Economy & Market

GST regime is full of challenges and needs resilience

Published

8 years ago

September 30, 2017

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Endorsed as "Good & Simple Tax", Amman Devralia, Executive Director, KHD Humboldt Wedag, has a high expectation that it will buoy the Indian economy and bring the informal sector into the formal sector. In an interview with Nitin Madkaikar, Devralia reiterates its success will depend on the readiness of the entire supply chain (suppliers, distributors, retailers, logistics partners etc.) to adopt the regime. Is the GST regime conducive as it described before the launch on July 1, 2017?
GST has been endorsed as "Good and Simple Tax". ‘Good’ because it minimises the cascading effect of taxes (i.e., levying of tax on things that have already been taxed), thereby reducing the cost of doing business, and ‘Simple’ as it replaces multitude of indirect taxes, thereby increasing ease-of-doing business.
There are huge expectations that the biggest indirect tax reform will boost the Indian economy in the long run and huge shift will be seen from unorganised to organised sector. However, a period of three months is too short to come to a conclusion.
The fundamental aspect of GST is the seamless flow of input tax credit along the entire value chain, wherein credit of taxes paid on inputs at each stage is available in the subsequent stage of value addition, thereby making GST essentially a tax only on value addition at each stage. The ability to claim input tax credit under the GST regime depends on timely compliance and matching of data filed by the parties along the entire supply chain. Any lapse on part of the supplier may lead to denial of input tax credit in the hands of the recipient, thereby casting an additional burden on the recipient to ensure timely compliance by the supplier. As a safeguard, two-stage payment mechanism is being followed by the recipient wherein the basic portion is paid upfront to the supplier and tax portion only after reconciliation of data filed in the respective GST returns.
Some of the concerns includes:
a) readiness of the entire supply chain;
b) un-interrupted connectivity to GST Network;
c) increased level of compliance and reporting on a monthly basis. Reports say that three returns have to be filed each month. Is this posing any operational problem/s in the supply chain?
Large entities were filing at-least three returns each month under different indirect tax laws (i.e. excise return, first stage dealer return, VAT and CST return) under the erstwhile tax regime as well. The real pain area under the GST regime as compared to the erstwhile tax regime is the level of compliance and reporting required to be done on a monthly basis. Entities are required to enter invoice level details in the monthly GST returns, which is a cumbersome process. Smaller entities without the required infrastructure are finding it difficult to manually enter invoice level details and large entities are facing infrastructural bottlenecks in uploading huge volume of data. In some ways, the government has outsourced the tax compliance to businesses in order to ensure compliance along the entire supply chain. Are you satisfied with the procedures that came into force after July 1?
The design of a single IT platform – GST Network – as a common interface between the tax payers and tax authorities for the core functions of administration (like, registration, filing and processing of returns, payments and refunds), is definitely a step towards paperless regime. However, provisions with respect to self-invoicing and payment vouchers for inward supplies from unregistered vendors, issuance of advance receipt vouchers on receipt of advances from customers, etc., entails additional paper work. Further, the ongoing glitches in the GST Network has been disappointing and raises doubts about the operational capacity of the GST Network, which is the foundation for paperless regime. The three months being seasonally weak for the industry, what was the impact on business compared with the past weak seasons?
As per industry reports, cement production witnessed a decline of 3.9 per cent in Q1FY17. Cement production stood at 72.67 million tonne (MT) in Q1FY17 as compared to 75.7 MT in Q1FY16. The decline was due to low inventory addition in the real estate and housing sector (accounting for about two-third of the total cement consumption in India), as the regulations and compliances under newly implemented Real Estate (Regulation and Development) Act, 2016 – RERA, made the developers cautious. With RERA implementation to be completed by the end of Q2FY17, clarity on the impact of GST on the real estate and housing sector coupled with government’s initiatives towards building affordable housing should eventually drive the demand for cement from the real estate and housing sector. Also, public infrastructure development lead by execution of smart cities and national highways projects across the country should drive the demand for cement from the infrastructure and construction sector in the next quarters. Has the need for working capital risen, given that refunds are still locked with exchequer?
Yes, under the erstwhile tax regime, exporters enjoyed upfront tax exemption on purchases against concessional tax forms, which is not available under the GST regime. Under the GST regime, GST paid on inward supplies is required to be claimed as refund by the exporters. However, due to glitches in the GST Network, the deadline for filing GST returns for July 2017 (the first month under the GST regime) has been extended twice, with GSTR-3 now required to be filed as late as November 10, 2017. The extension in filing GST returns for the first and therefore subsequent months means delay in processing of refunds by the authorities thereby increasing the requirement for additional working capital. Do you think GST regime will attract investment in your end use industry?
The demand for cement is driven by real estate and housing sector, accounting for about two-third of the total cement consumption in India. The other major consumers of cement include infrastructure, commercial construction and industrial construction. Given the government’s initiatives towards building affordable housing and public infrastructure development, GST regime will certainly attract investment in the real estate and construction sector. Further, bringing the real estate under the ambit of GST can boost the investment in the sector. Is there any other information you wish to share.
The GST regime aims to widen the tax base by bringing the informal sector under the ambit of formal economy resulting in higher tax revenues for the exchequer, gradually allowing a move towards fewer slabs and lower GST rate. The transition has just started and the ride to make GST a "Good and Simple Tax" will be long and full of challenges requiring resilience on part of government and businesses. The successful implementation of GST will certainly drive the Indian economy offering opportunities for growth across sectors.

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.