Yogesh Mehta, VP-Shree Cement: Logistics- Connecting the World
The cement industry needs to strike a perfect balance between the supply and demand ratio. Logistics doesn’t mean to supply the final cement to the user site but also involves complete transit of materials right at the moment the cement manufacturing process starts. This includes bringing raw materials such as limestone, coal, gypsum, etc., from the mining sites or from the stockpiles to the cement plant. And then the finished product needs to be transported to its final destination on the required timeline. This is where having a great transportation framework comes into play. The cement industry is expecting an 80 million tonne (mt) addition in its capacity over the coming three years during FY 2024. This will also be the highest capacity addition seen in any block of three consecutive years, during the last 10-year period, said Crisil Research in a report. With affordable housing schemes by the Indian government and ambitious infrastructure projects, the demand for bulk cement also seems to be increasing in India. To handle such huge demand, Indian cement companies have pulled up their sleeves to make logistics a seamless and cost-effective process. Cement is a low-cost commodity, and the cost of packaging and transportation adds a burden to manufacturers. Hence having the right combination of technology, policies, partnership, and mode of transport is vital for a seamless supply chain in a cement plant.