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A balance has to be drawn between cost and service

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Vimal Choudhary, President and Logistics Head – HeidelbergCement India, discusses how bulk distribution impacts cost and the measures his company is taking to ensure smooth operations of their distribution channels.

What is the volume of production in your cement plants and how much of it goes in bulk distribution?
Currently, HeidelbergCement India produces about 9MT cement pan-India. Our production is divided in two parts, central India and south India producing 4.8 MT and 4.2 MT respectively.
23 per cent produced in the south is transported through bulk. In central India, we do not transport on a bulk basis.

Which is the most suitable mode of transport for carrying large quantities of cement and why?
Depending on the distance, we choose the most viable mode of transport for cement. Preference is always based on that. For shorter distances, roadways are considered as it takes less time to reach the customer, handling is less and cost is less. If cement needs to be sent to a longer distance, then railways is preferred as it would allow a much larger quantity to be transported in one go.
Earlier there were concessions allotted to cement manufacturers for transporting cement through the railways, however, those have been withdrawn now. However, what we choose as a mode of transport is not only based on cost, it is also dependent on the service to the customer.
By road, the end product directly reaches the customer. The bag quality remains good with the least amount of deterioration to the bag. But in case of rail, the material goes through material handlings like from factory to railway platform, platform to cargo containers. It is then loaded into smaller trucks at the destination and then reaches the customer. In some cases, it goes to the warehouse, then railways, then customers. This amount of bag handling hampers the bag quality. When the distance to be covered is beyond 300 km, then we consider rail transport as it also presents a large cost advantage.

What are the various advantages attached to bulk distribution of cement?
There are various advantages attached to bulk distribution of cement.
Foremost advantage in transporting cement by bulk is to the environment. In this transportation, we end up using a smaller number of plastic bags which would otherwise be used in smaller quantities of transport. Along with that, dust emission is also very low as compared to loading and unloading of smaller quantities.
A major advantage of transporting cement in bulk is the saving of bag cost. It costs less than transporting smaller quantities and that is why it is widely considered.
A technical advantage is experienced during monsoon. Due to the high humidity levels and moisture, cement usually gets hydrated, which is a loss for us. However, in bulk transportation there is no hydration as the bulkers are air-tight.
Smaller quantities bagged cement present a large chance of adulteration, however, that is not possible in case of bulk transportation. Once the bulker is locked, it is unlocked only at the destination upon reaching the customer.

How does distribution or transportation of cement in bulk impact the end user cost of the product?
In case of bulk, we save a certain amount on the bag cost, but pay a higher amount in freight cost. Example, the cost of a bulker is higher than the bulk trucks. More or less, the cost almost balances itself. Ultimately, the customer gets to witness only a minor difference in their cost. However, bulk buyers get good discounts from us as they pick up large quantities from us.
This cost and demand are different from market to market.

What are the major challenges or gaps faced by your organisation in the bulk distribution domain?
One of the major challenges that we face with bulk cement is consistency in orders. We cannot transport this bulk of transport to anyone else. There are limited buyers in the market. If the orders are received on a regular basis, our system works smoothly and the customer also keeps receiving their cement load in a timely fashion.
Sometimes in South India, we face detention time for the bulkers. Sometimes when we send our bulker to the customer, their silo may already be full. They then utilise their pre-existing load, empty the silo to accommodate cement from the bulker. This duration accounts as cost to us as it is a detention time for the bulker.
Countering this challenge is dependent on the market because bulk buyers are limited. For example, in Bangalore, we sell 25 per cent cement in bulk and 75 per cent cement in bags. We cannot switch over the customers. Only those in need will purchase or consume the product. This gap can be filled by installing more silos which will create space for some more quantity of cement storage and allow bulkers to be free sooner with a lesser detention time.
There are some organisations that are providing silos to customers to promote purchases in bulk cement. The idea behind this is to work towards reducing carbon emission. And bulk cement is preferred as it is environment friendly.
Taking examples from the mature markets of the western countries, they are all consumers of bulk cement. In India, buyers only from the big cities have bulk purchases, buyers from other cities still prefer purchases in small quantities.

