Economy & Market
2014 will not show a sharp revival although we expect the conditions to remain stable
Published
4 years agoon
By
admin
Teena Virmani, Vice- President, Kotak Securities The year 2013 was tough for the industry, and 2014 is not expected to fare much better. Though things will be better, there is still a long way to go, for the sector to get back on track. Teena Virmani, Vice- President, Kotak Securities, shares her views about the year ahead. Excerpts from the interview.
So how do you assess the performance of the cement sector in 2013?
The current installed capacity of the cement industry stand at around 330 – 340 million tonnes per annum. The cement demand, however, was much lower. Most companies had their production volumes up to 60 – 70 per cent of installed capacity. The cement demand growth hovered at around 4 – 5 per cent in the fiscal year. The slowdown was a spillover of decreased growth in consumer sectors such as infrastructure and housing. The GDP of the country too, was very low.
The housing sector, which is the major consumer of cement, saw a decline in real estate demand.. One of the reasons was high interest rates on loans available for the housing sector. Besides this, the ban on sand mining too, impacted the sector.
We also saw very little activity in the infra sector. No major projects were launched and the actual execution of those granted did not take place. Overall, 2013 was not that good for the cement manufacturers.
Has setting up a cement plant become more difficult now?
Land acquisition process is not as smooth as it should be. When it comes to acquiring and building a cement plant, the promoters have to go through a lengthy approval process right from environment clearance to mining leases. The number of approvals required is very large and the time taken for granting is too long. This definitely slows down the growth.
Do you expect good cement demand in 2014?
2014 will not show a sharp revival although we expect the conditions to remain stable at least, if not improve. We feel that after the elections, once we see a stable government in place, we will have a clear idea of the direction in which we are moving ahead. I don´t think new governance will have an immediate impact on the market; it will be a slow and a gradual process. Projects will be planned, approved, tenders will be floated and contracts will be awarded. Only after the projects take off at ground level will we see any demand from the infra sector. So, after the elections, we do not expect any drastic improvements for at least 3- 5 quarters. At the most, we may see a positive and optimistic mindset impacting the market after the elections.
Demand from the rural housing sector too, will help in a revival and we expect it to be at least at 5 per cent. In 2015, the demand is likely to pick up.
How do you view consolidations that happened in 2013?
We saw several major consolidations in the last year. There were capacity additions, too, though the cement demand was low. Industries have to grow whether or not there is demand in the market. 2013 was a year of consolidation and we believe it was the right move for buyers. The consolidations happened at very decent rates and the dollar was at a high so both parties benefited. It was a good move to take over rather than setting up a new facility. The cost of taking over is well worth it, given the hassles of getting a slew of clearances and mining leases in the case of setting up a new plant. Replacement costs too, are very high. In a way, the slowdown was a good opportunity for the buyers.
How do you expect cement prices to move in 2014?
The last fifteen days of December usually see a dip in prices. This is an established pattern as some major cement companies close their books in December. They have to clear the cement stocks before the books are closed. As a result, the market has an over-supply of cement in this period. Prices usually come down at this time but we expect them to start improving from January onwards and keep rising till May – June 2014. After June, the pricing will depend on the monsoon. There is a likelihood of prices dipping in June. Overall, we expect prices to be on the higher side in 2014 as compared to 2013. We are expecting better days for the housing, construction and infrastructure sectors and that will certainly help in improving cement prices.
Will cement companies have a better profit margins in 2014 with the decreasing costs of production?
A good cost structure will have to be put in place for the industry. As cement prices went up, the cost of production too, went up dramatically, the cost of raw material went up, and the rise in diesel prices raised the cost of freight transport. Although the cost of coal had come down slightly, it was offset by the rise of the dollar. We don´t see costs coming down in the near future. Cement prices may go up but the cost of production is not likely to come down.
Are cement manufacturers cutting production to save on limestone reserves?
No, the cut in production is purely related to the demand and supply scenario. It has nothing to do with conservation of limestone reserves. Companies like ACC, Ambuja, UltraTech, have reserves sufficient for more than 60 – 70 years, so there is no need to conserve resources by cutting production.
The prices and the production capacity is governed by the demand and 2013 saw a dip in demand. The cut in production was in response to the lower demand. As the infrastructure and housing sectors pick up, we will see the production volumes rising correspondingly.
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Concrete
Efficient Cooling Solution Boosts Gearbox Uptime
Published
7 hours agoon
July 23, 2025By
admin
Efficient Oil Cooling for Gearbox in the Cement Industry. How a High-Performance Plate Heat Exchanger Ensured Thermal Stability and Operational Continuity.
Contributed by: Narendra Joshi and Sourabh Mishra
Application: Gearbox Oil Cooling
Objective: To maintain optimal oil temperature in high-viscosity lubrication systems for gearboxes in cement plants, ensuring uninterrupted operations and minimizing production losses due
