Technology

The changing network dynamics

Published

5 years ago

October 14, 2021

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A sluggish economy, shrinking profit margins and fluctuating prices have put cement dealers and distributors in a tight spot. Fierce competition amongst cement companies to grab a bigger share of the market pie has resulted in innovative strategies such as product diversification and Direct Consumer Service initiatives which have its pros and cons. As the network dynamics is also changing fast dealers find the going getting tougher. ICR trains its spotlight on the rapidly changing network dynamics of the cement industry.

The cement industry has been growing well in the last decade. Unfortunately, the cost of manufacture and transport too, is on the rise. Compared to other industries, cement has the highest logistics cost as a percentage of sales. The cost of freight has been rising due to the increase in oil prices and last mile delivery too is a challenge in the whole supply chain. On the other side, fierce competition amongst cement companies to grab a bigger share of the market pie has resulted in innovative strategies. Most of the major players have over the years built up extensive network of dealers, distributors and to manage the last mile connectivity across their markets which helps to achieve higher capacity utilisation.

So how has the changing equation impacted the highly successful and decades old dealer and distributor network? Degala Ramesh, Managing Partner of Degala Veerabhadra Rao & Brothers elaborates, Â´The network dynamics are now changing since now most big companies are integrating more dealers and fewer distributors into their network. Earlier cement would be supplied by manufacturers to distributors, who in turn would forward it to dealers. Now major companies are selling cement through large number of dealers rather than few distributors. Only mini cement companies are appointing distributors in their network.Â´

Yuvresh Bansal, Proprietor, Jagdish Traders, throws light on some of the issues bothering cement dealers. Says Bansal, Â´In the cement industry, there are no distributors as such, the way we have in other industries like in the iron and steel bar supply chain. What we have is more like a Carry and Forward agent (C&F). So basically, C&F agents supply cement in large volumes to dealers like us and we then supply cement to the sub-dealers and retailers. That is how it is in theory at least but on the ground level, things are not that well defined. In this sluggish market, the defining lines between dealers and retailers are getting fuzzy. Now both dealers and retailers seem to be selling the same volumes to the same consumers. So what is the difference between the two? Earlier there was a logical flow to the market but now it seems to be a bit skewed. Dealers today no longer have the advantage of scale and volume as the demand is very low.Â´

Innovative moves
According to Lalit Agrawal, Business Development Manager, Goyal Agency selling a single brand in the shrinking cement market is tough. Diversification in brands and in products is the way to go forward. He says Â´Having multiple brands is better. Customers vary, their choices vary; they want options in brands and in cost. And we have to provide to those choices if we have to stay in the business. Those with a single brand in the bucket will find the business shrinking every year.Â´ Agrawal further adds that, Â´We are thinking of diversifying and we have now started our steel business along with cement. We are also exploring the construction sector.Â´

SaysRajesh Parwal, Proprietor, Bharat Traders, Â´As you know, cement demand has reduced significantly now. In such a scenario, the retailer must be able to survive and make profit. Diversification ensures that the business continues despite ups and downs.Â´

Says Anshay Sehgal, Proprietor, RN Sehgal, Â´ Lots of things have changed, especially in the recent past. Now cement is sold at FOR prices. Cement companies have become very aggressive in their sales and promotional efforts. New schemes are rampant in the market. They are trying their best to enticing dealers and masons. Even bigger places are not shying away from selling small quantities; some even supply it door to door.Â´

Impact of non-trade deals
Unlike in the past, some of the major manufacturers have started the DCS (Direct Consumer Service) initiative, where the consumers and manufacturers are connected directly, which in effect is side stepping the dealers. This increasing non-trade sale seems to have hit the dealers business and have tilted the equilibrium especially when cement companies have started taking order irrespective of the order size.

Says Rajesh Agarwal, President, Pune Stockists and Dealers Association, Â´One major area of concern is the volume of cement sold via non-trade transactions. Now, more and more companies are selling the material directly to the consumer at non-trade rates. This reduces our viability drastically. The company seems to have no discrimination in accepting the orders irrespective of the order size Earlier they would take orders directly if the quantity exceeded more than 250 tonnes, now they are picking up deals as low as of 25 tonnes. And that too, at the non-trade rates which are Rs 40 to 50 less per bag. How can dealers compete with them?Â´

He further adds, Â´Today, the trade market is fast vanishing. Earlier, it was 90 per cent trade and 10 per cent non-trade. Now, it is 70 per cent trade and 30 per cent non-trade. In cities like Mumbai, only five percent deals take place at trade rates, the rest is at non- trade rates. Pune too, is now on the same track.Â´

Ramesh supports the view. According to him one of the major challenges that dealers face is that the cement companies are bypassing distributors and dealers and supplying material directly to the contactors, which has a negative impact on their sales performance. Â´As production capacities are dropping and the market gets saturated with excess products, cement companies are trying to scoop orders by sidestepping dealers and distributors and then, offering discounts to contractors. This will affect the network in the long run,Â´ says Ramesh. Â´There has to be some agreed consensus on the volume that could be supplied directly. Earlier companies would dispatch cement directly to the consumer only if the volume exceeded 200 tonnes. This was fine with us since huge volumes are involved and major consumers would like to take advantage of discounts gathered by dealing directly with company. However, of late, companies have started selling volumes as low as 50 tonnes and that too, through direct billing.Â´ He further adds,Â´Our demand is that companies should leave at least the small volumes to us.Â´

