Economy & Market

If we are provided a level playing field, we can compete with most cement producers

Published

5 years ago

October 14, 2021

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Alok Sanghi, Director of Sanghi Industries

There are three major areas which we are concentrating on: logistics, energy efficiency and balancing the finance cost. This will help us cope with the reduced demand, and at the same time, help maintain profitability, says Alok Sanghi, Director, Sanghi Industries, in a chat with ICR. Sanghi shares his views on the current scenario of the cement industry, the strategies of the company. Excerpts from the interview.

How do you assess the current scenario regarding the Indian cement industry?

Currently, the cement industry is going through a somewhat challenging phase. There is oversupply in the market. The demand rate is also slowing down, putting some supply pressure and price pressure on the cement. We believe that this will continue for another year after which things will start improving; if the government policies take off, the demand should improve faster. The supply- demand mismatch should reduce this year and possibly by 2015, we should see it become equal. As far as we are concerned, the earlier capacity utilisation was 90 per cent. However, in the last couple of years, the ultilisation has come down to 72 to 73 per cent.

Has the slump in demand affected your performance?

Till 2009, we focused on capacity expansion. As there is already an over- capacity, it is illogical to increase capacity further. So our focus is more on cost reduction. There are three major areas which we are concentrating on: logistics, energy efficiency and third is balancing finance. This will help us cope with the reduced demand, and help us maintain profitability.

How has the company kept pace with the latest technologies?

The technology does not change all that rapidly in heavy industries. The only thing is, we need to keep upgrading the efficiency level within our plant, which is what we are doing. The technological advancement which has happened is in the product range. Instead of selling OPC which was the norm earlier the companies are now diversifying into blended cement. So they are making PPC, slag cement, and various other range of blended cement. All this really helps reduce the carbon footprint and achieve the path of sustainability.

What are the sustainability initiatives taken by Sanghi Industries?

We use fly ash generated from the thermal power plants and also use waste from steel plants. By manufacturing blended cements, we are adding to the sustainability of the country. We are one of the few companies in the country using the most eco-friendly mining technique. Instead of drilling and blasting, we use surface miners which have near zero pollution and have dust free emission techniques. Moreover, surface miners help reduces noise pollution. We operate in the region of Kutch where we face a lot of water scarcity, and we have promoted rain water harvesting there.

What are the measures taken by the company to maintain the standard and quality of the cement produced?

Most cement plants have a technical lab and are equipped with the latest technologies to test the product. Since BIS is mandatory in the cement industry, most of the companies maintain the standard. However, we use advanced processes; our equipment vendors are one of the best in the country, in the world. We have an X-ray analyser, a robotic lab, and various other facilities which allow us to maintain quality. We are authorised to sell our product in the European and African markets, thanks to our stringent quality control policies that get upgraded every year.

What was the motive for erecting Terminal C near Navlakhi Port?

The C Terminals are always closer to the markets and that helps give better service. It also helps us to have better control of the freight cost. In a nutshell, investing in the C Terminal helps reduce costs considerably. Wherever we have invested in C terminals we have saved about 20 per cent of costs. So we are very confident about this strategy. The sea route will be used to cost-effectively increase our geographical reach and grow our markets. At present, the company is serving Gujarat, Rajasthan, Madhya Pradesh and Maharashtra. The focus is to expand in the central and western regions, and in the coastal states.

What are challenges facing the cement industry currently?

The greatest challenge today is managing the demand-supply mismatch. The spiralling raw material costs, including coal and diesel, are other major challenges. The rise in the price of coal is due to the depreciating rupee, which is why we need to invest more in energy-efficient equipment.

What support would you require from the government at the policy level?

