ghg emissions in 4 energy intensive sme sectors

GHG Emissions in 4 energy intensive SME sectors

Experiences of using an GHG Energy tool to build the Greenhouse Gas inventory for SME sectors

November 2018

New Delhi • Palo Alto

1

Contents

1 Context and point of arrival ............................................................................................................... 3

1.1 Indian mitigation goals and role of the MSME sector ............................................................... 3

1.2 Developing a tool to capture the inventory of the MSME sector .............................................. 3

1.3 Attempts to increase prevalence of the tool ............................................................................. 3

2 At a glance: MSME clusters where the GHG Energy Assessment tool was piloted ........................... 5

2.1 Morbi- Cluster at a glance .......................................................................................................... 6

2.2 Rajkot- Cluster at a glance ......................................................................................................... 6

2.3 Ludhiana- Cluster at a glance ..................................................................................................... 7

2.4 Mandi Gobindgarh – Cluster at a glance .................................................................................... 7

3 Forging sector GHG footprint estimate for 2 clusters ....................................................................... 9

3.1 Profile of the sector ................................................................................................................... 9

3.2 Footprint of forging units in Rajkot .......................................................................................... 10

3.3 Footprint in Ludhiana ............................................................................................................... 11

3.4 Feedback of the GHG-Energy Assessment tool in Rajkot/Ludhiana ........................................ 12

4 Foundry sector GHG footprint estimate for a key cluster ............................................................... 14

4.1 Profile of the sector ................................................................................................................. 14

4.2 Footprint in Rajkot ................................................................................................................... 14

4.3 Footprint in Ludhiana ............................................................................................................... 15

4.4 Feedback of tool in Rajkot/Ludhiana ....................................................................................... 16

5 Ceramics sector GHG estimate for a key cluster ............................................................................. 18

5.1 Profile of the sector ................................................................................................................. 18

5.2 Footprint in Morbi .................................................................................................................... 19

5.3 Feedback of tool in Morbi ........................................................................................................ 20

6 Steel re - rolling ................................................................................................................................ 21

6.1 Steel re - rolling sector GHG estimate for a key cluster ........................................................... 21

6.2 Industry overview .................................................................................................................... 21

6.3 Footprint in Mandi ................................................................................................................... 25

6.4 Feedback of tool in Mandi ....................................................................................................... 25

7 Learnings and further development ................................................................................................ 26

2

7.1 Approaches for achieving scale – what did we learn? ............................................................. 26

7.2 Other considerations for further inventory development ...................................................... 27

7.3 Further development to enhance the GHG inventory ............................................................. 27

Annexure: Link to the Energy GHG Assessment Tool developed ............................................................ 29

Annexure: Outreach that was done to build the GHG ............................................................................. 30

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1 Context and point of arrival

1.1 Indian mitigation goals and role of the MSME sector

India, in its INDC submitted to UNFCCC, has committed to reduce the emissions intensity of its GDP by

33 to 35 percent by 2030 from 2005 level. Aside from increasing the renewable capacity in its energy

mix (175 GW by 2022), energy efficiency constitutes a major component of India’s mitigation strategy

to achieve its targets. India launched its flagship program for energy efficiency, the National Mission for

Enhanced Energy Efficiency, under its National Action Plan on Climate Change, to create a framework

for fostering innovative and sustainable business models to scale up energy efficiency.

The MSME sector forms the backbone of India’s industrial sector. It contributes to about 8%1 of India’s

GDP and over 45% of overall Industrial output. The total greenhouse gas emissions from manufacturing

industries are 300.62 million MMtCO per annum2, out of which the MSME sector is broadly projected

to contribute to around 135 MMtCO per annum3. Around 60 million people are employed in the SME

manufacturing sector thus any body of work feeding into building resilience for SMEs positively impacts

a large number of people directly and indirectly. However, even as on date, there is no consolidated

inventory of GHG emissions from the energy intensive small and medium industrial units in India.

1.2 Developing a tool to capture the inventory of the MSME sector

Working towards this goal, a report titled “2017 Energy-GHG Tracker: State Of Sector Of GHG Emission

Of Indian SMEs” was published was published by cKinetics. A GHG energy assessment tool was also

created with 3 objectives:

1. To benchmark and analyze the different operational level indicators of the SME sectors

2. To provide a self-auditing mechanism for the factory heads to understand their factories

better and track their growth

3. To create an active and updated GHG inventory for the SME sector of India

1.3 Attempts to increase prevalence of the tool

After the GHG energy assessment tool was developed in mid to late 2017, the following efforts were

made to propagate the tool:

Data collection (and tool dissemination) approach

Value proposition Timeline for testing the approach

Result

Approach 1: Tying up with industry associations to enable them with data.

