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Total Fuel Management with Biodiesel

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Gaurav Mathur, CEO, Global Technical Services, Mumbai, explores the avenue of greener fuel alternatives such as Biodiesel to reduce greenhouse gas emissions.

Saving the environment is our primary concern today and there is a need to reduce the consumption of petroleum products which lead to Global Warming. The combustion of petroleum diesel leads to emissions hence the usage of greener alternatives like Biodiesel will help reduce the greenhouse gases.
Biodiesel, a replacement for diesel fuel, is for use in diesel engines. It is manufactured from plant oils, animal fats or recycled cooking oil. The manufacturing process converts oils and fats into fatty acid methyl esters called FAME or Biodiesel.

Biodiesel benefits

  1. Renewable: The ratio of energy in fuel to the units of non- renewable energy used to produce it is about 5.5 :1 (Source: University of Idaho).
  2. Higher cetane number: For biodiesels, the cetane number is generally between 46 to 60 higher than that of diesel fuel which is 40-45
  3. Except NOx all other emissions are lower.
  4. Non-toxic
  5. Environmentally friendly: Use of Biodiesel instead of diesel reduces greenhouse emissions over 80 per cent.
  6. Fuel lubricity: Provides lubricity to the fuel injection system reducing friction and wear.

Total Fuel Management Services
Total Fuel Management services are for companies that need increased accuracy, accountability, security or productivity from their assets. It is normal for TFM implementers to achieve fluid reconciliation rates in excess of 99.5 per cent. It consists of hardware, controllers, and software, which are implemented as a integrated package. TFM is ideal for mines and industries including vehicle fleets/haulage, construction, ports, and non-hydrocarbon applications such as chemical supply and liquid food production.
The TFM services provided include:
• Storage, handling and dispensing
• Filtration for incoming diesel fuel receipts to remove sludge ad dirt
• Sourcing of Biodiesel (B100): optional
• Conditioning of B100 and blended fuel
• Testing of B100 and blended fuel for
quality assurance
• Storage facility and management for B100
• Equipment for blending, conditioning, dispensing and accounting
• Fuel performance booster: additives, antioxidants and biocides for storage stability

adoption of Biodiesel
The Biodiesel adoption in the country is more in the industrial or organised sector. It has been largely used by pharma and FMCG companies where diesel was used as a burner fuel. However, it is still a very small percentage of the HSD used. The usage is mostly B 20, however some of them, especially in the transport sector have tried B100 with some reports of filter clogging etc. However these may be attributed to the quality of B100 used as this varies with different manufacturers. The adoption may be less than 0.25 per cent of the total fuel consumed.

global usage of biodiesel
We are at a very early stage of Biodiesel adoption, compared to Europe and USA, where they
have more organised organisations and well
defined specifications to guide the users with support from OEMs.
In December 2020, greener alternatives like biodiesel itself produced a record production of 610 million litres in USA becoming the largest producer of biofuel in the world. India targets to produce 200 million litres of biodiesel (2021).

Global biofuel forecast
Mining, construction, transport, railways and auxiliary power generations would be industries that shall be major biodiesel end-users in India and would offer vast potential to the biofuel markets in years to come.
In mining, cement and metal mining would take the lead due to increasing sensitivity
on sustainability.

Attribute Details
Market size volume in FY2021 0.17 million Tons
Market size volume in FY2030 0.26 million Tons
Growth Rate CAGR of 8.60 per cent from FY2021 to FY2030

Construction and mining equipment sector
Sustainability should be the prime reason for implementing the usage of biodiesel, we all in the Industrial world are obliged to be sensitive to the environment and bring down the pollution levels. This is largely supported by usage of biodiesel. In absence of a clear mandate from environmental agencies, the adaptation of Biodiesel Is primarily taken as an initiative to reduce fuel cost. There should be another way, there should be incentives to the users by the agencies to adopt cleaner and green fuels such as Biodiesel. OMC’s are blending B100 with HSD , to a very small degree, yet it’s a long way to reach where we can be sustainable.
Although the intention of adaptability is good, the acceptability is in question due to fear arising out of Biodiesel quality and limited knowledge among the industry.
Supply of genuine Biodiesel is very difficult, with very few organised promoters of Biodiesel, the challenge is the supply of consistent quality
and quantity that is required by the heavy off highway machinery.

Growth prospects of biodiesel fuelled machines
The outlook is very positive for usage in terms of environmental benefits however environmental agencies strict legislation is the requirement. If the economic benefits on fuel costs is the only reason for moving to green fuels, then the adaptation shall be slow as presently one cannot define cost saving due to price variation of B100.
The key is consistency in quality and quantity, hence no single manufacturer can be identified as a sole vendor of fuel. What is needed is an
OMC or a fuel management company to take care of consistency of quality and quantity. The
future of B100 is very positive with increasing corporates and multinationals wanting to be sustainable, and OEM’s partnering in manufacturing and supporting Clean Green Fuel. The adoption of B100 in the retail market will take time due to regulatory issues.

