The transportation and logistics landscape in the Indian cement industry is witnessing significant evolution, driven by technological advancements and sustainability considerations. From the integration of electric vehicles to the adoption of advanced technologies like IoT and AI, cement companies are embracing innovation. ICR explores the transformative trends shaping the future of transportation and logistics.
The second-largest road transportation network in the world is in India. From one place to another, a transportation system moves both people and things. Machines rule the transportation industry nowadays, while transportation routes or channels serve as the key arteries of our economy.
The logistics industry is crucial to both enterprises and the economy. In today’s interconnected world, shipping and logistics are at the heart of the economy, acting as vital gateways for international trade and business. More than 95 per cent of the nation’s traffic is transported by roads and railways, which are the main modes of transportation. The railways and roads would continue to rule the transportation scene in the near future, even though other modes including coastal shipping and inland water transport would play a larger role.
According to Statista Market Insights 2024, the value added in the transportation market is projected to amount to Rs.7.88tn in 2024, the transportation intensity in India is projected to amount to 1.1200TKM/GDP and the volume of goods transported in the transportation market is projected to amount to 4,583.00bn TKM in 2024.
Pushpank Kaushik, CEO, Jassper Shipping, says, “The shipping and logistics industry is an essential component of the global supply chain and the rise of e-commerce, globalisation, and ever-increasing customer demands for faster delivery times have pushed the boundaries of traditional shipping methods. As a result, the sector is undergoing a significant revolution owing to the use of automation and technology. Automation is a key factor that facilitates the accuracy and efficiency of processes involved in shipping and logistics. Technology has also improved the safety and security of shipping and logistics operations with minimised communication gaps through mobile applications, cloud servers, etc. Real-time tracking and management of inventory through automation help in the identification of errors and delays in the delivery process. It enables logistics companies to have access to their operations and look for drawbacks that may demand improvements, leading to cost reduction.”
TECHNOLOGY OF TRANSPORT
The role of technology in transportation and logistics within the cement industry is paramount, revolutionising traditional practices and ushering in unprecedented efficiency and cost-effectiveness. Technology plays a crucial role in optimising various aspects of the transportation process, from route planning to fleet management. Utilising advanced algorithms, companies can analyse factors such as traffic patterns, road conditions, and delivery schedules to optimise routes, minimising transit time and
fuel consumption.
“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,” says Vinod Agarwal, Logistics Head, Wonder Cement.
Moreover, the integration of cutting-edge technologies such as Internet of Things (IoT), GPS, and telematics has enabled real-time tracking and monitoring of vehicles and shipments. IoT sensors installed in trucks and cargo containers provide valuable data on location, temperature, humidity, and other relevant parameters. This real-time visibility enhances transparency and accountability throughout the transportation chain, allowing for proactive decision-making and timely interventions to address any issues that may arise.
Dhriti Prasanna Mahanta, Vice President & Business Head, TeamLease Degree Apprenticeship says, “The global integration of AI into the logistics, transportation, and supply chain sectors is experiencing remarkable growth, with projections soaring from $412 million to an astounding $13,948 million by 2032, reflecting an impressive CAGR of 43.5 per cent. However, amidst this global surge, India emerges as a promising market poised for significant expansion. Reports suggest that the logistics industry in India is poised and expected to create 10 million jobs by 2027. Furthermore, the Indian freight and logistics market is projected to grow at an annual rate of 8.8 per cent, reaching $484.43 billion by 2029,
up from $317.26 billion in 2024. This underscores the critical need for skilled professionals
proficient in AI technologies to meet the industry’s evolving demands.”
Furthermore, GPS and telematics systems facilitate effective fleet management by enabling remote monitoring of vehicle performance, fuel consumption and driver behaviour. This data-driven approach allows companies to identify inefficiencies, optimise routes and reduce operational costs. Additionally, predictive maintenance algorithms help minimise downtime by alerting maintenance teams to potential issues before they escalate into costly breakdowns.
Prashant Jha, Chief Ready-Mix Concrete and Modern Building Materials Officer, Nuvoco Vista, says, “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.”
Automation technologies, ranging from autonomous vehicles to robotic warehouses, are revolutionising traditional logistics operations. In the context of transportation, autonomous vehicles, including trucks and drones, are being increasingly deployed to transport raw materials and finished products. These vehicles leverage advanced sensors, artificial intelligence, and machine learning algorithms to navigate roads safely and efficiently, reducing the need for human intervention and minimising the risk of accidents.
