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The Role of Digitalisation in Logistics

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Arvind Devaraj, COO, NICDC Logistics Data Services (NLDSL), emphasises that real competitive advantage of the next decade will belong to manufacturers who can turn fragmented information from road, rail, port, and government systems into connected supply chain intelligence.

A cement consignment rarely travels through a single logistics system.
Between a manufacturing plant and its final destination, a shipment may interact with road transporters, rail networks, warehouses, terminals, ports and multiple government systems. Each participant may generate valuable information, yet much of that information has historically remained within separate digital environments. This fragmentation creates one of the central challenges of modern logistics: there may be abundant data across the ecosystem, but not always a simple mechanism to bring the relevant data together when a decision has to be made.
For India’s cement industry, where logistics operates at scale and transportation constitutes a critical part of the value chain, digital integration can therefore become as important as physical connectivity. The next stage of logistics transformation is not simply about digitising individual processes. It is about enabling different systems to communicate with one another.

Problem is fragmentation, not lack of data
Over the past decade, various parts of India’s logistics ecosystem have become increasingly digital. Vehicle information, toll movements, railway systems, port processes and other logistics activities generate enormous volumes of data. Large manufacturers have also invested in enterprise resource planning, transportation management and fleet-management systems. But digitisation within individual organisations does not automatically create an integrated
supply chain.
A cement manufacturer may have visibility within its own transportation system while a transporter operates another platform and government agencies maintain separate datasets. A logistics team may consequently spend considerable time moving between portals, verifying information or requesting updates from multiple parties. This is where digital integration becomes important. Instead of requiring every stakeholder to operate through a single monolithic system, an interoperable architecture can enable authorised information to move securely between existing systems.
India’s Unified Logistics Interface Platform (ULIP) represents this approach.
Developed under the National Logistics Policy (NLP), ULIP functions as a digital gateway through which logistics-related datasets available across multiple government systems can be accessed through API-based integration. The broader principle is significant: logistics systems do not necessarily have to be replaced to become connected. They need to be able to exchange information securely and in standardised formats.

What integration means for cement logistics
Consider a cement manufacturer managing despatches across several states. The company’s internal system may contain information about orders, inventory and dispatch schedules. Its transport partners may maintain fleet and consignment information. Other logistics data may exist across government platforms. When relevant information can be accessed through digital interfaces and incorporated into a manufacturer’s own logistics application, decision-making becomes significantly easier.
The supply-chain team no longer needs to treat every source of information as a separate digital island. This can enable practical use cases such as shipment tracking, verification of logistics-related information, route planning, estimated arrival information and improved inventory management.
Government information on ULIP has highlighted use cases including tracking and tracing of consignments, route optimisation, destination updates, vehicle and driver verification, reduced paperwork, inventory management and visibility of logistics assets. For a sector handling high shipment volume, even incremental improvements in these processes can become meaningful when multiplied across thousands of movements.

From data collection to decision intelligence
The larger opportunity, however, is not simply to aggregate information. Digitalisation creates maximum value when data improves decisions. Consider a cement distributor waiting to receive its stock at a depot. Knowing that the delivery will be sent is of little value but knowing when it will be received makes the task of managing inventories and client commitments much easier.
Similarly, a manufacturer coordinating multiple dispatches can benefit from understanding which shipments are progressing normally and which require intervention. Estimated time of arrival, route information and other logistics signals can eventually feed into inventory planning, warehouse scheduling and customer-service systems. This is the transition from supply-chain visibility to supply-chain intelligence. Instead of logistics data being reviewed only after an operational problem has occurred, connected digital systems can make information available while there is still time to act.

Multimodal logistics needs digital interoperability
India’s logistics future is increasingly multimodal.
For industries such as cement, the optimal movement of goods may involve a combination of road, rail and maritime transport depending on distance, volume, destination and infrastructure availability. Physical multimodality, however, works most efficiently when accompanied by digital interoperability. If a shipment changes transport modes but its information cannot move seamlessly between systems, operational silos remain even though the physical infrastructure is connected.
An integrated digital layer can help bridge this gap by allowing information from different logistics systems to be consumed through standard interfaces. ULIP’s architecture is relevant in this context because it is based on API-led access to logistics-related government datasets rather than requiring users to repeatedly navigate multiple independent systems.
The scale at which such an architecture is being adopted is also expanding. As of August 2026, ULIP has signed MoUs with 11 states and 2 union territories, and currently connects 13 ministries, 48 systems, 2,000+ data fields and 142 APIs, with 2,391 companies registered and 298 applications developed. The important point for industry is not the number of integrations itself. It is what these integrations can enable.
As more datasets become interoperable, businesses have the opportunity to build logistics applications around specific operational problems instead of constructing separate mechanisms to collect the underlying information.

A platform economy around logistics data
The digitalisation of logistics can also change how innovation occurs. Traditionally, large enterprises could invest significant resources in building proprietary technology and establishing individual integrations with multiple stakeholders. Smaller companies often faced higher barriers.
Common digital infrastructure can reduce some of these barriers. When authorised logistics data is available through standard APIs, technology companies, logistics service providers and manufacturers can develop applications for specific use cases on top of that infrastructure. One company may build a transport visibility solution. Another may focus on route optimisation. A third could develop an inventory-planning tool or an analytics application for a particular commodity.
The result is not one application trying to solve every logistics problem, but an ecosystem in which different applications can use a common digital foundation. For industries such as cement, this can encourage sector-specific innovation while allowing manufacturers to adopt solutions suited to their own supply-chain structures.

