Economy & Market

Cement, IIP and “Make in India”

Published

9 years ago

April 30, 2017

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The program called "Make in India" was intended to give a much-needed push to the manufacturing sector in India. The obvious objective was to grow the share of manufacturing in our GDP from a nondescript 15 per cent to a shining 25 per cent, which in turn would mean generation of new jobs by the millions – since manufacturing has been assumed to be labour-intensive, according to traditional wisdom – and no one can fault the relevance of the idea to our economy.

However, judging by the way the Index of Industrial Production (IIP) has moved in the last two years, this crucial program is yet to find its feet, leave alone delivering any noteworthy results on the ground. This could be because this good idea has neither been backed up by anywhere near an equally good strategy, nor by a good measure of execution. The challenging task is to translate such visionary concepts into well-coordinated policies and actions, which has not fructified yet.

To be credible, we must work with data, and there is no reason why we should not analyse this issue with reported numbers in public domain. During the so-called period of reforms in India from 1991 to 2014, the manufacturing sector did grow at a CAGR of about 7.5 per cent, if we took the average of IIP numbers and the Annual Survey of Industries. Even if we were to take the shorter and more recent period of 2005 to 2014, IIP throws up an average annual historical growth rate of 5.7 per cent. Contrast this with a dismal IIP growth of 3.5 per cent in FY15, 4.6 per cent in FY16 and a shocking 0.4 per cent in 11 months of FY17.

If one were to go by any kind of quantification and measurement of outcomes by data, the conclusion about success or otherwise, of "Make in India" will be very obvious. Add to this the facts that credit growth has stagnated, industrial capacity utilisations have fallen and merchandise exports have declined, and you have a clearer picture of what is happening with "Make in India".

How does cement figure in all this? Eight "Core" industries comprise nearly 38 per cent of the weightage of items included in the IIP. These are Coal, Crude Oil, Natural Gas, Petroleum Refinery Products, Fertilizers, Steel, Cement and Electricity. No wonder then, that some people say consumption of Steel, Cement and Electricity reflects the progress of a nation, although in today’s age of Internet and start-ups and artificial intelligence, this may sound too sedate and conventional.

While we do seem to know, that the steel cement and power sectors have not exactly covered themselves in glory during these "Make in India" years, let us take a look at the cement industry’s numbers.

There were days (and years) in the bygone past, when we used to have a strong correlation between GDP growth numbers and growth of cement consumption. In the post-decontrol era, from 1992 to 2012, cement demand has grown at a CAGR of 7.4 per cent as against a GDP growth CAGR of 7 per cent for the same period, showing a strong linkage between progress of the economy and consumption of cement, which is logical. Then came a new method of calculating GDP growth (which catapulted India to the exotic position of the fastest-growing country on Earth) and also came the launch of "Make in India" to give a boost to manufacturing, and this realistic and elegant relationship between growth of the economy and growth of cement got severed.

So, you now have an unusual situation during FY14 through FY17, when the GDP growth numbers per year were a very robust and healthy 7.3 per cent to 7.9 per cent, but cement consumption growth disappointed, with much lower growth figures of 4 per cent, 4.5 per cent and 1 per cent respectively.

Data can sometimes reveal the truth and sometimes hide it, depending on how we present it. But, to the best of my knowledge and belief, cement consumption growth figures, being based on absolute numbers, wouldn’t lie.

Sumit Banerjee Chairman, Editorial Advisory Board

Economy & Market

Fornnax launches world’s biggest secondary/fine shredder for AFR pre-processing

Published

1 week ago

November 7, 2025

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Fornnax has introduced its latest breakthrough – the R-MAX3300, for handling low-density waste streams, offering a powerful solution for cement AFR plants.

Fornnax Technology has launched its latest breakthrough – the R-MAX3300, the biggest secondary shredder in its class. The unveiling took place on 14th October, 2025 at IFAT India 2025 in Mumbai, one of the most prestigious events for environmental technologies, waste management, and sustainable resource innovation.

The launch ceremony was graced by esteemed industry leaders and dignitaries. The guest list included Md Fahim Sopariwala, CEO, GEPIL India; Sridhar Jagannathan, Vice President, Zigma Global; Priyesh Bhatti, CEO, GEPIL India; Shailendra Singh, Deputy General Manager, Prism Johnson (Cement Division); Ulhas Parlikar, Global Consultant, Waste Management, Circular Economy, Policy Advocacy and Co-processing; Saurabh Palsania, Joint President (Strategic Sourcing), Shree Cement; Rajeev Patel, DGM (Process), Mangalam Cement; and Anumodan Kumar Dubey, Mangalam Cement.

This state-of-the-art equipment represents a significant advancement for India’s recycling and waste processing landscape, offering a powerful solution for cement AFR plants and waste-to-energy facilities.

Building on the proven performance and legacy of the R Series secondary shredder, which has long been trusted for high-density materials like tyres and cables, the newly introduced R-MAX3300 is specifically engineered for handling low-density waste streams. These include Municipal Solid Waste (MSW), Commercial and Industrial (C&I) waste, Bulky waste, Legacy waste, Wood waste, and Construction & Demolition (C&D) waste.

By incorporating advanced shredding technology, the R-MAX3300 enables seamless and highly efficient production of Refuse Derived Fuel (RDF) and Solid Recovered Fuel (SRF) within the ideal particle size range of 30 to 50 mm. Its design prioritises versatility, durability and superior performance, directly supporting industrial operations that demand consistency and scale.

