Redefining Green Manufacturing: Energy Efficiency as the First Fuel

In the global race toward sustainability, energy efficiency is often the unsung hero. While the spotlight often shines on renewable energy, the International Energy Agency (IEA) refers to energy efficiency as the “first fuel” — the cleanest, fastest, and most cost-effective way to reduce emissions. For India, where industrial energy demand is expected to nearly double by 2040, this principle holds profound relevance.

The Indian manufacturing sector accounts for nearly 25% of the country’s total energy consumption. Yet, as per a report by NITI Aayog, there exists a technical potential to reduce industrial energy use by up to 25% through cost-effective efficiency measures. From motors and drives to lighting and heating systems, smarter choices in energy management can significantly curb emissions without major infrastructure overhauls.

Technological interventions are at the heart of this transition. Variable Frequency Drives (VFDs), BLDC fans, and IoT-enabled monitoring systems are now industry standards in energy-intense operations. A McKinsey study noted that retrofitting older plants with modern equipment can lead to a 10–15% reduction in energy intensity. However, the challenge is not just access to technology—it’s embedding a culture of efficiency within every layer of an organisation.

As a tyre manufacturer with large-scale production facilities, CEAT has seen firsthand how incremental changes drive exponential impact. For instance, the company reduced energy intensity by over 7% last fiscal year by integrating VFDs, LED retrofits, and steam optimisation in curing processes. While these may seem like routine updates, their cumulative effect has translated into emission savings of nearly 9,775 metric tonnes.

The larger opportunity lies in data. Energy monitoring systems powered by AI and IoT can offer predictive insights, allowing industries to shift from reactive maintenance to proactive energy governance. According to the Bureau of Energy Efficiency (BEE), plants under its Perform, Achieve, Trade (PAT) scheme have already saved over 90 million metric tonnes of CO2 emissions since inception. Still, scaling this success requires stronger public-private collaborations and incentives for SMEs to invest in efficiency.

Beyond compliance, energy efficiency is fast becoming a differentiator in the global supply chain. Large OEMs and global buyers are now evaluating suppliers based on ESG metrics, with energy intensity being a critical indicator. This shift is compelling Indian manufacturers to rethink their energy narratives—not just as a cost centre, but as a lever for competitiveness.

On this Earth Day, as we navigate an increasingly carbon-conscious economy, it's time for the industry to put energy efficiency where it belongs—at the core of sustainable growth. It's not just about using less energy; it’s about using it smarter.

Jignesh Sharda is Senior Vice President Quality Assurance at CEAT Ltd. Views expressed are the author's own.