Economy & Market
2014 will not show a sharp revival although we expect the conditions to remain stable
Published
3 years agoon
By
adminTeena Virmani, Vice- President, Kotak Securities The year 2013 was tough for the industry, and 2014 is not expected to fare much better. Though things will be better, there is still a long way to go, for the sector to get back on track. Teena Virmani, Vice- President, Kotak Securities, shares her views about the year ahead. Excerpts from the interview.
So how do you assess the performance of the cement sector in 2013?
The current installed capacity of the cement industry stand at around 330 – 340 million tonnes per annum. The cement demand, however, was much lower. Most companies had their production volumes up to 60 – 70 per cent of installed capacity. The cement demand growth hovered at around 4 – 5 per cent in the fiscal year. The slowdown was a spillover of decreased growth in consumer sectors such as infrastructure and housing. The GDP of the country too, was very low.
The housing sector, which is the major consumer of cement, saw a decline in real estate demand.. One of the reasons was high interest rates on loans available for the housing sector. Besides this, the ban on sand mining too, impacted the sector.
We also saw very little activity in the infra sector. No major projects were launched and the actual execution of those granted did not take place. Overall, 2013 was not that good for the cement manufacturers.
Has setting up a cement plant become more difficult now?
Land acquisition process is not as smooth as it should be. When it comes to acquiring and building a cement plant, the promoters have to go through a lengthy approval process right from environment clearance to mining leases. The number of approvals required is very large and the time taken for granting is too long. This definitely slows down the growth.
Do you expect good cement demand in 2014?
2014 will not show a sharp revival although we expect the conditions to remain stable at least, if not improve. We feel that after the elections, once we see a stable government in place, we will have a clear idea of the direction in which we are moving ahead. I don´t think new governance will have an immediate impact on the market; it will be a slow and a gradual process. Projects will be planned, approved, tenders will be floated and contracts will be awarded. Only after the projects take off at ground level will we see any demand from the infra sector. So, after the elections, we do not expect any drastic improvements for at least 3- 5 quarters. At the most, we may see a positive and optimistic mindset impacting the market after the elections.
Demand from the rural housing sector too, will help in a revival and we expect it to be at least at 5 per cent. In 2015, the demand is likely to pick up.
How do you view consolidations that happened in 2013?
We saw several major consolidations in the last year. There were capacity additions, too, though the cement demand was low. Industries have to grow whether or not there is demand in the market. 2013 was a year of consolidation and we believe it was the right move for buyers. The consolidations happened at very decent rates and the dollar was at a high so both parties benefited. It was a good move to take over rather than setting up a new facility. The cost of taking over is well worth it, given the hassles of getting a slew of clearances and mining leases in the case of setting up a new plant. Replacement costs too, are very high. In a way, the slowdown was a good opportunity for the buyers.
How do you expect cement prices to move in 2014?
The last fifteen days of December usually see a dip in prices. This is an established pattern as some major cement companies close their books in December. They have to clear the cement stocks before the books are closed. As a result, the market has an over-supply of cement in this period. Prices usually come down at this time but we expect them to start improving from January onwards and keep rising till May – June 2014. After June, the pricing will depend on the monsoon. There is a likelihood of prices dipping in June. Overall, we expect prices to be on the higher side in 2014 as compared to 2013. We are expecting better days for the housing, construction and infrastructure sectors and that will certainly help in improving cement prices.
Will cement companies have a better profit margins in 2014 with the decreasing costs of production?
A good cost structure will have to be put in place for the industry. As cement prices went up, the cost of production too, went up dramatically, the cost of raw material went up, and the rise in diesel prices raised the cost of freight transport. Although the cost of coal had come down slightly, it was offset by the rise of the dollar. We don´t see costs coming down in the near future. Cement prices may go up but the cost of production is not likely to come down.
Are cement manufacturers cutting production to save on limestone reserves?
No, the cut in production is purely related to the demand and supply scenario. It has nothing to do with conservation of limestone reserves. Companies like ACC, Ambuja, UltraTech, have reserves sufficient for more than 60 – 70 years, so there is no need to conserve resources by cutting production.
The prices and the production capacity is governed by the demand and 2013 saw a dip in demand. The cut in production was in response to the lower demand. As the infrastructure and housing sectors pick up, we will see the production volumes rising correspondingly.
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Concrete
We consistently track air emissions from fuel combustion
Published
8 minutes agoon
November 22, 2024By
adminRaju Ramchandran, SVP Manufacturing (Cluster Head – Central), Nuvoco Vistas, sheds light on the company’s robust commitment to sustainable cement production, achieving low emissions through innovative energy solutions, alternative fuels and circular economy practices.
How does your company address the environmental impact of cement production, particularly in terms of reducing emissions?
