'We eye a Rs 100-cr bottom line benefit from alternative fuel'

Q&A: Sumit Banerjee

ACC, the country’s leading cement-maker, is developing its alternative fuels & raw materials (AFR) and waste management programme as an organised business. With Swiss major Holcim’s technological support, the company is planning to use non-conventional waste materials for the venture. Sumit Banerjee, managing director of the company in a tete-a-tete with Chandan Kishore Kant, says the company is making strategic investments in AFR without looking at short-term returns. Excerpts:

What is significant about ACC’s alternative fuel & raw materials (AFR) initiative and waste management programme?

Unlike the developed countries, India has not progressed much in developing infrastructure to deal with hazardous waste material. The whole system is unprofessional in India. We have set up AFR for non-conventional waste materials. This helps us reduce fuel costs nominally. At the same time, we are able to take care of some pollutants with lesser emission of carbon dioxide. This has been an innovation in the cement industry.

Does the industry have potential in AFR?

The potential for ACC as a company, and for the entire cement industry, is huge in AFR. Even if the industry goes to the limit of 5-10 per cent of what is charged into the kilns as raw material for 200 million tonnes (MT) capacity, it will be 10-20 MT of cement production.

What portion of your conventional fuel is being saved with such measures?

As of now, it is below 5 per cent. But again, it has to be calculated in terms of calorific value, not tonnes. At present, we are using wastes from manufacturers of paints, automobiles, textile machinery, steel plants, FMCGs, refineries and petrochemicals.

Recently, we started using plastics in our Kymore plant in Madhya Pradesh and we will replicate this in our Gagal unit in Himachal Pradesh. Of our 12 plants, we have identified 8 plants for AFR activities. We are making strategic investments without looking at short-term returns, as it requires long-term approach.

What will be the bottom line impact from AFR?

Our target is to derive a bottom line benefit of Rs 100 crore in the next three years. But we are a long way from there.

Does it mean your coal consumption will decline?

Replacing coal is surely a strategic need, but we won’t be able to make sizeable dent on our coal consumption. Even at the maximum potential, it may only be in the order of 5 to 10 per cent of our coal requirement.

What is the progress on jatropha plantation?

Our target was to reach 5 million saplings by 2010 and we have reached 2 million so far. Our plan is not to make diesel out of it, rather we will use them (trimmings) directly in the kilns and derive fuel value from it. But now we are finding that plantation of subabul is a better option. It is less water intensive, grows faster than jatropha and gives results in lesser number of years.