shree corporate sustainability report
TRANSCRIPT
Shree Corporate Sustainability Report 2004-05
having the It's all about
elements right.
This report has been preliminary checked by the GRI Secretariat for the 'in accordance'
conditions. Although GRI does not fully audit self declared 'in accordance' reports for
conformity with all 'in accordance' requirements, as a preliminary check, GRI does
ascertain whether (a) a content index appears and (b) whether the CEO or Board
representative signature appears, pursuant to 'in accordance' conditions in the Guidelines.
This is not a certification scheme, but a simple feedback process where GRI can express
its opinion as to whether or not the conditions have been met.,,
Concrete initiatives for abrighter tomorrow
Shree first published an environment report
in 2000-01 and has been continuing the same
as part of its annual report to shareholders.
In 2003-04, it started reporting on Corporate
Sustainability issues in its annual report. This
Corporate Sustainability Report is a further
step in the direction of our concern for
sustainable development issues.
We have used the "Global Reporting Initiative
2002 Sustainability Reporting Guidelines" as
well as Cement Sustainability Initiative
Agenda to organize the contents and
structure of this report.
Sustainable development is defined as forms of progress that
meet the needs of the present without compromising the
ability of future generations to meet their needs.
01
Content Page GRI IndicatorE&Y Independent Assurance Report 2
Shree’s Philosophy, Vision & Mission 4 1.1, 3.7
Message to Stakeholders
A Qualitative Difference ..... 7 1.2, 3.14, 3.15
– B. G. Bangur, Executive Chairman
A framework for a brighter tomorrow.. 8 1.2, 3.15
– H. M. Bangur, Managing Director
Story thus far........ 9 1.2
– M. K. Singhi, Executive Director
About this Report
Report Scope & Profile 11 2.10, 2.11, 2.13, 2.21, 2.22
2004-05 in a nutshell 12 EC10, EN2
About us ..... 13 2.1, 2.2, 2.4, 2.5, 2.6, 2.7, 2.8,
2.14, 3.18, EN10, LA1,LA2
Corporate Structure And Governance 19 3.1, 3.2, 3.3, 3.4, 3.8, 3.19, LA11
Internal Control and Management Systems 20 2.18, 2.20, 3.13, 3.20
Participation in Cement Sustainability Initiative 22
We Believe in 25 1.1, 3.7
We work in consultation with 26 2.9, 3.9, 3.10, 3.11, 3.12
Society
Society around us matters 28
Partnering with community 29 SO1, SO3
Health on Agenda 30
Social performance 31 3.16, LA3, LA10, HR1, 2,3,4,
5,6,7
Expanding knowledge base 33 3.19, LA9
Generating ideas at all levels 34 LA4
Shree among best employers 35 3.5
Providing safe work place 36 LA5
Safety as a culture 37 3.19, LA6, LA7, LA8
Delivering value to Customers 39 3.16
Environment
Our green journey 41
Environmental performance 42 3.19, EN16
Emission reduction 43 EN10
Our commitment to fight climate change 44 EN8
Clean Development Mechanism 45
Resource Productivity 46 EN1
Energy footprint 47 3.19, EN3
Water: an invaluable resource 48 EN5
Waste management & Reduction 49 EN11, EN12, EN7
our ecological footprint
Greening the desert 51
Economic
Financial Sustainability 53
Economic Performance– 2004-05 at a glance 54 EC1, EC3, EC5, EC6, EC8
Financial Performance Highlights 55 2.8, 3.17, EC9, EC2, EC4, EC7
Case Studies
Teaming For Better Solutions 61 3.19
Use of Roller Press for two Ball Mills 62
Electrostatic filter 63
Waste heat utilisation 64
Efficient process 65
Ascent groups 67
Company details 68 2.3, 2.6, 3.6
Feedback form 2.10
,,
E&Y independent Assurance Report
The Executive Director Shree Cement Limited
Beawar, Rajashtan
Independent Assurance Report
1. Introduction
We have been engaged by Shree Cement Limited (the 'Company') to review the contents of "Shree -Corporate Sustainability Report 2004-05" (the 'Report') relating to Environment, Health and Safety (EHS), Human Resources (HR) and Social Performance. The Report is prepared by the Company, which is responsible for collection and presentation of information within it. The Company has made an effort to prepare this report in line with GRI Guidelines 2002. Our responsibility is to issue an Assurance Statement on the Report. However, this Statement should not be taken as a basis for interpreting the Company's performance across the scope of issues covered in the Report.
2. Approach
There is currently no statutory requirement in India for preparation and publication, nor generally accepted international standard relating to verification, of corporate sustainability reports.
Our review process included a series of customized work steps to ensure consistency in our assessment across the operations of the Company. This involved challenging and substantiating the assertions and claims made in the Report, to the extent the Report relates to current year's performance and also involved a review of processes for the collection, collation and internal reporting of non-financial data relating to EHS, HR and Social Performance.
3. Scope of the Review
We understand that the economic and financial data included in the Report is derived from the Company's audited financial records; we have not performed any review of these data.
The scope of our work was limited to verification of data pertaining to EHS, HR and Social Performance for the year April 2004 March 2005; we have not performed review of the past years' information included in the Report.
03
4. Basis of our review
Our review is based on:
Analysis of the Company's sustainability plans, policies and practices to ensure that the Report provides a fair representation on these aspects;
Interview of selected key officials of the Company responsible for operations and EHS, HR and Social management to understand the activities and initiatives in this regard;
Analysis of selected documents, as well as processes used to capture and collate information relating to EHS, HR and Social Performance parameters.
Visits to the plant facility at Beawar, to physically review the integrity of processes and activities relating to collection, collation and internal verification by the Company of such data;
Challenge of the information relating to EHS, HR and Social Performance, to substantiate the assertions made in the Report, including review of evidences against selected claims.
5. Conclusions
We have observed that the Company has taken substantial initiatives and demonstrated commitment in implementation of EHS and Social management systems and reporting, as evidenced by existence of policies, programmes and activities aimed at significant issues in these matters. As one of the major initiatives in its sustainability drive, The Company has joined, as the first Indian Cement manufacturing company, the Cement Sustainability Initiative (CSI) of World Business Council for Sustainable Development (WBCSD). On the basis of our review, the key conclusions are as follows:
Transparency and Completeness
The Company has included the significant EHS, HR and Social aspects of the business in the Report in a fair and balanced manner. We are not aware of any such significant issue excluded relevant to the major stakeholders. We observe that 'distribution of product', which could be of importance to a segment of its stakeholder, has not been included in the coverage of report.
Sustainability Context
The EHS, HR and social issues pertaining to operation of the plant and facilities are well covered; however, the broad impacts of its operations on communities and ecology, and on sustainable development, is not fully addressed.
Inclusiveness:
The Company has taken substantial initiatives in stakeholder identification and consultation. The processes related to these may be further strengthened to make the system more robust and comprehensive, and to ensure the feedback is used in subsequent reporting initiative.
Accuracy and Auditability
The Company has implemented systems and procedures for collection, collation and interpretation of data on EHS, HR and Social parameters for inclusion in the Report. The internal control and management systems are based on integrated quality, environmental and occupational health & safety management systems as per ISO 9000 / 14000, OHSAS 18000. We have found that the systems and procedures are robust. However, there is a scope for further improvement with respect to internal check and assurance procedures.
Based on sample check of reporting process of some of the significant data carried out by us, we found that these have been correctly transposed from internal reporting and the content of the report is consistent with documentary evidence obtained during the course of our work, with the exception of data related to water discharge from captive power plant, which rely partly on metering and partly on estimate.
Ernst & Young Private LimitedAuthorised Signatory
July 4, 2005
Philosophy
VisionTo become known as a premier cement maker offering high value
realisations for customers and stakeholders alike
MissionTo sustain its reputation as the most efficient cement manufacturer in the
world
To drive down costs through innovative plant practices
To increase the awareness of superior product quality through a realistic and
convincing communication process with consumers
To strengthen realizations through intelligent brand building
"Aah no bhadra: Kratavo yantu vishwatah"-Rigveda
Let noble thoughts come to us from all over the world
According to India's ancient philosophy, the five elements form the crux of life. Their balance is rudimentary to an entity's activities. In the context of Cement Sustainability Initiative (CSI), the key parameters of triple-bottomline cover - environment, economy and social change. However, any change whatsoever cannot be brought about if the top management does not show serious inclination and the employees do not get involved with a missionary zeal.
Shree Cement Ltd. has at its helm a visionary management team. The fact that it is the first Indian cement company to be a signatory to CSI speaks volumes about its leadership. It represents Fire; a burning desire at the management level to bring about a change. This fire within has been translated into appropriate initiatives; resulting in social transformation. These nurturing aspects symbolized by Water. The rock solid foundation created by such programs signifies the Green Journey of the company; represented by the Earth. The economic sustainability the infinite possibilities and scope of work corresponds to Space. While, the percolation of these initiatives at all levels in the company, including family members of the staff, characterize Air, the element with the property of covering every available space.
Hence, the first ever report on Corporate Sustainability from Shree talks about elements. For it's as much part of India's culture as of Shree's corporate culture.
Concept Note
EarthThe symbol represents material drive. The alphabet 'La' stands for 'Lavana', the salts or minerals that form the Earth, the basis of our being.
WaterThe sign of creation. The alphabet 'Va stands for 'Varuna', the deity for water. Representing the nurturing force that supports life in every form.
FireThe mark of eternal force. The symbol of power and drive. The word 'Ra' stands for fire, the will power of an individual.
AirThe invisible power. The 'prana' in an individual. The symbol represents life. The alphabet 'Pa' signifies 'Power', the deity for Air.
SpaceThe symbol and the alphabet 'Ha' signify the expanse of an individual. The spiritual light within that helps in reaching out to others.
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Partnership is the tagline for Shree. We need to take along all our
stakeholders with us to emerge as a successful and sustainable enterprise,,
A qualitative difference...
B G BangurExecutive Chairman
I often wonder if it is possible for a business to flourish, or even exist, in a
vacuum. At Shree, we believe in a more holistic approach, wherein making a
qualitative difference to society, community building and environmental
preservation, are as important as economic success.
The term sustainable development is still a new and unfamiliar concept in
many parts of the world including India, but it is one Shree has already been
focussed on. I am happy to share with you that we are playing a key role in
international initiatives on sustainable growth. We are part of the Cement
Sustainability Initiative (CSI) of the World Business Council for Sustainable
Development (WBCSD), Switzerland. Our participation is aimed at increasing
our contribution in sustainable development, notably in the areas of:
Climate protection
Fuels and raw materials preservation
Employee health and safety
Emission reduction
Minimising local impacts, and
Integrating sustainable development program into internal business
processes
Our business is developed keeping these guidelines in mind.
A qualitative difference… that is our philosophy.
