Economy & Market

Optimising Logistics

Published

11 years ago

March 31, 2015

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Cement is a vital building material that demands well-organized distribution and timely delivery; and the most important focus areas are to optimize the logistics value chain of the product which includes first and last mile transportation.
In the last two years, logistics has emerged as a function of critical importance in cement business on par with manufacturing and marketing and sales. This is the activity that links cement from the point of its production till it reaches the hands of the ultimate consumer. When we use the term logistics, we mostly refer to outbound movement; but of course the function must ideally also include inbound logistics or the activities involving inward movement of raw materials, inputs and intermediate goods. But essentially logistics plays a collaborative role between manufacturing on one side and sales on the other.

Cement is a vital building material that demands well-organized distribution and timely delivery. The cost of transporting cement via road comes to about Rs 1-3/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. The total cost of logistics considering inbound and outbound movement can come up to 20-25 per cent of cement price. This is for companies having good infrastructure such as rail sidings, etc, and who transport 40-60 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.

Market scenario
According to Tushar Dave, Vice President – Central Logistics, ACC Ltd, the importance of logistics in cement business cannot be understated. Says Dave, ?Typically, cement has to travel about 400 km from the plant before it reaches the end customer. The cost of outbound logistics represents nearly 20 per cent of net sales; in fact it comprises the second highest share of costs after manufacturing and fuel. On-time delivery is another critical area where logistics plays a role, considering that it is essential to ensure customer satisfaction. In view of these facts, logistics has enormous potential to deliver cost savings while simultaneously impacting customer satisfaction through improvements in service levels.?

He adds, ?A major bottleneck in this front is the time consumed at the loading bay. Trucks typically have had to wait for hours to enter and move out of the plant premises. This takes up a lot of the total travel and turnaround time and congests the bay during peak loading hours. ACC devised a unique solution to this problem by way of introducing the digitalised loading bay.?

Says Praveen Garg, Head – Logistics, Bharathi Cement, ?In the present scenario, logistics in cement industry plays a vital role to decide the competitive advantage or disadvantage for a company. Logistics in Indian cement industry per se is in growth stage and there is a long way to go to achieve consolidation and mature stage. Logistics cost is one of the highest cost elements and contributes 25 to 30 per cent of total spend in cement industry.? He adds, ?Existing infrastructure related to road, rail and sea transport is a major bottleneck, which does not provide flexibility as compared to developed nations. Indian cement industry still has separate vendors for primary transportation, last mile delivery and supply chain planning. Big 3PL and 4PL players are yet to come in cement logistics that can provide end-to-end solution.?

Functional bottlenecks
Speaking about the functional constraints Arun Khurana, Head – Logistics, JK Cement, had this to say. ?Definitely, logistics remains always under pressure when industry scenario is not so good. The prices are not supportive and with the logistics cost is pretty high, always the aim remains to how we can rationalize or optimize the logistics cost. Rail logistics constitutes almost 35 per cent of the total dispatches being done from the factory and now railways is reaching to the point of saturation. In fact, in the last 10 years, the percentage of rail has really come down from 40-45 per cent to 35 per cent and all this is because railways does not have sufficient infrastructure to support the demand requirement. So, the alternate mode comes as road. Again, the biggest challenge here is the availability of skilled drivers. It is not confined to cement alone, but the fact remains that these kinds of challenges are there in the transport industry which is directly linked to the cement industry as well. In the last two years, it seems the supply chain as a function is evolving across industries. So on that extent, skilled manpower available is not to the desired level.? Speaking about the functional bottlenecks, Capt. Ashok Shrivastava, Chief Executive Officer, Shipping Services, Allcargo Logistics, says, ?The fundamental reasons for challenges or bottlenecks in logistics especially in the cement industry has more to do with the product itself which is high volume and low value. This gives rise to the bottleneck of various kinds from transportation of raw material to plants and then from plants to the end-consumer through distribution channels. The challenge is compounded by India?s unique demography and its fast pace economic growth which is not concentrated in particular locations but is spread across all corners of the country. Thus, the demand is scattered but the production is located sparingly across states keeping in mind the economics of the business. Many of these macroeconomic variables cannot be altered to a greater extent, thus given this industry a unique set of opportunities and challenges. Logistics is the backbone of this product in demography such as India.?

