Sustainability @Sugar

Sustainability Approach

Pie Chart

At Dalmia Sugar, sustainability has not only been a mere buzzword but is something which we have integrated within our daily operations; be it sugarcane sourcing from farmers or efficient operations to minimize waste or optimize energy consumption or our community initiatives - we have been working on all such aspects. In the past few years, DBSIL has been successful in sailing through tough times through our resilience and robust growth. This is a result of creating business without compromising on sustainability principles.

Our, relatively new, downstream businesses have not only added to our economic bottom line but also contribute towards improved environment and social performance. The waste from sugar industry which was earlier disposed of is now utilized in our distillery and co-generation businesses.

Today, we utilize all bagasse produced from the sugar plant to generate electricity whereas molasses is used in distillery to produce alcohol. We have further managed to close the loop by using press mud as organic manure to improve the fertility of the soil.

We have also been trying to inculcate environmental consciousness at the design phase. As a result our newly acquired unit at Kolhapur, Maharashtra has been designed to be more water efficient and we are on our way to make this unit a zero discharge facility.

Journey of DBSIL

Our Methodology

Environmental Stewardship

For Dalmia Sugars, our environmental impacts are primarily associated with the manufacturing operations and farming of sugarcane. As one of the largest sugar players of the country, we aim to reduce our impact across the supply chain through developing a culture of consciousness, monitoring environmental performance and reducing our environmental footprint.

At our manufacturing locations, we have implemented Environment Management Systems and put in place measures to ensure that our operation do not impact the environment in which we operate. Our attempt to reduce our impact has resulted in developing a closed loop and reusing most agri-waste as compost.

In power-deficit India, we are not only self-sufficient in terms of power needs but also export surplus power to the national grid. Our power being green, we also help reduce the burning of fossil fuel. Likewise, we are making our own humble contribution in reducing the import of crude oil through production and supply of ethanol.

Our interventions for reducing environmental impact across supply chain include CSR programs. We understand that sugarcane is a water intensive crop and thus work in the domain of water conservation. Our Unnati project caters to this objective which helps farmers in growing more with fewer resources. Soil and energy conservation are some other intervention areas of our CSR program, all of which get channelized through our Dalmia Group Foundation.

Resource Efficiency

We have taken initiatives in optimizing costs through bringing efficiencies in all spheres of business, ranging from procurement of raw material to marketing of finished product. We have embarked on extensive use of technology in operations to achieve efficiencies.

Sugar Recovery Trend

Our cane development initiatives are focused at sustainable tie-up with farmers through mutually beneficial propositions. This is achieved by supporting farmers with high yielding variety of seeds and consistently educating them about innovative farming techniques. The results are evident with higher cane crushed, higher sugar recovery and lesser rejected varieties of cane. Our Kisan Sewa Kendras, located in the vicinity of our sugar mills, educate farmers on the best farming practices and techniques. These methods have helped them improve their crop yield over the years. These Kendras distribute fertilizers to farmers, besides pesticides and farm equipment at subsidised prices. We took a major initiative on operational standardization. "Project Udaan" was started last year where functional templates got created for business management system, in which our processes, codes, controls, KPIs and MIS are standardized on best practices. A functional template was deployed using SAP platform, with a successful go live on May 1, 2015, where in all modules like Financial Accounting, Materials Management, Sales & Distribution, Plant Maintenance, Project Systems & Product Planning ensured tight integration with other key applications like Cane Management, Lab Management and Payroll.

Ensuring Efficiency Through Improved Data Controls

Availability of key analytics was ensured by creating dash boards for sugar business in critical area of cane management, where in varietal composition, maturity wise supply planning of sugar cane is available "Anytime Anywhere" to the decision makers in form of Key Process Indicators (KPI). The Management Information System plays a key role in the enhanced profitability of the business. Analytics will be a major thrust area in years to come and will get extended to other areas of Finance, Inventory Management, Plant Operations, Quality Control and Sales in FY 2015-16.

To overcome the challenge of reliability of data on availability and quality of raw material, we have deployed a unique solution using hand held device along with GPS technology to capture cane planting area, varietal information, procurement planning, weighment and transportation. The solution is successfully deployed for all manufacturing plants providing online auditable information on sugar cane availability. This has helped the organisation in correct procurement planning, reduced turnaround time and transit losses with improved efficiency in terms of sugar recovery.

