Concrete

Digitisation is very significant in today’s times

Published

3 years ago

April 12, 2023

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Swapnil Shah, Founder and CEO, Freight Tiger, emphasises the need to digitise logistics processes for better management and optimum productivity.

What is the role of digitalisation in optimising the distribution and logistics
of cement?
Digitalisation plays a huge role. It has a massive impact and almost every customer we work with today has a chief digital officer. Digitisation is very significant in today’s times. Companies are also investing in dedicated digital teams and it is happening across all industries. Industry leaders are not only hiring digital experts for their operations but are also involved with the same for their business. This is about digitalisation only from an impact involvement point of view.
Looking into the details of what digitisation means, there are a whole lot of things that are happening today. To share a few examples,

It allows the ability to have visibility into every delivery in terms of location, ETA, etc. Customers are consuming it for their own use, within their company, and they want to give that visibility to their end customer, too. So, the most basic use of digitalisation is bringing visibility for every order to customers and helping them plan better.
Being digital allows companies to track their footprint, get data analytics, understand issues with their services and analyse their costs. This helps them make many distribution decisions based on location data, average transit times, lead distance and more.
Often cement deliveries get diverted and this is a huge problem that most service providers are trying to resolve. With digitalisation and use of technology, cement makers can keep a track of their actual end user and understand their issues and try to work on them.

How can your system make a difference in managing cost efficiency for the cement industry?
We essentially give transportation management software and a visibility platform. Transportation management software is changing rapidly today. Freight Tiger builds a unifying platform as a connective tissue among all IT platforms, stakeholders and vendors. That is the first role we play. We help our customers manage order to delivery timelines in a very tight manner.
Often there are minor issues, like distances not being correct for which freight is paid and sometimes there is backloading at cement plants. In these cases, Freight Tiger allows customers to make sure the distances are correct. If diversions or backloading happens, it gives visibility into it. That’s a unique solution that we provide.
Measurement of performance is another area where we play a role. In terms of performance of distribution footprint, optimised lead time, per kilometre rate, lead distance, free trade routes etc. Freight Tiger allows you to understand service quality and its competitive edge over the market in terms of the delivery SLAs. We allow companies to measure and influence all of this in their operations.

Tell us about 360-degree management of freight operations for the cement industry through your platform.
On the one hand, you are sourcing raw material, and on the other, you are making all these deliveries either through your distribution footprint or directly from the plant. So, a 360-degree approach means the total cost of raw material sourcing logistics, the whole cost end-to-end, day-to-day distribution, percentage of deliveries directly serviced through plants versus through a series of distribution layers.

How do you connect the Freight ecosystem for the cement industry with your platform?
Freight Tiger is a technology- and a product-first company. We are a neutral party to all that happens in our customers’ environment.
What I mean by neutral is we do not play the role of an aggregator or a logistics service provider. We have no conflict with the existing logistics service providers that the cement company uses. We integrate telematics vendors. We have done close to 200 telematics company integrations, so we stay neutral. We believe that collaboration and neutrality will take us in the industry a lot farther than just trying to remove someone from the value system.
These two are very pivotal when you think about Freight Tiger as a player in this ecosystem.

What are the key pain points in the logistics of cement. How can you help resolve the same?
First and foremost, there is inefficiency and waiting during loading or unloading of the material at the plants. Transit times also are not monitored well. So, part of the inefficiency is because people have to wait due to space constraints or other reasons.
Secondly, cement organisations often have to service their customers in a relatively tighter delivery window. That is a pain point that involves making day-to-day decisions about choosing the right way to service the customers at an optimum cost, without compromising the quality of product or service.
Another major pain point is that cement organisations do not know where their product is unloading. This means that they do not know their end consumer. This is a unique problem in the cement industry because deliveries get diverted. Participants in the ecosystem may divert the deliveries based on requirements. So, knowing the exact unloading location and knowing the end customer is a massive gap in the cement industry.
Digitising proof of delivery and freight invoicing is something we’ve never seen before. Not only for the cement companies, but everyone who works in the value chain – the trucker, the logistics provider, the transporter – each one of them can benefit from this and that would be a big step to remove paper trails and make them into digital records. When we think about EPOD and digital freight invoicing that you do at the end of the day ensures all stakeholders are benefited from it. Cement companies have contracts with logistics providers or transporters or they sometimes hire fleet owners and trucks from the market, if they do not have their own. Any solution or change ultimately needs to impact everyone in the ecosystem. EPOD and digital freight invoicing achieves just that by easing the operations for everyone.

How do you foresee the changing face of logistics for the Indian cement industry?
It is my understanding that as a cement manufacturer, I would like to know my customer or where my product is exactly getting unloaded, instead of directionally knowing where the product is headed to. Another important factor is sustainability, whereas as a manufacturer or distributor the target would be to have the same or more deliveries by travelling less, optimising and reducing empty miles.
Cement companies are also moving towards alternative fuel vehicles, electric vehicles for some part of their delivery. I see that as a big change. And overall, analytics and how some sort of machine learning AI can help me make better decisions day to day. That is also on everyone’s mind. And, I think it is going to transform how people make decisions going forward. Those are the few things I will say are quite important as we look at the future.