He adds, ?Road has been the tradition medium of transportation, but given the congestion, limitation on quantity which can be carried, costs of toll across highways and the low average speed of movement it has given rail the opportunity to be one of the preferred modes of surface transportation. Coastal shipping has emerged as the most preferred medium of movement of cement, given its advantage in terms of costs as well as capacity to carry larger volume. Coastal shipping will be a game changer for India given that our country is surrounded by over 7,000 km of coastline and the cement industry can leverage this mode of transportation more effectively and efficiently to move its products.?

According to Prabhat Ranjan, AGM – Sales & Logistics, Meghalaya Cement, there are two sides to bringing down cost of logistics; one is infrastructure and the other is technology. ?As far as infrastructure is concerned, whenever a truck load is coming, there should be a scope for return load so that the freight cost remains low. Here in the North-East region, there is no scope for return load as the industry is not developed here. Some bulk terminals can be set up in Delhi in the north and Chennai in south, where bulkers are coming from the cement plant can go back to the cement plant with fly ash. So, they are getting the two-way transportation. Bulkers are unloading the cement in the silos and there it is getting packed. In this mode, the transportation cost is reduced. But in North-East region, the roads are not good for bulkers to ply as it is hilly terrain. Also, cement consumption is very low here compared to other parts of the country. So, in North-East, the scope of bulk terminals is not feasible.?

Bulk transportation
According to Garg, bulk cement consumption and transportation at present in India is very low which is at a level of 10 per cent only. He says, ?Bulk transportation will increase at 15-20 per cent CAGR in future with consolidation in cement customer segment and growth of ready mix concrete business in India. At present, there is an issue both at the customer end and available logistics infrastructure, which is resulting in such a low bulk transportation percentage in India. This will further increase with introduction of new bulk terminals coming up near major consumption centres.? He adds, ?Now we are exploring the possibilities to use bulk silo placing unit attached to trucks and these small silos can be carried by trucks to the small construction site. With this concept, small construction site can be converted from bags to bulk. This will reduce the packaging and handling cost to a great extent.? Says Khurana, ?Bulk cement is used either in RMC or infra projects. But till date, the larger demand coming is from the rural pockets. Big projects like smart cities are at conceptual stage and if it becomes a reality then there is good scope for bulk cement. As of today, the percentage of loose cement sold in India is below 10 per cent of the total sales. The use of bulk cement is majorly at metro cities only. But going forward, if the projects like dedicated freight corridors, smart cities and other mega infra projects, come up, definitely there is a huge scope for bulk cement. If the future growth of cement comes to this segment then there is a huge growth.?

According to Ranjan, bulk transportation is good but there are a lot of technologies need to be developed like the bulk terminals, from where cement can be supplied to big projects. Now the RMC concept is evolved, and they have now started taking bulk cement, which saves costs involved in packing, packaging materials etc. The trend is gaining momentum as before starting big projects, they set up silos because they can set up a silo at 50 per cent production cost of cement and they can use loose cement. Almost every company has started this, especially for hydel projects they are using own silos. Now, NHPC has started this and many private companies are going to start. Even in road projects, bulk handling is going on.

Rail freight impact
According to Khurana, the 2.7 per cent increase in freight rate definitely adds to the cost of cement. He says, ?The input cost in terms of coal and slag transportation has increased almost 7 per cent, which adds to the cost of cement by Rs 2-2.50 per bag. So effectively, there will be a Rs 6-7 hike in per bag cost. But due to less demand in the current market, it is difficult to pass on the cost difference to the end-consumer. As of now, it is really hitting the bottom line of the cement company.?

Ranjan has a different take on this. According to him, freight rate is not a major factor in railway transportation. He says, ?More than freight rate, there are so many other factors that are affecting, which include other policies of Railways, infrastructure at rail yard, etc. Rail yards are working 24 hour, but the labours are available for only eight hours. Railways charges demurrage, if my rakes are getting placed today evening, I have to pay the demurrage charges for the whole night, and the labours will be available in the morning next day. Thus, demurrage charges, labour charges, local infrastructure charges, and other charges are so high which are diluting the increase of freight rates.?