“A major challenge in the cement industry is the logistics cost and time for delivery. This can only be resolved with faster turnaround time, complete visibility of shipments, delivery lead time and process control to adhere to compliance,” explains Haresh Calcuttawala, CEO and Co-Founder, Trezix.
Furthermore, automation plays a significant role in warehouse operations, where robotic systems are employed for tasks, such as loading and unloading cargo, sorting materials, and managing inventory. These automated solutions not only improve operational efficiency but also optimise space utilisation and enhance inventory accuracy, ultimately leading to cost savings and improved customer satisfaction.
Additionally, automation enables the integration of predictive analytics and real-time data processing, allowing logistics companies to anticipate demand, optimise routes, and mitigate disruptions proactively. By harnessing the power of data-driven insights, companies can make informed decisions and adapt quickly to changing market dynamics, thereby gaining a competitive edge in the industry.
Guru Prasad, Assistant Vice President, CSSR and Electronics, Robotics and Discrete, ABB India, elaborates, “ABB Robotics can help cement plants find a balance between volume, speed, accuracy and flexibility through their automation solutions for logistics applications. Automating cement plants can provide various benefits such as supporting the workforce. If the cement plant is to achieve the speed, efficiency and resilience required by today’s complex world, companies must integrate automation, digital connectivity and edge technologies such as artificial intelligence and robotics. The successful integration of these technologies is critical to keep the plant operational in both normal and emergency situations. There are likely to be more operations that run entirely autonomously. Robotic automation is increasingly being used to tackle monotonous, hazardous and challenging tasks that can increase productivity, boost operational efficiency and generate a higher return on investment for businesses. This makes the plant safer for human workers and allows them to focus on more skilled and fulfilling tasks.”
ELECTRIC VEHICLES
According to the report Electric Vehicles: Revving Up Despite Roadblocks by CareEdge Ratings, January 2024, the sales volume of electric vehicles in CY23 surpassed 1.5 million, a 50 per cent increase compared to CY22. Total EV volume sold was recorded at 1.53 million in CY23 compared to 1.02 in CY22. Growth was driven by the increasing adoption of EVs and several exciting new EV models across segments giving better options. CY24 looks promising with the industry expecting to surpass sales volume of 2 million in CY24, underpinned by surging demand and sustained government support through incentives. However, investments in the
EV ecosystem remain crucial for fostering EVs’ massive adoption.
The growth momentum is expected to continue in CY24, driven by the government’s increased focus on electrification at both the Central and state levels, the potential extension of FAME II, the improving EV ecosystem with a significant increase in charging stations, the envisaged reduction in battery costs leading to the lower total cost of ownership (TCO) compared to ICE, and the development of new models across categories, thus continuing to drive demand for EVs. An increase in the number of EVs will promote sustainability and reduce carbon emissions, contributing to the government’s environmental goals. The massive adoption of EVs can boost battery technology and infrastructure, further enhancing the EV ecosystem. These incentives reduce the upfront cost of vehicles, making them more attractive to consumers.
In cement transportation, electric vehicles (EVs) present a promising avenue for achieving sustainability goals while addressing the industry’s unique challenges. However, along with immense opportunities, several hurdles must be overcome to realise the full potential of EV adoption. One of the primary challenges is the need to address infrastructure limitations. This includes the establishment of a robust charging infrastructure network capable of supporting the widespread deployment of EVs for cement transportation. Investing in charging stations along transportation routes and at key logistical hubs will be essential to ensure uninterrupted operations and facilitate the transition to electric fleets.
Raman Bhatia, Founder and Managing Director, Servotech Power Systems, asserts, “Shifting industrial transportation fleets to EVs can lead to reduced greenhouse gas emissions. Transportation is a major contributor to greenhouse gas emissions, particularly CO2. An EV produces zero tailpipe emissions, significantly reducing emissions and mitigating climate change. Petrol and diesel trucks emit harmful pollutants like nitrogen oxides and particulate matter. Replacing these vehicles with EVs can significantly improve air quality, especially in urban areas with high traffic congestion. Lastly, widespread EV adoption can lessen dependence on fossil fuels, particularly imported oil. This can enhance energy security and reduce geopolitical vulnerability.”
Moreover, the upfront cost of EVs and associated infrastructure investments may pose financial challenges for cement companies, especially smaller players. However, opportunities exist for innovation and investment in EV technology tailored to meet the specific needs of the cement industry. This includes the development of specialised EV models designed for heavy-duty applications, such as transporting bulk materials like cement and aggregates over
long distances.