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We are looking at
development which
includes meeting the
economic,
environmental and
social needs of the
present and future
generations. We realise
our immense social and
environmental
responsibility, and take
them as seriously as our
commitment to
corporate excellence.
Being a responsible
organization, we plan to
achieve this along with
enrichment of quality of
lives in the local community. By joining CSI, we agreed to acknowledge and
implement guidelines and good practices recommended in the charter of CSI.
Our efforts have always been to utilize resources efficiently and in an
environmentally sound manner, while meeting the expectations of our
stakeholders. The key here is innovation in terms of energy efficiency, finding
alternate raw materials, fuels and processes, and recycling and reuse.
As the leader of cement sector taskforce on energy efficiency and major player of
the North India region, Shree Cement is fulfilling its responsibility to act as leader in
the field of sustainable development as well, and we believe that the information
contained in this report presents impressive evidence of our success in this regard.
We invite your suggestions and views in our pursuit to build a brighter tomorrow
for the stakeholders in the highly competitive market.
With this report, we are committing ourselves to be
transparent and to hold high standards of corporate integrity.
We have presented our performance on triple bottom line
addressing economic, environmental and social issues.
H M BangurManaging Director
This report has been prepared in
accordance with the 2002 GRI
Guidelines. It represents a balanced and
reasonable presentation of our
organization’s economic, environmental,
and social performance.
A framework fora brighter tomorrow…
,,
Our firm belief is that 3 Ps are imperative for ushering in prosperity –
People – Our most important resource
Planet – Preserving for future generation
Profitability – For the growth of all stakeholders
Story Thus Far ... For more than a decade now, Shree Cement has established itself at a
prominent position in the cement map of India. And by subscribing to Cement
Sustainability Initiative, Shree has made its mark in the global cement map as
a proactive organization dedicated to sustainable development. With this
shared history comes a special responsibility to play a leadership role in the
community and the marketplace and find acceptable and long term-solutions.
In our view, key issues of sustainable development for us revolve around
People, Natural Resources and Community.
When we talk about People, we mean entire family of stakeholders. We strive
in meeting their aspirations to the best of our capabilities through people-
centric focus in our policies.
On the Natural Resource front, we understand that we use huge quantities of
raw materials and we believe in sustainable consumption of the same. We, in
the past, have consciously made efforts in optimizing use of raw materials,
fuels and water. Our R&D team has looked at different waste materials as
alternatives to fuels and raw materials and has already started making use of
few alternative fuels and raw materials while initiating trials for a few more.
Community around us is very important to us and we firmly believe that our
long-term success depends on their support. We have made modest efforts to
help them realize their aspirations of improved socio-economic status and
improved living standards.This report is not only a document for the
external stakeholders, but we look at
working on this report as a vital
component of our introspection, looking
critically at our own self, to identify the
areas that need immediate attention and
to take appropriate action. ,,We aspire to excel in these three vital issues of sustainability management and
through this report we have tried to bring to you our achievements so far and
future challenges.
I am sure that involvement of our people, in developing this report and taking
it further from one year to the next, will facilitate a sustainable outlook in our
people, which in turn will go a long way in betterment of our business.
We have made an attempt to share some of our sustainability stories as case
studies with a view to set an example and guideline for future.
M K SinghiExecutive Director
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Report Scope and Profile
Our report is based on the 11 principles
of Global Reporting Initiative (GRI)
guidelines and is in line with CSI
protocols.
This report covers our performance for the year 2004-05 on the key
parameters of triple-bottom-line. On certain parameters, we have also
reported information based on previous two years' performance, to
demonstrate the direction we are moving in.
Our intention is to report on all the three key dimensions of sustainability, i.e.,
environment, economy and society. Our approach on integrating
environmental and social issues with business strategy for long-term value
creation is evident from the information presented in the report.
The scope of this report is limited to activities associated with cement
manufacturing, mining and our captive power generation. Cement
distribution, logistics and final use of cement, are not addressed in this report.
The report also presents the views and key concerns expressed by some of
our stakeholders on our operations and this reporting initiative.
To ensure credibility of this report, we have invited Ernst & Young to provide
assurance on our non-financial performance reporting.
Through various performance indicators presented in the report, we have tried
to provide details of the Company. However, additional information can be
accessed at our website www.shreecementltd.com
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Cement production: 3.02 Million Tonne
Net sales: INR 5,820.77 million
Net Profit: INR 290.66 million
Total assets: INR 7,131.43 million
Return on average 29.30 %
capital employed:
Energy consumption: Electrical - 75.17 kWh/ton of cementThermal – 747 Kcal/kg of clinker
Waste as raw material: Flyash usage 14.2 % of totalcement produced
3Recycle and reuse 0.13 million m
of wastewater:
Renewable energy: 23,189 GJ biomass usage in kiln
Climate change: Proceeding with three potential Clean Development
Mechanism (CDM) projects
Safety: No fatal accident
Training: Average 24.4 training hours per employee
Employee welfare: Roll-out of formal employee grievance redressal system
Community welfare: Conducting Eye Camps, awareness programmes on HIV/AIDS and running school
Investment in infrastructure & INR 5.7 million
healthcare for community:
INR - Indian Rupee = 43.5 $
2004-05 in a nutshell…
Shree Cement Limited (SCL) is a forward looking cement company striving to
continue its leadership position in the areas of energy efficiency, cost
effectiveness, environment improvement and community development on the
global cement map.
Established in the year 1979 as a public limited company under the Indian
Companies Act 1956, SCL has been promoted by B G Bangur group based at
Kolkata. Today the group is a respected Industrial House.
Shree is among the top ten largest private sector enterprises, in the state of
Rajasthan.
Shree aspires to be a 10 million ton company by 2010.
About us
13
2
We manufacture 53, 43 and 33 grade Ordinary Portland Cement (OPC) and
Portland Pozzolana Cement (PPC). Starting with an initial capacity of 0.6
Million Ton Per Annum (MTPA) of cement, the capacity was upgraded to 0.76
MTPA in 1993. Second unit with installed capacity of 1.24 MTPA was
commissioned in 1997, raising total capacity to 2.0 MTPA.
Capacity was further increased by 0.6 MTPA, bringing the total capacity to 2.6
MTPA, which makes Shree the largest single-location cement producer in
North India. In 2004-05, the company produced 3.02 million tons of cement.
This production level has been possible due to committed work performed by
our workforce comprising of 1,281 individuals, including 653 staff members
and 628 workers.
We have our captive limestone mines
Located near the city of Beawar in central Rajasthan, we are able to cater to
entire Rajasthan comfortably. Other strategic markets include the states of
Delhi, Haryana, Punjab, Uttaranchal and Western Uttar Pradesh.
Cement industry in India is poised for healthy growth supported by following
factors:
Growth of the Indian cement industry is directly influenced by the GDP,
which is expected to grow at the rate of 7%
With various infrastructure projects like roads and highways, railways, port,
power projects and real estate being implemented, the demand for cement
is expected to grow at a fast rate
Tax relief against interest on housing loans, stable interest rates and
increasing competition in housing finance would significantly help in
growth of this sector
in the close vicinity of our plant for
sourcing limestone.
Enhanced capacities, captive mines, strategic location and a healthy outlook
for cement industry augur well for the company. And more importantly, we are
well positioned to leverage all our strengths.
Shree Cement
Manufacture 53, 43 & 33 grade
Installed capacity of 2.6 MTPA
Under commissioning - 1.2 MTPA Greenfield
plant in Rajasthan
Strategic markets include states of
Rajasthan, Delhi, Haryana
Captive mines nearby for sourcing limestone
16% share in Rajasthan cement production
2.40% share in all India cement production 15
2
A 1.2 MTPA greenfield capacity, ‘Bangur Cement’ project is presently
under trial commissioning at village Ras, district Pali, in Rajasthan. The
estimated cost of project is over INR 3000 million. This project is expected
to bring about a significant change in the region by increasing employment
opportunities and boosting commerce.
The Bangur cement project can count on reduction in operational and
overhead costs that arise from its proximity to its mother plant at Beawar
Premium quality
Quality shall be prime driver for Bangur Cement. We will strive to maintain
quality as per international standards, and thus capture a niche market.
Precision of automation
High-end computer systems will regulate every stage of the production
with perfect precision and accuracy to turn out cement par excellence.
Right timing
The best thing to happen ever since the project took off is the timing of its
completion. Nothing could have been more heartening than the timing.
When North India is witnessing an unprecedented demand, this plant is
getting commissioned. Modern technology
Premium quality positioning
High-grade Limestone Mines
Proximity to existing plant creating synergy
High automation level
Project completion reaching at opportune time as North India witnessing high demand
Bangur Cement Competitive Advantage...
Prashant BangurSenior Executive - Bangur Cement Project
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Zero disposal of effluent on land
Use of Petcoke, which is waste from refinery
Reverse Osmosis Process to make use of inferior quality water
Shree Power
Our 2x18 MW captive power
plant (CPP) was commissioned
in April 2003 to meet the entire
power requirement of the plant
including its peak demand. This
has resulted in decreasing the
load on the state grid by
reducing demand of Shree
Cement. Thus, improving the
power availability in the state in
more than proportional amount.
Now, that power can find better
use in improving prosperity of
state. The power plant is fully
automatic and is operated from
a centralized control room.
Distinct feature of this plant is its
utilization of petcoke, which is a
waste product of petroleum
refineries.
Our CPP ensures regular supply
of electricity to the cement plant
at a cost as low as INR 2.04 per
kWh. Complete reliability of CPP enabled the company to discontinue the regular supply from Rajasthan
power grid in the year 2003-04.
Generation of power has associated environmental impacts and Shree has taken care to minimize these
impacts with an attempt to make the plant eco-friendly. Fly ash generated from this plant is used as
supplementary fuel, and bed ash, which also contains calcium sulphate, is utilized in cement grinding.
Raw water consumption in the conventional CPP design was proposed to be 5,232 kl/day. In view of
conserving the precious resource of the region, capital intensive Reverse Osmosis (RO) plant (RO-1) was
installed along with CPP, bringing down the water consumption to 3,600 kl/day. Further, with installation of
another RO plant (RO-2) during June 2003 for treating the effluent generated by RO-1 the water
consumption was brought down to 3,150 kl/day.
Effluent generated from pretreatment unit and blowdown from cooling tower and boiler is mixed with
some quantity of raw water and is again treated for reuse. The effluent generated by RO-2 is utilized for
ash quenching and dust suppression in fuel handling areas at CPP. The remaining effluent is transported
to cement plant for dust suppression at raw material and fuel handling areas and spray on roads. These
initiatives have facilitated zero-discharge of effluent from the CPP on land. No effluent is generated from
cement plant. High efficiency Electro Static Precipitators (ESP) have been installed, which has helped in
maintaining Suspended Particulate Matter (SPM) emissions well below the specified norms. During
various measurements taken at the two boiler stacks during the year, the emissions ranged between 3 357.26 and 82.1 mg/Nm , against the statutory limit of 100 mg/Nm .
