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We expect another growth burst in cement demand in the coming years

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Amandeep, Group Executive Director and Joint CEO, OCL India

OCL India owns one of the most modern dry process cement plants in India. Presently, it has an installed capacity of 5.35 million tonnes per annum. Apart from its two cement plants, the Rajgangpur Cement Works and Kapilas Cement Works, OCL has a Refractory plant at Rajgangpur with a total installed capacity of 106.4 billion tonnes per annum. OCL was the first to initiate cement export from eastern region to countries like Bangladesh and Nepal. Amandeep, in an interaction with ICR, shares the success story of the company. Excerpts from the interview.

Please brief us about your company and the markets served?
OCL India is the flagship of the Dalmia Group of Companies, having set up plants operating in four states of India – Odisha, West Bengal, Bihar and Jharkhand. Our first cement plant was set up at Rajgangpur during 1950-51 at the request of the Government of Odisha to manufacture super grade cement for use in the construction of the prestigious Hirakud Dam. At that time it was known as Orissa Cement Ltd.

OCL commissioned its Refractory plant in the year 1954, which today has grown into one of the largest composite refractory plants in the country. It manufactures silica, basic burnt magnesia carbon, fireclay, high alumina bricks, continuous casting, slide gate refractories, castables and precast blocks, etc. OCLs Refractory division is the first Indian refractory manufacturer to have secured the coveted ISO 9001 certification for all its refractory products. Globally OCL is amongst the few select producers of coke oven silica bricks.

The company changed its name from Orissa Cement Ltd to OCL India in1996 to reflect its multifarious activities such as manufacture of iron and steel.

How has the company performed during the last five years in terms of growth and product launches?
The company had added a capacity of 1.35 million tonnes (MnT) in 2008 and has continued growing at an average rate of 19 per cent in subsequent three years. OCL maintained its volume in the 2012-2014 period. We expect another growth burst in cement demand the coming years and we have added another 1.35 MnT to our production capacity.

OCL sells its product under brand name Konark and has two variants of the product, PSC and PPC. Recently, OCL launched a premium product named DSP in the market.

How is the brand recognition of Konark in the market?
Konark is leading brand in the state of Odisha commanding highest premium and largest market share. In markets of West Bengal, Bihar and Jharkhand, Konark is seen as a reputed brand and is rated high on quality by all its consumers.

Konark brand has been extensively used in the construction of the prestigious Hirakud Dam in Odisha and in building some of Indias largest roads, bridges and industrial plants, including the Vidyasagar Setu in Kolkata, the Gandhi Sagar Bridge in Patna, as well as in the construction of port facilities at Haldia and Paradip. Konark was used in construction of 2.2 million tonnes integrated steel plant of Electro Steel Integrated in Bokaro, Jharkhand; in a 3 million tonnes integrated steel plant of Jindal Steel & Power at Angul, Odisha; and in construction of an all weather new private port at Dhamara near Bhadrak in Odisha.

Apart from strong brand recall what else attracts customers to Konark?
Quality, service and innovation in packaging are the three key areas that keep our customers coming back to us. Good service is equally important to meet the ever growing expectations of the channel. We also have to keep improving our supply chain for ensuring timely availability of cement to our customers.

We keep ourselves constantly updated about the needs of the market and try to meet them through new innovative products. This has led us to come up with DSP, a premium product for high strength applications such as foundation for multi-storey buildings, etc. Innovation in package design has helped in setting the product apart from traditional products, and project it as a modern contemporary brand that appeals to the young as well as to the older generation

Please share a percentage wise break up of revenue earned from different product lines?
OCL has two different products – cement and refractory. Cement accounts for the 82 per cent of our revenue while refractory brings in the remaining 18 per cent revenue.

What are your plans for further expansion?
We have recently set up a grinding unit in West Medinipur, West Bengal. OCL does not have any further expansion plans at least for the near foreseeable future.

Are you planning to launch any new product in the near future?
We have launched DSP a premium product in April 2014. This product will be launched in West Bengal very soon.

