Economy & Market

On the Path of Transformation

Published

7 years ago

January 12, 2018

admin

The logistics sector is fundamental to the development of a country. Logistics is a sector where the trend is determined by the country’s overall economic performance.

Logistics including transportation, inventory management, warehousing, materials handling and packaging, and integration of information, is related to management of flow of goods between the point of origin and the point of consumption. With the growing Indian economy and changing business perspectives, the scope of the logistics industry has broadened from rudimentary transportation of goods to include end-to-end supply chain solutions including warehousing and express delivery.

The Indian logistics industry was estimated to be approximately $160 billion in FY17. The key segments include road, rail, coastal, warehousing, cold chain and container freight stations and inland container depots (CFS/ICD). The domestic logistics market is expected to grow at a CAGR of approximately 10 per cent. Indian logistics market is expected to be driven by the growth in the manufacturing, retail, FMCG and e-commerce sectors.

Development of logistics-related infrastructure such as dedicated freight corridors, logistics parks, free trade warehousing zones, and container freight stations are expected to improve efficiency. The industry is dominated by transportation, which accounts for over 85 per cent of total value, and its share is expected to remain high over the next few years. The sector provides employment to more than 22 million people. Improving logistics sector has significant bearing on exports and media sources estimate that a 10 per cent decrease in indirect logistics cost could potentially increase 5 to 8 per cent of exports.

Of the various modes of transportation, roads and railway are the most preferred mode accounting for approximately 60 per cent and 30 per cent of the total cargo volumes handled, respectively. The share of other transportation modes comprising Inland shipping, pipelines and airways remains minimal accounting for the balance 10 per cent. The higher transportation costs in India can be associated with poor road infrastructure leading to lowering of the maximum distance that can be covered by any commercial vehicle, old vehicles fleet and higher cess and toll on the highways while the higher warehousing costs are on account of shortage of warehousing capacity in India, non-standardisation of warehouses in terms of IT application, etc.

As per the Ministry of Road Transport and Highways, India’s logistics cost as a per cent of GDP stood at 13-14 per cent compared to 10- 11 per cent for BRIC countries and 8-9 per cent for developed countries. The US spends 9.5 per cent and Germany 8 per cent of their GDP on logistics costs. A significant proportion of the higher cost can be attributed to the absence of an efficient intermodal and multimodal transport systems. Going forward, the logistics cost as a per cent of GDP for India is expected to decline driven by initiatives such as implementation of GST, investments towards road infrastructure, development of inland waterways and coastal shipping, thrust towards dedicated freight corridors, etc.

Currently the Indian logistics industry is highly fragmented and unorganised. Owing to the presence of numerous unorganised players in the industry, it remains fragmented with the organised players accounting for approximately 10 per cent of the total market share. With the consumer base of the sector encompassing a wide range of industries including retail, automobile, telecom, heavy industries, etc., logistics industry has been increasingly attracting investments in the last decade.

The sector is facing challenges such as under-developed material handling infrastructure, fragmented warehousing, multiple regulatory/policymaking bodies, lack of seamless movement of goods across modes, minimal integrated IT infrastructure. In order to develop this sector focus on new technology, improved investment, skilling, removing bottlenecks, improving intermodal transportation, automation, single-window system for giving clearances, and simplifying processes would be required.

Global scenario
Warehousing primarily refers to the storage of goods to be transported, whether inbound or outbound. The warehousing industry includes establishments operating warehousing and storage facilities for general merchandise, refrigerated goods and other warehouse products. Warehouses are one of the major segments of the rapidly growing logistics industry. Currently the segment has evolved from providing not only custody for goods but also offering value added services such as sorting, packing, blending and processing. With evolution of an organised retail sector modern warehouses for the storage of perishable goods have become indispensable In 2017, the global warehousing and storage market was estimated to be around $475 billion. The global warehousing and storage accounted for approximately 8 per cent of the overall logistics market in 2017. The warehousing and storage market was the fifth largest market in the global logistics market in 2017. North America is the largest geographic region accounting for nearly 28 per cent of the global market.

Globally, warehousing has moved ahead from single storey to multi-story warehouses in densely populated cities and expensive land spaces. A multi-story warehouse consists of more than one floor and is designed to increase the available floor space. It results in better land utilisation rate and enhances operational efficiency. Multi-story warehouses have been successful in densely populated cities predominantly in Asian countries such as China, Japan, Hong Kong and Singapore, due to high land and construction costs, small site areas and limited industrial land availability.

Domestic scenario
The warehousing market in India is highly fragmented with most warehouses having an area of less than 10,000 sq.ft. Approximately 90 per cent of the warehousing space in the country is controlled by unorganised players with smaller sized warehouses which have limited mechanisation. Fragmented warehousing footprint results in higher average inventory holding, in addition to resulting in higher storage and handling losses, driven by lower level of mechanisation.

Warehouses have become one of the major segments of the rapidly growing Indian logistics industry. Today they do not only provide custody for goods but also offer value added services such as sorting, packing, blending and processing. With evolution of an organised retail sector modern warehouses for the storage of perishable goods have become essential. The government’s initiatives to promote the growth of warehouses in the country through measures such as enactment of the Warehousing Act, 2007, investments in the establishment of logistic parks and Free trade warehouse zones (FTWZs) together with the introduction of Goods & Service Tax (GST) regime augurs well for the industry’s growth. Sensing the tremendous growth potential of the warehouse sector, the private players (including both domestic and international) have ventured with a view to bridge the gap between cost and efficiency of operations.

Nearly 60 per cent of the modern warehousing capacity in India is concentrated in the top six cities namely Ahmedabad, Bangalore, Chennai, Mumbai, NCR and Pune, with Hyderabad and Kolkata being the other major markets. This is driven by concentration of industrial activity and presence of sizeable urban population around these clusters. Going forward, due to factors like quality of infrastructure and availability of labour, these advantages are likely to remain with these cities. In all the segments of warehousing industry barring the agricultural segment, the majority of the capacity is controlled by the private sector. In the agricultural segment, approximately three-fourth is controlled by different government entities. The primary objective of a majority of these warehouses is to only store food grains and ensure food security.

Types of warehouses
Traditionally, warehouses were broadly classified into public-private, bonded, government and co-operative warehouses. Lately, cold chains, container freight stations (CFS) and inland container depots (ICD) are gaining importance.

Private warehouses: These warehouses are owned by private entities or individuals and are used exclusively for the goods owned, imported by or on behalf of the licensee. The warehouses are usually constructed at strategic locations to cater various manufacturing, business and service units. They are flexible enough to be customised in terms of storage and placement, according to the nature of the products.

Public warehouses: These Warehouses are licensed by the government to private entities, individual or cooperative societies to store goods of the general public. They are rented out against a fee and usually set up at transportation points of railways, highways and waterways, providing the facilities of receipt, dispatch, loading and unloading of goods. The government also regulates the functions and operations of these warehouses used mostly by manufacturers, wholesalers, exporters, importers, government agencies, etc.

