Economy & Market
Optimising Logistics
Published
11 years agoon
By
admin
Cement is a vital building material that demands well-organized distribution and timely delivery; and the most important focus areas are to optimize the logistics value chain of the product which includes first and last mile transportation.
In the last two years, logistics has emerged as a function of critical importance in cement business on par with manufacturing and marketing and sales. This is the activity that links cement from the point of its production till it reaches the hands of the ultimate consumer. When we use the term logistics, we mostly refer to outbound movement; but of course the function must ideally also include inbound logistics or the activities involving inward movement of raw materials, inputs and intermediate goods. But essentially logistics plays a collaborative role between manufacturing on one side and sales on the other.
Cement is a vital building material that demands well-organized distribution and timely delivery. The cost of transporting cement via road comes to about Rs 1-3/tonne/km. The wide range is due to the variation in lead distance, which can range from anywhere between 50-300 km. Longer the distance, lower is the cost of transport. Railway on other hand costs Rs 1.3 to 1.4/tonne/km. However, railway has additional fixed costs related to loading and unloading. The handling cost is high for railways. So for a distance below 200 km, rail is not viable. The total cost of logistics considering inbound and outbound movement can come up to 20-25 per cent of cement price. This is for companies having good infrastructure such as rail sidings, etc, and who transport 40-60 per cent product by rail. For companies that do not have such facilities, the cost can go as high as 30 per cent of the cement cost.
Market scenario
According to Tushar Dave, Vice President – Central Logistics, ACC Ltd, the importance of logistics in cement business cannot be understated. Says Dave, ?Typically, cement has to travel about 400 km from the plant before it reaches the end customer. The cost of outbound logistics represents nearly 20 per cent of net sales; in fact it comprises the second highest share of costs after manufacturing and fuel. On-time delivery is another critical area where logistics plays a role, considering that it is essential to ensure customer satisfaction. In view of these facts, logistics has enormous potential to deliver cost savings while simultaneously impacting customer satisfaction through improvements in service levels.?
He adds, ?A major bottleneck in this front is the time consumed at the loading bay. Trucks typically have had to wait for hours to enter and move out of the plant premises. This takes up a lot of the total travel and turnaround time and congests the bay during peak loading hours. ACC devised a unique solution to this problem by way of introducing the digitalised loading bay.?
Says Praveen Garg, Head – Logistics, Bharathi Cement, ?In the present scenario, logistics in cement industry plays a vital role to decide the competitive advantage or disadvantage for a company. Logistics in Indian cement industry per se is in growth stage and there is a long way to go to achieve consolidation and mature stage. Logistics cost is one of the highest cost elements and contributes 25 to 30 per cent of total spend in cement industry.? He adds, ?Existing infrastructure related to road, rail and sea transport is a major bottleneck, which does not provide flexibility as compared to developed nations. Indian cement industry still has separate vendors for primary transportation, last mile delivery and supply chain planning. Big 3PL and 4PL players are yet to come in cement logistics that can provide end-to-end solution.?
Functional bottlenecks
Speaking about the functional constraints Arun Khurana, Head – Logistics, JK Cement, had this to say. ?Definitely, logistics remains always under pressure when industry scenario is not so good. The prices are not supportive and with the logistics cost is pretty high, always the aim remains to how we can rationalize or optimize the logistics cost. Rail logistics constitutes almost 35 per cent of the total dispatches being done from the factory and now railways is reaching to the point of saturation. In fact, in the last 10 years, the percentage of rail has really come down from 40-45 per cent to 35 per cent and all this is because railways does not have sufficient infrastructure to support the demand requirement. So, the alternate mode comes as road. Again, the biggest challenge here is the availability of skilled drivers. It is not confined to cement alone, but the fact remains that these kinds of challenges are there in the transport industry which is directly linked to the cement industry as well. In the last two years, it seems the supply chain as a function is evolving across industries. So on that extent, skilled manpower available is not to the desired level.? Speaking about the functional bottlenecks, Capt. Ashok Shrivastava, Chief Executive Officer, Shipping Services, Allcargo Logistics, says, ?The fundamental reasons for challenges or bottlenecks in logistics especially in the cement industry has more to do with the product itself which is high volume and low value. This gives rise to the bottleneck of various kinds from transportation of raw material to plants and then from plants to the end-consumer through distribution channels. The challenge is compounded by India?s unique demography and its fast pace economic growth which is not concentrated in particular locations but is spread across all corners of the country. Thus, the demand is scattered but the production is located sparingly across states keeping in mind the economics of the business. Many of these macroeconomic variables cannot be altered to a greater extent, thus given this industry a unique set of opportunities and challenges. Logistics is the backbone of this product in demography such as India.?
He adds, ?Road has been the tradition medium of transportation, but given the congestion, limitation on quantity which can be carried, costs of toll across highways and the low average speed of movement it has given rail the opportunity to be one of the preferred modes of surface transportation. Coastal shipping has emerged as the most preferred medium of movement of cement, given its advantage in terms of costs as well as capacity to carry larger volume. Coastal shipping will be a game changer for India given that our country is surrounded by over 7,000 km of coastline and the cement industry can leverage this mode of transportation more effectively and efficiently to move its products.?