Tell us about your CSR activities?
OCL has undertaken various developmental activities in peripheral areas of its plant at Rajgangpur and the captive mines at Lanjiberna. Our CSR program is based on four pillars: Education, Skill Development, Health and Infrastructure development to support the other three.

Education:

We have started a Remedial Centre for the underprivileged students of 9th and 10th class studying in government schools. We have seen an improvement in the grades of last batch, which passed out. 34 per cent of the students scored 1st division in the board exams. We have also opened a centre for 4th and 5th class students for helping them study well in Navodaya Schools. We are also operating thirty "One Teacher Schools" called "Ekala Vidayalaya" in villages in collaboration with "Friends of Tribal Society."

Health:

Our aim is to provide free healthcare services to poor tribal people of this locality and create awareness among them about health and hygiene. We provide mobile medical units for local community and organising health camps with a special focus on mother and child healthcare.

Skill Development:

The company has been providing training for the unemployed youth at an ITI. OCL is operating a training centre "Swayamprabha" in Lanjiberna where poor and destitute tribal ladies are provided free training on tailoring, embroidery, dress designing, etc. After completion of training, each of them is given a sewing machine at 50 per cent of its cost. The centre has so far imparted training to 80 ladies. Most of them are earning their livelihood by stitching garments.

Infrastructure Development

Some of the initiatives taken by us include:

  • Hari Chatravaas, a hostel for underprivileged and meritorious students
  • An eye treatment hospital
  • An ITI centre for training youth
  • Construction of a 900-metre long concrete road in Rajgangpur
  • Construction of a three storied building, kitchen, Namasankirtan Mandap, toilet, etc., for the inmates of Kalpataru Ashram, Lamloi, where poor orphan children are residing
  • Renovation and maintenance of a Theme Park at Sundargarh. The park depicts rich cultural heritage of local tribals and is one of the best of its type in Odisha
  • Construction of thirteen Community Centres in villages. Also supplied furniture, utensils, etc., to these centres where villagers conduct community meetings and social/cultural functions, and
  • Providing electricity to villages.

First and Foremost
OCL has been a market leader in Odisha for more than 60 years. Its drive for modernisation, right from its inception, has allowed the company to pioneer in several areas. OCL installed the first auto kiln control system based on fuzzy logic in India, the worlds largest cement and slag grinding Vertical Roller Mill during 1997, the second such cement Vertical Roller Mill during 2001, the third cement Vertical Roller Mill again with 60 per cent additional capacity and first in the world market in 2005. The target centric investments in R&D and application specific product development have both enabled OCL to enlarge and include in its product range various grades of ordinary Portland cement (OPC) like 43 and 53 grades; 53-S grade cement for use in the manufacture of railway sleepers; Portland slag cement (PSC); fly ash based Portland pozzolana cement (PPC), sulphate resisting Portland cement (SRPC); masonry cement, etc. For a short time OCL also ventured into manufacture of a wide range of cement allied products including spun pipes, etc., in early sixties of the last millennium and became a prime source of high strength reinforced spun pipes and pre-stressed concrete poles. It was the first manufacturer of pre-stressed concrete railway sleepers. Decades later, the company is still a leading a supplier of railway sleeper grade cement in India. OCL was one of the first to develop and produce slag-blended cement, utilising steel plant waste for high strength cement and IRST-40 cement for railway sleepers. Its other innovative range includes sulphate resistant Portland cement, oil well cement and masonry cement.

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Economy & Market

Impactful Branding

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Advertising or branding is never about driving sales. It’s about creating brand awareness and recall. It’s about conveying the core values of your brand to your consumers. In this context, why is branding important for cement companies? As far as the customers are concerned cement is simply cement. It is precisely for this reason that branding, marketing and advertising of cement becomes crucial. Since the customer is unable to differentiate between the shades of grey, the onus of creating this awareness is carried by the brands. That explains the heavy marketing budgets, celebrity-centric commercials, emotion-invoking taglines and campaigns enunciating the many benefits of their offerings.
Marketing strategies of cement companies have undergone gradual transformation owing to the change in consumer behaviour. While TV commercials are high on humour and emotions to establish a fast connect with the customer, social media campaigns are focussed more on capturing the consumer’s attention in an over-crowded virtual world. Branding for cement companies has become a holistic growth strategy with quantifiable results. This has made brands opt for a mix package of traditional and new-age tools, such as social media. However, the hero of every marketing communication is the message, which encapsulates the unique selling points of the product. That after all is crux of the matter here.
While cement companies are effectively using marketing tools to reach out to the consumers, they need to strengthen the four Cs of the branding process – Consumer, Cost, Communication and Convenience. Putting up the right message, at the right time and at the right place for the right kind of customer demographic is of utmost importance in the long run. It is precisely for this reason that regional players are likely to have an upper hand as they rely on local language and cultural references to drive home the point. But modern marketing and branding domain is exponentially growing and it would be an interesting exercise to tabulate and analyse its impact on branding for cement.

