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The Future of Cement Movement

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Logistics, from the factory exit point to the last mile connectivity, is a key driver of efficiency and cost optimisation in the cement industry. With digitalisation, multi-modal integration and sustainability, logistics is the differentiator that will give the manufacturer a competitive advantage. Let us explore how logistics has today become a deciding factor that players cannot afford to ignore.

India, the second-largest cement producer globally, has an installed capacity exceeding 600 million tonnes per annum, with demand driven by infrastructure, housing, and urbanisation (IBEF, 2024). However, logistics remains one of the most significant cost components, accounting for nearly 20 to 30 per cent of the total cement cost, primarily due to the bulk nature and low value-to-weight ratio of the product (Cement Manufacturers’ Association, 2023; McKinsey, 2022).
With over 70 per cent of cement transported via road, inefficiencies in logistics directly impact profitability, delivery timelines, and customer satisfaction (NITI Aayog, 2021). As supply chains grow more complex, end-to-end logistics is emerging as a critical lever for cost optimisation, operational efficiency, and competitive advantage.

Logistics: The game changer
Logistics plays a central role in the cement industry, where timely delivery and cost efficiency are key determinants of market competitiveness. Unlike many other industries, cement has a low shelf value relative to its transportation cost, making logistics optimisation critical. According to McKinsey (2022), logistics costs in cement can reach up to 30 per cent of total production costs, significantly higher than global manufacturing averages. This underscores the importance of efficient distribution networks in maintaining margins and ensuring consistent supply.
Moreover, logistics directly influences market reach and dealer satisfaction. Cement companies with optimised logistics networks can ensure faster delivery cycles, improved availability, and better service levels. A report by Deloitte (2023) highlights that companies focusing on logistics optimisation have seen improvements of up to 15 per cent to 20 per cent in delivery efficiency, reinforcing the role of logistics as a strategic differentiator rather than just an operational function.

Mapping the cement supply chain
The cement supply chain is complex and involves multiple stages, including raw material transportation, clinker movement, cement production, warehousing, and final distribution to dealers and project sites. Each stage requires careful coordination to minimise delays and costs. According to World Cement Association (2023), inefficiencies in supply chain coordination can lead to 5 per cent to 8 per cent losses in overall operational efficiency, highlighting the need for integrated logistics planning.
From plant despatch to last-mile delivery, the movement of cement involves various stakeholders such as transporters, distributors, and retailers. In India, the fragmented nature of the logistics ecosystem further complicates coordination. A study by PriceWater Cooper (PwC 2022) indicates that lack of integration across supply chain nodes can increase transit times by 10 per cent to 15 per cent, affecting project timelines and customer satisfaction.

Key challenges in end-to-end logistics
One of the biggest challenges in cement logistics is infrastructure limitation, particularly in rural and semi-urban areas where demand is rapidly growing. Despite improvements, India’s logistics infrastructure still faces bottlenecks such as poor road conditions, congestion, and limited rail connectivity. According to NITI Aayog (2021), logistics inefficiencies contribute to India’s overall logistics costs being around 13 per cent to 14 per cent of GDP, significantly higher than the global benchmark of 8 per cent to 9 per cent. For the cement industry, this translates into higher transportation costs and reduced competitiveness.
Professor Procyon Mukherjee says, “For decades, cement companies designed their networks around limestone availability. Plants were built near quarries, and finished cement was transported long distances to markets. This model, while logical from a production standpoint, created massive outbound logistics costs. Indian cement companies have begun to challenge this logic. The shift: decoupling clinker production from cement grinding.”
He adds, “Clinker plants remain near limestone reserves, but grinding units are increasingly located close to consumption centres. In many markets, logistics accounts for up to 30 per cent of total cost. The implication is stark: companies that redesign their end-to-end logistics, from inbound flows to last-mile delivery, can fundamentally alter their competitive position.”
Another critical challenge is demanding variability and lack of real-time visibility across the supply chain. Cement demand is highly seasonal and project-driven, making demand forecasting complex. Additionally, limited adoption of digital tools leads to poor tracking and coordination. According to McKinsey (2023), companies lacking digital logistics systems experience up to 20 per cent higher inefficiencies in fleet utilisation and delivery planning. These challenges highlight the need for greater integration, digitalisation, and infrastructure development to achieve efficient end-to-end logistics.

