Technology

Bringing the entire supply chain into the system will be a challenge

Published

9 years ago

June 30, 2017

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The fundamental aspect of GST is the seamless flow of input tax credit along the entire value addition chain, believes Amman Devralia, Executive Director (Whole Time Director) and Head of Finance, IT & Administration, Humboldt Wedag India Private Ltd.

Is the GST rate of 28 per cent for cement appropriate, given its status of being an important input for infrastructure and housing industry?
Given the Government’s focus on developing infrastructure and affordable housing, a lower GST rate for cement would have certainly benefited the infrastructure and housing industry.

What are the biggest worries on the readiness of the supply chain in the cement industry, which is multi-layered, and the evolving rules?
Bringing the entire supply chain into the system will be a challenge. The ability to claim input credit under the GST regime will depend on the quality, accuracy and completeness of the data filed by the vendors. This makes it imperative to familiarise the vendors with the GST regime, and to ensure that they have the right systems and processes in place.

There is anxiety on the cut-over (from old to new regime), what do you think would be the process in the interim?
Any exercise, when it commences, will face issues in transition. Uncertainty with respect to treatment of taxes paid-such as excise duty and sales tax, how and to what extent businesses will receive input tax credit on unsold inventories at the time of transition to the GST regime, etc.-might lead to deferment of purchases, de-stocking and thereby disrupt the supply chain in the interim.

What are the topmost concerns for the industry – unless suppliers, distributors, retailers, logistics partners, etc, are prepared, will the credit mechanism work?
The top concerns for the industry are:
a)Limited timeframe to gear-up the existing IT and accounting systems;
b)un-interrupted connectivity to the GST network; and
c)increased time and costs of compliance on a monthly basis.
The fundamental aspect of GST is the seamless flow of input tax credit along the entire value addition chain, wherein credit on taxes paid on inputs at each stage will be available in the subsequent stage of value addition, thereby making GST essentially a tax only on value addition at each stage. This credit mechanism under the GST regime will depend on timely compliance and matching of data filed by the parties under the supply chain. Little underscores the practical necessity of this process more than the fact that the GST regulation provides limited timeframe for any rectification of input/output tax credits.

The fact that GST rules are still evolving and are complicating the process, what are your preparations to decipher them?
While, GST as a subject itself will take time for things to settle, we started with the basics like:
1)Communication with vendors and customers to register/migrate to the GST regime and share the GTN number;
2)review and updation of vendor and customer master;
3)engagement with tax consultants to conduct an impact analysis and understand the areas of concerns; and
4)most important, involvement of wider organi-sation to ensure that GST implementation is not viewed just as an F&A/tax initiative, but a business one.

While large-size companies would have a strong IT network for the transition, this may not be true for smaller companies and entities along the entire supply chain. What are the challenges you see for them to streamline?
Companies need to invest to gear-up their existing IT system for the GST regime. Also, companies in rural areas with limited network connectivity will require support of external IT companies/service providers for setting-up offline compliance models, entailing increased compliance costs.

Will GST entail less paperwork with ease of registering for new dealers and retailers?
Yes, online registration process will definitely reduce the paperwork for which uninterrupted connectivity to the GST network will be very important.

It is indicated that for a robust cut-over, will you opt for auditor verification of closing stocks of raw material, finished goods, spares, etc?
No, we will get the physical verification done by the internal team. However, large companies can opt for auditor’s verification to estimate the unutilised tax credit on closing stocks that can be carried forward to the GST regime.

The cost of compliance (IT, accounting) will go up, particularly at the customer level. Is the industry ready to compensate the channel for this?
While larger set-ups will have the required infrastructure, it will be quite challenging and expensive for smaller set-ups. Hope that the benefits of GST will outweigh the increased cost of compliance.

Supply chain issues could jeopardise operations and have financial implications. What worries are particularly higher in case of suppliers and service providers?
GST shifts the tax revenue base from where goods and services are produced (origin-based tax) to where they are consumed (destination-based tax), businesses will therefore need to closely re-assess existing operational structures. Suppliers with multi-state operations will possibly go for consolidation of manufacturing related registrations. Whereas, service providers currently having centralised registration will require State-wise registrations.

