Economy & Market
How logistics value adds to the country’s GDP
Published
9 years agoon
By
admin
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
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ABB Extends Drive Lifespan at ACC Cement Plant Without Production Shutdown
Published
2 days agoon
November 12, 2026By
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ABB reconditions 25 drives at ACC’s Jamul cement plant, avoiding 16 tonnes of CO₂ emissions while improving reliability through predictive maintenance.
Chhattisgarh
ABB has signed a multi-year Motion OneCare service agreement with ACC Limited, part of the Adani Group, to modernise ageing industrial drives at its Jamul cement plant in Chhattisgarh, improving operational reliability while avoiding approximately 16 tonnes of carbon dioxide (CO₂) emissions without disrupting production.
Announced on 27 October 2026, the agreement combines scheduled drive reconditioning, digital condition monitoring and energy appraisals to extend equipment lifespan, improve plant uptime and optimise maintenance costs. The initiative marks a shift from conventional equipment replacement towards a more resource-efficient approach to industrial asset management.
The first phase, completed in April 2026, involved the on-site reconditioning of 25 ABB ACS800 variable speed drives without a major plant shutdown. By retaining the existing cabinets and restoring the drive modules rather than replacing entire panels, ABB helped ACC preserve capital investment, minimise material consumption and avoid approximately 16 tonnes of CO₂ emissions.
A second phase, covering an additional 25 ACS800 drive modules, is scheduled for the fourth quarter of 2026. The programme is designed to improve long-term equipment reliability while allowing maintenance activities to be aligned with the plant’s operational schedules.
The ACS800 drives, installed at Jamul in 2010, had delivered more than a decade of near-continuous service in demanding cement manufacturing conditions. However, ageing electrical components and changing fault patterns had begun to affect their ability to meet the plant’s reliability requirements.
Rather than opting for complete equipment replacement, ACC engaged ABB’s certified engineers to conduct a comprehensive asset health assessment. The evaluation found that the existing cabinets and enclosures remained structurally sound, making targeted reconditioning a technically viable and cost-effective alternative to full replacement.
Drawing on nearly two decades of experience with ACC’s equipment and operating requirements, ABB developed a maintenance framework tailored to the plant’s shutdown windows, budget cycles and production priorities.
The Motion OneCare agreement incorporates planned equipment restoration, condition-based monitoring and energy assessments, enabling ACC to adopt a more systematic approach to maintaining critical electrical infrastructure.
As part of the programme, ACC has implemented ABB Ability™ Digital Powertrain Insights to monitor drive performance and identify emerging operational issues before they result in equipment failures.
The digital platform provides continuous visibility into parameters such as temperature, current, vibration and fault patterns. These insights allow maintenance teams to detect early signs of equipment deterioration, schedule interventions more effectively and reduce the likelihood of unexpected downtime.
Amit Gupta, Local Division Manager, Motion Services, ABB India, said: “We know what unchecked wear costs over time: a small inefficiency that eats away at ROI for years. At Jamul, the evidence pointed clearly to assets with productive life still in them.”
“Our job was to restore them properly and give the team the tools to stay ahead of the next problem. At ABB, we don’t just fix what fails. We want to protect what works.”
The initiative also demonstrates the growing relevance of circular economy principles in cement manufacturing, where extending the service life of existing industrial equipment can reduce capital expenditure, material consumption and the environmental impact associated with manufacturing replacement components.
According to ABB, drive reconditioning can reduce lifecycle emissions by 50 to 80 per cent compared with complete equipment replacement. By preserving functional components and restoring critical modules, the process helps retain the economic and material value of existing industrial assets.
The addition of energy appraisals in subsequent phases will further expand the programme beyond equipment restoration, enabling ACC to assess drive performance, identify energy-saving opportunities and improve operating efficiency.
For cement manufacturers, variable speed drives play an important role in controlling motors and optimising energy consumption across production processes. Maintaining their reliability and efficiency is essential for minimising operational disruptions and managing electricity costs.
Vinod Bahety, CEO – Cement Business, Adani Group, said: “Moving from reactive firefighting to a structured maintenance plan was exactly what this operation needed. That kind of peace of mind doesn’t come easily. It comes from a partner that understands how your business runs.”
“We didn’t need a full system overhaul; we needed expert support, actionable insights, and a plan we could execute around our schedule. That’s what we got.”
The project supports ACC’s broader strategy to improve manufacturing efficiency through digital transformation, preventive maintenance and sustainable asset management.
ACC, a subsidiary of Ambuja Cements and part of the Adani Group, operates 20 cement manufacturing facilities and 119 ready-mix concrete plants across India. The company has been advancing initiatives focused on renewable energy, circular economy practices and technology-driven operational improvements.