“The R-MAX3300 represents a monumental leap forward in our vision to become a global leader by 2030 in recycling technology through innovation,” said Jignesh Kundaria, Director and CEO, Fornnax Technology. “With the rising challenges of waste management in India and globally, this machine is not just a product; it’s a powerful tool for change. We engineered it to handle the most difficult waste streams with unparalleled efficiency, turning what was once considered unusable waste into a valuable resource. It directly addresses the urgent demand for effective, large-scale shredding technology that can support cement kilns and waste-to-energy facilities in achieving the desired output,” he added.

The launch of the R-MAX3300 arrives at a pivotal moment. India currently generates over 160,000 tons of municipal solid waste daily, while government-led initiatives such as Swachh Bharat Mission and Smart Cities are accelerating the demand for RDF and waste-to-energy solutions. Simultaneously, the global industrial shredder market is expected to grow at a 5–6 per cent CAGR, driven by stricter recycling regulations and increasing waste generation.

Kundaria further emphasised, “Our commitment goes beyond just selling machinery; it’s about empowering our customers to achieve lasting efficiency, sustainability, and growth. We see ourselves as a trusted partner who stands beside them at every step – from technology deployment to ongoing support, ensuring they can rely on Fornnax not only for performance but also for consistency, dependability, and long-term value.”

The R-MAX3300 is equipped to handle high-throughput processing of pre-shredded or coarse materials, making it ideal for SRF/RDF production, composting pre-treatment, and volume reduction for logistics optimisation. It is expected to play a crucial role in Integrated Waste Management Projects (IWMP) and bio-mining operations both within India and globally.

With this grand launch, Fornnax continues to set global benchmark and move decisively towards the vision of becoming global leader in recycling technology by 2030 that is state-of-the-art, innovative, economical, efficient reliable and eco-friendly.

Concrete

Fornnax wins Top Domestic Sales Award 2024-25 by AIRIA

Published

1 week ago

November 7, 2025

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Fornnax bags the Excellence in Top Domestic Sales Award 2024–25 by the All India Rubber Industries Association (AIRIA).

The company has been honoured with the Excellence in Top Domestic Sales Award 2024–25 by the All India Rubber Industries Association (AIRIA) under the Rubber Machineries and Equipment category. The award recognises Fornnax’s exceptional market leadership, strong sales performance and continued commitment to sustainable innovation.

With over a decade of specialised expertise, Fornnax has emerged as a transformative force in India’s tyre recycling sector, commanding nearly 90 per cent of the domestic market while steadily expanding across Europe, Australia, the GCC, and other global regions.

Fornnax’s advanced recycling systems—comprising the SR-Series Primary Shredders, R-Series Secondary Shredders, and TR-Series Granulators—are engineered for durability, efficiency, and high-output performance. These technologies are widely deployed in end-of-life tyre (ELT) processing and other waste management applications, reinforcing Fornnax’s reputation as a trusted industry partner.

Expressing his gratitude, Jignesh Kundaria, Director & CEO, Fornnax, said, “We are incredibly proud to receive this recognition from AIRIA. This award validates the trust that our customers and partners have placed in us over the years. I would like to extend my heartfelt gratitude to all our clients and partners who have been an integral part of this journey and our continued success. At Fornnax, our goal has always been to empower the recycling industry with innovative, high-performance solutions that make sustainability both achievable and profitable.”

The award also underscores Fornnax’s pivotal role in promoting circular economy practices by enabling the conversion of end-of-life tyres and rubber waste into reusable raw materials. Through ongoing R&D, new product innovation, and a solutions-driven approach, the company continues to help industries worldwide adopt eco-conscious, scalable recycling models.

As India’s recycling landscape evolves to meet global sustainability benchmarks, Fornnax stands at the forefront with internationally certified technology, a proven track record, and a clear vision for environmentally responsible growth.

Concrete

Pacific Avenue Completes Acquisition of FLSmidth Cement; Rebrands as Fuller Technologies

Published

2 weeks ago

November 4, 2025

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The acquisition of FLSmidth Cement by Pacific Avenue Capital Partners marks a new phase of focused growth and innovation.
Rebranded as Fuller® Technologies, the company will continue delivering world-class solutions with renewed investment and direction.

Pacific Avenue Capital Partners (“Pacific Avenue”), a global private equity firm, has completed its acquisition of FLSmidth Cement following the fulfillment of all customary closing conditions and regulatory approvals. The transaction includes all of FLSmidth Cement’s intellectual property, technology, employees, manufacturing facilities, and global sales and service organizations.

As Fuller Technologies, the company will continue to seamlessly support its customers while advancing its robust portfolio of capital equipment, digital solutions, and service offerings. With a sharpened focus on Pyro and Grinding technologies, alongside core brands such as PFISTER®, Ventomatic®, Pneumatic Conveying, and Automation, Fuller Technologies aims to deliver enhanced value and reliability across the cement and industrial sectors.

Under Pacific Avenue’s ownership, Fuller Technologies will benefit from increased investment in people, products, and innovation. The dedicated management team will work to optimize operations and strengthen customer relationships, ensuring continuity and excellence during this exciting transition.

“We are proud to be the new owner of FLSmidth Cement, now Fuller Technologies, a global leader with a rich history of providing mission-critical equipment and aftermarket solutions in the cement and industrial sectors. We will continue to build upon the Company’s legacy of being at the forefront of technological innovation, service delivery, and product quality as we support our customers’ operations,” says Chris Sznewajs, Managing Partner and Founder of Pacific Avenue Capital Partners.

Pacific Avenue’s deep experience in executing complex industrial carve-outs and guiding standalone businesses into their next growth phase will be instrumental in shaping Fuller Technologies’ future. With a proven track record in building products and capital equipment industries, Pacific Avenue is poised to help Fuller Technologies optimize performance, accelerate growth, and create long-term value for its customers and stakeholders worldwide.