• Value proposition for the association was that with the data they could make better representations to govt for support. Plus they get a

Oct 2017 – Apr 2018

Failed. No traction

1 http://dcmsme.gov.in/msme_pdf/MSME%20February-2016/index.html#p=24 2 Data for the year 2010. http://www.moef.gov.in/sites/default/files/indbur1.pdf 3Assuming 45% emissions are taking place from the MSME sector (pro-rata with Industrial output)

http://www.moef.gov.in/sites/default/files/indbur1.pdf

4

Data collection (and tool dissemination) approach

Value proposition Timeline for testing the approach

Result

complementary web tool on their site

• Value proposition for their members was that they get access to vendors, financial schemes and do not need to do audits

Approach 2: Organizing workshops with industry associations and disseminating the tool in the workshops

• Same as above

• Additionally, associations were being provide content for the workshops (which were meant to be educational for their members)

Apr 2018- Jul 2018

Limited traction. Associations unable to commit volume of attendees

Approach 3: Going direct to the units and working with associations to get referrals + finding local ‘evangelists’ Engaged 3 clusters

• Value proposition for the members of automated-audits and getting access to vendors and financial schemes

Aug 2018- Sep 2018

Partial success and possibility to scale; especially when clubbed with workshops

Approach 3 of going directly to the units was done in the following clusters: Rajkot, Morbi and

Ludhiana.

In context of the above, this report summarizes the following: 1. GHG inventory estimated for 3 energy intensive clusters with small units 2. Feedback on the GHG energy assessment tool, especially from Approach 3 3. Learnings for taking the tool to scale and building the inventory

5

2 At a glance: MSME clusters where the GHG Energy Assessment tool

was piloted

6

2.1 Morbi- Cluster at a glance

2.2 Rajkot- Cluster at a glance

• Products manufactured: Wall tiles, Floor tiles, Vitrified tiles, Polished glazed vitrified tiles, twin charged tiles,

multi-colored charged tiles in various formats starting from 20X30 cm to 120 X180 cm; sanitarywares, industrial

ceramics and technical ceramics

• No of units 800+ tiles manufacturing units (wall tiles 450, vitrified tiles 220, floor tiles 60 and sanitary ware 80)

manufacturing units in the cluster

• Production: 1600 Million square meters per annum

• Population: 960,329

• Industries: Ceramics, Wall Clocks, Compact Fluorescent Lamp (CFL)

• Employment: 37.04% of total population in Morbi (355,779) is skilled labour working in agricultural, industrial

and other semi-skilled industries.

• Active Industry Associations: Morbi Dhuva GlazeTiles Association, Morbi Ceramics Association, Gujarat Ceramic

Floor Tile Manufacturers Association

• Cluster turnover: INR 260 billion

• Industrial growth: 30% in 2016-17 (has slowed down in 2017-18)

Other key observations

• Tile manufacturing process is mostly automated, with the entire process running on conveyer belts with

minimum human intervention required. Sanitary ware on the other hand is a more labour intensive process.

• Due to fluctuating price of natural gas, a lot of factories have coal gasifiers in-house to produce coal gas and use

that as fuel for kiln.

• Primary products manufactured: Automobile parts (foundry items, forging, bearing), Machine tools, CNC Machine,

Machinery, Pump set, Agro products, Ceramic Products.

• No. of units ~1200 (1000 foundry units and 200 forging units)

• Turnover ~50 billion INR

• Production: 1,034,211 tons per annum

• Population: 3,799,770

• Industries: Foundries, Forging, Plastic Industry, Diesel Engines, Machine tools

• Employment: 6.5% of total population in Rajkot (248,220) is skilled labour working in small, medium and large

scale industry.

• Active Industry Associations: Rajkot Engineering Association, Aji GIDC Industrial Association, Machine tools

manufacturing association, Shapar Veraval Industrial Association, The Institute of Indian Foundrymen,

• Industrial growth: 15% in 2014-15


• A local cupola design called “Rajkot Cupola” is popular in the cluster.

• Although there is a good prevalence of induction furnaces, not all units are separately monitoring the energy

performance of their induction furnaces

• Best practices like keeping the crucible lids closed while melting operation, adoption of energy efficient motors etc.

are not widely prevalent in the cluster

7

2.3 Ludhiana- Cluster at a glance

2.4 Mandi Gobindgarh – Cluster at a glance

Ludhiana- Cluster at a glance

• Primary products manufactured: Agricultural implements, Machine tools

• No of units: 600

• Turnover: INR 9 Billion

• Production: 1,731,428 tons per annum

• Population: 1,620,000

• Industries: Foundry, Forging, Textiles

• Employment: 25.6% of total population in Rajkot (415,573) is skilled labour working in small, medium and large

scale industry.

• Active Industry Associations: Ludhiana Foundry Cluster, The Institute of Indian Foundrymen


• The Ludhiana cluster produces mainly SG Iron castings and Cast Iron castings.

• The Ludhiana cluster mainly has conventional style furnaces running on coal and oil.

• Most commonly used type of furnace: Pusher furnace

• Type of raw materials: Steel Ingots, Billets, Blooms, Scrap from Ship breaking, Imported scrap

• Source of raw materials: Procured from open market, ship-breaking scrap is procured from Gujarat

• Major products manufactured: Rounds, Squares, TMT bars

• Nature of operations: Mostly manual or semi-automated

• Cost of electricity: INR 7.55 per unit

• Types of coal used: Imported from US through traders, procured from Local market, Steel grade coal

procured from Coal India Ltd.

