UltraTech Cement Limited Hotgi Cement Works

Team Members 1. Mr. Kasi Viswanadham – Deputy General Manager 2. Mr. Hanumanthappa - Manager 3. Mr. Viwek Zode – Asst. Manager

August 2020 1.a. Unit Introduction – Plant Details

ULTRATECH CEMENT LIMITED, HOTGI CEMENT WORKS

Land Acquisition – 265 Acres 1994 Line-1 commissioned – Capacity 1.2 MTPA 23 July 1995 Products – OPC 43, OPC 53, PPC & PPCS Introduction of PPC at Line 1 - Capacity enhanced by 0.8 MTPA 2008 Total Capacity 2 MTPA Line-2 commissioned with Capacity – 2.0 MTPA 20th March 2013 Products – OPC 43, OPC 53 & PPC Total Plant Capacity is 4.0 MTPA  Located at South Solapur, on – Hyderabad broad gauge line  Caters market of entire South-West Maharashtra. 1.b. Unit Introduction – Process Overview

Clinker from RCW

BCCW Rake 2. Energy Consumption Overview

Overall Energy consumption data Electrical Energy Thermal Energy Total Energy Year (kwh) (Kcal) (TOE) 2017-18 70619000 0 6072.14

2018-19 61646000 0 5300.60

2019-20 68315000 0 5874.03

Total Energy (%) Consumed 2019-20

0

Electrical Energy (kwh) Thermal Energy (kcal)

100 100% Electrical Energy consumption 3.a. Sp. Energy Consumption – Product Specific (FY 2017-20) OPC Grade Sp. Power kwh/MT

26.3 26.28 26.25 26.2 26.15 26.1 26.07 26.05 26.03 26 Grade Improvement % 25.95 OPC 0.95 25.9 2017-18 2018-19 2019-20 PPC 3.42 2017-18 2018-19 2019-20 Reasons for improvement PPC Grade Sp. Power kwh/MT Installation of Thin classifying Liners 25.6 25.45 C-194 Seperator fan impeller replaced. 25.31 25.4 Installation of Expert Optimizer 25.2 25 Grinding Media Regradation 24.8 24.58 24.6 24.4 24.2 24 2017-18 2018-19 2019-20 2017-18 2018-19 2019-20 3.b. Sp. Energy Consumption – Section Wise (FY 2017-20) Sp. Power – Section Wise 30 25.95 25.74 25.55 25

20

15

10

5 2.81 2.88 2.57 0.752 0.754 0.665 0 Total Grinding Power Packing Power Misc. Power 2017-18 2018-19 2019-20

Section Improvement % Reason for variation Grinding Power 1.54 Thin classifying liners, Expert Optimizer, C-194 Impeller replacement, Grinding Media Regradation, VFD operated bag filters, Roller profiling in every six months etc. Packing Power 11.57 Wagon loading bay extension, VFD operated bag filters, Increase in Packer speed, Increase in BCCW dispatches, installation powerless bag diverters etc. Misc. Power 8.54 VSD compressors in place of IR, AC energy savers, reduction of idle running of equipment's, Installation of LED lights utilization of only one cooling tower in monsoon etc. 4.a. Benchmarking (RP +Ball Mill Circuit) Internal Benchmarking Grade Present Sp. Power Internal Benchmark Kwh/MT kwh/MT OPC 25.30 25.30 (Lowest across UTCL) PPC 26.27 25.68 (3rd lowest across UTCL) ** Normalized SPC (kWh/MT) of PPC in RP+ Ball Mill Circuit at 380 m2/kg cement Blaine, 30 % fly ash & 300 m2/kg fly ash Blaine Benchmarking Source: UltraTech Technology & Performance Monitoring Cell Benchmarking report External Benchmarking Line Present Sp. Power External Benchmark Kwh/MT kwh/MT CM 1 25.09 24.37 CM 2 26.49 25.90 Benchmarking Source: In reference to CII Energy benchmarking report for Indian Cement Industry (May 2019, V-4). Short term & Long Term Target Line Present Sp. Power Short Term Target (Mar’21) Long Term Target (Mar’22) Kwh/MT kwh/MT kwh/MT CM 1 25.09 24.71 24.37 CM 2 26.49 26.20 25.90 4.b. Encon initiatives planned in 2020-21

