India’s manufacturing sector sits at the centre of the country’s economic ambitions. It contributes more than 16 per cent to the national GDP and supports over 27 million workers across formal and informal units. Its scale reaches into every major industry, from textiles and chemicals to steel and machinery. This breadth has made manufacturing a steady engine of economic activity and innovation. The sector is expected to contribute 25 per cent to the GDP, and by 2030, its share in the overall goods exports will reach one trillion dollars.

This growth story, however, comes with responsibility. As manufacturing output rises, so does energy use, manufacturing already accounts for nearly 27 per cent of India’s commercial energy consumption. When viewed within the larger industrial segment, the share climbs to around 42 per cent of the country’s total electricity use. The pressure will grow as more plants expand production lines, add new machinery, and move towards more advanced digital operations. Even with the steady increase in renewable capacity, most electricity still comes from coal. This creates both financial and environmental strain, making energy conservation more than a moral choice. It has become a strategic requirement. 

Why energy efficiency has become a strategic priority

Over the past decade, manufacturing processes have become more energy intensive. Automated lines, precision machining, and continuous processing improve product quality, yet they also draw more power. Reduced electricity bills could bring down energy-related costs by 10 to 15 per cent. For businesses working with tight operating margins, this difference matters. In some industries, electricity alone accounts for 20 to 30 per cent of total production costs. These include metals, cement, chemicals, and heavy engineering. A modest reduction in energy expenses can alter financial performance. If the electricity cost is cut by just 10 per cent, EBITDA margins can increase by 40 to 100 basis points, depending on the sector.

Alongside cost concerns, energy efficiency now plays a direct role in global competitiveness. Exporters in automotive, steel, and aluminium are being assessed on the carbon footprint of their products. Global regulations, including the European Union’s Carbon Border Adjustment Mechanism and similar trade-linked norms, are strengthening this requirement. In this environment, each unit of energy saved carries a dual reward. It lowers production costs and improves compliance with international standards. Energy management has therefore shifted from being a support activity to a core component of export readiness. For Indian manufacturers, treating efficiency as a strategic priority is vital for cost control, regulatory adherence, and sustainable growth.

Energy efficiency equipment a driver of stronger performance

Energy-efficient systems help plants produce more with the same amount of power, sometimes even less. In process industries such as pulp and paper, pharmaceuticals, and food and beverage, rotating equipment is among the most energy-intensive assets. Pumps, compressors, agitators, and mixers operate for long hours, moving liquids, chemicals, and slurries through critical production processes. Small improvements in the efficiency of these machines can translate into meaningful reductions in energy consumption, helping plants manage costs without compromising throughput. Optimising the performance of these assets ensures that electrical energy is converted into mechanical work as effectively as possible, directly supporting lower overall energy demand.

Mechanical seals and seal support systems play a crucial role in maintaining the efficiency of rotating equipment. Properly designed seals reduce friction, prevent leakage, and allow pumps and compressors to operate closer to their ideal efficiency curves. Even marginal improvements in sealing performance can significantly decrease the energy required to maintain pressure and flow. In continuous operations, such as paper manufacturing or pharmaceutical processing, these gains scale rapidly, offering measurable benefits across entire production lines and contributing to more stable and predictable output.

Alongside individual equipment improvements, system-level enhancements also support energy savings. Optimised layouts, reduced recirculation losses, and correct sizing of pumps and compressors ensure that energy is not wasted in unnecessary circulation or overcapacity. When combined with advanced equipment that is designed for efficiency and reliability, these measures allow plants to meet rising production demands while keeping energy consumption under control. The result is a more cost-effective operation, a predictable energy profile, and a stronger foundation for sustainable growth.

Efficiency needs insight, not just equipment

Efficiency gains from modern rotating equipment can be significantly enhanced through smart monitoring and analytics. Real-time sensors track energy consumption, vibration, temperature, and pressure across pumps, compressors, agitators, and mixers, providing detailed insights into operational performance. This visibility enables plant teams to balance loads, optimise processes proactively, and uncover inefficiencies that might otherwise go unnoticed. Even minor misalignment or underperformance in critical equipment can increase electricity consumption and introduce variability, making it more difficult to maintain consistent production and predictable energy usage.

Advanced analytics platforms build on these insights by consolidating operational data and highlighting trends or anomalies. Operators can pinpoint where energy use deviates from expected patterns and implement targeted adjustments before inefficiencies escalate. Over time, these small, incremental improvements accumulate across the plant, creating a more predictable energy profile and reducing overall energy intensity. The results are tangible as plants lower operating costs, improve resource utilisation, and make measurable progress toward sustainability goals. Teams can even track performance against internal benchmarks and broader environmental standards, ensuring energy efficiency becomes actionable and visible.

The adoption of smart monitoring tools also fosters a proactive energy management culture. Plant managers gain a clear understanding of how operational decisions impact energy use, enabling smarter scheduling and load distribution. Operators develop real-time awareness of the effects of their actions, embedding efficiency into daily routines rather than treating it as an occasional initiative. Applying these insights across rotating equipment strengthens overall plant performance, reduces energy waste, and improves operational resilience. These operational insights and efficiency gains not only strengthen plant performance but also position manufacturers to respond effectively to evolving policy frameworks and incentive programmes aimed at promoting energy conservation.

Policies and trends accelerating the shift

Government programmes further support these efficiency efforts, guiding industry adoption of structured energy conservation practices. The Perform Achieve and Trade scheme remains central to this agenda. Recent updates show that PAT is now more closely aligned with the upcoming Carbon Credit Trading Scheme, which has already notified emission intensity targets across nine major sectors. This marks a shift from voluntary improvements to structured, compliance-led reductions in energy use. Because it links performance with measurable requirements, the policy framework encourages companies to treat efficiency as a long-term discipline.

Several states have added their own incentives. These include capital subsidies, interest support for efficient equipment, and preferential tariffs for facilities that meet certified energy standards. Support for rooftop solar installations and building upgrades has also strengthened. These moves make the shift to efficient systems more accessible for both large and mid-sized industries.

Market dynamics are reinforcing this momentum. Variable Frequency Drives, efficient motors, and upgraded boilers have become more affordable. Plants often recover their investment in VFDs within one to two years. Lighting upgrades, particularly LEDs, deliver payback periods of less than a year in facilities with long operating hours. As prices decline and performance improves, businesses view energy conservation as part of routine operations rather than a peripheral sustainability project.

Conclusion

Energy efficiency in manufacturing is becoming a cornerstone of future-ready operations. Plants that integrate reliable equipment with actionable data insights can optimise processes, maintain consistent performance, and ensure energy is used effectively across critical systems. This capability supports smoother production planning; better load distribution, and greater operational reliability, helping manufacturers scale output without increasing energy strain.

Looking ahead, these practices will strengthen energy security and reduce demand pressures on the grid while enhancing the global competitiveness of Indian manufacturing. Embedding efficiency into everyday operations positions energy management as a strategic enabler, delivering cost savings, predictable performance, and measurable progress toward sustainability targets. Manufacturers that continue to adopt smarter processes and optimise energy use will be better equipped to meet evolving production needs and environmental expectations, securing both economic and operational resilience.

About the author:

Satish Ingavale is an industry leader with extensive experience in engineering and industrial solutions, currently serving as Managing Director of John Crane India. Beyond his MD role, Satish holds senior leadership positions across related engineering and services companies, including as Additional Director at Smiths India Services and Director at Seebach Filter Solutions India.