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Economy & Market

A perfect distribution?

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The distribution of cement to the end user from the manufacturer is a major cost factor in the landed cost of cement at the user end. ICR takes a look at the major obstacles in cement distribution.

Till 80s cement was available only as a commodity, and the production and distribution of cement was controlled by the Government. One had to apply to a district collector to get cement allotted for a job. It is only during the late 80s that cement was decontrolled and as a result many players entered into cement production, triggering competition into the cement industry.

It has been almost 28 years since cement has been decontrolled. Since then industry has witnessed high level of competition which has forced all the players to create their brand image in the minds of the customer so they can fetch premium price over competitors. But slowly all the companies have started replicating the activities undertaken by any pioneer company and so the companies were forced to control their cost in order to ensure reasonable profits during the lean period, i.e., when the demand is low and prices are under pressure. It is important to note the recent development of selling cement through online shops like Snapdeal, etc.

Mechanics of distribution channels
Companies invariably hire carry and forwarding agents (CFAs) to transport cement to their own or dealers? warehouses, which is either done via road or railways. From CFAs or warehouses, the cement is then transported to dealers/distributors and further to sub dealers who finally sell it to the end user. The physical ownership of goods every time does not get transferred. In the other case, dealers and sub dealers take order from buyers and place it to the companies, distributors coordinate and monitor for the timely dispatch of said orders, transportation of goods and final delivery and in return get their commission. It must be borne in mind that it is high volume and low margin business as stated by both – Nikhil Phadke, Partner, Vaidya & Co, and Senan Shah, Om Swastik Trading.

Distributor network in cement industry is highly dominating, and companies are compelled to hire the services as they rarely have any rapport or contact with the end consumer of their product. Apart from this, distributors have storage facilities, which enable them to control the supply chain. Therefore it becomes an important link in the business chain.

Three major factors affect the cost of cement. These include: logistic (20 to 22 per cent), excise and VAT of which excise and VAT are Government duties and thus cannot be controlled by the manufacturer. So only cost that is in the hands of manufacturer is the logistic cost, and in order to reduce the logistic cost, the companies try to sell their production in the nearby areas.

Moreover as the cement plant has to be installed nearby limestone deposits, plants of various companies are located very near to each other. This creates an intense competition in the nearby areas as all the companies try to sell their product with minimal logistic cost. Largely this is applicable to all the cement plants but as the big companies have huge production capacity at the single plant they have low cost of production and so they can afford to distribute their product at far off places at a slightly higher price. But the small players have limited production capacity so they try to increase their profits by saving on the logistic cost by selling in a limited area, and this technique of saving on logistic cost is shrinking their area of operation. This can be experienced in the states of Telangana and Andhra Pradesh. Thus intense competition is experienced in local areas as big players have to sell some part of their production in local area to get higher realisation and the local companies have to sell in local areas as they cannot afford to sell in far-off places due to increasing logistic cost. Moreover the transportation cost always has an increasing trend, so every company prefers to sell their maximum possible production in the nearby area which increases competition to a great extent.

Today we can say, in all the developed countries, cement is still treated as a commodity whereas in India it is somewhere between commodity and brand. In short, for a retail buyer, companies sell it as a brand whereas for institutional buyers it is sold as a commodity. The dealer is extremely important for both buyer and manufacturer.

Distribution Channel: Cement v/s FMCG
The business is driven on relationship more than that of a brand. The market is extremely price-sensitive and therefore the brand cannot fetch a value beyond a certain level. Typically the institutional buyers squeeze the manufacturers and dealers to a maximum. The systems of payment and collection are better in FMCG sector than that of cement. The channel has to improve on that. Many a times as referred by Phadke, deliveries are effected just on telephone calls without any documentation and dealers have been exposed to a great risk. Probably the younger generation has to learn from it and correct their actions.

According to Rahul Akkara, Associate Vice President – Brand, JSW Cement, "In the cement business, the dealer is accountable for expanding the base across his/her territory and for doing this, he/she needs to have a good sub dealer base, which would help him achieve this. Also the dealer should also have good networking with influencers such as contractors, engineers, masons and builders, who are also equally responsible to increase business for a cement brand in his territory."

Exclusivity so called is meaningless and forced only by the companies even though they understand that exclusive dealers are doing business with other brands, may be in equal volumes only under different names. Secondly as expressed by Phadke, it is not legally enforceable but still cement companies are going on creating exclusive dealers. It needs second thinking.

