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A Brief Presentation OnProduction & Operation

OfBarak Valley Cement, Assam

Presented ByDebasish Das(13-50-125)Saurish Dutta(13-50-127)Nilanjan Dutta(13-50-102)Sanjeev Mahato(13-50-126)

INTRODUCTION

Barak Valley Cements Limited (BVCL) is engaged in the business ofmanufacturing of cement of different grades and is marketing its productunder the brand name "Valley Strong Cement".

Incorporated as a Public Limited Company in the year 1999, under the`Companies Act,1956.

Listed on the National Stock Exchange and Bombay Stock Exchange inNovember, 2007.

Started its commercial production at the capacity of the plant at 300TPD and currently has a capacity of 1000 TPD of cement.

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The company is located in Assam and all the operations of the company areconcentrated in the North Eastern region.

The manufacturing unit of the company is at Jhoom Basti, Devendranagar,Badarpurghat, District Karimganj, Assam

The company product portfolio includes both Ordinary Portland Cement (OPC)and Portland Pozzolana Cement (PPC).

The Company is ISO 9001: 2008 certified company and the products confirm toBIS (Bureau of Indian Standards) specifications.

BVCL has a diversified and strong customer base consisting of individuals,contractors, builders, institutions and government agencies.

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LOCATION OF THE FACILITY

The manufacturing unit is located at Badarpur Ghat in the Barak Valleyregion, Assam.

This entire area is surrounded by the other states of North-East such asMizoram, Tripura, and Southern part of Meghalaya, which are thecompany’s target markets.

Being located in Assam, the company is entitled to get various benefits likeExcise duty exemption, Working capital interest subsidy and Insurancesubsidy.

Company owned bio-mass based power plant, Badarpur Energy Pvt.Ltd(BEPL), which provides uninterrupted power supply to the plant, islocated adjacent to it.

Cheap and easy availability of labor.

Abundant sources of water in the vicinity to meet the water requirementsof the plant.

Well connected by rail and road network.

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HUMAN RESOURCE

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The total man power strength of the Company as on 31st March, 2013 was245. In addition, it currently has about 140 contractual employees andlabours. The employees are encouraged to offer constructive suggestions forimprovement in their respective areas which are thoroughly discussed indepartmental meetings. The industry and carries out the necessaryimprovements to attract and retain the best talent. The Company maintainsabsolute harmony with its work force. Since inception there has not beeneven a single instance of strike or lock-out at any of the Company’s workplace.

Salaries, Wages and Labour Cost: In year 2012-13, the companyhas incurred Rs. 851.64 lakhs on salaries, wages and labour cost as againstRs. 793.17 lakhs in 2011-12. The labours are paid an average monthly salaryof Rs.6000.

THE HIERARCHY OF BVCL

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Types of Cements Produced by BVCL Portland Pozzolana Cement:- It is a highly water resistant & prevents the formation of calcium hydroxide at

the time of cement setting & hydration.It can also withstand harsh gases,thermal cracks,wet cracking etc.PPcis used in heavy construction like marine structures,hydraulic structures,masonry mortars,mass concretingworks & plastering.It has a compressive strength of more than 33N/mm2. The compressive strength ofcement is its capacity to withstand loads .

Ordinary Portland Cement Grade 43:- It is used for the construction ofbuildings,roads,bridges,flyovers,irrigation projects & other general civil construction projects.Cement of suchquality is also suitable for all types of application- RCC,plastering & masonry. It has a compressive strength ofmore than 43N/mm2.

Ordinary Portland Cement Grade 53:- This type of cement is known for its high quality & durability.It is

usefull for the construction of high-rise buildings,bridges,flyovers,chimneys & pre-stressed structures where

high-grade concrete is required to withstand heavy pressure. It has a compressive strength of more than

53N/mm2.

Ordinary Portland Cement Grade 53-S:- It has a compressive strength of more than 53N/mm2.This type of

cement is also known for its high quality & durability like that of Ordinary Portland Cement Grade 53 &

therefore has similar uses.A major difference that sets it apart from other types is that it is exclusively used by

railway sleeper manufacturers.

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PRODUCTION, PLANNING AND CONTROL(PPC):

Production is a process whereby raw material is converted into semi finished products and thereby adds to the value of utility of products.

Barak Valley Cement Limited(BVCL) mainly have a continuous production system

The product produced by such a process are highly standardized with almost no variety.

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Production Capacity:The company has a production capacity of approximately 1000 tonnes of

cement per day on an average to fill the requirements of its customers and there by producing 30000 tonnes of cement per month.

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Reasons for failure of production system are: Breakdown of machinery

Electricity Failure Storage full

Material management:

Material management is a function which aims for integrated approach towards the managementof materials

in an industrial undertaking.

