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

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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.

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Concrete

Adani’s Strategic Emergence in India’s Cement Landscape

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Milind Khangan, Marketing Head, Vertex Market Research, sheds light on Adani’s rapid cement consolidation under its ‘One Business, One Company’ strategy while positioning it to rival UltraTech, and thus, shaping a potential duopoly in India’s booming cement market.

India is the second-largest cement-producing country in the world, following China. This expansion is being driven by tremendous public investment in the housing and infrastructure sectors. The industry is accelerating, with a boost from schemes such as PM Gati Shakti, Bharatmala, and the Vande Bharat corridors. An upsurge in affordable housing under the Pradhan Mantri Awas Yojana (PMAY) further supports this expansion. In May 2025, local cement production increased about 9 per cent from last year to about 40 million metric tonnes for the month. The combined cement capacity in India was recorded at 670 million metric tonnes in the 2025 fiscal year, according to the Cement Manufacturers’ Association (CMA). For the financial year 2026, this is set to grow by another 9 per cent.
In spite of the growing demand, the Indian cement industry is highly competitive. UltraTech Cement (Aditya Birla Group) is still the market leader with domestic installed capacity of more than 186 MTPA as on 2025. It is targeted to achieve 200 MTPA. Adani Cement recently became a major player and is now India’s second-largest cement company. It did this through aggressive consolidation, operational synergies, and scale efficiencies. Indian players in the cement industry are increasingly valuing operational efficiency and sustainability. Some of the strategies with high impact are alternative fuels and materials (AFR) adoption, green cement expansion, and digital technology investments to offset changing regulatory pressure and increasing energy prices.

Building Adani Cement brand
Vertex Market Research explains that the Adani Group is executing a comprehensive reorganisation and consolidation of its cement business under the ‘One Business, One Company’ strategy. The plan is to integrate its diversified holdings into one consolidated corporate entity named Adani Cement. The focus is on operating integration, governance streamlining, and cost reduction in its expanding cement business.
Integration roadmap and key milestones:

  • September 2022: The consolidation process started with the $6.4 billion buyout of Holcim’s majority stakes in Ambuja Cements and ACC, with Ambuja becoming the focal point of the consolidation.
  • December 2023: Bought Sanghi Industries to strengthen the firm’s presence in western India.
  • August 2024: Added Penna Cement to the portfolio, improving penetration of the southern market of India.
  • April 2025: Further holding addition in Orient Cement to 46.66 per cent by purchasing the same from CK Birla Group, becoming the promoter with control.
  • Ambuja Cements amalgamated with Adani Cement: This was sanctioned by the NCLT on 18th July 2025 with effect from April 1, 2024. This amalgamation brings in limestone reserves and fresh assets into Ambuja.
  • Subject to Sanghi and Penna merger with Ambuja: Board approvals in December 2024 with the aim to finish between September to December 2025.
  • Ambuja-ACC future integration: The latter is being contemplated as the final step towards consolidation.
  • Orient Cement: It would serve as a principal manufacturing facility following the merger.

Scale, capacity expansion and market position
In financial year-2025, Adani Cement, including Ambuja, surpassed 100 MTPA. This makes it one of the world’s top ten cement companies. Along with ACC’s operations, it is now firmly placed as India’s second-largest cement company. In FY25, the Adani group’s sales volume per annum clocked 65 million metric tonnes. Adani Group claims that it now supplies close to 30 per cent of the cement consumed in India’s homes and infrastructure as of June 2025.
The organisation is pursuing aggressive brownfield expansion:

  • By FY 2026: Reach 118 MTPA
  • By FY 2028: Target 140 MTPA

These goals will be driven by commissioning new clinker and grinding units at key sites, with civil and mechanical works underway.
As of 2024, Adani Cement had its market share pegged at around 14 to 15 per cent, with an ambition to scale this up to 20 per cent by FY?2028, emerging as a potent competitor to UltraTech’s 192?MTPA capacity (186 domestic and overseas).

Strategic advantages and competitive benefits
The consolidation simplifies decision-making by reducing legal entities, centralising oversight, and removing redundant functions. This drives compliance efficiency and transparent reporting. Using procurement power for raw materials and energy lowers costs per ton. Integrated logistics with Adani Ports and freight infrastructure has resulted in an estimated 6 per cent savings in logistics. The group aims for additional savings of INR 500 to 550 per tonne by FY 2028 by integrating green energy, using alternative fuel resources, and improving sourcing methods.

Market coverage and brand consistency
Brand integration under one strategy will provide uniform product quality and easier distribution networks. Integration with Orient Cement’s dealer base, 60 per cent of which already distributes Ambuja/ACC products, enhances outreach and responsiveness.
By having captive limestone reserves at Lakhpat (approximately 275 million tonnes) and proposed new manufacturing facilities in Raigad, Maharashtra, Adani Cement derives cost advantage, raw material security, and long-term operational robustness.

Strategic implications and risks
Consolidation at Adani Cement makes it not just a capacity leader but also an operationally agile competitor with the ability to reap digital and sustainability benefits. Its vertically integrated platform enables cost leadership, market responsiveness, and scalability.

Challenges potentially include:

  • Integration challenges across systems, corporate cultures, and plant operations
  • Regulatory sanctions for pending mergers and new capacity additions
  • Environmental clearances in environmentally sensitive areas and debt management with input price volatility

When materialised, this revolution would create a formidable Adani–UltraTech duopoly, redefining Indian cement on the basis of scale, innovation, and sustainability. India’s leading four cement players such as Adani (ACC and Ambuja), Dalmia Cement, Shree Cement, and UltraTech are expected to dominate the cement market.