Cement bags does not carry an expiry date but it does not mean that the old stock can be put to use for any job like casting a slab or column. Here it differs far from that of FMCG products and procedures. Leftover or damaged products are returned to the manufacturers, however it does not apply to cement. Another major difference with that of FMCG products is that the manufacturer scores over that of the distributor and he is dominant where as in cement business chain the dealer is more valued than the manufacturer.

The other issue raised by Phadke is very valid but has no immediate answer. CFAs are becoming cement dealers and competing with traditional channel members. It is important to remember that as CFAs have access to very vital information about the dealers customers and that can be used to compete with them. Even legally it will not be possible for any one to stop such entry but what can be done is they can be allotted different territory for doing business so as to protect the interest of the existing dealers. On the other hand some of the existing dealers have been investing money to have their own transport but it has not been very common.

Surprisingly no one has talked about the loss of cement either by the way of using hooks or because of transloading of shipment. The quantum of loss is significant but since it is a high volume business no one seems to be worried.

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Economy & Market

Smart Pumping for Rock Blasting

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SEEPEX introduces BN pumps with Smart Joint Access (SJA) to improve efficiency, reliability, and inspection speed in demanding rock blasting operations.
Designed for abrasive and chemical media, the solution supports precise dosing, reduced downtime, and enhanced operational safety.

SEEPEX has introduced BN pumps with Smart Joint Access (SJA), engineered for the reliable and precise transfer of abrasive, corrosive, and chemical media in mining and construction. Designed for rock blasting, the pump features a large inspection opening for quick joint checks, a compact footprint for mobile or skid-mounted installations, and flexible drive and material options for consistent performance and uptime.

“Operators can inspect joints quickly and rely on precise pumping of shear-sensitive and abrasive emulsions,” said Magalie Levray, Global Business Development Manager Mining at SEEPEX. “This is particularly critical in rock blasting, where every borehole counts for productivity.” Industry Context

Rock blasting is essential for extracting hard rock and shaping safe excavation profiles in mining and construction. Accurate and consistent loading of explosive emulsions ensures controlled fragmentation, protects personnel, and maximizes productivity. Even minor deviations in pumping can cause delays or reduce product quality. BN pumps with SJA support routine maintenance and pre-operation checks by allowing fast verification of joint integrity, enabling more efficient operations.

Always Inspection Ready

Smart Joint Access is designed for inspection-friendly operations. The large inspection opening in the suction housing provides direct access to both joints, enabling rapid pre-operation checks while maintaining high operational reliability. Technicians can assess joint condition quickly, supporting continuous, reliable operation.

Key Features

  • Compact Footprint: Fits truck-mounted mobile units, skid-mounted systems, and factory installations.
  • Flexible Drive Options: Compact hydraulic drive or electric drive configurations.
  • Hydraulic Efficiency: Low-displacement design reduces oil requirements and supports low total cost of ownership.
  • Equal Wall Stator Design: Ensures high-pressure performance in a compact footprint.
  • Material Flexibility: Stainless steel or steel housings, chrome-plated rotors, and stators in NBR, EPDM, or FKM.

Operators benefit from shorter inspection cycles, reliable dosing, seamless integration, and fast delivery through framework agreements, helping to maintain uptime in critical rock blasting processes.

Applications – Optimized for Rock Blasting

BN pumps with SJA are designed for mining, tunneling, quarrying, civil works, dam construction, and other sectors requiring precise handling of abrasive or chemical media. They provide robust performance while enabling fast, reliable inspection and maintenance.With SJA, operators can quickly access both joints without disassembly, ensuring emulsions are transferred accurately and consistently. This reduces downtime, preserves product integrity, and supports uniform dosing across multiple bore holes.

With the Smart Joint Access inspection opening, operators can quickly access and assess the condition of both joints without disassembly, enabling immediate verification of pump readiness prior to blast hole loading. This allows operators to confirm that emulsions are transferred accurately and consistently, protecting personnel, minimizing product degradation, and maintaining uniform dosing across multiple bore holes.

The combination of equal wall stator design, compact integration, flexible drives, and progressive cavity pump technology ensures continuous, reliable operation even in space-limited, high-pressure environments.

From Inspection to Operation

A leading explosives provider implemented BN pumps with SJA in open pit and underground operations. By replacing legacy pumps, inspection cycles were significantly shortened, allowing crews to complete pre-operation checks and return mobile units to productive work faster. Direct joint access through SJA enabled immediate verification, consistent emulsion dosing, and reduced downtime caused by joint-related deviations.

“The inspection opening gives immediate confidence that each joint is secure before proceeding to bore holes,” said a site technician. “It allows us to act quickly, keeping blasting schedules on track.”

