Economy & Market
Logistics Untapped potential
Published
7 years agoon
By
admin
There are many elements that can make "Make-in-India" thrive. A sound industrial policy is one of them, and logistics is certainly another. Right now, logistics costs in India are 13-14 per cent! How it can be brought down to 10 per cent or even below? ICR takes a look.
Logistics-moving goods and connecting producers with consumers-is a critical part of the modern economy. India’s logistics sector is highly defragmented and the aim is to reduce the logistics cost from the present 14 per cent of GDP to less than 10 per cent by 2022, according to an update from the Department of Commerce. India’s logistics sector is very complex with more than 20 government agencies, 40 partnering government agencies (PGAs), 37 export promotion councils, 500 certifications, 10,000 commodities, and 160 billion market size. It also involves 12 million employment base, 200 shipping agencies, 36 logistic services, 129 ICDs, 168 CFSs, 50 IT ecosystems and banks and insurance agencies. Further, 81 authorities and 500 certificates are required for EXIM.
India has been grappling with high logistics costs of 16-18 percent to start with making exports uncompetitive vis-a-vis China, which has lower logistic costs of 8-10 per cent, in the US and Europe it is 8-9 per cent while in Japan it is 11 per cent.
Completing the dedicated freight corridor (DFC) project will free up some of the existing railway network for passenger trains. As Procycon Mukherjee points out in his article, the existing rail network has been designed to move passengers and not freight. Therefore, it is need based to have such a kind of project DFC. Appropriate technology will be used to enable Indian railways to regain its market share of freight transport by creating additional capacity and guaranteeing efficient, reliable, safe and cheaper options for mobility to its users. This is one step in the direction of reducing logistic cost.
DFCs: Regaining market share
Currently, the Indian Railways has lost a significant portion of its goods business to the road sector and has hoped that it would be able regain market share once DFC is operational. Some of the positives of DFC, Indian Railways will run freight train at the maximum speed of 100 km/per hour against the current maximum speed of 75 kmph on tracks. The average speed of freight trains will also be increased from existing speed of 26 kmph on Indian Railways lines to 70 kmph on DFC.
The Dedicated Freight Corridor Corporation of India Limited (DFCCIL) is a public sector undertaking corporation run by the Government of India’s Ministry of Railways to undertake planning, development, and mobilisation of financial resources and construction, maintenance and operation of the DFCs. While the western DFC will cover 1,504 km from Jawaharlal Nehru Port Trust near Navi Mumbai to Dadri in Uttar Pradesh through Vadodara-Ahmedabad-Palanpur-Phulera-Rewari, the Eastern DFC covers 1,856 km from Ludhiana in Punjab to Dankuni, near Kolkata in West Bengal, and will traverse the states of Haryana, Uttar Pradesh, Bihar and Jharkhand. The Railways plan to complete more than 60-70 per cent of the work in the two corridors this financial year and make them fully operational by 2021.
The three new DFCs will cover 5,769 km. The preliminary engineering and traffic system study of these corridors has already been completed. After the cabinet approval, DFCCIL-a special purpose vehicle set up in 2006 under the railways ministry?will undertake a detailed project planning including plans for land acquisition. While the East-West Corridor (2,328km) will be built between Kolkata and Mumbai, the North-South Corridor (2,327 km) is planned between Delhi and Chennai and the East Coast Corridor (1,114 km) between Kharagpur and Vijaywada.
Inland waterways: Untapped potential
India is blessed with 7,551 km of coastline and about 14,500 km of navigable inland waterways. Yet this sector has remained neglected despite universal acceptance that transportation through waterways, both coastal and inland, is fuel efficient, environment friendly and more economical than rail and road. Of the navigable inland waterways, 4,503 km are national waterways, the development and maintenance of which is the responsibility of the Indian government and the remaining portion is with state governments.
Using waterways for transporting people and goods is nothing new for India. Until about 100 years ago, the Ganga River was a busy waterway that was used for the movement of commodities such as tea, jute, and spices. But with the coming of the railways, this watercourse fell into disuse. At present, according to a World Bank report, India’s freight movement traverses mainly on roads (65 per cent). Railways come next (27 per cent); waterways account for just (0.5 per cent) of the movement. The freight movement on waterways across countries is also much higher in the West and China than in India: In the US, it’s about 8.3 per cent; in Europe 7 per cent; and in China it is 8.7 per cent. There are several reasons why the Centre is so enthusiastic about the waterways project. According to the World Bank, which is financing the National Waterway Project, the cost to transport one tonne of freight over one km for highways is Rs 2.28. It is Rs 1.41 for railways and Rs 1.19 for waterways. Second, its greener means less polluting.
"As per RITES Report of 2014 on "Integrated National Waterways Transportation Grid", one litre of fuel moves 24 tonne km by road, 95 tonne km on rail and 215 tonne km on inland water transport. Third, ferrying goods via waterways is faster than on congested road and rail networks, which slows the movement of cargo, adding to uncertainties, and increasing the costs of trade. Fourth is the pollution cost of traffic bottlenecks.
While there are several positives of the waterways project, any infrastructure development will have environmental costs, and those must be taken into account while evaluating the benefits of the project. This is because while the main infrastructure [waterway] is naturally available in this case, it needs to be "trained, maintained and upgraded" to ensure that the movement of cargo carriers is possible.
One important aspect of this "training" a waterway is dredging, which is required to ensure that the required water depth is maintained everywhere for the goods carriers to pass.
