Economy & Market

“Service side players might take over distribution business”

Published

9 years ago

March 31, 2018

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– Nitin Vyas, Managing Director, Beumer Group
Even as prepares the market for alternate fuels in India, Nitin Vyas, Managing Director, Beumer Group feels that the cement distribution business might witness the rise of an Uber like aggregator.Tell us something about your most interesting products in the market?
Automatic bag applicator or placer, specifically for PP/HDPE woven stitched bags because till date no technology supplier has developed such a machine for those kinds of bags. We guarantee a very high shooting accuracy with some of the applicators having already been implemented with our customers in India. In addition, we have also launched our new generation automatic filling machines for cement that are compact in design, consume less power, low on deadweight and with plenty of digital interfaces. It’s a completely different level of technology with weighing accuracy higher than what is available in the market. We are also trying to position it under the ‘Make in India’ and ‘Digital India’ initiatives of the government. Moreover, we are producing these machines not only for India but also for the global market from India. For instance, we are also supplying from here to China. The last product that we are putting in the packing line is the automatic truck loader machine. At 8 kW it consumes very less power. We have already successfully implemented 35 of these machines here.To what extent do your machines help in reducing cost at a packing plant?
There are two factors to that. One, you are saving a lot of time. So, for a truck of 20 tonne, which typically takes up to one hour to load, that reduces to 15 minutes. On average, a packing plant operates at around 80 tonnes per hour. If by making a line automatic I am able to take it to up to 120 tonnes per hour, I am making around 30 tonnes per hour increase in productivity. Once that is achieved, my customer can shut down one of the shifts at the plant. That is how you enhance productivity and reduce cost. However, I would also like to add that if you believe that by reducing people you will be also reducing cost, you are mistaken. By putting automation, you will only reduce the number of people and not the manpower cost. Rather, it will either remain the same or be higher. The reason is the moment you put technology, you will need people with higher skills and your cost will also go up. But bring in efficiency to increase productivity and you can produce 15 to 20 per cent more with the same fixed cost. And that’s what is actually your saving.What percentage of your R&D happens in India?
We jointly work with our central R&D team for certain products in Germany. We have been allocated certain projects for localisation. But those are not completely driven out of here. Our development centre in India is located on five acres in Gurugram. It has a workshop and four floors of office block with around 200 engineers. We have a big automation lab over there. We do engineering for not only India but also our group companies in Thailand, UK and the Middle East. Do you perceive any major disruptions happening in cement?
I believe that some amount of disruptions will happen over the next five years in terms of distribution methodology. On the production side, I don’t think that many things will change. On the plant side, the only big change that I would see is higher usage of alternate fuels. We do a lot of business in alternate fuels outside India. We intend to start it in India and are in the midst of gauging the market. We see it as a potentially big market. When you indicate that there is likely to be disruption on the distribution side, what might that entail?
Currently the biggest cost drivers are over there. There will be players who will come in from the services side and take over cement distribution. There are already a couple of start-ups which are doing this in building materials. One of them is trying to consolidate all building materials, viz., cement, steel, gravel, etc., and connecting with the market. I believe that the next step for it would be having a platform for all cement-related industries to become an Uber 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. For instance, if I am the National Highways Authority of India (NHAI) and I want cement to be supplied for a road or bridge project, I can’t stop a start-up from bidding for the tender. And if I bid, I can negotiate the price at which I will be procuring from top cement manufacturers.Tell us something about your Beumer Overall Operation Monitoring (BOOM) app?
It has been mainly developed for the packing plant. On the operations side, you can connect it to all your packing or production lines to assess overall equipment effectiveness and analytics. At the execution level, it generates
MIS reports. Given the very traditional nature of the cement business, how have your customers responded to the app?
The moment decisions makers such as business owners, managing directors and CEOs see it, they want to download it. It makes them independent as it allows them to look up reports anytime, anywhere on their mobile phones. We like cab services like Uber or Ola because nobody tells us what we need to do. We become our own executives. We are pushing all the data on to cloud so that it remains secured. Some customers had this apprehension that the app might provide us with their despatch data. To allay their fears, we have provided them with guarantees in form of non-disclosure agreements. Given that a lot of emphasis is being given to infrastructure creation by the government what is your own outlook for the cement industry?
Although it is far better than earlier, we are still slow. As a country, we spend about 9 per cent of our GDP on infrastructure. In comparison, China at the peak of its development boom was spending 32 per cent of its GDP on infrastructure. In order to expedite infrastructure creation, we need to spend between 12 to 16 per cent of our GDP on infrastructure. Only then can we consume the capacity that has been added. We are sitting on 400 MT of capacity right now. To have good infrastructure in India, you need to have a capacity of 1 billion metric tonnes. But at the rate at
which we are going, we will reach 1 billion metric tonnes only by 2050. However, if we double it, we will we will reach there by 2030. As far as the overall business is concerned, I am very positive. This is going to be a very big year for Indian aviation as a number of runways and terminals are being built. On the port side, Sagarmala, interlinking of rivers and NHAI are going to pick up significant traction.-MANISH PANT

