Displaying items by tag: India
Shiva Cement to spend US$200m on new integrated plant in Odisha
27 November 2020India: Shiva Cement plans to invest around US$200m towards a new integrated cement plant in Sundergarh district, Odisha. The 1.36Mt clinker unit will also include a 1Mt/yr grinding unit, an 8MW waste heat recovery (WHR) unit, 4Mt/yr crushing plants at its dolomite and limestone quarries, a connecting 10km belt conveyor and a dedicated railway siding with a 12km track to the main network.
ThyssenKrupp Industries India will supply a 4000t/day clinker production line for the project. Larsen & Toubro has been awarded the contract for civil, mechanical and refractory erection work. The unit is expected to create around 500 jobs directly and indirectly. Commissioning is scheduled to take place by March 2022.
Parth Jindal, the managing director of JSW Cement said, "The new clinker unit at Shiva Cement in Odisha will provide a strategic advantage to service the needs of our customers in the region and further strengthen JSW Cement's leadership position in the Green Cement category in India.”
The subsidiary of JSW Cement intends to use the new plant as a strategic hub to access markets in the east of the country. It is part of the group’s aim to achieve a production capacity of 25Mt/yr by 2025.
ACC to sell National Limestone Company to Ghadiya Group
19 November 2020India: ACC plans to sell its National Limestone Company subsidiary to Ghadiya Group for around US$2.5m. National Limestone Company holds mining leases for limestone in the state of Rajasthan. Ghadiya Group operates in the construction and mining sector.
UltraTech Cement beats energy productivity target
18 November 2020India: UltraTech Cement says it has beaten its goal of doubling its energy productivity ahead of its deadline. It joined the EP100 initiative in 2018 and agreed to double its energy productivity from the base year of 2010 with the target year of 2035. It has achieved this by investing in energy efficiency measures such as upgrading clinker coolers, implementing variable frequency drives to manage electricity flow, and introducing new waste heat recovery systems. The company says it is focusing on new technologies, changes in product and energy mix, digitisation and carbon pricing. It foresees the digitisation of its energy performance as a key enabler for identifying the best opportunities to save energy.
"UltraTech firmly believes that companies in the building material sector can come together to step up climate action for meeting the global 1.5-degree ambition. Joining like-minded companies in EP100 gave us an opportunity to accelerate and scale-up levers to double energy productivity and also drive the decarbonisation agenda,” said Kailash Jhanwar, the managing director of UltraTech Cement.
EP100 is a global business initiative consisting of a group of companies committed to improving their energy productivity. EP100 is led by the Climate Group, an international non-profit organisation, in partnership with the Alliance to Save Energy.
Iranian cement production grows by 14% to 36Mt in first half of year
18 November 2020Iran: Cement production rose by 14.4% year-on-year to 35.6Mt in the first half of the local calendar year that started in March 2020 from 31.1Mt in the same period in the previous year. The sector exported 5.8Mt of cement with a value of US$128m to 28 countries according to the Mehr News Agency. India, Afghanistan, Russia, Iraq, Qatar, Kenya, Kuwait, Sri Lanka, Pakistan, Armenia, Turkmenistan, Kazakhstan, Azerbaijan, Bangladesh, China and Oman were among the export destinations of cement.
Shree Cement orders vertical roller mills from Gebr. Pfeiffer
17 November 2020India: Shree Cement has ordered two vertical roller (VR) mills from Germany-based Gebr. Pfeiffer for the upcoming clinker line at its Raipur cement plant in Chhattisgarh. The supplier says that one of the mills will grind raw materials and the other will grind coal.
A MVR 6000 R-6 type raw mill will grind 800t/hr of raw material and have a drive power of 8700kW. Gebr. Pfeiffer said, “The grinding rollers of this mill can be equipped with roller tires for raw meal grinding as well as for cement grinding, provided that they have been designed according to the same force module. This saves money, because the identical components of rollers, tensioning system, roller arms, etc. mean that customers can reduce their spare parts inventory, since the same spare parts can be used for a raw meal mill and for a cement mill.” The mill will be equipped with an SLS 6000 VR high-efficiency classifier.