According to Prabhat Ranjan, AGM – Sales & Logistics, Meghalaya Cement, there are two sides to bringing down cost of logistics; one is infrastructure and the other is technology. ?As far as infrastructure is concerned, whenever a truck load is coming, there should be a scope for return load so that the freight cost remains low. Here in the North-East region, there is no scope for return load as the industry is not developed here. Some bulk terminals can be set up in Delhi in the north and Chennai in south, where bulkers are coming from the cement plant can go back to the cement plant with fly ash. So, they are getting the two-way transportation. Bulkers are unloading the cement in the silos and there it is getting packed. In this mode, the transportation cost is reduced. But in North-East region, the roads are not good for bulkers to ply as it is hilly terrain. Also, cement consumption is very low here compared to other parts of the country. So, in North-East, the scope of bulk terminals is not feasible.?
Bulk transportation
According to Garg, bulk cement consumption and transportation at present in India is very low which is at a level of 10 per cent only. He says, ?Bulk transportation will increase at 15-20 per cent CAGR in future with consolidation in cement customer segment and growth of ready mix concrete business in India. At present, there is an issue both at the customer end and available logistics infrastructure, which is resulting in such a low bulk transportation percentage in India. This will further increase with introduction of new bulk terminals coming up near major consumption centres.? He adds, ?Now we are exploring the possibilities to use bulk silo placing unit attached to trucks and these small silos can be carried by trucks to the small construction site. With this concept, small construction site can be converted from bags to bulk. This will reduce the packaging and handling cost to a great extent.? Says Khurana, ?Bulk cement is used either in RMC or infra projects. But till date, the larger demand coming is from the rural pockets. Big projects like smart cities are at conceptual stage and if it becomes a reality then there is good scope for bulk cement. As of today, the percentage of loose cement sold in India is below 10 per cent of the total sales. The use of bulk cement is majorly at metro cities only. But going forward, if the projects like dedicated freight corridors, smart cities and other mega infra projects, come up, definitely there is a huge scope for bulk cement. If the future growth of cement comes to this segment then there is a huge growth.?
According to Ranjan, bulk transportation is good but there are a lot of technologies need to be developed like the bulk terminals, from where cement can be supplied to big projects. Now the RMC concept is evolved, and they have now started taking bulk cement, which saves costs involved in packing, packaging materials etc. The trend is gaining momentum as before starting big projects, they set up silos because they can set up a silo at 50 per cent production cost of cement and they can use loose cement. Almost every company has started this, especially for hydel projects they are using own silos. Now, NHPC has started this and many private companies are going to start. Even in road projects, bulk handling is going on.
Rail freight impact
According to Khurana, the 2.7 per cent increase in freight rate definitely adds to the cost of cement. He says, ?The input cost in terms of coal and slag transportation has increased almost 7 per cent, which adds to the cost of cement by Rs 2-2.50 per bag. So effectively, there will be a Rs 6-7 hike in per bag cost. But due to less demand in the current market, it is difficult to pass on the cost difference to the end-consumer. As of now, it is really hitting the bottom line of the cement company.?
Ranjan has a different take on this. According to him, freight rate is not a major factor in railway transportation. He says, ?More than freight rate, there are so many other factors that are affecting, which include other policies of Railways, infrastructure at rail yard, etc. Rail yards are working 24 hour, but the labours are available for only eight hours. Railways charges demurrage, if my rakes are getting placed today evening, I have to pay the demurrage charges for the whole night, and the labours will be available in the morning next day. Thus, demurrage charges, labour charges, local infrastructure charges, and other charges are so high which are diluting the increase of freight rates.?
Says Garg, ?Freight rate for cement has been hiked by 2.7 per cent whereas for coal this has been hiked by 6.3 per cent. This will have overall negative impact of around Rs 40 to 60/tonne on bottom line of cement industry. This freight hike by Railways will also impact the rail co-efficient as Railways has increased the freight at the time when diesel prices have come down drastically.?
On a positive angle, Shrivastava had this to say. ?In a growing vibrant economy like India, rise in input costs of variables such as rates, taxes, fuel costs have direct effect on the industry, but the overall advantage of the demand-supply fundamentals are still the more important opportunity for further growth and development. Any business has to be proactive to leverage the developments as well as innovate itself to make convert it into an opportunity.?
Setting up of bulk terminals
According to Garg, setting up of bulk terminals and same shared by different players will give a real boost to cement industry. He says, ?Any grinding unit or bulk cement terminal require at least 50 acre of land near to major cement consumption centres like Mumbai, Bangalore, Delhi, Kolkata, Chennai and upcoming metros. If we look at any of existing terminal (existing private siding or railway siding), there is a great scope of sharing existing private/railway siding and other available space in these terminals. This will be a win-win solution for the existing siding operator located nearby major consumption centres to collaborate and share their asset which is not fully utilised. Challenges are from regulation side also the modalities on sharing the existing set-up.?
Says Khurana, ?Collaborating with multiple companies will become challenging from the perspective of different players. Even today, industry has not graduated to a level where people only compete by way of brand. The industry has to reach that level of maturity where different manufacturers collaborate probably for the mutual benefit. Of course, looking at the Indian Railways to do those kinds of investments is not a scenario as of now. But there is a huge potential for private terminals, which are designed in such a way that they can be used as multiple operators rather than for a bagged cargo or loose cement cargo.
Says Dave, ?The future points to a shift towards bulk transport but that would happen gradually over 9 to 12 years horizon in big way once all the stake holders (from manufacturers to end users) are ready and fully on board. It also needs other enablers to be in place such as a shift in the way cement is sold (migration from B2C to B2B) and the availability of appropriate transportation, handling and infrastructure facilities.?
