Jignesh Kundaria, Director and CEO, Fornnax Technology

India is simultaneously grappling with two crises: a mounting waste emergency and an urgent need to decarbonise its most carbon-intensive industries. The cement sector, the second-largest in the world and the backbone of the nation’s infrastructure ambitions, sits at the centre of both. It consumes enormous quantities of fossil fuel, and it has the technical capacity to consume something else entirely: the waste our cities cannot get rid of.

According to CPCB and NITI Aayog projections, India generates approximately 62.4 million tonnes of municipal solid waste annually, with that figure expected to reach 165 million tonnes by 2030. Much of this waste is energy-rich and non-recyclable. At the same time, cement kilns operate at material temperatures of approximately 1,450 degrees Celsius, with gas temperatures reaching 2,000 degrees. This high-temperature environment is ideal for co-processing, ensuring the complete thermal destruction of organic compounds without generating toxic residues. The physics are in our favour. The infrastructure is not.

Pre-processing is not the support act for co-processing. It is the main event. Get the particle size wrong, get the moisture wrong, get the calorific value wrong and your kiln thermal stability will suffer the consequences.

The Regulatory Push Is Real

The Solid Waste Management (SWM) Rules 2026 mandate that cement plants progressively replace solid fossil fuels with Refuse-Derived Fuel (RDF), starting at a 5 per cent baseline and scaling to 15 per cent within six years. NITI Aayog’s 2026 Roadmap for Cement Sector Decarbonisation targets 20 to 25 per cent Thermal Substitution Rate (TSR) by 2030. Beyond compliance, every tonne of coal replaced by RDF generates measurable carbon reductions which is monetisable under India’s emerging Carbon Credit Trading Scheme (CCTS). TSR is no longer a sustainability metric. It is a financial lever.

Yet our own field assessments across multiple Indian cement plants reveal a sobering reality: the primary barrier to scaling AFR adoption is not waste availability. It is the fragmented and under-engineered pre-processing ecosystem that sits between the waste and the kiln.

Why Indian Waste Is a Different Engineering Problem

Indian municipal solid waste is not the material that imported shredding equipment was designed for. Our waste streams frequently exceed 40 per cent to 50 per cent moisture content, particularly during monsoon cycles, saturated with abrasive inerts including sand, glass, and stone. Plants relying on imported OEM equipment face months of downtime awaiting proprietary spare parts. Machines built for segregated, low-moisture waste fail quickly and disrupt the entire pre-processing operation in Indian conditions.

The two most common failures we observe are what I call the biting teeth problem and the chewing teeth problem. Plants relying solely on a primary shredder reduce bulk waste to large fractions, but the output remains too coarse for stable kiln combustion. Others attempt to use a secondary shredder as a standalone unit without a primary stage to pre-size the feed, leading to catastrophic mechanical failure. When both stages are present but mismatched in throughput capacity, the system becomes a bottleneck. Achieving the 40 to 70 tonnes per hour required for meaningful coal displacement demands a precisely coordinated two-stage process.

Engineering a Made-in-India Answer

At Fornnax, our response to these challenges is grounded in one principle: Indian waste demands Indian engineering. Our systems are built around feedstock homogeneity, the holy grail of kiln stability. Consistent particle size and predictable calorific value are the foundation of stable kiln combustion. Without them, no TSR target is achievable at scale.

Our SR-MAX2500 Dual Shaft Primary Shredder (Hydraulic Drive) processes raw, baled, or loosely mixed MSW, C&I waste, bulky waste, and plastics, reducing them to approximately 150 mm fractions at throughputs of up to 40 tonnes per hour. The R-MAX 3300 Single Shaft Secondary Shredder (Hydraulic Drive), introduced in 2025, takes that primary output and produces RDF fractions in the 30 to 80 mm range at up to 30 tonnes per hour, specifically optimised for consistent kiln feeding. We have also introduced electric drive configurations under the SR-100 HD series, with capacities between 5 and 40 tonnes per hour, already operational at a leading Indian waste-processing facility.

Looking ahead, Fornnax is expanding its portfolio with the upcoming SR-MAX3600 Hydraulic Drive primary shredder at up to 70 tonnes per hour and the R-MAX2100 Hydraulic drive secondary shredder at up to 20 tonnes per hour, designed specifically for the large-scale throughput that higher TSR ambitions require.

