Economy & Market

Consolidation in cement industry: Gobbling Up!

Published

13 years ago

August 31, 2012

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The cement industry has been going through consolidation phase with large Indian cement players preying on smaller ones and foreign cement majors acquiring controlling stake in Indian majors. Prakash Patil looks at the M&A scenario and what it holds for the future of cement industry in India.It’s mergers and acquisitions season in the Indian cement industry and the latest big ticket deal is the acquisition of 51 per cent controlling stake by Irish cement major CRH in the two 2.4 MTPA plants of the Jaypee Group in Gujarat. A buoyant trend in prices could reportedly fetch the Jaypee Group at least $160 per tonne as replacement value, as it puts on the block its hived-off plants in western (2 units of 2.4 MT each) and southern India (1 unit of 5 MTPA). The deal for the two 2.4 MTPA plants is reportedly valued at Rs 4,200 crore. However, as Jaypee Group has its third plant with a capacity of 5 MTPA in Andhra Pradesh and the three plants would be valued at about Rs 9,000 crore. For CRH, this will be the second acquisition in India. The company had forayed into India in 2008 with the acquisition of 50 per cent stake in Hyderabad-based cement producer My Home Industries, which had an installed capacity of 4.2 MTPA.The latest CRH-Jaypee Group deal is an indication of the churning the Indian cement industry is going through over the last decade or so. The big fishes are on the prowl to gobble up smaller fries in the business and considering that there are 139 large cement plants and 365 mini cement plants in the country currently with 40 major and mid-size players having pan-India presence, the opportunities for acquisitions for the large cement players are enticing. And, it’s not just the small fries that are on the radar of the big players, even some of the biggest cement companies have been taken over in the past and many more are being wooed. After all, the cement business of Jaypee Group being acquired by CRH makes Jaypee Group the third largest cement player in India after UltraTech and Ambuja Cements.The big ticket dealsApart from the latest big ticket deal between the CRH-Jaypee Group, there have been quite a few large takeovers since 1999. When Gujarat Ambuja Cements (GACL) picked up 7.2 per cent stake in India’s then largest cement manufacturer ACC at a price of Rs 370 per share when the market price hovered around Rs 240 per share from the Tatas in December 1999, it created sensation. Later in 2000, GACL acquired the balance 7.2 per cent from the Tatas to become the largest shareholder in ACC. But the twist to this tale came when Swiss cement major Holcim picked up 14.8 per cent stake in Gujarat Ambuja Cements (later to merge with Ambuja Cements Eastern to become Ambuja Cements) for Rs 2,100 crore through the creeping acquisition route and later picked up another 20 per cent stake for Rs 2,400 crore. Subsequently, Holcim hiked its stake in Ambuja Cements to over 50 per cent, thereby acquiring complete management control over Ambuja Cements. The Holcim transaction and valuation provides an excellent indication of the extent to which investors and strategic players are ready to buy the India growth story. In 2005, Holcim acquired stake in ACC at an enterprise value (EV) of $111 per tonne and the next year Holcim acquired stake in Ambuja Cement at an EV of $193 per tonne. In 2007, Holcim again increased its stake in Ambuja Cements at an EV of $301 per tonne!With this acquisition, Holcim also acquired management control over ACC as Ambuja Cements had hiked its stake in ACC to more than 50 per cent. So, Holcim upped the ante for other global cement companies by acquiring majority stake and management control over two of India’s largest cement companies.Lafarge, the French cement major, got late into action in the M&A space and decided to take the acquisition route to fast track it cement business in India. The company declared in 2010 that it was open to consolidation in India and, according to Bruno Lafont, Chairman & CEO, Lafarge, the timeframe for acquisitions was the next five years. "We see consolidation happening (in the cement industry) in India in the mid term period. We are confident of our ability to deliver our investments in India and are open to seizing new opportunities, be it consolidation or greenfield projects," said Lafont while inaugurating the clinker line at Lafarge India’s cement plant in January 2010 at Sonadih in Chhattisgarh. The company entered the Indian market in 1999 with the acquisition of Tata Steel’s cement plant. This was followed by the purchase of the Raymond Cement facility in 2001 and the acquisition of L&T’s concrete business in 2008.The takeover of L&T’s cement business by Grasim Industries in June 2003 also created buzz in the market since this takeover catapulted Grasim Industries (later its cement division being merged into UltraTech Cement) from the third position to the numero uno position in India. After the takeover, UltraTech’s installed capacity went up from 13 MTPA to 31 MTPA. Grasim Industries had to shell out Rs 2,200 crore over a period of three years for a majority stake in Ultratech Cement. Today, UltraTech maintains its leadership position with an installed capacity of 52 MTPA, with Holcim at the no. 2 position with combined capacity of 45 MTPA through ACC and Ambuja Cement.These are just a few samples of big ticket deals that have happened in the cement sector in India since late nineties. There have been many more big and small takeovers and mergers by domestic players since mid-1990s and by foreign players since late-1990s (see box). According to the data published by the Department of Industrial Policy and Promotion, the cement sector attracted foreign direct investments (FDI) worth US$ 2.62 bn between April 2000 to May 2012, which is an ample indication of the fact that the cement sector has been attracting foreign investors in droves.The key M&A triggersClearly, the cement biggies have gone on a shopping spree since during the last decade or so. And not without reason. There are compelling reasons why domestic and foreign cement majors appear to be so bullish on India. "Major reasons for consolidation were excess capacity and entry of foreign players who wanted a pie of untapped Indian market…Apart from above two reasons, another factor that is leading to consolidation is the rising cost of greenfield capacity which also tends to have longer gestation period. Existing players are eyeing companies who are unable to meet rising cost of raw materials due to increasing imported coal prices. On the other hand, the top players who want to spread their reach are tapping such companies as it saves on time factor of greenfield capacities," says Alok Sanghi, Director, Sanghi Industries.
Commenting on the reasons for consolidation, Jailesh Dalal, Director, JAYCEE Buildcon (India), says "The Indian cement industry is fragmented and large domestic and international players would try to consolidate their position going forward for geographical diversification, concentrated focus on operational efficiency, challenges in acquiring land/limestone resources, exit of smaller players and divesture of cement businesses by diversified groups."Now, let’s look at each of these reasons why Indian cement industry is passing through the consolidation phase.Overcapacity

