Economy & Market
SDGs in Industry 4.0 era: Action plan of 19 countries
Published
5 years agoon
By
admin
In September 2015 at the United Nations (UN) Headquarters in New York, 193 member countries adopted the historic new agenda, entitled ??ransforming Our World: The 2030 Agenda for Sustainable Development,??and 169 targets with an objective of transforming the world. The Sustainable Development Goals (SDGs) are the blueprint to achieve a better and more sustainable future for all. These 17 SDGs addressed the global challenges we face, including those related to poverty, inequality, climate change, environmental degradation, peace and justice. These 17 SDGs are all interconnected, and in order to leave no one behind, it is important that each of the 193 member countries undertake efforts at achieving them by 2030.
When the 17 SDGs were adopted The UN Secretary-General Ban Ki-moon said ??t is a roadmap to ending global poverty, building a life of dignity for all and leaving no one behind. It is also a clarion call to work in partnership and intensify efforts to share prosperity, empower people?? livelihoods, ensure peace and heal our planet for the benefit of this and future generations?? The 17 SDGs adopted are given in the annexure.
Every country is at a different level of social, economic and technological development and the Government of each country strives to work in a direction to improve the living standard of the citizens of their country, though the speed at which this takes place differs. Each country does strive to help the socially and economically weaker section to improve and also assists the citizens to lead a better social, economic and healthier life, reduce the disparity; at the same time the challenges that each country faces differs.
However, in each country the citizens, civil society, business and the Government needs to strive in tackling the problems relating to poverty, inequality, climate change, environmental degradation, peace and justice and make all out efforts at achieving the 17 SDGs by 2030.
Industry 4.0
The fourth industrial revolution (Industry 4.0) has taken further from what was achieved by the earlier three industrial revolution with the adoption of computers and automation and enhanced it with smart and autonomous systems fueled by data and machine learning including use of robots. As Industry 4.0 unfolds, computers are getting connected and are able to communicate with one another which can facilitate in making decisions without human involvement. Cyber-physical systems are a reality where humans and smart factories connect and communicate to each other via the Internet of Things and the Internet of Services, which makes Industry 4.0 possible and the smart factory a reality. It is also leading to real-time capability where data can be collected and analysed to provide insights immediately.
Industry 4.0 presents several challenges and opportunities to all the stake holders in a country and we need to strive at finding solutions to these challenges at the same time taking advantage of the opportunities in achieving SDGs. A major challenge that Industry 4.0 will throw up is changes in skill required for new type of employments; at the same time decline in prospects of employment for persons not having the new requisite skills. There are also opportunities wherein the benefits of Industry 4.0 could help in education, tele medicines, effective disaster response, etc.
Industry 4.0 is a reality and has entered the world of work and governance. We need to handle it in a manner, wherein it helps the country in achieving the 17 SDGs. We do find that in many countries of the world, activities are still by and large in the operating phase of industrial revolution two and three and the same will continue. Hence, while looking at SDGs in Industry 4.0 era, we will have to bear in mind the reality at which each of the 193 member countries of the world operate, and how the various stake holders can use Industry 4.0 for the benefit of the citizens of their country.

19 countries meet
The Association of Overseas Technical Cooperation and Sustainable Partnership (AOTS) of Japan sponsored by the Ministry of Health, Labour & Welfare, Government of Japan organized a Joint Study Workshop of Employers??Organization of 19 countries on the ??ustainable Development Goals (SDGs) in the era of Industry 4.0??from 13 to 15 January 2020 in Hanoi, Vietnam. There were 32 participants from the 19 countries (i.e. Bangladesh, Cambodia, China, India, Indonesia, Korea, Lao PDR, Malaysia, Mexico, Mongolia, Myanmar, Nepal, Pakistan, Philippines, Singapore, Sri Lanka, Thailand, Turkey and Vietnam) that participated in this workshop. I was a participant in the workshop on behalf of the Indian Employer Organization (i.e. Employers??Federation of India) invited by AOTS.
