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Formulation Technical Operation-3 - CII ...
21-09-2019

         Formulation Technical Operation-3

          TV Ravindra Babu               I Srinivas Raju              Amalin Ugin A
          Lead-Power & Fuel, Power   Section Head - Engineering,   Team Member-Power & Fuel,
                 Generation             Engineering Services           Engineering Services

  Dr.Reddy’s Laboratories Limited                                             Good Health Can’t Wait

                     Company - Profile

FTO3 Plant : INR 28.27
      billions

  Dr.Reddy’s Laboratories Limited                                             Good Health Can’t Wait

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                   Company - Profile

                                                                 Our Products:
                                                              Generic Formulations, including Tablets,
                                                              Capsules,         Injectables,     and       Topical
                                                              creams, is the largest part of our business
                                                              portfolio.
                                                              making            products       across             the
                                                              major therapeutic areas of gastrointestinal
                                                              ailments, cardiovascular disease, pain
                                                              management,          oncology,     anti-infective,
                                                              pediatrics and dermatology.

   Dr.Reddy’s Laboratories Limited                                                     Good Health Can’t Wait

We have presence in all major regions of the world
Commercial
presence in

  30
 countries

  10    API Manufacturing
        Facilities          14   Formulations Manufacturing
                                 Facilities                   09   Global R&D
                                                                   Centres          01     Integrated Biologics
                                                                                           Centers

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                             20th National Award for
                   “EXCELLENCE IN ENERGY MANAGEMENT 2019”
                           16th to 18th September 2019

                                                                Environment
                                                                     &
                                                                 Community

                      Quality                    Availability

                                     Safety

                                                                               Engineering
                      People
                                                                                Excellence

                                                                                               Continuous
                                  Productivity
                                                                                              Improvement

Dr.Reddy’s Laboratories Limited                                                                  Good Health Can’t Wait

                             20th National Award for
                   “EXCELLENCE IN ENERGY MANAGEMENT 2019”
                           16th to 18th September 2019

                                                                Environment
                                                                     &
                                                                 Community

                      Quality                    Availability

                                     Safety

                                                                              Engineering
                       People
                                                                               Excellence

                                                                                              Continuous
                                  Productivity
                                                                                             Improvement

Dr.Reddy’s Laboratories Limited                                                                  Good Health Can’t Wait

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                 Electrical Energy Metrics-2019

Total Specific Energy consumption:                                        Total Energy consumption:

Electrical (KWH/Million)              7772                                Electrical (KWH)                4,16,05,395

Thermal (kcal/Million units )         6548375                                                                  35,060
                                                                          Thermal (Million kcal)

               Equivalent KWH                                                          Equivalent KWH
                                                                                41605395
         7772                       7616                                                                   40774780

              Thermal          Electrical                                             Thermal          Electrical
*Thermal to Electrical conversion factor is 1 Kcal = 0.001163 KWH

    Dr.Reddy’s Laboratories Limited                                                                Good Health Can’t Wait

Energy consumption yearly trend

   Electrical Energy consumption (KWH)                              Specific consumption (KWH/Million units)
                                                                        10697          10087
    51558334
                                                                                                                         6%

                     43500000                                                                                           30%
                                      41605395                                                          7772

      FY-17            FY-18            FY-19                           FY-17          FY-18           FY-19                 %
                                                                                                                        Improvement

    Dr.Reddy’s Laboratories Limited                                                                Good Health Can’t Wait

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   Energy consumption yearly trend

  Thermal Energy consumption (Million Kcal)                    Specific consumption (Million kcal/Million units)

          46756

                                                                           9.7

                           35064            35060
                                                                                           8.1                                  19%

                                                                                                                6.5             24%

          FY-17            FY-18            FY-19                         FY-17           FY-18                FY-19                 %
                                                                                                                                Improvement

       Dr.Reddy’s Laboratories Limited                                                                 Good Health Can’t Wait