During 2007-12, cement producers added capacity to the tune of 150 MTPA, thereby almost doubling the total installed capacity to 303 MTPA in FY2012-13. According to a report by research firm RNCOS, "It is anticipated that the cement industry players will continue to increase their annual cement output in coming years and the country’s cement production will grow at a compound annual growth rate (CAGR) of around 12 per cent during 2011-12 to 2013-14." According to projections, by 2017 the total capacity nationally would add up to 470 MTPA.The increase in capacities by many of the Indian companies was in anticipation of demand from the infrastructure sector which failed to materialise. In a situation where demand fails to keep pace with supply, the capacity utilization rate is bound to decelerate. The capacity utilisation rate for the cement industry in India has dropped from 93 per cent in FY2006-07 to 75 per cent in FY2011-12. The fall-out of such overcapacity situation is that the cement prices are likely to come under downward pressure which would make survival difficult for smaller cement companies with capacities less than 1 MTPA and therefore vulnerable for takeover. However, the fact that cement majors have built up capacities in advance is an indication that these companies expect demand for cement to remain firm due to construction activity, which is expected to gather momentum due to government’s policy to boost investments in infrastructure.Infrastructure PotentialIndia’s high housing and infrastructure deficits points to the huge potential for development of housing and infrastructure. The cement sector will benefit hugely as and when the momentum in housing and infra development picks up. This potential for development has been attracting major players in hordes from across the world. The demand for cement, being a derived demand, primarily depends on the industrial construction, real estate business, construction activities and investments in the infrastructure sector.Currently, the housing sector consumes 55-60 per cent of cement produced in India and this is expected to change in the next few years when the emphasis will shift on infrastructure development such as roads, bridges, airports, and railways, which will consume a significant percentage of cement produced in the country. The consumption of cement in agriculture is negligible today; but with a greater thrust on agriculture and the suggested ‘second green revolution’, this sector too will extensively use cement to build warehouses and other logistics.But instead of opting to set up cement plants themselves, it makes sense for the foreign players to take the acquisition route not just to make foray into India but also ramp up capacity quickly. The high potential for growth in demand for cement is amply evident from the fact that the per capita cement consumption in India was 230 kg in 2010, which is almost half of the global average of around 450 kg and way below the Chinese average per capita consumption of 1220 kg. Hence, domestic and foreign cement companies remain bullish on the prospects of cement industry in India.High capital cost & long gestation periodA cement plant is typically a capital intensive business and to establish a greenfield project takes about three years. The cost of setting up a greenfield capacity has reportedly shot up from $120 per tonne to $160 per tonne in just two years. Besides, the cement business has a long gestation period and, depending on the market situation, the break-even point may extend to three-four years at an operating level of 70-75 per cent. The high capital cost and long gestation period makes establishing a new cement plant an unattractive business proposition. Hence, established and large players may prefer to poach on the existing and established players to beat the competition and increase their market share. "The cement sector is slowly heading for a major consolidation as greenfield projects are becoming difficult to set up due to increased hassles in areas like mineral concession, land acquisition and related environmental and operational issues. This may lead the cement industry in India to be consolidated in the hands of a few major giant cement companies and only a few cement companies with single or smaller capacity plants shall continue to operate purely due to regional and local factors," says P K Ghosh, Chairman, Ercom Engineers.Entry barriers & cumbersome proceduresDifficulty in accessing limestone reserves, which is a key input in cement production, acts as a significant entry barrier for new entrants. To overcome this difficulty, takeover of companies with access to limestone reserves is the easiest route to crossing the entry barrier. No wonder, none of the foreign cement majors tried to set up a greenfield cement plant as prospecting for limestone reserves is a time-consuming process. Even if the limestone reserves are established, getting the mining rights, railway siding, etc. can reportedly take upto 7-8 years, with only 25 per cent chance of striking enough limestone reserves to last for the entire economic life-span of the plant. Hence, acquisition is bound to pick up further momentum as more cement majors enter the Indian market.The benefits of consolidationThe consolidation in the cement industry would prove to be beneficial both for the acquiring companies as well as for the cement industry. Some of the benefits that would ensue from consolidation are as follows:
