Economy & Market
Care Ratings Report
Published
5 years agoon
By
admin
Outbreak of the COVID-19 pandemic in the Indian sub-continent which forced the government to announce a nationwide lockdown, 25th March 2020 onwards affected the domestic cement production during FY20. Construction activity across the country was halted, which is normally at its peak in the month of March, affected the cement offtake. Production fell by 24.7 percent during March 2020 as compared with the 15.7 percent growth achieved during March 2019.
Capacity
As per Cement Manufacturers Association, India accounts for over 8% of the overall global installed capacity. Region wise, the Southern region comprises of 35% of the total cement capacity followed by the Northern, Eastern, Western and Central region comprising of 20%, 18%, 14% and 13% of the capacity respectively.
Chart 2:
Installed capacity and Capacity Utilization rate of Cement Manufacturers (Unit: Million Tonnes) Installed Capacity of domestic cement manufacturers has increased at a CAGR of 7.1 % during FY16-20. Manufacturers have been able to maintain a capacity utilization rate above 65 % between FY15-19 but prolonged rains in many parts of the country and with the temporary closure of cement plants during the government enforced lockdown has led to the capacity utilization rate to fall from 70 % during FY19 to 61 percent during FY20.
Demand Drivers for the Cement Industry
Cement demand is closely linked to the housing and infrastructure sector. Increasing demand coming from affordable housing and construction work for government infrastructure projects like roads, metros, airports, irrigation etc. should ideally support the demand for cement going forward.
Chart 3:
Key growth drivers for the Cement Industry
National Infrastructure Pipeline: Of the total projects of the NIP, 42% are under implementation while 19% are under development, 31% are at the conceptual stage and 8% are yet to be classified. The sectors that will be of focus will be roads, railways, power (renewable and conventional), irrigation and urban infrastructure. These sectors together are to account for 79% of the proposed investments in the 6 years period to 2025. Given the government’s thrust on infrastructure creation, it is likely to benefit the cement industry going forward.
Affordable Housing: Under the Pradhan Mantri Awaas Yojana (PMAY) the centre had introduced the credit link subsidy scheme, in May 2017, which was initially extended till March 31st, 2020 but now has been extended for one more year till March 2021. The credit link subsidy scheme has benefitted 3.3 lakh families till now and aims to benefit another 2.5 lakh to get affordable houses.
Prices of cement
Source: CMIE
Chart 4
Trend in prices
Wholesale and retail prices have increased by 11.7% and 12.5% during FY20. Prices have started correcting Q4FY20 onwards due to revival in demand due to given the restart of major infrastructure projects, new launches, pick-up in the real-estate demand in urban areas and announcement of the NIP.
Financials The overall sales revenue has increased by only 1.3% during FY20 as compared with the 24.4% growth rate achieved during FY19. Overall expenditure has declined by 4.5% which has benefitted the industry largely given the moderation in sales. Selling and distribution, cost of raw materials and fuel/electricity cost encompass around 70% of the total expenses for cement manufacturers.
– Electricity and fuel cost have declined by about 12.7% during FY20 due to the sharp drop in crude oil prices.
– Logistics costs which are the biggest cost for cement industry has also dropped by 7.9% (selling and distribution) as the railways extended the benefit of exemption from busy season surcharge.
– Cost of raw materials too declined by 4.4% given the price of limestone of had also fallen by 9.6% during FY20
Outlook for FY21
Cement production is to fall sharply by 25-30% during FY21 and capacity utilization is to be around 40-45%.This will be the steepest ever fall in production (and capacity utilisation) that the industry has ever witnessed. Production of cement has fallen by 0.8% during FY20 as against the grown of 13.3% during FY19.
Cement manufactures are not expected to make any additions to the existing CAPEX and given the limited demand present there has also been CAPEX deferral announcements.
The nationwide lockdown has come at the time when construction activities is at its peak and it will be followed by the monsoon season where again the construction activity will be impacted thereby affecting entire dynamics of demand-supply for cement.
Towards Recovery Partial Recovery Stressed
Given the weakness in end user demand due to the lack of activity in the housing and infrastructure sector the cement industry is expected to remain in the red zone till October 2020 at least, till the end of the monsoon season. Partial recovery is expected November 2020 onwards and normalisation of operations post January 2021 onwards.
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Efficient Cooling Solution Boosts Gearbox Uptime
Published
15 minutes agoon
July 23, 2025By
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Efficient Oil Cooling for Gearbox in the Cement Industry. How a High-Performance Plate Heat Exchanger Ensured Thermal Stability and Operational Continuity.
Contributed by: Narendra Joshi and Sourabh Mishra
Application: Gearbox Oil Cooling
Objective: To maintain optimal oil temperature in high-viscosity lubrication systems for gearboxes in cement plants, ensuring uninterrupted operations and minimizing production losses due
to overheating.
Challenge: A prominent cement manufacturing company’s conventional cooling systems were failing to maintain the oil temperature within the optimal range, jeopardizing equipment performance and leading to avoidable downtime.
Background with the Existing System
