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A leap towards a technology horizon

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Indian cement plants are gearing up for the future by embracing digitisation to earn a competitive advantage in the market. The plant is just one component of the cement value chain, but it remains one of the most important components in achieving operational efficiencies, higher energy efficiency, reduced carbon footprint, and overall business goals.

Over the last few years, cement companies are increasingly focusing on transforming the way they do business, through implementing the right technologies. They are investing heavily in digital assets to automate their operations. Artificial Intelligence, big data, cloud, IoT, and systems integration technologies are some of the new technology horizons that Indian cement companies are adopting to offer a competitive advantage and create sustainable growth in the near future.

The ongoing pandemic has made cement companies realise the importance of technology in cement plants. Cement companies today have started embracing various technologies to achieve considerable productivity gains and to recover from the impact of Covid-19. We spoke to companies like ACC, Shree Cement, JK Lakshmi, and KnowledgeLens, to understand various trends and technologies in the cement industry. Our takeaway is that Indian cement companies are on a journey to achieve resilient, agile, green, and efficient cement plants.

According to new market research by Global Market Estimates, the Global Artificial Intelligence in Cement Production Market is projected to grow at a CAGR value of 28.5% during the forecast period of 2021 to 2026. Predictive analysis and AI help to identify the inefficiencies in the process and hence a lot of cement companies are looking for deploying such solutions. Solution providers such as ABB, Siemens, ES Processing, Petuum, Halliburton, and thyssenkrupp among others are the players in the artificial intelligence in the cement production market.

Technology advancements

A strong IT infrastructure enables a fully integrated cement value chain. Right from algorithms, cement quality, energy efficiency, and cement-to-clinker ratios, technology can automatically track and improve the efficiency level of each piece of equipment and procedure.

ACC and Ambuja Cement have technologies such as Tool Location System (TLS) and Supervisory Control and Data Acquisition (SCADA) to increase plant efficiency and uptime. Neeraj Akhoury, CEO India LafargeHolcim, MD & CEO of Ambuja Cements, explains, ??aunched almost a year ago, another innovation – the Remote Troubleshooting Tool using Smart Glass Technology has proven to be a delight for site engineers. This two-way tool ensures timely and expert support to plants, especially during this pandemic where this tool has been considered a boon. Digital Eye is another technology utilised by both companies to digitally monitor factory and plant operations using drones and video analytics to operate effectively and increase safety.??/p>

Similarly, Orient Cement has taken IT initiatives to accelerate the digitisation journey by leveraging Industry 4.0 technologies to improve their plant?? Operational Visibility and bring in Predictive Analytics for better operational efficiency.

Predictive analysis is the buzzword today. In cement plants, it can be used for Equipment Monitoring and Predictive Maintenance by installing factory-fitted sensors. These sensors are intelligent enough to detect the source of the problem. Having such tools reduces inspection time and ordering time, which leads to a reduction in overall cost to the company.

Technologies around predictive quality and process control are also been deployed at cement plants for major processes such as raw material crushing and grinding, baking raw material, and clinkerisation. In a typical traditional method, this process depends on a lot of parameters like the speed of the mill, mill temperature, clinker feed temperature, grinding duration, etc, which makes it time-consuming and complicated. Having an advanced predictive system can detect variability across these parameters.

Cement companies have realised the need of improving their processes. Such is the case of Orient Cement, the company needed a robust technology that could facilitate a manufacturing data lake to facilitate historical analytics of the plant data for operational insights, anomalies detection, and areas of process improvement. The cement company implemented iLens ??Industrial IoT Solution at their Plant at Devapur.

Sudheesh Narayanan, Founder & CEO of Knowledge Lens, explains, ??e interfaced the Plant?? PLCs (Programmable Logic Controller) with in-built protocol support to perform real-time data acquisition of around 4000 parameters across multiple PLC Machines in 3 Units to monitor the assets, storage of historian data and a mechanism to backup, synchronise the data from plant network to the corporate network in a secure manner. The data was stored in a highly scalable big data platform which served as a unified storage repository to perform monitoring and analytics.??/p>

Therefore, Data analysis is the key. It is another important area where cement companies are looking at automation. A few cement companies use data obtained from their systems and processes to determine and assess cement quality and energy consumption.

Technology for Seamless Supply chain

Seamless logistic operations are important in every cement plant because the raw material and the finished product are reactive to external conditions like moisture, heat, impurities, etc. The transport of materials mostly happens through heavy trucks. For a seamless operation, it is important to have control of your supply chain. Thus, cement companies are installing supply chain solutions to monitor the location of each vehicle in their fleet, and measure the payload carried by each vehicle. During Covid times, automation in this area has proved to be a boon to check the vitals of the crew members. IT solutions offer help in routing vehicles to their destinations without wasting time and cost.

