Economy & Market

Milestone event of the last century

Published

5 years ago

January 6, 2020

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The author has long experience and exposure in the industry at executive level and has worked with ILO as Senior Employers’ Specialist for South Asian Region. He has taken stock of the situation in view of the present Covid-19 pandemic, its antecedence and impact on enterprises today.

There were three milestone events of the last century that impacted people, nations and enterprises. The first milestone event of last century was end of First World War in 1918. The end of the First World War saw the spread of Spanish flu pandemic in various countries of the world including India. The Spanish flu, also known as the 1918 flu pandemic, was an unusually deadly influenza pandemic caused by the H1N1 influenza A virus. Lasting from spring 1918 through spring or early summer 1919, it infected 500 million people, i.e. about a third of the world’s population at that time. It is estimated, that in India, nearly 18 million people which was 6 per cent of the population at that time, lost their lives in this disease, which locally was called plague. This pandemic impacted many families in India. Mahatma Gandhi lost his daughter-in-law and a grandchild in this pandemic, and was himself a victim and was cured and we all know his contribution to India in the freedom struggle.

The second milestone event of last century was end of Second World War in 1945. Second World War was a major conflict in human history, which marked the death of 70 to 85 million people in the world, most of whom were civilians in the Soviet Union and China. Following the end of Second World War, most countries became independent nations between 1945 and 1965 varying from a peaceful to protracted revolutionary process. Also, the end of Second World War led to the birth of the United Nations. Also, the International Labour Organization (ILO), which was born at the end of First World War, became a specialised agency of United Nations. Also, at the end of Second World War, countries in Europe gradually lost their colonies.

Hence, the European countries opened their economies with reference to movement of people, currency, goods and information by becoming open economies. At the same time colonies that became independent nations, took an approach of being closed or open or mixed economies depending upon their choice. India on independence in 1947 chose to be a mixed economy, with the core sector such as cement, steel, coal, electricity, interstate bus transport, railways, airlines, etc. being price controlled or/and state controlled; and also setting up a large number of public sector undertakings later and also nationalising sick private sector units plus the banks and insurance business plus the oil companies. We in India had strict control on movement of foreign currency in terms of a monitored exchange rate, high import duties coupled with Rupee trade with USSR, strict rules with reference to visas on employment of foreign nationals.

The third milestone event of last century was end of Cold War in 1989. The Cold War finally came to an end in 1989 with the fall of the Berlin Wall and the collapse of the communist regimes in Eastern Europe as well as USSR, a former communist country in eastern Europe and northern Asia. This led to all countries in the world that were closed or mixed economies becoming to varying degree open economies including India. It is in 1991, that India shifted gear from a mixed economy to an open economy, by devaluing the currency, permitting flow of foreign direct investment plus foreign institutional investment, reducing and rationalising the import duty based on WTO tariffs and permitting foreign made goods to be easily imported and available, relaxation on movement of persons from foreign countries to work in India.

The impact of the opening up of the economy in India was that large number of domestic enterprises post 1991 restructured their product portfolios as well as resources, including the permanent workforce working for the enterprise through voluntary retirement scheme (VRS), as labour laws did not go through change. The restructuring exercise of enterprises led to enterprises getting various activities, which were done inhouse being outsourced and/or subcontracted resulting in substantial growth of ancillaries, as well as the supply chain. Certain enterprises got acquired under new ownership and in certain cases also closed down.

New milestone event
In the present century, we had SARS (Severe Acute Respiratory Syndrome) coronavirus (SARS-CoV) "identified in 2003 infecting humans in the Guangdong province of Southern China in 2002. Then Middle East Respiratory Syndrome (MERS) a viral respiratory disease identified in Saudi Arabia in 2012. Then Ebola Virus Disease (EVD), formerly known as Ebola haemorrhagic fever outbreak in 2014-2016 in West Africa covering Guinea, Sierra Leone and Liberia, but none of these impacted the world and the enterprises of every country.

However, Coronavirus disease 19 (Covid-19), which is a highly transmittable and pathogenic viral infection caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2), emerged in Wuhan in 2019 has affected 212 countries and territories around the world. Covid-19 has impacted every country of the world, and this pandemic is a mile stone event of the current century which is impacting life, livelihood, enterprises and the economy of every country in the world.

