Economy & Market

Optimising Logistics

Published

11 years ago

March 31, 2015

admin

Cement is a vital building material that demands well-organized distribution and timely delivery; and the most important focus areas are to optimize the logistics value chain of the product which includes first and last mile transportation.
In the last two years, logistics has emerged as a function of critical importance in cement business on par with manufacturing and marketing and sales. This is the activity that links cement from the point of its production till it reaches the hands of the ultimate consumer. When we use the term logistics, we mostly refer to outbound movement; but of course the function must ideally also include inbound logistics or the activities involving inward movement of raw materials, inputs and intermediate goods. But essentially logistics plays a collaborative role between manufacturing on one side and sales on the other.

Cement is a vital building material that demands well-organized distribution and timely delivery. The cost of transporting cement via road comes to about Rs 1-3/tonne/km. The wide range is due to the variation in lead distance, which can range from anywhere between 50-300 km. Longer the distance, lower is the cost of transport. Railway on other hand costs Rs 1.3 to 1.4/tonne/km. However, railway has additional fixed costs related to loading and unloading. The handling cost is high for railways. So for a distance below 200 km, rail is not viable. The total cost of logistics considering inbound and outbound movement can come up to 20-25 per cent of cement price. This is for companies having good infrastructure such as rail sidings, etc, and who transport 40-60 per cent product by rail. For companies that do not have such facilities, the cost can go as high as 30 per cent of the cement cost.

Market scenario
According to Tushar Dave, Vice President – Central Logistics, ACC Ltd, the importance of logistics in cement business cannot be understated. Says Dave, ?Typically, cement has to travel about 400 km from the plant before it reaches the end customer. The cost of outbound logistics represents nearly 20 per cent of net sales; in fact it comprises the second highest share of costs after manufacturing and fuel. On-time delivery is another critical area where logistics plays a role, considering that it is essential to ensure customer satisfaction. In view of these facts, logistics has enormous potential to deliver cost savings while simultaneously impacting customer satisfaction through improvements in service levels.?

He adds, ?A major bottleneck in this front is the time consumed at the loading bay. Trucks typically have had to wait for hours to enter and move out of the plant premises. This takes up a lot of the total travel and turnaround time and congests the bay during peak loading hours. ACC devised a unique solution to this problem by way of introducing the digitalised loading bay.?

Says Praveen Garg, Head – Logistics, Bharathi Cement, ?In the present scenario, logistics in cement industry plays a vital role to decide the competitive advantage or disadvantage for a company. Logistics in Indian cement industry per se is in growth stage and there is a long way to go to achieve consolidation and mature stage. Logistics cost is one of the highest cost elements and contributes 25 to 30 per cent of total spend in cement industry.? He adds, ?Existing infrastructure related to road, rail and sea transport is a major bottleneck, which does not provide flexibility as compared to developed nations. Indian cement industry still has separate vendors for primary transportation, last mile delivery and supply chain planning. Big 3PL and 4PL players are yet to come in cement logistics that can provide end-to-end solution.?

Functional bottlenecks
Speaking about the functional constraints Arun Khurana, Head – Logistics, JK Cement, had this to say. ?Definitely, logistics remains always under pressure when industry scenario is not so good. The prices are not supportive and with the logistics cost is pretty high, always the aim remains to how we can rationalize or optimize the logistics cost. Rail logistics constitutes almost 35 per cent of the total dispatches being done from the factory and now railways is reaching to the point of saturation. In fact, in the last 10 years, the percentage of rail has really come down from 40-45 per cent to 35 per cent and all this is because railways does not have sufficient infrastructure to support the demand requirement. So, the alternate mode comes as road. Again, the biggest challenge here is the availability of skilled drivers. It is not confined to cement alone, but the fact remains that these kinds of challenges are there in the transport industry which is directly linked to the cement industry as well. In the last two years, it seems the supply chain as a function is evolving across industries. So on that extent, skilled manpower available is not to the desired level.? Speaking about the functional bottlenecks, Capt. Ashok Shrivastava, Chief Executive Officer, Shipping Services, Allcargo Logistics, says, ?The fundamental reasons for challenges or bottlenecks in logistics especially in the cement industry has more to do with the product itself which is high volume and low value. This gives rise to the bottleneck of various kinds from transportation of raw material to plants and then from plants to the end-consumer through distribution channels. The challenge is compounded by India?s unique demography and its fast pace economic growth which is not concentrated in particular locations but is spread across all corners of the country. Thus, the demand is scattered but the production is located sparingly across states keeping in mind the economics of the business. Many of these macroeconomic variables cannot be altered to a greater extent, thus given this industry a unique set of opportunities and challenges. Logistics is the backbone of this product in demography such as India.?