Shree Cement is an excellent example who have gone from old methods to advanced Supply chain mechanism. Earlier, the company was handling 5000 trucks on daily basis across all units. This massive volume was leading to Truck Turnaround Time (TAT) of 12-13 Hrs and was resulting in a rise in freight cost significantly. Moreover, due to security checks, vehicles were being stranded within the plants at various for several hours, severely impacting the dispatch capacity.

To address these challenges, Shree Cement has installed RFID Based Integrated Logistics Management System (ILMS), Boom Barriers at security checkpoints, Manless weighbridges, Auto Invoice Generation through Robotics Process Automation (RPA), and Auto E-way bill through third-party applications.

Now, truck movement inside the plant premises is completely automated. Real-time tracking of vehicles is being done leading to a reduction in turnaround time to 4-5 Hrs. ??he visibility has increased dramatically leading to smooth and clutter-free movement. Not only this, all our 80 manless weighbridges and invoicing through RPA have saved 320 and 100 manpower respectively. This manpower was shifted to more productive operations resulted in more output and less new hiring,??says Yogesh Mehta, Vice President, Shree Cement.

Similarly, ACC and Ambuja Cement realised the need for digital implementation in Supply chain Management, and thus have implemented Blue Yonder Luminate Planning for supply chain transformation and digitalisation. They launched the Transport Analytics Center (TAC) in March 2020, which ensured allowing operational teams with real-time data on distribution safety, cost optimisation, and efficiency improvement.

Reaping the Benefits

Modernisation comes with loads of benefits to the cement industry, such as improved operations, better customer service, cost optimisation, and better collaboration.

Akhoury states that the company?? ??lants of Tomorrow??certified operation promises 15 to 20 per cent more operational efficiency compared to a conventional cement plant.

Interestingly, there are technologies been deployed by cement players to track real-time journeys. Some cement companies have installed integrated dashboards that offer key insights into their businesses. This integrated system aids decision-makers to identify the weakest links in the supply chain and take necessary steps to improve the process.

Cement plants are rethinking their products and taking energy-efficient measures to achieve carbon neutrality. According to few analysts, cement plants have the capacity to reduce CO2 emissions by up to 75 per cent by 2050. And this could be achieved by advanced measures like scaling of carbon capture, utilisation, and storage technologies.

Reducing CO2 emissions is on every cement company?? top agenda. By adopting the right technologies, the cement companies are aggressively looking forward to meeting their sustainability targets. Cement players are more conscious now of selecting and investing in technology to improve the energy efficiency of their production facilities. With help of technology, they are aiming at using alternative raw materials and fuels to replace CO2-intensive clinker.

Best practices

There cannot be a single approach for all cement plants. Each plant has its own objective and challenges and should choose its path depending on goals, desire for centralisation, existing in-house infrastructure, capacity, budget, and resources. One common objective could be around value generation. This is where technology comes into the picture. Companies need to introspect questions like–Can a fully integrated manufacturing unit generate higher margins?

Cost estimation and time estimation should be taken into account before choosing the right IT solution. Beyond that, some of these investments might be driven by compliance requirements.

CONCLUSION

Indeed, there has been an acceleration in the adoption level of IT at cement plants today and we feel that the Indian cement plants will operate in a drastically different way than it operates today.

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Concrete

Cement Prices to Stay Flat in Q2 FY27 as Costs Squeeze Margins

HDFC Securities warns monsoon slowdown and higher fuel costs

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HDFC Securities has said the cement industry is unlikely to register a sequential increase in prices in Q2 FY27 as monsoon-related demand moderation coincides with rising fuel and packaging costs that will squeeze margins. The brokerage observed that price gains remained modest, with increases of two to three per cent quarter-on-quarter across regions, and noted subdued offtake in May with improvement in June as a delayed monsoon supported construction activity. The brokerage added that modest pricing gains so far have been insufficient to offset the input cost escalation.

The report stated that input cost pressures intensified in Q1 FY27 owing to the West Asia conflict, which pushed up coal and pet coke prices and is expected to keep fuel costs elevated, with a likely peak in Q2 FY27. It assessed that total variable costs, including packing, could rise by around Rs 150 per t quarter-on-quarter and that lower offtake and seasonal operating deleverage could further raise operating expenditure by about Rs 50 per t quarter-on-quarter.

