Displaying items by tag: India

India: FCI Aravali Gypsum and Minerals India Limited (FAGMIL) is preparing to build a 1000t/day white cement plant in Himachal Pradesh. The state-run company, under the control of the Department of Fertilizers, Ministry of Chemicals & Fertilizers, has received a letter of intent from the state government of Himachal Pradesh granting it a mining lease to support building a white cement plant. This will be followed by the signing of a memorandum of understanding between FAGMIL and the state government.

The lease area is 108 hectares and it is located near Nohra Dhar Village, Tehsil Sangrah in the Sirmour District. Limestone from the site will be used to support a white cement plant. A pre-feasibility study has been completed by the National Council for Cement and Building Materials, Ballabgarh in Haryana and further planning activities are in progress.

India: Coal India plans to supply 4.65Mt/yr of coal to the cement industry via online auctions until 2023. Of this amount 1.14Mt/yr will be despatched by railway and the rest by road, according to a Coal India executive quoted by the Economics Times newspaper. Most of the coal will be supplied by Coal India’s subsidiary South Eastern Coalfields with the rest sourced from Western Coalfields, Mahanadi Coalfields and Eastern Coalfields. Bharat Coking Coal and North Eastern Coalfields are not part of the auction, as they do not offer any coal to the cement sector.

India: The board of Birla Corporation has confirmed plans to build a new 3.9Mt/yr cement plant at Mukutban in Maharashtra. The unit will also include a 40MW captive power plant and a 10.6MW waste heat recovery system. The project has an investment of US$356m and it is intended to be completed by early 2022.

The cement producer says it has acquired land, mineral concessions and environmental clearance for the plant. It added that the proposed site has good railway and road links. The project is also eligible for an ‘attractive fiscal incentive’ from the state government of Maharashtra.

Birla Corporation operates a grinding plant at Butibori in Maharashtra through its Reliance Cement subsidiary.

India: Penna Cements is close to starting operations at its new terminal at Cochin Port in Kochi, Kerala. The 0.8Mt/yr unit at Ernakulam wharf includes a bagging plant and it has an investment of just under US$9m, according to the Hindu newspaper. Once it opens it will join Zuari Cement, Ambuja Cement and UltraTech Cement, which also operate from the port.

India: The Industries Department of Himachal Pradesh is preparing to allow construction work to start at a new cement plant at Sikridhar in the Chamba district in September 2018. The project is a long running scheme from the local government that was first mooted in 2002, according to the Times of India newspaper. The project has been linked to various companies previously including Jaiprakash Associates.

India: RHI Magnesita plans to merge its three local subsidiaries, RHI India and RHI Clasil with Orient Refractories. On completion of the proposed merger RHI Magnesita will own about 70% in Orient Refractories which will be renamed RHI Magnesita India. The transaction is expected to be complete by mid-2019.

“The proposed merger of our Indian subsidiaries marks an important milestone towards expanding RHI Magnesita’s market leadership in the refractory market in India. One strong, integrated organisation and management will increase long term value for all stakeholders and efficiently combine resources and capabilities. This merger will significantly enhance the profile of RHI Magnesita in India and creates a stronger foundation to tap the immense growth potential we see in the Indian market,” said Stefan Borgas, chief executive officer (CEO) of RHI Magnesita.

Orient Refractories is currently 70% owned by RHI Magnesita. It is a manufacturer and supplier of special refractory products, systems and services for the steel industry. RHI India, a wholly-owned RHI Magnesita subsidiary, is the local sales company of RHI Magnesita group offering a range of refractories and related services sourced from various RHI Magnesita group entities to Indian customers. RHI Clasil is 53.7% owned by RHI Magnesita. It is a manufacturer and supplier of mainly alumina-based refractories for steel and cement.

This merger is part of RHI Magnesita’s strategic pillar ‘markets’ that focuses on building a global presence with strong local organisations and solid market positions. India’s growth prospects in the refractory market derive primarily from the steel sector, which is RHI Magnesita’s largest customer industry.

Once the merger is complete the new company will operate two production plants and employ over 700 workers. The proposal is subject to shareholder and regulator approval.

India: Emami Group is considering an initial public offering (IPO) for its cement subsidiary, Emami Cement. The IPO is intended to generate funds for expansion, according to sources quoted by the Hindu newspaper. The company has appointed a consultant to explore public issue prospects and preliminary discussions have started with merchant bankers. The cement producer has invested over US$575m to double its production capacity to 8Mt/yr from 4.4Mt/yr in the current financial year with plants in Chhattisgarh, West Bengal, Bihar and Odisha.

India: Shree Cement’s profit fell in the quarter that ended on 30 June 2018 due to higher power, fuel and logistic costs. Its profit dropped by 36% year-on-year to US$40.7m from US$64.1m in the same period in 2017. However, its income rose by 5.4% year-on-year to US$461m. During the reporting quarter the cement producer commissioned a cement grinding mill at its Kodla cement plant in Karnataka, it purchased a railway terminal at Hathbandh in Chhattisgarh and it acquired a majority stake in Union Cement in the UAE.

Switzerland: LafargeHolcim’s first half profit fell by 43% from Euro561.8m in 2017 to Euro320.3m in 2018. Sales rose by 2.7% to Euro11.45bn. Under new CEO Jan Jenisch, who took over in September 2017, the company has been slashing costs, announcing earlier in 2018 that it will close its head offices in Zurich and Paris and shed around 200 jobs as it aims to save Euro345.2m/yr by the end of first quarter of 2019.

Jenisch said he was pleased with the sales growth, particularly the acceleration during the second quarter, when sales increased by 5%, up from a 2.7% rate in the first three months of the year.

"Operational issues in some markets have been addressed and we expect to deliver increasing margins as we capture the upward trend in demand through the second half of 2018," said Janisch. "We had a couple of plants where I was not happy that the output was not in line with market demand. We have made sure we can maximise their output in the second half."

Sales were supported by strong growth in India, one of the company's largest markets, where its subsidiary Ambuja Cement posted a 27% increase in profit during the second quarter. However, losses in Africa weighed heavily on the firm, with the regional unit reporting a loss after being hit by higher finance charges and losses from its South African business.

Jenisch said that the Africa and Middle East region will remain tough, while adding that the company would press ahead with its disposal programme. It aims to raise about US$1.73m from selling cement plants."We are on track here. We have done our portfolio review and will hopefully announce something later this year," said Jenisch. "However, there is nothing I can talk about at this time."

India: Credit rating agency ICRA has said that the demand for cement in India is likely to grow by around 6% in the current financial year, which ends on 31 March 2019. In its latest report on the sector, it said this would be due to a pick-up in the affordable and rural housing segment and infrastructure, primarily in road and irrigation projects.