• Cost of coal: INR 9000 to 14000 per tonne

• Previous Interventions: 15-20 units have participated in UNDP’s programme titled “Removal of Barriers to

Energy Efficiency in the Steel Re-Rolling Mill Sector in India”. In addition there also has been participation of

units under MSME umbrella program of GIZ.

9

3 Forging sector GHG footprint estimate for 2 clusters Cluster Tons CO2e Number of units

Rajkot 17299 110

Ludhiana 41450 350

3.1 Profile of the sector

Indian forging industry has a total production of over 2.52 million MT per annum, with an overall

capacity of 3.89 million MT per annum.4 Over 70% of the total production in India is by closed-

die/impression-die forging, 15% is open-die forging and the rest is precision forging products.5

Geographically, the Indian forging industry is highly fragmented. The unorganized forging industries

occupy a relatively smaller share (30%) of the total production and majorly comprise of micro, small

and medium enterprises. These small and medium enterprises are either tier 3 or tier 4 component

manufacturers or cater to the replacement market.

Indian forging industry primarily caters to the automobile sector, with the auto sector accounting for

over 61% of the total forging production Automobile components like Gear box components, steering

parts, connecting rods, camshafts etc., earthmoving components like bucket tooth, track links, drill

bits, track roller shafts etc., machine tool components, electrical components etc . are produced.

Forging industry in India provides direct employment to over 95,000 people.

In spite of the adequate performance of the forging industry in India, the industry still faces the

problem of increased cost of forging quality steel, high energy consumption, inefficient economies of

scale and lack of overseas marketing support facilities. The poor research and development are also

adding pressure on the margins to meet local and global demands.

4 All India Forging Industry 53rd annual report 2017-2018 5 http://steelworld.com/focpot.pdf

10

3.1.1 Process flow chart of a hot forging unit

Forging is the process that involves shaping of metal using compressive forces. Raw material (billets) is

heated up to a temperature of 950 C till the metal is red hot using induction furnaces or fuel-fired

furnaces. It is then pressed in forging hammers and/or forging presses that give it the desired shape.

This is followed by subjecting the job to heat treatment. Heat treatment may or may not be carried in-

house depending on the scale of operation of the unit. Heating accounts for a major share of energy

consumption (around 80-85%).6

3.2 Footprint of forging units in Rajkot

Rajkot is the third largest city of Gujarat. It is an industrial city with close to 200 forging units present in

and around Rajkot. Rajkot is surrounded by industrial areas like Shapar Industrial Area, Aji Industrial

Area, Metoda Industrial Area, Lodhika Industrial Area and Bhakti Nagar Industrial Area. The forging

6 https://www.sidbi.in/files/Cluster%20Profile%20Report%20-%20Pune%20%28Forging%29%20Cluster.pdf

Raw material

Cutting

Heating- furnace

Forging/trimming

Cooling

Heat treatment

Shot blasting

Inspection

Die Shop

Preparation of die Electricity

Electricity

Electricity

or fuel

Fuel: NG/Furnace oil

Or

Electricity

Electricity

Electricity

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units in Rajkot produce super precision units for the automobile and machine industry. The forging

industry is majorly divided into closed die and ring rolling industries in Rajkot.

3.3 Footprint in Ludhiana

Ludhiana is called the industrial capital of Punjab. The city has multiple industries in and around it. The

city has at least 500 forging units which have the presence of large as well as medium and small units.

The forging units can have in house heat treatment. The forging industry’s carbon emissions vary

greatly with the level of mechanization and the type of furnace being used. The forging units major

fuel intake was oil and the variation in prices of oil in the international market influences the

production volume. The factory heads majorly use an oil fired heating unit for their factories. There is

an immense possibility for implementing best practices in the energy efficient projects since the

factories are using conventional methods of production.

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

Induction Oil Fired

CO2 released by forging in Rajkot (Tons)

CO2 released (Tons)

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3.4 Feedback of the GHG-Energy Assessment tool in Rajkot/Ludhiana

Units Visited Feedback received Easy to use Recommendations

4 3 100% Approximate cost of implementation of the energy efficient technologies.

The units found the tool easy to use. The unit heads would consider using the tool for the self-auditing

feature in the future.

0

5000

10000

15000

20000

25000

30000

35000

40000

Induction Oil fired

CO2 released by forging units in Ludhiana (Tons)

CO2 released (Tons)

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4 Foundry sector GHG footprint estimate for a key cluster Cluster Tons CO2e Number of units

Rajkot 98762 690

Ludhiana 90553 250


Indian foundry industry has a total production of over 10 million metric tons per annum, which is the

third highest in the world after China (46.2 million metric tons) and USA (11.9 million metric tons).7 The

casting industry of India manufactures castings for a wide range of applications like auto, pumps,

agriculture implements, machine tools, textiles, railways etc. The industry employs 2 million people, out

of which 0.5 million are directly employed and 1.5 million people are indirectly employed.8 The foundry

industry in India is geographically clustered. There are several foundry clusters in India. Some of the

major clusters include Howrah, Coimbatore, Rajkot, Kolhapur, Ahmedabad, Batala, Jalandhar, Ludhiana,

Belgaum, Shimoga, Agra, Hyderabad, Bangalore, and Vijayawada.

