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A cement plant is a high energy intensive unit

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Pankaj Kejriwal, Managing Director, Star Cement, delves into the importance of optimising refractories to make cement manufacturing more cost efficient and eco-friendly.

Tell us about the role of energy in the manufacturing of cement? What is the volume of energy consumption?
A cement plant is a high energy intensive unit. For manufacturing of cement, both thermal energy and electrical energy is required. In the year 2022-23, thermal energy consumption was 27.50 lakh mKcal (82 per cent of total energy) and electrical energy consumption was 5.97 lakh mKcal (18 per cent of total energy). In the cement industry, about 60 kWh of electrical energy is consumed to produce one ton of cement.
The power consumption pattern is as follows:

What are the various modes of energy sources used by your organisation for its manufacturing needs?
The electrical power is taken from various sources such as IEX through open access from state electricity grid and our own captive coal/biomass fuel based thermal power plant, bamboo chips and AFR like RDF is also being used in our plants. We have recently commissioned a 12.3 MW waste heat recovery system (WHRS) plant, and another 12.5 MW WHRS plant is in the pipeline. We are also installing about 15 MW of solar power plant.
The thermal energy is produced by coal in kiln. Linkage coal is utilised in kiln along with various local or purchased coal.

Which of the said energy sources yields maximum productivity for the plant and which yields the least?
Coal, pet coke and electricity are the dominant energy sources used in cement plants, although plants will burn a variety of other fuels, including tires, biomass, RDF and other waste fuels.
As per the mentioned energy sources, WHRS with CPP is our first priority whereas grid (IEX) power is the least priority energy source. As an AFR, we are using bamboo chips, bamboo briquettes and waste plastic bags in our plant. The green energy sources have large impact on the productivity and cost of cement manufacturing. It reduces the carbon emission. As a cost impact, it reduces power cost by 12 per cent in CPP and 1.5 per cent in process plant approximately.

What are the alternative energy sources that are being adapted by the cement industry and your organisation?
The main alternative fuels used in cement industry are residue oil and solvents, contaminated garbage, process waste from food industry / pharma industry, used tires and rubber waste, plastic waste, sewage sludge and waste animal meal. Star Cement uses alternative energy sources such as biomass like municipal waste, bamboo chips and are also installing a 15 MW solar energy plant.

What is the impact of greener energy sources on the productivity and cost of cement manufacturing?
Alternative fuels utilisation in cement industry reduces the production cost and also reduces the coal requirement, coal handling/grinding etc.

How does automation and technology help in optimising the use of energy in cement plants?
By leveraging the power of automation and AI-driven analytics, the cement industry can reduce maintenance costs, enhance equipment reliability, and achieve higher energy efficiency, ultimately leading to improved productivity and profitability.
We are also focusing on automation and technology up gradation to optimise the use of energy in cement plants. To achieve this, various steps has been taken towards energy conservation and technology absorption, few are as mentioned below:
• Installed VFD in Primary Air blower by which control the rpm of blower as per process requirement and saved the energy 86,000 kWh per year.
• Optimisation of RABH purging operation. Total power saving is 2,80,000 kwh per year.
• VFD installed in VRM bag filter of 55 Kw motor, by which saving achieved 7920 kWh per year.
• Increased clinker production and optimised
the running of the different circuits, by which specific power consumption is reduced by 1.08 kwh/MT clinker.
• Optimised the coal firing system and higher clinker production reduced the specific heat consumption by 7 Kcal/kg clinker.
• Installed tertiary crusher in raw mill circuit, thereby increasing ball mill output and reducing power consumption b 2 KW / tonne of raw meal.

What are the major challenges your organisation faces in managing the energy needs of cement manufacturers?
The major challenges for our organisation in managing the energy needs for the cement manufacturing process is the less availability of alternative fuels in plant locality. The segregation of waste is yet to improve and also the Polluter Pay Principle is not being implemented effectively,
thereby increasing the cost of alternative fuel at our factory gate.
Cement industry have a long way to go as far as alternate fuel and raw material usage is concerned.
In spite of several policy, regulatory or technological barriers that industry is facing, now is the opportune time for the Indian cement industry to focus all its efforts in furthering AFR utilisation in its processes.

Tell us about the compliance and standards followed by you to maintain energy use and efficiency in the organisation?
Our organisation is a designated consumer under PAT cycle 2 and 3. We are following all the compliance and standards as per BEE guidelines to achieve our Specific Energy Consumption targets as directed by Bureau of Energy Efficiency, Ministry of Power, Government of India.
As per BEE guidelines Mandatory Energy Audit, monitoring and verification audits are conducted to ensure optimum use of energy after every three years. We have also conducted detailed energy audit by CII, Hyderabad, in May 2023 as an additional exercise.

What kind of innovations in the area of energy consumption do you wish to see in the cement industry?
Use of solar power, hydrogen fuel and maximising the use of AFR are the areas of innovations, we wish to see in the cement industry in near future. Also increasing the efficiency of WHR boilers will help in better recovering the waste heat.
Along with cheaper and greener fuel sources, we would like technology to further reduce the
energy consumption in the grinding process.
Usage of alternative materials, which reduce the overall clinker component in blended cement like LC3 will also go a long way in reducing the
energy requirements.

-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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