Covered belt conveyors and induced draught dust collection system with bag filters are provided to
control fugitive dust emissions.
To control the release of SOx to atmosphere, we are utilizing limestone in the boiler bed. We have
initiated monitoring of SOx & NOx recently and intend to report on these emissions next year.
,,
Installed capital intensive RO plants to increase water
recycle so that fresh water demand is reduced ,,
Our Board of Directors is led by Mr. B G Bangur, Executive Chairman.
Mr. H.M. Bangur, Managing Director, is the driving force for the Company. The
Board is committed to preserve the rights of shareholders and minimizing their
risks, and is resolute in preserving the value of their investment. The board
determines the strategies in order to accomplish the set objectives. The board
also ensures effective monitoring of implementation on this front.
Our Corporate Governance is based on a voluntary and self-defined ethical
business conduct, which ensures that we are responsive to our stakeholders
and are committed to the principles of transparency, integrity, accountability
and social responsibility. Our focus is to ensure continuous value creation for
the stakeholders and apprise them of all relevant information on a regular
basis.
The Board consists of nine eminent directors; while nominating (appointing)
our non-executive, independent directors, we endeavour to bring in expertise
from diverse professions.
The Board heads the following committees: -
Audit Committee: Committee has four independent directors with major
scope of work as under: -
Review of the Company’s financial reporting process, the financial
statements and financial / risk management policies;
Discussion with management and auditors about the adequacy,
effectiveness and reliability of internal control systems and procedures
Remuneration Committee: Consists of three independent Directors
Committee is authorised to decide and recommend the remuneration of
directors for approval by shareholders of the Company.
Investors’ Grievances Committee: Consists of 3 independent directors, The
Committee is responsible for timely and effective addressal of all investor
related issues and matters such as transfer of shares, issue of duplicate share
certificates, non-receipt of balance sheet and dividend, etc.
Mr. M.K. Singhi, Executive Director, ensures implementation of policies and
other aspects of sustainable development with individual responsibility being
with Mr. Ashok Bhandari, Chief Finance Officer for financial issues, Mr. S.M.
Khira, Vice President (Tech) for Environmental issues and Mr. P.C. Jhawar, Sr.
General Manager (P&A) for Social issues.
The overall progress on efforts and initiatives made on sustainability issues is
reviewed and discussed at the Board level from time to time.
As a matter of having stakeholder consultations, the Company has added a
feedback form to this report seeking comments, suggestions and
recommendations from stakeholders of the Company on sustainable
development issues.
Corporate StructureAnd Governance
19
Internal Control
Systems
We are constantly
seeking new ways to
mitigate risk and protect
our Assets. Through
our System of internal
controls, we assess risk
and measure and
strengthen the
performance of all our
business and operating
processes. Our internal
auditors as well as
external auditors
independently test the
integrity of internal
control systems in order to provide reasonable assurance to shareholders, the
financial community and other stakeholders.
Quality, Environment and Organizational Health & Safety Systems
We have adopted Quality (ISO 9001), Environment (ISO 14001) and Occupational
Health and Safety (OHSAS 18001) management systems for all our operations
through commitment of our leadership towards continual improvement.
These systems help us in identifying significant environmental, quality, health and
safety aspects and impacts, objective and target setting in process modification /
upgradation, documentation, measurement and monitoring of significant
parameters and going beyond the mere fulfillment of regulatory requirements.
Internal and external audits of these management systems are conducted on an
annual basis.
ERP programme, christened ‘SUMriddhi’, has been implemented to integrate all
functional modules, namely Financial Accounting & Costing, Material
Management, Personnel and Payroll, Laboratory and Quality Control, Raw Material
Procurement, etc., with the objective of facilitating operations online for better
efficiency and transparency in our operations.
Internal Control andManagement Systems
Our internal Control Systems help us mitigate risk and protect
our Assets.
All the management systems have been integrated with our
business processes as an Integrated Management System
(IMS) that helps us in successfully implementing our Environment, Health & Safety,
HIV, Energy, Human Resource, Quality and IT policies. ,,
In a company of our own Successful implementation of our policies has helped us in
achieving numerous landmarks.
Few significant ones include:
Leadership role in task force of cement industry for energy efficiency
and conservation nominated by Bureau of Energy Efficiency, Ministry of
Power, Govt. of India
First Indian Company to join Cement Sustainability Initiative of World
Business Council for Sustainable Development, Switzerland
Received Best Rating (4 Star), consistently for last four years in
benchmarking survey, from Whitehopleman, UK, the International Cement
Consultants for being among the best of cement companies in energy
efficiency, safety and productivity
Received various national awards in the field of energy, environment,
safety, quality and corporate governance
Shree was invited by I-sec, the research and stock broking arm of ICICI
Bank Limited, to make a presentation to foreign institutional investors at
two conferences - 'India Unlimited Conference' in New York and another in
Singapore
21
Cement SustainabilityInitiative
The Cement Sustainability Initiative intends to create joint projects to: As part of our ongoing commitment to good practice and innovation in sustainable development, companies agree to:
develop a Carbon Dioxide (CO2) Protocol for the cement industry.work with WBCSD/World Resources Institute (WRI) and other organizations to investigate public policy and market mechanisms for reducing CO2 emissions.
use the tools set out in the CO2 protocol to define and make public their baseline emissions.develop a climate change mitigation strategy, and publish targets and progress by 2006.report annually on CO2 emissions in line with the protocol.
develop a set of guidelines for the responsible use of conventional and alternative fuels and raw materials in cement kilns.
apply the guidelines developed for fuel and raw material use.
set up a Health and Safety Task Force.establish a Health and Safety information exchange.
respond to the recommendations of the Health and Safety Task Force on systems, measurement and public reporting.
develop an industry protocol for measurement, monitoring and reporting of emissions, and find solutions to more readily assess emissions of substances such as dioxins and volatile organic compounds.
apply the protocol for measurement, monitoring and reporting of emissions.make emissions data publicly available and accessible to stakeholders by 2006.set emissions targets on relevant materials and report publicly on progress.
develop guidelines for an Environmental and SocialImpact Assessment (ESIA) process which can be used atall cement plant sites and associated quarries.
apply the ESIA guidelines, and develop tools to integrate them into decision making processes.draw up rehabilitation plans for their operating quarries and plant sites, and communicate them to local stakeholders by 2006.
investigate methods to track the performance of the cement industry, including development and use of key performance indicators.produce a full progress report after 5 years, and an interim report after 3 years.
integrate sustainable development programs into existing management, monitoring and reporting systems.publish a statement of business ethics by 2006.establish a systematic dialogue process with stakeholders to understand and address their expectations.report progress on developing stakeholder engagement programs.develop documented and auditable environmental management systems at all plants.
Agenda for action
Joint projects Individual company actions
Climate protection Climate protection
Fuel and raw material Fuel and raw material
Employee health & safety Employee health & safety
Emission reduction Emission reduction
Shree Cement was the first Indian company to be a signatory to the Cement
Sustainability Initiative (CSI). The CSI is the part of the World Business Council
for Sustainability Development (WBCSD), which is an international forum of
companies with a shared belief in development that benefits the present
generation without sacrificing the interests of the future. It initials the
implementation of guidelines and practices that satisfy the purposes of the
company, ecology and community in a holistic manner.
CSI agenda is drawn for preparing cement industry in general and individual
companies in particular for sustainable future, to meet stakeholders’ expectation
and to understand and build new market opportunities.
Shree agreed to acknowledge and implement guidelines and good practices
recommended in the CSI charter and work in the following key areas.
Climate change
Resource productivity
Emission reduction
Employee health and safety
Minimise local impacts and
Integrating sustainable development program into internal business process
Local impacts Local impacts
Internal business process * Internal business process *
Participation in Cement Sustainability Initiative
* Task force originally called “Internal business process” was changed to “Reporting and communications” in- line with its primary functions.
In 2002, ten international cement companies set out to help the industry play
a stronger role in support of sustainable development. Today, an expanded
group of 16 companies reports on our progress.
When this Cement Sustainability Initiative (CSI) wrote our Agenda for Action
in 2002, we represented about one third of world cement production outside
China. We now represent over half.
We spoke then of the "fundamental challenge" that the goal of sustainable
human progress presents. The challenge remains, as large as it was three
years ago. But we have identified several paths forward for our industry to
reduce its footprint, better manage its impacts and be more eco-efficient.
Our industry uses a great deal of fossil energy and materials quarried from
the earth; the conversion processes in our kilns release significant amounts of
CO2. Our markets are growing fastest in the developing world, where
populations are also growing more quickly. So while we can find ways - many
explained here - to consume less energy, use less natural resources, and
release less pollution per unit of cement produced, we expect to supply more
cement for the growing population of our customers.
By using some by-products of other industries in our kilns and grinding
plants, we can help society manage certain growing streams of wastes,
keeping them out of landfills and the wider environment. Some of these by-
products can help us reduce CO2 emissions. We have found ways to produce
more with less - ways which can reduce our costs and also reduce the
intensity of quarrying and manufacturing activities associated with our
products - the basic definition of eco-efficiency.
We are proud of this report, in a sense prouder of this than the Agenda, as
that was a list of promises, but this report documents our first
implementation steps. We have used a succinct approach: each of five
working groups describes its issue, reminds you of what we promised in
2002, tells you about our progress since then, names our collaborators in
these efforts, and describes the metrics we will use to measure further
progress.
To keep this interim report short and readable, we have located background
material on our website
www.wbcsdcement.org. Please look there for more details.
A reminder: we are competing companies, which places limits on our abilities
to cooperate in some areas due to legal limits and commercial interests.
Despite this, we have produced agreed approaches to complex issues such as
CO2 and emissions measurement, and the assessment of impacts on local
communities and our workforce.
We wish to thank all of our many colleagues and collaborators for the hard
work that they put into the progress reported here.
Progress report
Available on WBCSD website: www.wbcsdcement.org
23
Quality firstShree is committed to provide products conforming to national standards and
meeting customer requirements to their satisfaction. ISO 9001-2000 was
implemented with a vision to realize our commitments and to continually
improve performance and effectiveness of quality management system by
setting and periodically reviewing quality objectives.
TransparencyWe believe that all stakeholders must be treated with integrity. Whether they are
our customers, shareholders, employees, or business associates; they must be
informed about our policies and business strategy for them to be able to
contribute effectively to our pursuit of sustainable development.
Corporate ResponsibilityAs a responsible organization, our welfare activities extend beyond the factory
and housing complex to the external community. Our intention is to carry the
communities along and protect environment in the areas we operate. We
understand the requirement to assess the needs of our stakeholder groups
and prioritize their needs and finally address the issues to their satisfaction.
