Adani Cement A Tug of War with Freight Transporters Milind Jagtap Ashwini Chavan
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As a freight transportation contractor in India, I witnessed two rival cement companies — Adani Cement and Aditya Birla – tug of war. The case is full of tensions, aggression, and innuendo between the two. The first tug of war began in 2007, when Adani Cement started their operations. They were a new entrant into the Indian cement market, and Aditya Birla wasn’t averse to a price war. The two companies started bidding fierc
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“The adani cement case study is a prime example of how supply chain optimization can improve the performance of a company. Increasing efficiency has allowed the company to improve its operational efficiency, reduce transportation costs, and optimize delivery times. A tug of war is occurring between the transportation of cement from the plant to the delivery site, which is a process of handling the cement at various stages during transportation. The competing companies (Indian Railways and BSNL) have a stake in this process, with Indian Railways owning most of
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“Adani Cement has been a tough customer for our freight transporters in the last 12 months. The company is notorious for imposing strict policies that are often violated by carriers. We used to face heavy penalties if we failed to reach our target milestone or failed to reach our agreed delivery time. However, recently, things have changed. Adani Cement has been working closely with freight transporters to reduce their fuel consumption. They have also been promoting eco-friendly solutions and have given the transporters a
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– The Indian cement industry, with a total market capitalization of about $22 billion (in 2020), has grown from around $3 billion in the 1980s to $25 billion in 2021. – According to the Ministry of Railways, railways’ freight traffic grew by 35.3% in 2019-20, the first full year since the country-wide rail blockades in 2017-18. – But the same railway’s traffic
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“Adani Cement is tug of war with freight transporters for its supply chain. They are competing with one of the top 3 Cement companies and need to differentiate themselves in the market. But, Adani Cement is facing challenges as they have limited resources to invest in a massive supply chain for cement. So, they are trying to increase cement prices to recover their investment but, it won’t help them to compete with the big players in the market. Moreover, freight transporters are complaining about the disruption
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The Adani Group has taken a very bold move in India with the setting up of its cement manufacturing unit at the Mundra port. This has been hailed as a great move, bringing an enormous boost to India’s growth story. The CM (Chairman of the Adani Group) has assured that the manufacturing unit will be capable of producing 50 million tons of cement annually in the next three years. It is worth mentioning here that India’s cement production stood at about 100 million tons a year, according
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In this era where the global market is booming and businesses are thriving every day, the competition is intensifying with each passing day. While the competition in industries such as banking, e-commerce, and FMCG has witnessed the highest growth in the last decade, none has seen this intensity as much as the cement industry. see this page With the increase in demand, cement companies have emerged as one of the most profitable sectors in India, with several giants holding a significant market share. However, the competition in the cement sector is