Multi-modal logistics
The integration of multiple transportation modes—road, rail, and coastal shipping—is becoming increasingly important for optimising cement logistics. While road transport dominates with over 70 per cent share, rail and coastal shipping offer cost-effective and environmentally sustainable alternatives for long-distance movement (NITI Aayog, 2021).
According to the Ministry of Ports, Shipping and Waterways (2023), coastal shipping can reduce logistics costs by up to 20 per cent to 25 per cent compared to road transport, while also lowering carbon emissions. The adoption of multi-modal logistics can help cement companies achieve better cost efficiency, reduce transit times, and improve supply chain resilience.
Anuradha Parakala, Co-founder, Chief Strategy and Product Officer, Fleetronix Systems, says, “Real-time visibility in logistics is no longer a competitive advantage. It has become a baseline requirement. The cost of not knowing what’s happening across the supply chain has simply become too high. Customers expect consistent and reliable deliveries, finance teams demand tighter cost control, and regulators require greater compliance and transparency. None of these expectations can be met without real-time insight into fleet movement and operations. What was once considered a differentiator is now essential, and companies that still operate without visibility are already falling behind in an increasingly performance-driven environment.
“At the same time, data-driven logistics is redefining how cement supply chains operate, shifting them from reactive systems to predictive, planning-led ecosystems. Fuel remains the single biggest cost lever in fleet logistics, and within that, driver behaviour offers the fastest and most impactful gains. It often delivers 12 per cent to 18 per cent fuel savings through better driving practices such as smoother acceleration, controlled speeds, and reduced idling. Beyond cost savings, data enables companies to move from guesswork to precision—anticipating disruptions, optimising routes, and planning with real numbers instead of buffers. The result is not just improved efficiency, but a stronger foundation of trust with customers, giving early adopters a clear and lasting competitive edge,” she adds.

Digitalisation of cement logistics
Digitalisation is transforming cement logistics by enabling real-time visibility, improved coordination, and data-driven decision-making. Technologies such as GPS tracking, IoT sensors, and advanced analytics allow companies to monitor shipments, optimise routes, and reduce delays. According to Gartner (2023), organisations that implement digital supply chain solutions can achieve up to 50 per cent improvement in supply chain visibility and 20 per cent reduction in operational costs. In the cement industry, where timely delivery is critical, such improvements can significantly enhance efficiency and customer satisfaction.
Dijam Panigrahi, Co-Founder and COO, GridRaster, says, the cement supply chain is uniquely complex. A single integrated plant may manage limestone quarrying, kiln operations, grinding, packing, and dispatch simultaneously, with finished product flowing through rail, road, and waterway networks to reach hundreds of regional depots and distribution points. Coordinating this network using spreadsheets, siloed ERP data, and phone calls is not merely inefficient; it is a structural liability in a competitive market where delivery reliability is a key differentiator. Digital twin technology offers a way out. A cement logistics digital twin is a continuously updated, three-dimensional virtual replica of the entire supply chain, from the truck loading bays at the plant to the inventory levels at district depots.”

Optimising fleet efficiency and last-mile delivery
Fleet efficiency is a critical factor in cement logistics, given the heavy reliance on road transport. Optimising fleet utilisation, reducing idle time, and improving route planning can lead to substantial cost savings. According to McKinsey (2022), optimised fleet management can reduce transportation costs by 10 per cent to 15 per cent, while improving delivery timelines. Technologies such as telematics, fuel monitoring systems, and driver behaviour analytics are increasingly being adopted to enhance fleet performance.
Pushpank Kaushik, CEO, Jassper Shipping, says, “Handling cement both in bulk and bagged form presents several operational challenges across the logistics chain. These include inadequate road infrastructure, port congestion during peak demand periods, and weather-related disruptions. At ports, limited mechanisation during high-volume periods can slow down cargo movement, increasing the risk of moisture exposure and product degradation. Jassper mitigates these challenges through its extensive operational expertise and global network. Managing a significant volume of vessel movements annually and working closely with experienced mariners and operators, we ensure precise coordination, efficient cargo handling, and smooth transitions across all logistics stages.”
Last-mile delivery, however, remains one of the most challenging aspects of cement logistics. Delivering cement to construction sites often involves navigating congested urban areas or remote rural locations, leading to delays and increased costs. A report by Deloitte (2023) highlights that last-mile logistics can account for up to 40 per cent of total delivery costs in certain scenarios. Addressing these challenges requires better route planning, localised distribution hubs, and increased use of technology to ensure timely and efficient delivery.

Sustainability in cement logistics
Sustainability is becoming a key focus area in cement logistics, driven by environmental regulations and corporate sustainability goals. Transportation is a major contributor to carbon emissions in the cement value chain. According to the International Energy Agency (IEA, 2023), logistics-related emissions account for a significant portion of the industry’s overall carbon footprint. Shifting towards rail and coastal shipping, improving fuel efficiency, and adopting alternative fuels can help reduce emissions. Additionally, optimising logistics operations not only lowers environmental impact but also reduces costs, creating a win-win scenario for the industry.

The future of cement logistics
The future lies in the adoption of automation, advanced analytics, and smart supply chain technologies. Autonomous vehicles, AI-driven planning systems, and blockchain-based tracking solutions are expected to redefine logistics operations. According to McKinsey (2023), companies that adopt advanced supply chain technologies can achieve up to 30 per cent improvement in efficiency and significant cost reductions. As the cement industry continues to evolve, the integration of these technologies will be crucial for building resilient, efficient, and future-ready logistics networks.