Valuing IndividualsOur workforce is an invaluable asset for us. We recruit competent people and
retain them through a system of strong support and rewards and recognitions.
We are committed to safety and well-being of our workforce and their families.
Protecting EnvironmentBeing an energy intensive industry, we acknowledge the fact that there is direct
need to conserve our limited natural resources. Our effort is to look for
alternate raw material and fuel sources. We have taken several trials for the
agricultural waste as supplementary fuel in combination with Petcoke, which is
waste from the petroleum refinery. We are using fly ash, a waste from thermal
power plants, in an environment friendly manner.
We believe in
25
We appreciate that incorporating the aspirations of our stakeholders
in our business policies makes good business sense.
We work in consultation with
,,Though we have identified the above
stakeholders on preliminary basis, we are in the process of developing a procedure for reconfirming the same. Further, we have initiated dialogue with many of these stakeholders; we are presently in the process of developing a structured framework for engaging them more appropriately in future.
Stakeholder dialogueWe have been in regular consultation with our employees and trade unions
through various in-house meetings. Regulatory agencies are updated on our
operations through monthly reports submitted to them; visits by their officials
provide further opportunities for mutual consultation. Continuous feedback from
the customers is obtained through the quarterly customer satisfaction surveys.Presently, we are in the process of developing a comprehensive framework of
stakeholder consultation, through which we expect to engage all our stakeholders
more appropriately in future, with a view to use the outcomes of the consultation
process in our objective of continual improvement of our reporting strategy.Some of the key stakeholder groups from the local community were consulted in
the course of development of this report to map their perception of our
organization and their expectations from us. They were also apprised about this
reporting initiative; here are some of the glimpses of the feedback;
Our key stakeholders
Local communities
Employees
Shareholders
Customers
Trade unions
Media
Regulatory agencies
Contractors
Suppliers and
Capital providers
Stakeholders’ views
"As a part of the company
I would be interested in knowing
future plans of my company and
its strategy for sustainable
development."
“It is impressive to note that Shree is coming out in the public domain on its
non-financial reporting. This definitely would encourage other companies to
do so. This initiative would result in structured approach to sustainable
development.”
“I would like a copy of the report in
local language to understand what
company has in store for us, the
local community”.
“It is good that Shree is developing
such a report, which is much more
than just profit and loss account and
that too on public domain. Coming
on public domain means the
company is serious on its objective of
achieving sustainable development.
Company’s disclosure on its
production targets will help us in
planning our operations as bag
supplier.”
“From a shareholder’s perspective,
I feel that such a report will add to
the credibility of the organization
and will attract investors.”
,,Shree Cement Stakeholder
27
Society around us matters
We understand the growing and ever-demanding concern worldwide for environment stewardship and social responsibility of organizations to assure fundamental rights of workers and local community to ensure their health, safety and prosperity
Partnering with community
We strive for serving and satisfying
communities to the best of our
abilities through people - centric
focus in our policies. ,,
For many years Shree has been investing in society and nearby communities
in particular. We have been in the process of continuous dialogue with local
community and have regularly provided financial and in-kind assistance.
However, we recognize that an improved understanding of the local
community issues can help us to make our contributions to the local
community more effective, and therefore, as a proactive step in this direction,
we plan to initiate a systematic social impact assessment study.
We run a higher secondary school where education is imparted to children of
our staff members and villagers. In 2004-05, initiative was taken to extend the
school building which helped in improving the facilities for students.
The company has funded Masuda Panchayat Samity and other organizations
in village Masuda, Jetaran and Pali to facilitate delivery of water. Also, water
huts are provided in the plant vicinity for convenience of the travelers.
Approximately 1200 cattle were fostered in Gau-shalas (Cattle pen) funded by
Shree at village Andheri Deori during the drought period in the year 2003-04.
Khelies (trough) were provided at various locations in nearby village for
providing water to the cattle.
In the year 2004-05, total INR 1.9 million was contributed for national causes
as well as for upliftment of neighboring rural areas. Contributions were made
towards State Governor’s drought relief fund, cattle camps, Chief Minister’s
relief fund, water huts, etc.
We also contribute in various initiatives of Government but do not have any
specific policy on this subject. All our contributions are need based.
“Shree Cement Ltd. has been regularly providing financial
and in-kind assistance. We look forward to regularization
of this process through formation of joint committees,
involving villagers and employees of Shree.”
- Sarpanch of nearby village
29
Health on agenda
In the city of Beawar, children ward, generator, water cooling
system and air cooling systems have been provided in the Amrit
Kaur government hospital. ,,The company has initiated
conducting extensive
medical examinations for
staff, workers and
contractors on annual
basis and maintains a
comprehensive database
of medical examination
records to map the fitness
and health of each and
every employee in the
organization.
Total INR 8.1 million was
spent during 2004-05 on
employee healthcare.
Since last one decade, 4-5
day eye camps at plant premises have been conducted by our doctors regularly
for eye operations and regular eye checkups. In the year 2004-05, a total of 320
patients were treated for various eye problems and 94 cataract operations were
conducted. Remarkable feature of these camps is the extent to which Shree
employees and their family members extend their hospitality to the patients.
Elaborate arrangements are made for the patients by Shree and they are provided
with free boarding, lodging, medicines, spectacles, etc.
General medical facilities are available to the villagers in the region through our 24-
hour dispensary, equipped with X-ray machine, ECG, cardiac monitor and
pathological laboratory. Ambulance fitted with modern facilities was also donated
at Sant Parmanand Hospital, Delhi. Contribution of Rs. 2 lacs has been made to
Heart Care Foundation of India to fight against Tobacco.
“We didn’t have access to basic healthcare in the region and had to travel to Beawar for seeking treatment. Shree Cement’s health centre came as a blessing to all of us and now we don’t have to travel to Beawar and can get medicines from here itself.”
- Local villager
“We are working in healthy workplace where
tobacco is prohibited. Heavy fine is imposed if
any person is found consuming tobacco
products.”
An employee
Social performance
Non discrimination at workplace
Protect Human Rights
‘No’ to Child Labour
Support employment of disabled
Freedom of association
Protect labour rights
Employees’ grievance redressal
Ensure workplace safety
Healthcare facilities
Create awareness on HIV / AIDS
Deliver value to customers,,
Opportunity in diversity
Our definition of ‘diversity’ goes beyond the regional boundaries to address
cultural backgrounds, age, gender and disability. To retain top talent, we have
fostered a culture that embraces diversity. Heads of prominent business
houses across India with varied professional backgrounds are represented on
the Board of Shree.
Child labour
We do not employ child labour in our operations. We have a defined
screening procedure to prevent the use of child labour. Every Shree employee
is above 18 years of age, the youngest one being 20 years. We have initiated
this monitoring system in selection of our suppliers and contractors as well.
Non discrimination
We have clearly defined policies against workplace discrimination and
harassment, and discourage any form of forced labour. Neither the employees
are paid less than the legal minimum, nor are they bound to work more than
48 hours in a week. We have initiated work on these issues with our
contractors and suppliers and intend to report the progress next year.
Respecting people’s rights
We are sensitive to the need to respect and support human rights and aim to
ensure that we act responsibly to protect the rights of our employees,
contractors and communities.
We believe that they have a stake in the economic prosperity that they have
helped us to generate. Our human rights policies are in line with the
requirements of Universal Declaration of Human Rights - United Nations and
the Fundamental Human Rights Conventions of the ILO.
Freedom of association
We have three unions in the plant and 100% of our workers are members of
one of the three unions, which are involved in negotiations on employee
conditions. Ever since our plant started operation, not a single day has been
lost due to labour unrest. A major reason is attributable to the transparent
communication policy between management and employees.
31
Social performance
Spiritual upliftment
A magnificent Hanuman Ji temple, surrounded by beautiful garden, was
constructed in the plant vicinity in the year 2000 attracting visitors from nearby
localities. 2-3 days function marking the anniversary of the temple is organised each
year at the temple premises where renowned singers and classical dancers perform.
Our respect to the disabled
We encourage and support the employment of disabled people in our operations.
Total of seven people with various forms of disabilities are working with us.
Grievance redressal
All the employees have access to a grievance registry system, wherein they can
directly hand over their grievance letter to the immediate senior. If their grievance is
not addressed at this level, they can approach the respective Head of Department.
In addition to this, they also have direct access to the senior management.
Increasing employability
Workers are encouraged for training in multi-skilled jobs and are often provided with
opportunities to go for courses conducted by Industrial Training Institutes. During
the period of industrial recession in the late 90’s, the Company faced the problem of
surplus workers, but was able to optimally utilize the surplus strength due to
development of multi-skilled workforce.
Expanding knowledge base
We recognise that in today's business
environment, the most important
resource is knowledge and we
believe that “Knowledge is power.,,
Effective knowledge management at Shree is facilitated through establishment
of effective processes and technology to collect, organize and disseminate
knowledge to the target groups. Training programmes are conducted on a
regular basis, because we realize that training is the principle insurance
against intellectual obsolescence. Department heads organize their own
training programmes according to the training needs and specific relevance of
skills in their respective departments. The training priorities are classified into
four broad areas: technical, safety and health, environmental and behavioral.
Workers are encouraged to be trained in multi-skilled jobs and are often
provided with opportunities to go for courses conducted by Industrial Training
Institutes.
We regularly take summer trainees from prestigious institutes like IIMs, IITs,
MDI, etc. While the trainees benefit from practical knowledge and wisdom
bank of our people, the Company gains fresh insight and an outsider view of
where the Company stands.
Apart from this, all the employees have access to computer trainings
conducted by our IT department irrespective of their level.
The Senior Executives are sent to efficient cement plants outside India. They
also attend international seminars and workshops for optimization of
operations, efficient use of alternate fuels, raw mix design, energy
conservation. The total expenditure incurred during 2004-05 on such activities
was INR 1 million.
2002-03
Tra
inin
g M
an
-ho
urs
Executives
Workman (includingcontract workman)
Average training hours
Training man-hours
2003-04 2004-05
6.7
14.5
10.6 10.6
22.9
31.7
16.515.1
24.4
33
Generating ideasat all levels
For our Bangur Cement Plant, the management invited suggestions from all the Heads of Department in order to
assess and optimize the available human resources for the activity.,,
To encourage ideas and novel thinking among our employees, we have
started an innovative suggestion scheme titled "Jo Soche Woh Paave",
which has encouraged employee participation on improvements of
processes and practices. Good ideas are rewarded appropriately. Over
the years, our biggest achievement has been the enhanced motivation of
our team, which has resulted in higher productivity and profitability. Some
of the key suggestions generated through this scheme in last year:
Removal of insulation from preheater resulted in energy saving &
reduced water consumption.
One of our contract laborers suggested the repair of water tap near
Unit 2, which was resulting in water losses up to 120 liters/day.
Gas Conditioning Tower screw conveyor was modified as suggested
by one of our Senior Engineers to avoid spillage of wet material and
jamming of chute.
