Login

Indian cement industry – present status and the way forward: Dr SK Handoo, Cement Manufacturers’ Association of India (India)

Filmed at Cemtech Asia 2015, 21-24 June, Grand Hyatt, Bangkok, Thailand

Already a subscriber? Login

Subscribe to get access to all News, Articles and Video sections of the CemNet.com website.

Subscribe

I'll begin my presentation by recalling my last presentation which I made in the Cement Asia, Jakarta in 2013. At that point of time there was certain projections which were made based on the inputs we had at that point of time, and if I recall those I think much changes have happened over the period.

Now what I have tried to do in this presentation is basically, if you see the title itself says "The Present Status and The Way Forward". I think there is almost half of the presentation will be on the present status and the rest will be on the way forward. Now I'm here on behalf of Cement Manufacturers Association, so it's my prime duty to just have a few words about our association. I think we represent the major cement industry in the country, almost 75% of the capacity is our members' plants here.

Now, we basically provide a link between the industry and the government I think in my introductory words, [xx] also mentioned about that thing. And we have a role to play in the formulation of the government policies based on the inputs which we have from the industry. And then apprise the authorities of the latest technological development which have taken place and how they can be put in place from the governments point of view.

Of course there is a need on the rational use of cement. Today we talk so much about sustainability. Ultimately, at the end of the day nature has given us something. So, we not only have to use it, we have to conserve it for the future generation also. So, there has to be that quantum of rational utilization of the cement apart from the demand whatever we make is this.

One of the job we also on the quality assurance of the product because that's what ultimately means. I think in the following presentations they're saying that cement is selling very good and because of it's quality and all those things. So, in any competitor to market you've to keep those options into view. Now, finally with respect to our rule on the global sustainability, we have joined hands with cement sustainability initiatives in 2012. So, we act as a communication partner with a member companies of CSI group with [xx]. Now, just an overall scenario of the industry, I think looking back from where a moderate industry, we have moved to one of the most modern and world class industry today.

As most of you maybe aware, last year we completed 100 years of the industry. So, today we are 100 plus. Now, in these 100 plus where we have moved from, I think we have tried to broadly bring out in this slide we are the second largest producers of cement. And as I said this world class cement we are producing using the best practices, and having the products of the global quality.

Now, there's a,
Now, there's a in the process we are contributing to the nation as a revenue sector also, I think that goes without say. Now, I think Thomas is here around, he will hear me. You are fortunate enough to have the latest issue of your global review with you. So, obviously you have both access to the latest data, I don't have today in this presentation.

So, you are already updated, but anyway, much will not change on the figure which I have presented here. Now, it tells me about the share of Indian production even that saving the second largest cement producers. Now, what do we want to effectively say that apart form this being the second largest producers, one important aspect is the what is the per capita? Because I think I'll just come to this little later, because ultimately the demand which has to be there, if you see the international figures, again I think, he will correct me, I had figures of 543 kg per capita, the whole average.

I think the slide he showed just before this thing, I think it was go to 573 or so and I think is. Anyway, that apart, we are still at 203 kgs. So, if you look at that gap itself, I think a large gap so there's a need to produce more also on this. Now, looking at the world cement production, I think this graph would like to see the lead, the Asian market I think the production in the Asian sector is very clearly reflected here. I think it is leading over the all other regions. Now, this is what I was trying to mention in my last slide, and in this figures, Thomas has corrected to 573 I suppose in the latest letter.

So, there is a way back, I mean there's a lot of gap between this which has to be catch up. Obviously, I mean there has to be means to increase this thing. Now, there's a typical growth structure of the Indian Cement Industry. If you see, 100 million tonnes were achieved in 83 years Indian Cement Industry. Then another 100 million tonnes were added in 11 years only and the next 3 million tonnes we got it in three years only. So, I mean that's the rapid growth of the Indian Cement Industry. But along with this thing if you look at the gap between the consumption and the capacity, that's also very clearly seen from this thing, it's has widen. I mean, we're not the only country which is facing these things, there are others. I mean, you've seen in formal sessions, number of presentation in it. This is an issue which has to be addressed and how it is done I think, there lies the, I think, success for the future endures.

Now, looking at the scenario
of the Indian Cement Industry I think when he said moderate industry to the most modern. If you see how, I mean how our kiln capacity has moved, how our heat consumption and the power consumption has gone down [xx]. I think here I must say Indian Cement Industry warranty has been taken many action on its own to see that they're energy efficient, they are power efficient on all plants. I mean, that's result of this that we have achieved these figures. This is only May, last May there was a book released in Hyderabad in the CII publication just mentioned here. And they have listed number of countries here and given their specific electric energy consumption such as the specific thermal energy consumption.

