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Project size is key to shift to bulk supplies

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Anand Kumar Sharma, Logistics Head, JK Cement, brings to light the advantages of bulk distribution of cement and also focuses on the key changes that the industry is likely to witness such as innovations in types of cement and increasing role of e-commerce.

What is the volume of production in your cement plants and how much of it goes in bulk distribution?
Volume of cement production in FY22 is close to 12 million tonnes out of which approximately 8 per cent was part of bulk distribution.

Which is the most suitable mode of transport for carrying large quantities of cement and why?

  • Railways is the most suitable mode of transport for carrying large quantities of cement on longer lead destinations.
  • Railways have lower freight costs compared to road transport, especially when shipping high volumes.
  • With the continuous increase of diesel rates in India, road freights consist of almost 40 per cent of fuel cost which makes it costlier than rail freights
  • Railways have standardised transit schedules, which aren’t hindered by traffic and weather.
  • Poor road infrastructure, vehicle movement restrictions on routes passing through villages and towns, add to delays and underutilisation of logistics assets, adding to cost increases which is not in case of railways.

Sea transport is the optimal mode of transportation and carries huge volumes of load. The transportation is economical compared to rail as well as road transport routes, which are comparatively congested but have very limited sources.

What are the various advantages attached to bulk distribution of cement?
The advantages attached to the bulk distribution of cement are as follows:

  • The loss on account of multiple handling and occasional bursting of bags is totally avoided.
  • Pilferage during transit and at the site is avoided
  • Dust emissions at railway yards, cement handling godowns, transportation by trucks and construction sites are now a major concern in cities. The resultant Suspended Particulate Matter (SPM) levels lead to crores of rupees being spent by the government towards health related issues. The use of bulk cement through modern bulk terminals and related equipment would significantly contribute to the reduction in pollution levels.
  • Plastic bags, which are currently the preferred mode of packing used in India, are not ideal as they are not environment friendly. Since these bags are non-biodegradable, it’s not a viable option therefore, bulk transportation avoids such pollution.
  • Moreover, a major advantage of transporting bulk cement is the easy availability in large volumes and consistent quality.
  • Transportation of cement in bulk has been able to reduce the project implementation time and cost optimisation.

How does distribution or transportation of cement in bulk impact the end user cost of the product?
There are two aspects of cost impact on the end user in relation to transportation of cement in bulk:
Institutional sales: In the institutional segment, there are some benefits of bulk supplies to our customers. However, it requires storage infrastructure hence there’s a cost factor. This cost would be set off by discounts/price negotiations on bulk supplies. In the case of bagged cement, apart from bag cost there would be handling cost, first at the time of delivery and other at the time of usage. So, this cost can be avoided by setting up bulk silos. However, project size is key to shift to bulk supplies.
Trade/IHB sales: With the current infrastructure (load size) it would be difficult to shift bag supplies to bulk. The IHB sector contributes 55 to 60 per cent of total cement demand and the lot size is also small. Average consumption quantity in this space is around 700 to 800 bags/site in a span of 4 to 5 months which is effectively one bulker load but the customer buys this quantity of cement in small lots – of 50 bags or less. So, it would not be feasible to shift a very big chunk of supplies to bulk.
Apart from this, the transportation cost of bulk supplies is much higher than bagged supplies for one very common reason – i.e. return load.

What are the major challenges or gaps faced by your organisation in the bulk distribution domain?
Major challenges faced by our organisation in the bulk distribution domain are as follows:

  • There is always a storage infrastructure challenge at bulk sites due to which silos are needed at customer sites, which leads to some cost implications. Moreover, it is feasible only in the case of long term projects/sites of at least two years of duration. Therefore, there is a need to explore infrastructure of movable silos to overcome this challenge but again this will involve a major cost impact.
  • Though over the period bulk demand for cement has increased but not to the extent where timely unloading of the fleets and vehicle rotation can be optimised. In bulk distribution vehicles often get detained at customer sites for multiple days due unforeseen circumstances like a vehicle breakdown at the site or rain etc.

Explain your organisation’s distribution model.

How can a curated logistics system help in achieving the sustainability goals for the industry?

