Economy & Market

Beyond headlines

Published

8 years ago

November 30, 2017

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Govt sanctions around 31 lakh homes under PMAY The government has sanctioned 30.76 lakh houses since the launch of Pradhan Mantri Awas Yojana (Urban) to fulfill its ambitious scheme of Housing for All by 2022, according to housing minister Hardeep Singh Puri. Around 15.65 lakh houses have been grounded and are at various stages of construction and about 4.13 lakh houses have been constructed since the launch of the mission, informed Puri. The minister was speaking at the launch of National Workshop on Accelerating Implementation of Urban Missions: PMAY(Urban) and Swachh Bharat mission(Urban).

Pegging the housing demand at around 12 million unites, the minister said the government is actively pursuing on reforms like stamp duty exemption and single window clearance. According to Puri, the in-situ slum rehabilitation (ISSR) scheme under PMAY(U) has had a few challenges in its implementation due to land related issues, financing models, selection of private developer, beneficiary participation and policy concerns of the states. However, the minister urged the states to adopt a slum-free approach and comprehensively develop their cities with focus on slum redevelopment taking complete advantage of the ISSR scheme.

Puri also called on the states to ensure better outreach for the credit-linked subsidy scheme (CLSS) and focus on convergence between the banks, private sector and home buyers. Speaking on the progress in the affordable housing in partnership (AHP) scheme, the minister said more focus should be on catering to the housing demand emerging from the economically weaker section (EWS) of home buyers with no land ownership.

The minister also urged the private builders to come forward and participate in the public private partnership models for affordable housing.

The private sector participation will also enhance access to financing and capital markets, as well as reduce costs through gains in construction, operations and time-bound delivery of houses, he said.

The government has in the past one year introduced a slew of reforms to uplift the housing sector, namely infrastructure status to affordable housing, direct tax benefits under Section 80-IBA of the Income-Tax Act, relaxation in foreign direct investment (FDI) and external commercial borrowing (ECB) proposals, reduction in holding period for long-term capital gain benefits and standardised usage of carpet area in calculating housing sizes. The government launched its flagship Housing for All by 2022 mission on June 25, 2015, which is divided into two schemes namely PMAY(Urban) and PMAY(Rural).

Binani sale attracts multinationals interest
Binani Cement has attracted interest of as many as 15 bidders, say senior officials at the company, including CRH, Lafarge and Heidelberg Cement as well as local players India Cement, Orient Cement, Ramco Cement, Shree Cement, UltraTech and Piramals. The Bank of Baroda referred the Binani Cement, a subsidiary of Binani Industries, to the National Company Law Tribunal in July after it failed to repay a Rs 970 million loan. Bidders for the company will provide a binding bid with a detailed resolution plan that would involve acquiring equity and recasting the debt by 22 December. Binani has a manufacturing capacity of 11.25 MT with integrated plants in India and China, and grinding units in Dubai, UAE.

Industrial production growth slows to 4.7%
Industrial production denoted by eight core sectors grew at a slower pace of 4.7 per cent in October, due to subdued growth of cement, steel and refinery segments. The eight infrastructure sectors – coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity – had clocked a growth of 7.1 per cent in October last year. The eight core industries constitute 40.27 per cent of weight of items in the index of industrial production (IIP). Cumulatively, the growth in the eight core sectors slowed down to 3.5 per cent as against 5.6 per cent in the comparable period of the last fiscal.

Electricity production continued its slow growth of September 2017. Contraction in cement output and expansion of steel output gives contradictory trend of infrastructure sector. April-October 2017 capital expenditure growth by the centre stood at 30.3 per cent, supported by steel production, while cement production defies the trend, points Devendra Kumar Pant, Chief Economist, India Ratings & Research. According data released by the Central Statistics Office, the cement production contracted by 2.7 per cent as against an expansion of 6.2 per cent in October 2016.

The output growth in the steel segment too slowed to 8.4 per cent in the last month compared to 17.4 per cent same period last year. Slowdown in refinery output growth at 7.5 per cent in October this year is less than 12.6 per cent expansion in the same month last year.

Meanwhile, the coal segment has shown significant improvement as it expanded by 3.90 per cent. It witnessed a decline of 1.9 per cent in the year-ago period. The fertiliser sector grew by 3 per cent as against 0.7 per cent in the year-ago period. Crude oil production and natural gas output have shown improvement.