Is there a specific reason why international markets have bulk cement transportation in much larger quantities?
Traditionally people in the international markets prefer a ready mix. In some countries there are laws that do not allow mixing to be done at the site, hence, the consumption of ready mix. These users consume bulk cement. Bag cement is used for smaller repair purposes, but if a larger construction project is happening, bulk ready mix orders are placed.

Explain your organisation’s distribution model.
Our distribution in central India is 55 per cent by rail and 45 per cent by road. In south India, 90 per cent distribution happens by road and 10 per cent by rail.
This difference between the use of rail and road in South India and Central India stem from the difference in the distances. In South India, point A to point B is shorter by road as compared to by rail.
We are operating about 70 warehouses in central India and about 90 warehouses in south India. This helps us provide better services to our customers. As a logistics manager, I will always prefer direct delivery to the customer as it involves the least damage to the product and saving of cost as well. But ultimately, a balance has to be drawn between the cost and the service to the customers and warehouses allow us to do that. Most of these warehouses are
maintained in bigger cities where the entry restrictions are a minimum.

Is the preference of using roadways more than railways also stemming from the road conditions of the country?
The road conditions in India have in recent times become so much better. National Highways are in good condition and provide great connectivity as well. Earlier we used to have smaller trucks – 15 tonnes or 18 tonners, the size of those have increased to become 36 tonners. To take cement to warehouses, we sometimes use 45 tonner trucks also.
Roadways have largely improved their condition as compared to railways. Earlier the industry transported 36 per cent by rail, 62 per cent by road and 2 per cent by sea. Now the rail coefficient has significantly dropped to 25 per cent. Since it is easier to handle the material, organisations are preferring roadways as a medium to transport their product.
At the railway platforms, we have to deal with unions for secondary movements or product handling which is a tricky affair. Roadways take the material to the customers with minimum handling.

How can a curated logistics system help in achieving the sustainability goals for the industry?
Logistics of a cement plant can contribute to the sustainability goals in a couple of ways.
Increasing the transportation by rail will result in a better environment. The carbon emission in railway transportation is much lower compared to roadways. Bulk cement transportation should be increased, as it will largely reduce the use of plastic bags and the dust emission that happens in loading and unloading of smaller packs. From the warehouses, we use trucks that use diesel or other fossil fuel, instead, the organisations must use CNG fitted trucks for shorter delivery distances. This will largely reduce the carbon dioxide emitted and better the environment.
Our organisation is focused on achieving its sustainability goals. We plant trees and also push our transporters to plant trees as well.

What are the key changes the industry is likely to witness in the near future?
With rising competition in the industry, service levels have become very important to the customers. They always chose those that provide materials the fastest. Services for the customers are going to significantly increase and become better in the
near future.
Driver scarcity is also something I can see in the near future for the industry. Currently we also have availability of trucks but a lack of drivers. This is happening mainly because it isn’t a lucrative enough business and requires a much larger labour. This is the reason people aren’t going for truck driver training and are opting for other paying roles. The industry needs to build an incentive plan to attract more drivers for our fleet.
Another change in the future will be reduced lead time and distance from the markets.
Some organisations have started installing grinding units closer to the market to achieve the same.
And more organisations will follow a similar pattern. This will also make material reach much faster to the customers.

Kanika Mathur

Concrete

UltraTech Appoints Jayant Dua As MD-Designate For 2027

Executive named to succeed current managing director in 2027

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UltraTech Cement has appointed Jayant Dua as managing director (MD) designate who will take charge in 2027, the company announced. The appointment signals a planned leadership transition at one of the country’s largest cement manufacturers. The board has set a clear timeline for the handover and has framed the move as part of a structured succession plan.

Jayant Dua will be referred to as MD after assuming the role and will be responsible for overseeing operations, strategy and growth initiatives across the company’s network. The company said the designation follows established governance norms and aims to ensure continuity in executive leadership. The appointment is expected to allow a phased transfer of responsibilities ahead of the formal changeover.

The decision is intended to provide strategic stability as UltraTech Cement navigates domestic infrastructure demand and evolving market dynamics. Management will continue to focus on operational efficiency, capacity utilisation and cost management while aligning investments with long term objectives. The board will monitor the transition and provide further information on leadership responsibilities closer to the effective date.

