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Why Traditional ERP Systems Fail in India?

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Veerendra Jamdade discusses why traditional ERP systems are failing to meet the demands of modern cement manufacturing and how intelligent, cloud-based, and industry-specific ERP solutions can drive operational efficiency, supply chain visibility and data-driven decision-making.

The slow-paced manufacturing realm has ceased to be a part of India’s cement sector. Due to new, large-scale infrastructure developments currently being realised, massive urban growth, increasing housing demand and increasingly strict delivery timeframes; India’s cement industry is now undergoing rapid change and has developed into a very dynamic ecosystem characterised by a need for speed, coordination and operational visibility. Widening chasm between current operational requirements and outdated enterprise resource planning (ERP) craftsmanship is rapidly becoming evident across the entire industry. In today’s cement industry, where organisations operate complex networks of plants, depots, logistics partners, distributors and field teams, it is also observed that traditional legacy-based enterprise systems are increasingly struggling to support the size, agility and timeliness of decision-making necessary to manage these operations efficiently. Given that even a small bottleneck in process can have numerous implications on profit margins for a variety of companies in the cement industry.

Lack of real-time visibility across plants and depots
To maintain a successful cement business, it is necessary to coordinate the efforts of all the different parties involved in the business. Coordination is essential for production units, grinding units (or plants), warehouses, depots, dealers and transport teams; they all must work together effectively to keep operations flowing smoothly. A major issue facing the cement sector is that, because traditional ERP systems were not designed to provide real-time visibility through the supply chain (a very large network), they cannot adequately meet this need.
Most legacy ERP systems still operate on delayed reporting cycles, where operational data is updated several hours after they occur, instead of being reported in real-time, making it impossible for decision-makers to receive the live information they need to manage inventory levels; dispatching, scheduling, and fluctuations in the areas they service. With transportation making up a significant portion of the cost of doing business in cement, delayed visibility directly affects profitability. Therefore, a modern cement company needs immediate access to the operational data they require to support their business, rather than reports that provide that information after having made the necessary decision.

Poor integration with supply chain and logistics
Logistics play a crucial role in the success of many organisations; the cement industry is one of those industries that relies much on logistics. From the movement of raw materials to the delivery of finished products, the efficiency with which transportation is utilised is critical to the company’s profitability. Unfortunately, most traditional enterprise resource planning systems are still designed and used as stand-alone systems and don’t connect properly with the logistics networks and processes of a company. This means companies rely on phone calls, spreadsheets, and manual coordination to manage deliveries and vehicles during their transit.
As a result of this condition, tracking delays is much more difficult, route optimisation is less effective and vehicle turnaround time increases. In short, the modern cement supply chain needs seamless digital connections between manufacturing, warehousing, transportation, and dealer networks in order to be efficient, transparent, and respond faster to customer demands than those companies that do not have an integrated supply chain.

Continued dependency on manual processes
One of the most significant ironies within numerous cement companies is that, although the companies have invested in ERP systems, they still require several manual operations to support their daily operations. Workers still rely on spreadsheets, hard copy documents, emails, and non-electronic approvals, all of which are time-consuming and increase the likelihood of errors. Failure to properly enter dispatch records may result in incorrect inventory information, which may lead to billing errors that create operational confusion at the company’s scale of operations.
Manual processes also reduce productivity because employees must spend an inordinate amount of time keeping the various systems updated and very little time involved in analysing the data or improving the execution of their work. A further complication related to using technology is the diminishing ease of use. Technology was designed to improve the efficiency of operations and have a net result of reducing complexity. If workers require multiple manual operations to perform basic operational activities, the ERP system has not met its intended objective.

Weak analytics and forecasting capabilities
The cement industry has a market that is constantly in flux, due to factors such as infrastructure investment, seasonality of demand, fuel costs, building activity by region and general economic cycles; therefore, having accurate forecasts is very important in this type of market. Traditional ERP systems are primarily data repositories with limited analytic functionality; thus, they capture transactional and operational information but generally lack advanced analytical capabilities for converting captured data into actionable information. This affects everything from demand forecasting and inventory planning through procurement and production scheduling.
Companies frequently struggle to predict when regional demand will surge, identify slow-moving inventory items, or optimise their production capacity in a manner that is effective. Without the benefit of predictive intelligence, companies find themselves having to react to issues rather than preparing to address them. With today’s increased competition in the marketplace, relying on reactive decision-making is no longer a viable option.