Integrated logistics
Says Khurana, ?In terms of operational aspect, one of the options available is the mechanisation of the goods shed and the second option is exploring the possibilities of bulk terminals across the country. Many big cement companies can explore upon setting up integrated terminals but for smaller players who have limited volumes and different geographies, this is not operationally viable. So there may be a potential for a common facility that can be utlised by different players and then repack and distribute to the local market from thereon. We have taken such initiatives for our white cement market due to longer distance from our plant in Rajasthan to the market in west coast and down south which is a multimodal type of operation. We have recently commissioned a grinder unit in Haryana which will reduce the load that goes into the road and rail network.?
Manufacturers tend to use a combination of distribution methods, which include bulk and bags via road, rail, in-land transport and by sea. The most inexpensive method of moving cement is in bulk by water. The optimum solution is always a combination of methods. In today?s technologically advanced world, it is possible to use the power of information technology to arrive at optimum solutions using mathematical modelling and algorithms. For effective and optimum costs in cement distribution, one needs to integrate IT solutions with actual demand and supply and, most importantly, include all options of cement movement and storage into the management cycle. One will need to work with almost everyone involved in the supply chain, from the drivers of road bulkers and trucks, the captains of the barges and ships and to the customer engineers who will finally receive the cement for use in their plants.
Shrivastava sums up, ?For the cement industry which includes home grown as well as international players competing for the market, one of the most important focus areas is to optimize the logistics value chain of the product which also included first and last mile transportation. Presently, movement of cement goes through multiple modes and service providers handling the product thus forming part of the overall logistics cost structure. One of the most efficient ways to control and leverage this variable is to look at integrated logistics wherein a provider has the network, the size and scale to provide all types of movement from coastal shipping to trailer movement to last mile distribution, thus forming a value added service. This will make a huge difference in terms of managing the value chain and optimizing costs as well delivery time of the product.?
LOGISTICS CHALLENGES IN NORTH-EAST
- Logistics is the most important part in cement industry as almost 30 per cent of the cost of cement is involved in logistics. But it is more than that in the North-East part of the country. Since it is hilly terrain, transportation cost is very high which can be more than 40 per cent of the cement price. In this region, we have only one mode of transport, the road transport. There is no rail logistics here, except some parts of Assam.
- Another bottleneck is the presence of anti-social elements in some parts of Nagaland, Manipur, and such north-eastern states. There are some parallel government system in Manipur, as we have to pay taxes at two points – one at Indian government and another at ?terror government?. This affects the final cost of the cement. For example, if the freight rate is Rs 100 at normal places in Assam, it will be same in these parts also for the same distance, but there are other taxes like token tax.
- Apart from that, there is a convoy system here for transportation. If today there is no convoy if a truck is loaded, it may have to wait for a couple of day because convoy will go only on a particular day and all the trucks loaded with materials will be taken by the convoy up till Imphal, Agarthala, or such places. So these are the big bottlenecks, like if the truck is going, it is taking one week for a small distance of 200-300 km to go and come back. And the cost factor is coming at every stage which ultimately affects the final price of the cement and the customers.
- As told by Prabhat Ranjan, AGM – Sales & Logistics, Meghalaya Cement
MOVING AHEAD
- Coastal shipping will be a game changer for India
- Bulk transportation will increase at 15 per cent to 20 per cent CAGR
- Integrated logistics will make a huge difference in terms of managing the value chain
- Rail logistics constitutes almost 35 per cent of the total dispatches being done from the factory
CHALLENGES
- Availability of skilled drivers is a challenge in road transport
- Costs of toll across highways and the low average speed of movement
- Non availability of labours in rail yards
- Demurrage charges from railway
- Lack of rail wagons for small delivery for far-off destination, where road delivery is not feasible.
OPTIMISING LOGISTICS COST
- Encourage big cement users for bulk/loose cement transport. This will reduce packing cost and is also eco-friendly. It is beneficial for both ? the seller and the buyer
- Establish grinding units, blending or packing units in big market area for direct delivery of materials
- Plan dispatches in a way that reduce rail freight/rail freight on return journeys availed for procurements
- Maximise dispatches directly to the end user so that warehousing/distribution cost can be reduced
- Optimise truck size/fleet capacity, timing of vehicle engaged in cement and raw material loading, unloading as well as the transit time, so that operational cost of vehicle is reduced by maximising efficiency of every trip made by the vehicle.
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Gears, drives, and motors have evolved from essential mechanical components into strategic enablers of reliability, efficiency, and sustainability in modern cement plants. ICR explores how advanced motion technologies, predictive maintenance, digitalisation, and intelligent drive systems are helping cement manufacturers reduce downtime, optimise energy use, and build future-ready operations.
As the Indian cement industry prepares for another phase of capacity expansion, the focus is shifting from merely increasing production volumes to improving operational efficiency, reliability, and sustainability. According to industry estimates, India is expected to add nearly 160–170 million tonnes of cement capacity between FY26 and FY28, driven by infrastructure investments, urbanisation, and housing demand. In this environment, gears, drives, and motors have emerged as critical enablers of productivity, forming the backbone of every major process from raw material extraction and grinding to clinker production and cement dispatch.
Motors alone account for nearly 60 per cent to 70 per cent of industrial electricity consumption globally, according to the International Energy Agency (IEA), while rotating equipment failures remain among the leading causes of unplanned downtime across heavy industries. In cement plants, where equipment operates under high loads, extreme dust conditions, elevated temperatures, and continuous-duty cycles, the performance of gears, drives, and motors directly influences energy consumption, maintenance costs, plant availability, and overall profitability. As digitalisation and Industry
4.0 technologies gain momentum, these systems are evolving from passive mechanical components into intelligent assets capable of delivering real-time operational insights.
