Concrete

We are focused on optimising existing processes

Published

7 months ago

April 16, 2024

admin

Vinod Agarwal, Logistics Head, Wonder Cement, shares his company’s approach to logistics management, the impact of technology and digitalisation on efficiency and cost-effectiveness, and the challenges and opportunities in improving logistical planning for cement plants.

Tell us about the transportation model followed by your organisation for cement despatch.
At Wonder Cement, we prioritise efficiency and reliability in our transportation model. We have developed a comprehensive network of logistics partners and own a fleet of specialised vehicles tailored to the needs of cement despatches. Our transportation model focuses on minimising lead times, optimising routes and ensuring timely deliveries to our customers across diverse geographical locations.

How are the logistics of the plant managed?
The logistics of our plant are meticulously managed through a combination of advanced planning, robust processes and cutting-edge technology. We employ sophisticated inventory management systems to track raw materials, monitor production schedules and coordinate with transportation partners. Our dedicated logistics team works closely with suppliers, distributors, and internal stakeholders to streamline operations and maintain seamless workflow throughout the supply chain.

With new technology and digitalisation introduced in the system, what impact has it created on the efficiency and cost of the plant?
The integration of new technology and digitalisation has significantly enhanced both the efficiency and cost-effectiveness of our plant operations. By leveraging advanced analytics, real-time monitoring and automation solutions, we have been able to optimise resource utilisation, minimise downtime and reduce overhead costs. Additionally, digitalisation has improved decision-making processes, enabling us to respond swiftly to changing market dynamics and customer demands.

Are there plans to introduce automated transportation systems in the plants?
While we continuously explore innovative solutions to enhance our transportation systems, including automation, any decision to introduce automated transportation systems will be carefully evaluated based on factors such as feasibility, cost-effectiveness and alignment with our sustainability goals. At present, we are focused on optimising existing processes and leveraging technology to maximise efficiency and reliability in our transportation operations.

What are the key steps that can be taken to further improve the logistics of cement manufacturing and transportation?
To further improve the logistics of cement manufacturing and transportation, collaboration and innovation are paramount. Investing in infrastructure upgrades, such as modernising warehousing facilities and upgrading transportation fleets, can help optimise logistics operations. Additionally, leveraging data analytics and predictive modelling can enable proactive decision-making and enhance supply chain visibility. Continuous training and upskilling of personnel are also essential to adapt to evolving industry trends and technological advancements.

Tell us about the challenges in logistical planning for cement plants…
Logistical planning for cement plants presents several challenges, including:

Geographical diversity: Managing logistics across diverse geographical regions with varying infrastructural constraints and regulatory requirements can be complex.
Seasonal fluctuations: Cement demand fluctuates seasonally, necessitating agile planning and inventory management to avoid overstocking or stockouts.
Transport constraints: Limited availability of transportation infrastructure, especially in remote areas, can pose challenges in timely delivery and increased transportation costs.
Environmental regulations: Compliance with environmental regulations, particularly in emissions control and fuel efficiency standards, adds another layer of complexity to logistical planning.
Addressing these challenges requires a strategic approach, proactive risk management and continuous innovation to optimise logistical processes and ensure seamless supply chain operations.

–Kanika Mathur

Up Next

A proactive approach facilitates smooth operations

Don't Miss

An EV produces zero tailpipe emissions

Concrete

Construction Costs Rise 11% in 2024, Driven by Labour Expenses

Cement Prices Decline 15%, But Labour Costs Surge by 25%

Published

2 days ago

November 19, 2024

admin

The cost of construction in India increased by 11% over the past year, primarily driven by a 25% rise in labour expenses, according to Colliers India. While prices of key materials like cement dropped by 15% and steel saw a marginal 1% decrease, the surge in labour costs stretched construction budgets across sectors.

“Labour, which constitutes over a quarter of construction costs, has seen significant inflation due to the demand for skilled workers and associated training and compliance costs,” said Badal Yagnik, CEO of Colliers India.

The residential segment experienced the sharpest cost escalation due to a growing focus on quality construction and demand for gated communities. Meanwhile, commercial and industrial real estate remained resilient, with 37 million square feet of office space and 22 million square feet of warehousing space completed in the first nine months of 2024.

“Despite rising costs, investments in automation and training are helping developers address manpower challenges and streamline project timelines,” said Vimal Nadar, senior director at Colliers India.

With labour costs continuing to influence overall construction expenses, developers are exploring strategies to optimize operations and mitigate rising costs.

Concrete

Swiss Steel to Cut 800 Jobs

Job cuts due to weak demand

Published

3 days ago

November 18, 2024

admin

Swiss Steel has announced plans to cut 800 jobs as part of a restructuring effort, triggered by weak demand in the global steel market. The company, a major player in the European steel industry, cited an ongoing slowdown in demand as the primary reason behind the workforce reduction. These job cuts are expected to impact various departments across its operations, including production and administrative functions.

The steel industry has been facing significant challenges due to reduced demand from key sectors such as construction and automotive manufacturing. Additionally, the broader economic slowdown in Europe, coupled with rising energy costs, has further strained the profitability of steel producers like Swiss Steel. In response to these conditions, the company has decided to streamline its operations to ensure long-term sustainability.

Swiss Steel’s decision to cut jobs is part of a broader trend in the steel industry, where companies are adjusting to volatile market conditions. The move is aimed at reducing operational costs and improving efficiency, but it highlights the continuing pressures faced by the manufacturing sector amid uncertain global economic conditions.

The layoffs are expected to occur across Swiss Steel’s production facilities and corporate offices, as the company focuses on consolidating its workforce. Despite these cuts, Swiss Steel plans to continue its efforts to innovate and adapt to market demands, with an emphasis on high-value, specialty steel products.

Concrete

UltraTech Cement to raise Rs 3,000 crore via NCDs to boost financial flexibility

UltraTech reported a 36% year-on-year (YoY) decline in net profit, dropping to Rs 825 crore

Published

3 days ago

November 18, 2024

admin

UltraTech Cement, the Aditya Birla Group’s flagship company, has announced plans to raise up to Rs 3,000 crore through the private placement of non-convertible debentures (NCDs) in one or more tranches. The move aims to strengthen the company’s financial position amid increasing competition in the cement sector.

UltraTech’s finance committee has approved the issuance of rupee-denominated, unsecured, redeemable, and listed NCDs. The company has experienced strong stock performance, with its share price rising 22% over the past year, boosting its market capitalization to approximately Rs 3.1 lakh crore.

For Q2 FY2025, UltraTech reported a 36% year-on-year (YoY) decline in net profit, dropping to Rs 825 crore, below analyst expectations. Revenue for the quarter also fell 2% YoY to Rs 15,635 crore, and EBITDA margins contracted by 300 basis points. Despite this, the company saw a 3% increase in domestic sales volume, supported by lower energy costs.

In a strategic move, UltraTech invested Rs 3,954 crore for a 32.7% equity stake in India Cements, further solidifying its position in South India. UltraTech holds an 11% market share in the region, while competitor Adani holds 6%. UltraTech also secured $500 million through a sustainability-linked loan, underscoring its focus on sustainable growth driven by infrastructure and housing demand.