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A proactive approach facilitates smooth operations

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Prashant Jha, Chief Ready-Mix Concrete and Modern Building Materials Officer, Nuvoco Vistas, stresses the importance of efficiency and reliability in transportation while discussing other intricacies of RMX logistics management.

Tell us about the transportation model followed by your organisation for RMX despatches.
Our transit mixers transport concrete from our production plants to customer sites, selecting capacities ranging from 6 to 9 cu m depending on factors like city location, site specifics, and market dynamics. These transit mixers are sourced from third-parties as per the business requirement that is determined through our Integrated Business Planning (IBP) process. Given the variability of daily volumes, we can experience sudden spikes in demand, which is addressed through our fleet with short-term ‘taxi resources’ promptly and efficiently. This agile approach allows us to adapt swiftly to fluctuating demands while maintaining high service standards.

How are the logistics of the plant managed?
The plant’s monthly sales volume targets are established through the IBP process, for guiding to the formulation for enabling efficient resource management. Following the determination of monthly volumes, the transit mixer plan is finalised for each facility. The plant teams collaborate with the customer and sales team to ensure strategic delivery schedules adherences. Any issues are addressed in consultation with customers by a collaborative effort between plant manager, customer and the sales team to ensure the daily delivery targets are met effectively. A proactive approach facilitates smooth operations and customer satisfaction.

With new technology and digitalisation introduced in the system, what impact has it created on the efficiency and cost of the plant?
Our implementation of a Vehicle Tracking System (VTS) in our transit mixers, coupled with Drum Rotation Sensors and GPS integration, has revolutionised our operational efficiency. This advanced technology empowers our plant to monitor transit mixers in real-time, facilitating agile planning for subsequent deliveries and enabling us to provide customers with precise updates on delivery status. Moreover, by leveraging GPS data, we ensure fair variable cost payments based on accurate kilometres travelled, optimising cost management. In addition to enhancing financial transparency, the VTS enables our plant teams to track driver behaviour, allowing us to provide timely feedback and targeted training on safe work practices. This hands-on approach not only improves the safety of concrete transportation but also fosters a culture of continuous improvement within our workforce.
Furthermore, by capturing transit mixer performance data, we gain valuable insights into operational efficiency, enabling us to implement strategic enhancements and maximise productivity. Overall, our integrated system of VTS, Drum Rotation Sensors and GPS technology represents a comprehensive solution that not only enhances operational efficiency and cost-effectiveness but also prioritises safety and continuous improvement in our transportation processes.

What are the key steps that can be taken to further improve the logistics of RMX manufacturing and transportation?
Given our extensive operations across major cities, ensuring the continuous supply of Ready-Mix Concrete (RMX) is essential. Road movement and safety remain a critical area. Adherences to lanes, dedicated infrastructure for heavy vehicle movement would enhance safety for both transit mixers and other vehicles on the road. These changes would facilitate faster and more efficient movement of these vehicles and would significantly contribute to improving overall transportation logistics and infrastructure management in urban environments, promoting economic productivity and sustainable development.

Tell us about the challenges in logistical planning for RMX plants…
Effectively addressing spike volume demand involves proactive resource allocation through predictive analytics and close collaboration with vendors. This includes strategic coordination with local authorities and route planning while managing traffic disruptions in mega cities. To mitigate high waiting times at sites and prevent concrete buildup inside transit mixer bowls, optimising delivery schedules, enhancing on-site logistics and investing in technologies like automated batching systems are important.
These measures collectively ensure timely deliveries while minimising operational challenges and disruptions.

  • Kanika Mathur

Concrete

Gadchiroli Added to JSW’s List in Maharashtra’s Steel City Plan

A significant portion of this investment is likely to be concentrated in Nagpur and Gadchiroli.

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On the first day of the World Economic Forum (WEF) at Davos, the state government signed memorandums of understanding (MoUs) worth over Rs 3.35 trillion for industrial investments in Vidarbha. By 8:30 pm (Indian time), the largest deal was secured with JSW Group, involving investment proposals worth Rs 3 trillion, which are expected to create 10,000 jobs. A significant portion of this investment is likely to be concentrated in Nagpur and Gadchiroli.

The Pune-based Kalyani Group, with interests in the defence and steel sectors, also signed an MoU for an investment proposal in Gadchiroli. According to a source from the state’s industries department, there is a possibility that the company will establish a defence production unit there.

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Concrete

Q3 Preview: UltraTech Cement Set for 26% Drop in PAT

The company’s profit after tax is estimated at Rs 13.04 billion for the third quarter of FY25.

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UltraTech Cement is expected to report a 26 per cent decline in net profit year-on-year (Y-o-Y) for the quarter ending December 31, primarily due to lower realisations and higher depreciation, according to analysts. The company’s profit after tax is estimated at Rs 13.04 billion for the third quarter of FY25.

A survey conducted among five brokerages revealed that UltraTech Cement is projected to achieve a revenue of Rs 166.96 billion, reflecting a 1.2 per cent increase Y-o-Y.

Among the brokerages surveyed, Axis Securities presented the most optimistic projections, while B&K Securities predicted the slowest growth in both revenue and profit after tax (PAT) for the company.

According to Yes Securities, the company’s volumes are anticipated to grow by 9 per cent Y-o-Y to reach 29.76 million tons per annum. The growth in volumes is attributed to strong demand from institutional players and continued momentum in the housing sector.

Analysts noted that after weak demand growth of around 1-2 per cent in H1FY25, industry cement demand improved in Q3FY25. However, Motilal Oswal Financial Services, in its quarterly update, pointed out regional challenges, including pollution-related curbs in Delhi-NCR, sand scarcity, and unfavourable weather conditions such as severe cold and unseasonal rains, which negatively impacted overall demand growth.

The average cost of producing one ton of cement (excluding fixed costs) is expected to decrease by 4 per cent Y-o-Y, amounting to Rs 4,761 in Q3FY25.

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Concrete

Indian Steel Ministry Seeks $1.7 Bn for Low-Carbon Steel Production

India is actively working on a green steel policy

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India’s Ministry of Steel has requested 150 billion rupees (approximately $1.74 billion) from the federal budget to incentivise mills to produce low-carbon steel, according to two government sources familiar with the matter.

As the world’s second-largest steel producer after China, India is actively working on a green steel policy aimed at reducing emissions in steel production. This initiative forms part of the country’s broader efforts to meet its net-zero target by 2070, as outlined by Prime Minister Narendra Modi.

The steel ministry plans to use the funds to offer incentives that encourage emissions reduction, improve research and development, increase raw material efficiency, and incentivise banks to offer lower interest rates on renewable energy loans. These details were shared by the sources, who requested anonymity as the discussions are private.

The steel ministry did not respond to an email seeking comment.

Once the funds are allocated, the ministry will submit the proposal for the cabinet’s approval. In December, the government defined ‘green steel’ as steel produced with emissions lower than 2.2 metric tons of CO2 per tonne of finished steel.

The proposed incentives would remain in place until 2030, with green steel potentially being used in government projects.

India’s steel production generates 2.55 metric tons of carbon dioxide per tonne of crude steel, 38% higher than the global average of 1.85 tons, according to Global Energy Monitor.

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