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small and medium enterprises (SMEs) sector has been at the forefront of
employment generation and growth. Assocham, the industry body, foresees
that the Indian SME sector’s contribution to Gross Domestic Product
(GDP) will touch a staggering 22 per cent by 2012, up from the present
level of 17 per cent. With unemployment rising at an alarming rate,
growth of this sector is critical for the country. According to the
Bureau of Energy Efficiency (BEE) energy cost is the largest component
of production cost for the Indian SMEs.
Brick industry is an important
sector in SMEs. It is a traditional craft whose products have always
been in great demend. At the moment, rising energy costs and lightening
environmental regulations are the burning issues that confront brick
manufacturing in the SME sector. In view of the sustained growth in the
housing and construction sector, the demand for bricks continues to
grow. Sadly, there is little augmentation of capacity in the traditional
clay brick production. In the face of adversity faced by clay brick
producers, a silent revolution is underway with the emergence of fly ash
brick production.
There are highly positive
market trends that are driving the growth of capacity of fly ash brick
production. There is emergence of thousands of industrial units that
have invested in captive generation capacity for coal based power
production (greater than 1HW). With the proliferation of large scale
power producers, fly ash availability in large clusters in Orissa
(Odisha), Chhattisgarh, Maharashtra and West Bengal is relatively easy.
Additionally, the environmental regulation has a positive disposition
towards fly ash brick production at the level of small scale production.
Select Pollution Control Boards, as in Maharashtra, have accorded a
"green status industry" to fly ash brick production SMEs.
Two other important drivers
guide the investment in new fly ash brick production units - market
growth and easy availability of technology. The government, as a user,
has been instrumental in spurring the use of fly ash bricks in building
construction in preference to burnt clay bricks. As a result, there has
been a proliferation in usage of fly ash building products in government
and institutional buildings. The Development Alternatives World
Headquarters Building has set a benchmark in the use of fly ash bricks
with exposed brick work for interior and exterior usage. Fly ash
technology has also reached a maturity level with dominant players like
TARA Machines and Institute for Solid Waste Research & Ecological
Balance (INSWAREB) engaged in offering robust technology solutions for a
wide spectrum of fly ash types. Large fly ash brick producers have
emerged and new capacity addition is taking place at a breakneck pace.
In the words of Malcolm
Gladwell: ‘The Tipping Point’ is reached. The tipping point is the
critical point in an evolving situation that leads to a new and
irreversible development. q