Why gears, drives, and motors are the backbone of cement plant operations
Every major process in a cement plant depends on the seamless operation of gears, drives, and motors. Raw mills, vertical roller mills, crushers, kiln drives, conveyor systems, fans, and clinker coolers all rely on rotating equipment to maintain continuous production. A failure in any one of these systems can disrupt entire process chains, highlighting their strategic importance.
Modern cement plants process thousands of tonnes of material daily, requiring equipment capable of transmitting enormous torque while maintaining precision and reliability. Kiln drives and grinding systems, in particular, operate under some of the highest mechanical loads found in industrial manufacturing. The ability of gears and motors to withstand these conditions directly impacts plant throughput and production stability.
Satish Maheshwari, Chief Manufacturing Officer, Shree Cement says, “Effective lubrication management remains one of the most critical factors in extending the lifespan of cement plant drive systems. Proper lubrication, supported by regular oil analysis, vibration diagnostics, and condition monitoring, helps minimise wear, prevent unexpected failures, and maintain the integrity of critical components such as gearboxes, motors, and drive assemblies. By identifying potential issues at an early stage, plants can move from reactive maintenance to a more proactive and reliability-focused approach.”
“Smart motors, intelligent drives, and next-generation gearboxes are set to redefine cement plant maintenance and performance. Equipped with embedded sensors, IoT connectivity, digital twins, and AI-driven diagnostics, these technologies enable real-time condition monitoring, predictive maintenance, and seamless digital integration. As the industry embraces Industry 4.0, smart drive systems will play a pivotal role in improving energy efficiency, reducing downtime, and optimising asset performance across the cement manufacturing value chain” he adds.
Industry studies suggest that rotating equipment accounts for a significant proportion of maintenance expenditure in process industries. Effective design, selection, and maintenance of gears, drives, and motors therefore have a direct influence on asset utilisation, operational efficiency, and total cost of ownership.
The cost of downtime: reliability challenges in rotating equipment
Unplanned downtime remains one of the most expensive challenges facing cement manufacturers. Industry estimates indicate that a major failure involving a critical gearbox, kiln drive, or grinding mill can result in production losses running into lakhs of rupees per hour, depending on plant capacity and operating conditions.
Sanjeev Arora, President – Motion Business & IEC LV Motors Division, ABB India says, “One of the most significant shifts taking place in industrial decision-making today is moving away from evaluating equipment based solely on upfront capital cost toward understanding total cost of ownership (TCO). In a typical motor system, the purchase price often represents only a small fraction of the total lifecycle cost however energy consumption, maintenance requirements, downtime and operating efficiency account for the vast majority of long-term operational expenses. For cement manufacturers operating in highly competitive markets, this distinction is critical.”
“A high efficiency motor paired with an appropriately configured variable speed drive may require a higher initial investment, but the long-term benefits are substantial. Reduced electricity consumption, lower maintenance needs, longer service intervals and improved process stability can deliver faster payback and stronger profitability over time” he adds.
Cement plants present a particularly challenging environment for rotating equipment. Dust ingress, thermal fluctuations, shock loads, vibration, shaft misalignment, and lubrication contamination contribute significantly to equipment degradation. Studies by SKF indicate that nearly 50 per cent of bearing failures are linked to lubrication issues and contamination, while improper alignment and vibration-related problems remain leading causes of gearbox and motor failures.
Energy-efficient motors and drives: unlocking operational savings
Energy is one of the largest operating expenses for cement manufacturers, often accounting for 25 per cent to 35 per cent of total production costs. Grinding operations alone can consume nearly 60 per cent to 70 per cent of a plant’s electrical energy, making energy-efficient motors and drives a strategic investment.
According to the International Energy Agency, high-efficiency motors combined with Variable Frequency Drives (VFDs) can reduce energy consumption by 20 per cent to 30 per cent in suitable applications. By matching motor speed and torque to actual process requirements, VFDs minimise unnecessary power consumption while reducing mechanical stress on equipment, improving both efficiency and reliability.
Advances in gearbox design and power transmission technologies
Modern gearbox technology has evolved significantly in response to the increasing demands of cement manufacturing. Advanced materials, case-hardened gears, optimised tooth profiles, improved surface finishing, and enhanced lubrication systems are helping reduce friction, wear, and thermal loading.
Girish Hanchate, Director – Industrial Market, India SKF India (Industrial) says, “Smart diagnostics are significantly improving the lifecycle of gears, motors, and other rotating equipment by enabling a shift from reactive maintenance to condition-based asset management. Hidden issues such as vibration anomalies, bearing defects, misalignment, and temperature fluctuations can quietly reduce plant throughput by 10 per cent to 20 per cent while increasing energy consumption long before a breakdown occurs. By leveraging advanced sensors, predictive analytics, machine learning, and real-time monitoring of vibration, temperature, and motor current, cement manufacturers can detect developing faults early, optimise maintenance schedules, and prevent costly secondary damage. This not only improves reliability but also supports energy efficiency and sustainability objectives.”
“The next major evolution in drive and bearing technology lies in the development of fully integrated smart mechanical ecosystems that combine high-performance bearings, advanced lubrication management, and digital intelligence. Sensor-enabled condition monitoring embedded directly within bearings and drive systems allows operators to capture critical operational data at the source, enabling predictive maintenance and real-time performance optimisation. Innovations such as SKF’s VA9A1 Spherical Roller Bearing series, engineered specifically for demanding cement applications such as crushers and kilns, demonstrate this trend. By increasing internal bearing space and optimising lubricant flow, these designs improve grease retention, reduce wear, minimise downtime, and create more resilient, energy-efficient rotating equipment systems for the future of cement manufacturing” he adds.
