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Structural health assessment

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In the matter of preventive maintenance, it is extremely necessary to carry out periodic inspections by a technically competent team of consultants with the requisite manpower and NDT set- up, writes Chetan R Raikar.

God has created many creatures in this universe and all of them need periodic health check- ups and over-hauls for the betterment and longevity of their remaining life. Similarly, mankind has built many facilities and structures in this world to help people. Equally, these structures too need to be checked and over-hauled for their long life and consistent performance.

The industrial structures are different from residential / commercial structures in several ways. Firstly, the stress levels on industrial structures are substantially higher compared to that of other categories. Some of the structures like the conveyor belt supporting system, silos, chimneys, are even subjected to reversals of stresses several times a day. Such structures are subject to fatigue much sooner than others.

The next concern is that the span of industrial structures are much longer compared to their counterparts put to other types of use. Industrial structures are subjected to varying stress levels during each day, every day.

In most cases, the maintenance is considered a a cost and never a necessity. All shut-downs are designed to suit the convenience of the mechanical/ process engineers and civil maintenance is given virtually no priority. Some organisations don’t consider civil maintenance a necessity at all, and suffer mishaps like the collapse of structures and loss of manpower and production time associated with the same.

Industrial structures, particularly in the cement industry, are highly stressed structures and need periodic inspection prior to routine maintenance. It is commercially not viable for any cement plant to employ an in-house inspection team.

External consultants with a proven track record are therefore, hired to carry out inspection of structures for either preventive maintenance or specific distress assessment.

There are records of organisations having smartly invested in such preventive maintenance activities. This pays rich dividends, both tangible and intangible to all the stakeholders. Advantages Preventive maintenance inspections totally avoid any mishap / accident of civil structures.

Brings down the cost of maintenance considerably.

Helps avoid loss of production as it prevents breakdowns.

Reduces the shut-down time as most minor maintenance works are carried out even without a shut-down and in a planned manner.

Any distress observed in a civil structure is controlled at the nascent stage, thus avoiding higher costs later.

Several types of damage are observed in industrial structures, like leakage, seepage, corrosion, tilting, buckling, sagging, deflection, etc. Most of the structures are designed efficiently, reducing the factor of safety to a bare minimum to curb costs at the time of construction. Quality is always given second preference to achieve the completion target. Hence, managementis always inclined to start the production as soon as possible to get the ROI started.

Original Construction Deficiencies (OCD) is something seen often by our teams during inspections for health assessments of industrial structures. Original poor quality means early maintenance / repairs.

Inspection for health assessment needs trained manpower and several non -destructive testing (NDT) instruments. Some simple and basic types include the Schmidt rebound hammer, Ultrasonic pulse velocity and coring. Some of the advanced instruments which are almost a necessity for such inspections include radar, infra- red thermography camera, endoscope, petrography and in-situ air and water permeability apparatus like permit and autoclam.

Not many organisations invest in these expensive instruments, which need superior technical training and competence to use. Great amount of information / data can be accumulated by using these instruments, and inference from this data can save millions for the owner.

Incomplete or inadequate level of inspection proves substantially more expensive in the long run. We have been involved in collapse investigations of some structures which were certified by a structural engineer just a few days prior to the collapse. This is a clear indication that the selection process deployed to engage an inspection agency was faulty and the client paid heavily for selecting the cheapest ( and not the best ) consultant for the job.

Some of the specialised equipment proves cost- effective as they eliminate the necessity of scaffolding in many cases for the taller structures, which is a huge cost otherwise, for visual inspection and carrying out the NDT.

It is therefore, extremely necessary to carry out periodic inspections for preventive maintenance by a technically competent team of consultants with the requisite manpower & NDT set- up.

This investment of money and effort pays rich dividends of both a tangible and intangible type to all the stake- holders and proves to be a wise decision in both the short and long term.

Chetan R Raikar, Chairman & Managing Director, Structwel.

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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…

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.

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