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Concrete

Indian cement industry is well known for its energy and natural resource efficiency

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Dr Hitesh Sukhwal, Deputy General Manager – Environment, Udaipur Cement Works Limited (UCWL) takes us through the multifaceted efforts that the company has undertaken to keep emissions in check with the use of alternative sources of energy and carbon capture technology.

Tell us about the policies of your organisation for the betterment of the environment.
Caring for people is one of the core values of our JK Lakshmi Cement Limited. We strongly believe that we all together can make a difference. In all our units, we have taken measures to reduce carbon footprint, emissions and minimise the use of natural resources. Climate change and sustainable development are major global concerns. As a responsible corporate, we are committed with and doing consistent effort small or big to preserve and enrich the environment in and around our area of operations.
As far as environmental policies are concerned, we are committed to comply with all applicable laws, standards and regulations of regulatory bodies pertaining to the environment. We are consistently making efforts to integrate the environmental concerns into the mainstream of the operations. We are giving thrust upon natural resource conservation like limestone, gypsum, water and energy. We are utilising different kinds of alternative fuels and raw materials. Awareness among the employees and local people on environmental concerns is an integral part of our company. We are adopting best environmental practices aligned with sustainable development goals.
Udaipur Cement Works Limited is a subsidiary of the JK Lakshmi Cement Limited. Since its inception, the company is committed towards boosting sustainability through adopting the latest art of technology designs, resource efficient equipment and various in-house innovations. We are giving thrust upon renewable and clean energy sources for our cement manufacturing. Solar Power and Waste Heat Recovery based power are our key ingredients for total power mix.

What impact does cement production have on the environment? Elaborate the major areas affected.
The major environmental concern areas during cement production are air emissions through point and nonpoint sources due to plant operation and emissions from mining operation, from material transport, carbon emissions through process, transit, noise pollution, vibration during mining, natural resource depletion, loss of biodiversity and change in landscape.
India is the second largest cement producer in the world. The Indian cement industry is well known for its energy and natural resource efficiency worldwide. The Indian cement industry is a frontrunner for implementing significant technology measures to ensure a greener future.
The cement industry is an energy intensive and significant contributor to climate change. Cement production contributes greenhouse gases directly and indirectly into the atmosphere through calcination and use of fossil fuels in an energy form. The industry believes in a circular economy by utilising alternative fuels for making cement. Cement companies are focusing on major areas of energy efficiency by adoption of technology measures, clinker substitution by alternative raw material for cement making, alternative fuels and green and clean energy resources. These all efforts are being done towards environment protection and sustainable future.
Nowadays, almost all cement units have a dry manufacturing process for cement production, only a few exceptions where wet manufacturing processes are in operation. In the dry manufacturing process, water is used only for the purpose of machinery cooling, which is recirculated in a closed loop, thus, no polluted water is generated during the dry manufacturing process.
We should also accept the fact that modern life is impossible without cement. However, through state-of-the-art technology and innovations, it is possible to mitigate all kinds of pollution without harm to the environment and human beings.