Manufacturers are increasingly focusing on compact, high-torque gearbox designs capable of delivering higher power density while maintaining service life. Innovations such as condition-monitored gear systems, improved sealing technologies, and modular gearbox architectures are simplifying maintenance while enhancing operational reliability.
Predictive maintenance, condition monitoring, and asset health management
The shift from reactive to predictive maintenance is transforming asset management across the cement industry. Technologies such as vibration monitoring, thermography, oil analysis, ultrasound testing, and motor current signature analysis are enabling operators to identify potential failures before they occur.
Research by Deloitte suggests that predictive maintenance can reduce breakdowns by up to 70 per cent and lower maintenance costs by 25 per cent. In cement plants, where shutdown windows are limited and equipment operates continuously, predictive maintenance offers a powerful tool for improving reliability and extending asset life.
Digitalisation, industry 4.0, and the rise of intelligent drive systems
Industry 4.0 technologies are redefining the role of gears, drives, and motors. Smart sensors embedded within motors, bearings, and gear systems can continuously monitor temperature, vibration, load, lubrication condition, and energy consumption.
Girish Hanchate says, “As the industry embraces automation, sustainability, and digital transformation, the importance of intelligent motion technologies will continue to grow. The convergence of advanced engineering, predictive maintenance, and Industry 4.0 solutions is creating a new generation of cement plants where reliability, efficiency, and sustainability work together to deliver long-term value. For cement manufacturers navigating increasing production demands and environmental expectations, investing in smarter gears, drives, and motors is no longer optional—it is a business imperative.”
Cloud-based monitoring platforms and Industrial Internet of Things (IIoT) architectures enable maintenance teams to access equipment health data remotely, improving visibility across geographically dispersed operations. Advanced analytics and
artificial intelligence are further enhancing fault detection capabilities, enabling more accurate maintenance planning.
The emergence of digital twins represents another significant development. By creating virtual replicas of physical assets, operators can simulate operating conditions, predict failures, optimise maintenance schedules, and improve lifecycle management decisions. These technologies are helping transform rotating equipment into intelligent assets that actively contribute to operational decision-making.
Building future-ready cement plants through smart motion technologies
The future of cement manufacturing will depend heavily on the ability to integrate mechanical reliability with digital intelligence. Smart motion technologies combine high-efficiency motors,
intelligent drives, condition monitoring systems, and automation platforms to create more responsive and efficient operations.
Sustainability goals are also accelerating investment in advanced motion technologies. Reduced energy consumption, improved equipment efficiency, and extended asset life contribute directly to lower carbon emissions and reduced resource consumption.
These benefits align closely with the industry’s decarbonisation objectives.
As capacity expansions continue across India, future-ready cement plants will increasingly prioritise reliability, flexibility, and data-driven decision-making. Organisations that successfully integrate smart motion technologies into their operations will be better positioned to reduce costs, improve productivity, and maintain a competitive advantage in a rapidly evolving market.
Conclusion
Gears, drives, and motors are no longer viewed solely as mechanical components; they have become strategic assets that influence every aspect of cement plant performance. Their reliability affects production continuity, their efficiency impacts operating costs, and their digital capabilities increasingly shape maintenance and operational strategies.
- –Kanika Mathur
Lubrication has evolved from a routine maintenance activity into a critical driver of reliability, energy efficiency, and sustainability in cement manufacturing. ICR explores how advanced lubricants, predictive maintenance, and Total Lubrication Management are helping cement plants reduce downtime, optimise performance, and achieve long-term operational excellence.
In the cement industry, discussions around operational excellence often focus on kiln efficiency, alternative fuels, digitalisation, and process optimisation. Yet one of the most influential factors affecting equipment reliability, energy consumption, maintenance costs, and sustainability often receives far less strategic attention: lubrication. From vertical roller mills and kiln drives to crushers, conveyors, clinker coolers, and large industrial gearboxes, every critical asset depends on effective lubrication to minimise friction, reduce wear, and ensure uninterrupted operation.
The importance of lubrication extends far beyond routine maintenance. According to tribology research, nearly 23 per cent of global energy consumption is associated with overcoming friction and replacing worn components. Researchers have estimated that implementing advanced tribological practices could reduce global energy consumption by as much as 8.7 per cent in the long term. For cement manufacturers operating in highly demanding environments characterised by abrasive dust, heavy loads, high temperatures, vibration, and continuous operations exceeding 8,000 hours annually, lubrication has evolved from a maintenance function into a strategic lever for reliability, sustainability, and profitability.
The significance of this opportunity becomes even clearer when viewed against the backdrop of the cement industry’s environmental challenges. According to the International Energy Agency (IEA), cement manufacturing accounts for approximately 7–8 per cent of global CO2 emissions and consumes nearly 5 per cent of industrial energy worldwide. While much attention is rightly directed toward alternative fuels, clinker factor reduction, and carbon capture technologies, maintenance practices such as lubrication remain one of the most practical and immediately deployable avenues for improving efficiency and reducing emissions.
Why lubrication is critical to cement plant reliability
Cement manufacturing relies on some of the most heavily loaded rotating equipment found in industrial production. Kiln support rollers, girth gears, vertical roller mills, crushers, conveyors, ID fans, and large gearboxes operate under extreme conditions where temperatures, loads, and contamination levels routinely challenge equipment integrity. Under such circumstances, lubricants serve not merely as friction-reducing agents but as essential protective barriers that prevent metal-to-metal contact, dissipate heat, minimise wear, and extend component life.