Benchmarking with other industries

                                               Dr.
                                                       Jubilant
                                            Reddy’s                                       Infosys
                                                       Baseline
                                            Baseline                        Sun                               Tata
               Parameters                              -2012-13   Lupin                                                        ITC
                                            -2009-10                       pharma       Targets for          Motors
                                                        Target
                                             Target                                        FY19
                                                       for 2020
                                            for 2020
                                                                                      Reduce Per capita
Reduction in Specific Water
                                              40%        12%       NA            NA   consumption by 2%         NA         Water Neutral
Consumption                                                                           over FY18
                                                                                      Reduce Per capita
Reduction in Specific Energy
                                              40%        12%       NA            NA   consumption by 2%         NA         Carbon neutral
Consumption                                                                           over FY18
                                                                                                             Committed
                                                                                      55% electricity
                                                                                                              for 100%
Increase in renewable energy share            25%         -        NA            NA   requirement shall be
                                                                                                             RE without
                                                                                                                           Green Energy
                                                                                      met through RE
                                                                                                             target date

Strive to become water neutral by 2020       100%         -        NA            NA           NA                NA              NA
Reduce in specific generation of
                                              40%         -        NA            NA           NA                NA              NA
hazardous waste
Reduce the quantum of hazardous
                                              40%         -        NA            NA           NA                NA              NA
waste sent by us to landfill/incineration

       Dr.Reddy’s Laboratories Limited                                                                 Good Health Can’t Wait

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Environment Commitment Statement - Update

            ECS Commitment                   Target (Baseline     FY17    FY18            FY19
                                                FY’09-10)

Reduction in Specific Water Consumption            40%            58%     58%             59%

Reduction in Specific Energy Consumption           40%            39%     16%             21%

Increase in renewable energy share                 25%            12%     8%              7.7%

Strive to become water neutral                     100%           44%     46%             53%

Reduce in specific generation of
                                                   40%            53%     47%             51%
hazardous waste

Zero Landfill and 40% coprocessing            Interim Target      81%     91%             87.3%

     Dr.Reddy’s Laboratories Limited                                             Good Health Can’t Wait

Road map to be best in class

Specific consumption (KWH/Million units)

                                                                          Major lever identified are:
    10697
                  10087
                                                                          1. Increase volume by cycle
                                                                             time reduction of top four
                                   7772
                                                                             products
                                                                          2. Upgrade Air Handling Unit
                                                                             Existing Conventional
                                           6083
                                                          5627               blower by EC Blowers
                                                                   5064
                                                                          3. AHU reduced frequency
                                                                             mode operation
                                                                          4. IOT solution for HVAC and
                                                                             utility chillers operation
                                                                          5. Utility cooling tower fan
                                                                             motor replace with EC axil
                                                                             fan and other energy
    FY-17         FY-18            FY-19   FY-20          FY'21   FY'22      efficiency projects

     Dr.Reddy’s Laboratories Limited                                             Good Health Can’t Wait

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 Road map to be best in class

 Specific consumption (million kcal/Million units)

                                                                                    Major lever identified are:

       9.70                                                                         1. Increase volume by cycle
                                                                                       time reduction of top four
                     8.13                                                              products

                                   6.55                                             2.Improve hot condensate
                                                  5.83                              recovery & optimization of
                                                                5.36
                                                                            5.14    steam utilization

                                                                                    3. Improve the boiler
                                                                                    efficiency by boiler tuning
                                                                                    technique's

                                                                                    4.Multiple effect evaporator
                                                                                    steam usage optimization
     FY-17          FY-18         FY-19          FY-20          FY'21       FY'22
        Dr.Reddy’s Laboratories Limited                                                       Good Health Can’t Wait

Key Projects Implemented in 2016-2017

                                                                                                Savings / Annum
S.No                                      Project Description
                                                                                                 (RS - Millions)
 1     Upgraded Air Handling Unit Existing Conventional blower by EC Blowers                           12.91

 2     Improved the burning efficiency of FO by emulsification technology                              3.23
       Eliminated chillers off-line descaling activity by automatic tube Cleaning system
 3                                                                                                     2.82
       installation
       Eliminated individual stand alone de-humidifiers and reduced power consumption
 4                                                                                                     5.93
       of HVAC (Catering to low RH area) by 20%

