Overview-HCCBPL Water Stewardship

Water Cost Economics

Mr. Sanjay Sharma

Executive Director-Supply Chain

Hindustan Coca-Cola Beverages Pvt. Ltd.

World :2025 Water Stress Rate of Change

Classified - Confidential

SOURCE-TED-JOE RAZZ-TCCC

Overview -India Water Scenario

Water Demand projection

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• Water demand is expected to double by 2050

• Agriculture will continue to dominate – accounts for ~ 70% of water demand.

• Industrial Water demand expected to Increase from 6 to 10% by 2050

Source : National commission for Integrated Water Resources development plan, Ministry of

Water resources India,

Classified - Internal use

Source : “India Water Scenario – Macro level picture” by Bharat Sharma

, International Water Management Institute, New Delhi

Economic Valuation of Water

4

Operation &

Maintenance cost Capital Cost

Opportunity Cost Economic

Externalities

Environment

Externalities

Sustainable Value of Water

in use

Govt. Public & private partnership for grey cost estimation

required

5

Opportunity Cost

Economic Externalities

Environment Externalities

Inappropriate allocation of water incur opportunity cost.

Two different user at two different location can have different

cost and variation in availability .

Cost involve in balancing adverse out put of economic

externality with respect to public health and eco system

(Example-Man made eco system misbalance disasters &

water borne illness at down streams due to pollution on

surface and ground water)

Upstream diversion of water & polluting down stream water

both aspect involve money to ensure availability and clean

the water to make it reusable for consumption

Classified - Internal

use 6

Key interventions to progress

Water Stewardship Water Stewardship

HCCBPL (Own + Co-packer) Water Stewardship

• Vision

• Business challenges

– Availability

– Regulatory

• HCCB Strategy

– Water Conservation

– Stewardship through Public Private

Partnership

• Next Steps…

Vision

• Be a recognized leader in water stewardship

• Develop sustainable solutions for the company and community water management.

• Drive inclusive business growth by 4 R road map (Reduce, Reuse, Recycle & Recharge)

Classified - Internal use

• Surface water

– Requires approvals and is regulated through authorities

– Community – Key player in the approval process

• Ground Water

– Increasingly Stringent abstraction laws

– limits water withdrawal in water stressed areas.

– Requires to recharge water more than the permit to withdrawal.

– Increasing Ground water abstraction permit

• Municipal Supply

– Regular water supply as per regulations – a challenge

The Onus is on Industry to Champion Water Sustainability…

Challenges in Water Availability….

• “ZERO Wastewater Discharge Condition” for

Plant operation

• Necessitates disposal of treated

wastewater within the plant premises.

• Wastewater to be disposed thru

development of “Green Belt”

• More than 50% (HCCB & Co-packer) plants are

classified “ZERO Discharge”

• Treated wastewater disposal rate varies

from 25 to 55 m3 /hectare/ day

• Challenges

– Availability of land for disposal of waste

water

Conditions necessitate control on usage and disposal

…..And Wastewater Disposal

ME WE WORLD

People

Active Healthy

Living

Beverage Benefits

Responsible

Marketing

Communities

Women

Community

Foundations

Human &

Workplace Rights

Environment

Water

Packaging

Carbon

Sourcing

TCCC Sustainability Framework- Key driver towards Water

stewardship

Together we can

promote well-being

for the people who

enjoy our brands

everyday

Together we can create

a better future for local

communities where our

operations help raise

the standards of living

Together we can

create a better future

for the finite natural

resources that we all

share

Reduce

Replenish

Recycle

Reuse

Implementing 4 R policy on water conservation….

HCCBPL (Own+ Co-Packer) Water conservation strategy

Implementing 4-R policy on water conservation….

Reduce

Replenish

Recycle

Reuse

•HCCB has one of the largest returnable

glass mix

• In 2014 Returnable packs accounted

for 60 % of the Physical case volume

• ~ 50 % Improvement in Water Usage

over last 7 years.

Water Management How have we evolved….

HCCBPL & Co-Packer WUR Trend

Year WUR L/L

2007 3.6

2008 3.3

2009 2.7

2010 2.3

2011 2.2

2012 2

2013 1.85

2014 1.75

Water Reuse for Non-product , non –package contact applications only…..