There is no easy solution to preventing the spread of the Covid-19, unless the citizens fully cooperate in implementing the lockdown guidelines laid by the government of the country. Countries will have to review their public health expenditure percentage to country’s GDP for the future and bring it to at least three to five percent and this is not easy.

Post Covid-19, the international trade will go through a change, as countries are likely to reduce their dependence on China, which had become a manufacturing hub for a large number of items for many countries after the end of cold war 1989. Countries world over will review their policies on global supply chain, as countries would work on strategies for being self-reliant in certain specific sectors to protect domestic enterprises and reduce dependence on imports and also safe guard jobs for the locals arising from the downturn. International deglobalisation is likely to be an approach by certain countries to reduce dependence of imports in specific areas.

Also, there might be reluctance by countries depending upon their size and economic strength, to abide by the agreed WTO tariffs; and probably WTO itself may get a jolt and be restructured, wherein its role could go through a change. Also, the funding of international agencies like WHO from some of the countries has already gone through a change, though the role of an organisation like WHO becomes vital and relevant, when such a pandemic impacting countries of the world occurs and needs to be reported and acted upon to prevent the spread. Also, WHO will have to do serious introspection with reference to its funding, performance plus its role and this could result in some restructuring of the organisation.

Impact on Indian enterprises
The Government of India adopted the lock down approach from March 25, 2020 initially for 21 days which in phases got extended till May 31, 2020 and may get further extended if needed, so as to reduce the spread of coronavirus disease 19 (Covid-19) amongst the citizens and also to improve the preparedness of the various states and districts in the country medically for tackling the epidemic. The annual public health expenditure by states and union territories together in India amounted to around Rs 1.58 trillion, which is estimated to be around 1.28 per cent of the country’s GDP and this will have to go up in the future.

The Government of India has come forward with an economic package for enterprises, farmers, migrant workers and individuals for reducing the negative impact of the lock down. Enterprises and individuals need to look at the economic package and see how it would benefit them in reducing their financial stress and take benefit of the same wherever possible. The intensity of the impact of the Covid-19 for each enterprise differs based on the sector in which it operates, cash liquidity, profitability and location.

There are certain sectors like aviation, travel, tourism, hotels, restaurants, automobiles, capital goods, film production, movie theatres, entertainment, trade fairs, event management, malls, real estate, etc., where the dip in revenue for enterprises in the financial year 2020-21 is likely to be more than 50 per cent because of substantial fall in demand. If an enterprise in these sectors has a low cash liquidity, coupled with low profitability, then these enterprises are likely to have a tough future for independent existence and in the worst case could lead to continue to be sick or being acquired by interested buyers, unless innovative steps are taken by the management to undertake heavy cut in fixed cost to survive. However, if they have a high cash liquidity and low or negligible debt to equity, then they would be able to sail through the turbulent duration of Covid-19 period, survive and later also grow.

There are certain sectors like pharmaceuticals, hospitals, medical equipment, PPE, IT, mobile networks, mobile phones, app-based platforms doing home delivery, FMCG, agrochemicals, fertilizers, seed growing and processing, dairy and dairy products, food processing, cash crops, tobacco, cigarettes, alcohol, etc. where the dip in revenue for the financial year 2020-21 for enterprises in this sector is likely to be low. Even if an enterprise in this sector has a low cash liquidity coupled with a medium/high debt to equity and low profitability, it will survive in the post Covid-19 period, though there will be some negative impact to enterprises in these sectors if they are located in the red zone.

Situation of enterprises in India
The impact of COVID-19 is that the smooth functioning of every enterprise whether in the informal or the formal sector (micro, small medium or large) in India has been tripped and each enterprise will continue to have a time period of tripping based on which colour zone (i.e. red, orange or green) they are located, as activity and movement will be hampered in red zones. Also, the duration for enterprises to operate before a cure for Covid-19 is available could be from two quarters to six quarters starting April 1, 2020, thus various scenarios will emerge for enterprises.

