EDITORIALbevconwayors.com/wp...YSR-Interview-in-Coal-Insight... · questions. Firstly, where did this demand pop up from? As the market buzz goes, ... Tata Metaliks Ltd Suresh Thawani,

Coal Insights, October 2017 3

Dear Readers,

The Indian coal has again taken the market by surprise. Just when everybody was convinced that the days of shortage (and hence, imports) are over, a sudden crisis of stocks at the thermal power plants brought back the memories of the bygone years. To be precise, coal shortage is said to be back after a gap of nearly three years.

The crisis was first reported from Maharashtra, where short supply of rakes to haul coal from the mines to the power plants plunged large parts of the state into darkness early October. And the crisis soon spread to Rajasthan. By the time of Diwali, the festival of lights, around 40 percent of the generation capacity in Rajasthan and Maharashtra was under outage due to coal shortage. And the situation in some other states are also said to be alarming. As per data released by CEA, average coal stock at the 100 TPS stood at 7.257 mt as on October 19, 2017, a sharp decline compared to 25.118 mt recorded on the same day a year ago.

Statistics, it is said, never lies! However, in this case, it raises a few questions.

Firstly, where did this demand pop up from? As the market buzz goes, the lower generation from hydel and nuclear generation this year resulted in unmet demand for power which put pressure on thermal power plants, leading to the coal crisis. Now, a back-of-the-page calculation shows the net decline in nuclear power was a mere 2 billion units (BU) during April-September 2017 against the same period last year. Hydel power showed an increase of 3.6 BU during the same period, while thermal generation registered a whopping growth of more than 24 BU. Although there was a drop in hydel and nuclear generation in August, the addition in thermal generation was much higher, which invalidates the argument.

Secondly, where is this additional generation going? Given the slackness in industrial growth, this sudden pick-up in demand keeps one wondering about the points of consumption. Lastly, there are significant variation between the numbers reported by different agencies. There are two sets of data for each of the sources, namely Coal India Ltd, CEA and the Ministry of Coal – provisional and revised. Take any one of them, and match it across the board, and see how different they are. Take the case of coal despatches to the power plants. More often than not, MoC data do not match with either that of CEA or that of CIL.

Coming back to the coal shortage, the current shock has some learning for the economy and the policymakers. To achieve the targeted goals, which in this case was to stop imports of thermal coal, the policymakers need to work first with the numbers to ensure that statistics don’t lie. Next comes demand tracking. Then only we can plan for changing the supply side dynamics. A reverse order of work may not help, and in fact, may put us in a quandary.

Happy reading!

(Arindam Bandyopadhyay)

EDITORIAL

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4 Coal Insights, October 2017

COnTEnTs

20 Iron ore exports can bolster India’s coal logistics: Drewry

24 DFCs will play key role in 1 bn ton coal scenario

27 Steam coal offers rise marginally in October

28 Coking coal offers fall in October30 India’s Aug coal imports down 6% y-o-y31 Coal India production up 10% in

September y-o-y32 SCCL production up 13% in September

y-o-y33 No power capacity addition in September35 India’s cement production dips 1% in

Aug y-o-y40 Bevcon Wayors eyes innovative

products, technical tie-ups for growth48 SRB rides on new opportunities in Indian

mining space50 Uralmashplant plans expansion in Indian

mining sector52 Areweheadingtowardsafull-fledged

digital mine?61 Volvo Trucks eyeing long-haul,

construction segment in India62 CIL must make course correction for

survival66 US coal production edges up 1% in Sept

y-o-y68 Martin Engineering unveils data trackers

on conveyors69 Advanced technologies protect workers

at the face 72 Indian Railways’ September coal

handling up 8% y-o-y 73 Traffichandledbymajorportsup3%in

Apr-Sep 2017 76 Corporate update

74 | CoRpoRAtEExxaro sees no likely dent in coal exports to India in H2Despite an 11% drop in coal exports to India in H1 2017, the South African exporter remains bullish on the market.