Conclusion
Adani’s aggressive consolidation under the ‘One Business, One Company’ strategy signals a decisive shift in the Indian cement industry, positioning the group as a formidable challenger to UltraTech and setting the stage for a potential duopoly that could dominate the sector for years to come. By unifying operations, leveraging economies of scale, and securing vertical integration—from raw material reserves to distribution networks—Adani Cement is building both capacity and resilience, with clear advantages in cost efficiency, market reach, and sustainability. While integration complexities, regulatory hurdles, and environmental approvals remain key challenges, the scale and strategic alignment of this consolidation promise to redefine competition, pricing dynamics, and operational benchmarks in one of the world’s fastest-growing cement markets.

About the author:
Milind Khangan is the Marketing Head at Vertex Market Research and comes with over five years of experience in market research, lead generation and team management.

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Concrete

Precision in Motion: A Deep Dive into PowerBuild’s Core Gear Series

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PowerBuild’s flagship Series M, C, F, and K geared motors deliver robust, efficient, and versatile power transmission solutions for industries worldwide.

Products – M, C, F, K: At the heart of every high-performance industrial system lies the need for robust, reliable, and efficient power transmission. PowerBuild answers this need with its flagship geared motor series: M, C, F, and K. Each series is meticulously engineered to serve specific operational demands while maintaining the universal promise of durability, efficiency, and performance.
Series M – Helical Inline Geared Motors: Compact and powerful, the Series M delivers exceptional drive solutions for a broad range of applications. With power handling up to 160kW and torque capacity reaching 20,000 Nm, it is the trusted solution for industries requiring quiet operation, high efficiency, and space-saving design. Series M is available with multiple mounting and motor options, making it a versatile choice for manufacturers and OEMs globally.
Series C – Right Angled Heli-Worm Geared Motors: Combining the benefits of helical and worm gearing, the Series C is designed for right-angled power transmission. With gear ratios of up to 16,000:1 and torque capacities of up to 10,000 Nm, this series is optimal for applications demanding precision in compact spaces. Industries looking for a smooth, low-noise operation with maximum torque efficiency rely on Series C for dependable performance.
Series F – Parallel Shaft Mounted Geared Motors: Built for endurance in the most demanding environments, Series F is widely adopted in steel plants, hoists, cranes, and heavy-duty conveyors. Offering torque up to 10,000 Nm and high gear ratios up to 20,000:1, this product features an integral torque arm and diverse output configurations to meet industry-specific challenges head-on.
Series K – Right Angle Helical Bevel Geared Motors: For industries seeking high efficiency and torque-heavy performance, Series K is the answer. This right-angled geared motor series delivers torque up to 50,000 Nm, making it a preferred choice in core infrastructure sectors such as cement, power, mining, and material handling. Its flexibility in mounting and broad motor options offer engineers’ freedom in design and reliability in execution.
Together, these four series reflect PowerBuild’s commitment to excellence in mechanical power transmission. From compact inline designs to robust right-angle drives, each geared motor is a result of decades of engineering innovation, customer-focused design, and field-tested reliability. Whether the requirement is speed control, torque multiplication, or space efficiency, Radicon’s Series M, C, F, and K stand as trusted powerhouses for global industries.

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Concrete

Driving Measurable Gains

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Klüber Lubrication India’s Klübersynth GEM 4-320 N upgrades synthetic gear oil for energy efficiency.

Klüber Lubrication India has introduced a strategic upgrade for the tyre manufacturing industry by retrofitting its high-performance synthetic gear oil, Klübersynth GEM 4-320 N, into Barrel Cold Feed Extruder gearboxes. This smart substitution, requiring no hardware changes, delivered energy savings of 4-6 per cent, as validated by an internationally recognised energy audit firm under IPMVP – Option B protocols, aligned with
ISO 50015 standards.

Beyond energy efficiency, the retrofit significantly improved operational parameters:

  • Lower thermal stress on equipment
  • Extended lubricant drain intervals
  • Reduction in CO2 emissions and operational costs

These benefits position Klübersynth GEM 4-320 N as a powerful enabler of sustainability goals in line with India’s Business Responsibility and Sustainability Reporting (BRSR) guidelines and global Net Zero commitments.

Verified sustainability, zero compromise
This retrofit case illustrates that meaningful environmental impact doesn’t always require capital-intensive overhauls. Klübersynth GEM 4-320 N demonstrated high performance in demanding operating environments, offering:

  • Enhanced component protection
  • Extended oil life under high loads
  • Stable performance across fluctuating temperatures

By enabling quick wins in efficiency and sustainability without disrupting operations, Klüber reinforces its role as a trusted partner in India’s evolving industrial landscape.

Klüber wins EcoVadis Gold again
Further affirming its global leadership in responsible business practices, Klüber Lubrication has been awarded the EcoVadis Gold certification for the fourth consecutive year in 2025. This recognition places it in the top three per cent
of over 150,000 companies worldwide evaluated for environmental, ethical and sustainable procurement practices.
Klüber’s ongoing investments in R&D and product innovation reflect its commitment to providing data-backed, application-specific lubrication solutions that exceed industry expectations and support long-term sustainability goals.

A trusted industrial ally
Backed by 90+ years of tribology expertise and a global support network, Klüber Lubrication is helping customers transition toward a greener tomorrow. With Klübersynth GEM 4-320 N, tyre manufacturers can take measurable, low-risk steps to boost energy efficiency and regulatory alignment—proving that even the smallest change can spark a significant transformation.

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