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INDIA’S FIRST & ONLY BUSINESS MAGAZINE FOR INDIAN CEMENT INDUSTRY VOLUME 37 • January 2023 • NO 6 150 Bagging and Packaging | Interview From witnessing the entry of the Adani Group directly at No 2 position to dealing with margin compression, hike in commodity and fuel prices and decline in net profits, the Indian cement industry is living the aftermath of a big disruption. The Great Indian Disruption

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Scan this QR to see the informative video ® Registered trademark of Martin Engineering Company in the US and other select locations. © 2022 Martin Engineering Company. Additional information can be obtained at www.martin-eng.com/trademarks and www.martin-eng.com/patents. Tel. 020 66788270 email [email protected] www. martin-eng.in A GLOBALFAMILY WHAT’S GOING ON UP THERE YOU CAN MONITOR DOWN HERE N2 Position Indicator Urethane collar with sensor and transmitter N2 Cellular Gateway Radio signal receiver and modem. Collects >[email protected] www. martin-eng.in A GLOBALFAMILY WHAT’S GOING ON UP THERE YOU CAN MONITOR DOWN HERE N2 Position Indicator Urethane collar with sensor and transmitter N2 Cellular Gateway Radio signal receiver and modem. Collects >[email protected] Tel: 022-24193000 Published by ASAPP Info Global Services Pvt Ltd, A-303, Navbharat Estates, Zakaria Bunder Road, Sewri (West), Mumbai-400 015. Tel: 022-24193000. Fax: 022-2417 5734. Branch Offices • Delhi: Tel: 011-4656 1818. • Bengaluru: Tel: 080-40959611 / 40949259. • Pune: Tel: 020-26162900 / 020-41201833. • Chennai: 08422874017. *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, EQUIPMENT INDIA holds no responsibility for any unlikely errors that might occur. Printed and Published by Tarun Pal on Behalf of ASAPP Info Global Services Pvt Ltd, printed at Indigo Press (India) Pvt Ltd, Plot No 1C/716, Off Dadoji Konddeo Cross Road, Between Sussex and Retiwala Ind. Estate, Byculla (East), Mumbai-400 027. and Published from A-303, Navbharat Estates, Zakaria Bunder Road, Sewri (West), Mumbai-400 015. Editor: Pratap Vijay Padode Subject to Mumbai jurisdiction only. 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. EQUIPMENT INDIA holds no responsibility for any decision taken by readers on the basis of information provided herein. www.EquipmentIndia.com/Magzter To subscribe digital edition of Equipment India log on to: Cover photo courtesy: Allcargo Logistics Follow me on twitter @PratapPadode The maxim ‘after rain, comes shine’ holds true of the Indian cement industry as it witnesses speedy corrections in demand. The fall in demand, lower realisations and considerable increase in operating costs led to a rather dismal year ending. The third quarter of 2022 had to bear the brunt of a sharp decline in demand, pushing the fourth quarter into the aftermath. The New Year brings with it renewed optimism as we see recovery in prices and drop in fuel costs. The price hike has neither been uniform nor steady as demand kept fluctuating. But thanks to the Government of India’s endeavours in infrastructure, there has been a spurt in prices as well as margin improvement, towards the end of the fourth quarter, making January 2023 a month of recovery for the industry. This revival is reverberated in the stock market, too, as shares of UltraTech, Dalmia Bharat and JK Cement climb steadily upwards. As we progress further into the new year, demand from the infrastructure sector is likely to be supported by real estate developers, too. With the Union Budget 2023-24 round the corner, trade pundits are banking on infrastructure to boost cement demand. Analysts foresee 30 per cent more fund allocation towards infrastructure growth in the Union Budget, with a majority of these funds finding their way towards the building of highways. This development will translate into sustainable growth for the cement players, both big and small, and offer them an opportunity to consolidate their expansion plans. Capacity expansion is high on the cards for cement companies with 33 MT likely to be added in FY23. Given the history of political impact, construction speeds up in a preelection year as the government increases its spendings. This will definitely make 2023 a profitable year for the cement industry. This opportunity has to be supported with strategic expansion, stable cash flow, alternative fuels and a strong performance in the stock market. We wish all stakeholders of the Indian cement industry a New Year of sustainable growth and improved margins. www.IndianCementReview.com/Magzter To subscribe digital edition of Indian Cement Review log on to: ®

