Connect with us

Concrete

Till bagged cement is in use, innovation will continue to happen

Published

on

Shares

Molugu Purnachander, Director Procurement, Heidelberg Cement India heads multiple cement plans and grinding centers and a plant pan India. He has been awarded with the Global Purchasing Best Practice Award. In this interview, he shared his experiences and requirements for packaging in the cement industry.

How important is packaging in the cement manufacturing process?
It is said that “Do not judge the book by its cover”, however, when it comes to products, the cover i.e. packaging is the foremost thing that appeals the eye of the customer.
Similarly cement packaging also plays a very important and vital role in influencing the customer to choose your product from the shelf. Prima Facie, packaging is the face of the company and the product within. Apart from extrinsic value cement packaging also provides protection and helps in enhancing shelf life. It safeguards the cement from threats like moistures, chemical reaction, etc. It also makes the transportation as well as handling easy with less wastage. It is an environment friendly solution for printing necessary and important information / specifications about cement along with the manufacturer’s name and their registered trademark, ISI mark, cement grade, bag weight, price etc.

On which stages in the cement manufacturing process is packaging required?
Cement tends to harden when its exposed to moisture in any form, thus, making it is unfit for consumption. Hence the packaging is required after the last stage when the final process of cement manufacturing ie. grinding of clinker with other additives is completed and cement is stored in Silos ready for dispatch. Cement is dispatched either in 50 kgs / jumbo bags packaging or in bulk dispatched in bulkers for larger construction projects.

What technology is followed in the packaging and transportation of cement?
There are various technology which a cement manufacture can chose from for packing the cement. However, majority of packaging is based on Polypropylene (PP) Woven / Laminated bags manufactured from PP granules (a byproduct from petroleum refinery). The fabric is made by weaving the tape in the looms.
Since packaging is one of the foremost things which differentiates the product in the eye of the customer, hence recently the cement industry has started switching to latest technology as per new guidelines such as block bottom valve sacks made of plastic fabric i.e., laminated.
Another variety is BOPP i.e., Biaxially oriented polypropylene film that is applied as an additional layer to woven polypropylene bags. The film allows for custom, clear, and vivid printing to be applied to both sides of the bag, as well as the gussets. Also, cement is packed in paper bags too.

Tell us more about the packaging material that is currently used for packing cement.
The basic raw material for cement packing is Polypropylene (PP). Currently there are four types of bags used in the packaging of cement –
a) PP woven bags b) Laminated bags
c) BOPP bags d) Paper bags.
BOPP i.e. Biaxially Oriented Polypropylene is the most premium packaging with provides attractive printing on it. BOPP is the latest technology in cement packaging which is 100 per cent recyclable and provides strong resistance to moisture.
Laminated bags are block bottom sacks made without adhesives from coated polypropylene fabric. These bags help to reduce CO2 emissions during cement production.
Paper bags which were running the show have lost their luster and are being slowly replaced by BOPP bags as they have advantages of less wastage, easier to recycle, better printing and visibility and environmentally friendly.

What improvements can be made in the system and process of cement packaging?
Cement is the second most consumed product after water and packaging plays a vital role in insuring the shelf life of the cement. Although companies have been using packaging as an aesthetic tool to differentiate their products from competitors, however implementation of various standards like Six Sigma should be promoted for cement bag to ensure that they reach the end customer intact.
There have been various advancements in cement packaging like from Jute to PP and then from PP to Laminated and BOPP, hence adopting advanced technologies of packaging like BOPP should be promoted as it provides sturdiness to the cement bag.
Further, increased automation to reduce spillage of cement and palletised packaging are other areas which industry should work towards.