The Investment Case Is Now

The 2070 Net-Zero target is not a distant goal for India’s cement sector. It starts today, with decisions being made on the plant floor.

The SWM Rules 2026 are already in effect, requiring cement plants to replace coal with RDF. Carbon credit markets are opening up, and coal prices are not going to get cheaper. Every tonne of coal a cement plant replaces with waste-derived fuel saves money on one side and generates carbon credit revenue on the other. Pre-processing infrastructure is no longer just a compliance requirement. It is a business investment with a measurable return.

The good news is that nothing is missing. The technology works. The waste is available in every Indian city. The government has provided the policy direction. The only thing standing between where the industry is today and where it needs to be is the commitment to build the right infrastructure.

The cement companies that move now will not just meet the regulations. They will be ahead of every competitor that waits.

About The Author

Jignesh Kundaria is the Director and CEO of Fornnax Technology. Over an experience spanning more than two decades in the recycling industry, he has established himself as one of India’s foremost voices on waste-to-fuel technology and alternative fuel infrastructure.

Digital twins and spatial AI are transforming cement logistics by enabling real-time visibility, predictive decision-making, and smarter multi-modal operations across the supply chain. Dijam Panigrahi highlights how immersive AR/VR training is bridging workforce skill gaps, helping companies build faster, more efficient, and future-ready logistics systems.

As India accelerates infrastructure investment under flagship programs such as PM GatiShakti and the National Infrastructure Pipeline, the pressure on cement manufacturers to deliver reliably, efficiently, and cost-effectively has never been greater. Yet for all the modernisation that has taken place on the production side, the end-to-end logistics chain, from clinker dispatch to the last-mile delivery of bagged cement to construction sites, remains a domain riddled with inefficiencies, opacity and manual decision-making.
The good news is that a new generation of spatial computing technologies is now mature enough to transform this reality. Digital twins, spatial artificial intelligence (AI) and immersive augmented and virtual reality (AR/VR) training platforms are converging to offer cement producers something they have long sought: real-time visibility, autonomous decision-making at the operational edge, and a scalable solution to the persistent skills gap that hampers workforce performance.

Advancing logistics with digital twins
The cement supply chain is uniquely complex. A single integrated plant may manage limestone quarrying, kiln operations, grinding, packing and despatch 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. By ingesting data from IoT sensors on conveyor belts and packing machines, GPS trackers on road and rail fleets, weighbridge records, and weather feeds, the digital twin provides planners with a single, authoritative picture of where every ton of cement is, in real time.
The value, however, goes well beyond visibility. Because the digital twin mirrors the physical system in dynamic detail, it can run scenario simulations before decisions are executed. If a primary rail corridor is disrupted, logistics managers can model alternative routing options, shifting volumes to road or coastal shipping, and assess the cost and time implications within minutes rather than days. If a packing line at the plant is running below capacity, the twin can automatically recalculate dispatch schedules downstream and alert depot managers to adjust receiving resources accordingly.
For cement companies operating multi-plant networks across geographies as varied as Rajasthan and the North-East, this kind of end-to-end situational awareness is transformative. It collapses information latency from hours to seconds, enables proactive rather than reactive logistics management, and creates the data foundation upon which AI-driven decision-making can be built. Companies that have deployed logistics digital twins in comparable heavy-industry contexts have reported reductions in transit time variability of up to 20 per cent and meaningful decreases in demurrage and detention costs, savings that flow directly to the bottom line.

