Technology
The changing network dynamics
Published
4 years agoon
By
admin
A sluggish economy, shrinking profit margins and fluctuating prices have put cement dealers and distributors in a tight spot. Fierce competition amongst cement companies to grab a bigger share of the market pie has resulted in innovative strategies such as product diversification and Direct Consumer Service initiatives which have its pros and cons. As the network dynamics is also changing fast dealers find the going getting tougher. ICR trains its spotlight on the rapidly changing network dynamics of the cement industry.
The cement industry has been growing well in the last decade. Unfortunately, the cost of manufacture and transport too, is on the rise. Compared to other industries, cement has the highest logistics cost as a percentage of sales. The cost of freight has been rising due to the increase in oil prices and last mile delivery too is a challenge in the whole supply chain. On the other side, fierce competition amongst cement companies to grab a bigger share of the market pie has resulted in innovative strategies. Most of the major players have over the years built up extensive network of dealers, distributors and to manage the last mile connectivity across their markets which helps to achieve higher capacity utilisation.
So how has the changing equation impacted the highly successful and decades old dealer and distributor network? Degala Ramesh, Managing Partner of Degala Veerabhadra Rao & Brothers elaborates, ´The network dynamics are now changing since now most big companies are integrating more dealers and fewer distributors into their network. Earlier cement would be supplied by manufacturers to distributors, who in turn would forward it to dealers. Now major companies are selling cement through large number of dealers rather than few distributors. Only mini cement companies are appointing distributors in their network.´
Yuvresh Bansal, Proprietor, Jagdish Traders, throws light on some of the issues bothering cement dealers. Says Bansal, ´In the cement industry, there are no distributors as such, the way we have in other industries like in the iron and steel bar supply chain. What we have is more like a Carry and Forward agent (C&F). So basically, C&F agents supply cement in large volumes to dealers like us and we then supply cement to the sub-dealers and retailers. That is how it is in theory at least but on the ground level, things are not that well defined. In this sluggish market, the defining lines between dealers and retailers are getting fuzzy. Now both dealers and retailers seem to be selling the same volumes to the same consumers. So what is the difference between the two? Earlier there was a logical flow to the market but now it seems to be a bit skewed. Dealers today no longer have the advantage of scale and volume as the demand is very low.´
Innovative moves
According to Lalit Agrawal, Business Development Manager, Goyal Agency selling a single brand in the shrinking cement market is tough. Diversification in brands and in products is the way to go forward. He says ´Having multiple brands is better. Customers vary, their choices vary; they want options in brands and in cost. And we have to provide to those choices if we have to stay in the business. Those with a single brand in the bucket will find the business shrinking every year.´ Agrawal further adds that, ´We are thinking of diversifying and we have now started our steel business along with cement. We are also exploring the construction sector.´
SaysRajesh Parwal, Proprietor, Bharat Traders, ´As you know, cement demand has reduced significantly now. In such a scenario, the retailer must be able to survive and make profit. Diversification ensures that the business continues despite ups and downs.´
Says Anshay Sehgal, Proprietor, RN Sehgal, ´ Lots of things have changed, especially in the recent past. Now cement is sold at FOR prices. Cement companies have become very aggressive in their sales and promotional efforts. New schemes are rampant in the market. They are trying their best to enticing dealers and masons. Even bigger places are not shying away from selling small quantities; some even supply it door to door.´
Impact of non-trade deals
Unlike in the past, some of the major manufacturers have started the DCS (Direct Consumer Service) initiative, where the consumers and manufacturers are connected directly, which in effect is side stepping the dealers. This increasing non-trade sale seems to have hit the dealers business and have tilted the equilibrium especially when cement companies have started taking order irrespective of the order size.
