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Digitisation is very significant in today’s times

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Swapnil Shah, Founder and CEO, Freight Tiger, emphasises the need to digitise logistics processes for better management and optimum productivity.

What is the role of digitalisation in optimising the distribution and logistics
of cement?

Digitalisation plays a huge role. It has a massive impact and almost every customer we work with today has a chief digital officer. Digitisation is very significant in today’s times. Companies are also investing in dedicated digital teams and it is happening across all industries. Industry leaders are not only hiring digital experts for their operations but are also involved with the same for their business. This is about digitalisation only from an impact involvement point of view.
Looking into the details of what digitisation means, there are a whole lot of things that are happening today. To share a few examples,

  • It allows the ability to have visibility into every delivery in terms of location, ETA, etc. Customers are consuming it for their own use, within their company, and they want to give that visibility to their end customer, too. So, the most basic use of digitalisation is bringing visibility for every order to customers and helping them plan better.
  • Being digital allows companies to track their footprint, get data analytics, understand issues with their services and analyse their costs. This helps them make many distribution decisions based on location data, average transit times, lead distance and more.
  • Often cement deliveries get diverted and this is a huge problem that most service providers are trying to resolve. With digitalisation and use of technology, cement makers can keep a track of their actual end user and understand their issues and try to work on them.

How can your system make a difference in managing cost efficiency for the cement industry?
We essentially give transportation management software and a visibility platform. Transportation management software is changing rapidly today. Freight Tiger builds a unifying platform as a connective tissue among all IT platforms, stakeholders and vendors. That is the first role we play. We help our customers manage order to delivery timelines in a very tight manner.
Often there are minor issues, like distances not being correct for which freight is paid and sometimes there is backloading at cement plants. In these cases, Freight Tiger allows customers to make sure the distances are correct. If diversions or backloading happens, it gives visibility into it. That’s a unique solution that we provide.
Measurement of performance is another area where we play a role. In terms of performance of distribution footprint, optimised lead time, per kilometre rate, lead distance, free trade routes etc. Freight Tiger allows you to understand service quality and its competitive edge over the market in terms of the delivery SLAs. We allow companies to measure and influence all of this in their operations.

Tell us about 360-degree management of freight operations for the cement industry through your platform.
On the one hand, you are sourcing raw material, and on the other, you are making all these deliveries either through your distribution footprint or directly from the plant. So, a 360-degree approach means the total cost of raw material sourcing logistics, the whole cost end-to-end, day-to-day distribution, percentage of deliveries directly serviced through plants versus through a series of distribution layers.

How do you connect the Freight ecosystem for the cement industry with your platform?
Freight Tiger is a technology- and a product-first company. We are a neutral party to all that happens in our customers’ environment.
What I mean by neutral is we do not play the role of an aggregator or a logistics service provider. We have no conflict with the existing logistics service providers that the cement company uses. We integrate telematics vendors. We have done close to 200 telematics company integrations, so we stay neutral. We believe that collaboration and neutrality will take us in the industry a lot farther than just trying to remove someone from the value system.
These two are very pivotal when you think about Freight Tiger as a player in this ecosystem.

What are the key pain points in the logistics of cement. How can you help resolve the same?
First and foremost, there is inefficiency and waiting during loading or unloading of the material at the plants. Transit times also are not monitored well. So, part of the inefficiency is because people have to wait due to space constraints or other reasons.
Secondly, cement organisations often have to service their customers in a relatively tighter delivery window. That is a pain point that involves making day-to-day decisions about choosing the right way to service the customers at an optimum cost, without compromising the quality of product or service.
Another major pain point is that cement organisations do not know where their product is unloading. This means that they do not know their end consumer. This is a unique problem in the cement industry because deliveries get diverted. Participants in the ecosystem may divert the deliveries based on requirements. So, knowing the exact unloading location and knowing the end customer is a massive gap in the cement industry.
Digitising proof of delivery and freight invoicing is something we’ve never seen before. Not only for the cement companies, but everyone who works in the value chain – the trucker, the logistics provider, the transporter – each one of them can benefit from this and that would be a big step to remove paper trails and make them into digital records. When we think about EPOD and digital freight invoicing that you do at the end of the day ensures all stakeholders are benefited from it. Cement companies have contracts with logistics providers or transporters or they sometimes hire fleet owners and trucks from the market, if they do not have their own. Any solution or change ultimately needs to impact everyone in the ecosystem. EPOD and digital freight invoicing achieves just that by easing the operations for everyone.

