Gujarat Ambuja - Redefining Operational Efficiency

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Cutting Costs Contd...

- FUEL Contd... Since the company's Ambuja Nagar plants were located in the agricultural belt of Saurashtra, where groundnut husk was available in plenty, GACL engineers tried to use groundnut husk instead of coal to fire the kilns in one of the plants. The idea worked wonderfully and the company was able to bring down the overall coal consumption by 3%. In another plant, GACL replaced coal with crushed sugarcane. The use of sugarcane however, created problems because the water content differed with every batch, leading to fluctuations in kiln temperature. So the company's engineers designed a special mechanical system that could adjust the rate of feeding to ensure a stable temperature in the kiln. In the process, GACL brought the energy bill down by Rs 20 for every tonne of crushed sugarcane. GACL also began using fluorspar,4 a waste dumped by Gujarat Mineral Development Corporation to reduce fuel consumption. They modified many higher capacity motors for fans, coolers, and other equipments to reduce power requirements by 1 to 1.5 units per tonne.

The company also replaced V belt drives (which consumed more energy due to friction) with flat belt drives. Even though mechanical conveyors gave rise to problems like spillages and breakdowns, GACL did not shift to pneumatic conveyors, which consumed more power. Instead, the company devised an improved version of the mechanical conveyor to eliminate its drawbacks.

- FREIGHT
According to analysts, the most successful of GACL's innovative strategies was the development of a sea transportation route for its cement. At a company meeting in the early 1990s, a Marketing Manager said, "As we all know, Bombay is the country's largest cement market. It consumes a vast 2 lakh tonnes a month. The city is also 1060 kms away by rail. The transportation and packing costs alone will be phenomenal." Road transport was very costly and rail transport was not feasible due to the limited number of wagons available with Indian Railways. Just when it seemed that the company would have to agree to bear the road/rail transportation costs, an employee in the Logistics department said, "I can bring Bombay closer to our plant."

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4] A calcium fluoride compound which, combined with other minerals, lowers the melting point.