 5     Existing Aged chiller replaced with energy efficient chiller                                    5.20
       Upgraded Air Handling Unit Existing Dx coil based system with chilled water coil
 6                                                                                                     0.81
       system
 7     Upgraded lighting system by replacing existing fluorescent and CFL lights with LED              1.29

 8     Optimized utility pumps operation based on current duty point requirement                       3.28

        Dr.Reddy’s Laboratories Limited                                                       Good Health Can’t Wait

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Key Projects Implemented in 2017-2018 & 2018-2019

                                                                                      Savings / annum
S.No                                  Project Description
                                                                                       (RS - millions)
  1     Upgraded existing Compressed air distribution system to Ring Main System            1.00
        Effectively reduced the power consumption by installing centrifugal
  2     compressor                                                                          9.60
        in place of 8 no's screw compressors
        Upgraded existing Compressed air drying/de-humidification system by
  3                                                                                         6.40
        installing zero purge loss Dryer in place of purge loss desiccant dryer.
  4     Existing Aged chiller replaced with energy efficient chiller                        6.00
        Upgraded Air Handling Unit Existing Conventional blower by EC Blowers
  5                                                                                         4.50
        phase-II
  6     Introduced eco plugs in AC units to reduce power consumption by 15%                 1.00

        Introduced artic masters in AC units to reduce power consumption & improve
  7                                                                                         0.80
        the cooling efficiency
        Eliminated Heat pump off-line condenser descaling activity by automatic
  8                                                                                         1.40
        condenser tube cleaning system installation

       Dr.Reddy’s Laboratories Limited                                                Good Health Can’t Wait

 Energy saving projects summary

 Implemented             No of          Savings / Annum            Investment Made        Payback
     Year              Proposals         (Rs - Millions)              (Rs- million)       months

      2016-17               30                  51.40                    46.40               24

      2017-18               32                  63.10                    87.10               8.5

      2018-19               27                  21.17                    40.05              14.5

       Total                89                 135.67                   173.55              15.5

       Dr.Reddy’s Laboratories Limited                                                Good Health Can’t Wait

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     Energy conservation improvement Initiatives

Eliminated individual stand alone de-humidifiers & reduced power consumption of HVAC ( Catering to low RH area) by25%

                             The Brine chiller installation eliminated the individual standalone dehumidification
                             unit and reduced Maintenance activity.
                             The chosen proposal was tested by recording the required user and
                             engineering parameter through BMS & EMS system. After system validation &
                             qualification individual dehumidification units removed from respective AHU
                                                            Tangible Benefits
                                1. Reduction of electrical energy consumption in HVAC section
                                                          Brine Chiller Fy(2016-2017)
                                                                                         Carbon Emission
                                  Total power Saved(KWH)         Total Saving in INR
                                                                                         Reduction(Tons)
                                           9,12,960                   59,34,240               740
                                                                                      Intangible Benefits
                               1.Eliminated individual standalone
                               dehumidification unit                              1.Carbon Emission Reduction
                               2.Spare procurement nil                            2.Increase in Fire Safety Ratings
                               3.Safety risk eliminated
                               4.Auto mode operation
       Dr.Reddy’s Laboratories Limited                                                          Good Health Can’t Wait

      Energy conservation improvement initiatives
2. Reduced FO Consumption by 5% using Emulsification technique

                            Emulsification is blending of furnace oil and         FO Emulsification system Fy (2016-2017)
                            about 5 to10 % of water with emulsifying
                            agent.                                                Sl                         Total Saving in
                                                                                     Total FO Saved(KL)
                                                                                  No                               INR
                            The solution needs to be hated up to 50 Deg.C         1            134.5            3230000
                            & mixed properly with circulation pump for 3 to
                            4 hrs. For proper blending.
                                                                                  FO Emulsification system Fy (2016-2017)
                            This Emulsified furnace oil can be used
                            directly to burner without any changes in                            Total
                                                                                  Sl Total FO            Carbon Emission
                                                                                               Saving in
                            existing system, to increase the combustion           No Saved(KL)           Reduction(Tons)
                                                                                                 INR
                            efficiency of the fuel, resulting in reduction of
                            F.O. Consumption by approximately 5 to 7%,            1      135      3230000         397
                            reducing the fuel cost.
                                                                                  Benefits :
                                                                                  improves combustion efficiency of fuel
                                                                                  5% Fuel reduction