Demand recovery at the mercy of govt spending
Most cement makers reported decent volume growth in the September quarter. This was led by factors such as a favourable base, a ramp-up of capacities and market share gains. Among pan-India cement makers, ACC Ltd and Ambuja Cements Ltd saw 18 per cent and 12 per cent growth in sales volumes, respectively. UltraTech Ltd’s volume growth of 18 per cent was on the back of a merger of Jaiprakash Associates Ltd’s cement capacities. Similarly, among regional firms, south-based India Cements Ltd’s double-digit volume growth, too, was driven by the merger of Trinetra Cement Ltd and Trishul Concrete Products Ltd.

On the other hand, volume growth in some markets like Tamil Nadu and Gujarat were impacted by lower sand availability and floods, respectively. Realisations were much better than anticipated despite September being a seasonally weak quarter. However, an increase in realisations was not adequate to offset the spike in fuel and power costs due to elevated petroleum coke (petcoke) prices.

Petcoke is a key input material for cement producers. Petcoke prices began to harden after August when Hurricane Harvey hit the US. Operations of oil and gas refineries were disrupted by the hurricane that led to production shutdowns, causing a shortage of the fuel. Many Indian firms rely on imported petcoke. Price of imported petroleum coke is currently hovering at $105.

Apart from that, some firms saw higher raw material cost since slag prices jumped. According to analysts, prices of slag have risen 65 per cent year-on-year (y-o-y). Freight costs, too, rose for most firms due to increased diesel prices. As a result, profitability of cement makers declined from the peak of June 2018 quarter.

The second half of the fiscal is comparatively better for the sector in terms of demand. However, the urban housing segment has slowed after the Implementation of the Real Estate (Regulation and Development) Act. So, the sector is reliant on government spending on schemes such as Housing for All, Clean India Mission and other infrastructure projects.

The sand mining issue that affected demand in certain pockets may get sorted soon. Better demand is likely to translate into further improvement in realisations. While volumes and realisations may head northwards, cement makers are unlikely to see much relief on the cost front, especially of power and fuel. The fear is that if the ongoing rally in global crude oil prices continues, it would lead to a further hardening of petcoke prices, impacting margins. Meanwhile, many large and midcap cement stocks continue to trade at expensive valuations. Given the aforementioned concerns, valuations need to correct.

GDP growth rate rises in Sept quarter
The country’s economic growth recovered to more than 6 per cent in the July-September quarter, backed by strong manufacturing, allaying doubts about disruptions caused by the goods and services tax (GST). This was a break with five quarters of declining trends in growth, but India remained behind China in economic expansion. It was de-stocking in the first quarter of 2017-18 due to pre-GST jitters that had pulled down gross domestic product (GDP) growth to a more than three-year low.

GDP rose 6.3 per cent in the quarter ended September, higher than the 5.7 per cent in the previous one on improved investment and steady demand, the data from the Central Statistics Office showed.

Construction equipment cos breathe easy after GST cut
Reduction in the GST on mining and construction equipment to 18 per cent from 28 per cent will help support infrastructure development across segments, said Anand Sundaresan, Vice-Chairman and MD of concrete pump manufacturer Schwing Stetter (India), and former President, Indian Construction Equipment Manufacturers’ Association. It is a big relief for most of the industry. But for 15 per cent of the products, the rate continues to be 28 per cent. ?We will seek reduction for those products too.? Pre-GST duty was under 20 per cent, he said.

Sundaresan told that sales declined 35 per cent in July due to GST implementation. However, things returned to normal and the overall growth was not affected as the industry grew 19 per cent in Q1 and 22 per cent in Q2. And the industry will sustain this in the current fiscal. So far, only road construction has driven growth, but the Railways has also started to offer some opportunities.

‘Leasing will become cheaper post-GST. Earlier, they had excise duty and sales tax, and on top of that service tax . The total rate worked out to 30-32 per cent. Now, leasing companies will charge only 18 per cent GST. So, it will benefit them a lot.’ Sundaresan felt that till full clarity is achieved on GST, the government should allow the industry to correct its mistakes, instead of penalising. Referring to EXCON 2017, the 9th International Construction Equipment and Construction Technology Trade Fair, to be held from December 12 to 16 in Bengaluru, Sundaresan, who is a member of the event committee, said this year’s edition will be one of the largest fairs with a display area of 2,60,000 sq m.

Affordable housing continues to see strong demand
Affordable housing continues to be much in demand accounting for 19 per cent of the overall sales in Q2 compared to 17 per cent in the previous quarter, according to data by real estate data analytics firm Liases Foras. The Mumbai Metropolitan Region (MMR) accounted for highest sales at 28 per cent with 3,388 units, followed by Ahmedabad at 24 per cent with 2,903 units during the quarter.