Bonded warehouses: These warehouses are licenced by the Government to accept imported goods for storage until the payment of customs duty. They are located near the ports. They are either operated by the Government or work under the control of customs authorities. The warehouse is required to give an undertaking or "Bond" that it will not allow the goods to be removed without the consent of the custom authorities. The goods are held in bond and cannot be withdrawn without paying the customs duty. Such warehouses are very helpful to importers and exporters. If an importer is unable to pay customs duty immediately after the arrival of goods he can store the goods in a bonded warehouse. He can withdraw the goods in instalments by paying the customs duty proportionately. Goods lying in a bonded warehouse can be packaged, graded and branded for the purpose of sale.

Container freight stations (CFS)/inland container depots (ICDs): CFSs/ICDs are custom-bonded facility with public authority status for the handling and storage for containers. These depots equipped with warehousing space, adequate handling equipment and IT infrastructure.

Cold storage: A cold storage is a temperature controlled storage space catering mainly to agriculture and food industries. Cold stores are used for the storage and distribution of perishable goods such as fruits and vegetables, dairy products; frozen foods such as meat and ice cream, and temperature-sensitive pharmaceutical products. Given that India is primarily an agriculture country, cold storage has huge potential in India.

Government storage: The primary objectives of any government storage are 1) to ensure food security, and 2) enable trade movement both within and out of the country. Consequently, the Central Warehousing Corporation operates 431 warehouses (storage capacity of 100.28 lakh MT) including 44 custom bonded warehouses, 29 CFSs/ICDs, 3 air cargo complexes (ACCs) (5,961 MT) and 3 cold storage warehouses (2,419 MT). Further, various State Warehousing Corporations (SWC) manage a total capacity of 283.34 MT across 1,831 warehouses. The Food Corporation of India (FCI) works for holding agricultural produce to meet the requirements of various government schemes. FCI has its own storage capacity but also hires capacities from CWC, SWCs and the private sector.

Cold storage: There are over 7,700 cold storage warehouses with a capacity of over 36 million MT in India with a significant portion of the facilities being privately owned. India’s cold storage capacity is unorganised and dominated by traditional cold storage facilities. The distribution of cold storages is highly uneven with majority of the cold storages located in Uttar Pradesh, Gujarat, Punjab and Maharashtra. Further nearly two thirds of the total cold storage capacity is used for horticulture crops including potato. Despite the storage capacity, the Central Institute of Post-Harvest Engineering and Technology estimates that close to 15 per cent-16 per cent of fruits and vegetables perish as cold storages are located near consumption centres rather than farms. The cold storage segment is driven by growth in trading of perishable products both agricultural and others (e.g. pharmaceutical).

Regulations
WDRA rules: Warehouses (especially agricultural) in India are regulated and governed under The Warehousing (Regulatory and Development) Act, 2007. The main objective of this Act is to develop and regulate warehouses, negotiability of warehouse receipts, establishment of Warehousing Development and Regulatory Authority (WRDA) and for related matters.

Registration: The act makes it compulsory for a person to carry on warehousing business as a business and issue a negotiable receipt to obtain a certificate of registration.

Warehousing receipt: The warehouse would issue receipts only after ascertaining quantity, quality / grade and other particulars as may be mentioned in the receipts.

Authority and Powers under the Act: Some of the authorities and powers conferred under the Act are granting registration and cancellation/renewal of registration, specifying qualification of warehouseman, and regulating rates, advantages, terms and conditions that may be offered by warehouseman in respect of warehousing business.

Offenses under the Act: Failing to ascertain quality and quantity, failing to surrender negotiable receipt by depositor or endorsee and payment of all his lawful charges and cancellation of encumbrances endorsed on the receipt to deliver the goods represented by the receipt are some of the offences under the act.

Penalties: The offences committed under this Act shall be punishable with imprisonment of a term of up to three years or with fine of Rs 1,00,000 or both.

The industry also remains governed by various acts such as: Multimodal Transportation of Goods Act, 1993, Foreign Trade (Development and Regulation) Act, 1992, Customs Act, 1962, Carriage of goods law etc. regulating the movement of goods and allied services. Various policy changes have impacted the warehousing sector in India. These include the introduction of the Goods and Service Tax (GST), National Policy on Handling, Storage and Transportation, and increasing Public-Private Partnerships (PPP). Following are a few such policy measures:

GST: GST has consolidated the tax regime across states which will result in cost and time efficiencies across the supply chain. GST will also hasten the consolidation of warehouses thus accentuating the formalisation of the largely unorganised warehousing sector. For most logistics services like e-commerce logistics, warehousing and air freight (export), the tax rate is 18 per cent, which is an increase from the earlier rate of 15 per cent which includes service tax and cess. Services like ocean freight and road transportation are in the 5 per cent slab. Under GST, the tax on warehouse, storage and other labour services has increased from 15 per cent to 18 per cent.

Logistics Parks Policy: Launch of multi-modal logistics parks and the grant of "industry" status to the logistics sector.

Domestic manufacturing emphasis: The focus on "Make in India" is expected to increase domestic manufacturing and increase the requirement for associated activities such as warehousing.
Agri-warehousing activity covered under Priority Sector Lending by RBI Subsidy schemes such as 1) Grameen Bhandaran Yojana – a capital investment subsidy scheme offered by the NABARD, which ranges from 15 per cent to 33 per cent of project cost, depending on the location and operator, 2) National Agricultural Renewal Fund. Govt. of India – encourage private investment in the creation of agriculture infrastructure
Tax incentives such as 1) Tax relief under 80(I)(B): tax holiday on warehousing income, 2) Investment-linked deduction under Section 35AD: 100 per cent upfront depreciation for tax purposes
The government permits 100 per cent FDI under the automatic route for all logistics services except courier and air transportation services. In case of courier services, 100 per cent FDI is permitted subject to the approval of the Foreign Investment Promotion Board (FIPB) while FDI up to 74 per cent is permitted under the automatic route for air transport services including air cargo services. Further according to media reports, the government is working on a policy to create new logistics hubs by preparing an integrated logistics plan. The new integrated logistics plan would be prepared by the logistics division in the department of commerce in consultation with various stakeholders.

Trends
Warehouse consolidation due to GST: With the advent of GST and the consequent redrawing of supply chains, there will be significant consolidation of warehouses by companies in the consumption space. A bigger warehouse in an appropriate location would be able to better serve a larger area. This will lead to development of large modern technology based warehousing operations and rapid modernisation of unorganised godowns. Smaller local developers and property owners are expected to exit the space by selling out to the large institutional developers in existing clusters.

Reduction in inventory holding costs: Further the combining of smaller warehouses into a single larger one is also expected to reduce the inventory level requirements which are expected to positively impact the companies as inventory carrying cost is a significant share of costs.

