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SVSS Shetty, CEO, Anjani Portland Cement Ltd Starting with initial production capacity of 0.3 million tonne per annum in 1999, Anjani Portland has now achieved a quantum shift in its production capacity to 1.2 million tonne per annum. SVSS Shetty, CEO, Anjani Portland Cement Ltd shares his views on the cement industry trend and expounds on the company's operations. In terms of demand-supply and growth rate, how do you view the current scenario in the cement industry? The cement industry is passing through a rough phase as the growth has sunk from 8.5 per cent to 6.5 per cent. There is always surplus cement in some states, while scarce in some others. Like, Andhra Pradesh is always a surplus state. Infrastructure developments at a national level will increase the demand for cement. The government spending on housing schemes will also drive the demand. As part of the company's policy, what are the various quality control measures taken in order to produce good quality cement? We follow the company policy of 'Quality first and Quantity next'. We procure good quality raw materials from the mines. The quality is inspected at every stage. Then the samples are collected for all the inward materials and stored grade-wise for future use and then they are properly blended to get uniform quality. During the process, hourly samples are collected, analysed through X-ray and corrective actions are taken immediately, if deviations are found. Our company standards are much above the BIS norms. Where are your cement manufacturing plants located? What are the latest technologies employed in these plants? Our plant is located at the Chintalapalem village in the Nalgonda district of Andhra Pradesh. We have a suspended pre-heater with precalciner with five-stage of pre-heater technology. The Reverse Air Bag House (RABH) is used for kiln gases and the Electro Static Precipitator (ESP) is used in coolers for collection of dust particles. At all transfer points units, bag filters are placed. VVF Drivers are used to save power and process control. The processes are controlled through DCS, PCS-7 of Siemens. Kindly name for us some of your clients. Some of our prestigious clients for whom we supply cement are the SCL Infratech Ltd (for the 'Pulichintala Dam' project), KL University, Vensai Projects, A Subba Raju & Co, Premier Engineering Company, AP Genco and APSRTC. Does the company produce green cement?With 'going green' being the buzz word, how can green cement contribute to building a sustainable and eco-friendly infrastructure? Yes, we do produce green cement. With an initiative to reduce CO2 emission, we use alternative fuels (combustible process waste of other industries) that reduce green house gas emissions. Fly ash is used to produce PPC. Pumped-out mine water is utilised for cultivation. I believe sustainable and ecofriendly infrastructures can be built provided that the government take steps to promote PPC. With cement being the third largest consumer of coal, are fluctuations in coal prices affecting the industry? Cement manufacturing is a high-intensity, high-energy and cost-intensive industry and it is continuously going through transformations. The coal price fluctuations is affecting the profitability of organisations and costing the end-user too. Also, the cost of power has gone up because of it, impacting the cement industry. Big-ticket FDI is leading to renewed consolidation in the domestic cement industry. Your comments. A lot of foreign players are showing interest in entering the Indian cement industry as there is lot of scope for development and per capita consumption here is lower compared to world average. The foreign players may try for equity participation or outright purchase by paying a very attractive price, say $140 to $170 a tonne, as this will enable them to save time and get market share immediately. How do you see the cement sector evolving in the next 5 years? How will this evolution affect the company's growth? Pan-India, all the existing cement plants are currently operating at 70 per cent capacity utilisation. The demand is likely to go up by 10 per cent on yearly basis. So, we will be setting up a 1 mtpa Greenfield plant in the neighbouring state by 2015. To share your views or similar experiences, write in at [email protected]