Economy & Market

“The challenge is to move cement from the warehouse to the consumer?s site”

Published

11 years ago

September 30, 2014

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Rohit Vohra Head Logistics, Reliance Cement

The total cost of logistics considering inbound and outbound movement can come up to 20 to 25 per cent of cement production cost. This is for companies having good infrastructure such as rail sidings, etc., and who transport 40 to 60 per cent product by rail. For companies that do not have such facilities, the cost can go as high as 30 per cent of the cement cost. Rohit Vohra highlights the challenges faced by cement companies in last mile deliveries. Excerpt from the interview.

How much is the cost contribution of logistical expenses to cement cost?
The cost of transporting cement via road comes to about Rs 1 to 3 /tonne/km. The wide range is due to the variation in lead distance, which can range from anywhere between 50-300 km. Longer the distance, lower is the cost of transport. Railway on other hand costs Rs 1.3 to 1.4/tonne/km. However, railway has additional fixed costs related to loading and unloading.

The handling cost is high for railways. So for a distance below 200 km rail is not viable. We generally outsource the unloading process to the C&F agents.

What are the losses experienced in cement transport via rail wagons?
Railways charge a fixed fare based on the number of wagons employed. If the wagon is not loaded completely, the company will still end-up paying for the entire wagon. One area where cement is lost is due to spillage from torn or damaged bags. Many a times the floor of the wagon is in bad constitution and may have sharp edges that damage the cement bags during transit. To minimise such loss we are using specialised packing material for our cement bags. These bags are not lifted using metal hooks. Instead the workers put a sort of wire loop around it and pick it up. Although the cost of loading and unloading too gets escalated with this, the end customer gets quality cement in quality packing.

What are the challenges faced by cement companies in last mile delivery?
The challenge in last mile delivery is that today we have lesser number of stockists. Now nobody wants to stock cement in warehouses. The rental charges of warehouses are too high for stocking a low margin product like cement. So dealers prefer ordering the material straight from the plant to the consumer site.

Now consumers require quick delivery, and on several occasions the delivery is to be made in congested city areas. These locations often have limitations on the size of trucks that could ply on the roads. Hence, we have to use smaller vehicles, which are cost inefficient. Companies then have to set up a very good network of warehouses close to the market so as to be able to reach the customer as quickly as possible. But again, setting up a warehouse means additional loading and unloading at the company?s expense. The moment you create an additional node in your supply chain, the cost of handling and distribution goes up. Plus, dispatch from these warehouses is also costly since transporters are moving material over short distances. So the cost of transport per tonne per km is high.

What are the constraints that you have to deal with in cement transport?
We put cement delivery process in two buckets. One is from plant to the warehouse and the other is where we transport cement from warehouse to the site. When we are moving cement from the plant to the warehouse we have the loading and unloading process and the associated cost in our control. The material is transported in multi-axle carriers with a capacity of around 27 tonnes. Mostly the approach road to the warehouse is good and the time required to load and unload is fixed and short. So here the costs are very much in the company?s control.

The challenge is to move cement from the warehouse to the consumer?s site. Many cities have restrictions on the size of trucks that can move round the clock. Cities like Nagpur, Bhopal, etc., do not allow trucks with more than 8-tonne capacity to ply on the roads. While at some places like Rajasthan, where highways are good we transport cement in 60-tonne trailers. Often the size of order placed by end consumers is small and we have to dispatch 4-5 tonnes of material.

Today the customers to want delivery of cement as and when required. They usually do not have space to store cement and other construction materials. Storing cement is a hassle and implies additional cost. Simply handling a cement bag costs Rs 2-3 and so everyone tries to avoid it. The traders to want the cement to be delivered directly from company warehouse to the site, not to the shop.

What can be done to cut down that cost?
We have a system where dealers can order at ex-warehouse price and can arrange for their own vehicle. That creates a synergy since the dealer can ship other items such as steel, paint, bricks, etc., in the same truck.

How about outsourcing this function?
We have been considering outsourcing this function. However, service providers do not find cement transport as profitable as they would find transporting high value retail products like electronic goods, etc. In cement the margins are low, and so it is less attractive to external logistics service providers.

Railways have plenty of surplus land, however they do not have clear policy for land allotment. Most major companies have their own cement siding. What the industry needs is rail side warehouses. We are looking for opportunities to set up terminals close to siding. Having a rail side warehouse minimises cost of product handling.

