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Futuristic Trends in Indian Cement Industry

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With cement production at 256 MT against a capacity at 360 MT, the cement industry was saddled with an idle cement capacity of over 100 MT, valuing a colossal dead investment of over Rs 70,000 crore at today?s cost, writes NA Vishwanathan.
The Indian cement industry has registered major achievements both at national and international levels, in the fields of technology up-gradation, energy efficiency, quality and emission controls, CSR obligations to the society as also its contribution in the infrastructural development and the growth of the economy.

The world-class industry, which is the second largest cement producer in the world, has completed 100 years of its service to the nation. The last three years had been very bad for the cement industry. After expanding at an average rate of 8-10 per cent in the last three decades, the cement growth in 2013-14 had dwindled to 3 per cent, the lowest in the last 20 years, due to slowdown in the economy and deceleration in the construction activities. With cement production at 256 MT against a capacity at 360 MT, the cement industry was saddled with an idle cement capacity of over 100 MT, valuing a colossal dead investment of over Rs 70,000 crore at today?s cost. However, our government?s continuous thrust on and commitment for affordable housing, construction of cement concrete roads, creation of 100 smart cities, world-class infrastructure development, with emphasis on development of freight corridors and port connectivity should give a definite fillip to the creation of more demand for cement in the country.

The results of the government?s initiatives have already started reflecting in the growth of the cement industry to 8.5 per cent in the first eight months of the current fiscal. If this momentum gains further, the cement demand will again pick up a double digit growth. Even with 10 per cent growth, this will accelerate the cement production by over two-and-a-half times, to 665 MT in the next ten years, i.e. by 2024, which would require a cement capacity of around 750 million tonne at 90 per cent utilisation. This will call for an additional investment of about Rs 2.5-3 lakh crore for creating another 390 million tonne of cement capacity.

To meet this level of cement demand, the likely requirement of major inputs in future will be – 156 million tonne coal, including for captive power; 998 million tonne limestone; 13,300 MW of power and 35 million tonne gypsum. The cement plants will further modernise their existing state-of-the-art plants with kiln capacity of 12,000-14,000 tpd or even more.

Issues and challenges
Over the last couple of years, the cement industry?s need has not been duly addressed by the government insofar as meeting its coal requirement is concerned due to diversion of coal to the power sector. From a fulfillment level of 69 per cent of its coal requirement in 2003, the satisfaction level for the cement industry has now touched its nadir at 31 per cent. As we all know, cement industry is as important as the power sector for the growth of the economy. Therefore, disregarding the cement sector for coal supply may adversely impact the massive infrastructure development programme of the government. The government may, therefore, consider treating the cement industry at par with the power sector so far as coal supply to the cement industry is concerned – both for burning coal in the kilns, and for generating captive power.

To supplement its energy needs, the cement industry has been making concerted efforts over the last few years to enhance the usage of alternate fuels like solid municipal wastes, cut tyres, paint sludge, biomass and waste heat recovery (WHR) through co-generation after making huge investments in process technology, but the success rate is not encouraging due to certain technical, regulatory and policy-related constraints being encountered by the industry.

To help the industry in its endeavours, the government should encourage and incentivise greater usage of AFR in the cement manufacturing by making inter-state movement of municipal and other wastes hassle-free and also making their use commercially viable. The imperative is to put in place a set of regulatory measures which make it mandatory for the local bodies to make available cement grade RDF on a consistent and sustained basis by imposing reasonable cost on the generators and creating infrastructure for storage and processing to convert Municipal Solid Wastes (MSW) into RDF.

Increased use of fly ash
Another important development which is going to happen in the cement industry is the enhancement in the Thermal Substitution Rate (TSR) by having increased usage of fly ash from the present 27 per cent in PPC, thereby prolonging the life of our depleting limestone reserves. The present TSR is less than one per cent in India as against world average of over 50 per cent. This will also considerably bring down further the particulate emissions level of the industry apart from cutting down drastically the land required by the power houses for dumping the fly ash generated by them in open land area. It is estimated that the current coal-based thermal power capacity at 1,53,571 MW will require about 61,400 acre of land at 0.4 acre land requirement for per MW capacity. This land requirement would go up further exponentially due to the projected enhancement in the capacity of coal-based thermal power houses in the country.

In the context of our PM?s clarion call for Swachh Bharat and to make the mission a success, it has become all the more imperative to enhance effective usage of industrial, agricultural and solid municipal wastes in addition to fly ash in the manufacturing of cement and also ensure that these waste materials are provided ?Free of Cost? to its users, on the world-over accepted principle of ?Polluter to Pay?.

Trends
The increased cement demand in the country will also see a paradigm shift in the ?movement-pattern? of cement from the conventional bagged to bulk movement of cement in loose form in special purpose wagons, although bagged cement will continue to dominate the market. Apart from this, movement of cement, clinker, etc. will start taking place through multimodal means, i.e., a combination of Rail/Road/IWT/Coastal modes, as the present government is very keen to develop these transport modes also. Again, this effort will bear fruit only if it is financially viable for the users and simultaneously ensures reasonable returns to the prospective investors as well.

Duty-free import
The government under its ambitious ?Make in India? programme has made a number of attractive schemes/announcements for private investments, both from domestic and international entrepreneurs. However, Indian cement industry has to face the challenges of an uneven playing field due to the government?s policy of allowing duty-free import of cement, despite the fact that India is having over 100 million tonne of surplus cement capacity. The time, therefore, is now ripe to encourage and incentivise the cement and clinker exports from India. Further, import duties on inputs, namely, limestone, gypsum, pet coke, packing bags, etc. required in the manufacturing of cement need to be abolished to realise and truly achieve the Prime Minister?s Vision of ?Make in India?, for in the case of cement, the manufacture is already taking place in India in a big way, and, the removal of import duty on inputs, would give further fillip to the Indian cement industry, in terms of its global competitiveness and viability.

Concrete roads
By acknowledging the various inherent advantages of cement concrete roads to the economy, the Minister of Road Transport and Highways, Government of India, has recently taken a policy decision of adopting cement concrete pavements in national highway construction. The decision of the Central Government to go in for cement concrete highways only is a welcome step and will certainly boost the demand for cement. Now the state governments also need to emulate this step by insisting on cement concrete roads for state highways and other roads as well.

On the issue of reduced price for cement concrete roads, I would like to mention that cement industry has often tried to absorb the financial impact of increases that have taken place from time to time in input costs and freight rates, by improving efficiency and productivity through adoption of newer technologies, and, also through innovative initiatives, after making huge investments. In this context, there is a cast-iron case that the taxation burden on the cement industry, which is very high from any angle, at 60 per cent of the ex-factory price, which is more than even on the luxury items, be slashed by at least 25 per cent in the first instance and thereafter, gradually put at par with average tax on cement in the Asia Pacific Region, which is just 11.4 per cent, with the highest levy of 20 per cent being in Sri Lanka.

Limestone mining
As per the new provisions of the Mines and Minerals (Development and Regulation) Amendment Ordinance, 2015, limestone mines, will now be available, only through auction process, and there will be ?No Captive Mines?, as has been the case so far. This, in effect, would lead to higher input cost for limestone, the basic raw material required at one-and-a-half times the cement production, and could also deter further investment in the cement industry, as an element of uncertainty will always be looming, once the lease period of 50 years is over. In the light of the peculiarities of the cement industry, therefore, the provisions need to be revisited from the point of view of the cement industry.

The author is Secretary-General, Cement Manufacturers? Association.

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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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