Framework agreements ensured rapid pump supply and minimal downtime, supporting multi-site operations across continents

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Concrete

Digital process control is transforming grinding

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Satish Maheshwari, Chief Manufacturing Officer, Shree Cement, delves into how digital intelligence is transforming cement grinding into a predictive, stable, and energy-efficient operation.

Grinding sits at the heart of cement manufacturing, accounting for the largest share of electrical energy consumption. In this interview, Satish Maheshwari, Chief Manufacturing Officer, Shree Cement, explains how advanced grinding technologies, data-driven optimisation and process intelligence are transforming mill performance, reducing power consumption and supporting the industry’s decarbonisation goals.

How has the grinding process evolved in Indian cement plants to meet rising efficiency and sustainability expectations?
Over the past decade, Indian cement plants have seen a clear evolution in grinding technology, moving from conventional open-circuit ball mills to high-efficiency closed-circuit systems, Roller Press–Ball Mill combinations and Vertical Roller Mills (VRMs). This shift has been supported by advances in separator design, improved wear-resistant materials, and the growing use of digital process automation. As a result, grinding units today operate as highly controlled manufacturing systems where real-time data, process intelligence and efficient separation work together to deliver stable and predictable performance.
From a sustainability perspective, these developments directly reduce specific power consumption, improve equipment reliability and lower the carbon footprint per tonne of cement produced.

How critical is grinding optimisation in reducing specific power consumption across ball mills and VRMs?
Grinding is the largest consumer of electrical energy in a cement plant, which makes optimisation one of the most effective levers for improving energy efficiency. In ball mill systems, optimisation through correct media selection, charge design, diaphragm configuration, ventilation management and separator tuning can typically deliver power savings of 5 per cent to 8 per cent. In VRMs, fine-tuning airflow balance, grinding pressure, nozzle ring settings, and circulating load can unlock energy reductions in the range of 8 per cent to 12 per cent. Across both systems, sustained operation under stable conditions is critical. Consistency in mill loading and operating parameters improves quality control, reduces wear, and enables long-term energy efficiency, making stability a key operational KPI.

What challenges arise in maintaining consistent cement quality when using alternative raw materials and blended compositions?
The increased use of alternative raw materials and supplementary cementitious materials (SCM) introduces variability in chemistry, moisture, hardness, and loss on ignition. This variability makes it more challenging to maintain consistent fineness, particle size distribution, throughput and downstream performance parameters such as setting time, strength development and workability.
As clinker substitution levels rise, grinding precision becomes increasingly important. Even small improvements in consistency enable higher SCM utilisation without compromising cement performance.
Addressing these challenges requires stronger feed homogenisation, real-time quality monitoring and dynamic adjustment of grinding parameters so that output quality remains stable despite changing input characteristics.

How is digital process control changing the way grinding performance is optimised?
Digital process control is transforming grinding from an operator-dependent activity into a predictive, model-driven operation. Technologies such as online particle size and residue analysers, AI-based optimisation platforms, digital twins for VRMs and Roller Press systems, and advanced process control solutions are redefining how performance is managed.
At the same time, workforce roles are evolving. Operators are increasingly focused on interpreting data trends through digital dashboards and responding proactively rather than relying on manual interventions. Together, these tools improve mill stability, enable faster response to disturbances, maintain consistent fineness, and reduce specific energy consumption while minimising manual effort.

How do you see grinding technologies supporting the industry’s low-clinker and decarbonisation goals?
Modern grinding technologies are central to the industry’s decarbonisation efforts. They enable higher incorporation of SCMs such as fly ash, slag, and limestone, improve particle fineness and reactivity, and reduce overall power consumption. Efficient grinding makes it possible to maintain consistent cement quality at lower clinker factors. Every improvement in energy intensity and particle engineering directly contributes to lower CO2 emissions.
As India moves toward low-carbon construction, precision grinding will remain a foundational capability for delivering sustainable, high-performance cement aligned with national and global climate objectives.

How much potential does grinding optimisation hold for immediate energy
and cost savings?
The potential for near-term savings is substantial. Without major capital investment, most plants can achieve 5 per cent to 15 per cent power reduction through measures such as improving separator efficiency, optimising ventilation, refining media grading, and fine-tuning operating parameters.
With continued capacity expansion across India, advanced optimisation tools will help ensure that productivity gains are not matched by proportional increases in energy demand. Given current power costs, this translates into direct and measurable financial benefits, making grinding optimisation one of the fastest-payback operational initiatives available to cement manufacturers today.