Smart warehouses: With the increase in the warehousing and storage market there has been a concurrent increase in technology usage especially in the grade A/B warehouses. These warehouses use internet of things (IOT) to track a product in the warehouse and also helps in increasing efficiency and speed across supply chains. Variety of devices such as wearables, sensors and radio frequency identification tags are used to locate the products in the warehouse. This reduces the time to deliver the product to the customer and increases accuracy.

Rise of Direct Port Delivery (DPD): DPD involves the delivery of a shipment directly from a port to the consignee instead of initially holding it at a CFS (Container Freight Station). The DPD initiative under "Ease of Doing Business" has witnessed steady growth in terms of proportion of total containers handled. At JNPT, the share of Direct Port Delivery (DPD) has increased from 5.4 per cent in April 2016 to 39.2 per cent March 2018. This is likely to have an impact on the CFS. However, shortage of space at warehouses poses a challenge to service DPD clients efficiently.

High tonnage trucks sales are expected to rise: Supply chain realignment and check post discontinuation has led to a reduction in the travel time as well as fuel costs. This has led to a demand for larger more efficient trucks as warehouses are consolidating and larger loads are required at lower number of locations. Despite the higher upfront costs, such trucks are expected to reduce overall shipment costs by carrying a larger load per trip.

Negotiable warehouse receipts
Negotiable Warehouse Receipts (NWR) issued by registered warehouses enables farmers to seek loans from banks against NWRs and enables them to extend the sales period of modestly perishable products beyond the harvesting season. Consequently, NWRs can avoid distress sale of agricultural produce by the farmers in the peak marketing season. However, NWRs have not witnessed substantial growth due to 1) low levels of registered warehouses with WDRA, 2) minimal concession from banks for loans against NWRs, 3) presence of other collateral based lending entities, which do not require registration under WDRA.

Demand drivers for logistics
Emergence of MNCs and organised retail: One of the key demand drivers for the logistics industry has been emergence of MNCs and the share of organised retail has been increasing over the years. Most of the global MNCs prefer low cost manufacturing locations connecting the consuming market at the lowest possible cost and through highly efficient supply chain.

Emergence of 3PL and 4PL: Third party logistics or 3PL is a concept where a single logistics service provider manages the entire logistics function for a company. While the Indian 3PL market is still very much in its infancy compared with other countries, it is experiencing healthy growth and attracting new companies eager to capitalise on the plentiful opportunities it offers, In fourth party logistics 4PL, logistics is controlled by a service provider that does not own the assets to carry out logistics activities but outsources to subcontractors, the 3PL. 4PLs facilitate single-point reference for all logistics needs, possess knowledge of logistics to obtain most efficient and effective solutions, have manpower resources of higher quality to supervise vendors and ensure continuous process improvements and, above, all an IT base to network customer systems.

Robust trade growth: Post liberalisation there has been significant increase in economic growth which has led to an improvement in the domestic and international trade volumes. Consequently the requirement for transportation, handling and warehousing is growing at a robust pace and is driving the demand for integrated logistics solutions.

Globalisation of manufacturing systems: IT plays a key role in transportation and logistics industry. Today technology is present in all the areas for a logistics service provider. Technology helps organised logistics companies score over the unorganised ones, and will be key to their operations going ahead given the competition

Increasing investment in logistics parks: The concept of Logistics Park has gained attention from both public as well as private players. A large number of special economic zones have also necessitated the development of logistics centre for the domestic market as well as for trade purposes

Growth in the organised retail and the food processing sector is driving growth in the cold chain storage segment in India.

Challenges
Lower Standardisation: India’s logistics industry has been adversely affected by the lower standardisation of cargo and containerisation of logistics traffic, hampering the overall speed and thus increasing cost of storage and movement.
Need for large capital and issues related to land acquisition have also tempered the growth of the sector. However, with expected increase in investment by international players, the gap in funding requirement is expected to be addressed in the near future.
The industry revenue has grown at a modest CAGR of 2.5 per cent over the FY12 – FY17 period. Concurrently, the annual revenue growth rate has varied significantly over the same period. The companies generate the largest share of their revenues from rental i.e. storage charges; other sources of earnings include income from value added services such as such as sorting, packing, blending and processing. On the other hand, the key heads of expenses include employee costs, depreciation, SG&A costs, power & fuel costs and interest costs. Over the FY12-FY17 period, EBITDA margin has moved down as well as up ranging from a low of 7.2 per cent in FY14 to a high of 11 per cent in FY16 and declining to 10.1 per cent, while PAT margin has generally remained at around 2.5 per cent-4 per cent.

Although the debt levels of the companies have trended upwards, the debt to equity has generally remained stable, on the other hand, the interest coverage having peaked in FY15, has trended marginally downwards in the next two years. The decline in credit quality in the transportation and storage sector is on account of delays in debt servicing, liquidity constraints, decline in profitability and deterioration in the capital structure.

Outlook
CARE Ratings estimates that the warehousing industry will grow at a rate of 13-15 per cent in the medium term driven by the growth in manufacturing, retail, FMCG and ecommerce sector. Growth in overall production and consumption, organised retail, logistics outsourcing, and regulatory interventions such as WRDA Act and GST, private investments in logistics and other infrastructure developments such as Dedicated Freight Corridor (DFC) have also improved prospects of the organised professional warehousing segment. Further the implementation of GST is eliminating inefficiencies arising out of the erstwhile complex tax structure as well as interstate taxes.

Additionally, the government’s decision to allow FDI in retailing with emphasis on backend infrastructure such as modern warehousing space is also expected to provide further impetus to the sector.

Industrial warehousing is expected to grow due to various factors including the anticipated increase in global demand, growth in organised retail and increasing manufacturing activities, expansion of e-commerce options and growth in international trade. This segment is expected to witness significant activity as the presence of the unorganised segment which is dominant in the segment is also expected to significantly reduce and the companies would also be rationalising and consolidating their space requirements based on time to serve the market and not taxation.

Demand for agriculture warehousing is expected to grow moderately on account of high base and expected normal monsoons.

Integrated models, diversification across end-user industries are expected to drive growth of cold chain segment. Significant demand is also seen coming from storage of fruits and vegetables, and pharmaceutical segments.

The container freight station (CFS)/ inland container depot (ICD) industry although on a growth curve is expected to be under pressure due to the growth of Direct Port Delivery (DPD) and profitability is expected to be hampered with the anticipated loss of volumes and consequential lower utilisation.

However, the overall growth potential is limited by several key challenges like limitations in infrastructure connectivity, need for large capital and issues related to land acquisition which would need to be addressed for ensuring sustainable growth.

Source: CARE Ratings’ Industry Research on Overview of the India Warehousing Industry

India’s first multi-modal terminal on inland waterways! Prime Minister Narendra Modi inaugurated India’s first multi-modal terminal on the Ganga river in his parliamentary constituency and received the country’s first container cargo transported on inland waterways from Kolkata.

