Concrete

Distribution Channels for the Cement Industry

Published

5 years ago

February 28, 2022

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With changing times and demands, cement companies may create a system to sell to their end consumers directly using the Internet thereby relying more on technology than traditional formats.

Logistics for cement begins from the source where limestone, the raw material is procured from mining sites and brought to the plant. Logistics ends with the finished product leaving the manufacturing facility and ultimately reaching the consumer. For this, it travels across the lengths and breadths of the country. The demand for cement by every organisation must be met on time, or they lose the opportunity to their market competitors. The mode of transport for cement decides its cost and generally holds up to 20 per cent of its retail price. The cement industry today uses multiple modes of transports to fulfil its logistical needs.

Largely there are three key elements of distribution channels – wholesalers, retailers and end consumers. Cement organisations sell their end product to the consumers through wholesalers or retailers.

Factors affecting cement distribution

Logistics cost is one of the key differentiators amongst the prices that any cement manufacturing company quotes. Intense competition drives them to find innovative methods to lower these costs and thus, stay market leaders.

The process of bagging & de-bagging of cement for movement between the manufacturing unit to distributors is one of the contributors to the logistics cost. This can be reduced by carrying cement in bulk, rather than in bags. However, sometimes when adequate storage facilities are not arranged for, this bagging and de-bagging process becomes necessary which results in increased logistics cost. Other factors that influence cement distribution would be market demand, seasonal surges, government policies, political lobbies, connectivity, infrastructure, technology, country geography, history and culture.

Cement distribution solutions

Many cement manufacturers have created applications that can be downloaded to place order for cement or get to know the availability of their preferred brand at the nearest distributor or retailer. A new concept of cement marketplace has also been in the being for some years now. It is online shopping of cement where small and large quantities of cement can be purchased online. These eCommerce platforms are gaining popularity by the day.

Selection of distribution channels

Any cement business must look at benchmarking against the best practices adopted by their competitors and adopt a similar model to achieve larger markets and cost efficient channels. Cost efficiency can be determined by analysing production and delivery cost of cement at all stages. The best cost-benefit ratio helps come to this decision.

While selecting a distribution channel, an organisation must look into the demand, its projection and lead time to fulfil that demand. Along with this also comes the market potential which may differ through geographies and depend on the reputation of the brand in the marketplace.

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Concrete

UltraTech to Deploy 600+ Electric Trucks by Dec 2026

Cement major expands green logistics to cut emissions across supply chain

Published

12 minutes ago

September 3, 2026

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UltraTech Cement Limited, an Aditya Birla Group company, plans to expand its electric vehicle fleet in logistics operations to more than 600 EV trucks by December 2026, strengthening its green transport initiatives.

The company has signed service agreements with leading EV prime mover manufacturers, including Tata Motors, Ashok Leyland, IPLTech, Energy in Motion and Sany, along with their subsidiaries and logistics partners, for deploying electric trucks.

The expanded fleet will transport around five million MT of clinker and other key materials annually across Gujarat, Uttar Pradesh, Madhya Pradesh, Rajasthan, Chhattisgarh, Maharashtra and Odisha. Once operational, the fleet is expected to reduce annual CO₂ emissions by over 1,17,000 tonnes and replace nearly 39 million litres of diesel consumption.

K C Jhanwar, Managing Director, UltraTech Cement Limited, said the company is extending sustainability beyond its manufacturing plants by adopting greener logistics solutions and decarbonising its value chain.

UltraTech has been among the early adopters of sustainable transport in the cement sector, introducing CNG trucks in 2021 and electric trucks in 2024. The company currently operates more than 850 trucks under its green logistics programme, including CNG and electric vehicles.

With a grey cement capacity exceeding 200 MTPA in India, UltraTech is integrating electrification across its logistics network, covering mine-to-plant movement and inter-plant transportation of clinker and other materials.

Concrete

UltraTech Cement expands green logistics with 600+ electric truck fleet

Published

3 hours ago

September 3, 2026

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The e-truck fleet will be used to transport five million MT of clinker and other key materials with potential of over 1,17,000 tonnes of net annual CO₂ reduction, displacing the equivalent of 39 million litres of diesel per year.

