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Barak Valley Cements Ltd.,Assam- A study on its production and operations
1. 1 1
A Brief Presentation On
Production & Operation
Of
Barak Valley Cement, Assam
Presented By
Debasish Das(13-50-125)
Saurish Dutta(13-50-127)
Nilanjan Dutta(13-50-102)
Sanjeev Mahato(13-50-126)
2. INTRODUCTION
Barak Valley Cements Limited (BVCL) is engaged in the business of
manufacturing of cement of different grades and is marketing its product
under 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 in
November, 2007.
Started its commercial production at the capacity of the plant at 300
TPD and currently has a capacity of 1000 TPD of cement.
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3. The company is located in Assam and all the operations of the company are
concentrated 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 to
BIS (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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4. LOCATION OF THE FACILITY
The manufacturing unit is located at Badarpur Ghat in the Barak Valley
region, Assam.
This entire area is surrounded by the other states of North-East such as
Mizoram, Tripura, and Southern part of Meghalaya, which are the
company’s target markets.
Being located in Assam, the company is entitled to get various benefits like
Excise duty exemption, Working capital interest subsidy and Insurance
subsidy.
Company owned bio-mass based power plant, Badarpur Energy Pvt.
Ltd(BEPL), which provides uninterrupted power supply to the plant, is
located adjacent to it.
Cheap and easy availability of labor.
Abundant sources of water in the vicinity to meet the water requirements
of the plant.
Well connected by rail and road network.
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5. HUMAN RESOURCE
54
The total man power strength of the Company as on 31st March, 2013 was
245. In addition, it currently has about 140 contractual employees and
labours. The employees are encouraged to offer constructive suggestions for
improvement in their respective areas which are thoroughly discussed in
departmental meetings. The industry and carries out the necessary
improvements to attract and retain the best talent. The Company maintains
absolute harmony with its work force. Since inception there has not been
even a single instance of strike or lock-out at any of the Company’s work
place.
Salaries, Wages and Labour Cost: In year 2012-13, the company
has incurred Rs. 851.64 lakhs on salaries, wages and labour cost as against
Rs. 793.17 lakhs in 2011-12. The labours are paid an average monthly salary
of Rs.6000.
7. 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.PPc
is used in heavy construction like marine structures,hydraulic structures,masonry mortars,mass concreting
works & plastering.It has a compressive strength of more than 33N/mm2. The compressive strength of
cement is its capacity to withstand loads .
Ordinary Portland Cement Grade 43:- It is used for the construction of
buildings,roads,bridges,flyovers,irrigation projects & other general civil construction projects.Cement of such
quality is also suitable for all types of application- RCC,plastering & masonry. It has a compressive strength of
more 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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8. 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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9. 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
10. Material management:
Material management is a function which aims for integrated approach towards the management
of 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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11. 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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12. 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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13. FUEL AND POWER
Coal: ). In current year, the company has incurred Rs. 2049.58 lakhs on coal
as compared to Rs. 1615.21 lakhs in previous year. In 2012-13 average coal
costing comes out to Rs. 7555/- per MT as compared to Rs. 5,482/- per MT in
2011-12. The coal cost per ton of cement comes out to be Rs. 960/- in the year
2012-13 when compared with Rs. 780/- in the previous year 2011-12.
(ii) Power: In the current year, the company has incurred Rs. 1231.14 lakhs
on power cost with an average of Rs.5.22/- per unit as compared to 1197.13
lakhs (Rs. 4.90/- per unit) in last year.
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14. 12 14
Coal Mill
and
Hopper
STORAGE HOPPER
Limestone
CLAY SAND
IRON
DUST
Limestone
(100 mm
and above
Clay
SAND
Iron
Dust
Primary
Crusher
Secondary
Crusher
Grate
Cooler
P
C
C
O
P
C
5
3
S
O
P
C
4
3
O
P
C
5
3
Kiln Section
Packaging Section
Cement Mill Section
Raw Mill Section
15. Various Sections of the Plant
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Raw Mill Section Kiln Section
Cement Mill Section Packaging Section
Testing Section
Clinker
Chemical Testing Zone
Furnace HeaterStrength Tester
16. QUALITY
• The BVCL products are approved and accredited with Quality Standards viz
BIS License for 53 Grade OPC Cement IS 12269: 1987, BIS License for 43
Grade OPC Cement IS 8112: 1989, BIS License for PPC Part 1 Fly Ash
Based Cement IS 1489: Part 1: 1991, BIS License for PPC Part 2 Calcined
Clay Based Cement IS 1489: Part 2: 1991.
• The quality is tested thoroughly in every stage of the production process in its
state of the art testing labs equipped with modern testing equipment's.
• Also the finished product is tested comprehensively for every batch before
dispatching it to the market.
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Furnace Tester Strength Tester
17. Logistics
The Barak Valley Cements Limited doesn’t have any logistics support of their own rather
they have completely outsourced their transportation and logistics to outside agencies
both 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 they
can keep themselves safe from various machines which can be life endangering. In
addition, 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 of
air filter, installation of monitoring equipment’s etc to check the pollution levels and
have minimum impact on the environment.
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18. 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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19. Conclusion
After 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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