This is the first of the four multi-modal terminals being constructed on the National Waterway-1 (River Ganga) as part of the World Bank-aided "Jal Marg Vikas Project" of the Inland Waterways Authority of India. The total estimated cost of the project is Rs 5,369.18 crore, which will be equally shared between the Government of India and the World Bank. Its objective is to promote inland waterways as a cheap and an environment-friendly means of transportation, especially for cargo movement. The Inland Waterways Authority of India (IWAI) is the project implementing agency. The project entails construction of three multi-modal terminals (Varanasi, Sahibganj and Haldia), two inter-modal terminals, five roll-on-roll-off (Ro-Ro) terminal pairs, new navigation lock at Farakka, West Bengal, assured depth dredging, integrated vessel repair and maintenance facility, differential global positioning system (DGPS), river information system (RIS) and river training.

Disclaimer:
This report is prepared by CARE Ratings Ltd. CARE Ratings has taken utmost care to ensure accuracy and objectivity while developing this report based on information available in public domain. However, neither the accuracy nor completeness of information contained in this report is guaranteed. CARE Ratings is not responsible for any errors or omissions in analysis/inferences/views or for results obtained from the use of information contained in this report and especially states that CARE Ratings has no financial liability whatsoever to the user of this report.

Concrete

Sustainability is a core priority for us

Published

4 weeks ago

August 25, 2024

Roshna

Arun Shukla, President and Director, JK Lakshmi Cement, reveals how their digital transformation initiatives have helped them set new benchmarks.

How has the implementation of IT initiatives transformed your operations and processes in the cement industry?
At JK Lakshmi Cement, we have embarked on a comprehensive digital transformation journey, leveraging cutting-edge technologies to revolutionise our operations and processes. This strategic approach has yielded significant results across several key areas.
We have implemented Dataiku, a leading data science and machine learning platform. This has resulted in a remarkable 60-70 per cent reduction in operational task execution times. Additionally, report generation has skyrocketed by over 300 per cent. This empowers our teams with real-time visibility into crucial metrics encompassing sales, logistics, manufacturing and procurement, ultimately transforming decision-making across the organisation.
By harnessing data from diverse sources, we can now provide customers with near-flawless delivery time predictions at the point of invoicing. This translates to a demonstrably higher level of customer satisfaction and reinforces their trust in our data-driven capabilities. We have made substantial investments in both Internet of Things (IoT) and automation technologies to optimise our operations. IoT is strategically leveraged for tasks like fleet management, supply chain optimisation, and water conservation. Furthermore, a machine learning platform automates essential logistics and supply chain processes, leading to significant cost savings and enhanced operational efficiency.
We have meticulously built robust data analytics capabilities. This includes the utilisation of descriptive analytics, real-time dashboards, and predictive modelling. This empowers our leadership team to make informed, data-driven decisions that positively impact our financial performance.
Environmental sustainability is paramount to JK Lakshmi Cement. We are a proud member of the RE100 initiative, pledging to achieve 100 per cent reliance on renewable energy by 2040. We’ve also deployed green LNG trucks for transportation, further minimising our environmental footprint.
By strategically investing in digital technologies and data-driven initiatives, JK Lakshmi Cement has not only transformed its operations and elevated customer experience, but we have also solidified our position as a frontrunner in the cement industry’s digital transformation.

Can you discuss how your organisation is adopting Industry 4.0 technologies and the benefits you are experiencing?
At JK Lakshmi Cement, we have been proactively embracing Industry 4.0 technologies to drive operational excellence and enhance customer experience. Some of the key initiatives we have undertaken include:
Digitalisation and automation: We have implemented advanced process control systems, smart sensors, and data analytics across our manufacturing facilities to optimise production, improve quality, and reduce energy consumption. For example, JK Lakshmi Cement has been awarded the best EGS performance in community engagement and empowerment at various platforms and has committed to multiple memberships such as SBTi, RE100 and EP 100, which meets its sustainability goals and reduces its carbon footprint.
Supply chain optimisation: We have leveraged technologies like IoT, blockchain, and predictive analytics to enhance our logistics and distribution network. This has allowed us to rationalise our procurement, material handling and transportation, leading to significant cost optimisation.
Customer-centric innovation: To better serve our customers, we have developed a suite of digital tools and services. This includes a mobile app for order placement, delivery tracking, and technical support, as well as an e-commerce platform for seamless online transactions. These digital interventions have greatly improved customer convenience and satisfaction.
Sustainability and efficiency: Sustainability is a core priority for us, and we have adopted Industry 4.0 technologies to drive energy efficiency and reduce our environmental footprint. For instance, we have deployed green LNG trucks for transportation, making us the first cement company in India to do so.

What specific automation technologies have you implemented, and how have they improved efficiency and productivity in your cement plants?
We are at the forefront of leveraging Industry 4.0 solutions to achieve operational excellence. Here are some key highlights:
IoT-powered fleet management and supply chain optimisation: We have deployed a comprehensive IoT ecosystem across our transportation network. This provides real-time visibility into vehicle location, driver behaviour and fuel efficiency. Coupled with our AI-powered logistics platform from FarEye, this has resulted in a 3-4 per cent reduction in logistics costs and a double digit improvement in on-time delivery rates.
Predictive maintenance with AI/ML: We’ve harnessed the power of AI and ML to create predictive maintenance models for our plant equipment. By analysing sensor data and historical maintenance records, these models anticipate potential failures before they occur. This proactive approach has led to a decrease in unplanned downtime and a significant improvement in overall equipment effectiveness.
Automated manufacturing processes: We have embraced automation across critical production stages, including material handling, kiln operations, and packaging. For instance, our state-of-the-art German technology for Autoclaved Aerated Concrete (AAC) blocks boasts innovative features like ‘Green Separation’ and ‘Horizontal Autoclaving,’ ensuring unmatched product consistency and quality.
Data-driven decision making: Underpinning these automation initiatives is a robust data analytics and business intelligence (BI) platform. We have developed advanced data models and real-time dashboards
that provide comprehensive insights into key performance indicators (KPIs) across sales, logistics, manufacturing and finance. This empowers us to make data-driven decisions that optimise operations and drive continuous improvement.

How are predictive analytics and maintenance technologies being utilised in your operations to minimise downtime and optimise maintenance schedules?
We are pioneering a data-driven approach to achieve industry-leading operational excellence. Our powerful synergy between advanced analytics and AI-powered solutions is transforming our business.
We have gone beyond basic forecasting by building robust AI and machine learning models. These models leverage a comprehensive data landscape, including historical production data, real-time sensor
readings from our Industrial Internet of Things (IIoT) network, and even external market trends. This holistic approach empowers us to generate highly accurate predictions that guide critical decisions across the entire value chain.
For instance, our predictive maintenance program, powered by IIoT sensors and cutting-edge analytics, continuously monitors equipment health. By identifying potential issues early, these models enable proactive maintenance interventions, drastically reducing unplanned downtime and maximising equipment effectiveness.
Similarly, our sales forecasting models, fueled by machine learning, meticulously analyse market dynamics, customer behaviour patterns
and a multitude of other factors to predict future demand with exceptional precision. This allows us to optimise production planning, logistics and inventory management, ensuring we meet customer needs efficiently while minimising waste and operational inefficiencies.
Our commitment to continuous improvement is resolute. The positive impact of these investments is undeniable. Our data models currently boast an excellent example of growth and commitment
and have been on an upward trajectory. By embracing these cutting-edge solutions, JK Lakshmi Cement is well-positioned to solidify its leadership position within the industry. We are driven to achieve operational excellence, superior competitiveness, and ultimately deliver exceptional value to both our customers and shareholders.