Smart logistics operations
A digital twin is only as powerful as the intelligence layer that sits on top of it. This is where Spatial AI becomes the critical differentiator for cement logistics.
Traditional logistics management systems are reactive. They record what has happened and flag exceptions after the fact. Spatial AI systems, by contrast, are proactive. They continuously analyse the state of the logistics network as represented in the digital twin, identify emerging bottlenecks before they crystallise into delays, and recommend corrective actions.
At the plant gate, AI-powered visual inspection systems using spatial depth-sensing cameras can assess truck conditions, verify load integrity and confirm seal tamper status in seconds, replacing the manual checks that currently slow throughput. At the depot level, Spatial AI can monitor stock drawdown rates in real time, cross-reference them against pending customer orders and inbound shipment ETAs, and automatically trigger replenishment orders when safety thresholds are approached. In transit, AI systems processing GPS and telematics data can detect anomalous vehicle behaviour, including extended stops, route deviations, speed irregularities and alert fleet managers instantly.
Perhaps most significantly for Indian cement logistics, Spatial AI can optimise the complex multi-modal routing decisions that are central to competitive cost management. Given the variability in road quality, seasonal accessibility, rail rake availability, and regional demand patterns across India’s vast geography, the combinatorial complexity of routing optimisation is beyond human planners working with conventional tools. AI systems can process this complexity continuously and adapt routing recommendations as conditions change, reducing empty running, improving vehicle utilisation and cutting fuel costs.
The agentic dimension of modern AI is particularly relevant here. Agentic AI systems do not merely analyse and recommend; they act. In a cement logistics context, this means an AI system that can, within pre-authorised boundaries, directly communicate revised dispatch instructions to plant teams, update booking confirmations with freight forwarders and reallocate available rail rakes across plant locations, all without waiting for a human to process a recommendation and make a call. For logistics executives, this represents a genuine shift from managing a workforce to setting the rules of engagement and reviewing outcomes. The operational tempo achievable with agentic AI simply cannot be matched by human-in-the-loop systems working at the pace of emails and phone calls.

Bridging the skills gap
Technology investments in digital twins and spatial AI will deliver diminishing returns if the human workforce cannot operate effectively within the new systems they create. This is a challenge that India’s cement industry cannot afford to underestimate. The sector relies on a large, geographically dispersed workforce, including truck drivers, depot managers, despatch supervisors, fleet maintenance technicians, many of whom have been trained on paper-based processes and manual workflows. Retraining this workforce for a digitised, AI-augmented environment is a substantial undertaking, and conventional classroom or on-the-job training methods are poorly suited to the scale and pace required.
Immersive AR and VR training platforms offer a fundamentally different approach. By creating photorealistic, interactive simulations of logistics environments, such as a plant dispatch bay, a depot yard, the interior of a cement truck cab, allow workers to practice complex procedures and decision-making scenarios in a safe, consequence-free virtual environment. A depot manager can work through a simulated rail rake delay scenario, making decisions about customer allocation and communication
without the pressure of real orders being affected. A truck driver can practice the correct procedure for securing a load of bagged cement without the risk of a road incident.
The learning science case for immersive training is compelling. Studies consistently show that experiential, simulation-based learning produces faster skill acquisition and higher retention rates than didactic instruction, with some research indicating retention rates three to four times higher for VR-based training compared to classroom methods. For complex operational procedures where muscle memory and situational awareness matter as much as conceptual knowledge, the advantage of immersive simulation is even more pronounced.
Today’s leading cloud-based spatial computing platforms enable high-fidelity AR and VR training experiences to be delivered on standard mobile devices, removing the hardware barrier that has historically made immersive training impractical for large, distributed workforces. This is particularly relevant for cement companies with depots and logistics operations in tier-two and tier-three locations, where access to specialised training hardware cannot be assumed.
The integration of AR into live operations also creates ongoing learning opportunities beyond formal training programs. As an example, maintenance technicians equipped with AR overlays can receive step-by-step guidance for equipment procedures directly in their field of view, reducing error rates and service times for critical plant and fleet assets.

New strategy, new horizons
India’s cement industry is entering a period of intensifying competition, rising logistics costs, and demanding customers with shrinking tolerance for delivery variability. The companies that will lead over the next decade will be those that treat logistics not as a cost centre to be minimised, but as a strategic capability to be built.
Digital twins, spatial AI and immersive AR/VR training are not distant future technologies, they are deployable today on infrastructure that Indian cement companies already operate. The question is not whether to adopt them, but how quickly to do so and where to begin.

About the author:
Dijam Panigrahi is Co-Founder and COO of GridRaster Inc., a provider of cloud-based spatial computing platforms that power high-quality digital twin and immersive AR/VR experiences on mobile devices for enterprises. GridRaster’s technology is deployed across manufacturing, logistics and infrastructure sectors globally.

Dr SB Hegde, Global Cement Industry Leader discusses the imperative need for modern cement plants to recognise packaging and bag traceability as critical components of quality assurance and supply chain management.