Says Rajesh Agarwal, President, Pune Stockists and Dealers Association, ´One major area of concern is the volume of cement sold via non-trade transactions. Now, more and more companies are selling the material directly to the consumer at non-trade rates. This reduces our viability drastically. The company seems to have no discrimination in accepting the orders irrespective of the order size Earlier they would take orders directly if the quantity exceeded more than 250 tonnes, now they are picking up deals as low as of 25 tonnes. And that too, at the non-trade rates which are Rs 40 to 50 less per bag. How can dealers compete with them?´
He further adds, ´Today, the trade market is fast vanishing. Earlier, it was 90 per cent trade and 10 per cent non-trade. Now, it is 70 per cent trade and 30 per cent non-trade. In cities like Mumbai, only five percent deals take place at trade rates, the rest is at non- trade rates. Pune too, is now on the same track.´
Ramesh supports the view. According to him one of the major challenges that dealers face is that the cement companies are bypassing distributors and dealers and supplying material directly to the contactors, which has a negative impact on their sales performance. ´As production capacities are dropping and the market gets saturated with excess products, cement companies are trying to scoop orders by sidestepping dealers and distributors and then, offering discounts to contractors. This will affect the network in the long run,´ says Ramesh. ´There has to be some agreed consensus on the volume that could be supplied directly. Earlier companies would dispatch cement directly to the consumer only if the volume exceeded 200 tonnes. This was fine with us since huge volumes are involved and major consumers would like to take advantage of discounts gathered by dealing directly with company. However, of late, companies have started selling volumes as low as 50 tonnes and that too, through direct billing.´ He further adds,´Our demand is that companies should leave at least the small volumes to us.´
Says Rajesh Parwal, ´Some cement manufacturers have started the DCS (Direct Consumer Service) initiative; here the consumers and the manufacturer are connected directly. Dealers are not mediators in all the deals. However, bypassing dealers is also affecting the business. Yes, we had a dialogue with top cement manufacturers, requesting them to include us in their growth. We have suggested that the manufactures could sell directly to the consumer if the sales volume is more than 500 tonnes. For volumes below that, we must be included.´
Says Ashok Ku Patra, Proprietor, Srikant Agency, ´Companies are selling cement through non -trade sales. The price gap between cement sold via trade sales and non-trade sales is very high, up to Rs 40 to 50 differences per bag. As a result, unauthorised shops are selling non trade cement at trade sales rate with a discount of Rs 10 to 15. This is giving a tough time to authorised shops and the dealers are losing in the market.´
Patra further adds, ´We are facing several challenges on several fronts. Today´s market is the buyer`s market. Cement companies are promoting several sub-dealer shops in small areas. The market is getting more than saturated with small cement sellers. This is creating unnecessary competition.
The credit policy too, should be tweaked. While dealers like us are getting credit facility up to five days with a security amount, the sub- dealers are getting 10-15 days` credit facility without having to deposit any security. Sub-dealers are free from any worries of losing cash discounts.´
Rajkumar Modi, Proprietor, Vishesh Enterprises had this to say. ´There is difference in trade and non-trade rates and there is lot of discussion in the market about it. The cost difference varies from brand to brand and also based on prevailing market conditions. The difference in top brands of cement will be around Rs 25, while other local brands may have a gap of around Rs 40 – 50 in their trade and non-trade price. Even the excise duty on the trade and non-trade cement varies, which adds to the cost difference.´ As the demand for infrastructure is growing, more contractors are moving towards RMC. Bansal adds ´As a civil engineer, I have worked on a few RMC projects myself. In such projects, dealers, retailers, etc, are bypassed. As RMC requires cement to be poured in bulk, we cannot supply bagged cement to RMC contractors. Builders and contractors get in touch with the manufacturers directly and fulfill their requirements.´ According to him as the RMC industry grows, dealers will have a tougher time. He says, ´I wonder what can be done to make dealers too, a part of this growth and ensure that the outcome is win-win for everybody.´
Says Sehgal ´RMC is also impacting the market to a significant extent. It is mainly used by the builders. The end users and small consumers do not use RMC but the RMC market cannot be ignored now. At least 25 per cent of the market is covered by RMC.´ Modi sums up the story on a positive note. Surviving in today´s market is not that difficult if dealers come together and stay united. A systematic approach will help dealers tide over the tough time, says Modi. ´We must adopt the cash and carry policy. If we are strict about our system and do not give material on credit, we will be able to come out of this. But for this, all dealers must come together and follow this strictly. Unfortunately, despite several attempts, we are not able to achieve strong unity amongst ourselves. This has to change.