Will cost of doing business rise for the cement industry in general? If yes, what components will add to the cost. If no, what changes will bring in benefit both to the industry and the consumer?
GST is likely to have a positive impact on the cement industry. Lower GST rate of 5 per cent on key inputs/raw materials (like limestone, coal, lignite) should reduce the cost of production of cement. Further, cement manufacturers will also be able to save on their logistics costs due to rationalisation of warehouses and lower transportation costs due to decline in transit time.

However, following elements will continue to be included in the cost of production:
a)Royalty paid to State Government for quarrying limestone;
b)clean energy cess levied on coal, not subsumed under GST;
c)tax on electricity, not subsumed under GST; and
d)tax on fuels (diesel and petrol) used for running DG sets or RMC trucks etc., not subsumed under GST.

Will the need for working capital rise as all taxes must be paid right at the time of dispatch?
Yes, levy of GST on stock transfers, receipt of advance payments from customers, GST on inputs consumed for making zero rated supplies like exports, abolition of concessional tax form (such as Form C, F, H etc.) will raise the working capital/cash flow requirements.

De-stocking, which has already started, will it result in financial losses ahead of the GST rollout, although temporary?
Yes, de-stocking will entail selling existing stocks at discounts, thereby impacting the top line as well as the bottom line.

Do you perceive that cost of production will rise/fall in the GST regime. What will make them go up/down?
The cost of production depends on the price of key inputs/raw materials. Lower GST rate of 5 per cent on key inputs/raw materials like limestone, coal, lignite should reduce the cost of production of cement. However, the exact impact of these changes on the cost of production will depend on the fuel mix of a cement manufacturer.

Given that the GST rates for various inputs are fixed lower than cement and electricity outside its purview, will it increase or decrease the cost of production?
Keeping electricity outside the ambit of GST will break the credit chain and will increase the cost of production.

Freight is a major cost element in cement business, will the GST on transportation increase or decrease the cost or price to end-consumers?
The effective service tax rate on transportation of goods by road through the Goods Transport Agency after factoring in abatement was 4.5 per cent where-in input credit was available to the cement manufacturer for inward supplies up to the factory gate. Under the GST regime transportation of goods by road through the Goods Transport Agency will be subject to GST rate of 5 per cent with no input tax credit. Thereby, increasing the costs of transportation of goods by road through the Goods Transport Agency. However, the overall transportation costs is expected to come down due to rationalisation of warehouses in the long run, efficient movement of fleet and ease of cross border movement of goods (reduction in transit time).

Do you perceive that cement consumer prices will move up/down under GST. What will make them go up/down?
Cement manufacturers were expecting GST rate of around 18 per cent on cement. Therefore, GST rate of 28 per cent on cement might result in increase in price for the end-consumers, at least temporarily, until the credit chain starts working at all levels.

Will the GST regime attract investment into the sector?
The Government’s focus on infrastructural growth will certainly attract investment into the sector. Positive impact of GST will also help the sector, which is presently facing challenges with respect to lower capacity utilisation and low margins. Bringing the real estate under the ambit of GST will also boost the investment into the sector.

There is no clarity on GST’s anti-profiteering rules. It is not yet comprehendible whether businesses will be able to hike prices or not in case costs rise. What is your opinion on this uncertainty?
In principle, the anti-profiteering clause is clear – businesses must pass on the benefit of higher input tax credit or reduction in tax rate to the end-consumers by way of commensurate reduction in price of product. While the objective may sound simple, implementing the anti-profiteering clause is fraught with grave risks. Further, it is certainly questionable whether a free market economy should even have such price control mechanisms. After all, movement in price of product could be due to a host of reasons such as the demand-supply scenario, competition and in certain cases, prices of a commodity in international markets, the level of the currency and so on. In the absence of detailed rules and clear understanding of market dynamics, this clause remains an important open issue and will limit the ability of businesses to change prices in response to changing tax rates.