Overall, cement prices were estimated to remain flat in Q2 FY27 as monsoon-led demand weakness offsets limited upside in realisation, and rising fuel costs alongside seasonal deleverage were expected to compress industry margins by over Rs 100 per t quarter-on-quarter to below Rs 880 per t. The brokerage indicated that the combined impact of energy inflation and higher packing expenditure would be the principal drivers of margin contraction in the near term. HDFC Securities projected a recovery in margins in H2 FY27 should the West Asia turmoil subside and energy and packing costs cool off.

The brokerage expressed optimism on long-term demand fundamentals and said improving realisation together with an anticipated cost cool-off should support a margin rebound from H2 FY27 onward, underpinning favourable industry prospects over the medium term. Its outlook rests on monsoon normalisation and a decline in imported fuel prices in the second half of the fiscal year.

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Concrete

Dalmia Bharat Begins Rs 31 Bn Green Cement Unit in Kadapa

New Andhra Pradesh plant to add 9.6 MTPA cement capacity by FY28

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Dalmia Bharat Limited recently laid the foundation stone for its second manufacturing unit at Kadapa in Andhra Pradesh. The company will invest Rs 31 billion in developing the next-generation integrated cement manufacturing facility.
The foundation-laying ceremony was attended by Nara Lokesh, Andhra Pradesh Minister for Information Technology, Electronics and Communications, Real-Time Governance and Human Resources Development, along with Puneet Dalmia, Managing Director and Chief Executive Officer, Dalmia Bharat, senior government officials and company representatives.
Scheduled to be commissioned by the third quarter of FY28, the Kadapa unit will become Dalmia Bharat’s largest integrated manufacturing facility in southern India. It will have a clinker production capacity of 6.1 million tonnes per annum and a cement manufacturing capacity of 9.6 million tonnes per annum.
The facility is designed to produce what the company describes as one of the world’s greenest cements. It is also expected to generate approximately 1,000 direct and indirect employment opportunities while supporting local MSMEs, transporters, contractors and service providers.
Lokesh said the investment reflected Dalmia Bharat’s confidence in Andhra Pradesh and aligned with the state’s objective of promoting sustainable industrialisation, job creation and technology-led economic growth.
Puneet Dalmia said the project represented the company’s long-term vision of developing low-carbon cement manufacturing assets. He added that the facility would establish new benchmarks in operational efficiency and sustainability while supporting India’s infrastructure and environmental goals.
Dalmia Bharat will also expand its regional community development programmes in education, healthcare, skill development and welfare through its DIKSHa and Gram Parivartan initiatives.
The company currently has an installed cement manufacturing capacity of 54.7 million tonnes across 19 manufacturing units in 12 states. It is also the first cement company globally to commit to the RE100, EP100 and EV100 initiatives.

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Concrete

Nuvoco Inaugurates Limla Cement Plant in Surat

Acquisition boosts Western India cement capacity

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Nuvoco Vistas Corporation Limited inaugurated the Limla Cement Plant in Surat, Gujarat, marking a key milestone in its acquisition and revival of Vadraj Cement Limited.

The company completed the acquisition of Vadraj, which had been undergoing a corporate insolvency resolution process, by discharging a consideration of Rs 18 billion (bn) in June 2025. Vadraj’s asset base includes a clinker unit at Kutch and a grinding unit at Limla, along with high quality captive limestone reserves and a captive jetty at Kutch that enhance logistics efficiency.

Since taking over the assets, Nuvoco has undertaken revival, refurbishment and expansion across both sites, culminating in the opening of the Limla facility. The grinding unit at Limla achieved project completion ahead of schedule with the commissioning of two million tonnes per annum (mn t per annum) grinding capacity, further expanding the company’s scale and market reach.

Upon full operationalisation of the Vadraj assets, nearly 40 per cent of Nuvoco’s total cement capacity will be accounted for by plants in the North and West regions, supporting improved access to high growth markets. The plant is expected to support a phased volume ramp up in Gujarat and to serve adjoining markets in western Maharashtra while releasing northern capacities for other markets.

It will produce a complete portfolio of cement products including Ordinary Portland Cement, Portland Slag Cement, Portland Pozzolana Cement and Portland Composite Cement, and will offer the Duraguard range including the premium Duraguard Microfibre. The transaction is set to create synergies with Nuvoco’s existing manufacturing facilities at Nimbol and Chittorgarh, strengthening logistics optimisation and market access across key regions.

Nuvoco reported total income of Rs 113.62 billion (bn) in FY 2025-26 and stated it is on track to consolidate total cement capacity to 35 million tonnes per annum (mn t per annum) by FY2028. The company operates across cement, ready-mix concrete and modern building materials segments and highlighted a pan-India ready-mix presence alongside contributions to major infrastructure projects. Corporate communications contact details were provided by the company.

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