Indiancementreviewmarch2016

Page 1

www.IndianCementReview.com

` 150

INDIAN

CEMENT REVIEW

INDIA’S FIRST & ONLY BUSINESS MAGAZINE FOR INDIAN CEMENT INDUSTRY

VOLUME 30 • March 2016 • NO 8

The Fall and Rise of Fibre Cement sheets

Sheet manufacturing consumes 21 lakh Tonnes of cement while fly ash accounts for 5 lakh tonnes.

FEATURE

TEchnology

• Lab. Instruments, going high-tech

Low Carbon Technology Roadmap

• CNA Online Analyser

REpoRT

• Analysis of Trace Hazardous Elements and Halogens in Cement

• 3rd Smart Cities Summit 2016 • Elecrama 2016: Dazzling Power Play

• Advances in Cement Analysis

gUEsT colUmn

• Use of portable lab. Instruments in ‘process audit’

WE Care - Ambuja’s H&S Transformation Journey

Instant Subscription

®

News & Events│ Market Watch │ Projects & Tenders


www.IndianCementReview.com

INDIAN

` 150

CEMENT REVIEW

INDIA’S FIRST & ONLY BUSINESS MAGAZINE FOR INDIAN CEMENT INDUSTRY

VOLUME 30 • March 2016 • NO 8


GOOD FOR YOU, YOUR PROFITS AND THE PLANET

QuickFill® Clean offers cement manufacturers a 100% compostable plastic-free solution that is clean for the environment and during manufacturing and logistics. QuickFill Clean paper sacks give you a 10% productivity gain while reducing dust by up to 99%.

WE CHALLENGE CONVENTIONAL PACKAGING FOR A SUSTAINABLE FUTURE BillerudKorsnäs is a leading provider of strong, light, renewable and recyclable packaging material. Together with brand owners, converters and packaging partners all over the world, we create smarter packaging solutions that increase profits, excite millions of consumers and contribute to a sustainable future for generations to come.

Company name: BillerudKorsnäs Packaging India Pvt. Ltd. Contact person: Madhvi Lijhara Tel: +9198 109 58861 E-mail: madhvi.lijhara@billerudkorsnas.com




Desk INDIAN

CEMENT REVIEW INDIA’S FIRST & ONLY BUSINESS MAGAZINE FOR INDIAN CEMENT INDUSTRY

Sumit Banerjee Chairman, Editorial Advisory Board Group Managing Editor Falguni Padode Falguni@ASAPPinfoGLOBAL.com *Executive Editor Vikas Damle Vikas@IndianCementReview.com Managing Director Pratap Padode Chief Sales Manager Anoop Sidharth Anoop@IndianCementReview.com Subscription Sub@IndianCementReview.com Tel: 022-2419 3000/6526 7838 Published by ASAPP Media Pvt Ltd, A - 303, Navbharat Estates, Zakaria Bunder Road, Sewri (West), Mumbai 400 015. Tel: 022-2419 3000. Fax: 022-2417 5734. Branch OfďŹ ces s $ELHI 4EL s "ANGALORE 4EL s 0UNE 4EL s #HENNAI 4EL s +OLKATA 4EL s !HMEDABAD 4EL s 6ADODARA -OB Representative OfďŹ ces Austria, Switzerland & Germany Gunter Schneider - info@gsm-international.eu *Responsible for selection of news under the PRB Act., All rights reserved. While all efforts are made to ensure that the information published is correct, Indian Cement Review holds no responsibility for any unlikely errors that might occur. Printed and Published by Tarun Pal for ASAPP Media Pvt Ltd, Published from A-303, Navbharat Estates, Zakaria Bunder Road, Sewri (West), Mumbai-400 015, and printed at Print Tech, C-18, Royal Industrial Estate, Naigaum Cross Road, Wadala, Mumbai- 400 015. Editor: Pratap Vijay Padode. The information on products and projects on offer is being provided for the reference of readers. However, readers are cautioned to make inquiries and take their decisions on purchase or investment after consulting experts on the subject. Indian Cement Review holds no responsibility for any decision taken by readers on the basis of information provided herein. Subject to Mumbai jurisdiction only.

Founder Editor Roshan Wadhera To subscribe digital edition of Indian Cement Review log on to: www.IndianCementReview.com/Magzter ÂŽ

[ 6]

INDIAN CEMENT REVIEW | March 2016

A GOOD BUDGET FOR THE VILLAGER, AND ALSO THE CEMENT INDUSTRY â€œâ€Ś.quite like the manufacturing and services sectors depend on quality of infrastructure for their competitiveness, our agriculture also will be able to make a difference, in terms of productivity and competitiveness, if supported by proper facilities like irrigation, rural roads, access to markets, electricity and telecommunicationsâ€? – this is what we had to say in one of our editorial pieces last year.Therefore, it goes without saying, that we are delighted to see all the rural investments and initiatives the government has proposed in Budget 2016/17. This has to do with irrigation, roads, sanitation, electricity connections, public transportation systems – all in our villages. Add to this the large monies and/or effort earmarked for the Panchayats, MNREGA, interest subvention on agricultural loans, croreop Insurance Scheme, rural LPG connections for poor women, direct beneďŹ t transfer for fertilisers, PURA and many more such small and big proposals, and we have a Budget that is ďŹ nally designed for the hitherto forgotten villager. We truly wish that collectively, we succeed in implementing these initiatives, and thereby achieve the goal of doubling our farmers’ income by 2022 (do not know if it is nominal income or real (ination adjusted) income))! The only discordant note in this rural thrust, is the absence of anything of substance for the schools and health centres in villages, on the facile pretext that this is now in the states’ territory. We think that the Central Government of a large, diverse and developing country like India can ill afford to take a hollow and superďŹ cial position like that. Instead, it should go about formulating health and education strategies and developing recommended model policies for the states to implement, with much more urgency. The government will fail in its duties if it were not to mentor the states in this matter of truly national importance. Where does this leave our manufacturing or services sectors, or for that matter, our slogans of Make in India, Skill India and Smart Cities? What happens to Start Up India or AMRUT or Sagarmala? Other than roads and highways, the Budget has disappointed all other infrastructure segments like ports, airports and urban infrastructure. Take, for example, the pet project Smart Cities, where a provision of Rs 3,200 crore has been made, against a requirement of Rs 10,000 crore.Take AMRUT, where money provided is Rs 4,000 crore against an estimated requirement of Rs 15,000 crore. Against a demand of Rs 33,000 crore for metros all over the country, only Rs 10,000 crore has been allocated. In the current year, the roads and highways sector has done reasonably well even in the face of headwinds, and has been amply rewarded with a provision of upward of Rs 1 lakh crore. This augurs well not only for travellers but also for road contractors and developers in the immediate term.What about Cement companies? All of this will need Cement and Concroreete in large quantities, and we feel this budget is going to trigger a much awaited upswing in the consumption of cement in the country from the later half of FY 2017 With the emphasis on roads, railways, housing, irrigation (and not so much directly on Make in India), one can safely expect a spurt in demand of skilled construction workers. There are two or three serious implications of this. One – this will further incroreease the bias of employment opportunities in seasonal/informal/unorganised sectors, which are very weak on welfare measures and protection of workers’ rights. Secondly, construction projects may get delayed due to shortage of skilled labour, caused by demand – supply imbalance in the labour market. On one side, we have a potential growth in construction projects, and on the other side, possible improvements in wage opportunities in villages. The construction companies will have to ďŹ nd answers to this complex issue.

Sumit Banerjee Chairman, Editorial Advisory Board



CONTENTS

INDIAN CEMENT REVIEW March 2016

COVER STORY

FEATURE 36

Lab. Instruments, going high-tech

29

FIBRE CEMENT SHEETS The use of Asbestos Fibre is increasing globally, after decline in the 1990s. There is an increase in consumption in about 12 countries particularly from the year 2000 to 2004. It has always been a contentious subject to deal with. World Health Organization and International Labour Organization on Asbestos

A perspective on ‘Asbestos based cement products’ 32 Interview response by John Nicodemus, Exe. Director, The Fibre Cement Products Manufacturers’ Association

Laboratory Instruments have played a very significant role in the overall progress made by the cement industry in the last 25 years. From classical analysis to instrumental methods has been a long journey.

“CNA Online Analyser” Benefits and Advantages 38 Explains Rajendra Mishra, Business Development Manager – India & ASEAN of PANalytical India

“Analysis of Trace Hazardous Elements and Halogens in Cement” 41 Article courtesy: I.R.Technology, representing Rigaku Corporation of Osaka, Japan

Advances in Cement Analysis 44

Chrysotile Asbestos is not associated with any health hazards 35

by Dr. Michael Caves, India-Business Development Manager of Malvern AIMIL

Jayachandran V, Chief Operating Officer-Roofing Business, HIL Ltd.

[8]

INDIAN CEMENT REVIEW | March 2016

Use of portable lab. Instruments in ‘process audit’ 46 By Sandeep Pillai, PENTA India Consultants Pvt. Ltd.



CONTENTS

INDIAN CEMENT REVIEW March 2016

24 BUDGET ANALYSIS 54

REPORT 56

Union Budget was presented in the parliament on February 29th, 2016. ICR team tries to capture the impact of budget on the cement, infrastructure and real estate

TECHNOLOGY 48

3rd Smart Cities Summit 2016 Elecrama 2016: Dazzling Power Play

61 PRODUCT INFO 54 Low Carbon Technology Roadmap Ulhas Parlikar, Chairman- CII Initiative on increasing AFR usage in Indian Cement Industry, Dy. Head, Geocycle India, ACC Ltd.

52 GUEST COLUMN 54 Work Group Concepts

Compact and easy-to-install valve control Alfa Laval ThinkTop D30 is an affordable alternative to convention valve

62 MARKET WATCH 54 The much awaited consolidation is here for good. By Vaibhav Agarwal of PhillipCapital(India)Pvt. Ltd.

Engineering Solution

Capability Building

Standard Process and Systems

Reward & Recognition

Communications

Integration with People Power

WE Care - Ambuja’s H&S Transformation Journey Ashwin Raykundalia, Head - Health & Safety, Ambuja Cements Ltd.

ICR is on Facebook Visit us at www.facebook.com/ Indiancementreview

In This Issue Desk ...................................................... 6 Search ...................................................12 Indian News...........................................14

Scan this code with your smartphone* to stay tuned with the latest happenings in the world of cement

Global News ..........................................20 Cement prices ........................................60 Projects & Tenders ..................................64 Events ...................................................68

*QR code application required. Share your views and opinions with us at vikas@indiancementreview.com

[10]

INDIAN CEMENT REVIEW | March 2016


Pao Mazbooti Zindagi Bhar Ki.

Longer Life

Water Resistant

No Cracks

Better Surface For Painting

Banao Pyaar Se

For enquires please contact: Tamil Nadu: E Ravi Shankar 9840924621. Andhra Pradesh Rayalaseema: B. Chakradhar 9010944431, Coastal AP: Sai Hanuma Prasad 9010944430, Telangana: L. Ravinder Rao, 9010688851. South Karnataka: Love Raghav 8884442999, North Karnataka: Umesh Deshmukh 9480682103. Kerala: Jayachandran 9747166699, Maharashtra & Mumbai: Yogesh Khairnar 8691037750. Orissa: L. Ravinder Rao, 9010688851.

Toll Free No: 1800 266 266 1

www.jswcement.in


SEARCH This service is provided by Indian Cement Review for easy reference of organisations, individuals and products reported in this issue. Page No

Spectris Technologies ................... 40

Shailendra Chouksey ................... 27

Heidelberg India .......................... 14

Malvern Aimil Instruments .......... 44

Ajay Kapur .................................. 27

Ramco Cements.......................... 14

PENTA India Technical

John Nicodemus .......................... 32

Cement Corporation of India ...... 14

Consultants .................................. 46

Jayachandran V ............................. 35

LafargeHolcim ............................. 14

ACC ........................................... 48

Rajendra Mishra .......................... 40

JK Cements ................................. 14

United States Trade and

Sandeep Pillai .............................. 46

Shree Cement.............................. 18

Development Agency................... 56

Ulhas Parlikar .............................. 48

Emami Cement ........................... 18

US Smart Cities Council ............. 56

Ashwin Raykundalia.................... 52

UltraTech ...............................18, 28

Baumann Consultancy Network .. 56

Bruce Andrews ............................ 56

Organisation

Siam Cement............................... 20

Leocadia Zak ............................... 56

Jordan cement ............................. 20

People

Page No

Philip Bane .................................. 56

Bamburi Cement ......................... 20

Amandeep Gupta......................... 26

Renato de Castro ........................ 56

Dangote Cement ......................... 20

MS Mani ..................................... 26

Praveen Pardeshi .......................... 56

Cemex ........................................ 22 OCL Cement .............................. 26 Deloitte ....................................... 26 Cement Manufacturers’ Association .................................. 27 Ambuja Cements ....................27, 52 The Fibre Cement Products Manufacturers’ Association ........... 32 HIL ............................................. 35

FORM IV (RULES) STATEMENT BY THE PUBLISHER (Statement about ownership and other particulars about the newspaper to be published in the first issue every year after the last day of February.) Registered name of Publication: Indian Cement Review; Place of Publication: Mumbai (Maharashtra); Periodicity of publication: Monthly; Name of Printer and Publisher: Tarun Pal; Address: A-303, Navbharat Estates, Zakaria Bunder Road, Sewri (W), Mumbai - 400 015. Nationality: Citizen of India; Editor: Pratap V. Padode; Address: A-303, Navbharat Estates, Zakaria Bunder Road, Sewri (W), Mumbai - 400 015. Nationality: Citizen of India; Owner addresses of individuals who own the Newspaper or Partner or Shareholders holding more than one percent of the total capital: Mr Pratap V. Padode; Mrs Falguni P. Padode. Gayatri Financial Services Pvt Ltd; First Infocenter Pvt Ltd, A-303, Navbharat Estates, Zakaria Bunder Road, Sewri (W), Mumbai - 400 015. I, Tarun Pal, hereby declare that the particulars given above are true to the best of my knowledge and belief. Signature of the Publisher Tarun Pal

Advertise in Project Reporter Digital Edition and reach out to 50,000 individuals / companies from all over India. For Advertising: Contact Sandeep Sharma on +91-22-24193000 / 24193096 Email: Sandeep@ASAPPinfoGlobal.com

[12]

INDIAN CEMENT REVIEW | March 2016

Annual Subscri

ption: `3500/-

www.ProjectRe

porter.co.in

Vol. 11 No. 10 l Novemb

er 15, 2015

India’s Projec t Database

180

Projects & Tenders

(Downloadable PDF)



News IN BRIEF

Ramco reports Rs 118 crore Q3 profit

Heidelberg commissions WHR based Power Generation Plant

The Ramco Cements Ltd has posted a net profit of Rs 117.7 crore for the quarter ended December 31, 2015 as compared to Rs 22.9 crore in corresponding month last year. Total income has increased to Rs 822.7 crore from Rs 817.7 crore year-on-year. Company’s total domestic sale during the quarter was 15.91 lakh tonnes as against 16.74 lakh tonnes, while export sales stood at 0.35 lakh tonnes as against 0.44 lakh tonnes. The sale of cement in Tamil Nadu was affected during the third quarter due to record rain and consequential

Heidelberg India has successfully commissioned the WHR based Power Generation Plant at its Narsingarh Plant in Damoh, Madhya Pradesh on February 15, 2016. The Power Plant will utilize the waste heat generated by the clinkerisation lines at Narsingarh Plant. The Power Plant has potential to generate approximately 12 MW of power.

Cement Corporation of India Limited (CCI) is hiring The Cement Corporation of India Limited (CCI) has released an employment notification, inviting interested and eligible candidates to apply for the positions of Artisan Trainee. The training period can be extended by the corporation at its discretion in case the trainee does not attain the prescribed level of efficiency as assessed through periodical appraisals.

East may face an over supply of cement, say analysts The pace at which cement capacity is coming up in the East has convinced analysts that the region may face an over supply — a situation that the southern states have been grappling with in the last few years. About 8.6 million tonnes (MT) of new capacity estimated to be added in the next two fiscal years would take the total capacity in the eastern region to 66.9 MT. During the same period, other regions would add around 3-7 MT. Expectations that per capita consumption in the East - 90 kg against the national average of 200 kg — would rise from its current levels drove companies to put up new production lines.

[14]

INDIAN CEMENT REVIEW | March 2016

inundation in many parts, said the company. However, the reduction in operating cost was partly offset due to increase in royalty of limestone from Rs 63 per tonne to Rs 83 per tonne from September 2014, Contribution to District Mineral Foundation as per Mines and Minerals (Development and Regulation) Amendment Act, 2015 has impacted on cost of cement. The company has reduced the borrowings by around Rs 440 crore out of internal accurals and reduction in the current assets during the current year.

LafargeHolcim sees Rs10,000 crore valuation for its cement portfolio Among those interested in the assets are JSW Cement, Irish building materials maker CRH Plc and Blackstone Group Franco-Swiss cement maker LafargeHolcim Ltd is expecting almost Rs.10,000 crore in deal value for the entire 11 million tonnes per annum (mtpa) Indian cement portfolio it plans to sell. Among those interested in the assets are JSW Cement Ltd, Irish building materials maker CRH Plc and private equity (PE) firm Blackstone Group LP, according to the two people and a third person familiar with the development. LafargeHolcim said it was considering a revised plan to sell Lafarge’s

full cement capacity in India. “What is on right now is the informal discussion rounds; formal process will start only once Lafarge receives the Competition Commission of India (CCI)’s approval for the revised plan. The expected valuation for the deal is being quoted at around plus or minus of Rs.10,000 crore,” said one of the two people mentioned above.

JK Cements resumes production at Karnataka facility J K Cement on Monday said it has resumed production at its 3-million tonne per annum Karnataka facility which was temporarily stopped following caving in of the silo roof. “Production of Clinker and cement has resumed with operation of the Kiln by making an alternate arrangement using two RBC belts for feeding the clinker directly to the Cement Mill,” The company has said that though the

output has been halted cement available with its depots had served the market. While halting production it has said that alternate arrangement for operation of Kiln is being initiated which is expected to normalise the clinker and cement production within 15 days from this unit but restoration of clinker silo is expected to take six months time. The actual loss is being assessed by the company.


VRPM AND BALL MILL COMBO SYSTEMS IDEAL FOR BROWN-FIELD EXPANSION AND SPLIT LOCATION UNITS

Capacity Enhancement & Energy Saving • From 50% to 90% • 5 – 8 units per ton for Cement. • 3 – 5 units per ton for Raw Meal.

Circuit for Brown Field Project • Higher Blaine is possible. • Low Maintenance. • Long life of Table Liner and Roller.

Roller Press Hefei (CNBM) - Exclusive agreement for supply in India

• Supplied 1400 sets of Roller Press all over the World in 20 Years. • Roller Sleeve Type and Weldable. • Constant pressure design concept. • Wide Range of Capacity 50 TPH to 350 TPH in Green Field Project.

• Capacity enhancement 50 % to 200 % in Brown Field Project. • Energy saving 20 % to 40 % in Brown Field Project. • Repeated welding is possible on wear surface of the Roller.

AMCL MACHINERY LIMITED Works: A – 1/1, MIDC Industrial Area, Butibori – 441122, Dist. Nagpur, Maharashtra, India. : 07104 – 265470, 265724 Fax: 07104 – 265725, 265893, : marketing@amcl.in, Website: www.amcl.in




News IN BRIEF

Ahir orders probe into land acquisition

Goldman Sachs sees Indian coal worsening glut

Maratha Ambuja Cement Project at Upparwahi is on the radar of union minister of state for chemical and fertilizers, Hansraj Ahir for alleged oppression of project affected people. Ahir on Friday directed district collector Deepak Mhaisekar to investigate into the irregularities done by the company in land acquisition around two decades ago and submit a report to state government. Ahir had summoned a joint meeting of administrative officers and representative of project affected farmers to resolve the issue. He claimed that Maratha Ambuja cement company had paid paltry

Slumping global coal and liquefied natural gas prices will be under further pressure as rising Indian coal production exacerbates a glut of powergeneration fuel.The prospect of higher output from India, which is forecast to overtake China as the world’s largest importer of thermal coal, will likely cause a 10% contraction in seaborne trade of the fuel by 2020. The oversupply of coal and gas and weakening electricity demand prompted Goldman to lower its price forecasts for thermal coal and spot liquefied natural gas.

Emami Cement on an expansion spree Emami Cement, part of the Emami Group, announced the setting up of a cement-grinding plant in the WBIDC Panagarh Industrial Park in Burdwan district of West Bengal, and said two other units are being planned in Rajasthan and Andhra Pradesh.

