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Customer specs are getting tougher

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With increasing quality consciousness among industry players to gain competitive edge, customer specification of equipment is getting stringent day by day.

Like in any industry, quality is of utmost importance in the cement industry. The quality consciousness has gone so far that the industry tries to ensure same consistency in each bag, let alone every kilogram of the product in it. That calls for consistency in mix of materials at various stages in their quality and characteristics. At this juncture, companies are adopting the latest laboratory instrumentation and automation techniques in the cement industry.

Cement plants are well spread out at their locations making it difficult for manually monitoring various parameters and adjusting process parameters on a real-time basis. Besides, availability of skilled manpower in remote areas where many cement plants are located, and retaining them has become a difficult task for companies. So, remote operation, support from distant locations, and online assistance are all vital for the smooth operation of quality control systems in modern cement plants.

Increasing environmental regulations, need for production efficiency and cost control at every level in a growing competitive business environment, need to curtail human errors in this continuous process industry, and growing demand for consistency of product quality by customers are placing increasingly tough requirements for sample analysis quality and complexity, and for sample throughput in cement plants, are some of the other reasons for cement companies adopting automation of their laboratory ecosystem.

In the early days, sample collection and transfer it to testing laboratory and adjusting the controls based on the laboratory results were being done manually. Then came semi-automatic sampling and automatic sample preparation; followed by automation of sample transportation; then a compact and interlaced design that suits a single integrated line or a clinker grinding facility was introduced, and now, robots have entered the arena. Today, human intervention in the process has been reduced to almost nil by robots.

Challenges
Indian cement industry, known to be one of the leaders in energy efficiency and emission control in the world, is also emulating global best practices in quality control. The real-time evaluation of samples is a challenge with the size of plants, and any delay in corrective action could affect a large volume of production. Some of the challenges on the way include ensuring:

  • High speed and accuracy of sample collection and results;
  • Stricter quality controls sought by cement markets;
  • Support for 24/7/365 operations; and
  • Zero health and safety hazards or incidents.

Many of the cement manufacturing facilities are located at remote areas facing hostile environments or extreme weather conditions. Even equipment manufacturers are taking measures to meet these stringent demands. Dr Harald van Weeren, Global Manager for Cement Solutions and Hari Bhaskar, Manager for Automation Solutions, Malvern Panalytical, a division of Spectris Pte Ltd., say, "Our instruments are designed from the ground up with a hostile environment in mind. For instance, we have different product lines which are designed and calibrated for cement samples.

We understand that plants are dusty, humid and hot. Our Epsilon 4 benchtop XRF for elemental analysis and Aeris compact XRD are designed to be closed cabinet analysis to prevent dust from interfering with the sample analysis and also expensive detectors."

For 24/7 plant operation, the process laboratory must operate constantly with only very few, short stops, the laboratory automation system should be seamlessly integrated with the plant automation system and plant Management Information System (MIS) seamlessly. "With seamless integration…between Central Control Room (CCR) and Quality Control Lab, we’ve seen improved reliability. The integration between laboratory and plant automation which enabled us to get uniform quality of raw mix, stable operation with optimised oxygen control resulting increasing productivity and lower heat & power consumption," says Sanjay Joshi, Chief Manufacturing Officer, Nuvoco Vistas Corp.

"As far as integration to plant control, our automation control system can seamlessly communicate with plant control through commonly available protocols such as OPC Clients, Modbus or Profibus etc., which are used in cement industries. The laboratory analysis flow and equipment mimics can be displayed on Plant Control panels with alarm signals and other monitoring signals," say Harald and Hari.

Robots
Considering costs involved in manpower vs. automation, balance always tilts in favour of the latter and the industry is also moving towards the same. Some laboratories in the industry have also adopted robotic technologies. "The whole operation can be done with robots – with single/multiple robots," says Joshi.

Instruments like X-ray fluorescence and X-ray Diffractometer and optical microscopes are widely used cement industry laboratories.

Cement manufacturer, Nuvoco has procured X-Ray Fluorescence and X-Ray Diffraction equipment with reproducibility and high accuracy for its production units. "These equipments provide us with a much stricter control over our product’s quality parameters. To reduce human errors, auto-samplers have been installed to draw a representative and average sample. Additionally, we have cross belt analysers installed for limestone quality assurance. Expert systems are installed for efficient control of the raw mix, clinker and cement quality," Joshi says.