59 | INtERvIEwBio fuel a key alternative to bio-dieselVolvo Trucks’ long-term objective is to have zero emissions from its trucks, says Lars Mårtensson.

36 | INtERvIEwMining & construction gear market stares at slowdownEmission norms, GST, renewables and coal inventory are impacting mining & construction equipment sales.

6 | CovER StoRYCan India pare its high logistics costs?India has one of the highest freight costs in the world, but DFC and new rail projects can be game changers.

54 | INtERvIEwwCA seeks greater role of FIs in funding clean coal techNot the cheap solar tariff, the real challenge for coal is mass scale adoption of clean coal tech, says Benjamin Sporton.

40 Coal Insights, October 2017

EvEnT

What is the current market in terms of value for bulk handling equipment for mining sector?

India’s infrastructure sector growth is currently going through challenging times. As bulk material handling sector is part of infrastructure, the impact is very high on it. Core sectors like mining, steel and power industries are going through rough weather. Overall GDP growth, financial institutions and government policies are determining factors for growth of bulk material handling in mining sector.

What are the latest technology/product trends in bulk handling equipment especially for the mining sector? Explain its key features.

Bevcon Wayors is a two-decade old organisation and one of the leading material handling systems / equipment engineering and manufacturing firm based in Hyderabad with pan-India presence. We provide concept to commissioning solutions and execute turnkey / EPC projects for material handling applications for all sectors and established ourselves as a reliable brand in bulk material handling industry.

Technological innovation is the lifeline for Bevcon. We always strive to bring best technologies to India in the most cost optimized manner and our customers will have winning edge in their processes and business. Bevcon executes projects with blend of latest technology with conventional systems in most optimized manner which will enhance the operations reliability. Bevcon core strength lies in use of innovative conveying systems and equipment which caters to present day demand of Indian mining sector. Our highly competent technical team supported by technology partners from US and Europe are in position of supplying the innovative equipment like:

Sandwich Belt High Angle ConveyorFor vertical conveying application, Bevcon’s technology tie-up with Dos Santos intl. USA, the world's foremost authority on high angle conveyor applications and design of sandwich belt type high angle conveyors for Open Pit Mine & In-pit Crushing Conveying is breakthrough concept of conveying any mineral from pit bottom to the surface by totally eliminating use of conventional trucks. It also minimizes the environmental degradation. Flexibility

Bevcon Wayors eyes innovative products, technical tie-ups for growth

Bevcon Wayors is two decades old organisation and one of the leading Material Handling Systems / Equipment engineering and manufacturing firm based out of

Hyderabad. Y. Srinivas Reddy is the Founder and Managing Director of Bevcon Wayors Pvt. Ltd. Under his leadership, Bevcon achieved rapid growth and delivered enterprises class engineering solutions to 2800 customers. In a free-wheeling interview to Coal Insights, Bevcon’s Srinivas Reddy shares the company’s latest offerings for the material handling market and expansion plans by way of technological advancements and collaborations to increase its product offerings to cater to the diverse needs of its client base.

Excerpts:

Coal Insights, October 2017 41

of conveying profiles makes it one of the unique materials handling equipment of current generation and bring down the operational cost drastically and enhances productivity by retaining product quality. These high angle conveyors are not new but have not found wide use in IPCC systems where they can realize the greatest advantage.

Overland Pipe ConveyorModern and environmentally friendly Overland Pipe Conveyor system overcome numerous challenges associated with conventional conveyor systems. Pipe Conveyors have best capabilities of transferring materials between two points managing both horizontal and vertical curves which are difficult in case of trough conveyors. It eliminates multiple transfer points and exposure of material to atmosphere.

Overland Troughed ConveyorOverland troughed belt conveyors are designed to carry high tonnage loads over long distances. Bevcon’s long distance conveyor design ensures lowest power consumption per ton of conveying. Overland belt Conveyors have been proven to be an efficient method of transporting bulk material over long distances and costs are often lower than with truck transportation.