Reduce

Replenish

Recycle

Reuse

Opportunity for reduction in Plant Water demand - ~ 50 -100 m3/day

Infrastructure Investments to “Reuse”

WATER REUSE – BACKWASH RECOVERY

- Back Wash accounts for 6-8 %

of total Water usage

- Potential Recovery of ~ 98 % thru

optimal usage

- Filtration and Chlorination for microbial

control

-Water collected in Raw Water Tank

- Replicated across >90% of HCCB Locations

Backwash

Water

from

Process

Recovery

Header

Backwash

Recovery

Tank

Chemical

Addition

Garnet

Filter

Raw Water

Storage

Tank

Sediment

Tank Clear

Water

well

Schematic- Back Wash Recovery

100 kl

98 kl

Opportunity for reduction in Plant Water demand - About 24 m3/day

Infrastructure Investments to “Reuse”

Vacuum line to

equipment

Glycol returned to hot

Glycol line equipment

Holding tank

Paramix Vacuum

Pump

Recirculation

Pump

Glycol from

line equipment

Fresh soft water

make up

Drain

Valve

Schematic of Vacuum Pump Recovery VACUUM PUMP WATER REUSE

- Potential of ~98 % water recovery

thru optimal usage

-Closed Loop System ensures

minimal contamination risks & high reuse

-Replicated across all HCCB locations.

Opportunity for reduction in Plant Water demand - ~130-150 m3/day

Infrastructure Investments to “Reuse”

DECAUSTICIZER RECOVERY

-Bottle Washer Accounts for 40 - 60 % of

water used in RGB Lines

-Recovery potential of > 75 % of water

use.

-Water reused in pre-final rinse of

bottlewashing and utilities, if any excess.

- Replicated across >90 % locations of

HCCB.

pH Correction

Tank

Water from

B/W s Pre final

compartments

Cl2, FeSO4

Degasser

Tower

5u

Sand

Filter

Sedimentation

Tank Clear

Water

Tank

Carbon

Filter Decaustiziser

Decaustizised

Water Storage

Tank

Chlorine

4 ppm

B/W final rinse

Except the last Jet

PHE

Schematic- Decausticizer Recovery

System

100kl

75kl

UF – RO BASED ADVANCE WASTEWATER

RECOVERY

-Accounts for 8 – 10 % of water used in

the plant

-Overall process recovery > 60 %.

-Treated Water meets drinking water

standards

-Water Reuse for all utilities , process area

cleaning etc..

- Replicated at ~50% Locations of HCCB.

Coagulation Multimedia

Filter

Duel Media

Filter

Micron

Filtration

Ultra Filtration

Degasser

Reverse Osmosis

Non Process Application

(Boilers, Cooling Towers

)

Solar

Pond

Schematic- Advance Waste

Water Recovery thru UFRO 100kl

60kl

40kl

Opportunity for reduction in Plant Water demand - ~ 50–100 m3/day

System Unique to HCCB

New Technologies Enabling us to move

“Beyond Compliance”

HCCB has invested over 10.0 MM USD in Water recovery schemes over the last 5 years

46

71

91

96

100

100

100

0 20 40 60 80 100

UF - RO

Tertiary

Decausticizer

Backwash

PET rinse

Vacuum pump

Condensate

% CBO Operation

Re

cov

ery

Sch

em

es

Water Recovery Scheme Coverage

Investment in Water Recovery Schemes Across India…

Reduce

Replenish

Recycle

Reuse

New Technologies Enabling us to move “Beyond Compliance”

Wastewater

Tertiary

treatment

RO - 1

Secondary

Treated

Wastewater

RO water for Non product

contact use (Utilities usage)

High TDS RO Reject

to evaporation plant

Mechanical Vapor

Recompression

Evaporation

(MVRE) &

Crystallizer

Recovered water TDS < 150 ppm (Conveyor

Lubrication, Floor Cleaning in process areas)

Salt

(Approved Landfill Sites)

RO - 2

Schematic of 2 pass RO

100kl ~85kl

~15kl

~14kl

5mg/l

TOTAL DISSOLVED SOLIDS

MANAGEMENT IN EFFLUENT

- 2 Stage RO for 85% wastewater

recovery.

-RO reject >10% solids is concentrated

through evaporation plant.

-Treated Water meets drinking water

standards

- Crystallizer plant Separate the salt.

- Salt disposed to “Approved Site”.

Potential technology for 100% Water reuse and Zero discharge in future…..