The duration of the tripping for an enterprise will depend on the sector and zone in which it operates, and this could result in a V shaped curve or a U-shaped curve or a L shaped curve. Functioning of each enterprise has been hampered due to the lockdown; there is a fall in income for practically every enterprise because of the lock down, likely continuation of a certain stagnation of demand for certain time period will be there in certain sectors, and there will be a revival of demand later for all. Every enterprise will have to assess in which curve they fall. For an enterprise falling in a L shaped curve, because of the sector and zone in which it operates, a long duration of low negligible demand will adversely affect them and all-out effort needs to be made to move to a U-shaped curve by innovative strategies.

One thing good on present date is that the number of mobile telecom subscribers in India as of December 2019 is over one billion, that means practically every working individual, including workers in the informal sector have mobile phone connectivity, though everybody will not have a smart phone. Also, internet usage in India has exceeded half a billion people and is estimated to be over 600 million users in end 2019. Enterprises continued their operations by asking employees to work from home wherever possible. The option of working from home has limitations in the case of manufacturing enterprises, as the input material has to be converted into a finished product, which involves movement and processing of the input material coupled with physical presence cum activity of persons to ensure completion of the operations safely. The present manufacturing facilities in the factories in India are not designed such, that they can operate without the physical presence of people. However, manufacturing enterprises are learning to operate their factories with limited workforce, at the same time ensuring compliance of the safety protocols laid down by the Government arising from Covid-19 pandemic in the country.

Physical distancing norms at work place will impact every enterprise, however the labour intensive enterprises will have a higher negative impact, as either the numbers engaged have to be reduced and/or the working method modified, so as to ensure maintenance of the required physical distance while working. Enterprises functioning in remote areas and small towns will be less impacted for availability of work force, than the ones situated in or near metropolis or large city.

Tackling the situation
Each enterprise in India will have to find its own solution for tackling the situation, as this is a phase of disruption for everybody. However, some things are common which the top management of each enterprise will have to work upon.

Ensure cash availability as top priority for sustainability
Continuously communicate with employees using available technology and if possible, also with their families to boost their morale to face the Covid-19 pandemic situations
Seek the suggestions of employees to tide over the problems
Seek employees, trade unions cooperation to tide over the crisis by continuously communicating with them
Ensure that the workplace of the enterprise is safe for employees to work, ensuring rigorous implementation of protocols and SOP to prevent any spread of Covid-19
Ensure insurance coverage and treatment of employees including contract workforce, if infected with Covid-19
Move to digitisation wherever possible
Move to work from home wherever feasible
Top management of the enterprise needs to ensure visible austerity measures with the need to cut fixed and variable costs wherever possible
Defer capital expenditure unless it is absolutely necessary
Measurement of impact because of this crisis on company’s brand image and reputation
Lessons learnt from this major crisis needs to be documented, so that the same is available for reference by "next set of management" during next major crisis

Conclusion
The business and employment model of enterprise in India post Covid-19 will drastically change compared to the business and employment model pre Covid-19. We all have to adapt to a new lifestyle as well as a different working style of enterprises as the Covid-19 is a tsunami, which has affected the world. It will take time before a vaccine to prevent the spread of Covid-19 is available to all of us.

Enterprises are likely to restructure their fixed as well as variable cost, and this could impact the persons that are presently employed at all levels in certain enterprises. Most enterprise post 1991 in India adopted a work force model wherein the enterprise had people to work and not employees. Hence, most enterprises presently have maximum executives, limited workers, and maximum contract workers through contractors/service providers. Presently in India, the contract workers in most enterprises are interstate migrants. The interstate migrant contract workers presently are making all-out effort to return to their home state by modes of transport that they consider viable, and substantial numbers have moved and will move.

It is a reality that Covid-19 has negatively impacted life, lifestyle of every individual and every enterprise whether in the informal or the formal sector (micro, small medium or large) in India. We, Indians have made all-out effort to ensure that we lose minimum lives of our citizens as our first priority. At the same time, we need to ensure that the enterprises and businesses in the informal and the formal sector while going through the hardship survive and continue to live which I am confident we all will do.

ABOUT THE AUTHOR: Dr. Rajen Mehrotra is Past President of Industrial Relations Institute of India (IRII), Former Senior Employers’ Specialist for South Asian Region with Internation.al Labour Organization (ILO) and Former Corporate Head of HR with ACC Ltd. and Former Corporate Head of Manufacturing and HR with Novartis India Ltd.

E-Mail: rajenmehrotra@gmail.com

Published in April – May – June 2020 issue of Current Labour Reports and Arbiter.

