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It’s time for an Indian multinational in refractory industry

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Sameer Nagpal, CEO, Dalmia-OCL

How is the overall refractory market growing in India over the past 5 years? What is the future prospect of growth of demand? Please tell us how you segment the refractory market for analysis.
Major consumer of refractories are iron and steel, cement, glass, non-ferrous metals, petrochemicals and hydrocarbons. Growth of the Indian refractory market is directly linked to the growth in these segments. And the impetus that the government is giving to infrastructure development, including low cost housing, augurs well for the refractory industry. Overall, we expect a growth rate of 6 per cent for the industry.

What is the trend of imports of refractory into our country? Are we importing mostly from China or from other countries as well? Are the imports happening because of lower prices or better technology? What are your plans, if any, to substitute these imports? Are you, as an industry body, recommending any hike of import duties to protect the domestic manufacturers?
Thirty per cent of refractories consumed in India is imported, significant quantum of which is from China. The primary driver for these imports is the abundant availability of raw material there, especially magnesite. To that extent, we cannot wish away the role of China and this is also the reason why refractory companies have set up plants in China. However, what we need to do on a war footing is to strengthen the domestic refractory industry.

As the recent raw material crisis in China (due to change in environmental policies forcing raw material plants to shut down) has shown, overdependence on China is not conducive for India in the long run as it can disrupt supply of this critical product needed to make steel and cement. If domestic manufacturing gets a fillip, it will also enable them to source and secure raw material from other countries.

As a member and key player of the Indian refractory industry, we have been asking for support to ‘Make in India’ including cutting down import duties on raw material to 0 per cent.

Talking now specifically about the cement industry, how big is cement industry as a consumer of refractory, vis-a-vis others such steel, fertilisers/chemicals, etc., in the Indian Marketplace? Do you see growth in both projects and replacement demands in cement sector? How can we compare these two different demand segments, in terms of price and quality expectations of customers? What is your view about the future growth possibilities in the cement industry?
The cement industry consumes about 12-15 per cent of the total refractory produced, while steel is the biggest consumer at 65-70 per cent; and other industries make up the rest.

In cement, cycle time (for refractory replacement) typically is 8-12 months (compared to as low as 30 days for certain steel applications) and that constitutes 80-90 per cent of cement refractory demand. With overall cement demand growing at about 6 per cent, new projects, which are very few and far in between, constitute the remainder of refractory demand.

In terms of quality of refractory products, customers generally begin with regular qualities of refractory at project stage and as kiln and production stabilizes they go for higher, value-added products over time.

With the government’s focus on smart cities, housing and other infrastructure projects, the future looks bright for cement industry. India is the world’s second largest cement market, both in production and consumption but lags behind in per capita cement consumption (India average at 200 kg per person v/s world average of 500 kg per person) and therein lies the scope for growth.

Do you observe any major shifts happening in the applications market, such as for example, castables, chrome-free, magnesia, zircon, etc.? What are the latest technology trends in cement kiln refractory in the world, and how is India keeping pace?
As cement demand picks up and capacity utilisation goes up, cement manufacturers want to minimise the down time for replacing refractory lining. This is giving rise to demand for higher performing bricks with higher life and shorter application time. Techniques like gunning and shotcreting using monolithic refractory, which is in powder form and takes shape after being applied, instead of using pre-fired bricks, is also gaining currency.

Also, Indian cement makers use a lot of alternative fuels, which puts tremendous thermochemical pressure on refractory. Hence second or third generation spinels, hybrid refractories are coming up to take care of the increased thermochemical loads. Another trend is the effort towards reduction of thermal losses by introducing energy-saving refractories. New concepts are also coming up on thermal insulation of pyro system.