In cement manufacturing, considerable attention is given to clinker quality, kiln operation, grinding efficiency and laboratory control. Yet the final stage of the process, cement packaging and despatch, often receives less strategic focus. The cement bag leaving the plant gate represents the final interface between the manufacturer and the customer. Even if clinker chemistry, fineness and strength development are well controlled, weaknesses in packaging, handling, or distribution can affect product quality before it reaches the construction site.
Operational experience from cement plants across different regions shows that packaging efficiency and bag traceability have a significant influence on product reliability, logistics performance and brand credibility. In modern cement plants, packaging systems are no longer viewed merely as despatch equipment. They are increasingly recognised as an important part of quality assurance, supply chain management and customer confidence.

Operational importance of packaging
Cement packaging systems must operate with high speed, accuracy and reliability to support efficient despatch operations. Rotary packers equipped with electronic weighing systems have improved packing accuracy and productivity in many plants.
However, maintaining operational discipline remains essential. Regular calibration of weighing systems, maintenance of packer spouts and proper bag application are important for maintaining consistent bag weights and preventing cement loss.
Operational benchmarks observed in many cement plants are summarised in Table 1.
Plants that improved calibration discipline and equipment maintenance have reported packing loss reductions of about 1 per cent to 1.5 per cent, which represents significant annual savings.

Quality assurance beyond the plant gate
Quality control in cement plants traditionally focuses on laboratory parameters such as fineness, compressive strength and chemical composition. However, the condition of cement when it reaches the customer is equally important.
Cement bags may travel through several stages including plant storage, transport vehicles, dealer warehouses and retail outlets before reaching the construction site. During this journey, cement may be exposed to humidity, rough handling and improper storage conditions.
Table 2 shows common factors that may affect cement quality during distribution.
Studies indicate that cement stored under humid conditions for long periods may experience 10 per cent to 20 per cent reduction in early strength. Therefore, maintaining proper packaging integrity and traceability is essential.

Role of cement bag traceability systems
Traceability systems allow manufacturers to identify when and where cement was produced and despatched. These systems connect packaging operations with production records and logistics data.
When customer complaints occur, traceability enables manufacturers to identify:

• Production batch
• Packing date and time
• Plant location
• Laboratory test results

Several technologies are used to implement bag traceability, as shown in Table 3.
Among these technologies, QR code authentication systems are becoming popular because customers can verify product authenticity through smartphones.

Digital transformation
Digital technologies are transforming cement packaging operations. Modern packing lines now integrate:

• automated rotary packers
• electronic bag counting systems
• robotic palletising systems
• ERP-based despatch management
• digital supply chain monitoring

These technologies improve operational efficiency and transparency across the supply chain.
Such systems help manufacturers track cement movement across the distribution network and respond quickly to quality concerns.

Case Study: Digital Cement Bag Authentication
Several cement manufacturers in Asia and the Middle East have implemented QR code-based bag authentication systems to improve supply chain transparency.
In one integrated cement plant, QR codes were integrated into the rotary packing machine. Each cement bag received a unique digital identity linked to the production database.
The QR code contained information such as:
• plant location
• manufacturing date and time
• product type
• batch number

Customers and dealers could scan the code using a mobile application to verify product authenticity.
After implementation, the company reported:
• reduction in counterfeit bag circulation
• improved despatch data accuracy
• faster resolution of customer complaints
• better visibility of distribution networks

The system was also integrated with the company’s ERP platform, enabling real-time monitoring of production and despatch activities.

Future-Smart Packaging Systems
The future of cement packaging lies in the integration of Industry 4.0 technologies with logistics and supply chain management.
Packaging lines will increasingly become part of connected digital ecosystems linking production, quality control, despatch and market distribution.
Artificial intelligence and data analytics may also help detect abnormalities in bag weight variations, equipment performance and despatch patterns.