Concrete

Lohia Corp Expands Global Footprint With Acquisitionof J.j. Jenkins Inc and Strategic Joint Venture With Omgm

Published

1 month ago

October 22, 2024

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Lohia Corp Limited (LCL) is pleased to announce two significant milestones that mark our
expansion in the global market.

We have successfully acquired J.J. Jenkins Inc. a respected name in machine manufacturing for
high-tech industries, through our US subsidiary, Leesona Corp, a 130-year-old pioneer in winding
machines. This acquisition aligns perfectly with our strategic vision to expand our specialty yarns
and tapes portfolio in medical and defence applications.

In addition, we have formed a strategic Joint Venture with Italy’s O.M.G.M. sas, leading to the
creation of OMGM Extrusiontechnik Srl. With LCL holding the majority stake. This JV represents
a significant diversification of our product portfolio, introducing solutions in Extrusion and
Winding systems for a variety of technical applications.

These advancements are not just about growth; they’re about bringing cutting-edge solutions to
our customers and contributing to industries that make a difference. Stay tuned for more updates
as we continue to push the boundaries of technology and engineering excellence.

Mr. R K Lohia, Chairman & Managing Director of Lohia Corp Limited, expressed his enthusiasm
about the new ventures “Both these new partnerships are a pivotal move that will broaden our
product offerings and provide our customers with even more choices and will enhance our
presence in the North America and European market, at the same time strengthen our presence
in all other global markets.”

About Lohia Corp Limited
Lohia Corp Limited (LCL) stands as a testament to the power of innovation and commitment to
excellence. As the flagship company of the Lohia Group, LCL has established itself as a global
leader in providing comprehensive solutions for the raffia industry.

With an impressive installation base of over 2,250 extrusion lines and 95,000 Circular Looms
across more than 100 countries, LCL’s influence in the plastic woven fabric and bag sector is
unparalleled. The company’s dedication to quality and efficiency has resulted in an astounding
plastic processing capacity of 7.7 million metric tons per annum of PP & PE.

LCL’s products, ranging from packaging systems for solid bulk materials to roof underlays and
tarpaulins, are not just industrial applications; they are the building blocks of industries
worldwide.

The company’s commitment to sustainability and innovation is the driving force that makes it the
world’s largest producer of machines for the raffia sector. As we look to the future, LCL’s legacy
of excellence is more than just a benchmark; it is a continuous journey towards pushing the
boundaries of possibility.

About J. J. Jenkins, Inc
J. J. Jenkins Inc. is a very respected name based out of North Carolina, USA. They remain at the
forefront of the synthetic fiber and monofilament industries. Their unwavering commitment to
innovation, quality, and customer satisfaction has not only set industry standards but also
fostered enduring partnerships with Fortune 500 companies including some in the medical and
defence industries.

Their holistic approach, combining state-of-the-art technology with unparalleled after-sales
support, exemplifies their dedication to client success. With a vast inventory ensuring rapid
response times, J. J. Jenkins, Inc. is synonymous with reliability and efficiency.

About OMGM sas
Since 1965, OMGM sas is a distinguished Italian leader and has been at the forefront of the plastic
processing industry, pioneering in Monofilament Extrusion, straps, ropes and various other niche
applications. Their commitment to excellence is evident in their advanced technologies and
versatile extrusion lines, handling a variety of materials for diverse industries.

As we look ahead, it’s clear that OMGM Extrusiontechnik Srl will continue to lead and transform
the industry with their precision, innovation, and bespoke solutions. They are more than a
company; they are a trusted partner in progress.

Concrete

Adani acquires Orient Cement at INR 8,100 crore equity value

Published

1 month ago

October 22, 2024

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Acquisition adds 16.6 MTPA capacity (8.5 MTPA operational, 8.1 MTPA Ready to Execute).