SC restores possession of mine to Rajasthan govt from UltraTech The Supreme Court has held that the Rajasthan government will take back possession of a mine from Gotan Limestone Khanji Udyog Pvt Ltd (GLKUPL), which was transferred to cement major Ultra Tech, saying that competent authority was “misled” by concealing the real transaction. The apex court set aside the order of the Rajasthan High Court which had dismissed the state government’s plea to restore to it the possession of a mine, located in 10 sq km area near Gotan town in Nagaur district, the lease of which was transferred in contravention of rules to Ultra Tech Cement Ltd (UTCL), also known as Ultra Tech.

[18]

INDIAN CEMENT REVIEW | March 2016

compensation for acquiring hundreds of hectares of excess land from farmers in 12 villages of Korpana tehsil. Ahir has been pursuing the issue since he was in the opposition. He had even summoned a Mahapanchayat of farmers from 70 villages few years ago demanding back unused land with various cement companies. According to him, Ambuja company alone had acquired 1,848 hectares from 12 different villages at meagre rates. However, company has only utilized only few hundred hectares for the project and more than 1,000 hectares is lying unused.

Shree Cement wins maiden non-coal mining lease under auction route Shree Cement emerged as the highest bidder for Karhi Chandi limestone block at 58.95% of the IBM price. Shree Cement Ltd. won the first-ever non-coal mining lease allocated through the auction route, reports a financial newspaper. The company offered to pay the Chhattisgarh government ~INR 284 for every tonne of limestone production from the Karhi Chandi mine that has an estimated reserve of 255 million tonne (MT) spread over 242 hectares. Shree Cement emerged as the highest bidder for Karhi Chandi

limestone block at 58.95% of the IBM price. “It was the first non-coal mining lease auction in the country and saw aggressive bidding from cement manufacturers,” Chhatiisgarh Mines Secretary Subodh Kumar Singh told the paper.

Phase-II of cement road project may also face delays The Phase-II of cement concrete road project worth Rs 324 crore is also likely to face delays. Nagpur Municipal Corporation (NMC) has relaxed a couple of conditions bending to contractors’ lobby, that too after beginning the tendering process of 18 of 22 packages. Cement concrete road project Phase-I worth Rs 123 crore has already been hit by inordinate delay and has also caused a huge financial loss to the civic body. A major reason for this was entire project awarded to

one company. CM Devendra Fadnavis approved Phase-II in which state and NIT are to contribute Rs 100 crore each while remaining Rs 124 crore will be borne by NMC. NMC floated tenders for six packages in first step comprising 13 roads and costing Rs 81.32 crore followed by more six packages comprising 17 roads and costing of Rs 93.55 crore. Now, tenders have been floated for six more packages comprising 19 roads and costing Rs 78 crore. ICR


COMPLETE CEMENT PLANT (EPC BASIS) • • • •

Complete Cement Plant upto 10,000 TPD including Grinding Unit on EPC basis. High efficiency with 5-6 Stage Cyclone Separators High efficiency Reciprocating Grate Cooler Alternate Fuel Feeding System

WASTE HEAT RECOVERY • • • •

Waste Heat Recovery based Power Plant on EP/EPC basis More than 200 satisfied customers worldwide including Holcim & Heidelberg Ultratech (Rawan & Rajashree), Shree Cement, Ambuja Cement in India Sharjah Cement, UAE and City Cement, Saudi Arabia in Middle East

LONG DISTANCE CONVEYING SYSTEM • • • • • •

“ISO 9001: 2008” & “CE” Certified Company Manufacturing Capacity - 80,000 Ton Conveyors per annum and 1,000,000 Rollers per annum Can design for steep inclinations angles, short turning radius and difficult terrains Reference includes 14 KM long distance conveyor Specialized in ‘U’ Type Conveyors Key Customers – Cemex, Holcim, Heidelberg, Lafarge, JSW, Polysius, Sinoma etc..

POWER PLANTS PROJECTS • • • • • •

Co-Generation Power Plants Solid Fuel Base (Coal, Petcoke) Renewable Energy based (Biomass/Solar) Gas Based Combined Cycle Exhaust Gas Based Power Generation Refuse Incineration/Municipal Solid Waste Fired Power Generation

JYOTECH ENGINEERING COMPANY PVT LTD B-127, Sector-65, Noida, Distt Gautam Budh Nagar – 201 301 (U.P.) Email: info@jyotech.com/sales@jyotech.com; website: www.jyotech.com Contact: +91-120-4711300; +91-9312004352, +91-9871711160


Global News IN BRIEF Siam Cement Group eyes Vietnam expansion Thailand’s Siam Cement Group (SCG) plans to expand its operations in Vietnam, especially in the cement and petrochemical sectors. “Our target is that we must have a cement factory here, but by when we still cannot say. We’re studying if we should invest on our own or through a joint venture,” Dhep Vongvanich, SCG’s Vietnam executive director, told The Nation newspaper.

Jordan cement demand at 4Mta in 2015 Jordan’s consumption of cement declined to 4Mt in 2015, down by 300,000t from a year earlier due to weaker construction activities and government projects, the head of the Future Society for Cement Traders, Mohammed Ghazi Abu Soufa, said. He added that production capacity of cement plants reached 10Mt. Only a small surplus is exported due to closing borders with Syria and Iraq.

Kenya: Bamburi railway supply boost Bamburi Cement says it has earned KES1bn (US$9.8m) from supply of cement to the standard gauge railway (SGR) contractor, China Road and Bridges Corp (CRBC). The cement maker is among local firms contracted by a Chinese contractor to supply materials for the KES327bn project. “The SGR contract has increased our production by 10 per cent to more than 2Mta,” said the company’s commercial director, Geoffrey Ndugwa. The project is intended to connect the port city of Mombasa with a highspeed railway line to Nairobi, running onwards to Kampala, Uganda, with spurs to Burundi and Juba, South Sudan.

[20]

INDIAN CEMENT REVIEW | March 2016

Hope to launch bagged cement product, UK Hope Construction Materials has announced the launch of its new bagged cement product. Its Professional Grade Cement, the newest entrant into a UK bagged cement market will be available to customers across the southern half of England later this year. The newly-revealed product pack design, developed in association with Cognition Agency, features a large ram – a nod to the firm’s rich Derbyshire roots and the source of the raw materials used to make the cement. Hope said the ram’s head is transparent to ensure the consistent

colour of cement provided by Hope is clearly visible, something many potential customers said was important to them. “All the bags will be plastic, weatherproof and packed using the best equipment on the market, meaning users will be able to confidently store the bags outdoors,” it said. Hope’s Professional Grade Cement and service offering is the culmination of an extensive 18-month research and development process, which saw hundreds of merchants and professional builders surveyed to ensure the product meets customer requirements.

Indonesia Cement Consumption to grow 5%+ in 2016 Increased and faster government spending, low energy costs and the recent Bank Indonesia (BI) interest rate cut are set to spur significant growth in the construction industry. Key industry players forecast total cement consumption to grow more than 5% in 2016. This follows a rather limited growth of just 1% in 2015, according to Indonesian Cement Association (ASI) data. After a remarkably sluggish first part of 2015, cement consumption rebounded thanks to the commencement of several infrastructure developments, toll roads and dam

projects.These will continue to support cement consumption in the midterm as many projects will take years to finish. A fresh boost was also given by the applauded decision by the government to conduct early bids in 2015 for 2016 projects with the aim of speeding up government spending in the current year.

Dangote Cement to target 76.5Mta capacity in Africa by 2020 Cemtech’s 25th anniversary celebrations have commenced as the international conference and exhibition series opened its doors in Dubai, UAE, for its annual Cemtech Middle East & Africa meeting. The keynote presentation was delivered by Onne Van der Weijde, CEO of Dangote Cement, Nigeria’s largest cement producer and an emerging major with 45Mta of capacity in subSaharan Africa. In recent months the company has shifted to an aggressive low pricing

strategy in an effort to boost volumes, with growth rates in excess of 20 per cent stimulating a strong response from consumers. Africa’s most dynamic cement company is forging ahead with an new wave of capacity expansions planned for Senegal, Kenya and Ethiopia. According to Mr Van der Weijde, Dangote is now on track to deliver 76.5Mta of cement capacity in 14 countries by 2020, representing 24 per cent of Africa’s cement capacity, up from 18 per cent in 2015.



Global News IN BRIEF Ghana evaluating cement trade-war Dr Ekwow Spio-Garbrah, the Ghanaian Minister of Trade and Industries has announced that his Ministry is undertaking a thorough evaluation of various interests in the current trade-war between local cement manufacturers and importers. Cement imports from Nigeria and China are flooding the market, and therefore making local players businesses uncompetitive. Dr Spio-Garbrah commented that his ministry expects revenues that make up the shop price of imported cement as provided by the exporters to be transparent.

Egypt issues licences for new cement factories in Upper Egypt Egypt’s Ministry of Trade and Industry has issued new 14 licences for cement factories in Upper Egypt governorates, Minister Tarek Qabil announced Wednesday. The factories are set to operate with coal. Mr Qabil added that there are six factories currently operating with coal and are committed to following all environmental standards.

Spanish cement consumption up by 5.3% Cement consumption in Spain reached 11 408 287 t by the end of 2015, 5.3% more than in 2014. This figure confirms the slowdown in annual growth. Exports have fallen by 4.4% in 2015, reaching 9 233 979 t, 422826 t less than in 2014. In 2016, Oficemen expects a moderate growth of 7%, which however can be adversely affected by political instability. In this sense, the cement sector points out that a country without infrastructure investment cannot remain competitive, even in the tourism sector. Adapted from press release by Joseph Green.

[22]

INDIAN CEMENT REVIEW | March 2016

Philippines: double-digit rise in cement sales Cement sales in the Philippines increased by a strong 14.4 per cent YoY in 2015 to 24.36Mt, according to figures by the Cement Manufacturers’ Association of the Philippines (CeMAP). CeMAP President Ernesto Ordoñez said the increased sales was brought about by the large budget by Public Works Department for infrastructure development, private sector confidence in government and new housing projects with low interest rates. Favourable weather conditions with reduced rains during the year also proved to be a growth driver.

In the fourth quarter alone, cement sales increased by 16.7 per cent to 6.08Mt from 5.21Mt in the same period of 2014. Cement sales have been on an upswing since 2011, hitting 21.3Mt in 2014.

PCA: low crude prices impact oil well cement consumption With oil prices having declined dramatically since mid-2014 due to a combination of global supply and demand issues, the implications for the US economy, as well as for cement consumption have been significant, writes the PCA. It cautions that if oil prices stay near US$30/bbl or lower several consequences to cement consumption could arise that would impact the fall forecast projections. Given the complex nature of forecasting energy prices, PCA relies on projections from the Energy

Information Agency (EIA). At the time of the PCA’s fall forecast, EIA’s 2016 projection for West Texas Intermediate oil price was nearly 30 percent higher than its current projection, and further reductions may be forthcoming. In its latest Market Intelligence report, the PCA said: “Lower oil prices mean increased fuel savings (heating and automotive) for consumers. “The negative impacts of low oil prices, such as decreased drilling activity, for every one ton of oil well cement lost from reduced drilling activity.

Cemex post Q4 profit MEXICO Cemex shares surged after it posted a surprise fourth-quarter profit, reaping benefits from ongoing debt and costreduction programs and asset sales. The company, which operates in 50 countries and has a heavy U.S. dollar debt load.The currency volatility in the period caused a slight dip of 4 percent in its core profit, but that was also better than analysts’ expectations. The company reported a profit of $144 million compared with a loss of $178 million in the year-earlier quarter, helped by selling $700 million in assets and trimming its debt by $1 billion.

Cemex expects to reduce its total $15.3 billion debt by a further $2 billion in the next two years and it is planning to sell another $1 billion to $1.5 billion in assets over the same time frame, according to a presentation to investors. Cemex’s business in the United States made the biggest contribution to the company’s net sales. U.S. sales jumped 7 percent, boosted by high demand from the residential and infrastructure sectors, even as oil well demand for cement dipped further, the company said. ICR



Budget

BUDGET ANALYSIS

Union Budget was presented in the parliament on February 29th, 2016. ICR team has tried to capture the impact of the budget on cement, infrastructure and real estate as viewed by CRISIL Research and various experts in the industry.

CRISIL Budget Analysis Cement, impact positive Higher spending on infrastructure to beneďŹ t in medium term Positive Key budget proposals: s )NVESTMENT TOWARDS NATIONAL HIGHWAYS INCREASED BY 49 per cent to Rs 1032 billion (budgetary plus internal and extra budgetary resources). s 2S BILLION FOR IRRIGATION PROJECTS UNDER !CCELERATED )RRIGATION "ENElT 0ROJECT s /UTLAY TOWARDS URBAN INFRASTRUCTURE INCREASED PER cent to Rs 166 billion. s 2EADY MIX CONCRETE MANUFACTURED AT THE SITE OF construction exempted from excise duty. s #LEAN ENERGY CESS ON COAL DOMESTIC AND IMPORTED doubled to Rs 400 per tonne.

CRISIL Research’s View: The government’s focus on infrastructure is evident WITH THE TOTAL TARGETED SPENDING IN &9 INCREASING PER CENT OVER &9 4HIS ALONG WITH A NUMBER OF BENElTS PROVIDED ON AFFORDABLE HOUSING WOULD AID RECOVERY IN CEMENT DEMAND &URTHER THE RISE IN DUTIES AND TARIFFS IN THE form of clean cess on coal is expected to have a muted IMPACT ON TOTAL COST WHICH IS EXPECTED TO INCREASE PER CENT 0OWER AND FUEL COST ^ PER CENT OF COST OF SALES WILL INCREASE PER CENT (OWEVER AMID RISING DEMAND PLAYERS WILL BE ABLE TO OFFSET THIS WITH A HIKE IN prices.

Infrastructure, impact positive &OCUS ON DISPUTE REDRESSAL TAX CLARIlCATIONS TO AID investor conďŹ dence Positive Key budget proposals: s Budgetary allocation: Total outlay for infrastructure HAS BEEN INCREASED BY PER CENT TO 2S TRILLION ROADS RAILWAYS AND POWER THE BIGGEST BENElCIARIES /F THIS 2S TRILLION IS ON ACCOUNT OF BUDGETARY support s Roads: Investments for development of national

[24]

INDIAN CEMENT REVIEW | March 2016

HIGHWAYS IS PROPOSED TO BE HIKED PER CENT on-year to Rs 1032 billion. 4HIS IS ON THE BACKDROP OF SPENDING BEING PER CENT LOWER THAN &9 BUDGETED ESTIMATES IN THE segment s Railways: Total outlay raised by 24 per cent to Rs BILLION )N 2AILWAY "UDGET &9 THERE HAVE been numerous announcements for improvement of


Budget PORT CONNECTIVITY AND THREE NEW DEDICATED FREIGHT corridors s Airports & ports: .O NEW PROJECTS ANNOUNCED BARRING 2S BILLION EARMARKED FOR GREENlELD PORTS AND NATIONAL WATERWAYS /VERALL OUTLAY FOR CIVIL aviation has been reduced by 30 per cent to Rs 44 BILLION MAINLY IN LINE WITH REDUCED EQUITY SUPPORT to Air India s Funding availability: The government has provided ямВexibility for select state entities to raise capital up to 2S BILLION BY WAY OF BONDS ACROSS INFRA SEGMENTS s Other measures: $IVIDEND DISTRIBUTION TAX WAIVER TO be applicable on income distributed from SPVs to ).6)4 HOLDING ENTITY &URTHERMORE A MECHANISM TO RENEGOTIATE OF CONTRACTS AND A PUBLIC UTILITY BILL WILL be introduced to streamline resolution of disputes in infrastructure related construction contracts CRISILтАЩs View 4HE "UDGET REITERATED FOCUS ON ROADS AND RAILWAYS WITH ALMOST PER CENT OF THE INCREMENTAL GOVERNMENT spending (budgetary allocation plus inter and extra BUDGETARY RESOURCES FOCUSED ON THESE TWO SEGMENTS !LSO THE INCREASE IN BUDGETARY ALLOCATIONS OF 2S BILLION TOWARDS VARIOUS INFRA SEGMENTS WERE MUTED COMPARED WITH 2S BILLION IN THE LAST "UDGET This clearly reinforces a shift in funding dependence FROM GOVERNMENT OUTLAYS TO CASH mOWS OF GOVERNMENT ENTITIES AND THEIR BORROWING CAPABILITY TO DRIVE PUBLIC INVESTMENTS IN THE SECTOR /F THE 2S BILLION incremental budgetary support, almost Rs 130 billion is DIRECTED TOWARDS RAILWAYS FOLLOWED BY 2S BILLION TOWARDS POWER 2S BILLION FOR URBAN DEVELOPMENT AND

2S BILLION FOR ROADS RESPECTIVELY 'IVEN THE TARGETS relating to electriямБcation of villages, the Budget provides a thrust on investments in the distribution segment of POWER WITH A PER CENT ON YEAR INCREASE IN PLANNED EXPENDITURE FOR KEY SCHEMES &OR %8)- FOCUSED SECTORS SUCH AS AIRPORTS AND PORTS FOCUS ON SINGLE WINDOW CUSTOMS CLEARANCE BACKED BY PROCESS SIMPLIlCATION IS TARGETED TOWARDS DE BOTTLENECKING OF CAPACITY AMID LOWER BUDGETARY allocations. The Budget continued to build up investor conямБdence for investing in infrastructure segments by providing clarity on dividend distribution tax for entities LIKE ).6)4S AND GIVING CONlRMATION ON CONTRACT renegotiation and introduction of the public disputes UTILITY BILL 4HIS COMES AT A TIME WHEN PRIVATE SECTOR INTEREST IN INFRASTRUCTURE DEVELOPMENT IS LOW AND THE balance sheets of many developers in the sector remain stretched. We believe the rise in overall government spends WILL BOOST EXECUTION OF NATIONAL HIGHWAY PROJECTS TO ABOUT KM ANNUALLY IN AND CREATE A ROBUST CONSTRUCTION OPPORTUNITY FOR ROAD AND RAILWAY engineering procurement & construction companies. 7HILE THE "UDGET PROVISIONS ARE POSITIVE IT WILL continue to put to test the execution capability of IMPLEMENTING AGENCIES SUCH AS THE .ATIONAL (IGHWAYS !UTHORITY OF )NDIA AND )NDIAN 2AILWAYS 4HIS COMES ON THE BACKDROP OF OVERALL SPENDING IN NATIONAL HIGHWAYS BEING PER CENT LOWER IN &9 AS COMPARED WITH THE allocations. Addressing on-ground issues such as clearances and land acquisition becomes extremely CRITICAL TO ENSURE A SHARP INCREASE IN PROJECT EXECUTION

Real Estate: Affordable housing gets a shot in the arm; commercial realtors also beneямБt Positive Key budget proposals: s -EASURES ON AFFORDABLE HOUSING PROJECTS s )NTEREST DEDUCTION LIMIT UNDER 3EC %% INCREASED FROM 2S LAKH TO 2S LAKH FOR lRST TIME HOME buyers (applicable only on loans not exceeding Rs LAKH FOR HOUSES COSTING BELOW 2S LAKH AND SANCTIONED DURING !PRIL TO -ARCH for the entire loan duration s 5NDER THE 0RADHAN -ANTRI !WAS 9OJANA PER CENT DEDUCTION ON PROlTS FROM HOUSING PROJECTS APPROVED BETWEEN *UNE AND -ARCH AND COMPLETED in three years of getting approval and satisfying the FOLLOWING CONDITIONS refer to Table 1

s 3ERVICE TAX EXEMPTION ON CONSTRUCTION OF AFFORDABLE houses up to 60 square meters (646 sq ft) under any central or state government scheme, including public-private partnerships (PPPs) s 0HASING OUT OF DEDUCTIONS ALLOWED ON CAPITAL EXPENDITURE OTHER THAN LAND GOODWILL AND lNANCIAL ASSETS UNDER 3EC !$ FROM PER CENT TO PER CENT W E F !PRIL FOR AFFORDABLE HOUSING PROJECTS s %XEMPTION OF DIVIDEND DISTRIBUTION TAX $$4 ON distribution made by special purpose vehicles (SPVs) TO REAL ESTATE INVESTMENT TRUSTS 2%)4S s 2EVIVAL OF NATIONAL LAND RECORD DIGITISATION SCHEME WITH A FUNDING OF 2S BILLION s PER CENT +RISHI +ALYAN #ESS ON ALL TAXABLE SERVICES

March 2016 | INDIAN CEMENT REVIEW

[25]


Budget Graph-1 CRISIL Research’s View Boost to affordable housing - especially tier II and tier III cities Affordable housing segment has received a SHOT IN THE ARM WITH THE ABOVEMENTIONED MEASURES AND WILL SEE INCREASED DEMAND AND PPPs in the medium term. Increase in interest deduction for ďŹ rst-time HOME BUYERS WILL BOOST DEMAND FOR HOMES PRICED IN THAT BRACKET #URRENTLY NEARLY PER CENT OF THE UPCOMING SUPPLY IN THE MAJOR CITIES TRACKED BY #2)3), 2ESEARCH IS PRICED UNDER 2S LAKH 4HE PROPORTION OF UPCOMING SUPPLY IN THIS PRICE BRACKET IN TIER )) and tier III cities is expected to be even higher. Refer to Graph 1 Table-1 (sq mt)

4 Metros

Other cities

-AXIMUM SIZE OF house

30

60

-INIMUM SIZE OF land parcel

1,000

2,000

/THER

7ITHIN KM OF municipal limit

(OWEVER THE PHASING OUT OF DEDUCTIONS ON CAPITAL EXPENDITURE WILL BE A DAMPENER TO SOME EXTENT 2EMOVAL OF $$4 FOR 306S DISTRIBUTING INCOME TO 2%)4S IS A POSITIVE FOR DEVELOPERS WITH SIGNIlCANT exposure to rental-yielding real estate assets. $IGITISATION OF LAND RECORDS WILL AID TRANSPARENCY IN THE REAL ESTATE SECTOR AND HELP TAP FOREIGN CAPITAL INmOWS in the medium to long term. Krishi Kalyan Cess, applicable for underCONSTRUCTION PROJECTS WILL HURT THE INDUSTRY MARGINALLY

However, minimum alternate tax will apply.