Integration must be accompanied by trust
As logistics becomes more data-driven, governance becomes equally important. Manufacturing and transportation data can contain commercially sensitive information. Companies therefore need clarity regarding what information is being accessed, who is authorised to use it and how it is protected. Digital logistics infrastructure must consequently be built around secure access, consent, standardisation and clearly defined data-sharing frameworks.
ULIP’s model of API-based integration within a secured environment illustrates one approach to such controlled information exchange. For businesses, trust in the digital architecture will ultimately determine how extensively these systems become embedded within everyday operations.

Coordination: The next competitive advantage
The cement industry’s logistics challenge cannot be solved only by adding more trucks, warehouses or terminals. Physical capacity remains essential, but efficiency also depends on how effectively existing capacity is coordinated. That coordination increasingly depends on data.
When manufacturers, transporters and logistics infrastructure operate with fragmented information, every handover creates the possibility of another blind spot. When digital systems become interoperable, those handovers can become data points in a connected journey. The long-term objective should therefore be a supply chain where information moves as seamlessly as the material itself.
India’s emerging digital logistics architecture provides the foundation for this transition. The opportunity for the cement industry is to translate that foundation into practical applications better shipment visibility, smarter route and inventory planning, faster verification and more coordinated multimodal operations.
The future of cement logistics will not be defined by digitalisation for its own sake. It will be defined by whether digital connectivity can reduce uncertainty across the value chain.
When fragmented data becomes connected intelligence, logistics moves from being a sequence of transactions to becoming an integrated network and that can ultimately be one of the strongest drivers of efficiency and competitiveness.

About the author:
Arvind Devaraj is the COO of NICDC Logistics Data Services (NLDSL), which is a joint venture between Government of India represented by National Industrial Corridor Development and Implementation Trust (NICDIT) and Japanese IT major NEC Corporation. Devaraj brings over 25 years of diverse professional experience across India and the USA, spanning technology leadership, digital transformation, entrepreneurship, and program management. He has successfully led several large-scale transformation initiatives across both private and public sectors.

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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Concrete

Fornnax Wins AIRIA’s Special Export Award for Rubber Machinery in 2025-26

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Fornnax Technology Pvt. Ltd. has been honoured with the Special Export Award – Rubber Machinery for 2025–26 by the All-India Rubber Industries Association (AIRIA), in recognition of its highest exports of tyre recycling plants to the European region.

With more than a decade of experience in India’s tyre recycling industry, Fornnax has contributed to the development of advanced recycling technologies and infrastructure. The company currently holds a 90% market share in India’s domestic tyre recycling sector, while exports account for 30% of its business, spanning markets such as Europe, Australia and the GCC.

The award marks another milestone for Fornnax, whose tyre recycling lines and advanced shredding technologies are supporting the growth of the circular economy in India and international markets.

Commenting on the recognition, Mr. Jignesh Kundaria, Founder and Director of Fornnax, said:

“This honour from AIRIA is a reflection of an incredible journey we have undertaken over the years. When we started Fornnax, there was no established recycling industry in India to follow. We chose to build for the future instead. Today, when you see India’s tyre recycling sector, it has already transformed into a dynamic, high-growth industry and we are extremely proud to have played our part in building it.”

Unlike standalone equipment suppliers, Fornnax focuses on developing complete, high-capacity recycling infrastructure. Its integrated systems combine multiple stages of shredding and size reduction to enable efficient, continuous operations. This system-level engineering approach helps recycling operators improve throughput, equipment reliability and operational consistency.

The recognition reinforces Fornnax’s commitment to developing engineering technologies that contribute to a more efficient and circular recycling ecosystem.

Looking ahead, the company aims to expand its international presence while continuing to develop advanced shredding and recycling solutions to address the growing volumes and evolving requirements of the global recycling industry.

For more information, visit: www.fornnax.com

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Concrete

Cement Prices Likely to Rise Rs. 10-15 per Bag from Mid-October

Input costs and steady demand may drive cement price increases

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Cement manufacturers in India are likely to raise prices by Rs. 10-15 per bag from mid-October, as they seek to offset persistent increases in power and fuel costs. Emkay Research said its channel checks indicated a high probability of an increase from October 12, supported by the start of the busy construction season and favourable demand-supply conditions.

The sector had implemented similar rate adjustments of Rs. 10-15 per bag during the first quarter, but the increases were insufficient to cover higher operating costs. Prices also softened during July and August because of the monsoon, widening the gap between realisations and input expenses. Delayed plant expansion programmes have pushed clinker utilisation rates towards 79 per cent by FY28, helping to balance market fundamentals.

Emkay Research said steady volume offtake was supporting cement consumption, with non-trade demand driving activity across regional markets. Industry volumes are expected to grow by 7-8 per cent year on year during the first half of FY27, while demand momentum is projected to remain firm over the following 18 months. The outlook includes the busy construction season in the second half of FY27 and infrastructure activity linked to general elections in the first half of calendar year 2029.

The brokerage expects overall cement demand to record a compound annual growth rate of about 7 per cent between FY26 and FY28. However, elevated operating expenses are likely to continue weighing on profitability. Input costs have risen by Rs. 300-400 per t over the past six to seven months, with the full impact expected to become visible in second-quarter earnings and remain persistent through the second half of FY27.

Spot prices for petcoke and imported coal are approximately 20 per cent and 16 per cent above their second-quarter averages, at USD 175 per t and USD 150 per t, respectively. Packing costs have also increased, with polypropylene granule prices rising above Rs. 135 per kg. Emkay Research estimated that second-quarter earnings could decline by Rs. 200-250 per t sequentially because of higher fuel bills and negative operating leverage, and said the sector requires sustained price increases of about Rs. 10 per bag to offset cost inflation.

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