Apart from this, one must also be careful about giving too much material on credit which can be detrimental to the business in today`s market.´
As Rajesh Agarwal puts it succinctly dealers must come together in order to be heard.
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Economy & Market
RAHSTA Roundtable Sets Agenda for Smarter, Safer Highways
Published
1 week agoon
March 16, 2026By
admin
Roundtable discussions focus on innovation for safer highways.
Held on 12 March 2026 at Courtyard by Marriott, Mumbai, alongside the Infrastructure Today Airport Conclave, the RAHSTA Roundtable brought together stakeholders from across the highways and infrastructure ecosystem to shape the agenda for the 16th RAHSTA 2026, scheduled for 8–9 July 2026 at the Jio Convention Centre, Mumbai. The session focused on key industry themes including road construction, technology, safety and long-term sustainability.
Opening the discussion, Pratap Padode, Founder, FIRST Construction Council, said the roundtable marked the beginning of a broader consultative process leading up to the July event. The aim, he noted, is to bring together industry stakeholders to refine the agenda for discussions on the future of roads, bridges, tunnels and allied infrastructure.
Padode noted that while central road project awards have slowed in recent years, states are increasingly driving the next phase of infrastructure growth. Maharashtra, with its long-term road development plans and agencies such as MSRDC and MSIDC, is expected to play a significant role in this expansion.
RAHSTA Expo 2026 as a specialised platform dedicated to road infrastructure, covering highways, tunnels, bridges and flyovers along with construction technologies, safety systems and maintenance solutions. He also highlighted the growing importance of rural connectivity and said the organisers are engaging with government bodies to highlight rural road development initiatives.
Tanveer Padode, CIO, ASAPP Info Group, presented insights from IMPACCT, the group’s infrastructure intelligence platform. He pointed to a strong project pipeline despite slower highway awards earlier in the year, noting that states such as Maharashtra, Odisha and Arunachal Pradesh are emerging as key drivers of new projects. The data also revealed that only a small group of contractors participates in large-value infrastructure bids.
Lt Gen Rajeev Chaudhary, former Director General, Border Roads Organisation and Chairman of the RAHSTA Expo Committee, emphasised the need for stronger collaboration across the ecosystem, including policymakers, contractors, technology providers and financiers. He also called for addressing systemic issues within the sector and encouraged greater participation of women in infrastructure leadership.
The discussion also explored the evolving economics of road development. Phani Prasad Mandalaparthy, Associate Director, CRISIL Intelligence, noted that the slowdown in project awards reflects a shift towards higher-value logistics corridors rather than simple road widening projects. However, private participation through BOT and TOT models remains limited.
From the contractors’ perspective, Sudhir Hoshing, Whole-Time Director, Ceigall, said companies are becoming more selective in bidding, favouring projects with clearer payment mechanisms and efficient processes. While NHAI continues to offer greater operational clarity, states such as Uttar Pradesh and Bihar were cited as relatively supportive environments for project execution.
Durability and sustainability also emerged as key themes. Himanshu Agarwal, COO – Road & Infrastructure, Zydex Group India, highlighted the need to prioritise lifecycle performance and resilient pavements, while participants discussed the potential of alternative materials such as plastic waste, steel slag and industrial by-products in road construction.
Dr LR Manjunatha, Vice President, JSW Cement, emphasised that India has abundant fly ash, slag and other industrial materials that can improve durability and sustainability if integrated into specifications and policy frameworks.
Technology and equipment challenges were also discussed. Dr Lakshmana Rao Mantri, Dy General Manager, Afcons Infrastructure, highlighted the shortage of tunnel boring machines (TBMs), which is delaying several underground infrastructure projects. Participants agreed that developing domestic TBM manufacturing capabilities will be critical for future infrastructure expansion.