India has six national waterways: the Allahabad-Haldia stretch of the Ganga river (running through Uttar Pradesh and West Bengal); the Dhubri-Sadiya stretch of the Brahmaputra (Assam); the Kottappuram-Kollam stretch of the West Coast canal along with the Udyogamandal and Champakkara canals (Kerala); the Kakinada-Puducherry stretch along with the designated stretches of the Godavari and Krishna rivers (Andhra Pradesh, Puducherry); the designated stretches of the East Coast canal, the Brahmani river and the Mahanadi delta (Odisha); and the Lakhipur-Bhanga stretch of the Barak river (southern Assam). Ships that can travel freely through sea and river channels were first freed from a few provisions of the Merchant Shipping Act in 2011. Incidentally Merchant Shipping Act regulates the movement of ships in the river and in sea. This relaxation is now being significantly expanded to cover more ships. The changes in the Act on river-sea vessels were aimed at reducing the costs of constructing and operating vessels to encourage coastal shipping, inland water transport and trade. It was also designed to encourage the upgradation of existing inland vessels for coastal operations.
A seamless integration of river-sea trade using coastal ships is expected to provide an alternative means of quick discharge and dispersal of cargo from mother ships docking at big ports and their onward movement by sea to various smaller ports along the coast as well as inland locations. As ships built under the river-sea vessel regulations require very little depth to dock, they can load and unload cargo at smaller ports, which is not possible for bigger ships.
The Sagarmala programme is an initiative by the Ministry of Shipping to promote port-led development in the country through harnessing India’s 7,500 km long coastline, 14,500 km of potentially navigable waterways and strategic location on key international maritime trade routes. Sagarmala’s vision can have a potentially transformative impact on India’s logistics competitiveness and the wider economy.
Road transport and hurdles
There has been a significant increase in the commercial vehicles on the road in the recent times. Increase in commercial vehicles is a reflection of increasing demand for the movement of goods. According to surveys by the Indian Foundation of Transport Research and Training, one in every three trucks in the country is overloaded and they are to blame for 50 per cent of road accidents. In 2011, overloaded trucks accounted for 20 per cent of road accidents and in 2013, around 38,370 people were killed because of these overloaded vehicles.
Most trucks are found overloaded by 25-50 per cent. Senior fellow and coordinator of the Indian Foundation of Transport Research and Training (IFTRT), SP Singh, said: "When a truck is overloaded by 10 per cent, it’s steering and brake control is reduced by 50 and 40 per cent, respectively. Overloading also reduces the productive life of the road by 80 per cent and the productive life of the truck by 30 per cent."
But small-time operators and middlemen who run the majority of the country’s trucks consider overloading a necessary evil. Part of the problem is the industry’s skewed ownership pattern that makes accountability difficult. The problem lay in the lack of implementation of the Motor Vehicles Act. As an example, Singh mentioned the over 260 computerised weighbridges which has not stopped trucks in the capital from getting overloaded.
Around 5,000 cargo operators control the freight movement and only in about 2-3 per cent of the cases do customers access the truck owners directly to book for their goods. S Sriram, the professor of Transport Economics at Mumbai University, attributed the ownership structure to low capital requirements, easily available truck driving licenses, and easy availability of freight. He said the operators regularly loaded their trucks beyond the permissible axle load to maximise each vehicle’s earnings and the consignors of bulk commodities, like fertilisers, steel and cement, overloaded the vehicles in order to get freight service.
It’s a fact that when a truck is overloaded, the control on the steering and brake are reduced. In addition, frequent overloading reduces the productive life of the truck as well as the life of the road. In order to reduce the overloading of trucks and accidents, the Government has taken some major steps. For instance, a high penalty has been proposed in the Road Transport and Safety Bill for those who fail to comply with the new rules, with a suspension of permits for one month upon the first offense and a cancellation of permits if the offense is repeated. But these measurements are not enough to solve the problem as the truck owners or operators are still continuing to load their trucks beyond the permissible axle load to maximise each vehicle’s earnings.
Similarly, the consignors of bulk commodities like fertilizers, steel, and cement, overload the vehicles in order to save on the freight cost. Considering the trip economics, they are willing to pay higher prices to enter the city. In fact, there are a few states that have almost legalised overloading by issuing formal permits; illicit payments mostly clear the way for the vehicles. While there are weighing stations on the highways, it is surprising that many states or cities in India don’t even have check-posts to stop overloaded trucks from entering into the city or a dedicate area such as bridges. So, it appears that the main solution to overloading may lie in the proper implementation and enforcement of the Motor Vehicles Act.
In order to curb overloading, government or transport officers should more aggressively follow the Motor Vehicles Act and take strict actions against the rules violators. With such enforcement of the regulation, we can expect to see lower accidents, a lesser number of casualties and less damage on the Indian roads. All these will lead to higher productivity of the transport companies and that of the logistics sector.
Another problem which is often encountered by the truck operators is so called local truck owners not allowing "outside" truck operators to load consignment at few locations where local truck associations are very strong and classify themselves as local v/s outside. This results in the returning the truck empty after unloading the goods. It leads to waste of fuel and increase in transport cost. Turnaround time of truck is another pain point for easy truck movement. Normally at any factory gate you will find number of trucks parked in hundreds waiting to receive their load. Many factories call the trucks on ad-hoc basis, whereas very few have a system of first in and first out. Use of technology will only improve the scene.
After introduction of GST, crossing the border of a state has become little easy, yet at many places authorities still insist on paper documents creating stoppages to make quick money. Ministry can think of creating flying squads to arrest such harassments.