A modern integrated cement plant may contain thousands of lubrication points distributed across critical and auxiliary equipment. Even a minor lubrication-related issue can escalate rapidly when equipment operates continuously around the clock. Unlike batch manufacturing operations, cement plants often have limited opportunities for shutdowns, making asset reliability a key business priority. Effective lubrication directly contributes to machine availability, process stability, and production continuity.
Industry studies consistently demonstrate the relationship between lubrication and reliability. Research published by SKF indicates that approximately 36 per cent of premature bearing failures are caused by poor lubrication practices, while bearing damage accounts for nearly 50 per cent of rotating equipment failures globally. Similarly, studies by Machinery Lubrication have found that improper lubrication contributes to roughly 43 per cent of mechanical failures and more than half of bearing-related breakdowns. These statistics highlight a critical reality: lubrication is not simply a maintenance task but a reliability strategy.
The consequences of lubricant failure extend well beyond replacement parts. A failed bearing in a vertical roller mill, kiln drive, or critical conveyor system can trigger extended downtime, emergency maintenance costs, production losses, and supply chain disruptions. In large integrated cement plants, even a few hours of unplanned downtime can result in significant financial losses, making lubrication one of the most cost-effective reliability investments available.
Hidden cost of poor lubrication management
Many organisations continue to treat lubrication as a consumable expense rather than a strategic asset management function. This mindset often results in inconsistent lubrication schedules, incorrect lubricant selection, contamination issues, over-lubrication, under-lubrication, and inadequate monitoring practices. The resulting impact is often far greater than the actual cost of the lubricant itself.
Professor Procyon Mukhejee says “Lubricant purchasing often followed a conventional sourcing model: negotiate annual contracts, standardise product grades and optimise price. That logic is still relevant but no longer sufficient. In a cement plant, a lower-cost lubricant that reduces purchase spend may increase oil replacement frequency, raise wear rates or contribute to avoidable downtime. That trade-off is forcing procurement teams to think differently.”
According to industry research, up to 70 per cent of mechanical failures can be linked to contamination, improper lubricant selection, or inadequate lubrication practices. Noria Corporation estimates that world-class lubrication programmes can reduce maintenance costs by 20–40 per cent and extend equipment life by as much as 50 per cent. Conversely, reactive lubrication practices increase spare-part consumption, raise labour requirements, accelerate equipment wear, and elevate operational risk.
The hidden costs are particularly severe in cement plants because contaminants such as dust, moisture, and wear particles are ever-present. Even microscopic contaminants can damage bearing surfaces and gear teeth, leading to premature failure. Poor lubrication management also increases energy consumption because higher friction levels require greater power input to maintain production rates. As a result, the true cost of poor lubrication extends far beyond maintenance budgets and directly impacts overall plant profitability.
Lubricants and energy efficiency
Energy represents one of the largest operating expenses in cement manufacturing. Grinding operations alone account for approximately 60–70 per cent of total electrical energy consumption within a typical cement plant. Consequently, any improvement in equipment efficiency can generate substantial cost savings over time.
Lubricants contribute directly to energy efficiency by reducing friction between moving surfaces. Lower friction means less resistance, lower operating temperatures, and reduced power requirements. Advanced lubricant formulations are specifically designed to optimise film strength while minimising energy losses across gears, bearings, and hydraulic systems.
Dr SB Hegde, Global Cement Industry Expert says, “One of the most overlooked aspects of lubrication in cement plant operations is effective contamination control combined with disciplined greasing practices. Cement dust, which is often harder than bearing steel, can mix with lubricants and create an abrasive grinding paste that accelerates wear and is responsible for a significant share of bearing failures. Despite this, many plants still rely on manual, time-based greasing and outdated sealing systems, resulting in higher energy consumption, premature component wear, and frequent unplanned shutdowns. Automatic lubrication systems, coupled with robust dust exclusion measures, remain one of the most underutilised yet effective reliability solutions in the industry.”
“Smart lubrication practices can have a direct and measurable impact on both profitability and sustainability. The use of high-performance synthetic lubricants, combined with predictive oil condition monitoring, can typically deliver energy savings of 3–4 per cent, translating into substantial annual cost reductions for cement manufacturers. In one notable case, a large cement producer implemented wireless condition monitoring alongside advanced lubrication practices on critical assets and achieved a 57-times return on investment within six months. The initiative generated savings exceeding `8.4 crore and prevented a major bearing failure that could have caused more than 160 hours of downtime, highlighting the significant financial value of proactive lubrication management” he adds.
Research by ExxonMobil and other lubricant manufacturers has demonstrated that synthetic lubricants can reduce energy consumption in industrial gear systems by 2–6 per cent under appropriate operating conditions. While these savings may appear modest on an individual machine basis, the cumulative impact across multiple mills, fans, conveyors, and drive systems can be considerable. For large cement manufacturers operating energy-intensive facilities, even a 2 per cent reduction in power consumption can translate into significant annual cost savings.
Furthermore, reduced friction contributes to improved equipment performance and lower heat generation, enabling machinery to operate more consistently under demanding conditions. In an industry where energy efficiency and carbon reduction targets are becoming increasingly important, lubrication represents a practical pathway for achieving measurable improvements.
Advances in synthetic and high-performance lubricants
The lubricant industry has undergone significant transformation over the past decade. Traditional mineral oils are increasingly being supplemented or replaced by synthetic and semi-synthetic formulations engineered specifically for demanding industrial applications.
Modern synthetic lubricants provide superior oxidation resistance, thermal stability, viscosity retention, load-carrying capacity, and wear protection compared to conventional products. These characteristics are particularly valuable in cement applications where equipment is exposed to extreme temperatures, heavy loads, and continuous operation.
