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Green supply chain: Time to act now

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9 years ago

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The Indian cement industry, which can trace its beginnings back to 1914, has come a long way since then. India is the second largest market globally ~390 mt annual capacity (approximately 8 per cent of world capacity). Fueled by strong economic growth, rising population and rapid urbanisation, the construction sector is one of the fastest growing sectors in India today.

Second only to the agricultural sector, the cement industry currently employs 33 million individuals, with an incremental workforce requirement of about four million people per year. The productivity parameters are now nearing quality improvements with the use of alternate fuels and raw materials, which have not only ensured improvements in productivity but have also been able to reduce production costs. Effective environment management continues to play a key role in the efforts of the cement industry to operate in a sustainable manner.

Logistics planning involves efficient integration of suppliers, manufacturers, warehouses and stores and encompasses the firm’s activities from the strategic level through the tactical to the operational level. However, it has also been observed to playing a vital role in making the finished product conform to customer requirements. The effective planning and management of a logistics and supply chain is a challenge for most countries. Like in the case of the Nigerian cement industry, the supply chain cannot rely on the rail system due to its obsoleteness, therefore they are purely based on roads (i.e. use of trucks), which contributes to the increase in pollution levels. To bring the railways back into operation, new infrastructural developments would have to be put in place, which can lead to cheaper, less polluting and more efficient system for an effective supply chain process in Nigeria. This country is a prime example of steady economic growth, facing the risk of losing such a position if such prime economic indicators, as an efficient railway system continue to develop at a snail’s pace. The cement industry in India also faces challenges in terms of developing its logistics system. There is a lack of IT implementation, which at present is developing at a slow pace due to the implied additional costs. On the other hand, India has the largest railway network in Asia, which should have been the preferred means for bulk transport instead of using the country’s road systems for a more effective usage of the present infrastructure. However, since the rail network, rolling stock availability and last mile connectivity are major bottlenecks, road transportation on account of better road infrastructure, varied fleet mix and service requirements has become the preferred mode of transportation for the cement industry.

Going green is not a one-time proposal, but a continuous effort to recognise ways to diminish a company’s environmental impact and improve business standards. Considering the obstacles faced by the cement industry in the country, companies should aim at designing a supply chain which would ensure usage of the same amount of fuel for more products transported, covering more distance. This would enable the resulting savings to be passed on to the customer as well. Also, adequate monitoring and acquiring data is a fundamental way of making a supply chain more effective and safer for all stakeholders involved. Simple technologies can go a long way in achieving this goal such as installation of Radio Frequency Identification Device (RFID) and Global Positioning System (GPS) in all vehicles.

RFID and GPS together can ensure better visibility of trucks with complete transparency in the process, by tracking the historical data of trucks and time taken from Gate In and Gate Out of the plant. These modifications can help reduce waiting time for trucks, which is one of the main challenges of time efficiency and it also helps reduce hazards such as high accident rate on the road, product wastage and traffic congestion on the highways.

In the next decade, the Indian economy will have grown multifold and consumers will become much more heterogeneous, presenting organisations with a unique set of opportunities and challenges. The supply chain will be impacted by various evolving macro-factors such as mega cities, increased consumer segments, increased global trade and more importantly, affordable technologies. Therefore there is a need for a green supply chain system which can reduce the ecological impact of industrial activity without sacrificing quality, cost, reliability, performance or energy utilisation efficiency. It involves a paradigm shift from an end-of-pipe control aimed at simply meeting environmental regulations to adopting measures which succeed in not only mini-mising ecological damage, but also leading to overall economic profit.

Author: Tushar Dave, Sr Vice President, Central Logistics, ACC Limited

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Economy & Market

Hindalco Buys US Speciality Alumina Firm for $125 Million

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2 days ago

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June 25, 2025

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This strategic acquisition marks a significant investment in speciality alumina, a key step by Aditya Birla Group’s metals flagship towards becoming future-ready by scaling its high-value, technology-led materials portfolio.