Says Garg, ?Freight rate for cement has been hiked by 2.7 per cent whereas for coal this has been hiked by 6.3 per cent. This will have overall negative impact of around Rs 40 to 60/tonne on bottom line of cement industry. This freight hike by Railways will also impact the rail co-efficient as Railways has increased the freight at the time when diesel prices have come down drastically.?

On a positive angle, Shrivastava had this to say. ?In a growing vibrant economy like India, rise in input costs of variables such as rates, taxes, fuel costs have direct effect on the industry, but the overall advantage of the demand-supply fundamentals are still the more important opportunity for further growth and development. Any business has to be proactive to leverage the developments as well as innovate itself to make convert it into an opportunity.?

Setting up of bulk terminals
According to Garg, setting up of bulk terminals and same shared by different players will give a real boost to cement industry. He says, ?Any grinding unit or bulk cement terminal require at least 50 acre of land near to major cement consumption centres like Mumbai, Bangalore, Delhi, Kolkata, Chennai and upcoming metros. If we look at any of existing terminal (existing private siding or railway siding), there is a great scope of sharing existing private/railway siding and other available space in these terminals. This will be a win-win solution for the existing siding operator located nearby major consumption centres to collaborate and share their asset which is not fully utilised. Challenges are from regulation side also the modalities on sharing the existing set-up.?

Says Khurana, ?Collaborating with multiple companies will become challenging from the perspective of different players. Even today, industry has not graduated to a level where people only compete by way of brand. The industry has to reach that level of maturity where different manufacturers collaborate probably for the mutual benefit. Of course, looking at the Indian Railways to do those kinds of investments is not a scenario as of now. But there is a huge potential for private terminals, which are designed in such a way that they can be used as multiple operators rather than for a bagged cargo or loose cement cargo.

Says Dave, ?The future points to a shift towards bulk transport but that would happen gradually over 9 to 12 years horizon in big way once all the stake holders (from manufacturers to end users) are ready and fully on board. It also needs other enablers to be in place such as a shift in the way cement is sold (migration from B2C to B2B) and the availability of appropriate transportation, handling and infrastructure facilities.?

Integrated logistics
Says Khurana, ?In terms of operational aspect, one of the options available is the mechanisation of the goods shed and the second option is exploring the possibilities of bulk terminals across the country. Many big cement companies can explore upon setting up integrated terminals but for smaller players who have limited volumes and different geographies, this is not operationally viable. So there may be a potential for a common facility that can be utlised by different players and then repack and distribute to the local market from thereon. We have taken such initiatives for our white cement market due to longer distance from our plant in Rajasthan to the market in west coast and down south which is a multimodal type of operation. We have recently commissioned a grinder unit in Haryana which will reduce the load that goes into the road and rail network.?

Manufacturers tend to use a combination of distribution methods, which include bulk and bags via road, rail, in-land transport and by sea. The most inexpensive method of moving cement is in bulk by water. The optimum solution is always a combination of methods. In today?s technologically advanced world, it is possible to use the power of information technology to arrive at optimum solutions using mathematical modelling and algorithms. For effective and optimum costs in cement distribution, one needs to integrate IT solutions with actual demand and supply and, most importantly, include all options of cement movement and storage into the management cycle. One will need to work with almost everyone involved in the supply chain, from the drivers of road bulkers and trucks, the captains of the barges and ships and to the customer engineers who will finally receive the cement for use in their plants.

Shrivastava sums up, ?For the cement industry which includes home grown as well as international players competing for the market, one of the most important focus areas is to optimize the logistics value chain of the product which also included first and last mile transportation. Presently, movement of cement goes through multiple modes and service providers handling the product thus forming part of the overall logistics cost structure. One of the most efficient ways to control and leverage this variable is to look at integrated logistics wherein a provider has the network, the size and scale to provide all types of movement from coastal shipping to trailer movement to last mile distribution, thus forming a value added service. This will make a huge difference in terms of managing the value chain and optimizing costs as well delivery time of the product.?