The excise duty on steel is just four per cent whereas for cement it is 12 per cent. My question is why should there be such a difference in excise duty between two building materials which are used for the same purpose? Ultimately, the cost of housing is increasing because of the increase in taxes. If you look at the ex- factory cost of cement and if you add the taxes which we are paying, it is equivalent to the luxury goods; and cement is essential goods. So I think the government really needs to focus on how they can reduce the cost of cement, either by reducing the royalties, or reducing the excise duty, VAT, etc.. As per my view, the most important thing the government can do is to increase the percentage spent on infrastructure development. For example, China spends almost 12 per cent of its GDP on infrastructure development whereas India spends less than 5 per cent of its GDP. So if the government increases its infrastructure spend, it will automatically have a huge impact on the demand for cement and that obviously will help in capacity utilisation.

There seems to be lot of demand for Pakistani cement. The general perception is that it is of better quality and cheaper too. What is your take on this?

I completely disagree with this. Pakistani cement is no way cheaper than Indian cement. It is the taxes that you pay that make the difference. When you import cement, the amount of taxes you are paying is less than what an Indian cement producer is paying. The government is giving a subsidy to Pakistani cement in form of exemption of taxes. Indian cement manufacturers are not permitted to sell cement in Pakistan, so should our government provide subsidy to cement manufacturers from Pakistan? Whatever facilities or provisions are being provided by the Pakistani government should be reciprocated by the Indian government. Or let us say, even if you are allowing Pakistani cement to come into India, put them on a level playing field; peg them at the same tax levels which we are subjected to, and then I don’t think there will be any problem in competing. But let me also tell you, the world over, we are competing with Pakistani cement, Iranian cement… Thailand, Malaysia, China, Japan etc. Indian cement quality is one of the finest in the world and is therefore widely accepted across the world. We are one of the largest exporters; and the technology we use is the latest in the world. So if we are provided a level playing field, we can compete with most cement producers.

Brief us about the company’s future plans.

We are not focused on expansion, since the companies are already on an expansion mode but are interested in ensuring that we are more profitable; thereby, the company is focused on reducing its debt, energy consumption and improving its logistics cost. These are the three focus areas for the company. However, to sell its additional volumes, we are looking at expanding our market. We are also opening up some markets in the south and going to MP.

Are there any acquisitions on the cards?

No, nothing really. We don’t have any plans to either acquire or diversify from cement as of this moment. The next two years will be a consolidation phase for the cement industry and we are very keen to remain in this business. I believe it is ultimately survival of the fittest. You must survive this downturn to even consider expansion and things like that.

Concrete

Nuvoco Vistas, CleanMax Partner for Wind-Solar Hybrid Project in Rajasthan

Published

1 week ago

September 29, 2026

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The project – comprising 20 MW of wind and 26.4 MWdc of solar capacity – will support Nuvoco’s cement operations with cleaner power while strengthening its renewable energy and decarbonisation strategy.

Mumbai, September 29, 2026

Nuvoco Vistas Corp Ltd, part of Nirma Group and one of India’s leading cement companies, has partnered with Clean Max Enviro Energy Solutions Limited (CleanMax), a renewable energy solutions provider for the commercial and industrial (C&I) sector, to develop a 46.4 MW wind-solar hybrid renewable energy project in Rajasthan.

The project will support Nuvoco’s cement operations with cleaner power while strengthening its renewable energy and decarbonisation strategy. It is expected to increase the share of renewable energy in Nuvoco’s power mix, reducing fossil fuel consumption and associated emissions.

Developed by CleanMax, an Independent Power Producer (IPP), at Bhikamkhore, Rajasthan, the project will comprise 20 MW of wind capacity and 26.4 MWdc of solar capacity, along with a 2-MWh Battery Energy Storage System (BESS). Power generated from the facility will be supplied to Nuvoco through the State Transmission Utility (STU) Open Access network.

The hybrid project is expected to generate approximately 100 million units (MU) of renewable electricity annually and help avoid around 1,25,485 tonnes of CO₂ emissions every year across Scope 1 and Scope 2 emissions.

