Economy & Market

How logistics value adds to the country’s GDP

Published

9 years ago

January 12, 2018

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Supply creates its own demand, at least that is entirely true for India, where we run a constrained system. Logistics could add a full percentage point to GDP.

If more rail-rakes are allocated to the coal sector, one would assume that more coal rakes would move. But not so; the logistics puzzle, especially when we deal with multi-commodity, multi-zonal rail movement under constraints ranging from line capacity and safety norms on one hand and zonal coordination on locomotives and crew, guard, on the other, is far more complex to comprehend.

So against the first quarter 2018, in the second quarter India moved less coal rakes although the clear allocation was to move more coal rakes. The overall movement of rakes across all commodities also came down in the second quarter over the first quarter of 2018. This clearly shifted many commodities from rail to road, thus raising the cost of the system and therefore impacted GDP.

Why is it so? Three factors came in the way:

Empty movement increased as out of turn rakes moved into coal which were earlier moving to other commodities, increased the empty rake run. Every rake moving an extra empty run reduced the overall rake movement with load.
Optimising rake movement with constraints need multi-commodity handshakes, a rake moving the first leg with iron ore could end up with coal in the second leg and slag i the third leg. When the allocation changes to coal in the first leg, the whole optimisation puzzle changes to new constraints and new solutions.
Inter-zonal and intra-zonal coordination for maximising rake movement precludes exchange of information so as to deliver one single objective function, which is maximising overall movement. When this objective function is changed to maximising coal rake movement, the coordination needs to move at two levels, which at times becomes impossible to handle as constraints increase.

India’s GDP is tied to higher production and output in the core sector, which can only happen if more commodities move; among all, coal, iron ore, steel, clinker, slag, cement and manufactured goods constitute the bulk. If one happens without the other, we create disparities of several kinds.
So the logistics spillover to road movement is a reality, but this surely comes at a cost. In the US, where 70 per cent of the movement is by road, no one moves bulk goods by road, other than the first or the last mile, this is sheer factor-advantage that cannot be relegated to wasteful economics.
Raising cost of movement due to a switch to road displaces factor advantages and raises the cost of the overall system. It impacts GDP as costs rise, it reduces consumption or when firm profits are impacted, the alternatives are not necessarily those that would add to the GDP.
Logistics is one of the most value adding components of GDP, this is better understood if we replace the country GDP with the firm GDP, which is net value added for the firm. When you raise cost of the system, the value added comes down whereas when you aid the flow, the value gets unlocked in higher EBIDTA.
Going back to our coal movement example, by attempting to increase the flow of coal, we ended up improving neither the coal movement nor the overall movement of all other commodities by rail and created the spillover effects in road, which added to overall cost of the system, thus impacting GDP negatively.
Spillover effects are generally negative to GDP, shifting from rail to road for bulk materials is one of them.
Is this a solvable puzzle? Of course it is, surely the puzzle would get sorted out but a lost GDP will remain a lost opportunity forever.
It is like the sale loss, could it be ever made up, I am not sure. To look at it differently if we would have added all the lost opportunities of moving stuff, the loss in value added would have knocked out a full percentage point from GDP.
Moving stuff efficiently is logistics, not just moving stuff any which way we can. The former adds to the net value added, whereas the latter destroys value.
By shifting rail to road for bulk goods, we could be doing the same for GDP.
The logic similarly could be extended to road as well, if we think by adding more vehicles we can move more stuff efficiently, we would be making the same mistake.
Optimisation is about solving these inter-connected puzzles, but the best we can do is demonstrating that we are keen to exchange more information and remove barriers that come in the way of transparent data.
Exchange of information in a constrained based system and along organisational interfaces where conflicting objective functions clash with each other, is one area of development in India. While digital information systems have improved and we have far higher transparency, we still lack the organisational reinforcements needed to deal with this.

One such neglected area is the inbound transportation versus the outbound transportation and the synergies mostly are never fully harnessed as the two are looked after by two different organisations. This is far more acute sometimes within the same supply chain where multiple commodities are moved using the same infrastructure and the missing synergies are not fully captured and acted on. Horizontal collaboration within supply chains where the same route is frequented by different commodities has a lot of scope to improve efficiency but the sharing of advantages is not fully garnered due to lack of organisational effort. This is not about technology, but the softer areas of barrier-less organisation must follow through with the efforts needed to transform.

Logistics, remains one of the most neglected functions in India, but things need to change fast as supply bottlenecks would continue to constrain the system.

Logistics alone could add a percentage point to GDP, such is the potential.

Infrastructure holds the center piece for logistics, but it is not the only piece of the puzzle. Factors that bring in efficiency and reduces wastes in the system is where the logisticians play the most important role. Simple things like empty haulage, return loads, less stops on the road, optimised loading programme, ease of movements at check points, multi-modal movements, last mile and the first mile connectivity are few of the areas where substantial gains could be achieved.

Logistics is no more the just the tail, it is time it starts to wag the dog.

ABOUT THE AUTHOR: Procyon Mukherjee, Chief Procurement Officer of Lafarge Holcim

Economy & Market

Leonard Unveils Dual-Head Robotic Arm for Hazardous Industrial Demolition

Published

2 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

2 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