He adds, ?Road has been the tradition medium of transportation, but given the congestion, limitation on quantity which can be carried, costs of toll across highways and the low average speed of movement it has given rail the opportunity to be one of the preferred modes of surface transportation. Coastal shipping has emerged as the most preferred medium of movement of cement, given its advantage in terms of costs as well as capacity to carry larger volume. Coastal shipping will be a game changer for India given that our country is surrounded by over 7,000 km of coastline and the cement industry can leverage this mode of transportation more effectively and efficiently to move its products.?

According to Prabhat Ranjan, AGM – Sales & Logistics, Meghalaya Cement, there are two sides to bringing down cost of logistics; one is infrastructure and the other is technology. ?As far as infrastructure is concerned, whenever a truck load is coming, there should be a scope for return load so that the freight cost remains low. Here in the North-East region, there is no scope for return load as the industry is not developed here. Some bulk terminals can be set up in Delhi in the north and Chennai in south, where bulkers are coming from the cement plant can go back to the cement plant with fly ash. So, they are getting the two-way transportation. Bulkers are unloading the cement in the silos and there it is getting packed. In this mode, the transportation cost is reduced. But in North-East region, the roads are not good for bulkers to ply as it is hilly terrain. Also, cement consumption is very low here compared to other parts of the country. So, in North-East, the scope of bulk terminals is not feasible.?

Bulk transportation
According to Garg, bulk cement consumption and transportation at present in India is very low which is at a level of 10 per cent only. He says, ?Bulk transportation will increase at 15-20 per cent CAGR in future with consolidation in cement customer segment and growth of ready mix concrete business in India. At present, there is an issue both at the customer end and available logistics infrastructure, which is resulting in such a low bulk transportation percentage in India. This will further increase with introduction of new bulk terminals coming up near major consumption centres.? He adds, ?Now we are exploring the possibilities to use bulk silo placing unit attached to trucks and these small silos can be carried by trucks to the small construction site. With this concept, small construction site can be converted from bags to bulk. This will reduce the packaging and handling cost to a great extent.? Says Khurana, ?Bulk cement is used either in RMC or infra projects. But till date, the larger demand coming is from the rural pockets. Big projects like smart cities are at conceptual stage and if it becomes a reality then there is good scope for bulk cement. As of today, the percentage of loose cement sold in India is below 10 per cent of the total sales. The use of bulk cement is majorly at metro cities only. But going forward, if the projects like dedicated freight corridors, smart cities and other mega infra projects, come up, definitely there is a huge scope for bulk cement. If the future growth of cement comes to this segment then there is a huge growth.?

According to Ranjan, bulk transportation is good but there are a lot of technologies need to be developed like the bulk terminals, from where cement can be supplied to big projects. Now the RMC concept is evolved, and they have now started taking bulk cement, which saves costs involved in packing, packaging materials etc. The trend is gaining momentum as before starting big projects, they set up silos because they can set up a silo at 50 per cent production cost of cement and they can use loose cement. Almost every company has started this, especially for hydel projects they are using own silos. Now, NHPC has started this and many private companies are going to start. Even in road projects, bulk handling is going on.

Rail freight impact
According to Khurana, the 2.7 per cent increase in freight rate definitely adds to the cost of cement. He says, ?The input cost in terms of coal and slag transportation has increased almost 7 per cent, which adds to the cost of cement by Rs 2-2.50 per bag. So effectively, there will be a Rs 6-7 hike in per bag cost. But due to less demand in the current market, it is difficult to pass on the cost difference to the end-consumer. As of now, it is really hitting the bottom line of the cement company.?