Now, if you
can see across the table both for the electrical energy consumption, specific energy consumption and for the thermal consumption, probably we've got the best figures. I think this is one of the positive things also as well as worrying things. Positive things are quite obvious but worrying thing is there is always a limit of for saturation. Theoretical if you go by the thermodynamics of cement making process, you know how many kilocalories of cement you can make. But you cannot go below that thing, I think that the very last steps. So, to the extent I think they choose those figure largely.

Now, based on this type of attainments,
we the Government of India, I think they have come out with perform, achieve and trade scheme in 2012 March. And there was a notification warrant, there is a need for mandatory reduction of specific energy consumption.

This was across the eight sectors and the cement being one of the sectors there. So, over a period of three years starting from 2012 and to 2015 I think we've to reduce by over 4.8%. Now this was, I'm just talking about the major decisions which were responsible for the energy efficiency on this thing. Similarly, there is initiatives on the all uses of alternate fuels and increasing the Waste Heat Recovery and off course a lot globally in competitive technologies.

Now, coming specifically to this Bureau of Energy Efficiency, that's the BEE stands for on the scheme, the plants whose annual energy consumption was more that 30,000 metric tons per oil equivalent. They were chosen in the first cycle of 2012-2015 and in the process there were 85 designated consumers from the cement industry.

So, who were [xx] target of achieving energy direction on case to case basis because when this scheme was worked out, I think at that point time it was thought of the board would put this much [xx]. But then seeing the variation in the cement industry, I mean, what type of plant to plant variation. It was decided that we'll have the BEE syllable and with respect to BEE syllable how much of reduction is possible.

Now, for the first cycle, 2012-2015 has been already completed on 31st March. Now, right now the measurements and verification is going on, so the plants will come out that how much they have received. Now, in the process I think there are these target there are going to get Escerts that the energy saving certificate. Those can be carried to the next cycle also.

Now there's a linkage, I think, again we're recalling the morning discussions when mention was made about the clean contractor. When the options for energy efficiency are there, one is you can make your system process energy efficient. The another thing is that how you can make the total energy consumption reduced by more use of blended cement and all that thing.

Now, in that process there's s a significant progress Indian cement industry has made, you'll see in the subsequent slides. But just to give you an idea about the generation of fly ash because basically there are; one is the generation of fly ash and then here is an industry which can make use of that fly ash.

And simultaneously reduce the energy consumption on this thing. Now the figures which are shown here, I mean they say more than 53,000 megawatts are likely to be added in the built plant. I think in India, I think maybe we used to have five year plan, that is, the last this 12 plants started in from 2012 to 2017. So, these estimates projections are made over a period of five years.

So, this is what projection has been made here. Now based on that, if you see in the generation of one megawatt, how much fly ash is generated besides the bottom ash. And we're going to, we already reached around 80 billion tonnes and another 20 metric tons are being generated by our top two power plants which're maintained by the cement industries. Now, with this type of utilization at present we're already making use of 50% of fly ash utilized mostly for construction and balances deposits in ponds and molds.

Now, there isn't issue with respect to the availability of the fly ash which has to be worked out and become specifically to that plus. This is the spread of the our thermal plant. Now what happens, it would have been an ideal situation that there's a thermal plant and there's a cement plant nearby.

But as nature has provided, put the natural resources in such as everything is not everywhere. So, you have to move from one place to another place, if limestone is on this part of the thing and it will be very fortunate situation that you have a cement plant also there and fly ash is generated there. So, one you have to use the material which is not in your vicinity, the most important sector is the economics that should work out. Because after all if you're going to use some of this materials to the benefit of the, I mean, environment as well as benefit of the product also because it is quite well-established of the Portland [xx] Cement has got longer durability over the Portland Cement.

From that point on, there's a lot of distances come in the way, so one has to see what is the optimum usage. That's what I had the last line in the last slide was saying, that these and things had to be facilitated. I think the Government of India is working on those issues on these things. Now coming specifically to the consumption of fly ash, about 39% germinated from some plants used in the cement industry and almost 100% of slag is utilized.

