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Technology should be used along with traditional safety protocols

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Kanishk Khanna, CEO, Elion Technologies and Consulting, sheds light on the auditing of safety and compliance procedures at cement plants.

Tell us about your process of auditing a cement plant for its safety and compliance.
The process of auditing a cement plant for safety and compliance typically involves several steps, including:

  • Planning: The auditor will develop an audit plan that outlines the scope of the audit, the areas that will be evaluated and the resources that will be needed.
  • Preparation: The auditor will gather information about the cement plant, including its
  • operations, safety procedures and any relevant regulatory requirements.
  • On-site assessment: The auditor will visit the plant and conduct a thorough examination of the facility, including inspecting equipment
  • and machinery, observing operations and interviewing employees.
  • Documentation review: The auditor will review the plant’s safety records and documentation, including training records, incident reports and safety inspection records.
  • Reporting: The auditor will prepare a report that summarises the findings of the audit and makes recommendations for improvements to the plant’s safety and compliance.
  • Follow-up: The auditor will follow up with the plant management to ensure that any issues identified during the audit are addressed and to verify that the recommended improvements have been implemented.

What is the importance of safety audits?
Safety audits are important for several reasons:

  • Compliance: Safety audits help ensure that a facility is meeting all relevant safety regulations and standards, which can help prevent fines, penalties and legal action.
  • Risk management: Audits help identify potential safety hazards and risks, which can be addressed before they lead to accidents or injuries.
  • Continuous improvement: Safety audits can help identify areas where a facility can improve its safety practices and procedures, which can lead to a safer work environment and fewer incidents over time.
  • Reputation management: Having a good safety record can help to improve a company’s reputation and can attract customers, investors and employees.
  • Legal and insurance: Safety audits can help reduce the risk of legal action and insurance claims, which can also save a company money in the long run.

Overall, safety audits are an essential tool for maintaining a safe and compliant workplace, protecting employees and ensuring that a company is meeting its legal and moral obligations to provide a safe
work environment.

How often do you conduct cement plant safety audits? What is the recommended timeline?
In general, it is a good practice to conduct safety audits at least once a year, but some companies may choose to conduct them more frequently. Cement plants possess multiple hazards so it is also important to conduct safety audits following any significant changes to the facility or its operations, such as new equipment or processes or after any incidents
or accidents.
Annual Safety Audits are also mandatory as per factory rules. For these audits, the rules vary from state to state.

What role does data and technology play in ensuring plant safety?
Data and technology can play an important role in ensuring plant safety by providing real-time monitoring, analysis and reporting capabilities that can help to identify and address potential hazards before they lead to accidents or injuries. However, it’s important to keep in mind that technology should be used along with traditional safety protocols and procedures, and the companies should have a well-structured plan on how to use these technologies.

Tell us about the key safety concerns you have observed at cement plants.
Cement plants have many safety concerns due to the nature of the materials and processes involved. The major hazards exist not only during running operation but also during the shutdown activities. The major hazards/incidents that have been identified include accidents in heavy machinery and equipment.
Explosions and fires have occurred especially in the mining area. Cement plants have many areas that are classified as confined spaces, and employees working in these areas are at risk of suffocation or other hazards. This needs special attention especially during the shutdown.

It is also important to ensure proper Job Safety Analysis, Training and PPE for the works being performed specially for the mechanical works.
It’s important for cement plant management to ensure that all safety concerns are addressed and to implement safety protocols and procedures to protect employees and the environment. Regular safety audits and inspections, employee training, and proper maintenance of equipment are some ways to mitigate these safety concerns.

What safety equipment do you recommend Indian cement plants to use?
Few examples of safety equipment that may be recommended for use in Indian cement plants:

  • Respirators and dust masks: To protect employees from inhaling dust and particulate matter.
  • Earplugs or earmuffs: To protect employees from excessive noise levels.
  • Fire extinguishers and fire suppression systems: To protect against explosions and fires.
  • Personal protective equipment (PPE): Hard hats, safety glasses, gloves, and steel-toed boots help protect employees from accidents and injuries.
  • Confined space equipment: Harnesses, ladders and gas monitors to help protect employees who are working in confined spaces.
  • Emergency eyewash and shower stations: To provide quick and easy access to emergency treatment in case of chemical spills or exposure.
  • Safety signs and labels: To help identify potential hazards and provide instructions for safe operation of equipment and machinery.
  • Traffic safety equipment: Traffic cones, barriers and warning lights help to protect employees and visitors from vehicle and traffic hazards.
  • Slips, trips and fall protection equipment: Non-slip mats, handrails, and guardrails help to protect employees from slips, trips and falls.

It is important to note that these are just examples of safety equipment that may be recommended for use in Indian cement plants, and the specific equipment required will depend on the layout and operations of the specific plant.

Tell us about the key challenges in safety audits and how can the cement industry help you overcome the same?
Safety audits require a significant investment of time and money, and some companies are not willing to provide the resources to conduct them on a regular basis. At many times the staff on the field feels like an audit is a fault finding procedure and tries to suppress the facts. The industry can invest in safety audits by providing the necessary funding and personnel. The audit activity should be given importance and management should encourage the site staff to proactively participate in the audit activities.

-Kanika Mathur

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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