Improving Operational Efficiency

During the year, we remained focused on enhancing our capabilities and increasing the capacity utilisation of our plants. This helped us in lowering our operational cost. With the homogenous nature of our sugar operations and an improved performance in our downstream business segments, we insulated our bottom line from the inherent cyclicity of the sugar business.

For FY 2015-16, efficiency improvement in plant operations will be a focus area. Proof of Concept (POC) is being done for Kolhapur unit by deploying Plant Technical Information Management System (PTIMS). Key operational parameters are captured online and real-time KPI's and alerts are made available to decision makers to ensure preventive measures are taken before it breaks. This will help in enhanced plant efficiency and improved capacity utilization.

Conserving Water

Sugarcane is a crop which is known to be water intensive and has about 75 percent of the total weight of the sugarcane plant.1 This results in greater effluent generation during sugar manufacturing processes.

At Dalmia Sugar, we decide to see the flip side, which gives us an opportunity to recycle and reuse greater amounts of water. Fresh water is required for our units primarily for distillery operations and domestic consumption.

Most of the water is used in recycled / reused in the sugar unit; for example, condensate from sugar mill is used in distillery. We have also installed recirculation system for recovery of cooling water. Some treated water is provided to farmers for irrigation purpose.

Through continued efforts we have been successful in reducing in our fresh water intake. At Nigohi, there has been a reduction in the amount of water that was sourced for our plant operations as well as in the release of effluents. Between different plant activities, a total of 1,000 cubic meters per day is saved.

We have also been working on developing our Kolhapur distillery as a zero discharge principle through concentration of spent wash which is used as a fuel for the boiler. A state of art water recycle plant is being set up to enable to recycle treated water into process.

The Company operates all its units in line with the applicable guidelines including payment of water cess as specified by Ministry of Environment, Forest and Climate Change (MoEFCC) and Central Pollution Control Board (CPCB) from time to time.

Energy efficiency

As a sugar manufacturer, DBSIL has capitalized on the opportunity of generating renewable power through the use of bagasse. Co-generation plants have been installed at all locations with a total installed capacity of 102 MW.

We have multiple co-generation plants at our DBSIL sugar mills, which has enabled us to meet a large part of our energy requirements and earn revenues from the excess power sold to the grid. Presently, about 70% of the total power generated is supplied to the distribution companies in Uttar Pradesh and Maharashtra.

We have taken various initiatives such as employing low temperature evaporator modules for reduction in steam consumption and energy requirements, installed evaporative condensers in distilleries to reduce steam and power consumption, use of CFL and LED lights in place of high wattage lighting is another step in saving energy consumption at DBSIL.

We installed Plate Type Heat Exchanger (PTHE) in the production process is an initiative to recover waste heat from Sugar Process Condensate and transferring the same to Boiler Feed water, thus saving thermal energy. Hydraulic drive on Grooved Roller Pressure Feeder (GRPF) drives have been replaced with high efficiency AC Variable Frequency drives as an energy saving measure. Further, at Jawaharpur unit, an internal audit team with an external agency had been appointed to identify the gaps for further reduction in energy consumption. Due to our efforts to lower stoppage days, we were able to achieve better crush rates and consistent improvement in the utility of sugar manufactured.

Energy Conservation Initiatives

  1. Replacement of Mill drives with high efficiency ACVF drives.
  2. Replacement of chain Conveyors with Belts Conveyors.
  3. Installation of AC Variable frequency drives at pumps & Fans.
  4. Invested around INR 1 crore during FY 2014-15 to conserve the energy.

Technology Absorption

  1. Development of Neutral Ramming mass for use in Induction Furnaces.
  2. Development of Low Cement castables for Steel and Cement Industries.
  3. Development of Ramming Mix for Continuous Steel Casting Applications.
  4. Development of Dry Vibro Mass for use in Tundishes in Steel Industry.
  5. Development of very high reliability multilayer ceramic chip capacitors for space application.
  6. Cane Varietal Development.