Many premium synthetic lubricants now deliver service lives two to five times longer than traditional mineral oils. This not only reduces lubricant consumption but also minimises maintenance interventions and associated downtime. For cement manufacturers, extended oil drain intervals can significantly improve equipment availability and reduce lifecycle costs.
Synthetic gear oils have gained widespread acceptance in applications such as kiln drives, vertical roller mills, and high-load gearboxes. Field studies have reported gearbox temperature reductions of up to 10°C following conversion from conventional lubricants to advanced synthetic alternatives. Lower operating temperatures contribute directly to improved component life, reduced oxidation, and enhanced overall reliability.
Predictive maintenance, oil analysis, and condition monitoring
The emergence of predictive maintenance has transformed lubrication from a reactive maintenance activity into a proactive asset management discipline. Rather than relying solely on time-based maintenance schedules, cement plants increasingly use oil analysis and condition monitoring technologies to assess equipment health continuously.
Oil analysis provides a wealth of information about both lubricant condition and machine health. Parameters such as viscosity, oxidation, contamination levels, moisture content, additive depletion, and wear particle concentrations can reveal developing problems long before equipment failure occurs. In many cases, lubrication-related abnormalities represent the earliest warning signs of impending mechanical issues.
Gaurav K Mathur says “Dust contamination remains the single biggest lubrication-related challenge affecting cement plant productivity today. Airborne silica and clinker dust penetrate bearings, gear housings, and lubrication systems, transforming lubricants from protective agents into abrasive mediums. These contaminants are often as hard as bearing steel and create a three-body abrasion mechanism that rapidly accelerates wear, especially under the high temperatures, shock loads, vibration, and continuous-duty operating conditions typical of cement plants. Poor sealing systems can increase wear rates by three to five times, leading to premature failures, rising maintenance costs, and reduced equipment life. Compounding the issue is a growing industry-wide shortage of experienced lubrication professionals, resulting in a loss of critical maintenance expertise and an increasing reliance on reactive rather than predictive maintenance.”
Reliability experts frequently describe oil analysis as a “blood test” for machinery because it provides valuable insights into internal equipment conditions without requiring disassembly. Studies suggest that every dollar invested in predictive maintenance can generate returns of five to ten dollars through avoided failures and reduced downtime.
Leading cement producers increasingly combine oil analysis with vibration monitoring, thermography, ultrasonic inspection, and digital condition monitoring platforms. This integrated approach enables maintenance teams to move from reactive maintenance to predictive asset management, reducing downtime while improving equipment lifespan and operational reliability.
Total lubrication management: a strategic approach to asset health
As reliability expectations continue to increase, many cement manufacturers are adopting Total Lubrication Management (TLM) programmes.
TLM extends beyond lubricant selection and incorporates every aspect of lubrication management, including storage, handling, contamination control, application methods, oil analysis, training, and continuous improvement.
Gaurav K Mathur, Director & Chief Executive, Global Technical Services says, “Smarter lubrication practices can significantly reduce both energy consumption and maintenance expenditure. The implementation of Total Lubrication Management (TLM), supported by careful lubricant selection, customised lubrication strategies, and robust contamination control, helps reduce friction across critical equipment and improve operational efficiency by up to 3 per cent. In energy-intensive cement plants, even marginal efficiency gains can translate into substantial cost savings. Improved lubrication practices also reduce wear, minimise overheating, extend equipment life, and lower the frequency of maintenance interventions, directly contributing to higher plant availability and lower total operating costs.”
“The most impactful innovation for the cement sector will not be a single lubricant product but the widespread adoption of Total Lubrication Management as a structured reliability framework. TLM integrates contamination control, oil analysis, condition-based maintenance, online filtration, lubricant regeneration, digital tracking, and condition monitoring into a unified system. This approach transforms lubrication from a routine maintenance activity into a strategic asset management function. The result is improved equipment reliability, reduced lubricant consumption, lower waste generation, enhanced energy efficiency, and a smaller carbon footprint. In an industry characterised by harsh operating environments and growing sustainability expectations, TLM offers a practical pathway to achieving higher reliability, improved profitability, and long-term operational sustainability” he adds.
One of the primary objectives of TLM is contamination control. Dust, moisture, and wear particles are widely recognised as the leading causes of lubricant degradation and equipment failure. Given the inherently dusty environment of cement plants, effective contamination control becomes essential for maintaining lubricant quality and equipment health. Another important component of TLM is lubricant consolidation. Many plants operate with dozens of lubricant grades, increasing inventory complexity and the risk of cross-contamination. Best-in-class lubrication programmes often reduce lubricant inventories by more than 30 per cent while simultaneously improving operational reliability.
Training also plays a critical role. Industry surveys suggest that fewer than half of lubrication technicians receive formal lubrication training. Yet organisations that invest in lubrication education consistently report lower failure rates, improved maintenance performance, and better asset utilisation. One widely cited industrial case study documented a reduction in bearing failures from nearly 400 per month to just 12 after implementing comprehensive lubrication excellence initiatives.
Supporting sustainability
Sustainability has become a central priority across the cement industry. While alternative fuels and carbon capture technologies often dominate discussions, lubrication also contributes significantly to environmental performance.
Longer-lasting lubricants reduce waste oil generation and disposal requirements. Large integrated cement plants may consume tens of thousands of litres of lubricants annually, making lubricant lifecycle management an important sustainability consideration. Extending drain intervals by even 50 per cent can substantially reduce lubricant consumption and associated environmental impacts. Improved lubrication also extends equipment life, reducing demand for replacement components and lowering the environmental footprint associated with manufacturing, transportation, and installation activities. By reducing friction and wear, lubricants enable machinery to operate more efficiently while consuming less energy.
