Energy Digital Magazine - November 2018

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WELLS FARGO

A clean tech future

A FORCE FOR GOOD IN THE AUTOMOTIVE SECTOR

Otosan’s General Manager, Haydar Yenigün, on sustainability in the car market

NO V E MBE R 2 0 18

Sustainable growth ICE TALKS GLOBAL DEVELOPMENT

WIND POWER GENERATION PARTNERING FOR GROWTH

TOP 10

Sector trends with Mott MacDonald

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WELCOME

W

elcome to the November issue of Energy Digital magazine.

This month’s cover feature focuses on car manufacturer Ford Otosan’s drive to create ‘new and sustainable ways to move’ in Turkey’s burgeoning automotive market, where around 1.75mn vehicles are rolled out annually.

Laura Mullan spoke to General Manager, Haydar Yenigün about the company’s growth to become an export leader in the country, where it has achieved $4.9bn export revenues.

Meanwhile, we caught up with US federal researcher NREL and banking behemoth Wells Fargo to discuss their joint IN2 innovation incubator, which provides much-needed capital but also research and development facilities for the clean-tech startups of the future. They shared their most exciting sustainability projects with us from energy storage to smart building solutions.

We also spoke to Lord Robert Mair, President of the Institution of Civil Engineers (ICE) following the successful Global Engineering Conference, about how engineering can help contribute toward the UN’s Sustainable Development Goals.

We have also brought you the latest 05 news and insight from business leaders within our company profiles – do not miss our features on Terracon and Aditya Birla Group.

For this month’s Top 10, we’re already looking forward to 2019 as Guy Doyle, Chief Economist for Energy & Carbon at global consultancy Mott MacDonald, outlines the key trends he expects for the energy sector next year.

We hope you enjoy the magazine, and as always, we welcome your feedback on Twitter: @EnergyDigital Enjoy the issue!

Olivia Minnock. olivia.minnock@bizclikmedia.com w w w. e n e r g y d i g i t a l . c o m

CONTENTS

10 A FORCE FOR GOOD IN THE AUTOMOTIVE SECTOR

26 38 Wells Fargo and NREL innovate for a clean tech future

UNITING ENGINEERING FOR SUSTAINABLE DEVELOPMENT

Top 10

sector trends for 2019

50 64 Events

MARKET LEADERS IN THE EVOLVING ENERGY SPACE

68

Terracon

84 Aditya Birla Textiles

Innovat ion: the golden thread that ties Aditya Birla Textiles together

10

A FORCE FOR GOOD IN THE AUTOMOTIVE SECTOR WRIT TEN BY

L AUR A MULL AN PRODUCED BY

JOSH S TE VENS

EUROPE

11

FORD OTOSAN

MAKING ITS MARK AS BOTH AN AUTOMOTIVE AND MOBILITY COMPANY, FORD OTOSAN’S STRATEGY ISN’T JUST ABOUT SELLING MORE CARS, IT’S ABOUT CREATING NEW AND SUSTAINABLE WAYS TO MOVE

I

t seems that nothing is putting the brakes on Turkey’s burgeoning automotive sector. In 2017, the nation’s vehicle production reached an all-time

high, with the country rolling out approximately 1.75mn vehicles according to the Turkish Automotive Manufacturers Association. Leading the pack, Ford Otosan has vowed to forge a sustainable path in the automotive industry by cham12

pioning leading manufacturing practices and environmental standards.

Owned equally by Ford Motor Company and Koç Holding, Ford Otosan describes itself as the region’s ‘export champion’ and it’s clear to see why. With a production capacity of 440,000 commercial vehicles, 75,000 engines and 140,000 powertrains, the firm stands as the largest commercial vehicle production centre of Ford vehicles in Europe.

Today, by tapping into the expertise of its parent companies, Ford Otosan hopes to tackle some of the biggest questions facing the automotive sector, which have arisen as a result of urbanisation, climate change and demographic changes.

ONWARDS AND UPWARDS: SUSTAINABLE, PROFITABLE GROW In its latest sustainability report, Ford Otosan said that 2017 had been ‘full of success and record-breaking NOVEMBER 2018

EUROPE

13

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FORD OTOSAN

CLICK TO WATCH : ‘A FORD STORY BIR’

14

practices’. The firm not only preserved

The firm’s financial figures make for

its place in Borsa Istanbul’s Sustainabil-

impressive reading but, keen not to

ity Index but has also been included in

be complacent, Ford Otosan has now

the ‘FTSE4Good developing Markets

developed a strategy to keep up this

Index’, an internationally-renowned index

sustainable growth.

in responsible investment. This view is

Digitisation forms a key part of this

clearly echoed by Ford Otosan’s General

plan and, in light of this, Ford Otosan

Manager, Haydar Yenigün.

has increasingly invested in technology

“In 2017, we maintained our position

to create the so-called ‘future of mobility.’

as the leader in commercial vehicles

With extra funding allocated to data

as our market share rose to 30.3%,”

analytics, cybersecurity, coding and

Yenigün explains. “We also became the

more, Yenigün says the firm is adapting

export leader of Turkey once again,

to Industry 4.0 and cementing its

achieving $4.9bn in export revenues.”

leadership in the sector.

NOVEMBER 2018

EUROPE

“One of our projects, the most important perhaps, has been the company’s digital platform transformation,” he says. “This involves moving everything that the company has created to a digital platform and managing all future innovation and business opportunities on this platform.”

“ SUSTAINABLE MOBILITY SOLUTIONS ARE NOT ONLY THE MOST IMPORTANT COMPONENT OF SMART CITIES, THEY ALSO CAN MAKE A BIG DIFFERENCE BY MAKING PEOPLE’S LIVES EASIER”

In a similar vein, Ford Otosan has also used technology to transform the customer experience of sale and after-sale inter-

Haydar Yenigün, General Manager at Ford Otosan 15

E X E C U T I V E P R OF IL E

Haydar Yenigün Haydar Yenigün graduated from Yıldız Technical University in Mechanical Engineering and joined Ford Otosan in 1987. He got the opportunity to serve in different departments in production and worked as a Project Engineer between 1992 and 1996. He continued serving in different positions during the establishment of the Kocaeli Plant after the shares of Ford Motor Company and Otosan A.S. were equalised in 1997. He became Project Leader in 1998. He was appointed as Ford Otosan General Manager and became a Member of the Board of Directors on 15 February 2012.

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FORD OTOSAN

$6.9bn Approximate revenue

1959

Year founded

10,000 Approximate number of employees

EUROPE

17 actions. In a project known as iDEAL,

capabilities. Yenigün says that the firm

the company has developed an app that

now boasts the largest technology and

supports the development of its dealers

R&D base in the Turkish automotive

in areas such as digitisation, employee

market.

improvement, customer satisfaction and institutionalisation. “As a result of the

SCALING UP LOW-EMISSION VEHICLES

app, the rate of returns for sales has

Climate change is perhaps one of the

improved by 60% through data analytics,”

greatest challenges facing the automo-

notes Yenigün. “We have also achieved

tive sector and Ford Otosan has taken

an additional turnover of US$15mn in

up the fight. As a result, the company

after-sale processes. Our goal is to

is striving to deliver fuel efficiency and

fully roll-out the platform by 2019.” On

reduce its emissions by developing

top of this, the automotive giant has

cutting-edge engines, transmission

also invested heavily in its R&D

boxes, electronic systems and more.

