Economy & Market
Logistic Challenges in India
Published
5 years agoon
By
admin
The dwindling economy of the country has posed serious challenges to the logistics industry. Umesh Shetty, Executive Director, Allcargo Logistics, takes a look at the current market scenario and is optimistic that the right policy can give a much-needed boost to the cement sector.
India’s economy has seen some of the toughest times over the last two years in terms of its economic growth. All key macro-economic variables have been under tremendous stress, from domestic manufacturing, exports, heavy dependence on imports, especially fuel, inflation, currency fluctuation and the policy logjam. These challenges were severely fuelled by the global economic gloom and monetary crunch. Given India’s demographic and economic proximity to global markets, the country has faced major challenges in sustaining its past growth, too. In retrospect, it seemed impossible that India could get in this situation in such a short period of time, but that is what exactly has happened to the economy, contrary to all expectations.
However, the bright side of the story is that India’s opportunity is here to stay. The country is still the second largest developing market in Asia just after China. More than fifty per cent of its population is below the age of 35 years. Thus, this segment of the market is a huge base for consumption of domestic and global products. For instance, this is evident from the fact that mobile phones has seen the fastest penetration in the Indian market over the last few years with more than forty five per cent of the population owning a mobile phone. Over a hundred mobile companies are presently selling numerous varieties of handsets to Indian consumers. The growth of the automobile market, especially two and four- wheelers, has seen one of the most rapid rise in terms sales and market development. The real estate market is also one of the most important indicators of a country’s growth. In India, this segment has seen one of the fastest growth in terms of per unit cost of properties. Domestic consumption of property is the major chunk of this market. Although the real estate market is also facing a cyclic down curve, the demand and shortage of supply situation seems here to stay.
Typical of a developing economy, India’s high dependence on imports such as oil will be a factor prominent in our growth for decades to come, as the country utilises this raw material for producing finished products which are either exported as well as consumed domestically. Underlying in our economic environment are some of the core sectors which drive new growth, development, employment and investments, sectors such as power generations, exploration of oil and gas, alternative energy generations, development of urban infrastructure, development of ports and transportation mediums.
All policy decisions devoid of emphasis on these core sectors will always fall short of its objectives. These sectors have the potential to rejuvenate our economy into a hyper growth drive, if the policy machinery uses these sectors as an asset and initiate transparent effective plans to implement these projects into the economy.
Logistics infrastructure
This is India’s biggest challenge as well as the largest opportunity. One that is crucial to our economy and particularly for trade will be the logistics infrastructure of our country. It poses the biggest challenge to our sustained growth as well as the largest opportunity to rise as an economic powerhouse. The competitive economies of China, Singapore, Dubai or even European countries have always had the advantage of world class roads, rail connectivity, ports, warehouses, best in class supply chain, etc, while competing with BRIC economies. India has always had to play catch- up. Our economy is driven by the mindset that infrastructure is second fiddle rather than the most critical component of growth. But due to globalisation and integration of trade agreements, that mindset has seen rapid change over the last few years. Thus, today infrastructure development has become one of the topmost priorities of the government in kick-starting the economic engine again. This is evident from the fact that the Prime Minister’s office is aggressively pushing for infrastructure development plans to be implemented as a priority. Given India’s unique demography and over 7,000 odd kms of coastline, the country needs strategic infrastructure to propel growth and act as a catalyst to reduce the cost of doing business in India, as compared to other regional economies, especially China.
Cement industry
This is the driving force of India’s infrastructure. Our country’s growth story will not be complete unless we take into account the crucial ingredient of infrastructure development, which is cement. All the above core infrastructure projects would need cement as a basic material for managing and completing mega projects. Thus, policy framework for boosting growth for this particular sector is also crucial from a macro perspective. A report titled ‘Indian Cement Industry Outlook 2015` from RNCOS, a leading industry research and consultancy firm, has estimated that the total installed capacity of cement in India will increase with a compound annual growth rate (CAGR) of around seven percent during 2012-13 to 2014-15. The production of cement has increased at 10 per cent CAGR over FY07-11. The market size of the industry is expected to grow to reach 550 MTPA by FY20. The cement companies in India are receiving full attention from the private equity firms for funding their business plans.