Primarily, two types of melting technologies are used in foundries: induction heating and cupola

furnace. Cupolas are only applicable for producing grey iron castings. Induction furnace, on the other

hand, can be used for producing castings of grey iron, SG Iron, steel etc.

4.2 Footprint in Rajkot

The foundry industry in Rajkot is flourishing currently. There are roughly 1000 foundries in and around

Rajkot with multiple small and medium sized industries. The raw material for the foundry industry has

become atleast 30% costlier over the previous year but the business has not slowed down because of

this issue. In fact new factories in this area are opening up. The new industries are focusing majorly on

an induction based furnace.

There is a strong presence of multiple associations in Rajkot. The Rajkot Engineering Association is one

of the oldest institutions for foundry industries and often holds conferences about technology

advancements in the field of foundry. There are multiple regional associations as well which function

well with the REA. The presence of a strong association framework in Rajkot has made a positive

impact on the industries.

7 As per the 49th Census of the World Casting Production 8 http://www.foundryinfo-india.org/profile_of_indian.aspx

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4.3 Footprint in Ludhiana

Ludhiana is the industrial capital of Punjab with the presence of foundry units. There are atleast 200-

250 foundries present in and around Ludhiana. The units are majorly cupola based and source coal from

Gujarat and Dhanbad which is low in ash content. The units were majorly small to medium sized.

Majority of the units used an interesting binder instead of silica, cow dung, which was locally abundant,

cheaper and sustainable.

A lack of association for the foundries of Ludhiana clearly reflected in the site visits. The units are

clueless about addressing their grievances to the right authority in the lack of an association. The units

were concerned about the GST implementation and the changes in the taxation system of the raw

material as well as the finished products.

There are many possibilities for introduction of best energy efficiency practices in Ludhiana. The units

in Ludhiana are using conventional methods of production and there is eagerness towards learning new

energy efficiency measures.

0

10000

20000

30000

40000

50000

60000

Cupola Induction Hybrid

CO2 released by foundries in Rajkot (Tons)

CO2 released (Tons)

16

4.4 Feedback of tool in Rajkot/Ludhiana

Units Visited Feedback received Easy to use Recommendations

18 8 100% • To introduce a variety of produced casting size. Some factories are producing from the range of less than 1 kg to 50 – 60 kg.

• To introduce an equipment list along with the vendor list to make the decision making process easier for the industry heads. A base price of every technology/equipment could be helpful for them to gauge the amount of investment required for the EE projects.

• To have a complaint section for problems they have with their factories, with the local as well as national governmental bodies and with the electricity boards. This would help us to understand the grassroots problems better.

The feedback on tool in Rajkot and Ludhiana was positive. The possibility to audit and get suggestions

on energy efficiency practices was the most liked feature.

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

Cupola Induction Hybrid

CO2 released by foundries in Ludhiana (Tons)

CO2 released (tons)

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5 Ceramics sector GHG estimate for a key cluster Cluster Tons CO2e Number of units

Morbi 317904 317


The ceramic industry comprises of ceramic tiles, sanitary ware and tableware. In India, the ceramic

industry falls in both the organized and un-organized sector. The unorganized sector has 53% share in

the total energy consumption of the ceramic industry.

The key characteristics of the different sub-categories of ceramic industry are as follows:

➢ Tiles: Indian tiles industry production is at 1600 Million sq.m per annum as of 2016. The share

of un-organized sector in the production of tiles is 65%. It is highly export oriented and

employment generating.

➢ Sanitary-ware: In the unorganized sector, around 250 companies produce basic sanitary-ware

under various brand names which are majorly concentrated in Gujarat. This concentration has

been due to low raw material costs and low overheads.

➢ Tableware: 50% of the tableware market is in the unorganized sector but the rate of market

growth has been slow. However, the size of the tableware market is relatively much smaller

than that of tiles and sanitary-ware.

Indian ceramics industry is the second highest in the world followed by China. In 2015-16, the industry

saw a growth of 20% with an investment of Rs. 5000 crore9. Morbi and Khurja are the two key clusters

for ceramic production in India. Out of the two, Morbi cluster accounts for 90% of the total ceramics

production of the country. It employs over 1.3 million people, out of which 350,000 people are directly

employed and others are indirectly employed in auxiliary area. It consists of a total of 635 units (370

wall tiles units, 125 vitrified tiles units, 60 floor tiles units and 80 sanitary ware units). Therefore, it has

been chosen as the cluster of focus for the ceramic industry in this study. Additionally, more than 85%

factories in Morbi region are tile manufacturing factories as also energy footprint of tiles is much higher

compared to sanitary-ware due to complexity of manufacturing process. Hence, our ground team

focused more on tile manufacturing factories.

9 Primary research carried out by cKinetics

19

5.1.1 Process flow chart for a ceramic tile unit

An illustrative process flow chart for a ceramics tiles unit is shown below.

5.2 Footprint in Morbi

The ceramics industry in Morbi produces over 70% of India’s tiles production. The city of Morbi is

competing directly with China for the exports of tiles to Gulf, Americas and Europe. There are

approximately 800 ceramic tiles units functioning in Morbi currently out of which 450 are wall tiles units

and 220 are vitrified tiles units.