A MPS 2800 BK type mill will be used to grind coal with a capacity of 28t/hr, a drive power of 720kW and be “equipped with the latest design of the integrated SLS 2900 BK high-efficiency classifier optimised for MPS mills.”
The supplier said, “While the core components of the mills as well as the drive units will be supplied by Gebr. Pfeiffer from Europe, the Indian subsidiary Gebr. Pfeiffer (India) will provide components such as the mill and classifier housings, the steel foundation parts as well as internal parts of the classifiers.”
Third quarter 2020 update for the major cement producers
11 November 20202020 has been a year like no other and this clearly shows in the financial results of the major cement producers so far.
The first jolt is that several major Chinese cement producers have seen their sales fall. Following a tough first quarter due to coronavirus, the Chinese industry then overcame floods in the summer, to eventually report a decrease in cement output of 1.1% year-on-year to 1.68Bnt in the first nine months of 2020. The world’s largest cement producer, CNBM, reported a slightly smaller drop in sales year-on-year in the first nine months of 2020. This relatively small fall, just below 1%, may be due to CNBM’s size and diversity of business interests. Other large Chinese producers have noted bigger losses, such as Huaxin Cement’s 9% sales decline to US$3.04bn and Jidong Cement’s 5% sales fall to US$3.8bn. However, Anhui Conch actually saw a 12% rise in sales to US$18.7bn.
Graph 1: Sales revenue from selected cement producers, Q1 - 3 2020. Source: Company reports.
Graph 2: Cement sales volumes from selected cement producers, Q1 - 3 2020. Source: Company reports.
LafargeHolcim’s sales look worse in Graph 1 than they really are because the group was busy divesting assets in 2019. Its net sales fell by 7.9% on a like-for-like basis to US$18.7bn in the first nine months of 2020, a rate of change similar to HeidelbergCement’s. Being a properly multinational building materials producer brings mixed benefits given that these companies have suffered from coronavirus-related lockdowns in different times in different places but they have also been able to hedge themselves from this effect through their many locations. In the third quarter of 2020, for example, LafargeHolcim was reporting recovering cement sales in its Asia-Pacific, Latin America and western/central parts of its Europe regions but problems in North America. Again, HeidelbergCement noted a similar picture with cement deliveries up in its Africa-Eastern Mediterranean Basin Group area, stable in Northern and Eastern Europe-Central Asia and down elsewhere. How the latest round of public health-related lockdowns in Europe round off a bad year remains to be seen.
The other more regional producers are noteworthy particularly due to their different geographical distribution. Cemex has seen a lower fall in sales revenue and cement sales volumes so far in 2020, possibly due to its greater presence in North America. What happens in the fourth quarter is uncertain at best, with US coronavirus cases rising and the Portland Cement Association (PCA) expecting a small decline in cement consumption overall in 2020. Along similar lines, Buzzi Unicem appears to have benefitted from its strong presence in Germany and the US, leading it to report a below 1% drop in sales revenue so far in 2020, the lowest of the decreases reported here for the western multinational cement companies.
Looking more widely, UltraTech Cement, India’s largest producer, had to contend with a near complete government-mandated plant shutdown in late March 2021. The figures presented here are calculated for comparison with other companies around the world due to the difference between the standard calendar financial year (January to December) and the Indian financial year (April to March). However, they suggest that Ultratech Cement suffered a 14% fall in sales to US$3.9bn and an 8% decline in sales volumes to 56Mt, among the worst decline of all the companies featured here. This is unsurprising given that UltraTech mostly operates in one country. Sure enough it bounced back in its second quarter (June – September 2020) with jumps in revenue, earnings and volumes.
Finally, for a view of a region that hasn’t had to face coronavirus-related economic disruption of anything like the same scale, Dangote Cement has reported solid growth so far in 2020, with rises in sales and volumes both above 5%. Economic problems at home in Nigeria have seen relatively higher growth elsewhere in Africa in recent years but now the pendulum has swung back home again. The big news has been that the company has pushed ahead with plans to turn Nigeria into a cement export hub, with a maiden shipment of clinker from Nigeria to Senegal in June 2020. The vision behind this has expanded from making Nigeria self-sufficient in cement from a few years ago into making the entirety of West and Central Africa cement and clinker ‘independent.’