Alongside Ambuja Cements, ACC is part of a large-scale building materials business committed to achieving net-zero emissions by 2050, with near-term and net-zero targets validated by the Science Based Targets initiative (SBTi).
The Jamul initiative aligns with these sustainability objectives by demonstrating how equipment life extension and digital monitoring can contribute to resource efficiency without requiring large-scale replacement of existing infrastructure.
ABB, a global technology company specialising in electrification and automation, brings more than 140 years of industrial expertise and employs approximately 110,000 people worldwide. Its Motion Services business supports industrial customers through equipment maintenance, modernisation, digital monitoring and lifecycle management solutions.
The agreement also reflects a wider shift in industrial maintenance practices, with manufacturers increasingly adopting predictive technologies to improve equipment availability, manage costs and reduce unplanned shutdowns.
With 25 drives already reconditioned and another 25 scheduled for restoration, ABB’s collaboration with ACC illustrates how targeted modernisation, digital monitoring and circular maintenance practices can extend the operational life of critical equipment while supporting more efficient and sustainable cement production.
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ABB Drives Digital Transformation at TCI MAX Cement Plant in J&K
Published
2 days agoon
November 12, 2026By
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ABB deploys advanced process control at TCI MAX’s Srinagar cement plant to improve clinker quality, energy efficiency and sustainable manufacturing.
Kashmir
ABB has deployed its advanced process control technology at TCI MAX Cement’s Srinagar facility in Jammu and Kashmir, marking the region’s first reported implementation of advanced process control (APC) in cement manufacturing and strengthening efforts towards more efficient, digitally enabled production.
Announced on 5 November 2026, the deployment of ABB Ability™ Expert Optimizer at the facility, operated by Trumboo Industries Pvt. Ltd., aims to improve process stability, clinker quality, energy efficiency and overall plant productivity. The implementation forms part of TCI MAX’s strategy to modernise its manufacturing operations through automation and digital technologies.
Following the integration of ABB’s advanced process control solution and supporting IT infrastructure, TCI MAX has reported improvements in operational productivity, product quality and sustainability-related performance indicators. The technology focuses on optimising the cement pyro process, a critical stage of production involving high-temperature processing and clinker formation.
Waseem Ahmed Trumboo, Director, Trumboo Industries Pvt. Ltd., said: “Introducing advanced process control at TCI MAX is an important step in how we are evolving our operations. Our focus is on improving the stability and efficiency of our processes while maintaining consistent clinker quality. We have been encouraged by the performance of the solution during commissioning and by the support from the ABB team, and we look forward to realizing its full potential.”
ABB Ability™ Expert Optimizer combines advanced process control, model predictive control (MPC) and artificial intelligence (AI) to continuously monitor and optimise manufacturing operations. By analysing process conditions, predicting operational behaviour and automatically adjusting key parameters, the system enables more consistent production while reducing process variability.
In cement manufacturing, maintaining stable pyro-processing conditions is essential for achieving uniform clinker quality and optimising thermal energy consumption. Fluctuations in operating parameters can affect fuel efficiency, production output and product consistency.
The deployment is designed to address these challenges through real-time process optimisation, helping operators maintain more stable kiln operations while improving the utilisation of fuel, electricity and raw materials.
Kapil Agarwal, Senior Vice President and Local Division Manager, Process Industries Division, ABB India, said: “Cement producers are increasingly looking to adopt digital technologies to achieve greater consistency and efficiency while addressing their sustainability priorities. ABB Ability™ Expert Optimizer brings advanced process control and deep cement process expertise together to help operators make their processes more stable and efficient. We are pleased to support TCI MAX as it takes this important step in its digital transformation.”
The technology also supports sustainability objectives by optimising fuel consumption, improving electrical energy efficiency and minimising process waste. More stable operations can contribute to lower energy intensity and reduced emissions associated with cement production.
For TCI MAX, the investment represents a move towards data-driven manufacturing, where automated control systems complement operator expertise to improve production performance and operational reliability.
The implementation is particularly significant for Jammu and Kashmir’s cement industry, as it introduces advanced process optimisation technology to a regional manufacturing facility. Its deployment could demonstrate the potential for wider adoption of digital automation across cement plants seeking to modernise their operations.
The project builds on ABB’s experience in delivering advanced process control solutions to cement manufacturers worldwide. Through the integration of industrial automation, predictive technologies and process engineering expertise, the company supports manufacturers in improving resource efficiency and maintaining consistent production quality.
As cement producers face increasing pressure to manage energy costs, improve productivity and reduce their environmental footprint, technologies such as AI-enabled process control and predictive optimisation are becoming important components of plant modernisation strategies.
ABB’s Expert Optimizer provides a platform for addressing these priorities by enabling automated adjustments based on changing process conditions, reducing reliance on manual intervention and supporting more efficient plant operation.