The overview of the industry was quite positive as told by the president and the engineer of the Morbi

Ceramic Association. The industry has adopted various technological interventions to mitigate GHG

emissions and increase energy efficiency. The major problem of the industry is that they are only

Preparation of slurry in ball mills

Storage in agitation tanks

Spray drying

Pressing

Drying

Glazing

Firing

Polishing

Electricity

Electricity

Fuel: lignite Electricity

Electricity;

compressed air Fuel: coal gas or

natural gas- may be

used, otherwise

cooling air from kiln

is recovered

Highest energy

consuming step

Fuel: coal gas

or natural gas

Electricity

Electricity

20

allowed to use Pressurized Natural Gas (PNG) as fuel instead of coal or coal gas which is proving to be

costly for the ceramics units in Morbi. Their Chinese counterparts are using coal gas which helps them

to keep the price of their product lower than that of Morbi’s tiles. With the increasing prices of the PNG,

which has increased from 35 rs to 40 rs in the past year, their production has become unviable. Smaller

units are finding it difficult to compete with the bigger units in the area; and several facilities have shut

down.

5.3 Feedback of tool in Morbi

Units Visited Feedback received

Easy to use Recommendations

2 1 0% • The unit head did not find the tool easy to use and compatible for the ceramics business since the production and price varies a lot over the production cycle.

The association gave an overview of the whole cluster and had a look at the tool. The association was

positive about the uptake of energy efficient technologies in the Morbi cluster in the past few years.

The 2 unit heads agreed to the uptake of the energy efficient technologies but were more concerned

about the business being irregular due to the market and gas prices. The tool though helpful, is useful

only when the business is stable. The unit heads were positive that other unit heads would be

interested if there is a conference on the tool by next year.

0

20000

40000

60000

80000

100000

120000

Coal Fired LPG Fired Gas Fired Coal Fired Gas Fired

Wall tiles Wall tiles Wall tiles Vitrified Tiles Vitrified Tiles

CO2 released in Morbi (Tons)

CO2 released (Tons)

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6 Steel re - rolling

6.1 Steel re - rolling sector GHG estimate for a key cluster

Cluster Tons CO2e Number of units

Mandi Gobindgarh 1,003,180 275

6.2 Industry overview

Steel re-rolling industry falls under the secondary steel sector in India. The secondary steel production

constitutes approximately 55% of the total steel production in India10. 1526 (89%) units out of the

1710 steel re-rolling units in India, fall in the Small and Medium enterprises sector. The major Item of

production in the Steel re-rolling industry are Re-bars/TMT constituting 54% of the total production,

the other items being flats, squares, special window sections, thinner size HR strips, hexagons, wire

rods, angles, channels, H-beams, I-beams, tele-channels etc.

The steel re-rolling sector has capital employed to the tune of INR 46,615 Cr11. The annual production

capacity as on 2011-12 was 47 million tonnes against which the industry was found to be producing 32

million tonnes12.

Steel re-rolling mills (SRRM) usually are family-run small and medium enterprises (SMEs) whose value

proposition lies in flexibility in production for meeting low-tonnage requirements in various grades,

shapes and sizes to serve niche markets. The key customer industries being served by the steel re-

rolling sector are construction, infrastructure, automobiles, pipes and tubes, telecommunications etc.

The steel re-rolling industry caters to 68% of the domestic demand and has a share of 80% in the

exports of rounds and bars13 and thus constitutes a vital part of the steel industry in India.

Based on their hourly production capacities, steel re-rolling units are classified into

• Small scale:3-14 tonnes per hour

• Medium scale 15-49 tonnes per hour.

• Units with an annual production capacity of 50 TPH or greater count as large scale industries

Steel re-rolling industries of Small and Medium scale supply finished products either to the customer

industries directly (Government/Semi Government and other big projects and companies) or to the

local markets. In the former case, they are usually required to have their own quality control

arrangements so as to produce products complying to relevant standards as well as ensure the

requisite physical and chemical properties demanded by the customer. Typically, the direct energy

costs in small and medium scale steel re-rolling mills is estimated at 25-30% of the total production

10 Source: FICCI 11 Executive Summary of Joint Plant Committee report 2013-14 released by Ministry of Steel 12 Executive Summary of Joint Plant Committee report 2013-14 released by Ministry of Steel 13 Report on Standard Maintenance Practices for Re-heating furnace- UNDP GEF programme

22

cost. Therefore, energy efficiency and operational effectiveness in steel re-rolling industries can be a

vital tool to achieve profitability and scale up.

Figure Key steel re-rolling clusters of India (Figure source: UNDP report on upscaling energy efficient production in the

secondary steel sector in India)

Figure shows the clusters where steel re-rolling units are situated in India. Some of the larger clusters

(in terms of the number of units) among the ones depicted above are Mandi Gobindgarh (275 units14),

Bhavnagar (120 units15) and Raipur (180 units16), the remaining clusters having less than 70 units

individually.