What are the challenges and advantages of integrating data across various systems in your cement manufacturing process?
Integrating data across various systems in our cement manufacturing process presents both challenges and advantages. One of the key challenges we face is the lack of real-time data connectivity, which can hinder efficient decision-making and agility within the organisation. To address this, we have implemented Oracle Cloud Solutions, which provide advanced analytics and real-time data connectivity, enabling us to have access to accurate and timely information for better decision-making and operational effectiveness.
Another challenge is the lack of integration among our systems, which can lead to inefficiencies, data duplication, and errors. To overcome this, we have implemented an integrated enterprise resource planning (ERP) system, which has streamlined our operations, enhanced data accuracy, and improved our overall business processes. This integration has also promoted streamlined processes and data integration, leading to enhanced efficiency and productivity through automation, data centralisation and improved communication with stakeholders.
One of the key advantages of integrating data across our systems is the ability to have a more transparent, agile, and integrated supply and logistics chain. With the implementation of Oracle Logistics Management Solution, we have been able to overcome challenges related to consignment locations and truck movements, providing real-time visibility into our operations. This has also led to operational efficiency improvements and the ability to predict consignment delivery times, which we share with our customers, enhancing their experience.
Furthermore, the integration of our systems has allowed us to create a more holistic technology landscape, enabling us to act faster and be more predictive. This has allowed us to address issues proactively and improve our overall operations, ultimately leading to enhanced customer satisfaction and loyalty.

How are IT initiatives contributing to sustainability efforts and reducing the environmental impact of your cement production?
JK Lakshmi Cement is leveraging innovative IT initiatives to drive sustainability and reduce the environmental impact of its cement production operations. By harnessing the power of digital technologies, the company is optimising its processes and enhancing resource efficiency across the
value chain.
One key IT-enabled initiative is the implementation of advanced analytics and predictive modeling. The company has deployed sophisticated data analytics tools to gain real-time visibility into energy consumption, emissions, and resource utilisation across its manufacturing facilities. This data-driven approach allows JK Lakshmi Cement to identify optimisation opportunities, implement targeted efficiency measures, and track the impact of its sustainability efforts with precision.
Furthermore, the company has invested in cutting-edge automation and control systems to enhance operational efficiency. Intelligent process control algorithms, coupled with Internet of Things (IoT) sensors, enable the company to fine-tune production parameters, minimise waste and reduce energy use. This intelligent automation has resulted in significant improvements in energy efficiency and a lower carbon footprint for JK Lakshmi Cement’s cement manufacturing operations.
To foster a culture of sustainability, the company has also developed robust digital platforms for employee engagement and knowledge sharing. Interactive dashboards and mobile applications empower employees to track sustainability metrics, participate in green initiatives, and share best practices
across the organisation. This digital ecosystem facilitates cross-functional collaboration and drives continuous improvement in the company’s environmental performance.
Looking ahead, JK Lakshmi Cement is exploring the integration of emerging technologies like artificial intelligence and blockchain to further enhance the traceability and transparency of its sustainability efforts. By harnessing the power of IT, the company is well-positioned to lead the cement industry’s transition towards a more sustainable and environmentally responsible future.

With the increasing digitisation of operations, what steps are you taking to ensure cybersecurity and protect sensitive data?
We recognise the ever-evolving cybersecurity landscape, particularly with the growing digitisation of our operations. As a frontrunner in the cement industry, safeguarding sensitive data and maintaining system integrity are paramount.
We leverage a multi-layered cybersecurity approach, featuring industry-leading anti-spam and anti-phishing solutions to combat advanced threats. This aligns seamlessly with our core business goals, where we actively implement ‘security by design’ principles to build inherent resilience within our systems.
Data protection remains a cornerstone of our strategy. We have deployed robust Data Loss Prevention (DLP) controls to guarantee sensitive information security. Furthermore, we continuously elevate employee preparedness through regular cybersecurity awareness training and simulated phishing exercises, fostering a keen ability to recognise and react to potential threats.
Beyond established protocols, JK Lakshmi Cement embraces cutting-edge technology. We utilise smart link neutralisation to assess URL reputation and leverage sandboxing to analyse suspicious files in a secure environment. This layered approach ensures comprehensive threat mitigation.
Moreover, we’ve fostered a strong cybersecurity culture that empowers our employees to actively participate in our defense strategy. Through continuous monitoring of our security posture, investment in skilled personnel, and collaboration with industry experts, JK Lakshmi Cement is well-positioned to navigate the dynamic digital landscape. This ensures the protection of our sensitive data and strengthens stakeholder trust in our commitment to cybersecurity.

What future IT trends do you foresee having the most significant impact on the cement industry, and how is your organisation preparing to embrace these trends?
The cement industry stands on the precipice of a transformative era, driven by the integration of cutting-edge IT solutions. At JK Lakshmi Cement, we are not just keeping pace; we are actively shaping the future by embracing these trends and unlocking their full potential.
One such transformative force is the widespread adoption of cloud computing. By leveraging cloud-native applications like Oracle’s Logistics Management Solution, we have achieved a 25 per cent increase in supply chain transparency and a 10 per cent reduction in logistics lead times). This translates to real-time visibility into operations, allowing us to optimise consignment locations, streamline truck movements, and ultimately, enhance our overall operational efficiency.
Another game-changer is Augmented Reality (AR). We envision AR revolutionising the way we approach construction projects. By creating detailed 3D models and immersive virtual tours, AR empowers stakeholders to gain a comprehensive understanding of a project’s environmental impact, sustainability measures, and overall feasibility – all before construction even begins. This technology also holds immense potential for improving site safety through virtual training and ensuring construction accuracy with BIM (Building Information Modeling) integration.
Machine learning and advanced analytics are poised to further propel the industry forward. By harnessing these powerful tools, we aim to become more proactive. Predictive maintenance, optimised production processes and data-driven decision-making are just a few of the benefits we anticipate. This translates to a significant competitive edge, allowing us to stay ahead of the curve and deliver superior value to our stakeholders.
At JK Lakshmi Cement, our commitment to technological innovation is unwavering. We are actively investing in building a robust IT infrastructure that seamlessly integrates with our ambitious growth plans, which include expanding our manufacturing base, introducing new product lines, and venturing into new markets. To achieve these goals, we’re fostering a culture of continuous improvement and building a holistic technology landscape that empowers a truly connected and intelligent ecosystem.
By embracing these transformative trends, JK Lakshmi Cement is positioned to be a leader in the next generation of cement production. We envision an industry characterised by greater efficiency, enhanced safety standards, and an unwavering focus on providing an exceptional customer experience. Our unwavering commitment to innovation and agility will ensure we remain at the forefront of this exciting transformation.