Sales across eight Tier-I cities decreased marginally from 64,881 units in the previous quarter to 64,781 units in the current quarter. Chennai and Kolkata witnessed a steep decline in quarter-on-quarter sales at 13 per cent and 8 per cent respectively. Sales in Hyderabad were up 11 per cent. Sales in the cost bracket of Rs 1- 2 crore and Rs. 50 lakh – Rs. 1 crore decreased 8 per cent and 5 per cent respectively. The Rs 25-50 lakh segment accounted for 36 per cent of total sales. Unsold stock in Tier-I cities declined 1 per cent. Hyderabad and NCR witnessed 5 per cent decline followed by Ahmedabad and Bengaluru at 3 per cent. Kolkata and Chennai recorded an increase in unsold stock at seven per cent and six per cent respectively. Weighted average price across Tier-I cities increased marginally by 1 per cent but Chennai alone witnessed a decline in price of 1 per cent. Prices across other cites either witnessed no change or increased marginally by one per cent.

‘Months inventory across Tier-I cities remained constant at 44. Maximum increase was seen in Chennai at 22 per cent where the number of months increased from 58 to 71, followed by Kolkata with a 16 per cent increase from 44 to 51. Hyderabad witnessed the maximum decrease of 12 per cent in months inventory. This decline is attributed to an increase in sales and a lower supply of new units in the city, said Pankaj Kapoor, MD, Liases Foras.

Amit Ruparel, MD, Ruparel Realty, said, ‘While 2017 was the year of consolidation, the sector’s growth prospects for 2018 seem to be brighter, as the impact of RERA and GST would continue to unfold in 2018.

With the overall affordable housing segment receiving an industry status in the Budget and support from the Centre under the newly introduced regulation in the Pradhan Mantri Awas Yojana, the sector will witness a steady demand in the coming year. Moreover, from the investor’s perspective, affordable apartments are easier and more profitable to sell or even to put on rent, assuring decent return of investment.’

States to adopt new technologies for building affordable homes
The government has directed states and Union territories to adopt 16 alternate innovative technologies for fast and better construction of homes under the affordable housing in partnership (AHP) and in-situ slum rehabilitation (ISSR) schemes. It also proposes to launch the global housing construction technology challenge (GHCTC) to globally identify best technologies which are suitable for mass housing.

‘States/UTs shall adopt 16 alternate innovative modern, sustainable, green and disaster resistant technologies that have been identified…,’ the Housing Ministry said in a release. Introducing seven strategies to accelerate implementation of the Pradhan Mantri Awas Yojna (Urban), the ministry asked states and Union territories to implement necessary land reforms to ensure that beneficiaries have valid land document, and put in place a single-window time bound clearance system for layout approvals and building permissions. It has also asked states to prepare a land database to ensure availability of land for affordable housing.

‘States/UTs may converge their states policies with new 8 PPP models and utilise suitably to promote affordable housing,? the ministry said. While asking states to provide incentives like additional floor area ratio (FAR) and transferable development rights (TDR) to make the ISSR projects viable, the ministry also asked them to provide rental accommodation to the slum dwellers while resettling them in ISSR projects. It has also directed states to share their respective road map with respect to slum redevelopment projects under ISSR.

To promote its flagship credit linked subsidy scheme (CLSS), the government has asked states to target teachers, Anganwadi workers, Para?military forces, state police departments, etc. The suggestions were derived from a day-long National Workshop on Accelerating Implementation of Urban Missions: PMAY(Urban) and Swachh Bharat mission(Urban) that was conducted here.

The government launched its flagship’Housing for All by 2022′ mission on June 25, 2015, which is divided into two schemes namely PMAY(Urban) and PMAY(Rural). It has so far sanctioned 30.81 lakh houses under PMAY(Urban), in which around 15.65 lakh houses have been grounded and are at various stages of construction and about 4.13 lakh houses have been constructed since the launch of the mission.

Economy & Market

SEW-EURODRIVE India Opens Drive Technology Centre in Chennai

Published

3 weeks ago

March 25, 2026

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The new facility strengthens SEW-EURODRIVE India’s manufacturing, assembly and service capabilities

SEW-EURODRIVE India has inaugurated a new Drive Technology Centre (DTC) in Chennai, marking a significant expansion of its manufacturing and service infrastructure in South India. The facility is positioned to enhance the company’s responsiveness and long-term support capabilities for customers across southern and eastern regions of the country.