Hindalco Industries, the world’s largest aluminium company by revenue and the metals flagship of the $28 billion Aditya Birla Group, has announced the acquisition of a 100 per cent equity stake in US-based AluChem Companies—a prominent manufacturer of speciality alumina—for an enterprise value of $125 million. The transaction will be executed through Aditya Holdings, a wholly owned subsidiary.

This acquisition represents a pivotal investment in speciality alumina and advances Hindalco’s strategy to expand its high-value, technology-led materials portfolio.

Hindalco’s speciality alumina business, a key pillar of its value-added strategy, has delivered consistent double-digit growth in recent years. It has emerged as a high-growth, high-margin vertical within the company’s portfolio. As speciality alumina finds expanding applications across electric mobility, semiconductors, and precision ceramics, the deal positions Hindalco further up the innovation curve, enabling next-generation alumina solutions and value-accretive growth.

Kumar Mangalam Birla, Chairman of Aditya Birla Group, called the acquisition an important step in their global strategy to build a leadership position in value-added, high-tech materials.

“Our strategic foray into the speciality alumina space will not only accelerate the development of future-ready, sustainable solutions but also open new pathways to pursue high-impact growth opportunities. By integrating advanced technologies into our value chain, we are reinforcing our commitment to self-reliance, import substitution, and building scale in innovation-led businesses.”

Ronald P Zapletal, Founder, AluChem Companies, said the partnership with Hindalco would provide AluChem the ability and capital to scale up faster and build scale in North America.

“AluChem will benefit from their world-class sustainability and safety standards and practices, access to integrated operations and a consistent, reliable raw material supply chain. Their ability to leverage R&D capabilities and a talented workforce adds tremendous value to our innovation pipeline, helping drive market expansion beyond North America.”

An Eye on the Future

The global speciality alumina market is projected to grow significantly, with rising demand for tailored solutions in sectors such as ceramics, electronics, aerospace, and medical applications. Hindalco currently operates 500,000 tonnes of speciality alumina capacity and aims to scale this up to 1 million tonnes by FY2030.

Commenting on the development, Satish Pai, Managing Director, Hindalco Industries, said the deal reinforced their commitment to innovation and global expansion.

“As alumina gains increasing relevance in critical and clean-tech sectors, AluChem’s advanced chemistry capabilities will significantly enhance our ability to serve these fast-evolving markets. Importantly, it deepens our high-value-added portfolio with differentiated products that drive profitability and strengthen our global competitiveness.”

AluChem adds a strong North American presence to Hindalco’s portfolio, with an annual capacity of 60,000 tonnes across three advanced manufacturing facilities in Ohio and Arkansas. The company is a long-standing supplier of ultra-low soda calcined and tabular alumina, materials prized for their thermal and mechanical stability and widely used in precision engineering and high-performance refractories.

Saurabh Khedekar, CEO of the Alumina Business at Hindalco Industries, said the acquisition unlocked immediate synergies, including market access and portfolio diversification.

“Hindalco plans to work with AluChem’s high performance technology solutions and scale up production of ultra-low soda alumina products to drive a larger global market share.”

The transaction is expected to close in the upcoming quarter, subject to customary closing conditions and regulatory approvals.

 

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Concrete

Shree Cement reports 2025 financial year results

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1 week ago

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June 17, 2025

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Shree Cement posted revenue of US$2.38 billion for FY2025, marking a 5.5 per cent decline year-on-year. Operating costs rose 2.9 per cent to US$2.17 billion, resulting in an EBITDA of US$528 million—down 12 per cent from the previous year. Net profit fell 50 per cent to US$141 million. The company reported cement sales of 9.84Mt in Q4 FY2025, a 3.3 per cent increase from 9.53Mt in Q4 FY2024, with premium products making up 16 per cent of total sales.

Image source:https://newsmantra.in/

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Concrete

Rekha Onteddu to become director at Sagar Cements

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1 week ago

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June 17, 2025

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Sagar Cements has announced the appointment of Rekha Onteddu as a non-executive independent director, effective 30 June 2025. According to People in Business News, Rekha Onteddu is currently serving in a similar capacity at Andhra Cements, the parent company of Sagar Cements.

Image source:https://sagarcements.in/

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