Concrete

In India, the use of alternative fuel is at a very nascent stage

Published

2 years ago

November 18, 2022

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Ganesh W Jirkuntwar, Senior Executive Director & National Manufacturing Head, Dalmia Cement (Bharat) Limited, analyses the effects of raw materials on emission and efforts taken by his company to conserve the environment.

Tell us about the efforts taken by your organisation to better the environment in and around the manufacturing unit.
Our company has taken a number of efforts to better the environment in order to maximise the proportion of blended cement in our product basket, promote the usage of alternative supplementary cementitious materials recommended by IS for cement and increase the usage of alternative fuels.
We have also installed the appropriate systems to co-process wastes judiciously and follow a pre-processing system for alternative fuels. We have implemented a waste heat recovery system and are now able to tap into solar energy.

How does the use of environmentally friendly fuels or raw materials impact the profitability of the organisation?
Dalmia Bharat Limited follows the business philosophy of ‘Clean & Green is Profitable and Sustainable.’ By using environmentally friendly fuel and raw materials, we have managed to create an impact on our triple bottom line: social, environmental as well as financial performance. A proper strategy for selection and adopting environment-friendly initiatives that act as fuel and raw materials is expected to significantly boost the organisation’s profitability.
Large volumes of legacy municipal waste are available at various municipal dump sites, that can be converted to Refuse Derived Fuel (RDF) and can be used by Indian cement Industries. Cement industries are currently facing a tough time due to the steep rise in fuel prices. The usage of RDF and other alternative fuels will help the cement industry in optimising its fuel cost.

Tell us about the types of blended cement and their composition manufactured by your organisation. How does the strength of blended cement differ from OPC?
At Dalmia Cement (Bharat) Limited, we manufacture PPC, PCC and PSC as blended cements. The composition of blended cements is decided strictly in accordance with BIS norms.
The overall strength of blended cement is comparable with OPC 43 Grade. However, Indian Specification (IS) recommends that blended cement should meet the strength Norms of OPC 33 Grade.

What are the key supplementary materials used to manufacture blended cement?
The key supplementary materials used to manufacture blended cement are pulverised fuel ash, known as flyash, and granulated slag.

Tell us about the impact blended cement creates on the environment.
Blended cement has higher durability and better resistance towards the aggressive environment of chloride and sulphate. Additionally, less clinker is being consumed to produce the same volume of cement, resulting in raw materials savings, energy savings (thermal and electrical), reduced CO2 emission and waste utilisation.

How does the use of alternative fuels impact the productivity and efficiency of the manufacturing process?
The use of alternative fuels leads to a marginal increase in overall heat consumption. In case a preheater fan and other equipment are being used at their full capacity, usage of alternative fuels may result in a marginal reduction of clinker throughput.

What role does technology play in creating blends that help curb emissions and make the environment better?
Technology helps reduce CO2 emission as a result of low clinker consumption in blended cement compared to non-blended cement.

What are the major challenges your organisation is facing to curb the emission rate?
Although cement manufacturing is an energy-intensive process, during clinker manufacturing, the emission of process CO2 is inevitable. The only way to curb the emission significantly as of now helps replace fossil fuels with alternative fuels.
The major challenges in increasing the usage of alternative fuels include adopting RDF which is the only alternative fuel and is available in large volumes. However, the quality of RDF being supplied in India is very poor and inconsistent. Additionally, high ash content and moisture in RDF restrict the higher usage of RDF.
In India, the use of alternative fuel is at a very nascent stage and cement players need to invest in R&D on understanding its impact on cement and corrective actions

How do you foresee the future of emissions created by the cement industry?
The cement industry is putting in unrelenting efforts to reduce the Cement Clinker Ratio (CC Ratio), higher usage of alternative fuels and increased the usage of renewable energy. This will reflect in their carbon footprint figure in the next few years. We expect that, in a few years, newer technological adoption such as carbon capture, green hydrogen usage, rotodynamic heater etc. will also decide the future of emissions by cement industries.

-Kanika Mathur

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Concrete

Lower sales realization impacts margins for cement makers in Q2 FY25

The industry encountered several challenges, including an extended monsoon season.

Published

2 days ago

November 6, 2024

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Major cement manufacturers reported a decline in margins for the September quarter, primarily due to lower prices, which led to decreased sales realization.