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FORD OTOSAN

FACTS

• With a production capacity of 440,000 commercial vehicles, 75,000 engines and 140,000 powertrains, Ford Otosan is the largest commercial vehicle production centre of Ford vehicles in Europe • Ford Otosan is one of the top three exporting companies from Turkey since 2005.

18

NOVEMBER 2018

EUROPE

“Along with the growing sharing economy in the automotive industry, autonomous and electric vehicles are paving the way towards a strong trend of change,” observes Yenigün.

“At Ford Otosan, thanks to the vision of both Koç Holding and Ford, we have been able to start these activities much earlier.

“Our partner Ford is working on smart mobility, electric and autonomous vehicles, taking firm and quick steps,” he continues.

“With an investment of $11bn, Ford aims to develop 40 hybrid and electric vehicles by 2022 and we are happy to report that one of these — the Ford Custom — is manufactured in Turkey.”

Alongside 11 other peers, Ford Otosan has also given a helping hand to the optiTruck project, which aims to reduce the greenhouse gas emissions of heavy commercial vehicles.

The prototype, Yenigün adds, is planned to be over 20% more efficient than the Euro 6 standard heavy commercial vehicle.

SMART MOBILITY, SMART CITIES According to a new report by Grand View Research, the global smart cities market is forecast to reach $2.57trn by 2025 and it seems that Ford Otosan hasn’t neglected this booming market. Through its ‘City of

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19

FORD OTOSAN

20

“ ALONG WITH THE GROWING SHARING ECONOMY IN THE AUTOMOTIVE INDUSTRY, AUTONOMOUS AND ELECTRIC VEHICLES ARE PAVING THE WAY TOWARDS A STRONG TREND OF CHANGE”

Tomorrow’ vision, the company is embarking on internal entrepreneurship projects that aim to support smart mobility solutions.

“We are working on the development of safe, efficient, life-enhancing and low-emission transportation models and we’re also aiming to ensure the sustainable

Haydar Yenigün, General Manager at Ford Otosan

production of these technologies for the smart cities of the future,” comments Yenigün.

“Sustainable mobility solutions are not only the most important

NOVEMBER 2018

EUROPE

CLICK TO WATCH : ‘FORD TRUCKS – IAA HANNOVER COMMERCIAL VEHICLES FAIR – LIVE STREAM’

component of smart cities, they also can

the app uses a smart algorithm to

make a big difference by making

predict future traffic density as well

people’s lives easier. To this end, our

as the total cost of trips and emission

goal is to contribute to sustainable

values. So far, the tool has been down-

solutions by working on vehicles with

loaded by 233,000 users with the

low emissions and smart technologies.

company aiming to reach 475,000

Besides this, we are also working with

users by the end of 2019. In doing so,

governmental organisations to make

the firm hopes to confine urban

city life more liveable.”

congestion to history.

One such project that hopes to support smart city initiatives is Easy

INVESTING IN PEOPLE

Route, a mobile app created by Ford

Ford Otosan’s sustainability efforts

Otosan. Providing up-to-date traffic

aren’t just restricted to environmental

news, traffic forecasts and navigation,

issues or technology; the company w w w.e ne rgydi gi ta l. com

21

FORD OTOSAN

22

NOVEMBER 2018

EUROPE

is also keen to promote an inclusive workforce in the belief that its diversity is its strength. Just two years awgo, for instance, Ford Otosan appointed the industry’s first female Chief Digital Officer, Hayriye Karadeniz. Today, the automotive company hires around 1,700 female employees, a 30% increase compared to 2015, and Yenigün is keen to keep up this momentum.

He says: “One of the biggest problems facing the business world is the discrimination experienced by women during recruitment. Our goal is to employ one woman for every two candidates in our selection and placement process.”

Ending last year on a record-high, Ford Otosan’s vision for the future is a simple one: to become the most valuable and more preferred industrial company in Turkey. With its environmentally and socially conscious ethos, it seems that this goal is well within its grasp.

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LEADERSHIP

26

Wells Fargo and NREL innovate for a clean tech future Through IN2, Wells Fargo and NREL work to get clean tech startups through the financial ‘valley of death’ in bringing their ideas to market WRITTEN BY

OLIVIA MINNOCK

NOVEMBER 2018

27

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LEADERSHIP

W

ells Fargo has teamed up with NREL

(National Renewable Energy Laboratory) to form the Wells Fargo Innov-

ation Incubator (IN2), an incubator for clean tech startups. We caught up with Ramsay Huntley, VP,

Clean Technology and Innovation at Wells Fargo, and Trish Cozart, IN2 Program Manager at NREL, to find out how they offer startups much more than just funding.

Wells Fargo, a long-standing US financial institution with $1.9trn in assets with 262,000 staff across 37 countries and territories, has long been committed to sustainability. Its own 2020 goals 28

range from philanthropy to sustainable financing and promoting a recognition that climate change must be addressed. “Right now, we’ve exceeded our own carbon reduction goals,” explains Ramsay Huntley, citing the firm’s 45% reduction achieved more than two years ahead of schedule. “We’re now evaluating what the next steps are.”

Those next steps include broadening the bank’s sector-wide approach, following a commitment in April to provide $200bn in financing to sustainable businesses and projects by 2030 – with 50% focused on clean technology and renewable energy transactions to support the transition to a low carbon economy, as well as investment in agriculture and waste management. “We see that there are a variety of ways to work in this space.

You can support existing businesses – our $200bn NOVEMBER 2018

29

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LEADERSHIP

30

commitment speaks to that,” says Huntley. “But there’s also an imperative that we innovate, particularly in the clean tech space where companies are dealing with energy related issues and emission reduction.”

Wells Fargo was quick to recognise what Huntley describes as a proverbial ‘valley of death’ between good ideas that are needed in the energy space, and the financing necessary for a viable business to grow and operate at scale.

To help bridge this gap, the bank partnered with the federal National Renewable Energy Laboratory (NREL) in 2014 to create the Wells Fargo Innovation Incubator, or IN2, a mammoth $30mn NOVEMBER 2018

“ Wells Fargo Foundation has a strong focus on sustainability and goals of accelerating a greener economy, while NREL has a mission to advance science, and integrate and optimise systems” — Trish Cozart, Program Manager, NREL

CLICK TO WATCH : ‘WELLS FARGO INNOVATION INCUBATOR (IN2)’ 31 clean tech program funded through the

Wells Fargo’s essential capital and

philanthropic Wells Fargo Foundation.

sizeable building portfolio, to give

The partnership, according to NREL’s

early-stage businesses non-dilutive

Trish Cozart, was a natural fit. “We had

grants, assistance for technology

complementary assets and shared

development, design and validation,

goals,” she explains. “Wells Fargo Foun-

and networking with various organisa-

dation has a strong focus on sustain-

tions. Thus, it enables clean tech start-

ability and ambitions of accelerating

ups to get off the ground and maximise

a greener economy, while NREL has

their contribution to energy efficiency

a mission to advance science, and

in commercial buildings.

integrate and optimise systems.” IN2

A noble goal, but with ‘clean tech’

can therefore bring together what

such a broad term, how does IN2 narrow

Cozart refers to as a ‘unique blend of

the focus and develop viable business

resources’, from NREL’s world-class

opportunities? Cozart admits that

facilities and expert researchers to

clean tech can be “anything that reducw w w.e ne rgydi gi ta l. com

LEADERSHIP

32

es negative environmental impact…

In order to find the most viable comp-

when I think of clean tech, I think of

anies that can make the most out of

using resources to their largest pote-

all IN2 has to offer, a stringent pipeline

ntial. From an energy perspective, this

process has been developed. Compa-

can apply to a great many types of

nies are suggested by IN2’s Channel

technologies, from alternative types

Partners – made up of over 40 clean-

of energy production to waste reco-

tech and sustainability-focused incuba-

very or efficient use of energy sources

tors, accelerators and universities –

and storage. We’re looking for compa-

which choose the best and brightest

nies that fit that mold – not any particu-

business to apply.

lar type, but they must fit in with our

Once Channel Partners have refe-

theme which at the moment is focused

rred a number of companies, there

on commercial buildings.”

follows a three-step board selection

NOVEMBER 2018

process over a number of months.