LOGISTICS CHALLENGES IN NORTH-EAST

Logistics is the most important part in cement industry as almost 30 per cent of the cost of cement is involved in logistics. But it is more than that in the North-East part of the country. Since it is hilly terrain, transportation cost is very high which can be more than 40 per cent of the cement price. In this region, we have only one mode of transport, the road transport. There is no rail logistics here, except some parts of Assam.
Another bottleneck is the presence of anti-social elements in some parts of Nagaland, Manipur, and such north-eastern states. There are some parallel government system in Manipur, as we have to pay taxes at two points – one at Indian government and another at ?terror government?. This affects the final cost of the cement. For example, if the freight rate is Rs 100 at normal places in Assam, it will be same in these parts also for the same distance, but there are other taxes like token tax.
Apart from that, there is a convoy system here for transportation. If today there is no convoy if a truck is loaded, it may have to wait for a couple of day because convoy will go only on a particular day and all the trucks loaded with materials will be taken by the convoy up till Imphal, Agarthala, or such places. So these are the big bottlenecks, like if the truck is going, it is taking one week for a small distance of 200-300 km to go and come back. And the cost factor is coming at every stage which ultimately affects the final price of the cement and the customers.
As told by Prabhat Ranjan, AGM – Sales & Logistics, Meghalaya Cement

MOVING AHEAD

Coastal shipping will be a game changer for India
Bulk transportation will increase at 15 per cent to 20 per cent CAGR
Integrated logistics will make a huge difference in terms of managing the value chain
Rail logistics constitutes almost 35 per cent of the total dispatches being done from the factory

CHALLENGES

Availability of skilled drivers is a challenge in road transport
Costs of toll across highways and the low average speed of movement
Non availability of labours in rail yards
Demurrage charges from railway
Lack of rail wagons for small delivery for far-off destination, where road delivery is not feasible.

OPTIMISING LOGISTICS COST

Encourage big cement users for bulk/loose cement transport. This will reduce packing cost and is also eco-friendly. It is beneficial for both ? the seller and the buyer
Establish grinding units, blending or packing units in big market area for direct delivery of materials
Plan dispatches in a way that reduce rail freight/rail freight on return journeys availed for procurements
Maximise dispatches directly to the end user so that warehousing/distribution cost can be reduced
Optimise truck size/fleet capacity, timing of vehicle engaged in cement and raw material loading, unloading as well as the transit time, so that operational cost of vehicle is reduced by maximising efficiency of every trip made by the vehicle.

Economy & Market

The Road Ahead Begins Here

Published

1 day ago

August 11, 2026

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The future of India’s roads took centrestage at RAHSTA Expo 2026, where policymakers, contractors and industry leaders came together under one roof. The event blended thought leadership, technology showcase and industry recognition into a single powerful platform.

India’s roads and highways community gathered in full strength at the Jio World Convention Centre, Mumbai, for the 16th edition of the RAHSTA Expo (Roads and Highways Sustainable Technologies & Advancement). Over two action-packed days, the event brought together policymakers, contractors, consultants, developers, equipment manufacturers, material suppliers, technology providers and investors to deliberate on the future of India’s ,infrastructure while showcasing the latest innovations driving the sector.

The event culminated in the prestigious RAHSTA Awards, where Shri. Ajay Tamta, Union Minister of State for Road Transport & Highways, felicitated organisations and professionals for their outstanding contributions to road construction, engineering, safety, sustainability and technology. With leading contractors, senior government officials, industry veterans and technology providers under one roof, the event reaffirmed RAHSTA’s position as one of India’s most influential platforms for the roads, highways, bridges and tunnels ecosystem.

Organised by FIRST Construction Council in association with ASAPP Info Global Group, RAHSTA has steadily evolved beyond an exhibition into a platform where policy, technology, engineering and business converge to address the opportunities and challenges shaping India’s next generation of transport infrastructure.

Beyond expansion, towards value

The conference opened with a thought-provoking address by Pratap Padode, Founder and Editor-in-Chief, Construction World, who observed that India’s highways sector has reached an important inflection point. Introducing this year’s theme – ‘From Expansion to Value: The Next Phase of India’s Highways’ – he noted that while the country has successfully expanded its road network over the past two decades, the industry’s priorities are now shifting towards building infrastructure that delivers greater lifecycle value, durability, safety and operational efficiency. With funding pressures, asset monetisation and evolving project models changing the sector’s dynamics, he said the focus must now move beyond kilometres constructed to the quality and long-term performance of every asset.

Dr Brijesh Dixit, Managing Director, Maharashtra State Infrastructure Development Corporation (MSIDC), reminded delegates that successful infrastructure delivery is ultimately a collective effort. Emphasising on collaboration between government, industry and engineering professionals, he remarked, “There is no loser in a winning team, and there is no winner in a losing team,” urging stakeholders to work together to deliver projects with quality, financial sustainability and technological excellence.

