Dalmia Cement increases its share of green fuel to 12%
Cement

Dalmia Cement increases its share of green fuel to 12%

Dalmia Cement Limited has turned to using biomass and industrial waste to protect itself from the fuel price hike.

The company is planning to raise Rs 10,000 crore for capital expenditure between FY22 and FY24 after achieving a negligible debt stage.

Managing Director and Chief Executive of Dalmia Cement, Mahendra Singhi, said that the company had increased its share of green fuel, which includes biomass and industrial wastes in total fuel consumption by 12%, and plans to increase it to 20% within one year. The plan is to gradually eliminate the use of fossil fuels.

The green fuel comes from industrial wastes such as chemical, pharma and automobile units through pyro-processing to reduce dependence on coal. Singhi said that the overall cost of green fuel is about 60% lower than fossil fuels.

Despite the coal price hike, the company managed the September quarter better than the previous quarter. Shifting to green fuel will keep high input costs under control. The earnings before interest, taxes, depreciation and amortisation (EBITDA) of Dalmia Cement dropped to 11% to Rs 621 crore during the September quarter, compared to the same period last year.

He said that the existing clinker facility and adoption of new technology in the plant resulted in a drop in power consumption. The cement power consumption was 67 kWh per tonne of cement, which has been reduced to 62 kWh.

He said that the company expects increased rural housing demand post-Covid-19. The upcoming elections may result in infrastructure demand beyond the Covid-19 levels. The company plans to increase its CAPEX to 48.5 million tonnes from 36 million tonnes.

Image Source

Also read: Dalmia Cement plans 2 mt cement plant in Bokaro at Rs 577 cr

Dalmia Cement Limited has turned to using biomass and industrial waste to protect itself from the fuel price hike. The company is planning to raise Rs 10,000 crore for capital expenditure between FY22 and FY24 after achieving a negligible debt stage. Managing Director and Chief Executive of Dalmia Cement, Mahendra Singhi, said that the company had increased its share of green fuel, which includes biomass and industrial wastes in total fuel consumption by 12%, and plans to increase it to 20% within one year. The plan is to gradually eliminate the use of fossil fuels. The green fuel comes from industrial wastes such as chemical, pharma and automobile units through pyro-processing to reduce dependence on coal. Singhi said that the overall cost of green fuel is about 60% lower than fossil fuels. Despite the coal price hike, the company managed the September quarter better than the previous quarter. Shifting to green fuel will keep high input costs under control. The earnings before interest, taxes, depreciation and amortisation (EBITDA) of Dalmia Cement dropped to 11% to Rs 621 crore during the September quarter, compared to the same period last year. He said that the existing clinker facility and adoption of new technology in the plant resulted in a drop in power consumption. The cement power consumption was 67 kWh per tonne of cement, which has been reduced to 62 kWh. He said that the company expects increased rural housing demand post-Covid-19. The upcoming elections may result in infrastructure demand beyond the Covid-19 levels. The company plans to increase its CAPEX to 48.5 million tonnes from 36 million tonnes. Image Source Also read: Dalmia Cement plans 2 mt cement plant in Bokaro at Rs 577 cr

Next Story
Equipment

Handling concrete better

Efficiently handling the transportation and placement of concrete is essential to help maintain the quality of construction, meet project timelines by minimising downtimes, and reduce costs – by 5 to 15 per cent, according to Sandeep Jain, Director, Arkade Developers. CW explores what the efficient handling of concrete entails.Select wellFirst, a word on choosing the right equipment, such as a mixer with a capacity aligned to the volume required onsite, from Vaibhav Kulkarni, Concrete Expert. “An overly large mixer will increase the idle time (and cost), while one that ..

Next Story
Real Estate

Elevated floors!

Raised access flooring, also called false flooring, is a less common interiors feature than false ceilings, but it has as many uses – if not more.A raised floor is a modular panel installed above the structural floor. The space beneath the raised flooring is typically used to accommodate utilities such as electrical cables, plumbing and HVAC systems. And so, raised flooring is usually associated with buildings with heavy cabling and precise air distribution needs, such as data centres.That said, CW interacted with designers and architects and discovered that false flooring can come in handy ..

Next Story
Infrastructure Urban

The Variation Challenge

A variation or change in scope clause is defined in construction contracts to take care of situations arising from change in the defined scope of work. Such changes may arise due to factors such as additions or deletions in the scope of work, modifications in the type, grade or specifications of materials, alterations in specifications or drawings, and acts or omissions of other contractors. Further, ineffective planning, inadequate investigations or surveys and requests from the employer or those within the project’s area of influence can contribute to changes in the scope of work. Ext..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?