Conclusion
End-to-end logistics is no longer just an operational necessity but a strategic imperative for the cement industry. With rising costs, increasing demand, and evolving customer expectations, companies must focus on optimising their logistics networks to remain competitive. From multi-modal integration to digitalisation and sustainability, the future of cement logistics will be defined by innovation and efficiency.

  • – Kanika Mathur

Concrete

Adani Group To Set Up Cement Factory In Madhya Pradesh

Chief Minister Mohan Yadav inaugurates plant in Guna

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Adani Group (Adani) will set up a cement factory in Madhya Pradesh, the chief minister of the state announced after an inauguration ceremony in Guna. The chief minister, Mohan Yadav, described the occasion as a historic day for the state and said the project will strengthen industrial capacity. The event was presented as a milestone in efforts to broaden manufacturing and attract large-scale investment. Officials said the facility will add to regional production capability and support related industries.

State officials outlined that the plant will enhance supply chains for construction and infrastructure projects across the region. The company will bring technical expertise and logistical resources to the site, with government agencies coordinating approvals and land allocation. Local suppliers and service providers will benefit from increased demand, and training initiatives will be developed to build workforce readiness. Officials indicated that the project complements broader plans to modernise industrial clusters in the state.

The state administration said it has facilitated clearances and infrastructure support to accelerate implementation. Local officials have coordinated with the company to ensure connectivity and utilities are in place ahead of commissioning. The chief minister emphasised that collaboration between private investors and the government aims to create sustainable economic growth. Community outreach programmes will address local concerns and establish grievance mechanisms as construction proceeds.

Officials said the inauguration in Guna marks a new phase in the state industrial story and will serve as a reference for future investments. Administrators noted that close monitoring and periodic reviews will guide timely execution and adherence to environmental and safety norms. The government affirmed its commitment to facilitating responsible industrial expansion while ensuring benefits reach local communities. Stakeholders will continue discussions on supply chain integration and long term maintenance arrangements.

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Concrete

Railways Boost Cement Movement by 170 Per Cent and Eye Fly Ash

New container wagons cut costs and speed turnaround

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Indian Railways has recorded a 170 per cent rise in cement movement in the last four months after reforms launched in November to promote rail based bulk cement logistics. The Union Railway Minister, Ashwini Vaishnaw, reviewed the container sector reforms and their implementation and described the shift as improving plant to market efficiency. The reforms introduced customised bulk cement tank containers and a bulk cement terminal policy to support multimodal handling and door to door solutions.

The new system has simplified loading and unloading by enabling mechanised operations and by reducing package losses compared with bagged cement transport. Since cement can move directly from manufacturing centres to consumption centres in standardised tank containers compatible with Ready Mix Concrete machines, two stages of handling have been eliminated and material loss has been reduced. The standard shape of the containers facilitates faster turnaround and lowers logistics costs for suppliers and builders.

The improved freight turnaround is helping to lower the delivered cost of cement, which can ease pressure on housing costs for the poor and middle class and support affordable construction. The reform is said to be environment friendly as dust generation during material transfer has fallen and fuel consumption and emissions have reduced due to modal shift from road to rail. The Make in India tank containers are designed for seamless movement between train and trailer and to enable efficient door to door movement while cutting congestion on roads.

Building on the cement reforms, officials were urged to tap the fly ash transportation market to convert industrial waste into national wealth. The minister noted that nearly 300 million metric tonnes (mn t) of fly ash is produced in the country while only about 13 million t is transported by rail and asked officials to substantially increase Railways share to serve brick kilns, cement industries and construction sites. Wider utilisation of fly ash should reduce pollution, promote recycling and lower construction material costs while strengthening sustainable freight movement across infrastructure sectors.

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Concrete

Dalmia Bharat launches Weather 365 in East India

New water-repellent cement targets weather-resilient housing demand

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Dalmia Bharat Cement has launched Weather 365, a super-premium water-repellent cement brand for retail markets in West Bengal and Bihar. The product is designed to address rising demand for durable and weather-resistant construction materials in Eastern India.
Weather 365 offers protection against seepage, dampness and moisture damage, especially in regions exposed to heavy rainfall, humidity and changing weather cycles. The cement is suited for roofs, columns and foundations, and uses uniform water-repellent technology to reduce water penetration, steel corrosion, efflorescence and damp patches.
The company said the product will be available in water-resistant and tamper-proof BOPP packaging. It will also provide on-site technical support through engineering and technical services teams to guide customers on construction practices and long-term building performance.
Positioned in Dalmia Bharat Cement’s premium portfolio, Weather 365 targets homeowners, contractors and builders seeking stronger concrete, improved paint life and better structural durability. The launch supports the company’s strategy to expand premium construction solutions in key Eastern India markets.

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