Ranjan has a different take on this. According to him, freight rate is not a major factor in railway transportation. He says, ?More than freight rate, there are so many other factors that are affecting, which include other policies of Railways, infrastructure at rail yard, etc. Rail yards are working 24 hour, but the labours are available for only eight hours. Railways charges demurrage, if my rakes are getting placed today evening, I have to pay the demurrage charges for the whole night, and the labours will be available in the morning next day. Thus, demurrage charges, labour charges, local infrastructure charges, and other charges are so high which are diluting the increase of freight rates.?

Says Garg, ?Freight rate for cement has been hiked by 2.7 per cent whereas for coal this has been hiked by 6.3 per cent. This will have overall negative impact of around Rs 40 to 60/tonne on bottom line of cement industry. This freight hike by Railways will also impact the rail co-efficient as Railways has increased the freight at the time when diesel prices have come down drastically.?

On a positive angle, Shrivastava had this to say. ?In a growing vibrant economy like India, rise in input costs of variables such as rates, taxes, fuel costs have direct effect on the industry, but the overall advantage of the demand-supply fundamentals are still the more important opportunity for further growth and development. Any business has to be proactive to leverage the developments as well as innovate itself to make convert it into an opportunity.?

Setting up of bulk terminals
According to Garg, setting up of bulk terminals and same shared by different players will give a real boost to cement industry. He says, ?Any grinding unit or bulk cement terminal require at least 50 acre of land near to major cement consumption centres like Mumbai, Bangalore, Delhi, Kolkata, Chennai and upcoming metros. If we look at any of existing terminal (existing private siding or railway siding), there is a great scope of sharing existing private/railway siding and other available space in these terminals. This will be a win-win solution for the existing siding operator located nearby major consumption centres to collaborate and share their asset which is not fully utilised. Challenges are from regulation side also the modalities on sharing the existing set-up.?

Says Khurana, ?Collaborating with multiple companies will become challenging from the perspective of different players. Even today, industry has not graduated to a level where people only compete by way of brand. The industry has to reach that level of maturity where different manufacturers collaborate probably for the mutual benefit. Of course, looking at the Indian Railways to do those kinds of investments is not a scenario as of now. But there is a huge potential for private terminals, which are designed in such a way that they can be used as multiple operators rather than for a bagged cargo or loose cement cargo.

Says Dave, ?The future points to a shift towards bulk transport but that would happen gradually over 9 to 12 years horizon in big way once all the stake holders (from manufacturers to end users) are ready and fully on board. It also needs other enablers to be in place such as a shift in the way cement is sold (migration from B2C to B2B) and the availability of appropriate transportation, handling and infrastructure facilities.?

Integrated logistics
Says Khurana, ?In terms of operational aspect, one of the options available is the mechanisation of the goods shed and the second option is exploring the possibilities of bulk terminals across the country. Many big cement companies can explore upon setting up integrated terminals but for smaller players who have limited volumes and different geographies, this is not operationally viable. So there may be a potential for a common facility that can be utlised by different players and then repack and distribute to the local market from thereon. We have taken such initiatives for our white cement market due to longer distance from our plant in Rajasthan to the market in west coast and down south which is a multimodal type of operation. We have recently commissioned a grinder unit in Haryana which will reduce the load that goes into the road and rail network.?

Manufacturers tend to use a combination of distribution methods, which include bulk and bags via road, rail, in-land transport and by sea. The most inexpensive method of moving cement is in bulk by water. The optimum solution is always a combination of methods. In today?s technologically advanced world, it is possible to use the power of information technology to arrive at optimum solutions using mathematical modelling and algorithms. For effective and optimum costs in cement distribution, one needs to integrate IT solutions with actual demand and supply and, most importantly, include all options of cement movement and storage into the management cycle. One will need to work with almost everyone involved in the supply chain, from the drivers of road bulkers and trucks, the captains of the barges and ships and to the customer engineers who will finally receive the cement for use in their plants.

