Economy & Market

Logistics harbinger of next disruptive change

Published

12 years ago

August 31, 2014

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Though the industry is elated about improving sale volumes, rising input costs in manufacturing have drastically shrunk the profit margins. The industry is already performing at its peak efficiency. So where is the scope to lift the bottom-line? Perhaps, logistics will be the next game changer for cement industry.

The last decade has by and large been very good for Indian cement industry. The industry has grown at a CAGR of 8.4 per cent and has made record capacity addition of 130 million tonnes over the last ten years. However, the recent hiccups in Indian economy have rattled the industry. As growth slows down the gap between demand and supply has widened. Add to this the dilemma that while costs are spiraling upwards the prices are struggling to rise. No wonder the industry?s margins are under huge pressure and Indian cement industry faces its toughest challenge so far. So what does the future hold for the industry? Let?s start with the good news first. Many believe things are improving. The economy is likely to turn around in the next 2-3 quarters. Investment cycle is picking up. The growth in economy will lead to concurrent growth in cement demand and the latter is expected to bounce back and reach a level of 7-8 per cent this year. This will help bridge some gap between demand and supply.

Now what?s the bad news? The bad news is that though the economy seems to have bottomed out inflation remains stubbornly high. This means that costs will continue to rise and if prices do not gallop faster than costs the industry?s margins will remain subdued despite increase in sales volumes. So where does this leave us? The message for the industry is clear. Hope for the best and prepare for the worst. The Cement Industry in India has no choice but to keep a very watchful eye on its costs. Its cost structure has got badly bruised in last 3-4 years and the same needs to be repaired. Let us dwell deeper.

Indian cement industry has three major cost buckets – Taxes, Manufacturing costs (including fuel and power costs) and Logistics & Distribution costs. Let us examine each of them closely. The first bucket is beyond industry?s control. It can represent, coax and pray to the government but the latter may not oblige, as it had not in the past. The second bucket of manufacturing costs has been industry?s favourite whipping boy. The industry has made a steady progress in keeping a tab on manufacturing costs. Indian cement industry today is comparable to the best in the world in respect of quality standards, fuel and power consumption, environmental norms, use of latest technology and capacity. However the productivity parameters are now nearing the theoretical bests and further improvements will only have a marginal impact and be governed by law of diminishing returns. As such there is little scope in any major savings in manufacturing costs

Finally let?s fix our gaze on the third and the last bucket – Logistics & Distribution costs. It would not be an exaggeration to state that industry has been unduly kind and generous towards this bucket. The logistics & distribution practice in cement industry has been relatively stable and nothing much has changed in the manner in which we handle and transport cement to our customers. This despite the fact that logistics, both inbound and outbound, constitutes nearly 30 per cent of the total unit delivered cost of cement and that the sector is craving for innovation. So can logistics be the harbinger of next disruptive change in the industry. To answer this question we need to examine things closely.

In my opinion apart from the overwhelming cost compulsions there is strong convergence of internal and external factors, which will drive innovation in logistics & distribution practice and foster new thinking in this area.

Internal Factors
The Indian Cement Industry has long benefited from a fairly uniform availability of limestone deposits throughout the country. Barring eastern India, availability of limestone in most parts of India has ensured that cement does not have to travel huge distances for consumption. However, this is likely to change in near future. The low hanging fruit in respect of limestone deposits has already been grabbed. Fresh, good quality, environmentally sustainable limestone deposits are now abundantly available only in far-flung areas of Kutch in Gujarat and Jaisalmer in Rajasthan. Sooner or later these deposits will have to be harnessed to satisfy nation?s growing appetite for cement. Capacity additions in future will therefore require large investments in logistics infrastructure to enable economic transportation of cement to consumption centres in northern, central and western India.

Likewise, the fly ash footprint of India is rapidly changing. Pit head and coastal based thermal plants are fast replacing old and relatively inefficient thermal power plants set up close to consumption centres owing to heavy costs of moving coal. Huge investments planned in power transmission infrastructure in next 4-5 years are only going to accentuate this change. About 45 per cent of the total cement sold in India today is fly ash based. The industry will have to find ways and means of transporting fly ash in big volumes over large distances economically to stay competitive.

External factors
After being in slumber for years the Indian Road Transportation sector is undergoing massive transformation. There is a renewed thrust on building new highways and widening of existing ones. This along with general improvement in pavement quality and planned electronic tolling system would help truckers increase their average speed from a dismal 30-40 km per hour at present to 50-60 km per hour in future.