Subsequently, the technical board finds out the needs of the tech companies to ascertain whether IN2 would be beneficial to them. After this, the Wells Fargo Board of Directors narrows down its selections and an advisory board made up of external industry

“Companies get real world testing with a commercial entity like ourselves, and we can then provide a potential reference for them to say ‘this is how it worked for Wells Fargo’ when engaging with investors” — Ramsay Huntley, VP, Wells Fargo

experts makes the final choice. “Our selection decisions are focused on looking at the technology gaps, the potential for the biggest energy impact they have, and the ones that have been w w w.e ne rgydi gi ta l. com

33

LEADERSHIP C OMPA N Y INF OR M AT ION

Out of the incubator…

We asked Trish Cozart which projects within the IN2 incubator she was most excited about and she gave us an insight into some of her favourites.

34

Go Electric provides integrated grid solutions for uninterruptible power, energy storage and efficiency, and automated energy asset synchronisation and optimisation. The company utilises technology to ensure continuous power to commercial buildings.

“We gave Go Electric the opportunity to simulate all types of grid outages and more comprehensive scenarios than they would have otherwise had access to… this whole process really sped up their validation and ability to make tweaks, and got them to market faster. We’re really excited about their opportunity in the market,” says Cozart. www.goelectricinc.com

NOVEMBER 2018

NETenergy is a thermal energy storage (TES) company which has created a thermal battery to store energy, helping large buildings control cooling costs.

“I think energy storage is becoming a big part of the emerging energy story,” says Cozart. “NREL’s knowledge of tech validation, as well as knowledge of leaders in the industry, helped NETenergy make key connections with leading original equipment manufacturers (OEMs), where their product has been tested and applied outside of the lab.” www.netenergytes.com

ignored by the investment community because of that technology barrier to

J2 innovations works to combine the core functionality of a building automation system (BAS) for connecting and controlling devices with the added benefits of a building operation sstem (BOS) to manage and leverage data. This makes the most of connectivity to reduce energy impact on the built environment. J2 Innovations has now been acquired by Siemens.

“NREL helped J2 establish a virtual building that they could connect to, and then run tests. This allowed them to refine their product really quickly, and at the same time refine their value proposition to the end user,” says Cozart.• www.j2inn.com

entry,” Cozart explains.

COMMERCIALISING ‘CLEAN’ As much as we’d like to believe investors are going to part with hard-earned cash from sheer goodwill, the truth is that projects must be financially viable and visibly beneficial – this is where IN2 comes in, with a keen awareness of the challenges faced by early-stage ventures. “Companies have to find the right industry connections and have to prove their product’s better than what’s being used by current or conventional methods.

They have to prove their product will help a customer’s bottom line,” says Cozart.

In addition, the kind of solutions IN2 focuses on – like energy storage – are often hardware-centric. “There’s a perceived bias amongst a lot of investors towards softer tech,” says Huntley. “So, a challenge we’re trying to address at IN2 is how to support the hard tech – particularly when it costs time and money to be able to validate and support that effort and scale up those solutions.”

In bridging the proverbial valley of death, IN2 offers support where it’s needed most. Of the $250,000 in non-dilutw w w.e ne rgydi gi ta l. com

35

LEADERSHIP

ed funding IN2 awards to successful companies, $200,000 goes toward technical assistance and around $50,000 goes toward cash for the company to cover its own expenses related to their project. More importantly, with this comes a team of experts and facilities offered by NREL. “Are there universities that have that capability?

Perhaps,” says Huntley. “But it’s often quite difficult to work with them because their research is already 36

pre-defined.” NREL, meanwhile, has the flexibility to work with companies toward their clean energy goals and business plans.

“We support pre-commercial beta demonstrations on our facilities for technologies that make sense,” Huntley continues. “Companies get real world testing with a commercial entity like ourselves, and we can then provide a potential reference for them to say ‘this is how it worked for Wells Fargo’ when engaging with investors.”

It’s clear that something special is going on at IN2, but how does the team plan to build on their unique platform?

In 2017, IN2 held a summit of stakeholdNOVEMBER 2018

ers to discuss the future. “What came out of that was that IN2 would like to explore incubating companies in a similar fashion in the areas of food, energy and water, as well as transportation and mobility systems and residential buildings,” says Cozart.

“We’re really excited about this at Wells Fargo,” Huntley adds. “As a major agricultural lender, the food, energy and water space is very relevant to what we do commercially.” More widely, the banking behemoth will continue to strive for sustainability both within and outside its innovation incubator, from deploying ‘green teams’ within its offices to educate staff on environmental issues to releasing regular CSR reports to engage investors.

“Wells Fargo over the past few years has been the investor behind roughly 10% of all the renewable energy developed in the US, so we’re a major player in that space. I see it as really important that we continue to educate companies and partners, and they we’re playing a really important role within the economy in that way,” he concludes.

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37

TECHNOLOGY

38

UNITING ENGINEERING FOR SUSTAINABLE DEVELOPMENT Following October’s Global Engineering Congress 2018, Professor Lord Robert Mair, President of ICE, discusses what engineering can do to support energy efficiency, combat climate change and align with the UN’s Sustainable Development Goals.

WRITTEN BY

NOVEMBER 2018

OLIVIA MINNOCK

39

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TECHNOLOGY

Can you tell us about your engineering experience and why climate change is so important to you?

Throughout my career, both in industry and in academia, I have looked at the challenges facing society and tried to help find solutions, ultimately to meet people’s needs. Civil engineering provides many of the things people need every day, such as clean water and energy supplies. The things that we build provide the foundations for development throughout the world. I assumed the role of President at ICE to support the continued transformation of infrastructure and of people’s lives.

Having spent many years leading academic 40

research, it was impossible to ignore the weight of scientific evidence that climate change is taking place. It will have an unprecedented impact on people, including some of the most vulnerable communities in the world.

Civil engineering can deliver practical solutions to tackling climate change, such as ensuring resilient and clean energy generation and building sustainable cities.

How does ICE’s work support the UN’s Sustainable Development Goals?

As the professional membership body for the civil engineering profession – with over 92,000 members around the world – our role is quite simply to support civil engineers and engineering technicians to be the best they can be.

NOVEMBER 2018

41

“ Sustainable development is the fundamental challenge facing our generation, and the engineering profession has a clear role to play. Engineering and infrastructure underpin society, and the decisions we make as a profession will help to determine society’s future” — Professor Lord Robert Mair, President, ICE w w w.e ne rgydi gi ta l. com

TECHNOLOGY

Sustainable development is the fund-

42

amental challenge facing our generation, and the engineering profession has a clear role to play. Engineering and infrastructure underpin society, and the decisions we make as a profession will help to determine society’s future.

ICE is focusing on the five UN Sustainable Development Goals (SDGs) where engineers can make the most immediate impact: clean water and sanitation; affordable and clean energy; industry, innovation and infrastructure; sustainable cities and communities; and climate action.

