Strong EPC partnership drives Indian brownfield project

April 18, 2018 Miller Bahirathan

 FLSmidth and Larsen & Toubro team up to expand TANCEM’s Ariyalur operations.

The Tamil Nadu Cement Corporation Limited (TANCEM) is a state-owned cement producer with a capacity of approximately 1Mtpa. In 2016, TANCEM decided to up the capacity of its Ariyalur plant with a 3,000 tonnes-per-day brownfield plant. The aim was to commission a modern cement production line with lower emissions and energy consumption and a reduced maintenance burden, while lifting productivity levels.

The India-based international construction company Larsen & Toubro Limited (L&T) was engaged by TANCEM to manage and construct the project, while FLSmidth was contracted by L&T to provide the design, engineering, manufacturing and supply of all equipment. With commissioning expected to take place during Q2 2018, erection works are almost complete.

Successful EPC partnership
For L&T, the cooperation with FLSmidth was a significant factor in winning the project, says L&T’s Head of EPC for Cement & Process Plants, Mr. Raju Ganesan. He explains:

“From the tender prequalification through to being awarded the contract, we have experienced an excellent strategic association and collegial relationship with FLSmidth, whose considerable technical support helped us gaining TANCEM’s confidence in L&T’s ability to execute the EPC contract.” - Raju Ganesan, Head - EPC for Cement & Process Plants, L&T

Hari TR, Vice President and Business Head of FLSmidth India, says that the strong partnership is particularly important in the southern Indian market, where infrastructure needs are growing.

“The project has combined the strengths of FLSmidth as a supplier of productive and energy-efficient cement plants with that of Larsen & Toubro as a reliable turnkey construction player to provide a full EPC solution” - Hari TR, Vice President and Business Head, FLSmidth India

Keeping to deadlines
The strength of the partnership has driven the project quickly forward and was key to overcoming administrative delays early in the process.

“Following the letter of intent, hurdles and legal hindrances were successfully overcome through the close technical support provided by FLSmidth and the timely execution of project engineering services and commencement of supplies,” says Mr. Raju Ganesan, L&T.

He continues: “The relationship between FLSmidth and L&T has benefited the client, too, because the hassle-free project coordination has led to the plant engineering and civil and structural design being completed on time, despite the early delays.”

First cement in 2018
Miller Bahirathan, Deputy General Manager of Project Management at FLSmidth, hails the engineering team for moving proactively in preparing the general arrangements drawings. “When the drawings were completed, and by meticulous planning, we could start supplying equipment four months after the effective date of contract.”

He also points out that the time required for layout was drastically reduced thanks to the proactive engineering approach and the close collaboration with procurement and project management.

New competencies
Major projects often introduce new opportunities. Previous projects had involved importing the crusher, but the Ariyalur brownfield development marks the first time that major components of the DUI crusher have been sourced and manufactured in India. This demonstrates the strong capabilities and capacity of local suppliers who are ready to contribute to the region’s infrastructure development needs.

Given the success of the collaboration between FLSmidth and L&T, there is good reason to look towards future joint EPC projects, according to Mr. Raju Ganesan, L&T, who says, “It is clear we have similar ideas about strategy and commitment to executing projects on time. The success of this project shows that this is a good reference for us to collaborate in future EPC executors in the cement industry.”

Miller Bahirathan

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