Technology

Direct delivery Beating labour pains

Published

11 years ago

September 30, 2014

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Cement manufacturing and distribution is an extensive network connecting suppliers, manufacturers, warehouses and retailers. Ineffective management of this network leads to poor productivity and material loss.

Logistics in cement industry typically involves bulk cargo handling, both in the inbound (sourcing) and outbound (distribution) side. Inbound logistics involves transporting limestone and other raw materials that do not involve any notable warehousing and value added activities, while outbound logistics involves systematic transportation and storage activities, apart from a few value added services. The product needs to be weather proofed in every stage of its distribution until it finally reaches the end-user. Ensuring its safety across the distribution chain is a major priority for the cement industry.

Cement companies spend about 3 per cent of the gross revenue on inward logistics, while outward logistics accounts for another bulk of 15 per cent. Inward logistics include coal and limestone transportation, while outward logistics is mostly the final product cement. Some companies also incur outbound logistics cost on transporting clinker to the grinding plants. Where plants are closer to the collieries, the inbound transportation cost is less.

The industry has worked a lot on reducing energy costs. Now, further cost competency by squeezing more on this front is difficult. So, the next level is to focus on logistics, as in India on a per tonne basis, the logistics costs are phenomenal. Currently, around 60 per cent of cement in India is transported using roads – the costliest of transportation modes at around Rs 1.5 per tonne per km. This roughly translates into an additional cost of about Rs 25 on a 50 kg bag of cement if transported 300 km from production units. Although railway is a cheaper option to move cement, most companies cannot avail this infrastructure as much as they need it. Lack of integrated rail connectivity from sourcing locations to plants and again from plants to last mile distribution points is the major issue faced by the industry. Currently, for every 50-kg bag of cement, the logistic cost comes to around Rs 12-15 by railways, depending on the distance. However, railways have other demands. Foodgrains and fertilisers have to be moved in a big way, and not just cement. The rail resource is under tremendous pressure.

On the other hand inland water transport is almost non-existent in the country. The sea route is the most cost-efficient as it costs just about 50 paisa per tonne per km – a third of the costs involved in roads. Today, 70 per cent of the cement movement worldwide is by sea compared to just 1-2 per cent in India. However, the scenario is changing with most of the big players like L&T, ACC and Grasim having set up their bulk terminals.

Cement is a high volume, low value commodity. Even at Rs 350 a bag, it is only Rs 7 a kg. The logistics cost may either equal or exceed manufacturing cost. Five to 10 years down the line, for many companies the distribution cost will be more than the manufacturing cost.

The industry is focusing on using more railway routes than roads, shrinking lead distance (distance between the manufacturing facility and market) and opting for sea-routes wherever possible, but these efforts are severely restricted by poor infrastructural support. Bad road conditions across the country (especially for the last mile distribution) are a major hurdle for the cement industry utilising road transportation. Rapid fuel price hike leading to frequent escalation of transport charges is another challenge. In addition, rising toll charges on highways is also adding to transportation costs for the industry.

Another technical challenge faced by cement manufacturers is monitoring a bulker or bowser carrying powder cement. Since tankers ferry cement – with a limited shelf life – directly to the construction site, it is important to ensure that the vehicle movement is monitored until timely delivery. Mining operations management too is a complex process. From ascertaining that mining activity is occurring within boundaries to ensuring effective transportation, mining companies have to manage these functions effectively.

The industry is now looking at improvements in packaging technologies, such as improved packing materials, vacuum sealed packing, automation in loading at plants, etc. Realisation of Dedicated Freight Corridors (DFCs) by the Indian Railways (expected to be operational by 2015-16) is also likely to shift a significant share of cement transportation from road to rail mode.

Technology

ARAPL Reports 175% EBITDA Growth, Expands Global Robotics Footprint

Affordable Robotic & Automation posts strong Q2 and H1 FY26 results driven by innovation and overseas orders

Published

3 weeks ago

October 15, 2025

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Affordable Robotic & Automation Limited (ARAPL), India’s first listed robotics firm and a pioneer in industrial automation and smart robotic solutions, has reported robust financial results for the second quarter and half year ended September 30, 2025.
The company achieved a 175 per cent year-on-year rise in standalone EBITDA and strong revenue growth across its automation and robotics segments. The Board of Directors approved the unaudited financial results on October 10, 2025.

Key Highlights – Q2 FY2026
• Strong momentum across core automation and robotics divisions
• Secured the first order for the Atlas AC2000, an autonomous truck loading and unloading forklift, from a leading US logistics player
• Rebranded its RaaS product line as Humro (Human + Robot), symbolising collaborative automation between people and machines
• Expanded its Humro range in global warehouse automation markets
• Continued investment in deep-tech innovations, including AI-based route optimisation, autonomy kits, vehicle controllers, and digital twins
Global Milestone: First Atlas AC2000 Order in the US

ARAPL’s US-based subsidiary, ARAPL RaaS (Humro), received its first order for the next-generation Atlas AC2000 autonomous forklift from a leading logistics company. Following successful prototype trials, the client placed an order for two robots valued at Rs 36 million under a three-year lease. The project opens opportunities for scaling up to 15–16 robots per site across 15 US warehouses within two years.
The product addresses an untapped market of 10 million loading docks across 21,000 warehouses in the US, positioning ARAPL for exponential growth.