Stockyard SystemBevcon brings the vast experience of its technology partner M/s. FMK, Poland, in design and development of wide range of stockyard equipment like stacker, reclaimer, stacker cum reclaimers, full & semi-portal scrapper reclaimer, side scraper and belt conveyor system for maximizing the space utilization to meet the expectations of project.

Flip Flow ScreenIntroduction of high efficient “Flip-Flow Screens” for screening of very high moisture materials more specifically “Coal” has changed the philosophy of conventional screening methods in power and mining sector. In India, coal is most sought after fuel for thermal power units and most of the time either coal will be imported or mined from open cast mines and stored in open areas leading to high moisture absorption.

The high moisture levels in the coal will be crushed and screened before it goes for boiler firing. The challenge in screening “high moisture coal” lies in the fact that conventional screening methods used will not able to be productive and meet the demands of the plant. Flip flow screen has ability to screen coal with moisture of 40 percent and efficient enough to the level of 90 percent screening.

In Pit Crushing and ScreeningBevcon has expertise in providing solutions to the in-pit crushing and screening application.

Idlers & pulleysBevcon has state-of-the-art manufacturing facility which will manufacture Idlers and Pulleys to meet underground coal mine safety and operating standards.

You have entered into a technical collaboration for Overland Trough & Pipe Conveyor. What are the likely benefits to your company and the customer at large?

Bevcon has identified top focused areas and one among them is “continuously challenge status quo”. Bevcon is consistent and constantly doing the business for more than two decades in conventional material handling domain and it's time to “challenge consistency and current status quo” and move on to bigger league of business which is must for organization to sustain in long run. Hence the initiative to lead the organization to 'long distance conveying applications’.

One great breakthrough for Bevcon in last financial year is technology tie-up with world renowned engineering firm ‘Overland Conveyor Co. Inc. – USA’ in the areas of bulk and long distance conveying applications. This tie-up will facilitate taking Bevcon in bigger league of execution of projects in the field of mining, power, cement & others sectors across India. The unique technology of conveying bulk material in ‘Troughed & Pipe conveyor’ will make a difference to the material handling industry from the perspective of cost, economics, environment and layout. The technology has been well received by Indian clients and consultants and we look forward to good business in coming years.

After successfully associating with “Overland Conveyor Company” now Bevcon will be reaching top 5 Indian companies who are potential manufacturers of long distance troughed & pipe conveyors.

Could you brief us on Sandwich Belt High Angle Conveyor?

Sandwich Snake Belt High Angle Conveyors are so named due to the manner in which the material is ‘sandwiched’ between two rubber belts before it is inclined at angles up to 90 degrees. Material is ‘hugged’ by the belts throughout the inclined section to ensure that it does not slide back down the incline, even if the conveyor trips.

A Sandwich Belt Conveyor consists of two endless belt conveyors that share a common load carrying path. The top and bottom belts are independently driven and tensioned. Along the carrying path the top and bottom belts are alternately supported against closely spaced toughing idlers. Radial pressure, due to belt tension and the curving profile, continuously hugs the material that is sandwiched between the two belts. Internal friction is developed and bulk material can be conveyed at any high angle up to the vertical.

Sandwich belt conveyors are available in widely ranging profiles of C and S -Profiles. Dramatic reduction in energy use and environmental impact can be achieved with Sandwich belt high angle conveyors that serve as the vital link in any IPCC (In-pit crushing and conveying) system.

These high angle conveyors are not new at all, but have not found wide use in IPCC systems where they can realize the greatest advantage.

What is the growth potential for IPCC in mining sector? Tell us about your JV with regard to IPCC?