Delivering the keynote address, Bidur Kant Jha, Director, New Technologies for Highway Development, Ministry of Road Transport & Highways (MoRTH), outlined the Government’s long-term vision for India’s highway network. Highlighting the country’s 6.26 million km roads network, he spoke about the growing adoption of digital planning tools such as BIM and GIS, bridge health monitoring systems and Integrated Smart Transport Corridors under the Vision 2047 roadmap. He emphasised that while India remains open to global innovations, every new technology must be adapted to Indian conditions before large-scale deployment.

Addressing the gathering during the awards ceremony, Tamta underlined the increasing role of specialised equipment and modern construction technologies in executing complex infrastructure projects across diverse terrains. Referring to challenging tunnel projects in Uttarakhand, he noted how advanced machinery has transformed execution capabilities, while also acknowledging the rapid evolution of Indian contractors into globally competitive infrastructure companies. Recognising excellence through industry awards, he said, motivates organisations to continually raise performance standards and embrace innovation.

Meanwhile, Dr Sanjay Mukherjee, IAS, Metropolitan Commissioner, MMRDA, highlighted that infrastructure development must increasingly focus on integrated urban mobility. Reflecting on Mumbai’s engineering journey – from its historic underground utility network to the Coastal Road and other transformative projects – he underlined that future infrastructure planning must seamlessly integrate roads, metro systems and public transport to create efficient, multimodal cities.

Uttar Pradesh takes centrestage

One of the highlights of the second day was Uttar Pradesh’s comprehensive presentation on its infrastructure-led industrial transformation.

Srihari Pratap Shahi, IAS, Additional CEO, Uttar Pradesh Expressways Industrial Development Authority (UPEIDA), demonstrated how the state’s expanding expressway network is evolving into a catalyst for industrial development through integrated manufacturing and logistics clusters. Expressways, he noted, are no longer merely transport corridors but engines of economic competitiveness.

Building on this narrative, Deeksha Jain, IAS, Additional Chief Executive Officer, Uttar Pradesh State Industrial Development Authority (UPSIDA), showcased the state’s rapidly expanding industrial ecosystem supported by extensive expressway connectivity, dedicated freight corridors, airports, industrial townships and investor-friendly policies. She highlighted Uttar Pradesh’s strong manufacturing growth, expanding industrial land bank, plug-and-play infrastructure and increasing use of digital governance to facilitate investments.

Further underlining the significance of the platform, Deepak Kumar, IAS, Infrastructure & Industrial Development Commissioner, Government of Uttar Pradesh, remarked, “RAHSTA provides an excellent platform for states to showcase our infrastructure progress and investment ecosystem. Uttar Pradesh has transformed significantly over the past decade, backed by more than 34 investor-friendly industrial policies, and platforms like RAHSTA help communicate these developments to industry stakeholders from across the country.”

Ideas that shaped the industry conversation

The two-day conference featured seven panel discussions, each examining a critical dimension of India’s evolving roads and highways sector.

The opening discussion on ‘Financing Roads & Highways in a Capital-Constrained Era’ brought together experts from Cube Highways, NIIF, SBI Capital Markets, Centrum Capital and Bandhan Infra Fund, who examined how the financing landscape is changing. Discussions revolved around asset monetisation, InvITs, institutional investments and new funding structures, with panellists agreeing that better project preparation, transparent governance and predictable returns will be crucial for attracting long-term capital into infrastructure.

Attention then shifted to execution realities during the panel on ‘Contractors’ Perspective: Execution Realities, Risks & the Quality Imperative.’ Representatives from GHV Infra Projects, PNC Infratech, NCC and Maccaferri candidly discussed the challenges of delivering projects amid contractual complexities, land acquisition delays, rising costs and tight timelines. While execution pressures remain significant, the discussion reinforced that better collaboration across the project value chain is essential for achieving both speed and quality.

Day 2 opened with a technically rich discussion on ‘Designing Roads for Sustainability, Durability & Climate Resilience’. Experts from CSIR-CRRI, IIT Bombay, IIT Madras, Zydex Group and SRMB Steel explored advanced pavement technologies, recycled materials, climate-resilient designs and scientific construction practices that can significantly improve durability while lowering lifecycle costs. Sustainability, they agreed, must become an integral part of road design rather than an afterthought.

