Cement companies adopt innovative cost-cutting measures
by Anil Sasi
FOR cement companies innovation may be the key to cost competitiveness. Hence, larger cement companies are seen to be shifting to a number of innovative cost-cutting measures to enhance bottomlines.
Bypassing the dealers to sell cement directly to the customer
--dealer-free route to supply to bulk consumers, including builders and infrastructure companies to save on the dealer margin
--customers encouraged to contact the cement companies directly with their requirements, following which the manufacturer delivers the cement to their doorsteps
Shifting from the traditional rail-road option to cheaper sea transportation to target distant markets
--saving on logistics expenses
--coastal transportation route, rather than rail or road
--high capacity Volvo trucks for road transportation to cut down on costs
Using crushed sugarcane for meeting fuel requirements.
--to bring down energy costs, most of the cement companies have already shifted entirely to captive power stations
--using a variety of fuels, including pet coke and lignite
Cement companies are also tracking the international polypropylene prices to strike deals with manufacturers of polypropylene bags, used as packaging material in the country
(Source: Hindu Business Line here.)