Economy & Market

Logistics, a crucial business link

Published

10 years ago

December 30, 2016

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Of late, logistics is being looked upon in a different light. Better technology is being used for truck movement, and greater attention is being paid towards ease of working for drivers.

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?s end. Approximately 30-35 per cent of the cost of cement can be attributed to the cost of distribution, which begins at the gates of the cement facility. Currently, for every 50-kg bag of cement, the logistics cost comes to around Rs 19-25 by road and Rs 14-17 by the Railways, depending on the distance involved.

For example, the country?s third-largest cement maker, Ambuja Cements, opted for sea-routes to transport its cement from Gujarat to its southern market. Today, 70 per cent of the cement movement worldwide is by sea compared to just 3-4 per cent in India. However, the scenario is changing, with most of the big players like Ambuja, UltraTech, Sanghi and ABG Cement having set up their bulk terminals.

The most inexpensive method of moving cement is in bulk by water, but 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 such optimum solutions using mathematical modelling and algorithms. About 3 per cent of the gross revenue is spent on inward logistics while outward logistics accounts for another portion of 15 per cent.

Inward logistics includes coal and limestone transportation, while outward logistics is mostly the final product, cement. Some companies also incur outbound logistics cost of transporting clinker to their grinding plants. For plants that are closer to the collieries, the inbound transportation costs are less. For plants located far away from the collieries they have the option to import coal.

In case of final product, the costs of handling and secondary movement are very high. Although transportation by sea is the cheapest option, unless there is right connectivity from the port to the consuming centre, the gains are minimal. In the past, the freight cost could be optimised on imported coal but the case no more exists since import of coal is a matter of the past. The costs of handling and secondary movement are very high in cement transport. Although transportation by sea is the cheapest option, unless there is right connectivity from the port to the consuming centre, the gains are minimal. In case of final product, companies which have plants located closer to the markets as well as to the source of raw materials have an advantage over their peers, as this leads to lower freight costs. Also, plants located in coastal belts find it much cheaper to transport cement by the sea route in order to cater to the coastal markets such as Mumbai and the states of Gujarat and Tamil Nadu.

GST and Logistics cost
The new GST regime will drive efficiency in logistics, and yield tax savings. Complex and cascading indirect taxes have been one of the key reasons impacting the competitiveness of Indian manufacturers over the years. Alongside operational efficiency, tax avoidance has influenced the supply chain decisions of corporates, resulting in small and inefficient warehouses and high logistics costs. Once the GST is introduced, ?tax avoidance? will no longer influence decisions concerning distribution network and total warehouse space can be reduced partially.

As far as tax savings are concerned, elimination of the cascading effect of taxes will be taken more seriously. There will be phasing out of the 2 per cent CST for companies who move goods across state borders for sale. There will be optimisation of warehouses and consolidation of inventories for companies which historically choose to set up multiple warehouses across states so as to avoid paying CST. Elimination of check posts offers additional cost savings – while most states have replaced octroi with a local body tax (LBT), it has still not reduced the waiting time for vehicles. Similarly, at check posts on state borders, different requirements for documentation and tax payment lead to considerable delays.

While GST will subsume taxes such as octroi and LBT, a parallel dismantling of check posts too will ensure faster transit of goods, and in turn, reduce companies? need to maintain buffer inventories.

Dismantling of check posts will boost logistical gains. Estimates suggest that a quarter of the journey time is typically spent at check posts, state borders, city entrances, and other regulatory stoppages. This adds to the cost of transporting goods and forces companies to maintain buffer inventories. Dismantling of check posts is critical to maximise benefits from the GST rollout. Such a move will structurally benefit firms, especially those which have a large, pan-India distribution network.

To ensure faster transit of goods through check posts, implementing e-permit/e-tolling systems could be one alternative. Such systems work on radio-frequency identification technology, where the tax status of goods being transported is automatically scanned as the vehicle passes through the check post. Pilot studies are already being conducted in states like Haryana and Gujarat. The relevance of automation is also highlighted by some stark statistics. While vehicles at one of India?s major check posts (Walayar, Kerala) spend at least 6-8 hours in transit (going up to a full day if traffic is heavy), Karnataka provides a breather by allowing vehicles to be moved in less than an hour by opting for online declaration of goods and electronic scanning of vehicles.

Broadly, CRISIL Research believes that eliminating check post delays will cut transportation costs by 10-15 per cent and trim inventory carrying costs, owing to more certainty in transit times. This will result in additional savings of 0.4-0.8 per cent of net sales for players across sectors. This, including the direct cost savings, will take the overall logistics costs savings to up to1.5-2 per cent of sales for companies. However, the proposed additional tax of 1 per cent by states on supply of goods in lieu of CST for 2 years could delay dismantling of check-posts.