Global Technical Services
Global Technical Services has been responsible for introducing Total Lubrication Management by implementing best lubrication practices to save millions of losses arising on account of premature failures. Core industries such as cement, mining and metals processing have hugely benefited by implementing TLM Adaptation to Clean Green Fuels is the need of the hour, already a lot of damage has been done by mankind and mother earth is already damaged to a large extent.
GTS is offering value added services to core industry where by three pillars of combustion are addressed and taken care of :
● Cleaner fuel results in better combustion. Thus, cleaning fuel and removal of all physical impurities from the diesel.
● Blending of Biodiesel with quality HSD for greener combustion.
● Quantity accounting, recording equipment wise fuel consumption, by installing WRAVI (Wireless RFID Automatic Vehicle Identification System).

Concrete

Construction Costs Rise 11% in 2024, Driven by Labour Expenses

Cement Prices Decline 15%, But Labour Costs Surge by 25%

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The cost of construction in India increased by 11% over the past year, primarily driven by a 25% rise in labour expenses, according to Colliers India. While prices of key materials like cement dropped by 15% and steel saw a marginal 1% decrease, the surge in labour costs stretched construction budgets across sectors.

“Labour, which constitutes over a quarter of construction costs, has seen significant inflation due to the demand for skilled workers and associated training and compliance costs,” said Badal Yagnik, CEO of Colliers India.

The residential segment experienced the sharpest cost escalation due to a growing focus on quality construction and demand for gated communities. Meanwhile, commercial and industrial real estate remained resilient, with 37 million square feet of office space and 22 million square feet of warehousing space completed in the first nine months of 2024.

“Despite rising costs, investments in automation and training are helping developers address manpower challenges and streamline project timelines,” said Vimal Nadar, senior director at Colliers India.

With labour costs continuing to influence overall construction expenses, developers are exploring strategies to optimize operations and mitigate rising costs.

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Concrete

Swiss Steel to Cut 800 Jobs

Job cuts due to weak demand

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Swiss Steel has announced plans to cut 800 jobs as part of a restructuring effort, triggered by weak demand in the global steel market. The company, a major player in the European steel industry, cited an ongoing slowdown in demand as the primary reason behind the workforce reduction. These job cuts are expected to impact various departments across its operations, including production and administrative functions.

The steel industry has been facing significant challenges due to reduced demand from key sectors such as construction and automotive manufacturing. Additionally, the broader economic slowdown in Europe, coupled with rising energy costs, has further strained the profitability of steel producers like Swiss Steel. In response to these conditions, the company has decided to streamline its operations to ensure long-term sustainability.

Swiss Steel’s decision to cut jobs is part of a broader trend in the steel industry, where companies are adjusting to volatile market conditions. The move is aimed at reducing operational costs and improving efficiency, but it highlights the continuing pressures faced by the manufacturing sector amid uncertain global economic conditions.

The layoffs are expected to occur across Swiss Steel’s production facilities and corporate offices, as the company focuses on consolidating its workforce. Despite these cuts, Swiss Steel plans to continue its efforts to innovate and adapt to market demands, with an emphasis on high-value, specialty steel products.

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Concrete

UltraTech Cement to raise Rs 3,000 crore via NCDs to boost financial flexibility

UltraTech reported a 36% year-on-year (YoY) decline in net profit, dropping to Rs 825 crore

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UltraTech Cement, the Aditya Birla Group’s flagship company, has announced plans to raise up to Rs 3,000 crore through the private placement of non-convertible debentures (NCDs) in one or more tranches. The move aims to strengthen the company’s financial position amid increasing competition in the cement sector.

UltraTech’s finance committee has approved the issuance of rupee-denominated, unsecured, redeemable, and listed NCDs. The company has experienced strong stock performance, with its share price rising 22% over the past year, boosting its market capitalization to approximately Rs 3.1 lakh crore.

For Q2 FY2025, UltraTech reported a 36% year-on-year (YoY) decline in net profit, dropping to Rs 825 crore, below analyst expectations. Revenue for the quarter also fell 2% YoY to Rs 15,635 crore, and EBITDA margins contracted by 300 basis points. Despite this, the company saw a 3% increase in domestic sales volume, supported by lower energy costs.

In a strategic move, UltraTech invested Rs 3,954 crore for a 32.7% equity stake in India Cements, further solidifying its position in South India. UltraTech holds an 11% market share in the region, while competitor Adani holds 6%. UltraTech also secured $500 million through a sustainability-linked loan, underscoring its focus on sustainable growth driven by infrastructure and housing demand.

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