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.

Concrete

ABB Extends Drive Lifespan at ACC Cement Plant Without Production Shutdown

Published

2 days ago

November 12, 2026

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ABB reconditions 25 drives at ACC’s Jamul cement plant, avoiding 16 tonnes of CO₂ emissions while improving reliability through predictive maintenance.
Chhattisgarh

ABB has signed a multi-year Motion OneCare service agreement with ACC Limited, part of the Adani Group, to modernise ageing industrial drives at its Jamul cement plant in Chhattisgarh, improving operational reliability while avoiding approximately 16 tonnes of carbon dioxide (CO₂) emissions without disrupting production.

Announced on 27 October 2026, the agreement combines scheduled drive reconditioning, digital condition monitoring and energy appraisals to extend equipment lifespan, improve plant uptime and optimise maintenance costs. The initiative marks a shift from conventional equipment replacement towards a more resource-efficient approach to industrial asset management.

The first phase, completed in April 2026, involved the on-site reconditioning of 25 ABB ACS800 variable speed drives without a major plant shutdown. By retaining the existing cabinets and restoring the drive modules rather than replacing entire panels, ABB helped ACC preserve capital investment, minimise material consumption and avoid approximately 16 tonnes of CO₂ emissions.

A second phase, covering an additional 25 ACS800 drive modules, is scheduled for the fourth quarter of 2026. The programme is designed to improve long-term equipment reliability while allowing maintenance activities to be aligned with the plant’s operational schedules.

The ACS800 drives, installed at Jamul in 2010, had delivered more than a decade of near-continuous service in demanding cement manufacturing conditions. However, ageing electrical components and changing fault patterns had begun to affect their ability to meet the plant’s reliability requirements.

Rather than opting for complete equipment replacement, ACC engaged ABB’s certified engineers to conduct a comprehensive asset health assessment. The evaluation found that the existing cabinets and enclosures remained structurally sound, making targeted reconditioning a technically viable and cost-effective alternative to full replacement.

Drawing on nearly two decades of experience with ACC’s equipment and operating requirements, ABB developed a maintenance framework tailored to the plant’s shutdown windows, budget cycles and production priorities.

The Motion OneCare agreement incorporates planned equipment restoration, condition-based monitoring and energy assessments, enabling ACC to adopt a more systematic approach to maintaining critical electrical infrastructure.

As part of the programme, ACC has implemented ABB Ability™ Digital Powertrain Insights to monitor drive performance and identify emerging operational issues before they result in equipment failures.

The digital platform provides continuous visibility into parameters such as temperature, current, vibration and fault patterns. These insights allow maintenance teams to detect early signs of equipment deterioration, schedule interventions more effectively and reduce the likelihood of unexpected downtime.

Amit Gupta, Local Division Manager, Motion Services, ABB India, said: “We know what unchecked wear costs over time: a small inefficiency that eats away at ROI for years. At Jamul, the evidence pointed clearly to assets with productive life still in them.”

“Our job was to restore them properly and give the team the tools to stay ahead of the next problem. At ABB, we don’t just fix what fails. We want to protect what works.”

The initiative also demonstrates the growing relevance of circular economy principles in cement manufacturing, where extending the service life of existing industrial equipment can reduce capital expenditure, material consumption and the environmental impact associated with manufacturing replacement components.

According to ABB, drive reconditioning can reduce lifecycle emissions by 50 to 80 per cent compared with complete equipment replacement. By preserving functional components and restoring critical modules, the process helps retain the economic and material value of existing industrial assets.

The addition of energy appraisals in subsequent phases will further expand the programme beyond equipment restoration, enabling ACC to assess drive performance, identify energy-saving opportunities and improve operating efficiency.

For cement manufacturers, variable speed drives play an important role in controlling motors and optimising energy consumption across production processes. Maintaining their reliability and efficiency is essential for minimising operational disruptions and managing electricity costs.

Vinod Bahety, CEO – Cement Business, Adani Group, said: “Moving from reactive firefighting to a structured maintenance plan was exactly what this operation needed. That kind of peace of mind doesn’t come easily. It comes from a partner that understands how your business runs.”

“We didn’t need a full system overhaul; we needed expert support, actionable insights, and a plan we could execute around our schedule. That’s what we got.”

The project supports ACC’s broader strategy to improve manufacturing efficiency through digital transformation, preventive maintenance and sustainable asset management.

ACC, a subsidiary of Ambuja Cements and part of the Adani Group, operates 20 cement manufacturing facilities and 119 ready-mix concrete plants across India. The company has been advancing initiatives focused on renewable energy, circular economy practices and technology-driven operational improvements.

Alongside Ambuja Cements, ACC is part of a large-scale building materials business committed to achieving net-zero emissions by 2050, with near-term and net-zero targets validated by the Science Based Targets initiative (SBTi).