14 Source: All India steel Re-rollers association 15 Source: Bhavnagar Steel re-rollers association 16 Source: http://csraraipur.in/about_us.php#

23

Cluster

Production- TPD (Indicative figures only)

Range of Installed capacities of units

Major product Proximity to raw materials and markets

Mandi

Gobindgarh

3500 10 TPD to 150 TPD Rounds, Squares, TMT Bars,

Strips

No

Bhavnagar 5000 20 TPD to 300 TPD TMT bar, H section Yes

Raipur17 4000 10 TPD and

upwards

MS Angles/Rounds/TMT,

Channel, Wire Roll, MS

beam

Yes

Table Profile of India's largest steel re-rolling clusters

Mandi Gobindgarh is one of the oldest and largest steel re-rolling clusters in India which has a

dominance of non-mechanized pusher furnaces and hence is highly labour intensive. The labour

intensive nature of operations, apart from resulting in inherent inefficiencies, also leads to issues of

migration of semi-skilled/skilled labour to relatively higher paying clusters such as Raipur. In addition,

as mentioned in Table , unlike other major clusters, Mandi Gobindgarh is situated far from the sources

of raw material as well as markets. This has put the Steel re-rolling industry in Mandi Gobindgarh at a

competitive disadvantage, which makes cost cutting through energy efficiency highly invaluable.

Mandi Gobindgarh has a combination of units using ingots/billets and scrap as the raw material, with

the scrap-based units at a production capacity ranging between 10-30 TPD (relatively much lower than

the ingot/billet based units). Due to its unique set of challenges, which make it a rightful candidate for

demonstrating the impact of energy efficiency and productivity related interventions, Mandi

Gobindgarh has been chosen as the cluster of choice for the purpose of this study.

6.2.1 Process flow chart

17 Source: http://csraraipur.in/about_us.php

24

Figure 1 Process flow in a typical steel re-rolling mill with Pusher furnace

As a first step, the raw material (ingot/billet/bloom/scrap) enters the factory and is stored in the

storage yard. It is then cut into the required dimensions (based on the dimensions of the product

being manufactured) which can be done using gas cutting machines or using shearing machines. The

cut pieces are arranged in lots and pushed into the furnace using a pusher (of mechanical/hydraulic

type)

The charge fed into the furnace is heated by using burners. Heat transfer inside the furnace occurs

through conduction, convection and radiation out of which radiation from the furnace roof is the most

effective form of heat transfer. The heated charge is removed from the furnace either manually or

using ejectors and is sent to the milling section. The milling section typically comprises of the roughing

mill (high reduction in cross section), intermediate mills and finishing mills (relatively lower reduction

in cross section). A mill stand has an arrangement of rotating rolls driven by motors which draw the

heated charge in and reduce its cross section, resulting in increase in length. The rolls experience jerks

and impact loading and transfer this impact load to the bearings and mill housing. The system of

transfer of the stock between different stands can be manual or automated. The finished product is

cooled in cooling beds and sent for quality testing and packaging where after, it is weighed and

dispatched to the customer.

Receipt of Raw Material

Cutting to required size

(Electricity)

Arranging in front of pusher

(Manual)

Heating of charge in furnace

(Thermal energy)

Rolling in mill

(Electricity)

Cooling and end cutting

(Electricity)

Inspection and Packing

(Manual)

Weighment and dispatch

25

6.3 Footprint in Mandi

Mandi Gobindgarh has near to 275 steel re rolling mills consuming pulverized coal as the heating fuel

in the furnace. The furnaces are operating at an efficiency of 20-30% with huge wastage in thermal

energy.18 The footprint in Mandi Gobindgarh is directly related to the low degree of best energy

efficient practices being implemented. Due to the large production level and usage of oil and coal for

heating, the emissions are the highest in the steel re rolling industry.

6.4 Feedback of tool in Mandi

The unit head of the factory is also the president of All India Steel Re Rollers Association and was

impressed by the tool’s capability. The unit had already participated in the UNDP’s energy efficiency

program and implemented a lot of energy efficient practices. The unit head was majorly concerned

about the furnace and any solutions regarding the same. He wanted to use the tool for some time

before reviewing and giving a feedback about it.

18 PSCST: http://www.pscst.gov.in/pscstHTML/reRoll.html

0

200000

400000

600000

800000

1000000

1200000

CO2 released (Tons)

CO2 released by steel re - rolling units in Mandi Gobindgarh (tons)

Pulverised Coal

http://www.pscst.gov.in/pscstHTML/reRoll.html

26

7 Learnings and further development

7.1 Approaches for achieving scale – what did we learn?

The aim of the project was to use a software tool that gets widely disseminated to generate a GHG

inventory in the energy intensive small and medium facilities. And in the duration of the project, we

believe we have been able to map out approximately 1,500,000 tons of CO2e from 5 clusters (or about

1.5% of the CO2e expected to be coming from the Small and Medium enterprises)

To that end, we undertook the following:

1. Developed the tool by engaging associations and facilities in a few clusters

2. Aiming to test the tool and its propagation through the following approaches (one after the

other):

a. Approach 1: Engaging with industry associations and disseminating the tool in the

workshops.