ABB, a global technology company specialising in electrification and automation, has more than 140 years of industrial experience and approximately 110,000 employees worldwide. Its Automation business employs around 26,000 people and provides technologies and services across process, hybrid and maritime industries.
The TCI MAX deployment reinforces ABB’s growing role in the digital transformation of cement manufacturing in India, where improving process efficiency and reducing energy consumption remain critical to the industry’s long-term sustainability.
With the advanced process control system now implemented at its Srinagar facility, TCI MAX aims to build on the initial operational improvements and further optimise production efficiency, clinker consistency and environmental performance.
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Ramco Cements’ Hard Worker Wins Eight Awards at ‘Love of Advertising Awards 2026’
Published
2 days agoon
November 12, 2026By
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Ramco Cements’ Hard Worker brand wins eight awards for excellence in advertising, packaging and brand identity at the Love of Advertising Awards 2026.
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The Ramco Cements Limited’s construction chemicals brand, Hard Worker, has secured eight awards at the Love of Advertising Awards 2026, recognising its creative excellence across television, digital advertising, packaging design and brand identity.
Organised by the Advertising Club of Trivandrum, the awards were presented at a ceremony held at The Leela Raviz, Kovalam, on 24 October 2026. The recognition highlights Hard Worker’s integrated marketing strategy and its efforts to establish a distinctive presence in India’s competitive construction chemicals market.
The eight awards span multiple creative categories, reflecting the brand’s approach to combining product-focused communication with engaging storytelling, humour and innovative design. Through its campaigns, Hard Worker has sought to simplify technical product benefits and make construction chemicals more accessible and relatable to consumers and construction professionals.
Built around the philosophy of “Hard-working products for hardworking people”, the brand focuses on communicating practical product advantages through memorable advertising narratives while maintaining a consistent identity across different marketing platforms.
Its campaigns for Ramco Hard Worker Eco Plaster and Tile Fix have been central to this approach. The Eco Plaster campaign highlights water conservation through the product’s self-curing properties, positioning it as a solution that supports more efficient construction practices. Meanwhile, Tile Fix promotes specialised tile-fixing solutions by presenting their practical benefits through relatable situations and creative storytelling.
Beyond advertising, Hard Worker has invested in distinctive packaging and brand identity development to improve product recognition and maintain consistency across customer touchpoints. This integrated approach has helped the brand differentiate itself in a category where marketing communication has traditionally focused on technical specifications and functional performance.
A V Dharmakrishnan, CEO, Ramco Cements, said, “Winning eight awards at the Love of Advertising Awards is a proud moment for Ramco Cements and the Hard Worker team. We believe that building a strong brand requires not only quality products but also the ability to communicate their value in a compelling and differentiated manner. Hard Worker’s journey reflects our commitment to combining product performance with innovative marketing to create meaningful connections with our customers and strengthen our presence in the construction chemicals market.”
The recognition comes as building materials manufacturers increasingly focus on brand differentiation, product awareness and customer engagement to strengthen their position in the construction chemicals segment.
By using humour and storytelling to explain product applications and benefits, Hard Worker aims to bridge the communication gap between technical construction solutions and the practical requirements of contractors, applicators and end-users.
Balaji K. Moorthy, Executive Director – Marketing, Ramco Cements, said, “Hard Worker was conceived to bring a fresh perspective to the construction chemicals category, where product communication has traditionally been functional and technical. Our endeavour has been to break through the clutter with distinctive ideas, humour and storytelling, while keeping the product proposition at the heart of every campaign. The recognition across TV and digital advertising, packaging design and brand identity design demonstrates our integrated approach to building the brand. These eight awards are an encouraging recognition of the creative thinking and collaborative effort behind Hard Worker’s marketing initiatives.”
The awards add to Hard Worker’s growing portfolio of creative recognitions and reinforce Ramco Cements’ emphasis on integrating product innovation with strategic marketing.
The brand’s communication initiatives also reflect a wider shift in the construction materials industry, where manufacturers are increasingly adopting consumer-focused marketing strategies to improve product understanding and strengthen relationships with construction professionals.
With its portfolio of construction chemicals, Hard Worker aims to address evolving requirements for durability, application efficiency and construction quality. Its marketing efforts seek to complement these product attributes by building stronger awareness and encouraging the adoption of specialised construction solutions.
Ramco Cements, one of India’s established cement manufacturers, operates across cement and allied building solutions. Through Hard Worker, the company is expanding its presence in the construction chemicals segment with products designed to enhance performance, quality and durability in modern construction applications.
The latest recognition strengthens Hard Worker’s brand visibility and underscores the growing importance of creative communication in promoting technical building materials. Ramco Cements intends to continue combining product development with distinctive marketing initiatives to support the brand’s growth in India’s construction chemicals market.
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