  • The curated logistics system would help in the following ways to achieve the sustainability goals for the cement industry.
  • Clean energy resources – Companies have to explore EVs and CNG/LNG vehicles more and more to reduce the carbon footprint.
  • Shift of mode of transport to rail/sea would help in achieving sustainability goal.
  • Government has to increase the carrying capacity of the fleet thereby resulting in lower fuel to carry higher volume.
  • Eco-driving education and tracking of drivers is another significant way to reduce fuel consumption. It also minimises the risk of possible damages to the driver.
  • Using tyre pressure sensors helps fuel consumption by up to 12 per cent at lower speeds, as well as extending the tyre’s life.

What are the key changes the industry is likely to witness in the near future?
Key changes the industry is likely to witness in the near future are:
Increase in demand: Based on Kanvic’s Cement Demand Projection Model developed specifically for Indian Cement Review Vision 2030 shows that cement demand in India will increase by 116 per cent by 2030 to 660 million metric tons (MMT) at a CAGR of 6.6 per cent.
Paper bags for cement: Cement manufacturers will switch to sustainable solutions and replacing conventional plastic bags with high shelf life paper bags. The use of paper bags for cement packaging enhances the aesthetic appeal and provides ease of printability. Paper bags for cement packaging will ensure product protection from moisture.
Increase of Ready Mix Concrete (RMC): RMC allows speedy construction through programmed delivery at the site and also reduces the labour cost. RMC comes with consistency in quality through accurate and computerised control of sand aggregates and water as per mix designs. Production of
RMC helps in minimising cement wastage due to bulk handling.
Shrinking IHB sector: With rapid urbanisation and infrastructure developments in urban areas, it is predicted that the IHB sector will shrink and large builder/commercial infrastructure will increase
Increase of new types of cements: Limestone Calcined Clay Cement (LC3) a new environment-friendly additive for concrete that makes it easier to produce high-performance concrete at a lower cost. This cement has shown that it can reduce as much as 30 per cent CO2 emissions and 20 per cent energy consumption in cement production. Still, the performance of the concrete produced using this cement exceeds those using cement commercially available today in most aspects.
Cement in e-commerce: India’s e-commerce industry is expected to grow by 84 per cent by 2024. E-commerce platforms offer customers an array of cement brands to choose from at the best competitive price by removing middle men cost. There are a few players who have already forayed into the online procurement of cement via e-commerce platforms in the last one or two years