Shrivastava sums up, ?For the cement industry which includes home grown as well as international players competing for the market, one of the most important focus areas is to optimize the logistics value chain of the product which also included first and last mile transportation. Presently, movement of cement goes through multiple modes and service providers handling the product thus forming part of the overall logistics cost structure. One of the most efficient ways to control and leverage this variable is to look at integrated logistics wherein a provider has the network, the size and scale to provide all types of movement from coastal shipping to trailer movement to last mile distribution, thus forming a value added service. This will make a huge difference in terms of managing the value chain and optimizing costs as well delivery time of the product.?

LOGISTICS CHALLENGES IN NORTH-EAST

Logistics is the most important part in cement industry as almost 30 per cent of the cost of cement is involved in logistics. But it is more than that in the North-East part of the country. Since it is hilly terrain, transportation cost is very high which can be more than 40 per cent of the cement price. In this region, we have only one mode of transport, the road transport. There is no rail logistics here, except some parts of Assam.
Another bottleneck is the presence of anti-social elements in some parts of Nagaland, Manipur, and such north-eastern states. There are some parallel government system in Manipur, as we have to pay taxes at two points – one at Indian government and another at ?terror government?. This affects the final cost of the cement. For example, if the freight rate is Rs 100 at normal places in Assam, it will be same in these parts also for the same distance, but there are other taxes like token tax.
Apart from that, there is a convoy system here for transportation. If today there is no convoy if a truck is loaded, it may have to wait for a couple of day because convoy will go only on a particular day and all the trucks loaded with materials will be taken by the convoy up till Imphal, Agarthala, or such places. So these are the big bottlenecks, like if the truck is going, it is taking one week for a small distance of 200-300 km to go and come back. And the cost factor is coming at every stage which ultimately affects the final price of the cement and the customers.
As told by Prabhat Ranjan, AGM – Sales & Logistics, Meghalaya Cement

MOVING AHEAD

Coastal shipping will be a game changer for India
Bulk transportation will increase at 15 per cent to 20 per cent CAGR
Integrated logistics will make a huge difference in terms of managing the value chain
Rail logistics constitutes almost 35 per cent of the total dispatches being done from the factory

CHALLENGES

Availability of skilled drivers is a challenge in road transport
Costs of toll across highways and the low average speed of movement
Non availability of labours in rail yards
Demurrage charges from railway
Lack of rail wagons for small delivery for far-off destination, where road delivery is not feasible.

OPTIMISING LOGISTICS COST

Encourage big cement users for bulk/loose cement transport. This will reduce packing cost and is also eco-friendly. It is beneficial for both ? the seller and the buyer
Establish grinding units, blending or packing units in big market area for direct delivery of materials
Plan dispatches in a way that reduce rail freight/rail freight on return journeys availed for procurements
Maximise dispatches directly to the end user so that warehousing/distribution cost can be reduced
Optimise truck size/fleet capacity, timing of vehicle engaged in cement and raw material loading, unloading as well as the transit time, so that operational cost of vehicle is reduced by maximising efficiency of every trip made by the vehicle.

Concrete

Filtration Technology is Critical for Efficient Logistics

Published

4 hours ago

May 15, 2026

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Niranjan Kirloskar, MD, Fleetguard Filters, makes the case that filtration technology, which has been long treated as a routine consumable, is in fact a strategic performance enabler across every stage of cement production and logistics.

India’s cement industry forms the core for infrastructure growth of the country. With an expected compound annual growth rate of six to eight per cent, India has secured its position as the second-largest cement producer globally. This growth is a result of the increasing demand across, resulting in capacity expansion. Consequently, cement manufacturers are now also focusing on running the factories as efficiently as possible to stay competitive and profitable.
While a large portion of focus still remains on production technologies and capacity utilisation, the hidden factor in profitability is the efficiency of cement logistics. The logistics alone account for nearly 30 per cent to 40 per cent of the total cost of cement, making efficiency in this segment a key lever for profitability and reliability.
In the midst of this complex and high-intensity ecosystem, filtration often remains one of the most underappreciated yet essential enablers of performance.