Will GST be more of self assessment service, less discriminatory and less corruption?
Yes, online filing of tax returns, assessments, refunds, etc. under the GST regime will reduce the interface between the assessees and tax officials.

In case cement prices go up marginally, will it impact the demand and therefore the construction industry?
Given the Government’s focus on developing infrastructure it is unlikely that marginal increase in cement prices will have much impact on the demand side. The increase most likely will be passed on to the end-consumers, which in turn, will increase the costs of infrastructure and housing projects.

Any other information you wish to share.
With the onset of GST, India will be adopting a unique invoice to invoice matching concept wherein the details of inward supply furnished by the recipient shall be matched with the corresponding details of outward supply furnished by the supplier. In case, it is successful, the world will follow.

-Nitin Madkaikar

Economy & Market

Precision in Motion

Published

2 weeks ago

June 17, 2026

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A deep dive into Power Build’s core gear series products – M, C, F, K

At the heart of every high-performance industrial system lies the need for robust, reliable and efficient power transmission. Power Build answers this need with its flagship geared motor series: M, C, F and K. Each series is meticulously engineered to serve specific operational demands while maintaining the universal promise of durability, efficiency
and performance.

Series M – Helical Inline Geared Motors
Compact and powerful, the Series M delivers exceptional drive solutions for a broad range of applications. With power handling up to 160kW and torque capacity reaching 20,000 Nm, it is the trusted solution for industries requiring quiet operation, high efficiency, and space-saving design. Series M is available with multiple mounting and motor options, making it a versatile choice for manufacturers and OEMs globally.

Series C – Right Angled Heli-Worm Geared Motors
Combining the benefits of helical and worm gearing, the Series C is designed for right-angled power transmission. With gear ratios of up to 16,000:1 and torque capacities of up to 10,000 Nm, this series is optimal for applications demanding precision in compact spaces. Industries looking for a smooth, low-noise operation with maximum torque efficiency rely on Series C for dependable performance.

Series F – Parallel Shaft Mounted Geared Motors
Built for endurance in the most demanding environments, Series F is widely adopted in steel plants, hoists, cranes and heavy-duty conveyors. Offering torque up to 10,000 Nm and high gear ratios up to 20,000:1, this product features an integral torque arm and diverse output configurations to meet industry-specific challenges head-on.

Series K – Right Angle Helical Bevel Geared Motors
For industries seeking high efficiency and torque-heavy performance, Series K is the answer. This right-angled geared motor series delivers torque up to 50,000 Nm, making it a preferred choice in core infrastructure sectors such as cement, power, mining, and material handling. Its flexibility in mounting and broad motor options offer engineers freedom in design and reliability in execution.
Together, these four series reflect Power Build’s commitment to excellence in mechanical power transmission. From compact inline designs to robust right-angle drives, each geared motor is a result of decades of engineering innovation, customer-focused design and field-tested reliability. Whether the requirement is speed control, torque multiplication, or space efficiency, Radicon’s Series M, C, F and K stand as trusted powerhouses for global industries.

https://www.powerbuild.in
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Economy & Market

TSR Will Define Which Cement Companies Win India’s Net-Zero Race

Published

2 months ago

April 27, 2026

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Jignesh Kundaria, Director and CEO, Fornnax Technology

India is simultaneously grappling with two crises: a mounting waste emergency and an urgent need to decarbonise its most carbon-intensive industries. The cement sector, the second-largest in the world and the backbone of the nation’s infrastructure ambitions, sits at the centre of both. It consumes enormous quantities of fossil fuel, and it has the technical capacity to consume something else entirely: the waste our cities cannot get rid of.

According to CPCB and NITI Aayog projections, India generates approximately 62.4 million tonnes of municipal solid waste annually, with that figure expected to reach 165 million tonnes by 2030. Much of this waste is energy-rich and non-recyclable. At the same time, cement kilns operate at material temperatures of approximately 1,450 degrees Celsius, with gas temperatures reaching 2,000 degrees. This high-temperature environment is ideal for co-processing, ensuring the complete thermal destruction of organic compounds without generating toxic residues. The physics are in our favour. The infrastructure is not.