Built across 12.27 acres, the facility includes a 21,350-square-metre assembly and service setup designed to support future industrial growth, evolving application requirements and capacity expansion. The centre reflects the company’s long-term strategy in India, combining global engineering practices with local manufacturing and service capabilities.

The new facility has been developed in line with green building standards and incorporates sustainable features such as natural daylight utilisation, solar power generation and rainwater harvesting systems. The company has also implemented energy-efficient construction and advanced climate control systems that help reduce shopfloor temperatures by up to 3°C, improving production stability, product quality and working conditions.

A key highlight of the centre is the 15,000-square-metre assembly shop, which features digitisation-ready assembly cells based on a single-piece flow manufacturing concept. The facility also houses SEW-EURODRIVE India’s first semi-automated painting booth, aimed at ensuring uniform surface finish and improving production throughput.

With the commissioning of the Chennai Drive Technology Centre, SEW-EURODRIVE India continues to strengthen its manufacturing footprint and reinforces its long-term commitment to supporting industrial growth and automation development in India.

Concrete

Material Flow Efficiency

Published

4 weeks ago

March 18, 2026

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We explore how material handling systems are becoming strategic assets in cement plants, enabling efficient movement of raw materials, clinker and finished cement. Advanced conveying, automation and digital technologies are improving plant productivity while supporting energy efficiency and sustainability goals.

Material handling systems form the operational backbone of cement plants, enabling the efficient movement of raw materials, clinker and finished cement across complex production networks. With India’s cement industry producing over 391 million tonnes of cement in FY2024 and possessing an installed capacity of around 668 mtpa, according to the CRISIL Research Industry Report, 2025, efficient material logistics have become critical to maintaining plant productivity and cost competitiveness. At the same time, cement production is highly energy intensive and contributes around 7 per cent to
8 per cent of global CO2 emissions, making efficient material flow and logistics optimisation essential for reducing operational inefficiencies and emissions states the International Energy Agency Cement Technology Roadmap, 2023. As plants scale capacity and integrate digital technologies, modern material handling systems, ranging from automated conveyors to intelligent stockyards, are increasingly recognised as strategic assets that influence plant stability, energy efficiency and environmental performance.

Strategic role of material handling
Material handling is no longer viewed as a secondary utility within cement plants; it is now recognised as a strategic system that directly influences production efficiency and process stability.
Cement manufacturing involves the continuous movement of large volumes of limestone, clay, additives, clinker and finished cement across multiple production stages. Even minor disruptions in conveying systems or storage infrastructure can lead to kiln feed fluctuations, production delays and significant financial losses. According to Indian Cement Industry Operational Benchmarking Study, 2024, unplanned downtime in large integrated cement plants can cost between Rs.15–20 lakh per hour, highlighting the economic importance of reliable material handling systems.
Modern cement plants are therefore investing in advanced mechanical handling systems designed for high throughput and operational reliability. Large integrated plants can process over 10,000 tonnes per day of clinker, requiring highly efficient conveying systems and automated stockyards to maintain continuous material flow, suggests the International Cement Review Industry Analysis, 2024. Efficient material handling also reduces spillage, minimises dust emissions and improves workplace safety. As cement plants become larger and more technologically advanced, the role of material handling is evolving from simple transport infrastructure to a critical operational system that supports both productivity and sustainability.

From quarry to plant
The transport of raw materials from quarry to processing plant represents one of the most energy-intensive stages of cement production. Traditionally, limestone and other raw materials were transported using diesel-powered trucks, which resulted in high fuel consumption, dust generation and increased operational costs. However, modern plants are increasingly adopting long-distance belt conveyors and pipe conveyors as a more efficient alternative. These systems allow continuous material transport over distances of 10–15 kilometres, significantly reducing fuel consumption and operating costs while improving environmental performance, states the FLSmidth Cement Industry Technology Report, 2024.
Milind Khangan, Marketing Manager, Vertex Market Research & Consulting, says, “Efficient and enclosed handling of fine materials such as cement, fly ash and slag requires modern pneumatic conveying systems. By optimising the air-to-material ratio, these systems can reduce energy consumption by 10 per cent to 15 per cent while ensuring smooth material flow. Closed-loop conveying further minimises dust loading and improves the performance of bag filters, supporting cleaner plant operations. In addition, flow-regulated conveying lines help prevent clogging and maintain reliable dispatch performance. Overall, automation in pneumatic conveying delivers immediate operational benefits, including improved equipment uptime, lower energy use, reduced material spillage and more stable kiln and mill performance.”
Pipe conveyor systems are particularly gaining traction because they provide a completely enclosed transport system that prevents material spillage and dust emissions. According to global cement engineering studies, conveyor-based transport can reduce energy consumption by up to 30 per cent compared to truck haulage, while also improving operational reliability. Several cement plants in India have already implemented such systems to stabilise quarry-to-plant logistics while reducing carbon emissions associated with diesel transport.

