Concrete

Battling costs

Published

3 years ago

March 1, 2022

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Oil is within kissing distance of $120 per barrel as the Russia-Ukraine conflict continues in intensity. Government budgets are disrupted and inflation is knocking on all doors. Despite international economic gyrations, the Indian cement industry’s crusade towards net zero continues at an unabated pace.
Individual players have taken a keen interest and assumed the onus of responsibility of utilising alternative fuel and raw materials as well as greener energy sources. In a promising move, the Government of India has launched the Green Hydrogen policy, which will definitely add to the country’s efforts for net zero carbon emissions by 2070, as it will impact high-on-carbon-emission industries such as the cement sector. The policy entails:
• Waiver of interstate transmission system (ISTS) charges for 25 years for projects commissioned before June 30, 2025.
• Access to renewable energy through State utilities with 30 days of banking facility.
• Priority access to connectivity with the ISTS network.
• Multiple modes for procuring RE for green hydrogen production.

The Hydrogen Policy should make it possible for companies like Reliance Industries to produce blue hydrogen at a ‘competitive cost’ of about $1.2 – $1.5 per kg as it repurposes its $4 billion gasification assets. Reliance will re-purpose a Rs 300 billion plant that currently converts petroleum coke into synthesis gas to produce blue hydrogen for $1.2 – $1.5 per kilo. Hydrogen is labelled blue whenever the carbon generated from steam reforming is captured and stored. Blue hydrogen is, therefore, sometimes referred to as carbon neutral as the emissions are not dispersed in the atmosphere.
Green hydrogen – also referred to as ‘clean hydrogen’ – is produced by using clean energy from renewable energy sources, such as solar or wind power, to split water into two hydrogen atoms and one oxygen atom through a process called electrolysis.
Reliance, which has set a net-zero carbon emission target for its businesses by 2035, is looking at blue hydrogen in the interim period to reduce the cost of green hydrogen. Fossil-based hydrogen costs about $1.80, and the cost of blue hydrogen is estimated at about $2.40 – $3 per kg.
Every discussion on green cement includes how to make optimum use of slag. There has been notable development on that front with the processing of slag to create Ground Granulated Blast Furnace Slag (GGBS).The EDP data sets the global warming potential of GGBS at 60.21 kg CO2 equivalent, which is among the lowest in the industry. In an encouraging development, Tata Steel BSL has exported 9000 tonne of LD slag through the Dhamra Port Company to Bangladesh from its Odisha unit. The company has been involved in sustainable operations for its by-products, including 100 per cent recycling of fly ash, LD slag and blast furnace slag.
Cement has been in the news due to a 3-5 per cent month-on-month price increase in January across India, especially in the southern and eastern parts. Weak demand in the concluding months of 2021 made way for a spurt in demand and prices in January and February. The price jump is also attributed to the recent Russia-Ukraine crisis as it has led to a hike in energy, fuel and logistics costs. Road infrastructure, which has slowed down in current fiscal, is set for an acceleration with a target of 25,000 km next fiscal, and so is housing, as the Government has reiterated its commitment towards Housing for All by allocating `480 billion towards PM Awas Yojana. The challenge is the rising input costs of pet coke and coal amid oil price and logistics disruption. There is no room for cost inefficiency. The battle between growth in revenue and cost will sharpen in days to come.

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True north seeks exit from shree digvijay cement

Published

2 days ago

October 8, 2024

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Private equity firm True North is reportedly exploring an exit from its investment in Shree Digvijay Cement. The firm is considering divesting its entire stake in the cement manufacturer and is in talks with several strategic investors and private equity players for the sale. True North has held its stake in Shree Digvijay Cement since acquiring a majority share in 2019. The exit is part of the firm’s strategy to unlock value after growing the company’s business. Potential buyers may view this as an opportunity to enter the rapidly growing cement sector, driven by India’s booming infrastructure and real estate markets. Shree Digvijay Cement, known for its steady operational performance, could attract considerable interest as the industry faces increased demand.

The sale process is expected to generate significant attention, especially from industry players looking to expand their market share or investors seeking strong returns. As the cement sector plays a vital role in India’s development, the transaction could also lead to consolidation in the industry, further enhancing the competitiveness of large players.

Concrete

JSW cement expands vijayanagar plant capacity

Published

2 days ago

October 8, 2024

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JSW Cement has successfully increased production capacity at its Vijayanagar plant in Karnataka by 2 million tonnes per annum (MTPA). With this addition, the plant’s total production capacity now stands at 6 MTPA. This expansion is a crucial part of JSW Cement’s broader strategy to increase its overall capacity to 25 MTPA by the financial year 2025, strengthening its presence in India’s growing cement market.

The Vijayanagar plant, located near JSW Steel’s facility, benefits from operational synergies, such as efficient raw material procurement and energy use. The expansion will enhance the supply of high-quality cement to meet the increasing demand in Karnataka and the surrounding regions. Additionally, this move aligns with JSW Cement’s focus on sustainability and innovation, as the company continues to adopt eco-friendly practices in cement production.

JSW Cement’s increased capacity is expected to support infrastructure projects in southern and western India, contributing to the country’s booming construction and real estate sectors. As India accelerates its development in urbanization, infrastructure, and housing, the demand for high-performance cement continues to rise, and JSW Cement is positioning itself to cater to this growing need.

This capacity addition at Vijayanagar also emphasizes the company’s commitment to strengthening its supply chain and ensuring timely product delivery while maintaining sustainable practices.

Concrete

Shree cement signs mou with dpiit

Published

2 days ago

October 8, 2024

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Shree Cement has signed a Memorandum of Understanding (MoU) with the Department for Promotion of Industry and Internal Trade (DPIIT) to support startups in India’s manufacturing sector. This collaboration is a strategic initiative aimed at fostering innovation, growth, and sustainable development within the industry. The MoU reflects Shree Cement’s commitment to driving forward the country’s manufacturing capabilities by providing guidance, financial support, and industry expertise to emerging startups.

The initiative aligns with the government’s “Make in India” vision, which encourages domestic manufacturing and aims to build a self-reliant economy. Through this partnership, startups will have access to Shree Cement’s vast industry experience, network, and resources, enabling them to scale their operations and develop innovative solutions. This move is expected to generate new job opportunities, enhance local production, and reduce dependency on imports, strengthening the nation’s industrial ecosystem.

Shree Cement will focus on key areas such as process improvement, technology adoption, and sustainable practices, encouraging startups to introduce eco-friendly and efficient manufacturing solutions. The partnership is also designed to facilitate the use of emerging technologies like artificial intelligence (AI) and machine learning (ML) in manufacturing operations, driving modernization across the sector.

This MoU marks a significant step toward encouraging innovation in the Indian manufacturing landscape, providing a boost to startups while enhancing industry capabilities. With Shree Cement’s support, aspiring entrepreneurs will gain the necessary tools to overcome challenges and contribute meaningfully to the sector’s growth.