Among best employers
Shree Cement makes its mark in the
Top 50 Companies in India who are
Best Employers ,,Survey carried out by
Hewitt Associates (2003-04)
Human Resource Policy
Honour individuality of every employee irrespective of caste, colour, creed,
place of origin, religion, faith and physical disability
Non-discrimination in recruitment and provide an equal employment
opportunity to the physically disabled wherever possible
Treat instances of sexual harassment within the organization with the
seriousness that it deserves
Provide ample opportunities for employees to develop
Forbid individuals below 18 years of age to work
Honour statutes in letter and spirit and follow standard labour practices.
Make every employee accountable to the law of the land and follow the
same without any deviation
Follow safety and health, quality, environment, energy and such other
policies so framed by the management from time to time
Shree has appointed renowned human resource consultants to carry out a
manpower optimization study, to suggest improvements in effectiveness of
human resource programmes, design performance management system,
formulate performance-linked pay packages, define competencies and
prepare assessment programmes for its executives. Initiatives are taken to
upgrade competency of employees for their own growth as well as to meet
new challenges.
In our effort to assess our position as ‘Preferred Employer', we participated in
the ‘Best Employer’ survey for the third consecutive year conducted by Hewitt
Associates. We achieved a score of 83% in the parameter ‘employee
engagement' while the average best employer scored 78% in this parameter.
Shree is the only cement company to participate in this survey.
35
Providing a safe workplace
Bringing attitudinal change is a great challenge and we believe that it can be only achieved by our workforce if it is aware on
safety and health risks associated with the activities they perform.,,
We want our employees to work in a safe environment and work within rules and
procedures that facilitate their protection. Safety performance was highly
encouraging last year when not a single man-day was lost due to workplace
fatality. In 2004, there was one loss time injury of contract worker in power plant
resulting in loss of fifty nine man-days.
System to track accidents, and more importantly, the cause of such accidents,
has been established. These analyses are communicated to people during
safety awareness programmes. Whenever accidents occur, they are notified as
per provisions of Factories Act-1948, Mines Act-1952, and Workmen
Compensation Act-1923.
We feel that there is a scope for further improvement in our process of
addressing unsafe activities and behaviour and we are planning focused
initiatives to further strengthen the safety management system.
Safety as a culture
'Safety Day' is observed on the first day of every month, where oath to exercise
safety is taken by all the employees and contract laborers. Plant Head, HODs
and workers deliver lecture on safety issues to the audience. Doctors make
people aware of occupational health issues. Importance of the use of PPEs in
vulnerable areas like fuel handling, raw material handling and packing is
stressed upon.
Annual safety day is observed every year on the 4th of March, where poster,
slogan and speech competitions on safety issues are organized. Employees,
contract workers and children participate actively in these competitions.
Departments with excellent safety performances are awarded. Road Safety
Week was observed from 3-9th January this year, where awareness training by
Road Safety department was imparted. All the roads in the plant premises are
marked and road signs / glow signs have been provided.
Batch of 10-12 people working in the mines are imparted one week vocational
training every year on issues pertaining to use of mining equipments and safety
issues which are vital for mining operations like:
Precautions to be taken while drilling near bench edges, steep slopes and
overhead power lines
Danger associated with prime mover power in drill machines
Safe handling, transport and use of explosives
Safe handling of blasting tools, accessories and equipments
Precautions to be taken to avoid danger during blasting
Safety precaution and preventive measures
The plant is designed with built-in safety features in the form of safefail
instruments with an extensive system of trips and alarms. Other mechanical
safety hardware like pressure relief and safety valves are provided as further
backup, wherever appropriate. Both the instrumentation trips and alarms and
the relief valve system are tested regularly as per schedule during plant
operation. Faults are rectified on priority basis so as to provide a peak level
operational safety at all times.
Hazardous areas like HSD storage tank, coal yard, gunny bag godown, oil
storage barrel and gas cylinders storage rooms are classified as "no match
box" areas. All electrical fitting and installation like pumps and motors are of
flameproof type in hazardous areas. Equipment, pipelines, and storage tanks
are properly grounded. Appropriate Personal Protective Equipment (PPE) are
provided for the safety of the workforce.
There is a well-equipped instrumentation workshop, where the instruments,
installed in the plant are regularly tested and calibrated to avoid malfunctioning
that can create unsafe situations. Calibrations are done by independent parties.
Emergency plan and crisis management
We have a well-defined emergency plan and crisis management procedure,
duly endorsed by plant management, which includes immediate shutdown of
the plant section from Central Control Room or from site, if required. We have
appropriate public address system in case of emergency. Appropriate personal
protective equipment, fire fighting equipment are kept at right locations so that
these are easily accessible at the time of emergency.
HSE Committees
To nurture the safety culture, we have nominated
management representatives to facilitate the
process. Separate health and safety committees for
cement plant, mines and power plant have been
formulated comprising workers and management
representatives. The committee at cement plant
consists of 14 workers and 20 management
representatives, the one at power plant consists of
16 management representatives and at mines we
have 5 workers and 7 management representatives
in the committee. The key responsibilities of the
committees cover:
Creating safety awareness amongst all workers
Suggesting ways and means to avoid recurrence
of accidents
Discussing recommendations made in safety
audit reports and ways to implement them
Safety 20040: Fatal accidents1: Reportable injury
,,37
Our concern for HIV / AIDS
Our medical officers are creating awareness among employees and school
children on HIV / AIDS. Apart from this, we are primarily focusing on truck drivers
carrying our products, who are highly exposed to this threat. Awareness
programmes are conducted for them on a regular basis and we plan to extend these programmes in our communities as well.,,
We are concerned about the ever increasing spread of HIV within the
country, which is as diverse as the societal patterns between its different
regions, states and metropolitan areas. Tracking the epidemic and
implementing effective programmes pose a serious challenge.
The World Health Organization (WHO) recommends public–private
partnership to combat HIV / AIDS. Believing in this, we are committed to
create awareness on HIV / AIDS and its prevention, which we think could
be an appropriate starting point towards our contribution in combating HIV
/ AIDS.
Our present objectives include:
Create awareness on HIV / AIDS and its prevention among people
No discrimination in treatment of HIV / AIDS infected patient in the Company’s Dispensary
Delivering value to customers
While cement may be purchased in
an instant, its quality must survive
generations ,,
On one hand, we seek to strengthen existing customer relationships, and on
the other, develop new ones. There is a process to gather information on our
customers’ requirements and we strive to meet customer expectations by
designing and delivering innovative products. ‘Shree Ultra Red Oxide’, which is
a corrosion resistant cement, has emerged as one of the leading brands in the
market.
Product quality is a critical parameter for achieving customer satisfaction. As
part of our efforts to satisfy our customers, we conduct customer satisfaction
surveys quarterly, which help us in better understanding and meeting their
needs. Surveys are carried out in all our major markets. Parameters evaluated
include overall product quality, strength, setting time, colour, fineness, weight
of bag, service provided by dealer, product information given by dealer and
address of complaints.
The outcomes of these surveys are used to identify and prioritize areas for
further improvement. On the basis of there, action plans to improve customer
satisfaction are drawn and implemented in relevant markets. This exercise
ensures that our products meet changing customer needs and expectations.
Quality Controlcertifies thequality
Manufacture
R&D;development
of product
Demandcommunicatedby Field Force
39
We believe inOur Green Journey Protecting People and Environment are among our key objectives. We
subscribe to the philosophy that industrialization is best cherished if
appropriate environmental balance is maintained.
41
Environmental Performance
Meeting the compliance requirements has always
been at the forefront of our priority and all our systems
strive at ensuring proper monitoring of the same. ,,
2002-03 2003-04 2004-05
SPM SO NO SPM SO NO SPM SO NO2 2 2 2 2 2
Station 1 390.00 10.68 15.54 248.63 6.13 8.40 250 7 10
Station 2 169.00 9.49 14.38 245.50 6.24 8.41 253 7 10
Station 3 212.00 9.92 14.81 162.00 6.04 8.55 206 6 9
Station 4 168.00 9.50 14.28 150.25 5.91 8.55 161 6 9
Station 5 385.00 10.66 15.46 250.00 6.28 8.45 254 7 10
Ambient air status in and3around plant (microgram/m )
No environment management programme can succeed if it is not accompanied by a
strong framework of appraisal. Our monitoring and measurement practices help
deviations to be identified and corrected as soon as they occur. The result is a safe,
consistent and predictable operational process.
We are involved in activities that are energy intensive and involve handling of dry
materials. The associated discharges include dust, greenhouse gases, NOx, SOx and
other fugitive emissions. We understand that any uncontrolled discharge of these
pollutants could impact the environment and also affect the production cost. Our
dedicated team takes utmost care to ensure that the operating facilities are well-
designed, well-maintained and are in compliance with the applicable regulations.
We believe that ‘clean & green is profitable’, and in line with this theme, we have
implemented environmental management systems based on ISO 14001 and developed
our environment policy to ensure:
Clean, green and healthy environment
Efficient use of natural resources, energy, plant and equipment
Reduction in air emissions, noise, waste and greenhouse gases
Continual improvement in environment management
Compliance with relevant environmental legislations
As part of Environment Management system, 177 Environment Management
Programmes (EMPs) were completed and after implementation of Integrated
Management System (IMSs) from Oct-2003, 134 Improvement Management Programme
(IMP) have been completed till May 2005 in the areas of Quality, Environment,
Occupational Health & Safety system.
There have been no incidence of non-compliance, Rather in a few areas of
environmental management, our performance has exceeded the regulatory
requirements, which we take pride in sharing with our stakeholders.
3Stack emissions, SPM (milligram/Nm )
Year Raw Mill and Kiln Stack Coal Mill Stack Clinker Cooler Stack Cement Mill Stack
Unit-I Unit-II Unit-I Unit-II Unit-I Unit-II Unit-I Unit-II
2002-03 95.06 57.37 69.40 45.30 56.18 52.53 60.15 31.40
2003-04 77.37 53.60 51.38 33.08 38.40 42.49 31.87 26.55
2004-05 56.00 49.00 47.00 31.00 49.00 43.00 29.00 26.00
Emission reductionRoads in the plant premises and colony have been concreted. Fugitive emission
due to plying of trucks has reduced to a great extent after concreting these
roads. This initiative is not limited to plant premises; we have also constructed
4.2 km bituminous concrete road from National Highway (NH-8) to state
highway, which reduced the distance by several kilometers for trucks carrying
materials, thereby offering opportunities of reduction of fugitive dust, as well as
other pollutants from reduction in fuel consumption.
Covered Conveying Belts
We have a system of monitoring SPM emissions regularly and the data is
shared with local regulatory authorities. These measurements are used in
drawing maintenance plan for the air pollution control devices.