As a cement manufacturing company, managing energy consumption and emissions is crucial to achieving sustainable operations. At Nuvoco, we have taken significant measures to address this material issue and use it as a competitive advantage for the company. We are consistently enhancing the integration of green power and alternative fuels within our operations. This ongoing commitment is pivotal to our strategy for reducing Greenhouse Gas (GHG) emissions, highlighting our dedication to sustainable practices.
Nuvoco maintains one of the lowest carbon footprints in the industry, with carbon emissions standing at just 457 kg of CO2 per tonne of cementitious materials. Our solar energy capacity has also grown significantly, increasing from 1.5 MW to 5.3 MW for FY 23-24.
What measures have been implemented to monitor and control emissions of CO2, NOx and particulate matter during the cement manufacturing process?
We consistently track air emissions from fuel combustion in our cement manufacturing and power generation operations. The burning of fossil fuels releases pollutants such as Oxides of Sulphur (SOx), Oxides of Nitrogen (NOx), and Particulate Matter (PM), which require stringent monitoring.
We ensure compliance with regulatory standards by using the Continuous Emission Monitoring System (CEMS) to monitor these emissions. For the FY 23-24, both our stack and fugitive emissions have stayed within the permissible limits set by Pollution Control Boards. Moreover, our ongoing monitoring of fugitive emissions ensures that we meet the prerequisite air quality standards.
Can you elaborate on the role of alternative fuels and raw materials in reducing the environmental footprint of cement production?
The use of alternative fuels and raw materials plays a critical role in reducing the environmental footprint of cement production. At Nuvoco, we are actively embracing this approach to promote sustainability and lower our dependence on traditional fossil fuels and virgin raw materials.
Our manufacturing processes enable the use of waste materials from industries like steel and thermal power generation as alternative fuels. Our mix of alternative fuels includes solid waste, liquid solvent, biomass, refuse derived fuels (RDF) from municipal solid waste, and other substances, with a focus on biomass. By incorporating alternative fuels we not only reduce carbon emissions but also contribute to waste management by diverting materials from landfills. Additionally, in line with our sustainability objectives, we plan to considerably expand our use of alternative fuels in the coming years.
During FY 23-24, the utilisation of Alternative Raw Materials (ARM) in our processes increased to 33.9 per cent in cement production, up from 27.7 per cent in the previous year. Incorporating materials such as chemical gypsum, fly ash and slag into our cement formulations significantly reduced our reliance on virgin raw materials and further promoted circularity in our operations.
How does your company approach waste management and recycling to minimise environmental harm?
The principles of a circular economy are integral to our sustainability initiatives. We engage in a variety of efforts to minimise waste generation, promote resource efficiency, and reduce our environmental footprint. We collaborate with other industries to incorporate their waste into our operations, using it as alternative raw materials. By introducing substitute materials into our cement production, such as blended cement with reduced clinker content, we are able to lower waste disposal volumes and significantly reduce carbon emissions.
In our Ready-Mix Concrete (RMX) plants, we actively integrate recycled aggregates from Construction and Demolition (C&D) waste into our manufacturing process. This practice not only boosts the sustainability of our concrete products but also prevents valuable materials from ending up in landfills, contributing to better resource efficiency.
A notable innovation is the ‘Nu Aqua Zero Debris Recycler System,’ which addresses the challenges of solid concrete waste and slurry disposal at RMX plants. This system significantly reduces debris generation and recycles wastewater for reuse, cutting down on freshwater consumption and solid waste. This initiative underscores Nuvoco’s dedication to promoting sustainability and fostering a circular economy in the building material industry.
What long-term goals has your company set in terms of reducing emissions, and what steps are being taken to achieve them?
Nuvoco has set a long-term vision for reducing emissions, anchored in its ‘Protect Our Planet’ agenda. This agenda aligns with the growing focus on Environmental, Social and Governance (ESG) principles, which have become increasingly important to stakeholders, including customers, employees, partners, investors, regulators and local communities. Sustainability is a core component of our business strategy, driving its commitment to responsible and environmentally conscious operations.
The company’s approach is structured around five key themes: Decarbonisation, Water Management, Circular Economy, Biodiversity and Waste Reduction. As part of its decarbonisation strategy, Nuvoco is committed to reducing carbon emissions by 2 per cent annually. This effort includes a focus on maximising the use of alternative fuels, harnessing waste heat for green energy generation, and incorporating innovative green products such as the ECODURE range.
What technological innovations or process optimisations has your company adopted to lower greenhouse gas emissions?
The company has dedicatedly installed a system that is capable of utilising agricultural waste, refuse derived fuel (RDF), plastic waste, municipal waste, biomass, tyre chips and other hazardous waste sources. We have introduced AFR feeding into the pyro process system for enabling uniform feeding and incorporating all necessary safety interlocks throughout. This system allows us to consume alternate fuels in an efficient and effective way without impacting the environmental standards prescribed and approved by the Pollution Control Board of India. Although this project is primarily focused on environmental sustainability, it also has several other benefits for clinker production and can offer significant cost savings through its alternative fuels program.