– Kanika Mathur

Concrete

Grinding aids help in reducing the agglomeration of particles

Published

4 weeks ago

August 23, 2024

Roshna

Lokesh Chandra Lohar, General Manager – Technical and Executive Cell, Wonder Cement, shares insights on overcoming challenges, leveraging innovations and the crucial role of R&D in maintaining high standards in cement production.

Can you provide an overview of the grinding process in your cement manufacturing plant and its significance in the overall production process?
Cement grinding unit is used to grind clinker and gypsum into a fine powder, known as cement. The process of grinding involves grinding of the clinker to a fine powder, which is then mixed with gypsum, fly ash and other additives to produce cement.
At Wonder Cement, our grinding processes are pivotal in ensuring high-quality cement production by utilising state of art technologies ex. Vertical Roller Mill (VRM), roller press with ball mill in combi circuit and finish mode grinding and high-efficiency classifier, have achieved optimal particle size distribution and energy efficiency.
Our commitment to sustainability is evident with usage of energy-efficient equipment, eco-friendly grinding aids and renewable energy sources. Continuous research and development efforts ensure we stay at the forefront of innovations, optimising our grinding operations and minimising impact on the environment.

The main processes involved in a cement grinding unit are:

Clinker grinding: This is the main process in a cement grinding unit, where the clinker is ground into a fine powder using a ball mill or combi mills (RP+ Ball Mill) or vertical roller mill circuit. The grinding process is controlled to achieve the desired fineness of the cement.
Gypsum and other additives: Gypsum is added to the clinker during the grinding process to regulate the setting time of the cement. Other additives such as fly ash, BF slag and pozzolana may also be added to improve the performance of the cement.
Packaging: Once the grinding process is complete, the cement is stored in silos before being packed in bags or loaded into bulk trucks for transportation.
Quality control: Quality control measures are in place throughout the grinding process to ensure that the final product meets the required specifications, including strength, setting time, and consistency.What are the main challenges you face in the grinding process, and how do you address these challenges to maintain efficiency and product quality?
The main challenges in the grinding process include high energy consumption, frequent wear and maintenance, variability in clinker properties, environment impact and ensuring consistent product quality. To address these challenges, we have implemented several strategies:
High energy consumption: Clinker grinding is energy-intensive, and high energy costs can significantly impact the overall production costs of cement.
This is one of the primary challenges in the grinding process.
Use of high-efficiency equipment: We have state-of-the-art energy-efficient grinding equipment, such as vertical roller mills (VRM), Combi Circuit (roller press with ball mill), which consume significantly less energy consumption.
Process optimisation: Real time monitoring and optimisation of the grinding process to minimise energy consumption.
Frequent wear and maintenance: The grinding equipment, such as mills and crushers, is subjected to wear over time. Frequent maintenance and downtime can affect production efficiency.
Regular maintenance: Implement a proactive maintenance schedule to address wear and tear promptly, ensuring the equipment remains in optimal condition.
Proper lubrication: Adequate lubrication of moving parts can extend the lifespan of grinding equipment.
Use of wear-resistant materials for components, which are prone to wear and abrasion.
Variability in clinker properties: Clinker properties can vary from one batch to another, leading to inconsistencies in the grinding process and the quality of the final cement product.
Clinker sources: At Wonder we have one clinker source, which is our mother plant at Nimbahera, Rajasthan and we distribute clinker to various split GU’s from Nimbahera. This helps us to maintain uniform clinker quality across each location.
Quality control: Rigorous quality control measures help us identify and address variations in clinker properties. Adjust grinding parameters as needed to compensate for these variations. (ex. use of cross belt analyser and on-line particle size distribution)
Environmental impact: Energy-intensive grinding processes can have environmental repercussions due to high dust emissions and energy consumption.
Use of high efficiency dust collection and suppression system to keep emissions below statutory norms
Sustainable grinding aids: Consider using eco-friendly grinding aids that enhance grinding efficiency without compromising cement quality and environmental standards.
Alternative fuels: Use alternative and more sustainable fuels in the cement kiln and hot gas generated to reduce carbon emissions.
Use of clean energy in logistics:
To reduce carbon emissions, sustainable alternatives are also sought for inland transport. We have involved neutral internal transports (electric powered trucks).
Automation and digitalisation of production:
Wonder Cement has already initiated the process to implement Smart Cement Industry 4.0.
With Industry 4.0, the automation and digitalisation of operations, including the use of sensors, remote diagnosis, analysis of big data (including the artificial intelligence analysis of unstructured data such as images and video), equipment, virtual facilities, and intelligent control systems will be done automatically (based first on ‘knowledge capture’ and then on machine learning). For Process optimisation we are using the FLS Process expert system (PXP) system. This allows for system optimisation and increased efficiency gains in production.

How do grinding aids contribute to the efficiency of the grinding process in your plant? What types of grinding aids do you use?
Grinding aids help in reducing the agglomeration of particles, thus improving the overall grinding efficiency and ensuring a smoother and more efficient grinding process without having adverse effect on any of the properties of the resulting cement. In cement manufacturing, various types of grinding aids are used to improve the efficiency of the grinding process. These include:

Glycol-based grinding aids

Composition: Ethylene glycol and diethylene glycol.
Usage: Commonly used in to improve the grinding efficiency and reduce energy consumption.

Amine-based grinding aids

Composition: Triethanolamine (TEA) and Triisopropanolamine (TIPA).
Usage: Effective in improving the grindability of clinker and other raw materials, enhancing cement strength and performance.

Polyol-based grinding aids
Composition: Polyethylene glycol and other polyol compounds.
Usage: Used to improve the flowability of the material and reduce the tendency of particles
to agglomerate.

Acid-based grinding aids
Composition: Various organic acids.
Usage: Used to modify the surface properties of the particles, improving the grinding efficiency and final product quality.

Specialty grinding aids

Composition: Proprietary blends of various chemicals tailored for specific materials and grinding conditions.
Usage: Customised to address challenges in the grinding process, such as the use of alternative raw materials or specific performance requirements.