How to you manage the fluctuations in cement demand?
There are basically two types of fluctuations, the seasonal and the demand driven. Seasonal changes are seen in the trade segment while demand driven fluctuations are seen in non-trade segment. We have kept a balance of having trade to non-trade segment in 70:30 ratio. That stabilises the demand pattern.

The industry generally experiences good demand during the October-June period. This is the time when the company builds up reserve stock of cement at the plant. The industry experiences low demand during the July-August period. During this period we conduct operation and maintenance tasks at the plant.

Major fluctuations are taken care by the surplus stocks at the plant while minor fluctuations are dealt with at the warehouse level.

Economy & Market

Fornnax launches world’s biggest secondary/fine shredder for AFR pre-processing

Published

1 week ago

November 7, 2025

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Fornnax has introduced its latest breakthrough – the R-MAX3300, for handling low-density waste streams, offering a powerful solution for cement AFR plants.

Fornnax Technology has launched its latest breakthrough – the R-MAX3300, the biggest secondary shredder in its class. The unveiling took place on 14th October, 2025 at IFAT India 2025 in Mumbai, one of the most prestigious events for environmental technologies, waste management, and sustainable resource innovation.

The launch ceremony was graced by esteemed industry leaders and dignitaries. The guest list included Md Fahim Sopariwala, CEO, GEPIL India; Sridhar Jagannathan, Vice President, Zigma Global; Priyesh Bhatti, CEO, GEPIL India; Shailendra Singh, Deputy General Manager, Prism Johnson (Cement Division); Ulhas Parlikar, Global Consultant, Waste Management, Circular Economy, Policy Advocacy and Co-processing; Saurabh Palsania, Joint President (Strategic Sourcing), Shree Cement; Rajeev Patel, DGM (Process), Mangalam Cement; and Anumodan Kumar Dubey, Mangalam Cement.

This state-of-the-art equipment represents a significant advancement for India’s recycling and waste processing landscape, offering a powerful solution for cement AFR plants and waste-to-energy facilities.

Building on the proven performance and legacy of the R Series secondary shredder, which has long been trusted for high-density materials like tyres and cables, the newly introduced R-MAX3300 is specifically engineered for handling low-density waste streams. These include Municipal Solid Waste (MSW), Commercial and Industrial (C&I) waste, Bulky waste, Legacy waste, Wood waste, and Construction & Demolition (C&D) waste.

By incorporating advanced shredding technology, the R-MAX3300 enables seamless and highly efficient production of Refuse Derived Fuel (RDF) and Solid Recovered Fuel (SRF) within the ideal particle size range of 30 to 50 mm. Its design prioritises versatility, durability and superior performance, directly supporting industrial operations that demand consistency and scale.

“The R-MAX3300 represents a monumental leap forward in our vision to become a global leader by 2030 in recycling technology through innovation,” said Jignesh Kundaria, Director and CEO, Fornnax Technology. “With the rising challenges of waste management in India and globally, this machine is not just a product; it’s a powerful tool for change. We engineered it to handle the most difficult waste streams with unparalleled efficiency, turning what was once considered unusable waste into a valuable resource. It directly addresses the urgent demand for effective, large-scale shredding technology that can support cement kilns and waste-to-energy facilities in achieving the desired output,” he added.

The launch of the R-MAX3300 arrives at a pivotal moment. India currently generates over 160,000 tons of municipal solid waste daily, while government-led initiatives such as Swachh Bharat Mission and Smart Cities are accelerating the demand for RDF and waste-to-energy solutions. Simultaneously, the global industrial shredder market is expected to grow at a 5–6 per cent CAGR, driven by stricter recycling regulations and increasing waste generation.

Kundaria further emphasised, “Our commitment goes beyond just selling machinery; it’s about empowering our customers to achieve lasting efficiency, sustainability, and growth. We see ourselves as a trusted partner who stands beside them at every step – from technology deployment to ongoing support, ensuring they can rely on Fornnax not only for performance but also for consistency, dependability, and long-term value.”

The R-MAX3300 is equipped to handle high-throughput processing of pre-shredded or coarse materials, making it ideal for SRF/RDF production, composting pre-treatment, and volume reduction for logistics optimisation. It is expected to play a crucial role in Integrated Waste Management Projects (IWMP) and bio-mining operations both within India and globally.