Tell us about the impact blended cement creates on the environment and emission rate.
Our country started cement production in 1914. However, it was introduced in the year 1904 at a small scale, earlier. Initially, the manufacturing of cement was only for Ordinary Portland Cement (OPC). In the 1980s, the production of blended cement was introduced by replacing fly ash and blast furnace slag. The production of blended cement increased in the growth period and crossed the 50 per cent in the year 2004.
The manufacturing of blended cement results in substantial savings in the thermal and electrical energy consumption as well as saving of natural resources. The overall consumption of raw materials, fossil fuel such as coal, efficient burning and state-of-the-art technology in cement plants have resulted in the gradual reduction of emission of carbon dioxide (CO2). Later, the production of blended cement was increased in manifolds.
If we think about the growth of blended cement in the past few decades, we can understand how much quantity of , (fly ash and slag) consumed and saved natural resources like limestone and fossil fuel, which were anyhow disposed of and harmed the environment. This is the reason it is called green cement. Reduction in the clinker to cement ratio has the second highest emission reduction potential i.e., 37 per cent. The low carbon roadmap for cement industries can be achieved from blended cement. Portland Pozzolana Cement (PPC), Portland Slag Cement (PSC) and Composite Cement are already approved by the National Agency BIS.
As far as kilogram CO2 per ton of cement emission concerns, Portland Slag Cement (PSC) has a larger potential, other than PPC, Composite Cement etc. for carbon emission reduction. BIS approved 60 per cent slag and 35 per cent clinker in composition of PSC. Thus, clinker per centage is quite less in PSC composition compared to other blended cement. The manufacturing of blended cement directly reduces thermal and process emissions, which contribute high in overall emissions from the cement industry, and this cannot be addressed through adoption of energy efficiency measures.
In the coming times, the cement industry must relook for other blended cement options to achieve a low carbon emissions road map. In near future, availability of fly ash and slag in terms of quality and quantity will be reduced due to various government schemes for low carbon initiatives viz. enhance renewable energy sources, waste to energy plants etc.
Further, it is required to increase awareness among consumers, like individual home builders or large infrastructure projects, to adopt greener alternatives viz. PPC and PSC for more sustainable
resource utilisation.

What are the decarbonising efforts taken by your organisation?
India is the world’s second largest cement producer. Rapid growth of big infrastructure, low-cost housing (Pradhan Mantri Awas Yojna), smart cities project and urbanisation will create cement demand in future. Being an energy intensive industry, we are also focusing upon alternative and renewable energy sources for long-term sustainable business growth for cement production.
Presently, our focus is to improve efficiency of zero carbon electricity generation technology such as waste heat recovery power through process optimisation and by adopting technological innovations in WHR power systems. We are also increasing our capacity for WHR based power and solar power in the near future. Right now, we are sourcing about 50 per cent of our power requirement from clean and renewable energy sources i.e., zero carbon electricity generation technology. Usage of alternative fuel during co-processing in the cement manufacturing process is a viable and sustainable option. In our unit, we are utilising alternative raw material and fuel for reducing carbon emissions. We are also looking forward to green logistics for our product transport in nearby areas.
By reducing clinker – cement ratio, increasing production of PPC and PSC cement, utilisation of alternative raw materials like synthetic gypsum/chemical gypsum, Jarosite generated from other process industries, we can reduce carbon emissions from cement manufacturing process. Further, we are looking forward to generating onsite fossil free electricity generation facilities by increasing the capacity of WHR based power and ground mounted solar energy plants.
We can say energy is the prime requirement of the cement industry and renewable energy is one of the major sources, which provides an opportunity to make a clean, safe and infinite source of power which is affordable for the cement industry.