India’s cement sector currently stands at an overall capacity of 350 MTPA. As per the 11th Five Year Plan (2007-12), the industry added 120 MT of new capacities and is expected to reach close to 470 MT by 2017. As per the Department of Industrial Policy & Promotion (DIPP), the cement and gypsum products sector has attracted foreign direct investments worth US$ 2,656.29 million between April 2000 to June 2013.
During the 12th Five Year Plan period (2012-17) the industry is estimated to add a capacity of 150 MT. Giving impetus to the market, the Government of India plans to roll out public-private partnership (PPP) projects worth Rs 1 trillion (US$ 16.33 billion) over the next six months. The Principal Secretary in the Prime Minister’s Office (PMO) will monitor these projects.
New trends in supply chain
Coastal shipping could be the major medium of transportation. There are two critical challenges in front of the cement industry- the volatile fuel costs and protecting the environment. Given India’s unique demography, coastal shipping and inland waterway is the best and the most eco-friendly medium of transportation as compared to road or rail. Waterways emerge to be preferred options primarily due to the sub-optimal condition of our roads across the country.
Another important factor is the constant hike in fuel prices leading to frequent escalation of transport charges. Speaking about rail as a medium, the lack of integrated rail connectivity from sourcing locations to plants and then from plants to last mile distribution, is a considerable challenge for creating efficiencies in logistics of cement in India. This mode will be crucial in its ability to leverage the opportunity, given that it is expected that India needs about US$ 1 trillion from 2012-13 to 2016-17 to fund infrastructure such as ports, airports and highways to boost growth, thereby promising a good outlook for the industry. At Allcargo Logistics, we have already seen many of our coastal shipping customers preferring transportation of commodities like cement through waterways, to optimise their investment in these though economic conditions and also for the timely movement of their cargo.
Umesh Shetty, Executive Director, Allcargo Logistics,
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Dalmia Bharat Acquires Jaiprakash Associates Cement Assets for ₹2,850 Crore
Published
5 days agoon
May 25, 2026By
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Dalmia Cement executed a Business Transfer Agreement with Jaiprakash Associates and Adani Infra, to acquire 5.2 MnTPA of cement capacity across Madhya Pradesh and Uttar Pradesh.
Dalmia Cement (Bharat) announced on May 22, 2026 that it had signed a Business Transfer Agreement with Jaiprakash Associates Limited and Adani Infra (India) Limited for the acquisition of cement plants located at Rewa in Madhya Pradesh and Churk, Chunar and Sadwa in Uttar Pradesh. The deal was struck at an enterprise value of ₹2,850 crore and is expected to close within two weeks of execution.
The acquired assets from Jaiprakash Associates include 5.2 MnTPA of cement capacity and 3.3 MnTPA of clinker capacity. The package also covers 99 MW of thermal power capacity and railway sidings at Rewa, Chunar, and a common siding at Churk. This infrastructure gives the acquisition immediate operational utility beyond just production tonnage.
The transaction has a long backstory. Dalmia Cement had originally entered into a framework agreement with Jaiprakash Associates in December 2022, covering the sale of these business assets along with a long-term clinker supply arrangement. However, before the deal could be completed, Jaiprakash Associates was admitted to insolvency proceedings under the Insolvency and Bankruptcy Code. The earlier agreements could not be consummated as a result.
In an official statement, Puneet Dalmia, Managing Director & CEO, Dalmia Bharat, said, “I am very excited about addition of these assets in our portfolio. This serves as a great strategic fit for Dalmia. It helps us move forward in our journey to be a pan India player and provide a strong head start to serve the high potential markets in Central region. I am optimistic that the expansion potential of these assets along with close proximity with Dalmia’s captive mines will help us create a capacity hub for the future”.
Following the approval of Adani Group’s resolution plan for Jaiprakash Associates under the IBC framework, Dalmia approached the new management to revive discussions. The fresh Business Transfer Agreement was executed to settle all pending disputes, legal proceedings, and arbitration matters arising from the original framework agreement with Jaiprakash Associates.