The future of ERP in the cement industry
In the world of enterprise resource planning (ERP), intelligence, automation, and predictive decision-making are the future. The use of artificial intelligence and machine learning in today’s ERP systems allows them to provide far more than simply documenting operational data. These intelligent systems can model demand patterns, predicting maintenance needs, managing purchasing and inventory levels, assisting with dispatching and scheduling, and identifying inefficiencies prior to becoming a significant issue.
Cement manufacturers will see reductions in downtime, improved cost control, increased inventory productivity, and quicker decision-making through all areas of their operation due to the use of an intelligent ERP system. An intelligent ERP system enables you to turn data into a source of competitive advantage vs. simply providing you with a report.

Greater adoption of cloud-based ERP
Cloud ERP systems are increasingly becoming a necessity for businesses operating across multiple locations. Cloud ERP is far more flexible and scalable than the flagships on-premise systems. For cement companies operating under remotely distributed conditions, cloud technology allows the teams to access real-time information from anywhere. Management teams can monitor plant performance via remote access, while field teams and depot managers can coordinate more effectively. Additionally, cloud-based systems facilitate upgrades, lessening the reliance on IT organisations, while allowing for operational scaling with no major infrastructure investment. In a fast-moving industry, agility matters and cloud ERP delivers just that.

Industry-specific ERP solutions
Generic enterprise solutions form the basis for many traditional ERP platforms. However, numerous sectors today require detailed and very specialised operating requirements. For example, in the cement sector, there are areas of importance such as freight optimisation, clinker tracking and bulk dispatch management, along with dealer incentive structures, and multi-location production planning that can require sector-specific workflows and functionality.
Consequently, sector-specific ERP models are rapidly gaining favour. Because quasi-customised approaches can be costly, difficult to maintain, and may not provide a suitable product for the user’s needs, more companies are choosing an ERP that comprises industry-specific functionality and is designed specifically for their operation; reducing the need for tremendous amounts of customisation while providing an enhanced level of usability and a better fit to what the way their business operates versus a generic enterprise process. When users find an ERP model that provides them with functionality that can be built into their workflow, they are much more likely to accept the use of the system than if the ERP model were generic in nature.

Integrated logistics and supply chain ecosystems
For the ERP systems of the future to be truly effective as a fully integrated operational ecosystem, there must be a common digital backbone connecting all participants in the supply chain manufacturers, distribution centres, carriers, retailers, purchasing departments and consumers. In doing so, businesses will achieve much greater operational performance by implementing elements like real-time truck tracking, automated route planning, digital proof-of-delivery and integrated communication with their suppliers. A complete supplier chain will lead to reduced supply chain delays, as well as lower transportation costs and greater customer satisfaction through increased visibility of delivery status and quicker response times.

E-mobile and user-friendly systems
Today, employees want their technology to be efficient, easy to use, and portable, but many of the older-style enterprise resource planning systems don’t provide employees with anything but a dated interface and therefore make it hard for them to adopt them. Today’s ERP systems need to give importance to usability and accessibility. Mobile-first systems will allow the employee to approve shipments, view the inventory, track the progress of deliveries, and get production data all on their smartphone or tablet. This enables much quicker responses to employees’ needs, aiding in user adoption of the application, and allowing for faster data entry from the field. The more user-friendly an ERP application is, the greater the operational value it brings to the company.
As a result, the legacy systems used to provide basic operational support are now out-dated and can no longer handle the main challenges of operating a modern cement company. The future of the industry will require sophisticated ERP systems that are developed via cloud technologies that provide functionality like real time visibility into your business; integrated logistics solutions supplier, customer, and internal logistics, predictive data analytics; and user-friendly interfaces. For cement manufacturers, upgrading ERP Systems is not just a technology decision but rather it is a Business Imperative. The cement companies that implement better digital systems will be positioned to improve operational efficiencies, lower costs, create stronger supply chains and compete more effectively in the future.

About the author
Veerendra Jamdade, CEO and Founder, Vritti Solutions,
is an award-winning technology leader with over 33 years of experience driving digital transformation across manufacturing and enterprise ecosystems through ERP, CRM and WMS solutions.