The subsequent session on ‘Bridges & Tunnels: Complex Engineering, Safety & Future Readiness’ highlighted the growing complexity of India’s infrastructure projects. Panellists discussed advances in structural engineering, digital monitoring, risk management and safety practices that are enabling the successful delivery of increasingly ambitious bridge and tunnel projects across the country.

Technology remained a recurring theme during the discussion on ‘Technology as a Risk-Mitigation Tool for Developers & Investors’. Experts explained how AI, BIM, drones, predictive analytics, digital twins and intelligent monitoring systems are helping improve project planning, minimise execution risks, strengthen quality assurance and enhance asset management throughout the infrastructure lifecycle.

The construction equipment panel brought together leading industry experts to examine how technology, sustainability and digitalisation are redefining construction equipment in an era of rising cost pressures. Discussions centred on enhancing productivity, reducing lifecycle costs and preparing the industry for India’s infrastructure ambitions leading up to 2047.

The conference concluded with an engaging CXO Forum on ‘Rebuilding Confidence in India’s Roads & Highways Sector’, where senior industry leaders emphasised that stronger governance, better project preparation, digitalisation, transparent contracting and closer public-private collaboration will be essential to sustain India’s infrastructure growth over the coming decades.

Technology and recognition under one roof

Beyond the conference halls, RAHSTA Expo reflected the technological transformation underway across India’s road infrastructure ecosystem. Leading equipment manufacturers, technology companies and material suppliers showcased advanced construction equipment, intelligent digital platforms, pavement technologies, structural materials and productivity-enhancing solutions designed to improve project efficiency and asset performance. The exhibition created valuable opportunities for contractors, consultants, government agencies and project developers to evaluate new technologies while interacting directly with solution providers.

The event also served as a celebration of excellence through the RAHSTA Awards 2026, which recognised outstanding achievements across road construction, contracting, materials, equipment, technology, safety, sustainability and infrastructure development. Presented by Minister Tamta, the awards honoured organisations that are setting new benchmarks for quality, innovation and execution across India’s roads sector.

RAHSTA Expo 2026 also received extensive support from across the infrastructure ecosystem. Alongside leading corporate sponsors, the event was backed by industry bodies including the Builders Association of India (BAI), Construction Equipment Rental Association (CERA), Consulting Engineers Association of India (CEAI), International Road Federation (IRF), CSIR-CRRI, CILT India, All India Transporters Welfare Association, Hydraulic Trailer Owners Association (HTOA), Gujarat Contractors Association, Bitumen Forum, Fluid Power Society of India, Indian Institute of Material Management, Ministry of Ports, Shipping and Waterways, Gati Shakti Vishwavidyalaya and Mumbai First, reflecting the industry’s collective commitment to advancing India’s road infrastructure.

As the curtains came down on the two-day event, one message resonated throughout the conference: India’s highways story is entering a new chapter. While expansion will continue, the future will increasingly be defined by smarter planning, stronger partnerships, digital transformation, sustainable engineering and long-term value creation. By bringing together the entire infrastructure value chain on a single platform, RAHSTA Expo 2026 once again demonstrated why it has become one of the country’s most influential forums for shaping the future of roads, highways, bridges and tunnels.

Economy & Market

Fornnax Names Lukas Baur as Authorised Service Partner to Bolster EU Operations

Published

3 weeks ago

July 23, 2026

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Strapline: Fornnax Technology has appointed NOBA Maschinenservice’s Lukas Baur as its authorised service partner for the European Union, strengthening its commitment to delivering fast, reliable, and localised after-sales support across the region.

Fornnax Technology, a leading manufacturer of industrial shredding solutions, has announced the appointment of Mr. Lukas Baur of NOBA Maschinenservice as its authorised service partner for the European Union. The partnership, formalised under the authorisation of Fornnax CEO Mr. Jignesh Kundaria, reinforces the company’s commitment to providing dependable, localised service support to its expanding customer base across Europe.