The objective of the workshop was to understand the approaches adopted by the 19 participating countries towards the SDGs and in the workshop evolve through the experience of the participants on what could be an approach at achieving these in the Industry 4.0 era. During the workshop it emerged that each of the 19 countries that participated in the workshop has one of the ministries or a Government agency as the focal point to plan , execute , monitor and document the countries progress with reference to achievement of each of the 17 SDGs , though the priority on each of these goals differed from country to country. Each of the 19 country participants presented the approach taken by their country. Noteworthily, The Government of Vietnam in 2017 had divided the 17 SDGs in four focal areas with a Vision statement for each, and is working in the direction of achievement of the Vision as stated by them. The details are given below.
The Government of Vietnam has worked out four focal areas and grouped the 17 SDGs and for each focal area developed a Vision Statement, which are as follows:
Focal area one: Investing in People covering SDGs 1,2,3,4,5& 6 with vision statement: Providing inclusive and equitable quality social services and social protection systems for people living in Vietnam to be healthy, educated and free of poverty and empowered to reach their full potential.
Focal area two: Ensuring climate resilience and environment sustainability covering SDGs 2, 5, 6, 7, 8, 9, 11, 12, 13, 14 and 15 with vision statement: Effectively responding to climate change and natural disasters, as well as sustainable managing resources and the environment.
Focal area three: Fostering prosperity and partnership covering SDGs 5, 8, 10, 12 and 17 with vision statement: Shifting to sustainable and productivity led growth model, as well as creating a fairer, more efficient and inclusive labour market that ensures decent work and opportunities for all.
Focal area four: Promoting justice, peace and inclusive governance covering SDGs 5, 10 and 16 with vision statement: Strengthening governance and adherence to the rule of law, ensuring respect for and the protection of human rights and freedom from discrimination, and moving towards a more just and inclusive society.
Action plan developed by 19 country participants
The 19 country participants during the workshop interacted and worked out a framework for actions that the Government, business and social activists can undertake for achieving the 17 SDGs and these are listed below:

SDG1: No poverty & SDG2: Zero hunger
(i) There is growing urban and non-urban poverty – the Government needs to provide subsidy to the targeted groups and also schemes to ensure zero hunger
(ii) The fourth industrial revolution would result in job displacement and there is need to preserve jobs for vulnerable groups which would involve skill development programme
(iii) The Government needs to establish a proper mechanism for management and disbursement of funds to the poor from taxes or other fund collected from corporations and individuals
(iv) The Government need to ensure sustainable food production and also ensure to provide nutritious food to all children below age five to eradicate malnutrition
(v) Community cultivation and community kitchens/app that helps collect left over food from restaurants and super markets before they lose their shelf life and dispersed to the needy
(vi) Ensure everyone gets two meals a day
SDG3: Good health and well being
(i) Child birth mortality rate and maternal mortality rate to be closely monitored, drastically reduced and extensively controlled
(ii) Increase in public health expenditure by each country from existing level, as it is a major need
(iii) Need to recognise allocation of funds for mental health, as fourth industrial revolution will lead to its increase
(iv) New initiatives for business transformation
(v) Business can provide online platforms /apps for employees??health and well-being such as mental and physical consultations online
(vi) Need for an effective population control
(vii) Disclosure on the content of all eatable items
(viii) Education on health/using technology for imparting at an economical cost
SDG4: Quality education
(i) Need for free compulsory quality primary education
(ii) Less academic and more skill-based education
(iii) Produce more doers compared to administrators
(iv) Education and skill development should be aligned with the developments of the fourth industrial revolution
(v) Dual curriculum
(vi) Closer collaboration between industry and academia to ensure curriculum meets industry and business needs
(vii) Business to partner with government, educational institutions, vocational institutes and offer effective apprenticeships
(viii) Government should facilitate for developing affordable vocational/tertiary education infrastructure.