What are your new product offerings for the cement sector currently, and what are your future plans to introduce new items into the market in near future?
We have formed a joint venture with a leading European refractory company for bringing to India the latest in gunning and shotcreting products. We are setting up India’s most modern monolithic plant in Katni, Madhya Pradesh and we will be in a position to offer best-in-class monolithic refractories to Indian cement industry. Basic bricks is another area where so far refractory consumers had been completely dependent on imports, which leads to longer lead times and large inventory. This is another area where we have made a breakthrough by being the only company to offer ‘Made in India’ basic bricks to India’s cement makers! Availability of these bricks in India will solve the problems of emergency requirements and inventory carrying cost. Further, in the area of basic, chrome-free magnesia-based basic bricks have been developed by us in India. We have also researched and developed zirconia additives for improvement of hot strength of basic products.

Another area our research teams are working on, is reducing thermal losses. We have introduced a range of bricks ‘ALITE’ that has received great encouragement from the market for successfully cutting down thermal losses. Several other new products are in the offing, which are being designed to address production-related challenges of customers.

Given that application of refractory has a great impact on quality of installation, do you directly take part in application work at your customers’ sites, or do you partner with other application service providers?
A good refractory installed badly is as good as a bad refractory. It is in our interest to see that our refractories are properly installed and we take end-to-end responsibility for the materials we supply. We have made investments in equipment and machinery for speedy execution and in systems and processes for correct installation. We have our own installation team and we partner with other installation companies in some cases.

Refractory Products are a classic example where total life cycle cost or TCO should determine purchasing decisions, and not the procurement price per se. This is particularly true for the cement kilns. Do you see the Indian cement plant managers are sensitive to total cost of ownership in making these procurement calls?
Yes, in our experience we have noted that Indian decision makers are sensitised to choosing better quality refractories that offer longer life. The advantage we have over other manufacturers is the full range of products ? from regular high alumina bricks, special quality alumina bricks, basic bricks, monolithic products, etc. which helps us optimise and provide the right solution for our customers.

Now we are working on next stage of optimisation, which will be through remote monitoring of kiln performance but this is still some time away.

If you were to recommend a few actions to be taken by our government in order to help promote growth of the refractory industry, can you please share the top three or four such recommendations with our readers.
The criticality of refractories rests in its function as not a ton of cement or steel can be produced without refractories. Given this criticality of refractories in supporting India’s infrastructure growth vision, we are actively pursuing with the government to support this sector on these key issues:
1)Need to boost local refractory manufacturing;
2)Reduction of duties on raw material import;
3)Enabling mining policies for minor minerals like bauxite, quartzite, magnesite, etc., which are critical refractory raw materials. This will ensure over time that India is not dependent on external factors for raw material;
4)Support to refractory and ceramics R&D to boost local innovation

Is the Indian Refractory manufacturing industry globally competitive? Are we, as a country, able to tap into the global/regional market? More specifically, what is your company’s export performance?
Exports constitute 15 per cent of our revenue, backed by a network of representatives spread across the world. Due to its low-cost and highly skilled workforce, India is a competitive market for refractory manufacturing and is also a sourcing base for Americas and Europe. With India marching ahead as the world’s second largest steel and cement producer, as a country we should also be a leading refractory producer to support these industries.

Indian companies have the wherewithal to emerge as a globally competitive player and that’s why we feel it is time indeed for an Indian multinational to emerge in the refractory industry. At Dalmia-OCL, we are actively pursuing this vision of being a strong global player and looking at acquisitions in Europe to help us build scale and access latest technologies, all of which will come back to support the growth of the Indian cement and steel industry.

Economy & Market

Impactful Branding

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Advertising or branding is never about driving sales. It’s about creating brand awareness and recall. It’s about conveying the core values of your brand to your consumers. In this context, why is branding important for cement companies? As far as the customers are concerned cement is simply cement. It is precisely for this reason that branding, marketing and advertising of cement becomes crucial. Since the customer is unable to differentiate between the shades of grey, the onus of creating this awareness is carried by the brands. That explains the heavy marketing budgets, celebrity-centric commercials, emotion-invoking taglines and campaigns enunciating the many benefits of their offerings.
Marketing strategies of cement companies have undergone gradual transformation owing to the change in consumer behaviour. While TV commercials are high on humour and emotions to establish a fast connect with the customer, social media campaigns are focussed more on capturing the consumer’s attention in an over-crowded virtual world. Branding for cement companies has become a holistic growth strategy with quantifiable results. This has made brands opt for a mix package of traditional and new-age tools, such as social media. However, the hero of every marketing communication is the message, which encapsulates the unique selling points of the product. That after all is crux of the matter here.
While cement companies are effectively using marketing tools to reach out to the consumers, they need to strengthen the four Cs of the branding process – Consumer, Cost, Communication and Convenience. Putting up the right message, at the right time and at the right place for the right kind of customer demographic is of utmost importance in the long run. It is precisely for this reason that regional players are likely to have an upper hand as they rely on local language and cultural references to drive home the point. But modern marketing and branding domain is exponentially growing and it would be an interesting exercise to tabulate and analyse its impact on branding for cement.