       Dr.Reddy’s Laboratories Limited                                                          Good Health Can’t Wait

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   Innovative energy conservation initiatives

   1, HVAC cooling efficiency improved by installing Artic Master And achieved 20% saving on energy consumption

 Artic Master has a very innovative solution in
 increasing the condensing area by adding
 volume and creating vertex motion to the
 refrigerant.
 The increased condensing area makes the
 discharge pressure to drop. The drop in
 discharge pressure reduces the current drawn
 by the compressor.

 This allows refrigerant to expand and sub cool
 and the temperature of the refrigerant leading
 to better condensing (P ∝ T).
                                                      Tangible & intangible benefits
 As a sample study, the Artic Master was                                                               Artic Master Savings
                                                      1. Reduction of electrical energy
 installed at FTO 3 on a 11 ton AC on a trial basis                                            Total power     Total       Carbon
                                                      consumption                           Sl
 wherein:
                                                      2. Air conditioning system efficiency No Saved(KW Saving in         Emission
 1. Two days of power consumption data before                                                       H)         INR    Reduction(Tons)
                                                      improved
     and installation were compared.                                                                                         99.7
                                                      3. Better compliance to cooling                         800000
 2. Savings due to reduced electricity                                                       1 123076.9                  (Conversion
                                                      requirement.                                              Mn
     consumption was calculated to be 25.6%.                                                                            factor of 0.81)
                                                      4. Carbon Emission Reduction

        Dr.Reddy’s Laboratories Limited                                                                      Good Health Can’t Wait

               Innovative energy conservation initiatives

2,Condenser Tube cleaning system installation in Heat Pump to maintain condenser approach temperature and achieved
5% energy saving
                                                           This project involves innovative technology, excellent potential of energy
                                                           savings without effecting the chilling plant normal operation, eliminating
                                                           chiller down time due to off line descaling activity and the system helps to
                                                           maintained chilling plant efficiency at higher side. (1 o C rise in condenser
                                                           approach increases the chiller power consumption by 2 -4%. As chillers run
                                                           the energy wasted due to the rise in condenser approach was high
                                                                                   Tangible Benefits
                                                                 1. Reduction of electrical energy consumption in plant
                                                                           Condenser Tube cleaning system FY-2019
                                                                           Total power     Total Saving in     Carbon Emission
                                                                  Sl No
                                                                          Saved(KWH)             INR           Reduction(Tons)
                                                                     1       215384.6        1.4 Million             174
                                                                 2. Eliminated Heat Pump de-scaling activity
                                                                 3. Eliminated use of de-scaling chemicals
                                                                 4. Heat Pump efficiency improved
                                                                 5. Auto mode operation
                                                                           Intangible Benefits
                                                                 1. Carbon Emission Reduction

        Dr.Reddy’s Laboratories Limited                                                                      Good Health Can’t Wait

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                  Innovative energy conservation initiatives

3, Upgraded air handling unit existing Conventional blower by EC blowers and achieved 35 to 40% energy saving

                                                                    In Pharma company constant power load irrespective of
                                                                    production or no production is because of Utilities in which
                                                                    HVAC has Major contribution in power consumption units.
                                                                                      Tangible benefits
                                                                    1. Reduction of electrical energy consumption in plant
                                                                    EC Motor Blower FY (2018-2019) implementation in progress
                                                                           Total power   Total Saving in Carbon Emission
                                                                    Sl No
                                                                          Saved(KWH)           INR        Reduction(Tons)
                                                                       1       21,52,317       1.4 Mn.          1743
                                                                    2. Power Factor improved Closed to Unity
                                                                    3. Better control on CFM Ramp up and Ramp down
                                                                                     Intangible benefits
                                                                    1. Carbon Emission Reduction
                                                                    2. Noise level maintaining less than 65db which is 23%
                                                                       less than existing belt driven system.
                                                                    3. Reduction in Cooling requirements helps improve
                                                                       efficiency.

