Kiran Global Chems Ltd, a part of M S Jain Group, has launched an environment-friendly cement, branded Geocement, using patented technology. The company claims that using the product will help save water, reduce emission of carbon dioxide and cut down on construction time as well.
The company is planning to invest around Rs 200 crore to set up manufacturing facilties for this green cement and will have 12 geobinder and geopowder plants, two precast concrete units and four grinding plants at Vizag in Andhra Pradesh, Hospet in Karnataka and Tuticorin and Chennai in Tamil Nadu. The plants will produce four million tonnes of green concrete mix a year during the next three years.
The investment would be made partly from internal accruals and mostly from institutional borrowings. The green cement business would bring in around Rs 2,000 crore for the company by 2018-19. Besides, various cement manufacturers are approaching Kiran Global for technological tie-ups in order to add the green cement to their portfolios, company officials said.
Geopowder, a cement powder that could be used in construction, has to be mixed with Geobinder, a solution that works with the powder to complete the characteristics of the geocement. The company also offers Geocrete, a brand of concrete that includes the other components of the mortar, which could be directly used in concrete and construction. The Geocement binder has been developed by the company through research and has been patented.
The company claims that Geocement does not require water curing, attains maximum strength within seven hours and has a high life cycle. It uses fly ash, slag and silica, which come out as industrial waste from other industries. Geocement also reduces carbon dioxide emission, which is a major issue with the conventional cement industry.
"We have started distributing this to the bulk customers, such as builders and now we are launching the brand for retail. We are planning to sell it through e-commerce," said M S Jain, chairman, Kiran Global Chems Ltd.
However, the company has to work out the model for small quantity sales through e-commerce, as it has to look at the logistics solutions to reach the customer.
He added that the company has entered into an agreement with Australia based firm Wagner to offer its products to the Australian company for its projects in India. Wagner has been using eco-friendly cement for construction, and has also developed an Airport using similar technology. Kiran would offer the binder, which is a unique product in the segment.
India is the second largest manufacturer of cement and the industry emits 300 million tonnes of carbon dioxide, he said. Geocement can reduce emissions by up to 80 per cent, he added.
However, the company would be focusing on selling the products to those engaged in environment-friendly construction. With about 10-12 per cent of the buldings rated as Green, the market potential is above 3,000,000 tonnes per anum, said company officials.
Currently, 120 TPD of geobinder and 200 TPD of Geopowder are manufactured in Chennai and an 800 TPD precast concrete plant is being installed in the city, he said. The products will be marketed in the southern states initially in 2016 with plans of exporting the binder to other countries. The company has plans to introduce Geocrete in 25 kg packing for instant concrete and road repairs.
The product is priced at Rs 140 for a 35-kg pack of Geocement and Rs 225 for a 15-kg can of binder, which is costlier than ordinary cement. However, the prices would come down if bought in bulk, due to reduction in packing costs. While the brick-to-brick cost would be 10-15 per cent higher compared to the ordinary cement, the finished building cost would be lower by 10 per cent and turnaround time would be 50 per cent faster, the officials said.
The Rs 600 crore company, which is a major manufacturer of Sodium Silicate, which is an ingredient in the green cement, with 33 plants at present, and with presence in five countries -- India, South Africa, Egypt, UAE and Qatar. It is also setting up facilities in Saudi Arabia and Malaysia.