Covered Clinker Yard
Fugitive emissions are of concern due
to the nature of activities we perform.
Sources of fugitive emissions include
conveyor belts, raw material and fly
ash handling area. To control fugitive
emissions, most of the conveyor belts
have been covered and various dust
collectors have been installed at
transfer points in the belts to capture
dust generated during its journey from
one belt to the other.,,
Data depicts the emissions from cement manufacturing only and not that of CPP
Atmospheric emission - SPM
0.27
0.26
0.24
2002-03 2003-04 2004-05
kg
/to
no
fcli
nk
er
We have initiated monitoring of SOx and NOx from our kilns recently and intend
to report on the same from next year.
43
Our commitment tofight climate change
Carbon dioxide emissions primarily take place from the calcination process,
through burning fuels in the cement kilns, and also from burning of fuel at CPP.
Purchase of electricity from state grid contributes to indirect carbon dioxide
emissions. We have started inventorising these direct and indirect carbon dioxide
emissions and have taken initiatives that help us in reducing overall CO load. 2
We started manufacturing blended cement using fly ash with 21.26% and have
reached upto 34% flyash blending now. The flyash required for this purpose is
collected and transported from Kota and Suratgarh Thermal Power plants. We are
conducting trials on various biomass fuels, such as wood chips, agricultural waste,
etc. for firing the kilns that would help us lower our gross CO emissions.2
Specific gross direct CO emission2
2002-03 2003-04 2004-05
ton
/to
n o
f ce
me
nt
0.77
0.72
0.73
We propose to use up to 250 tons per day of biomass for pyro-
processing in both the cement units by the end of the year 2005,
which would cater to around 13-15% of the total process heat
requirements of our units. We also plan to use tyres and municipal
waste to fire the kilns.
Alternate fuel
,,Flyash utilisation
0.084
0.1240.132
80.67
80.05
84.35
0.000
0.020
0.040
0.060
0.080
0.100
0.120
0.140
2002-03 2003-04 2004-05
Fly
ash
uti
lisati
on
,to
n/t
on
of
cem
en
t
50.00
55.00
60.00
65.00
70.00
75.00
80.00
85.00
90.00
%o
fcli
nker
incem
en
t
Fly Ash Clinker factor
Absolute gross direct & indirect CO2 emission
2
2115190
2042679
2186600
219919831950000
2000000
2050000
2100000
2150000
2200000
2002-03 2003-04 2004-05
ton
/ye
ar
0
20000
40000
60000
80000
ton
/ye
ar
Absolute gross direct CO2 Absolute gross indirect CO2
110027
Clean Development Mechanism This is one of the opportunities presented by the “flexibility mechanisms” of
the Kyoto Protocol, which permit industrialized countries to reach emission
reduction targets procuring carbon credits, generated by projects in
developing countries. We are exploring the possibility to tap this opportunity
through three of our environmental improvement projects.
These projects would not only reduce greenhouse emissions from our
facilities and improve production, but would also generate additional
revenue. By utilizing biomass fuels in place of Petcoke to meet 13 to 15% of
thermal energy requirement in our kilns, we would facilitate approximately
100,000 ton CO emission reduction per annum. Our flyash blending project 2
is expected to significantly reduce our thermal energy consumption and
would generate approximately 50,000 ton of CO emission reduction per 2
annum.
The proposed project of waste heat recovery from preheater to generate
power would replace the power generated by our CPP and is further
expected to achieve 50,000 ton of CO emission reduction.2
All these projects together give us an opportunity for generating about
200,000 saleable credits per annum. Participation in this initiative presents a
significant opportunity for us to contribute to the global greenhouse
mitigation initiative, given the fact that the Protocol came into effect from
16th February, 2005.
45
We are shifting away from resource intensive model to an increased operational
efficiency model. Our research and development (R&D) lab is continuously working to
find out the alternative raw materials / fuels and measures to reduce electrical energy
consumption to and thereby the environmental impacts.
Trend in R&D expenditures & percentages of turnover is given alongside.
Limestone is the principal raw material and others include mill scale (waste from iron
industry)/iron oxide, gypsum & pozzolonic materials such as fly ash. Through
utilization of high-grade limestone from our mines located at Ras and continuous raw
mix optimization we have stopped procurement of high-grade limestone from other
mines located in far-off distances.
Our reliance on fossil fuels has reduced drastically due to use of petcoke in cement
plant and captive power plant, Due to the use of petcoke, the fuel consumption is only
10.96% (10.96 kg of coke/100 kg of clinker), which is much below the national level of
15%. This has resulted in reduced cost of cement production due to lower prices of
petcoke compared to coal. Also it has resulted in lesser transportation compared to
coal usage, thus reducing greenhoue. Continuous increase in the production of
blended cement over the last four years has further reduced the consumption of raw
materials and fuel.
We have adopted total lubrication system which has resulted in reduction in
consumption of lubricants, use of waste oil in different equipments after treatment.
Continuous increase in production of blended cement
Continuous reduction in our SPM emissions from cement manufacturing process
Continuing efforts to establish the use of biomass for pyro-processing
Various measures adopted for rain water harvesting
Utilisation of low-grade limestone present in overburden
Limestone (Captive mines)
Highgrade Limestone
0.85
0.37
0.80
0.37
1.06
0.10
ton
/to
no
fce
me
nt
2002-03 2003-04 2004-05
Limestone consumption
193.62245.31
207.39
0.29
0.40
0.33
0
50
100
150
200
250
300
2002-03 2003-04 2004-05
INR
,la
kh
0.25
0.27
0.29
0.31
0.33
0.35
0.37
0.39
0.41%
of
turn
ov
er
Expenditure on R&D
Resource productivity
Thermal energy contributes nearly half of the energy cost in a cement plant. The major consumption is the fuel used in the kiln. Electrical energy is consumed mainly for operating crushers, mills and various fans.
Energy footprint
,,Being an energy intensive industry, we continuously seek opportunities in
energy conservation. Our emphasis is on minimization of energy
consumption in our processes by setting targets, making consistent efforts
towards modernization of plant / machinery and optimization of process
parameters in various sections of the plant. Energy conservation cell was
set up in the year 1989 and was restructured in the year 1997. Due to
continuous efforts of this cell the electrical energy consumption of 114
kWh/ton cement in the year 1989-90 has reduced to 75.17 kWh/ton in the
current year 2004-05. The heat consumption from 690 kcal/kg Clinker in 02-
03 has increased to 747 kcal/kg Clinker in 03-04 and is maintained at the
same level in 04-05. We are in the process of optimization of cyclone
feeding points for better heat exchange, which will result in reduction in
thermal energy. This cell continuously monitors the energy consumption at
different sections in cement plant, identifies and implements latest
technologies and carries out heat-mass balance calculations and internal
energy audits.
Setting energyconsumption targets
Optimisation of rawmix
Prevention of idlerunning of equipment
Preventive maintenance
Minimizing falseair ingress into kiln,
cooler and mills
Regular monitoring and calibration
Energy efficiency of process
Electrical energy (kWh/t cement)
Thermal energy (kcal/kg clinker)
2002-03
75.72
690
2003-04
76.87
747
2004-05
75.17
747
47
Water - an invaluable resource
Water is used for cooling,
besides potable and
sanitation purposes, in
cement industry. Treated
water from our Sewage
Treatment Plant (STP) is
used for dust suppression
on haulage roads and raw
material handling areas
and for plantation
purposes. Cooling water
refuse from GCT and
motors is totally recycled with marginal quantity of topping water, which is added to
maintain the quantity. Automated water spraying in place of spraying water through
nozzles has resulted in lower water consumption at GCT. Our water consumption in
this year has been as follows:
Further, we are planning to carry out detailed water audit in 2005-06. Based on the
outcome, we intend to take up further water conservation measures, which are
expected to bring down our water consumption in our operations in coming years.
Ground water recharging is considered an important means to conserve this
precious resource and under the rainwater harvesting programme, we have
constructed twelve earthen dams and masonry check dams at various locations in
plant, mines and colony. We have adopted roof water harvesting in the roofs of
staff quarters as a part of our contribution in this direction.
To provide sufficient and safe water to people and plant
as well as to conserve water, we are committed to
efficient water management practices, viz.
Develop means & methods for water harvesting
Treatment of waste discharge water for reuse
Educate people for effective utilization &
conservation of water
Water audit & regular monitoring of water
consumption
Water adds value to people & organization, conserve it intelligently
3Location m (x 1000)
Industrial 807
Power Plant 1264
Domestic 368
Mines 61
Shree Cement has developed a water policy which is
a unique feature in India.
Water policy
Waste management We subscribe to the concept of industrial ecology wherein waste of one
industry becomes raw material and / or fuel for the other. We have tried
various alternative materials such as;
Mill Scale in place of Iron ore
Flyash as a pozzolonic material
Petcoke in place of conventional coal
Treated sewage water for plantation and cement plant and sludge as
manure
The table here shows the approximate quantities of wastes and their
destination.
Waste (2004-05) Destination
40,515 ton boiler ash Used in cement plantfrom power plant
6,935 ton bed ash Used in cement plantfrom power plant
0.197 million ton overburden Disposed off in waste dump yardgenerated by mining activity (Sheopura Keshopura Mines)
14,840 kg solid waste from Used as fertilizer in plantationSewage Treatment Plant (STP)
383,906 m waste water from STP Used for plantation & cement plant
344,952 m waste water Used for spray in mine roads, from power plant coal yard and raw material
yard after neutralization
335.26 m used lubricating oil Waste oil is recycled and used instacker reclaimer chain.
0.34 ton of biomedical waste Sent to Govt. hospital, Beawarfrom the dispensary
9.64 ton of used batteries Disposed off through dealersauthorized by Ministry of Environment & Forests (MoEF)
To reduce the adverse impacts of quarrying, we have adopted
innovative land use methods for the depleted quarries. Our
quarries are divided into two zones, viz. eastern and western
zones. Two areas have been excavated in each of these zones
up to 509 MSL. Pits formed due to excavation are utilized for
storage of rain water. This stored rain water is fully utilized for
spray on haul roads, crushers and for sanitation purposes in
mining area. These areas have further scope for excavation in
future as per the mining plan approved by government.
Plantation of trees has been carried out on the overburden 2produced due to our mining activity. Total 380,000 m of
overburden area has been planted. Further, we plan to plant
800 more trees during the course of next one year. The fact is
to be appreciated that planting trees and ensuring their
survival in this rocky terrain is a daunting task.
Also, we have started utilizing the low grade limestone present
in this overburden for cement manufacturing and plan to
increase the usage in future.
Shock tube detonators are used for mining purpose which
reduce vibration, noise and fragment of rock flying due to our
mining activity. Eco-friendly Rock Breakers are also in use
partially for primary excavation and fully for secondary
breaking .