A demanding operational landscape
Cement production and logistics inherently operate in some of the harshest industrial environments. With processes such as quarrying, crushing, grinding, clinker production, and bulk material handling expose the machinery to constant high temperatures, heavy loads, and dust, often the silent destructive force for engines.
The ecosystem is abrasive, and often one with a high contamination index. These challenging conditions demand equipment such as the excavators, crushers, compressors, and transport vehicles to perform and perform efficiently. The continuous exposure to contamination across every aspect like air, fuel, lubrication, and even hydraulic systems causes long-term damage. Studies have also shown that 70 to 80 per cent of hydraulic system failures are directly linked to contamination, while primary cause of engine wear is inadequate air filtration.
For engines as heavy as these, even a minor contaminant has a cascading effect; reducing efficiency, performance and culminating to unplanned downtime. Particles as small as 5 to 10 microns, far smaller than a human hair (~70 microns), can cause significant damage to critical engine components. In an industry where margins are closely linked to operational efficiency, such disruptions can significantly affect both cost structures and delivery timelines.

Dust management: A persistent challenge
Dust is a natural by-product in cement operations. From drilling and blasting in the quarries to packing in plants, this fine particulate matter does occupy a large space in operations. Dust concentration levels in quarry and crushing zones often create extremely high particulate exposure for equipment. These fine particles, when enter the engines and critical systems, accelerates the wear and tear of the component, affecting directly the operational efficiency. Over time every block fall; engine performance declines, fuel consumption rises, and maintenance cycles shorten. In this case, effective air filtration is the natural first line of defence. Advanced filtration systems are designed to capture high volumes of particulate matter while maintaining consistent airflow, ensuring that engines and equipment operate under optimal conditions.
In high-dust applications, as in cement production, even the filtration systems are expected to sustain performance over extended periods without the need of frequent replacement. This becomes crucial in remote quarry locations where access to frequent maintenance may be limited.

Fluid cleanliness and system integrity
Beyond air filtration, fluid systems also play a crucial role for equipment reliability in cement operations. Fuel systems are required to remain free from contaminants for efficient working of combustion and injection protection. Additionally, lubrication systems also need to maintain the oil purity to reduce friction and prevent any premature wear of moving parts. The hydraulic systems, which are key to several heavy equipment operations, are especially sensitive to contamination.
If fine particles or water enters these systems, it can lead to reduced efficiency, erratic performance, and eventual failure of the system. Modern filtration systems are designed with high-efficiency media capable of removing extremely fine contaminants, with advanced fuel and oil filtration solutions filtering particles as small as two to five microns. Multi-stage filtration systems further ensure that fluid performance is maintained even under challenging operating conditions.
Another critical aspect of fuel systems is water separation. Removing moisture helps prevent corrosion, improves combustion efficiency and enhances overall engine reliability. Modern water separation technologies can achieve over 95 per cent efficiency in removing water from fuel systems.

Ensuring reliability across the value chain
Filtration plays a critical role across every stage of cement logistics:
• Quarry operations: Equipment operates in highly abrasive environments, requiring strong protection against dust ingress and hydraulic contamination.
• Processing units: Crushers, kilns, and grinding mills depend on clean lubrication and cooling systems to sustain continuous operations.
• Material handling systems: Pneumatic and mechanical systems rely on clean air and fluid systems for efficiency and reliability.
• Transportation networks: Bulk carriers and trucks must maintain engine health and fuel efficiency to ensure timely deliveries.
Across these operations, filtration plays a vital role; as it supports consistent equipment performance while reducing the risk of unexpected failures.
Effective filtration solutions can reduce unscheduled equipment failures by 30 to 50 per cent across heavy-duty operations.

