MANUFACTURING CAPITAL

SOCIAL FOCUS

SDGs IMPACTED

Rooted in the infrastructure sector, we prioritise efficient asset management to stay ahead and our success centres around smart handling of manufacturing resources. We lead with innovative manufacturing solutions, cutting-edge technology, and sustainable practices. Being the fifth largest cement group in India in terms of capacity and a leading player in the East, we have a focus on effectively and efficiently utilising our capacities and growing our relationships.

KEY HIGHLIGHTS

25 MMTPA

Total cement production capacity

11

Cement plants across India

58

RMX plants nationwide

13%

AFR achieved

CAPITAL TRADE-OFFS

MANUFACTURING CAPITAL

CAPITALS IMPACTED
  • Financial

  • Intellectual

  • Human

  • Social and Relationship

  • Natural

STAKEHOLDERS IMPACTED
  • Employees

  • Customers

  • Communities

  • Investors and
    Shareholders

  • Regulatory Authorities

  • Value Chain Partners

MATERIAL ISSUES ADDRESSED
  • Sustainable Product
    Innovation

  • Customer-Centricity

  • Risk & Crisis
    Management

KEY FOCUS AREAS IMPACTED
  • Expansion

  • Geo-Optimisation

  • Premiumisation

  • Fuel Mix Optimisation

OUR MANUFACTURING
CAPACITIES

Nuvoco is committed to fostering sustainable growth, utilising our robust manufacturing capacity and strategic initiatives to effectively meet market demands. Our total cement manufacturing capacity is 25 million metric tonnes per annum (MMTPA), supported by an integrated network of 11 cement plants comprising 5 integrated units, 6 grinding units positioned across India’s core markets. The recent expansion of the Haryana Cement Plant with a 1.2 MMTPA grinding unit is poised to cater to the rising demand in the Northern region. Our growth Projects at Sonadih and Odisha Cement Plants are in the advanced stage of completion and will help us to cater to the demand in the East.

In our Ready-Mix Concrete (“RMX”) and Modern Building Materials (“MBM”) businesses, we have continued to expand and innovate. The RMX Division includes 58 plants nationwide, with 7 new plants added during FY 2023-24. Given our continuous thrust on premiumisation, value added product mix stood at 31% of total sales volume in FY 2023-24. Our MBM business serves as a pivotal distinguishing factor for the Company. Under the Brand name Zero-M, the Company markets and sells a varied range of products, namely Construction Chemicals, Multipurpose Bonding and Waterproofing Agents, Wall Putty, Tile Adhesive, Ready-Mix Dry Plaster, and Cover Blocks for different construction applications. During the year, the tile adhesive and cover block segments have witnessed considerable growth, with the recent introduction of a tile cleaner under the brand ZERO M.

OPTIMUM PLANT
LOCATIONS AND MINING

Our cement plants consist of three integrated plants and five grinding units in the East, and two integrated plants and one grinding unit in the North. Their strategic locations help us serve our key markets efficiently and effectively. Moreover, the captive mines located near our plants, ensure a steady and long-term supply of limestone while reducing transportation cost. This seamless access to raw materials, coupled with our well-connected road and rail infrastructure, guarantees an uninterrupted supply chain for all our cement manufacturing requirements, encompassing limestone, slag and fly ash.

Mining operations are central to our manufacturing capabilities, guided by strict Key Performance Indicators (KPIs) aimed at optimising fuel usage and extraction processes. Most of our mines are located within close proximity to our plants, resulting in reduced logistics costs and carbon emissions. We prioritise sustainable mining practices and environmental balance, focusing on maximising the output of our current mines that have reserves to support operations for ~30 years. Our strategic plant placements reflect our dedication to achieving manufacturing excellence, meeting customer needs efficiently, and retaining our leadership in the industry.

ENSURING OPERATIONAL
EXCELLENCE

In our relentless pursuit of operational excellence, we’ve implemented several key measures. Our Project BRIDGE 1.0 targets inefficiencies such as moisture and calorific value loss, ensuring cost optimisation and operational efficiency. We align our cement-clinker ratios with market demands to reduce fuel costs and optimise production for maximum efficiency. At our Nimbol and Risda Cement Plants, we have introduced state-of-the-art fuel feeding systems and optimised coal grinding for ideal combustion, which enhances our energy efficiency. With AI optimisation at our Chittor Cement Plant and advanced control systems that provide real-time monitoring, we maximise our kiln and Waste Heat Recovery (WHR) efficiency. Our AFR incorporates a LEAP-O system that ensures minimal downtime and maintenance costs, supplemented by regular energy audits to identify and mitigate energy wastage. Furthermore, we have achieved a 13% Alternate Fuel Rate (AFR) in the fiscal year 2023-24, showcasing our commitment to utilising alternative fuels and adhering to green practices.

LOGISTICS

Our logistics approach focuses on efficiency, sustainability, and ensuring customer satisfaction. We have optimised our outbound logistics as per the regional requirements, primarily using rail dispatches for eastern markets and road for the northern markets. Our commitment to green logistics is evident through initiatives like introducing e-vehicles, CNG trucks, and ramping up rail movement to reduce our carbon footprint.

To enhance the efficiency of our logistics operations, we leverage advanced technologies such as electronic proof of delivery (ePOD) through mobile devices. Looking ahead, our strategic initiatives involve integrating artificial intelligence (AI) into various logistics processes. Further, we have implemented several key initiatives, including order promising for accuracy, optimised scheduling with transportation systems, and trials for SIM-based vehicle tracking to enhance logistics efficiency. Looking ahead, our focus is on further GPS optimisation, a greater modal shift to rail, and implementing customer-centric processes like order promising and ePOD. Furthermore, we have a vehicle tracking system which gives the visibility to all RMX plants of the real-time movement of transit mixers, thus enabling improvement in productivity and customer service.

At Ready-Mix Concrete, our integration of a Vehicle Tracking System (VTS) with Drum Rotation Sensors and GPS has significantly enhanced our operational efficiency. This technology allows real-time monitoring of transit mixers, improving planning for deliveries and providing precise delivery updates to customers. Utilising GPS data also ensures accurate variable cost payments based on the kilometres travelled, aiding in cost management. Additionally, the VTS helps monitor driver behaviour, enabling timely feedback and targeted training on safe work practices, which enhances transportation safety and promotes a culture of continuous improvement. By analysing performance data from transit mixers, we identify opportunities for strategic improvements and maximise productivity. Overall, our system of VTS, Drum Rotation Sensors, and GPS not only boosts efficiency and cost-effectiveness but also emphasises safety and continuous enhancement in our transportation processes.

Our customer-centric initiatives are designed to enhance satisfaction. Our aim is to reduce order processing and transit times, creating dedicated loading channels for faster service to our home markets, and fostering collaboration across our sales, manufacturing, and logistics teams for seamless operations.