Sales of high-tonnage, high-performance trucks will get a fillip. Realigning supply chains and dismantling of checkposts is expected to take at least two-three years after GST is implemented. This will drive demand for larger, more efficient trucks such as multi-axle vehicles and tractor-trailers as loads consolidate on primary routes. These vehicles will carry heavier cargo per trip and reduce overall shipment costs for companies on primary routes. Accordingly, we envisage a faster shift to 31-tonne MAVs from 25-tonne MAVs and to 40-tonne trailers from 35-tonne trailers.

We also expect players to shift from traditional, low-cost trucks to slightly mid-premium trucks (higher-powered trucks with better cabin comfort that cost at least 15 per cent higher but aid in faster turnaround times). While most commercial vehicle manufacturers began launching mid-premium and premium trucks four-five years ago (like Tata?s Prima series, Mahindra?s trucks, Eicher?s Pro range, etc.), these models failed to gain significant market share (they still comprise just 5-7 per cent of total revenues in the MHCV segment) as faster transportation was required to make these models a viable option. Consolidation of truck loads and dismantling of check posts can aid seamless transport and drive demand for such trucks.

Economy & Market

Leonard Unveils Dual-Head Robotic Arm for Hazardous Industrial Demolition

Published

3 days ago

October 30, 2026

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Leonard unveils Descender Duo, a dual-head robotic demolition arm designed to improve industrial safety and reduce shutdown time by up to 50 per cent.

Industrial robotics and refractory services specialist Leonard has launched Descender Duo, a dual-head robotic demolition arm designed to improve safety, accelerate maintenance and reduce shutdown times in hazardous industrial environments. The system made its debut at Lisahally Power Station in Northern Ireland, removing 25 tonnes of slag material within hours.

Developed for the cement, metals, waste-to-energy and petrochemical industries, Descender Duo enables remote-controlled refractory demolition, anchor cutting and welding, and refractory spraying inside boilers, calciners and silos. Its vertical-access design eliminates the need for personnel to enter confined, high-risk spaces during these operations.

Weighing less than two tonnes, the pre-assembled system requires an access opening of just 1.2 m². Supported by an external overhead hoist, it uses electrically operated hydraulic stabilising legs to secure itself inside vessels. The robotic arm offers 360-degree rotation and is suited to vessels approximately 9 m in diameter, with its operating reach extendable through strategically positioned access points.

Equipped with two independently controlled robotic heads, Descender Duo can perform identical or different tasks simultaneously, including refractory demolition, anchor cutting and spraying. Its remote-control system incorporates live camera feeds, allowing operators to monitor operations without entering hazardous environments.

According to Leonard, the technology can deliver time savings of up to 50 per cent compared with manual methods. Its ability to operate at temperatures exceeding 100°C allows maintenance to begin as early as 24 hours after burner shutdown. An all-electric power supply further supports cleaner and more cost-efficient operations.

First Deployment Demonstrates Shutdown Efficiency

The system was first deployed at Burmeister & Wain Scandinavian Contractor’s (BWSC) Lisahally Power Station in Londonderry, Northern Ireland. The facility generates electricity from grade C waste wood, supplying approximately 40,000 homes and businesses.

Leonard and BWSC collaborated to develop a customised solution for the plant’s 26-metre furnace, where extensive external pipework created significant access challenges.

Mark Leonard, Managing Director, Leonard, said, “It required new thinking and rather than step away from the problem we were committed to solving it for the customer, with the customer. We’re relentless in our approach to tackling complex challenges, head-on. We took our years of cement plant experience, coupled with our working knowledge of the BWSC plant, and designed, engineered and tested a completely new vertical solution within just seven weeks from that initial conversation with the customer. That solution was the Descender Duo as we know it today.”

Traditionally, the furnace required a cooling period of up to 36 hours before preparatory work could begin, followed by manual slag removal using rope-access personnel. With Descender Duo, work commenced just 24 hours after shutdown, reducing downtime by up to one day.

The deployment removed 25 tonnes of slag within hours, eliminated the need for at least six workers to enter the hazardous furnace interior and saved 26 hours in the shutdown programme.

“The effectiveness exceeded expectation,” said Martin Doran, Plant Manager at Lisahally Power Station.

“When the Descender Duo concept was first discussed, we had to spend some time with the team from Leonard looking at how it was going to be moved into the furnace. Every site is different and that presented its own challenges, but nothing that the team couldn’t overcome. Once it was installed we were hugely impressed by its efficiency.”

Expanding Industrial Robotics Applications

Descender Duo joins Leonard’s existing portfolio of robotic maintenance solutions, including the Axis horizontal-access arm, Nano confined-space access arm, Charger cement mill media recharging system and Calibre cement mill media grading system.

Headquartered in Northern Ireland, Leonard provides robotic refractory demolition, installation, inspection and industrial maintenance services across the cement, metals, energy, biomass, glass and civil engineering sectors.