Pre-processing is not the support act for co-processing. It is the main event. Get the particle size wrong, get the moisture wrong, get the calorific value wrong and your kiln thermal stability will suffer the consequences.

The Regulatory Push Is Real

The Solid Waste Management (SWM) Rules 2026 mandate that cement plants progressively replace solid fossil fuels with Refuse-Derived Fuel (RDF), starting at a 5 per cent baseline and scaling to 15 per cent within six years. NITI Aayog’s 2026 Roadmap for Cement Sector Decarbonisation targets 20 to 25 per cent Thermal Substitution Rate (TSR) by 2030. Beyond compliance, every tonne of coal replaced by RDF generates measurable carbon reductions which is monetisable under India’s emerging Carbon Credit Trading Scheme (CCTS). TSR is no longer a sustainability metric. It is a financial lever.

Yet our own field assessments across multiple Indian cement plants reveal a sobering reality: the primary barrier to scaling AFR adoption is not waste availability. It is the fragmented and under-engineered pre-processing ecosystem that sits between the waste and the kiln.

Why Indian Waste Is a Different Engineering Problem

Indian municipal solid waste is not the material that imported shredding equipment was designed for. Our waste streams frequently exceed 40 per cent to 50 per cent moisture content, particularly during monsoon cycles, saturated with abrasive inerts including sand, glass, and stone. Plants relying on imported OEM equipment face months of downtime awaiting proprietary spare parts. Machines built for segregated, low-moisture waste fail quickly and disrupt the entire pre-processing operation in Indian conditions.

The two most common failures we observe are what I call the biting teeth problem and the chewing teeth problem. Plants relying solely on a primary shredder reduce bulk waste to large fractions, but the output remains too coarse for stable kiln combustion. Others attempt to use a secondary shredder as a standalone unit without a primary stage to pre-size the feed, leading to catastrophic mechanical failure. When both stages are present but mismatched in throughput capacity, the system becomes a bottleneck. Achieving the 40 to 70 tonnes per hour required for meaningful coal displacement demands a precisely coordinated two-stage process.

Engineering a Made-in-India Answer

At Fornnax, our response to these challenges is grounded in one principle: Indian waste demands Indian engineering. Our systems are built around feedstock homogeneity, the holy grail of kiln stability. Consistent particle size and predictable calorific value are the foundation of stable kiln combustion. Without them, no TSR target is achievable at scale.

Our SR-MAX2500 Dual Shaft Primary Shredder (Hydraulic Drive) processes raw, baled, or loosely mixed MSW, C&I waste, bulky waste, and plastics, reducing them to approximately 150 mm fractions at throughputs of up to 40 tonnes per hour. The R-MAX 3300 Single Shaft Secondary Shredder (Hydraulic Drive), introduced in 2025, takes that primary output and produces RDF fractions in the 30 to 80 mm range at up to 30 tonnes per hour, specifically optimised for consistent kiln feeding. We have also introduced electric drive configurations under the SR-100 HD series, with capacities between 5 and 40 tonnes per hour, already operational at a leading Indian waste-processing facility.

Looking ahead, Fornnax is expanding its portfolio with the upcoming SR-MAX3600 Hydraulic Drive primary shredder at up to 70 tonnes per hour and the R-MAX2100 Hydraulic drive secondary shredder at up to 20 tonnes per hour, designed specifically for the large-scale throughput that higher TSR ambitions require.

The Investment Case Is Now

The 2070 Net-Zero target is not a distant goal for India’s cement sector. It starts today, with decisions being made on the plant floor.

The SWM Rules 2026 are already in effect, requiring cement plants to replace coal with RDF. Carbon credit markets are opening up, and coal prices are not going to get cheaper. Every tonne of coal a cement plant replaces with waste-derived fuel saves money on one side and generates carbon credit revenue on the other. Pre-processing infrastructure is no longer just a compliance requirement. It is a business investment with a measurable return.

The good news is that nothing is missing. The technology works. The waste is available in every Indian city. The government has provided the policy direction. The only thing standing between where the industry is today and where it needs to be is the commitment to build the right infrastructure.