        Dr.Reddy’s Laboratories Limited                                                                Good Health Can’t Wait

   Utilisation of renewable energy sources at Dr Reddy’s
                                   Solar power details                                           Solar power consumption
           Type of                         Installed    Generation         % of Overall               2018-19 (FTO-3)
Technology                Onsite/Offsite
            Energy                       Capacity(MW) (Million KWH) electrical energy
 Solar PV  Electrical        Onsite          0.15       193290.00              0.50
 Solar PV  Electrical        Offsite          5.0      Utilization started from April-2019
                     Renewable Energy consumption Across GMO

             Type of                         Installed   Generation         % of Overall
                          Onsite/Offsite
              Energy                       Capacity(MW) (Million KWH) electrical energy            1,93,290
 Solar PV    Electrical       Offsite          47.8           GMO Installed capacity
 Solar PV    Electrical       Offsite          56.0       Project finalization in progress
49.4 Million KWH solar power been utilised across GMO in FY 19 we have avoided carbon
emission by 46,473 tons of CO2e.We have also generated 179.26 TJ of energy using                             5,15,58,334
biomass/rice huskbriquettes, thus eliminating GHG emission by 18,323 tons of CO2

                          Solar Power Plant Installation in FY-19

 We added 15 MW solar power plant in FY 19 and the renewable solar power component
 shall reach to 15% of overall consumption.                                                         Total PowerConsumption
                                                                                                    (KWh)

        Dr.Reddy’s Laboratories Limited                                                                Good Health Can’t Wait

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                             Renewable Energy Trend & Roadmap for GMO

                                                                                                            % OF RENEWABLE ENERGY
 ENERGY IN TERA JOULES(TJ)

                                                      Year wise Energy (TJ)

                    5000                                                                      100%
                    4500                                                                      90%
                    4000                                                                      80%
                    3500                                                                      70%
                    3000                                                                      60%
                    2500                                                                      50%
                    2000                                                          38%     40% 40%
                    1500                                                 14%                  30%
                    1000          12%    12%  14%   12%                                       20%
                                                          8%      8%
                     500                                                                      10%
                       0                                                                      0%
                              FY-14 FY-15 FY-16 FY-17 FY-18    FY-     FY-     FY-     FY-
                                                             19(Est) 20(Est) 21(Est) 22(Est)

                             Renewable energy in TJ    Non-Renewable energy in TJ   % of Renewable energy

                             Dr.Reddy’s Laboratories Limited                                                                                     Good Health Can’t Wait

                                     Utilisation of waste material as fuel
                                  Hazardous waste disposal
FY 17                                                                                                   Hazardous waste disposal
Total Hazardous Waste Disposal – 1271 Tons                                                            1271
Total Hazardous Waste Recycled – 564 Tons
Total Hazardous Waste Sent for incineration/ Landfilling –
707 Tons
Percentage Recycle – 44 %                                                                                                           825               825
FY 18                                                                                                                                                           707
Total Hazardous Waste Disposal – 331 Tons                                                                                                 564
Total Hazardous Waste Recycled – 254 Tons
Total Hazardous Waste Sent for incineration/ Landfilling –                                                  331
76 Tons                                                                                                                                         254
Percentage Recycle – 77 %                                                                                                                                             76
FY 19                                                                                                                                      0
Total Hazardous Waste Disposal – 825 Tons                                                                       Waste Recycled Waste Sent for
Total Hazardous Waste Recycled – 825 Tons                                                        Waste Disposal and to cement   incineration/
Percentage Recycle – 100 %                                                                                        industries     Landfilling
                                                                                         2016-17      1271            564            707
100% waste material recycled and sending                                                 2017-18       331            254             76
to cement industries as fuel                                                             2018-19       825            825              0
                                                                                              2016-17                       2017-18       2018-19           Linear (2016-17)

                             Dr.Reddy’s Laboratories Limited                                                                                     Good Health Can’t Wait

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   GHG Inventorisation
                  Scope 1 Emission                                    Scope 2 emission                                      KgCO2/Millions
   12000                                                   50,000                                                             of product
               10160                                                 48,298                                         14000
                                                                                                                             12503
   10000                                                   48,000                                                                    12075   11838
                                                                                                                    12000
                              8330           8280                                                                                                    10262
   8000                                                    46,000                                                   10000