Additionally, entry of MNCs like Volvo, Daimler, Navistar, etc., will facilitate progressive introduction of heavier, large size, multi-axle trucks, powered by efficient engines that burn less diesel for every ton km of cargo movement. All these developments will have a major impact on the cost dynamics of road transportation in India going forward.

Next let us look at the railways. Herein, I believe, is the biggest opportunity. Railway perhaps, is the only segment is the Indian transportation sector, which is yet to reap the benefits of liberalised industrial policy of GoI. With opening of this sector to FDI and huge investments envisaged in construction of dedicated freight corridors, private freight terminals, up-gradation of signalling and civil infrastructure of existing network and investment in rolling stock, the freight carrying capacity of railways is likely to increase manifold going forward. Add to this, the broad thrust of Indian railways towards longer, faster, bigger and heavier trains, this sector will offer plethora of opportunities for the industry to join hands with railways and invest in specialised wagons and state-of-the-art handling infrastructure for bulk transportation of clinker, fly ash and cement. Rail siding warehouses is another exciting opportunity and could be game changer for both Indian cement industry and railways. The industry in collaboration with railways can set up warehouses for cement storage alongside railway sidings thus saving on huge costs incurred in handling and transporting cement bags to warehouses located outside the yards. Railways in turn can gainfully utilise its land assets and make them productive. Inland waterways provide yet another opportunity for moving bulk cargo from central and northern India to eastern India and vice-versa. With the renewed focus on cleaning and refurbishing of the river, the Ganga National Waterway 1, spanning from Allahabad in central India to Haldia in West Bengal, can provide a viable and economical means of transportation for bagged/bulk cement, coal and clinker.

However, the benign environment will lead to nothing if the industry does not shed its inhibitions and proactively embraces the change. So what does the industry need to do to benefit from this historic opportunity? Broadly two things – first logistics & distribution function will have to play a proactive role in business planning and core strategy. Traditionally, logistics practice has always been reactive in its approach. Instead of finding a best fit solution for a given business plan it should be driving it particularly in areas of new project development and capacity addition plans. Ideally the function should span across design, engineering, raw material sourcing and culminate at finished goods movement Secondly, the industry needs to segregate distribution function from sales. This will have twin benefits. One it will bring transparency in channel discounts/margins and save distribution from being a source for income for the sales channel.

It will help bring specialised agencies in cement handling and distribution and throw open the door to increased mechanisation in this sector, which is presently labour intensive. Herein it will be interesting to note that channel network in cement industry, which earlier shouldered a dual responsibility of stock keeping and selling, has gradually transformed into a pure selling role. This has increased the need for warehousing and secondary transportation. Since the storage and distribution costs are anyway now being borne by cement companies this is the right time to separate this role form sales network. A dedicated and focussed distribution network functioning in parallel and collaboratively with sales network will help reduce multiple handling a cement bag undergoes before it reaches the end user. It will also prepare the industry for yet another historic opportunity, which is knocking on its doors – E sales – selling cement direct to consumers.

Economy & Market

RAHSTA Roundtable Sets Agenda for Smarter, Safer Highways

Published

7 hours ago

March 16, 2026

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Roundtable discussions focus on innovation for safer highways.

Held on 12 March 2026 at Courtyard by Marriott, Mumbai, alongside the Infrastructure Today Airport Conclave, the RAHSTA Roundtable brought together stakeholders from across the highways and infrastructure ecosystem to shape the agenda for the 16th RAHSTA 2026, scheduled for 8–9 July 2026 at the Jio Convention Centre, Mumbai. The session focused on key industry themes including road construction, technology, safety and long-term sustainability.

Opening the discussion, Pratap Padode, Founder, FIRST Construction Council, said the roundtable marked the beginning of a broader consultative process leading up to the July event. The aim, he noted, is to bring together industry stakeholders to refine the agenda for discussions on the future of roads, bridges, tunnels and allied infrastructure.

Padode noted that while central road project awards have slowed in recent years, states are increasingly driving the next phase of infrastructure growth. Maharashtra, with its long-term road development plans and agencies such as MSRDC and MSIDC, is expected to play a significant role in this expansion.

RAHSTA Expo 2026 as a specialised platform dedicated to road infrastructure, covering highways, tunnels, bridges and flyovers along with construction technologies, safety systems and maintenance solutions. He also highlighted the growing importance of rural connectivity and said the organisers are engaging with government bodies to highlight rural road development initiatives.