Expanding market reach
Dalmia added, “Our familiarity with these assets under the earlier tolling arrangement gives us a deep understanding of the facilities and helps us establish strong connect with channel partners and vendors. We believe that this will help us in faster ramp up of capacities and quicker inroads into the market. As we look forward, I am very confident that we will be able to leverage the strengths of Dalmia to operate these assets in a manner where we can maximise value creation for all our stakeholders.”
With the addition of these plants, Dalmia Bharat’s total installed cement capacity will rise to 54.7 MnTPA upon consummation. The company has further expansion projects underway at Belgaum, Pune, and Kadapa, which are expected to take overall capacity to 66.7 MnTPA by Q2 to Q3 FY28.
The Central India location of the Jaiprakash Associates plants gives Dalmia Bharat faster access to markets in Madhya Pradesh and Uttar Pradesh than a greenfield build would have allowed. The company also cited debottlenecking and brownfield expansion as near-term opportunities at the acquired sites. Dalmia Bharat said the assets were expected to contribute positively to EBITDA and overall returns, given the pricing environment in the region and the company’s cost structure.
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PROMECON introduces infrared-based tertiary air measurement system for cement kilns
Published
1 week agoon
May 20, 2026By
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The new solution promisescontinuous, real-time tertiary air flow measurement in cement plant operations.
PROMECON GmbH has launched the McON IR Compact, an infrared-based measuring system designed to deliver continuous, real-time tertiary air flow measurement in cement plant operations. The system addresses the longstanding process control challenge of accurate tertiary air monitoring under extreme kiln conditions. It uses patented infrared time-of-flight measurement technology that operates without calibration or maintenance intervention.
Precise tertiary air measurement is a critical requirement for stable rotary kiln operation. The McON IR Compact is engineered to function reliably at temperatures up to 1,200°C and in the presence of abrasive clinker dust. Its vector-based digital measurement architecture ensures that readings remain unaffected by swirl, dust deposits or drift. Due to these conditions conventional measurement systems in pyroprocess environments are often compromised.
The system is fully non-intrusive and requires no K-factors, recalibration or periodic readjustment, enabling years of uninterrupted operation. This design directly supports plant availability and reduces the maintenance overhead typically associated with process instrumentation in high-temperature zones.
PROMECON has deployed the McON IR Compact at multiple cement facilities, including Warta Cement in Poland. Plant operators report that the system has aided in identifying blockages, optimising purging cycles for gas burners, and supplying accurate flow data for AI-based process optimisation programmes. The practical outcomes include more stable kiln operation, improved process control, and earlier detection of process disturbances.
On the energy side, real-time tertiary air data enables reduction in induced draft fan load and helps flatten process oscillations across the pyroprocess. This translates to lower fuel and energy consumption, fewer unplanned shutdowns, and a measurable reduction in NOx peaks. This directly reflects on the downstream cost implications for plants operating SCR or SNCR systems for emissions compliance.
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Filtration Technology is Critical for Efficient Logistics
Published
2 weeks agoon
May 15, 2026By
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Niranjan Kirloskar, MD, Fleetguard Filters, makes the case that filtration technology, which has been long treated as a routine consumable, is in fact a strategic performance enabler across every stage of cement production and logistics.
India’s cement industry forms the core for infrastructure growth of the country. With an expected compound annual growth rate of six to eight per cent, India has secured its position as the second-largest cement producer globally. This growth is a result of the increasing demand across, resulting in capacity expansion. Consequently, cement manufacturers are now also focusing on running the factories as efficiently as possible to stay competitive and profitable.
While a large portion of focus still remains on production technologies and capacity utilisation, the hidden factor in profitability is the efficiency of cement logistics. The logistics alone account for nearly 30 per cent to 40 per cent of the total cost of cement, making efficiency in this segment a key lever for profitability and reliability.
In the midst of this complex and high-intensity ecosystem, filtration often remains one of the most underappreciated yet essential enablers of performance.
A demanding operational landscape
Cement production and logistics inherently operate in some of the harshest industrial environments. With processes such as quarrying, crushing, grinding, clinker production, and bulk material handling expose the machinery to constant high temperatures, heavy loads, and dust, often the silent destructive force for engines.