The company has also made significant modifications across its plants to improve energy efficiency, specifically targeting SHC (Specific Heat Consumption) and SPC (Specific Power Consumption) during clinker and cement production. Our waste heat recovery systems currently have a combined capacity of 44.7 MW, with plans for further optimisation to increase power generation.
– Kanika Mathur
Concrete
We are committed to a sustainable low-carbon future
Published
51 minutes agoon
November 22, 2024By
adminSudhir Pathak, Head – Central Design and Engg (CDE), QA, Green Hydrogen, Hero Future Energies, talks about empowering India’s hard-to-abate industries with innovative renewable energy technology.
How is Hero Future Energies contributing to reducing emissions in hard-to-abate sectors like cement manufacturing, and what role does renewable energy play in this effort?
Today, Hero Future Energies (HFE) is no longer simply a renewable energy (RE) provider but has transformed into an end-to-end Net Zero partner especially for construction and infrastructure clients in the hard-to-abate sectors. In addition to providing Scope 2 based solutions, such as behind the meter RE (rooftop and ground mount solar) and open access-based RE including developing RE-100 roadmaps we also support Scope 1 and 3 emission decarbonisation by providing complete turnkey solutions through the use of green hydrogen and its derivatives. For hard-to-abate sectors like cement, HFE is in advanced discussions with few leading players, regarding enabling decarbonisation of their heating applications such as pre-calciners, rotary kilns etc through green fuels. This supplements our Scope 2 solutions for the cement industry.
With HFE’s focus on clean technologies like green hydrogen and energy storage, how do you envision these innovations helping the cement industry reduce its carbon footprint?
The cement industry is one of the largest consumers of grid power (Scope 2) and also a guzzler of in-process fossil CO2 (Scope 1) including process-based CO2 through limekilns. In the case of Scope 2, decarbonisation can be achieved only up to 50 per cent to 60 per cent through plain hybrid solar and wind. However, for achieving balance 40 per cent, storage is essential, be it chemical or mechanical. Today, HFE is ready to provide such bespoke storage solutions as is evident through several complex RTC tenders that we have won in the last 6-8 months floated by agencies like SECI, NTPC and SJVN. These include tenders for FDRE projects, peak power, load following, etc. Further, regarding green hydrogen and its derivatives, we are ready to apply these for decarbonising industrial heating and mobility (Scope 1 and 3).
What are some of the biggest challenges you face when working with the cement sector to integrate renewable energy solutions and reduce emissions?
Deployment of renewable energy for mitigating Scope 2 emissions is relatively easy, except for RE behind the meter, looking at the high dust levels involved in cement production particularly in the crushers. Regarding Scope 1 decarbonisation, there are several challenges. Unlike in Europe, the majority of the Indian cement industry uses coal combustion in heating applications. This being a solid fuel, is suitable for horizontal rotary kilns and needs positive pressures for combustion processes, whereas, green hydrogen, being the lightest of molecules, are good and amenable, when working in vertical combustion shafts. Therefore, existing facilities may be used only partially, and for complete conversion, new installations will be needed. This will entail a significant amount of space inside the plants, which is currently scarce.
HFE has been involved in pioneering projects like hybrid power and energy storage. How do these technologies improve energy efficiency and lower emissions in industries like cement manufacturing?
Cement industry by its nature has a 24×7 duty cycle demand for electricity. Therefore, solar power by itself can’t be a perfect solution, the sector needs round-the-clock RE. While hybrid RE (a right mix of solar and wind), can help to an extent (better than only solar), we will still have to depend on storage to provide predictable supply of electricity, or what is termed as ‘Firm Dispatchable’ RE. In such cases, storage can be provided either through batteries like Li Ion, Sodium Ion, Metal Air or Pumped Hydro and Long Duration Energy Storage (LDES) mechanisms.
How does HFE address the intermittency issues of renewable energy, ensuring a stable and reliable energy supply to cement plants while minimising emissions?
As explained above, this can be resolved through appending storage solutions. However this needs meticulous assessment of RE power every year, every month, every day, every hour and every time block (15 minutes). Further, one needs to carry out an arduous due diligence process for forecasting solar and wind patterns for 25 years. We, at HFE, have the expertise to do this to a great extent, thereby derisking ourselves and offtakers from such vagaries. Our success in winning eight complex FDRE tenders in the recent past testify to this.
Given that cement is one of the largest contributors to industrial emissions, what potential do you see for technologies like green hydrogen to decarbonise cement production in the coming decade?