The initiative supports Nuvoco’s ongoing efforts to reduce the carbon intensity of its manufacturing operations through renewable energy adoption, Waste Heat Recovery Systems (WHRS), energy-efficiency measures and increased use of alternative fuels. It also aligns with the company’s DIRE (Digitalisation, Innovation and Renewables) agenda, which focuses on climate action, renewable energy transition, water stewardship, circularity and biodiversity conservation across its manufacturing ecosystem.

Commenting on the initiative, Jayakumar Krishnaswamy, Managing Director, Nuvoco Vistas Corp Ltd, said, “This marks an important step in advancing Nuvoco’s journey towards more sustainable and resilient operations. Our collaboration with CleanMax will increase the share of renewable energy across our Rajasthan operations, strengthening our energy mix while improving long-term cost efficiency and reducing our dependence on conventional power sources. Initiatives such as these reinforce our commitment to operational excellence and responsible growth, while supporting our vision of Building a Safer, Smarter and Sustainable World.”

Kuldeep Jain, Founder and Managing Director, CleanMax, said, “Cement plants run continuously, so the power behind them has to be dependable for decades, not years. We’re seeing manufacturing industries view clean energy as an integral part of their core operations and long-term strategy. Our partnership with Nuvoco reflects that shift, and we’re pleased to support its decarbonisation journey. This wind-solar hybrid project is designed to deliver long-term cost certainty while supporting the Company’s transition to cleaner power.”

Nuvoco has been advancing its sustainability initiatives through renewable energy, operational efficiency and technology-driven solutions. The company operates across Cement, Ready-Mix Concrete (RMX) and Modern Building Materials (MBM) segments, with a presence across East, North and West India.

The company began operations in 2014 with a greenfield cement plant in Nimbol, Rajasthan, and later acquired Lafarge India Limited, which entered India in 1999, along with Emami Cement Ltd in 2020 and Vadraj Cement Limited in April 2025. With planned expansion initiatives, including a new grinding mill at the Arasmeta Cement Plant and multiple debottlenecking projects, Nuvoco aims to achieve a cement capacity of 35 MMTPA.

The company reported total income of Rs 113.62 billion in FY 2025-26, reflecting its continued growth trajectory. Its cement portfolio includes Concreto, Duraguard, Double Bull, PSC, Nirmax and Infracem brands, while its RMX business offers products under Concreto, Artiste, InstaMix, X-Con and Ecodure brands. Nuvoco also provides construction solutions under its Zero M range of modern building materials.

Concrete

UltraTech Cement achieves 100% green energy milestone at Chhattisgarh plant

Published

1 week ago

September 29, 2026

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UltraTech Cement’s Kukurdih Works becomes its first integrated unit to meet 100 per cent electricity needs through green energy every month.

Raipur (Chhattisgarh)

UltraTech Cement Limited, the world’s largest cement company outside China, has achieved a significant decarbonisation milestone, with its Kukurdih Cement Works integrated unit in Chhattisgarh meeting 100 per cent of its electricity requirement through green energy every month since April 2026.

Commissioned in 2024, Kukurdih Cement Works has an installed grey cement capacity of 3.3 million tonnes per annum. The unit achieved this milestone through a combination of renewable power sourcing and Waste Heat Recovery Systems (WHRS), which now collectively meet its entire electricity demand while ensuring operational reliability.

Since April 2026, nearly one-third of UltraTech’s 76 manufacturing units in India have maintained green energy utilisation above 50 per cent of their electricity requirements. Five units, including Kukurdih, have exceeded 95 per cent green energy utilisation. The company is also progressively deploying Battery Energy Storage Systems (BESS) across its network to enable deeper renewable energy integration.

As part of its decarbonisation strategy, UltraTech has not invested in additional captive thermal power capacity for greenfield projects or brownfield expansions at its integrated units for over a decade.

As of Q1FY27, the company’s captive green energy capacity stood at 1,897 MW, comprising 1,463 MW of renewable energy capacity from solar, wind and hybrid sources, along with 434 MW of WHRS capacity. Under its RE100 commitment, UltraTech aims to increase the share of green power in its total energy mix to 85 per cent by 2030 and achieve 100 per cent by 2050.