The Jamul initiative aligns with these sustainability objectives by demonstrating how equipment life extension and digital monitoring can contribute to resource efficiency without requiring large-scale replacement of existing infrastructure.

ABB, a global technology company specialising in electrification and automation, brings more than 140 years of industrial expertise and employs approximately 110,000 people worldwide. Its Motion Services business supports industrial customers through equipment maintenance, modernisation, digital monitoring and lifecycle management solutions.

The agreement also reflects a wider shift in industrial maintenance practices, with manufacturers increasingly adopting predictive technologies to improve equipment availability, manage costs and reduce unplanned shutdowns.

With 25 drives already reconditioned and another 25 scheduled for restoration, ABB’s collaboration with ACC illustrates how targeted modernisation, digital monitoring and circular maintenance practices can extend the operational life of critical equipment while supporting more efficient and sustainable cement production.

Concrete

ABB Drives Digital Transformation at TCI MAX Cement Plant in J&K

Published

2 days ago

November 12, 2026

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ABB deploys advanced process control at TCI MAX’s Srinagar cement plant to improve clinker quality, energy efficiency and sustainable manufacturing.

Kashmir

ABB has deployed its advanced process control technology at TCI MAX Cement’s Srinagar facility in Jammu and Kashmir, marking the region’s first reported implementation of advanced process control (APC) in cement manufacturing and strengthening efforts towards more efficient, digitally enabled production.

Announced on 5 November 2026, the deployment of ABB Ability™ Expert Optimizer at the facility, operated by Trumboo Industries Pvt. Ltd., aims to improve process stability, clinker quality, energy efficiency and overall plant productivity. The implementation forms part of TCI MAX’s strategy to modernise its manufacturing operations through automation and digital technologies.

Following the integration of ABB’s advanced process control solution and supporting IT infrastructure, TCI MAX has reported improvements in operational productivity, product quality and sustainability-related performance indicators. The technology focuses on optimising the cement pyro process, a critical stage of production involving high-temperature processing and clinker formation.

Waseem Ahmed Trumboo, Director, Trumboo Industries Pvt. Ltd., said: “Introducing advanced process control at TCI MAX is an important step in how we are evolving our operations. Our focus is on improving the stability and efficiency of our processes while maintaining consistent clinker quality. We have been encouraged by the performance of the solution during commissioning and by the support from the ABB team, and we look forward to realizing its full potential.”

ABB Ability™ Expert Optimizer combines advanced process control, model predictive control (MPC) and artificial intelligence (AI) to continuously monitor and optimise manufacturing operations. By analysing process conditions, predicting operational behaviour and automatically adjusting key parameters, the system enables more consistent production while reducing process variability.

In cement manufacturing, maintaining stable pyro-processing conditions is essential for achieving uniform clinker quality and optimising thermal energy consumption. Fluctuations in operating parameters can affect fuel efficiency, production output and product consistency.

The deployment is designed to address these challenges through real-time process optimisation, helping operators maintain more stable kiln operations while improving the utilisation of fuel, electricity and raw materials.

Kapil Agarwal, Senior Vice President and Local Division Manager, Process Industries Division, ABB India, said: “Cement producers are increasingly looking to adopt digital technologies to achieve greater consistency and efficiency while addressing their sustainability priorities. ABB Ability™ Expert Optimizer brings advanced process control and deep cement process expertise together to help operators make their processes more stable and efficient. We are pleased to support TCI MAX as it takes this important step in its digital transformation.”

The technology also supports sustainability objectives by optimising fuel consumption, improving electrical energy efficiency and minimising process waste. More stable operations can contribute to lower energy intensity and reduced emissions associated with cement production.

For TCI MAX, the investment represents a move towards data-driven manufacturing, where automated control systems complement operator expertise to improve production performance and operational reliability.

The implementation is particularly significant for Jammu and Kashmir’s cement industry, as it introduces advanced process optimisation technology to a regional manufacturing facility. Its deployment could demonstrate the potential for wider adoption of digital automation across cement plants seeking to modernise their operations.

The project builds on ABB’s experience in delivering advanced process control solutions to cement manufacturers worldwide. Through the integration of industrial automation, predictive technologies and process engineering expertise, the company supports manufacturers in improving resource efficiency and maintaining consistent production quality.

As cement producers face increasing pressure to manage energy costs, improve productivity and reduce their environmental footprint, technologies such as AI-enabled process control and predictive optimisation are becoming important components of plant modernisation strategies.

ABB’s Expert Optimizer provides a platform for addressing these priorities by enabling automated adjustments based on changing process conditions, reducing reliance on manual intervention and supporting more efficient plant operation.

