Displaying items by tag: UltraTech Cement
India: A court has dismissed Shraddha Binani's petition against summons by the Ministry of Corporate Affairs' Serious Fraud Investigation Office in its investigation of alleged related party transactions by the former Binani Cement. Mint News has reported that 'huge funds' from the company's related parties entered Binani's bank account, beginning in 2010.
Under corporate insolvency resolution proceedings, Binani Cement underwent acquisition by Aditya Birla subsidiary UltraTech Cement, becoming UltraTech Nathdwara Cement, in 2018.
Update on COP27
09 November 2022Readers may have noticed the 2022 United Nations Climate Change Conference (COP27) is currently taking place at Sharm El Sheikh in Egypt. Many of the cement companies, suppliers and related associations are present at the annual jamboree and getting stuck in. For example, Holcim’s chief sustainability officer Magali Anderson was scheduled on 8 November 2022 to discuss solutions to decarbonise the built environment at the event’s Building Pavilion, Cemex’s chief executive officer Fernando A González took part in the First Movers Coalition (FMC) panel, FLSmidth is down for a number of talks and both the Global Cement and Concrete Association (GCCA) and World Cement Association are busy too.
Stone cold progress, if any, from the conference is yet to emerge although there is still time given that the event runs until 18 November 2022. No doubt some sort of ‘big message’ style international commitment or plan will emerge from the haggling. However, on the cement sector side, the biggest story so far has been the FMC plan for some of its members to procure at least 10% near-zero cement and concrete for its projects by 2030. Both Holcim and Cemex were founding members of the collation of companies that intend to use their purchasing power to support sustainable technologies in hard to abate sectors. Commitments for the aviation, shipping, steel and trucking sectors were set at COP26 in Glasgow, aluminium and CO2 removal followed in May 2022 and chemicals and concrete were scheduled for November 2022. The latter has started to happen with the formation of the FMC’s cement and concrete group. Companies involved include ETEX, General Motors, Ørsted, RMZ Corporation and Vattenfall. Of these, Sweden-based energy producer Vattenfall has publicly said it is going for the 10% near-zero cement and concrete target by 2030.
Company | 2021 | 2030 Target | Notes |
Cemex | 591 | 480 | ESTIMATE, 40% less CO2/t of cementitious material compared to 1990 |
China Resources Cement | 847 | UNKNOWN | Emission intensity is for clinker |
CRH | 586 | UNKNOWN | 25% reduction in Scope 1 and Scope 2 CO2 emissions by 2030 (on a 2020 baseline) |
Heidelberg Materials | 565 | 500 | |
Holcim | 553 | 475 | |
UltraTech Cement | 582 | 483 | ESTIMATE, Reduction in CO2 emission intensity by 27% from FY2017 level by FY2032 |
Votorantim | 597 | 520 |
Table 1: Net CO2 emission intensity (kgCO2/t) for cement production at selected large cement producers.
While we wait for more announcements to escape from Sharm El Sheikh it might be worth reflecting upon one of the targets some of the cement companies have set themselves for 2030. Table 1 above compares the net CO2 emission intensity for cement production at some of the large cement producers. It doesn’t tell us much, other than that the CO2 emission intensity for these companies was in the region of 550 - 600kgCO2/t of cementitious material in 2021. This compares to 580kgCO2/t in 2020 for the GCCA’s Getting the Numbers Right (GNR) data for the companies it covers. The companies featured in Table 1 are all aiming – or appear to be aiming – for 475 - 525kgCO2/t by 2030. This may not sound like much but it has and will require hard work, innovation, investment and risk on the part of the cement producers. This is also before carbon capture, utilisation and/or storage (CCUS) units will have been built at most cement plants. Yes, until the CO2 emission intensity goes to down to zero, if cement production volumes keep rising sufficiently then total gross CO2 emissions from the cement industry will also increase. Yet, gross CO2 emissions from cement production are likely to peak sometime between now and 2030 if they haven’t already.
One sobering fact to end with is that 1990 is now further in the past than 2050 is in the future. If you can remember George Bush Sr as US president or you saw the film Goodfellas at the cinema then that’s the amount of time we have left to reach net zero. The global economic shocks of the post-coronavirus period and the war in Ukraine are stressing the world’s climate targets more than ever before. Let’s see how COP27 reacts to this. So far though, serious commitments to using low-carbon cement and concrete from big companies are a useful step to entrenching these products in the market.