SDG5: Gender equality
(i) Women representation at the high /decision making level
(ii) Empowering gender equality for all
(iii) Reduce gender pay gap (equal pay for equal work)
(iv) Social safety security for the housewives
(v) Enhanced maternity leave benefit
(vi) Flexible working hours where feasible
(vii) Provide incentives and grants to women to enter gig economy (e-commerce)
(viii) Business can provide virtual workplaces / flexible work for women
(ix) Digital training for women
(x) Need for action rather than talk / social media campaigns with case examples of success
(xi) Need for a change in positive mind set of men, towards women
(xii) Ensuring inclusiveness of lesbian, gay, bisexual, and transgender (LGBT)
SDG6 Clean Water and Sanitation
(i) Wherever activities of business and domestic usage results in discharge of waste water and effluent into the water bodies, Government intervention is required to ensure compliance of standards on discharge. Also, industry and business to ensure compliance
(ii) Rainwater harvesting
(iii) Community toilets in non-urban areas where cost of constructing individual household toilet may be prohibitive
(iv) Protection and restoration of water related ecosystem
(v) Water and sanitation management through people participation
SDG7: Affordable and clean energy
(i) Reduce taxes for green enterprises
(ii) Encourage the use of renewable energy
(iii) Recycling
(iv) Smart cities
(v) Green architecture
SDG8 Decent Work and Economic Growth
(i) Occupational Safety and Health (OSH) management at work place. Need for awareness, training, policy guidelines, best practices
(ii) Empowering people who are physically challenged through skill development and providing for a suitably designed friendly work place for them
(iii) Flexible working hours
(iv) Social Security net ??unemployment insurance for displaced workers
(v) Old age pension fund /old age saving scheme
(vi) Productivity linked performance pay
(vii) Ensure non exploitation of migrant workforce through memorandum of understanding between country of origin and destination
(viii) Restructure companies in line with new technologies
(ix) Digital evaluation of companies
SDG9 Industry Innovation and Infrastructure
(i) Reliable and continuous power and water supply at a reasonable price
(ii) Internet and other communication have to be available and affordable penetration has to be wide
(iii) Promote start up and entrepreneurship culture
(iv) Ensure to innovate continuously to be competitive and digital readiness for meeting challenges of fourth industrial revolution
(v) Create digital ecosystem to bring businesses together and share their experiences
(vi) Mechanism for easy access to capital /credit for micro, mini and small businesses.
SDG10: Reduced inequalities
(i) Fourth industrial revolution would result in income disparity between highly skilled and low skilled workers ??reskilling and upskilling needed
(ii) Inclusive growth by empowering and promoting social and economic inclusion for all, irrespective of age, sex, disability, race, ethnicity, origin, religion, economic or other status
SDG11: Sustainable cities
(i) Green and smart cities
(ii) Sustainable cities and communities
(iii) Urban planning, development plans
(iv) Integrated transportation system
(v) Create community events
(vi) Community child care centres and recreation centres
(vii) Social networking
(viii) Autonomous driving system
(ix) Government needs to ensure adequate, safe, affordable housing, transportation and basic services
SDG12: Responsible consumption
(i) Increased production which results in higher quantum of air emissions, effluent discharge and solid waste needs to be monitored for achieving reduced quantum from the past by the use of new technologies. Business and Government needs to partner in the same, coupled with incentives and penalties
(ii) Consumer awareness and education
(iii) Organic products/eco products
(iv) Imposition of penalty on unconsumed/wasted food
(v) Circular economy
(vi) Saving energy policy
(vii) Investment in latest technologies
(viii) Environment friendly technologies
SDG 13: Climate action
(i) Specialised ministry/agencies to manage environmental issues
(ii) Reduction of greenhouse gasses
(iii) Use of renewable energy
(iv) Waste management
(v) Supporting green jobs/businesses
(vi) Preserving forest coverage
(vii) Circular economy reduce, reuse and recycle/use of app to recover electronic wastes and clothes and others