10 | INDIAN CEMENT REVIEW | January 2023 www.IndianCementReview.com New COVER STORY: Cement Prices and Material Costs The Great Indian Disruption 18 Dealing with margin compression, hike in fuel prices and decline in net profits, the Indian cement industry is living the aftermath of a big disruption. “We are focusing on our key competencies.” 29 Vinit Tiwari, Chief Sales Officer, Nuvoco Vistas Corp Ltd, discusses the factors of costs, competition, raw materials and cement prices. “A volatile market leads to hedging of prices.” 30 Jatin Shah, Chief Technical Officer and Managing Director, TDD, Colliers India, discusses the various aspects of the construction business that are affected by cement prices. “Constantly increasing prices of building materials are a major challenge.” 32 Shraddha Kedia-Agarwal, Director, Transcon Developers, brings in the perspective of developers as they tackle cost issues. “We are focusing on cost-effective solutions.” 34 Abhishek Jain, COO, Satellite Developers Private Limited, looks at the repercussions of the rising costs of cement on construction projects. “Cement price rise has impacted our profitability.” 40 Ketan Patel, Director, Akshar Group, speaks about striking a balance between losses incurred and foreseeable profits. CONTENTS Desk 8 Local news 14 Global news 16 Projects & Tenders 75 Twit-Bits 78 Economy Insights Structural Shift in the Cost Curve 42 Get insights into the economics of demand. Feature: Bagging and Packaging Integrating Sustainable Processes 44 ICR looks at how cement brands can improve their processes to reduce their carbon footprint. “Technology prevents wastage of product.” 48 Nitin Vyas, Managing Director and CEO, Beumer India, talks about how technology is the driving force behind the innovations in packaging. “Automation and technology play a considerable role in our industry.” 50 Nitesh Sharma, Managing Director, Shri Maa Group, gives us a lowdown on the process of making bags for cement and the technology involved. Expert View Pyroprocessing and Kiln Operation 54 Dr S B Hegde, Professor, Jain University, Bangalore, talks about the various factors aiding pyroprocessing. Interaction “Our next target is to further reduce heat consumption.” 60 AK Dembla, President & Managing Director, Humboldt Wedag India Pvt Ltd, sheds light on the positive effect of pyroprocessing and technology. Event Report Moving Towards Net-Zero 62 The 17th International Conference on Cement, Concrete and Building Materials by National Council for Cement and Building Materials (NCB). Communication Feature Kanodia Cement 70 Scan this code with your smartphone* to stay tuned with the latest happenings in the world of cement *QR code application required. Visit us at www.facebook.com/ Indiancementreview Share your views and opinions with us at [email protected] Icr is on Facebook

14 | INDIAN CEMENT REVIEW | January 2023 www.IndianCementReview.com Local News ACC Limited has won the National Award for Safety Excellence (FY2021- 22) at the 10th Global Safety Summit (GSS) in the Large Enterprise-Cement Manufacturing sector. The company has been recognised for its achievements, like clocking 141 million fatality-free manhours through implementation of leading measures like Boots on the Ground, Critical Control Management, and War on Waste processes. The award, instituted by the Fire and Safety Forum and United Nations Global Compact Network India (SDGS Outreach Partner), was presented by Ratnesh, Executive Director, UN Global Compact Network India, on 23 December 2022 in New Delhi. Ambuja Cements has won the National Award for Energy Excellence in Indian Cement Industry, under the Grinding Category for the measures adopted in improving energy efficiency at the Roorkee plant. The award instituted by the National Council for Cement and Building Materials was given during the 17th NCB National Conference on 9th December 2022 in New Delhi from Shri Som Prakash, Hon›ble Minister of State, Ministry of Commerce and Industry, Government of India. The Company also presented a paper titled ‘Correlation of Chemistry and Process Parameters on Formation of Alite in Portland Clinker’ at the conference, which was adjudged as the best paper in the category ‘Productivity Enhancement and Process Optimisation’. In other news, Ambuja Cement Foundation, the CSR arm of Ambuja Cements, the cement and building material company of Adani Cement, part of Adani Group has won FICCI CSR Award for the company in the women empowerment category. The award has been presented at the CSR Summit in the attendance of all highly esteemed representatives from the industry. Representatives of ACF received this prominent award from the Union Tribal Affairs Minister, Arjun Munda. Through the women empowerment program, a total of 2970 SHGs (Self-help groups) and eight women federations were facilitated, 31,000 female youth were trained. Ambuja Cement Foundation empowered these women to be changemakers, breadwinners, and community leaders. They were encouraged to earn and gain capital reserves by participating in Self Help Groups, which has led them to contribute to credit savings ultimately aiding them to start their businesses independently as well in bigger groups. From the time the