UltraTech Cement Ltd, the cement flagship company of the Aditya Birla Group, is a $10-billion building solutions company and the largest cement producer globally by sales volume outside China. The company has a total grey cement capacity of 210.1 MTPA and white cement/putty capacity of 3.5 MTPA. It is a signatory to the GCCA Climate Ambition 2050 and has committed to the Net Zero Concrete roadmap announced by GCCA.

Economy & Market

From First Mile to Last Mile

Published

1 week ago

September 28, 2026

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Praveen Vashistha, Founder, Gxpress Solutions, speaks about building a holistic logistics network that encompasses latest technology and current challenges faced by logistics service providers.

Logistics may seem to only entail transporting a package from one location to another. However, there is more to this term than just that. Logistics refers to the entire process of controlling all movement, transfers and decisions in the correct way at the right time and cost and with the desired level of visibility.

People nowadays want to receive more than just the delivery. They want quick, efficient, reliable and transparent logistics service. On the other hand, companies are facing higher operating costs, broken supply chains, congested cities, changing habits of consumers and growing complexity of logistics services. In this situation, a full logistics package is gaining importance not only as a competitive advantage but also as a necessity for a successful business.

The main challenge lies in uniting the first mile, the middle mile and the last mile into one seamless process.

The journey begins before the package moves

First-mile logistics may be the least recognised part of the logistics chain, but they have a crucial influence on all that follows.

This stage starts from the moment the shipment leaves the manufacturer, supplier, farm, warehouse or distribution centre. Depending on the industry, first-mile logistics may involve grouping shipments from multiple suppliers, compiling paperwork and checking the inventory before sending the shipments to a central hub.

Flaws in first-mile logistics produce effects later down the supply chain. Delays in cargo pickup can affect warehouse operations; improper packaging can damage goods in transit; and incorrect inventory information may cause stockholding or unnecessary replenishments.

This is why building a reliable network involves simplifying the operations done at the beginning of the supply chain.

Companies require accurate demand forecasts, supplier visibility, standard procedures, and software to capture information from the moment a shipment enters the supply chain. Route planning and fleet management are also important at this stage, especially as it may involve contacting multiple suppliers.

The main goal is simply to make the first mile predictable.

The middle mile: Where scale meets complexity

When products leave the original site, they travel through the ‘middle mile,’ which connects fulfilment centres, warehouses, sorting centres, and regional distribution points. In this phase, logistics networks begin operating on a large scale. A shipment can pass through several facilities before reaching the final destination. Each additional transfer entails the risk of delay or damage and information losses. Accordingly, the ideal solution is not to minimise the number of transfers but rather to optimise them. The use of hub-and-spoke networks, regional distribution centres, and strategically placed distribution centres can help companies shorten transportation routes and optimise distribution costs. Besides, data can be used to determine the optimal placement of inventories.

For instance, a retailer may find that it takes more time and is more expensive to deliver goods to customers if everything is stored in a central warehouse. Meanwhile, regional distribution helps meet the customer’s needs quicker and more efficiently.

The last mile is where the customer judges you

When it comes to the logistics experience, the customer experience comes down to the delivery. While the last mile might comprise a small part of the entire journey in actual distance, it could also entail expensive and difficult processes. Delivery runs through densely populated cities, through traffic jams, through unsuccessful delivery attempts, and through changing consumer preferences and narrowed time frames.

Customers want to have control over their delivery. Delivery means that customers expect to know the exact moment when their order is delivered. They need to receive current updates about their orders and the ability to decide whether they want scheduled deliveries, or whether they want their order to be dropped off at a designated location far from their house.

As a result, last-mile logistics must incorporate both efficiency and experience. The technology may be used to ensure timely and accurate delivery, through such products as route optimisation and real-time delivery tracking.