to overheating.
Challenge: A prominent cement manufacturing company’s conventional cooling systems were failing to maintain the oil temperature within the optimal range, jeopardizing equipment performance and leading to avoidable downtime.
Background with the Existing System
In heavy-duty industrial applications, particularly in the cement industry, gearboxes are critical components that must operate under high mechanical loads and harsh conditions. These gearboxes rely on lubrication systems where oil plays a dual role, lubrication and heat dissipation. A recurring challenge in such setups is managing the temperature of the gearbox oil. When oil heats beyond a critical limit, its viscosity drops, reducing its ability to form a protective film. This leads to increased friction between components, heat generation, and eventual damage to gearbox components — directly impacting plant uptime and production output.
Delivering Sustainable Heat Transfer Solution with HRS FUNKE High Efficiency Heat Exchanger
This system was selected for its:
- Excellent thermal performance, ensuring rapid and efficient oil cooling even with high-viscosity fluids.
- Leakage-proof operation, with no cross-contamination between cooling water and lubrication oil.
- Robust design, capable of withstanding high operating pressures and variable flow conditions.
The plate exchanger was custom configured based on the oil’s properties, desired outlet temperature, and ambient heat load, ensuring that the oil remained within the specified viscosity range necessary for maintaining gearbox operation and lubrication integrity.
Performance Benefits Delivered
- Oil temperature control and maintained consistently within target range
- Viscosity stability and prevented breakdown of lubrication film
- Equipment reliability and reduced risk of gearbox overheating or failure
- Production continuity and eliminated unplanned stoppages
- Long-Term savings and lower maintenance costs and extended oil life
Solution: To address the problem, HRS Process Systems Ltd recommended the installation of a Funke Plate Heat Exchanger a compact, high-efficiency thermal solution engineered specifically for industrial lubrication oil cooling.
Conclusion: The customer achieved precision oil temperature control, ensuring that the gearboxes operated at optimal conditions. This not only safeguarded the mechanical integrity of the gearbox but also directly contributed to higher plant uptime and improved production efficiency in heavy industries like cement manufacturing.
(Communication by the management of HRS Process Systems Ltd)
Concrete
How Upgrades Can Deliver Energy Savings Across the Cement Process
Published
1 week agoon
July 16, 2025By
admin
Jacob Brinch-Nielsen, Vice President of Professional Services, FLSmidth Cement, brings together recommendations from experts across the flow sheet to demonstrate the role of upgrades in optimising the cement manufacturing process.
Improving energy efficiency in material transport
Pneumatic conveying offers a cleaner and more contained alternative to mechanical conveying. However, pneumatic systems can also be energy-intensive, with inefficiencies arising from air leakage, pressure losses, and outdated equipment designs. Optimising these systems can significantly reduce energy consumption and operating costs.
“One major challenge is maintaining efficient air-to-material ratios, as excessive air use leads to unnecessary power consumption,” explains Emilio Vreca, Manager of PT Product Engineering “Leaks in piping and inefficient compressors further compound energy losses. To address these issues, upgrading to the latest pneumatic conveying solutions can yield substantial improvements.”
The latest pump design—the Fuller-Kinyon® (FK) ‘N’ Pump—provides power savings of up to 15 per cent thanks to an improved seal, while an extended barrel and screw design have improved volumetric efficiency by more than 15 per cent. Similarly, the latest generation Ful-Vane™ Air Compressor has been engineered for increased energy efficiency, with an improved inlet area for capturing larger air flows and compatibility with variable frequency drives.
Optimising energy efficiency in packing and dispatch
Even minor inefficiencies in bagging and palletising can lead to higher maintenance demands, increased material waste, and unnecessary energy use. Reducing these inefficiencies is yet another lever to improve overall plant performance and sustainability.
Upgrading rotary packers enhances weighing accuracy, reduces spout-to-spout variations, and lowers reject rates, improving both product consistency and energy efficiency. Similarly, replacing pneumatic drive systems in palletisers with electric alternatives eliminates compressed air dependency, leading to more precise bag handling and reduced energy demand. These targeted upgrades help streamline operations while minimising environmental impact.
A key development in dust control is the FILLPro™ Dust Reduction Kit for GIROMAT® EVO. “By refining material flow and fluidisation, FILLPro reduces dust emissions at the source, improving bagging efficiency and plant cleanliness,” explains Gabriele Rapizza, Proposal Engineer. “This reduces material loss, prevents blockages, and cuts down on maintenance, helping plants achieve a more stable and energy-efficient packing operation.”
How services contribute to increased energy efficiency
In the past, many viewed the role of the supplier as a “sell-and-move-on” model. Things have certainly changed. As cement producers face challenging markets, heightened competition, and increasingly ambitious decarbonisation targets there is little room to tolerate inefficiencies within the plant. The paradigm has shifted such that the value of expert services is as essential as the initial equipment supplied. Furthermore, as digital solutions progress at speed, a fluid, long-term partnership gives cement plants the best platform to take advantage of the latest tools.