(viii) Conserve water and move towards use of clean energy
(ix) Clean energy as means of transportation/electricity generated by wind and / or solar power
(x) Control carbon emissions/paying a price for carbon emissions
(xi) Ensuring green education and green business/as far as possible paperless functioning
SDG 14: Life below water
(i) Effluent/waste water management
(ii) Imposing fines on dumping waste in the sea/river/pond
(iii) Netting policies
(iv) Seasonal fishing policy
(v) Ocean acidification
(vi) Sustainable management of marine ecosystem
SDG 15: Life on land
(i) Declaring ecological critical areas
(ii) Conservation of the endangered species
(iii) Preservation of heritage
(iv) Preventing deforestation
(v) Promoting afforestation and use farmed timber only
SDG 16: Justice and peace
(i) Review and where possible reduce budget on defence spending
(ii) Revisiting/rationalising the justice system
(iii) Equal access and dispensation to justice
(iv) Members of the society should be equally treated before the law
(v) Judicial reforms to be visited/reviewed at regular intervals
(vi) Prevention of corruption/nepotism
SDG 17: Partnership for the Goals
(i) Collaboration among the ministries and agencies to ensure sustainable development at the national level
(ii) Create social dialogue platforms at company level
(iii) Collaboration with inter and regional partner for mutual development in the respective areas/creating memorandum of understanding /agreements
(iv) New initiatives to bring social partners together on technological issues, digital trainings, digital transformation of industries
Conclusion
The Millennium Summit of UN in 2000 came forward with eight international Millennium Development Goals (MDGs) for the year 2015, and these have been followed by the 17 SDGs and each country has been working on them. In India at the Central Government level, NITI Aayog has been assigned the role of overseeing, reporting and monitoring the implementation of SDGs.
Each of the 19 countries that participated in the joint study workshop organised by AOTS of Japan from 13 to 15 January 2020 in Hanoi, Vietnam have been making efforts at achieving the 17 SDGs. The action plan developed by the participants in the joint study workshop is a broad framework of what the representatives of the employer organisations of the countries present perceived could be undertaken, and hence is not a thorough check list.
In each country, the Government have developed an action plan, allocated budget, and also seeks support / partnership from business, civil society and also if possible, support from rich countries, as the money and effort required is substantial. There is need both at the International Level and also at each country level to work out an ??ffective recognition and reward system” for all contributors to speed up implementation in the direction of achieving SDGs. There is also need in each country for the civil society, employer organisations trade unions and the Government to work together, to understand the challenges and opportunities emanating from Industry 4.0 and how they could be used in benefitting the achievement of the 17 SDGs by 2030.
Footnote:
ABOUT THE AUTHOR:
Dr Rajen Mehrotra is Past President of Industrial Relations Institute of India (IRII), Former Senior Employers??Specialist for South Asian Region with International Labour Organization (ILO) and Former Corporate Head of HR with ACC and Former Corporate Head of Manufacturing and HR with Novartis India. Email: rajenmehrotra@gmail.com
Published in February 2020 issue of Current Labour Reports and Arbiter.
You may like
Economy & Market
SEW-EURODRIVE India Opens Drive Technology Centre in Chennai
Published
2 weeks agoon
March 25, 2026By
admin
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.
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
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.
- Kanika Mathur
Ultra Concrete Age
NCB Signs MoU With Cement Manufacturer To Boost Construction Skills
JSW Cement Commissions Nagaur Plant, Enters North India
Cement Prices Likely To Rise As Petcoke Costs Increase
IIT Guwahati Develops Radiation-Resistant Cement Mortar
Ultra Concrete Age
NCB Signs MoU With Cement Manufacturer To Boost Construction Skills
JSW Cement Commissions Nagaur Plant, Enters North India
Cement Prices Likely To Rise As Petcoke Costs Increase

