Process

Ceramic grinding media, a new entrant in cement grinding circle

Published

6 years ago

January 10, 2019

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Grinding operation still draws highest attention of the top management of plant in the entire plant operation cycle. No wonder when 35 per cent of energy is consumed by the cement grinding process alone. ICR had time to talk with Biswajit Dhar, who spoke on the present scenario of capex in the cement industry with respect to capacity enhancement in existing plants.

Please comment on the present scenario of CAPEX in the cement industry with respect to capacity enhancement in existing plants.

Currently, the cement industry is faced with a dilemma – cement industry in India is faced with a low demand scenario. On one hand, the capacity utilisation of the existing cement plants are between 65-70 per cent and the rate of growth of cement demand on year-to-year basis is not very encouraging. On the other hand, India-one of the fastest growing economies in the world-has relatively a very low per capita cement consumption – 200 kg, against the world average of 520 kg plus and China around 1,750 kg. Cost of capital, reduction of energy footprint and hence our commitment to CO2 abatement, long delivery time, are other factors which govern and guide towards capex, and this probably facilitates low cost capacity enhancement, like ball mills, with a better RoI than greenfield or even brownfield options.

Give an over view of various options available in the grinding operations. Please support your viewpoint with focus on improvement in energy efficiency and better product quality. (Comment on various combinations like mill with roll press or VRM with ball mill etc.)

There are various options available for cement grinding – ball mill, vertical roller mills (VRM), roller press (RP), Horo mill, etc. Choice in selection is based on capacity required and the choice of initial cost v/s energy consumption, etc. Whereas for capacity less than 100 tonnes per hour, ball mills open or closed circuit, latter being preferable, is the more favoured option in terms of low cost, lower time required from concept to commissioning, ease of operation, easy maintenance, lower operational skill requirement, VRM, RP find favour, in spite of the high capex requirement, particularly for higher capacities as the specific power consumption is lower less by around 40 per cent and that give a better payback, particularly in areas of high electricity cost.

Of course in terms of time required to install, ease of operation, maintenance friendliness, operational skills, ball mill is always an easier option. With the advent of latest generation separators, product quality, water demand, etc. doesn’t concern RP/VRMs. For an incremental increase in capacity particularly with conventional ball mill systems, RP is widely added as a pre-grinder or hybrid or combi-systems resulting in 60 to 100 per cent capacity increase. This is a widely used model with low downtime and relatively reduced cost.

Do you think that our precious resources are diverted to produce more and more of 53 grade cement when majority of our jobs can be easily completed by 43 grade cement? It’s influence on grinding operation. Kindly elaborate.

Grade 53 cement is normally preferred for application where high compressive strength is required for specialised applications, etc. in view of its higher late strength. However it is generally preferred, particularly in urban areas particularly to reduce construction time. Usage of Grade 53 for general construction activities should not be patronised, as they need increased lime content and is more energy intensive, thereby putting stress on the scarce quality limestone resource and depleting energy resources. Grade 53 generally calls for finer grinding which in turn ends up with increased wear and hence higher maintenance. Grade 43 is generally acceptable and sufficient for over all construction activities, except for cases as cited above.

While making blended cements we have option of co-grinding which is very common in fly ash based cement whereas for slag cement a route of separate grinding is taken. Why and what are advantages?
Co- grinding is generally widespread in Portland Pozzolana Cement manufacture, because it’s a cheaper option and does not need separate infrastructure for separate grinding and mixing of fly ash with cement. Fly ash comes with various Blaine’s and grindabilty and in cases where fly ash is distinctly coarse, separate grinding technically is a better solution as constituents in product will be of similar sizes rather than distinctly different sizes as seen in co- grinding. Separate infrastructure for fly ash grinding, is a costly option and moreover separate fly ash grinding has not been a real success in India or for that matter anywhere worldwide.

What is the role played by grinding aids? How does the cost economics work?
As we go for finer grinding, the phenomenon of agglomeration increases, resulting in decreased grinding efficiency. This is where grinding aids play a decisive role in enhancing mill performance. However not all grinding aids are compatible for all clinker and it must be carefully selected based on input and desired performance. Grinding aids have immense impact on quality, power consumption and handling, both in cement plant and at point of use. Grinding aids have been found to improve early/late strength of cement. Typically, grinding aids are costly and cost effectiveness should be carefully evaluated, in terms of performance improvements and cost.

There is a new thought on using ceramic grinding media for grey cement grinding. What about the cost?
Ceramic grinding media is a new entrant in the cement (ball mill) grinding circle. Although it is in use for some non cement applications, it is yet to be proven in cement. Suppliers claim low energy consumption with hardly any adverse effect on the productivity. This is yet to be established.