Concrete

UltraTech Cement Expands in Andhra Pradesh with Rs. 26.5 bn

Petnikota plant adds 3.6 MTPA cement dispatch capacity

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UltraTech Cement has expanded its manufacturing footprint in Andhra Pradesh with the commissioning of Petnikota Cement Works, an integrated cement plant built with an investment of around Rs. 26.5 bn. The facility is located in Petnikota village in Kolimigundla mandal of Nandyal district, in the Rayalaseema region.

Construction of the plant began in May 2025. The facility has a clinkerisation capacity of 3.3 MTPA and a cement dispatch capacity of 3.6 MTPA, strengthening the company’s production and distribution presence in the State.

The plant is expected to provide direct employment to 650 people and indirect employment to another 2,000. It has been designed to operate entirely on green energy and does not have a captive thermal power plant. The project also uses no groundwater, according to information released by the Andhra Pradesh Government.

Nara Lokesh, Andhra Pradesh Minister for Information Technology, said in the release that the facility was taken from groundbreaking to commissioning in 14 months. He described the project as a state-of-the-art addition to the company’s operations in the State and said it would create 2,650 direct and indirect employment opportunities.

Petnikota Cement Works adds to UltraTech Cement’s manufacturing capacity in Andhra Pradesh while supporting industrial activity in Nandyal district. The plant’s energy design and stated groundwater-use policy are also intended to reduce the environmental impact of its operations. The company has identified the facility as part of its continuing capacity expansion in the Indian cement market.

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Concrete

Nuvoco reports 13.5% revenue growth in Q2 FY27

Cement sales rose 9% to 4.7 MMT, while EBITDA increased 11%.

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Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.
The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.
On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid renewable energy project in Rajasthan. Once operational, the project is expected to generate about 100 million units of renewable electricity annually. The company expects it to reduce reliance on conventional power sources and improve long-term cost certainty across its Rajasthan operations.
Jayakumar Krishnaswamy, Managing Director, Nuvoco Vistas Corp. Ltd., said, “Q2 FY27 was a testament to resilient execution in a challenging operating environment. Despite intense and erratic rainfall in our key markets, global and regional logistics & supply chain disruptions, and elevated input costs stemming from ongoing geopolitical uncertainty, the Company delivered strong YoY growth in Revenue, EBITDA, and PAT. Our performance reflects the strength of our strategic levers of premiumisation and geographical mix optimisation, which helped realisations amid muted cement prices.”
He added, “During the quarter, the Company achieved a significant growth milestone with the successful commissioning of the 2 MMTPA Grinding Unit at Limla, Surat, underscoring our strong project execution capabilities. This achievement reinforces our confidence in delivering the remaining modules of the Vadraj Cement Project at Kutch and Sachana within the planned timelines. Looking ahead, while we remain mindful of evolving macroeconomic and geopolitical dynamics, we remain focused on operational excellence, accelerating premiumisation, optimising supply chain efficiencies, and executing our growth projects as planned.

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Concrete

Meghalaya Cabinet Approves MCCL Closure, Writes Off Rs. 244.3 mn

Cabinet approves winding up of state-owned cement company

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The Meghalaya Cabinet has approved the closure and winding up of Meghalaya Cherra Cement (MCCL), a state-owned cement company, with pending liabilities of approximately Rs. 244.3 mn to be written off as part of the process. The decision was announced by Chief Minister Conrad K Sangma on October 13, 2026.

The approved write-off comprises about Rs. 89 mn in sales tax dues and Rs. 155.3 mn in royalty dues. The Cabinet’s decision addresses the liabilities that remained after the company’s operations and enables the government to proceed with its formal closure.

Sangma said employee dues owed by MCCL had been settled in line with the state government’s commitment. The settlement of employee-related liabilities is a key part of the winding-up process and removes outstanding obligations to the company’s workforce.

The Chief Minister explained that MCCL is owned by the government, meaning the pending liabilities would otherwise involve transfers between the state government and its departments. Writing off the dues is intended to simplify the accounting and administrative steps required to complete the closure.

The decision is also intended to ensure that the winding-up does not create an additional financial burden for the state government. With employee payments settled and the sales tax and royalty liabilities addressed through the approved write-off, the Cabinet’s approval marks a further step towards completing the formal closure of MCCL.

The action follows the state government’s decision to discontinue the company and resolve its outstanding obligations through an orderly winding-up process. The approved measures cover the principal liabilities identified for settlement and allow the government to advance the remaining formal procedures associated with closing the state-owned enterprise.

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