Economy & Market

Green supply chain: Time to act now

Published

9 years ago

July 4, 2016

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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

Concrete

15th Cement EXPO: A Step Forward in Cement Innovation

Published

3 weeks ago

January 17, 2025

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Mumbai

Following the immense success of the 14th Cement EXPO, held on December 14-15, 2023, at the Manekshaw Centre, New Delhi, the next edition of this premier event is set to take place in March 2025. The 15th Cement EXPO will be hosted at Yashobhoomi, Delhi, on 12th and 13th November 2025.

Meanwhile, the Cement Expo Forum 2025 is scheduled for 5th and 6th March 2025 at Taj Krishna in Hyderabad. This exciting 3-in-1 event, organised by FIRST Construction Council (FCC) and Indian Cement Review (ICR), will bring together industry leaders, innovators, and stakeholders to discuss the future of the cement sector.

Building on the Success of the 14th Cement EXPO

The 14th Cement EXPO was widely praised for its strong participation, attracting over 1,500 senior managers and decision-makers from across the cement industry. The event was inaugurated by Dr. Vibha Dhawan, Director General of TERI, and Ali Emir Adiguzel, Founder and Director of the World Cement Association, alongside Pratap Padode, Founder of FIRST Construction Council (FCC). The two-tiered exhibition space featured cutting-edge products and innovations from top companies within the cement industry’s supply chain.

The event also garnered significant support from key government bodies, including the Ministry of Road Transport and Highways, Government e-Marketplace (GeM), and the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, Government of India (GoI).

Recognition and Excellence in the Cement Industry

The 7th Indian Cement Review Awards celebrated excellence by presenting awards to 11 companies in various categories, recognising their contributions to growth and innovation within the industry. Notably, Parth Jindal, Managing Director of JSW Cement, was honoured with the prestigious Indian Cement Review – Person of the Year Award 2023. Meanwhile, Vinita Singhania, Vice Chairman and Managing Director of JK Lakshmi Cement Ltd, received the Lifetime Achievement Award for her outstanding leadership and contributions to the sector.

A Vision for Sustainability

With the theme of “Driving Sustainability Through Technology,” the 9th Indian Cement Review Conference hosted thought-provoking discussions and presentations, highlighting the industry’s commitment to adopting innovative, sustainable practices. The conference served as a platform for dialogue on the latest technological advancements aimed at transforming the cement sector, addressing key challenges, and fostering growth.

What to Expect from Cement EXPO 2025

The 15th Cement EXPO, along with the 10th Indian Cement Review Conference and the 8th Indian Cement Review Awards, is set to be even bigger and more impactful than the 2023 edition. With an expanded exhibition space, greater participation, and more in-depth discussions, the 2025 event will continue to drive the industry forward. This 3-in-1 event promises to be a pivotal moment in the ongoing transformation of the cement sector.

As the industry evolves, the 15th Cement EXPO 2025 will serve as a crucial platform for showcasing innovations, discussing emerging trends, and forging new partnerships to shape the future of cement and construction.

For more details:

Cement Expo Forum 2025: https://cementexpo.in/forum

15^th Cement Expo 2025: https://cementexpo.in/

FOR CONFERENCE SPONSORSHIPS

Sheetal Talreja

Mob: +91 842 2874 030

Email: sheetal@IndianCementReview.com

FOR EXHIBITION/SPONSORSHIPS

Sujoy Gomes

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Email: Sujoy.g@ASAPPinfoGlobal.com

FOR SPONSORSHIPS

Ratan Rajbhar

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Concrete

Construction sector growth slows to 8-10% for FY2025: ICRA

Published

3 weeks ago

January 15, 2025

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The revenue growth for construction companies in FY2025 is projected at 8-10 per cent, down from the earlier estimate of 12-15 per cent, according to ICRA. This marks the slowest growth in three years, driven by factors such as the Model Code of Conduct in Q1, prolonged monsoons, and milestone-based billing in Q2, particularly affecting road-focused players.
ICRA’s analysis of 19 companies with a combined turnover of Rs.1.28 trillion in FY2024 shows modest revenue growth of 1.5 per cent YoY in H1 FY2025. While execution is expected to improve in H2, FY2025 growth remains below the historical CAGR of ~15 per cent (FY2018-FY2024).
Order inflows in urban transport, water and sewage projects are healthy, but road-focused entities face challenges due to muted inflows and high competition. Operating margins are projected to remain range-bound at 10.5-11 per cent, with debt levels rising to manage working capital needs, though debt coverage metrics remain stable.

Concrete

SANY India expands Pune factory to boost production capacity

Published

3 weeks ago

January 15, 2025

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SANY India inaugurated a cutting-edge factory expansion at its 90-acre Pune facility, elevating its production capacity to over 14,000 units annually, alongside a robust fabrication capacity of 100,000 metric tonnes.

The advanced facility reinforces SANY’s commitment to ‘Make in India’ by enhancing localised manufacturing and supporting global exports. Chairman Xiang Wenbo highlighted the strategic importance of India as a global hub, while Vice Chairman Deepak Garg emphasised the expansion’s role in driving innovation and infrastructure development. This investment enhances efficiency, reduces timelines, and strengthens SANY’s leadership in the construction equipment sector.