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Concrete

Indian cement industry is well known for its energy and natural resource efficiency

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Dr Hitesh Sukhwal, Deputy General Manager – Environment, Udaipur Cement Works Limited (UCWL) takes us through the multifaceted efforts that the company has undertaken to keep emissions in check with the use of alternative sources of energy and carbon capture technology.

Tell us about the policies of your organisation for the betterment of the environment.
Caring for people is one of the core values of our JK Lakshmi Cement Limited. We strongly believe that we all together can make a difference. In all our units, we have taken measures to reduce carbon footprint, emissions and minimise the use of natural resources. Climate change and sustainable development are major global concerns. As a responsible corporate, we are committed with and doing consistent effort small or big to preserve and enrich the environment in and around our area of operations.
As far as environmental policies are concerned, we are committed to comply with all applicable laws, standards and regulations of regulatory bodies pertaining to the environment. We are consistently making efforts to integrate the environmental concerns into the mainstream of the operations. We are giving thrust upon natural resource conservation like limestone, gypsum, water and energy. We are utilising different kinds of alternative fuels and raw materials. Awareness among the employees and local people on environmental concerns is an integral part of our company. We are adopting best environmental practices aligned with sustainable development goals.
Udaipur Cement Works Limited is a subsidiary of the JK Lakshmi Cement Limited. Since its inception, the company is committed towards boosting sustainability through adopting the latest art of technology designs, resource efficient equipment and various in-house innovations. We are giving thrust upon renewable and clean energy sources for our cement manufacturing. Solar Power and Waste Heat Recovery based power are our key ingredients for total power mix.

What impact does cement production have on the environment? Elaborate the major areas affected.
The major environmental concern areas during cement production are air emissions through point and nonpoint sources due to plant operation and emissions from mining operation, from material transport, carbon emissions through process, transit, noise pollution, vibration during mining, natural resource depletion, loss of biodiversity and change in landscape.
India is the second largest cement producer in the world. The Indian cement industry is well known for its energy and natural resource efficiency worldwide. The Indian cement industry is a frontrunner for implementing significant technology measures to ensure a greener future.
The cement industry is an energy intensive and significant contributor to climate change. Cement production contributes greenhouse gases directly and indirectly into the atmosphere through calcination and use of fossil fuels in an energy form. The industry believes in a circular economy by utilising alternative fuels for making cement. Cement companies are focusing on major areas of energy efficiency by adoption of technology measures, clinker substitution by alternative raw material for cement making, alternative fuels and green and clean energy resources. These all efforts are being done towards environment protection and sustainable future.
Nowadays, almost all cement units have a dry manufacturing process for cement production, only a few exceptions where wet manufacturing processes are in operation. In the dry manufacturing process, water is used only for the purpose of machinery cooling, which is recirculated in a closed loop, thus, no polluted water is generated during the dry manufacturing process.
We should also accept the fact that modern life is impossible without cement. However, through state-of-the-art technology and innovations, it is possible to mitigate all kinds of pollution without harm to the environment and human beings.