Strengthening Service Through Proven Expertise

With over two decades of experience in servicing, maintaining, and overhauling industrial shredders, Mr. Baur brings extensive technical expertise to the partnership. His capabilities span welding, hardfacing, shaft and knife rebuilding, complex assembly, hydraulics, and complete electrical engineering services, delivered in collaboration with a trusted partner company based in Halle/Saale.

Operating from Worbis, Germany, Mr. Baur is strategically positioned to provide emergency support across the European Union within 24 hours, covering an operational radius of approximately 1,000 kilometres.

Supporting this capability is a well-equipped service infrastructure comprising 12 Mercedes Sprinter service vans, a team of 24 skilled technicians, specialised bearing-change tools, a fully equipped hydraulic workshop, and a 1,000-square-metre facility with a five-ton crane track. Together, these resources position his team to manage the complete spectrum of Fornnax’s European service requirements efficiently and reliably.

Partnership Driven by Industry Insight

Having spent years servicing Eldan, Lindner, and Vecoplan shredders across the European recycling industry, Mr. Baur’s decision to collaborate with Fornnax is rooted in his understanding of market needs and customer expectations. His experience has provided valuable insight into what recycling plant operators require—not only from their machinery but also from the service teams supporting them.

According to Mr. Baur, Fornnax’s reputation for robust machine construction, superior wear protection, and maintenance-friendly design made the partnership a natural fit.

The collaboration comes at a time when Europe’s tyre recycling industry is facing mounting challenges, including rising cost pressures, shrinking margins, delayed investments, and a shortage of skilled labour. Mr. Baur believes these conditions reinforce the need for technically strong service partners capable of delivering rapid, dependable support.

Commenting on the partnership, he said, “Fornnax, with its exceptional price-performance ratio and superior quality, has the potential to become a market leader in Europe. We would like to be their service partner in this journey.”

Comprehensive Support Across the Equipment Lifecycle

As Fornnax’s authorised service partner, Mr. Baur will oversee the complete lifecycle support of the company’s equipment throughout the European Union. His responsibilities will include installation, commissioning, preventive maintenance, emergency repairs, and spare parts support across mechanical, hydraulic, and electrical systems.

Looking ahead, he also plans to develop a centralised spare parts distribution hub for European customers, particularly if Fornnax establishes a warehouse facility in Worbis to facilitate faster deliveries. To further strengthen service coverage, Mr. Baur intends to expand operations by adding two to three additional service teams and vehicles each year, progressively increasing capacity across the continent.

A Shared Commitment to Customer Excellence

Highlighting the strategic importance of the partnership, Mr. Jignesh Kundaria, Director and CEO of Fornnax, said:

“We strongly believe that by continuously improving our service quality and customer satisfaction index, we can build long-term relationships with our customers. Higher customer satisfaction leads to greater trust, which significantly increases repeat orders and ultimately drives sustained growth in our sales revenue.”

This customer-first philosophy underpins Fornnax’s strategy of building a dedicated European service partner network instead of relying solely on remote support. With Mr. Baur joining this network, customers across the European Union will benefit from faster response times, expert technical assistance, and dedicated on-ground support from a partner with extensive experience in high-throughput shredding operations.

Mr. Baur’s appointment also reflects Fornnax’s broader ambition to establish itself as the preferred shredding solutions provider for the European recycling industry, marking another important milestone in the company’s international growth strategy.

Concrete

Nuvoco Vistas launches Limla cement plant, expands Gujarat footprint

Published

1 month ago

July 13, 2026

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Nuvoco Vistas opens a 2 MMTPA grinding unit at Limla, entering Gujarat and advancing its target of 35 MMTPA capacity by FY 2028.

Surat (Gujarat)

Nuvoco Vistas Corporation Ltd, a part of Nirma Group and one of India’s leading building materials company, has inaugurated the Limla Cement Plant in Surat (Gujarat), one of Vadraj Cement Limited’s (VCL) principal manufacturing facilities. The commissioning represents a key milestone in Nuvoco’s acquisition and restoration of VCL, while supporting the company’s expansion across the Western Indian cement market.

Vadraj Cement Limited is a subsidiary of Nuvoco Vistas Corporation Limited and has installed cement capacity of 6 MMTPA across its assets. The Limla inauguration therefore represents the first operational step in the acquired platform’s wider revival, while the Kutch facilities provide clinker supply, mineral security and coastal logistics support for the western business.