-Kanika Mathur

Concrete

India Sets Up First Carbon Capture Testbeds for Cement Industry

Five CCU testbeds launched to decarbonise cement production

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The Department of Science and Technology (DST) recently unveiled a pioneering national initiative: five Carbon Capture and Utilisation (CCU) testbeds in the cement sector, forming a first-of-its-kind research and innovation cluster to combat industrial carbon emissions.
This is a significant step towards India’s Climate Action for fostering National Determined Contributions (NDCs) targets and to achieve net zero decarbonisation pathways for Industry Transition., towards the Government’s goal to achieve a carbon-neutral economy by 2070.
Carbon Capture Utilisation (CCU) holds significant importance in hard-to-abate sectors like Cement, Steel, Power, Oil &Natural Gas, Chemicals & Fertilizers in reducing emissions by capturing carbon dioxide from industrial processes and converting it to value add products such as synthetic fuels, Urea, Soda, Ash, chemicals, food grade CO2 or concrete aggregates. CCU provides a feasible pathway for these tough to decarbonise industries to lower their carbon footprint and move towards achieving Net Zero Goals while continuing their operations efficiently. DST has taken major strides in fostering R&D in the CCUS domain.
Concrete is vital for India’s economy and the Cement industry being one of the main hard-to-abate sectors, is committed to align with the national decarbonisation commitments. New technologies to decarbonise emission intensity of the cement sector would play a key role in achieving of national net zero targets.
Recognizing the critical need for decarbonising the Cement sector, the Energy and Sustainable Technology (CEST) Division of Department launched a unique call for mobilising Academia-Industry Consortia proposals for deployment of Carbon Capture Utilisation (CCU) in Cement Sector. This Special call envisaged to develop and deploy innovative CCU Test bed in Cement Sector with thrust on Developing CO2 capture + CO2 Utilisation integrated unit in an Industrial set up through an innovative Public Private Partnership (PPP) funding model.
As a unique initiative and one of its first kind in India, DST has approved setting up of five CCU testbeds for translational R&D, to be set up in Academia-Industry collaboration under this significant initiative of DST in PPP mode, engaging with premier research laboratories as knowledge partners and top Cement companies as the industry partner.
On the occasion of National Technology Day celebrations, on May 11, 2025 the 5 CCU Cement Test beds were announced and grants had been handed over to the Test bed teams by the Chief Guest, Union Minister of State (Independent Charge) for Science and Technology; Earth Sciences and Minister of State for PMO, Department of Atomic Energy, Department of Space, Personnel, Public Grievances and Pensions, Dr Jitendra Singh in the presence of Secretary DST Prof. Abhay Karandikar.
The five testbeds are not just academic experiments — they are collaborative industrial pilot projects bringing together India’s top research institutions and leading cement manufacturers under a unique Public-Private Partnership (PPP) model. Each testbed addresses a different facet of CCU, from cutting-edge catalysis to vacuum-based gas separation.
The outcomes of this innovative initiative will not only showcase the pathways of decarbonisation towards Net zero goals through CCU route in cement sector, but should also be a critical confidence building measure for potential stakeholders to uptake the deployed CCU technology for further scale up and commercialisation.
It is envisioned that through continuous research and innovation under these test beds in developing innovative catalysts, materials, electrolyser technology, reactors, and electronics, the cost of Green Cement via the deployed CCU technology in Cement Sector may considerably be made more sustainable.
Secretary DBT Dr Rajesh Gokhale, Dr Ajai Choudhary, Co-Founder HCL, Dr. Rajesh Pathak, Secretary, TDB, Dr Anita Gupta Head CEST, DST and Dr Neelima Alam, Associate Head, DST were also present at the programme organized at Dr Ambedkar International Centre, New Delhi.

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Concrete

JK Lakshmi Adopts EVs to Cut Emissions in Logistics

Electric vehicles deployed between JK Puram and Kalol units

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JK Lakshmi Cement, a key player in the Indian cement industry, has announced the deployment of electric vehicles (EVs) in its logistics operations. This move, made in partnership with SwitchLabs Automobiles, will see EVs transporting goods between the JK Puram Plant in Sirohi, Rajasthan, and the Kalol Grinding Unit in Gujarat.
The announcement follows a successful pilot project that showcased measurable reductions in carbon emissions while maintaining efficiency. Building on this, the company is scaling up EV integration to enhance sustainability across its supply chain.
“Sustainability is integral to our vision at JK Lakshmi Cement. Our collaboration with SwitchLabs Automobiles reflects our continued focus on driving innovation in our logistics operations while taking responsibility for our environmental footprint. This initiative positions us as a leader in transforming the cement sector’s logistics landscape,” said Arun Shukla, President & Director, JK Lakshmi Cement.
This deployment marks a significant step in aligning with India’s push for greener transport infrastructure. By embracing clean mobility, JK Lakshmi Cement is setting an example for the industry, demonstrating that environmental responsibility can go hand in hand with operational efficiency.
The company continues to embed sustainability into its operations as part of a broader goal to reduce its carbon footprint. This initiative adds to its vision of building a more sustainable and eco-friendly future.
JK Lakshmi Cement, part of the 135-year-old JK Organisation, began operations in 1982 and has grown to become a recognised name in Indian cement. With a presence across Northern, Western, and Eastern India, the company has a cement capacity of 16.5 MTPA, with a target to reach 30 MT by 2030. Its product range includes ready-mix concrete, gypsum plaster, wall putty, and autoclaved aerated fly ash blocks.

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Concrete

Holcim UK drives sustainable construction

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Holcim UK has released a report titled ‘Making Sustainable Construction a Reality,’ outlining its five-fold commitment to a greener future. The company aims to focus on decarbonisation, circular economy principles, smarter building methods, community engagement, and integrating nature. Based on a survey of 2,000 people, only 41 per cent felt urban spaces in the UK are sustainably built. A significant majority (82 per cent) advocated for more green spaces, 69 per cent called for government leadership in sustainability, and 54 per cent saw businesses as key players. Additionally, 80 per cent of respondents stressed the need for greater transparency from companies regarding their environmental practices.

Image source:holcim

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