Cement Logistics A Costly Affair
Maritime Gateway|November 2019
Deprived of automation and thriving on rather uneconomical modes of logistics the Indian cement sector has for long been burdened with high logistics cost. The sector now seems on its way to optimise its logistics value chain.
Omer Ahmed Siddiqui
Cement Logistics A Costly Affair

The Cement Industry in India is more than a century old and is now second-largest globally behind China in terms of installed capacity, production and consumption which is playing an important role in development of infrastructure in the country. Ask the industry experts what is driving the industry growth? And they are quick to count a bouquet of projects on their fingertips. In fact programmes such as housing for all by 2022, Make in India, creation of 100 smart cities, dedicated freight corridors, Swachh Bharat Abhiyan, water transport, concrete road projects etc. will make sure that all the production units function at their peak capacity. Increased allocation to infrastructure projects in Union Budget 2018-19 and the North-East, which is witnessing a construction

boom, point at the growing demand for cement. There will be a vast requirement of cement and cement industry will be one of the most important contributing factors for the success of these projects. Housing and real estate sector is the largest consumer of cement in India, followed by infrastructure and industrial development sectors.

“Indian cement Industry has seen a fair amount of annual growth as India embarks on a massive investment in housing and infrastructure building. Capacity building, manufacturing excellence, overhaul of supply chain efficiencies and cost reductions along with market expansion including tapping rural markets are the major areas of focus for the industry. Growth in use of ready mix concrete especially in major urban metros and in infrastructure projects has given a fillip to increase in delivery of bulk cement. Slowly, India is moving the way the other major industrial countries have shifted to bulk cement from bag cement deliveries,” notes JVB Sastry, Supply Chain Consultant, Emami Cement.

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