In order to disseminate the tool to the larger audience, various industry associations

were also contacted. It was naturally assumed that it would be easier to reach out to a

larger audience through the already established associations in the clusters, such as

Rajkot Engineering Association (1000 members), Indian Institute of Foundrymen,

Ludhiana Foundry Cluster and Morbi Ceramics Association (800 members). The

associations could only help in providing their members list but were not ready to

commit or help in contacting its member for a workshop or seminar.

The associations shared that multiple projects have already taken place in the field of

EE and people would not be interested in another workshop or seminar. They weren’t

ready to take any guarantee on the number of people that would turn up for the

workshop.

The major hesitance of these associations as well as many industry heads was because

of the previous experiences that have gone wrong and over saturation of the projects

in this field without any actual implementation on the ground or handholding support

after the implementation of the project.

Another observation was the industry works a lot on word of mouth and factory heads

trust other factory heads about day to day functioning of their factories. If we were

able to convince and effectively engage a few factories per industrial area, they

spread the word.

When this approach failed, we attempted the approach below.

27

b. Approach 2: Going direct to the units and working with associations to get referrals +

finding local ‘evangelists’. We had some good inroads with this approach and in total

have captured information on almost 85 facilities.

As a part of Approach 2, we connected with the factory heads of the factories who

helped define the tool and get references from them.

Local champions/ evangelists: Upon multiple site visits, the major issue faced was to

break ice with the factory heads, irrespective of the size of the factory. The solution to

the problem can be found in engaging with local evangelists. In all the clusters visited,

there were local people with a very established network in the industry. This led to

ease in approaching the factory heads since they had a known figure to relate to and

reduced ambiguity. A good approach would be to engage such local evangelists to

generate positive outcomes.

We believe that a model can be developed to disseminate best practices and capture

the GHG inventory by working with such individuals in different clusters.

7.2 Other considerations for further inventory development

• Small beginnings, larger impact: The clusters work majorly on word of mouth. Everyone is

connected and follow the path if it is tried and tested by someone in the cluster and it gets

approved eventually by them. A possible strategy could be to engage the top and influential

players in every cluster first, get them to use the tool and ask their feedback and help from

there onwards. Instead of conducting large conferences, where the possibility of the right

people attending the conference is low, it is a better way to engage the right and important

players first.

• Cluster wise strategy: Every cluster is different with different issues and problems. In the case

of Rajkot, there is a presence of a strong association, which could prove beneficial if we decide

to have conferences. In Ludhiana on the other hand, there is a lack of such an association and

a local evangelist could be a better solution. Hence, a cluster wise strategy is required to

proceed further before the dissemination of the tool is started.

7.3 Further development to enhance the GHG inventory

Based on our experience through the project, we have also been able to estimate what would be

effort and cost involved in capturing an annual inventory from the small-scale energy intensive units. If

we take the approach above, we estimate that 30 champions/ evangelists could be engaged for about

3-4 months a year (or every other year) to build out the inventory for these sectors. Having the data

over time, will allow comparisons as well.

28

Industry Clusters Number of units

% of overall sector

Estimated timeline/effort

(days)

Foundry Belgaum 160 5% 32

Coimbatore 535 16% 107

Kolhapur 300 9% 60

Ludhiana 200 6% 40

Rajkot 1000 31% 200

Ahmedabad 450 14% 90

Howrah 320 10% 64

Indore 45 1% 9

Jaipur 110 3% 22

Saharanpur 50 2% 10

Samalkha 50 2% 10

Shimoga 45 1% 9

Ceramics Morbi 635 76% 127

Khurja 200 24% 40

Forging Pune 50 6% 10

Ludhiana 300 39% 60

Chennai 50 6% 10

Ghaziabad, Faridabad, Gurgaon

129 17% 26

Mumbai, Vadodara 147 19% 29

Kolkata, Jamshedpur 27 3% 5

Bangalore, Coimbatore, Hyderabad

75 10% 15

Rajkot 200 33% 40

Steel Re-rolling

Mandi Gobindgarh 275 24% 55

Raipur 200 17% 40

Ludhiana 120 10% 24

Coimbatore 60 5% 12

Nagpur 100 9% 20

Wada, Nashik, Goa, and Sylvasa

60 5% 12

Jalan and Aurangabad 40 3% 8

Kolkata, Durgapur, Giridh, Jamshedpur, and Bokaro

60 5% 12

Chennai, Hosur, Salem 60 5% 12

Guwahati and Shillong 25 2% 5

New Delhi, Jaipur, Bhiwadi, Ajmer, Muzaffarnagar Haridwar

50 4% 10

Bhavnagar 120 10% 24

29

Annexure: Link to the Energy GHG Assessment Tool developed http://smeco.sustainabilityoutlook.in/

http://smeco.sustainabilityoutlook.in/

30

Annexure: Outreach that was done to build the GHG Organizations / individuals engaged Influencer/ connector (can