Can you discuss any recent innovations or improvements in grinding technology that have been implemented in your plant?
Recent innovations and improvements in grinding technology:

Selection of state-of-the-art vertical roller mills along with high efficiency classifier (VRMs): VRMs are more energy-efficient and have lower power consumption, leading to significant energy savings. They also provide a more consistent product quality and require less maintenance. For raw meal grinding, we have both VRM and roller press.
Wear-resistant materials and components: Upgrading grinding media, liners and other components with wear-resistant materials. These materials extend the lifespan of the equipment, reduce downtime, and lower maintenance costs. Examples include ceramic liners and high chrome grinding media.
Intelligent monitoring and predictive maintenance: Utilising IoT sensors and predictive analytics to monitor equipment health. Predictive maintenance helps identify potential issues before they lead to equipment failure, reducing unplanned downtime and maintenance costs. It ensures optimal performance and prolongs equipment life.
Optimisation software and simulation tools: Using simulation software to model and optimise the grinding process. These tools help in understanding the process dynamics, identifying bottlenecks, and testing different scenarios for process improvement. This leads to better process control and efficiency.

How do you ensure that your grinding equipment is energy-efficient and environmentally sustainable?

Energy-efficient grinding technologies such as VRMs: VRMs are more energy-efficient than traditional ball mills due to their ability to grind materials using less energy.
Benefits: Up to 30 per cent to 40 per cent reduction in energy consumption.
Use of renewable energy sources (solar power integration): Utilising solar power for grinding operations
Implementation: Signing of long-term open access power purchase agreements (PPA) with renewable energy developers
Benefits: Reduces reliance on fossil fuels, decreases greenhouse gas emissions.

Environmental sustainability practices

a. Dust collection and emission control
Description: Using bag filters, and covered material handling system
Implementation: Installing and maintaining high-efficiency dust control equipment.
Benefits: Reduces particulate emissions, improves air quality, complies with environmental regulations.
b. Water conservation
Description: Recycle and reuse water in the grinding process.
Implementation: Installing sewage treatment plant (STP)
Benefits: Reduces water consumption, minimises environmental impact.
c. Use of alternative raw materials
Description: Incorporating industrial by-products like fly ash, BF slag and chemical gypsum in the grinding process.
Implementation: Sourcing and blending alternative materials.
Benefits: Reduces the need for natural resources, lowers carbon footprint, enhances sustainability.
By implementing these practices, the plant ensures that its grinding operations are both energy-efficient and environmentally sustainable, aligning with industry best practices and regulatory requirements.

What role does research and development play in optimising your grinding processes and the selection of grinding aids?
Following is the role of research and development in optimising grinding processes and selecting
grinding aids:

Testing and usage of new low-cost cementitious material: Dedicated R&D teams work on developing and new low-cost cementitious material to reduce clinker factor in cement and
improve efficiency.
Process simulation and modelling: Uses simulation and modelling tools to understand the dynamics of the grinding process and identify areas for improvement.
Formulation of new grinding aids with reverse engineering: Formulate new grinding aids to enhance the efficiency of the grinding process.
Testing and evaluation: Conducting laboratory and plant-scale tests to evaluate the effectiveness of different grinding aids.
Collaboration with industry partners: Collaborating with suppliers, universities and research institutions to stay at the forefront of grinding technology advancements.

Research and development play a crucial role in optimising grinding processes and selecting the appropriate grinding aids. By focusing on innovation, process optimisation, sustainability and continuous improvement, R&D ensures that the plant remains competitive, efficient, and environmentally responsible. This commitment to research and development enables the plant to achieve higher productivity, lower costs and produce superior quality cement.

What trends or advancements in grinding processes and grinding aids do you foresee impacting the cement manufacturing industry in the near future?
The trends and advancements in grinding processes and grinding aids that we see coming up in the near future are:

1. Digitalisation and Industry 4.0

Advanced process control (APC) and automation
Internet of things (IoT) and predictive maintenance
Artificial intelligence (AI) and machine learning (ML)

2. Energy efficiency and sustainability

Energy-efficient grinding technologies
Use of renewable energy

3. Innovations in grinding aids

Eco-friendly grinding aids
Tailored grinding aids
Multifunctional grinding aids

4. Advanced materials and components

Wear-resistant materials for liners
High-density grinding media

5. Process optimisation and integration

Holistic process optimisation

6. Sustainability and circular economy

Circular economy practices
Carbon capture and utilisation (CCU)

– Kanika Mathur

Concrete

We implement rigorous raw material testing

Published

4 weeks ago

August 23, 2024

Roshna

Manish Samdani, Head – Quality Control, Udaipur Cement Works Limited (UCWL), shares a comprehensive view on optimising cement grinding processes and enhancing plant performance.

Can you provide an overview of the grinding process in your cement manufacturing plant and its significance in the overall production process?
In UCWL, we use the following types of mills for grinding raw materials and cement:

Vertical Roller Mill (VRM): We employ the M/s Loesche (LM 38.4) and Gebr. Pfeiffer (MVR 6000C6) technology for raw material and cement grinding respectively. The VRM is a type of grinding mill that combines crushing, grinding, drying, and classification functions into a single compact unit. It operates by rotating a grinding table, equipped with rollers, while the raw materials are fed into the mill from the top. The rollers exert grinding pressure on the material, resulting in comminution and fine grinding. The ground material is then conveyed upwards and collected in a cyclone separator, while the coarse particles are returned to the grinding table for further grinding. The use of VRM technology allows for efficient grinding and improved energy utilisation. We are operating a mill with lowest power i.e., 12.5 KWh/MT with 10 per cent on 90 micron for raw material grinding.
CPI and LNVT Ball Mill: CPI and LNVT is a renowned manufacturer of grinding equipment for the cement industry. Their ball mills are widely used for grinding cement clinker, gypsum, and other materials into a fine powder. The ball mill operates by rotating a horizontal cylinder, filled with steel balls, which impact and grind the material as it rotates. The ground material is discharged through the adjustable central diaphragm, while the coarse particles are returned for further grinding. CPI optimises material flow and thin linear plate, which increases the overall area of grinding also as a highly efficient dynamic separator with top feeding.
Both the VRM and ball mill technologies provide effective grinding solutions for raw materials and cement production, each with its advantages and specific applications. The choice of the grinding mill depends on various factors such as the type of raw materials, desired fineness, production capacity, and energy efficiency requirements.

What are the main challenges you face in the grinding process, and how do you address these challenges to maintain efficiency and product quality?
At UCWL, the main challenges in the grinding process include high energy consumption, maintaining consistent product fineness, and managing moisture content in raw materials. To address these issues, UCWL uses energy-efficient VRMs, optimising parameters and employing SMARTA control systems to reduce energy usage. Consistency in product fineness is achieved through the use of online and offline PHD analysers and real-time quality control measures. Additionally, proper mixing and covered storage of raw materials help minimise moisture variations, ensuring efficient and high-quality grinding.