Raw materials :. The company mainly used two types of raw materials viz:

Primary raw materials

Secondary raw materials

Primary raw materials comprises of four types:

Lime stone (about 80%)

Clay (about 18%)

Sand (about 1%)

Iron dust (about 1%)

Secondary raw materials:

Gypsum,

Fly Ash & Bauxite

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Routing of Raw materials : Meghalaya Minerals & Mines Limited

(MMML) is the sole supplier of Lime Stone, the main raw material

for producing cement for our company. Meghalaya Minerals &

Mines Limited has set up Limestone Crushing and galvanized plant

at Lumshnong, Distt. Jaintia Hills, Meghalaya.

Materials Handling: The material handing at the plant was found to be

mostly automated throughout the production process.

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COST OF PRODUCTION

Consumption(MT)

Cost Per Tonne(Rs. )

Total Cost (Rs. In Lakhs)

Consumption

(MT)

Cost Per Tonne(Rs. )

Total Cost (Rs. In Lakhs)

Lime Stone 2,10,182 633.00 1330.45 1,92,212 700.00 1345.48

Fly Ash: 41,364 1,750.00 722.47 37,034 1,696.00 629.59

Gypsum: 323 8.61.00 15.76 304 8.59.00 15.55

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FUEL AND POWER

Coal: ). In current year, the company has incurred Rs. 2049.58 lakhs on coalas compared to Rs. 1615.21 lakhs in previous year. In 2012-13 average coalcosting comes out to Rs. 7555/- per MT as compared to Rs. 5,482/- per MT in2011-12. The coal cost per ton of cement comes out to be Rs. 960/- in the year2012-13 when compared with Rs. 780/- in the previous year 2011-12.

(ii) Power: In the current year, the company has incurred Rs. 1231.14 lakhson power cost with an average of Rs.5.22/- per unit as compared to 1197.13lakhs (Rs. 4.90/- per unit) in last year.

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Coal Mill

and

Hopper

STORAGE HOPPER

Limestone

CLAY SANDIRON

DUST

Limestone

(100 mm

and above

Clay

SAND

Iron

Dust

Primary

Crusher

Secondary

Crusher

Grate Cooler

P

C

C

O

P

C

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3

S

OPC43

OPC53

Kiln Section

Packaging Section

Cement Mill Section

Raw Mill Section

Various Sections of the Plant

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Raw Mill Section Kiln Section

Cement Mill Section Packaging Section

Testing Section

Clinker

Chemical Testing ZoneFurnace HeaterStrength Tester

QUALITY

• The BVCL products are approved and accredited with Quality Standards vizBIS License for 53 Grade OPC Cement IS 12269: 1987, BIS License for 43Grade OPC Cement IS 8112: 1989, BIS License for PPC Part 1 Fly AshBased Cement IS 1489: Part 1: 1991, BIS License for PPC Part 2 CalcinedClay Based Cement IS 1489: Part 2: 1991.

• The quality is tested thoroughly in every stage of the production process in itsstate of the art testing labs equipped with modern testing equipment's.

• Also the finished product is tested comprehensively for every batch beforedispatching it to the market.

14Furnace Tester Strength Tester

LogisticsThe Barak Valley Cements Limited doesn’t have any logistics support of their own ratherthey have completely outsourced their transportation and logistics to outside agenciesboth in terms of bringing in of raw materials and supply of finished goods to the market.This Logistics Agencies operate on a contractual basis.

• Some of the transport agencies which are associated with BVCL are:-

• Sree Ram Transport Corporation , Station Road Tarapur

• Joy Guru Transport Agency, Kalain

Safety and Pollution:-For the safety of the employees they are given proper time to time training so that theycan keep themselves safe from various machines which can be life endangering. Inaddition, all the workers in the plant are provided with dust masks and helmets,without which they are not even permitted inside the plant.

The management and the authority has taken various steps like installation ofair filter, installation of monitoring equipment’s etc to check the pollution levels andhave minimum impact on the environment.

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PROBLEMS AND CONSTRAINTS

Rising input and raw material cost

Transportation cost

Changes in government policy

Law and order in the NE region

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ConclusionAfter visiting one of the largest and oldest cement plant in the whole North-East of India we made a number of observations about their production and operation system. Some of the important observation we would like to share are as follows:-• Initially the plant had a capacity of 300 TPD which eventually increased to

an average of 1000 TPD.• They had a highest record of producing 1200 TPD .• In the year 2007-2008 they got listed in BSE and NSE• They have an employee strength of 245 permanent employees & 140

temporary employees.• Their primary markets are Barak Valley , Mizoram and Tripura• They procure their raw materials and power mainly from their own

subsidiaries• They have a very low percentage of wastage

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