Accelerates Ambuja’s journey to achieve 100+ MTPA operational capacity in FY 25

Provides 6 MTPA potential additional capacity in North India, leveraging OCL’s high quality limestone reserves in Rajasthan

EDITOR’S SYNOPSIS

Ambuja enters into a binding agreement to acquire 46.8% stake in Orient Cement Ltd (OCL). The acquisition helps to move towards target capacity of 140 MTPA by 2028.
OCL has an existing 5.6 MTPA clinker and 8.5 MTPA cement operational capacity, 95 MW CPP, 10 MW WHRS, 33 MW Renewable Energy spread across the states of Telangana, Karnataka and Maharashtra. It improves Adani Group’s market share pan-India by 2% in the cement industry.
OCL has secured a concession from Madhya Pradesh Power Generating Company Ltd (“MPPGCL”) to set up 2.0 MTPA Cement GU within the premises of Satpura Thermal Power Station in Sarni, MP.
OCL also has a large high quality limestone mining lease in Chittorgarh, Rajasthan, providing the potential to set up additional 6 MTPA capacity in North India.
The acquisition of OCL complements Ambuja’s existing cement footprint, reducing overall lead distances and logistics costs for the cement business and improving market share in our core markets.
Acquisition will be funded through internal accruals, Ambuja remains debt free.

Ahmedabad, 22 October 2024: Ambuja Cements, the cement and building material company of Adani Cement and part of the diversified Adani Group, today announced the signing of a binding agreement for the acquisition of Orient Cement Ltd (OCL) at an equity value of Rs. 8,100 crore. Ambuja will acquire 46.8% shares of OCL from its current promoters and certain public shareholders. The acquisition will be fully funded through internal accruals.

“This timed acquisition marks another significant step forward in Ambuja Cements’ accelerated growth journey, increasing cement capacity by ~30 MTPA within two years of Ambuja’s acquisition,” said Mr Karan Adani, Director of Ambuja Cements. “By acquiring OCL, Ambuja is poised to reach 100 MTPA cement capacity in FY 25. The acquisition will help to expand Adani Cement’s presence in core markets and improve its pan-India market share by 2%. OCL’s assets are highly efficient, equipped with railway sidings and well supported by captive power plants, renewable energy, WHRS and AFR facilities. OCL’s strategic locations, high-quality limestone reserves and requisite statutory approvals present an opportunity to increase cement capacity in the near term to 16.6 MTPA.”

Mr CK Birla, Chairman of Orient Cement and the CK Birla Group, said, “The CK Birla Group is continuously reallocating capital to sharpen its focus on consumer centric, technology driven and service-based businesses. I take pride in Orient Cement’s impressive track record of building premium brands and maintaining a leading market share in the geographies it operates in. We are confident that the Adani Group, with its strong focus on cement and infrastructure, is the ideal new owner to drive continued growth at Orient Cement for our people and stakeholders”.

Ms Amita Birla, Co-Chairman, CK Birla Group, added, “Orient Cement has a strong market presence, with sustainability initiatives, particularly in renewable energy, being a significant part of its DNA. I am convinced that Ambuja Cements is the right home for all our colleagues at Orient Cement, as well as our customers.”

OCL has 5.6 MTPA clinker capacity and 8.5 MTPA cement capacity along with statutory clearance to increase the clinker capacity by another 6.0 MTPA and cement capacity by another 8.1 MTPA. In addition, OCL also has a limestone mining lease in Chittorgarh for setting up an Integrated Unit (IU) with clinker of 4 MTPA and a split Grinding Unit (GU) of 6 MTPA in North India. OCL has also secured a concession from MPPGCL, Madhya Pradesh for setting up a Grinding Unit within the premises of Satpura Thermal Power Plant. Both these complement the Adani Group’s existing cement footprint. (Refer Annexure – 1 for OCL’s location wise cement capacity and other assets and Annexure – 2 for Adani Cement’s footprint post-acquisition of OCL.)

OCL has recently commissioned a WHRS in Chittapur IU and is in the final stage of commissioning 16 MW solar in Chittapur and 3.7 MW solar in Jalgaon. OCL’s efficient plants, highly motivated teams, strong balance sheet and well-distributed dealer network will be excellent additions to the Adani Group’s existing cement business. OCL’s existing dealers will move to Adani Cement’s market network, creating formidable synergies.

Ambuja plans to optimize OCL’s overall capacity utilization to enhance its cost and competitiveness and improve its operating performance while leveraging the synergies inherent in the existing cement business.