Uptime as a strategic imperative
In cement manufacturing, uptime is currency. Downtime not only delays the production, but it also greatly impacts the supply commitments and logistics planning. With the right filtration systems, contaminants are kept at bay from entering the
critical systems, and they also significantly extend the service intervals.
Optimised filtration can extend service intervals by 20 to 40 per cent, reducing maintenance frequency while maintaining consistent performance across demanding operating conditions. Filtration systems designed for heavy-duty applications sustain efficiency throughout their lifecycle, ensuring reliable protection with minimal interruptions. This leads to improved equipment availability, lower maintenance costs, and more predictable operations, with well-maintained systems capable of achieving uptime levels of over 90 to 95 per cent in challenging cement environments.

Supporting emission and sustainability goals
With the rising environmental awareness, the cement industry too is aligning with the stricter norms and sustainability targets. In this scenario, the operational efficiency is directly linked to emission control.

Air and fuel systems that are clean enable
much more efficient combustion. They also reduce emissions from both the stationary equipment and transport fleets. Similarly, with a well-maintained fluid cleanliness, emission systems function better. Poor combustion due to contamination can increase emissions by 5 to 10 per cent, making clean systems critical for compliance.
Additionally, efficient and longer lasting filtration systems significantly reduce any waste generation and contribute to increased sustainable maintenance practices. Extended-life filtration solutions can reduce filter disposal and maintenance waste by 15 to 20 per cent. Smart and efficient filtration in this case plays an important role in meeting the both regulatory and environmental objectives within the industry.

Advancements in filtration technology
Over the years, there has been a significant evolution in the filtration technology to meet the modern industrial applications.
Key developments include:
• High-efficiency filtration media capable of capturing very fine particles without restricting flow
• Compact and integrated designs that combine multiple filtration functions
• Extended service life solutions that reduce replacement frequency and maintenance downtime
• Application-specific engineering tailored to different stages of cement operations
Modern multi-layer filtration media can improve dust-holding capacity by up to two to three times compared to conventional systems, while maintaining consistent performance. These advancements have transformed filtration from a basic maintenance component into a critical performance system.

Adapting to diverse operating conditions
The cement industry of India operates across diverse geographies. Spanning across regions with arid regions with higher dust levels, to the coastal areas with higher humidity, challenges of each region pose different threats to the engines. Modern filtration systems are thus tailored to address these unique challenges of each region.
Indian operating environments often range from 0°C to over 50°C, with some of the highest dust loads globally in mining zones.
Additionally, filtration technology can also be customised to variations which then align the system design with factors like dust load, temperature, and equipment usage patterns. Equipment utilisation levels in India are typically higher than global averages, making robust filtration even more critical. This approach ensures optimal performance and durability across different operational contexts.

Impact on total cost of ownership
Filtration has a direct and measurable impact on the total cost of ownership of equipment.
Effective filtration leads to:
• Lower wear and tear on critical components
• Reduced maintenance and repair costs
• Improved fuel efficiency
• Extended equipment life
• Higher operational uptime
Effective filtration can extend engine life by 20 to 30 per cent and reduce overall maintenance costs by 15 to 25 per cent over the equipment lifecycle. These benefits collectively enhance productivity and reduce lifecycle costs. Conversely, inadequate filtration can result in frequent breakdowns, increased maintenance expenditure, and reduced asset utilisation.

Building a more efficient cement ecosystem
With the rising demand across various sectors, the cement industry is expected to expand at an unprecedented rate. This growth is forcing the production to move towards a more efficient and resilient system of operations. This requires attention not only to production technologies but also to the supporting systems that enable consistent performance. Filtration must be viewed as a strategic investment rather than a routine consumable. By ensuring the cleanliness of air and fluids across systems, it supports reliability, efficiency, and sustainability.

The road ahead
The future of cement logistics will be shaped by increasing mechanisation, digital monitoring, and stricter environmental standards. The industry is also witnessing a shift towards predictive maintenance and condition monitoring, where filtration performance is increasingly integrated with real-time equipment diagnostics.
In this evolving landscape, the role of filtration will become even more critical. As equipment becomes more advanced and operating conditions more demanding, the need for precise contamination control will continue to grow. From quarry to construction site, filtration technology underpins the performance of every critical system. It enables equipment to operate efficiently, reduces operational risks, and supports the industry’s broader goals of growth and sustainability. In many ways, it is the unseen force that keeps the cement ecosystem moving, quietly ensuring that every link in the value chain performs as expected.