Rivigo experiment
India needs one million new truck drivers every year for the next 10 years to support the ecosystem and achieve our GDP growth aspiration. It is estimated that India will have 480 drivers for every 1,000 trucks on the road by 2022. The problem is not in the truck driver’s income or skill gaps but is deep-rooted in his terrible lifestyle away from his family. Long periods of absence leading to social disrespect, stigma and a risk perception of the job which makes their families push them to quit their job. Truck drivers play a vital role in freight transportation industry but unfortunately, drivers don’t get their fair share of economic growth. At Rivigo, a start up logistic company is working relentlessly to build a system that strives to improve their socio-economic conditions through couple of measures. It follows relay models that helps over 95 per cent of the pilots (drivers) get back home every day and spend quality time with their families. Rivigo has been an innovator and trend setter in logistics.
This supply demand gap has put pressure on the logistics companies. Every transporter or logistics company cites recruitment and retention of truck drivers as the biggest growth inhibitor for them. This has been also being highlighted in the draft National Logistics Policy council in their latest report.
Relay trucking model
The solution to curb the unprecedented shortage of truck drivers in India is clear -to make truck driving a regular day job using relay trucking. Relay trucking is an operating model innovation where drivers change over after every few hundred kilometres of driving through a network of change-over stops called "relay pit-stops" and then get rostered back to their home base to return to their families every single day. Relay Trucking is better service, more efficient and "Human."
Rivigo has been transforming the sector with their global-first driver relay model and cutting-edge technology to consistently provide unparalleled delivery times and reliability to clients. They are solving the challenges of the logistics industry using technology – be it problems like fuel analytics, route planning, human behaviour analysis or pure-drudgery elimination tasks like auto-alert systems and intelligent decision systems. Their technology obsession has resulted in simple, intuitive technology products gaining quick and easy adoption by the trucking ecosystem stakeholders.
Post demonetisation of high value currency, the logistics industry is grappling with cash shortage which has affected fleet operations across the nation and has crippled the Indian highways. Fleet owners have come to a bottleneck and cash shortage is threatening delivery of goods to consumers and businesses. 90 per cent of trucking spend and 40-50 per cent of the non-trucking logistics spend is rendered in cash.
About 85 per cent of the fleet owners who own less than five trucks spend hard cash towards diesel purchase, which comprises 45-50 per cent of the cost of trucking. Toll charges, which amount to 10-15 per cent of trucking cost and other overheads such as driver wages and vehicle maintenance, are also disbursed in cash. Only EMIs and replacement capex including tyre-related expenses are done to an extent through digital modes such as bank transfers and cheque payments. Overall, road logistics cash spend is estimated to be $100 to $110 billion or Rs 650,000 to 750,000 crore which would easily add up to 40 per cent of the cash in circulation in our economy. This is assuming the multiplier effect of currency that applies both ways, that is, the drivers who now get paid through digital modes will largely continue to spend through digital modes (also enabled by the current push towards cashless economy) Operations in the trucking sector can be made entirely cashless through the use of E-POD to get direct payment transfers from customers, automated bank transfers with the breakthrough same day settlement for brokers, integrated payment solutions with fuel companies for dealer payments and toll payments can be achieved through NHAI initiative on FASTag through RFID tags and wallet solutions. Also, fleet owners can remunerate truck driver wages, reimbursements and incentive payments directly through the Jandhan accounts.
Apart from digitisation and faster turnaround of trucks, cashless trucking economy will bring significant second order benefits. It will ensure less inefficacy owing to proper accounting of cash-related wastages (fuel, toll payments), eliminating instances of kerosene mixing by drivers and poor quality roads" usage to avoid toll cash, which also directly leads to the poor health of the fleet and poses a safety hazard. On the other hand, drivers will face less harassment from RTO and sales tax officers on highways and check posts. It will also improve road safety and adherence to regulations as it is a level playing field for non-compliant and compliant fleet owners, ending overloading and violation of safety norms. Truck drivers, loaders and all the large skill pools can be brought into the mainstream economy and will qualify for loans from financial institutions. Furthermore, it will also ensure employers and contractors pay minimum wages to workers in this sector. Lack of in-hand cash will reduce instances of substance abuse (including alcohol) and negatively impact the commercial sex worker trade on the highways which often leads to contraction of HIV amongst truck drivers.
There is short term pain to the sector due to lack of cash but in the long term, it can turn around the sector completely by making it efficient and safer and contribute significantly in making India cashless.
Now coming to cement specific, where subject is little different. In cement around 30 per cent cost is incurred on logistics, which is substantially higher than the general industry norms. There is enough scope to bring it down and companies like Shree Cement are setting an example. Cement plants need to make extensive use of technology to bring down the cost. In many places cement plant uses a mixed model of railways and road for dispatch of cement but there are few locations like Gagal (Burmana) where only road movement is possible since rail head is absent. Many of the hurdles explained above are quite pronounced in cement industry and need to be tackled on war footing. Taking advantage of present economic slowdown, there can’t be better time to undertake such initiatives.
– VIKAS DAMLE
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The future of India’s roads took centrestage at RAHSTA Expo 2026, where policymakers, contractors and industry leaders came together under one roof. The event blended thought leadership, technology showcase and industry recognition into a single powerful platform.
India’s roads and highways community gathered in full strength at the Jio World Convention Centre, Mumbai, for the 16th edition of the RAHSTA Expo (Roads and Highways Sustainable Technologies & Advancement). Over two action-packed days, the event brought together policymakers, contractors, consultants, developers, equipment manufacturers, material suppliers, technology providers and investors to deliberate on the future of India’s ,infrastructure while showcasing the latest innovations driving the sector.