How do you foresee the changing face of logistics for the Indian cement industry?
It is my understanding that as a cement manufacturer, I would like to know my customer or where my product is exactly getting unloaded, instead of directionally knowing where the product is headed to. Another important factor is sustainability, whereas as a manufacturer or distributor the target would be to have the same or more deliveries by travelling less, optimising and reducing empty miles.
Cement companies are also moving towards alternative fuel vehicles, electric vehicles for some part of their delivery. I see that as a big change. And overall, analytics and how some sort of machine learning AI can help me make better decisions day to day. That is also on everyone’s mind. And, I think it is going to transform how people make decisions going forward. Those are the few things I will say are quite important as we look at the future.

Kanika Mathur

Concrete

Ramco Cements employee wins silver at Japan Para Badminton

He partnered with Paralympian Sukanth Kadam to win this medal.

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Dinesh Rajaiah, an employee of Ramco Cements, won Silver medal in the men’s doubles event in the Japan Para Badminton International 2024 held in Tokyo. He partnered with Paralympian Sukanth Kadam to win this medal. Notably Sukanth Kadam had finished 4th in the men’s singles in Paris Paralympic Games which concluded in September 2024.

Japan Para Badminton International 2024 was held in Tokyo from 22nd to 27th October 2024 where more than 200 players were in the fray.

Dinesh, despite suffering a shoulder injury and having his right shoulder heavily taped, treated the audience to a nail biting final. The duo was down 16-20 in the second set and fought back to take the game to the third set where they lost 16-21. Being the last match of the event, the pair won hearts of the audience for their never give up spirit.

Dinesh breaks into the top 15 in the BWF Para World Ranking in men’s singles category and is now ranked 14 in the world. Ramco Cements has been supporting Dinesh Rajaiah ever since he showed his talent in an inter unit tournament of Ramco Cements in 2017. The company had then encouraged him to take up professional badminton coaching and has been sponsoring him for all major international tournaments. Ramco Cements wishes Dinesh all success in future tournaments.

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Concrete

Asian Paints Sees 43.71% Profit Dip

Asian Paints reports significant profit decline in Q2.

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Asian Paints has reported a 43.71% year-on-year decline in its net profit for Q2 FY25, amounting to a substantial reduction in earnings. The leading paint manufacturer attributed this decline primarily to increased input costs, a competitive market environment, and a slowdown in consumer demand. Despite the lower profit, the company’s revenue saw a moderate increase, reflecting its ability to maintain strong market presence in the face of challenges.

The company’s margins have been impacted by rising raw material prices, particularly in key components used in paint production. Additionally, the ongoing economic conditions, coupled with sluggish demand in certain segments, have put pressure on profitability. However, Asian Paints remains optimistic about its long-term prospects, focusing on strategic innovations and expanding its market share in the premium product segments.

In response to these challenges, the company has reaffirmed its commitment to cost-efficiency and improving operational performance. Asian Paints continues to explore new avenues for growth, including enhancing its product portfolio and leveraging its extensive distribution network to drive sales across diverse consumer segments.

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Concrete

Ambuja Cements seeks CCI approval to acquire majority stake in Orient

Ambuja Cements’ stake would rise to 72.8 per cent, as per the notice filed with the CCI.

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Billionaire Gautam Adani-led Ambuja Cements has sought approval from the Competition Commission of India (CCI) for the acquisition of a majority stake in CK Birla group firm Orient Cement in a deal worth Rs 81 billion.

According to a notice from the CCI, the proposed transaction involves a two-stage acquisition process, which was initiated through two share purchase agreements (SPAs) on October 22, 2024. As part of the deal, Ambuja Cements will initially acquire a 46.80 per cent stake in Orient Cement. This includes a 37.90 per cent stake from the current promoter group and an additional 8.90 per cent from certain public shareholders.

The notice further stated that following the acquisition of shares, an obligation would be triggered for the acquirer to make an open offer under the Sebi’s SAST (Substantial Acquisition of Shares and Takeovers) rules, aimed at acquiring up to 26 per cent of the expanded share capital of the target company. If the open offer is fully accepted, Ambuja Cements’ stake would rise to 72.8 per cent, as per the notice filed with the CCI.

In October, the Adani Group, led by Gautam Adani, had announced the signing of a binding agreement to acquire Orient Cement (OCL) at an equity value of Rs 81 billion. This acquisition would increase Adani Cement’s capacity by 16.6 million tonnes per annum (MTPA), which is operated through Ambuja Cements.

Ambuja Cements, part of the diversified Adani Group, is a leading cement and building materials company in India. It operates 22 integrated cement plants, 10 bulk cement terminals, and 21 grinding units across the country.

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