Tanveer Padode, CIO, ASAPP Info Group, presented insights from IMPACCT, the group’s infrastructure intelligence platform. He pointed to a strong project pipeline despite slower highway awards earlier in the year, noting that states such as Maharashtra, Odisha and Arunachal Pradesh are emerging as key drivers of new projects. The data also revealed that only a small group of contractors participates in large-value infrastructure bids.

Lt Gen Rajeev Chaudhary, former Director General, Border Roads Organisation and Chairman of the RAHSTA Expo Committee, emphasised the need for stronger collaboration across the ecosystem, including policymakers, contractors, technology providers and financiers. He also called for addressing systemic issues within the sector and encouraged greater participation of women in infrastructure leadership.

The discussion also explored the evolving economics of road development. Phani Prasad Mandalaparthy, Associate Director, CRISIL Intelligence, noted that the slowdown in project awards reflects a shift towards higher-value logistics corridors rather than simple road widening projects. However, private participation through BOT and TOT models remains limited.

From the contractors’ perspective, Sudhir Hoshing, Whole-Time Director, Ceigall, said companies are becoming more selective in bidding, favouring projects with clearer payment mechanisms and efficient processes. While NHAI continues to offer greater operational clarity, states such as Uttar Pradesh and Bihar were cited as relatively supportive environments for project execution.

Durability and sustainability also emerged as key themes. Himanshu Agarwal, COO – Road & Infrastructure, Zydex Group India, highlighted the need to prioritise lifecycle performance and resilient pavements, while participants discussed the potential of alternative materials such as plastic waste, steel slag and industrial by-products in road construction.

Dr LR Manjunatha, Vice President, JSW Cement, emphasised that India has abundant fly ash, slag and other industrial materials that can improve durability and sustainability if integrated into specifications and policy frameworks.

Technology and equipment challenges were also discussed. Dr Lakshmana Rao Mantri, Dy General Manager, Afcons Infrastructure, highlighted the shortage of tunnel boring machines (TBMs), which is delaying several underground infrastructure projects. Participants agreed that developing domestic TBM manufacturing capabilities will be critical for future infrastructure expansion.

The future of concrete pavements was another area of discussion. Dr V Ramachandra, President, Indian Concrete Institute, stressed that the debate should focus on lifecycle performance rather than material choice alone, noting that evolving design standards are improving the feasibility of concrete roads.

Prof Dharamveer Singh of IIT Bombay added that while India has made significant progress in infrastructure development, stronger capacity building and better execution practices are essential to ensure consistent road quality.

The discussion also touched upon technology adoption in the sector. Rushabh Mamania, Partner & CBO, Roadvision, highlighted the growing role of AI in road infrastructure, noting that AI-driven monitoring systems are already being deployed across large stretches of national highways.

Overall, the roundtable underscored that the future of highway infrastructure will depend not only on the pace of construction but also on durability, safety, technology integration and sustainable materials. The discussions offered valuable insights that will help shape the agenda for RAHSTA 2026 and guide future collaboration within the industry.

Economy & Market

CTS Roundtable Charts Tech-Led Roadmap for Construction

Published

7 hours ago

March 16, 2026

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CTS Roundtable Maps Technology Roadmap for Construction

Ahead of the Construction Technology Show (Con Tech Show) 2026, industry leaders, technology innovators and academia came together in Mumbai to deliberate on how digitalisation, automation and industrialised construction can reshape the sector. The discussion made one thing clear: construction can no longer afford to treat technology as optional.

Held on 12 March 2026 at Courtyard by Marriott, Mumbai, alongside the Infrastructure Today Airport Conclave, the CTS Roundtable served as a precursor to the Construction Technology Show 2026, scheduled for 19–20 August 2026 at NESCO, Mumbai.

A platform to move from discussion to deployment

Opening the session, Pratap Padode, Founder and Editor-in-Chief, ASAPP Info Global Group, said construction technology has long remained close to his heart, especially given the sector’s traditionally slow pace of technology adoption. He noted that over the years, the Construction Technology Summit had steadily built interest, and the next step was now to expand it into a larger, more meaningful platform that could bring together technology providers, users, startups and innovators under one roof.

Padode said the vision for CTS is not limited to software alone. The platform aims to embrace all forms of technology that can improve construction efficiency, quality and execution—from digital tools and project management systems to lean construction, off-site fabrication and startup-led innovation. He also highlighted plans to deepen startup participation and create space for young companies to showcase emerging construction solutions.

