Concrete

Sustainability is a core priority for us

Published

3 weeks ago

August 25, 2024

Roshna

Arun Shukla, President and Director, JK Lakshmi Cement, reveals how their digital transformation initiatives have helped them set new benchmarks.

How has the implementation of IT initiatives transformed your operations and processes in the cement industry?
At JK Lakshmi Cement, we have embarked on a comprehensive digital transformation journey, leveraging cutting-edge technologies to revolutionise our operations and processes. This strategic approach has yielded significant results across several key areas.
We have implemented Dataiku, a leading data science and machine learning platform. This has resulted in a remarkable 60-70 per cent reduction in operational task execution times. Additionally, report generation has skyrocketed by over 300 per cent. This empowers our teams with real-time visibility into crucial metrics encompassing sales, logistics, manufacturing and procurement, ultimately transforming decision-making across the organisation.
By harnessing data from diverse sources, we can now provide customers with near-flawless delivery time predictions at the point of invoicing. This translates to a demonstrably higher level of customer satisfaction and reinforces their trust in our data-driven capabilities. We have made substantial investments in both Internet of Things (IoT) and automation technologies to optimise our operations. IoT is strategically leveraged for tasks like fleet management, supply chain optimisation, and water conservation. Furthermore, a machine learning platform automates essential logistics and supply chain processes, leading to significant cost savings and enhanced operational efficiency.
We have meticulously built robust data analytics capabilities. This includes the utilisation of descriptive analytics, real-time dashboards, and predictive modelling. This empowers our leadership team to make informed, data-driven decisions that positively impact our financial performance.
Environmental sustainability is paramount to JK Lakshmi Cement. We are a proud member of the RE100 initiative, pledging to achieve 100 per cent reliance on renewable energy by 2040. We’ve also deployed green LNG trucks for transportation, further minimising our environmental footprint.
By strategically investing in digital technologies and data-driven initiatives, JK Lakshmi Cement has not only transformed its operations and elevated customer experience, but we have also solidified our position as a frontrunner in the cement industry’s digital transformation.

Can you discuss how your organisation is adopting Industry 4.0 technologies and the benefits you are experiencing?
At JK Lakshmi Cement, we have been proactively embracing Industry 4.0 technologies to drive operational excellence and enhance customer experience. Some of the key initiatives we have undertaken include:
Digitalisation and automation: We have implemented advanced process control systems, smart sensors, and data analytics across our manufacturing facilities to optimise production, improve quality, and reduce energy consumption. For example, JK Lakshmi Cement has been awarded the best EGS performance in community engagement and empowerment at various platforms and has committed to multiple memberships such as SBTi, RE100 and EP 100, which meets its sustainability goals and reduces its carbon footprint.
Supply chain optimisation: We have leveraged technologies like IoT, blockchain, and predictive analytics to enhance our logistics and distribution network. This has allowed us to rationalise our procurement, material handling and transportation, leading to significant cost optimisation.
Customer-centric innovation: To better serve our customers, we have developed a suite of digital tools and services. This includes a mobile app for order placement, delivery tracking, and technical support, as well as an e-commerce platform for seamless online transactions. These digital interventions have greatly improved customer convenience and satisfaction.
Sustainability and efficiency: Sustainability is a core priority for us, and we have adopted Industry 4.0 technologies to drive energy efficiency and reduce our environmental footprint. For instance, we have deployed green LNG trucks for transportation, making us the first cement company in India to do so.

What specific automation technologies have you implemented, and how have they improved efficiency and productivity in your cement plants?
We are at the forefront of leveraging Industry 4.0 solutions to achieve operational excellence. Here are some key highlights:
IoT-powered fleet management and supply chain optimisation: We have deployed a comprehensive IoT ecosystem across our transportation network. This provides real-time visibility into vehicle location, driver behaviour and fuel efficiency. Coupled with our AI-powered logistics platform from FarEye, this has resulted in a 3-4 per cent reduction in logistics costs and a double digit improvement in on-time delivery rates.
Predictive maintenance with AI/ML: We’ve harnessed the power of AI and ML to create predictive maintenance models for our plant equipment. By analysing sensor data and historical maintenance records, these models anticipate potential failures before they occur. This proactive approach has led to a decrease in unplanned downtime and a significant improvement in overall equipment effectiveness.
Automated manufacturing processes: We have embraced automation across critical production stages, including material handling, kiln operations, and packaging. For instance, our state-of-the-art German technology for Autoclaved Aerated Concrete (AAC) blocks boasts innovative features like ‘Green Separation’ and ‘Horizontal Autoclaving,’ ensuring unmatched product consistency and quality.
Data-driven decision making: Underpinning these automation initiatives is a robust data analytics and business intelligence (BI) platform. We have developed advanced data models and real-time dashboards
that provide comprehensive insights into key performance indicators (KPIs) across sales, logistics, manufacturing and finance. This empowers us to make data-driven decisions that optimise operations and drive continuous improvement.