                                                           44,000                                                    8000
   6000

                                                                                                 41,853              6000
                                                           42,000                  41,493
   4000
                                                                                                                     4000
                                                           40,000                                                    2000
   2000

                                                           38,000                                                       0
       0                                                                                                                     2015-   2016-   2017-   2018-
                                                                     Scope 2       Scope 2       Scope 2
              Scope 1        Scope 1        Scope 1                                                                           16      17      18      19
                                                                    emission in   emission in   emission in
           emission in MT emission in MT emission in MT              MT CO2        MT CO2        MT CO2       KgCO2/Millions
                                                                                                                             12503   12075   11838   10262
            CO2( FY17)     CO2 (FY18)     CO2 (FY19)                  (FY17)        (FY18)        (FY19)        of product

                                        YOY target to reduce CO2 emission by 5%
49.4 Million KWH solar power been utilised across GMO in FY 19 we have avoided carbon emission by 46,473 tons of
CO2e.We have also generated 179.26 TJ of energy using biomass/rice huskbriquettes, thus eliminating GHG emission by
18,323 tons of CO2

           Dr.Reddy’s Laboratories Limited                                                                                   Good Health Can’t Wait

  GHG Inventorisation reduction project
  1 stage Wet Scrubber Replace with 2 Stage Hybrid Wet Scrubber in Coating Machine

  Hybrid wet scrubber installed to reduce the emission level(100mg/m3 to 30
  mg/m3) at the outlet of Coating Machine/Fluid Bed Equipment
 Comparisons between 1 stage & 2 Stage Hybrid Scrubber:
 Parameters               Single Stage Scrubber              Hybrid Scrubber
                          Use for Handling Only              Can Handle particulate Matter and
 Material Handling
                          Particulate Matter in Gas.         solvents
                          Emission at the outlet of duct     Emission at the outlet of duct is
 Emission Control
                          is Approx. 100mg/m3                Approx. 30 mg/m3
                          Solvent Scrubbing is               Solvent scrubbing is Approximately
 Solvent Scrubbing
                          Approximately 10%.                 60%.
                          Low Operational &                  High Operational & Maintenance
 O & M Cost               Maintenance cost compared          Cost compared to single stage
                          to Hybrid Scrubber.                scrubber
                          Less effluent generated than       More effluent generated than single
 Effluent generation
                          hybrid scrubber.                   stage scrubber
                          Less Hazardous Waste
                                                             More Hazardous Waste generated
 Hazardous Waste          generated compared to Hybrid
                                                             ( Slurry + damaged Packing
 generation               Scrubber.
                                                             Material)
                          ( Bottom Slurry)

           Dr.Reddy’s Laboratories Limited                                                                                   Good Health Can’t Wait

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                   Green supply chain/Fly ash utilisation

                                 Green Purchase Policy

      Dr.Reddy’s Laboratories Limited                                                                             Good Health Can’t Wait

               Fly ash utilization & boiler soot utilisation

                          Fly ash utilisation                                                     Boiler Soot utilisation
                                                                                         17000               17000               17000
             11537125         11537125       11537125

                     10267610        10267610                10267610

                                                                                                                         5400                   5400
                                                                                                      5400
                                                                 2016-17                     5000                5000                   5000
                                                                 2017-18
                                                                 2018-19
                                             Waste Sent to
                                                                                                                                   Waste Sent to
                Fly ash                      cement/Brick                                  Boiler Soot
                            Waste Recycled                                                                   Waste Recycled         cement/Brick
             Generated (KG)                    industries                                Generated (KG)
                                                                                                                                 industries industry
                                                industry
                                                                               2016-17       17000               17000                  17000
   2016-17         0               0               0
                                                                               2017-18       5000                 5000                  5000
   2017-18     11537125        11537125        11537125
                                                                               2018-19       5400                 5400                  5400
   2018-19     10267610        10267610       10267610                                           2016-17     2017-18          2018-19