Reducing ourecological footprint
49
Greening the desertSince 1985 till date, the company has planted a total of 168,644 trees, in
cement plant, mines, CPP and colony covering an area of 119.8 hectares.
Within the premises, we have developed beautiful Vrindavan garden with a
number of trees and flowering plants.
Going beyond the factory premises, we have done extensive plantation on the
sand dunes at Pushkar, a place of historic importance, for conservation of soil
and prevention of villagers from dust pollution. Plantation has also been carried
out in the rocky area near Pushkar.
,,Over the years, about 25,000
saplings have been distributed in
the neighboring villages in order to
improve the environmental quality
in surrounding areas of the factory.
51
We believe that an organization achieves economic success when it satisfies all its stakeholders by being profitable and a socially responsible corporate citizen.
Financial sustainability is the fundamental precondition for a company's existence in a free market environment. This means that Shree Cement must have, as its objective, not only making a profit in order to survive competitively but also increasing the value of their operations. Profit generation is the prerequisite for paying suppliers, employees and taxes. It is needed for financing the capital invested in the business, which was provided by lenders and shareholders. Without profit, a company eats up its substance – machinery cannot be replaced, development of new products stops, and good people can’t be compensated what they deserve. But, even if a business is profitable, it might still destroy value – meaning that it can’t satisfy the return expectations of its shareholders. The consequence is that shareholders withdraw their capital, and without money any company must die.
Shree Cement is strictly committed to the objective of value creation to ensure its sustainable development and ensure the potential for its further growth. Operational, commercial, investment and strategic decisions are taken and implemented in accordance with this objective.
Financial Sustainability
53
We have presented our financial
performance in our annual report,
but we also have economic impacts
that are not addressed in that
report, such as our contribution to
communities in which we operate,
investment on non-core business
expenses, subsidies, donations, etc.,,
Payment for Community development 5.7
Contribution to Exchequer:Excise Duty: 969.1Sales tax: 461.4Others: 291.2
Figures in INR millions
Interest paymentto Lenders : 198.27
Net Sales : 5820.77
Payment for goods and Servicesto Suppliers : 1551.1
Dividend to Shareholders :139.4
Payroll and benefits toHuman Resources: 263.9
Economic Performance-2004-05 At A Glance
Financial Performance Highlights 2004-05 2003-04 Change
Net Sales 5820.77 4732.30 23%
Operating Profit (EBIDTA) 1739.27 1323.67 31%
Cash Earnings Per Share 43.53 26.83 62%
Paid up Equity Capital 348.37 348.37 ---
Net Worth 2894.89 2513.83 15%
Dividend (%) 40% 30% 33%
Return on Capital Employed(%) 29.30% 22.28% 32%
Debt Equity Ratio 0.80 0.92 ---
INR Million
Indirect economic impact
The organization’s indirect economic impacts identify major externalities
associated with the reporting organization’s products and services: Though we
have not made any attempt to map and value these economic externalities, we
recognize that by virtue of the nature of our operations there are several
economic externalities. We have created a housing colony and other allied
infrastructure, which have several redistribution and other benefits, such as
health centre, recreation facilities, etc.
Although there is no established methodology to capture indirect impacts,
there are several institutions and organizations in and around Shree Cement
that are supported by the Cement Company both in terms of providing skilled
manpower (employees as members, executives and directors), sourcing goods
and services and also financial support. These organizations employ hundreds
of people who are indirectly benefited by the organization’s products and
services.
In this section we have focused on the
initiatives that showcase impacts of our
activities, both direct and indirect, on our
stakeholders. The emphasis here is on
how the socio-economic status of the
stakeholders changes as a consequence
of our activities.,, I had just finished my Bachelors Degree when Shree Cement started its activities in the region. I was trying to establish my business and met with the top management of Shree. I could not trust my ears when Shree showed faith in me and helped me financially to set up my spare parts factory. Today, I am regular supplier of spare parts to Shree
- Standard Alloys
,,55
Economic Performance 2004-05
Net sales stood at INR
5820.77 million which is
23.0% higher than that of
last year. Other operating
revenues were INR 40.9
million, compared to INR
13.8 million in the year
2003-04
Net sales
Contracts and payments
We are prompt in delivering the payments and our suppliers and contractors
share excellent relationship with us. All the contracts are paid as per the agreed
terms.
We have launched Vendor Relationship Management, wherein we work with
vendors as business partners. This initiative has resulted in stronger
commitments leading to improvement in quality and overall cost.
Geographic breakdown of markets (%)
Rajasthan : 28.7
Delhi : 19.51
Haryana : 23.9
Punjab : 11.51
Uttar Pradesh : 11.67
Uttaranchal : 2.65
Others : 1.99
Net Cement Sales, INR in million6000
5600
5200
4800
4400
FY 2002-03 -FY 2003 04 -FY 2004 05
4556.85
4732.30
5820.77
Net Cement Sales, INR in million
We started our company with the vision to sell any product in the North East region (the name Oosypine refers to Opportunity Of Selling Your Product In North East). Just then Shree set up cement factory in the region. We got initial financial support from Shree to start our HDPE and PPE bag manufacturing facility and today, we are catering to other industries as well. It is a cash rich company and we never had any problem with respect to payments. Only concern we have is that company is encouraging multi – supplier strategy, which makes us feel insecure even after this long association.
Oosypine Mar-Pak Limited.
,,
Shree commissioned an integrated online real time sales and distribution
module, which facilitated real-time access to all sales and distribution
activities. This has accelerated decision-making, thus strengthening the
company’s response to the dynamics of a competitive market place. Other
associated benefits include;
Less paper work
Optimised working with less manpower
Zero job duplication
Reduced transaction time and
Better customer satisfaction
We have also introduced an e-procurement system with a unique ‘Reverse-
Auction’ concept to make cost-effective procurements.
We value our shareholders
Total shareholder return reflects the gain delivered to the shareholders by
the Company. Direct gain is in the form of dividend received and indirect
gain is in the form of capital appreciation registered by the stock during the
financial year. Shree registered a sharp improvement in its total shareholder
return during FY 2004-05 (see graph), clearly indicating our commitment to
reward our shareholders.
On a relative comparison with peer group companies, value created for
shareholders by Shree Cement has been the highest.
e- savvy Shree
Comparison of TSR (%)and Market Return (%)
14.00
212.64
138.19
-12.46
84.05
15.96
TSR
Market
Return
02-03 03-04 04-05
260
160
60
-40
Share Price Comparison
Shree Gujarat ACC MadrasCement Ambuja Cement
Share price 142 301 262 8071.4.04
Share price 342 402 360 98031.3.05
Growth (%) 141 33 38 21
Market Cap 1191 7231 6453 1184(Rs. Crore)
Share Price Comparison
Shree Gujarat ACC MadrasCement Ambuja Cement
Share price 142 301 262 8071.4.04
Share price 342 402 360 98031.3.05
Growth (%) 141 33 38 21
Market Cap 1191 7231 6453 1184(Rs. Crore)
57
Return on capital employed
Return on capital employed increased
from 22.28 % in FY 2003-04 to 29.30 % in
FY 2004-05.
Return on capital employed (%)
FY 2002-03 FY 2003-04 FY 2004-05
0
10
20
30
22.28
FY 2002 -03 FY 2003 -04 FY 2004 -05
Non core business expenses,INR in million
1
-03 -04 -05
3
5
7
9
5.35.9
5.7
Non-core business expenses
We strive to create self dependent
communities and we have been investing
in this direction for decades now.
29.30
19.22
Satisfied Lenders The Company enjoys very high credit rating from its lenders. The
Company has never defaulted in its repayment commitments. It has fully
leveraged its high credit rating to its advantage, as is reflected in its
average interest cost of 6.89% as on 31st March 05, which is considered
highly competitive compared to present money market conditions.
Contributing to local economiesMost of the raw material and stores and spares requirement is sourced
from local suppliers and our efforts are on to develop more local suppliers
for critical spare parts. We have developed many vendors in and around
Beawar town particularly for spare parts and bags. Therefore, as much as
is possible and practical, we seek to contact with small, local vendors.
SubsidyThe Company has not received any subsidy from Government or its
agencies.
59
Teaming For Better Solutions
Innovative suggestions and involvement from our people have enabled us to improve our performance in resource conservation, environmental preservation and community welfare.,,
61
Roller press
Roller Press
Ball Mill-1
Ball Mill-2
One Roller Press for Two Ball Mills.
Roller Press
Ball Mill-1
Ball Mill-2
Roller press in cement mill is used for higher production, lower power
consumption and better quality of cement due to better distribution of
particle size. It was planned to install roller press for Cement Mill-1 at an
investment of approximately INR 6.0 million. After thorough investigation
at Shree R&D center, possibility was explored to use the crushed
material of Cement Mill-2 roller press for Cement Mill-1 also, and thereby
avoid this huge investment. It further resulted in reduction in specific
power consumption by 2.02 kWh/ton of cement and resulted in
increased output of mills by 28 TPH by maintaining same blain.
Results obtained during roller press material feeding in CM-1 was
highly encouraging.
Cement Mill-1 production rate increased from 140 to 162 tph, with
Blaine maintained at the higher level of 340 instead of earlier 320 2m /kg.
Cement mill-1 main drive kW reduced by ~200.( Folaphone control
level were at higher level.)
Roller press Roller press in cement mill is used for higher production, lower power
consumption and better quality of cement due to better distribution of particle
size. It was planned to install roller press for Cement Mill-1 at an investment of
approximately INR 6.0 million. After thorough investigation at Shree R&D center
possibility was explored to use the crushed material of Cement Mill-2 roller
press for Cement Mill-1 also, and thereby avoiding this huge investment. It
further resulted in reduction in specific power consumption by 2.02 kWh/ton of
cement and resulted in increased output of mills by 28 TPH by maintaining
same blain.
Results obtained during roller press material feeding in CM-1 was highly
encouraging.
Cement Mill-1 production rate increased from 140 to 162 tph, with Blaine
maintained at the higher level of 340 instead of earlier 320 m2/kg.
Cement mill-1 main drive kW reduced by ~200.( Folaphone control level
were at higher level.)
Electrostatic filter
Air intake with dry type filter
Incorporation of electrostatic air filter (ESF) in DG sets
Prior to the use of ESF, Shree cement was using conventional type air filters to
clean the air for burning of fuel, but these were not efficient, economically viable
and environment friendly. Shree took initiative in design modification and installed
new type of air filters called electrostatic air filters in DG sets (used for power
back-up), which has ultimately increased the efficiency of DG sets and resulted in
the increase in specific power generation, thereby reducing fuel consumption,
which in turn resulted in natural resource conservation and reduced CO2
emissions. These air filters have been utilized for the first time in DG sets to filter
the combustion air. All 10 DG sets have been provided with such ESPs in the year
2002-03.