Now as the result of this thing, you can see the picture which is shown here, you can see, I think you can see here from 90 to 91, I think this, the portion of a OPC was around 70% and you had PPC India of 20%. And now you have the mood to come down to 62% in 2000-2001 and this increase to 26%. Now at a drastic change happened over the period of 2010 and 13. Now, you can PPC of one to 60. Anyway, doesn't effects, there's some problem in this. 2010/11 the PPC quantum has gone to 60%, more than 60% and of course 2013/14, it has gone to 61%.

Ideally, we'd have been very happy [xx] the even 60% they should have gone beyond that thing. I think they should've been somewhere around 65% or so, but the issues which was just talking about are coming in the way. I think some [xx] have to be found out on those things, so that'll be important.

Now, if
we have a look at futuristic view on these things.

Now the total cement production as you can see here for the period of 2017, the PPC percentage is listed here. Now you can see here how the fly ash utilization is expected to grow. We are here around 39% I said in my last slide. We expect it to go up to 50% by the end of this plan. If I mean the economics allow us to do so.

We have about 10 million tonnes of granulated [xx] which is utilized. As a result of this think we've gone from 18% blended cement to around 70% this year. But this figure is now present saturation stage. So, I think apart from this thing, now I'm talking about the cement industry making use of this materials.

You see, fly ash is not used in the cement making than it's going to be an environmental problem. So, to that extends the major consumer of fly ash. Now slag is also in the same category but again the cement industry utilizes these things. Now apart from that there's fluorogypsum, phosphogypsum and so many other wastes which have been listed in the last nine years.

Now, I will talk about the hazardous waste and none hazardous waste separately. Cement industry has to, we conceive that it is providing an option. A unique option which no other industry provides. The process is such that the material is processed at a very high temperature around 1450 degrees celsius. So, whatever hazardous waste or non hazardous waste are burnt as an alternate fuel, I'm just saying. So, it gets absorbed there, even it does not leave any ash into there. That ash is also consume to this cement making. So, to that extent, it's a totaly environmentally friendly process.

Otherwise, if you burn waste by water mechanism, it'll leave one you would not using, here they will speak of ashes also, consumed and disposed into the clinker matrix also and gets [xx]. And the some of the research and studies which have been carried at National Council for Cement and Building Materials have revealed that even the heavy metals in any of the hazardous waste that is processed as alternate fuel. And then you study the clinker and the X-ray deflector clearly shows that those metals are mixed up in the clinker matrix. And not only that because what is important is the leeching process, after that the leeching process studies are carried out and then you ensure that nothing is leeched out obviously, so it's the safe for the conception as well.

So, you want us to see it from that point on, even and I think the authorities have also appreciated that it's not only cement industries making good use of to the benefit of only this thing. There's the environmental issue, and there is an industry which deputy needs an acquisition for consuming so much of waste materials. Now, all this is being done I said in my opening remarks about, why all these exercises is being done. Because there's question of sustainability, if we make so much of the cement and then we generate so much emissions in the air, we have to keep that things those in under control. So, we have to use these mechanics in such a way that the carbon footprint also reduces. That's one of the ways when we're using an alternate fuel, that means you're saving so much of fossil fuel.

When you're saving so much of fossil fuel, your're reducing the carbon footprint also. I think I've got a signal, but I'll just try. Now I think I'll come to the way ahead. This is what was the status of this. Now quickly I'll go. What is the way ahead? The major challenge economic aspects on one side, but technologically and otherwise, what are the key issues which need to be addressed to take industry forward.

Targets are made, projections are made, they have to be met. That's always good to talk. But then there is increase in Thermal Substitution Rate. This is a very key factor. If you go to the road map suggested by cement sustainability. I think there's a figure, I think if I remember by 203 or something 25 a percent TSI should go.

We have figures that in Europe, I think Netherlands had got 83% TSI percentage. It may be possible for that industry at a small scale, but when we talk of about 350 million tonne capacity cement industry. So, I mean to have 25% probably you'd have to generate so much of those things. But there is a definite increase to be attempted on this thing. Similarly, to reduce the clink effect, I think dimension about this because I have to be at [xx] to be at best.

[xx] more blenders cements or by any reason you have to address these factors. That's through increasing blended cement. The trend which I had shown was a very positive going from 30-60 or to 70% blended cement. But whether we are able to maintain that or increase further that's going to be there. Then co-generation through Waste Heat Recovery and of course increasing user for level renewable energy.