The future of concrete pavements was another area of discussion. Dr V Ramachandra, President, Indian Concrete Institute, stressed that the debate should focus on lifecycle performance rather than material choice alone, noting that evolving design standards are improving the feasibility of concrete roads.
Prof Dharamveer Singh of IIT Bombay added that while India has made significant progress in infrastructure development, stronger capacity building and better execution practices are essential to ensure consistent road quality.
The discussion also touched upon technology adoption in the sector. Rushabh Mamania, Partner & CBO, Roadvision, highlighted the growing role of AI in road infrastructure, noting that AI-driven monitoring systems are already being deployed across large stretches of national highways.
Overall, the roundtable underscored that the future of highway infrastructure will depend not only on the pace of construction but also on durability, safety, technology integration and sustainable materials. The discussions offered valuable insights that will help shape the agenda for RAHSTA 2026 and guide future collaboration within the industry.
Economy & Market
CTS Roundtable Charts Tech-Led Roadmap for Construction
Published
1 week agoon
March 16, 2026By
admin
CTS Roundtable Maps Technology Roadmap for Construction
Ahead of the Construction Technology Show (Con Tech Show) 2026, industry leaders, technology innovators and academia came together in Mumbai to deliberate on how digitalisation, automation and industrialised construction can reshape the sector. The discussion made one thing clear: construction can no longer afford to treat technology as optional.
Held on 12 March 2026 at Courtyard by Marriott, Mumbai, alongside the Infrastructure Today Airport Conclave, the CTS Roundtable served as a precursor to the Construction Technology Show 2026, scheduled for 19–20 August 2026 at NESCO, Mumbai.
A platform to move from discussion to deployment
Opening the session, Pratap Padode, Founder and Editor-in-Chief, ASAPP Info Global Group, said construction technology has long remained close to his heart, especially given the sector’s traditionally slow pace of technology adoption. He noted that over the years, the Construction Technology Summit had steadily built interest, and the next step was now to expand it into a larger, more meaningful platform that could bring together technology providers, users, startups and innovators under one roof.
Padode said the vision for CTS is not limited to software alone. The platform aims to embrace all forms of technology that can improve construction efficiency, quality and execution—from digital tools and project management systems to lean construction, off-site fabrication and startup-led innovation. He also highlighted plans to deepen startup participation and create space for young companies to showcase emerging construction solutions.
Industry at a turning point
Moderating the roundtable, Naushad Panjwani, Chairman, Mandarus Partners, set the context by pointing out that the global construction industry, despite being a multi-trillion-dollar sector, continues to lag in productivity. He noted that while manufacturing has consistently improved efficiency, construction has remained slow to modernise.
Referring to both global and Indian trends, Panjwani underlined that the industry is now at a decisive moment. India, he said, is entering a major build cycle, and delivering the next phase of infrastructure and real estate growth through traditional methods alone is no longer viable. The goal of the roundtable, therefore, was not to debate technology in isolation, but to identify the most critical conversations that would bridge the gap between innovation and implementation.
His central message was clear: CTS 2026 must be shaped around themes that make CEOs, CIOs and CTOs feel they cannot afford to miss the event.
From BIM to AI, data to governance
A major theme that emerged through the discussion was the need for better data, better visibility and better decision-making. Dr Venkata Santosh Kumar of IIT Bombay echoed this, saying that the underlying data infrastructure itself needs attention. Construction projects, particularly remote ones, often face issues around connectivity, data collection and data use. Without this foundation, more advanced technologies cannot deliver their full value.
Chandra Vasireddy, CEO & Co-founder, Inncircles, expanded the discussion to governance, arguing that technology must help connect the many moving parts of a construction business. For him, the real value of digital transformation lies in creating better governance, clearer visibility and stronger business outcomes.
Tejas Vara of Inncircles stressed the importance of timely site data for leadership teams, especially in large and remote projects where decisions on materials, machinery and manpower often get delayed because information does not reach headquarters in time.
