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Domestic low quality, high ash coal is used Linkage coal for making cement which accounts for prices majority of consumption, companies also use imported coal during peak demand season to hedge supply risk Power plants are the main source of fly ash. Diesel prices They are situated uniformly across India. Indias limited gypsum deposits are Import duty, concentrated around Rajasthan. Companies freight charges import most of the requirement from Thailand and Middle east
C&FA
Distributors
Retailer
Central Manufacturing Unit (CMU) Bags are loaded on wagon or trucks Companies use rail mode for primary transportation Carrying & Forwarding Agent (C&FA) CFA unloads the bags, stores and delivers it when order is placed by distributor Trucks are used for secondary transportation Distributors Distributors also store small quaintly of cement to meet urgent demand Apart from selling distributors help company in marketing and sales promotion activities Retailer Retailers take order and deliver to end consumers
Supply-Demand Scenario
Supply: The demand-supply situation is high skewed with the latter being significantly higher
Demand: Housing sector acts as the principal growth driver for cement. However, recently industrial and infrastructure sectors have also emerged as demand drivers.
Industry Dynamics
Suggestions
Implementation of software-based transportation optimization solution Implementation of bulk transport Choosing the correct mode of transport Containerisation of cement for rail travel Development of Ready Mix Concrete