programme launched, approximately 9000 women have engaged in revenue generation activities. JK Lakshmi Cement becomes the first Indian company to adopt Liquified Natural Gas (LNG) fueled trucks. The first fleet of LNG trucks was flagged off at the company’s Sirohi plant in Rajasthan as they left for their clinker grinding unit at Surat. These LNG trucks have been supplied by Pune-based Blue Energy Motors. As one of the leading cement companies in India to deploy LNG trucks for long distance transportation of raw materials, JK Lakshmi Cement sends across a strong message of sustainability for the industry. The flag-off ceremony was attended by the senior management representatives of both the companies and other important stakeholders. “Deploying LNG trucks of Blue Energy Motors is our first step towards sustainable transportation as LNG is an excellent green alternative for fossil fuel. This initiative will act as a game-changer for the country’s cement transportation industry and help facilitate the eventual transition towards a more circular economy,” said Arun Shukla, President and Director, JK Lakshmi Cement. ACC wins National Safety Award at 10th Global Safety Summit Ambuja Cements wins the National Award for Energy Excellence JK Lakshmi Cement flags off LNG trucks

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Global News 16 | INDIAN CEMENT REVIEW | January 2023 www.IndianCementReview.com Myanmar’s latest solar energy plant, the 20-megawatt (MW) build-ownoperate (BOO) Taungdaw Gwin project, has been officially opened, adding a new chapter to the country’s sustainability and electrification efforts. The project was developed by Green Power Energy Company Limited (GPE), a subsidiary of Gold Energy Company Limited (GE), a leading renewable energy developer in Myanmar. Taungdaw Gwin is the second megascale solar project to be completed by the GE group. Clean Power Energy Limited, another GE subsidiary, completed the 30 MW Thapyay Wa project in Mandalay district in December 2021. With the official opening of the Taungdaw Gwin project, GE’s solar energy capacity stands at 50 MW. GE also operates the 120 MW Thaukyegat (2) Hydropower Project (TYG), commissioned in 2013. Green Power Energy’s solar plant commissioned in Myanmar IN BRIEF Lafarge Canada to donate to wild salmon project Lafarge Canada has announced a five-year in-kind donation with the Nicomekl Enhancement Society (NES) in British Columbia. The agreement will see the building materials producer donate around US$15,000/yr in aggregates, concrete and labour to enhance the sustainability of the wild Pacific salmon population and ecosystem within the coastal area of the Nicomekl River. Thyssenkrupp Polysius wins orders in Vietnam ThyssenKrupp Polysius’ Asia Pacific division has secured an order for two Polflame-type main burners for an unnamed cement plant. The equipment supplier has highlighted the ability of its burner product to cope with low-grade coal and support high alternative fuel substitution rates as key selling factors. The order follows the purchase of an Impact Crusher by the same customer previously. HarbisonWalker International acquired Holcim divests Holcim Russia by Platinum Equity Holcim has agreed to sell its Russian business to its local management. When the transaction is completed, the business will continue to operate under different branding. Holcim says that it remains committed to supporting Holcim Russia’s employees and ensuring an orderly transfer for its customers. DGAP Corporate News has reported that Holcim deconsolidated the subsidiary in March 2022, following Russia’s invasion of Ukraine. The company’s statement said, “Holcim’s Board of Directors expresses its heartfelt concern about the tragic human suffering in the region, and is fully committed to supporting affected people, families and communities. The Board of Directors thanks all Holcim colleagues who are mobilising around the world alongside local NGOs to provide shelter, essential goods and medical supplies, as well as volunteering their time.” The Board of Directors of HarbisonWalker International (HWI) has announced that it has signed an agreement to be acquired by Platinum Equity, a global investment firm operating companies in a broad range of business markets. The acquisition plan ensures HWI’s continued growth and leadership in refractory products and services. Financial terms were not disclosed. The transaction is expected to be completed in the first half of 2023, subject to customary closing conditions and regulatory approvals. In July, Platinum Equity announced plans to acquire Imerys SA’s High Temperature Solutions business (HTS), a provider of refractory solutions serving more than 6,000 customers primarily in Europe and Asia, in a transaction that is expected to close by the end of the year. Once both acquisitions have been completed, HWI and HTS will combine into a global business with increased reach and scale.