Approx. Savings S.No Encon projects planned in 2020-21 Lac units/annum

1 Installation of separate Kaiser compressor for Line-2 bulk Loading operation. 1.08

2 Direct coupling of bag filter fans (4 Nos) at line 1 0.69

3 Direct coupling of bag filter fans (4 Nos) at Packing plant 0.43 Installation of Powerless diverters in place of motorized diverters (3 no's) in 4 0.18 Packing plant Replacement of 70 watts conventional lights with 18 watts LED lights in phase 5 0.13 manner (60 no's) Replacement of 400 watts conventional lights with 200 watts LED lights in phase 6 0.19 manner. (24 Nos) Modification of K22 BC7 discharge so that direct feeding of limestone is done to 7 0.11 its hopper at Line 2 Reduction in Separator Power consumption by installing Vortex plate in SKS 8 0.32 Separator. Installation of Proxy sensor device on the belt to identify the bags on the belt 9 0.08 and accordingly should trip for delay in no bags on belt. Optimization of Bag filter fan speed by modifying cleaning cycle with reference 10 0.14 to differential pressure of bag filter in Packing Plant Total energy Savings expected (Lac Units/annum) 3.35 5. Energy Saving projects implemented (FY 2017 -20)

Summary 180 166.60 160.71 160 138.86 140 121.1 120

100

80 60.71 60 51.41

40

20 13 11 6 0 2017-18 2018-19 2019-20 Proposals (Nos) Investment (Rs in Lacs) Savings (Rs in Lacs) 5. Energy Saving projects implemented (FY 2017 -20) Investments Savings per annum Payback Sl. No Project Details (Rs in Lacs) (Rs in Lacs) (Years) Installation of Thin Classifying Liners at line 1 1 105 74.24 1.41 (2019-20) Installation of Expert Optimizer at Line 1 & 2 2 52.00 30.00 1.73 (2019-20) Installation of energy efficient impeller for C- 3 21.34 15.59 1.37 194 Seperator fan. (2019-20) Installation of Airtron energy conservation 4 9.43 5.86 1.61 units for AC's (2019-20) Direct Coupling of C142 & C318 Bag Filter 5 0.35 1.85 0.19 Fans (2019-20)

6 Installation of VFD for P&V system (2019-20) 1.10 1.77 0.62

Installation of air control valves for 7 segregating compressed air lines of PP from 2.20 1.71 1.29 CM at line 1 & 2 (2019-20) Temperature interlocking of VFD Panels with 8 0.05 1.59 0.03 their inverter cooling fans - 8 Nos (2019-20) Silo top BE3 discharge chute modification 9 thereby eliminated the usage of 2.2 KW 0.20 0.78 0.26 blower (2019-20) 5. Energy Saving projects implemented (FY 2017 -20) Investments Savings per annum Payback Sl. No Project Details (Rs in Lacs) (Rs in Lacs) (Years) Replacement of Water Cooled fixed speed 10 Compressor with VSD air cooled 16.32 20.27 0.81 compressor. (2018-19)

Installation of 1 HT VFD & 5 LT VFD’s in 11 45.61 22.09 2.06 CM 1 & Packing Plant (2018-19)