The role of AI also featured prominently. Rushabh Mamania, Partner and CBO, Roadvision said that while AI and machine learning are now common terms, vision intelligence and language intelligence have still not deeply penetrated the construction sector. He emphasised that startups in India are building relevant AI-led solutions and are already attracting international interest, showing that innovation need not be imported—it can be built locally and scaled globally.
Industrialised construction gains ground
The roundtable also placed strong emphasis on industrialised construction methods. Kalyan Vaidyanathan, CTO – Construction & R&D, Tvasta, called for greater focus on off-site fabrication and the broader industrialisation of construction. Bhargav Jog, General Manager, Dextra, highlighted precast technology and alternative sustainable materials as areas with immediate relevance.
Several participants agreed that modular, precast and pre-engineered approaches are no longer niche ideas. They are increasingly becoming practical responses to the sector’s challenges around labour shortage, timelines, quality control and predictability.
Anup Mathew, Sr VP & Business Head, Godrej, argued that the industry needs a fully integrated approach—from design and procurement to execution and asset management. Unless these are connected, technology adoption will remain fragmented and sub-optimal. He pointed to pre-engineered and modular systems as examples of how industrial thinking can compress timelines, improve quality and reduce dependence on difficult on-site conditions.
Adoption remains the biggest hurdle
While there was broad agreement on the promise of technology, the discussion repeatedly returned to one fundamental challenge: adoption.
Abhishek Kumar, COO, LivSYT, observed that the market is crowded with solutions, but many buyers still struggle to evaluate which technology suits which use case. According to him, the industry needs clearer frameworks to help users select, compare and adopt solutions, rather than expecting a single platform to solve every problem.
Dr Tenepalli JaiSai, Associate Professor, School of Construction(SoC), NICMAR University, noted that isolated technologies will not solve the productivity problem by themselves. What is required is an integrated Construction 4.0 approach, where digital, physical and cyber-physical systems work together rather than in silos.
That concern around silos was reinforced by Subodh Dixit, former Director, Shapoorji Pallonji, who said the issue is not just that technologies are disconnected, but that stakeholders are as well. Clients, consultants, contractors and partners often operate with different priorities. Unless these silos are broken, technology will struggle to percolate across the full project value chain.
Harleen Oberoi, Project Management, Tata Realty shared a practical perspective from the client side, saying that successful BIM implementation requires investment across the ecosystem, not just within one organisation. Trade partners, vendors and other stakeholders must also be trained and aligned if the technology is to deliver its intended results.
Beyond buzzwords
A notable takeaway from the session was that the industry is moving past the phase of treating technology as a buzzword. Participants repeatedly stressed that the real question is not whether technology should be used, but where it creates measurable value and how that value can be scaled.
The conversation also expanded beyond mainstream themes to include repairs and rehabilitation, construction and demolition waste, sustainability, circular economy, green sourcing, carbon measurement, design interoperability, generative design, robotics, and the role of horticulture and greener built environments.
Setting the agenda for CTS 2026
By the close of the session, the roundtable had surfaced a strong set of themes for the upcoming show: BIM and digital twins, AI and data platforms, industrialised construction, startup innovation, governance-led technology adoption, robotics, sustainable materials, and integrated project delivery.
More importantly, the session established CTS 2026 as more than an exhibition. It is shaping up to be a serious industry platform where users, technology providers, researchers and policymakers can collectively define the future of construction.
As Padode noted in his closing remarks, the conversation will continue through further consultations and possibly webinars in the run-up to the show. If the roundtable is any indication, CTS 2026 will aim not merely to showcase technology, but to push the industry towards meaningful adoption at scale.
Ponnusamy Sampathkumar, Consultant – Process Optimisation and Training, discusses the role of skilled operators as the decisive link between advanced additives, digital control and world-class mill performance.
The industry always tries to reduce the number of operators in the Centre Control Room. (CCR) Though the concept was succeeded to certain extent, still we need a skilled person in the CCR.
