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Proactive Maintenance

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Gaurav Mathur, Director and Chief Executive, Global Technical Services, discusses the importance of an on-site oil testing laboratory within industrial plants for improved safety, extended equipment life and cost effectiveness in the manufacturing sector.

Oil condition monitoring can provide important information about the condition of the machine through oil analysis. Lubricant in any machine is like blood in the human body. Just as a blood test can help a doctor diagnose an illness and inform a treatment plan, similarly an oil analysis can provide an effective way to know the machine condition and inform it to take maintenance decisions.
Once the oil test laboratory is within the plant, the test reports are made available to the machine maintenance team within a timeline of 48 hours. Timely action helps reduce the expensive mechanical maintenance costs and improves machine life and productivity, leading to the plant’s profitability.
Normally, the oil testing laboratories are far away from the plant. They are mostly in a different city, and these laboratories provide test reports after 10 to 15 days. However, those reports are of no use in machine maintenance as mechanical damage starts to set in within 48 hours in any machine. Hence, it is important to have an on-site oil test laboratory within the plant.
Oil condition monitoring, covering moisture (water presence in the oil), particle contamination, wear debris analysis or loss of additives level, etc. are the parameters that clearly bring out any machine’s internal condition. This reporting leads to timely maintenance decisions by the mechanical team. These reports also help improve the reliability of the machine being tested.
Thus, an oil testing laboratory within the plant site is instrumental in greatly improving the value of machine life and reducing a major cost of mechanical maintenance. These improvements and cost reductions in turn lead to cost savings, profitability and enhance efficiency in manufacturing.

OIL ANALYSIS AT SITE LABORATORY
Oil analysis is an important activity used to check oil health, oil contamination, oil cleanliness level, and machine wear. Its main purpose is to verify that a lubricant in the machine is operating with the oil in good condition i.e. the oil is free from any contamination due to continued usage in the machine over a period of time.
An on-site oil testing laboratory helps to form a system for early detection of oil degradation, contamination, and machine wear. Early detection has several benefits that ensure a healthier environment for the employees and the machinery, such as improved safety, early detection and warning of machine degradation, and increased equipment availability and effectiveness.
Once the oil testing laboratory is established within the plant, thereafter, the next step is to prepare department-wise, machine-wise oil testing schedules. These schedules ensure that there is periodic oil testing and subsequent corrective measures can be taken by the mechanical team. This kind of reporting and availability of the
on-site laboratory leads to a more proactive mechanical maintenance.
Almost 82 per cent of wear-related failures are the direct result of particle contamination.
It is a well-known fact that lubricating oils in a machine never dies. Once the contaminants are removed and the oil cleaned to its original level, the oil can be made as good as ‘new’. Hence, a good oil filtration and accurate additives treatment at site assumes considerable importance in ‘oil conservation’ in the industry. By conducting the above activity about 40 per cent to 50 per cent conservation of the lubricant oil can be achieved.
Hence, having a site condition monitoring laboratory not only improves the life of the machines, it also reduces mechanical maintenance costs and can bring a large economic change in the cement manufacturing sector. Besides, oil can also be recycled to its original level. Thus, having an on-site oil testing laboratory is paramount important and profitable for all large industries.

Concrete

NCLT approves Burnpur Cement’s capital reduction scheme

The move aims to optimise the capital structure of the company.

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The National Company Law Tribunal (NCLT), Kolkata, has approved Burnpur Cement Limited’s scheme for the reduction of capital, as outlined in an exchange filing by the company. The petition was filed under Section 66 of the Companies Act, 2013, in accordance with the National Company Law Tribunal (Procedure for Reduction of Share Capital of Companies) Rules, 2016.

The approved scheme involves reducing the company’s issued, subscribed, and paid-up equity share capital from Rs 86.12 crore, divided into 8,61,24,363 equity shares of Rs 10 each, to Rs 17.22 crore, divided into 1,72,24,873 equity shares of Rs 10 each, fully paid-up. The move aims to optimise the capital structure of the company.

The NCLT order specifies that the capital reduction will not affect any ongoing actions by government or regulatory authorities related to violations of any laws in force. Burnpur Cement is expected to file the certified copy of the order with the Registrar of Companies (RoC) in e-form INC-28.

The bench hearing the matter included D. Arvind (Technical Member) and Bidisha Banerjee (Judicial Member).

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Cement manufacturers report margin decline in September quarter amid lower prices

The all-India average cement price saw a year-on-year decline of 11%

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Cement manufacturers have reported a decline in margins during the September quarter, primarily due to lower prices, which led to reduced sales realization. Smaller companies such as Nuvoco Vistas Corp, JK Cement, Birla Corporation, and Heidelberg Cement experienced a drop in both topline and sales volume. However, leading players like UltraTech Cement, Ambuja Cement, and Dalmia Bharat performed better, primarily due to several recent acquisitions that have bolstered their market position.

The industry faced challenges, including an extended monsoon, floods, and slow government demand, all of which contributed to weak market conditions. Despite these challenges, power, fuel, and other operational costs remained stable.

In terms of pricing, the all-India average cement price saw a year-on-year decline of 11% from ₹348 per 50 kg bag in June 2024 to ₹330 per bag in September, although it rose by 2% month-on-month. In FY25, the average cement price saw a 10% year-on-year reduction, down from ₹365 per bag in FY24.

UltraTech Cement reported a 68% capacity utilization and a 3% growth in sales volume, despite an 8.4% year-on-year decline in sales realization for grey cement. Similarly, Ambuja Cements saw a 9% increase in sales volume, reaching 14.2 million tonnes, but its EBITDA was 15% lower year-on-year at ₹1,074 crore due to lower price realizations.

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JK Lakshmi Cement Posts Loss

JK Lakshmi Cement records ?19.24 crore loss.

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JK Lakshmi Cement reported a net loss of ?19.24 crore for the second quarter of FY25, reversing the previous year’s profits. The cement giant faced a challenging period, with rising input costs and subdued demand in certain markets impacting its financial performance. The company also noted a decline in sales volumes during the quarter, which further contributed to the loss.

Despite the tough quarter, the company remains optimistic about its long-term prospects, citing the ongoing demand for infrastructure development and the potential for recovery in key regions. The management is focusing on cost optimization strategies and exploring new markets to overcome the current challenges.

The net loss marks a significant deviation from the company’s usual profit trajectory, raising questions about the impact of macroeconomic factors and inflationary pressures on the cement sector as a whole. With raw material costs and transportation expenses climbing, the company is grappling with maintaining margins while trying to sustain its market position.

JK Lakshmi Cement’s management is working to boost operational efficiency and improve financial health in the coming quarters. Analysts are keenly observing whether the company will rebound in the second half of the fiscal year, as infrastructure projects and government spending are expected to provide support to the industry.

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