Global benchmark indicators
Global benchmarking of cement packaging operations highlights the increasing importance of efficiency, automation and digital traceability in modern cement supply chains. Leading cement plants are now focusing on key performance indicators such as packer availability, bag weight accuracy, packing losses, truck turnaround time and digital traceability coverage. Studies show that overall equipment effectiveness (OEE) in many industrial operations is still around 65 per cent to 70 per cent, whereas world-class plants aim for levels above 85 per cent, indicating significant scope for improvement in operational efficiency.
At the same time, the global cement packaging sector is expanding steadily, supported by growing infrastructure demand and increased emphasis on reliable and moisture-resistant packaging solutions. The cement packaging market is projected to grow steadily in the coming decade as companies adopt automation, smart packaging technologies and integrated logistics systems to improve despatch efficiency and supply chain transparency. In this context, benchmarking against global indicators helps cement plants identify performance gaps and adopt best practices such as automated bagging systems, QR-based traceability, ERP-linked despatch monitoring, and predictive maintenance of packing equipment.

Strategic Recommendations
To fully benefit from packaging and traceability systems, cement manufacturers should consider the following approaches.
• Packaging systems should be treated as an integral part of the manufacturing value chain rather than simply despatching equipment.
• Investments in modern packers, automated loading systems and digital traceability technologies should be encouraged.
• Industry associations may also promote standard traceability practices to reduce counterfeit products and improve transparency in the cement market.
Finally, continuous training of plant personnel in packaging operations and maintenance practices is essential for sustaining operational efficiency.

Conclusion
Cement packaging has evolved from a routine mechanical operation into a strategic component of modern cement manufacturing. Efficient packaging systems ensure that the quality achieved within the plant is preserved during transportation and distribution. Traceability technologies allow manufacturers to track cement movement, investigate complaints and prevent counterfeit products.
As the cement industry moves toward digitalisation and integrated supply chains, packaging and bag traceability will play an increasingly important role in quality assurance, operational efficiency and customer confidence. Ultimately, the cement bag leaving the plant carries not only cement but also the reputation and responsibility of the manufacturer.

References

1. Hewlett, P.C., & Liska, M. (2019). Lea’s Chemistry of Cement and Concrete. Butterworth-Heinemann.
2. Schneider, M., Romer, M., Tschudin, M., & Bolio, H. (2011). Sustainable cement production. Cement and Concrete Research, 41(7), 642–650.
3. International Cement Review. (2023). Advances in cement packaging and logistics systems.
4. World Business Council for Sustainable Development (2021). Cement Industry Supply Chain Innovation Report.
5. Gartner, E., & Hirao, H. (2015). Reducing CO2 emissions in cement production. Cement and Concrete Research.
6. ScienceDirect Industry Studies. (2024). Operational efficiency benchmarks and overall equipment effectiveness in industrial manufacturing systems.
7. World Cement Association. (2022). Digital Transformation in Cement Manufacturing and Logistics. London.
8. Towards Packaging Research. (2024). Global cement
   packaging market trends and technology outlook. Industry Market Analysis Report.
9. Towards Packaging Research. (2024). Global cement
   packaging market trends and technology outlook. Industry Market Analysis Report.

About the author:
Dr SB Hegde is a Professor at Jain College of Engineering, Karnataka, and Visiting Professor at Pennsylvania State University, USA. With 248 publications and 10 patents, he specialises in low-carbon cement, Industry 4.0, and sustainability, consulting with cement companies to support India’s net-zero goals.

Table 1. Key Operational Parameters for Cement Packaging Systems

Parameter Typical Industry Range Recommended Target Operational Significance
Rotary packer capacity 2400–3600 bags/hr 3000–4000 bags/hr Improves despatch efficiency
Bag weight tolerance ±0.5 kg ±0.25 kg Reduces customer complaints
Bag leakage rate 1 per cent to 2 per cent <0.5 per cent Minimises cement loss Packing accuracy 98 per cent to 99 per cent >99.5 per cent Ensure compliance with standards
Truck loading time 30–45 minutes 20–30 minutes Improves logistics efficiency

Table 2. Causes of Cement Quality Degradation During Distribution
Factor Typical Cause Impact on Cement
Moisture exposure Poor storage or rain exposure Lump formation
Long storage duration Slow inventory turnover Loss of early strength
Bag damage Rough handling Cement loss
Improper stacking Excessive loading Bag rupture
Counterfeit bag reuse Refilling of empty bags Brand damage

Table 3. Comparison of Cement Bag Traceability Technologies
Technology Advantages Limitations
Printed batch code Low cost and simple Limited traceability
Barcode Fast scanning Requires equipment
QR code Smartphone verification Requires digital platform
RFID tagging Automated tracking Higher cost
Blockchain systems High transparency Complex implementation