With the exception of three leading cement producers—UltraTech Cement, Ambuja Cement, and Dalmia Bharat—smaller companies, including Nuvoco Vistas Corp, JK Cement, Birla Corporation, and Heidelberg Cement, experienced a drop in both topline and sales volume during the second quarter of the current fiscal year.

The industry encountered several challenges, including an extended monsoon season, flooding, and a slow recovery in government demand, all contributing to weak overall demand.

Despite these challenges, power, fuel, and other costs largely remained stable across the industry. The all-India average cement price was approximately Rs 348 per 50 kg bag in June 2024, which represented an 11 per cent year-on-year decrease to Rs 330 per bag in September, although it saw a month-on-month increase of 2 per cent.

In the first half of FY25, cement prices declined by 10 per cent year-on-year, settling at Rs 330 per bag. This decline was notable compared to the previous year’s average prices of Rs 365 per bag and Rs 375 per bag in FY23, as reported by Icra.

Leading cement manufacturer UltraTech reported a capacity utilization rate of 68 per cent, with a 3 per cent growth in volume. However, its sales realization for grey cement declined by 8.4 per cent year-on-year and 2.9 per cent quarter-on-quarter during the July-September period.

In response to a query regarding cement prices during the earnings call, UltraTech’s CFO Atul Daga indicated that there had been an improvement in prices from August to September and noted that prices remained steady from September to October. He mentioned that the prices had risen from Rs 347 in August to approximately Rs 354 currently.

Concrete

Steel companies face Rs 89,000 crore inventory crisis

Steel firms grapple with Rs 89,000 crore stockpile amid import surge.

Published

3 days ago

November 5, 2024

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Steel companies in India are facing a significant challenge as they contend with an inventory crisis valued at approximately Rs 89,000 crore. This situation has arisen due to a notable increase in steel imports, which has put pressure on domestic producers struggling to maintain sales in a competitive market.

The surge in imports has been fueled by various factors, including fluctuations in global steel prices and increased production capacities in exporting countries. As a result, domestic steel manufacturers have found it difficult to compete, leading to rising stock levels of unsold products. This inventory buildup has forced several companies to reassess their production strategies and pricing models.

The financial impact of this inventory crisis is profound, affecting cash flows and profitability for many steel firms. With domestic demand remaining volatile, the pressure to reduce prices has increased, further complicating the situation for manufacturers who are already grappling with elevated production costs.

Industry experts are urging policymakers to consider measures that can support local steel producers, such as imposing tariffs on imports or enhancing trade regulations. This would help to protect the domestic market and ensure that Indian steel companies can compete more effectively.

As the steel sector navigates these challenges, stakeholders are closely monitoring the situation, hoping for a turnaround that can stabilize the market and restore confidence among investors. The current dynamics emphasize the need for a robust strategy to bolster domestic production and mitigate the risks associated with excessive imports.

Concrete

JSW and POSCO collaborate for steel plant

JSW Group and POSCO ink MoU for steel project.

Published

3 days ago

November 5, 2024

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JSW Group has signed a Memorandum of Understanding (MoU) with South Korea’s POSCO Group to develop an integrated steel plant in India. This collaboration aims to enhance India’s steel production capacity and contribute to the country’s growing manufacturing sector.

The agreement was formalized during a recent meeting between executives from both companies, highlighting their commitment to sustainable development and technological innovation in the steel industry. The planned facility will incorporate advanced manufacturing processes and adhere to environmentally friendly practices, aligning with global standards for sustainability.

JSW Group, a leader in the Indian steel industry, has expressed confidence that the joint venture with POSCO will bolster its position in the market and accelerate growth. The project is expected to attract significant investments, generating thousands of jobs in the region and contributing to local economies.

As India aims to boost its steel output to meet domestic demand and support infrastructure projects, this partnership signifies a crucial step toward achieving those goals. Both companies are committed to leveraging their expertise to develop a state-of-the-art facility that will produce high-quality steel products while minimizing environmental impact.

This initiative also reflects the increasing collaboration between Indian and international firms to enhance industrial capabilities and foster economic growth. The MoU sets the stage for a promising future in the Indian steel sector, emphasizing innovation and sustainability as key drivers of success.