Union Budget 2016-17 brings hopes of revival for the cement industry h2S CRORE OF OUTLAY THAT HAS BEEN KEPT FOR roads and infra by the ďŹ nance minister is very promising AND THE INDUSTRY WILL GET A LOT OF BENElTS FROM THIS particular allocation of funds,â€? said Amandeep Gupta, JOINT #%/ OF /#, #EMENT THE mAG SHIP COMPANY OF $ALMIA 'ROUP -IDDLE AND LOW INCOME GROUPS ARE BENElTTED BY providing exemption on service tax on construction of affordable home and increase in tax exemption on home LOAN A BOOST TO lRST TIME HOME BUYERS 4HAT MAKES housing more affordable. Infrastructure being part of THE KEY PILLARS OF THE BUDGET IS SOMETHING TO LOOK FORWARD TO IN THE LONG RUN 7ITH ROAD PROJECTS COMING BACK ON TRACK 4HE INDUSTRY HAS ALSO ACKNOWLEDGED THAT THE lNANCE minister’s approach for this budget has been very TARGETED h(E HAS LAID A STRUCTURE FOR AN INCLUSIVE GROWTH

[26]

INDIAN CEMENT REVIEW | March 2016

rather than distributing subsidies,� said Gupta. The cement sector for quite some time had been ASKING FOR THE REMOVAL OF EXCISE DUTY ON READY MADE CEMENT WHICH WAS PER CENT 4HE INDUSTRY AMONG its recommendations to the government has also been ASKING FOR THE INITIATIVES TO LOWER THE TAX BURDEN ON THE INDUSTRY )N ITS ANNUAL REPORT CMA ACKNOWLEDGED THAT CEMENT IS HIGHLY TAXED AT PER CENT OF EX FACTORY PRICE WHICH IS EVEN MORE THAN THE TAXES levied on the luxury items. h%XEMPTION OF EXCISE DUTY ON 2-# IS ONE OF THE ENCOURAGING MOVES TAKEN BY THE lNANCE MINISTER 4HIS STEP IS ANOTHER VALUE ADDITION IN MAKING THE BUDGET positive for the cement sector,� said MS Mani, senior director, Deloitte. Source: ECONOMIC TIMES


Budget Doubled Coal Cess to increase power tariff by 15 paisa/unit 4HE EFFORT OF THE .$! GOVERNMENT TO GIVE enhanced push to clean energy and environment CONSERVATION WOULD LEAD TO SPIKING OF POWER PRICE 4HE GOVERNMENT FOR THE THIRD TIME IN A ROW INCREASED THE cess on coal, lignite and pite production to Rs 400 per TONNE TO FUND CLEAN ENERGY PROJECTS As the increase in price of coal comes under ‘change OF LAW REGULATION OF THE %LECTRICITY !CT AND 4ARIFF 0OLICY ANY CHANGE IN PRICE WOULD BE REmECTED IN THE lNAL POWER TARIFF !S PER INDUSTRY CALCULATIONS THIS WOULD AMOUNT TO A CHANGE OF PAISA PER UNIT IN THE lNAL POWER TARIFF )NDIAN POWER INDUSTRY CONSUMES CLOSE TO MILLION TONNE OF COAL ANNUALLY AND WITH DOUBLING OF CESS CLOSE TO BILLION UNITS OF ELECTRICITY WILL WITNESS THE IMPACT of increased price of coal. $URING THE CURRENT lSCAL THE COAL CESS COLLECTED WAS AROUND 2S CRORE TAKING THE TOTAL TO

2S CRORE )N THE LAST 5NION "UDGET CESS ON COAL WAS DOUBLED TO 2S PER TONNE )N HIS MAIDEN BUDGET IN *ULY !RUN *AITLEY INCREASED IT TO 2S PER TONNE FROM 2S PER TONNE 4HE CESS IS COLLECTED AS .ATIONAL #LEAN %NERGY &UND AND IS DISBURSED FOR RENEWABLE ENERGY BASED INITIATIVES AND POWER PROJECTS "UT WITH THE CHANGE IN NAME TO #LEAN %NVIRONMENT &UND IT IS EXPECTED THAT THE FUND WOULD BE USED FOR environment conservation drives of the government AS WELL 4HE HEAVY WEIGHT PROJECTS DEPENDING ON .#%& FOR THEIR FUNDING ARE 2S CRORE 'REEN %NERGY #ORRIDOR PROJECT AND TO BE LAUNCHED .ATIONAL 7IND %NERGY -ISSION WHICH WILL ENTAIL A TOTAL EXPENDITURE OF 2S CRORE Source: BUSINESS STANDARD

Steel, cement to cost more Shailendra Chouksey, President, Cement Manufacturers’ Association, AND WHOLE TIME DIRECTOR *+ ,AKSHMI #EMENT SAID CEMENT PRICES WOULD RISE BY A BAG JUST ON ACCOUNT OF THE CLEAN ENVIRONMENT CESS “The total tax incidence on cement is over 60 per cent of the ex-factory realisation. The Krishi Kalyan #ESS AT PER CENT ON ALL TAXABLE SERVICES FROM *UNE WILL PUSH UP PRODUCTION COSTS FURTHER v HE ADDED Ready-mix woes 2EADY MIX CONCRETE 2-# PLAYERS BELIEVED THAT their long-pending demand of exemption of excise duty

ON 2-# PLANTS HAS lNALLY BEEN ADDRESSED BUT IT IS APPLICABLE ONLY TO DEDICATED 2-# PLANTS ON SITE THE PERCENTAGE OF WHICH IS ALMOST NEGLIGIBLE SAID #HOUKSEY Ajay Kapur, Managing Director, Ambuja Cements, SAID WHILE PROlTABILITY OF THE CEMENT INDUSTRY WOULD BE IMPACTED BY THE INCREASE IN CESS THE EXCISE ON ($0% HIGH DENSITY POLYETHYLENE PACKAGING BAGS FOR PER CENT TO PER CENT AND DECREASE IN SALE COMMISSION FROM PER CENT TO PER CENT WOULD ADD TO THE INDUSTRY S WOES Source: THE HINDU BUSINESS LINE

Mahendra Singhi, Group CEO-Dalmia Cement in conversation with ICR The focus of the budget has been on rural India and lNANCE MINISTER HAS THOUGHT @HOW TO BOOST UP THE ECONOMY ,ARGER ATTENTION HAS BEEN PAID TO THE FARM SECTOR &- S EFFORTS WILL HAVE MULTIPLYING EFFECT ON THE economy. The second important aspect of the budget is allocation for infrastructure. Never before such ALLOCATION WAS DONE 4HERE ARE MANY PROJECTS WHICH HAVE been held up and some remedial measures are required TO BE TAKEN TO RESCUE THESE PROJECTS &UNDS HAVE BEEN MADE AVAILABLE FOR NOT JUST HIGHWAYS BUT ALSO FOR @0RADHAN -ANTRI 'RAM 3ADAK 9OJANA WHICH IS MAINLY FOR RURAL )NDIA 4HE ALLOCATION FOR -.2%'! IS ANOTHER positive feature of rural focus.

7E WERE EXPECTING INDUSTRY STATUS WILL BE GIVEN TO infrastructure but that did not happen. Irrigation has BEEN PROVIDED SEPARATE FUNDING WHICH IS A LONG TERM INVESTMENT AND IT IS CERTAINLY A WELCOME FEATURE OF THE budget. 4HE ENHANCEMENT OF CARBON CESS TO 2S WILL have some impact but it is a movement in the direction OF 'REEN %NERGY )T WILL SUPPORT GENERATION OF 3OLAR AND 7IND POWER 7HILE GIVING CONCESSIONS THE BUDGET TAKES INTO account affordable housing, rental housing and ďŹ rst time HOME BUYERS 4HE TAXATION ON PROVIDENT FUND WITHDRAWN IS SOME HOW DIFlCULT TO DIGEST )T IS SLIGHTLY GOING AGAINST the principles of saving habits.

ICR

March 2016 | INDIAN CEMENT REVIEW

[27]


M&A Update

UltraTech to acquire Jaypee’s cement business The developments on the national and international cement scene are taking a new turn and we would like to provide our readers the latest information on mergers and acquisitions.

I

n one of the biggest transactions in the cement industry, the debt-laden Jaypee group signed a binding agreement to sell its cement business, with a capacity of 18.4 million tonnes per annum (mtpa), to the Aditya Birla Group’s UltraTech Cement, for an enterprise value of Rs 16,500 crore. The deal includes the two plants in Madhya Pradesh that were part of an earlier agreement scrapped on Friday. The deal had been cancelled as the Mines and Minerals Development and Regulation (MMDR) Act prohibits transfer of mines. The government is expected to allow the transfer by making changes to the Act in the Budget session. “The valuation of Rs 16,500 crore for 18.4 mtpa operating capacity is certainly at a discount to what it would have commanded if the assets were sold separately. UltraTech has been able to get a good deal as there are not many buyers for such a large capacity,” said a banker familiar with development. The deal gives UltraTech access

[28]

INDIAN CEMENT REVIEW | March 2016

to the markets of Satna, Uttar Pradesh East, Himachal Pradesh and coastal Andhra Pradesh, where it does not have a presence. When the transaction is complete, UltraTech’s capacity will rise to 90.7 mtpa. Adding the cement capacities of Century Textiles and Kesoram Industries, the total for all the Kumar Mangalam Birla-owned companies will exceed 100 mtpa, making the group India’s biggest in the sector. Rs 21,000 crore value was expected by the Jaypee group until recently. However, with a March-end deadline to repay, Jaypee was not in a strong position to negotiate with the lenders. “We had taken steps to divest two cement plants in Madhya Pradesh (to UltraTech) in January 2015, but this could not take place, a matter of great concern, as this affects even groups like us which are proactively pursuing the process of de-leveraging through disinvestment. In the given situation, it has now been considered appropriate to divest a significant portion of the total cement capacity in favour of UltraTech,” said Manoj

Gaur, executive chairman of Jaiprakash Associates Ltd. Private equity entity KKR, Dalmia Cement and JSW Cement were the other bidders for Jaypee’s cement units. UltraTech won with the best bid, a source said. Group firm Jaiprakash Power had also sold two hydropower units, a capacity of 1,391 Mw, for Rs 9,300 crore to JSW Energy; it is in talks for sale of a 500-Mw project at Bina in Madhya Pradesh. However, analysts at Credit Suisse had in December said the 1,391-Mw hydro plants had contributed 59 per cent to the company’s 2014-15 operating earnings, so the loss in this by selling these projects would result in the ratio of debt to such earnings moving up, not down. The readers may recall that earlier just few days before UltraTech had called off Rs 5,400 crore deal with Jaiprakash Associates for acquiring two of latter’s plants in Madhya Pradesh. The deal was subject to approval from the Bombay High Court. The Aditya Birla group company, said, “The High Court has indicated that based on the recent amendments in the provisions of the Mines and Minerals (Development & Regulation) Act, 1947 preventing transfer of mines granted other than through auction, and in the absence of any clear timelines for any amendment in the Act, the court cannot sanction the Scheme. Under the circumstances, it was decided to apply for withdrawal of the Scheme ICR filed before the High Court.”


Cover Story: Fibre Cement Sheets

Photo courtesy: HIL Limited

Fall and Rise

of Fibre Cement sheets The use of Asbestos Fibre is increasing globally, after a decline in the 1990s. A study shows that a substantial increase in consumption in about 12 countries particularly from the year 2000 to 2004. Use of Asbestos has always been a contentious subject to deal with, we have tried to give a fair picture on the subject.

N

ature has provided us a wonderful material which is in use in the present form for more than 100 years. We are talking about Asbestos. It is a naturally occurring mineral that is commonly used as building materials. Asbestos consists of long, thin fibres which make it as a good thermal insulator. For a thousands of years, people were knowing this fire-resistant, strong yet flexible material. From the early 1900s and downwards, Asbestos has been largely used in the fields of construction, maritime, industrial and commercial products.

More about the material properties and it’s superiority has been stated in the interview given by John Nicodemus of “The Fibre Cement Products Manufacturers’ Association” and Jayachandran of HIL Ltd. The known use of Asbestos is not merely to provide reinforcement to the cement sheets but the same material due to it’s properties find its usage in heat and electrical insulating materials like gloves used in furnace, making rope for electrical and heat insulation, industrial gaskets, protective clothing for use in high temperature areas etc.

Sheet panels and false ceiling tiles is another use of Asbestos fibre. But the major one has remained in making corrugated sheets. Asbestos is a very good additive with cement which adds strength to the material. Compared to other cement additives, Asbestos is cheap yet durable. The technology of producing sheets is pretty simple and quite old. Some improvements have happened over time but these are not major ones as stated by Jayachandran of HIL Ltd. For producing the sheets and other products there are well laid out specifications by Bureau of Indian March 2016 | INDIAN CEMENT REVIEW

[29]


Cover Story: Fibre Cement Sheets Table 1: Extract of the claims made by “The Fibre Cement Products Manufacturers’ Association” S.No.

Characteristics

Asbestos Cement Sheets

Galvanized Aluminium Sheets

1

Life Span(Years)

50 yrs (Min) Non-Corrosive

10-15 yrs

2

Fire Rating

Fire Retardant and Non Combustible

Tendency to twist and melt

3

Thermal Insulation & Accoustic Rating

Good

Poor

4

Energy Required in Production (Kilowatthours(kwh)/SQ.M)

16

69

5

Weather Effect

None

Corrosion at drilled holes and where galvanizing is cracked

6

Noise Level

Low

High

7

Cost

Low

High

Standards. The detailed manufacturing process is given else where in the issue.

Advantages of Asbestos In terms of building roof shingles, they could last for about fifty to sixty years. Compared to plastic and wood, Asbestos is undoubtedly first in terms of longevity and cost together. More on the advantages you can read the interview of John in this issue. Particularly in a country like India it will be just impossible to stop use of corrugated Asbestos cement sheets simply due to cost consideration and number of users coming from economically weaker class.

Disadvantages of Asbestos Among the entire family of

Asbestos fibres, Chrysotile or white Asbestos is widely used and supposed to be safe in it’s application as stated by both Jayachandran and John. The Amphibole or black variety variety of Asbestos has been prohibited, the world over. However World Health Organization and International Labour Organization do not agree with the statement.Views of both these organisations have been printed elsewhere for our readers. Those who are directly exposed to Asbestos like construction workers and carpenters, can be afflicted with lung cancer and mesothelioma. Mesothelioma is defined as a rare cancer that affects the linings of the lungs or abdomen. Because the disease typically takes 20 to 40 years

Table 2: Life cycle cost comparison claimed by the manufacturer of metal sheets S.No. Item 1 2 3 4 5 6 7

[30]

Thickness (mm) Qty(Kg) required per sq. mtrs of area Price (Rs./ Kg.) Total Cost per Sq. mtr. Life Span Net Cost per year per sq. mtrs Scrap Value after life span Net cost per year per sq. mtr (Considering Scrap value)

INDIAN CEMENT REVIEW | March 2016

Aluminium GI Plain Plain 0.7 0.5 2.5 3.9 220 550 40 13.8 250 7.5

42 165.5 10 16.5 11.8 15

Asbestos Bare 5 13.5 15.4 207.9 15 13.9 0 14

to manifest, workers can go through their careers without realizing they are getting sick. Due to its health risks, certain Asbestos products are banned in many countries, especially in Europe, but there is no ban in U.S and Canada. Asbestos in the bound form or combined form is not at all dangerous but loose Asbestos fibres are always dangerous. What is utmost important is letting loose Asbestos fibres in air. Asbestos in the loose form which ever variety is certainly dangerous because the chances of inhaling Asbestos are highest in loose form. In the past as stated by Jayachandran was extremely dangerous. If there is careless construction method concerning Asbestos, the Asbestos fibres can be lodged into the air. Though it might seem that there’s nothing special about it, Asbestos fibres pose a great risk to one’s health. The immediate competitor for the corrugated cement Asbestos sheets have been the metal sheets either Aluminium or Galvanized Iron. But these two products are miles away in the initial cost. There have been claims and counter claims on the advantages made by Asbestos Sheet producers and Metal sheet producers. We produce both comparisons and leave it to the judgment of the readers. Refere to Table 1 and Table 2.


Cover Story: Fibre Cement Sheets

Elimination of asbestos-related diseases There have been many negative reports published about use of Asbestos, we tried to get some information from the website of World Health Organisation.

A

ll forms of asbestos are carcinogenic to humans. Exposure to asbestos, including chrysotile, causes cancer of the lung, larynx and ovaries, and also mesothelioma (a cancer of the pleural and peritoneal linings). Asbestos exposure is also responsible for other diseases such as asbestosis (fibrosis of the lungs), and plaques, thickening and effusion in the pleura. Currently, about 125 million people in the world are exposed to asbestos at the workplace. According to the most recent WHO estimates, more than 107,000 people die each year from asbestos-related lung cancer, mesothelioma and asbestosis resulting from exposure at work. Approximately half of the deaths from occupational cancer are

estimated to be caused by asbestos. In addition, it is estimated that several thousand deaths annually can be attributed to exposure to asbestos in the home. It has also been shown that co-exposure to tobacco smoke and asbestos fibres substantially increases the risk for lung cancer – and the heavier the smoking the greater the risk.

Health Assembly requested WHO to carry out a global campaign for the elimination of asbestos-related diseases “…bearing in mind a differentiated approach to regulating its various forms - in line with the relevant international legal instruments and the latest evidence for effective interventions…”. …”. Cost-effective interventions for prevention of occupational lung diseases from exposure to asbestos are among the policy options for implementing the global action plan for the prevention and control of noncommunicable diseases (20132020), as endorsed by the Sixty-sixth World Health Assembly in resolution WHA66.10 in 2013.

WHO response The World Health Assembly Resolution 58.22 on cancer prevention urges Member States to pay special attention to cancers for which avoidable exposure is a factor, including exposure to chemicals at the workplace and in the environment. With Resolution 60.26, the World

Position on safety in the use of asbestos ILO has taken similar stand as that of WHO. Two important clauses from ILO statement on Asbestos are reproduced here.

T

he Occupational Cancer Convention, 1974 (No. 139), provides for the measures to be taken for the control and prevention of occupational hazards caused by carcinogenic substances. Key provisions of Convention No. 139 concern: s 0ERIODICALLY DETERMINING THE carcinogenic substances and agents to which occupational exposure shall be prohibited or control; s -AKING EVERY EFFORT TO HAVE carcinogenic substances and agents to which workers may be exposed in the course of their work replaced by non-carcinogenic

substances or agents or by less harmful substances or agents; s 2EDUCING THE NUMBER OF WORKERS exposed to carcinogenic substances or agents and the duration and degree of such exposure to the minimum A Resolution concerning asbestos was adopted by the ILO Conference at its 95th Session in 2006. Noting that all forms of asbestos, including chrysotile, are classified as human carcinogens by the International Agency for Research on Cancer (IARC), and expressing its concern that workers continue to face serious risks from asbestos exposure,

particularly in asbestos removal, demolition, building maintenance, ship breaking and waste handling activities, it calls for: s 4HE ELIMINATION OF THE FUTURE USE of asbestos and the identification and proper management of asbestos in place as the most effective means to protect workers from asbestos exposure and to prevent future diseases and deaths. s 4HE 2ESOLUTION ALSO UNDERLINED that the ILO Convention on Safety in the Use of Asbestos, No. 162, should not be used to provide a justification for, or endorsement of, the continued use of asbestos.