Energy Conservation Initiatives

The table below presents a list of various energy conservation initiatives taken up during the reporting year:

Location Description of energy savings initiative Nature of initiative Estimated savings in FY 2014-15
Jawaharpur Evaporator soda boiling with 1st vapour in place of 3 ATA steam 3 ATA Steam saving 75 T/ Cleaning
Kolhapur Corrective engineering & project work 2013 Operational 814.82 INR lacs
Nigohi Aux. Power Consumption Less running of MCW Pump 1000 Kwh per day
Nigohi Heat Energy saving Process condensate directly to De-aerator 720 MT steam of 3ata will be saved monthly
Nigohi Aux Power Consumption Feed Transfer pump less running 200 Kwh per Day
Nigohi Aux Power Consumption Boiler feed Pump running through pressure difference 500 Kwh per Day
Nigohi Aux Power Consumption Setting of OFA nozzle 600 Kwh per Day
Ramgarh Replacement of Drag conveyor with belt conveyor at MBC conveyor which was replaced with belt conveyor to reduce power consumption 248.40 INR lacs
Ramgarh Single pump of 90 KW in place of two parallel 90 KW pump at sulphited juice. Replacement of 2 No. low efficient sulphited juice pumps with single high efficiency pump 352.51 INR lacs
Ramgarh VFD Installation at Primary Cane Carrier(PCC) Dyno drive replaced with VFD 226.63 INR lacs
Ramgarh VFD Installation at GRPF of Mill # 1 Hydraulic drive replaced with VFD 616.60 INR lacs

Emissions

At DBSIL, we regularly monitor stack emissions and ambient air quality and are compliant with Uttar Pradesh Pollution Control Board (UPPCB) norms. Further, we use bagasse based co-generation to meet a large part of our energy requirements, resulting in reduced dependence on fossil fuel sources of energy and thereby reducing GHG emissions resulting from our operations.

All three DBSIL plants, Jawahrpur, Nigohi and Ramgarh are registered under CDM and UNFCCC and in previous years we have been issued Certified Emission Reduction (CER) under CDM.

We conduct green drives across our locations wherein we plant saplings with the view of greening the areas and to act as carbon sinks. At Nigohi, 5,000 new plants have been developed in residential and unused areas within the Plant premises.

Sugar Recovery Trend

Thermal power remains the most common source for generating electricity in India. By switching to greener power of bagasse, we have served three purposes:-

  1. Utilizing a resource which was earlier treated as waste,
  2. Switch to cleaner source of power and reduced carbon emissions
  3. Generate additional source of income Presently, agro-waste (bagasse) accounts for 95% of our direct energy needs.
    Units 2012-13 2013-14 2014-15
Coal Quantity MT 3,500.00 498.81 42,421.44
Energy GJ 52.71 9.96 847.04
CO2 emissions tonnes 5.06 0.96 81.32
HSD Quantity KL 17.31 15.09 24.76
Energy GJ 0.70 0.61 1.01
CO2 emissions tonnes 0.07 0.06 0.10
Electricity Quantity KWh 3,09,36,679.60 3,56,69,582.00 4,41,97,961.30
CO2 emissions tonnes 25,368.08 29,249.06 36,242.33
Agro waste Quantity tonnes 583014.97 783086.43 742636.54
Energy GJ 5504.81 7390.63 7009.76

Waste management

At DBSIL, we believe that any waste is a loss or resource which can be used to create value. Based on this philosophy, we have imbibed the principles of no wastage and optimized usage. We have taken a slew of measures to extract value from waste generated across the value chain.

These initiatives have led to development of separate distillery (where molasses is fermented to produce alcohol) and co-generation (based on bagasse) business segments which now generate revenue for the organization. Press-mud is converted to usable compost for agriculture. Through these changes in our processes we have been successful to return back to nature what we borrowed from it.

Non-hazardous waste in form of PP bags and plastic drums are disposed through authorized recyclers. Hazardous waste in for of oil and grease is mixed with bagasse and used for cogeneration in line with the regulations of the pollution control board.

We ensure optimal waste management by adopting bio-composting method for disposing press mud, waste residue generated after extraction of juice from sugarcane. Bio-compost is soil friendly manure which also substitutes potash, a large quantity of which is imported in India, thus leading to savings in foreign exchange. Our bio-composting facility at Jawaharpur can produce about 30,000 MT (approx) organic manure per annum. We have adequate in-house availability of press mud, key raw material, from own sugar factories to ensure smooth production of good quality organic manure. Our main customers of organic manure are farmers and tea estates.

Besides reuse of waste generated as by-products and residues in the sugar manufacturing processes, we have also undertaken efforts to develop a Zero-Waste Society with waste material being segregated & disposed of as per standard norms at Nigohi unit, DBSIL.

In Tonnes Hazardous Waste Non-Hazardous Waste
2012-13 0.60 5.32
2013-14 1.81 2.27
2014-15 0.52 2.28