The ecosystem is abrasive, and often one with a high contamination index. These challenging conditions demand equipment such as the excavators, crushers, compressors, and transport vehicles to perform and perform efficiently. The continuous exposure to contamination across every aspect like air, fuel, lubrication, and even hydraulic systems causes long-term damage. Studies have also shown that 70 to 80 per cent of hydraulic system failures are directly linked to contamination, while primary cause of engine wear is inadequate air filtration.
For engines as heavy as these, even a minor contaminant has a cascading effect; reducing efficiency, performance and culminating to unplanned downtime. Particles as small as 5 to 10 microns, far smaller than a human hair (~70 microns), can cause significant damage to critical engine components. In an industry where margins are closely linked to operational efficiency, such disruptions can significantly affect both cost structures and delivery timelines.
Dust management: A persistent challenge
Dust is a natural by-product in cement operations. From drilling and blasting in the quarries to packing in plants, this fine particulate matter does occupy a large space in operations. Dust concentration levels in quarry and crushing zones often create extremely high particulate exposure for equipment. These fine particles, when enter the engines and critical systems, accelerates the wear and tear of the component, affecting directly the operational efficiency. Over time every block fall; engine performance declines, fuel consumption rises, and maintenance cycles shorten. In this case, effective air filtration is the natural first line of defence. Advanced filtration systems are designed to capture high volumes of particulate matter while maintaining consistent airflow, ensuring that engines and equipment operate under optimal conditions.
In high-dust applications, as in cement production, even the filtration systems are expected to sustain performance over extended periods without the need of frequent replacement. This becomes crucial in remote quarry locations where access to frequent maintenance may be limited.
Fluid cleanliness and system integrity
Beyond air filtration, fluid systems also play a crucial role for equipment reliability in cement operations. Fuel systems are required to remain free from contaminants for efficient working of combustion and injection protection. Additionally, lubrication systems also need to maintain the oil purity to reduce friction and prevent any premature wear of moving parts. The hydraulic systems, which are key to several heavy equipment operations, are especially sensitive to contamination.
If fine particles or water enters these systems, it can lead to reduced efficiency, erratic performance, and eventual failure of the system. Modern filtration systems are designed with high-efficiency media capable of removing extremely fine contaminants, with advanced fuel and oil filtration solutions filtering particles as small as two to five microns. Multi-stage filtration systems further ensure that fluid performance is maintained even under challenging operating conditions.
Another critical aspect of fuel systems is water separation. Removing moisture helps prevent corrosion, improves combustion efficiency and enhances overall engine reliability. Modern water separation technologies can achieve over 95 per cent efficiency in removing water from fuel systems.
Ensuring reliability across the value chain
Filtration plays a critical role across every stage of cement logistics:
• Quarry operations: Equipment operates in highly abrasive environments, requiring strong protection against dust ingress and hydraulic contamination.
• Processing units: Crushers, kilns, and grinding mills depend on clean lubrication and cooling systems to sustain continuous operations.
• Material handling systems: Pneumatic and mechanical systems rely on clean air and fluid systems for efficiency and reliability.
• Transportation networks: Bulk carriers and trucks must maintain engine health and fuel efficiency to ensure timely deliveries.
Across these operations, filtration plays a vital role; as it supports consistent equipment performance while reducing the risk of unexpected failures.
Effective filtration solutions can reduce unscheduled equipment failures by 30 to 50 per cent across heavy-duty operations.
Uptime as a strategic imperative
In cement manufacturing, uptime is currency. Downtime not only delays the production, but it also greatly impacts the supply commitments and logistics planning. With the right filtration systems, contaminants are kept at bay from entering the
critical systems, and they also significantly extend the service intervals.
Optimised filtration can extend service intervals by 20 to 40 per cent, reducing maintenance frequency while maintaining consistent performance across demanding operating conditions. Filtration systems designed for heavy-duty applications sustain efficiency throughout their lifecycle, ensuring reliable protection with minimal interruptions. This leads to improved equipment availability, lower maintenance costs, and more predictable operations, with well-maintained systems capable of achieving uptime levels of over 90 to 95 per cent in challenging cement environments.