March 2016 | INDIAN CEMENT REVIEW

[31]


Cover Story: Fibre Cement Sheets

A perspective on ‘Fibre based corrugated cement sheets’ John Nicodemus, Executive Director, The Fibre Cement Products Manufacturers’ Association

T

here is wide spread misunderstanding about use of asbestos and products made out of Asbestos. In few of the countries mainly in Europe it has been banned, however in many other countries like U.S.A., Canada the use is still allowed. We were in Q &A session with John Nicodemus of ‘The Fibre Cement Products Manufacturers’ Association’ a body which represents the cement based corrugated sheet manufacturers. He has tried to throw light on some of the facts and myths associated with asbestos cement products.

What is Chrysotile Asbestos Fibre? Asbestos is a naturally occurring mineral found in underground rock formations. For commercial purposes, it is recovered by mining and rock crushing. Fine fibres, invisible to the

eye, are present in the air and water in every region of the globe. Hence, all of us may be inhaling and also ingesting them through drinking water every day. “Asbestos” was a commercial term given to collective group of 6 naturally occurring minerals whose crystals occur in fibrous forms. Though commonly referred as “Asbestos” these 6 silicate minerals come from two distinct groups and are chemically and mineralogically different. There are two distinct varieties of asbestos (i) Serpentines (Chrysotile white asbestos) and (ii) Amphibole variety comprises of amosite, (brown asbestos), crocidolite (blue asbestos), tremolite, actinolite, and anthophyllite, Mining, production and usage of Amphibole variety of asbestos have been prohibited all over the world for decades now as they are considered un-safe.

Only Chrysotile variety of fibre (white asbestos), which is considered safe to use under controlled conditions, is in commercial use now. Indian asbestos cement sheet and pipe manufacturers also use only chrysotile variety which incidentally is all imported mostly from Russia, Kazakhstan and Brazil. Canada’s and Zimbabwe’s production and exports have become rather insignificant of late. Chrysotile asbestos fibre is also mined in India in minuscule quantities and so is not of any consequence. Chrysotile asbestos fibre, (composed mainly of magnesium and silica), is a great reinforcing agent. While its tensile strength is greater than steel, it has other rare and highly valued fire-retardant, chemicalresistant and heat-insulating qualities. In fact it is a magic mineral. Bio-persistence studies have been

Table 1: Some Misconceptions MYTHS:

FACTS:

Asbestos cement is dangerous material.

Asbestos cement is completely safe. It is not corrosive, reactive, ignitable or toxic.

Inhalation of even one fibre of asbestos is harmful.

Thousands of asbestos fibres, invisible, are inhaled by us everyday from natural resources, and cleared off by natural clearance mechanisms without any harm. Asbestos cement has only 7-9% asbestos fibre that is bound with cement and cannot be released into air. Even if any fibre is released, it’s chemical characteristics change because of bonding with cement and it cannot be called asbestos fibre.

Asbestos cement water pipes cause colonic carcinoma and other diseases.

Asbestos fibres in water are ingested without any harm whatsoever. Therefore the AC water pipes pose no threat. Even the World Health Organization permits use of chrysotile asbestos cement pipes.

Developed countries have banned asbestos cement products. Only poor countries need it

No prohibition of asbestos products in over 77% of world nations.

Asbestos cement production is banned in the USA

The US Court of Appeals rejected a proposed ban on scientific grounds. Asbestos-cement products are not banned in the USA.

[32]

INDIAN CEMENT REVIEW | March 2016


Cover Story: Fibre Cement Sheets EXTRACT OF THE POLICIES ADOPTED BY GOVERNMENT OF INDIA ON USE OF ASBESTOS s 4HE -INISTRY OF )NDUSTRY 'OVERNMENT OF )NDIA IN *ULY HAS IN DE licensed the industry. The only requirements are approvals from the State Pollution Control Boards and the Central Ministry of Environment, Forests & Climate Change. s 4HE .ATIONAL 3TUDY ON 7ORK %NVIRONMENT IN !SBESTOS 0RODUCTS Manufacturing Industry was conducted by the Central Labour Institute, -INISTRY OF ,ABOUR 'OVT OF )NDIA IN THE YEAR IN WHICH workers exposed to asbestos had participated. The duration/ period of their exposure ranged from 6 to over 20 years. The conclusion of the Study: “No established case of asbestosis was detected during the Studyâ€?. s 4HE -INISTRY OF %NVIRONMENT 'OVT OF )NDIA HAS BEEN GIVING APPROVALS for setting up new units for manufacture of asbestos based products after evaluating the environmental issues and stipulating various safeguards. s 4HE -INISTRY OF )NDUSTRY -INISTRY OF ,ABOUR -INISTRY OF %NVIRONMENT Ministry of Consumer Affairs, Bureau of Indian Standards, etc. have laiddown regulations, standards, guidelines and recommendations speciďŹ c to the asbestos industry, in line with those of International Labour Organization, World Health Organization and other bodies. The Central and State Pollution Control Boards, Labour and Factory Inspectors also regularly monitor the factories’ compliance with the mandatory safety standards and pollution control levels. s )N )NDIA ASBESTOS CEMENT INDUSTRY STRICTLY IMPLEMENTS THE PROVISIONS AND recommendations of International Labour Organization’s Convention No. 162 titled “ Safety in the Use of Asbestos “ to ensure safety in the use of asbestos. s !ND ALSO COMPLIES WITH THE -ODEL 2ULES OF THE -INSTRY OF ,ABOUR relevant to this industry under the Factories Act. carried out on number of different respirable particles. Regarding asbestos ďŹ bres, it was repeatedly demonstrated that chrysotile displays low bio-persistence, as opposed to the amphibole asbestos ďŹ bre types which display exceedingly long biopersistence.

What are Fibre-Cement (AC) products? AC products are made with a mix of chrysotile ďŹ bres (7-9 per cent), cement (about 40 per cent), Fly Ash (about 30 per cent) and the rest being wood pulp and water. Over 95% of chrysotile asbestos ďŹ bre imports of India go in to chrysotile-ďŹ bre cement sheet and pipe production. AC Sheets have been used in India for over 80 years. Being

weather-proof ďŹ re resistant, noncombustible, and corrosion resistant, these sheets are durable practically ageless and maintenance free, whereas metal sheets corrode and deteriorate with age and exposure. AC products, which consume low energy in manufacture and do not in any way deplete the natural resources, meet the needs of the country in its developing economy in the context of rapidly rising population and limited resources. AC products are manufactured under (ISI) licence strictly conforming to the speciďŹ cations of Bureau of Indian Standards. IS 459/1992 for Corrugated RooďŹ ng Sheets, IS 2098/1997 for Building Boards, IS 2096/ 1992 for Flat Sheets and IS 1626 (Part III)/ 1994 for

RooďŹ ng Accessories. AC Pressure Pipes are covered by IS 1592/1989.

Explain the negative reports on Asbestos Fibre. The bias against the use of asbestos ďŹ bre in a few countries is due to the adverse Western media coverage relating to altogether different usages of Amphiboles – brown and blue asbestos - in the past in those countries i.e. sprayed on asbestos and friable low-density asbestos insulation used under uncontrolled conditions at that time due to lack of adequate scientiďŹ c knowledge. The severe health problems arose in the distant past in the Western countries because of use of mixed ďŹ bres, predominantly blue (crocidolite) ďŹ bre in various applications, such as spraying, with dust levels going up to 100s of ďŹ bres / cc and beyond. But currently the only variety of asbestos used in chrysotile ďŹ bre cement rooďŹ ng products and pipes is “chrysotileâ€?. According to scientiďŹ c research by Dr David M. Bernstein and the emerging bio-persistence data, chrysotile variety of asbestos, even if inhaled in accepted levels, clears from the lungs within 3 to 11 days. But crocidolite, and other amphibole varieties of ďŹ bres may take up to 500 days for clearance from the lungs because of very high iron content and therefore have been determined as a major health risk and consequently banned all over the world. But the safer chrysotile variety’s usage is allowed. Though these particular usages of amphibole varieties have since been discontinued, the claims relating to the past keep appearing in the media resulting in general confusion. (there is no such usage in India or anywhere in the world now). But, once the scientiďŹ c research into the risks of asbestos was set in motion, development and installation March 2016 | INDIAN CEMENT REVIEW

[33]


Cover Story: Fibre Cement Sheets Table 2: Comparison between AC pipes and others

Hon’ble Supreme Court turned down another petition to ban asbestos for lack of evidence about the health risks arising out of asbestos.

UPVC pipes

Ductile iron pipes

AC pipes

Life span

20 to 30 years

20 to 30 years

50-60 years or more

Current prices

17-18% more expensive than AC pipes

80 to 85 % more expensive than AC Pipes

Are Asbestos and AsbestosFibre-Cement products still used in other countries?

Other characteristics

Susceptible to high temperatures and hydrocarbon contamination and breaking at joints

Being heavier, incur higher transportation and installation costs. Also carry risk of leakage due to corrosion.

There is no ban on production or usage of asbestos-ďŹ bre-cement sheets or pipes in USA and Canada and in about 77 per cent of the other world nations.Very few countries have regulations restricting use of asbestos based products due to high economic development, improved standards of living and changed life styles. The USA and Canada still import AC pipes for water transportation. The USA also uses some quantities of asbestos for use in the space rocket launching equipments. !CCORDING TO 53 'EOLOGICAL Survey, during the year 2014, even some of the countries in the European Union have imported small quantities of asbestos for speciďŹ c uses. These countries include Spain, UK, Romania, Slovakia, Peru, South Korea, Czech Republic, Austria, "AHRAIN )N &RANCE 'ERMANY Italy, Argentina had imported some asbestos. Obviously for usage in some critical applications, where no effective substitute to chrysotile could be found in spite of researches. Canada and USA are said to still import chrysotile asbestos pipes for potable water carriage.

of pollution control systems took place, enabling the asbestos mining and asbestos cement industries to maintain safe and acceptable levels of dust pollution at the work places. Once the permissible levels of exposure were deďŹ ned, the 'OVERNMENTS HAVE STEPPED IN AND LAID down pollution control regulations and the mechanisms to enforce their compliance.

What is the situation in India? In India, only the chrysotile variety of asbestos ďŹ bre, which is considered safe, is used in asbestoscement products, namely, sheets and pipes. The ďŹ bres are mixed and bonded with cement and other raw material, with no chance of escaping into the atmosphere on normal usage. Workers in asbestos-ďŹ bre-cement product industry in India have not had any adverse health effects in spite of decades of service, there being no risk of exposure to asbestos dust because of pollution control measures installed in the factories. Health of the workers is closely monitored as per directives and regulations of the government agencies. India uses only about 20% of the chrysotile asbestos produced in the world. The rest is used in several other countries, where too, these chrysotile ďŹ bre cement products are accepted as ideal and safe. The Russian

[34]

INDIAN CEMENT REVIEW | March 2016

'OVERNMENT $ECREE .O OF *ULY 1998 stated “Excessively hasty and not well founded refusal to use chrysotile asbestos does not have a sufďŹ cient medical and biological substantiation and can bring about serious negative consequences for economy of a great number of countries. The ban in some countries did not consider national social and economical interests, scientiďŹ c research results nor the latest scientiďŹ c and technical achievements regarding production and use of chrysotile asbestosâ€?.

Are there any court rulings on Asbestos Fibre Usage? Concerns caused by the past medical ďŹ ndings in the Western countries, when asbestos applications were indiscriminate and bereft of pollution controls, resulted not only in anti-asbestos media campaign and litigation, but also led some ENVIRONMENTAL ACTIVISTS AND .'/S to the Courts appealing for effective remedies. The Hon’ble Supreme Court of India has, in Jan 1995, disallowed one such appeal and permitted the continued usage of asbestos and asbestos products, as the petitioners failed to produce evidence to prove that asbestos-based items or their manufacturing process in India were dangerous to health. Again in January 2011, the

Is it wrong to use Asbestos Fibre pipes for carrying drinking water? No. Even the World Health Organization has approved the usage of AC pipes for drinking water. As stated earlier, the most healthconscious USA and Canada use AC pipes for drinking water transportation. Inputs are given by John Nicodemus, Executive Director,The Fibre Cement Products Manufacturers’ Association


Cover Story: Fibre Cement Sheets

Chrysotile Asbestos is not associated with any health hazards Jayachandran V, Chief Operating Officer-Roofing Business, HIL Ltd

P

roducing cement based asbestos sheets is very old techniques followed world over. The product is very versitle and widely used in the industrial structures and in rural area. There have been some improvements in the manufacturing process over a period of time. We catch up with Jayachandran V, COO- Roofing Business of HIL Ltd.

What is the Present Technology used? The Asbestos fiber cement technology is nearly 120 years old. The Hat Chek Process is the most widely used technique and this technology is supported by other processes such as extrusion, flow on, spray deposition and filter pressing. We, at HIL have used the above technology to design a trademark product “NewKor”. Our manufacturing process is fully automated. We have developed an in-house Auto Trolley Handling System (ATH) and installed digital monitoring and control system to further reduce human interaction in the manufacturing process.

What kind of fibers are used? At HIL, we use Chrysotile Serpentine Asbestos (popularly known as white asbestos) to manufacture asbestos cement sheets. Chrysotile is one of the six varieties of asbestos that is used commercially and makes upto 95 per cent of asbestos used globally. It is is not associated with any health hazards to employees when used under controlled conditions. We, at HIL are acutely aware of these conditions, and we can state with authority that great vigilance and utmost importance is rendered to this aspect. We have adequate dust collection equipment, and we also collect dust samples for Asbestos fiber count on a regular basis to monitor and ensure that limit is well within the permitted norm of 0.1 fiber per CC. So we can safely claim that HIL sheets do not pose a health hazard to people who work or live under it as per evidence based on published literature such as M J Gardener & C A Powell “Mortality of Asbestos cement workers using almost exclusively Chrysotile fibres”, and M Meldrum, “Review of fibre toxicology”, HSE (UK) to name a few.

What is the total market for the product, for flat sheets and other related products? The market size of corrugated Cement sheets is estimated to be at 4 Million MT/year and it is growing at a steady pace. The demand is directly related to the improved standard of living in the Rural India. The flat sheets (referring to our Flex-o-boards) can be used for false ceiling, Mezzanine flooring, partition and cladding. This is an extremely versatile product with a wide variety of applications across both commercial and residential projects.

How is the competition with metal sheet manufacturers? Driven by steady demand in rural markets, fibre cement sheets are widely used and are the best option available for roofing requirements due to its quality, longevity and cost factor while metal roofs are majorly used in industrial and commercial segments. Hence the fibre cement roofing market is poised for steady growth as it is closely linked to the booming ICR rural economy.

March 2016 | INDIAN CEMENT REVIEW

[35]


Feature: Lab. Instruments

Lab instruments, going high-tech Laboratory instruments have a played a very significant role in the overall progress made by the cement industry in the last 25 years. From the classical method of analysis, to instrumental methods has been a long journey for the industry.

P

eople of yesteryears who have been associated with the cement industry since the days of control are amazed to see how the laboratories of present cement plants are equipped. To list a few lab instruments which one could have only seen during those days in books are optical microscope, XRD and XRF, laser-based particle size analysers, cross belt analysers, coal analysers etc. Today all of these instruments are found in the QC lab of a cement plant. Incidentally today’s integrated cement plant has more than just one laboratory, depending on the size and spread of the plant. There’s a main laboratory and the others are site laboratories. The site laboratory is generally close to the sample points and carries out only essential tests on the material that is in process. The

[36]

INDIAN CEMENT REVIEW | March 2016

samples are physically carried out or the modern plants use pneumatic devices to transport samples from sample collection points. It is a very tedious manual task to collect and carry the samples even in odd hours and during adverse climatic conditions. Therefore it is important to have a sample collecting device and a transportation system without involving human beings. One really does not know if the samples have been collected in the real sense or not, except that we have to trust the human beings involed in it. Till date there is no system to check the genuineness of samples collected by human beings. The quality of testing will depend on how representative the samples are. There are good number of occasions, when the results go wrong only due to faulty samples. As stated above, in modern

plants, the collection of samples is done without human intervention and therefore the results are quite accurate and dependable. The second aspect is the time spent in analysis of samples, with use of latest generation of lab equipment. With instruments, testing is in real time and there is no lag experienced. What goes into process is analysed then and there itself and corrective steps are taken instantly. We must make a mention here of a few patented offerings by FLSmidth, QCX system is a quality control system and POLAB Shuttle laboratory automation system by ThyssenKrupp. These are state-ofthe-art systems and readers can get more information from their respective websites. The advent of computers and IT technology has made the job of a chemist much easier. Normally


Feature: Lab. Instruments the need of the hour. Data received is not only real-time but accurate also. In the present issue we have covered only a few of the lab instruments which have found their effective use over a period of time in the laboratory. Let us examine a cross-belt analyser for bulk material analysis. Rajendra Mishra of PANalytical has given details right from the location where the instrument is installed to its usefulness. This device is present in almost all the plants now. The task of management from quarry to preparation of raw meal has been very easy since the introduction of cross belt analysers. XRD and XRF are the most common instruments among the family of instruments and have been in use for a very long time. These analysers have scored over the old classical methods of analysis due to the simple reason that they are accurate and much faster than conventional methods. Among the articles we have included is provided by N L Deshpande of I R Technology who is representing Rigaku Corporation of Japan. The

Photo courtesy: Malvern

laboratories generate huge amount of data and with computers this data can be stored easily. If proper tools are used, analysis of data can improve the overall plant performance. A Compressive Testing Machine (CTM) is an important lab equipment for measuring the strength of cement. In the present days with modern tools, strength testing data from CTMs is monitored and stored online to avoid any manipulation which otherwise was common in cement plants. At present, immediately during strength testing itself, the data is captured and reported or can be viewed from a distance. A few of the latest plants that have been commissioned in the last three years are using robotics in their laboratory. This shows that the Indian cement industry is using best-in-class technology and is keeping pace with plants in the developed world. Coal is another grey area where lab instruments have a distinctive role. It is the material received in huge quantities and regularly tested in labs. Coal analysers have made the job simple, easy and transparent, which is

Malvern Insitec systems give on-line analysis of the cement production process

article gives details on trace analysis at ppm level in the shortest possible time. The same exercise if done by a conventional classical method will take days to complete and may not be that accurate. The standard samples created for analysis are extremely important in the overall exercise. Cement being a fine powder, the measurement of fineness has been done by Blain air permeability apparatus for very long time. The fineness is expressed as the total area in square centimetres generated by a gram of cement powder. The test is indicative but not accurate. This gap has now been filled by particle analysers which are again very essential instruments for effective quality control. It is a laser based diffraction method. The difference is that it gives the size of particles in microns in predetermined range. Today cement technologists know what should be the range one has to keep for cement particles for getting the best strength out of cement. Subsequently, one can set the parameters for the separators or grinding mills.You can read more in the article by Dr Michael Caves of Malvern AIMIIL. The advances have been so amazing that every new model of instrument becomes more user friendly than the earlier one. The other area of lab instruments is portable lab instruments. These are mostly used either in the site lab or by the engineers who carry out process audits. One must appreciate that there are limitations to portable instruments because the main consideration is that the instrument must be portable. However as Sandeep Pillai has said in his article, these instruments are basically used for diagnostic purposes. These instruments should be consistent in producing results irrespective of place. Calibration at regular intervals is another requirement of portable ICR instruments as stated by Pillai. March 2016 | INDIAN CEMENT REVIEW

[37]


Feature: Lab. Instruments

CNA Online Analyser – Benefits and Advantages Cement plant operation involves handling of large quantities of materials and in order to maintain the correct chemical composition, the present day instrumentation is providing solutions in a big way. Ranendra Mishra of PANalytical India explains the advantage of CNA analyser.