About Ambuja Cements Ltd (ACL)

Ambuja Cements Ltd is one of India’s leading cement companies and a member of the diversified Adani Group – the largest and fastest growing portfolio of diversified sustainable businesses. Ambuja, with its subsidiaries ACC Ltd, Penna Cement Industries Ltd and Sanghi Industries Ltd, has taken the Adani Group’s cement capacity to 88.9 MTPA, with 20 integrated cement manufacturing plants, 20 cement grinding units and 12 bulk terminals across the country. Ambuja has been recognized among ‘India’s Most Trusted Cement Brand’ by TRA Research in its Brand Trust Report, 2024 and among ‘Iconic Brands of India’ by The Economic Times. Ambuja has provided hassle-free, home-building solutions with its unique sustainable development projects and environment-friendly practices since it started operations. The company has many firsts to its credit – a captive port with six terminals that facilitates timely, cost-effective and cleaner shipments of bulk cement to its customers. Its innovative products like Ambuja Cement, Ambuja Plus, Ambuja Compocem and Ambuja Kawach are now listed in the GRIHA product catalogue. These products not only fulfil important customer needs but also help in significantly reducing their carbon footprints. Being a frontrunner in sustainable business practices, Ambuja Cements ranks among ‘India’s Top 50 companies contributing to inclusive growth’ by SKOCH and ‘India’s Top 50 Most Sustainable Companies’ Cross-Industry by BW Businessworld.

For further information on this release, please contact: roy.paul@adani.com

Annexure -1 | Existing Cement Assets of Orient Cement Limited

Plant	Clinker (MTPA)	Cement (MTPA)	CPP/WHRS/Solar	Railway Siding
Devapur IU, Telangana	3.5	3.5	CPP – 50 MW	Yes
Chittapur IU, Karnataka	2.1	3.0	CPP – 45 MW WHRS – 10 MW Solar – 16 MW*	Yes
Jalgaon GU, Maharashtra	–	2.0	Solar – 13.5 MW+ 3.7 MW*	Yes
Operational Capacity	5.6	8.5

* capacity is in commissioning stage

Annexure – 2 | Footprint of Adani Group – Cement business post OCL Acquisition

Economy & Market

Fornnax Announces a Major Launch With Sr Max Series: Sr-max2500 Primary Shredder a Revolutionary and Game-changer

Published

1 month ago

October 18, 2024

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Fornnax, a renowned shredding and recycling equipment provider with years of experience in designing and developing SR-Series dual shaft shredders, has unveiled its advanced level SR-MAX2500 shredder specially designed for the Municipal Solid Waste category.

The launch was held IFAT India 2024, a most prestigious event in the waste management industry, on October 16th, 2024, at the Bombay Exhibition Centre in Mumbai.

Fornnax’s successful track record of developing many proven machines for different types of tires, ferrous and non-ferrous metals, which are the most difficult applications has made them a pioneer in the shredding and recycling equipment manufacturing global market over the decade now. The design of the SR-Series machine, a legacy that has prevailed for over a decade, continues to be used in the design of SR-MAX series machines. The advanced SR-MAX2500 shredder features high capacity, modern engineering, and innovative technology.

The remarkable event was inaugurated by Mr Ulhas Parlikar, Ex-Director of Geocycle India; Mr Sanjay Shripatrao Katkar IAS (Municipal Commissioner and Administrator) MBMC; Mr Sharad Nanegaonkar Executive Engineer (Water Supply and Sewerage Department) MBMC; Mr Deepak Khambit (City Engineer) MBMC; Mr Jignesh Kundaria CEO & Director of Fornnax Technology Pvt. Ltd.;

Mr Manoj Kumar Sure, JK Cement Head AFR; Mr Manoj Kumar Modha, Director of Millennium Multi Trade Pvt. Ltd.

Jignesh Kundaria, CEO and Director of Fornnax, shared insights into their newly launched innovation, “With the SR-MAX2500, we’re poised to transform the waste management landscape in India and beyond. Our goal is to line up municipal waste recycling industries with a robust, efficient, and sustainable solution. Our commitment to sustainability and enhancing recycling process is a step forward towards achieving PM’s vision of a Net Zero emissions future by 2050.”

Revolutionizing Waste Reduction: The SR-MAX2500 Advantage We’re excited to introduce the Fornnax SR-MAX2500, a revolutionary primary shredder designed for efficient volume reduction of diverse materials. This high-capacity machine boasts advanced modern engineering and technology, featuring hydraulic motors driving each shaft for optimal power and torque. Its unique cutter design, replaceable cutting table, and shaft design make it an ideal solution for various applications.