How are predictive analytics and maintenance technologies being utilised in your operations to minimise downtime and optimise maintenance schedules?
We are pioneering a data-driven approach to achieve industry-leading operational excellence. Our powerful synergy between advanced analytics and AI-powered solutions is transforming our business.
We have gone beyond basic forecasting by building robust AI and machine learning models. These models leverage a comprehensive data landscape, including historical production data, real-time sensor
readings from our Industrial Internet of Things (IIoT) network, and even external market trends. This holistic approach empowers us to generate highly accurate predictions that guide critical decisions across the entire value chain.
For instance, our predictive maintenance program, powered by IIoT sensors and cutting-edge analytics, continuously monitors equipment health. By identifying potential issues early, these models enable proactive maintenance interventions, drastically reducing unplanned downtime and maximising equipment effectiveness.
Similarly, our sales forecasting models, fueled by machine learning, meticulously analyse market dynamics, customer behaviour patterns
and a multitude of other factors to predict future demand with exceptional precision. This allows us to optimise production planning, logistics and inventory management, ensuring we meet customer needs efficiently while minimising waste and operational inefficiencies.
Our commitment to continuous improvement is resolute. The positive impact of these investments is undeniable. Our data models currently boast an excellent example of growth and commitment
and have been on an upward trajectory. By embracing these cutting-edge solutions, JK Lakshmi Cement is well-positioned to solidify its leadership position within the industry. We are driven to achieve operational excellence, superior competitiveness, and ultimately deliver exceptional value to both our customers and shareholders.

What are the challenges and advantages of integrating data across various systems in your cement manufacturing process?
Integrating data across various systems in our cement manufacturing process presents both challenges and advantages. One of the key challenges we face is the lack of real-time data connectivity, which can hinder efficient decision-making and agility within the organisation. To address this, we have implemented Oracle Cloud Solutions, which provide advanced analytics and real-time data connectivity, enabling us to have access to accurate and timely information for better decision-making and operational effectiveness.
Another challenge is the lack of integration among our systems, which can lead to inefficiencies, data duplication, and errors. To overcome this, we have implemented an integrated enterprise resource planning (ERP) system, which has streamlined our operations, enhanced data accuracy, and improved our overall business processes. This integration has also promoted streamlined processes and data integration, leading to enhanced efficiency and productivity through automation, data centralisation and improved communication with stakeholders.
One of the key advantages of integrating data across our systems is the ability to have a more transparent, agile, and integrated supply and logistics chain. With the implementation of Oracle Logistics Management Solution, we have been able to overcome challenges related to consignment locations and truck movements, providing real-time visibility into our operations. This has also led to operational efficiency improvements and the ability to predict consignment delivery times, which we share with our customers, enhancing their experience.
Furthermore, the integration of our systems has allowed us to create a more holistic technology landscape, enabling us to act faster and be more predictive. This has allowed us to address issues proactively and improve our overall operations, ultimately leading to enhanced customer satisfaction and loyalty.

How are IT initiatives contributing to sustainability efforts and reducing the environmental impact of your cement production?
JK Lakshmi Cement is leveraging innovative IT initiatives to drive sustainability and reduce the environmental impact of its cement production operations. By harnessing the power of digital technologies, the company is optimising its processes and enhancing resource efficiency across the
value chain.
One key IT-enabled initiative is the implementation of advanced analytics and predictive modeling. The company has deployed sophisticated data analytics tools to gain real-time visibility into energy consumption, emissions, and resource utilisation across its manufacturing facilities. This data-driven approach allows JK Lakshmi Cement to identify optimisation opportunities, implement targeted efficiency measures, and track the impact of its sustainability efforts with precision.
Furthermore, the company has invested in cutting-edge automation and control systems to enhance operational efficiency. Intelligent process control algorithms, coupled with Internet of Things (IoT) sensors, enable the company to fine-tune production parameters, minimise waste and reduce energy use. This intelligent automation has resulted in significant improvements in energy efficiency and a lower carbon footprint for JK Lakshmi Cement’s cement manufacturing operations.
To foster a culture of sustainability, the company has also developed robust digital platforms for employee engagement and knowledge sharing. Interactive dashboards and mobile applications empower employees to track sustainability metrics, participate in green initiatives, and share best practices
across the organisation. This digital ecosystem facilitates cross-functional collaboration and drives continuous improvement in the company’s environmental performance.
Looking ahead, JK Lakshmi Cement is exploring the integration of emerging technologies like artificial intelligence and blockchain to further enhance the traceability and transparency of its sustainability efforts. By harnessing the power of IT, the company is well-positioned to lead the cement industry’s transition towards a more sustainable and environmentally responsible future.