Says Rajesh Parwal, Â´Some cement manufacturers have started the DCS (Direct Consumer Service) initiative; here the consumers and the manufacturer are connected directly. Dealers are not mediators in all the deals. However, bypassing dealers is also affecting the business. Yes, we had a dialogue with top cement manufacturers, requesting them to include us in their growth. We have suggested that the manufactures could sell directly to the consumer if the sales volume is more than 500 tonnes. For volumes below that, we must be included.Â´

Says Ashok Ku Patra, Proprietor, Srikant Agency, Â´Companies are selling cement through non -trade sales. The price gap between cement sold via trade sales and non-trade sales is very high, up to Rs 40 to 50 differences per bag. As a result, unauthorised shops are selling non trade cement at trade sales rate with a discount of Rs 10 to 15. This is giving a tough time to authorised shops and the dealers are losing in the market.Â´

Patra further adds, Â´We are facing several challenges on several fronts. TodayÂ´s market is the buyer`s market. Cement companies are promoting several sub-dealer shops in small areas. The market is getting more than saturated with small cement sellers. This is creating unnecessary competition.

The credit policy too, should be tweaked. While dealers like us are getting credit facility up to five days with a security amount, the sub- dealers are getting 10-15 days` credit facility without having to deposit any security. Sub-dealers are free from any worries of losing cash discounts.Â´

Rajkumar Modi, Proprietor, Vishesh Enterprises had this to say. Â´There is difference in trade and non-trade rates and there is lot of discussion in the market about it. The cost difference varies from brand to brand and also based on prevailing market conditions. The difference in top brands of cement will be around Rs 25, while other local brands may have a gap of around Rs 40 – 50 in their trade and non-trade price. Even the excise duty on the trade and non-trade cement varies, which adds to the cost difference.Â´ As the demand for infrastructure is growing, more contractors are moving towards RMC. Bansal adds Â´As a civil engineer, I have worked on a few RMC projects myself. In such projects, dealers, retailers, etc, are bypassed. As RMC requires cement to be poured in bulk, we cannot supply bagged cement to RMC contractors. Builders and contractors get in touch with the manufacturers directly and fulfill their requirements.Â´ According to him as the RMC industry grows, dealers will have a tougher time. He says, Â´I wonder what can be done to make dealers too, a part of this growth and ensure that the outcome is win-win for everybody.Â´

Says Sehgal Â´RMC is also impacting the market to a significant extent. It is mainly used by the builders. The end users and small consumers do not use RMC but the RMC market cannot be ignored now. At least 25 per cent of the market is covered by RMC.Â´ Modi sums up the story on a positive note. Surviving in todayÂ´s market is not that difficult if dealers come together and stay united. A systematic approach will help dealers tide over the tough time, says Modi. Â´We must adopt the cash and carry policy. If we are strict about our system and do not give material on credit, we will be able to come out of this. But for this, all dealers must come together and follow this strictly. Unfortunately, despite several attempts, we are not able to achieve strong unity amongst ourselves. This has to change.

Apart from this, one must also be careful about giving too much material on credit which can be detrimental to the business in today`s market.Â´

As Rajesh Agarwal puts it succinctly dealers must come together in order to be heard.

Economy & Market

Precision in Motion

Published

3 weeks ago

June 17, 2026

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A deep dive into Power Build’s core gear series products – M, C, F, K

At the heart of every high-performance industrial system lies the need for robust, reliable and efficient power transmission. Power Build answers this need with its flagship geared motor series: M, C, F and K. Each series is meticulously engineered to serve specific operational demands while maintaining the universal promise of durability, efficiency
and performance.

Series M – Helical Inline Geared Motors
Compact and powerful, the Series M delivers exceptional drive solutions for a broad range of applications. With power handling up to 160kW and torque capacity reaching 20,000 Nm, it is the trusted solution for industries requiring quiet operation, high efficiency, and space-saving design. Series M is available with multiple mounting and motor options, making it a versatile choice for manufacturers and OEMs globally.

Series C – Right Angled Heli-Worm Geared Motors
Combining the benefits of helical and worm gearing, the Series C is designed for right-angled power transmission. With gear ratios of up to 16,000:1 and torque capacities of up to 10,000 Nm, this series is optimal for applications demanding precision in compact spaces. Industries looking for a smooth, low-noise operation with maximum torque efficiency rely on Series C for dependable performance.

Series F – Parallel Shaft Mounted Geared Motors
Built for endurance in the most demanding environments, Series F is widely adopted in steel plants, hoists, cranes and heavy-duty conveyors. Offering torque up to 10,000 Nm and high gear ratios up to 20,000:1, this product features an integral torque arm and diverse output configurations to meet industry-specific challenges head-on.

Series K – Right Angle Helical Bevel Geared Motors
For industries seeking high efficiency and torque-heavy performance, Series K is the answer. This right-angled geared motor series delivers torque up to 50,000 Nm, making it a preferred choice in core infrastructure sectors such as cement, power, mining, and material handling. Its flexibility in mounting and broad motor options offer engineers freedom in design and reliability in execution.
Together, these four series reflect Power Build’s commitment to excellence in mechanical power transmission. From compact inline designs to robust right-angle drives, each geared motor is a result of decades of engineering innovation, customer-focused design and field-tested reliability. Whether the requirement is speed control, torque multiplication, or space efficiency, Radicon’s Series M, C, F and K stand as trusted powerhouses for global industries.

https://www.powerbuild.in
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Economy & Market

TSR Will Define Which Cement Companies Win India’s Net-Zero Race

Published

2 months ago

April 27, 2026

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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.

Concrete

Reimagining Logistics: Spatial AI and Digital Twins

Published

3 months ago

April 13, 2026

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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.