The cement companies that move now will not just meet the regulations. They will be ahead of every competitor that waits.

About The Author

Jignesh Kundaria is the Director and CEO of Fornnax Technology. Over an experience spanning more than two decades in the recycling industry, he has established himself as one of India’s foremost voices on waste-to-fuel technology and alternative fuel infrastructure.

Concrete

Reimagining Logistics: Spatial AI and Digital Twins

Published

3 months ago

April 13, 2026

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Digital twins and spatial AI are transforming cement logistics by enabling real-time visibility, predictive decision-making, and smarter multi-modal operations across the supply chain. Dijam Panigrahi highlights how immersive AR/VR training is bridging workforce skill gaps, helping companies build faster, more efficient, and future-ready logistics systems.

As India accelerates infrastructure investment under flagship programs such as PM GatiShakti and the National Infrastructure Pipeline, the pressure on cement manufacturers to deliver reliably, efficiently, and cost-effectively has never been greater. Yet for all the modernisation that has taken place on the production side, the end-to-end logistics chain, from clinker dispatch to the last-mile delivery of bagged cement to construction sites, remains a domain riddled with inefficiencies, opacity and manual decision-making.
The good news is that a new generation of spatial computing technologies is now mature enough to transform this reality. Digital twins, spatial artificial intelligence (AI) and immersive augmented and virtual reality (AR/VR) training platforms are converging to offer cement producers something they have long sought: real-time visibility, autonomous decision-making at the operational edge, and a scalable solution to the persistent skills gap that hampers workforce performance.

Advancing logistics with digital twins
The cement supply chain is uniquely complex. A single integrated plant may manage limestone quarrying, kiln operations, grinding, packing and despatch simultaneously, with finished product flowing through rail, road, and waterway networks to reach hundreds of regional depots and distribution points. Coordinating this network using spreadsheets, siloed ERP data, and phone calls is not merely inefficient; it is a structural liability in a competitive market where delivery reliability is a key differentiator.
Digital twin technology offers a way out. A cement logistics digital twin is a continuously updated, three-dimensional virtual replica of the entire supply chain, from the truck loading bays at the plant to the inventory levels at district depots. By ingesting data from IoT sensors on conveyor belts and packing machines, GPS trackers on road and rail fleets, weighbridge records, and weather feeds, the digital twin provides planners with a single, authoritative picture of where every ton of cement is, in real time.
The value, however, goes well beyond visibility. Because the digital twin mirrors the physical system in dynamic detail, it can run scenario simulations before decisions are executed. If a primary rail corridor is disrupted, logistics managers can model alternative routing options, shifting volumes to road or coastal shipping, and assess the cost and time implications within minutes rather than days. If a packing line at the plant is running below capacity, the twin can automatically recalculate dispatch schedules downstream and alert depot managers to adjust receiving resources accordingly.
For cement companies operating multi-plant networks across geographies as varied as Rajasthan and the North-East, this kind of end-to-end situational awareness is transformative. It collapses information latency from hours to seconds, enables proactive rather than reactive logistics management, and creates the data foundation upon which AI-driven decision-making can be built. Companies that have deployed logistics digital twins in comparable heavy-industry contexts have reported reductions in transit time variability of up to 20 per cent and meaningful decreases in demurrage and detention costs, savings that flow directly to the bottom line.