Economies of scaleA large cement company enjoys the benefits of economies of scale. Mergers and acquisitions bring about consolidation of capacities which adds up the benefits of scale. The economies of scale enable the company to reduce the production costs so that it can reduce the cement price to maintain an edge over the competitors.Extended reach and increased revenuesWhen a company takes over the production and distribution facilities of another company, it immediately extends its geographical reach and increases its market share on account of expansion of the market for its product. The market expansion helps in ramping up the revenues of the company within a short span of time. The enhanced geographical reach may also result in substantial reduction in transportation costs which are quite high as cement is a bulk commodity.Technological upgradationThe new energy-efficient but capital-intensive "dry" production technology offers to the companies efficiencies that provide vital edge over the companies not deploying such technologies. Small manufacturers may not possess the requisite financial resources or production volumes to be able to afford the most efficient technology, which puts them at a competitive cost disadvantage. The entry of foreign players has led to technological upgradation and innovation in Indian cement industry. "Despite the fact that the technology used by Indian cement companies is among the best in the world, more innovation is required to ensure that cement plans are not only environment-friendly, but also low-cost in nature. M&As in last decade has helped Indian firms propel to global standards. Foreign firms who took over Indian firms have made most of the investments in India in the last decade for upgrading technology and raising capacity. With higher spend on technology, existing players are likely to focus more on ready mix concrete, bulk sales and blended cement to ensure improvement in quality as well as environment consciousness with sustainable construction," says Sanghi.The Road AheadGoing forward, the acquisitions space is going to get hotter, with lot of small and mid-sized cement companies up for grabs. Once the economies of scale kick in on account of consolidation, the cement prices are likely to remain competitive yet remunerative. This would benefit both the cement companies as well as cement consumers. Summarising the benefits of consolidation, Dalal says, "M&As would largely have a positive impact in the cement industry in India on account of value creation, economies of scale and cost efficiencies, operational and supply chain efficiencies, higher competitiveness, technology transfer, better research and development and high quality products, financial leveraging and optimization of profitability and increased focus on health, safety and environment. In the future as well, M&As would augur well for the industry as it would bring world-class technology, products and operational efficiencies into India." Sanghi too feels that M&As would be beneficial and says, "M&As in cement industry is likely to bring pricing power, improve profitability and reduce cost of branding for top players. Through M&As, top players would have higher vertical integration and locational advantage with respect to sourcing raw materials and market reach."Of course, there is always the possibility of major companies forming a cartel to keep the cement prices artificially high, but with the Competition Commission of India keeping a vigil over the production figures, capacity utilization and cement prices, the cement companies would be wary of indulging in such malpractices. Sanghi too dismisses fear of cartelization saying, "If there was (cartelisation) as is claimed, cement companies would not have reported losses in any quarter. Also, prices would have been same across the year, if there was cartelization. But every year, cement prices fall during monsoon because there is a slowdown in demand; while prices rise on and around Diwali due to surge in demand from real estate."To sum up, consolidation is good for the cement industry and there are sunny days ahead for the industry in times to come.