ABB, a global technology company specialising in electrification and automation, has more than 140 years of industrial experience and approximately 110,000 employees worldwide. Its Automation business employs around 26,000 people and provides technologies and services across process, hybrid and maritime industries.

The TCI MAX deployment reinforces ABB’s growing role in the digital transformation of cement manufacturing in India, where improving process efficiency and reducing energy consumption remain critical to the industry’s long-term sustainability.

With the advanced process control system now implemented at its Srinagar facility, TCI MAX aims to build on the initial operational improvements and further optimise production efficiency, clinker consistency and environmental performance.

Concrete

Ramco Cements’ Hard Worker Wins Eight Awards at ‘Love of Advertising Awards 2026’

Published

2 days ago

November 12, 2026

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Ramco Cements’ Hard Worker brand wins eight awards for excellence in advertising, packaging and brand identity at the Love of Advertising Awards 2026.

Hyderabad

The Ramco Cements Limited’s construction chemicals brand, Hard Worker, has secured eight awards at the Love of Advertising Awards 2026, recognising its creative excellence across television, digital advertising, packaging design and brand identity.

Organised by the Advertising Club of Trivandrum, the awards were presented at a ceremony held at The Leela Raviz, Kovalam, on 24 October 2026. The recognition highlights Hard Worker’s integrated marketing strategy and its efforts to establish a distinctive presence in India’s competitive construction chemicals market.

The eight awards span multiple creative categories, reflecting the brand’s approach to combining product-focused communication with engaging storytelling, humour and innovative design. Through its campaigns, Hard Worker has sought to simplify technical product benefits and make construction chemicals more accessible and relatable to consumers and construction professionals.

Built around the philosophy of “Hard-working products for hardworking people”, the brand focuses on communicating practical product advantages through memorable advertising narratives while maintaining a consistent identity across different marketing platforms.

Its campaigns for Ramco Hard Worker Eco Plaster and Tile Fix have been central to this approach. The Eco Plaster campaign highlights water conservation through the product’s self-curing properties, positioning it as a solution that supports more efficient construction practices. Meanwhile, Tile Fix promotes specialised tile-fixing solutions by presenting their practical benefits through relatable situations and creative storytelling.

Beyond advertising, Hard Worker has invested in distinctive packaging and brand identity development to improve product recognition and maintain consistency across customer touchpoints. This integrated approach has helped the brand differentiate itself in a category where marketing communication has traditionally focused on technical specifications and functional performance.

A V Dharmakrishnan, CEO, Ramco Cements, said, “Winning eight awards at the Love of Advertising Awards is a proud moment for Ramco Cements and the Hard Worker team. We believe that building a strong brand requires not only quality products but also the ability to communicate their value in a compelling and differentiated manner. Hard Worker’s journey reflects our commitment to combining product performance with innovative marketing to create meaningful connections with our customers and strengthen our presence in the construction chemicals market.”

The recognition comes as building materials manufacturers increasingly focus on brand differentiation, product awareness and customer engagement to strengthen their position in the construction chemicals segment.

By using humour and storytelling to explain product applications and benefits, Hard Worker aims to bridge the communication gap between technical construction solutions and the practical requirements of contractors, applicators and end-users.

Balaji K. Moorthy, Executive Director – Marketing, Ramco Cements, said, “Hard Worker was conceived to bring a fresh perspective to the construction chemicals category, where product communication has traditionally been functional and technical. Our endeavour has been to break through the clutter with distinctive ideas, humour and storytelling, while keeping the product proposition at the heart of every campaign. The recognition across TV and digital advertising, packaging design and brand identity design demonstrates our integrated approach to building the brand. These eight awards are an encouraging recognition of the creative thinking and collaborative effort behind Hard Worker’s marketing initiatives.”

The awards add to Hard Worker’s growing portfolio of creative recognitions and reinforce Ramco Cements’ emphasis on integrating product innovation with strategic marketing.

The brand’s communication initiatives also reflect a wider shift in the construction materials industry, where manufacturers are increasingly adopting consumer-focused marketing strategies to improve product understanding and strengthen relationships with construction professionals.

With its portfolio of construction chemicals, Hard Worker aims to address evolving requirements for durability, application efficiency and construction quality. Its marketing efforts seek to complement these product attributes by building stronger awareness and encouraging the adoption of specialised construction solutions.

Ramco Cements, one of India’s established cement manufacturers, operates across cement and allied building solutions. Through Hard Worker, the company is expanding its presence in the construction chemicals segment with products designed to enhance performance, quality and durability in modern construction applications.

The latest recognition strengthens Hard Worker’s brand visibility and underscores the growing importance of creative communication in promoting technical building materials. Ramco Cements intends to continue combining product development with distinctive marketing initiatives to support the brand’s growth in India’s construction chemicals market.