With the increasing digitisation of operations, what steps are you taking to ensure cybersecurity and protect sensitive data?
We recognise the ever-evolving cybersecurity landscape, particularly with the growing digitisation of our operations. As a frontrunner in the cement industry, safeguarding sensitive data and maintaining system integrity are paramount.
We leverage a multi-layered cybersecurity approach, featuring industry-leading anti-spam and anti-phishing solutions to combat advanced threats. This aligns seamlessly with our core business goals, where we actively implement ‘security by design’ principles to build inherent resilience within our systems.
Data protection remains a cornerstone of our strategy. We have deployed robust Data Loss Prevention (DLP) controls to guarantee sensitive information security. Furthermore, we continuously elevate employee preparedness through regular cybersecurity awareness training and simulated phishing exercises, fostering a keen ability to recognise and react to potential threats.
Beyond established protocols, JK Lakshmi Cement embraces cutting-edge technology. We utilise smart link neutralisation to assess URL reputation and leverage sandboxing to analyse suspicious files in a secure environment. This layered approach ensures comprehensive threat mitigation.
Moreover, we’ve fostered a strong cybersecurity culture that empowers our employees to actively participate in our defense strategy. Through continuous monitoring of our security posture, investment in skilled personnel, and collaboration with industry experts, JK Lakshmi Cement is well-positioned to navigate the dynamic digital landscape. This ensures the protection of our sensitive data and strengthens stakeholder trust in our commitment to cybersecurity.

What future IT trends do you foresee having the most significant impact on the cement industry, and how is your organisation preparing to embrace these trends?
The cement industry stands on the precipice of a transformative era, driven by the integration of cutting-edge IT solutions. At JK Lakshmi Cement, we are not just keeping pace; we are actively shaping the future by embracing these trends and unlocking their full potential.
One such transformative force is the widespread adoption of cloud computing. By leveraging cloud-native applications like Oracle’s Logistics Management Solution, we have achieved a 25 per cent increase in supply chain transparency and a 10 per cent reduction in logistics lead times). This translates to real-time visibility into operations, allowing us to optimise consignment locations, streamline truck movements, and ultimately, enhance our overall operational efficiency.
Another game-changer is Augmented Reality (AR). We envision AR revolutionising the way we approach construction projects. By creating detailed 3D models and immersive virtual tours, AR empowers stakeholders to gain a comprehensive understanding of a project’s environmental impact, sustainability measures, and overall feasibility – all before construction even begins. This technology also holds immense potential for improving site safety through virtual training and ensuring construction accuracy with BIM (Building Information Modeling) integration.
Machine learning and advanced analytics are poised to further propel the industry forward. By harnessing these powerful tools, we aim to become more proactive. Predictive maintenance, optimised production processes and data-driven decision-making are just a few of the benefits we anticipate. This translates to a significant competitive edge, allowing us to stay ahead of the curve and deliver superior value to our stakeholders.
At JK Lakshmi Cement, our commitment to technological innovation is unwavering. We are actively investing in building a robust IT infrastructure that seamlessly integrates with our ambitious growth plans, which include expanding our manufacturing base, introducing new product lines, and venturing into new markets. To achieve these goals, we’re fostering a culture of continuous improvement and building a holistic technology landscape that empowers a truly connected and intelligent ecosystem.
By embracing these transformative trends, JK Lakshmi Cement is positioned to be a leader in the next generation of cement production. We envision an industry characterised by greater efficiency, enhanced safety standards, and an unwavering focus on providing an exceptional customer experience. Our unwavering commitment to innovation and agility will ensure we remain at the forefront of this exciting transformation.