Mumbai

UltraTech Cement Limited, an Aditya Birla Group company and the world’s largest cement company by sales volume and capacity outside China, has announced that it will scale up its electric vehicle fleet in its logistics operations to 600+ EV trucks by December 2026.

UltraTech has signed service contracts with leading EV prime mover manufacturers including Tata Motors, Ashok Leyland, IPLTech, Energy in Motion and Sany, along with their subsidiaries and other third-party logistics providers, to deploy EV trucks.

The total fleet of 600+ EV trucks will transport about five million MT of clinker and other key materials per annum across Gujarat, Uttar Pradesh, Madhya Pradesh, Rajasthan, Chhattisgarh, Maharashtra and Odisha. Once fully operational, this fleet of over 600 EV trucks will enable a net annual CO₂ reduction of more than 1,17,000 tonnes, displacing the equivalent of 39 million litres of diesel per year.

K C Jhanwar, Managing Director, UltraTech Cement Limited, said, “UltraTech is expanding sustainability beyond its plants by adopting greener logistics solutions. This large-scale transition to green logistics underscores our focus on decarbonising every link of our value chain and supports our commitment to achieving Net Zero.”

UltraTech has been a pioneer in advancing sustainable transport in the cement sector, being the first cement company to deploy heavy-duty electric trucks for long-haul transport of clinker and other materials at scale. The company was among the first in India to introduce green logistics, deploying CNG trucks in 2021 and electric trucks in 2024. UltraTech currently operates 850+ trucks as part of its green logistics operations, including CNG and electric trucks.

UltraTech, with a grey cement capacity of over 200 MTPA in India, operates one of the country’s most complex logistics networks. Its electrification strategy covers the entire supply chain—from mine-to-plant movement to inter-plant transport of clinker and other key materials.

The $ 10 billion UltraTech, the cement flagship company of the Aditya Birla Group, has a total Grey Cement capacity of 205.5 MTPA and White Cement/Putty capacity of 3.2 MTPA. It is a signatory to the GCCA Climate Ambition 2050 and has committed to the Net Zero Concrete roadmap announced by GCCA.

Concrete

CarbonStrong Raises Rs 125 Million To Scale Low Carbon Cement Tech

To build capacity of 100,000 tonnes a year

Published

6 days ago

August 28, 2026

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CarbonStrong has raised Rs 125 million (125 mn) to scale a low carbon cement technology and build commercial production capacity. The startup was founded in 2022 by Harsh Jain and Vikramaditya Singh and has moved from customer trials to plans for industrial supply. The company said its material replaces up to 50 per cent of cement in concrete while reducing costs and improving durability.

CarbonStrong states the product is around 30 per cent cheaper than cement and compatible with existing concrete plants, reducing the need for new equipment and operational disruption. Trials and paid pilots have been conducted in Bengaluru, Hyderabad and Chennai with demonstration projects involving ready-mix firms and precast manufacturers. Compatibility with current workflows forms a central part of the commercial strategy, aiming to ease adoption by builders and contractors.

The funding will support construction of a facility with capacity of up to 100,000 tonnes (100,000 t) a year over the next two years to supply early customers commercially. The firm is also developing materials from steel slag, copper slag and mine tailings to expand its feedstock base, while noting the technical challenge of homogenising different waste streams. Recognition by HCL ClimaForce in 2026 and by the Avaana-Startup India-NITI Aayog AIM Grand Challenge in 2025 has underscored progress.

Industry adoption remains the principal test and will require consistent material performance, supply reliability and competitive economics. CarbonStrong projects the Indian market for cement substitutes could reach Rs 250 billion (250 bn) by 2030 and has set an ambition to produce 10 million tonnes a year by 2035 (10 mn t), a target far above its near term capacity. Moving from pilots to production demands capital, manufacturing discipline and customers willing to specify the material beyond demonstrations. The recent Rs 125 million raise is intended to fund the next phase of scale and to demonstrate that industrial waste can become a dependable input for lower carbon construction.