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					“National program for promoting energy efficiency in Ceramics Small
and Medium Scale Enterprises in India”

The Project Background & The Assignment
Background
Various types of ceramic articles viz. crockery, sanitary ware, tiles etc have played a dominant
role in our life. Ceramics have also forayed into industries for use as insulators, electrical and
electronic items etc. The ceramic industry has a long history and the industry has been
continuously modernizing by newer innovations in product design, quality etc. The ceramic
industry has contributed substantially to health and sanitation through sanitary ware and
hospital ware. In India ceramic items like crockery, sanitary ware, art ware, refractory, stone
ware pipes and many others are manufactured in the Small and Medium Enterprises (SME)
sector. There have been few initiatives in the past at the national and international level for
constant technological and quality up gradations to make the industry globally competitive. The
National Program for Energy Efficiency in SME Ceramic Industries, A Joint UNIDO – DIPP
Project is a major initiative in India to reduce the energy costs, improve productivity, foster
market linkages and promote the Indian brand image.

Though there are large companies in the Indian Ceramic Industry, the SME sector is a major
player accounting for more than 50% of the market share. The SME ceramic industry has
developed in clusters viz. Khurja in UP for crockery and allied items; and in Morbi and
Thangarh in Gujarat for tiles and sanitary ware. These SME clusters face stiff competition from
international markets on quality and price.

The Assignment
A national program for promoting energy efficiency in Ceramics Small & Medium Scale
Enterprises in India has been launched by UNIDO in collaboration with Department of Industry
policy and Promotion (DIPP), Ministry of Commerce & Industries (MoCI), Government of
India.

The main objectives of the program are:
• Technology upgradation of selected ceramic units at Khurja, Thangadh & Morbi by
adoption of energy efficient technologies and processes and improving their
competitiveness by improving productivity, achieving economies of scale, introducing
new designs, encouraging quality controls
and adoption of international standards.
• Capacity building of enterprises, workers, managers and strengthening of institutional
structures & policy framework
• Promotion of Indian brand image and enhancing quality of Ceramic products.

Project Objectives
To carry our Diagnostic Study and Energy Audits in the selected units to assess their present
status of technology, energy use and processes with special focus on competitiveness and
resource conservation.
Diagnostic Study
Based on the field study the diagnostic study would identify problems/
bottlenecks/constraints/issues and suggest solutions to problems and make recommendations on
activities/ interventions for implementing the project. Methodology for conducting the study
would be prepared in discussions with UNIDO Project team. The main focus of the study
would include:
• To collect primary / secondary data on the ceramic SSI units in Khurja , Morbi and
Thangadh and other sources.
• To Carry out field survey of representative SSI units , service providers, suppliers ,
customers, Institutes on various aspects as :Status of technology, including that of raw
material, furnace , heat treatment , finishing , etc and various manufacturing processes /
operational steps involved
o Manufacturing costs and its break up
o Safety, environment and O&M practices
o Quality management from raw material to finished/ semi finished product
o Available skills and existing practices of capacity building
o Waste streams
o Value Engineering
o Market linkages and share
o House keeping of units
o Whole supply chain including forward & backward linkages as well as service
providers, consultants, experts, transportation system etc
o Management structure of units
o Niche areas of operation and bench marking of technology

Energy Audit
The purpose of conducting the energy audits in the selected units is to understand the present
status of the energy consumption, technology in use and possible opportunities to save energy.
The audits will also identify: problems/ bottlenecks/ constraints/ issues, suggestions on solution
to the problems and providing recommendations on an action plan for each unit for follow up.
Energy auditing methodology would be developed and audits carried out in 15 units (8 in Khurja,
4 in Morbi and 3 in Thangadh). The key areas / issues that would be covered in the energy audit
would include:
• Raw material preparation and handling
• Firing, hardening, by-products and effluents
• Evaluation of the furnace technology status, fuel consumption and benchmarking
• Comparison of the ceramics units energy consumption with norms within selected class
of industry
• Furnace efficiency and flue gas studies
• Studies on efficiency and conservation opportunities in raw material, water and waste
minimization
• Energy management and efficiency action plan. 1.5 Outputs/ Deliverables
• All primary & secondary data collected from various sources
• Diagnostic Study Reports (for three clusters i.e Khurja and Morbi & Thangadh)
• Energy Audit Reports for 15 units (8 in Khurja, 4 in Morbi and 3 in Thanghad).
Project Consultants
Shri Shakti Alternative Energy Limited (SSAEL) has been retained as ‘Project Consultants‘ to
undertake the Diagnostic Studies and Energy Audits.
www.ssael.co.in
APPROACH AND METHODOLOGY
The Approach & Methodology given below was followed for undertaking the Diagnostic Study
and Energy Audits at the ceramics and pottery clusters at Khurja, Morbi and Thangadh.
Approach and Methodology for Diagnostic Study
A questionnaire was developed and pilot tested for undertaking a survey on the various
variables on which the information was needed to be collated. The blank
questionnaire is enclosed as Annexure – I.
The questionnaire was designed to collect and collate following information:
1. Demographic details of the unit
2. Products being manufactured in the unit
3. The markets served by the unit and the modalities for marketing of the products
4. Production details on cost on production product wise
5. Raw materials being used and the geographical sources of procurement for the raw
materials.
6. The processes that are used to convert raw materials into finished products
7. Types of kilns along with details of the various parameters as burner & control systems,
refractory, insulation, kiln furniture and the Specific Energy Consumption (SEC).
8. Various elements that comprise the cost of production including material, energy, labour
and others.
9. The value engineering & innovative strategies adopted so as to increase productivity.
10. The methodology adopted on Quality management with respect to preparation of raw
materials, production process up to dispatch of products.
11. Management structure and the establishment of needs for capacity building & training
12. Existence of various service providers in the clusters
13. Information on the role played by various supporting government institutions and the
14. Suggestions to improve productivity of the cluster.
Through field survey about 50 units in Khurja, 35 units in Morbi and 25 units in
Thangadh were studied for the above variables. The List of Industries surveyed in Morbi
and Thangadh clusters and the data collected & collated from them is tabulated in
Annexure 2.