Tell us about the impact blended cement creates on the environment and emission rate.
Our country started cement production in 1914. However, it was introduced in the year 1904 at a small scale, earlier. Initially, the manufacturing of cement was only for Ordinary Portland Cement (OPC). In the 1980s, the production of blended cement was introduced by replacing fly ash and blast furnace slag. The production of blended cement increased in the growth period and crossed the 50 per cent in the year 2004.
The manufacturing of blended cement results in substantial savings in the thermal and electrical energy consumption as well as saving of natural resources. The overall consumption of raw materials, fossil fuel such as coal, efficient burning and state-of-the-art technology in cement plants have resulted in the gradual reduction of emission of carbon dioxide (CO2). Later, the production of blended cement was increased in manifolds.
If we think about the growth of blended cement in the past few decades, we can understand how much quantity of , (fly ash and slag) consumed and saved natural resources like limestone and fossil fuel, which were anyhow disposed of and harmed the environment. This is the reason it is called green cement. Reduction in the clinker to cement ratio has the second highest emission reduction potential i.e., 37 per cent. The low carbon roadmap for cement industries can be achieved from blended cement. Portland Pozzolana Cement (PPC), Portland Slag Cement (PSC) and Composite Cement are already approved by the National Agency BIS.
As far as kilogram CO2 per ton of cement emission concerns, Portland Slag Cement (PSC) has a larger potential, other than PPC, Composite Cement etc. for carbon emission reduction. BIS approved 60 per cent slag and 35 per cent clinker in composition of PSC. Thus, clinker per centage is quite less in PSC composition compared to other blended cement. The manufacturing of blended cement directly reduces thermal and process emissions, which contribute high in overall emissions from the cement industry, and this cannot be addressed through adoption of energy efficiency measures.
In the coming times, the cement industry must relook for other blended cement options to achieve a low carbon emissions road map. In near future, availability of fly ash and slag in terms of quality and quantity will be reduced due to various government schemes for low carbon initiatives viz. enhance renewable energy sources, waste to energy plants etc.
Further, it is required to increase awareness among consumers, like individual home builders or large infrastructure projects, to adopt greener alternatives viz. PPC and PSC for more sustainable
resource utilisation.

What are the decarbonising efforts taken by your organisation?
India is the world’s second largest cement producer. Rapid growth of big infrastructure, low-cost housing (Pradhan Mantri Awas Yojna), smart cities project and urbanisation will create cement demand in future. Being an energy intensive industry, we are also focusing upon alternative and renewable energy sources for long-term sustainable business growth for cement production.
Presently, our focus is to improve efficiency of zero carbon electricity generation technology such as waste heat recovery power through process optimisation and by adopting technological innovations in WHR power systems. We are also increasing our capacity for WHR based power and solar power in the near future. Right now, we are sourcing about 50 per cent of our power requirement from clean and renewable energy sources i.e., zero carbon electricity generation technology. Usage of alternative fuel during co-processing in the cement manufacturing process is a viable and sustainable option. In our unit, we are utilising alternative raw material and fuel for reducing carbon emissions. We are also looking forward to green logistics for our product transport in nearby areas.
By reducing clinker – cement ratio, increasing production of PPC and PSC cement, utilisation of alternative raw materials like synthetic gypsum/chemical gypsum, Jarosite generated from other process industries, we can reduce carbon emissions from cement manufacturing process. Further, we are looking forward to generating onsite fossil free electricity generation facilities by increasing the capacity of WHR based power and ground mounted solar energy plants.
We can say energy is the prime requirement of the cement industry and renewable energy is one of the major sources, which provides an opportunity to make a clean, safe and infinite source of power which is affordable for the cement industry.