Concrete

Refractory demands in our kiln have changed

Published

4 days ago

February 20, 2026

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Radha Singh, Senior Manager (P&Q), Shree Digvijay Cement, points out why performance, predictability and life-cycle value now matter more than routine replacement in cement kilns.

As Indian cement plants push for higher throughput, increased alternative fuel usage and tighter shutdown cycles, refractory performance in kilns and pyro-processing systems is under growing pressure. In this interview, Radha Singh, Senior Manager (P&Q), Shree Digvijay Cement, shares how refractory demands have evolved on the ground and how smarter digital monitoring is improving kiln stability, uptime and clinker quality.

How have refractory demands changed in your kiln and pyro-processing line over the last five years?
Over the last five years, refractory demands in our kiln and pyro line have changed. Earlier, the focus was mostly on standard grades and routine shutdown-based replacement. But now, because of higher production loads, more alternative fuels and raw materials (AFR) usage and greater temperature variation, the expectation from refractory has increased.
In our own case, the current kiln refractory has already completed around 1.5 years, which itself shows how much more we now rely on materials that can handle thermal shock, alkali attack and coating fluctuations. We have moved towards more stable, high-performance linings so that we don’t have to enter the kiln frequently for repairs.
Overall, the shift has been from just ‘installation and run’ to selecting refractories that give longer life, better coating behaviour and more predictable performance under tougher operating conditions.

What are the biggest refractory challenges in the preheater, calciner and cooler zones?
• Preheater: Coating instability, chloride/sulphur cycles and brick erosion.
• Calciner: AFR firing, thermal shock and alkali infiltration.
• Cooler: Severe abrasion, red-river formation and mechanical stress on linings.
Overall, the biggest challenge is maintaining lining stability under highly variable operating conditions.

How do you evaluate and select refractory partners for long-term performance?
In real plant conditions, we don’t select a refractory partner just by looking at price. First, we see their past performance in similar kilns and whether their material has actually survived our operating conditions. We also check how strong their technical support is during shutdowns, because installation quality matters as much as the material itself.
Another key point is how quickly they respond during breakdowns or hot spots. A good partner should be available on short notice. We also look at their failure analysis capability, whether they can explain why a lining failed and suggest improvements.
On top of this, we review the life they delivered in the last few campaigns, their supply reliability and their willingness to offer plant-specific custom solutions instead of generic grades. Only a partner who supports us throughout the life cycle, which includes selection, installation, monitoring and post-failure analysis, fits our long-term requirement.

Can you share a recent example where better refractory selection improved uptime or clinker quality?
Recently, we upgraded to a high-abrasion basic brick at the kiln outlet. Earlier we had frequent chipping and coating loss. With the new lining, thermal stability improved and the coating became much more stable. As a result, our shutdown interval increased and clinker quality remained more consistent. It had a direct impact on our uptime.

How is increased AFR use affecting refractory behaviour?
Increased AFR use is definitely putting more stress on the refractory. The biggest issue we see daily is the rise in chlorine, alkalis and volatiles, which directly attack the lining, especially in the calciner and kiln inlet. AFR firing is also not as stable as conventional fuel, so we face frequent temperature fluctuations, which cause more thermal shock and small cracks in the lining.
Another real problem is coating instability. Some days the coating builds too fast, other days it suddenly drops, and both conditions impact refractory life. We also notice more dust circulation and buildup inside the calciner whenever the AFR mix changes, which again increases erosion.
Because of these practical issues, we have started relying more on alkali-resistant, low-porosity and better thermal shock–resistant materials to handle the additional stress coming from AFR.