The event culminated in the prestigious RAHSTA Awards, where Shri. Ajay Tamta, Union Minister of State for Road Transport & Highways, felicitated organisations and professionals for their outstanding contributions to road construction, engineering, safety, sustainability and technology. With leading contractors, senior government officials, industry veterans and technology providers under one roof, the event reaffirmed RAHSTA’s position as one of India’s most influential platforms for the roads, highways, bridges and tunnels ecosystem.
Organised by FIRST Construction Council in association with ASAPP Info Global Group, RAHSTA has steadily evolved beyond an exhibition into a platform where policy, technology, engineering and business converge to address the opportunities and challenges shaping India’s next generation of transport infrastructure.
Beyond expansion, towards value
The conference opened with a thought-provoking address by Pratap Padode, Founder and Editor-in-Chief, Construction World, who observed that India’s highways sector has reached an important inflection point. Introducing this year’s theme – ‘From Expansion to Value: The Next Phase of India’s Highways’ – he noted that while the country has successfully expanded its road network over the past two decades, the industry’s priorities are now shifting towards building infrastructure that delivers greater lifecycle value, durability, safety and operational efficiency. With funding pressures, asset monetisation and evolving project models changing the sector’s dynamics, he said the focus must now move beyond kilometres constructed to the quality and long-term performance of every asset.
Dr Brijesh Dixit, Managing Director, Maharashtra State Infrastructure Development Corporation (MSIDC), reminded delegates that successful infrastructure delivery is ultimately a collective effort. Emphasising on collaboration between government, industry and engineering professionals, he remarked, “There is no loser in a winning team, and there is no winner in a losing team,” urging stakeholders to work together to deliver projects with quality, financial sustainability and technological excellence.
Delivering the keynote address, Bidur Kant Jha, Director, New Technologies for Highway Development, Ministry of Road Transport & Highways (MoRTH), outlined the Government’s long-term vision for India’s highway network. Highlighting the country’s 6.26 million km roads network, he spoke about the growing adoption of digital planning tools such as BIM and GIS, bridge health monitoring systems and Integrated Smart Transport Corridors under the Vision 2047 roadmap. He emphasised that while India remains open to global innovations, every new technology must be adapted to Indian conditions before large-scale deployment.
Addressing the gathering during the awards ceremony, Tamta underlined the increasing role of specialised equipment and modern construction technologies in executing complex infrastructure projects across diverse terrains. Referring to challenging tunnel projects in Uttarakhand, he noted how advanced machinery has transformed execution capabilities, while also acknowledging the rapid evolution of Indian contractors into globally competitive infrastructure companies. Recognising excellence through industry awards, he said, motivates organisations to continually raise performance standards and embrace innovation.
Meanwhile, Dr Sanjay Mukherjee, IAS, Metropolitan Commissioner, MMRDA, highlighted that infrastructure development must increasingly focus on integrated urban mobility. Reflecting on Mumbai’s engineering journey – from its historic underground utility network to the Coastal Road and other transformative projects – he underlined that future infrastructure planning must seamlessly integrate roads, metro systems and public transport to create efficient, multimodal cities.
Uttar Pradesh takes centrestage
One of the highlights of the second day was Uttar Pradesh’s comprehensive presentation on its infrastructure-led industrial transformation.
Srihari Pratap Shahi, IAS, Additional CEO, Uttar Pradesh Expressways Industrial Development Authority (UPEIDA), demonstrated how the state’s expanding expressway network is evolving into a catalyst for industrial development through integrated manufacturing and logistics clusters. Expressways, he noted, are no longer merely transport corridors but engines of economic competitiveness.
Building on this narrative, Deeksha Jain, IAS, Additional Chief Executive Officer, Uttar Pradesh State Industrial Development Authority (UPSIDA), showcased the state’s rapidly expanding industrial ecosystem supported by extensive expressway connectivity, dedicated freight corridors, airports, industrial townships and investor-friendly policies. She highlighted Uttar Pradesh’s strong manufacturing growth, expanding industrial land bank, plug-and-play infrastructure and increasing use of digital governance to facilitate investments.
Further underlining the significance of the platform, Deepak Kumar, IAS, Infrastructure & Industrial Development Commissioner, Government of Uttar Pradesh, remarked, “RAHSTA provides an excellent platform for states to showcase our infrastructure progress and investment ecosystem. Uttar Pradesh has transformed significantly over the past decade, backed by more than 34 investor-friendly industrial policies, and platforms like RAHSTA help communicate these developments to industry stakeholders from across the country.”
Ideas that shaped the industry conversation
The two-day conference featured seven panel discussions, each examining a critical dimension of India’s evolving roads and highways sector.
The opening discussion on ‘Financing Roads & Highways in a Capital-Constrained Era’ brought together experts from Cube Highways, NIIF, SBI Capital Markets, Centrum Capital and Bandhan Infra Fund, who examined how the financing landscape is changing. Discussions revolved around asset monetisation, InvITs, institutional investments and new funding structures, with panellists agreeing that better project preparation, transparent governance and predictable returns will be crucial for attracting long-term capital into infrastructure.
Attention then shifted to execution realities during the panel on ‘Contractors’ Perspective: Execution Realities, Risks & the Quality Imperative.’ Representatives from GHV Infra Projects, PNC Infratech, NCC and Maccaferri candidly discussed the challenges of delivering projects amid contractual complexities, land acquisition delays, rising costs and tight timelines. While execution pressures remain significant, the discussion reinforced that better collaboration across the project value chain is essential for achieving both speed and quality.
