Competent management of our manufacturing assets is crucial for operational efficiency, profitability, and growth. Simultaneously, we remain dedicated to responsible manufacturing by reducing resource and energy consumption, embracing cutting-edge technology and safe practices, and consistently adhering to environmental regulations.
CAPEX spend on development and efficiency
Key Highlights
Freight and Forwarding Expense (FFE) maintained at the same level of last year (K1257/t in Jan’22 to Mar’23 vs. K1262/t in 2021) despite headwinds of HSD price increase ~4% and railway busy season surcharge (+15%) from October 2022
PAN India warehouse network optimisation increased direct dispatch to customer by 2%
Initiated UDAAAN Project for logistics cost rationalisation to unlock group synergies and leverage technology
Commissioned brownfield grinding unit at Tikaria in February 2022 and scaled up dispatch to highest ever volume of 346 kMT in March 2023
Development and Efficiency
At ACC, we are committed to continuously investing in strengthening our market position and evolving into a more efficient, cost-competitive, and environmentally sustainable organisation. Some of our key initiatives this year include:
Commissioned Tikaria Plant-2 of 1.6 MTPA capacity
Ametha Integrated Unit is in advanced stages and will be commissioned in FY24
Kannur Wadi Limestone Block in Karnataka
Kurai Limestone Block in Maharashtra
Gothra West Limestone Block in Rajasthan
Behera-Banjipali Limestone Block In Odisha
Mudhvay Sub Block-C Limestone Block
Installation of WHRS of total 22.4 MW capacity at Jamul and Kymore of over H300 crore
Further installation of WHRS is planned in Ametha, Wadi & Chanda with total capacity of 55.8 MW.
100 MW solar energy for various locations of ACC
Manufacturing Performance
We achieved several notable accomplishments this year, which have resulted in better operational efficiencies like a decrease in clinker factor by 1.5% and a reduction in electrical energy consumption by 2.16 kw/t cement (total).
Efficiency Improvement
We strive to be one of the most cost-competitive cement manufacturers in the country and to achieve this goal, we consistently invest in various areas of our operations. These include several initiatives, such as reducing our clinker factor, enhancing energy efficiency, optimising our raw material and fuel blends, improving our power sources, and expanding the utilisation of alternative fuels and raw materials in our manufacturing processes. We have incorporated approximately 14.62 million tonnes of waste-derived resources, including 0.82 million tonnes from Geoclean, into our manufacturing operations. This aligns with our commitment to reduce our reliance on natural resources and promote sustainability.
Plant Efficiency
Cost Rationalisation
Product Quality Management
Our quality parameters are stringent, and we closely monitor them to continually improve our overall Product Quality Index (PQI). Our product quality monitoring strategy involves daily testing of defined quality parameters, measurement of coefficient of variations at three-day and 28-day intervals, clinker quality assessments, customer satisfaction surveys, bi-monthly product benchmarking, bi-monthly application-oriented product testing, monthly testing of random market samples, and monthly assessments of bag quality index.
We comply with all statutory requirements as mandated by the Bureau of Indian Standards (BIS) as well as all weights and measures norms. As part of our statutory compliance, our bags display our contact details to enable customers to communicate any complaints, observations, or queries.
Key Initiatives To Improve Overall Process/Product Quality
Supply Chain and Logistics
We leveraged digitalisation initiatives across the supply chain to optimise costs. We also used best-in-class tools for network optimisation, sales & operations planning, and e-platforms for freight procurement. All our logistics excellence projects are managed through automated dashboards.
Freight Reduction
We are taking various initiatives to improve efficiency and negotiate contracted rates. We use the latest e-procurement platforms to get real-time freight rates, and closely monitor vendor performance to improve their value proposition
Safety and Sustainability
We have re-opened our Driver Management Centres (DMCs) to engage with the driver community and promote safety-oriented behaviour. Transport Analytics Centre (TAC) has helped us develop more meaningful safety dashboards for use by the DMC. Additionally, we are developing a Carbon Reduction tracker and working on bio-fuel trials, e-vehicles, lead reduction, and mode mix to reduce our carbon footprint. In-plant automation through RFID has helped to augment efficient and safe fleet movement inside the plant as well.
Captive Power Generation
We have taken strategic initiatives in our value chain to ensure efficient energy sourcing and have developed in-house capacity to meet our energy requirements. We are utilising alternative fuels/biomass, waste heat recovery (WHR), and renewable energy sources such as wind and solar. Additionally, we have implemented an energy management system (ISO 50001:2011) to improve our energy efficiency. A significant portion of our power consumption is generated through our captive power plants.
We have successfully increased our in-house power generation by 3%, which includes a 1% reduction from CPP and a 139% increase in WHRS. We have also approved further investment in WHRS, and the progress is well on track.
Mining
We have ensured that all our integrated cement plants are associated with captive limestone mines to secure our major raw material.
Our Company policy strictly prohibits operations in the immediate vicinity of specific biodiversity zones, world heritage sites or International Union for Conservation of Nature (IUCN) category I-IV protected areas. We have a Biodiversity Action Plan (BAP) for sensitive sites. Additionally, we undertake a biodiversity indicator reporting system (BIRS) assessment every three years, as per IUCN guidelines, and prepare an improvement/ action plan.
We always aim to resolve any issues with the local community through dialogue and negotiations. We are proud to report that there were no strikes or lockouts at our mines during the reporting period.
Ensuring Optimum Utilisation of Mineral Resources at Captive Mines
Key Initiatives Undertaken in the Mines