Economy & Market

Bulking up

Published

8 years ago

March 31, 2018

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More and more RMC players and project implementing agencies are opting for bulk deliveries against split bags to save on costs and to curtail wastage.
Bulk distribution of cement is slowly but steadily replacing the once ubiquitous cement bags, changing the composition of cement channel supply chains forever. Bulk cement is consumed by ready mix concrete (RMC) manufacturers and project implementing agencies across the country. However, bag cement is refusing to disappear from the scene. For other activities like plastering, brickwork etc., bag cement is required, besides catering to the rural demand, where a lot of consumers order lower quantities.

"About 75% of requirements of RMC manufacturers are supplied through bulk only. The trend is building up towards bulk as wastage is low and cost is competitive. It saves on the cost of bags and wastage is less than one per cent. In the next couple of years, the trend will continue towards bulk," says AK Bal, Director of Pune-based Viraj Projects Pvt Ltd, which deals in steels, sand, dyes, bricks and tiles, besides cement.
Earlier the concept was use of split bags for even medium and big projects. But the trend is changing for several reasons. "Now, everybody has installed silos and has a big RMC plantat the site, particularly in South Mumbai, where you can see new towers coming up. They go for RMC orders, practically due to space constraints. This is the reason bulk cement has moved there, and this trend will continue," says Nikesh Parekh of Mumbai-based Span Cements, which also deals in paints, construction chemicals and tile adhesives.
For urban supplies and infrastructure projects, bulk supplies are being preferred, so demand for bulk supplies is expected to rise, says Bal, citing the example of Odisha, where bulk cement supplies were almost absent a year ago and gaining prominence of late.
Cement bag go into retail shops, who supply it to small contractors. "With the entry of specialised products like ready-made plasters, tile adhesives, mortars, polymer mortars etc., bag cement in retail will slowly diminish in future. In other developed countries, you do not get loose bag cements." Independent dealers
Few producers sell their goods directly to the final users. But, most use intermediaries to bring their products to market. The latter involves forging marketing channels, which can be described as a set of interdependent organizations that help make a product or service available for use or consumption by the consumer. Hence a company’s channel decisions will have a direct bearing on its marketing success.
There is an apprehension that some independent marketing players could takeover the building material channel operations wholesale in the days to come. There are already a couple of start-ups which are doing this in building materials. Nitin Vyas, Managing Director, Beumer Group says, "I believe that the next step for it would be having a platform for all cement-related industries to become an Uber (online call taxi service) of cement distribution. In the end, the cement producers would be containers, but the interface to the market would be the service companies who are reaching the material to the end customers. And that can’t be stopped."
Even some of the dealers have started guarding against this impending trend though it is not widely prevalent as of now. Span Cements has already started taking orders online from their customers. However, if online orders are accepted by any firm then they may seek payment in advance.
But for that there is no big change in the cement channels. The dealers opt for multiple dealerships for cement, so that they cannot disappoint any customer seeking a particular brand. Single dealerships are a rarity. Dealer-based
Cement is a pure commodity. Most of the cement manufacturers still deal with customers through distributors or dealers. "Though the companies are maintaining accounts of some key customers, the supplies are routed through dealers and distributors. Companies never supply cement directly to anybody. They want to encourage distributors also for insuring their receivables. The companies want to get their payment on time, so dealer will be in between to take care of payments," says Bal of Viraj.
"We have virtually become insurance agent for our principal (manufacturer for their receivables) than a marketing agent, and financier for our customer," Parekh says while explaining the role of cement dealers in the supply chain. For steel sector it is different – there customer pay interest for delayed payment. In steel, direct supply system from manufacturers is still prevalent. As far as sand goes, they have to make the spot payment, because natural sand is a very scarce commodity today. Whatever available is manufactured sand.
Comparing the channels between cement and steel, Bal says, "Another difference is cement has to be consumed within three months from the date of manufacture, hence some dealers push it through credit. That is not the case with steel, which can be stored for a couple of years without erosion in quality, if properly stored."
There is a general consensus among the dealers ICR has contacted about the upward trend in cement prices in the coming months, mostly banking on the pre-election infrastructure boost that will take place in the next 12 months before general elections scheduled for May 2019.
Bal of Viraj is expecting the cement prices to go up to Rs 270 plus GST per bag in the next two quarters from the present level of 230 plus GST in Pune. Even builders are trying to complete their projects at the earliest to cash in on their land banks. The reason is that earlier the building prices were going up rapidly giving hope that the builders can make more money if the project is delayed. Now, there is no such hope. "Now the rise in building/floor price is only 4-5 per cent a year, which is not sustainable if the project is delayed as it does not even cover the incremental interest cost incurred. Besides, input prices are moving up," Bal added.
If there is any hindrance to cement demand growth that is ‘availability of finance’, particularly in the wake of the government swooping down on defaulting companies and bad loans. "Financing has become tight everywhere. We (as dealers) have a certain capacity and I cannot go beyond that or else I will also fall. If any builder calls me and tells me that I can only pay you only a couple of weeks later, I will have to accept it. Otherwise they will stop taking my supplies. As far as payments to companies are concerned, we work on one principle – RTGS in 48 hours."– BS Srinivasalu Reddy

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.