Nuvoco completed its acquisition of Vadraj Cement Limited, then under the Corporate Insolvency Resolution Process, after paying a consideration of Rs 1,800 crore in June 2025. VCL’s asset portfolio comprises a clinker unit at Kutch and a grinding unit at Limla in Surat. It also includes high-quality captive limestone reserves and a captive jetty at Kutch, supporting more efficient logistics. Following the takeover, Nuvoco began an extensive programme of restoration, refurbishment and expansion at both locations, leading to the commissioning of the Limla plant.

The Limla Cement Plant is expected to support a phased increase in sales volumes across Gujarat. It will also help Nuvoco supply neighbouring markets in Western Maharashtra and release cement capacity from its northern plants, which can consequently be redirected towards markets in North India. The plant will manufacture a full portfolio comprising Ordinary Portland Cement, Portland Slag Cement, Portland Pozzolana Cement and Portland Composite Cement. It will additionally produce the complete Nuvoco Duraguard range, including the premium Nuvoco Duraguard Microfibre product. The acquisition is also expected to generate operational synergies with Nuvoco’s existing plants at Nimbol and Chittorgarh in Rajasthan, improving logistics optimisation and market reach across important regional markets.

The grinding unit at the Limla Cement Plant was completed ahead of schedule, with 2 MMTPA of capacity now inaugurated to expand Nuvoco’s operating scale and customer reach. After Vadraj Cement’s assets become fully operational, plants in North and West India are expected to account for nearly 40 per cent of Nuvoco’s total cement capacity. This will broaden the company’s manufacturing network, strengthen access to high-growth markets and support its plan to increase consolidated cement capacity to 35 MMTPA by FY 2028, reinforcing its longer-term growth strategy.

Commenting on the development, Jayakumar Krishnaswamy, Managing Director, Nuvoco Vistas Corp Ltd, said: “The inauguration of the Limla Grinding Unit in Surat is an important milestone in Nuvoco’s growth journey and demonstrates our commitment to disciplined, value-accretive expansion. Gujarat is strategically significant for Nuvoco, with substantial opportunities arising from infrastructure investment, industrial growth, rapid urbanisation and continuing demand from the housing and construction sectors. The facility strengthens our regional footprint, improves operational flexibility and increases our ability to serve customers across northern and western markets with greater reliability and efficiency.”

He added: “Through the Vadraj acquisition, we have refurbished and restarted a strategically important asset, returning it to operations in record time through strong execution and collaboration between teams. The achievement demonstrates our ability to create value from acquired assets, fulfil our commitments and retain the confidence of stakeholders. It also highlights the strength of our project delivery capabilities and our continued focus on building sustainable, profitable growth over the long term.”

Nuvoco Vistas Corporation Limited is a building materials company whose vision is to build a safer, smarter and more sustainable world. It is among the leading players in East India and has a significant presence across North and West India. Nuvoco began operations in 2014 with a greenfield cement plant at Nimbol, Rajasthan. It later acquired Lafarge India Limited, which had entered India in 1999, followed by Emami Cement Limited in 2020 and Vadraj Cement Limited in April 2025. The company has also announced an expansion in eastern India through a new grinding mill at the Arasmeta Cement Plant, supported by several debottlenecking programmes involving equipment upgrades, process improvements and internal capacity initiatives. These developments place Nuvoco on track to achieve total cement capacity of approximately 35 MMTPA. The company reported total income of Rs 11,362 crore in FY 2025-26, reflecting its continuing growth trajectory.

Nuvoco operates a diversified portfolio across three segments: Cement, Ready-Mix Concrete and Modern Building Materials. Its cement portfolio includes Concreto, Duraguard, Double Bull, PSC, Nirmax and Infracem, covering Ordinary Portland Cement, Portland Slag Cement, Portland Pozzolana Cement and Portland Composite Cement. Its pan-India RMX business provides value-added products under Concreto for performance concrete, Artiste for decorative concrete, InstaMix for ready-to-use bagged concrete, X-Con covering M20 to M60 grades, and Ecodure for specialised green concrete. Nuvoco has supplied materials to projects including the Mumbai-Ahmedabad Bullet Train, Birsa Munda Hockey Stadium in Rourkela, Aquatic Gallery at Science City in Ahmedabad, and metro railway projects in Delhi, Jaipur, Noida and Mumbai.