommending set-points of crucial parameters in advance for maintaining stable operations.
Within the mill, this is achieved by improving throughput, reduce energy / power consumption and maintaining stable operations on a continuous basis. Our ROI-based value proposition captures the project KPIs like reduction of coal usage, increase of AFR, reduction of specific heat consumption (Kcal / Kg), reduction of specific power consumption (KWH / tonne), reduction of emissions, etc., by a specific percentage. This gives clarity to our customers to understand the investment vis-à-vis savings and estimate the recovery time of their investment, which typically is achieved within one year of DigiMine AI Pyro and Mill solutions implementation.

What role do digitalisation and motor monitoring play in overall plant energy optimisation?
Motors are being used extensively in cement production, and their monitoring play crucial role in ensuring continuous operation of applications. The monitoring system can automatically generate alerts for any anomaly / abnormalities in motor parameters, which allows plant team to take corrective actions and avoid any major equipment damage and breakdown. The alerts help maintenance team to plan maintenance schedule and related activity efficiently. Centralised and organised data gives overview to the engineers for day-to-day activities. Cement is amongst the top energy intensive industries in comparison to other industries. Hence, it becomes critically important to optimise efficiency, productivity and up-time of plant equipment. Motor monitoring and digitalisation plays a vital role in it. Monitoring and control of multiple applications and areas
within the plant or multiple plants becomes possible with digitalisation.
Digitalisation adds a layer on top of OT systems, bringing machine and process data onto a single interface. This solves the challenges such as system silo, different communications protocol, databases and most importantly, creates a common definition and measurement to plant KPIs. Relevant stakeholders, such as engineers, head of departments and plant heads, can see accurate information, analyse it and make better decisions with appropriate timing. In doing so, plant teams can take proactive actions before machine breakdown, enable better coordination during maintenance activities while improving operational efficiency and productivity.
Further using latest technologies like Artificial Intelligence can even assist operators in running their plant with minimal requirement of human intervention, which allows operators to utilise their time in focusing on more critical topics like analysing data to identify further improvements in operation.

Which of your high-efficiency IEC low-voltage motors deliver the best energy savings for cement mills or fans?
Innomotics India offers a range of IEC-compliant low-voltage motors engineered to deliver superior performance and energy savings, particularly for applications such as cement mills, large fans, and blowers. Innomotics has the complete range of IE4 motors from 0.37kW to 1000kW to meet the demands of cement industry. The IE5 range is also available for specific requirements.

Can safe area motors operate safely and efficiently in cement kiln environments?
Yes, safe area motors are designed to operate reliably in these environments without the risk of overheating. These motors have ingress protection that prevents dust, moisture ingress and can withstand mechanical stress. These motors are available in IE3 / IE4 efficiency classes thereby ensuring lower energy consumption during continuous operation. These motors comply with relevant Indian as well as international standards.

How do your SD Severe Duty motors contribute to lower emissions and lower cost in heavy duty cement applications?
Severe duty motors enhances energy efficiency and durability in demanding cement applications, directly contributing to lower emissions and operational costs. With high-efficiency ratings (such as IE3 or better), they reduce power consumption, minimising CO2 output from energy use. Their robust design handles extreme heat, dust and vibration—common in cement environments—ensuring reliable performance and fewer energy losses.
These motors also lower the total cost of ownership by reducing downtime, maintenance and replacement frequency. Their extended service life and minimal performance degradation help cement plants meet sustainability targets, comply with emissions regulations and improve overall energy management—all while keeping production consistent and cost-effective.

What pump, fan or compressor drive upgrades have shown approximately 60 per cent energy savings in industrial settings and can be replicated in cement plants?
In the cement industry, the primary high-power applications are fans and mills. Among these, fans have the greatest potential for energy savings. Examples, the pre-heater fan, bag house fan, and cooler fans. When there are variations in airflow or the need to maintain a constant pressure in a process, using a variable speed drive (VSD) system is a more effective option for starting and controlling these fans. This adaptive approach can lead to significant energy savings. For instance, vanes and dampers can remain open while the variable frequency drive and motor system manage airflow regulation efficiently.

Concrete

We conduct regular internal energy audits

Published

2 weeks ago

October 10, 2025

admin

Shaping the future of low-carbon cement production involves integrating renewables, digitalisation and innovative technologies. Uma Suryam, SVP and Head Manufacturing – Northern Region, Nuvoco Vistas, gives us a detailed account of how.

In an industry where energy consumption can account for a significant portion of operating costs, cement manufacturers are under increasing pressure to adopt sustainable practices without compromising efficiency. Nuvoco Vistas has taken a decisive step in this direction, leveraging digitalisation, renewable energy and innovative technologies to drive energy efficiency across its operations. In this exclusive conversation, Uma Suryam, SVP and Head Manufacturing – Northern Region, Nuvoco Vistas, shares its approach to energy management, challenges of modernising brownfield plants and its long-term roadmap to align efficiency with India’s net-zero vision.