Now I think this slide is a very interesting slide which gives an overall picture, where we are today. It's Indian history and what is estimated by 2023/24. Now, the figures maybe I mean, figures as such are not so important than the trend which is to be seen. Now when we talk of production and capacity.

Capacity today maybe at 75 capacity utilization. We have projected here at 90% a very positive. I was very happy the presentation made by Vietnam I think. He says let's look very positive on that. So, now here this is the requirements we are go in terms of coal, limestone gemstone and porcelain tiles. These have to be kept in mind, while we are making [xx]. I think I mentioned to you about this percent that I didn't report, we are still at 1% in recent we had some meeting.

I said that we'll be very happy that if we are able to achieve at least 5% of this TSR not to talk 25%, but achieving high perentile by yourself will be a good thing. I think again these are some of the figures which we've got our municipal waste.There is lot of [xx] been given by the new government, new government on the how we can use this municipal waste [xx].

This is again on the whole processing on things, I think, I think this last one today, I mean the NASA is also trying to recall some of the pictures if anything is burned in an open. They catch up and they make a mention that this is being burnt into open so out of pollution, I think these are the things that well, for example the binding if biomass infuse it causes pollution.

Now airports are being made on that aspect also how best it can utilized on this. I think I'm getting signal here, this has been item made by CMA in the last two, three years, so we'll join hands with shoot up industry productivity in Washington DC. So, on this particular issue of increasing the Thermal Substitution Rate.

The first conference was held in August, 2013 and while we worked in action plan, how to move in different between us we can more over a period and consume listing. It was reflected at that point, I want to 15% by 2020, I think it's a very optimistic feature. Then second phase, we conducted in February only the second conference citing a step in forward as [xx].

There's a lot of scope on this Waste Heat Recovery. I think we are still to catch up on this thing, most of the heat which is going how best it can be utilized on this thing. Again this is the vision document, this was by CII while we can see the deeper projections made by on PPCN, the rest by OPC and PSE.

I think these projections I believe, these are basically the challenges which were set India a road map off CSI, I need note it. One mention about this rule, concrertezarion. This is in an area which has to mob in India particularly we already started concreting about so many things I think in Idea where they could be increasing their some increase in there cement consumption off course many industrial for this.

I wanted to make a mention of this are the number of new government initiatives have been taken up to the white the old regulations and acts because they become important with aspect in implementation of infrastructure borders support people how exercise to deminal[sp?] resource land, power bills, new capacities availability of [xx] off course on this taxation policy this.

Right you must have seen were are the company which we are projecting making India you can see the log there so all these things to talk about developmental things which are on the move. I think with these words I think I say thank you and the last line you can read and those are from Thailand, they'll make is I can not pronounce that.

I think I would allow to share more but time permitting a lot of close down here, if you want to have some quick queries during the coffee break you're most welcome I'm here tomorrow afternoon, I'll be leaving then. Thank you so much.

Cemtech Europe 2024

Cemtech ASIA 2024

Cemtech MEA 2024

Cemtech Europe 2023

Cemtech Asia 2023

Cemtech MEA 2023

Cemtech Webinar 2022

Cemtech MEA 2022

Cemtech Americas 2021

Cemtech Asia 2021

Cemtech Webinar 2021

Cemtech Webinar 2020

Cemtech MEA 2021

Cemtech Virtual 2020

Cemtech Europe 2019

Cemtech Asia 2019

Cemtech MEA 2019

Cemtech Europe 2018

Cemtech Asia 2018

Cemtech MEA 2018

Cemtech Europe 2017

Cemtech Asia 2017

Cemtech MEA 2017

Cemtech Europe 2016

Cemtech Asia 2016

Cemtech MEA 2016

Cemtech Americas 2015

Cemtech Europe 2015

Cemtech Asia 2015

Cemtech MEA 2015

Cemtech Europe 2014

Cemtech MEA 2014

Cemtech Europe 2013

Cemtech Asia 2013

Cemtech Jakarta 2012

Cemtech MEA 2013

Cemtech Geneva 2012

Cemtech MEA 2012

Cemtech Europe 2011

Cemtech Europe 2010

Cemtech Middle East 2010

Cemtech Europe 2009

Cemtech Dubai 2009

Cemtech Florida 2008

Cemtech London 2008

Cemtech Singapore 2008

Cemtech Dubai 2008

Cemtech Florida 2007

Cemtech Prague 2007

Cemtech Abu Dhabi 2007

cemtech florida 2006

Cemtech Rome 2006

Cemtech Barcelona 2005