From witnessing the entry of the Adani Group directly at No 2 position to dealing with margin compression, hike in commodity and fuel prices and decline in net profits, the Indian cement industry is living the aftermath of a big disruption. The Great Indian Disruption Cover story Cement Prices and Material Costs 18 | INDIAN CEMENT REVIEW | January 2023 www.IndianCementReview.com

www.IndianCementReview.com January 2023 | INDIAN CEMENT REVIEW | 19 Cement Prices and Material Costs Cover story I t all started in the year 2020. As the Covid-19 pandemic hit the world, the cement industry felt its devastating effects, too. That was the beginning of the disruption. Two years later, the Indian cement industry experienced a paradigm shift with the entry of the Adani Group and the exit of Holcim. The current scenario involves the economic changes that are likely to have a long-term impact on the industry. Let us look at the great Indian disruption of the cement industry. The Recap According to reports, the Adani Group had been planning to enter the cement industry for some time and it had also formed a subsidiary called Adani Cement Industries Ltd in June 2021. The company was apparently planning to build an integrated plant in Kutch, Gujarat, and grinding units in Dahej, Gujarat, and Raigad, Maharashtra. It also won limestone blocks in Andhra Pradesh, Gujarat, and Rajasthan by bidding process. The sudden entry by Adani through aggressive bidding changed the industry gesture. As soon as Holcim announced its exit from the Indian market, a brutal bidding war took place to acquire its assets, and at the end of it, the assets were acquired by the Adani Group. This is India’s largest M&A transaction in the infrastructure and materials sector. Billionaire Gautam Adani’s entry into the cement industry with the acquisition of Holcim-listed cement assets in India, namely ACC and Ambuja Cement, for an amount of just less than $10 billion may lead to unification in the industry as large players may try to gain smaller marginal players. In a speech at an event to mark the completion of the acquisition, the Adani Group Founder and Chairman said the ports-to-energy has in a single stroke become the second largest manufacturer in the country only behind UltraTech cement. A few days after the acquisition of ACC and Ambuja Cement, Adani announced his plans to double the existing cement manufacturing capacity of 70 million tonnes per year within the next five years, putting it close to market leader UltraTech Cement, and becoming the most profitable manufacturer in India till 2030, which will definitely benefit the cement industry. With the cement sector historically growing at 1.1 per cent to 2 per cent higher than the GDP Adani expects the cement sector to grow to 8 per cent to 10 per cent. Gautam Adani’s acquisition of cement giants Ambuja and ACC from Holcim has set off a rally in both stocks adding a sufficient amount to investors’ wealth. As per analysts, ACC and Ambuja Cement will benefit from Adani’s acquisition by acquiring 63.1 per cent of Ambuja Cement along with related assets. With the government’s push to build infrastructure in India cement demand is likely to stay strong with ACC and Ambuja to benefit in the long run, the analysts added. According to Adani, Ambuja Cement and ACC operations are energy intensive, and when combined with Adani’s renewable power generation capabilities these operations can gain a great benefit that is a must for the Indian industry. The entry of Adani, which renovated the boards of ACC and Ambuja Cement to reflect the largest takeover in India’s infrastructure sector, would infuse Rs 20,000 crore in Ambuja Cement through preferential allotment of shares, which will further strengthen Ambuja’s balance sheet and fulfill the capital requirements for economic development, further additions and investments in technology. This investment reveals Adani’s commitment to the cement sector and an attempt to completely transform the cement sector. With Ambuja and ACC in its fold, the Adani group will now have nine listed companies in the stock market. Adani’s foray into the cement industry is the tip of the iceberg. The larger picture involves the exponentially growing infrastructure sector in the country. Here’s how Adani’s presence has made a difference to other players and market dynamics, and is likely to continue: 1. Solidifying and unifying the company’s operations in real estate and infrastructure 2. Backward integration of its assets in other heavy industries such as coal and power 3. With the combined capacities of Ambuja and ACC, Adani commands the second highest cement manufacturing capacity of 70 million tonnes 4. Mandatory open offers in both the companies led to their respective share prices spiking up 5. Clearly Adani will aim for the No. 1 position, and that will have the company scouting for mergers and acquisitions. 