How has your company improved energy efficiency over the past five years?
Over the past five years, we have prioritised energy conservation by enhancing operational efficiency and scaling up renewable energy adoption. Through strategic fuel mix optimisation, deployment of cleaner technologies, and greater integration of renewables, we have steadily reduced our environmental footprint while meeting energy needs sustainably.
Technological upgrades across our plants have further strengthened efficiency. These include advanced process control systems, enhanced trend analysis, grinding media optimisation and the integration of solar-powered utilities. Importantly, grid integration at our key plants has delivered significant cost savings and streamlined energy management.
A notable milestone has been the expansion of our solar power capacity and Waste Heat Recovery Systems (WHRS). Our solar power capacity has grown from 1.5 MW in FY 2021–22 to 5.5 MW, while our WHRS capacity has increased from 44.7 MW to 49 MW, underscoring our commitment to sustainable energy solutions.

What technologies or practices have shown the highest energy-saving potential in cement production?
One of our most significant achievements in advancing energy efficiency has been the successful commissioning of a 132 KV Grid Integration Project, which unified three of our major manufacturing units under a single power network. This milestone, enabled by a dedicated transmission line and a state-of-the-art Line-In Line-Out (LILO) substation, has transformed our energy management and operational capabilities.
With this integration, we have substantially reduced our contract demand, eliminated power disruptions, and enhanced operational continuity. Supported by an optical fibre network for real-time communication and automation, this project stands as a testament to our innovation-led manufacturing excellence and underscores Nuvoco’s vision of building a safer, smarter, and sustainable world.

What role does digitalisation play in achieving energy efficiency in your operations?
Digitalisation plays a transformative role in driving energy efficiency across our operations. At Nuvoco, we are leveraging cutting-edge technologies and advanced digital tools to enhance productivity, optimise energy consumption and strengthen our commitment to sustainability and employee safety.
We are developing AI-enabled dashboards to optimise WHRS and kiln operations, ensuring maximum efficiency. Additionally, our advanced AI models evaluate multiple operational parameters — including fuel pricing, moisture content and energy output — to identify the most cost-effective fuel combinations in real time. These initiatives are enabling data-driven decision-making, improving operational excellence and reducing our environmental footprint.

What is your long-term strategy for aligning energy efficiency with decarbonisation goals?
As part of India’s climate action agenda, the cement sector has laid out a clear decarbonisation roadmap to achieve net-zero CO2 emissions by 2070. At Nuvoco, we view this as both a responsibility and an opportunity to redefine the future of sustainable construction. Our long-term strategy focuses on aligning energy efficiency with decarbonisation goals by embracing innovative technologies, alternative raw materials and renewable energy solutions.
We are making strategic investments to scale up solar power installations and enhance our renewable energy mix significantly by 2028. These initiatives are a key part of our broader vision to reduce Scope 2 emissions and strengthen our contribution to India’s net-zero journey, while continuing to deliver innovative and sustainable solutions to our customers.

How do you measure and benchmark energy performance across different plants?
We adopt a comprehensive approach to measure and benchmark energy performance across our plants. Key metrics include Specific Heat Consumption (kCal/kg of clinker) and Specific Power Consumption (kWh/tonne of cement), which are continuously tracked against Best Available Technology (BAT) benchmarks, industry peers and global standards such as the WBCSD-CSI and CII benchmarks.
To ensure consistency and drive improvements, we conduct regular internal energy audits, leverage real-time dashboards and implement robust KPI tracking systems. These tools enable us to compare performance across plants effectively, identify optimisation opportunities and set actionable targets for energy efficiency and sustainability.

What are the key challenges in adopting energy-efficient equipment in brownfield cement plants?
Adopting energy-efficient technologies in brownfield cement plants presents a unique set of challenges due to the constraints of working within existing infrastructure. Firstly, the high capital expenditure and relatively long payback periods often require careful evaluation before investments are made. Additionally, integrating new technologies with legacy equipment can be complex, requiring significant customisation to ensure seamless compatibility and performance.
Another major challenge is minimising production disruptions during installation. Since brownfield plants are already operational, upgrades must be planned meticulously to avoid affecting output. In many cases, space constraints in older facilities add to the difficulty of accommodating advanced equipment without compromising existing layouts.
At Nuvoco, we address these challenges through a phased implementation approach, detailed project planning and by fostering a culture of innovation and collaboration across our plants. This helps us balance operational continuity with our commitment to driving energy efficiency and sustainability.

Concrete

Digitalisation is pivotal in driving energy efficiency

Published

2 weeks ago

October 10, 2025

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As energy costs continue to dominate the cement industry, efficiency and sustainability are proving to be vital components. MM Rathi, Joint President, Power Management, Shree Cement, explains the company’s long-term strategy is focused on cutting emissions while powering growth with renewable energy solutions.