contribute to future scale-up) Contributed to inventory

1. Rajkot Engineering Association ✓ ✓

2. Bharat Dawda, Foundry Consultant ✓ ✓

3. Vivek Sharma, Ex- Teri ✓ ✓

4. Indian Institute of Foundrymen ✓

5. Naresh Sheth, IIF ✓ ✓

6. Yashpal Gosain, Ludhiana Foundry Cluster ✓ ✓

7. Satvinder Singh, NSIC ✓

8. Narendra Sangha, Morbi Ceramic Association ✓ ✓ 9. Mahavir Taleda, Chhattisgarh Steel re- rollers

Association ✓ ✓

10. Pritpal Singh, Punjab State Council for Science and Technology

✓ ✓

11. Vinod Vashisht, President All India steel re-rollers association

✓ ✓

12. AP Mathew, Ravi Technoforge ✓ ✓ 13. Girish Patel, Sardar Castings ✓ ✓ 14. Lexicon Ceramics ✓

15. Wall Cera ✓

16. Gravity Ceramics ✓

17. Salix Ceramics ✓

18. Pulsar Ceramics ✓

19. Alient Ceramics ✓

20. Shreeji Ceramics ✓

21. Lumen Ceramics ✓

22. Shreeji Ceramics- vitrified ✓

23. Shreeji Ceramics- vitrified double charged ✓

24. Metro Ceramics ✓

25. Soriso Ceramics ✓

26. Metropole Ceramics ✓

27. Qualitech Forge ✓

28. Intech Forge ✓

29. Rahil Industries ✓

30. Pithva Engg Works ✓

31. Kranti forge ✓

32. Kirti Forging ✓

33. Kalaria forge ✓

34. Ravi technoforge ✓

35. Duhee Alloy ✓

36. Hirschvogel Components India Pvt Ltd ✓

37. Kaydee forging ✓

31

Organizations / individuals engaged Influencer/ connector (can contribute to future scale-up)

Contributed to inventory

38. Emson ✓

39. Impel Forging ✓

40. Jay Technocast ✓

41. Fine Cast ✓

42. Victor Engineers ✓

43. Castomate Pvt. Ltd. ✓

44. Inducto Cast ✓

45. Precision Foundry ✓

46. Real Cast ✓

47. Perfect Autocast ✓

48. Hi-Mac Casting ✓

49. Shree Vallabh Steel Alloy ✓

50. Green Casting ✓

51. Suryadeep Alloy Casting ✓

52. Poonam Casting ✓

53. Digvijay Foundry ✓

54. Shreeji Foundry ✓

55. Atkotia Casting ✓

56. Gautam Casting ✓

57. Vishnu Technocast ✓

58. Sun Casting ✓

59. Parv Metal Casting ✓

60. Sunstar metals ✓

61. Impulse Technocast ✓

62. Kaizen Alloys ✓

63. Pooja Technocast ✓

64. shree siddhivinayak ispat ind ✓

65. IH Castings ✓

66. BIG CASTINGS PVT LTD ✓

67. Kaizen Ferrocast ✓

68. Deepak manufacturers ✓

69. Chirag Foundry ✓

70. Grey cast alloys ✓

71. Satyam Metals ✓

72. Gosain foundry ✓

73. Rajeev Foundry ✓

74. Rajeev casting ✓

75. Gosain Foundry And Engg Works ✓

76. Ludhiana alloys ✓

77. Sohal foundry 1 ✓

78. Sohal enterprises and foundry works ✓

32



79. Minakshi metals and castings ✓

80. Hi tech castings ✓

81. D.A.V. engineering works ✓

82. M/s Lakshmi Steel Rolling Mills ✓

83. Ashok steels ✓

84. Royal Steel ✓

85. Bhatia Steel ✓

86. Thakur steel ✓

87. King Steel Rolling mill ✓

88. RK Plates ✓

89. Aarkay Industries ✓

90. Rehal Industries ✓

91. Alwar Steel ✓

92. Dhiman Steel ✓

93. Royal steel 2 ✓

94. Devgan Steel ✓

95. Lakshmi steel rolling ✓

96. Jagat Steel ✓

97. Karam Steel ✓

98. Punjab Steel ✓

99. Presanjit Chaudhry, AGM, SIDBI Ludhiana ✓

100. Gurpreet Singh Kahlon, President, Auto parts manufacturing association

✓

101. Ravinder Dwivedi, Foundation for MSME clusters

✓

102. Upkar Singh, General Secretary, CICU ✓

103. Jignesh Patel, Chairman, IIF Rajkot ✓

104. L. S. Monpara, GM, Shapar Veraval Industries Association

✓

105. Yashwant Kulkarni, DGM, Sidbi Rajkot ✓

106. Bhavesh Patel, President, Rajkot Engineering Association

✓

107. Vithal Udyognagar Industries Association ✓

108. Nilesh Jetpariya, President, Morbi Ceramics Association

✓

109. KG Kundariya, President, Morbi Ceramics Association

✓

110. A. Chandramouli, DGM, SIDBI Morbi ✓

111. Kirit Patel, President, Morbi Sanitary Ware Manufacturers Association

✓

112. Ashish Poddar, President, Khurja Pottery Manufacturers Association

✓

33



113. Mr.Surinder Mahendru, President, Punjab Forging Industries Association

✓

114. Mr.S.S.Anand, Executive member, Punjab Forging Industries Association

✓

115. Samir Raychura ✓

116. A.K Bhargava, CEO, All India Steel re-rollers association

✓

ghg emissions in 4 energy intensive sme sectors

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