Concrete

JSW Cement commissions additional 1 MTPA grinding unit at Nagaur

Published

3 hours ago

October 8, 2026

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With this commissioning, JSW Cement’s total cement grinding capacity has increased to 25.10 MTPA,
Mumbai

JSW Cement, one of India’s leading green cement producers and part of the diversified JSW Group, today announced the successful commissioning of an additional 1.00 MTPA cement grinding unit at Nagaur, Rajasthan. The commissioning marks another significant milestone in the Company’s growth strategy.

With this commissioning, JSW Cement’s total cement grinding capacity has increased to 25.10 MTPA, while its total clinker manufacturing capacity, including clinker capacity at its joint venture, JSW Cement FZC, stands at 9.74 MTPA.

JSW Cement had commenced operations in North India in March 2026 with the Nagaur Integrated Plant, comprising a 3.30 MTPA clinkerisation unit and 2.50 MTPA cement grinding unit. With the commissioning of the additional 1.00 MTPA cement grinding unit, the plant’s total cement grinding capacity has increased to 3.50 MTPA, enhancing the company’s ability to cater to the growing cement demand across Rajasthan, Haryana, Punjab and the National Capital Region (NCR). The expansion has been funded through a strategic mix of equity and long-term debt.

During the quarter ended 30th September 2026, JSW Cement has also commissioned the Alternate Fuel Handling System and the Waste Heat Recovery system (WHRS) at the Nagaur Integrated Plant.

Nilesh Narwekar, CEO, JSW Cement, said: “The commissioning of additional 1.00 MTPA grinding capacity at Nagaur is a key strategic priority for us and will accelerate JSW Cement’s expansion into North India. We look forward to servicing the growing needs of the region and contributing to the economic growth of Rajasthan, Haryana, Punjab and the NCR area. I am delighted to share that the company has commissioned this grinding unit within the expected timeline, showcasing our project execution capabilities. Further, the Alternate Fuel Handling System and the Waste Heat Recovery system (WHRS) are expected to substantially reduce our production costs going forward.”

Concrete

UltraTech becomes first Indian cement firm to cross 2 GW green energy

Published

23 hours ago

October 7, 2026

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UltraTech Cement has crossed 2 GW of captive green energy capacity, with renewables and waste heat recovery meeting 48 per cent of its power needs.

Mumbai

UltraTech Cement Limited has surpassed 2 GW of installed green energy capacity for captive use, becoming the first cement company in India to achieve the milestone. The Aditya Birla Group company commissioned 116.55 MW of wind capacity at its Inter-State Transmission System-connected wind-solar hybrid project in Barmer, Rajasthan, along with 10 MW of Waste Heat Recovery System capacity at Sarlanagar Cement Works in Karnataka.

With these additions, UltraTech’s cumulative installed green energy capacity has reached 2,024 MW. This includes 1,580 MW of renewable energy capacity and 444 MW of waste heat recovery capacity, together meeting around 48 per cent of the company’s current power requirements.