B

ulk material analysis is a cost-effective way to optimize and stabilise limestone stockpile and cement raw meal. The PFTNA CNA (Controlled Neutron Activated) Online Analyser provides all the benefits of high-frequency bulk material analysis with the additional benefit and safety of controlled neutrons. High-frequency analysis delivered by the CNA provides guidance for quarry development, stockpile construction and raw mix proportioning. The cement plants will benefit from making the most efficient use of the quarry, optimised stockpile quality, and real time control of additives to the raw mix resulting in lower additive usage and improved quality of the raw mill output. In addition, cement plants can realise savings associated with lower laboratory testing and labour costs, tailoring the raw feed for grindability to reduce electricity consumption and providing the optimal chemistry to the kiln to reduce fuel costs and extend refractory life. The CNA analyser located upstream of the limestone pile is able to track the cumulative chemistry of the pile. Thus allowing the operator to direct and haul the trucks to different sections of the quarry in a way that will result in the final elemental composition of the pile closer to target. The deployment of CNA also helps optimise consumption of

[38]

INDIAN CEMENT REVIEW | March 2016

expensive high-grade limestone or sweetener that results in handsome savings. Similarly, the CNA analyser placed just upstream of the raw mill can monitor the chemistry of raw mix and automatically trigger an adjustment in the proportions of the

reclaimed stockpile and the additives. By doing so, the plant is able to reduce variability in the raw mix and later on the kiln feed. Consistent kiln feed chemistry in turn leads to lower fuel consumption per ton of clinker produced. The parameters used in the control

Flow chart of cement manufacturing Effective Use of Quarry

Blending Quality Control Sorting RAW MATERIALS

No Sampling Required Raw Mix Control

RAW MEAL

Stable Raw Mix

Homogenization

Stable Pyroprocess

Fe

Al

Sand (Sl)

Preheater Less Fuel

Optimize Additives CLINKER Longer Refractory Life

Less Energy Additives


Cement Production Maximising throughput and Ensuring Quality

Understand

Optimise

Control Quality

Assess how the content of clinker, quartz or gypsum affect your cement – Morphologi G3 Imaging Systems measure size, morphology and chemical identity of cement particles

Reduce waste during cement plant start-up and optimise cement production in real-time using Malvern’s Insitec range of sensitive in-line process control technologies

Ensure confidence in your cement using the Mastersizer 3000 (pictured) – the world’s most popular particle sizing system, allowing quick, simple, information-rich analysis of cement quality

Aimil/Ad/A&I/15-16/08/29

With cement demand increasing globally it has never been more important to ensure that our cement production processes are as efficient as possible – Malvern Instruments provides the technology and expertise that allow you to maximise throughput of high quality cement whilst minimising cost


Feature: Lab. Instruments Energy savings

Limestone Stockpile Management Info

1000 950

Kcal/Kg

CNA Pentos

900 850 800 750 700 1

2

3

4

5

LSF std dev LIMESTONE STOCKPILE

of the Raw Meal are lime saturation factor (LSF), silica modulus (SM) and iron modulus (IM). These are actual proportions of the various chemical components / additives which are desired in the resultant clinker. Proportioning Raw Mix Components helps adjust weighfeeders to maintain accurate feed of additives to limestone. Stable Raw Mix results in: s #ONSTANT KILN lRING s &UEL SAVING AND ECONOMY s -INIMAL WEAR IN REFRACTORY LINING s !VOID KILN DOWNTIME s #ONSISTENT QUALITY OF CLINKER

Quarry Management Installation of a CNA system at the quarry makes it possible to safely maximise the use of lower grade materials (and conserve high grade materials) by pre-blending before the stockpile. This can

significantly increase the lifetime of the quarry.

Stockpile optimisation CNA ahead of the stockpile ensures that pile quality targets are met, the chemical variation is reduced and minimal correction is required upon reclaim.

Raw mix control Using the CNA to monitor the raw mix chemistry at one minute intervals allows for the immediate correction of source proportioning ratios with no mill transport delay. This results in the maximum possible reduction in chemical variation of the kiln feed. Using high energy neutrons to determine the chemistry of materials is very useful for the process control because the analysis is done instantaneously.

Raw Mix Proportioning Limestone

Sand

Iron Ore

Bauxite

CNA Pentos W1

W1

W1

W1

Info

Raw Mill

[40]

INDIAN CEMENT REVIEW | March 2016

CNA Online Real Time Analysers based on the PFTNA technique generates neutrons electrically in a pulsed manner, allowing the detector(s) to differentiate between the 3 neutronnucleus interactions. High frequency pulsing can only be achieved with an electric neutron source. The neutrons generated by the PFTNA generators bear high energy of 14 MeV as compared to that of mere 2.5 MeV in the PGNAA emanating from hazardous Cf252 which is ~ 5.6x weaker. High energy of neutron results in an overall enhancement in sensitivity and performance. The maintenance needs for a PFTNA based analysers are minimal as compared to the PGNAA systems that need periodic recalibration once in 3 months to compensate for 5% drop in intensity owing to its 2.6 year half life. The PFTNA generator voltage is continuously adjusted as the tube ages providing constant neutron flux. The decaying Cf252 source provide a constantly decreasing neutron flux which reduces precision and necessitates recalibration. The Neutron Tube can be easily replaced by the user himself without any special “Radiation Protection” gears and training. By Rajendra Mishra of PANalytical India, Spectris Technologies Pvt Ltd.


Feature: Lab. Instruments

Analysis of Trace Hazardous Elements and Halogens in Cement With more and more use of alternate raw materials and fuels, it is becoming essential to monitor the trace elements in the final product and also in the finished goods produced using cement. X-Ray analysis is one such full proof method to analyse and detect the trace elements.

T

he role of the cement industry for effective utilization of waste materials and byproducts has been growing. Slag from steel plant and coal fly ash from thermal power plant are typical by-products. Waste tyers, plastics and sludge are common waste materials. In addition, waste materials such as incinerated ashes of household waste

and sewage sludge are also utilized. These waste materials and byproducts are added as a part of raw material for cement production. The rate of using the materials for cement production has increased over the years for environmental protection and effective utilization of resources. Addition of waste materials and

by-products can increase the contents of hazardous heavy elements in cement product and, therefore, can cause pollution of the hazardous heavy elements eluted from concrete. Accordingly, control of hazardous elements is essential for cement plant operation. On the other hand, chlorine creates problem in kilns and also

Table 1. Qualification test result (unit: mass%) Analyte

Calibration range

Difference between duplicates Limit

Result*

Difference of the average of duplicate from the certificate values Limit

Result*

SiO2

18.637 – 22.38

0.16

0.10

0.2

0.2

Al2O3

3.85 – 7.06

0.20

0.04

0.2

0.1

Fe2O3

0.152 – 3.09

0.10

0.003

0.10

0.04

CaO

57.58 – 67.87

0.20

0.12

0.3

0.1

MgO

0.814 – 4.475

0.16

0.04

0.2

0.1

SO3

2.086 – 4.622

0.10

0.05

0.1

0.1

Na2O

0.021 – 1.068

0.03

0.02

0.05

0.01

K2O

0.093 – 1.228

0.03

0.003

0.05

0.01

TiO2

0.084 – 0.366

0.02

0.01

0.03

0.01

P2O5

0.022 – 0.306

0.03

0.01

0.03

0.004

ZnO

0.001 – 0.107

0.03

0.001

0.03

0.002

Mn2O3

0.007 – 0.259

0.03

0.001

0.03

0.002

Cl

0.0019 – 0.013

0.003

0.005**

N/A***

0.006

* **

In the columns of “Result”, only the maximum values among the analysis results of the seven NIST CRMs are listed. The maximum difference for Cl is 0.005 mass%, which exceeds the limit 0.003 mass% while the differences of all the other CRMs are less than 0.003 mass%. The value 0.005 mass% is less than the double of the limit, 0.006 mass%. *** No value is given.

March 2016 | INDIAN CEMENT REVIEW

[41]


Feature: Lab. Instruments causes corrosion of rebar (reinforcing steel) in concrete while fluorine affects hydration reaction. These trace halogens are other important elements to be analyzed. X-ray fluorescence spectrometry is widely used for chemical composition analysis of major components such as CaO, SiO2, Al2O3 and Fe2O3 of raw materials, raw meal, clinker and cement in each production process for process control owing to a rapid and precise analytical method. In recent cement production, the demand for analyzing trace hazardous heavy elements and halogens has increased for environmental protection and effective utilization of resources. Since the number of trace elements to be analyzed is increasing, high power wavelength dispersive XRF spectrometers, which have good sensitivity and spectral resolution for both heavy and light elements down to fluorine, are suitable for such applications. The analysis of trace heavy elements in cement using unique correction methods was evaluated and accurate results were obtained. Analysis examples of trace heavy elements and halogens in cement using a high-power wavelengthdispersive XRF spectrometer are presented.

Analysis results In order to demonstrate that the ZSX PrimusIII+ meets the requirement of ASTM C114-11, a qualification test in ASTM C114-11 was carried out using NIST CRM’s of cement. The test results are shown in Table 1, which proves that the spectrometer meets the requirement. Refer to Table 1 For chlorine and heavy trace elements in cement, calibration curves were generated with cement reference materials. The calibration results are summarized in Table 2 and

[42]

INDIAN CEMENT REVIEW | March 2016

Picture 1: Instrument and sample preparation Rigaku ZSX PrimusIII+, a high-power (3 kW) sequential wavelength-dispersive X-ray fluorescence (WD-XRF) spectrometer was used in the analyses reported in this presentation. This spectrometer employs tube-above optics and, therefore, is suitable for powder sample analysis. Each sample, pre-ground if necessary, was pressed into an aluminum ring with 32 mm I. D. at 150 kN to form a pressed powder briquette.

MODEL-PRIMUS III+

Table 2. Calibration summary of trace elements in cement (unit: ppm) Analyte

Concentration range Accuracy Correction*

Cl

6 – 84

2.6

alpha

V

28 – 229

4.5

scatter ratio + alpha, overlap (Ti)

Cr

42.2 – 225

1.7

alpha

Co

4.9 – 41.3

1.3

scatter ratio

Ni

5.6 – 74.6

1.7

scatter ratio + alpha, overlap (Co)

Cu

8.7 – 203

5.5

scatter ratio

Zn

209 – 1112

18

scatter ratio

As

1.9 – 20.4

1.3

scatter ratio, overlap (Pb)

Sr

196 – 573

15

scatter ratio

Zr

42 – 142

2.3

scatter ratio, overlap (Sr)

Mo

3.5 – 99.5

1.5

scatter ratio

Ba

130 – 662

25

alpha

Pb

12.8 – 435

2.0

scatter ratio

*Correction: each method is explained below The accuracy of calibration is calculated by the following formula,

Accuracy

¦ C i

i

ˆ C i

2

n m

Ci : calculated value of standard sample ˆ : reference value of standard sample C i

n m

: number of standard samples : degree of freedom.


Feature: Lab. Instruments Figure 1. Representative calibration curve (Cr, As, and Pb)

As

Intensity

Int. ratio

Pb

Int. ratio

Cr

Accuracy (ppm) 1.7 0

100

200

300

0

Std. value(ppm)

representative calibration curves are shown in Figure 1. For Cl, Cr, and Ba, alpha correction (“alpha” in Table 2), where correction coefficients for absorption and enhancement by co-existing element are calculated theoretically by the fundamental parameter method, was applied. For Co, Cu, Zn, As, Sr, Zr, Mo, and Pb, scatter ratio correction (“scatter ratio” in Table 2), where a

Accuracy (ppm) 2

Accuracy (ppm) 1.3 100

200

300

Std. value(ppm)

scatter line, Rh-KD Compton or background, is used as internal standard line, was applied. This correction also minimizes analysis error caused by variation in grain size or mineral composition for powder samples. For V and Ni, the combination of the scatter ratio and alpha corrections (“scatter ratio + alpha” in Table 2) was applied. In this unique correction method, when theoretical alphas are

IMPORTANCE OF ANALYSING HALOGENS AND HAZARDOUS ELEMENTS IN CEMENT s 5SE OF WASTE MATERIALS AND BY PRODUCTS HAS INCREASED SUBSTANTIALLY IN cement production s #ONTROL OF HAZARDOUS HEAVY ELEMENTS AND CHLORIDES IN lNISHED CEMENT and then in concrete is essential s 0RESENCE OF HALOGENS CREATES PROBLEM IN MANUFACTURING PROCESS AS WELL as in concrete which promotes corrosion of re-bars s $EMAND FOR ANALYSING HAZARDOUS HEAVY ELEMENTS AND HALOGENS IS warranted for environment protection s 0RESENCE OF #O #U :N 3R :R -O 6 .I #R !S #D AND HALOGENS can be detected accurately by RigakuZSX Primus III + or equivalent XRF machine s 4HE STANDARD IN REFERENCE IS !34- # ))

0

200

400

Std. value(ppm)

calculated by the fundamental parameter method, scatter lines are also considered in the calculation to obtain theoretical alphas for calibration with scatter ratio method applied. Additionally, for V, Ni, As, and Zr, spectral overlap correction was applied.

Conclusion The qualification test for ASTM C114-11 was demonstrated by the pressed powder method using a high-power sequential WD-XRF spectrometer. Using this spectrometer, calibration curves were generated with inter-element correction methods for trace elements in cement, including chlorine and hazardous elements of Cr, As, and Cd. Then, good accuracy was obtained for each element. The analysis results show that trace elements in cement can be analyzed with high accuracy on highpower sequential WD-XRF spectrometers. Article by Hisashi Inoue,Yasujiro Yamada & Yoshiyuki Kataoka of Rigaku Corporation, Osaka, Japan In India Rigaku is represented through I R Technology Services Pvt.Ltd, Navi Mumbai. Contact: N L Deshpande- Chief General Manager

March 2016 | INDIAN CEMENT REVIEW

[43]


Feature: Lab. Instruments

Advances in Cement Analysis Though Blaine analysis is a time tested method of measuring fineness of cement. Today Laser Diffraction technology scores over it mainly due to more accurate and real time measurement. Dr. Michael Caves, India – Business Development Manager of Malvern AIMIL explains the advantages of laser based particle size analysers.

T

he final steps in cement manufacturing involve grinding (milling) and blending in order to produce the fine powder that is recognizable as cement. Every step in the manufacture of cement is checked by frequent physical tests, as is finished product, to ensure that it complies with all necessary specifications. Cement is ground to a particular fineness since the influence of particle size on the kinetics of cement hydration and development of strength is well known. A reduction in median particle size generally produces a higher compressive strength. Consequently the fineness of Portland cements has been increased over the years to improve properties such as higher early strengths. Nevertheless, other effects of increased fineness, such as higher water demands and more rapid heat generation in the concrete cannot be ignored. Despite the availability of instrumental methods of measuring particle size distributions, the classical method of air permeametry remains.

Understanding Blaine Many plants control cement fineness using an air permeability apparatus to measure the Blaine number, a parameter related to the cement particle size. The Blaine surface area measurement has been used since the 1940s to determine cement quality and despite its longevity the limitations of this off-line technique are widely recognized. It is slow and suffers from

[44]

INDIAN CEMENT REVIEW | March 2016

poor reproducibility, which can lead to significant errors, including unnecessary or inaccurate changes to the classifier speed. Blaine analysis measures the specific surface area of a sample, the surface area per unit mass. Finer particle sizes have higher specific surface area: more area per unit mass, so Blaine is an indirect measure of particle size. But, Blaine delivers just a single averaged figure. Figure 1 shows analysis of 2 cement samples using a Malvern Mastersizer Laser Diffraction system. Sample 2 contains more fines than sample 1 but also more coarse material. These two differences cancel each other out so average specific surface area remains the same, illustrating why two quite different samples can have the same Blaine. The more important question is “do we need to know about the difference indicated by the particle size distribution?”

Size Distribution Measurements However two cement samples with identical Blaine figures can show different particle size distributions when measured by laser diffraction. Should we classify these two cements as different or the same? For answers, we need to look at how the data are used. Cement manufacturers measure Blaine to quantify product quality. The hydration speed of cement particles is a function of particle size and determines the strength of the set cement. Generally, finer particles hydrate more quickly, giving greater strength, and within certain limits finer cement is better cement. Returning to our samples, these materials will behave differently when used.Very fine cement particles, in the 2 – 3 micron range can cause exothermic cracking.

Figure 1: Cement Particle Size Distribution (PSD) data acquired using a Malvern Mastersizer


Feature: Lab. Instruments Conversely particles over 50 microns may not hydrate, compromising product strength. Sample 1 contains less of both types of particles and consequently is a superior cement, even though Blaine ranks it the same as sample 2. So, the size distribution data are most certainly relevant.

Switching to laser diffraction The practicalities of switching to laser diffraction are equally compelling. Laser diffraction, however, is fast and automated. In the lab this means greater productivity and better reproducibility. For processing it means on-line instrumentation and real-time measurement. Malvern Mastersizer 3000 (Figure 2), which has a measurement range of 0.01 to 3500 microns, is an essential component of a high-quality cement laboratory. Finished products, as well

as replacement material such as fly ash and blast furnace slag and fuels, have varying size distributions and so behavioral understanding and prediction requires Mastersizer analysis. A vital element in successful laser diffraction particle size analysis is ensuring that samples are dispersed properly. In cement manufacture it is the primary particle size of a sample that is most usually the parameter of interest, rather than the size of any agglomerated material present. When using laser diffraction, samples can be dispersed and measured wet in the form of a suspension, or as dry powders. Dry dispersion, using dry compressed air, has a number of advantages, not least its obvious suitability for water sensitive material such as cement. It also avoids the need for solvent based dispersants and is rapid, thus increasing instrument

Figure 2: The Malvern Mastersizer 3000

productivity. The dry dispersion accessory, Aero S, available with Mastersizer 3000 has modular dispersion nozzles with different impaction surfaces. Keeping in mind that flow of abrasive material like cement for a prolonged period of time can cause damage to metal surfaces, there are options available for ceramic coated flow paths. It is worth highlighting the value of considering an analyzer that can switch easily between different samples with a minimum of fuss. Being able to change between different types of samples without fear of cross contamination, or to move simply or quickly from dry to wet measurement (or vice versa) as required, can make a real difference to analytical productivity, helping to maximize the return of investment in the system. Finally, another important reason to switch to laser diffraction is the possibilities the technique offers for on-line analysis. Insitec systems deliver fully automated real-time analysis of cement particle size distribution from 0.1 to 2500 microns and can be configured to suit practically every process.

Conclusion Whilst traditional Blaine measurements have served the cement industry well since the development of the Blaine method in the 1940s, the efficiency and quality of production of modern cements can be improved greatly by using Laser Diffraction technology. Efficient data acquisition, adaptable methods, and information-rich data explain the increasing use of the Malvern Mastersizer 3000 and Insitec range of systems in cement production around the world. For more details, pls contact: Malvern Aimil Instruments Pvt. Ltd. Tel : 011-30810244 Fax : 011-26950011, Email : delhi@aimil.com

March 2016 | INDIAN CEMENT REVIEW

[45]


Feature: Lab. Instruments

Use of portable lab. instruments in ‘process audit’ Sandeep Pillai, PENTA India Technical Consultants Pvt. Ltd

L

ab. Instruments ďŹ nd it’s use not only in routine quality check in the plant but number of portable lab. instruments are widely used in diagnostic studies. Sandeep Pillai of PENTA India Technical Consultants Pvt. Ltd. updates the readers on the subject.

Why process audits are done,Can you just list down various lab Instruments you are using during the process audit of a cement plant. Plant audits are basically done to know about the plant operation,

equipment condition status which helps in plant optimization and minimisation of speciďŹ c electrical/ Thermal energy. Process audits in a larger extent helps in enhancing the productivity and minimising energy consumption. It also requires the use of various portable instruments, values of which prove to be vital for the audits. Major part of the data collection in ďŹ eld is done through various instruments Some of them have been listed below. Refer to Table 1.

During the various process audits what all gas measurement you do? Depending upon the area of the cement plant like the kiln inlet, pre-calciner, pre heater, coal mill silos and so on we need to monitor CO, CO2, O2, NOx, SOx, are to be monitored.

Please provide information on the latest generation of laboratory Instruments you rely on apart from what is stated above. Apart from ďŹ eld measurement, laboratory analysis play a vital role while carrying on the technical

[46]

INDIAN CEMENT REVIEW | March 2016

audit. Some of them are mentioned in Table 2.

Which are different instruments available for measurements? Cement plants are generally low pressure (draft), high temperature ,high ow, dust process in which the continuous monitoring of various parameters are required. Pressure ,temperature, ow load, level and so on being the important ones.

Table 1: COMMONLY USED PORTABLE LAB. INSTRUMENTS s 5 4UBE -ANOMETER $IGITAL manometer s )NCLINED 4UBE -ANOMETER s 0ORTABLE GAS ANALYSERS (CO,CO2,O2, NOx) s 0ORTABLE TEMPERATURE detectors s 6ANE !NEMOMETER s 0ITOT TUBE 3 TYPE AND , TYPE s 4ACHOMETER s -EASURING TAPE s 4ONG TESTER s 2ADIATION PYROMETER s $UST EMISSION MEASURING KIT s (IGH VOLUME GAS SAMPLER


Feature: Lab. Instruments Table 2: STATIONERY LAB. INSTRUMENTS s 82& "ASICALLY USED FOR THE elemental analysis s 82$ 0HASE QUANTIlCATION s "OMB CALORIMETER FOR GROSS caloriďŹ c content s !UTOMATIC BLAINE APPARATUS s )NVERTED REmECTED TYPE microscope s /RSAT s &REE LIME ANALYSER s /NLINE ANALYSER SUCH AS CROSS belt analyser. Pressure transmitters, differential pressure transmitters, level transmitters, pressure gauges, ow METERS 5LTRASONIC OR RADAR TYPE LEVEL transmitters(non contact type), Nucleonic level for pre heater cyclones are most generally used by cement customers. Ingress Protection class of 66, 67 and 68 are of utmost importance

Why calibration of these instruments is required ? Calibration deďŹ nes the accuracy and quality of measurements recorded using a piece of equipment. Over time there is a tendency for results and accuracy to drift particularly when using particular technologies or measuring particular parameters such

as pressure ,temperature and so on. To be conďŹ dent in the results being measured there is an ongoing need to service and maintain the calibration of equipment throughout its lifetime for reliable, accurate and repeatable measurements. The goal of calibration is to minimise any measurement uncertainty by ensuring the accuracy of test equipment. Calibration quantiďŹ es and controls errors or uncertainties within measurement processes to an acceptable level.