Laboratory automation solutions company, Malvern Panalytical has designed cement editions to its product lines. Its newest range of X-ray diffraction diffractometers for understanding the mineralogy, is the Aeris compact XRD, which is the first benchtop XRD that is built with inputs from industry and users. "Unlike other solutions in the market, the Aeris is built with a closed box cabinet with external sample loading. This is so that cement dust does not get into the analytical chamber. Moreover, the Aeris is easy to operate, requiring minimal or no training. Plus it can handle numerous samples as customers have the option of placing it on the automation conveyor belt." One can choose the level of automation based on several factors like capacity of plant, integrated or grinding unit, technical skills and knowhow of plant personnel.

Advantages
When the whole laboratory system and process is automated unbiased results can be viewed on the central screen without any manual intervention, and the same can be transmitted anywhere automatically, making multiple and remote observation of plant operations possible.

"Above all, companies gain in terms of data consistency and reliability. Automation eliminates manual sampling, where there could instances of operator biases. For instance, there may be variances or margin of error between operators. This is especially noticed when another operator takes on the next work shift,? say Harald and Hari.

"Automated lab also reduces standard deviation of quality parameters in raw mix, thus resulting best utilisation of the different grade limestone (thus increasing mines life) and avoiding expensive purchased additives," says Joshi.

"So in a nutshell, it improves cement quality consistency, maximises plant availability and stabilises operation, improves raw mix uniformity and raw mix cost," adds Joshi.

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Concrete

Steel: Shielded or Strengthened?

CW explores the impact of pro-steel policies on construction and infrastructure and identifies gaps that need to be addressed.

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Going forward, domestic steel mills are targeting capacity expansion
of nearly 40 per cent through till FY31, adding 80-85 mt, translating
into an investment pipeline of $ 45-50 billion. So, Jhunjhunwala points
out that continuing the safeguard duty will be vital to prevent a surge
in imports and protect domestic prices from external shocks. While in
FY26, the industry operating profit per tonne is expected to hold at
around $ 108, similar to last year, the industry’s earnings must
meaningfully improve from hereon to sustain large-scale investments.
Else, domestic mills could experience a significant spike in industry
leverage levels over the medium term, increasing their vulnerability to
external macroeconomic shocks.(~$ 60/tonne) over the past one month,
compressing the import parity discount to ~$ 23-25/tonne from previous
highs of ~$ 70-90/tonne, adds Jhunjhunwala. With this, he says, “the
industry can expect high resistance to further steel price increases.”

Domestic HRC prices have increased by ~Rs 5,000/tonne
“Aggressive
capacity additions (~15 mt commissioned in FY25, with 5 mt more by
FY26) have created a supply overhang, temporarily outpacing demand
growth of ~11-12 mt,” he says…

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Price hikes, drop in input costs help cement industry to post positive margins: Care Ratings

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Region-wise,the southern region comprises 35% of the total cement capacity, followed by thenorthern, eastern, western and central region comprising 20%, 18%, 14% and 13%of the capacity, respectively.

The cement industry is expected to post positive margins on decent price hikes over the months, falling raw material prices and marked drop in overall production costs, said an analysis of Care Ratings.

Wholesale and retail prices of cement have increased 11.9% and 12.4%, respectively, in the current financial year. As whole prices have remained elevated in most of the markets in the months of FY20, against the corresponding period of the previous year.

Similarly, electricity and fuel cost have declined 11.9% during 9M FY20 due to drop in crude oil prices. Logistics costs, the biggest cost for cement industry, has also dropped 7.7% (selling and distribution) as the Railways extended the benefit of exemption from busy season surcharge. Moreover, the cost of raw materials, too, declined 5.1% given the price of limestone had fallen 11.3% in the same aforementioned period, the analysis said.

According to Care Ratings, though the overall sales revenue has increased only 1.3%, against 16% growth in the year-ago period, the overall expenditure has declined 3.2% which has benefited the industry largely given the moderation in sales.

Even though FY20 has been subdued in terms of production and demand, the fall in cost of production has still supported the cement industry by clocking in positive margins, the rating agency said.

Cement demand is closely linked to the overall economic growth, particularly the housing and infrastructure sector. The cement sector will be seeing a sharp growth in volumes mainly due to increasing demand from affordable housing and other government infrastructure projects like roads, metros, airports, irrigation.