The company said the milestone reflects the progress of its long-term energy transition strategy. In FY27 so far, nearly one-third of UltraTech’s 76 manufacturing units in India have maintained green energy utilisation above 50 per cent of their electricity requirements, while five units have crossed 95 per cent.

K C Jhanwar, Managing Director, UltraTech Cement Limited, said, “Crossing the 2 GW green energy milestone is the result of a strategy we have pursued consistently over the past decade. Cement is an energy-intensive, hard-to-abate sector, and showing that reliability and growth can go hand in hand with a rapid shift to green energy sets a benchmark for the industry. With nearly half of our power needs now met through green energy, we are significantly less exposed to fossil fuel supply constraints and power price volatility. As we scale up renewables, waste heat recovery and battery storage across our operations, we are building an energy foundation for stable, long-term growth.”

UltraTech commissioned 430 MW of green energy capacity in FY26 and continues to expand its renewable energy and waste heat recovery portfolio.

The company is also progressively integrating Battery Energy Storage Systems across its operations to improve renewable energy utilisation and supply reliability.

In 2025, UltraTech operationalised what it described as India’s first on-site hybrid round-the-clock renewable energy project at Sewagram Cement Works in Gujarat. The project combines solar, wind and battery storage.

As part of its decarbonisation strategy, UltraTech said it has not invested in new captive thermal power capacity for either greenfield projects or brownfield expansions at its integrated units for more than a decade.

The company said its expanding green energy portfolio is helping reduce dependence on conventional grid electricity and fossil fuel-based power, while lowering exposure to fluctuations in coal and electricity prices.

UltraTech aims to increase green energy’s share in its total power mix to 85 per cent by 2030. As a member of RE100, it has also committed to meeting 100 per cent of its electricity requirement through renewable sources by 2050.

UltraTech Cement, the cement flagship of the Aditya Birla Group, has a total grey cement capacity of 210.1 MTPA and white cement and putty capacity of 3.5 MTPA. The company is also a signatory to the GCCA Climate Ambition 2050 and has committed to the GCCA Net Zero Concrete roadmap.

Concrete

Shiva Cement Merges with JSW Cement

Published

1 day ago

October 7, 2026

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JSW Cement has announced a scheme of arrangement to merge its listed subsidiary Shiva Cement with itself, creating a single unified cement platform. The boards of both companies have approved the proposal, which will require clearances from stock exchanges, the Securities and Exchange Board of India, the National Company Law Tribunal, Odisha Industrial Infrastructure Development Corporation and other applicable authorities.

The transaction is expected to be completed within 12 to 14 months, subject to the necessary approvals from regulators, shareholders and creditors. Under the scheme, JSW Cement will issue 5 equity shares with a face value of Rs. 10 each for every 41 equity shares with a face value of Rs. 2 each held by Shiva Cement shareholders other than JSW Cement.

The company said the merger would consolidate financial, managerial, technical, distribution and marketing resources while reducing administrative duplication and compliance requirements. It would also provide greater funding flexibility, potentially lower financing costs and eliminate inter-company guarantees.

The consolidation is expected to strengthen backward integration by enabling JSW Cement to use Shiva Cement’s clinker manufacturing facility. This would reduce dependence on external clinker procurement and improve supply-chain efficiency. Public shareholders of Shiva Cement would receive direct ownership in JSW Cement, which has a broader institutional investor base and a more liquid listed presence.

JSW Cement acquired a controlling stake in Shiva Cement through transactions that began in January 2017. Shiva Cement operates a clinker facility in Odisha, near the borders of Odisha, Chhattisgarh and Jharkhand, and commissioned a 1 mtpa cement grinding unit at Sambalpur in FY26 through a commercial arrangement with Bhushan Power and Steel.

JSW Cement has 24.10 mtpa of cement grinding capacity and 9.74 mtpa of clinkerisation capacity. Its Indian operations comprise nine plants, including two integrated units, one clinker unit and six grinding units. The proposed merger is intended to simplify the corporate structure and align the financial statements of the two companies.