In heavy-duty industrial applications, particularly in the cement industry, gearboxes are critical components that must operate under high mechanical loads and harsh conditions. These gearboxes rely on lubrication systems where oil plays a dual role, lubrication and heat dissipation. A recurring challenge in such setups is managing the temperature of the gearbox oil. When oil heats beyond a critical limit, its viscosity drops, reducing its ability to form a protective film. This leads to increased friction between components, heat generation, and eventual damage to gearbox components — directly impacting plant uptime and production output.
Delivering Sustainable Heat Transfer Solution with HRS FUNKE High Efficiency Heat Exchanger
This system was selected for its:
- Excellent thermal performance, ensuring rapid and efficient oil cooling even with high-viscosity fluids.
- Leakage-proof operation, with no cross-contamination between cooling water and lubrication oil.
- Robust design, capable of withstanding high operating pressures and variable flow conditions.
The plate exchanger was custom configured based on the oil’s properties, desired outlet temperature, and ambient heat load, ensuring that the oil remained within the specified viscosity range necessary for maintaining gearbox operation and lubrication integrity.
Performance Benefits Delivered
- Oil temperature control and maintained consistently within target range
- Viscosity stability and prevented breakdown of lubrication film
- Equipment reliability and reduced risk of gearbox overheating or failure
- Production continuity and eliminated unplanned stoppages
- Long-Term savings and lower maintenance costs and extended oil life
Solution: To address the problem, HRS Process Systems Ltd recommended the installation of a Funke Plate Heat Exchanger a compact, high-efficiency thermal solution engineered specifically for industrial lubrication oil cooling.
Conclusion: The customer achieved precision oil temperature control, ensuring that the gearboxes operated at optimal conditions. This not only safeguarded the mechanical integrity of the gearbox but also directly contributed to higher plant uptime and improved production efficiency in heavy industries like cement manufacturing.
(Communication by the management of HRS Process Systems Ltd)
Concrete
How Upgrades Can Deliver Energy Savings Across the Cement Process
Published
1 week agoon
July 16, 2025By
admin
Jacob Brinch-Nielsen, Vice President of Professional Services, FLSmidth Cement, brings together recommendations from experts across the flow sheet to demonstrate the role of upgrades in optimising the cement manufacturing process.
Improving energy efficiency in material transport
Pneumatic conveying offers a cleaner and more contained alternative to mechanical conveying. However, pneumatic systems can also be energy-intensive, with inefficiencies arising from air leakage, pressure losses, and outdated equipment designs. Optimising these systems can significantly reduce energy consumption and operating costs.
“One major challenge is maintaining efficient air-to-material ratios, as excessive air use leads to unnecessary power consumption,” explains Emilio Vreca, Manager of PT Product Engineering “Leaks in piping and inefficient compressors further compound energy losses. To address these issues, upgrading to the latest pneumatic conveying solutions can yield substantial improvements.”
The latest pump design—the Fuller-Kinyon® (FK) ‘N’ Pump—provides power savings of up to 15 per cent thanks to an improved seal, while an extended barrel and screw design have improved volumetric efficiency by more than 15 per cent. Similarly, the latest generation Ful-Vane™ Air Compressor has been engineered for increased energy efficiency, with an improved inlet area for capturing larger air flows and compatibility with variable frequency drives.
Optimising energy efficiency in packing and dispatch
Even minor inefficiencies in bagging and palletising can lead to higher maintenance demands, increased material waste, and unnecessary energy use. Reducing these inefficiencies is yet another lever to improve overall plant performance and sustainability.
Upgrading rotary packers enhances weighing accuracy, reduces spout-to-spout variations, and lowers reject rates, improving both product consistency and energy efficiency. Similarly, replacing pneumatic drive systems in palletisers with electric alternatives eliminates compressed air dependency, leading to more precise bag handling and reduced energy demand. These targeted upgrades help streamline operations while minimising environmental impact.
A key development in dust control is the FILLPro™ Dust Reduction Kit for GIROMAT® EVO. “By refining material flow and fluidisation, FILLPro reduces dust emissions at the source, improving bagging efficiency and plant cleanliness,” explains Gabriele Rapizza, Proposal Engineer. “This reduces material loss, prevents blockages, and cuts down on maintenance, helping plants achieve a more stable and energy-efficient packing operation.”
How services contribute to increased energy efficiency
In the past, many viewed the role of the supplier as a “sell-and-move-on” model. Things have certainly changed. As cement producers face challenging markets, heightened competition, and increasingly ambitious decarbonisation targets there is little room to tolerate inefficiencies within the plant. The paradigm has shifted such that the value of expert services is as essential as the initial equipment supplied. Furthermore, as digital solutions progress at speed, a fluid, long-term partnership gives cement plants the best platform to take advantage of the latest tools.