The government’s newly introduced National Infrastructure Pipeline (NIP), with its target of becoming a $5-trillion economy by 2025, is a detailed road map focused on economic revival through infrastructure development.

The NIP covers a gamut of sectors; rural and urban infrastructure and entails investments of Rs.102 lakh crore to be undertaken by the central government, state governments and the private sector. Of the total projects of the NIP, 42% are under implementation while 19% are under development, 31% are at the conceptual stage and 8% are yet to be classified.

The sectors that will be of focus will be roads, railways, power (renewable and conventional), irrigation and urban infrastructure. These sectors together account for 79% of the proposed investments in six years to 2025. Given the government’s thrust on infrastructure creation, it is likely to benefit the cement industry going forward.

Similarly, the Pradhan Mantri Awaas Yojana, aimed at providing affordable housing, will be a strong driver to lift cement demand. Prices have started correcting Q4 FY20 onwards due to revival in demand of the commodity, the agency said in its analysis.

Industry’s sales revenue has grown at a CAGR of 7.3% during FY15-19 but has grown only 1.3% in the current financial year. Tepid demand throughout the country in the first half of the year has led to the contraction of sales revenue. Fall in the total expenditure of cement firms had aided in improving the operating profit and net profit margins of the industry (OPM was 15.2 during 9M FY19 and NPM was 3.1 during 9M FY19). Interest coverage ratio, too, has improved on an overall basis (ICR was 3.3 during 9M FY19).

According to Cement Manufacturers Association, India accounts for over 8% of the overall global installed capacity. Region-wise, the southern region comprises 35% of the total cement capacity, followed by the northern, eastern, western and central region comprising 20%, 18%, 14% and 13% of the capacity, respectively.

Installed capacity of domestic cement makers has increased at a CAGR of 4.9% during FY16-20. Manufacturers have been able to maintain a capacity utilisation rate above 65% in the past quinquennium. In the current financial year due to the prolonged rains in many parts of the country, the capacity utilisation rate has fallen from 70% during FY19 to 66% currently (YTD).

Source:moneycontrol.com

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Wonder Cement shows journey of cement with new campaign

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The campaign also marks Wonder Cement being the first ever cement brand to enter the world of IGTV…

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Cement manufacturing company Wonder Cement, has announced the launch of a digital campaign ‘Har Raah Mein Wonder Hai’. The campaign has been designed specifically to run on platforms such as Instagram, Facebook and YouTube.

#HarRaahMeinWonderHai is a one-minute video, designed and conceptualised by its digital media partner Triature Digital Marketing and Technologies Pvt Ltd. The entire journey of the cement brand from leaving the factory, going through various weather conditions and witnessing the beauty of nature and wonders through the way until it reaches the destination i.e., to the consumer is very intriguing and the brand has tried to showcase the same with the film.

Sanjay Joshi, executive director, Wonder Cement, said, "Cement as a product poses a unique marketing challenge. Most consumers will build their homes once and therefore buy cement once in a lifetime. It is critical for a cement company to connect with their consumers emotionally. As a part of our communication strategy, it is our endeavor to reach out to a large audience of this country through digital. Wonder Cement always a pioneer in digital, with the launch of our IGTV campaign #HarRahMeinWonderHai, is the first brand in the cement category to venture into this space. Through this campaign, we have captured the emotional journey of a cement bag through its own perspective and depicted what it takes to lay the foundation of one’s dreams and turn them into reality."

The story begins with a family performing the bhoomi poojan of their new plot. It is the place where they are investing their life-long earnings; and planning to build a dream house for the family and children. The family believes in the tradition of having a ‘perfect shuruaat’ (perfect beginning) for their future dream house. The video later highlights the process of construction and in sequence it is emphasising the value of ‘Perfect Shuruaat’ through the eyes of a cement bag.

Tarun Singh Chauhan, management advisor and brand consultant, Wonder Cement, said, "Our objective with this campaign was to show that the cement produced at the Wonder Cement plant speaks for itself, its quality, trust and most of all perfection. The only way this was possible was to take the perspective of a cement bag and showing its journey of perfection from beginning till the end."

According to the company, the campaign also marks Wonder Cement being the first ever cement brand to enter the world of IGTV. No other brand in this category has created content specific to the platform.

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