Approach & Methodology for Energy Audits
The list of units in which the Energy Audit was to be conducted at Morbi and Thangadh cluster
were provided by UNIDO. The selection by UNIDO was based on comprehensive criteria
outlining their capacities, energy efficiency improvement potential and the keenness to be part
of the UNIDO project. The units selected in Morbi Cluster for Energy Audit based on the
product category is given below:
Unit Selected Type of Kiln Fuel
A Tiles
1. Face Ceramics Roller Kiln Producer gas
2. Metro Ceramics Roller Kiln Producer gas
B Sanitary ware
1. Sonex Ceramics Tunnel Kiln C-9
2. Galaxy Sanitary ware Tunnel Kiln Mixed oil
The Energy Audit team adopted following approach & methodology to conduct
the energy audits.
• a) Walk-through Audits: The energy audit team visited the facility to familiarize itself
with the process variables and collected the Secondary data from units by conducting
interviews with the management and staff of the units and from the records / bills
available on the energy consumption (fuel bills, electricity bills etc).
• Analysis of the Secondary Data & planning for Detailed Audit : analysis of
the secondary data was done to chalk out strategy for conducting a detailed audit at the
facility. The analysis indicated the significant energy consuming areas where the process
variables needed to be measured for defining the baseline energy consumption and the
validation of the secondary data. The trends on Specific Energy Consumption (SEC)
were also analyzed. Frequency of the measurements for significant process variables
affecting the SEC were also decided.
• Detailed Audit: The key areas covered in the detailed energy audit included the
collection, collation and analysis of data on the following
o Raw material preparation and handling
o Firing, hardening, by-products and effluents
o Evaluation of the furnace technology status, fuel consumption and benchmarking
Based on the analysis of the foresaid data, baseline SEC was formulated for internal
benchmarking and comparing the same with norms within selected class
of industry.
An action plan has been drawn for individual units indicating measures that can be implemented
to realize the energy conservation potential in the kilns, stand by power generation equipment,
transmission & distribution. The highlights of the energy audits of the four selected units in
Morbi are included in this report.

Reference Material used and Value Add of the Present Assignment:
IFC – ENVIRONMENT, HEALTH, AND SAFETY GUIDELINES FOR CERAMIC TILES
AND SANITARYWARE MANUFACTURING (2006)
Gives a very good overview of the environmental aspects. Through the study is specific to tile
and sanitary ware, the recommendations are universal and can be used for other industries also.
The ambient air and water quality standards can be used as a guideline for implementing
environmental measures.
WMC NEWS LETTERS OF THE NATIONAL PRODUCTIVITY COUNCIL (MARCH 2003
and DECEMBER, 2003):
The waste minimization circles have been established by CGCRI, Naroda, Gujarat and the
newsletters present the details on waste generation areas and solutions for the same. These
reports have been used on the present study to frame recommendations on waste minimization.

VALUE ADDITION OF THE PRESENT STUDY:
One of the key focus area of the present study is on Benchmarking. While the aim is to estimate
the theoretical energy consumption and work towards achieving the same, the setting up of
initial benchmarks and creating a mindset to monitor energy is important. It is expected that the
recommendations on benchmarking would be carried forward and that these benchmarks would
be updated periodically to bring them closer to theoretical value. (This is the way the Indian
cement plants, paper plants begun and after 15 yrs they are the lowest energy consumers of
energy compared to their global peers and are now talking of the approaching theoretical
energy consumption).
 

				
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posted:8/21/2012
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Description: Ceramic PPT