Financial Performance – Q2 FY2026 (Standalone)
Net Revenue: Rs 25.7587 million, up 37 per cent quarter-on-quarter
EBITDA: Rs 5.9632 million, up 396 per cent QoQ
Profit Before Tax: Rs 4.3808 million, compared to a Rs 360.46 lakh loss in Q1
Profit After Tax: Rs 4.1854 lakh, representing 216 per cent QoQ growth
On a half-year basis, ARAPL reported a 175 per cent rise in EBITDA and returned to profitability with Rs 58.08 lakh PAT, highlighting strong operational efficiency and improved contribution from core businesses.
Consolidated Performance – Q2 FY2026
Net Revenue: Rs 29.566 million, up 57% QoQ
EBITDA: Rs 6.2608 million, up 418 per cent QoQ
Profit After Tax: Rs 4.5672 million, marking a 224 per cent QoQ improvement

Milind Padole, Managing Director, ARAPL said, “Our Q2 results reflect the success of our innovation-led growth strategy and the growing global confidence in ARAPL’s technology. The Atlas AC2000 order marks a defining milestone that validates our engineering strength and accelerates our global expansion. With a healthy order book and continued investment in AI and autonomous systems, ARAPL is positioned to lead the next phase of intelligent industrial transformation.”
Founded in 2005 and headquartered in Pune, Affordable Robotic & Automation Ltd (ARAPL) delivers turnkey robotic and automation solutions across automotive, general manufacturing, and government sectors. Its offerings include robotic welding, automated inspection, assembly automation, automated parking systems, and autonomous driverless forklifts.
ARAPL operates five advanced plants in Pune spanning 350,000 sq ft, supported by over 400 engineers in India and seven team members in the US. The company also maintains facilities in North Carolina and California, and service centres in Faridabad, Mumbai, and San Francisco.

Technology

M.E. Energy Bags Rs 490 Mn Order for Waste Heat Recovery Project

Second major EPC contract from Ferro Alloys sector strengthens company’s growth

Published

3 weeks ago

October 15, 2025

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M.E. Energy Pvt Ltd, a wholly owned subsidiary of Kilburn Engineering Ltd and a leading Indian engineering company specialising in energy recovery and cost reduction, has secured its second consecutive major order worth Rs 490 million in the Ferro Alloys sector. The order covers the Engineering, Procurement and Construction (EPC) of a 12 MW Waste Heat Recovery Based Power Plant (WHRPP).

This repeat order underscores the Ferro Alloys industry’s confidence in M.E. Energy’s expertise in delivering efficient and sustainable energy solutions for high-temperature process industries. The project aims to enhance energy efficiency and reduce carbon emissions by converting waste heat into clean power.

“Securing another project in the Ferro Alloys segment reinforces our strong technical credibility. It’s a proud moment as we continue helping our clients achieve sustainability and cost efficiency through innovative waste heat recovery systems,” said K. Vijaysanker Kartha, Managing Director, M.E. Energy Pvt Ltd.

“M.E. Energy’s expansion into sectors such as cement and ferro alloys is yielding solid results. We remain confident of sustained success as we deepen our presence in steel and carbon black industries. These achievements reaffirm our focus on innovation, technology, and energy efficiency,” added Amritanshu Khaitan, Director, Kilburn Engineering Ltd

With this latest order, M.E. Energy has already surpassed its total external order bookings from the previous financial year, recording Rs 138 crore so far in FY26. The company anticipates further growth in the second half, supported by a robust project pipeline and the rising adoption of waste heat recovery technologies across industries.

The development marks continued momentum towards FY27, strengthening M.E. Energy’s position as a leading player in industrial energy optimisation.

Technology

NTPC Green Energy Partners with Japan’s ENEOS for Green Fuel Exports

NGEL signs MoU with ENEOS to supply green methanol and hydrogen derivatives

Published

3 weeks ago

October 15, 2025

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NTPC Green Energy Limited (NGEL), a subsidiary of NTPC Limited, has signed a Memorandum of Understanding (MoU) with Japan’s ENEOS Corporation to explore a potential agreement for the supply of green methanol and hydrogen derivative products.

The MoU was exchanged on 10 October 2025 during the World Expo 2025 in Osaka, Japan. It marks a major step towards global collaboration in clean energy and decarbonisation.
The partnership centres on NGEL’s upcoming Green Hydrogen Hub at Pudimadaka in Andhra Pradesh. Spread across 1,200 acres, the integrated facility is being developed for large-scale green chemical production and exports.

By aligning ENEOS’s demand for hydrogen derivatives with NGEL’s renewable energy initiatives, the collaboration aims to accelerate low-carbon energy transitions. It also supports NGEL’s target of achieving a 60 GW renewable energy portfolio by 2032, reinforcing its commitment to India’s green energy ambitions and the global net-zero agenda.