I see our role as threefold: we must inspire, that is, engage the profession NOVEMBER 2018

CLICK TO WATCH : ‘REALISE YOUR POTENTIAL: BECOME PROFESSIONALLY QUALIFIED’ 43 on how engineering contributes to

relevant to our profession, we will also

sustainable development; we must supp-

lay the foundation for progress across

ort engineers with the skills and evid-

all the goals. Infrastructure provision

ence to help create change; and we

enables the achievement of social

must act to translate the SDGs into an

and economic goals, leading to better

engineering-specific plan on how we

quality of life and reduced inequality.

as a profession can reach these goals.

Regarding education and gender equality specifically, engineers have to

Are there any other SDGs ICE can support, perhaps less directly, such as health and wellbeing or gender equality?

tackle these issues within the context

The SDGs are interlinked and interde-

early education. I’m therefore especially

pendent. By helping engineers to deliver

proud of ICE’s work with the UK Gover-

progress on the SDGs most obviously

nment’s Year of Engineering campaign,

of our profession. It’s no secret that engineering could be more diverse, and this starts at a very young age in

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TECHNOLOGY

“Civil engineering can deliver the practical solutions to tackling climate change, such as ensuring resilient and clean energy generation and building sustainable cities” — Professor Lord Robert Mair, President, ICE 44 the WISE Campaign and the Women’s

against the UN’s SDGs. Over the next

Engineering Society to help inspire

two years, we will build a practical plan

the next generation, especially young

that will enable the global engineering

women and other under-represented

profession to act collectively.

groups, to join the profession and

partners from across the world to create

With the aims of spurring practical action on climate change, water, energy, infrastructure and city design, why was it important to have such a variety of attendees at the 2018 Global Engineering Congress?

an engineering sustainability develop-

Sustainable development is ultimately

ment route-map. The input from Global

a global challenge, and the challenges

Engineering Congress delegates will help

that we are working on, such as climate

to set out a pathway to deliver real change

change, do not stop at national borders.

make a difference.

Is it important to form partnerships in order to reach ICE’s ambitious goals?

ICE will be working with like-minded

NOVEMBER 2018

45 We see it as essential to bring the global engineering community together – to share experience, as well as ensuring we as a profession are united in the same direction.

The congress this year featured a special cities stream, in partnership with 100 Resilient Cities, as cities are at the heart of many of the challenges facing society. For example, cities account for between 60 and 80% of the energy consumed on earth but occupy just 3% of the land. By 2030, 60% of the world’s population will be in urban areas but already 800mn live in slum conditions. w w w.e ne rgydi gi ta l. com

TECHNOLOGY

How important was technology at this year’s congress?

Technology and innovation in engineering are essential for tackling the UN’s SDGs, increasing the capabilities of industries and prompting the development of new skills. These will lead to better practical solutions for the issues we face today.

The Global Engineering Congress offered multiple sessions dedicated to exploring the role of technology, 46

including smart transportation, robotics and artificial intelligence and digital connectivity.

Do you think the engineering community is taking climate change as seriously as it should?

Absolutely, but I believe there are two challenges. The first is dealing with the sense of scale – working on major infrastructure projects such as Thames Tideaway, then its relatively straightforward to understand the impact such a project will have on sanitation in London. The trickier area is smaller scale projects, the real ‘bread and butter’ of

NOVEMBER 2018

civil engineering. Take the decision to use a green roof on a building project.

Such a decision will make a difference to the environmental impact of that building, but it’s when that decision is made in combination with thousands of others that we see the real potential.

The second challenge is measurement, as the quality of contribution matters as much as quantity. We know from our own research that 90% of engineers want to be able to clearly measure the impact of projects on sustainable development, but only a third of firms in the sector feel that they are able to do so right now. Discussing how we measure progress and what that data means for future engineering projects was a highlight of GEC.

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JOIN THE NO.1 POWER AND ENERGY CONFERENCE AND EXPO IN NIGERIA AND WEST AFRICA Market and promote your brand to over 2000 senior power sector stakeholders Opportunity to positively position and differentiate yourself as a market leader, and in the process creating and enhancing relationships with key stakeholders in the Nigerian Power sector Present your ideas and solutions to an eager audience at the Generation Knowledge Hub and Revenue Cycle Management and Metering Conference

13 – 14 NOVEMBER 2018 Eko Hotel & Suites, Lagos, Nigeria

The Nigerian Electricity Regulatory Agency (NERC) much anticipated

ELECTRICITY METER REGULATION is expected to bridge the metering gap and support the market’s liquidity

Only half of the

7.48 MILLION electricity customers have prepaid meters. Huge meter roll out expected

Nigeria has the 7TH LARGEST NATURAL GAS RESERVE IN THE WORLD and significant

AFDB approves

US $100 MILLION

opportunities exist in supplying the infrastructure required

for the rehabilitation of the hydro plants to increase available capacity to 1,338.4 MW

USAID SUPPORTS RENEWABLE ENERGY DEVELOPMENT The United States Agency for International Development (USAID) has announced a grant commitment of $767,512 to support the development of renewable energy in Nigeria

US $1.9 MILLION grant signed by AfDB and the West Africa Power Pool for the Nigeria-Benin Interconnector Reinforcement Project

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www.future-energy-nigeria.com

T O P 10

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NOVEMBER 2018

Top 10

sector trends for 2019 Guy Doyle, Chief Economist for Energy & Carbon at global consultancy Mott MacDonald, outlines the 10 key trends to watch out for in the energy sector next year WRITTEN BY

GUY DOYLE

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T O P 10

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10

Corporate power purchase agreements for renewables Already a hot topic, this trend is likely to be stimulated especially in the UK if the Contracts for Difference programme stalls. That said, major corporates may be reluctant to commit to long term power purchase agreements in an uncertain economic world.

NOVEMBER 2018

09

53

Overall system architect The increase in the number of parties becoming active players in the electricity and more general energy market, the ever-present cyber threat and the tendency for complex system interfaces to breakdown is leading to renewed calls for the establishment of an energy system architect as proposed by the Institution of Engineering & Technology and National Grid. The system architect would provide a central oversight and co-ordinating body that would address the issues arising from complexity in the system. Whether the UK government acts on such calls which may be seen as addressing long-term issues, will depend on its ability to free time and resources for such matters.

www.theiet.org

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08

Tariff rebalancing There is a view among European regulators and host utilities that electricity, and to a lesser extent gas, tariff structures are not cost reflective and that there needs to be a shift away from incremental energy per unit charges towards fixed-capacity fees. This is part of a wider debate about tariff structures, including the role of timeof-use rates for energy and capacity and shifting fixed charges to a regular insurance premium, which are largely unavoidable without full grid defection.

NOVEMBER 2018

55

07

New nuclear developments Commissioning of three Chinese pebble bed modular reactors and further tests on Toshiba’s radical E-Vinci reactor could see increasing interest in small modular reactors. Meanwhile, rumours abound that deals may be close for the UK’s GW-scale projects, led by CGN at Bradwell and Hitachi at Wylfa, backed by large equity stakes by Chinese and Japanese governments respectively, and both with matched equity from UK Government.

www.en.cgnpc.com.cn

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06

Floating wind Early days of Equinor (previously Statoil)’s Hywind floating wind turbines indicates that floating wind may be a viable option, building on trials in Japan and Norway. The industry will be watching Hywind as it builds out to a full scale 380MW.

