We have drawn a roadmap for replacement of conventional energy.

We need to have support of various institutions like premier IITs to increase consumption of blended cement.

- M. Ravinder Reddy, Director - Marketing Bharathi Cement Corporation Pvt Ltd

What has been the impact of the pandemic on the cement industry as a whole, and to what extent the same has impacted the company's performance? 

With reference to pandemic, every business has badly effected and cement industry is not an exception.  Based on Government of India Lock down 1.0, entire cement industry was 100% shut down for 22 days (from last week of Mar'20 to Mid of Apr'20).  In April, few factories in green zone started their operations. The capacity utilisation was around 15% initially which gradually went up to 30% during May'20 and 30% - 40% during Jun'20.  Demand is a concern, which badly effected across the country and more severe in South India because of dependency on migrant labours.

How encouraging is the recovery tale in terms of volume and price realisation?

Volume has not picked up because of three major issues; first one being the labour shortage, second is logistics availability i.e., shortage of truck drivers, and still many places are in absolute lockdown. However, gradual growth is found from May, and from June 5% - 10% recovery is witnessed which is mainly the rural demand.  In metros and major cities, B2B is still not encouraging.

What are the major challenges the industry is facing in today's context?

The major challenges of industry are labour and truck driver availability.  Besides this, due to low capacity utilisation there is a liquidity issue.  To iron out these issues, government should encourage labour to move back to respective job sites by providing housing with hygienic atmosphere.

What new measures have you implemented to contain costs and optimize operations? 

In order to contain costs, industry has minimized/stopped lot of expenditure and some of them are travel, rents and the most important advertisement.

Brief us on the measures taken to support your customers during this crisis? 

During this pandemic, we are conducting WebEx sessions (online meetings) with our team and also business network. We have started digital platform for customers to receive alerts on cement deliveries, invoice particulars and collection details, also educated them to operate bank transactions digitally through NEFT / RTGS transfers.

How do you assess the scope and potential for value added products for the building and concrete industry? 

The big scope in cement industry is moving to more blended cements to reduce the utilisation of lime stone reserves, and this product is more environment-friendly. We need to have support of various institutions like premier IITs to increase consumption of blended cement as per construction requirements.

What is the company's stated goal of reducing their carbon footprint in the next five  years?

Company is working to improve the carbon footprints through its various operational initiatives.

Brief us on the thrust given on renewable energy sources?

We have drawn a roadmap for replacement of conventional energy with renewable energy thereby reducing dependency on coal. Under this plan, 19.5 MW solar plant and Waster heat recovery system plant (WHRS) of 17 MW are installed.

Company has invested approximately 200 crores in last 2 years for implementation of renewable energy related project, and approximately 50 crores in last 3 years to create infrastructure for handling and using various alternate fuel for cement manufacturing.

How green is the companies operation, from mining to production and dispatch of cement?

We have higher usage of alternate fuel to reduce coal consumption. Substitution rate of AF is more than 20%. Approximately 25% of electricity required for cement manufacturing is fulfilled from WHRS and solar power thereby reducing consumption of coal to that extent. More than 30% of fly ash is being used in PPC, thereby reducing consumption of limestone for clinker manufacturing.

We are also exploring option for transportation of coal through barge to reduce the diesel consumption. Trail run is undergoing for the same.

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