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Use of SCMs can be optimised with technology

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RS Kabra, Executive Vice President – Commercial, Wonder Cement, talks about the impact on profitability of the cement business and quality of the end product.

Tell us about the supplementary cementitious materials used by your organisation in manufacturing of cement.
The major cementitious materials used in India are fly ash and blast furnace slag. Fly ash is generated in huge volumes mainly in coal based thermal power plants and is a major hazard to the environment across the country. Slag is generated in the blast furnace of steel manufacturing plants.
We utilise fly ash as supplementary cementitious material in the manufacturing of Portland Pozzolana Cement (PPC) at all of our cement plants, as the plants are situated nearby thermal plants. With the use of fly ash as a SCM, besides contributing to environmentally friendly disposal of fly ash, we are also contributing in reduction of CO2 emission by reducing the use of thermal heat and electricity. This also leads to conserving natural mineral resources of limestone.
Blast furnace slag, another important supplementary cementitious material, is a by-product of the steel making process. The use of slag as a supplementary cementitious material is also well established in manufacturing of cement, specially in cement
plants which are located near steel plants. Our cement plants are not located near any steel plant; thus, at present we do not use slag as a supplementary cementitious material.

What are the key benefits of using supplementary cementitious materials?
The most important benefits of using SCMs in manufacturing of cement is environmentally
friendly disposal of these hazardous materials and a significant reduction in CO2 emission by savings in thermal heat, electricity, and conserving natural resources (limestone).
Substituting a cementitious material in the raw mix for cement manufacturing helps us in conserving natural minerals (limestone), thermal heat (coal), and electricity.

How does the use of supplementary materials increase the profitability of the cement manufacturing for your organisation?
Use of supplementary cementitious materials has a direct impact on the profitability of cement manufacturing companies as replacing natural limestone by SCMs results in reduced requirement of thermal heat, electricity etc.

What is the proportion of supplementary cementitious materials in the production of cement by your organisation?
The Bureau of Indian Standards guidelines permits the use of supplementary cementitious materials up to 35 per cent in PPC cement, accordingly at Wonder Cement we use up to 35 per cent fly ash in the manufacturing of Portland Pozzolana Cement.

Tell us about the quality standards and checks implemented for the final product made using supplementary materials.
In terms of quality, the end product, PPC manufactured by Wonder Cement is always substantially higher than the quality standard prescribed by the Bureau of Indian Standards (BIS) and also higher than most of the other brands of cement available in the market.
This high standard of quality of PPC manufactured by us is possible because of the adoption of the best available technology in the world, including automatic sampling, automatic testing and based on test results, automatic corrective actions, etc. There is absolutely no scope for manual errors or manual dependency in the process of cement manufacturing at WCL.
Tell us about the role of technology in deciding the proportions of SCMs.
Technology plays a very important role in producing quality cement as well as optimum use of SCMs. The processes of automatic sampling, automatic testing and automatic corrective actions play a major role in maintaining the quality of cement as well as optimum use of SCMs.

What are the major challenges you face while using supplementary materials for cement manufacturing?
There is availability of the latest technology, advanced equipment, and continuous use of technology rather than human dependency. Therefore, we do not see any challenge in using supplementary cementitious materials.

How does the use of cement made of supplementary materials impact its carbon footprint?
Fly ash is a supplementary cementitious material and is being used as part replacement of clinker in the raw mix for the production of PPC. Reduction in the use of clinker directly results in the reduction of the use of thermal heat and electricity, required in the manufacturing of clinker. The reduced use of clinker also results in conserving the natural mineral limestone as well as the energy consumed in mining the limestone.

  • Kanika Mathur

Concrete

Lower sales realization impacts margins for cement makers in Q2 FY25

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

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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.

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Concrete

Steel companies face Rs 89,000 crore inventory crisis

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

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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.

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Concrete

JSW and POSCO collaborate for steel plant

JSW Group and POSCO ink MoU for steel project.

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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.

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