Stockyard management and homogenisation
Stockyards play a critical role in maintaining raw material consistency and stabilising kiln feed quality. Modern cement plants use advanced stacker and reclaimer systems to ensure efficient storage and blending of raw materials before they enter the grinding and pyroprocessing stages. Automated stacking methods such as chevron or windrow stacking enable uniform distribution of materials, while bridge-type or portal reclaimers ensure consistent extraction during kiln feed preparation. These systems are essential for maintaining stable chemical composition of raw meal, which directly influences kiln efficiency and clinker quality. The Cement Plant Operations Handbook, 2024 indicates that advanced homogenisation systems can reduce raw mix variability by up to 50 per cent, significantly improving kiln stability and energy efficiency. Integrated stockyard management systems also incorporate sensors for monitoring bulk density, moisture levels and stockpile volumes, enabling real-time control over material blending processes.

Clinker and cement conveying technologies
Once clinker is produced in the kiln, it must be efficiently transported to storage silos and subsequently to grinding and packing units. Modern cement plants rely on high-capacity belt conveyors, bucket elevators and pneumatic conveying systems to manage this stage of material flow. Steel-cord belt bucket elevators are now capable of lifting materials to heights exceeding 120 metres with capacities reaching 1,500 tonnes per hour, making them suitable for large-scale clinker production lines, states the European Cement Engineering Association Technical Paper, 2023.
For fine materials such as cement, fly ash and slag, pneumatic conveying systems provide a reliable and dust-free solution. These systems transport powdered materials using controlled airflow, ensuring enclosed and contamination-free movement between grinding units, silos and packing stations. Optimised pneumatic systems can reduce energy consumption by 10 per cent to 15 per cent compared to older conveying technologies, while also improving plant cleanliness and environmental compliance, according to the Global Cement Technology Review, 2024.

Automation and digitalisation
Digitalisation is transforming material handling systems by introducing real-time monitoring, predictive maintenance and automated control. Advanced sensors and Industrial Internet of Things (IIoT) platforms enable plant operators to track conveyor health, stockpile levels and equipment performance in real time. Predictive maintenance systems analyse vibration patterns, temperature fluctuations and equipment load data to detect potential failures before they occur. According to McKinsey’s Industry 4.0 Manufacturing Report, 2023, for heavy industries, digital monitoring and predictive maintenance technologies can reduce equipment downtime by up to 30 per cent and increase productivity by 10 per cent to 15 per cent. Digital control centres also integrate data from conveyors, stacker reclaimers and dispatch systems, enabling centralised management of material flows from quarry to dispatch.

Handling of AFR
The growing adoption of Alternative Fuels and Raw Materials (AFR) has introduced new challenges and opportunities for material handling systems in cement plants. AFR materials such as refuse-derived fuel (RDF), biomass and industrial waste often have irregular particle sizes, variable moisture content and lower bulk density compared to conventional fuels. As a result, specialised storage, dosing and feeding systems are required to ensure consistent kiln combustion. According to the Cement Sector Decarbonisation Roadmap published by NITI Aayog in 2026, increasing the use of AFR could enable India’s cement sector to achieve thermal substitution rates of around 20 per cent in the coming decades. To support this transition, plants are investing in automated receiving stations, shredding units, drying systems and precision dosing equipment to stabilise AFR supply and combustion performance.

Energy efficiency and dust control
Material handling systems also play a crucial role in improving plant energy efficiency and environmental performance. Modern conveyor systems equipped with variable speed drives and energy-efficient motors can significantly reduce electricity consumption. Permanent magnet motors used in conveyor drives can deliver 8 per cent to 12 per cent energy savings compared to conventional induction motors, improving overall plant energy efficiency according to the IEA Industrial Energy Efficiency Study, 2023. Dust control is another major concern in cement plants, particularly during material transfer and storage operations. Enclosed conveyors, dust extraction systems and advanced bag filters are widely used to minimise particulate emissions and improve workplace safety.