6. Adding to its existing capacity is another important way in which the company will try to increase cement production. The Real Twist The real estate market faced the repercussions of the pandemic at a maximum. Today, as the necessary corrections have been done, we are looking at changing trends, which are having a direct impact on the demand for cement. Shraddha Kedia-Agarwal, Director, Transcon

20 | INDIAN CEMENT REVIEW | January 2023 www.IndianCementReview.com Cover story Cement Prices and Material Costs Developers, said, “In the post-Covid world, there is a shift in demand for sea-facing homes with large open spaces like balconies, terraces, courtyards, gardens, and parks in the vicinity. Work-from-home and the hybrid work culture have changed the pattern for most home buyers in the post-Covid era. Owning a home is no more a matter of investment preference, but a necessity, given the boost that a luxury residence has come to lodge in the wider perspective of the work-life choices. The latest trends of customer preferences have shifted from premium real estate to a more sophisticated approach, buyers who want to get a lifestyle that can flawlessly include the workfrom-home notion, while not giving up on the lavishness and comforts of luxury living. These trends are expected to continue in 2023 as well.” She also pointed out that with RERA ensuring transparency and laws allowing 100 per cent FDI in construction, Indian real estate is witnessing sharp investment infusions from NRIs. The new class of ultra-rich people is on a buying spree of luxury homes in global cities like Mumbai, Bangalore, etc. The Indian markets are proving their grit and potential, it is now time for investors to decide if they want to benefit from India’s future potential. “With the rise in cement cost and other building material costs, the same will eventually be carried forward to the buyer. This is a basic entrepreneurial rule. New launches will be expensive. In their initial stages, they may be at a 10 to 20 per cent lower cost, but I am foreseeing a rise in real estate price of about 18 to 20 per cent in the near future,” says Ketan Patel, Director, Akshar Group. Pointing out the change in consumer behaviour, he said that when the price of projects increase, there is a setback of 10 to 15 per cent in the overall sales funnel. “What we have observed over the years is that the number of enquiries go down when there is an increase in price. However, the customer who is looking to buy a house or property or upgrade does come through and convert as a customer.” The Big Picture The objective of the Adani Group behind this takeover is to move beyond its central business of power plants, ports, and coal mine operations and expand into new fields such as airports, >[email protected] WHY CW ANNUAL EDITION? CONSTRUCTION WORLD ANNUAL ISSUE WAS LAUNCHED AT INDIA CONSTRUCTION FESTIVAL ON 14th OCTOBER 2022 Instant Subscription `600 Annual Issue 2022 /CWmagazine /ConstructionWorldmagazine /Construction-world-magazine /ConstructionWorldMagazine Constructionworldmagazine &4( *OEVTUSZ #JHXJHT 5IF 3JTL 3FUVSO JO $POTUSVDUJPO #VTJOFTT ANNIVERSARY CONSTRUCTION WORLD BEST SELLER OF THE YEAR

54 | INDIAN CEMENT REVIEW | January 2023 www.IndianCementReview.com Expert View Pyroprocessing and Kiln Operation Dr SB Hegde, Professor, Jain University, Bangalore, talks about pyroprocessing and the role of preheater, rotary kiln and clinker cooler in the cement manufacturing process. In the concluding part of the two-part series, we will learn more about the various factors aiding pyroprocessing. False Air in Pyro Processing India is the second largest cement producer in the world in terms of cement capacity. Therefore, it is deciphered that the amount of energy being consumed in cement production process and its wastage attributed to non-availability of proper technology to plug the leakages. There are several research papers/case studies discussing the effect of different factors on energy consumption in cement manufacturing and are well documented. There are some studies that discuss this issue with the help of mathematical models. However, all studies reveal the fact that the ‘false air’ may be one of the factors for higher energy