With this grand launch, Fornnax continues to set global benchmark and move decisively towards the vision of becoming global leader in recycling technology by 2030 that is state-of-the-art, innovative, economical, efficient reliable and eco-friendly.

Concrete

Fornnax wins Top Domestic Sales Award 2024-25 by AIRIA

Published

1 week ago

November 7, 2025

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Fornnax bags the Excellence in Top Domestic Sales Award 2024–25 by the All India Rubber Industries Association (AIRIA).

The company has been honoured with the Excellence in Top Domestic Sales Award 2024–25 by the All India Rubber Industries Association (AIRIA) under the Rubber Machineries and Equipment category. The award recognises Fornnax’s exceptional market leadership, strong sales performance and continued commitment to sustainable innovation.

With over a decade of specialised expertise, Fornnax has emerged as a transformative force in India’s tyre recycling sector, commanding nearly 90 per cent of the domestic market while steadily expanding across Europe, Australia, the GCC, and other global regions.

Fornnax’s advanced recycling systems—comprising the SR-Series Primary Shredders, R-Series Secondary Shredders, and TR-Series Granulators—are engineered for durability, efficiency, and high-output performance. These technologies are widely deployed in end-of-life tyre (ELT) processing and other waste management applications, reinforcing Fornnax’s reputation as a trusted industry partner.

Expressing his gratitude, Jignesh Kundaria, Director & CEO, Fornnax, said, “We are incredibly proud to receive this recognition from AIRIA. This award validates the trust that our customers and partners have placed in us over the years. I would like to extend my heartfelt gratitude to all our clients and partners who have been an integral part of this journey and our continued success. At Fornnax, our goal has always been to empower the recycling industry with innovative, high-performance solutions that make sustainability both achievable and profitable.”

The award also underscores Fornnax’s pivotal role in promoting circular economy practices by enabling the conversion of end-of-life tyres and rubber waste into reusable raw materials. Through ongoing R&D, new product innovation, and a solutions-driven approach, the company continues to help industries worldwide adopt eco-conscious, scalable recycling models.

As India’s recycling landscape evolves to meet global sustainability benchmarks, Fornnax stands at the forefront with internationally certified technology, a proven track record, and a clear vision for environmentally responsible growth.

Concrete

Pacific Avenue Completes Acquisition of FLSmidth Cement; Rebrands as Fuller Technologies

Published

2 weeks ago

November 4, 2025

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The acquisition of FLSmidth Cement by Pacific Avenue Capital Partners marks a new phase of focused growth and innovation.
Rebranded as Fuller® Technologies, the company will continue delivering world-class solutions with renewed investment and direction.

Pacific Avenue Capital Partners (“Pacific Avenue”), a global private equity firm, has completed its acquisition of FLSmidth Cement following the fulfillment of all customary closing conditions and regulatory approvals. The transaction includes all of FLSmidth Cement’s intellectual property, technology, employees, manufacturing facilities, and global sales and service organizations.

As Fuller Technologies, the company will continue to seamlessly support its customers while advancing its robust portfolio of capital equipment, digital solutions, and service offerings. With a sharpened focus on Pyro and Grinding technologies, alongside core brands such as PFISTER®, Ventomatic®, Pneumatic Conveying, and Automation, Fuller Technologies aims to deliver enhanced value and reliability across the cement and industrial sectors.

Under Pacific Avenue’s ownership, Fuller Technologies will benefit from increased investment in people, products, and innovation. The dedicated management team will work to optimize operations and strengthen customer relationships, ensuring continuity and excellence during this exciting transition.

“We are proud to be the new owner of FLSmidth Cement, now Fuller Technologies, a global leader with a rich history of providing mission-critical equipment and aftermarket solutions in the cement and industrial sectors. We will continue to build upon the Company’s legacy of being at the forefront of technological innovation, service delivery, and product quality as we support our customers’ operations,” says Chris Sznewajs, Managing Partner and Founder of Pacific Avenue Capital Partners.

Pacific Avenue’s deep experience in executing complex industrial carve-outs and guiding standalone businesses into their next growth phase will be instrumental in shaping Fuller Technologies’ future. With a proven track record in building products and capital equipment industries, Pacific Avenue is poised to help Fuller Technologies optimize performance, accelerate growth, and create long-term value for its customers and stakeholders worldwide.