Day 2 opened with a technically rich discussion on ‘Designing Roads for Sustainability, Durability & Climate Resilience’. Experts from CSIR-CRRI, IIT Bombay, IIT Madras, Zydex Group and SRMB Steel explored advanced pavement technologies, recycled materials, climate-resilient designs and scientific construction practices that can significantly improve durability while lowering lifecycle costs. Sustainability, they agreed, must become an integral part of road design rather than an afterthought.
The subsequent session on ‘Bridges & Tunnels: Complex Engineering, Safety & Future Readiness’ highlighted the growing complexity of India’s infrastructure projects. Panellists discussed advances in structural engineering, digital monitoring, risk management and safety practices that are enabling the successful delivery of increasingly ambitious bridge and tunnel projects across the country.
Technology remained a recurring theme during the discussion on ‘Technology as a Risk-Mitigation Tool for Developers & Investors’. Experts explained how AI, BIM, drones, predictive analytics, digital twins and intelligent monitoring systems are helping improve project planning, minimise execution risks, strengthen quality assurance and enhance asset management throughout the infrastructure lifecycle.
The construction equipment panel brought together leading industry experts to examine how technology, sustainability and digitalisation are redefining construction equipment in an era of rising cost pressures. Discussions centred on enhancing productivity, reducing lifecycle costs and preparing the industry for India’s infrastructure ambitions leading up to 2047.
The conference concluded with an engaging CXO Forum on ‘Rebuilding Confidence in India’s Roads & Highways Sector’, where senior industry leaders emphasised that stronger governance, better project preparation, digitalisation, transparent contracting and closer public-private collaboration will be essential to sustain India’s infrastructure growth over the coming decades.
Technology and recognition under one roof
Beyond the conference halls, RAHSTA Expo reflected the technological transformation underway across India’s road infrastructure ecosystem. Leading equipment manufacturers, technology companies and material suppliers showcased advanced construction equipment, intelligent digital platforms, pavement technologies, structural materials and productivity-enhancing solutions designed to improve project efficiency and asset performance. The exhibition created valuable opportunities for contractors, consultants, government agencies and project developers to evaluate new technologies while interacting directly with solution providers.
The event also served as a celebration of excellence through the RAHSTA Awards 2026, which recognised outstanding achievements across road construction, contracting, materials, equipment, technology, safety, sustainability and infrastructure development. Presented by Minister Tamta, the awards honoured organisations that are setting new benchmarks for quality, innovation and execution across India’s roads sector.
RAHSTA Expo 2026 also received extensive support from across the infrastructure ecosystem. Alongside leading corporate sponsors, the event was backed by industry bodies including the Builders Association of India (BAI), Construction Equipment Rental Association (CERA), Consulting Engineers Association of India (CEAI), International Road Federation (IRF), CSIR-CRRI, CILT India, All India Transporters Welfare Association, Hydraulic Trailer Owners Association (HTOA), Gujarat Contractors Association, Bitumen Forum, Fluid Power Society of India, Indian Institute of Material Management, Ministry of Ports, Shipping and Waterways, Gati Shakti Vishwavidyalaya and Mumbai First, reflecting the industry’s collective commitment to advancing India’s road infrastructure.
As the curtains came down on the two-day event, one message resonated throughout the conference: India’s highways story is entering a new chapter. While expansion will continue, the future will increasingly be defined by smarter planning, stronger partnerships, digital transformation, sustainable engineering and long-term value creation. By bringing together the entire infrastructure value chain on a single platform, RAHSTA Expo 2026 once again demonstrated why it has become one of the country’s most influential forums for shaping the future of roads, highways, bridges and tunnels.
Economy & Market
Fornnax Names Lukas Baur as Authorised Service Partner to Bolster EU Operations
Published
4 weeks agoon
July 23, 2026By
admin
Strapline: Fornnax Technology has appointed NOBA Maschinenservice’s Lukas Baur as its authorised service partner for the European Union, strengthening its commitment to delivering fast, reliable, and localised after-sales support across the region.
Fornnax Technology, a leading manufacturer of industrial shredding solutions, has announced the appointment of Mr. Lukas Baur of NOBA Maschinenservice as its authorised service partner for the European Union. The partnership, formalised under the authorisation of Fornnax CEO Mr. Jignesh Kundaria, reinforces the company’s commitment to providing dependable, localised service support to its expanding customer base across Europe.
Strengthening Service Through Proven Expertise
With over two decades of experience in servicing, maintaining, and overhauling industrial shredders, Mr. Baur brings extensive technical expertise to the partnership. His capabilities span welding, hardfacing, shaft and knife rebuilding, complex assembly, hydraulics, and complete electrical engineering services, delivered in collaboration with a trusted partner company based in Halle/Saale.
Operating from Worbis, Germany, Mr. Baur is strategically positioned to provide emergency support across the European Union within 24 hours, covering an operational radius of approximately 1,000 kilometres.
Supporting this capability is a well-equipped service infrastructure comprising 12 Mercedes Sprinter service vans, a team of 24 skilled technicians, specialised bearing-change tools, a fully equipped hydraulic workshop, and a 1,000-square-metre facility with a five-ton crane track. Together, these resources position his team to manage the complete spectrum of Fornnax’s European service requirements efficiently and reliably.