What role does digital monitoring or thermal profiling play in your refractory strategy?
Digital tools like kiln shell scanners, IR imaging and thermal profiling help us detect weakening areas much earlier. This reduces unplanned shutdowns, helps identify hotspots accurately and allows us to replace only the critical sections. Overall, our maintenance has shifted from reactive to predictive, improving lining life significantly.

How do you balance cost, durability and installation speed during refractory shutdowns?
We focus on three points:
• Material quality that suits our thermal profile and chemistry.
• Installation speed, in fast turnarounds, we prefer monolithic.
• Life-cycle cost—the cheapest material is not the most economical. We look at durability, future downtime and total cost of ownership.
This balance ensures reliable performance without unnecessary expenditure.

What refractory or pyro-processing innovations could transform Indian cement operations?
Some promising developments include:
• High-performance, low-porosity and nano-bonded refractories
• Precast modular linings to drastically reduce shutdown time
• AI-driven kiln thermal analytics
• Advanced coating management solutions
• More AFR-compatible refractory mixes

These innovations can significantly improve kiln stability, efficiency and maintenance planning across the industry.

Concrete

Digital supply chain visibility is critical

Published

4 days ago

February 20, 2026

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MSR Kali Prasad, Chief Digital and Information Officer, Shree Cement, discusses how data, discipline and scale are turning Industry 4.0 into everyday business reality.

Over the past five years, digitalisation in Indian cement manufacturing has moved decisively beyond experimentation. Today, it is a strategic lever for cost control, operational resilience and sustainability. In this interview, MSR Kali Prasad, Chief Digital and Information Officer, Shree Cement, explains how integrated digital foundations, advanced analytics and real-time visibility are helping deliver measurable business outcomes.

How has digitalisation moved from pilot projects to core strategy in Indian cement manufacturing over the past five years?
Digitalisation in Indian cement has evolved from isolated pilot initiatives into a core business strategy because outcomes are now measurable, repeatable and scalable. The key shift has been the move away from standalone solutions toward an integrated digital foundation built on standardised processes, governed data and enterprise platforms that can be deployed consistently across plants and functions.
At Shree Cement, this transition has been very pragmatic. The early phase focused on visibility through dashboards, reporting, and digitisation of critical workflows. Over time, this has progressed into enterprise-level analytics and decision support across manufacturing and the supply chain,
with clear outcomes in cost optimisation, margin protection and revenue improvement through enhanced customer experience.
Equally important, digital is no longer the responsibility of a single function. It is embedded into day-to-day operations across planning, production, maintenance, despatch and customer servicing, supported by enterprise systems, Industrial Internet of Things (IIoT) data platforms, and a structured approach to change management.

Which digital interventions are delivering the highest ROI across mining, production and logistics today?
In a capital- and cost-intensive sector like cement, the highest returns come from digital interventions that directly reduce unit costs or unlock latent capacity without significant capex.
Supply chain and planning (advanced analytics): Tools for demand forecasting, S&OP, network optimisation and scheduling deliver strong returns by lowering logistics costs, improving service levels, and aligning production with demand in a fragmented and regionally diverse market.
Mining (fleet and productivity analytics): Data-led mine planning, fleet analytics, despatch discipline, and idle-time reduction improve fuel efficiency and equipment utilisation, generating meaningful savings in a cost-heavy operation.
Manufacturing (APC and process analytics): Advanced Process Control, mill optimisation, and variability reduction improve thermal and electrical efficiency, stabilise quality and reduce rework and unplanned stoppages.
Customer experience and revenue enablement (digital platforms): Dealer and retailer apps, order visibility and digitally enabled technical services improve ease of doing business and responsiveness. We are also empowering channel partners with transparent, real-time information on schemes, including eligibility, utilisation status and actionable recommendations, which improves channel satisfaction and market execution while supporting revenue growth.
Overall, while Artificial Intelligence (AI) and IIoT are powerful enablers, it is advanced analytics anchored in strong processes that typically delivers the fastest and most reliable ROI.

