Euro Ceramics to set up 100 mw power plant

Euro Ceramics ,based in Bhachau, Kutch district, is considering 100 MW lignite-based power project to support its future requirement.

Talking to Business Standard during inauguration of its 10 MW power project in Bhachau, Nenshi Shah, CMD of the company said the captive power project is must for company dealing in ceramic industry where there is fierce competition among the manufacturers for 20 to 25 per cent gap in demand and supply in the domestic market.

Talakshi Shah, director of the company said, "In near future we plan to expand our capacity by atleast 100 MW power and that will suffice the additional needs as and when arises in our units, which shall allow us to be self-sufficient as far as our power consumption requirements are concerned."

The company has approached the state government for obtaining permission for lignite mining. "As our power plant is based on Lignite, we have requested the state government, to allow us to mine lignite from this area," said Talakshi.

We are hopeful on availing the same, because by installing our own captive power plant we are helping the government in their energy conservation programme, he added.

Shah said, "We are presently a Rs 300 crore per annum turnover group in vitrified tiles segment and are aiming to touch Rs 1,000 crore per annum mark soon. Customers choice is gradually shifting towards purchasing vitrified and ceramics tiles, from traditional flooring tiles which constitutes almost 55 per cent of the total market share."

"With the ban on imported vitrified tiles and the kind of quality issues, we feel that there is still 25-30 per cent shortage."

Currently, power consumption of the company falls somewhere between 7 to 8MW, with three manufacturing facilities of same group involved in production of vitrified tiles, compact discs and aluminum products.

Nenshi Shah stressed on the need of captive power plant as an essential requirement for tiles manufacturing units in Kutch. "Fuel being one of the major factors catalysing the entire manufacturing unit in vitrified and ceramics tiles, the need to install captive power plants cannot be ruled out," he said.

Initially we were procuring power from Gujarat Electricity Board (now Paschim Gujarat Vij Company) which used to cost around Rs 5.40 per unit, Shah said while adding that after all the tax deductions the cost stood at Rs 4.50 per unit. "With the installation of our own plant, the power cost has reduced drastically to Rs 2.50 per unit," Shah added.

To avail consistency in the product in terms of colour and quality, heating product at a particular temperature is part of the process in vitrified tile units. "Majority of the units established in Kutch have their own captive power plants. We are the fifth in the row," said Shah.