Energy consumption: Grinding is an energy-intensive process, and high energy consumption can lead to increased operational costs. UCWL utilises energy-efficient grinding mills like the VRM, which consumes 23-24 kWh/MT for PPC cement compared to higher consumption in ball mills. The optimisation of grinding process parameters and the use of SMARTA advanced control systems help reduce energy usage without compromising product quality.
Consistency in product fineness: Achieving and maintaining consistent product fineness is crucial for the quality of the final cement product. UCWL employs both online and offline PHD analysers for continuous monitoring and control of the grinding process. Advanced instrumentation and automation systems, along with real-time quality control measures, ensure the desired particle size distribution is maintained.
Moisture content in raw materials: High moisture content in raw materials can lead to difficulties in grinding and affect the efficiency of the grinding process and quality. UCWL ensures proper mixing of raw materials and optimal storage conditions by utilising a covered storage yard, minimising variations in moisture content.
Process and quality variability: Variability in raw material properties can lead to fluctuations in the grinding process, affecting product quality and efficiency.

We implement rigorous raw material testing and quality control procedures to ensure consistent feed quality. Real-time data is used to adjust process parameters, compensating for any variations in raw material properties. By addressing these challenges with advanced technologies, continuous monitoring, and strict quality control measures, UCWL maintains high efficiency and superior product quality in its grinding operations.

How do grinding aids contribute to the efficiency of the grinding process in your plant? What types of grinding aids do you use?
Grinding aids are chemical additives used in the cement manufacturing process to improve the efficiency and effectiveness of the grinding process. At UCWL, grinding aids play a crucial role in enhancing the performance of the grinding equipment and ensuring high-quality cement. We are using glycol-based grinding aid, which is reducing the energy required for grinding, improving one day’s strength by 2 to 3 MPa. These chemical additives lead to more efficient use of the grinding equipment, resulting in higher throughput and lower energy consumption. They also improve the flow properties of the ground material, reducing blockages and downtime. By enabling higher mill output and optimising overall mill performance, grinding aids contribute to cost savings, increased productivity, and improve product quality in the cement manufacturing process.

Can you discuss any recent innovations or improvements in grinding technology that have been implemented in your plant?
UCWL has recently implemented several innovations and improvements in grinding technology to enhance efficiency and productivity. Key among these is the integration of SMARTA and RAMCO systems for the automation of grinding systems. The SMARTA system optimises the grinding process parameters through advanced analytics and real-time monitoring, leading to significant energy savings and improved product quality. Meanwhile, the RAMCO system provides comprehensive automation, ensuring consistent control over the grinding operations and reducing the likelihood of human error. These systems enable better predictive maintenance, minimising downtime and extending the lifespan of grinding equipment. By adopting these cutting-edge technologies, UCWL has not only improved operational efficiency but also maintained high standards of product quality, positioning itself at the forefront of the cement manufacturing industry.

How do you ensure that your grinding equipment is energy-efficient and environmentally sustainable?
At UCWL, energy efficiency and environmental sustainability are achieved through several strategic measures. The use of energy-efficient equipment, such as Vertical Roller Mills (VRM), reduces energy consumption significantly compared to traditional ball mills. Advanced control systems like SMARTA and RAMCO optimise grinding parameters and provide real-time monitoring to enhance efficiency and product quality. Regular and predictive maintenance schedules ensure that equipment operates at peak performance, minimising downtime and extending lifespan. Additionally, energy management systems, including regular audits and continuous monitoring, help identify and address inefficiencies. UCWL also employs emission control technologies to minimise environmental impact, complying with regulations and promoting sustainable practices such as using alternative fuels, recycling waste products, and reducing the carbon footprint. These comprehensive efforts ensure that UCWL’s grinding operations are both energy-efficient and environmentally sustainable.

What role does R&D play in optimising your grinding processes and the selection of grinding aids?
Research and Development (R&D) at UCWL plays a pivotal role in optimising grinding processes and selecting effective grinding aids. Our R&D team focuses on process optimisation by exploring new methods to improve early strength and reduce energy consumption.
The UCWL team conducted approximately 80 to 90 R&D trials with various grinding aids to identify the most suitable formulations. These extensive trials helped in understanding the impact of different additives on grinding efficiency and product quality. Moreover, UCWL developed an in-house grinding aid, which, after successful plant-scale trials, resulted in a 2 mpa increase in initial strength and a 5 per cent increase in mill output. This in-house solution demonstrates the significant contributions of R&D in enhancing grinding performance, improving product quality, and achieving cost efficiency. Through continuous innovation and rigorous testing, R&D ensures that UCWL remains at the forefront of technological advancements in the cement industry.
Innovative technologies, such as advanced control systems, control charts and real-time monitoring tools, are developed and integrated to ensure consistent quality. Continuous improvement initiatives ensure ongoing optimisation, integrating feedback from production and quality control teams to address emerging challenges. Through these comprehensive efforts, R&D at UCWL ensures efficient, high-quality and sustainable grinding operations.

Can you share any specific examples or case studies where improvements in the grinding process have significantly benefited your plant’s performance?
The implementation of grinding aids at UCWL has led to significant improvements in the consumption of fly ash in Portland Pozzolana cement (PPC)
and a reduction in power consumption over the past four fiscal years. The data below illustrates these improvements:
Fly ash consumption (percentage):

FY 2020-21: 25.9 per cent
FY 2021-22: 27.7 per cent
FY 2022-23: 30.9 per cent
FY 2023-24: 32.5 per cent

Power consumption (kWh/MT):

FY 2020-21: 31.2 kWh/MT
FY 2021-22: 30.6 kWh/MT
FY 2022-23: 28.2 kWh/MT
FY 2023-24: 26.5 kWh/MT

By using grinding aids, UCWL has managed to increase the fly ash content in PPC from 25.9 per cent in FY 2020-21 to 32.5 per cent in FY 2023-24. This increase in fly ash usage not only improves the sustainability of the cement by utilising more industrial by-products but also enhances the overall performance of the cement. Concurrently, power consumption has decreased from 31.2 kWh/MT to 26.5 kWh/MT over the same period, demonstrating the effectiveness of grinding aids in reducing energy requirements and operational costs. These improvements highlight the critical role of grinding aids in optimising the grinding process, contributing to both economic and environmental benefits at UCWL.

What trends or advancements in grinding processes and grinding aids do you foresee impacting the cement manufacturing industry in the near future?
In the near future, the cement manufacturing industry is expected to be significantly impacted by several trends and advancements in grinding processes and grinding aids. Advanced grinding technologies, such as high-efficiency vertical roller mills (VRMs) and high-pressure grinding rolls (HPGRs), are enhancing energy efficiency and grinding performance.
Innovations in grinding aids are focusing on novel chemical additives and sustainable options that reduce energy consumption and environmental impact. Automation and digitalisation are driving improvements through real-time process optimisation and predictive maintenance, leading to better efficiency and reduced downtime.
Additionally, energy efficiency is being addressed through waste heat recovery systems and more energy-efficient equipment. The use of alternative materials and additives, along with a strong emphasis on reducing the carbon footprint, is also shaping the future of cement manufacturing. These advancements collectively aim to improve operational efficiency, lower costs and promote environmental sustainability in the industry.