About the author
Niranjan Kirloskar, Managing Director, Fleetguard Filters, is focused on driving innovation, operational excellence, and long-term business growth through strategic and people-centric leadership. With a strong foundation in ethics and forward-thinking decision-making, he champions a culture of collaboration, accountability, and technological advancement.

Concrete

Cement’s Next Fuel Shift

Published

6 hours ago

May 15, 2026

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Jignesh Kindaria highlights how Thermal Substitution Rate (TSR) is emerging as a critical lever for cost savings, decarbonisation and competitive advantage in the cement industry.

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

Dalmia Bharat Cement launches water repellent cement brand Weather 365 in Eastern India

Published

6 hours ago

May 15, 2026

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The company has introduced water repellent cement to target rising consumer demand for weather-resilient housing solutions.

New Delhi, May 15, 2026

Dalmia Bharat Cement, one of India’s leading cement manufacturing companies, has launched Weather 365, a new super-premium water repellent cement brand aimed at addressing growing consumer demand for durable, weather-resistant construction materials in Eastern India. The product is positioned as a high-performance offering for consumers seeking long-term protection against seepage, dampness and moisture damage. The launch marks a strategic push by Dalmia Bharat Cement into the fast-growing premium cement segment, where consumer preference is increasingly shifting from price-led purchases to specialised, performance-oriented building materials.

Reinforcing its super-premium positioning, the product will be available in premium-quality water-resistant and tamper-proof BOPP packaging. ‘Weather 365’ will be introduced across its retail markets in West Bengal and Bihar.

In addition to the product rollout, the company will provide on-site technical support through its engineering and technical services teams to guide customers on best construction practices and improve long-term building performance.

Speaking on the launch, company spokesperson from Dalmia Bharat Cement said: “Weather 365 is a testament to Dalmia Bharat Cement’s relentless pursuit of innovation. Eastern India experiences prolonged monsoons, high humidity and challenging weather conditions that significantly impact the life of buildings and homes. Consumers today are actively looking for solutions that offer long-term protection and lower maintenance costs. Weather 365 is our answer to that need – a differentiated premium product that combines structural strength with advanced moisture protection that safeguards homes at every level, every season. We believe this category will see strong growth in the coming years.”

Weather 365 is a specialised cement product developed to meet the rigorous demands of modern construction in regions exposed to high humidity, heavy rainfall and extreme weather cycles. Designed for roofs, columns and foundations, it delivers end-to-end moisture protection across the entire home from the structure’s core to its visible surfaces. Its proprietary uniform water repellent technology helps reduce water penetration, minimize steel corrosion in RCC structures while preventing efflorescence and damp patches, thereby ensuring stronger concrete, improved paint life and long-lasting structural health. Positioned as a super-premium product in Dalmia Bharat Cement’s portfolio, Weather 365 targets discerning homeowners, contractors and builders who seek the best-in-class protection for their construction investments.

With a strong manufacturing and market presence across Eastern India, Dalmia Bharat Cement continues to strengthen its footprint in one of its key strategic markets. As the company advances towards its vision of becoming a pan-India cement leader, it remains focused on delivering innovative, premium construction solutions tailored to evolving consumer needs.

Dalmia Bharat Cement, a subsidiary of Dalmia Bharat Limited, is a leading player in the cement manufacturing segment and has been in existence since 1939. It is the first cement company to commit to RE100, EP100 & EV100 (first triple joiner) – showing real business leadership in the clean energy transition by taking a joined-up approach. With a growing capacity, currently pegged at 49.5 million tonne, Dalmia Bharat Cement is the fourth-largest cement manufacturing group in India by installed capacity. Spread across ten states and fifteen manufacturing units, the company is a category leader in super-specialist cement used for oil well, railway sleepers and airstrips and is the country’s largest producer of Portland Slag Cement (PSC).