Investors and market observers will have time to assess the implications of the announcement before the change is effected, and analysts will review the company’s outlook in the context of the succession. The company indicated that it will communicate any additional executive appointments or organisational changes as they are finalised. Shareholders were advised to refer to formal filings and company releases for definitive details on governance or remuneration.

The leadership change will be managed with attention to stakeholder interests and operational continuity, and the company reiterated its commitment to delivery on ongoing projects and customer obligations. Senior management will engage with employees and partners to ensure a smooth handover while maintaining focus on safety and compliance. Further updates will be provided through official investor communications in due course.

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Concrete

Merlin Prime Spaces Acquires 13,185 Sq M Land Parcel In Pune

Rs 273 crore purchase broadens the developer’s Pune presence

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Merlin Prime Spaces (MPS) has acquired a 13,185 sq m land parcel in Pune for Rs 273 crore, marking a notable expansion of its footprint in the city.

The transaction value converts to Rs 2,730 mn or Rs 2.73 bn.

The parcel is located in a strategic area of Pune and the firm described the acquisition as aligned with its growth objectives.

The deal follows recent activity in the region and will be watched by investors and developers.

MPS said the acquisition will support its planned development pipeline and enable delivery of commercial and residential space to meet local demand.

The company expects the site to provide flexibility in product design and phased development to respond to market conditions.

The move reflects an emphasis on land ownership in key suburban markets.

The emphasis on land acquisition reflects a strategy to secure inventory ahead of demand cycles.

The purchase follows a period of sustained investor interest in Pune real estate, driven by expanding office ecosystems and residential demand from professionals.

MPS will integrate the new holding into its existing portfolio and plans to engage with local authorities and stakeholders to progress approvals and infrastructure readiness.

No financial partners were disclosed in the announcement.

The firm indicated that timelines will depend on approvals and prevailing market conditions.

Analysts note that strategic land acquisitions at scale can help developers manage costs and timelines while preserving optionality for future projects.

MPS will now hold an enlarged land bank in the region as it pursues growth, and the acquisition underlines continued corporate appetite for measured expansion in second tier cities.

The company intends to move forward with detailed planning in the coming months.

Stakeholders will assess how the site is positioned relative to existing infrastructure and connectivity.

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Concrete

Adani Cement and Naredco Partner to Promote Sustainable Construction

Collaboration to focus on skills, technology and greener practices

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Adani Cement has entered a strategic partnership with the National Real Estate Development Council (Naredco) to support India’s construction needs with a focus on sustainability, workforce capability and modern building technologies. The collaboration brings together Adani Cement’s building materials portfolio, research and development strengths and technical expertise with Naredco’s nationwide network of more than 15,000 member organisations. The agreement aims to address evolving demand across housing, commercial and infrastructure sectors.

Under the partnership, the organisations will roll out skill development and certification programmes for masons, contractors and site supervisors, with training to emphasise contemporary construction techniques, safety practices and quality standards. The programmes are intended to improve project execution and on-site efficiency and to raise labour productivity through standardised competencies. Emphasis will be placed on practical training and certification pathways that can be scaled across regions.

The alliance will function as a platform for knowledge sharing and technology exchange, facilitating access to advanced concrete solutions, innovative construction practices and modern materials. The effort is intended to enhance structural durability, execution quality and environmental responsibility across developments while promoting adoption of low-carbon technologies and green cement alternatives. Companies expect these measures to contribute to longer term resilience of built assets.

Senior executives conveyed that the partnership reflects a shared commitment to strengthening quality and sustainability in construction and that closer engagement with developers will help integrate advanced materials and technical support throughout the project lifecycle. Leadership noted the need for responsible construction practices as urbanisation accelerates and indicated that the association should encourage wider adoption of green building norms and collaboration within the real estate and construction ecosystem.

The organisations said they will also explore integrated building solutions, including ready-mix concrete offerings, while supporting initiatives aligned with affordable and inclusive housing. The partnership will progress through engagements, conferences and joint training programmes targeting rapidly urbanising cities and growth centres where demand for efficient and environmentally responsible construction grows. Naredco, established under the aegis of the Ministry of Housing and Urban Affairs, will leverage its policy and advocacy role to support implementation.

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