Partnership Driven by Industry Insight
Having spent years servicing Eldan, Lindner, and Vecoplan shredders across the European recycling industry, Mr. Baur’s decision to collaborate with Fornnax is rooted in his understanding of market needs and customer expectations. His experience has provided valuable insight into what recycling plant operators require—not only from their machinery but also from the service teams supporting them.
According to Mr. Baur, Fornnax’s reputation for robust machine construction, superior wear protection, and maintenance-friendly design made the partnership a natural fit.
The collaboration comes at a time when Europe’s tyre recycling industry is facing mounting challenges, including rising cost pressures, shrinking margins, delayed investments, and a shortage of skilled labour. Mr. Baur believes these conditions reinforce the need for technically strong service partners capable of delivering rapid, dependable support.
Commenting on the partnership, he said, “Fornnax, with its exceptional price-performance ratio and superior quality, has the potential to become a market leader in Europe. We would like to be their service partner in this journey.”
Comprehensive Support Across the Equipment Lifecycle
As Fornnax’s authorised service partner, Mr. Baur will oversee the complete lifecycle support of the company’s equipment throughout the European Union. His responsibilities will include installation, commissioning, preventive maintenance, emergency repairs, and spare parts support across mechanical, hydraulic, and electrical systems.
Looking ahead, he also plans to develop a centralised spare parts distribution hub for European customers, particularly if Fornnax establishes a warehouse facility in Worbis to facilitate faster deliveries. To further strengthen service coverage, Mr. Baur intends to expand operations by adding two to three additional service teams and vehicles each year, progressively increasing capacity across the continent.
A Shared Commitment to Customer Excellence
Highlighting the strategic importance of the partnership, Mr. Jignesh Kundaria, Director and CEO of Fornnax, said:
“We strongly believe that by continuously improving our service quality and customer satisfaction index, we can build long-term relationships with our customers. Higher customer satisfaction leads to greater trust, which significantly increases repeat orders and ultimately drives sustained growth in our sales revenue.”
This customer-first philosophy underpins Fornnax’s strategy of building a dedicated European service partner network instead of relying solely on remote support. With Mr. Baur joining this network, customers across the European Union will benefit from faster response times, expert technical assistance, and dedicated on-ground support from a partner with extensive experience in high-throughput shredding operations.
Mr. Baur’s appointment also reflects Fornnax’s broader ambition to establish itself as the preferred shredding solutions provider for the European recycling industry, marking another important milestone in the company’s international growth strategy.
From LC3 and AI-driven kilns to RDF gasification, ICR explores the full breadth of technological innovation reshaping India’s cement industry. Low-carbon materials, digital manufacturing, alternative fuels and breakthrough concrete science are collectively advancing the sector’s transition from high-emission commodity producer toward a net-zero, infrastructure-ready future.
Innovation has become the defining force shaping the future of the cement industry. As the world’s second-largest cement producer, India is witnessing rising demand driven by infrastructure development, urbanisation, affordable housing, and industrial growth. At the same time, the International Energy Agency (IEA) estimates that cement production accounts for nearly 7 per cent to 8 per cent of global CO2 emissions, with clinker manufacturing contributing the largest share, making innovation an operational necessity. The industry is therefore investing heavily in low-carbon cement technologies, artificial intelligence (AI), digital manufacturing, alternative fuels, renewable energy and carbon capture, utilisation and storage (CCUS). Innovations such as limestone calcined
clay cement (LC3), supplementary cementitious materials (SCMs), AI-driven process optimisation and automated quality control are enabling manufacturers to produce more sustainable, efficient, and high-performance cement.
According to the Global Cement and Concrete Association (GCCA), achieving net-zero emissions will require a combination of material innovation, digital transformation, circular economy practices and collaborative research, making innovation central to the industry’s long-term competitiveness and India’s sustainable infrastructure growth.
Next-generation cement
The future of cement lies in reducing its dependence on clinker-the most carbon-intensive component of cement-through the adoption of low-carbon materials and advanced blended cement technologies. Products such as Portland Pozzolana Cement (PPC), Portland Slag Cement (PSC), Portland Composite Cement (PCC), and LC3 are driving this shift by replacing clinker with SCMs like fly ash, GGBS, calcined clay and limestone.
According to GCCA, SCMs can replace 30 to 50 per cent of clinker, with some applications exceeding 70 per cent, significantly reducing carbon emissions without compromising strength or durability. These blended cements also improve concrete performance by enhancing durability, reducing permeability, and increasing resistance to chloride and sulphate attacks. As the availability of traditional SCMs declines with the decarbonisation of the power and steel sectors, the industry is increasingly exploring alternative materials and next-generation cement formulations to support long-term sustainability.
Shrivats Singhania, Deputy Managing Director, JK Lakshmi Cement, says, “Innovation is enabling the cement industry to address one of its most important challenges – producing more with fewer resources and lower emissions. Across the value chain, manufacturers are deploying technologies that simultaneously improve operational efficiency and advance sustainability goals. For example, greater adoption of alternative fuels, waste heat recovery systems, renewable energy, and digital process controls is helping reduce energy consumption and optimise resource utilisation. Data-driven manufacturing allows plants to monitor operations in real time, improve equipment reliability, minimise downtime, and reduce wastage, resulting in both environmental and economic benefits.”
“Meaningful progress is also being achieved through material innovation. The growing use of blended cements and next-generation products such as LC3 reduces dependence on clinker, the most carbon-intensive component of cement production, thereby lowering embodied carbon without compromising performance,” he adds.