Tell us about the major challenges faced in packing cement and delivering it to the
end consumer?
Cement bags are transported either through rake or through trucks. There are various interchanging points which lead to burstage of a cement bag/ spillage of cement. Starting from loading of cement bags in trucks / rake followed by in-transit and then till the final offlaoding, major challenge in packaging is the spillage of cement during the handling of bags at the dealer point / end user. Despite various notifications on bags like Use No Hooks, bags are handled with hooks to pull / push them into the truck which leads to heavy spillage of cement from bags and in turn creating dust emissions along with wastage. Hence there is a necessity to train the workmen at dealer place for proper and professional handling of bags to avoid burstage /loss of cement. Although we as an organization have already done automation to reduce the spillage along with training of our channel partners on bag handling, yet it still remains a challenge which entire industry faces.

How does delivery of cement take place protecting and shielding it from moisture?

  • Removing sharp objects from the cement transport vehicle / rack before loading cement bags so that the bags are not torn or damaged.
  • Ensuring the vehicle/rake is clean and dry before loading the cement bags.
  • The plastic sheet must be spread on the vehicle/rake floor.
  • Cement bags should be properly covered with plastic sheets with second layer of tarpaulin.
  • Load cement bags carefully into the cement transport vehicle, making sure that they are covered and tied down securely.

Always stack the cement bags in the same way even if the bags are not palletised. Otherwise, if any pothole comes up, then cement bags may get toppled down.

How should dealers or end consumers of cement store packaged cement to prevent it from coming in contact with moisture?

  • Cement should be stored in window-less room and rest it on a wooden platform, cement bags should not put directly on floor.
  • Keep the cement bags 2 feet away from the nearest wall and ceiling.
  • Don’t keep more than 15 bags on top of each other, if it’s more than 15 bags then there are chances of cement turning into lumps.
  • During rains the cement bags should cover by tarpaulin.
  • FIFO (First IN First OUT) should follow
  • In warehouses, adequate ventilation is to be provided, Install exhaust fans on blank walls

Can cement packaging be made more eco-friendly and sustainable? Tell us more about the changes your organization is making.
Yes, many researches are going on to make the cement packing eco-friendly and sustainable. We as an organization are constantly taking efforts to make this green change and as a first step, we are shifting from normal PP woven bag to BOPP bag in a phase manner, as BOPP bags are 100 per cent recyclable.

  • Ongoing RandD to make the bags now biodegradable.
  • Adoption of Green cement.
  • We are switching over to usage of laminated bags replacing PP bags and completely replacing paper bags by BOPP bags. Laminated/BOPP bags are extremely durable, break-resistant and protects the content from moisture which reduces loss of cement and avoids hardening of cement while multiple handlings. Less cement loss means less cement to be produced and consequently less CO2 emissions.
  • BOPP bags are easily recyclable, the empty bags have to be collected by dealers from end users for some attractive value or offer attractive promotions to ensure collection of these used bags and recycling towards sustainability.

What innovation in cement packaging can be seen in the near future?
Globally cement is considered an industrial product, hence there is an inclination towards bulk over bagged cement. However, until bagged cement is in use innovation on the same will continue to happen. It is said that However you do, someone else will come and re-do it in a different way. Hence innovation in cement packaging will continue as it is major differentiator from competition. At present we can see that slowly and steadily the market is inclining towards the Block Bottom Bags and in next 5 years we can expect the current market share of 25 per cent block bottom could hit up to 80 per cent.

Kanika Mathur

Concrete

Lower sales realization impacts margins for cement makers in Q2 FY25

The industry encountered several challenges, including an extended monsoon season.

Published

on

By

Shares



Major cement manufacturers reported a decline in margins for the September quarter, primarily due to lower prices, which led to decreased sales realization.

With the exception of three leading cement producers—UltraTech Cement, Ambuja Cement, and Dalmia Bharat—smaller companies, including Nuvoco Vistas Corp, JK Cement, Birla Corporation, and Heidelberg Cement, experienced a drop in both topline and sales volume during the second quarter of the current fiscal year.

The industry encountered several challenges, including an extended monsoon season, flooding, and a slow recovery in government demand, all contributing to weak overall demand.