Furthermore, advancements in battery technology and energy storage solutions offer promising opportunities to overcome range limitations and improve the overall efficiency of electric transportation in the cement industry. Research and development efforts focused on enhancing battery performance, reducing charging times, and increasing energy density will be crucial in driving the widespread adoption of EVs.
TRANSPORTATION AND SUSTAINABILITY
Sustainability has become a core focus for the cement industry, extending beyond production processes to encompass transportation and logistics operations. Recognising the environmental impact associated with transportation, cement companies are implementing various sustainability initiatives and practices to reduce carbon emissions, minimise resource consumption and enhance overall environmental stewardship.
“Making sustainable practices a priority in the shipping and logistics sector is crucial to ensure a significant impact on the environment and the industry. Companies can turn cost effective and save money by investing in green technologies such as hybrid or electric ships, alternative fuels, and automated route optimisation systems. By investing in sustainable practices, companies can ensure compliance with government regulations, avoiding fines and other consequences that could affect their bottom line. With growing consumer awareness of environmentally friendly practices, companies adopting sustainable policies can differentiate themselves from their competitors and attract more customers, ultimately boosting the revenue charts,” says Kaushik.
One key sustainability initiative in transportation and logistics is the adoption of alternative fuels and energy-efficient vehicles. Cement companies are increasingly incorporating biofuels, natural gas, and electric vehicles into their fleets to reduce reliance on fossil fuels and lower greenhouse gas emissions. By investing in energy-efficient vehicles and alternative fuels, companies can significantly decrease their carbon footprint while also reducing fuel costs over the long term.
Cement manufacturers today are prioritising route optimisation and logistics planning to minimise transportation distances and reduce fuel consumption. Advanced data analytics and logistics software are being utilised to optimise delivery routes, consolidate shipments, and maximise vehicle capacity utilisation. These efforts not only reduce emissions but also enhance operational efficiency and reduce transportation costs.
Shrivats Singhania, Director and CEO of Udaipur Cement Works (UWCL), states, “As cement production grows, so does the demand for efficient logistics and transportation. At UCWL, we recognise this link. Increased production volume necessitates a robust and adaptable logistics network to ensure timely and efficient product delivery. We are continuously evaluating and optimising our logistics network to meet this growing demand. Beyond simply scaling our operations, we are committed to sustainable practices across the supply chain. We have implemented innovative strategies like CNG-powered truck distribution to reduce our carbon footprint during transportation. These initiatives not only optimise logistics and distribution but also demonstrate UCWL’s unwavering commitment to environmental responsibility. We believe that sustainable practices and efficient operations go hand-in-hand, and we are actively working to achieve both.”
In addition to improving vehicle efficiency and logistics optimisation, cement companies are implementing sustainable packaging solutions to minimise waste and reduce environmental impact. Innovative packaging materials, such as recyclable and biodegradable materials, are being explored to replace traditional packaging materials like plastic and cardboard. Furthermore, companies are investing in returnable packaging systems to minimize waste and promote circularity within the supply chain.
FUTURE AND INNOVATION OF TRANSPORTATION
Ankit Kumar, Co-Founder and CEO, Skye Air, affirms, “In the foreseeable future, the incorporation of drone deliveries holds promise for integration within the cement industry, presenting efficient and swift transportation solutions for materials. The sophisticated drone technology prevalent in logistics stands poised to collaborate seamlessly with cement companies, optimising their supply chain operations. Drones offer the potential to ferry small batches of cement or other construction materials to remote or challenging-to-access locations, thereby diminishing reliance on conventional transportation modes such as trucks and mitigating logistical complexities. Through the strategic utilisation of drones, the cement industry stands to bolster its efficiency, curtail costs and elevate overall operational efficacy.”
The future of transportation and logistics in the Indian cement industry is set to undergo significant transformation, driven by technological advancements and sustainability imperatives. Expectations include a rapid uptake of electric vehicles to cut carbon emissions and meet stringent environmental regulations. Further, advanced technologies like IoT and AI will revolutionise operations, optimising route planning and enhancing supply chain visibility. Sustainable packaging solutions are anticipated to gain traction, while collaboration across the supply chain will drive innovation and efficiency. Emphasis on optimisation and cost reduction will remain paramount, with data analytics and automation playing pivotal roles. Overall, the industry’s future outlook promises a greener, more efficient and collaborative approach to cement transportation and logistics.
