Background and Customer Profile: The Consumer Packaged Goods (CPG) industry has been going through turbulent times in a COVID altered world. The challenges include rising raw material costs, unpredictable demand, declining profits, pricing pressures, fluctuation in consumer preferences, and demand for environment-friendly and sustainable products. The customer’s objective was to become energy efficient and reduce operational expenses, and for this an energy audit had to be done.
After careful evaluation, the customer chose LTTS (L&T Technology Services) to conduct the energy audit across its 35 sites.
Understanding Energy Audit and the Challenges: An energy audit is an effective tool in defining and pursuing a comprehensive energy management program. It identifies the potential areas for energy efficient measures and for assessing their financial viability. The main goals are to reduce energy losses/wastage and improve overall performance.
LTTS had to identify the gaps in the energy metering and monitoring infrastructure and analyze the impact of plant performance on energy cost. The goal was to reduce operational expenses by 3 percent of plant energy usage.
LTTS’ Approach: The energy conservation opportunities were identified, and the energy monitoring information was hosted on the cloud at enterprise level. The OPEX opportunity was compiled to highlight the areas where operational costs could be reduced. Finally, LTTS gave a cost estimation for the potential CAPEX/OPEX opportunities, indicating the probable ROI.
Business Outcomes: LTTS’ energy audit benefited the client in numerous ways:
- Processes and plants became more energy efficient
- Findings from energy monitoring and audit are aligned with the plant after every site visit
- 35 sites (out of which 3 are pilot sites) audited in 10 months