Industry at a turning point

Moderating the roundtable, Naushad Panjwani, Chairman, Mandarus Partners, set the context by pointing out that the global construction industry, despite being a multi-trillion-dollar sector, continues to lag in productivity. He noted that while manufacturing has consistently improved efficiency, construction has remained slow to modernise.

Referring to both global and Indian trends, Panjwani underlined that the industry is now at a decisive moment. India, he said, is entering a major build cycle, and delivering the next phase of infrastructure and real estate growth through traditional methods alone is no longer viable. The goal of the roundtable, therefore, was not to debate technology in isolation, but to identify the most critical conversations that would bridge the gap between innovation and implementation.

His central message was clear: CTS 2026 must be shaped around themes that make CEOs, CIOs and CTOs feel they cannot afford to miss the event.

From BIM to AI, data to governance

A major theme that emerged through the discussion was the need for better data, better visibility and better decision-making. Dr Venkata Santosh Kumar of IIT Bombay echoed this, saying that the underlying data infrastructure itself needs attention. Construction projects, particularly remote ones, often face issues around connectivity, data collection and data use. Without this foundation, more advanced technologies cannot deliver their full value.

Chandra Vasireddy, CEO & Co-founder, Inncircles, expanded the discussion to governance, arguing that technology must help connect the many moving parts of a construction business. For him, the real value of digital transformation lies in creating better governance, clearer visibility and stronger business outcomes.

Tejas Vara of Inncircles stressed the importance of timely site data for leadership teams, especially in large and remote projects where decisions on materials, machinery and manpower often get delayed because information does not reach headquarters in time.

The role of AI also featured prominently. Rushabh Mamania, Partner and CBO, Roadvision said that while AI and machine learning are now common terms, vision intelligence and language intelligence have still not deeply penetrated the construction sector. He emphasised that startups in India are building relevant AI-led solutions and are already attracting international interest, showing that innovation need not be imported—it can be built locally and scaled globally.

Industrialised construction gains ground

The roundtable also placed strong emphasis on industrialised construction methods. Kalyan Vaidyanathan, CTO – Construction & R&D, Tvasta, called for greater focus on off-site fabrication and the broader industrialisation of construction. Bhargav Jog, General Manager, Dextra, highlighted precast technology and alternative sustainable materials as areas with immediate relevance.

Several participants agreed that modular, precast and pre-engineered approaches are no longer niche ideas. They are increasingly becoming practical responses to the sector’s challenges around labour shortage, timelines, quality control and predictability.

Anup Mathew, Sr VP & Business Head, Godrej, argued that the industry needs a fully integrated approach—from design and procurement to execution and asset management. Unless these are connected, technology adoption will remain fragmented and sub-optimal. He pointed to pre-engineered and modular systems as examples of how industrial thinking can compress timelines, improve quality and reduce dependence on difficult on-site conditions.

Adoption remains the biggest hurdle

While there was broad agreement on the promise of technology, the discussion repeatedly returned to one fundamental challenge: adoption.

Abhishek Kumar, COO, LivSYT, observed that the market is crowded with solutions, but many buyers still struggle to evaluate which technology suits which use case. According to him, the industry needs clearer frameworks to help users select, compare and adopt solutions, rather than expecting a single platform to solve every problem.

Dr Tenepalli JaiSai, Associate Professor, School of Construction(SoC), NICMAR University, noted that isolated technologies will not solve the productivity problem by themselves. What is required is an integrated Construction 4.0 approach, where digital, physical and cyber-physical systems work together rather than in silos.

That concern around silos was reinforced by Subodh Dixit, former Director, Shapoorji Pallonji, who said the issue is not just that technologies are disconnected, but that stakeholders are as well. Clients, consultants, contractors and partners often operate with different priorities. Unless these silos are broken, technology will struggle to percolate across the full project value chain.

Harleen Oberoi, Project Management, Tata Realty shared a practical perspective from the client side, saying that successful BIM implementation requires investment across the ecosystem, not just within one organisation. Trade partners, vendors and other stakeholders must also be trained and aligned if the technology is to deliver its intended results.

Beyond buzzwords

A notable takeaway from the session was that the industry is moving past the phase of treating technology as a buzzword. Participants repeatedly stressed that the real question is not whether technology should be used, but where it creates measurable value and how that value can be scaled.

The conversation also expanded beyond mainstream themes to include repairs and rehabilitation, construction and demolition waste, sustainability, circular economy, green sourcing, carbon measurement, design interoperability, generative design, robotics, and the role of horticulture and greener built environments.