Tribology researchers Holmberg and Erdemir estimate that advanced friction-reduction technologies could potentially reduce global carbon emissions by up to 1,460 million tonnes annually. Although this figure spans multiple industrial sectors, it
highlights the enormous sustainability potential of improved lubrication practices. For cement manufacturers pursuing net-zero ambitions, lubrication represents one of the most accessible and cost-effective tools available.
Digitalisation, automation, and smart monitoring
The future of lubrication management is increasingly digital. Smart sensors, Industrial IoT platforms, automated lubrication systems, and artificial intelligence are changing how maintenance teams manage equipment health.
Modern lubrication monitoring systems can continuously track temperature, viscosity, moisture levels, contamination levels, and lubricant condition in real time. This enables maintenance personnel to identify emerging issues before they affect production, allowing interventions to be planned rather than forced by equipment failures.
“The future of lubrication management will be defined by the integration of smart, data-driven, and automated systems powered by IoT sensors, artificial intelligence, and real-time oil condition monitoring. These technologies are enabling a shift from traditional schedule-based lubrication to predictive and prescriptive maintenance, where lubricant quantity, frequency, and selection are optimised based on actual equipment condition. The result will be near-zero unplanned downtime, lower lubricant consumption, higher equipment reliability, and improved Overall Equipment Effectiveness (OEE). As India continues to add significant cement manufacturing capacity, early adopters of intelligent lubrication technologies will gain a competitive advantage through lower operating costs, greater reliability, and stronger sustainability performance” says Dr Hegde.
Automated lubrication systems are also becoming more prevalent throughout the cement industry. By delivering precise lubricant quantities at predetermined intervals, these systems eliminate many of the inconsistencies associated with manual lubrication practices. The result is improved equipment protection, lower lubricant consumption, and enhanced reliability.
Market analysts forecast the global predictive maintenance market to exceed $50 billion by 2030, reflecting the growing importance of data-driven maintenance strategies. As digital technologies continue to mature, lubrication will become an increasingly integrated component of broader asset performance management systems.
Conclusion
As cement manufacturers pursue greater productivity, higher sustainability standards, and improved operational resilience, lubrication must be recognised as a strategic business function rather than a routine maintenance activity. The evidence is overwhelming: effective lubrication improves reliability, reduces energy consumption, extends equipment life, lowers maintenance costs, and supports sustainability objectives simultaneously.
The next frontier of cement plant optimisation will not be driven solely by larger kilns, more efficient mills, or alternative fuels. It will also be shaped by how effectively operators manage the health of their critical assets. Through advanced lubricants, predictive maintenance, oil analysis, contamination control, and Total Lubrication Management programmes, cement manufacturers can unlock substantial gains in operational performance while supporting long-term environmental and business goals.
In an increasingly competitive industry, lubrication is no longer merely about reducing friction. It is about enabling reliability, protecting profitability, and creating a foundation for sustainable growth. The plants that recognise this shift and invest in lubrication excellence today will be best positioned to meet the performance demands of tomorrow.
The Indian cement industry enters FY27 with a familiar paradox: strong long-term fundamentals coupled with short-term uncertainty.
Recent government data shows that India’s core infrastructure sectors grew by 1.7 per cent in April 2026, with cement emerging as the strongest performer among all eight core industries, recording a robust 9.4 per cent year-on-year increase in output. The numbers reaffirm the central role of cement in India’s infrastructure story and signal that construction activity continues to gather momentum despite global economic headwinds.
Yet, beneath this encouraging growth lies a more nuanced reality. Cement producers are entering the new fiscal year with cautious optimism. While infrastructure spending, housing demand and urbanisation remain powerful growth drivers, the prolonged geopolitical tensions in West Asia have introduced a fresh layer of uncertainty. Rising fuel prices, increasing freight costs and pressure on import-dependent supply chains are expected to impact profitability over the coming quarters. Consequently, industry demand projections have moderated, with many companies now expecting growth in the range of five-seven per cent rather than the eight-nine per cent anticipated earlier.
One area that is undergoing a remarkable transformation is logistics. Indian Railways has reported a dramatic increase in cement movement following the introduction of bulk cement tank containers, a development that underscores the industry’s search for cleaner, more efficient transportation alternatives. Companies are exploring electric mobility solutions for bulk transport, recognising that the journey to net zero extends far beyond the factory gate.
The future competitiveness of cement companies will depend on how effectively they manage not only production costs but also supply chain emissions. Green logistics is fast becoming a business necessity.
The upcoming Multi Logistics Expo and Conference 2026, co-located with Cement Expo 2026, will provide an important platform for stakeholders to examine the technologies, policies and partnerships shaping the future of cement logistics. The events will be held from 15th to 17th December 2026, at the India Expo Centre & Mart, Greater Noida.
In the years ahead, the race to decarbonise cement will be won not only at the kiln, but across every kilometre of the supply chain.
ACC To Expand Cement Capacity Amid Strong Infrastructure Demand
Ambuja Sees Cement Demand Easing To Around Five Per Cent In FY27
Powering Cement Through Intelligent Motion
Liquid Intelligence
The Logistics Imperative
ACC To Expand Cement Capacity Amid Strong Infrastructure Demand
Ambuja Sees Cement Demand Easing To Around Five Per Cent In FY27
Powering Cement Through Intelligent Motion
Liquid Intelligence