Among emerging technologies, LC3 has gained global recognition as one of the most promising low-carbon cement innovations. In a standard formulation, LC3 comprises approximately 50 per cent clinker, 30 per cent calcined clay, 15 per cent limestone, and 5 per cent gypsum. LC3 can reduce CO2 emissions by up to 40 per cent compared with Ordinary Portland Cement (OPC) while delivering comparable strength and enhanced durability. Its reliance on abundant, locally available raw materials, rather than industrial by-products, makes it highly scalable and well suited to countries like India.
According to the LC3 Project, nearly 75 per cent of cement plants worldwide could adopt LC3 using existing manufacturing infrastructure, potentially reducing global CO2 emissions by over 400 million tonnes annually, if adopted at scale globally. India’s introduction of BIS standard IS 18189:2023 for LC3, coupled with its adoption in projects such as the Noida International Airport, marks a step toward commercial implementation. As demand for sustainable construction grows, LC3 is poised to become a cornerstone of low-carbon infrastructure development.
Making of a smart cement plant
The modern cement plant is rapidly evolving into a digitally connected, AI-enabled manufacturing ecosystem where data drives every aspect of production – from raw material proportioning and kiln operations to quality control, maintenance and energy management.
According to IEA, digital technologies can improve energy efficiency in heavy industries by 10 per cent to 20 per cent. Advanced process control systems in cement plants have demonstrated the potential to reduce thermal energy consumption by 3 to 5 per cent, lower electricity consumption by 2 to 10 per cent, and improve kiln throughput and clinker quality. AI-powered predictive maintenance further helps reduce unplanned equipment downtime by 30 to 50 per cent and extend equipment life by continuously analysing sensor data to detect failures before
they occur.
Jignesh Kundaria, Director and CEO, Fornnax Technology, says, “AFR is no longer viewed solely as a sustainability initiative. It has become a strategic business priority for cement manufacturers. Rising fuel costs, stricter environmental regulations, and growing pressure to reduce dependence on conventional fuels are accelerating AFR adoption across the industry. However, the success of an AFR project depends heavily on how effectively waste is processed before it reaches the kiln. Poor preprocessing can negatively impact kiln performance, fuel efficiency, and emission control systems. Inconsistent fuel
quality often forces operators to make frequent adjustments, reducing throughput and increasing energy consumption.”
Dr Kapil Kukreja, General Manager, NCCBM, says, “Variations in composition, particle size, and calorific value can lead to inconsistent combustion behaviour resulting in fluctuating heat release patterns. These fluctuations can affect process stability, temperature control and clinker quality. Additionally, incomplete combustion of RDF particles can result in increased emissions, higher unburnt carbon content, and operational difficulties within the calciner system. Higher ash and inert content of RDF can dilute the clinker quality and reduce calciner efficiency.”
Meanwhile, digital twins are allowing manufacturers to simulate entire production processes, optimise kiln performance, evaluate process changes virtually, and reduce operational risks before implementation. Automated Laboratory Information Management Systems (LIMS), coupled with online and offline XRF and XRD analysers, are delivering real-time monitoring of clinker chemistry and mineralogy, ensuring tighter quality control, lower clinker variability and more consistent cement performance.
Dr Prateek Sharma, Group Project Manager, NCCBM, explains, “Chlorides and alkalis present in RDF can lead to excess buildup and blockages in the kiln and calciner increasing the downtime of cement plants. Hence, issues with direct utilisation of RDF establishes the need for fuel conditioning and alternative utilisation approaches that can maximise the energy potential of RDF while minimising adverse impacts on plant operation. RDF gasification emerges as an efficient tool for converting solid RDF into syngas which can be used as a fuel with improved characteristics.”
Digitalisation and intelligent manufacturing will be among the most critical enablers of achieving the cement industry’s net-zero ambitions by improving operational efficiency while simultaneously reducing energy consumption and greenhouse gas emissions, confirms a GCCA report.
From research to reality
While the cement industry has made remarkable progress in developing breakthrough technologies, the transition from laboratory research to large-scale commercial deployment remains one of its greatest challenges. The successful adoption of innovations such as LC3), CCUS, advanced alternative fuels, green hydrogen and novel SCMs depend not only on technical feasibility but also on economic viability, regulatory support, raw material availability, and market acceptance.
Veerendra Jamdade, CEO and Founder, Vritti Solutions, states, “The cement industry has a market that is constantly in flux, due to factors such as infrastructure investment, seasonality of demand, fuel costs, building activity by region and general economic cycles; therefore, having accurate forecasts is very important in this type of market. Traditional ERP systems are primarily data repositories with limited analytic functionality; thus, they capture transactional and operational information but generally lack advanced analytical capabilities for converting captured data into actionable information. This
affects everything from demand forecasting and inventory planning through procurement and production scheduling.”
According to IEA, technologies that are still at the demonstration or early commercial stage-including CCUS and next-generation low-carbon binders-are expected to contribute nearly 40 per cent of the emissions reductions required for the global cement sector to achieve net-zero emissions by 2050, underscoring the importance of accelerating their scale-up. This requires robust R&D ecosystems, stronger collaboration between cement manufacturers, research institutions, technology providers,
equipment suppliers, and policymakers, as well as supportive standards and financial incentives to reduce investment risks.