Setting the agenda for CTS 2026

By the close of the session, the roundtable had surfaced a strong set of themes for the upcoming show: BIM and digital twins, AI and data platforms, industrialised construction, startup innovation, governance-led technology adoption, robotics, sustainable materials, and integrated project delivery.

More importantly, the session established CTS 2026 as more than an exhibition. It is shaping up to be a serious industry platform where users, technology providers, researchers and policymakers can collectively define the future of construction.

As Padode noted in his closing remarks, the conversation will continue through further consultations and possibly webinars in the run-up to the show. If the roundtable is any indication, CTS 2026 will aim not merely to showcase technology, but to push the industry towards meaningful adoption at scale.

Economy & Market

Smart Pumping for Rock Blasting

Published

2 weeks ago

March 2, 2026

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SEEPEX introduces BN pumps with Smart Joint Access (SJA) to improve efficiency, reliability, and inspection speed in demanding rock blasting operations.
Designed for abrasive and chemical media, the solution supports precise dosing, reduced downtime, and enhanced operational safety.

SEEPEX has introduced BN pumps with Smart Joint Access (SJA), engineered for the reliable and precise transfer of abrasive, corrosive, and chemical media in mining and construction. Designed for rock blasting, the pump features a large inspection opening for quick joint checks, a compact footprint for mobile or skid-mounted installations, and flexible drive and material options for consistent performance and uptime.

“Operators can inspect joints quickly and rely on precise pumping of shear-sensitive and abrasive emulsions,” said Magalie Levray, Global Business Development Manager Mining at SEEPEX. “This is particularly critical in rock blasting, where every borehole counts for productivity.” Industry Context

Rock blasting is essential for extracting hard rock and shaping safe excavation profiles in mining and construction. Accurate and consistent loading of explosive emulsions ensures controlled fragmentation, protects personnel, and maximizes productivity. Even minor deviations in pumping can cause delays or reduce product quality. BN pumps with SJA support routine maintenance and pre-operation checks by allowing fast verification of joint integrity, enabling more efficient operations.

Always Inspection Ready

Smart Joint Access is designed for inspection-friendly operations. The large inspection opening in the suction housing provides direct access to both joints, enabling rapid pre-operation checks while maintaining high operational reliability. Technicians can assess joint condition quickly, supporting continuous, reliable operation.

Key Features

Compact Footprint: Fits truck-mounted mobile units, skid-mounted systems, and factory installations.
Flexible Drive Options: Compact hydraulic drive or electric drive configurations.
Hydraulic Efficiency: Low-displacement design reduces oil requirements and supports low total cost of ownership.
Equal Wall Stator Design: Ensures high-pressure performance in a compact footprint.
Material Flexibility: Stainless steel or steel housings, chrome-plated rotors, and stators in NBR, EPDM, or FKM.

Operators benefit from shorter inspection cycles, reliable dosing, seamless integration, and fast delivery through framework agreements, helping to maintain uptime in critical rock blasting processes.

Applications – Optimized for Rock Blasting

BN pumps with SJA are designed for mining, tunneling, quarrying, civil works, dam construction, and other sectors requiring precise handling of abrasive or chemical media. They provide robust performance while enabling fast, reliable inspection and maintenance.With SJA, operators can quickly access both joints without disassembly, ensuring emulsions are transferred accurately and consistently. This reduces downtime, preserves product integrity, and supports uniform dosing across multiple bore holes.

With the Smart Joint Access inspection opening, operators can quickly access and assess the condition of both joints without disassembly, enabling immediate verification of pump readiness prior to blast hole loading. This allows operators to confirm that emulsions are transferred accurately and consistently, protecting personnel, minimizing product degradation, and maintaining uniform dosing across multiple bore holes.

The combination of equal wall stator design, compact integration, flexible drives, and progressive cavity pump technology ensures continuous, reliable operation even in space-limited, high-pressure environments.

From Inspection to Operation

A leading explosives provider implemented BN pumps with SJA in open pit and underground operations. By replacing legacy pumps, inspection cycles were significantly shortened, allowing crews to complete pre-operation checks and return mobile units to productive work faster. Direct joint access through SJA enabled immediate verification, consistent emulsion dosing, and reduced downtime caused by joint-related deviations.

“The inspection opening gives immediate confidence that each joint is secure before proceeding to bore holes,” said a site technician. “It allows us to act quickly, keeping blasting schedules on track.”

Framework agreements ensured rapid pump supply and minimal downtime, supporting multi-site operations across continents