Mahindra Heavy Engines (MHEL) recently became the first Indian manufacturing unit in the country and the third in the world to double its energy productivity, which would have significant impact on its energy costs. This was achieved by the company’s unit in Chakan which has become energy smart. This unit has capacity to make 860 engines a day and makes captive supplies to Mahindra SUVs, trucks and power gensets in the 1.2-9.3 litre range. With this initiative, the company has achieved 21% reduction in energy costs apart from the positive impact on the environment through efficient energy consumption.
MHEL achieved this record in four years through a combination of technologies from energy-efficient lighting, air-conditioning, motors and appliances, usage of alternate fuels and smart metering for real time monitoring of energy consumption along with other natural resources. The company had committed to achieve efficiency levels as part of the Climate Group EP 100 programme in alliance with the Climate Group. The company achieved manufacturing efficiency improvement through cycle time reduction, production shift optimisation, resource optimisation and built flexibility in the process to avoid addition of equipment.
Hitting the ball straight, Vijay Kalra, CEO, Mahindra Vehicle Manufacturers & Chief of Manufacturing Operation, Automotive Sector, M&M, averred, “Around 60-70% of the variable cost they incur was energy cost. As energy price is going up, this kind of reduction has an impact on the bottom line”. Though their volumes were going up, the gap between daily requirements and capacity was reducing y-o-y and daily requirement can be met in a single shift, he said.
Anirban Ghosh, Chief Sustainability Officer, Mahindra Group, said 20 Mahindra Group companies had signed up for these energy productivity and renewable energy programme and 12 companies are on their way to achieve targets approved as they look to become carbon neutral by 2040. Ghosh said they recently achieved a `100-crore benefit by achieving zero waste landfill across 14 sites at group companies. They have also grown their green revenues from their green portfolio to the tune of $400 million.