System Unique to HCCB

Exploring Next Steps in Water recycle

• Water reuse Project.

- Closed loop water reuse for Bottle washer and CIP wastewater.

- Captured ahead of discharge to waste water plant

- Water reuse for Product Contact application (Not yet approved for product use).

• Multi-barrier Design closed loop system with cutting edge technologies combining Ultra Filtration Reverse Osmosis (UFRO), evaporation & Ultra Violet treatment

• Benefits

• Fresh Water Demand Reduced (~15 - 20%)

• Waste water plant load reduced (~40 - 50%)

• Reduction in land for waste water discharge

Pretreatment

and MBR

based

Biological

Treatment

RO - 1

Bottle washer &

CIP wastewater

Water for product contact

Application

High TDS RO Reject

to evaporation plant

Evaporation

and

Crystallization

Plant

Salt

(Approved Landfill Sites)

RO - 2

Medium

Pressure

Ultra violet

system

Makeup water

Schematic of Water Reuse Project

Brief : Process waste water from bottle washing and CIP is being treated through

state of the art plant consisting pretreatment (aeration, membrane bio reactor),

post treatment ( Reverse osmosis) and MVRE, Crystallizer and centrifuge

The treated water quality meets IS 14543 and IS 10500 standards

Water for Future - Innovation

Investment INR 200 MM at Goblej- Gujarat

Water for Future- Recognition

Classified - Internal use 25

UNSESCO-Water Digest- Water Re use

project of the year 2012-2013 award at

Delhi

International Water Association- Asia

pacific innovation award-2012 Awarded

at KOREA,

Public Private Community Partnership

Reduce

Replenish

Recycle

Reuse

Water

Replenishment

Promoting

Best Irrigation

Practices

Safe Drinking

Water initiatives

Sanitation and

Hygiene

Projects

Community Engagement Framework on Water

Before

After

Nemam Lake • In Partnership with Local Government , NGO and community

• De-silting completed

• Creates a Water Recharge potential of 154,000 m3/ annum

• Improves Percolation • Increases storage area

• Benefits 200 farmers and 600 families in the area .

Leading a sustainable partnership in water replenishment…

Water Recharge Projects

Water Recharge Project - Gujarat

Created Rainwater recharge

potential of 205973 m3 at

• DPS, Bopal

• GWRDC wells in and around

Gandhinagar

• Goblej Lake

Rainwater recharge projects in pipeline

• Foiwala de-silting for 1,60,000 m3

worth

• Artificial recharge structures at

Memdabad worth of Rs. 3 MM under

MOU with GPCB with recharge

potential of 1,03,680m3 partnering

GWSSB

• Artificial recharge structure at Patan

worth of Rs.6 MM under MOU with

GPCB with recharge potential of

8,83,000 m3 partnering Samarpan

Trust

Safe Drinking water and Sanitation projects are integral part of Source Vulnerability Assessment study

Drinking Water Projects

• ‘Elixir of Life’ & “support my school”

project

• Drinking water to Government

Schools benefitting children under

support my school campaign

• Community based drinking Water projects

• Benefiting households at

neighboring villages at Goblej,

Rajasthan, Tamilnadu

• Improving Sanitation

• Construction of toilets in the state of Gujarat, Assam and Tamilnadu.

Drinking Water & Sanitation Projects

Drip irrigation projects with State Govt &

farmers at Kaladera in Rajasthan

• Completed 331 projects covering

165.5 hectares of agricultural land

• Estimated water conservation of

198,600 m3 / yr

• 170 hectares of area for drip

irrigation completed

• Projected water conservation of

200,000 m3/annum.

Benefits to farmers

• 40-50% water saving under drip over conventional irrigation method.

• In absence of flooding - Eliminates soil salinity issues

• Higher crop yield resulting in higher

income.

Drip irrigation project at Jaipur

Promoting Efficient Agricultural Practices

Water Stewardship

• At HCCB, we will become water positive (200% +) by end of 2020 at national level

thru

• Optimizing In-house water use

• Restoration & revival of Community Water Bodies

• Rain water harvesting

• Drip Irrigation

• Ensure green field locations have

• Surface water & Municipal water as the primary source

• Creation of land based reservoir to capture Rainwater Run-off and support to

peak Water demand

• Focus on

• Safe Drinking Water

• Sanitation

• Vocational Training on Water Conservation for local community

Way Forward

33

Questions ?