- Electric fleet targets lower logistics fuel costs
- Mining electrification could expand diesel substitution
Shree Cement is targeting commissioning of around 100 electric commercial vehicles during 2026 as part of a broader effort to reduce fossil-fuel consumption and improve logistics efficiency. The company is also evaluating electric dumpers and dozers for mining operations, indicating that electrification is being considered beyond road transportation.
Logistics costs emerge as key focus
The move could provide a structural cost lever for the cement producer, particularly in a fuel-intensive logistics chain. The company indicated that fuel costs for electric commercial vehicles can be around one-tenth of comparable diesel vehicles, although the overall economics would also depend on vehicle utilisation, charging infrastructure and upfront investment.
The company is simultaneously reducing freight intensity. Its average logistics lead distance declined to 445 km from 459 km during the quarter, while rail accounted for around 9% of volumes. Railway siding projects under the Gati Shakti framework are also being pursued to improve freight movement.
Electrification extends beyond transport
Shree Cement’s renewable energy share increased to 66% from 61% during the quarter. It has also started small-scale deployment of battery energy storage systems at selected locations and is assessing their wider application.
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