Formerly known as G Leonard, the company has more than 35 years of industry experience and operates across Europe, North America, the Middle East, Africa and Asia-Pacific.

The latest innovation reinforces Leonard’s focus on replacing hazardous manual processes with robotic systems that improve workforce safety, enhance operational efficiency and minimise industrial downtime.

Concrete

Martin Engineering Appoints Ashwini Khunte as India General Manager

Published

4 days ago

October 30, 2026

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Martin Engineering names Ashwini Khunte India General Manager to strengthen operations and drive growth across key bulk material handling sectors.

Pune

Martin Engineering, a global provider of bulk material handling solutions, has appointed Ashwini Khunte as General Manager of its India business, strengthening its leadership as the company expands its presence across the country’s cement, mining, steel, power and infrastructure sectors.

Khunte brings more than a decade of experience with Martin Engineering, having joined its Indian operations in 2013 as a Design Engineer, shortly after the company established its presence in the country in 2012.

A mechanical engineer by qualification, she spent her initial five years developing bulk material handling solutions in collaboration with the company’s operations team. During this period, she gained extensive experience addressing operational challenges in the steel, cement and coal industries. She subsequently moved into project engineering, managing major engineering, procurement and construction (EPC) and original equipment manufacturer (OEM) projects from initial enquiry to commissioning. Her responsibilities later expanded to overseeing Martin Engineering’s conveyor product portfolio in India, involving customer engagement, technical presentations and site visits across heavy industries.

In 2024, Khunte was promoted to Head of Sales & Marketing for the company’s Europe, Middle East, Africa and India (EMEAI) region. The position broadened her international market exposure and strengthened her strategic and commercial leadership capabilities.

Commenting on her appointment, Ashwini Khunte, General Manager, Martin Engineering India, said: “India represents a tremendous opportunity for Martin Engineering. The country’s continued investment in cement, mining, steel, power and infrastructure is creating increasing demand for safer, cleaner and more productive bulk material handling, and that’s exactly what we do. My priority will be to build on the strong foundations already established in India, while continuing to develop our people, strengthen customer relationships and bring practical solutions to the challenges faced by our industry.”

Robert Whetstone, Area Vice President – EMEAI, Martin Engineering, highlighted Khunte’s technical expertise, market understanding and leadership experience.

“Ashwini brings an exceptional combination of technical understanding, customer knowledge and commercial leadership. She has grown as Martin Engineering has grown, and has consistently demonstrated outstanding capability to transform her expertise into practical solutions. Her knowledge of the Indian market, together with her international experience, makes her ideally suited to lead our India business through its next stage of growth for years to come.”

Since establishing its Indian business in 2012, Martin Engineering has expanded its local workforce, manufacturing capabilities and dealership network. The company supplies conveyor products, transfer point solutions, material flow aids, training and technical support to bulk material handling industries. Khunte’s appointment positions the company to further strengthen customer relationships and expand its solutions portfolio in India’s growing industrial and infrastructure markets.

Concrete

Fornnax Wins AIRIA’s Special Export Award for Rubber Machinery in 2025-26

Published

2 weeks ago

October 19, 2026

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Fornnax Technology Pvt. Ltd. has been honoured with the Special Export Award – Rubber Machinery for 2025–26 by the All-India Rubber Industries Association (AIRIA), in recognition of its highest exports of tyre recycling plants to the European region.

With more than a decade of experience in India’s tyre recycling industry, Fornnax has contributed to the development of advanced recycling technologies and infrastructure. The company currently holds a 90% market share in India’s domestic tyre recycling sector, while exports account for 30% of its business, spanning markets such as Europe, Australia and the GCC.

The award marks another milestone for Fornnax, whose tyre recycling lines and advanced shredding technologies are supporting the growth of the circular economy in India and international markets.

Commenting on the recognition, Mr. Jignesh Kundaria, Founder and Director of Fornnax, said:

“This honour from AIRIA is a reflection of an incredible journey we have undertaken over the years. When we started Fornnax, there was no established recycling industry in India to follow. We chose to build for the future instead. Today, when you see India’s tyre recycling sector, it has already transformed into a dynamic, high-growth industry and we are extremely proud to have played our part in building it.”

Unlike standalone equipment suppliers, Fornnax focuses on developing complete, high-capacity recycling infrastructure. Its integrated systems combine multiple stages of shredding and size reduction to enable efficient, continuous operations. This system-level engineering approach helps recycling operators improve throughput, equipment reliability and operational consistency.

The recognition reinforces Fornnax’s commitment to developing engineering technologies that contribute to a more efficient and circular recycling ecosystem.

Looking ahead, the company aims to expand its international presence while continuing to develop advanced shredding and recycling solutions to address the growing volumes and evolving requirements of the global recycling industry.

For more information, visit: www.fornnax.com