Smart logistics operations
A digital twin is only as powerful as the intelligence layer that sits on top of it. This is where Spatial AI becomes the critical differentiator for cement logistics.
Traditional logistics management systems are reactive. They record what has happened and flag exceptions after the fact. Spatial AI systems, by contrast, are proactive. They continuously analyse the state of the logistics network as represented in the digital twin, identify emerging bottlenecks before they crystallise into delays, and recommend corrective actions.
At the plant gate, AI-powered visual inspection systems using spatial depth-sensing cameras can assess truck conditions, verify load integrity and confirm seal tamper status in seconds, replacing the manual checks that currently slow throughput. At the depot level, Spatial AI can monitor stock drawdown rates in real time, cross-reference them against pending customer orders and inbound shipment ETAs, and automatically trigger replenishment orders when safety thresholds are approached. In transit, AI systems processing GPS and telematics data can detect anomalous vehicle behaviour, including extended stops, route deviations, speed irregularities and alert fleet managers instantly.
Perhaps most significantly for Indian cement logistics, Spatial AI can optimise the complex multi-modal routing decisions that are central to competitive cost management. Given the variability in road quality, seasonal accessibility, rail rake availability, and regional demand patterns across India’s vast geography, the combinatorial complexity of routing optimisation is beyond human planners working with conventional tools. AI systems can process this complexity continuously and adapt routing recommendations as conditions change, reducing empty running, improving vehicle utilisation and cutting fuel costs.
The agentic dimension of modern AI is particularly relevant here. Agentic AI systems do not merely analyse and recommend; they act. In a cement logistics context, this means an AI system that can, within pre-authorised boundaries, directly communicate revised dispatch instructions to plant teams, update booking confirmations with freight forwarders and reallocate available rail rakes across plant locations, all without waiting for a human to process a recommendation and make a call. For logistics executives, this represents a genuine shift from managing a workforce to setting the rules of engagement and reviewing outcomes. The operational tempo achievable with agentic AI simply cannot be matched by human-in-the-loop systems working at the pace of emails and phone calls.

Bridging the skills gap
Technology investments in digital twins and spatial AI will deliver diminishing returns if the human workforce cannot operate effectively within the new systems they create. This is a challenge that India’s cement industry cannot afford to underestimate. The sector relies on a large, geographically dispersed workforce, including truck drivers, depot managers, despatch supervisors, fleet maintenance technicians, many of whom have been trained on paper-based processes and manual workflows. Retraining this workforce for a digitised, AI-augmented environment is a substantial undertaking, and conventional classroom or on-the-job training methods are poorly suited to the scale and pace required.
Immersive AR and VR training platforms offer a fundamentally different approach. By creating photorealistic, interactive simulations of logistics environments, such as a plant dispatch bay, a depot yard, the interior of a cement truck cab, allow workers to practice complex procedures and decision-making scenarios in a safe, consequence-free virtual environment. A depot manager can work through a simulated rail rake delay scenario, making decisions about customer allocation and communication
without the pressure of real orders being affected. A truck driver can practice the correct procedure for securing a load of bagged cement without the risk of a road incident.
The learning science case for immersive training is compelling. Studies consistently show that experiential, simulation-based learning produces faster skill acquisition and higher retention rates than didactic instruction, with some research indicating retention rates three to four times higher for VR-based training compared to classroom methods. For complex operational procedures where muscle memory and situational awareness matter as much as conceptual knowledge, the advantage of immersive simulation is even more pronounced.
Today’s leading cloud-based spatial computing platforms enable high-fidelity AR and VR training experiences to be delivered on standard mobile devices, removing the hardware barrier that has historically made immersive training impractical for large, distributed workforces. This is particularly relevant for cement companies with depots and logistics operations in tier-two and tier-three locations, where access to specialised training hardware cannot be assumed.
The integration of AR into live operations also creates ongoing learning opportunities beyond formal training programs. As an example, maintenance technicians equipped with AR overlays can receive step-by-step guidance for equipment procedures directly in their field of view, reducing error rates and service times for critical plant and fleet assets.

New strategy, new horizons
India’s cement industry is entering a period of intensifying competition, rising logistics costs, and demanding customers with shrinking tolerance for delivery variability. The companies that will lead over the next decade will be those that treat logistics not as a cost centre to be minimised, but as a strategic capability to be built.
Digital twins, spatial AI and immersive AR/VR training are not distant future technologies, they are deployable today on infrastructure that Indian cement companies already operate. The question is not whether to adopt them, but how quickly to do so and where to begin.

About the author:
Dijam Panigrahi is Co-Founder and COO of GridRaster Inc., a provider of cloud-based spatial computing platforms that power high-quality digital twin and immersive AR/VR experiences on mobile devices for enterprises. GridRaster’s technology is deployed across manufacturing, logistics and infrastructure sectors globally.