BCN rake loading bay extension to reduce 12 4.80 3.91 1.23 the loading hours (2018-19) Reduction in Solar Deemed Generation by 13 connecting solar power to Line 2 Cement 1.15 5.28 0.22 Mill (2018-19) Replaced Conventional lighting 70 Watt 14 SV lamp into LED 18 Watt in Cement Mill 1.43 5.20 0.28 1 & 2 area.(450 Nos) (2018-19) Replaced fluorescent lights 72 watts with 15 18 watts LED tubes at offices & load 1.00 3.00 0.33 center areas (250 Nos) (2018-19) Regradation & Optimization of Grinding 16 Media.(Weight of Grinding Media Before 18.00 86.94 0.21 - 235MT; After 220MT) (2017-18) Cement transfer from line-1 to line-2 by 17 91.75 55.41 1.66 providing air slide. (2017-18) 6. Innovative Projects implemented

1. Thin Classifying Liners: Line-1 Hotgi Cement Works was installed in 1995 is of Polysius make containing Polycom + Ball mill circuit. The Ball mill has bolted normal class shell liners, which were in use since inception except for minor replacement for normal wear and tear. Entire liners need to be replaced for smooth running of mill as life of existing is completed.

Instead of going for bolted normal class shell liners again, we installed thin classifying liners of AIA make, which gave us additional benefit of reduction in specific power consumption by 1 kwh/MT.

Installation Month & Year: Aug’2019. Investment Cost: Rs. 105 Lacs Savings expected per annum: Rs. 74.24 Lacs Replication potential: Yes, can be replicated in all ball mills. 6. Innovative Projects implemented

2. Installation of Expert Optimizer at both line 1 & 2: Expert Optimizer is a hybrid intelligent-system product developed by ABB for expert closed-loop process control and optimization of cement grinding processes. It possesses human-like knowledge within specific domain. It makes decisions and takes actions to improve plant performance & to reach profitability and sustainability goals. Main benefits of Expert Optimizer: Increase in output & Reduction in power consumption. * Estimated savings in 0.4 kwh/t

Installation Month & Year: Feb’2019 Investment Cost: Rs. 52 Lacs Expected Annual Savings: Rs. 30.00 Lacs Replication potential: Yes, can be replicated in all cement plants.

3. Airtron Control Units for Packaged AC (AC Energy Savers): At Line 2, AC systems - 8 Nos (24 Nos AC compressors) at MCC/ substation are being continuously operated 24 hours a day for maintaining the healthy condition of Equipment's. Estimated Electrical Consumption per Day - 1030 kwh. Resulting in running expenses around Rs. 21.05 Lacs / annum. Installed Airtron Controller units (ON/OFF duty cycle ratio) with Frigitech Solution for AC systems to obtain 20 % savings in power consumption. Average electrical consumption per day after installation is 731 kwh (23.65%).

Installation Month & Year: Dec’2019 Investment Cost: Rs. 9.43 Lacs Expected Annual Savings: Rs. 6.16 Lacs Replication potential: Yes, can be replicated in all cement plants. 6. Innovative Projects implemented

4. Reduction in Solar Deemed Generation by connection Solar power to Line 2:

Issue: Earlier solar power was connected to line-1 load, whenever line-1 was stopped, the generation was considered under deemed. Hence we were incurring loss by compensating non-utilised solar power.

Work carried out: Spare HT capacitor feeder used as Solar incomer 2 for line 2 load and configured the reverse power protection with the help of M/s on 6.6 KV panel. Provided reverse power option for line-2 incomer. Provided castle interlocking keys for solar breaker 1&2 with new drive box arrangement thereby reduced the changeover time & increased the human safety.