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Concrete

Refractory demands in our kiln have changed

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Radha Singh, Senior Manager (P&Q), Shree Digvijay Cement, points out why performance, predictability and life-cycle value now matter more than routine replacement in cement kilns.

As Indian cement plants push for higher throughput, increased alternative fuel usage and tighter shutdown cycles, refractory performance in kilns and pyro-processing systems is under growing pressure. In this interview, Radha Singh, Senior Manager (P&Q), Shree Digvijay Cement, shares how refractory demands have evolved on the ground and how smarter digital monitoring is improving kiln stability, uptime and clinker quality.

How have refractory demands changed in your kiln and pyro-processing line over the last five years?
Over the last five years, refractory demands in our kiln and pyro line have changed. Earlier, the focus was mostly on standard grades and routine shutdown-based replacement. But now, because of higher production loads, more alternative fuels and raw materials (AFR) usage and greater temperature variation, the expectation from refractory has increased.
In our own case, the current kiln refractory has already completed around 1.5 years, which itself shows how much more we now rely on materials that can handle thermal shock, alkali attack and coating fluctuations. We have moved towards more stable, high-performance linings so that we don’t have to enter the kiln frequently for repairs.
Overall, the shift has been from just ‘installation and run’ to selecting refractories that give longer life, better coating behaviour and more predictable performance under tougher operating conditions.

What are the biggest refractory challenges in the preheater, calciner and cooler zones?
• Preheater: Coating instability, chloride/sulphur cycles and brick erosion.
• Calciner: AFR firing, thermal shock and alkali infiltration.
• Cooler: Severe abrasion, red-river formation and mechanical stress on linings.
Overall, the biggest challenge is maintaining lining stability under highly variable operating conditions.

How do you evaluate and select refractory partners for long-term performance?
In real plant conditions, we don’t select a refractory partner just by looking at price. First, we see their past performance in similar kilns and whether their material has actually survived our operating conditions. We also check how strong their technical support is during shutdowns, because installation quality matters as much as the material itself.
Another key point is how quickly they respond during breakdowns or hot spots. A good partner should be available on short notice. We also look at their failure analysis capability, whether they can explain why a lining failed and suggest improvements.
On top of this, we review the life they delivered in the last few campaigns, their supply reliability and their willingness to offer plant-specific custom solutions instead of generic grades. Only a partner who supports us throughout the life cycle, which includes selection, installation, monitoring and post-failure analysis, fits our long-term requirement.

Can you share a recent example where better refractory selection improved uptime or clinker quality?
Recently, we upgraded to a high-abrasion basic brick at the kiln outlet. Earlier we had frequent chipping and coating loss. With the new lining, thermal stability improved and the coating became much more stable. As a result, our shutdown interval increased and clinker quality remained more consistent. It had a direct impact on our uptime.

How is increased AFR use affecting refractory behaviour?
Increased AFR use is definitely putting more stress on the refractory. The biggest issue we see daily is the rise in chlorine, alkalis and volatiles, which directly attack the lining, especially in the calciner and kiln inlet. AFR firing is also not as stable as conventional fuel, so we face frequent temperature fluctuations, which cause more thermal shock and small cracks in the lining.
Another real problem is coating instability. Some days the coating builds too fast, other days it suddenly drops, and both conditions impact refractory life. We also notice more dust circulation and buildup inside the calciner whenever the AFR mix changes, which again increases erosion.
Because of these practical issues, we have started relying more on alkali-resistant, low-porosity and better thermal shock–resistant materials to handle the additional stress coming from AFR.

What role does digital monitoring or thermal profiling play in your refractory strategy?
Digital tools like kiln shell scanners, IR imaging and thermal profiling help us detect weakening areas much earlier. This reduces unplanned shutdowns, helps identify hotspots accurately and allows us to replace only the critical sections. Overall, our maintenance has shifted from reactive to predictive, improving lining life significantly.

How do you balance cost, durability and installation speed during refractory shutdowns?
We focus on three points:
• Material quality that suits our thermal profile and chemistry.
• Installation speed, in fast turnarounds, we prefer monolithic.
• Life-cycle cost—the cheapest material is not the most economical. We look at durability, future downtime and total cost of ownership.
This balance ensures reliable performance without unnecessary expenditure.

What refractory or pyro-processing innovations could transform Indian cement operations?
Some promising developments include:
• High-performance, low-porosity and nano-bonded refractories
• Precast modular linings to drastically reduce shutdown time
• AI-driven kiln thermal analytics
• Advanced coating management solutions
• More AFR-compatible refractory mixes

These innovations can significantly improve kiln stability, efficiency and maintenance planning across the industry.

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