How you make sure that the results given by various measuring instruments are correct and dependable? The primary criteria of evaluation in any measurement or observation are: s 6ALIDITY s 2ELIABILITY 6ALIDITY COMES FROM #ROSS verifying with alternate devices and analog gauges by directly placing them it in the ďŹ eld and checking the readings and also cross verifying through theoretical tables of measured readings. Also material test certiďŹ cates, suppliers own calibration reports are also needed for cross checking and verifying. Reliability refers to a condition where a measurement process is consistent over repeated measurements.

What is the variation, the portable instruments show from place to place? There won’t be much variation apart from deviation limit/ error % based on measuring range due to the pressure changes at different altitudes and ambient temperature variations.

Locations in cement plant where the energy audit is more focussed on? The energy audits are basically done by BEE Accredited and

CertiďŹ ed Energy Auditors and Managers. Energy audit involves the process of detailed examination of the existing energy, measurement and analysis of demand and power factor, (EAT BALANCE AND Air balance, analysis of speciďŹ c power consumption and so on. Energy audit being done is focussed on the following areas of cement pant s 0OWER DISTRIBUTION SYSTEM s +ILN 3YSTEM +ILN 0RE HEATER Grate Cooler and Process fans) s 'RINDING -ILLS #IRCUITS 2AW Mill, Coal Mill, Cement Mill and Fans) s #OMPRESSED AIR SYSTEM AND 2OOTS Blowers. s "AG &ILTER AND #IRCULATION &ANS s #OOLING WATER SYSTEM AND 0UMPS s #RUSHER "UCKET %LEVATORS "ELT Conveyors s ,IGHTING SYSTEM Apart from the instruments mentioned above, power analyser, lux meters etc play a vital role during audit.

In case if you happen to use the instruments from the client, what are your expectations about the dependability of the instruments? Device should be compatible with calibrating instrument, Instrument shall have enough capability to source/measure the process device requirements (like range of measurement, device protocol which can communicate with instrument). Test certiďŹ cates, calibration reports are ICR also veriďŹ ed. March 2016 | INDIAN CEMENT REVIEW

[47]


Technology

Low carbon technology roadmap of the Indian cement industry Reducing the clinker factor in the final cement reduces CO2 both from the calcination of carbonates and from combustion of coal, but the fuel substitution rate has to go up. Facilitation is required to allow cement kilns to utilise large quantum of wastes as AFRs. Ulhas Parlikar of Geocycle India elaborates on what can happen with appropriate policy framework.

I

ndia is the second largest producer of cement next to China. The Indian cement industry is consolidated, organised and mature. The top 20 cement companies account for almost 70 per cent of the total cement production of the country (IBEF, 2014). Actual production of 250 Mt cement in 2013, meant that the industry consumed approximately 300 Mt of virgin raw material, 24 Mt of coal (MoC, 2015), 20 billion kWh electricity and emitted nearly 175 MtCO2. Due to reducing coal linkages over the years, the Indian cement industry imports over 30% of its total coal requirement, adding to the cost of producing cement. The Indian industry’s average thermal energy consumption is estimated to be about 725 kcal/kg clinker and the average electrical energy use is about 80 kWh/t cement, much lower than the global average of 934 kcal/kg clinker and 107 kWh/t cement. The best levels achieved by the Indian cement industry, at about 680 kcal/kg clinker and 66 kWh/t cement, are comparable with the best achieved levels in the world (WBCSD CSI, 2013). The cement industry is currently using 45 Mt of fly ash from coal-based power stations and around 10 Mt of blast furnace slag from the production of pig iron (WBCSD, 2013). The mineral waste fractions are substituting the Portland cement

[48]

INDIAN CEMENT REVIEW | March 2016

clinker by grinding it together in the cement mill (or separate pulverisation prior to blending). Reducing the clinker factor in the final cement reduces the CO2 both from the calcination of carbonates and from combustion of coal. However, the Thermal Substitution Rate (TSR) or Fuel Substitution of the Indian cement industry with the utilisation of wastes from agricultural, industrial and municipal sources as alternative fuels and raw materials (AFRs) is only in the range of 1 - 2 per cent.

Waste generation scenario and cement kiln option for its gainful disposal India generates large quantum of

wastes from agricultural, Industrial and municipal sources and currently the entire waste is disposed without any recovery process. Several countries globally have utilised cement kilns as an effective option for their country’s industrial, municipal and hazardous waste disposal. This creates a win-win situation for both the local administration and the cement plants: the administration utilises the infrastructure already available at cement kilns, thereby spending less on waste management, and the cement kilns are paid by the polluter for safe waste disposal, as well as having their fuel requirements partly met. The Cement Vision of India 2025 prepared by AT Kearney/CII has


Technology Table-1 Parameter Cement Production

Unit Mio TPA

Clinker to Cement Ratio

Base case Low demand

High Demand

2010

2020

2030

2050

2020

2030

2050

217

416

598

780

492

848

1361

0.74

0.7

0.64

0.58

0.7

0.64

0.58

Thermal Intensity of clinker production

Kcal / Kg Clinker

725

709

694

680

703

690

678

Alternative Fuel share in total energy used

%

0.6

5

19

25

5

19

25

Coal conserved having CV Mio TPA of 4,500 Kcal/Kg

0.16

2.3

11.2

17.1

2.7

15.8

29.7

CO2 emission reduced

0.19

2.8

13.8

21.0

3.3

19.4

36.5

Mio TPA

projected that the TSR of the Indian cement industry would be about 12% by 2025 and the study of the LowCarbon Technology Roadmap for the Indian cement industry prepared by the International Energy Association, in collaboration with WBCSD, has projected the same to be 19% in 2030 and 25% in 2050.

Opportunity for resource conservation and GHG mitigation through coprocessing If the Indian cement industry is also able to move towards large-scale use of AFRs and is able to achieve the TSR as envisaged in the low carbon technology roadmap, there will be a substantial contribution that the cement industry will be able to make towards resource conservation and GHG mitigation. The projected output of this exercise is presented in the Table-1 It can be observed that if wastes are utilised as AFRs, there is potential to conserve coal of about 11 to 16 Mio TPA in the year 2030 and about 17 to 30 Mio TPA of coal in the year 2050. In 2020 and 2030, for every Mt of cement produced, 7 000 tonnes and 25 000 tonnes of AFs need to be co-processed, respectively. This means that we will be saving an amount of coal that we are consuming at present. This also helps in mitigating an

amount of GHG emissions that we are letting into the environment. India’s industrial waste is growing in volume. Out of current generation of 4 Mt of landfillable and incinerable wastes, 2.5 Mt (60%) is awaiting disposal. Studies conducted by the Ministry of New and Renewable Energy (MNRE) have estimated surplus biomass availability at about 120-150 Mt per annum covering agricultural and forestry residues. As per the Planning Commission task force report on waste to energy, of the 62 Mt of MSW generated in urban India, 12 Mt is a combustible fraction, which can be potentially converted to RDF, thereby replacing 8 Mt of coal.

Current regulatory processes are not aligned to tap this opportunity The cement industry prefers uniform emission standards for co-processing rather than case-by-case permits. In India, it normally takes more than a year for a waste stream to get regular permits for co-processing. This is because the law and guideline mandates trial runs to be conducted for each new waste streams, requiring approvals for trial and regular usage from both state and central pollution control boards. For some special and difficult to treat hazardous wastes (pesticides, PCB, CFC, etc.), however, it is important and necessary to carry

out trial burns to ensure compliance to environment and occupational health and safety. In India itself, co-processing technology has also been used to destroy hazardous chemicals. A trial conducted at ACC-Kymore cement works, in SINTEF’s and CPCB’s supervision, demonstrated destruction and removal efficiency (DRE) of 99.9999% for concentrated CFC (chlorofluorocarbons) gases at high feeding rate in an Indian cement kiln. This shows the potential of the technology with regard to safe and sound destruction of hazardous chemicals in existing infrastructure. The major categories of wastes that can be used by the cement industry as alternative fuels and raw materials are hazardous wastes, non-hazardous wastes, Refuse Derived Fuel (RDF), Municipal Solid Waste (MSW), shredded tyres and biomass. The major constraints in implementing large-scale coprocessing of these kinds of wastes in the Indian cement industry along with the support required are elaborated in detail in the low carbon technology roadmap document. The major constraint is the current regulatory framework that is built on the principle of disposal rather than the principle of sustainability. A permitting system resembling international best practice March 2016 | INDIAN CEMENT REVIEW

[49]


Technology will probably stimulate broader interest. A revision and update of the existing guidelines and permitting requirements (addressing issues such as interstate transportation, emission limits, standard approach for utilisation of alternative sources of de-carbonated materials and mineralizers, etc.,) is regarded to be of crucial importance in order to stimulate increased co-processing practice.

Desired changes in the Indian regulatory framework The desired changes are provided below. I. Hazardous wastes 1) Amendment in Hazardous Waste (Management, Handling & Transboundary Movement) Rules, 2008 to: 1. Recognise co-processing in

[50]

INDIAN CEMENT REVIEW | March 2016

cement kiln as a preferred technology for disposal because it is a resource recovery option over landfill and incineration operation. (By this provision, the wastes that can be co-processed will not get disposed through landfill and incineration process. In fact, restrictions or limits on landfill (or inclusion of externality charges or future liability costs to landfill charges) will give impetus to coprocessing initiative in India). 2. Authorise cement plants to receive, store, pre-process and co-process wastes based on the availability of required infrastructure to handle and store hazardous wastes as specified in the HWM Rules and based on prescribed

emission standards. The current waste by waste permitting process through co-processing trial is not a relevant process of approval for co-processing for following reasons: (a) The concern of the impact of the chemical constituents present in the waste on the emissions/ product quality. (b) There are more than 20,000 waste streams that are co-processed globally. In the past 10 years, we have been able to complete trial of less than 100 waste streams. By the waste by waste trial approval process, we will never be able to move ahead. (c) Even if a waste stream is approved for co-processing through trial, its waste characteristics are never constant. They vary from batch to batch and from time to time. (d) While undertaking the co-processing of approved waste streams, they get blended to a new chemical composition which is completely different from all individual ones. (e) The very purpose of implementing waste stream approval based on trial gets completely defeated. Hence, the trial based waste by waste permitting process is not relevant at all. Based on experience gained in India and international best practices, the desired regulatory process of approval needs to be based on (i) emission standards for cement kilns conducting coprocessing, (ii) adequate infrastructure to safely handle


Technology and store wastes, (iii) appropriate laboratory facility to achieve desired input control, (iv) proper systems to monitor & control the input rates and (v) well established operational procedures for health and safety. These processes will secure the same level of environmental protection at Indian cement plants as the current EU and US regulations. 3. Allow interstate movement of hazardous wastes for cement kiln co-processing with letter of intimation to concerned SPCBs. With this provision, waste can be moved at economically attractive distances across the states. The pricing of waste management services is a key factor, both to ensure waste minimisation at source (to reduce disposal costs for waste generators) as well as to ensure low cost to cement manufacturers (encouraging them to install the infrastructure needed for proper handling, storage and firing at their premises) for increased TSR. The “polluterpays” principle should be the basis for the economic and financial analysis of waste utilisation. II. Non-hazardous waste To allow cement kilns, that are complying with the prescribed emission standards for coprocessing, to co-process of all kinds of non-hazardous wastes in cement kilns through intimation to SPCBs. III.RDF from MSW To implement amendment in draft Municipal Solid Wastes

(Management and Handling) Rules, 2015 to ensure that the segregated combustible fraction is not allowed to be landfilled but is converted into Refused Derived Fuel (RDF) that is suitable for use as alternate fuel in cement plants and other suitable thermal processes. Also, to institute fiscal measures that will facilitate building large number of preprocessing facilities to convert wastes into AFRs and MSW into RDF. IV. Shredded Tyres Shredded tyres are used extensively in the cement industry as a supplementary fuel and MoEFFCC/CPCB may want to consider ways to increase the availability in India. V. Biomass Co-processing of biomass leads to complete energy recovery and this process is much more energy efficient, even compared to biomass-based power plants. Incentives should be given for biomass utilisation in cement kilns akin to that given for biomassbased power plants.

International co-operation for assimilating Technology, Skills and Policy (TSP) framework to leap-frog Co-processing in cement kilns is a widely practiced activity in many countries for management of wastes. The technological infrastructure required for implementing large scale co-processing is well established and operated. The skills are well developed with the operating teams to operate the kilns with large quantum of wastes and produce the right quality cement product. In these countries, the legislative processes are also designed and practiced with preference to recovery technologies

such as co-processing. The TSR in these countries is therefore very high. Our experience in the country of the past 10 years suggests to us that AFR co-processing growth takes place with a reasonable learning curve and support available from the international co-operation helps a lot. The Indian cement industry is already collaborating with several knowledge partners in utilising this lever for using large amount of wastes as AFRs in the cement kilns. Several international cement players that are implementing large scale coprocessing in their plants in different countries, such as LafargeHolcim, Hiedelberg, CRH,VICAT, Italicement, etc are already operating in India and several Indian cement players such as Ultratech, Dalmia, etc., are also sourcing international co-operation in bridging the technical and skill gap in implementing large scale utilisation of AFRs. CPCB has been closely working with the Norwegian research organisation SINTEF for the last few years and has been able to contribute towards building capacity and confidence among various stakeholders on the viability of safe and sound co-processing. We consider that co-operation of Indian policymaking bodies with agencies like SINTEF, who have been working closely with the authorities and industries in such countries, can facilitate quicker assessment of the policy level hurdles encountered in implementing large scale management of wastes as AFRs through coprocessing and implementing fitting solutions to deal with them from the policy and operational ICR considerations. Ulhas Parlikar Chairman – CII Initiative on increasing AFR usage in Indian Cement Industry Dy. Head, Geocycle India ACC Limited,Thane (W) 400604 ulhas.parlikar@acclimited.com

March 2016 | INDIAN CEMENT REVIEW

[51]


Guest Column

We Care – Ambuja’s H&S Transformation Journey One of the leading cement producers in the country wants to be the leader in H&S function of plant operations also. For achieving good H&S performance on sustainable basis; requires not only good management system, but equally important, is ensuring its real on-ground implementation. Ashwin Raykundalia narrates his own experiences to ICR

A

t Ambuja Cement, our vision is to be the most sustainable and competitive company in our industry. Being sustainable means a win-win situation from our economic, social and environmental performance. Managing Health & Safety (H&S) performance not only makes business sense, but also minimises the negative social impact it may have. Thus H&S forms an integral part of our sustainability strategy. We strongly believe that the organisations, where people are getting harmed would fail to exist in the long run. At Ambuja, H&S is at the center of everything we do. Our aspiration is to conduct the business with the goal of Zero Harm to people and create healthy and safe environment for our employees, contractors, communities and customers. We started our structured H&S journey, since 2008, with the implementation of a good H&S management system. However, 2013 had been a bad year for us with an unacceptable H&S performance. The years of efforts put in strengthening H&S management system and infrastructure failed to guarantee good H&S performance, year on year. This made us to think through. Number of brain storming sessions among leadership teams took place on where we need to concentrate our efforts for sustainable H&S performance. The outcome for achieving good

[52]

INDIAN CEMENT REVIEW | March 2016

H&S performance on sustainable basis requires not only good H&S management system, but equally important is ensuring its real onground implementation. The challenge was in on-ground implementation of H&S management system in the right spirit. Analysis indicated, some people take pride in taking risk while a few others want to take a short-cut to finish the job faster, as it normally gets rewarded. However, we also found there were Figure-1

real issues that increased disconnect between the line team and H&S requirements. These being: Issues between the line team and H&S requirements s 3YSTEMS AND PROCESS ESTABLISHED OR mandated were too exhaustive and far off from ground realities that encouraged people to bypass it s ,ACK OF CLEAR COMMUNICATION LEAD to non-uniform understanding of the H&S requirements even among different H&S professionals

TO From

Emotional Engagement – pride building

High level processes and procedures Living the ideal Compliance

Training

Top driven

World class tick box

Coaching

Bottom up

Real on ground – world class implementation

Functional Obligation Line leadership – walk the talk through role modeling


Guest Column s ( 3 BEING MAINLY @4OP $OWN approach, communication not reaching up to the last person in the hierarchy. This leading to lack of visible actions from leadership at different levels to demonstrate H&S as clear priority s ,ACK OF REWARD RECOGNITION FOR properly following or consequences for not following H&S requirements s 0EOPLE DO NOT PERCEIVE THE RISK IN the environment they have grown with e.g., crossing the road from anywhere and not only at Zebra crossings s ,ACK OF COMPETENCY IN DOING proper hazard identiďŹ cation and risk assessment. Often, the root cause of incident indicated failure to identify the hazard at the ďŹ rst place. Even for identiďŹ ed hazards, control measures proposed are ADMINISTRATIVE OR 00% INSTEAD OF higher level controls like elimination, substitution and engineering measures s .ON AVAILABILITY OF SKILLED manpower for execution of the job s 0EOPLE MINDSET IS THAT THEY would never be the victim of an accident s 0EOPLE NOT BEING AWARE OF potential consequences of their behavior or actions s ,INE TEAM OFTEN THOUGHT ( 3 performance is the responsibility of H&S professionals. We realised that increased participation and focused intervention are the key to move up fast on H&S maturity. To make Health & Safety a mass mission and address above issues, we at Ambuja Cement launched ‘We Care’ – Our Health & Safety Transformation journey during 2nd half of 2013. The tagline of the program being Hamara Suraksha Hamara Haath. The program aimed to bring following change: (Refer to Figure-1 on earlier page)

Figure-2

Safety Ambassadors – A unique concept, multiple eyes & hands to plant OH&S officers

L1 Plants are divided into zones, more than 225 zones across ACL for the implementation of we care, which include OH&S priorities e.g. FPE, CSM

L2 Each Zone is led by a Zone Owner who has also the line responsibility for his core function. All Zone owners were trained and formally empowered for assessing annual performance of Zone members

L3 Typically 5-7 Safety Ambassador per Zone identified and trained – they are our Change Agents for improving OH&S Culture on Shop Floor. Typically Safety Ambassadors are Direct Supervisor of workment group. We identified – 1500 Safety Ambassadors.

L4 All Employees at our Sites are assigned to Zones to ensure direct guidance from Zone Owners/Safety Ambassadors, on an average 1 safety Ambassador per 8 Zone Members

H&S as Line Leadership: To bring ownership towards H&S performance in the line team, we divided our plants into small geographical area, called Zones. One of the line managers was assigned the responsibility as Zone owner. Apart from his regular line responsibility, the Zone Owner takes ownership of H&S performance of his zone. Additionally we identiďŹ ed a Safety Ambassador, typically a direct supervisor of workmen group. All Zone Owners and Safety Ambassadors were trained on H&S technical aspects and behavioural aspects for them being the change agents (demonstrating role model

behavior) in our H&S transformation journey. The performance of Zones was monitored on a monthly basis, based on predeďŹ ned criteria. Zone owners were also empowered to rate H&S KRA of his zone members in !NNUAL 0ERFORMANCE -ANAGEMENT This has also helped in developing Zone Owners to practice leadership qualities. 0ERFORMANCE DIALOGUE AND 7AVE THE PROCESSES EXTENDED FROM !MBUJA S established manufacturing excellence program — ‘People Power’, which also helped in developing ownership in the line team toward H&S performance. (Refer to Figure-2) March 2016 | INDIAN CEMENT REVIEW

[53]


Guest Column Top driven to bottom-up approach for engaging people and enforcing compliance It is important to reach out to each and every person involved explaining the importance of H&S for his/her own life apart from importance to the company. The dedicated Townhalls on H&S, directly addressed by the leadership team, Web casted across Ambuja LOCATIONS AND @7E #ARE SENSITISATION workshops helped us in achieving this goal. We directly reached out to all the people (more than 12,000) at our plants in 2014 and again in 2015, and listened to their point of view. We formed work groups of cross functional teams working on received inputs to convert into actionable things for implementation. This helped in demonstrating that efforts toward the change are genuine and also getting buy-in from different functions. The inputs received helped in establishing a comprehensive reward & recognition scheme for proactive interventions to improve H&S performance. In 2015, more than 350 INDIVIDUALS BECAME @!MBUJA 3AFETY (EROES AND MORE THAN TEAMS WERE rewarded. These proactive interventions are captured as best practices, which are shared on a regular basis across Ambuja, thus developing the learn & share culture and multiplying successes. This helped in engaging people across all levels. Inputs were also used in reďŹ ning H&S processes and adopting engineering solutions to reduce/ eliminate risks. Consequence management policy also established to deal with violations of H&S requirements, clearly demonstrating H&S as the priority. (Refer to Figure-3) Engaging people is the ďŹ rst step. However, for sustained H&S performance capability, building is equally critical. We developed

[54]

INDIAN CEMENT REVIEW | March 2016

Figure-3

Work Group Concepts

Engineering Solution

Capability Building

Standard Process and Systems

Reward & Recognition

Communications

Integration with People Power

t t t t

4FOJPS GVODUJPOBM FYQFSUT GSPN MJOF 0) 4 'PDVT PO DPNQMFUFOFTT DPOTJTUFODZ JO XIBU XF EP 1SJPSJUJ[F JTTVFT SFDPNNFOE QSBDUJDBM TPMVUJPOT &YDFMMFOU UFBN XPSL CVZ JO GSPN CPUI -JOF 0) 4 UFBNT

customised training programs for people working in focused areas — risky operational task and trades, defensive driving training for the truck driver, etc.