Fly ash sending to brick industries utilisation                            Boiler soot sending to cement industries
                                                                           utilisation

      Dr.Reddy’s Laboratories Limited                                                                             Good Health Can’t Wait

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                       Energy Measurement and Monitoring

          Daily Monitoring Report of Power Management System

           Dr.Reddy’s Laboratories Limited                                                                        Good Health Can’t Wait

     Energy Measurement and Monitoring
                                                                                            POWER MANAGEMENT SYSTEM
                                                                                  Substantial Reduction of
                                                                                 • Production loss due to frequent Stoppages
                                                                                    of Manufacturing Equipment

                                                                                 •    Stack Losses through Boiler Chimney
                                                                                      Due to Frequent Power Failures & Start Ups

                                                                                 •    Water Consumption Due to Frequent
                                                                                      Stoppages of Equipment & Boilers
                                                                                            UTILITY MANAGEMENT SYSTEM
                                                                             •       Start/stop of Pumps, Cooling tower fans with feedback.
                                                                             •       Controlling & optimum utilization of pumps & cooling
                                                                                     tower fans.
                                                                             •       A Single Window Automation System for Centralized
                                                                                     Monitoring , Controlling of Utility equipment's to Improve
➢ Qualified and trained competent engineers to Operate & control real time
  utility operations round the clock.
                                                                                     the Plant Performance.
  ( In compliance to 21 CFR Part 11).                                        •       Removal of manual log books.
                                                                             •       Alarm & Trend management for proactive actions.
➢ PMS, UMS, BMS, EMS & Effimax for measuring, monitoring and control of
  Power, Utilities, HVAC and Steam boilers.
                                                                             •       RS Energy Matrix for Equipment OEE on web ctrl

           Dr.Reddy’s Laboratories Limited                                                                        Good Health Can’t Wait

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           Team work in Encon Projects

                                                                                                    Different work level
                                                                                                    team members &
                                                                                                    cross function team
                                                                                                    has worked for idea
                                                                                                    generation
                                                                                                    ,implementation and
                                                                                                    idea validation.
                                                                                                    Identified Encon
                                                                                                    Projects are
                                                                                                    Implemented by
                                                                                                    Qualified and trained
                                                                                                    Executive through
                                                                                                    Change
                                                                                                    control note with Risk
                                                                                                    assessment and
                                                                                                    mitigation plan In
                                                                                                    compliance to 21 CFR
                                                                                                    Part 11.

Dr.Reddy’s Laboratories Limited                                                               Good Health Can’t Wait

                 Energy Management System

                                           Energy Manager

                                       Lead all top-down initiatives
                                    Institutionalize ECMs across units
                                    Track & Report energy performance

                                                                                        Top Management
         Engineering Head
                                                                          Guide for implementation & review all Top-down
     Guide & review all bottom-up                                                           initiatives
                 initiatives                                                          Lean & Six Sigma Projects
                                                                                      Energy PACE Projects

                                             Manager Engineering

                                             Lead all bottom-up initiatives
                                             Implementation of ECMs
                                       Track and report energy performance

Dr.Reddy’s Laboratories Limited                                                               Good Health Can’t Wait

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21-09-2019

  Power & Fuel cost reduction – Approach at Dr.Reddy’s

            Every idea will pass through 5 stages

      Dr.Reddy’s Laboratories Limited                                                                 Good Health Can’t Wait

Projects implemented through kaizens
                                                      Kaizen No: 01
                                                                               Generation      Created By
                                        22-09-2018
 Date Of Completion                                          Team Name           riders
 Kaizen no:
 Title :optimization lighting at MME plant
 Before :Earlier in WWRF MEE plant 17 numbers of lights      After :Only 4 no’s of lights will be in on condition at the time
 were used switch on even in non operational schedule to     of non operation of MEE plant.
 maintain minimum illumination . Each light capacity is 45   :4*45*10=1.8 kw/day
 watts , : 17*45*10=7.650kw/day                              Savings =175.5kw/month

      Dr.Reddy’s Laboratories Limited                                                                 Good Health Can’t Wait

