Economy & Market

Consolidation vs capacity building

Published

11 years ago

March 31, 2015

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So comes the landmark verdict the cement industry has been waiting for. The Competition Commission of India (CCI) has cleared the proposed merger of French cement maker Lafarge and Holcim. The merger which will create the world?s largest cement company by manufacturing capacity and sales was expected to tilt the balance. As expected, to address the monopoly concerns, the CCI has decided that a divesture of Lafarge?s Jojobera plant in Jharkhand and the company?s integrated unit at Sonadih in Chhattisgarh will be most effective in eliminating the concerns. This will cut down around 5 mtpa from the combined capacity of both Holcim and Lafarge. It is learnt that CCI will also appoint a monitoring agency to oversee compliance to the conditions put forth by it to ensure that the merger does not negatively impact the competitive scenario.

The cement industry has been witnessing several acquisitions and capacity additions. Analysts feel that there would be more capacity addition in the coming years despite the fact that current capacity utilization is below 75 mtpa. After a strong start to FY15, cement demand dipped in the second half and for the fifth year in a row, the growth remained below the long-term average of over 8 per cent. As of today, capacity continues to be way ahead of actual demand; however, major players are keen to maintain and grow their market share and therefore, expand to secure future demand. The push for dominance in new markets and sustaining the existing ones seems to be the logic behind continued push for capacity additions. According to ICRA report on the sector, the industry is likely to add 25 mtpa capacities in FY15, 23 mtpa in FY16 and 8 mtpa in FY17 as against the historical peak addition of 50 mtpa in FY10.

UltraTech?s capacity had risen to 59 mtpa after the Jaypee deal, and as per reports, the cement giant plans to increase its capacity to 70 mtpa by 2016.

Reliance Cement is reportedly in talks with some multinational players and has offered a strategic stake to them. The prospective joint venture partner may fund the company?s cement capacity expansion – estimated to rise from 5 mtpa to 15 mtpa by 2018. Orient Cement has set ambitious plans to increase capacity from its current 5 mtpa to 15 mtpa by 2020. Its new Greenfield plant with a capacity of 3 mtpa at Gulbarga will be operational this fiscal. The remaining capacity of 7 mtpa is expected through either brownfield plants or acquisitions. Jaypee Group is reportedly in talks with some large players to form a joint venture which will control the majority of its cement plants. The plan envisages a separate joint venture entity which will house around 20-22 mtpa of Jaypee?s operational units spread across the country and a new greenfield unit in Karnataka, which is expected to come on stream this year.

In such a scenario of over capacity, it is rather ironical that the Confederation of Real Estate Developers? Associations of India (CREDAI) is thinking of importing cement from abroad, China in particular. The move is to counter the problems of increasing prices of cement on one hand, and the truck movement restriction imposed by the Telangana government on the other. This possibility of import of cement brings us to our interesting cover story of the current edition on ?Optimising Logistics.? In fact, import of bulk cement into our country in the past has not succeeded mainly because of logistics bottlenecks in our ports and in the hinterland. We have a long way to go in setting up state-of-the-art facilities of bulk handling, storage and transportation of commodities like cement, in our port infrastructure.

In the last few years, logistics has emerged as a function of critical importance in cement business possibly on par with manufacturing and sales. Our cover story on this topic informs the readers on the logistics trends, and ways and means to improve efficiency and have a significant impact on the bottomlines of our cement players.

Sumit Banerjee Chairman, Editorial Advisory Board

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.