Page 18 - Cost

Cost Competitiveness

On the material front, the Company opted for million M3 per annum through air cooled
a conscious decision to reuse waste in their condenser in the thermal power plant. Te pits
processes across the cement plants. Te use of created afer mining of limestone have been
recycled material (waste reused) as part of total converted as storage of rain water for use of
material consumption is stated to be the order Company’s Units and the nearby community.
of 14.61% of 2010-11 and 13.76% for 2011-12 Tese water bodies help to maintain the
leading to substantial conservation and savings biodiversity of the area. Over 12% of its total
by all means. Te Company is reported to have water demand is met by recycling of waste
used alternative raw materials from industrial water. At all integrated Units the treated water
waste of 83,86,382 MT for cement production from the sewage treatment plants is used for
in the year 2011-12 which has in turn resulted horticulture gardening, cyclone cooling and
in avoiding usage of natural raw materials. dust suppression is common practice. At most
of the Units, there is zero water discharge.
In relation to energy conservation, the Company
has identifed the use of the renewable energy It is reported that the Company’s approach
sources as an area of focus. Te Company has to technology-selection, inherently evaluates
an installed capacity of 400 KW photo voltaic water consumption over the lifetime of the
cell based on solar power plants in its various equipment as one of the major criteria for
plants as of 2012. Te Company is stated to be adaptation of any technology.
in the process of adding further capacity in its
various plant locations. In the words of Kumar Mangalam Birla,
Chairman, the Group’s Sustainability Vision is:-
Te Company recognises the sea route as “By 2017, the Aditya Birla Group endeavours
the most cost efective and environmentally to become the leading Indian conglomerate for
friendly transport for delivering cement and sustainable business practices across its global
clinker in the coastal and export markets. operations, balancing its economic growth
Company’s Units at Kovaya and Jafrabad in with environmental and societal interests. Tis
Gujarat are among the largest users of shipping vision provides a common guiding principle
in the cement industry. Tese Units also receive as well as an operating framework for all our
incoming raw material and fuel sources such businesses”.
as gypsum, iron ore, coal and petcoke at its
captive berth. On the proft dimension, i.e. economic value
added, the Company is stated to have grown
Water is a scarce commodity in the Indian 20 times in revenue in the past 17 years; and
context. Te Company is focusing on reducing during the last one decade, the CAGR in
water consumption in all its cement units. Te EBITDA has been 19%. And there lies the Cost
installation of bag house in the raw mill and Competitive Edge of the Ultratech!
air cooled condensers in the thermal power
plant are major steps taken. Te Company Author can be reached at : sreeharichava@
envisages water conservation of about 9 yahoo.co.in

The Institute of Cost Accountants of India www.icmai.in 18