– Kanika Mathur

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Concrete

Indian Cement Industry Sees Further Consolidation

Cement industry to face consolidation soon.

Published

1 day ago

September 13, 2024

admin

India’s cement sector is set for further consolidation in the near-to-medium term, according to a recent report. With increasing competition, rising input costs, and the need for economies of scale, companies are expected to explore mergers and acquisitions (M&A) to strengthen their market positions. As the industry faces various challenges, including high energy costs and fluctuating demand, consolidation is viewed as a strategic move to drive growth and sustainability.

Key Points:
Market Consolidation: The Indian cement industry has already witnessed significant consolidation over the past few years, with several large firms acquiring smaller players to enhance their market share. The trend is expected to continue, driven by the need to optimize operations, cut costs, and gain better pricing power. Consolidation helps companies to expand their geographic reach and strengthen their portfolios.

Rising Costs and Challenges: One of the primary drivers of consolidation is the rising cost of inputs, particularly energy and raw materials. With costs of coal and petroleum coke (key energy sources for cement production) soaring, companies are looking for ways to maintain profitability. Smaller and medium-sized players, in particular, find it challenging to cope with these rising costs, making them more likely targets for acquisition by larger companies.

Economies of Scale: Larger cement companies benefit from economies of scale, which help them absorb the impact of rising input costs more effectively. Consolidation allows firms to streamline production processes, reduce operational inefficiencies, and invest in advanced technologies that improve productivity. These efficiencies become critical in maintaining competitiveness in an increasingly challenging environment.

M&A Activity: The report highlights the potential for more mergers and acquisitions in the cement sector, particularly among mid-sized and regional players. The Indian cement market, which is highly fragmented, presents numerous opportunities for larger companies to acquire smaller firms and gain a foothold in new markets. M&A activity is expected to accelerate as firms seek growth through strategic alliances and acquisitions.

Regional Focus: Consolidation efforts are likely to be regionally focused, with companies looking to expand their presence in specific geographic areas where demand for cement is strong. Infrastructure development, government projects, and urbanization are driving demand in various parts of the country, making regional expansions an attractive proposition for firms looking to grow.

Impact on Competition: While consolidation may lead to a more concentrated market, it could also intensify competition among the remaining players. Larger firms with more resources and market reach could dominate pricing strategies and influence market dynamics. Smaller firms may either merge or struggle to compete, leading to a reshaping of the competitive landscape.

Demand Outlook: The near-term outlook for the cement industry remains uncertain, with demand being influenced by factors such as construction activity, infrastructure projects, and government initiatives. The report notes that while urban demand is expected to remain stable, rural demand continues to face challenges due to slow construction activities in those areas. However, the long-term outlook remains positive, driven by ongoing infrastructure developments and real estate projects.

Sustainability Focus: Companies are also focusing on sustainability and environmental concerns. Consolidation can provide larger companies with the resources to invest in green technologies and reduce their carbon footprint. This focus on sustainability is becoming increasingly important, with both government regulations and market preferences shifting toward greener production practices.

Conclusion:
The Indian cement industry is poised for further consolidation in the coming years, driven by rising costs, competitive pressures, and the need for economies of scale. M&A activity is likely to accelerate, with larger firms targeting smaller and regional players to strengthen their market presence. While consolidation offers opportunities for growth and efficiency, it could also reshape the competitive landscape and influence pricing dynamics in the sector.

Concrete

Cement Companies May Roll Back Hike

Cement firms reconsider September price increase.

Published

1 day ago

September 13, 2024

admin

Cement companies in India might be forced to reverse the price hikes implemented in September due to weakened demand and pressure from competitive market conditions, according to a report by Nuvama Institutional Equities. The recent price increase, which was expected to improve margins, may not hold as demand falls short of expectations.

Key Points:
Price Hike in September: Cement firms across India increased prices in September, aiming to improve their margins amidst rising input costs. This was seen as a strategic move to stabilize earnings as they were grappling with inflationary pressures on raw materials like coal and pet coke.

Weak Demand and Pressure: However, demand has not surged as expected. In some regions, particularly rural areas, construction activity remains low, which has contributed to the tepid demand for cement. The combination of high prices and low demand may make it difficult for companies to maintain the elevated price levels.

Competitive Market Forces: Cement manufacturers are also under pressure from competitors. Smaller players may keep prices lower to attract buyers, forcing larger companies to consider rolling back the September hikes. The competitive dynamics in regions like South India, where smaller firms are prevalent, are likely to impact larger companies’ pricing strategies.