NOVEMBER 2018

05

Concerns about interconnectors Two further interconnectors to Europe will be commissioned in 2019, increasing UK interconnector capacity from 4GW to 6GW. A further five interconnector projects totalling 5.7GW are also in the development phase, which would double capacity again by 2023 if all reach financial close. The latest tranche is all backed by the cap and floor support mechanism crafted by Ofgem and the European Commission. Several industry voices are arguing that the UK is in danger of being over-interconnected as the incremental value of additional interconnectors is low, perhaps even negative, and is ultimately deterring adequate new build of generation plant in the UK. An acrimonious Brexit would almost certainly focus attention on these matters.

www.ec.europa.eu

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04

Local energy markets Interest in local energy markets has been increasing during the last year and this could gather further pace in 2019 as the result of the confluence of several factors. These include technical and operational innovations such as blockchain in trading and aggregation, implementation of half-hourly metering and settlement, support from Ofgem for increasingly large pilots and backing from local governments.

www.ofgem.gov.uk

NOVEMBER 2018

59

03

Batteries behind electric vehicle charging stations PivotPower is seeking to roll out 20 ~50MW batteries located at grid substations which will provide buffer storage for rapid charging electric vehicles on motorway service stations. This could lead to mobility services underwriting big expansion of batteries into energy/balancing trading and further ancillary services.

www.pivot-power.co.uk

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02

Demand side response from domestic customers/prosumers Competition among aggregators and equipment providers, along with technology improvements and the extension of half-hourly metering and settlement, are likely to stimulate further application of demand side response.

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T O P 10

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NOVEMBER 2018

63

01

Buildings-as-power stations Expect to see more news from Swansea-based Specific’s net-zero energy new build programme. Specific combines a portfolio of smart building design and control, seasonal and daily storage and active and passive solar, and so far have demonstrated an office, classroom and home. They have ambitions to roll these out in the thousands.

www.specific.eu.com

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EVENTS & A S S O C I AT I O N S

The biggest industry events and conferences WRITTEN BY OLIVIA MINNOCK from around the world

11–15 DECEMBER

Intersolar India [ BANGALORE ] With events spanning four continents,

64

13–14 DECEMBER

Intersolar is the world’s leading exhibi-

Solar Power, New York

tion for the solar industry and its part-

[ NEW YORK ]

ners. “Our objective is to increase the

Tapping into one of the top 10 solar

share of solar power in the energy sup-

markets in the world, Solar Power

ply. By providing first-rate services, our

New York is the event for solar policy

exhibitions and international confer-

updates and opportunities to network

ences bring businesses, technologies

with regional companies for New York

and people from the most important

State. The 2017 event drew 400 attend-

markets around the globe together. We

ees and over 25 exhibitors, and featured

have 25 years of experience in opening

interactive education focused on the

up markets, providing specialist knowl-

changing landscape, obstacles and

edge and creating links.” Over 300

policies that are impacting the industry

exhibitors and 17,000 visitors are expe-

in New York. The event is presented by

cted at the 2018 event, with areas of

the Solar Energy Industries Associa-

focus to include photovoltaics, electri-

tion (SEIA) and Smart Electric Power

cal energy storage and electric.

Alliance (SEPA).

www.intersolar.in

events.solar/newyork

NOVEMBER 2018

65

07 FEBRUARY 2019

Smart Cities UK [ LONDON ]

The fourth iteration of this annual con-

of Engineering and Technology).

ference is set to examine sustainable

The event organisers promise that

investment in line with the UN Sustain-

attendees will be able to discover the

able Development Goals (SDGs). The

latest UK smart projects and innova-

event promises to bring together over

tions and how to gain long-term invest-

300 decision makers to discuss Smart

ment for their city; form links with key

City development. Speakers set to att-

decision makers; and meet with poten-

end will be from Nesta, FlyingBinary

tial investors.

and British Business Bank, and the event

www.smartcityuk.com

is being supported by TechUK, Catapult, UCL Partners and IET (the Institution w w w.e ne rgydi gi ta l. com

EVENTS & A S S O C I AT I O N S

19–20 APRIL 2019

26–27 MARCH 2019

66

Future of Utilities Summit 2019

RenewX

[ HYDERABAD, INDIA ] RenewX is an event focused on growing the renewable energy market in

[ LONDON ]

South India. The event is organised by

Looking forward to 2019, one of the

UMB India, the leading event organiser

key events in the calendar for the UK

in the country. RenewX is set to include

energy market, and indeed global thou-

networking opportunities, B2B meet-

ght leaders, is the Future of Utilities

ings and interactive sessions with deci-

Summit. Featuring 100+ speakers on

sion makers in the industry. The event

three different stages, this is the big-

is anticipated to include 180 exhibitors

gest energy and water event in the UK.

and 8,000 visitors are set to attend.

It explores themes including customer

RenewX 2018 featured big names in

interaction, energy and water. In past

the energy industry such as Tata Power

years, speakers have included execu-

Solar, Jinko Solar, Canadian Solar

tives from E.ON UK, Engie, SSE, Thames

Energy, Premier Solar and Renewable

Water, National Grid and Irish Water.

Energy Corporation (India).

www.new.marketforce.eu.com

www.renewx.in

NOVEMBER 2018

25–26 JUNE 2019

14–16 MAY 2019

African Utility Week

Global Offshore Wind 2019 [ EXCEL LONDON ]

This is the UK’s largest offshore wind

[ CAPE TOWN, SOUTH AFRICA ]

event, featuring 2,500 industry experts

African Utility Week is Africa’s leading

coming together over two days to net-

power, energy and water trade expo.

work and share ideas. 150 exhibitors

Having now run for 19 years, the event

as well as 100 speakers from over 40

now forms part of Clarion Energy. The

countries are set to attend, and a mix

three-day conference will feature over

of panels, debates, keynotes and annou-

300 exhibitors, including African Wind

ncements will feature. The event is held

Energy Association, the Engineering

by RenewableUK. 2018’s event, held in

Council of South Africa, Women in

Manchester, included representatives

Water Association and East African

from 34 countries and partners involved

Power Pool. Also present will be EPC

were innogy, MHI Vestas Offshore,

companies including OrbicSolar, Wind-

Catapult, Scottish Power Renewables

lab, Conco Energy Solutions and East

and Equinor. Even more companies are

African Power.

set to take part next year.

www.african-utility-week.com

www.events.renewableuk.com

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67

68

MARKET LEADERS IN THE EVOLVING ENERGY SPACE WRIT TEN BY

DA LE BENTON PRODUCED BY

TOM VENTURO

NORTH AMERICA

69

TERRACON

70

PARTNERING WITH SOME OF THE BIGGEST INDUSTRY PLAYERS, TERRACON LOOKS SET TO DEFINE THE FUTURE OF WIND POWER GENERATION NOVEMBER 2018

T

erracon has been delivering consulting engineering services to clients for more

than 50 years. The company, based in Olathe, Kansas, is an employee-owned engineering consulting firm that provides environmental, facilities, geotechnical and materials services across a number of strategic business sectors, including power generation, oil and gas, transportation and facilities.

NORTH AMERICA

71

It is this power generation market, particularly wind power generation, that is currently experiencing significant growth like never before.

For Blair Loftis, vice president and National Director, Power Generation & Transmission at Terracon, key to this growth has been the impending expiration of the production tax credit in 2019. This means that companies constructing wind facilities from 2019 onwards will receive a lower tax incentive than in previous years.

w w w. energ ydigital. co m

TERRACON

Vision, Innovation, Development

Wind Stone Constructions works as an ambitious company and with a great work spirit, we are specialists in civil works/engineering and P&H foundations for wind turbines.