Future trends in material handling
The future of material handling in cement plants will be shaped by automation, digitalisation and sustainability considerations. Emerging technologies such as AI-driven logistics optimisation, autonomous mobile equipment and digital twins are expected to further improve plant efficiency and operational visibility. Digital twin models allow engineers to simulate material flow patterns, optimise stockyard operations and predict equipment performance under different operating conditions. According to the International Energy Agency Digitalisation and Energy Report, 2024, the adoption of advanced digital technologies could improve industrial energy efficiency by up to 20 per cent in heavy industries such as cement manufacturing. As cement plants expand capacity and adopt low-carbon technologies, intelligent material handling systems will play a critical role in maintaining productivity and reducing environmental impact.

Conclusion
Material handling systems have evolved from basic transport infrastructure into strategic operational systems that directly influence plant efficiency, reliability and sustainability. From quarry transport and automated stockyards to digital dispatch platforms and advanced conveying technologies, modern material handling solutions enable cement plants to manage large production volumes while maintaining process stability.
As India’s cement industry continues to expand to meet infrastructure and urban development demands, investments in advanced material handling technologies will become increasingly important. By integrating automation, digital monitoring and energy-efficient systems, cement manufacturers can improve operational performance while supporting the industry’s long-term sustainability and decarbonisation goals.

Kanika Mathur

Concrete

Modernise to Optimise

Published

4 weeks ago

March 18, 2026

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Cement plant modernisation is reshaping the industry through upgrades in
kilns, energy systems, digitalisation, AFR integration and advanced material
handling. We explore these technologies that improve efficiency, reduce
emissions, strengthen competitiveness, while preparing the industry for India’s
next phase of infrastructure growth.

India’s cement industry, the world’s second-largest, is undergoing a rapid transformation driven by infrastructure demand, decarbonisation targets and technological advancement. The sector’s installed capacity stood at approximately 668 million tonnes per annum (mtpa) in FY2025 and is projected to reach 915–925 mtap by 2030, supported by large-scale capacity expansions and infrastructure investment cycles, suggests CRISIL Intelligence Industry Report, 2025. At the same time, cement production remains highly energy intensive and contributes about 6 per cent to 7 per cent of India’s total greenhouse gas emissions, making efficiency improvements and modernisation critical for long-term sustainability as stated in CareEdge ESG Research, 2025. As a result, cement manufacturers are investing in advanced kiln technologies, digital monitoring systems, waste heat recovery, alternative fuels, and modern material handling infrastructure to enhance productivity while aligning with global decarbonisation pathways.

Need for modernisation
The need for plant modernisation is closely linked to the sector’s rapid capacity expansion and rising operational complexity. India’s installed cement capacity has grown significantly in the last decade and is expected to exceed 900 mtpa by 2030, driven by demand from housing, infrastructure and urban development projects, as per the CRISIL Intelligence Industry Report, 2025. However, increasing scale also places pressure on energy efficiency, logistics, and production stability. The report also suggests that the cement plants must upgrade equipment and processes to operate at higher utilisation rates, which are projected to reach 75 per cent to 77 per cent by the end of the decade, compared to around 72 per cent to 74 per cent in FY2026.
Environmental imperatives are another major driver of modernisation. Cement manufacturing is responsible for a significant share of industrial emissions because clinker production requires high-temperature processes that depend heavily on fossil fuels. According to CareEdge ESG research, the cement sector contributes 6–7 per cent of India’s total greenhouse gas emissions, with approximately 97 per cent of emissions arising from direct fuel combustion and process emissions in kilns. Consequently, plant modernisation initiatives now focus not only on productivity improvements but also on reducing emissions intensity, energy consumption, and reliance on conventional fuels.
“One of the most impactful upgrades implemented at Shree Cement in the last five years has been the adoption of advanced data management platforms that provide real-time visibility across major process areas. This digital advancement has strengthened plant automation by enabling faster and more accurate responses to process variations while improving the reliability of control loops. Real-time dashboards, integrated analytics and automated alerts now support quicker, data-driven decision-making, helping optimise kiln and mill performance, improve energy control and detect deviations early. By consolidating data from multiple systems into a unified digital environment, the company has enhanced operational consistency, reduced downtime and improved both productivity and compliance. This shift towards intelligent automation and real-time data management has become a key driver of operational excellence and future-ready plant management,” says Satish Maheshwari, Chief Manufacturing Officer, Shree Cement.