However, technology is not enough to guarantee success in terms of last-mile delivery. Knowledge of the local area is still an important aspect that contributes to successful delivery.

One network, not three separate operations

First, the common mistake that organisations can make is treating the first mile, the middle, and the last mile separately.

An effective first mile of logistics does not matter much if the shipment waits in a hub for many hours. A perfectly working warehouse does not make a happy customer if the last-mile delivery fails. Therefore, even the fastest last-mile delivery can become an expensive operation if the supply is not well geographically positioned.

The three moments should work together as one whole system.

This implies having a common view on inventory, transport capacities, shipment statuses and demand. The Transportation Management System, Warehouse Management System and order management system should give information to each other instead of acting like separate islands.

That is where real-time information comes into play!

If something happens, such as a vehicle gets delayed, the company has to know that from the start. If not, someone from Customer Service should be informed about the situation.

Visibility is the new infrastructure

Previously, companies had to rely on physical assets, such as warehouses, trucks, and sorting facilities, to create their logistics networks. Today, they have an additional layer of technology providing visibility.

Command-and-control systems now include GPS tracking, Internet of Things devices, bar-coding, RFID, cloud computing, artificial intelligence, and analytics, which allow companies to know what the goods are doing, how well they are doing, and what is going to happen next.

Predictive analytics reveal possible delays. AI-powered forecasting increases availability. Digital dashboards enable the manager to monitor all operations in one place. The efficiency of such technologies is not measured in the amount of information they gather, but rather in their capability of converting data into knowledge.

Logistics managers should be able to answer the following questions: Where is it? When is it supposed to arrive? What causes the delay? What impact does it have? Can it be delivered some other way? How much will it cost?

The sooner the answers are given, the more resilient the logistics system is.

Resilience must be designed into the network

The events of recent years have highlighted the vulnerability of interconnected supply chains. Geopolitical tensions, bad weather, a lack of labour, poorly developed infrastructure and an unexpected spike in demand are some events that can cause problems for logistics systems without prior notice. Thus, companies should create an end-to-end network not just for normal times but also capable of functioning quickly in problematic situations. In order to create such a network, it is necessary to find alternative suppliers, use several means of transportation, create several routes of delivery, and establish inventory. It is also important to use scenario planning to define what to do if the main hub becomes unavailable or any means of transportation is blocked.

Sustainability: Part of the delivery equation

The future of logistics will also be shaped by environmental considerations.

As delivery volumes rise, businesses are under increasing pressure to reduce emissions without compromising service. Better route planning, load optimisation, electric vehicles, alternative fuels, renewable-energy-powered warehouses and consolidated deliveries can all contribute. The most sustainable shipment is often the one that does not require unnecessary movement in the first place.

Better demand forecasting and inventory placement can reduce empty miles and avoid repeated transportation. Consolidating deliveries can improve vehicle utilisation. Reverse logistics can ensure that products, packaging and materials return efficiently instead of becoming waste.

Sustainability, therefore, should not be treated as a separate initiative. It should be incorporated into network design itself.

The future belongs to connected logistics

An end-to-end logistics network ultimately seeks to close existing gaps between various processes.

Every mile of the process should be interconnected with the other miles. Warehouses should be aware of the restraints imposed by transportation. Delivery crews should be able to know at every moment the inventory at their disposal. Clients must have access to this useful information.

Companies that will be successful in this area will not necessarily be the ones with the biggest fleets or the most warehouses. They will simply be the ones that can employ their resources in the most effective manner.

The future of logistics will be represented by an ecosystem consisting of the combination of the physical aspect, digital intelligence, and personnel decisions. Every mile in the process of delivery is important. However, the key advantage here is getting those miles to work together.

For companies, it means having minimal resistance, enhancing their efficiency and improving customer care. For clients, it means simply having the right product delivered at the right time.

About the author: Praveen Vashistha, Founder, Gxpress Solutions,