Our commitment is to develop projects promoting the transformation of our environment and fostering the economic, social and environmental development.

LEARN MORE

HEADQUARTERS: Avenida Las Cumbres 171 Colonia Colinas del Vergel, 98085.

Zacatecas, Zacatecas Mexico.

MEXICO CITY: Avenida Paseo de la Reforma 296 Colonia Juarez, 06600.

Mexico City, Mexico.

www.wsc.mx/en | wsconstructionsmex@gmail.com |

NOVEMBER 2018

NORTH AMERICA

“ That’s what we are doing at Terracon, we are working with these large companies and we are providing innovative solutions that help reduce those costs” — Blair Loftis, VP and National Director, Power Generation & Transmission, Terracon

“The existing production tax credit

Lowering the corrugated metal pipe into the foundation excavation

cycle of a wind farm goes into the

(PTC) expires in 2019 and this is forcing

turbines themselves, with the remain-

a number of companies to find ways to

ing 50% going into ‘balance of plant’

fill the incentive gap,” says Loftis. “In

(BOP): roadways, conductor systems

losing those tax incentives, more and

and other infrastructure elements and

more companies are now seeking out

half of the BOP cost is the foundations.

ways to reduce capital costs.

“That’s what we are doing at Terra-

The key then for Terracon is finding where it can add value into that con-

con, we are working with these large

struction cycle, and it has located it in

companies and we are providing

the wind turbine foundations.

innovative solutions that helps reduce those costs.”

As the wind energy market grows and the PTC expiration date draws

Loftis notes that 50%of the capital

near, these developers are looking for

expenditure within the construction

bigger returns on each wind turbine w w w.e ne rgydi gi ta l. com

73

TERRACON

Williams Form Engineering Corporation has been providing threaded steel bars and accessories for in the construction industry for over 95 years.

Each wind tower supported by a Williams foundation anchor bolt can be relied upon to perform flawlessly throughout the life of the turbine. www.williamsform.com info@www.website.com LEARN MORE 8165 Graphic Dr. Belmont, MI 49306 Phone: (616) 866-0815 Fax: (616) 866-1890

“BUILDING STRONGER FOUNDATIONS” jbsenergysolutionsllc.com

P&H “Anchor Foundation”

P&H “Tensionless Pier Foundation”

JBS Energy Solutions is fast becoming the go to company to provide scalable design and build solutions specifically for the Patrick & Henderson wind turbine foundations and existing foundation upgrades.

We provide a complete foundation package, from initial engineering through final construction.

NOVEMBER 2018

NORTH AMERICA

they construct. Technological advance-

have been constructed with a gravity

ments in wind turbine generators has

spread foundation design, but with the

afforded an opportunity for larger

additional mass at the top of the tower

machines. This equates to a signifi-

from these larger machines the industry

cant increase in the turbine size, tower

was ripe for a paradigm shift.

height and blade length. In turn, the

That shift was brought about by the

foundation system grows larger and

Patrick & Henderson (P&H) Tension-

more expensive.

less Pier Foundation: a design that

The market is moving towards larger

requires less than a third of the amount

turbines for land-based applications;

of concrete and steel and 25% less

from a typical size in the 2-megawatt

excavation and backfill when construct-

family to turbines rated at 3-3.5

ing the larger wind turbines. Accord-

megawatts. Traditionally, the turbines

ing to Loftis, an experienced crew can 75

1965

Year founded

4,000+ Number of employees

140+

Offices nationwide

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TERRACON

“ What we are doing with our foundation systems is making the typical gravity spread foot foundation functionally redundant in the marketplace” — Blair Loftis, VP and National Director, Power Generation & Transmission, Terracon

Blount Contracting is a full service civil construction company specializing in mass excavation, shoring, renewable energy – civil grading and P & H foundation installation.

blountco.com 1353 S Vista Rd Apache Junction AZ 85119 • 480-985-2112 • info@blountco.com

NORTH AMERICA

The inner corrugated metal pipe is ready for backfill 77 complete at least five foundations per

to conventional standards of modelling

week under favourable site conditions.

so we could get that in front of the

“We work with specialty foundation

independent engineering community.

contractors like JBS Energy Solutions,

Once we started doing that, we got

Blount Contracting, and Wind Stone

the industry and market comfortable

Construction who have honed their skills

with Terracon assuming this role as the

for installing our foundation design.

engineer of record.

Some engineer, procure, construction

“It has been a team effort. We have

(EPC) contractors, such as Blattner

a tight group including Allan Henderson,

Energy have resourced so that they can

the inventor of the foundation, two

construct our foundations on multiple

preferred materials suppliers (Contech

projects simultaneously,” says Loftis.

Engineering Solutions and Williams

“Terracon has spent the last few years bringing the P&H Foundation up

Form Engineering) and a quality assurance firm (Structural Observation

w w w.e ne rgydi gi ta l. com

TERRACON

Services), and we all work together with a shared strategic platform.”

One of the key ways in which Terracon has and continues to establish itself as an industry expert in foundation design is through partnering with key industry players.

Through this, Terracon is able to work with and demonstrate first-hand the true value of the P&H Tensionless Pier Foundation which in turn highlights its value in terms of, at least in part, helping to fill in the tax incentive gap.

Terracon has partnered with NextEra Energy Resources, one of the largest independent 78

operators of power generating assets in North America. Terracon has been able to realise as much as 40% savings in construction capital costs of NextEra’s wind turbine foundations through the P&H Tensionless Pier Foundation.

“For NextEra it was an easy win,” says Loftis.

“NextEra, like many companies, is faced with increased capital pressures as it deals with the expiration of the PTC. If Terracon can save one of the largest industry players 40% on 25% of their capital it is sort of a no-brainer.”

Terracon’s foundation is deep and cylindrical, as opposed to the gravity foundation which is typically flat and octagonal. The standard P&H Tensionless Pier Foundation requires

NOVEMBER 2018

NORTH AMERICA

only 110 cubic yards of concrete which translates to as much as 40% less concrete and 40% less steel as opposed to a gravity spread for the same size wind turbine.

“It’s a significant cost saving in the industry.

Especially when we’re looking down the barrel of an administration with a trigger finger on tariffs, which effects the cost of the steel and other construction materials used in the foundations. Since the pier requires substantially less steel than the spread we reduce the amplitude of this kind of market volatility,” says Loftis.

Through the success of working with NextEra, Terracon was introduced to a number of engineering, procurement and construction (EPC) firms including market leaders like Blattner Energy. NextEra solicited the largest tender of wind projects in North American wind history last year.

Blattner Energy won all of the projects and decided to build the majority of them using Terracon’s P&H Tensionless Pier Foundation.

Terracon was retained to design more than 550 foundations for that round of projects.

For Loftis, this is the clearest representation of the paradigm shift that the market was craving. “There has been a paradigm shift, moving from the gravity spread foundation

Securing the rebar hoops which maintain anchor bolt spacing w w w.e ne rgydi gi ta l. com

79

TERRACON

80

to the tensionless pier foundation

the foundation is compatible with site

because it saves cost,” he says.

conditions. As Loftis notes, it’s in both

“Blattner Energy has invested heavily

parties’ interests to ensure that the

into the foundation and to me this is a

foundation is in fact suitable for each

message of industry disruption. What

specific project. “That is how we set up

we are doing with our foundation

each engagement, making sure at the

systems is making the typical gravity

earliest stages of project planning that

spread foot foundation functionally

our foundation is the optimal design

redundant in the marketplace.”

choice for project success,” he says.