Bevcon Wayors is a pioneer in the domain of bulk material handling solutions. Over and again, we have introduced new technology in this sector, taking the nation a few notches higher in industrial growth. Sandwich Belt High Angle Conveyor has been introduced in India by Bevcon Wayors in technology tie-up with M/s. Dos Santos intl. USA, the world's

EvEnT

42 Coal Insights, October 2017

foremost authority on high angle conveyor applications and design of sandwich belt type high angle conveyors for Open Pit Mine (In-pit Crushing Conveying). It is not quite a conventional conveyor and is marked by originality in design, which has added to the machine’s competence.

Introduction of “Sandwich Conveyors” for Open-Pit mine (In Pit Crushing Conveying) is breakthrough concept of conveying any mineral from pit bottom to the surface by totally eliminating use of conventional trucks. It also minimizes the environmental degradation, brings down the operational cost drastically and enhances productivity and product quality.

Are there any major projects on the anvil that could spur the growth of the mining equipment?

In spite of government proactively conducting coal mining auctions in ground reality the progress at private coal mining is very poor. However, government’s ambitious plan of 2 billion ton coal production by 2020 is creating opportunities specifically from the regional coalfields and Coal India.

What are the major growth drivers for the Material Handling segment? What are the core challenges that need to be addressed?

In my view critical growth drivers for the Material Handling segment are as follows:

♦ Material handling comes under infrastructure segment and sign of growth in this domain is critical.

♦ Fast track clearances for projects by the governmental agencies.

♦ Financial institution support.

♦ Government policies like privatising / auctioning mining sectors etc.

♦ Technology upgradation keeping in mind environmental and energy conservation.

♦ Cost optimization / value creation.

♦ Shorter project time cycle etc.,

There are numerous challenges like:

♦ High competition, low profitability and cash flows.

♦ Time and cost overrun of the projects due to delays.

♦ Shortfall of talent and infrastructure.

♦ High financial cost etc.,

♦ Risk assessment beyond human ability.

What are some of the key product launches you have lined up in the coming months? What are some of the key events you will partake in 2017?

Our modern fully automated conveyor idlers and pulleys manufacturing unit; Be’RolleX - a Subsidiary Unit of Bevcon at Sricity, Andhra Pradesh, is producing low resistance / high speed conveyor Idlers & pulleys which will bring down the overall power

consumption of the conveyors. It will create business opportunity to cater to the global clientele.

Similarly our entry into port sector by successfully developing and executing Mobile Barge Loading Systems for handling and loading sulphur into barge are new developments at Bevcon.

Could you share with us details about your manufacturing base, capacity and production process?

Bevcon corporate office and manufacturing unit located in IDA, Cherlapally, Hyderabad is accredited to Integrated Management System and consists of ISO 9001: 2008, ISO 14001:2004 & OSHAS 18001:2007. It is spread over 25,000 square feet with CNC machinery aided by CAD / CAM Software. It’s the manufacturing hub for Crushers, Screens Feeders and other Material Handling Equipment.

As part of its expansion, Bevcon’s new manufacturing facility is slated to come up at Jadcherla, outskirts of Hyderabad, which will cater to the needs of heavy fabrication and engineering products.

Be’RolleX, a Subsidiary Unit of Bevcon at Sricity – Andhra Pradesh, is a fully automated manufacturing plant spread over 1,00,000 square feet to manufacture Idlers & Pulleys, meeting international quality standards and will strengthen the organization’s manufacturing capability to cater to the global clientele.

Regional Network: Bevcon in addition to their office at Hyderabad has a pan Indian presence with offices located at New Delhi, Kolkata and Pune with teams consisting of sales and service personnel to deliver prompt services to the satisfaction of its clients. All the offices are totally networked and integrated with latest communication facilities to interact with all the stakeholders seamlessly.

Manufacturing Vendor Network: Bevcon’s business model of manufacturing is flexible and expandable based on the market demands. With its two decades of existence in the material handling industry, BEVCON has established strong vendor network across India to deliver qualitative, cost-effective and timely commitments to all esteemed clients.

EvEnT