Supporting emission and sustainability goals
With the rising environmental awareness, the cement industry too is aligning with the stricter norms and sustainability targets. In this scenario, the operational efficiency is directly linked to emission control.
Air and fuel systems that are clean enable
much more efficient combustion. They also reduce emissions from both the stationary equipment and transport fleets. Similarly, with a well-maintained fluid cleanliness, emission systems function better. Poor combustion due to contamination can increase emissions by 5 to 10 per cent, making clean systems critical for compliance.
Additionally, efficient and longer lasting filtration systems significantly reduce any waste generation and contribute to increased sustainable maintenance practices. Extended-life filtration solutions can reduce filter disposal and maintenance waste by 15 to 20 per cent. Smart and efficient filtration in this case plays an important role in meeting the both regulatory and environmental objectives within the industry.
Advancements in filtration technology
Over the years, there has been a significant evolution in the filtration technology to meet the modern industrial applications.
Key developments include:
• High-efficiency filtration media capable of capturing very fine particles without restricting flow
• Compact and integrated designs that combine multiple filtration functions
• Extended service life solutions that reduce replacement frequency and maintenance downtime
• Application-specific engineering tailored to different stages of cement operations
Modern multi-layer filtration media can improve dust-holding capacity by up to two to three times compared to conventional systems, while maintaining consistent performance. These advancements have transformed filtration from a basic maintenance component into a critical performance system.
Adapting to diverse operating conditions
The cement industry of India operates across diverse geographies. Spanning across regions with arid regions with higher dust levels, to the coastal areas with higher humidity, challenges of each region pose different threats to the engines. Modern filtration systems are thus tailored to address these unique challenges of each region.
Indian operating environments often range from 0°C to over 50°C, with some of the highest dust loads globally in mining zones.
Additionally, filtration technology can also be customised to variations which then align the system design with factors like dust load, temperature, and equipment usage patterns. Equipment utilisation levels in India are typically higher than global averages, making robust filtration even more critical. This approach ensures optimal performance and durability across different operational contexts.
Impact on total cost of ownership
Filtration has a direct and measurable impact on the total cost of ownership of equipment.
Effective filtration leads to:
• Lower wear and tear on critical components
• Reduced maintenance and repair costs
• Improved fuel efficiency
• Extended equipment life
• Higher operational uptime
Effective filtration can extend engine life by 20 to 30 per cent and reduce overall maintenance costs by 15 to 25 per cent over the equipment lifecycle. These benefits collectively enhance productivity and reduce lifecycle costs. Conversely, inadequate filtration can result in frequent breakdowns, increased maintenance expenditure, and reduced asset utilisation.
Building a more efficient cement ecosystem
With the rising demand across various sectors, the cement industry is expected to expand at an unprecedented rate. This growth is forcing the production to move towards a more efficient and resilient system of operations. This requires attention not only to production technologies but also to the supporting systems that enable consistent performance. Filtration must be viewed as a strategic investment rather than a routine consumable. By ensuring the cleanliness of air and fluids across systems, it supports reliability, efficiency, and sustainability.
The road ahead
The future of cement logistics will be shaped by increasing mechanisation, digital monitoring, and stricter environmental standards. The industry is also witnessing a shift towards predictive maintenance and condition monitoring, where filtration performance is increasingly integrated with real-time equipment diagnostics.
In this evolving landscape, the role of filtration will become even more critical. As equipment becomes more advanced and operating conditions more demanding, the need for precise contamination control will continue to grow. From quarry to construction site, filtration technology underpins the performance of every critical system. It enables equipment to operate efficiently, reduces operational risks, and supports the industry’s broader goals of growth and sustainability. In many ways, it is the unseen force that keeps the cement ecosystem moving, quietly ensuring that every link in the value chain performs as expected.
About the author
Niranjan Kirloskar, Managing Director, Fleetguard Filters, is focused on driving innovation, operational excellence, and long-term business growth through strategic and people-centric leadership. With a strong foundation in ethics and forward-thinking decision-making, he champions a culture of collaboration, accountability, and technological advancement.
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