How is real-time data helping plants shift from reactive maintenance to predictive and prescriptive operations?
Real-time and near real-time data is driving a more proactive and disciplined maintenance culture, beginning with visibility and progressively moving toward prediction and prescription.
At Shree Cement, we have implemented a robust SAP Plant Maintenance framework to standardise maintenance workflows. This is complemented by IIoT-driven condition monitoring, ensuring consistent capture of equipment health indicators such as vibration, temperature, load, operating patterns and alarms.
Real-time visibility enables early detection of abnormal conditions, allowing teams to intervene before failures occur. As data quality improves and failure histories become structured, predictive models can anticipate likely failure modes and recommend timely interventions, improving MTBF and reducing downtime. Over time, these insights will evolve into prescriptive actions, including spares readiness, maintenance scheduling, and operating parameter adjustments, enabling reliability optimisation with minimal disruption.
A critical success factor is adoption. Predictive insights deliver value only when they are embedded into daily workflows, roles and accountability structures. Without this, they remain insights without action.

In a cost-sensitive market like India, how do cement companies balance digital investment with price competitiveness?
In India’s intensely competitive cement market, digital investments must be tightly linked to tangible business outcomes, particularly cost reduction, service improvement, and faster decision-making.
This balance is achieved by prioritising high-impact use cases such as planning efficiency, logistics optimisation, asset reliability, and process stability, all of which typically deliver quick payback. Equally important is building scalable and governed digital foundations that reduce the marginal cost of rolling out new use cases across plants.
Digitally enabled order management, live despatch visibility, and channel partner platforms also improve customer centricity while controlling cost-to-serve, allowing service levels to improve without proportionate increases in headcount or overheads.
In essence, the most effective digital investments do not add cost. They protect margins by reducing variability, improving planning accuracy, and strengthening execution discipline.

How is digitalisation enabling measurable reductions in energy consumption, emissions, and overall carbon footprint?
Digitalisation plays a pivotal role in improving energy efficiency, reducing emissions and lowering overall carbon intensity.
Real-time monitoring and analytics enable near real-time tracking of energy consumption and critical operating parameters, allowing inefficiencies to be identified quickly and corrective actions to be implemented. Centralised data consolidation across plants enables benchmarking, accelerates best-practice adoption, and drives consistent improvements in energy performance.
Improved asset reliability through predictive maintenance reduces unplanned downtime and process instability, directly lowering energy losses. Digital platforms also support more effective planning and control of renewable energy sources and waste heat recovery systems, reducing dependence on fossil fuels.
Most importantly, digitalisation enables sustainability progress to be tracked with greater accuracy and consistency, supporting long-term ESG commitments.

What role does digital supply chain visibility play in managing demand volatility and regional market dynamics in India?
Digital supply chain visibility is critical in India, where demand is highly regional, seasonality is pronounced, and logistics constraints can shift rapidly.
At Shree Cement, planning operates across multiple horizons. Annual planning focuses on capacity, network footprint and medium-term demand. Monthly S&OP aligns demand, production and logistics, while daily scheduling drives execution-level decisions on despatch, sourcing and prioritisation.
As digital maturity increases, this structure is being augmented by central command-and-control capabilities that manage exceptions such as plant constraints, demand spikes, route disruptions and order prioritisation. Planning is also shifting from aggregated averages to granular, cost-to-serve and exception-based decision-making, improving responsiveness, lowering logistics costs and strengthening service reliability.

How prepared is the current workforce for Industry 4.0, and what reskilling strategies are proving most effective?
Workforce preparedness for Industry 4.0 is improving, though the primary challenge lies in scaling capabilities consistently across diverse roles.
The most effective approach is to define capability requirements by role and tailor enablement accordingly. Senior leadership focuses on digital literacy for governance, investment prioritisation, and value tracking. Middle management is enabled to use analytics for execution discipline and adoption. Frontline sales and service teams benefit from
mobile-first tools and KPI-driven workflows, while shop-floor and plant teams focus on data-driven operations, APC usage, maintenance discipline, safety and quality routines.
Personalised, role-based learning paths, supported by on-ground champions and a clear articulation of practical benefits, drive adoption far more effectively than generic training programmes.