Ashutosh Pandita, Director – Head, Cement Business, TKIL Industries, elaborates, “The cement industry’s most transformative innovation today is the increased use of alternative fuels and raw materials (AFR), supported by advanced feeding systems and process technologies that are driving both operational efficiency and decarbonisation. Looking ahead, oxyfuel combustion and carbon capture technologies remain underappreciated but hold immense potential for enabling deep reductions in carbon emissions and accelerating the industry’s journey towards net-zero production. By 2030, cement manufacturing is expected to become significantly more sustainable, energy-efficient, and technology-driven, with widespread adoption of AFR, low-clinker cement technologies, greater digitalisation and automation, and the early commercial deployment of carbon capture solutions, all supported by stronger industry collaboration and a shared commitment to achieving long-term sustainability goals.”
In India, organisations such as the National Council for Cement and Building Materials (NCCBM), leading academic institutions, and major cement companies are working together to develop and validate emerging technologies, while the introduction of standards such as IS 18189:2023 for Limestone Calcined Clay Cement (LC3) marks a significant step towards commercial adoption. However, challenges such as high capital investment, long validation cycles, limited infrastructure for technologies like CCUS, fluctuating availability of alternative raw materials, and customer acceptance continue to slow implementation. Bridging the gap between research and commercial reality will therefore require sustained investment in innovation, knowledge-sharing, pilot projects, policy support, and industry-wide collaboration to ensure that promising technologies evolve into scalable, economically viable solutions capable of transforming the future of cement manufacturing.
Creating a green future
Clinker production will increasingly rely on low-carbon technologies such as LC3, high-volume SCMs, AFR, renewable energy, waste heat recovery, and eventually CCUS, enabling manufacturers to significantly reduce their environmental footprint.
Achieving net-zero concrete by 2050 will require a combination of clinker substitution (around 37 per cent of cumulative CO2 reductions), carbon capture technologies (approximately 36 per cent), and improvements in thermal efficiency, renewable energy, and circular economy practices.
Industry Expert SA Khadilkar comments, “Customer requirements are a key driver of innovation in the cement industry, influencing product development, process improvements, sustainability initiatives, and digital solutions. Innovation is most effective when it addresses real market needs, particularly in areas such as performance, durability, and application-specific requirements. Around a decade ago, ACC and Ambuja Cements (now Adani Cement) recognised this shift and introduced performance-oriented blended cement brands with enhanced durability, reduced water penetration, and OPC-like properties. Their success encouraged other major cement manufacturers to develop specialised cement brands with unique performance characteristics, demonstrating how product innovation has evolved to meet changing customer expectations.”
“Ultimately, customer expectations have transformed innovation from a technology-driven exercise into a market-driven strategy, ensuring that new developments create measurable value across the construction value chain,” he adds.
India is expected to add nearly 500 million square metres of urban built-up area by 2030, driving sustained demand for greener, more durable, and higher-performing construction materials, according to NITI Aayog. Meeting this demand will require cement manufacturers to evolve from commodity producers into integrated providers of sustainable building solutions, supported by data-driven manufacturing, collaborative R&D, customer-centric product innovation, and circular resource management. The cement plant of tomorrow will therefore be defined not only by its production capacity but also by its ability to manufacture smarter, cleaner, and more sustainable construction materials that support India’s ambitious infrastructure and climate goals.
Conclusion
The path ahead is clear in its direction, if not yet in its pace. India’s position as the world’s second-largest cement producer, combined with its infrastructure ambitions and its 2070 net-zero commitment, makes this transition both urgent
and consequential.
What this article has made evident is that no single technology will carry the industry to net zero. LC3 addresses clinker dependency. Digital manufacturing addresses efficiency and waste. Alternative fuels address fossil fuel dependence. CCUS addresses the residual process emissions that no other lever can reach. Each is necessary. None is sufficient alone. The industry’s task is to advance all of them simultaneously, at a pace that matches the scale of the challenge.
The plants that will build tomorrow’s highways, airports and homes will need to do so with a fraction of today’s carbon footprint.
Innovations in cement and concrete
- Carbon mineralisation in concrete: A 2026 peer-reviewed study in the Journal of the American Ceramic Society by MIT’s Masic Lab and CarbonCure Technologies used in-situ Raman microspectroscopy to show that CO2 injected during cement mixing triggers a three-stage hydration sequence, producing a more uniform microstructure with approximately 13 per cent higher early strength while permanently sequestering carbon within the concrete matrix.
Source: www.carboncure.com
- Zero-clinker geopolymer blocks: Theseus Development manufactures geopolymer blocks using upcycled aluminosilicate waste from quarries and mines through an inorganic polymerisation process, achieving up to 80 per cent lower embodied carbon compared to conventional cement blocks. An interlocking block design reduces mortar requirements, lowering construction costs while eliminating clinker entirely from the production process.
Source: www.rmi.org
- 3D-printed basalt fibre grids: Austrian startup Fiber Elements, founded in 2023, uses robotically wound continuous basalt fibres arranged into three-dimensional reinforcement grids that replace steel in concrete structures. The resulting composites are three times stronger than steel, weigh two-thirds less, resist corrosion entirely and reduce CO2 emissions by up to 70 per cent compared to conventional steel-reinforced concrete.
Source: www.eitmanufacturing.eu
- Self-healing concrete: Dutch company Basilisk leads commercial deployment of bacteria-based self-healing concrete, with licensed production now active in Japan and a highway viaduct pilot planned for 2026. Dormant Bacillus bacteria embedded in the mix activate upon crack formation, metabolising nutrients to precipitate calcium carbonate that autonomously seals fractures. The global self-healing concrete market is projected to grow significantly through 2031, driven by green building mandates and infrastructure agencies targeting lower maintenance costs and extended structural life.
Sources: www.thelegaljournalontechnology.com and www.mordorintelligence.com
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