Kiln and pyroprocessing upgradation
The kiln remains the technological heart of cement manufacturing, and modernisation efforts often begin with upgrades to pyroprocessing systems. Many older plants in India operate with four- or five-stage preheaters, while modern plants increasingly adopt six-stage preheater and pre-calciner systems that significantly improve heat efficiency and clinker output. These systems enhance heat transfer, reduce fuel consumption, and stabilise kiln operations under high throughput conditions.
Professor Procyon Mukherjee suggests, “Cement manufacturing is, at its core, a thermal process. The rotary kiln and calciner together account for energy consumption and emissions. The theoretical thermal requirement for clinker production is around 1700–1800 MJ per tonne, yet real-world plants often operate far above this benchmark due to inefficiencies in combustion, heat recovery and material flow. Modernisation, therefore, must begin with the
kiln system, and not peripheral automation or
isolated upgrades. The shift from wet to dry process kilns, combined with multi-stage preheaters and precalciners, has already delivered step-change improvements, making dry kilns nearly 50 per cent more energy efficient.”
Recent investment programmes across the industry have included kiln cooler upgrades, advanced burners, and improved refractory materials designed to increase operational reliability and reduce specific heat consumption. Such upgrades are essential because cement production remains highly energy intensive, and continuous efficiency improvements are required to meet global decarbonisation targets. According to the International Energy Agency (IEA) Cement Tracking Report, 2023, the cement sector must achieve annual emissions intensity reductions of around 4 per cent through 2030 to align with global net-zero scenarios.

Energy efficiency and WHRS
Energy efficiency remains one of the most important areas of modernisation in cement manufacturing, given the sector’s heavy reliance on thermal and electrical energy. Modern plants deploy advanced process controls, efficient grinding systems, and improved combustion technologies to reduce specific energy consumption. The adoption of energy-efficient technologies is particularly important in India, where energy costs account for a large share of production expenses. As demand grows and plants expand capacity, improving energy performance becomes essential to maintain competitiveness.
Waste Heat Recovery Systems (WHRS) have emerged as a key solution for improving plant energy efficiency. During cement production, large volumes of high-temperature gases are released from kilns and coolers. WHRS technology captures this waste heat and converts it into electricity, thereby reducing reliance on external power sources. According to energy benchmarking studies for the Indian cement industry, installed waste heat recovery capacity in the sector has reached approximately 840 MW, with an additional potential of around 500 MW states the Green Business Centre, Energy Benchmarking Report, 2023. Several leading producers have already implemented large WHRS installations; for example, UltraTech Cement has deployed systems with around 121 MW of waste heat recovery capacity, reducing carbon emissions by nearly 0.5 million tonnes annually according to the Energy Alternatives India Case Study, 2024.

Integration of AFR
The integration of Alternative Fuels and Raw Materials (AFR) is another critical dimension of cement plant modernisation. AFR refers to the use of industrial waste, biomass, refuse-derived fuel (RDF), and other non-fossil materials as substitutes for conventional fuels such as coal and petcoke. Increasing the use of AFR helps reduce fossil fuel consumption while simultaneously addressing waste management challenges. According to the NITI Aayog Decarbonisation Roadmap, 2026, scaling the use of RDF and other alternative fuels could enable the sector to achieve thermal substitution rates of around 20 per cent in the coming decades.
However, integrating AFR requires significant plant modifications and operational adjustments. Waste-derived fuels often have inconsistent calorific values, higher moisture content, and heterogeneous physical properties compared to traditional fuels. As a result, modern plants invest in advanced fuel preparation systems, dedicated feeding equipment, and automated dosing technologies to ensure stable kiln operation. These upgrades allow plants to maintain consistent clinker quality while increasing the share of alternative fuels in their energy mix.

Digitalisation and smart plant operations
Digitalisation is rapidly transforming cement plant operations by enabling data-driven decision-making and predictive maintenance. Industry 4.0 technologies such as IoT sensors, artificial intelligence (AI), and advanced analytics are now used to monitor equipment performance, optimise process parameters, and anticipate maintenance requirements. These digital tools enable plant operators to detect early signs of equipment failure, minimise unplanned downtime, and improve operational efficiency. Predictive maintenance systems, for example, analyse vibration, temperature, and acoustic signals from rotating equipment to identify potential faults
before they escalate into major breakdowns. Digital twins and integrated control systems further allow operators to simulate plant performance under different scenarios and optimise production strategies. Such technologies are becoming increasingly important as cement plants operate at larger scales and higher levels of process complexity.
Maheshwari also adds, “Plant modernisation is also increasingly central to the global competitiveness of Indian cement manufacturers. As cost pressures rise across energy, logistics and regulatory compliance, modern plants offer the structural efficiency required to operate reliably and competitively over the long term. Technologies such as AI-driven Advanced Process Control (APC) integrated with real-time data systems are emerging as essential investments for the future. These platforms use predictive algorithms, machine learning and live process inputs to optimise kiln, mill and utility operations with greater precision than traditional control systems. By continuously analysing variations in feed chemistry, temperature profiles, energy demand and equipment behaviour, APC enables stable operations, lower specific energy consumption, reduced emissions and improved product consistency. As regulatory expectations tighten and plants pursue higher efficiency with lower carbon intensity, AI-enabled APC will play a crucial role in strengthening automation, enhancing decision-making and ensuring long-term operational resilience.”