Benefits: Solar power can be utilized for both line 1 & 2 thereby reduced the solar deemed generation. Avoided stoppage of packing plant, cement transfer circuit from line-2 to line-1 during change over

Installation Month & Year: Nov’2018 Investment Cost: Rs. 1.15 Lacs Expected Annual Savings: Rs. 3.51 Lacs (0.63 lac units) Replication potential: Site Specific. 6. Innovative Projects implemented

5. Enhancement of Truck Loaders capacity (In house): Issue: Truck loading machines 2 and 3 of packer-1 has a limitation for loading up to 27 MT. retention of 32MT trucks due to unavailability of infrastructure (32 MT trucks had to wait till the loading of other 32 MT trucks is finished on TLM 1 & 4). Work carried out: In house modification done by increasing the length of luffing by 750 MM & feed trolley by 1500 mm. Now all 4 Nos truck loaders of Packer 1 can be used for loading 32MT vehicles. Benefits: • Shift out put increased by 228MT by loading 32MT trucks continuously thereby eliminated 1.5 Hours of Packer 1 & its loading belts operation. Approximate savings of 0.86 Lac units/annum - Rs 4.78 Lacs • Purchase of new higher capacity machine is avoided thereby saved Rs 40.00 Lacs. • Meets the Logistic requirement. Gain from market by increase in shift output is Rs 16.40 Lacs per annum. • Avoided retention time (idle hours) of 32MT trucks.

Month & Year: Jul’2017 Investment Cost: Rs. 4.00 Lacs Expected Annual Savings: Rs. 21.18 Lacs Replication potential: Yes, can be replicated in all packing plants where truck loading capacity is 27 MT.

Before After 6. Innovative Projects implemented

6. Cement transfer from Line 1 to Line 2 by air slide: At Hotgi Cement Works, average Sp.Power Consumption of line-2 is more than line-1. There was a huge difference of 3 Kwh/MT. Cement transport through belt conveyors was available from line-2 to line-1 but there was no infrastructure to transfer cement from line-1 to line-2. Wagon bulk loading system is available at line 2 only.

Provided an air slide duct between line-1 to line-2 along with bag filters to transfer cement from line-1 to line-2 thereby reduced the Specific Power by 2.4 kwh/MT by increasing the utilization of line-1

Month & Year: Aug’2017 Investment Cost: Rs. 91.75 Lacs Expected Annual Savings: Rs. 55.41 Lacs Replication potential: Site Specific 7. Utilisation of Renewable Energy sources

• Solar power generation was started from 20th June 2018 with installed capacity of 1 MW.

• Achieved 2.81 MU against RPO target of 1.83 MU in 2 years.

• RPO obligation – Yes (Solar obligation is fulfilled against wheeling power).

Installed Capacity / % of Investment Onsite/Offsite Power Generation Year Enhanced Capacity overall electrical (in million) Generation (million kWh) (MW) energy

2018-19 52.96 Onsite 1.00 1.03 1.67

2019-20 Nil Onsite - 1.34 1.96 8. GHG Inventorisation

Environment Compliance status

PM NOX SOX Limit Limit as Limit as HOCW as PM Cement mill NOX SOX per per per MoEF MoEF MoEF

UOM mg/Nm3 2017 2018 2019 µg/M3 2017 2018 2019 µg/M3 2017 2018 2019

Line 1 30 29.83 21.48 16.76 - NA NA NA - NA NA NA Cement Mill ESP

Line 2 Mill Vent Bag 30 24.01 22.47 16.11 - NA NA NA - NA NA NA House

Line 2 30 27.05 23.34 16.21 - NA NA NA - NA NA NA Seperator Vent

AAQM - NA NA NA 80 12.87 9.96 8.61 80 27.61 28.10 25.11 8. GHG Inventorisation

Public disclosure

Environment display board displays Continuous monitoring & display of daily monitoring results of Air ambient Air quality from AAQMS & Emissions & control, STP, Hazardous data transfer to MPCB & CPCB. waste generation etc. 8. GHG Inventorisation

Safeguarding Environment Amount Invested S.No Initiatives Rs. In Lacs Stack 1. Installation of Ambient Air Quality Monitoring System (3 Nos) 124.82 Monitoring Water 2. Construction of Rain Water Harvesting Pits – 2 Nos 1.48 conservation Green Belt 3 290 trees were planted under tree plantation scheme. 0.32 development Dust control 4 Water tanker used for suppression of dust emission 0.36 initiative Cement Mill outlet, Seperator Bag house, other bag filters Dust control 5 6.34 inspection & bags replacement at CM, WT, PP & RMH areas initiative Spiral chute installation, Vent line modifications, discharge Dust control 6 chute modifications, skirt board modifications at CM, WT, PP 5.97 initiative & RMH areas. Stopped usage of plastic bottles, plastic covers inside the 7 Environment 0.18 plant.