Which emerging digital technologies will fundamentally reshape cement manufacturing in the next decade?
AI and GenAI are expected to have the most significant impact, particularly when combined with connected operations and disciplined processes.
Key technologies likely to reshape the sector include GenAI and agentic AI for faster root-cause analysis, knowledge access, and standardisation of best practices; industrial foundation models that learn patterns across large sensor datasets; digital twins that allow simulation of process changes before implementation; and increasingly autonomous control systems that integrate sensors, AI, and APC to maintain stability with minimal manual intervention.
Over time, this will enable more centralised monitoring and management of plant operations, supported by strong processes, training and capability-building.

Concrete

Cement Additives for Improved Grinding Efficiency

Published

4 days ago

February 20, 2026

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Shreesh A Khadilkar discusses how advanced additive formulations allow customised, high-performance and niche cements—offering benefits while supporting blended cements and long-term cost and carbon reduction.

Cement additives are chemicals (inorganic and organic) added in small amounts (0.01 per cent to 0.2 per cent by weight) during cement grinding. Their main job? Reduce agglomeration, prevent pack-set, and keep the mill running smoother. Thus, these additions primarily improve, mill thru-puts, achieve lower clinker factor in blended cements PPC/PSC/PCC. Additionally, these additives improve concrete performance of cements or even for specific special premium cements with special USPs like lower setting times or for reduced water permeability in the resultant cement mortars and concrete (water repellent /permeation resistant cements), corrosion resistance etc.
The cement additives are materials which could be further differentiated as:

Grinding aids:
• Bottlenecks in cement grinding capacity, such materials can enhance throughputs
• Low specific electrical energy consumption during cement grinding
• Reduce “Pack set” problem and improve powder flowability

Quality improvers:
• Opportunity for further clinker factor reduction
• Solution for delayed cement setting or strength development issues at early or later ages.

Others: materials which are used for specific special cements with niche properties as discussed in the subsequent pages.
When cement additives are used as grinding aids or quality improvers, in general the additives reduce the inter-particle forces; reduce coating over grinding media and mill internals. Due to creation of like charges on cement particles, there is decreased agglomeration, much improved flowability, higher generation of fines better dispersion of particles in separator feed and reduction of mill filling level (decrease of residence time). However, in VRM grinding; actions need to be taken to have stable bed formation on the table.
It has been reported in literature and also substantiated by a number of detailed evaluations of different cement additive formulations in market, that the cement additive formulations are a combination of different chemical compounds, typically composed of:

Accelerator/s for the hydration reaction of cements which are dependent on the acceleration effect desired in mortar compressive strengths at early or later ages, the choice of the materials is also dependent on clinker quality and blending components (flyash / slag) or a mix of both.
Water reducer / workability / wet-ability enhancer, which would show impact on the resultant cement mortars and concrete. Some of the compounds (retarders) like polysaccharide derivatives, gluconates etc., show an initial retarding action towards hydration which result in reducing the water requirements for the cements thus act as water reducers, or it could be some appropriate polymeric molecules which show improved wet-ability and reduce water demand. These are selected based on the mineral component and type of cements (PPC/PSC /PCC).
Grinding aids: Compounds that work as Grinding Aid i.e. which would enhance Mill thru-put on one hand as well as would increase the early strengths due to the higher fines generation/ or activation of cement components. These compounds could be like alkanol-amines such as TIPA, DEIPA, TEA etc. or could be compounds like glycols and other poly-ols, depending on whether it is OPC or PPC or PSC or PCC manufacture.

Mechanism of action — Step By Step—

Reduce Agglomeration, Cement particles get electrostatically charged during grinding, stick together, form “flocs”, block mill efficiency, waste energy. Grinding aid molecules adsorb onto particle surfaces, neutralise charge, prevent re-agglomeration.
Improve Powder Flowability, Adsorbed molecules create a lubricating layer, particles slide past each other easier, better mill throughput, less “dead zone” buildup.
Also reduces caking on mill liners, diaphragms, and separator screens, less downtime for cleaning.
Enhance Grinding Efficiency (Finer Product Faster), By preventing agglomeration, particles stay dispersed more surface area exposed to grinding media, finer grind achieved with same energy input, Or: same fineness achieved with less energy, huge savings.
Example:
• Without aid ? 3500 cm²/g Blaine needs 40 kWh/ton
• With use of optimum grinding aid same fineness at 32 kWh/ton 20 per cent energy savings
Reduce Pack Set and Silo Caking Grinding aids (GA) inhibit hydration of free lime (CaO) during storage prevents premature hardening or “pack set” in silos. especially critical in humid climates or with high free lime clinker.
It may be stated here that Overdosing of GA can cause: – Foaming in mill (especially with glycols) reduces grinding efficiency, retardation of cement setting (especially with amines/acids), odor issues (in indoor mills) – Corrosion of mill components (if acidic aids used improperly)
The best practice to optimise use of GA is Start with 0.02 per cent to 0.05 per cent dosage test fineness, flow, and set time adjust up/down. Due to static charge of particles, the sample may stick to the sides of sampler pipe and so sampling need to be properly done.
Depending on type of cements i.e. OPC, PPC, PSC, PCC, the grinding aids combinations need to be optimised, a typical Poly carboxylate ether also could be a part of the combo grinding aids