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21-09-2019

              Environmental Recognition Received

Dr.Reddy’s Laboratories Limited                                             Good Health Can’t Wait

                        % Investment on Turnover

    Encon Projects Investment /
  Company Turnover (Mn INR) 2018-                  Energy saving projects summary
               2019
                     40.05                                         Savings /     Investment
                                         implemented   No of                                Payback
                                                                    annum         Made (Rs
                                             Year    Proposals                              months
                                                                 (Rs - millions)   million)

                                          2016-17       30          51.40        46.40       24

              28270                       2017-18       32          63.10        87.10       8.5
                                          2018-19       27          21.17        40.05      14.5
        Investment     Turnover(Mn)        Total        89         135.67        173.55    15.35

Dr.Reddy’s Laboratories Limited                                             Good Health Can’t Wait

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21-09-2019

          Innovative technologies implemented at Dr.Reddy’s
           World Class warehouse Facility
 Built World Class WH Facility

1. Streamline/ Linear Material flow from Receipt to Dispensing
2. Speed of Operation with reduction in headcounts
Incorporating Automation solution such as
1. Conveyor Automation
2. Air Tube Transfer for Sample & Document Transfer
3. Robots for Drums / Container Cleaning
                                                                         Benefits
4. Manipulator & lifting devices for Handling Drums/ Containers
                                                                     •    Mistake Proof Packing & Muscle Power Reduction)
5. Compliance by incorporating of World Class Solutions
                                                                     •    Serialization & Non Serialization packing formats can be handled (300+ SKUs)

    End of Line automation and AGV implementation                    •    Prevent the Risk of product Mix up
A complete automation solution at the end-of-line packing has•            Automatic Air, Sea Shipment & slip sheet pallet programmed in palletizers -
been commissioned at our manufacturing facility.                     •    Can handle all bottle and blister packing formats and sizes. Flexibility is built in to handle future packing
The packing solution includes                                             requirements
1. an automated case packer,                                         •    Regulatory and Competitive advantages. Online digitized labels - generation and application
2. robotic palletizer and                                            •    Prevented installation of ~250 Meters of Mechanical conveyors with implementation of AGVs.
3. auto-guided vehicles.                                             •    Highly innovative technologies implemented for safe operations
This facility provides a seamless integration for the material •          90% of the packing & ware house operations will be simplified and automated without any changes in
transfer of the finished goods and the warehouse                          the Business Process.

               Dr.Reddy’s Laboratories Limited                                                                                                   Good Health Can’t Wait

     OUTCOME BASED SERVICE – OBS/IOT
                                                     Idea Description
▪ High Energy Consumption in HVAC Systems. 50 to 55% of the total power Consumption. Annual Spend ~ 90 Crores.
▪ Ageing Assets. Periodic Maintenance Efforts are more. Monthly and Quarterly Schedule. Example for 250 AHUs means
  1000 PMs are scheduled annually excluding Breakdown Maintenance.                                            Plant 1 - EB1-
▪ High Man Power – SLA for Operations and Maintenance. Annual Spend ~6 Crores is the total cost of SLAs. Server 01
▪ Inadequacies in maintaining environmental conditions. Example - Temp NMT25 Degrees , Rh
21-09-2019

                  Certifications, Awards and Accolades

                                                                                                IInd best in Lean Six Sigma National level
   Global Serialization Implementation Program              Won GMEA challenger award           competition by CII

Awards and Benchmarking - FTO3
1,Global Serialization Implementation Program award
received from Emerging Technologies, ITE&C
Department, Government of Telangana, India.
2, GMEA award-2013 & 2015 (Challengers award-
Mega Large Business)
3, QC Forum of India – Gold Certificate.
4, 1st Runner Up at the Lean Six Sigma National
Level Competition conducted by CII
5, Benchmarking POBOS pharmaceutical operations
benchmarking                                          End Line Automation (Case packing,
                                                      Shipper Conveying & Auto Palletization   E- pedigree Go live in FTO-3
                                                      and ASRS)
          Dr.Reddy’s Laboratories Limited                                                                   Good Health Can’t Wait

          Dr.Reddy’s Laboratories Limited                                                                   Good Health Can’t Wait

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