Total (Rs in Lacs) 139.50 8. GHG Inventorisation

Green Belt Development

Green Belt

300 265 Green belt should 250 cover 33.0% of 47% 200 entire area 150 124.55 87.45 100 50 0 Total Area (Acres) Area to be developed (Acres) Green Belt area till date Total Area (Acres) Area to be developed (Acres) Green Belt area till date 9. Green Supply Chain Management

Environmental thinking in Supply Chain Management:

• Clinker is sourced from Rajashree Cement Works, where AFR used as partial fuel in clinkerisation process thereby conserving fossil fuel reserves and reduce greenhouse gas emissions. Rajashree Cement Works is ISO 14001 & ISO 50001 certified plant.

• Dry Ash which is waste product of power plant is used in making blended Cement. 35% dry ash is used in PPC whenever there is availability of dry ash from nearby NTPC which is a ISO 14001 certified plant.

• Dry Ash is also obtained in jumbo bags through rake from distant sources in large quantities (bulk transport) & increased the PPC production to meet the market requirements. Road transportation is eliminated thus reducing GHG emissions.

• Pond Ash which is also a waste product of power plant is used while making blended Cement. Increased the Pond Ash utilisation from 5% to 15% to cater the market requirement.

• Chemical Gypsum which is a waste product of chemical industry is used at 50% for production of all grades of cement.

• Replaced CFC truck with Diesel tanker (2500 L capacity) for procuring the diesel for plant operations. The result is that quantity of Diesel required in a month for plant operations is obtained in 6 trips through diesel tanker compared to 12 trips of CFC truck thereby reducing GHG emissions. 10. Teamwork, Employee Involvement & Monitoring

Monitoring system of Energy Consumption: 1) Daily Performance Review meeting chaired by Unit Head 2) Monthly Performance Review meeting chaired by Cluster Head Sections covered during daily & monthly review meetings related to energy: a) Specific Power consumption of all grades. b) Packing Plant Power Consumption. c) Miscellaneous Power Consumption (Lighting, Material handling, utilities, Wagon Tippler). d) Power Wheeling – Wheeling losses e) Solar Power (renewable energy) generation – Deemed Generation f) Initiatives to be taken/action plan for reduction in power consumption. g) Comparison of specific power & flyash consumption with other grinding units in UltraTech.

• Brainstorming sessions are conducted every quarter involving all the employees to generate ideas/suggestions for reducing the power consumption. Cross functional Task force teams are formed to implement the identified power saving initiatives.

Budget for Energy Conservation: System in UltraTech Cement business: • All the energy conservation proposals from integrated plants, grinding units & bulk terminals will be sent to TPMC (Technology & Performance Monitoring Cell – includes SME’s) & Projects department at Head Office under Capex for review & finalisation. Proposals get sanctioned/approved based on the savings, investment, pay back, availability of cash flow etc.

• TPMC will also have separate budget for implementing the new energy conservation initiatives across UltraTech (POC will be done at single/multiple units) & approved initiative will be implemented/ recommended to applicable units in UltraTech. 10. Teamwork, Employee Involvement & Monitoring

Projects implemented from suggestions given by workers and supervisor - Kaizens

• Bucket Elevator 3 discharge chute modified thereby eliminated the usage of 2.2 KW blower for transferring of material into silo. Estimated Annual Savings: 0.78 Lac units

• Local start stop push button provided for all flyash compressors at flyash unloading area. Operator can stop compressor immediately after completion of unloading. Idle run hours are minimized. Estimated Annual Savings: 0.57 Lac units

• Temperature interlocking of VFD Panels with their inverter cooling fans. Provided temperature interlock with converter and inverter cooling fan, whenever VFD panel become idle after stopping the motor, cooling fans will stop after attaining desired temperature. Estimated Annual Savings: 0.22 Lac units

• Installed 11 no's body cleaning blowers covering all the locations in plant thereby eliminated usage of compressed air for body cleaning & reduced the load on compressors.