Despite these challenges, power, fuel, and other costs largely remained stable across the industry. The all-India average cement price was approximately Rs 348 per 50 kg bag in June 2024, which represented an 11 per cent year-on-year decrease to Rs 330 per bag in September, although it saw a month-on-month increase of 2 per cent.

In the first half of FY25, cement prices declined by 10 per cent year-on-year, settling at Rs 330 per bag. This decline was notable compared to the previous year’s average prices of Rs 365 per bag and Rs 375 per bag in FY23, as reported by Icra.

Leading cement manufacturer UltraTech reported a capacity utilization rate of 68 per cent, with a 3 per cent growth in volume. However, its sales realization for grey cement declined by 8.4 per cent year-on-year and 2.9 per cent quarter-on-quarter during the July-September period.

In response to a query regarding cement prices during the earnings call, UltraTech’s CFO Atul Daga indicated that there had been an improvement in prices from August to September and noted that prices remained steady from September to October. He mentioned that the prices had risen from Rs 347 in August to approximately Rs 354 currently.

Continue Reading

Concrete

Steel companies face Rs 89,000 crore inventory crisis

Steel firms grapple with Rs 89,000 crore stockpile amid import surge.

Published

on

By

Shares



Steel companies in India are facing a significant challenge as they contend with an inventory crisis valued at approximately Rs 89,000 crore. This situation has arisen due to a notable increase in steel imports, which has put pressure on domestic producers struggling to maintain sales in a competitive market.

The surge in imports has been fueled by various factors, including fluctuations in global steel prices and increased production capacities in exporting countries. As a result, domestic steel manufacturers have found it difficult to compete, leading to rising stock levels of unsold products. This inventory buildup has forced several companies to reassess their production strategies and pricing models.

The financial impact of this inventory crisis is profound, affecting cash flows and profitability for many steel firms. With domestic demand remaining volatile, the pressure to reduce prices has increased, further complicating the situation for manufacturers who are already grappling with elevated production costs.

Industry experts are urging policymakers to consider measures that can support local steel producers, such as imposing tariffs on imports or enhancing trade regulations. This would help to protect the domestic market and ensure that Indian steel companies can compete more effectively.

As the steel sector navigates these challenges, stakeholders are closely monitoring the situation, hoping for a turnaround that can stabilize the market and restore confidence among investors. The current dynamics emphasize the need for a robust strategy to bolster domestic production and mitigate the risks associated with excessive imports.

Continue Reading

Concrete

JSW and POSCO collaborate for steel plant

JSW Group and POSCO ink MoU for steel project.

Published

on

By

Shares



JSW Group has signed a Memorandum of Understanding (MoU) with South Korea’s POSCO Group to develop an integrated steel plant in India. This collaboration aims to enhance India’s steel production capacity and contribute to the country’s growing manufacturing sector.

The agreement was formalized during a recent meeting between executives from both companies, highlighting their commitment to sustainable development and technological innovation in the steel industry. The planned facility will incorporate advanced manufacturing processes and adhere to environmentally friendly practices, aligning with global standards for sustainability.

JSW Group, a leader in the Indian steel industry, has expressed confidence that the joint venture with POSCO will bolster its position in the market and accelerate growth. The project is expected to attract significant investments, generating thousands of jobs in the region and contributing to local economies.

As India aims to boost its steel output to meet domestic demand and support infrastructure projects, this partnership signifies a crucial step toward achieving those goals. Both companies are committed to leveraging their expertise to develop a state-of-the-art facility that will produce high-quality steel products while minimizing environmental impact.

This initiative also reflects the increasing collaboration between Indian and international firms to enhance industrial capabilities and foster economic growth. The MoU sets the stage for a promising future in the Indian steel sector, emphasizing innovation and sustainability as key drivers of success.

Continue Reading

Trending News

SUBSCRIBE TO THE NEWSLETTER

 

Don't miss out on valuable insights and opportunities to connect with like minded professionals.

 


    This will close in 0 seconds