India: UltraTech Cement has projected six-month cement capacity growth of 8.2% to 131Mt/yr by 31 March 2023, the end of the 2023 financial year. At the end of the first half of the 2023 financial year on 30 September 2022, its capacity was 121Mt/yr. In the third quarter of the 2023 financial year, UltraTech Cement expects to commence commercial operations at its upcoming 3.5Mt/yr Pali, Rajasthan, cement plant and upgraded Dhar, Madhya Pradesh, cement plant, to which it is adding 4.2Mt/yr in new capacity. The remaining new capacity consists of smaller capital expenditure investments in various sites across India. UltraTech Cement's chief financial officer Atul Daga forecast that the producer will invest a total of US$731 - 853m in capacity expenditure throughout the 2023 financial year.
The Business Standard newspaper has reported that UltraTech Cement expects to further increase its cement production capacity by 22% over the three years up to the 2026 financial year, to reach 160Mt/yr.
South Korea's nine-month Russian coal imports rise in 2022
25 October 2022South Korea: Russia exported 14.9Mt of cement in the first nine months of 2022, up by 31% year-on-year from 11.4Mt in the corresponding period of 2021. Tex Energy Report News has reported that this occurred due to sharp price rises in imported coal from Australia, Canada and Indonesia. Cement producers increased their reliance on these alternative sources of coal after the South Korean government placed sanctions on Russia in March 2022.
Meanwhile in India, Russian coal imports are expected to decline for a second consecutive month in October 2022, by 51% month-on-month to 730,000t. Russian media attributed this to stockpiling by cement market leader UltraTech Cement and others earlier in 2022.
UltraTech Cement's first-half 2023 financial year results show profit decline despite sales growth
20 October 2022India: UltraTech Cement's consolidated sales were US$3.51bn during the first half of the 2023 financial year, which began on 1 April 2022, up by 22% from US$2.88bn in the first half of the 2022 financial year. Its net profit was US$283m, down by 22% year-on-year from US$363m. This was due to a 32% cost rise to US$3.13bn from US$2.38bn. Power and fuel contributed 32% of costs at US$1bn, up by 68% from US$598m in the first half of the 2021 financial year.
UltraTech Cement said that it began to see signs of cement demand revival in September 2022, following traditionally subdued second-quarter demand due to seasonal rains.
India: Four UltraTech Cement cement products have received Environmental Product Declaration (EPD) certification. UltraTech Cement's ordinary Portland cement (OPC), Portland pozzolana cement (PPC), Portland slag cement (PSC) and Portland composite cement (PCC) all successfully underwent lifecycle assessment studies in line with EPD requirements.
The Aditya Birla subsidiary said that 70% of its cement sales consist of blended cement. It offers over 70 different GreenPro certified products across its range.
JSW Cement to acquire some India Cements assets
10 October 2022India: JSW Cement is 'closing in' on an acquisition of some of India Cements' assets in Madhya Pradesh and Rajasthan. The Business Standard newspaper has reported that JSW Cement beat an offer by UltraTech Cement for the Rajasthan assets.
India Cements began construction of a new 3Mt/yr cement plant with a dedicated limestone mine in Madhya Pradesh in 2022. In May 2022, it announced that it was contemplating a land sale in order to reduce its debt. India Cements ended the 2022 financial year with debt of US$369m, up by 1.4% year-on-year from US$364m at the close of the 2021 financial year.
UltraTech Cement to acquire India Cements’ Pawai limestone mine
03 October 2022India: UltraTech Cement and India Cements are reportedly poised to conclude a deal for the acquisition of the latter’s 185ha Pawai limestone mine in Panna, Madhya Pradesh, by Mumbai-based UltraTech Cement. Marketline News has reported that the Aditya Birla subsidiary expects to pay US$98m for the asset.
Jaiprakash Associates seeking to sell all assets
30 September 2022India: Jaypee Group subsidiary Jaiprakash Associates is reportedly seeking to sell its remaining assets after receiving a new insolvency bid from State Bank of India. The Times of India newspaper has reported that the company has previously sold US$4.92bn-worth of assets to pay off debts.
Jaiprakash Associates chair and chief executive officer Manoj Gaur said "We have kept faith in the law of the land and helped maximise recoveries of the bank. The setback is due to circumstances and issues such as the UltraTech deal. Our intent is to clear all the dues.”
The producer failed to sell a cement plant to UltraTech Cement under a US$2.05bn, 21.2Mt/yr cement capacity deal in 2017.
India: Police in Madhya Pradesh have arrested the head of human resources of a cement producer in connection with the killing of trade union leader. The victim, Manish Shukla, worked at a cement plant in Maihar in the district of Satna. The Times of India newspaper has reported that Shukla was fatally wounded in a knife attack by three men on 19 September 2022. His killing sparked protests outside the Maihar police station, in which other cement plant workers reportedly participated.
Maihar is the location of cement plants belonging to KJS Cement, Birla Corporation subsidiary RCCPL and Aditya Birla subsidiary UltraTech Cement.