Energy efficiency has always been a cost-saving lever for the cement industry. Today, it is the backbone of sustainability and competitiveness. Cement manufacturers are under growing pressure to optimise consumption, diversify power sources and align with decarbonisation targets. Shree Cement has been at the forefront of this transformation, significantly scaling up its green power capacity and embedding advanced technologies across operations. In this exclusive conversation, MM Rathi, Joint President – Power Management, Shree Cement, shares insights on the company’s approach to energy efficiency, challenges in brownfield modernisation and long-term strategies for achieving net zero alignment.

What percentage of your total operational cost is attributed to energy consumption?
At Shree Cement, energy is one of the most significant components of production cost, accounting for nearly 30 per cent to 40 per cent of total operational expenses. Within this, thermal energy typically contributes around 20 per cent to 25 per cent, while electrical energy forms about 10 per cent to 15 per cent. The exact share varies depending on factors such as the fuel mix (coal, pet coke or alternative fuels and raw materials), the power source (grid-based or captive like solar, wind or thermal), raw mix quality, and regional fuel and electricity price variations. This makes energy efficiency and the adoption of sustainable power sources a key focus area, both from a cost and sustainability perspective.

How has your company improved energy efficiency over the past five years?
Over the past five years, Shree Cement has consistently invested in enhancing energy efficiency across operations. Our green power capacity, covering wind, solar and Waste Heat Recovery (WHR), has more than doubled from 245 MW in 2020 to 592 MW in 2025. All grinding units are now equipped with biomass firing facilities, reducing dependence on conventional fuels. From the project stage itself, we prioritise efficiency by selecting advanced technologies such as six-stage kilns with integrated WHR, CFD-designed plants, and equipment fitted with VFDs, centrifugal compressors and high-efficiency fans. We also review and upgrade equipment systematically, replacing fans, compressors, blowers, pumps, boilers and turbines with more efficient options. This continuous approach has reduced costs while significantly advancing our sustainability journey.
What technologies or practices have shown the highest energy-saving potential in cement production?
WHR stands out as one of the most effective solutions, offsetting a significant portion of electricity required for clinker production. Hot air recirculation has also proven highly beneficial in reducing heat losses. Additionally, regular energy audits help us identify opportunities for improvement and implement corrective measures in daily operations. Together, these practices play a critical role in optimising energy efficiency and driving sustainable operations.

What are the key challenges in adopting energy-efficient equipment in brownfield cement plants?
The biggest challenge is the significant upfront investment required for upgradation. Retrofitting existing facilities often involves complex civil and structural modifications, which add costs and extend downtime. Integration is another hurdle, as new high-efficiency equipment may not align seamlessly with older kiln systems, fans, mills or automation setups. These factors make the transition in brownfield plants more resource-intensive and time-consuming compared to greenfield projects.

How do you measure and benchmark energy performance across different plants?
We track key performance indicators such as specific heat consumption and specific power consumption for each unit, benchmarking them against internal and external standards. Thermal Substitution Rate (TSR percentage) is another critical metric, measuring the share of alternative fuels in the thermal energy mix. Internally, we benchmark performance across plants to encourage best practice sharing. Externally, we compare against national averages and align with the Bureau of Energy Efficiency’s PAT (Perform, Achieve, Trade) scheme, which sets Specific Energy Consumption (SEC) baselines and targets for cement plants. This multi-layered approach ensures continuous monitoring, improvement, and industry leadership in energy efficiency.

What role does digitalisation play in achieving energy efficiency in your operations?
Digitalisation is pivotal in driving energy efficiency at Shree Cement. IoT sensors integrated with SCADA and DCS systems allow real-time monitoring of parameters like heat consumption and energy use, moving beyond periodic reports. Our digital platforms consolidate plant data, enabling management to compare metrics such as SPC, SHC, kWh per tonne and kcal per kg across units in real time. This visibility supports data-driven decisions, faster corrective actions, and higher operational efficiency.

How do government policies and incentives influence your energy-saving decisions?
Government policies and incentives strongly shape our energy-saving decisions. The Perform, Achieve, Trade (PAT) scheme sets plant-specific SEC targets. Non-compliance incurs penalties, while compliance earns tradable energy-saving certificates. This ensures energy efficiency is both cost-driven and regulatory. Additionally, subsidies and viability gap funding for renewable energy projects in wind, solar and AFR co-processing help reduce payback periods and make energy-saving investments more viable.

What is your long-term strategy for aligning energy efficiency with decarbonisation goals?
Our long-term strategy aligns energy efficiency with India’s net zero 2070 goals. Key levers include improving efficiency, expanding green electricity, producing more blended cement, and increasing alternative fuel use. Today, more than 60 per cent of our electricity comes from green sources such as solar, wind, and WHR, the highest in India’s cement industry. Our blended cement products, which reduce limestone and fuel consumption, further lower emissions. These products are certified under the GreenPro ecolabel by CII, validating our sustainability practices and environmental standards.