180.0
172.8
7.2
3.50
3.64
0.14
0.4752
0.4562
0.0190
Measurements taken in the year 2002-03
Before existence of ESF
After installation of ESF
Saving / Gain
CO /hr/DG2
set
PowerGeneration(kWh/litre oil)
FuelConsumption(litres/hour)
Air intake with electrostatic filter
63
Waste heat utilisation
Preheating combustion air and boiler feed water using cooler exhaust
Clinker cooler, as the name suggests, is a device to bring down the
temperature of hot clinker coming out from kiln at 1450°C temperature to a
temperature of 100°C by use of atmospheric air. Recovered heat is
traditionally used in the kiln and preheater system as secondary air (at
temperature 1150°C) and tertiary air (at temperature 980°C). After utlising the
heat in kiln and preheater, hot gases are discharged into the atmosphere at
a temperature of 260-280°C.
Shree has utilized this potential and
partially captured this rejected heat
for preheating the combustion air
and boiler feed water for generating
of power at the 2.5 MW coal based
power plant. This has resulted in
savings of fossil fuel. I.e., coal, and
reduction of CO remissions 2 ,,
Waste heat recovery & installation of Triplet Cyclone
Waste heat utilisation
Preheating combustion air and boiler feed water using cooler exhaust
Clinker cooler, as the name suggests, is a device to bring down the
temperature of hot clinker coming out from kiln at 1450°C temperature to a
temperature of 100°C by use of atmospheric air. Recovered heat is
traditionally used in the kiln and preheater system as secondary air
(at temperature 1150°C) and tertiary air (at temperature 980°C). remaining hot
gases are discharged into the atmosphere at a temperature of 260-280°C.
Shree has utilized this potential and partially captured this rejected heat for
preheating the combustion air and boiler feed water for generating power at
the 2.5 MW coal based power plant. This has resulted in savings of fossil fuel.
i.e., coal, and reduction of CO2 emissions.
Efficient process
Triplet Cyclone
Pressure drop across top cyclones are higher when compared to other
cyclones. Therefore there is a chance of improving productivity by reducing
these pressure drops.
By installing triplet cyclone in top stage of both strings, a pressure drop
reduction of 35 mm WG is expected in each string, hence there is a potential
for either production increase or power saving. The present DP across top
stage of both strings are 130 and 135 mm WG respectively.
By installing triplet cyclone, pressure drop has reduced by 65% thereby
savings in power consumption.
Payback period is about 5 months.
Efficient process Triplet Cyclone
Pressure drop across top cyclones are higher when compared to other
cyclones. Therefore, there is a chance of improving productivity by reducing
these pressure drops.
By installing triplet cyclone in top stage of both strings, a pressure drop
reduction of 35 mm WG is expected in each string, hence there is a potential
for either production increase or power saving. The present DP across top
stage of both strings are 130 and 135 mm WG respectively.
By installing triplet cyclone, pressure drop has reduced by 65% thereby
savings in power consumption.
Payback period is about 5 months.
65
Ascent Groups Fifteen groups called ‘Ascent Groups’ consisting of 10-15 employees have
been formed. These groups have been formed to facilitate personality
development of the employees and to carry out community welfare
programmes. These groups have donated books, uniforms and fees for the
poor village students and planted trees at Lasadia village. They have
donated clothes in a school at Narpath Khera. These groups make regular
visits to house for old and dejected people at Beawar city. Fee was paid
for 100 poor students for the complete year at Jain Gurukul school.
Stationery was distributed to around 100 poor students at school in
Sheopura Ghata.
Emphasis of Ascent Group is on
developing communities and
employees by providing them with
training and enabling environment.,,67
Board of Directors
Shri B. G. Bangur - Executive Chairman
Shri H. M. Bangur - Managing Director
Shri R. L. Gaggar
Shri O. P. Setia
Shri R. S. Agarwal
Shri S. K. Somany
Dr. Abid Hussain
Dr. Y. K. Alagh
Shri M. K. Singhi - Executive Director
Management Team
Shri H. M. Bangur - Managing Director
Shri M. K. Singhi - Executive Director
Shri Ashok Bhandari - Chief Finance Officer
Shri Diwakar Payal - Sr. Vice President (Marketing)
Shri S. S. Jain - Sr. Vice President (Technical)
Shri H. C. Kabra - Sr. Vice President (Power Plant)
Shri S. M. Khira - Vice President (Technical)
SecretaryShri S. S. Khandelwal
Bankers
State Bank of Bikaner & Jaipur
State Bank of India
ICICI Bank Ltd.
IDBI Bank Ltd.
UTI Bank Ltd.
BNP Paribas
ING Vysya Bank Ltd.
Marketing ConsultantShri Alyque Padamsee
AuditorsM/s. B. R. Maheswari & Co., New Delhi
Cost Auditors
M/s. K. G. Goyal & Co., Jaipur
Internal Auditors
M/s. P. K. Ajmera & Co., Ahmedabad
CSR Assurance agency
M/s. Ernst & Young Private Limited
Registered Office and Works
Bangur Nagar, Beawar - 305 901, District Ajmer, Rajasthan
Phones 01462-228101-05, Fax: 228117-19
Website: www.shreecementltd.com
Corporate Office
21, Strand Road, Kolkata - 700 001
Phones: 033- 2220 9601-05, Fax: 22434226
Company Details
2.12, 2.16, 2.19
2.15
2.17
Not relevant since this is our first GRI based report
Not relevant as the Company does not have any joint venture, partially owned subsidiary, leased facility, outsourced operations within the reporting boundaries of this report
Not relevant since we have applied GRI principles in preparation of this report as indicated on page 11
Content Index Comment
Indicators not reported
Description of policy, procedures / management systems, and compliance mechanisms for consumer privacy
PR3 Indicator is not relevant to our products
Indicator No. Indicator Description Reason for omission of indicator
Indicator is not relevant as it is outside the scope of this report
Percentage of the weight of products sold
that is reclaimable at the end of the
products ’useful life and percentage that is
actually reclaimed
Indicator would be reported once LCA study
of cement being conducted by National
Council for Cement and Building Materials is
completed
EN4
EN6
EN9
EN13
EN14
EN15
Indirect energy use
Location and size of land owned, leased, or
managed in bio-diversity-rich habitats
Use and emissions of ozone-depleting
substances
Significant spills of chemicals, oils and fuels
Not reported since we have discontinued
the regular supply from the grid and
total electrical energy requirement is met
by CPP
Indicator is not relevant since we do not
operate in bio-diversity rich habitat
Indicator is not relevant for our operations
Indicator is not relevant for our operations
Indicator is not relevant for our operations
Significant environmental impacts of
principal products and services
SO2
PR1
PR2
Description of the policy, procedures/management systems, and compliance mechanisms for organisations and employees addressing bribery and corruption
Description of policy for preserving customer health and safety during use of products and services
Description of policy, procedures / management systems, and compliance mechanisms related to product information and labelling
Aim to report on this indicator in 2006
Indicator would be reported once LCA study of cement being conducted by National Council for Cement and Building Materials is completed
69
RED - OXIDERED - OXIDE
SHREE CEMENT LTD.Beawar, Rajasthan
REVIEWED UNAUDITED FINANCIAL RESULTSfor the Quarter and Nine Months ended on 31st December, 2005
5. The Depreciation for the year ended 31.03.2005 includes arrears of Notes :depreciation upto 31.03.04 amounting to Rs. 5429.12 lacs provided due to 1. The above results were taken on record at the meeting of the Board of change in policy for charging depreciation on fixed assets (other than Plant & Directors held on 17th January, 2006.Machinery of unit II) to written down value method as per rates specified 2. The Company is engaged mainly in the production of cement. The power under Income Tax Act, 1961 or Schedule XIV of the Companies Act, 1956, generated is for captive use only.whichever is higher.3. There were no investors’ complaints pending at the beginning of the quarter.
6. Deferred tax will be provided at the end of the year.The Company has received & resolved 9 investors’ complaints during the 7. Figures for previous period have been regrouped wherever necessary.current quarter. There is no outstanding investors’ complaint at the end of the
By order of the Boardquarter.Place : Kolkata (B. G. Bangur)4. The plant was shut down for a period of 18 days in the quarter for upgradation. Date : 17th January, 2006 Executive ChairmanMajor repair and refurbishment has been carried on Unit I & II amounting to
Rs. 1126.35 lacs which should lead to increase in productivitiy.
Please contact Mr. Ashok Bhandari for further details at e-mail : [email protected]
Visit us at : www.shreecementltd.com
(Rs. In Lacs)
Quarter Quarter Nine Months Nine Months Yearended ended PARTICULARS ended ended ended
31.12.2004 31.12.2005 31.12.2005 31.12.2004 31.03.2005(Reviewed) (Reviewed) (Reviewed) (Reviewed) (Audited)
13548.63 14428.51 Net Sales 44218.87 41869.50 58207.7043.78 71.10 Other Income 174.02 260.13 409.04
Total Expenditure(271.29) (352.98) a. (Increase)/Decrease in Stock (561.28) (319.05) 36.481681.59 1851.00 b. Consumption of Raw Materials 5643.51 5104.68 7214.90546.48 796.52 c. Staff Cost 2273.78 1661.49 2679.28
3550.81 2890.04 d. Power & Fuel 8964.74 10069.23 13845.522505.79 2358.68 e. Freight & Selling Expenses 7749.60 7331.61 10122.051588.35 2566.73 f. Other Expenditures (Refer Note 4) 6136.68 5117.44 7325.85
3990.68 4389.62 Profit Before Interest, Depreciation & Taxes 14185.86 13164.23 17392.66
465.26 334.27 Interest 1055.09 1508.46 1982.733525.42 4055.35 Gross Profit after Interest before Depreciation & Taxes 13130.77 11655.77 15409.931736.13 1226.61 Depreciation (Refer Note 5) 3679.83 5208.39 12296.45
1789.29 2828.74 Profit before Tax 9450.94 6447.38 3113.48Provision for Tax:
– 33.00 - Fringe Benefit Tax 80.18 – –140.30 – - Current Tax 238.90 505.55 244.14
– – - Deferred Tax (Refer Note 6) – – (37.25)
1648.99 2795.74 Profit after Tax 9131.86 5941.83 2906.59
3483.72 3483.72 Paid up Equity Share Capital (Face value Rs. 19 per share) 3483.72 3483.72 3483.72Reserves excluding Revaluation Reserves 25465.17
Earnings per share (Rs)-
9.72 11.55 Cash 36.78 32.01 43.53
4.73 8.03 Basic 26.21 17.06 8.34
Aggregate of non-promoter shareholding12,661,788 12,639,318 - Number of Shares 12,639,318 12,661,788 12,639,318
36.35% 36.28% - Percentage of shareholding 36.28% 36.35% 36.28%
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R. BHARGAVAAddl. General Manager (R&D)Shree Cement Limited,Bangur Nagar,Beawar-305 [email protected]
www.shreecementltd.com