Whether it’s an audit to identify why energy efficiency has decreased from one year to the next, or even an optimisation package preparing your plant for carbon capture solutions – we are believers in the principle that there is always more we can do to improve efficiency. For example, our Online Condition Monitoring Services (OCMS) provide continuous monitoring of critical equipment such as the kiln, mills, cooler and fans, aggregating data and utilising advanced algorithms to identify potential trouble spots. As the OEM and an experienced full solutions provider, we can support these services with expert advice, not only alerting you to a problem but also providing recommendations as to how to remedy it or attending site to support you in person.
Small upgrades, big impact
Energy efficiency is a critical factor, influencing both operational costs and sustainability goals. While large-scale innovations such as carbon capture will play an essential role in long-term decarbonisation (and steal the headlines), incremental mechanical upgrades offer an immediate pathway to lower energy consumption with minimal disruption.
By optimising key process areas — grinding, dosing, combustion, cooling, and material transport — you can achieve measurable energy savings while improving performance and flexibility. These solutions provide a strong return on investment and pave the way for a more sustainable cement industry.
Part 3 of 3. Read Part 1 in the May issue of Indian Cement Review and Par 2 in the June issue of the Indian Cement Review magazine.
(Communication by the management of the company)
Economy & Market
Hindalco Buys US Speciality Alumina Firm for $125 Million
Published
4 weeks agoon
June 25, 2025By
admin
This strategic acquisition marks a significant investment in speciality alumina, a key step by Aditya Birla Group’s metals flagship towards becoming future-ready by scaling its high-value, technology-led materials portfolio.
Hindalco Industries, the world’s largest aluminium company by revenue and the metals flagship of the $28 billion Aditya Birla Group, has announced the acquisition of a 100 per cent equity stake in US-based AluChem Companies—a prominent manufacturer of speciality alumina—for an enterprise value of $125 million. The transaction will be executed through Aditya Holdings, a wholly owned subsidiary.
This acquisition represents a pivotal investment in speciality alumina and advances Hindalco’s strategy to expand its high-value, technology-led materials portfolio.
Hindalco’s speciality alumina business, a key pillar of its value-added strategy, has delivered consistent double-digit growth in recent years. It has emerged as a high-growth, high-margin vertical within the company’s portfolio. As speciality alumina finds expanding applications across electric mobility, semiconductors, and precision ceramics, the deal positions Hindalco further up the innovation curve, enabling next-generation alumina solutions and value-accretive growth.
Kumar Mangalam Birla, Chairman of Aditya Birla Group, called the acquisition an important step in their global strategy to build a leadership position in value-added, high-tech materials.
“Our strategic foray into the speciality alumina space will not only accelerate the development of future-ready, sustainable solutions but also open new pathways to pursue high-impact growth opportunities. By integrating advanced technologies into our value chain, we are reinforcing our commitment to self-reliance, import substitution, and building scale in innovation-led businesses.”
Ronald P Zapletal, Founder, AluChem Companies, said the partnership with Hindalco would provide AluChem the ability and capital to scale up faster and build scale in North America.
“AluChem will benefit from their world-class sustainability and safety standards and practices, access to integrated operations and a consistent, reliable raw material supply chain. Their ability to leverage R&D capabilities and a talented workforce adds tremendous value to our innovation pipeline, helping drive market expansion beyond North America.”
An Eye on the Future
The global speciality alumina market is projected to grow significantly, with rising demand for tailored solutions in sectors such as ceramics, electronics, aerospace, and medical applications. Hindalco currently operates 500,000 tonnes of speciality alumina capacity and aims to scale this up to 1 million tonnes by FY2030.
Commenting on the development, Satish Pai, Managing Director, Hindalco Industries, said the deal reinforced their commitment to innovation and global expansion.
“As alumina gains increasing relevance in critical and clean-tech sectors, AluChem’s advanced chemistry capabilities will significantly enhance our ability to serve these fast-evolving markets. Importantly, it deepens our high-value-added portfolio with differentiated products that drive profitability and strengthen our global competitiveness.”
AluChem adds a strong North American presence to Hindalco’s portfolio, with an annual capacity of 60,000 tonnes across three advanced manufacturing facilities in Ohio and Arkansas. The company is a long-standing supplier of ultra-low soda calcined and tabular alumina, materials prized for their thermal and mechanical stability and widely used in precision engineering and high-performance refractories.
Saurabh Khedekar, CEO of the Alumina Business at Hindalco Industries, said the acquisition unlocked immediate synergies, including market access and portfolio diversification.
“Hindalco plans to work with AluChem’s high performance technology solutions and scale up production of ultra-low soda alumina products to drive a larger global market share.”
The transaction is expected to close in the upcoming quarter, subject to customary closing conditions and regulatory approvals.

Efficient Cooling Solution Boosts Gearbox Uptime

How Upgrades Can Deliver Energy Savings Across the Cement Process

Hindalco Buys US Speciality Alumina Firm for $125 Million

Star Cement launches ‘Star Smart Building Solutions’

Nuvoco Vistas reports record quarterly EBITDA

Efficient Cooling Solution Boosts Gearbox Uptime

How Upgrades Can Deliver Energy Savings Across the Cement Process

Hindalco Buys US Speciality Alumina Firm for $125 Million

Star Cement launches ‘Star Smart Building Solutions’