Modern material handling and logistics
Material handling systems play a critical role in ensuring smooth plant operations and efficient logistics. Modern cement plants rely on advanced conveying systems, automated stockyards, and digital dispatch platforms to manage the movement of raw materials, clinker, and finished cement. Long-distance belt conveyors and pipe conveyors are increasingly replacing truck-based transport between quarries and plants, reducing fuel consumption, dust emissions, and operational costs. Automated stacker-reclaimers ensure consistent blending of raw materials,
which improves kiln stability and clinker quality. Meanwhile, advanced packing and dispatch systems equipped with high-speed rotary packers and robotic palletisers enhance throughput and reduce manual labour. These technologies allow cement plants to optimise logistics efficiency while supporting higher production capacities.

Emission control and environmental compliance
Environmental compliance has become a central focus of cement plant modernisation as regulators and investors place greater emphasis on sustainability performance. Modern plants deploy advanced emission control technologies such as high-efficiency bag filters, electrostatic precipitators, and selective non-catalytic reduction systems to reduce particulate matter and nitrogen oxide emissions.
Sine Bogh Skaarup, Vice President, Head of Green Innovation and R&D, Fuller Technologies says, “One of our key focus areas is decarbonisation. We help cement producers reduce CO2 and overall carbon emissions. We offer alternative fuel solutions and calcined clay technologies to enable the production of LC3 cement, which play a significant role in decarbonising the cement industry. By combining alternative fuels and calcined clay solutions, CO2 emissions can be reduced by up to 50 per cent, making this a highly impactful approach for sustainable cement production.”
Continuous emission monitoring systems are increasingly used to track environmental performance in real time and ensure compliance with regulatory standards. In addition to air pollution control, cement companies are also investing in water recycling systems, renewable energy integration, and carbon reduction initiatives. These measures are essential for aligning the sector with national climate goals and improving the environmental footprint of
cement manufacturing.

Economic benefits and future outlook
Beyond environmental and operational advantages, cement plant modernisation also delivers significant economic benefits. Energy efficiency improvements, digital process optimisation, and advanced material handling systems reduce operating costs and improve asset utilisation. Waste heat recovery and alternative fuels help lower fuel expenditure and reduce exposure to volatile fossil fuel markets. As the industry expands capacity to meet growing demand, modernised plants are better positioned to achieve higher productivity and maintain profitability. The long-term outlook for the sector remains positive, with India expected to continue large-scale infrastructure investments in roads, housing, railways, and urban development.
Milan R Trivedi, Vice President – Projects, Prod & QC, MR, Shree Digvijay Cement, says, “The main focus in case of modernisation projects drives through the investment decision, which is mainly based on IRR and impact on overall efficiency improvement, cost optimisation and improvement in reliability. However, there are certain modernisation, which has high impact on environmental impact, statutory requirements, etc. has higher priority irrespective of ROI or payback period.”
“The energy efficiency and reliability investment projects generally provide fast return on investment whereas strategic, digitalisation and environmental investment projects provide long term and compounded benefits. Typical modernisation investment projects are decided with IRR of about > 20 per cent, payback period of typically 2-3 years for fast-track projects,” he adds.
In this context, modernisation will remain a key strategic priority for cement manufacturers seeking to maintain competitiveness in an increasingly sustainability-focused market.

Conclusion
The modernisation of cement plants is no longer a purely technical upgrade but a strategic transformation that reshapes how the industry operates. As India’s cement sector expands capacity toward the next growth cycle, improvements in energy efficiency, digitalisation, alternative fuels and advanced logistics will determine the competitiveness of individual plants. Modern technologies allow producers to operate at higher productivity levels while simultaneously reducing energy consumption and emissions intensity.
Looking ahead, the pace of technological adoption will play a decisive role in shaping the future of
the cement industry. Companies that successfully integrate modern equipment, digital systems, and sustainable production practices will be better positioned to meet rising infrastructure demand while aligning with global climate commitments. In this evolving landscape, plant modernisation stands as the cornerstone of both operational excellence and environmental responsibility.