Cement additives for niche properties of the cement in concrete.
The cement additives can also be tailor made to create specific niche properties in cements, OPC, PPC, PSC and PCC to create premium or special brands. The special niche properties of the cement being its additional USP of such cement products, and are useful for customers to build a durable concrete structure with increased service life.

Such properties could be:
• Additives for improved concrete performance of cements, high early strength in PPC/PSC/PCC, much reduced water demand in cement, cements with improved slump retentivity in concrete, self-compacting, self levelling in concrete, cements with improved adhesion property of the cement mortar
• Water repellence / water proofing, permeability resistance in mortars and concrete.
• Biocidal cement
• Photo catalytic cements
• Cements with negligible ASR reactions etc.

Additives for cements for improved concrete performance
High early strengths: Use of accelerators. These are chemical compounds which enhance the degree of hydration of cement. These can include setting or hardening accelerators depending on whether their action occurs in the plastic or hardened state respectively. Thus, the setting accelerators reduce the setting time, whereas the hardening accelerators increase the early age strengths. The setting accelerators act during the initial minutes of the cement hydration, whereas the hardening accelerators act mainly during the initial days of hydration.
Chloride salts are the best in class. However, use of chloride salts as hardening accelerators are strongly discouraged for their action in promoting the corrosion of rebar, thus, chloride-free accelerators are preferred. The hardening accelerators could be combinations of compounds like nitrate, nitrite and thiocyanate salts of alkali or alkaline earth metals or thiosulphate, formate, and alkanol amines depending on the cement types.
However, especially in blended cements (PPC/PSC/PCC the increased early strengths invariably decrease the 28 day strengths. These aspects lead to creating combo additives along with organic polymers to achieve improved early strengths as well as either same or marginally improved 28 days strengths with reduced clinker factor in the blended cement, special OPC with reduced admixture requirements. With use of appropriate combination of inorganic and organic additives we could create an OPC with substantially reduced water demand or improved slump retentivity. Use of such an OPC would show exceptional concrete performance in high grade concretes as it would exhibit lower admixture requirements in High Grade Concretes.
PPC with OPC like properties: With the above concept we could have a PPC, having higher percentage flyash, with a combo cement additive which would have with concrete performance similar to OPC in say M40/M50 concrete. Such a PPC would produce a high-strength PPC concrete (= 60 MPa @ 28d) + improved workability, durability and sustainability.
Another interesting aspect could also be of using ultrafine fine flyash /ultrafine slags as additions in OPC/PPC/PSC for achieving lower clinker factor as well as to achieve improved later age strengths with or without a combo cement additive.
The initial adhesion property at sites of especially PPC/PSC/PCC based mortars can be improved through use of appropriate organic polymers addition during the manufacture of these cements. Such cements would have a better adhesion property for plastering/brick bonding etc., as it has much lower rebound loss of their mortars in such applications.
It is needless to mention here that with use of additives, we could also have cement with viscosity modifying cement additives, for self-compaction and self-leveling concrete performance.
Use of Phosphogypsum retards the setting time of cements, we can use additive different additive combos to overcome retardation and improve the 1 day strengths of the cements and concretes.

About the author:
Shreesh Khadilkar, Consultant & Advisor, Former Director Quality & Product Development, ACC, a seasoned consultant and advisor, brings over 37 years of experience in cement manufacturing, having held leadership roles in R&D and product development at ACC Ltd. With deep expertise in innovative cement concepts, he is dedicated to sharing his knowledge and improving the performance of cement plants globally.