We believe that emergence of green hydrogen presents a huge opportunity to decarbonise hard to abate sectors such as cement. Not only green hydrogen, but its derivatives like ammonia and methanol also hold huge potential to mitigate industrial carbon footprint. The cement industry sees huge volumes of CO2 being emitted as a result of limestone processing, which is a crucial process. These can be reused and converted to low carbon methanol. With the government promoting M15, M85, MD15 and M100, the same can be used for quick decarbonisation.
What are HFE’s long-term goals regarding environmental sustainability and emission reduction, and how does the company plan to scale these efforts to help heavy industries achieve their sustainability targets?
At HFE, we are committed to a sustainable and low-carbon future through provision of smart, affordable, clean energy and tech solutions. On the utility front, we are focused on complex, high CUF projects that aim to help overcome the intermittency barrier and pave the way for firm, dispatchable, round the clock green power. For our C&I clients, we offer a complete suite of solutions as their Net Zero partner, evolving from being just an RE provider.
If India is to achieve its Net Zero goal, then industrial decarbonisation must take centrestage and this is the space where we believe HFE can be a major player. We see ourselves as an end to end integrated Net Zero partner for businesses, particularly those in hard to abate sectors like cement, steel, chemicals and mobility, charting out a Net Zero roadmap for them and then guiding them to reach the target in a phased manner.
Concrete
Lohia Corp Expands Global Footprint With Acquisitionof J.j. Jenkins Inc and Strategic Joint Venture With Omgm
Published
1 month agoon
October 22, 2024By
adminLohia Corp Limited (LCL) is pleased to announce two significant milestones that mark our
expansion in the global market.
We have successfully acquired J.J. Jenkins Inc. a respected name in machine manufacturing for
high-tech industries, through our US subsidiary, Leesona Corp, a 130-year-old pioneer in winding
machines. This acquisition aligns perfectly with our strategic vision to expand our specialty yarns
and tapes portfolio in medical and defence applications.
In addition, we have formed a strategic Joint Venture with Italy’s O.M.G.M. sas, leading to the
creation of OMGM Extrusiontechnik Srl. With LCL holding the majority stake. This JV represents
a significant diversification of our product portfolio, introducing solutions in Extrusion and
Winding systems for a variety of technical applications.
These advancements are not just about growth; they’re about bringing cutting-edge solutions to
our customers and contributing to industries that make a difference. Stay tuned for more updates
as we continue to push the boundaries of technology and engineering excellence.
Mr. R K Lohia, Chairman & Managing Director of Lohia Corp Limited, expressed his enthusiasm
about the new ventures “Both these new partnerships are a pivotal move that will broaden our
product offerings and provide our customers with even more choices and will enhance our
presence in the North America and European market, at the same time strengthen our presence
in all other global markets.”
About Lohia Corp Limited
Lohia Corp Limited (LCL) stands as a testament to the power of innovation and commitment to
excellence. As the flagship company of the Lohia Group, LCL has established itself as a global
leader in providing comprehensive solutions for the raffia industry.
With an impressive installation base of over 2,250 extrusion lines and 95,000 Circular Looms
across more than 100 countries, LCL’s influence in the plastic woven fabric and bag sector is
unparalleled. The company’s dedication to quality and efficiency has resulted in an astounding
plastic processing capacity of 7.7 million metric tons per annum of PP & PE.
LCL’s products, ranging from packaging systems for solid bulk materials to roof underlays and
tarpaulins, are not just industrial applications; they are the building blocks of industries
worldwide.
The company’s commitment to sustainability and innovation is the driving force that makes it the
world’s largest producer of machines for the raffia sector. As we look to the future, LCL’s legacy
of excellence is more than just a benchmark; it is a continuous journey towards pushing the
boundaries of possibility.
About J. J. Jenkins, Inc
J. J. Jenkins Inc. is a very respected name based out of North Carolina, USA. They remain at the
forefront of the synthetic fiber and monofilament industries. Their unwavering commitment to
innovation, quality, and customer satisfaction has not only set industry standards but also
fostered enduring partnerships with Fortune 500 companies including some in the medical and
defence industries.
Their holistic approach, combining state-of-the-art technology with unparalleled after-sales
support, exemplifies their dedication to client success. With a vast inventory ensuring rapid
response times, J. J. Jenkins, Inc. is synonymous with reliability and efficiency.
About OMGM sas
Since 1965, OMGM sas is a distinguished Italian leader and has been at the forefront of the plastic
processing industry, pioneering in Monofilament Extrusion, straps, ropes and various other niche
applications. Their commitment to excellence is evident in their advanced technologies and
versatile extrusion lines, handling a variety of materials for diverse industries.
As we look ahead, it’s clear that OMGM Extrusiontechnik Srl will continue to lead and transform
the industry with their precision, innovation, and bespoke solutions. They are more than a
company; they are a trusted partner in progress.