Economy & Market

Logistics, much to achieve

Published

15 years ago

January 4, 2011

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The Indian cement companies spend around 18 per cent of their operating income on logistics, both inbound and outbound. Top 30 cement companies spent more than Rs 10,000 crore to carry cement to the consumer in 2009-10 while the industry has been continuously making efforts to reduce logistic costs. The recent downtrend in cement business, which saw profit margins shrink to 20-25 per cent from 35-40 per cent, made cement makers refocus on logistics management. And this proved beneficial to many manufacturers.

Using more railway routes than roads, shrinking lead distance and opting for sea-routes wherever possible were some of the measures the industry explored. Currently, for every 50-kg bag of cement, the logistics cost comes to around Rs 18-25 by road and Rs 12-15 by railway, depending on the distance. The average cost of carrying cement by railways has also gone up over the years. From Rs 95 per tonne km in 008-09, the cost has almost touched Rs 100 in 2010-11. Road freights are determined by multiple factors, including the principle component, diesel. Thanks for the administered prices of this fuel, road transportation is a viable option up to a lead of 300 km. Above that, railway is economical. Sea route is limited largely on the western coast, where the draft is enough for bulk transportation. Worldwide, 70 per cent of the cement movement is by sea compared to just 1-2 per cent in India.

The cement industry believes that reducing logistic costs in isolation is not achievable, without considering the serviceability of the system. Large cement makers are focusing on an appropriate mix of the two. Efficiency and technology can make a large difference to cement logistics. Mechanisation (in road transportation) is the key that can make a huge difference to cement logistics. But this needs a collaborative effort and no company can solely take this forward.

Concrete

WCA Welcomes SiloConnect as associate corporate member

Published

10 hours ago

April 13, 2026

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The World Cement Association (WCA) has announced SiloConnect as its newest associate corporate member, expanding its network of technology providers supporting digitalisation in the cement industry. SiloConnect offers smart sensor technology that provides real-time visibility of cement inventory levels at customer silos, enabling producers to monitor stock remotely and plan deliveries more efficiently. The solution helps companies move from reactive to proactive logistics, improving delivery planning, operational efficiency and safety by reducing manual inspections. The technology is already used by major cement producers such as Holcim, Cemex and Heidelberg Materials and is deployed across more than 30 countries worldwide.

Concrete

TotalEnergies and Holcim Launch Floating Solar Plant in Belgium

Published

10 hours ago

April 13, 2026

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TotalEnergies and Holcim have commissioned a floating solar power plant in Obourg, Belgium, built on a rehabilitated former chalk quarry that has been converted into a lake. The project has a generation capacity of 31 MW and produces around 30 GWh of renewable electricity annually, which will be used to power Holcim’s nearby industrial operations. The project is currently the largest floating solar installation in Europe dedicated entirely to industrial self-consumption. To ensure minimal impact on the surrounding landscape, more than 700 metres of horizontal directional drilling were used to connect the solar installation to the electrical substation. The project reflects ongoing collaboration between the two companies to support industrial decarbonisation through renewable energy solutions and innovative infrastructure development.

Concrete

Cortec® Corporation applauded for its strong safety performance

Published

10 hours ago

April 13, 2026

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Cortec® Corporation has been recognised for its strong safety performance, receiving its sixth Governor’s Workplace Safety Award for its outstanding performance in 2025. As a Silver Achievement recipient, the company continues to maintain safety metrics well above national industry averages, an impressive accomplishment for a chemical manufacturing organisation. This achievement reflects Cortec’s proactive approach to workplace safety, focused on early hazard detection and employee involvement. The company will be formally recognised at the Minnesota Safety and Health Conference in May, highlighting how industrial companies are effectively strengthening workplace safety standards.