The big news internationally this week was of the reported effectiveness of a Covid-19 vaccine in early trials by Pfizer and BioNTech. It might not yet make it into people’s arms at scale but it shows that the vaccine appears to work and that others in development and testing may do too. Building material manufacturer share prices didn’t rally as much as airlines or cinema chains on the news, construction has carried on after all, but this is a positive sign that normality for both health and wealth is on the way back at some point in 2021. One point to consider, given the wide regional variation with the economic effects of coronavirus, is what effect a disjointed global rollout of a vaccine or vaccines might have. A building material manufacturer dependent on a region that stamps out the virus later than other places might face an economic penalty. Recovery seems likely in 2021 but it isn’t guaranteed and the implications of the coronavirus crisis seem set to persist for a while yet. Here’s hoping for a different outlook at this point in 2021.
India: Dalmia Bharat Group has appointed Rajiv Bansal as a Senior Executive Director in the managing director’s office. The company said that he would work with Puneet Dalmia, managing director, and Mahendra Singhi, managing director and chief executive officer (CEO), to ‘strengthen our existing goals and strategies and in formulating and implementing newer initiatives that align with the long term goals and vision of the company.’
Bansal joins Dalmia Bharat Group from DXC Technology, an IT services company, where he served as the chief financial officer (CFO) for America. Prior to DXC, he was the CFO of Ola (ANI Technologies), an India-based mobility platform and ride-hailing companies. Before joining Ola, he was the Global CFO of Infosys, an India-based IT services company. He holds over 26 years of experience across various industries including power generation, telecoms, IT services and internet start-ups. Bansal holds a Bachelor of Commerce from Calcutta University and is a chartered accountant and a cost accountant.
JK Cement’s first-half sales fall as profit rises
10 November 2020India: JK Cement recorded sales of US$339m in the first half of the 2021 financial year, down by 3% from US$348m in the first half of the 2020 financial year. Profit after tax for the period rose by 15% to US$40.6m from US$35.4m, partly due to a 5% decrease in total expenses to US$285m from US$301.
In comments about the coronavirus pandemic the group said, “With gradual resumption of overall economic activities, operations have started moving towards normalcy."
India: Dalmia Bharat’s earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 15% year-on-year to US$177m in the first half of the 2021 financial year, from US$154m in the first half of the 2020 financial year. Overall sales were US$591m, down by 8% from US$644m, while cement sales fell by 5% to US$567m from US$596m. The company attributed this to “a seasonal weakness of cement prices during the second quarter especially in the eastern region” in addition to a fall in volumes by 6% to 8.46Mt from 9.02Mt in the first half.
Chief executive officer (CEO) and managing director Mahendra Singhi said, “The strength of our company’s foundation is visible in overall improvement in the operating metrics during the second quarter and during the first half of the 2021 financial year. Our team has truly been instrumental to our success and we are completely geared up for a successful integration of the new capacity and ramping up its utilisation levels. Our second quarter EBITDA of US$94.6m is the highest ever for the company.”
Dalmia Cement signs with Paytm for payment digitisation
04 November 2020India: Dalmia Bharat subsidiary Dalmia Cement has awarded a contract to payment solutions specialist Paytm for digitisation of its payment processes. United News of India has reported that Paytm will enable customers to use Paytm Wallet, Unified Payments Interface (UPI) and other cashless means in purchasing Dalmia Cement’s products from over 30,000 dealers and retailers across 22 Indian states and union territories, according to the producer.
Head of marketing and executive director Pramesh Arya said, “Dalmia Cement's emphasis on being digital first has helped our dealers and retailers carry out their day-to-day business transactions easily. Paytm has always stood for ease of use and convenience in the world of digital payments. Through this partnership, we aim to help our dealer community accept contactless and secure payments using Paytm Wallet, UPI, debit or credit card and online banking.” He added, “The idea is to maintain social distancing, reduce cash handling and minimise the risk of coronavirus exposure. This partnership is yet another step in Dalmia Cement's pursuit to bring Future Today - our brand credo - to life.”