In an era where artificial intelligence (AI) grinding aids, performance enhancers, and digital optimisation tools are becoming increasingly sophisticated, it’s tempting to believe that chemistry alone can solve the challenges of mill efficiency. Yet plants that consistently outperform their peers share one common trait: highly skilled operators who understand the mill as a living system, not just a machine.
Additives can improve flowability, reduce agglomeration, and enhance separator efficiency, but they cannot replace the nuanced judgement that comes from experience. Grinding is a dynamic process influenced by raw material variability, moisture, liner wear, ball charge distribution, ventilation, and separator loading. No additive can fully compensate for poor control of these fundamentals.
Operators see what additives cannot
When I joined the cement industry in 1981, not much modernisation was available then. Mostly the equipment was run from the local panel. Once I was visiting the cement mills section. The cement mills were water sprayed over the shell to reduce the temperature to avoid the gypsum disintegration.
The operator stopped the feeding for one of the mills. When I asked the reason, he replied that mill was getting jammed, and he added that he could understand the mill condition by its sound. I also learned that and it was useful throughout my career. In another plant I saw the ‘Electronic Ear,’ which checked the sound of the mill and the signal was looped with feed control!
Whatever modernisation we achieve, it is from the human factor that the development starts.
Additives respond to conditions; operators interpret them.
A skilled operator can detect subtle shifts, like a change in mill sound, a slight variation in circulating load, or a drift in separator cut point. It’s long before instrumentation flags a problem. These micro-observations often prevent major efficiency losses.
Additives work best when the process is stable
I would like to share one real time incident. The mill was running on auto mode looped with the mill outlet bucket elevator kilowatt. (KW)There was a decrease in the KW, and the mill feed was increased by the auto control (PID). After a while, the operator stopped both the feed and the mill. He asked the local operator to check the airslide between mill outlet and the elevator. They found the airslide was jammed and no material flow to the elevator!
The operator deduced the abnormality by his experience by seeing the conditions and the rate of increase of the feed by the auto control.
It’s always the human factor that adds value to the optimisation.
Grinding aids are multipliers,
not magicians.
They deliver maximum benefit only when:
• Mill ventilation is correct
• Ball charge is balanced
• Feed moisture is controlled
• Separator speed and loading are improved
• Blaine targets are realistic
Without these fundamentals, even advanced additives may become costly investments. The operator is responsible for ensuring process stability, whether using a ball mill or a vertical mill. After ensuring the system is stable, the operator observes it briefly before transitioning to automatic control. If there is any anomaly in the system the operator at once takes control of the system, stabilises and bring back to auto control.
Skilled operators adapt in real time
It will be interesting to note that the operators who operate from local panel start to operate from DCS also. They have the experience and the ability to adapt the changes. Operator checks each parameter deeply. Any meagre change in the parameters is also visible to him.
Raw materials change. Weather changes. Wear patterns change.
A skilled operator adjusts:
• Feed rate
• Water injection
• Separator speed
• Grinding pressure (in VRMs)
• Mill load distribution.
These adjustments require intuition built from years of experience, something no additive can replicate.
Human insight prevents over reliance on additives
Plants sometimes increase additive dosage to mask deeper issues like:
• Poor clinker quality
• Inadequate drying capacity
• Incorrect ball gradation
• High residue due to worn separator internals.
A knowledgeable operator finds root causes instead of chasing temporary chemical fixes.
The real optimisation sweet spot is reached when:
• Operators understand how additives interact with their specific mill.
• Additive suppliers collaborate with plant teams.
• Process data is interpreted by humans who know the mill’s behaviour.
This constructive collaboration consistently delivers:
• Lower kWh/t
• Higher throughput
• Better product consistency
• Optimum standard deviation.
Advanced additives are powerful tools, but they are not substitutes for human ability. Grinding optimisation is ultimately a human driven discipline, where skilled operators make the difference between average performance and world class efficiency. Additives enhance the process but operators
control it.
About the author:
Ponnusamy Sampathkumar, Consultant – Process Optimisation and Training, is a seasoned cement process consultant with 43+ years of global experience in plant operations, process optimisation, refractory management, safety systems and training multicultural teams across international cement plants.