What are the current programmes run by your organisation for re-building the environment and reducing pollution?
We are working in different ways for environmental aspects. As I said, we strongly believe that we all together can make a difference. We focus on every environmental aspect directly / indirectly related to our operation and surroundings.
If we talk about air pollution in operation, every section of the operational unit is well equipped with state-of-the-art technology-based air pollution control equipment (BagHouse and ESP) to mitigate the dust pollution beyond the compliance standard. We use high class standard PTFE glass fibre filter bags in our bag houses. UCWL has installed the DeNOx system (SNCR) for abatement of NOx pollution within norms. The company has installed a 6 MW capacity Waste Heat Recovery based power plant that utilises waste heat of kiln i.e., green and clean energy source. Also, installed a 14.6 MW capacity solar power system in the form of a renewable energy source.
All material transfer points are equipped with a dust extraction system. Material is stored under a covered shed to avoid secondary fugitive dust emission sources. Finished product is stored in silos. Water spraying system are mounted with material handling point. Road vacuum sweeping machine deployed for housekeeping of paved area.
In mining, have deployed wet drill machine for drilling bore holes. Controlled blasting is carried out with optimum charge using Air Decking Technique with wooden spacers and non-electric detonator (NONEL) for control of noise, fly rock, vibration, and dust emission. No secondary blasting is being done. The boulders are broken by hydraulic rock breaker. Moreover, instead of road transport, we installed Overland Belt Conveying system for crushed limestone transport from mine lease area to cement plant. Thus omit an insignificant amount of greenhouse gas emissions due to material transport, which is otherwise emitted from combustion of fossil fuel in the transport system. All point emission sources (stacks) are well equipped with online continuous emission monitoring system (OCEMS) for measuring parameters like PM, SO2 and NOx for 24×7. OCEMS data are interfaced with SPCB and CPCB servers.
The company has done considerable work upon water conservation and certified at 2.76 times water positive. We installed a digital water flow metre for each abstraction point and digital ground water level recorder for measuring ground water level 24×7. All digital metres and level recorders are monitored by an in-house designed IoT based dashboard. Through this live dashboard, we can assess the impact of rainwater harvesting (RWH) and ground water monitoring.
All points of domestic sewage are well connected with Sewage Treatment Plant (STP) and treated water is being utilised in industrial cooling purposes, green belt development and in dust suppression. Effluent Treatment Plant (ETP) installed for mine’s workshop. Treated water is reused in washing activity. The unit maintains Zero Liquid Discharge (ZLD).
Our unit has done extensive plantations of native and pollution tolerant species in industrial premises and mine lease areas. Moreover, we are not confined to our industrial boundary for plantation. We organised seedling distribution camps in our surrounding areas. We involve our stakeholders, too, for our plantation drive. UCWL has also extended its services under Corporate Social Responsibility for betterment of the environment in its surrounding. We conduct awareness programs for employees and stakeholders. We have banned Single Use Plastic (SUP) in our premises. In our industrial township, we have implemented a solid waste management system for our all households, guest house and bachelor hostel. A complete process of segregated waste (dry and wet) door to door collection systems is well established.

Tell us about the efforts taken by your organisation to better the environment in and around the manufacturing unit.
UCWL has invested capital in various environmental management and protection projects like installed DeNOx (SNCR) system, strengthening green belt development in and out of industrial premises, installed high class pollution control equipment, ground-mounted solar power plant etc.
The company has taken up various energy conservation projects like, installed VFD to reduce power consumption, improve efficiency of WHR power generation by installing additional economiser tubes and AI-based process optimisation systems. Further, we are going to increase WHR power generation capacity under our upcoming expansion project. UCWL promotes rainwater harvesting for augmentation of the ground water resource. Various scientifically based WHR structures are installed in plant premises and mine lease areas. About 80 per cent of present water requirement is being fulfilled by harvested rainwater sourced from Mine’s Pit. We are also looking forward towards green transport (CNG/LNG based), which will drastically reduce carbon footprint.
We are proud to say that JK Lakshmi Cement Limited has a strong leadership and vision for developing an eco-conscious and sustainable role model of our cement business. The company was a pioneer among cement industries of India, which had installed the DeNOx (SNCR) system in its cement plant.

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Concrete

NTPC selects Carbon Clean and Green Power for carbon capture facility

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Carbon Clean and Green Power International Pvt. Ltd has been chosen by NTPC Energy Technology Research Alliance (NETRA) to establish the carbon capture facility at NTPC Vindhyachal. This facility, which will use a modified tertiary amine to absorb CO2 from the power plant’s flue gas, is intended to capture 20 tonnes of CO2) per day. A catalytic hydrogenation method will eventually be used to mix the CO2 with hydrogen to create 10 tonnes of methanol each day. For NTPC, capturing CO2 from coal-fired power plant flue gas and turning it into methanol is a key area that has the potential to open up new business prospects and revenue streams.

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