Making H&S a mass mission We did not limit ourselves within the boundaries of our plant. We thought that nurturing safety culture in schoolchildren can serve two purposes — they would help in correcting the unsafe behaviors of their parents and they would grow up with right H&S practices and behavior. So we developed and implemented H&S curriculum focusing road safety and safety at school and safety at home at all Ambuja Schools. Our CSR wing, Ambuja Cement Foundation, is also helping us to create awareness within community

around our plants. We Care program has helped in bringing visible improvement in H&S performance for Ambuja. Thus managing H&S performance needs a lot to deal with people aspects. H&S needs to become the mass mission of an organisation if the GOAL OF @:ERO (ARM TO PEOPLE IS TO BE achieved. Ambuja Cement has been able to successfully engage people and bring a sense of ownership towards H&S performance in the line team THROUGH @7E #ARE PROGRAM 7E believe this is the step forward in our journey to achieve leadership position ICR in H & S performance.

Ashwin Raykundalia, Head – Health & Safety, Ambuja Cements Ltd


Communication Feature

Condition Monitoring in High ‡Ƥnition H Using traditional measurement techniques to monitor bearings rotating below 100 530 LV YHU\ GLIÂżFXOW 630 ,QVWUXPHQW KDV LQWURGXFHG D 5HYROXWLRQDU\ DQG 3DWHQWHG 7HFKQRORJ\ 630 +'ÂŽ

T

KH SDWHQWHG 630 +'ÂŽ PHWKRG UHGHÂżQHV WKH practice of condition monitorLQJ RQ ORZ 530 DSSOLFDWLRQV 7KH method is designed to provide instant condition information of rolling element bearings in green, \HOORZ RU UHG LQ D ZLGH 530 UDQJH

The Method The use of high performance low-noise electronic components and extensive digital signal processing enables the method to detect extremely small shock SXOVHV $Q LQFLSLHQW VSDOO VR VPDOO that it is barely visible, still creates distinct shocks which are reliably GHWHFWHG 7KH UHVXOWLQJ 7LPH VLJQDO +' LV XQXVXDOO\ GLVWLQFW mostly due to these and a number RI RWKHU DOJRULWKPV 7KH VKRFN SXOVH PHDVXUHPHQW ZLWK 630 +'ÂŽ is a technology specialized in detecting elastic waves/shock pulses emitted from spalls and FUDFNV LQ EHDULQJV 7KH PHWKRG LV extremely sensitive, making it RSWLPDO IRU ORZ 530 DSSOLFDWLRQV Following picture shows a typical bearing spall development SDWWHUQ Figure-1

SPM HDÂŽ Overview

Figure-2

The SPM Transducer: 5-7 times more sensitive to shocks Data Acquisition: Clean shock signal with +LJK 6HQVLWLYLW\ Âą 'LJLWDO ÂżOWHUV DQG 'LJLWDO (QYHORSLQJ Disturbance Rejecter: 5DQGRP VKRFN DUH ÂżOWHUHG RXW +'P +LJKHVW 6KRFN DQG +'F /RZ VKRFNV Âą VKRFN SHU VHF

Direct Evaluation: 6KRFN levels and Patterns, condition LQIRUPDWLRQ DQG $QDO\VLQJ WKH shock source RPM Fluctuation Handler: Makes time signal and spectrum for evaluation crisper Symptom Enhancer: ([WUDFWV DQG (QKDQFH VKRFN VRXUFHV for analysis Shock Analysis: provides WLPH DQG VSHFWUXP JUDSKV

Industrial Challenges ‡ ([SHQVLYH %UHDNGRZQV ¹ 'RZQWLPH +XJH UHSDLU FRVW ‡ 6KRUW SUH ZDULQLQJ WLPH RI impending failure ‡ /RQJ 'HOLYHU\ WLPH IRU VSDUHV ‡ &ULVLV 0DQDJHPHQW ¹ Maintenance work puts lots of VWUHVV RQ FRPSDQ\ SHUVRQQHO

Summary 7KH 630 +'ÂŽ method is excellent for condition monitoring RI ORZ 530 DSSOLFDWLRQV 8VLQJ 630 +'ÂŽ D 6SDOOLQJ SURFHVV FDQ be closely monitored over a period RI PDQ\ PRQWKV 7KLV PHWKRG QRW only shows the existence of a potential damage, but the unique 6HQVLWLYLW\ RI WKH PHWKRG PDNHV LW possible to monitor the damage process in great detail, even down WR LQGLYLGXDO VSDOOV $V WKH GDPDJH progresses, the severity can be followed and replacement planned DW WKH EHVW VXLWDEOH WLPH Feature by P. Hari Krishna, Manager - Support, SPM Instrument India Private Limited. e mail: info@spm.co.in

March 2016 | INDIAN CEMENT REVIEW

[55]


Report

3rd Smart Cities Summit 2016 The event kicked off in Mumbai on February 10, 2016 at Vivanta by Taj, Mumbai in the wake of the Government’s announcement of the first 20 cities selected for the Smart Cities Mission. It was organised by Smart Cities Council India

The Summit also hosted the FIRST CITIES MISSION AWARDS and felicitated city officials for their exceptional contribution to the government’s smart cities mission.

I

t was a day-long event that witnessed participation from over 70 distinguished speakers and a high-powered, 50-member Smart Cities Trade Mission led by Bruce Andrews, Deputy Secretary, US Department of Commerce. More than 40 mayors, commissioners and urban officials from India interacted with over 300 delegates who attended the event. Parallel B2B sessions ensured a productive outcome for both participants and local government officials interested in adopting innovative technologies for their respective cities. The proceedings began with Pratap Padode, Founder & Director, Smart Cities Council India, welcoming everybody and laying emphasis on “the mandatory engagement of citizens” as a key

[56]

INDIAN CEMENT REVIEW | March 2016

element of the smart cities mission. While Bruce Andrews was in India to help facilitate business partnerships between both countries, in his special address he encouraged delegates to interact with the 18 US companies present at the event. He said that the US was pleased with the recommendations of the Kelkar Committee report and looked forward to its implementation. He also highlighted the importance of protecting intellectual property rights and exhorted India to deepen its capital markets. Further, Philip Bane, Executive Director, US Smart Cities Council, highlighted the work of the council and launched the India Readiness Guide along with Padode and a host of other dignitaries on stage.

Leocadia Zak, Director, United States Trade and Development Agency (USTDA), highlighted the work done by the trade body and averred that the US has the best solutions for India’s smart city projects. Praveen Pardeshi, Principal Secretary, Government of Maharashtra, said the private sector and Government need to deliberate upon the matter and restructure certain areas. Renato de Castro, an international expert on smart cities and Executive Director at Baumann Consultancy Network (Italy), laid stress on the importance of technology and collaboration. He picked out Singapore and St Louis as the best examples of smart cities and Rio de Janeiro for smart mobility.


Report A panel on ‘Financing for Smart Cities’ discussed the need for projects to be bankable to ensure the economic viability of infrastructure projects. Nevertheless, the panel accepted that the special purpose vehicle (SPV) structure envisaged for the smart cities inspires confidence. It saw the need for a new set of investors for long-term infra projects. In the session, ‘Technological Challenges’, the panellists unanimously agreed upon the use of best technology available, but with a domestic flavour to it. Meanwhile, the session was divided among two groups; while one faction was eager to imply standardised technologies, another preferred regularisation. The tech wizards also felt the need for technology-based infrastructure, a global mantra these days. The session on ‘Rethinking Mobility’ discussed the designing of BRTS, smart parking for growing parking congestion, car pooling and transport planning. It was recommended that the Government

rethink the age-old Motor Act, owing to which innovations such as car pooling have not been successful. The session on ‘Water Management’ deliberated upon drinking water for all and harvesting rainwater for better use. The panellists agreed that a holistic approach is required to handle water. Further, for better analytics, electricity, water and gas demand or supply would be important parameters of a smart meter. They analysed why certain cities grow and others are left behind. They saw employment, personal wealth and tax structure as primary reasons for a city to proceed on the path to development. The session ‘Energy Efficiency’ focused on LED, smart street lighting, integrated BMS, renewable energy and energy storage. The panel pointed to energy as a key factor in the ‘smart’ mix. They urged on the need to eliminate fossil fuels to generate electricity and reduce T&D losses by smart monitoring. They also emphasised upon the need to analyse

Launching the India Readiness Guide. (L-R): Philip Bane, Executive Director, US Smart Cities Council; Leocadia Zak, Director, United States Trade and Development Agency (USTDA); Bruce Andrews, Deputy Secretary, US Department of Commerce; Pratap Padode, Founder & Director, Smart Cities Council India; Sumit Banerjee, Chairman, ASAPP Info Global Group.

the pattern of electricity consumption to make storage more efficient, and for buildings under construction to ensure zero wastage of energy by using proper insulation and natural lighting. The session ‘Smart Planning for Cities’ focused on preparing master plans, including smart yet sustainable elements in planning, and Greenfield vs. Brownfield development. The panellists shared that a smart, sustainable city should bring together natural environment, services, and soft and hard infrastructure. They laid emphasis on the need for urban planning solutions to be area-specific and threw light on issues such as space for hawkers and parking, which need to be addressed in urban planning. They also suggested three things to be kept in mind in master planning: Demand facility, transit-oriented facility and financial planning. It was agreed that quality of life and business need to go together for a smart city. The session ‘Ambition Zero Waste’ focused on waste management technology and the Government’s mission vs. public response. The discussion started with stats on municipal waste generated and treated. As the panellists pointed out, landfills have become land hills owing to waste. They highlighted the need for a regulatory framework to gather the lifecycle of various waste products and ascertain how much of it can be recycled. Considering India will generate 10 million metric tonne by 2020, the T3 model of transport, training and technology was suggested for developing waste. The need for an army of waste managers and a systematic chain of waste management for smart cities was noted. It was undoubtedly an enriching day with power-packed sessions, discussions and a platform for ICR universal networking. March 2016 | INDIAN CEMENT REVIEW

[57]


Report

Elecrama 2016: Dazzling Power Play A round of the exhibition halls and one was greeted with enthusiasm and eagerness born out of the confidence in the exhibits on display at various stalls.

E

lecrama 2016 was inaugurated on the morning of February 13, at the Conference Hall of the Bangalore International Exhibition Centre (BIEC) on Tumkur Road, in the presence of high profile dignitaries including Piyush Goyal, Minister of State with independent charge for Power, Coal, New & renewable Energy, Govt of India; and D K Shivakumar, Minister of Energy, Government of Karnataka. The audience included the Who’s Who of the global power industry including delegates from several countries and top decision makers from participating companies. Organised under the ambitious theme of ‘World Electricity Forum’, for the first time in the history of the series conducted since 1990. Addressing the gathering, Piyush Goyal remarked, “I am truly amazed

by the size, scale and spirit of this conference. The event truly embodies the spirit of nationalism, where we in India will make in India, make to truly global standards, and make the best in class cutting edge technology products that will benefit the entire world.” For the record, members of the Indian Electrical & Electronics Manufacturers’ Association (IEEMA), the organisers of the event, account for nearly 97 per cent of all power equipment manufactured in the country. “Elecrama 2016 should become the front runner of the industry’s engagement with the rest of the world,” said Goyal. As minister in the union government coordinating with the electrical industry among all stake holders including the state governments, Goyal also articulated strongly the vision of Make in India,

Hon’ble Minister Piyush Goyal seen with office bearers of IEEMA

[58]

INDIAN CEMENT REVIEW | March 2016

which is one of the important programmes of the government. “Getting an electricity connection played an important role in the ease-of-doing-business index, where we jumped up by 29 points in terms of getting an electricity connection,” he stated. Railway minister Suresh Prabhu, and Minister of Heavy Industries and Public Enterprises of India, Anand Geete, also visited Elecrama 2016, signifying the importance of the event. Yet, the fact remains that though India is the world’s third largest producer of electricity after China and the US, about 300 million people in rural areas still do not have access to electricity and the country has one of the smallest per capita electricity consumption in the world. Babu Babel, President IEEMA, said, “We need investment in the power sector. Investors will be happy to invest in generating plants provided the government makes it easier for them to set up plants, ensure fuel supplies and most importantly, ensures timely payments for what they supply.” With over 1000 exhibitors from 30-plus countries and visitors from over 100, the event has already established a new record in its history of 26 years. A round of the exhibition halls and one was greeted with enthusiasm and eagerness born out of the confidence in the exhibits on display at various stalls. While the independent, professionally managed EPC giant L&T had a huge pavilion right inside the entrance in Hall 1, the other biggies too had similar spaces occupying innovative exhibits. L&T’s


Report Electrical & Automation business unit unveiled a state-of-the-art SCADA solution, SmartComm, on a standardised platform for the seamless integration of Medium Voltage (MV) and Low Voltage (LV) products that go into industry, infrastructure and the building segments. “SmartComm is E&A’s new SCADA-based unified software platform for device communication, integration, data acquisition and management, monitoring and control as well as pre-emptive and predictive data analysis. This single platform integrates all communicable product offerings ranging from digital panel meters through circuit breakers, protection relays, AC drives, soft starters, I/O modules, building electricals and building automation devices and sensors,” said S C Bhargava, Senior Vice President & Head of L&T Electrical & Automation. ‘Smart Your City’, flashed the bright message on the Havell’s pavilion in Hall 3A, an extravaganza in automation from a company that is “Making in India and Powering the World”, long before it became trendy to say so, according to its portal. From household appliances like motors and geysers and fans that can switch on and off at pre-programmed times and solar street lights taking instructions from smartphone using the Internet, and bulbs that can change colour in a million shades and vary the intensity, to high tech switchgear that goes beyond the conventional and enables switchover from mains to standby power without ‘batting an eyelid’, the company had even a smart petrol pump mock-up on display. If switching on/off the streetlights is a hassle, Havell’s has a solution to make it hassle free and soon, the company will also venture into rooftop solar solutions for households – the Internet of Things was explained in the simplest terms to the lay visitor.

Top view of the exhibitors.

It is not just one company, and not just the biggies. A new kid on the block in the form of a young entrepreneur Vikram Vanigota of Biocon Electric India impressed the visitors with his small booth done up innovatively making use of all the available space, displaying switchgear, LED lamps and units and even the good old insulation tapes, which is how the older generation had begun the entrepreneurial journey before he inherited the mantle. One of the most notable displays was at the Omron Automation booth, in the form of FORPHEUS – the Ping Pong Robot is a practical manifestation of the concept of “harmony between humans and machines”. Designed on Omron’s core technology of “Sensing & Control + Think”, the robot plays ping-pong not only with greater accuracy but also returns the ball to allow its partner a longer rally – that is setting in place a harmony and not competition. Describing Omron Automation as ‘Enablers of Make in India’, Sameer Gandhi, MD, Omron Automation India said, “Our efforts to position Omron as an ‘automation partner providing end-to-end solutions’ have been yielding significant results owing to which we

have been able to strengthen our share in many segments such as packaging, textile, automotive, FMCG, material handling, pharmaceuticals to name just a few. Moving ahead, we aim to progress in the digital segment too.” Most large players in the control and switchgear segment have latched on to the government’s Smart Cities initiative. Schneider Electric had a model of the “Smart Grid” – which automates, connects and saves energy for a variety of sectors, from electrical distribution to water management to emergency service, in short, the smart city. The company introduced over 18 products with clear focus on the energy and automation industries. Summing up the five-day event, Anil Chaudhry, Country President and Managing Director, Schneider Electric India, said, “At a time when India’s power sector is undergoing a paradigm shift, a lot of importance is being given to the development of renewable energy, the country needs to be ready to make use of this opportunity leading to a clean future. Schneider Electric, with its core technological competency in energy management, automation and smart metering, is all set to be a part of this ICR growth story.” March 2016 | INDIAN CEMENT REVIEW

[59]


Cement Prices ET Index of CEMENT PRICES 2003 =1000 ET Index

Date

1455.1

Feb. 02

1741.6

Feb. 26

Cement prices prices in all sectors have moved up-words and even after the budget also showed positive trend. Though nothing significant has happened still market indicated positive sentiment. The impact of infra projects is still to be seen.

Change Ĺ

Source: Economic Times Index Commodities

CEMENT (Unit - 1 metric tonne; Price in `) Mumbai

Delhi

Chennai

Pune

Hyderabad Bengaluru Ahmedabad

Kolkata

Grade 43

NA

NA

7500

6,000

NA

7600

NA

NA

Grade 53

5,760

NA

7600

NA

NA

7700

NA

NA

NA

4,900

7400

5,900

6,000

7500

NA

6000

Grade 43

NA

NA

NA

NA

NA

NA

NA

NA

Grade 53

5,760

NA

NA

NA

NA

NA

NA

NA

NA

4,900

NA

5,900

6,000

NA

5200

6100

Grade 43

NA

NA

NA

NA

NA

NA

NA

NA

Grade 53

5,760

5,300

7900

NA

6,300

NA

NA

NA

NA

4,800

7800

NA

NA

7,600

5160

5900

NA

NA

NA

6,100

NA

7,900

NA

NA

ACC Ltd

PPC Ambuja

PPC Ultratech

PPC Birla Super Grade 53

Coromandel Cement Grade 43

5,300

NA

NA

5,600

NA

7500

NA

NA

Grade 53

NA

NA

7900

5,700

5,900

7500

NA

NA

PPC

NA

NA

7800

5,500

5,700

7300

NA

NA

Vasavadatta Cement Grade 43

5,240

NA

NA

5,900

NA

6,800

NA

NA

Grade 53

NA

NA

NA

5,940

NA

5,000

NA

NA

PPC

NA

NA

NA

5,800

NA

6,700

NA

NA

Birla

17,600

15,000

17,800

18,000

18000

19,000

16,200

NA

JK

17,600

14,700

16,800

18,000

NA

NA

16,000

17400

White Cement

Contacts: Mumbai: Shekhar, Neelesh Industrial Agency. Tel: 022-2408 2121, Mobile: (0) 93247 16192. Kirti Shah, Paras Sales Corporation. Mobile (0) 92241 87800. Delhi: Girish Agarwal, Mahabir Building Material Store, Tel: 011-2664 2348, Mobile (0) 98100 62315. Chennai: Nazir Badshah, Super Traders, Tel No: 044-2651 2577, Mobile: (0) 72999 95577, 97892 57452 Pune: Ravindra, Kamal Distributors. Mobile: (0) 98224 28574. Hyderabad: Ravi Babu, Srinivasa Traders, Mobile: (0) 92461 06713. Bengaluru: Apna Stock, Tel No: 080-30832304, Mobile: (0) 9845868182. Ahmedabad: P D Agrawal, Agrawal Traders, Tel: 079-2585 1616. Kolkata: Pintu Roy, Arun Distributors Ltd, Tel: 033-2557 8632, Mobile: (0) 9830 997677, 9830 997672, Debashish Seth, Murari Mohan Seth and Co, Mobile: (0) 94323 39405.

[60]

INDIAN CEMENT REVIEW | March 2016


Product Info

Compact and easy-to-install valve control

A

lfa Laval ThinkTop D30 is an affordable and cost-effective alternative to conventional valve monitoring and control solutions.

Alternative to external solenoid valves Compact and intelligent, Alfa Laval ThinkTop D30 is an easy-toinstall integrated control unit for hygienic applications in the food, dairy, beverage, pharmaceutical and home & personal care industries. This reliable control unit offers an affordable and cost-effective alternative to conventional valve monitoring and control solutions.