Nuvama Report Insights: Nuvama Institutional Equities has highlighted that the September price hikes may not be sustainable given current market conditions. According to the report, the demand-supply imbalance and weak construction activities across many states could push cement companies to reconsider their pricing strategies.

Impact on Margins: If companies are compelled to roll back the price hikes, it could hurt their profit margins in the near term. Cement firms had hoped to recover some of their input costs through the price increases, but the competitive landscape and slow demand recovery could negate these gains.

Regional Variations: Price rollback might not be uniform across the country. In regions where infrastructure development is picking up pace, cement prices may hold. Urban areas with ongoing real estate projects and government infrastructure initiatives could see a sustained demand, making price hikes more viable.

Future Outlook: The outlook for the cement sector will largely depend on the pace of recovery in construction activity, particularly in the housing and infrastructure sectors. Any significant recovery in rural demand, which is currently subdued, could also influence whether the price hikes will remain or be rolled back.

Strategic Adjustments: Cement firms may need to adopt a cautious approach in the near term, balancing between maintaining market share and protecting margins. Price adjustments in response to market conditions could become more frequent as companies try to adapt to the fluctuating demand.

Conclusion:
The September price hikes by cement companies may face reversal due to weak demand, competitive pressures, and market dynamics. Nuvama’s report signals that while the increase was aimed at margin recovery, it may not be sustainable, particularly in regions with low demand. The future of cement pricing will depend on construction sector recovery and regional market conditions.

Concrete

Bridge Collapse Spurs Focus on Stainless Steel

Climate change prompts stainless steel push.

Published

1 day ago

September 13, 2024

admin

The Ministry of Road Transport and Highways (MoRTH) is turning its attention to the use of stainless steel in bridge construction to counteract corrosion, an increasing issue linked to climate change. With recent bridge collapses highlighting the vulnerability of existing infrastructure to corrosion and extreme weather events, the ministry is promoting the adoption of durable materials like stainless steel to ensure the longevity and safety of India’s critical transport infrastructure.

Key Points:

Bridge Collapse and Climate Change: Recent incidents of bridge collapses across the country have raised alarm over the durability of current construction materials, with corrosion cited as a leading cause. Climate change, leading to harsher weather patterns and increased moisture levels, has accelerated the deterioration of key infrastructure. This has prompted MoRTH to consider long-term solutions to combat these challenges.

Corrosion: A Growing Concern: Corrosion of structural materials has become a serious issue, particularly in coastal and high-moisture regions. The Ministry has identified the need for a more resilient approach, emphasizing the use of stainless steel, known for its resistance to corrosion. This shift is seen as crucial in ensuring the longevity of India’s bridges and reducing maintenance costs over time.

Stainless Steel for Bridge Construction: Stainless steel, while more expensive initially, offers long-term savings due to its durability and resistance to environmental factors like moisture and salt. The Ministry is advocating for the material’s use in future bridge projects, particularly in areas prone to corrosion. Stainless steel is seen as a solution that can withstand the pressures of both natural elements and increasing traffic loads.

Government’s Proactive Steps: The government, through MoRTH, has started consulting with experts in the field of metallurgy and civil engineering to explore the expanded use of stainless steel. They are considering updates to construction standards and specifications to incorporate this material in new and rehabilitated infrastructure projects.

Economic Considerations: Although the initial investment in stainless steel may be higher than conventional materials, the reduced need for repairs and replacements makes it a cost-effective option in the long run. This approach also aligns with the government’s push for sustainable infrastructure that can withstand the test of time and climate change effects.

Future of Indian Infrastructure: With the push for stronger, more durable infrastructure, the Ministry’s move to adopt stainless steel for bridge construction marks a shift towards building climate-resilient structures. The use of this material is expected to not only enhance the safety and longevity of bridges but also reduce the financial burden on the government for constant repairs.

Industry Perspective: The stainless steel industry sees this shift as an opportunity to expand its market, particularly in the infrastructure sector. Stakeholders are engaging with the government to demonstrate the benefits of stainless steel, advocating for its increased use not just in bridges but across various infrastructure projects.

Conclusion: In response to the growing threat of climate change and its impact on infrastructure, the Ministry of Road Transport and Highways is prioritizing the use of stainless steel in bridge construction to combat corrosion and ensure the long-term durability of critical transport structures.