Relationships are only as strong as

To this end, Terracon does things

the effort put into them and Terracon

a little differently. They look at success

recognises this, conducting rigorous

from project conception through project

compatibility reviews to ensure that

completion. “We meet with project

NOVEMBER 2018

NORTH AMERICA

Securing the anchor bolts to the upper template ring

81

“ There has been a paradigm shift, moving from the gravity spread foundation to the tensionless pier foundation because it saves cost” — Blair Loftis, VP and National Director, Power Generation & Transmission, Terracon

managers, superintendents, foremen, and team leaders to conduct constructability reviews and spend a day or two discussing what portions of our design give the construction folk troubles in the field,” says Loftis. “I want to know every complaint that every craftsman, supervisor, project manager and foreman has about these foundations.”

“We then take that back and see if we can implement a design solution to enhance constructability efficiency. If we can revise the design to make the w w w.e ne rgydi gi ta l. com

TERRACON

construction process easier, while still preserving the integrity of the design, then we can provide even more value to the industry.

“This level of constructability design review with NextEra, Blattner and Terracon involved is something that is rarely ever done across the industry.”

Over the last two years, the company has experienced significant growth in one particular sector – power generation and transmission – recording a growth rate of 20% year-on-year. With the growth of the market and Terracon’s role in defining that 82

future market, Loftis has begun work on a strategic growth plan for the next 24 months. He believes that, given Terracon’s market position, it provides him with a key understanding of where the market is heading and enables him to ensure the company is “fully equipped” for it.

Looking beyond the next two years, Terracon aspires to be the industry leader in wind turbine foundation design in the United States. The company has already begun to attract attention from around the world but Loftis will ensure that whatever direction the company grows in, it will be direction of growth that benefits the wind industry.

“There really is an opportunity for our

NOVEMBER 2018

NORTH AMERICA

CLICK TO WATCH : ‘TERRACON – GREAT PEOPLE’ 83 foundation to support the economics of wind growth globally,” he says. “We’re going to focus on North America. We’re optimistic looking at the Latin America market, especially in Mexico, with the energy reform that’s taking place. But I would say our goal is to capture the market, get the majority of the market share in the United States and Canada, and then move into foreign markets.”

Completed foundation ready for tower construction w w w.e ne rgydi gi ta l. com

84

A S I A PA C I F I C

Innovation: the golden thread that ties Aditya Birla Textiles together WR IT TE N BY

L AU R A M UL L AN PR OD UC ED BY

A LI S TA IR W ES T

85

A D I T YA B I R L A T E X T I L E S PA R T O F A D I T YA B I R L A G R O U P

United by an innovative strategy, a cutting-edge portfolio and a team of over 13,000 people, Aditya Birla Textiles is making its mark on the textile world

F

rom the clothes on your back to the walls around you, Aditya Birla Group is where

many everyday products come to life.

86

The Indian multinational conglomerate has a far-reaching portfolio – the group has a presence in the industries of metals and mining, cement, textiles including branded apparel, carbon black, chemicals, financial services, telecommunications and much more. Yet, regardless of the market, Aditya Birla Group has continued to leave an impression.

Today, the group stands as a world leader in aluminium rolling, viscose staple fibre and carbon black production – and this pioneering approach hasn’t gone amiss within its Textiles, Acrylic Fibre or Overseas Spinning businesses either.

NOVEMBER 2018

A S I A PA C I F I C

87

“ Sustainability is a way of life for us.

It’s part of our DNA” — Jagadish Barik, Chief Sustainability Officer and VP of Business Excellence

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A D I T YA B I R L A T E X T I L E S PA R T O F A D I T YA B I R L A G R O U P

NOVEMBER 2018

A S I A PA C I F I C

As a top Fortune 500 company, Aditya Birla Group also boasts the finances to back up its leading reputation, reporting a market capitalisation of about $50bn. Since its foundation over a century ago, the group has grown to become the third-largest Indian conglomerate in the private sector and, looking to the future, it has devised a new strategy to ensure it remains a global leader for years to come.

Aditya Birla Textiles – consisting of Textiles (Linen & Wool), Acrylic Fibre and Overseas Spinning businesses, has a jaw-dropping output from nine

“ Our strategy is to offer more technical and value-adding products using innovation and technology” — Kapil Agrawal, CEO of Overseas Spinning

manufacturing facilities spread across E X E C U T I V E P R OF IL E

Kapil Agrawal Mr. Kapil Agrawal is the CEO of Overseas Spinning business, taking care of five units in Indonesia, Thailand and Philippines.

He is a chartered accountant by profession. He joined Aditya Birla Group as Management Trainee in Grasim Chemicals division and then moved to Chairman’s office, assigned with responsibilities of Textiles and got exposure to the total value chain from pulp to retail. Within the Aditya Birla Group, he worked at Madura Garments, Aditya Birla Retail in various profiles before moving to Overseas Spinning business as COO and then moved up to CEO. He is a key learner, visionary and believes in execution of strategy.

w w w.e ne rgydi gi ta l. com

89

A D I T YA B I R L A T E X T I L E S PA R T O F A D I T YA B I R L A G R O U P

five countries. Its acrylic fibre business has a capacity of about 125,000 tonnes, while its overseas spinning business has as many as 625,000 spindles and a production capacity of around 172,000 tonnes of yarn.

Reinventing the portfolio Countering fluctuating demand and prices, Aditya Birla Textiles has taken a bold step to stay on top: it used to be a commodity player but now it has transformed its strategy to become 90

a firm that creates unique, value-adding products. As part of this, innovation has become a top priority, helping the firm create unique products like its anti-bacterial fibre Amicor or its E X E C U T I V E P R OF IL E

Mr. Thomas Varghese is the Business Head for the Aditya Birla Group’s textiles, acrylic fibre and overseas spinning businesses, which include two domestic textile units, five overseas spinning units and two acrylic fibre units. He joined Grasim Industries in 1999 as Chief Marketing Officer for the pulp and fibre business.

He has been the Chairman of CII retail council for 4 Years, Chairman of CII Marketing council for 3 years and Chairman of CII textile council for one term.

NOVEMBER 2018

A S I A PA C I F I C

sustainable gel-dyed fibre Radianza.

Satyaki Ghosh, CEO of Aditya Birla Group’s Textiles and Acrylic Fibre business, believes the company has devised a thorough plan for success.

“In the wool industry, our focus is not only to be a preferred supplier by ensuring quality and availability at competitive prices; we also want to proactively lead the transition of wool from a formal to casual fabric,” Ghosh says. “Therefore, we have recently invested in a facility to produce wool that is more machine washable.”

Meanwhile, in the acrylic fibre and spinning businesses, the company has increasingly focused on strategic markets and distinctive fabric applications. “Our strategy is to offer more technical and value-adding products using innovation and technology,” notes Kapil Agrawal, CEO of Overseas Spinning. “We have recently started creating more technical yarns, for instance, which are used for military, firefighting or medical purposes.”

Indeed, Aditya Birla Textiles has consistently invested in research and development to ensure it remains up to speed with the latest innovations. w w w.e ne rgydi gi ta l. com

91

A D I T YA B I R L A T E X T I L E S PA R T O F A D I T YA B I R L A G R O U P

CLICK TO WATCH : ‘ABG TEXTILES’ 92 In doing so, Agrawal says that if

me an idea. I think that’s one of our most

a fibre can be spun, the company

unique and differentiating factors.”

can spin it, using next-generation

Aditya Birla Textiles doesn’t compro-

technologies like ring spun, vortex

mise on machinery either, using only

and open-end machines.

top-of-the-line equipment from Europe,

“We have also created a unique

Japan and beyond. This helps to ensure

pilot plant which essentially allows

that the best quality products are created

us to create a product from start to finish, from spinning until garmenting,” he continues.