Whether it’s an audit to identify why energy efficiency has decreased from one year to the next, or even an optimisation package preparing your plant for carbon capture solutions – we are believers in the principle that there is always more we can do to improve efficiency. For example, our Online Condition Monitoring Services (OCMS) provide continuous monitoring of critical equipment such as the kiln, mills, cooler and fans, aggregating data and utilising advanced algorithms to identify potential trouble spots. As the OEM and an experienced full solutions provider, we can support these services with expert advice, not only alerting you to a problem but also providing recommendations as to how to remedy it or attending site to support you in person.
Small upgrades, big impact
Energy efficiency is a critical factor, influencing both operational costs and sustainability goals. While large-scale innovations such as carbon capture will play an essential role in long-term decarbonisation (and steal the headlines), incremental mechanical upgrades offer an immediate pathway to lower energy consumption with minimal disruption.
By optimising key process areas — grinding, dosing, combustion, cooling, and material transport — you can achieve measurable energy savings while improving performance and flexibility. These solutions provide a strong return on investment and pave the way for a more sustainable cement industry.
Part 3 of 3. Read Part 1 in the May issue of Indian Cement Review and Par 2 in the June issue of the Indian Cement Review magazine.
(Communication by the management of the company)
Economy & Market
Hindalco Buys US Speciality Alumina Firm for $125 Million
Published
4 weeks agoon
June 25, 2025By
admin
This strategic acquisition marks a significant investment in speciality alumina, a key step by Aditya Birla Group’s metals flagship towards becoming future-ready by scaling its high-value, technology-led materials portfolio.
Hindalco Industries, the world’s largest aluminium company by revenue and the metals flagship of the $28 billion Aditya Birla Group, has announced the acquisition of a 100 per cent equity stake in US-based AluChem Companies—a prominent manufacturer of speciality alumina—for an enterprise value of $125 million. The transaction will be executed through Aditya Holdings, a wholly owned subsidiary.
This acquisition represents a pivotal investment in speciality alumina and advances Hindalco’s strategy to expand its high-value, technology-led materials portfolio.
Hindalco’s speciality alumina business, a key pillar of its value-added strategy, has delivered consistent double-digit growth in recent years. It has emerged as a high-growth, high-margin vertical within the company’s portfolio. As speciality alumina finds expanding applications across electric mobility, semiconductors, and precision ceramics, the deal positions Hindalco further up the innovation curve, enabling next-generation alumina solutions and value-accretive growth.
Kumar Mangalam Birla, Chairman of Aditya Birla Group, called the acquisition an important step in their global strategy to build a leadership position in value-added, high-tech materials.
“Our strategic foray into the speciality alumina space will not only accelerate the development of future-ready, sustainable solutions but also open new pathways to pursue high-impact growth opportunities. By integrating advanced technologies into our value chain, we are reinforcing our commitment to self-reliance, import substitution, and building scale in innovation-led businesses.”
Ronald P Zapletal, Founder, AluChem Companies, said the partnership with Hindalco would provide AluChem the ability and capital to scale up faster and build scale in North America.
“AluChem will benefit from their world-class sustainability and safety standards and practices, access to integrated operations and a consistent, reliable raw material supply chain. Their ability to leverage R&D capabilities and a talented workforce adds tremendous value to our innovation pipeline, helping drive market expansion beyond North America.”
An Eye on the Future
The global speciality alumina market is projected to grow significantly, with rising demand for tailored solutions in sectors such as ceramics, electronics, aerospace, and medical applications. Hindalco currently operates 500,000 tonnes of speciality alumina capacity and aims to scale this up to 1 million tonnes by FY2030.
Commenting on the development, Satish Pai, Managing Director, Hindalco Industries, said the deal reinforced their commitment to innovation and global expansion.
“As alumina gains increasing relevance in critical and clean-tech sectors, AluChem’s advanced chemistry capabilities will significantly enhance our ability to serve these fast-evolving markets. Importantly, it deepens our high-value-added portfolio with differentiated products that drive profitability and strengthen our global competitiveness.”
AluChem adds a strong North American presence to Hindalco’s portfolio, with an annual capacity of 60,000 tonnes across three advanced manufacturing facilities in Ohio and Arkansas. The company is a long-standing supplier of ultra-low soda calcined and tabular alumina, materials prized for their thermal and mechanical stability and widely used in precision engineering and high-performance refractories.
Saurabh Khedekar, CEO of the Alumina Business at Hindalco Industries, said the acquisition unlocked immediate synergies, including market access and portfolio diversification.
“Hindalco plans to work with AluChem’s high performance technology solutions and scale up production of ultra-low soda alumina products to drive a larger global market share.”
The transaction is expected to close in the upcoming quarter, subject to customary closing conditions and regulatory approvals.

Efficient Cooling Solution Boosts Gearbox Uptime

How Upgrades Can Deliver Energy Savings Across the Cement Process

Hindalco Buys US Speciality Alumina Firm for $125 Million

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Nuvoco Vistas reports record quarterly EBITDA

Efficient Cooling Solution Boosts Gearbox Uptime

How Upgrades Can Deliver Energy Savings Across the Cement Process

Hindalco Buys US Speciality Alumina Firm for $125 Million

Star Cement launches ‘Star Smart Building Solutions’