What is the role played by separators in the grinding operations? Are we able to really make full use to get optimum size particle size distribution (PSD)?
Separators have a very important role in the efficiency of any grinding systems. Design, selection and sizing of a separator in terms of its air to material ratio, circumferential velocity, rotor loading are some of the very important parameters which go in a long way for an efficient grinding system. A steep PSD improves cementitious properties and helps in marginally reducing Blaine’s value.

Please advice on PSD with respect to strength development in cement.
Normally PSD gives a true reflection on the size distribution of particles. A steep PSD will definitely improve the strength developments and that’s where the state-of-the-art separators are so important.

Various equipment manufacturers are promoting use of "Expert" system to run the mills on auto mode. How best these systems can be deployed?
Expert system bridges the difference between the lazy, unskilled operator and an agile, intelligent operator. Expert systems could be very useful if is well programmed and utilised with full conviction. It may require some tuning from time to time to adjust to varied conditions.

The conventional method of monitoring the grinding efficiency and product quality is checking the residue on sieve or mesh; do you think this is still relevant? How? Neither Blaine nor residue gives a complete picture of the particle size distribution. However Blaine and residue analysis are resorted to, as it can give feedback in a short span of time to take corrective action.

Biswajit Dhar, an M.Tech in Chemical Engg from I.I.T Kharagpur, has over 35 years of experience in plant operations, plant commissioning & energy optimisation at companies like ACC, ThyssenKrupp & UltraTech. Post retirement in 2017, he worked as a process consultant with various cement companies in India, Nepal and China, particularly in energy optimisation, capacity enhancement, de-bottlenecking, etc. He can be contacted on: Mob: 9702014464, Email: dhar.biswajit13@gmail.com | dhar.biswajit@outllook.com

Process

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

Published

3 years ago

October 21, 2021

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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

Process

Wonder Cement shows journey of cement with new campaign

Published

3 years ago

October 21, 2021

admin

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

ETBrandEquity

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.

Process

In spite of company’s optimism, demand weakness in cement is seen in the 4% y-o-y drop in sales volume. (Reuters)

Published

3 years ago

October 21, 2021

admin

Cost cuts and better realizations save? the ?day ?for ?UltraTech Cement, Updated: 27 Jan 2020, Vatsala Kamat from Live Mint

Lower cost of energy and logistics helped Ebitda per tonne rise by about 29% in Q3
Premiumization of acquired brands, synergistic?operations hold promise for future profit growth Topics

UltraTech Cement
India’s largest cement producer UltraTech Cement Ltd turned out a bittersweet show in the December quarter. A sharp drop in fuel costs and higher realizations helped drive profit growth. But the inherent demand weakness was evident in the sales volumes drop during the quarter.

Better realizations during the December quarter, in spite of the 4% year-on-year volume decline, minimized the pain. Net stand-alone revenue fell by 2.6% to ?9,981.8 crore.

But as pointed out earlier, lower costs on most fronts helped profitability. The chart alongside shows the sharp drop in energy costs led by lower petcoke prices, lower fuel consumption and higher use of green power. Logistics costs, too, fell due to lower railway freight charges and synergies from the acquired assets. These savings helped offset the increase in raw material costs.

The upshot: Q3 Ebitda (earnings before interest, tax, depreciation and amortization) of about ?990 per tonne was 29% higher from a year ago. The jump in profit on a per tonne basis was more or less along expected lines, given the increase in realizations. "Besides, the reduction in net debt by about ?2,000 crore is a key positive," said Binod Modi, analyst at Reliance Securities Ltd.

Graphic by Santosh Sharma/Mint
What also impressed analysts is the nimble-footed integration of the recently merged cement assets of Nathdwara and Century, which was a concern on the Street.

Kunal Shah, analyst (institutional equities) at Yes Securities (India) Ltd, said: "The company has proved its ability of asset integration. Century’s cement assets were ramped up to 79% capacity utilization in December, even as they operated Nathdwara generating an Ebitda of ?1,500 per tonne."

Looks like the demand weakness mirrored in weak sales during the quarter was masked by the deft integration and synergies derived from these acquired assets. This drove UltraTech’s stock up by 2.6% to ?4,643 after the Q3 results were declared on Friday.

Brand transition from Century to UltraTech, which is 55% complete, is likely to touch 80% by September 2020. A report by Jefferies India Pvt. Ltd highlights that the Ebitda per tonne for premium brands is about ?5-10 higher per bag than the average (A cement bag weighs 50kg). Of course, with competition increasing in the arena, it remains to be seen how brand premiumization in the cement industry will pan out. UltraTech Cement scores well among peers here.

However, there are road bumps ahead for the cement sector and for UltraTech. Falling gross domestic product growth, fiscal slippages and lower budgetary allocation to infrastructure sector are making industry houses jittery on growth. Although UltraTech’s management is confident that cement demand is looking up, sustainability and pricing power remains a worry for the near term.