“So, let’s say my customer wants to develop a new type of trousers. I can provide a turnaround time of around seven days from when he gives NOVEMBER 2018

A S I A PA C I F I C

“ We want to proactively lead the transition of wool from a formal to casual fabric” — Satyaki Ghosh, CEO of Aditya Birla Group’s Textiles and Acrylic Fibre business

and that they are created consistently.

It also means that employees no longer need to work on repetitive tasks but can instead focus on more value-adding ones.

This pioneering approach has helped to position Aditya Birla Textiles’ brands among the most sought-after brands in India, with the business now standing as one of the leading producers and exporters of acrylic fibre, spun yarn, wool tops and yarns, linen yarns, fabrics and apparel. This reputation has been recognised by leading players in the apparel market like Restoration Hardware, Utenos, H&M, Speciality Fashion and Devold Norway 1853, which have all selected Aditya Birla Group as a key supplier.

E X E C U T I V E P R OF IL E

Satyaki Ghosh joined the Aditya Birla Group in 2016 as a CEO for Domestic Textiles & Thai Acrylic Fibre Business. He had previously been working as a General Manager & Director of Consumer Products Division at L’Oreal India, then in the company’s Paris headquarters. His 23-year long career has seen him involved with General Electric, PepsiCo and Spencer’s Retail; his experience cuts across consumer and retail businesses.

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E X E C U T I V E P R OF IL E

Dr. Jagadish Chandra Barik is Chief Sustainability Officer and VP – Business Excellence for Textiles, Acrylic Fibre and Overseas Spinning business. He has more than 25 years of experience in projects, manufacturing, quality assurance, Business Excellence and Lean Six Sigma. Prior to Aditya Birla Group, he worked as Corporate Head – Quality, Systems & Process at ITC Ltd, Director – Process Excellence at Xchanging Technology and General Manager – Production at Reliance Industries Ltd.

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“ Our entire strategy revolves around quality, achieving scale and size, achieving market share and achieving customer excellence” — Thomas Varghese, Business Head of Textiles, Acrylic Fibre and Overseas Spinning

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“With access to world class facilities,

A consumer-centric commitment

cutting-edge technology and our

Carving out a customer-driven path

state-of-the-art R&D center, we are

in the sector, Aditya Birla Group had

now the fifth largest acrylic fibre

worked hard to stay one step ahead of

producer in the world,” says Ghosh.

its customers wants and needs. In the

“We’re also at the forefront of the

domestic textiles market, Ghosh says

developing domestic linen market.

that Cavallo, the company’s linen-blend-

Our Linen Club brand enjoys leader-

ed apparel brand, is helping it cater to

ship status in the Indian market and

its value-seeking digital consumers.

is a brand of choice for linen connois-

“We have launched a value-for-money,

seurs across the country.”

linen-rich apparel range that offers the

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distinct look and comfort of linen combined with the easy-care attributes of cotton,” he says. “Cavallo has been received well by the digital consumer and we are looking to up the ante here.”

Meanwhile, in the wool market, Ghosh points to the mass transition in the global fashion space from woven to knits, formal to casual wear and from dry cleaned to machine washed garments. “To tap into this segment, we have invested in the capability of producing machine washable wool and blended yarns in-house,” he notes.

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“Meanwhile in the acrylic fibre segment, there has been an uptick in consumer demand for customised yarns for specific applications. Therefore, we have invested in an additional production line focusing on value-added products.”

Fuelling business excellence Continuous improvement is a wellversed mantra at Aditya Birla Group, and as such the Aditya Birla Textiles business is also using innovation to revamp the way it operates. Embarking on its latest project known as ‘Mission Happiness’, Thomas Varghese, Business Head of Aditya Birla Textiles, says that the business is striving to be a top NOVEMBER 2018

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97 player in each of its segments. “Our entire strategy revolves around quality, achieving scale and size, achieving market share and achieving customer excellence,” he notes.

“We use a Net Promoter Score (NPS) to see the loyalty of our customer relationships.

To improve this, we get regular feedback from customers; this is fed back to our teams who get into a huddle on a weekly basis to resolve any pain points almost in real time. This helps us enhance our customer satisfaction levels and improve our NPS.” Benchmarking, lean manufacturing and six sigma projects are all commonplace at Aditya Birla Textiles. Additionally, Varghese w w w.e ne rgydi gi ta l. com

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“ In the acrylic fibre segment, there has been an uptick in consumer demand for customised yarns for specific applications” 98

— Satyaki Ghosh, CEO of Aditya Birla Group’s Textiles and Acrylic Fibre business

points out that customer journey

A greener approach to business

mapping is frequently used by the

Not only is Aditya Birla Textiles taking

business. By examining consumers’

a fresh approach to its business

touch points and resolving any hurdles,

processes, it is also thinking of new

the business ensures that its top

ways it can grow in a sustainable,

priority is always the customer. “We

environmentally friendly way.

always like to ensure that we’re at

United by a common sustainability

the cutting edge by revamping and

vision, Aditya Birla Textiles has

modernising our process periodically;

challenged itself to grow in a way

this ensures we don’t lag behind in

that makes a positive difference to

terms of competitiveness of technol-

consumers and communities alike.

ogy and cost,” Varghese adds.

By using more renewable energy,

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reducing its carbon emissions and cutting down its water use, for example, the firm hopes to become the benchmark for sustainable businesses.

Chief Sustainability Officer (CSO) and Vice President of Business Excellence, Jagadish Barik, says that sustainability isn’t a second-hand thought at the firm but rather a common thread that runs throughout the business. “Sustainability is a way of life for us,” he says. “It’s part of our DNA.

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We want to become the industry benchmark in sustainability processes and practices by 2020 through qualitative engagement with all stakeholders.� As such, the group has adopted the Higg Index, an apparel and footwear industry standard for assessing environmental and social sustainability throughout the supply chain. It has also reduced its energy consumption (increasingly opting for renewable energy sources) and has implemented a variety of far-reaching corporate social responsibility (CSR) programmes which it hopes will develop 100

and improve the livelihood of the communities surrounding its factories.

With over 13,000 employees under its wing, Aditya Birla Textiles has been quick to understand that its people are instrumental to its day-to-day operations. As a result, the business has built a meticulous programme to develop its team. The business has increasingly used what it calls ‘two by two’ metrics, whereby employees can work in two departments, two businesses and two geographies to give them exposure to new areas of the sector. Additionally, the business is also keen to promote local talent rather than relying on expats, apparent as the some of the business units has reduced its reliance on expats by up to 30% over the last four NOVEMBER 2018

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“ We want to become the industry benchmark in sustainability processes and practices by 2020� — Jagadish Barik, Chief Sustainability Officer and VP of Business Excellence

years. This is helping to enrich local communities by providing more investment and employment opportunities. Not only the business teams predominantly local but also diverse, with women accounting for majority of its workforce in many Aditya Birla Textile units.

Investing in people, processes, technology and sustainability, Aditya Birla Textiles has established itself as a powerhouse in the textile, acrylic fibre and spinning markets. By not compromising on quality, it has ensured it will remain a leading player for years to come.

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