Easy-to-install valve control Installation and setup is quick and easy, which eliminates fault handling during commissioning and production. It is designed to meet the market challenges for even more usability and hassle-free control of automated valves. Simply position

the unit directly on top of the valve actuator, connect the air and then connect the cable to the PLC system. No special expertise, adapters or tools are required as well as no need to adjust the feedback position at regular intervals.

Reliable and hygienic solution ThinkTop D30 detects loss of air pressure, which is one of the most common types of process failures. It withstands the effects of physical impact, vibration, water hammer, thermal variation and pressure shock. ThinkTop D30 is both watertight and IP66/IP67-compliant, so it prevents condensation as well as stops dust, water and other particles from penetrating the control head. This also means the control head can be hosed down with water or cleaning liquid without affecting its operation. This ensures maximum hygiene and effectively eliminates problems associated with corrosion and external contamination.

Valuable features The ThinkTop D30 features a digital interface with a 360-degree visual indicator, which makes it possible to enhance monitoring of air loss or leakage feedback from the energised and de-energised actuator. This contributes to more stable operation of hygienic processes, enhanced product quality and more uptime.

About Alfa Laval Alfa Laval is a leading global provider of specialised products and engineering solutions based on its key technologies of heat transfer, separation and fluid handling. The company’s equipment, systems and services are dedicated to assisting customers in optimising the performance of their processes. The solutions help them to heat, cool, separate and transport products in industries that produce food & beverages, chemicals & petrochemicals, pharmaceuticals, starch, sugar and ethanol. Alfa Laval’s products are also used in power plants, aboard ships, oil & gas exploration, in the mechanical engineering industry, in the mining industry and for wastewater treatment, as well as for comfort climate and refrigeration applications. Alfa Laval’s worldwide organisation works closely with customers in nearly 100 countries to help them stay ahead in the global arena. Alfa Laval is listed on Nasdaq OMX, and, in 2014, posted annual sales of about SEK 35.1 billion (approx. 3.85 billion euro). The company has about 18,000 employees. ICR For further information: visit www.alfalaval.com

March 2016 | INDIAN CEMENT REVIEW

[61]


Market Watch

The much awaited consolidation is here for good Market saw two major decisions on consolidation,Vaibhav Agarwal of PhillipCapital (India) Pvt. Ltd. captures.

A

s expected, February 2016 has seen few major and historic consolidation moves. While, Birla Corp called off its proposed transaction with Lafarge India and entered into an agreement with Reliance Cement to buy-out whole of their capacity, UltraTech Cement announced an historical deal by agreeing to buy-out 22.4mn tn capacity of Jaypee Cement. In our opinion, these moves should be seen as more of a structural evolvement of the cement industry rather than just consolidation. We also believe the valuations of these deals may not be a benchmark for any future deals, especially the UltraTech-Jaypee deal, as these deals were entered more by compulsion and not by choice of the sellers. The same is true for buyers as well but UltraTech made up for the same by a good bargain on the valuation. This consolidation will mean erosion of 6% of competition from Indian cement markets and will definitely give an edge to the price stability and pricing power of cement manufacturers in the longer term. Now the only large capacity which is up for sale is the whole of assets of Lafarge India (~11mn tn capacity) and we understand CRH and JSW Cement are the two leading contenders here. Interestingly, the buy-out strategies of both these contenders appear distinct. While CRH is known to buy assets at a premium valuation, JSW Cement is unlikely to buy any asset at a premium. We need to wait and watch whether the buyers of these assets understand the urgency of Lafarge India to sell these assets and make the most of the deal, as UltraTech Cement did with Jaypee Cement. This may be probably the last leg of consolidation move in the Indian cement industry and we expect the deal flow to slow down for the next 2-3 years within the sector. Notably, these recent deals may risk Birla Corp’s long term financial viability as they may be worried of UltraTech’s central India acquisition of Jaypee Cement. Given the competition intensity in the region, post consolidation, UltraTech may turn pretty aggressive in these markets which may harm Birla Corp’s financial strength in the longer term. Barring these possibilities, the only larger transaction which may happen in the long run is consolidation of Century Textile’s Cement division with AV Birla Group / UltraTech Cement and this will again

[62]

INDIAN CEMENT REVIEW | March 2016

be in favor of the industry. But in our opinion, this is away for at least 2-3 years from now. As far as Q3FY16 earnings are concerned, consolidated volumes for our coverage universe grew by 10%/7% yoy/qoq. No disappointment on volumes is the best part of Q3 and probably indicates the green-shoots of demand. Shree Cement continued its outperformance on volume growth with maximum 23%/12% yoy/qoq growth.Volume growth for large caps was muted and we understand this was mainly to protect pricing. Amongst multi-region large-caps, UltraTech outperformed peers and the maximum alignment was seen in case of Ambuja, which returned to its earlier strategy of volume calibration to ensure better pricing. Blended realisations for the sector remained down 1%/3% yoy/qoq and we did not observe any material disappointment. Ambuja Cements and Dalmia Bharat outperformed the realisation trend with flattish qoq. Maximum disappointment came from JK Cement at -6% qoq; despite this, it beat consensus’ expectations. This probably also means that JK Cement has the competitive advantage to generate earnings growth higher than peers with bounce back in realisations. Operating costs for the sector were the biggest saviours in Q3 earnings. Costs declined by 3% yoy/qoq. Power & fuel costs were the biggest contributors – down 18%/11% yoy/qoq. Mangalam Cement showed maximum improvement in cost structure yoy (-10%) driven by stock adjustments and high base, while JK Cement showed maximum improvement qoq (-8%) driven by savings from its Mangrol expansion. Amongst large-caps, UltraTech outperformed peers on opex by delivering 3%/6% yoy/ qoq declines in opex. The opex trigger is yet to materialise in Ambuja as pet coke usage remained flattish at ~50%. Had cost savings been delivered at Ambuja, its operating results would have been the best. Ambuja could deliver on opex saving from Q1CY16. Despite no disappointment in volumes and cost savings, EBITDA trend for the sector looks flattish qoq. Sectoral EBITDA/tonne was at Rs 705, -1%/+14% qoq/ yoy.Yoy jump is largely on cost savings. EBITDA ICR improvement is now realisation dependent.


ASAPP Info Global Group Presents 3rd Edition of

R

U O Y K O BO

COPY!

NOW

A unique, integrated business directory on Cement Industry Contact: Subscriber@ASAPPinfoGlobal.com Tel: + 91 22 2419 3000 Cement Infobank is a practical database with a wealth of information that includes: •

Database of companies from the cement sector comprising –manufacturers, dealers, suppliers, cement plant machinery, consultants, cement concrete block, RMC, cement products, cement storage / transport and allied industries • Sector overview ®

A profile of the companies - the areas of business, key operating units, subsidiaries, etc • Names and complete contact details of key executives • Vital sector data and statistics • Project opportunities – around 200 projects where cement requirement exists

A-303, Navbharat Estate, Zakaria Bunder Road Sewri (West), Mumbai-400015. Tel.: 022-2419 3000. Fax: 022-2417 5734 Email: Subscriber@ASAPPinfoGlobal.com

To order online visit : www.ASAPPinfoGlobal.com/Subscribe


Projects & Tenders Sr. Company No. Name

Project Title / Details

Location

State

Budget (Rs Crore)

Contacts

Sector

1

National Buildings Construction Corporation Ltd (NBCC)

Bagged contract from Ministry of Tourism, Government of India for planning, designing and construction of Indian Culinary Institute in Tirupati, Andhra Pradesh

Tirupati

Andhra Pradesh

89.42

B.Bhattacharya, DGM (PR), NBCC Bhawan, Lodhi Road, New Delhi - 110003, Tel: 011-24367314, 24367573, Fax: 011-24366995, pr.nbcc@gmail.com

Construction

2

LNG Bharat Pvt Ltd

LNG terminal is coming up at the Krishnapatnam port in the district with a capacity of 5 million tonne per year. The project is likely to commission by 2017.

Nellore District

Andhra Pradesh

NA

Ports & Lieutenant JVVS Murthy, MD, Aishwarya Shipping Enclave, Plot No. C-156, Walkers Road, Venkateswara Nagar, Rajahmundry-533103, Andhra Pradesh. Tel: 0883-2427074

3

National Highways Authority of India

Plans six laning of Chilakaluripet -Vijayawada section from Km 355.00 to Km 434.15 of NH-5 under NHDP Phase V. The Louis Berger Group Inc. In Association with Louis Berger Consulting (Pvt) Ltd is the Authority Engineer/ IE. Francis Aw Soon Lee/Ravi Kiran is the Project Manager. As of now the project is in DPR stage.

Vijayawada

Andhra Pradesh

804

T. Suresh Kumar, Flat No. 21, Teachers Colony, (Above SBH), Vijayawada-520008, Andhra Pradesh. Tel: 0866-2483910

Roads/ Highways/ Bridges

4

National Highways Authority of India

Plans four laning of VijayawadaMachilipatnam section of NH-9 from Km.0/0 to Km.63/800). CDM Smith Inc in JV with WilburSmith Associates Pvt Ltd Demobilized is the Authority Engineer/ IE. G Shreedhar is the Executive Engineer. As of now the project is in DPR stage.

Vijayawada

Andhra Pradesh

606

T. Suresh Kumar, Flat No. 21, Teachers Colony, (Above SBH), Vijayawada-520008, Andhra Pradesh. Tel: 0866-2483910

Roads/ Highways/ Bridges

5

Oil India Ltd

Bids are invited for API class G cement. Submission Date: 20th April 2016, (SSG9973P16)

Duliajan

Assam

9.84

Bhavik Mody, Materials Cement Dept., Oil India Limited, Duliajan-786602, Assam. Tel: 0374-2800546, material@oilindia.in

6

Chhattisgarh Water Resources Department

Tenders are invited for remodelling and cement concrete lining work from road 0m to 96217 m and 35 nos. structures of dy. no 06 of lawan branch canal. Submission date: 22nd March 2016, (4475)

–

Chhattisgarh

5.65

Executive Engineer, Raipur, Chhattisgarh. Tel: 0771-2424523

[64]

INDIAN CEMENT REVIEW | March 2016

Cement


Projects & Tenders Sr. Company No. Name

Project Title / Details

Location

State

Budget (Rs Crore)

Contacts

Sector

7

Directorate of Municipal Administration, Karnataka

Tenders are invited for construction of cement concrete road at division No. 10 Mattur’s house to Malavade’s house back said. Paving of RCC block on top exiting RCC drain and construction of cement concrete road at division No. 15 Hatti master House to Urdu High School. Construction of RCC drain at division No: 13 from hadimani Mastr’s house to nursing home and TMC Garden besaid drain bed work and near Hugar Mastar’s house. Submission Date: 29th March 2016, (DMA/201213/OW/WORK_INDENT8027)

Karnataka

NA

M I Agadi, Manager, Bangalore, Karnataka. Tel: 08378-255250, M: 9480133060

Cement

8

JMC Projects (India) Ltd

JMC, a subsidiary of Kalpataru Power Transmission Ltd is India’s leading contracting company. The company has recently bagged five building projects in Bangalore.

Bengaluru

Karnataka

794

“V Venugopal, Business ConDevelopment Executive, struction Gold Tower, # 50, 2nd Floor, Residency Road, Near Konark Hotel, Bengaluru-560025. Tel: 080-30771727, M: 09886058435, E: vvenugopal@ jmcprojects.com (Shailendra Kumar Tripathi, Dy. Managing Director & CEO)”

9

Adani Group

Plans investment for developing the Tadadi port in Uttara Kannada district.

Karnataka

2000

Devendra Amin, Sr VP Ports & (Corp Comm), Shipping Sambhaav House, Judges Bungalow Road, Bodakdev, Ahmedabad - 380015, Gujarat. Tel: 079-25555157, 25556900, Fax: 25557155, devendra.amin@adani. com

10

Thiruvananthapuram Development Authority (TRIDA)

Plans to construct a nine-storey building at Panjapura Junction. The building would be used for vehicle parking, rehabilitating traders who were evicted for developmental projects, residential purpose and for allotment to certain government agencies and organisations.

Thiruvana- Kerala nthapuram

21

Pramod P.B, Executive ConEngineer,Vazhuthacaud, struction Thiruvananthapuram - 695010, Kerala. Tel: 0471:2722748, M: 09446442341, pramodtrida@gmail. com ICR

March 2016 | INDIAN CEMENT REVIEW

[65]


®

T R A M S

/ 9 9 2 1 ` T A N O I T P I R C S SUB

SMART OFFER FOR SMART PEOPLE VALID TILL 31ST MARCH, 2016

AS THE NEW BUDGET PROMISES TO USHER IN A NEW CHAPTER OF DEVELOPMENT OF INDIA. GEAR UP TO CONVERT CHALLENGES INTO OPPORTUNITIES. OUR GAMUT OF PUBLICATIONS COVERING WIDE SPECTRUM OF CONSTRUCTION, INFRASTRUCTURE, INDUSTRIAL, ARCHITECTURE / DESIGN, TEXTILE, AUTOMOTIVE, POWER AND PROJECTS SEGMENTS EMPOWER YOU WITH RICH CONTENT AND LATEST UPDATE OF THE INDUSTRY THEREBY ENRICHING YOUR KNOWLEDGE BANK MONTH AFTER MONTH.

SUBSCRIBE TO ANY OF OUR MAGAZINE AT `1299/- PER YEAR GET THE LEADING EDGE IN YOUR BUSINESS SEGMENT OVER YOUR COMPETITORS

Call now81086 03000


150

February 2016 l Vol.8 l No.6

A Deal For

THE Planet The latest attempt at saving the planet from the dangers of climate change has paid off. However, the power sector has to gear up for the new dynamics it brings in.

INSIDE Legalese - Imp-Ex Viewpoint - Generators Power Point - Digitising Utilities FEATURES Diesel Engines & Gensets Instrumentation & Controls

Instant Subscription

Wind O&M

Best textile equipment magazine for 126 years

Automotive components magazine for 11 years

www.IndianCementReview.com

` 150

INDIAN

India’s largest circulated engineering magazine for 44 years ` 200

February 2016 • Vol.18 No.5

VOLUME 30 • January 2016 • NO 6

fIRSt

FEATURE Lubricating oil viscosity trending

India’s first renewable energy magazine

A premier magazine serving Indian power industry

29-01-2016 11:04:38 AM

Exclusive!

CEMENT REVIEW

INDIA’S FIRST & ONLY BUSINESS MAGAZINE FOR INDIAN CEMENT INDUSTRY

India’s first infrastructure equipment magazine

Power Today-Fabruary2016-Cover.indd 1

SN Subrahmanyan, Deputy MD & President, L&T...62

Chennai Challenge...92

Lubricant technology

Opportunities in Ports & Port Construction...96

Scope for synthetic oil-based lubricants

Optimism in Roads & Highways...72

TEchnology Eco-friendly solutions or need of the hour

Managing Construction Waste

As cities are getting choked by huge levels of C&D waste, it is time for city corporations to take immediate action, developers and contractors to get more responsible, and a legal mandate to be imposed to manage, recycle and reuse this waste....44

®

Instant Subscription

® www.ConstructionWorld.in

News & Events│ Market Watch │ Projects & Tenders

/CWmagazine /C /CWmagazine i /ConstructionWorldmagazine W rldmag Wo ld agazine i

Serving information needs of Indian cement sector

Largest circulated construction business magazine in India and Gulf

India’s first B2B interiors magazine

100+ new project opportunities in India fortnightly DIGITAL COPY

India’s Leading infrastructure business magazine

Call us now and book your subscription... If booking online visit – www.ASAPPInfoGlobal.com/smart ASAPP Info Global Services Pvt Ltd

A-303, Navbharat Estate, Zakaria Bunder Road, Sewri (West), Mumbai-400 015. Subscription: 91-22-24193000, Mobile: 81086 03000, Email: Subscriber@ASAPPInfoGlobal.com

 Yes, I wish to subscribe / renew-

 (Please choose the magazine you wish to subscribe and tick the Subscription duration)

Construction World  1 Year `1299  2 Years `2500 | CW Interiors  1 Year `1299  2 Years `2500 Indian Cement Review  1 Year `1299  2 Years `2500 | Indian Textile Journal  1 Year `1299  2 Years `2500 Infrastructure Today  1 Year `1299  2 Years `2500 | Equipment India  1 Year `1299  2 Years `2500 Power Today  1 Year `1299  2 Years `2500 | Industrial Products Finder  1 Year `1299  2 Years `2500 Automotive Products Finder  1 Year `1299  2 Years `2500 | Project Reporter Digital  1 Year `1299  2 Years `2500 for ` drawn Enclosed is my cheque / Demand Draft No. in favour of “ASAPP Info Global Services Pvt Ltd.” payable at Mumbai. Add `50 for on outstation cheque. For online payment log on to www.ASAPPInfoGlobal.com/smart Designation Name Company Add Date of Birth City Pin Tel:(Resi) (Off) Fax Mobile E-mail

Terms & Condition:

1) Subscription Offer is valid In India Only. 2) Subscription rates are inclusive of delivery charges. Copies are dispatched by ordinary post. There would be additional cost for delivery by Courier. 3) If you have subscribed after 10th of the month, the subscription will commence from the next issue. Please allow 8 weeks for delivery of your assured gift if any. 4) ASAPP Info Global Services Pvt Ltd does not entertain cancellation of subscription after commencement of the same. No requests for refund will be entertained. 5) Although it would be our endeavor to ensure timely delivery of your copies, ASAPP Info Global Services Pvt Ltd is not responsible for postal/courier delays. 6) All disputes are subject to the jurisdiction of competent Courts/Forums of Mumbai. 7) Offer valid till Stocks Lasts. 8) Don’t make subscription payment to any agents / booksellers unless confirmed with us. List of authorised agents are available on our website.


Events MARCH 15 - 16, 2016 KIGALI, RWANDA

8TH AFRICA CEMENT TRADE SUMMIT DESCRIPTION: CMT’s 8th Africa CemenTrade Summit will be held in Kigali, RWANDA has a theme “Positioning in Africa’s Competitive Cement Sector to grow your Market Share!” The key highlights will include the following: Global M&A & its consequences; Cement and grinding plant investments update & trade flow in Sub-Sahara Africa, North & South Africa; Infrastructure masterplan & construction outlook; Consistent power supply challenges & prospects for alternative fuels; Increasing efficiency in cement production & modernization of cement plants; Growth prospects of ready-mix concrete & aggregate markets; Addressing transport & logistics constraints; Financing projects in current economic climate. CONTACT: Ms. Grace at grace@cmtsp.com.sg or call +65 6346 9147 for more details.

LONDON

MARCH 15 - 16, 2016 1ST GLOBAL CEMCOAL CONFERENCE ON COAL FOR CEMENT AND LIME DESCRIPTION: Coal is still the most-used fuel in the global cement industry, supplying perhaps 90 per cent of the global cement industry’s calorific needs. Global CemCoal will bring together coal shippers and traders with coal buyers from the cement and lime industry, as well as providing a forum for coal and by-product users, for information exchange, networking and business. CONTACT: Amanda Crow, Global Cement, Pro Global Media Ltd, Tel: 44-1372 743837 Email: delegates@propubs.com

APRIL 06, 2016 KENT, UK

DUST EXPLOSIONS – HOW TO DEMONSTRATE DSEAR/ATEX COMPLIANCE DESCRIPTION: Explosions and fires within the processing industry from combustible materials are a known hazard and can give rise to serious injury - perhaps even fatality. It includes a brief overview of current legislation and the safety precautions required to demonstrate compliance and provide a safe working environment for employees. At: The Wolfson Centre for Bulk Solids Handling Technology, University of Greenwich, Central Avenue, Chatham Maritime, Kent ME4 4TB CONTACT: Tel: +44 (0) 20 8331 8646, Email: wolfson-enquiries@gre.ac.uk

LONDON, UK

MAY 10-11, 2016

[68]

3RD CONFERENCE ON ENVIRONMENTAL TECHNOLOGY FOR CEMENT & LIME DESCRIPTION: The theme of the conference and exhibition is ‘Minimising environmental impact while maximising profit:’ Topics covered will include: Regulatory trends; Mercury emissions abatement; Dust, NOx, CO2; Emissions monitoring; Filtration & ESPs; SNCR, SCR, thermal oxidation; Water management. CONTACT: Amanda Crow, Pro Global Media Ltd, Email: delegates@propubs.com, Tel: +44 1372 743837

INDIAN CEMENT REVIEW | March 2016


info.penta@penta.net


Regd. No. MCE/207/2014-2016. Licensed to post without Prepayment No. MR/Tech/WPP-256/East/2016 posted at Patrika Channel Stg. Office, Mumbai-400 001. On 10th & 11th of every month. RNI No. 46987/1986. Date of Publication 10th of every month ISSN 2277-6494.

Total Pages 70


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.