Waste Management Reimagined! SR-MAX2500 Primary Applications Our primary focus for the SR-MAX2500 is serving large-scale municipal waste recyclers, cement plants, waste-to-energy plants, mechanical biological treatment facilities, materials recovery centres, construction and demolition recyclers, aluminium recyclers, and other applications requiring highcapacity machines and robust technology.

The SR-MAX2500’s Impressive ROI Streak The SR-MAX2500 offers several commercial benefits, including increased efficiency, reduced operational costs, and enhanced productivity as it is specially designed for the Indian market. Its robust design and advanced technology ensure minimal downtime, maximizing profitability for our customers. Additionally, our commitment to quality and reliability helps build long-term relationships with clients, fostering loyalty and repeat business.

Innovation Meets Efficiency: Why Choose the SR-MAX2500? Fornnax has carved out a distinctive niche in the highly competitive market and its relevance stems from a unique, tailored approach that addresses specific needs. Thus, the SR-MAX2500 shredder differentiates itself through its versatility, catering to a diverse array of waste management and user needs, specifically designed for Indian waste, which is highly contaminated compared to global waste. Additionally, our unwavering focus on innovation, quality, and customer-centricity sets us apart from competitors and establishes our position in the market.

Turning Trash into Treasure with MSW Waste As you see due to the rapid urbanization and over population, India is among the world’s top 10 countries generating municipal solid waste (MSW) and generates around 62 million tons of waste in a year. Therefore, it is extremely critical to prioritize recycling and conversion of MSW into RDF fuel. Cement industry, which uses a significant amount of coal. Cement industries substituting coal with RDF or alternate fuel to reduce the greenhouse gas emissions, conserve natural resources like coal and more and ultimately minimise the waste disposal issues.

Fornnax’s Exceptional Contribution to India’s Sustainability Goals India has made significant strides in waste management and recycling, and with continued investment, innovation, and policy support, there’s no doubt it can achieve its goals. Fornnax is committed to contributing to India’s sustainability and waste management journey through their advanced recycling solutions, supporting the country’s transition to a more circular and environmentally conscious economy.

Fornnax’s Unwavering Commitment to R&D and Innovative Solutions Fornnax stays updated with global advancements in recycling technology and sustainability practices through several key strategies, such as we invest heavily in research and development to ensure our equipment are at the forefront of technological innovation. Our team closely monitors industry trends, emerging technologies, and regulatory changes to identify potential opportunities for improvement. We also actively seek feedbacks from our valued clients to understand their evolving needs and challenges. This input helps us identify areas where we can boost our meet market demands.

Expanding Horizons: Fornnax’s Growth Plans for the Year Ahead The SR-MAX2500 launch is a strategic step towards expanding our market presence and strengthening our position as a leading shredder manufacturer around the globe.

Also, we are optimistic about the coming year, driven by the growing demand for sustainable waste management solutions and the increasing awareness of environmental issues. We are actively investing in equipment enhancement, engineering, and strengthening our partnerships to meet the evolving needs of our customers. Fornnax’s focus areas for the next year include expanding the manufacturing capacity to meet the rising demand and we already started working on it by acquiring 23-acre land parcel in Ahmedabad, Gujarat. The new site is expected to become operational by March 2025. Its focus will be on producing high-capacity machinery applicable in tyre, cable recycling, ewaste, metal processing and more.

About Fornnax FORNNAX is one of the world’s leading shredding and recycling equipment manufacturers, offering Primary shredders, Secondary shredders and Granulators for tyres, municipal solid waste, cables, e-waste, aluminium and many other industrial applications. Quick after-sales services that increase our customer’s uptime and productivity.

We are committed to shaping the landscape for sustainable recycling solutions in the future. Because we’re not just selling equipment, we’re building business. That’s what we believe. That’s who we are. Fornnax Equipment is built with the idea that the simple, most significant and heaviest is better. Our equipment is an evolution of advanced products designed for the challenges of the recycling world.

The global sales partner network makes us successful worldwide. Our corporate culture is based on our history of providing value to our customers’ success worldwide. This motivates our employees to work together, develop innovative products, and produce high-quality equipment.