• Operation of bore wells through mobile starter thereby eliminated idle running hours, saved water & time.

• Provision of hooter at wagon loading machines for diversion of bags towards desired wagon loading machine without stopping the belt & bag diverting operating panel is also placed near the loaders 11. Other Innovative technologies implemented

ONLINE ROLLER PRESS GEAR BOX MONITORING SYSTEM: Objective: To avoid unplanned stoppages by detecting Gear and bearing failures of Gearbox in earlier stage.

Technology Adoption: Installed the Dalog system for continuous online monitoring of critical Gearbox internal parameters and to carry out offline root cause analysis. Alarms will be triggered & email will be sent to responsible persons if there is any abnormality observed.

Benefits: 1.Optimize Production Process. 2. Stable Mill Operation. 3. Detect Wear in Early Stage. 4. Avoid Subsequent Damage

Installation Month & Year: Sep’2018 Investment Cost: Rs. 79.64 Lacs Replication potential: Yes, can be replicated in all cement plants.

SERVER ANTENNA WITH TORQUE SENSOR FIXED ROLLER

SPEED SENSOR

TORQUE SENSOR 12. Long Term Vision on EE

Long Term Target of Energy Efficiency Line Present Sp. Power Long Term Target (Mar’22) Kwh/MT kwh/MT CM 1 25.09 24.37 CM 2 26.49 25.90

S.No Initiatives to be taken Support required Remarks To increase the PPC production by using more dry Availability of fly ash from Supplier 1 flyash (up to 35%) thereby reducing the Sp. Power & nearby source (NTPC) got engagement clinker factor. reduced. Upgradation of Packers at line 1 to increase Capex sanctioned in FY21 for 2 productivity & decrease power consumption. Financial Rs 110 Lacs. Planned to (12 spouts to 16 spouts) complete in FY22. Replacement of conventional rollers with stud rollers in Technical & Technical & cost benefit 3 Polycom / Roller Press at line 1 & 2. Financial discussions are in progress. Replacement of Pneumatic slide gate with Hydraulic at Replacement planned in next 4 Financial Line 2 Roller Press year. Installation of Low Pressure compressors in place of IR Capex Proposed – Rs 14 Lacs 5 Financial compressor at Line 2 for fly ash unloading. (ROI is > 2.5 Years) Replacement of Overloaded, under loaded & inefficient Capex Proposed – Rs 26 Lacs 6 Financial motors with IE3/IE4 motors. (ROI is > 4 Years) Any other relevant information

Accomplishments

• Hotgi Cement Works Bagged a “Certificate of Merit” from NSCI Maharashtra Chapter for achieving “ZERO” Accident frequency rate for the year 2018.

• In 2019-20, Hotgi Cement Works is the unit with least grinding specific power in OPC grade (RP + Ball Mill Circuit) across the UltraTech which includes integrated & grinding units. (Source – UTCL TPMC Benchmarking report)

• Hotgi Cement Works is the highest pond ash consuming grinding unit (RP + Ball Mill Circuit) across the UltraTech. We have Increased the Pond Ash usage from 5% to 15% and increase the PPC Production thereby reducing the clinker factor.

• UltraTech has received Green Pro certification from Confederation of Indian Industry’s (CII) Indian Green Building Council for its Portland Pozzolana Cement and Composite Cement products. Thank You [email protected] +91 7744051100