–Kanika Mathur

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Concrete

Cement Makers’ Margins To Fall Rs 50-75 Per Tonne Amid West Asia Conflict

Crisil Sees Margins Easing Despite Steady Demand

Published

2 weeks ago

July 29, 2026

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Crisil said operating margins of Indian cement manufacturers are expected to decline by Rs 50-75 per tonne (t) this fiscal to Rs 925-950 per t due to higher input costs triggered by the West Asia conflict. The analysis covered 18 cement companies accounting for nearly 90 per cent of India’s domestic cement capacity and noted margins had improved sharply to around Rs 1,000 per t in fiscal 2026.

Crisil noted that the reduction would be driven mainly by higher power and fuel costs, which account for about 30 per cent of total costs, as petcoke and imported coal prices have surged amid geopolitical uncertainties. Freight costs, which account for about a quarter of total costs, are also expected to remain elevated because of higher diesel prices. The impact on profitability is likely to be more pronounced in the first half of the fiscal year before easing commodity prices moderate cost pressures later.

The rating agency said steady domestic demand and strong balance sheets should keep credit profiles stable despite the moderation in margins. Green energy currently accounts for 35-40 per cent of the sector’s total electricity consumption and is expected to partly cushion higher energy costs. Operating cash flows are likely to remain resilient, supported by projected 6-7 per cent growth in cement demand this fiscal.

Crisil highlighted that demand growth will be driven primarily by infrastructure spending, which meets about one-third of sector consumption, and by a nearly 18 per cent higher budgetary allocation for core ministries that should support project execution. Weaker rural housing demand amid pressure on agricultural incomes from a possible below-average monsoon may be offset by improved urban housing demand supported by favourable home-loan rates and a strong pipeline of Pradhan Mantri Awas Yojana-Urban projects. Ongoing capacity additions will keep capital expenditure elevated and may lift net debt to EBITDA to between 1.2 and 1.4 times from around 1.0 time last fiscal, though ratios are expected to remain healthy.

Concrete

UltraTech Board Approves Rs 50 bn Fundraise Via NCDs

Company to issue half a million debentures for expansion plan

Published

2 weeks ago

July 28, 2026

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UltraTech Cement’s board of directors has approved raising Rs 5,000 crore (Rs 50 bn) through non?convertible debentures issued in rupees.

The finance committee cleared a proposal to issue up to 500,000 fully paid, unsecured, listed, rated, redeemable, rupee?denominated, non?convertible, non?cumulative debentures of Rs 1 lakh each (Rs 0.1 mn each), aggregating to the Rs 5,000 crore programme.

As of June 2026 the firm reported net debt of Rs 15,875 crore (Rs 158.75 bn) and said its capacity expansion projects under execution are backed by capital expenditure of about Rs 17,000 crore (Rs 170 bn) over the next two to two?and?a?half years.

UltraTech spent Rs 9,500 crore (Rs 95 bn) on capital expenditure in financial year 2026 and in April the group crossed 200.1 mn tonnes per annum of domestic grey cement capacity and 205.5 mn tonnes per annum of global capacity.

The chief financial officer indicated the company would take consolidated capacity beyond 242 mn tonnes per annum, with grey cement capacity reaching 212.7 mn tonnes per annum by the end of financial year 2027. He noted the net debt?to?earnings before interest, taxes, depreciation and amortisation ratio stood at 0.87 times as of June 2026 and the company was confident of ending financial year 2027 with the ratio below one time.

In the first quarter of financial year 2026?27 UltraTech’s net profit attributable to owners rose 16.8 per cent year?on?year to Rs 2,599.3 crore (Rs 25.993 bn) and revenue from operations increased 15.9 per cent to Rs 24,648.20 crore (Rs 246.482 bn). The board approval is expected to complement internal cash flows as the company advances its expansion programme.

Concrete

Lokesh Lays Stone For Rs 31 Billion Cement Unit In Kadapa

Line-2 expansion to make Kadapa a major cement hub

Published

3 weeks ago

July 20, 2026

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Andhra Pradesh Education and IT Minister Nara Lokesh on Wednesday laid the foundation stone for the Line-2 expansion of Dalmia Bharat Cement at Chinnakomerla village in Mylavaram Mandal in Kadapa district. The project carries an investment of Rs 31 billion (bn) and is slated for completion by the third quarter of the financial year 2028. The expansion is intended to boost industrial growth and employment generation across the Rayalaseema region.

Once commissioned, the Kadapa facility will become Dalmia Bharat’s largest integrated cement manufacturing ecosystem in southern India, creating over 1,000 direct and indirect jobs and opening new business avenues for regional micro, small and medium enterprises and transport operators. Lokesh said the expansion signalled growing corporate confidence in the state and reflected the practical ease of doing business that secured repeat investment.

He placed the project within the government’s wider economic targets and recalled the Yuvagalam padayatra commitment to generate two million (mn) jobs within five years, noting that the state would cultivate talent while industry created opportunities. Lokesh highlighted Andhra Pradesh’s competitive pursuit of major manufacturing accounts, mentioning past successes and a personal initiative to engage global investors when persuading them to anchor expansion in the state.

The plant will leverage Kadapa’s abundant limestone reserves to scale production and sustainability. Clinker capacity is planned to rise from two point five million tonnes per annum (mn tpa) to six point one mn tpa, while overall cement output will increase from three point six mn tpa to nine point six mn tpa. The unit is designed to operate on over eighty per cent renewable energy and deploy waste heat recovery, zero liquid discharge, water recycling and advanced AI systems to optimise efficiency. Industries Minister TG Bharat, BC Welfare Minister S. Savitha and Jammalamadugu MLA C. Adinarayana Reddy attended the ceremony.