What are the current programmes run by your organisation for re-building the environment and reducing pollution?
We are working in different ways for environmental aspects. As I said, we strongly believe that we all together can make a difference. We focus on every environmental aspect directly / indirectly related to our operation and surroundings.
If we talk about air pollution in operation, every section of the operational unit is well equipped with state-of-the-art technology-based air pollution control equipment (BagHouse and ESP) to mitigate the dust pollution beyond the compliance standard. We use high class standard PTFE glass fibre filter bags in our bag houses. UCWL has installed the DeNOx system (SNCR) for abatement of NOx pollution within norms. The company has installed a 6 MW capacity Waste Heat Recovery based power plant that utilises waste heat of kiln i.e., green and clean energy source. Also, installed a 14.6 MW capacity solar power system in the form of a renewable energy source.
All material transfer points are equipped with a dust extraction system. Material is stored under a covered shed to avoid secondary fugitive dust emission sources. Finished product is stored in silos. Water spraying system are mounted with material handling point. Road vacuum sweeping machine deployed for housekeeping of paved area.
In mining, have deployed wet drill machine for drilling bore holes. Controlled blasting is carried out with optimum charge using Air Decking Technique with wooden spacers and non-electric detonator (NONEL) for control of noise, fly rock, vibration, and dust emission. No secondary blasting is being done. The boulders are broken by hydraulic rock breaker. Moreover, instead of road transport, we installed Overland Belt Conveying system for crushed limestone transport from mine lease area to cement plant. Thus omit an insignificant amount of greenhouse gas emissions due to material transport, which is otherwise emitted from combustion of fossil fuel in the transport system. All point emission sources (stacks) are well equipped with online continuous emission monitoring system (OCEMS) for measuring parameters like PM, SO2 and NOx for 24×7. OCEMS data are interfaced with SPCB and CPCB servers.
The company has done considerable work upon water conservation and certified at 2.76 times water positive. We installed a digital water flow metre for each abstraction point and digital ground water level recorder for measuring ground water level 24×7. All digital metres and level recorders are monitored by an in-house designed IoT based dashboard. Through this live dashboard, we can assess the impact of rainwater harvesting (RWH) and ground water monitoring.
All points of domestic sewage are well connected with Sewage Treatment Plant (STP) and treated water is being utilised in industrial cooling purposes, green belt development and in dust suppression. Effluent Treatment Plant (ETP) installed for mine’s workshop. Treated water is reused in washing activity. The unit maintains Zero Liquid Discharge (ZLD).
Our unit has done extensive plantations of native and pollution tolerant species in industrial premises and mine lease areas. Moreover, we are not confined to our industrial boundary for plantation. We organised seedling distribution camps in our surrounding areas. We involve our stakeholders, too, for our plantation drive. UCWL has also extended its services under Corporate Social Responsibility for betterment of the environment in its surrounding. We conduct awareness programs for employees and stakeholders. We have banned Single Use Plastic (SUP) in our premises. In our industrial township, we have implemented a solid waste management system for our all households, guest house and bachelor hostel. A complete process of segregated waste (dry and wet) door to door collection systems is well established.

Tell us about the efforts taken by your organisation to better the environment in and around the manufacturing unit.
UCWL has invested capital in various environmental management and protection projects like installed DeNOx (SNCR) system, strengthening green belt development in and out of industrial premises, installed high class pollution control equipment, ground-mounted solar power plant etc.
The company has taken up various energy conservation projects like, installed VFD to reduce power consumption, improve efficiency of WHR power generation by installing additional economiser tubes and AI-based process optimisation systems. Further, we are going to increase WHR power generation capacity under our upcoming expansion project. UCWL promotes rainwater harvesting for augmentation of the ground water resource. Various scientifically based WHR structures are installed in plant premises and mine lease areas. About 80 per cent of present water requirement is being fulfilled by harvested rainwater sourced from Mine’s Pit. We are also looking forward towards green transport (CNG/LNG based), which will drastically reduce carbon footprint.
We are proud to say that JK Lakshmi Cement Limited has a strong leadership and vision for developing an eco-conscious and sustainable role model of our cement business. The company was a pioneer among cement industries of India, which had installed the DeNOx (SNCR) system in its cement plant.

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Concrete

NTPC selects Carbon Clean and Green Power for carbon capture facility

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Carbon Clean and Green Power International Pvt. Ltd has been chosen by NTPC Energy Technology Research Alliance (NETRA) to establish the carbon capture facility at NTPC Vindhyachal. This facility, which will use a modified tertiary amine to absorb CO2 from the power plant’s flue gas, is intended to capture 20 tonnes of CO2) per day. A catalytic hydrogenation method will eventually be used to mix the CO2 with hydrogen to create 10 tonnes of methanol each day. For NTPC, capturing CO2 from coal-fired power plant flue gas and turning it into methanol is a key area that has the potential to open up new business prospects and revenue streams.

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