Displaying items by tag: ACC

India: ACC's net income has fallen slightly to US$1.75bn in 2013. However its net profit rose by 3% to US$174m. By business segment, cement sales fell slightly to US$1.71bn in 2013. The Indian cement producer made the announcement in a statement of consolidated audited financial results. In its statement ACC made no provision for a US$180m fine imposed on it by the Competition Commission of India for alleged cartel-like behaviour as it believes it can successfully appeal the penalty.

India: ACC has commissioned a cement blending unit at Padubidri in Udupi district.

An ACC company spokesman said that the unit uses fly-ash from the thermal power plant of Udupi Power Corporation in Udupi. The unit is capable of blending 30,000t/month of cement. Clinker from ACC's plant at Wadi in Gulbarga district is used for cement production at the blending unit in Udupi district. The Udupi plant caters to the cement requirements of Karnataka and Kerala states.

India: Ambuja Cements and ACC, the Indian arms of Holcim, are likely to see top-level management changes in the coming months. Managing director (MD) of Ambuja Cements, Onne van der Weijde and MD of ACC, Kuldip Kaura, have offered to resign, according to industry sources. Additionally, the sources revealed that Sumit Banerjee, the former MD of ACC who had quit to join Reliance Cement, is likely to re-join ACC as the MD.

The management changes at ACC and Ambuja Cements have resulted from restructuring of the parent company, Holcim, which has been underway since July 2013. Holcim has appointed Bernard Terver as the head of Asia, replacing Paul Hugentobler, who retired in February 2014. Terver, a member of the Holcim Executive Committee, has been appointed to head of a region that encompasses Africa, the Middle East and the Indian subcontinent.

While van der Weijde is said to be unhappy with these management changes, Kaura is said to have been uncomfortable with the new structure, in which ACC will become a subsidiary of Ambuja Cements. Under the restructuring programme, an India management committee that is headed by van der Weijde, was to oversee the integration between the operations of Ambuja and ACC. The two MDs of Ambuja and ACC had to report to van der Weijde, which did not go down well with Kaura, according to unnamed sources. However, it's unlikely that Holcim will take any decision in haste, especially before the restructuring is approved by the Gujarat High Court, which is expected by April 2014.

Only after the court approval can Holcim receive full approval from the Foreign Investment Promotion Board (FIPB), as currently it is only a conditional approval that is subject to legal clearances. Any management change at this juncture will lead to a lot of questioning, which will put the spotlight back on the entire process.

India: Jammu police, acting on a tip-off, seized 169 bags of low quality cement from a cement shop. The cement was labelled as Ambuja and ACC Cement.

"The cement dealer was selling low quality cement as Ambuja and ACC Cement to make a profit," police said. The dealer, Subhash Chander and shop worker, Vijay Kumar, were both arrested. Investigations are on-going.

India: Holcim Group, which is under the process of restructuring its holdings in India, has appointed Bernard Terver as additional director on the board of ACC and Ambuja Cements with effect from 4 December 2013.

Terver graduated from Ecole Polytechnique, Paris, in 1976 and has worked in the cement industry for more than 35 years. He has been in the service of Holcim since 1994, holding senior positions including that of CEO of Holcim Colombia and Holcim US.

The board also re-appointed Kuldip Kaura as the CEO and MD for one year with effect from 1 January 2014.

India: Following the successful vote to re-structure Holcim's India operations, Ambuja Cements and ACC, the integration of common functions across the two companies has begun.

Holcim wants to eradicate the duplication of roles across the two companies that will aid in savings of US$144m through synergies in supply chain and fixed cost optimisation. The integration will see big changes for some of the two companys' 10,000 employees. Some will be relocated to the group's upcoming facilities as the cement makers have no plans to cut spending.

"The restructuring is about deriving further value from the Indian platform," said Anantharam Gopalkrishnan, vice president for the treasury and tax at Ambuja Cements.

Holcim intends to keep the two brands, Ambuja Cement and ACC, independent. It does not plan to launch the Holcim brand in India or market the two brands with the Holcim tag. When the integration process is completed, which is currently scheduled for 2015, Holcim intends to evaluate the full merger of the operating companies into one unified entity.

India: Ambuja Cements announced on 21 November 2013 that shareholders had approved a proposal by Swiss parent firm Holcim to rejig its Indian cement units, winning 377m of the 550m votes placed (68.5%). 173m votes were placed against the merger.

The resolution for the scheme of amalgamation between Holcim India and Ambuja Cements was passed through postal ballots with the majority of public shareholders voting in favour.

Holcim had proposed in July 2013 the restructuring of its Indian operations by merging subsidiary Holcim India with Ambuja Cements and transferring Holcim India's 50.01% stake in ACC to Ambuja, making it a holding company of ACC. Holcim now has a 61.4% stake in Ambuja.

Public institutional holders, which hold 614m shares in the company, cast 534m votes. Of them, 67.9% voted in favour and 32.0% against the merger. Other public holders cast 15.4m votes. Of these, 13.6m were in favour and 1.80m were against.

As per the new regulation of the market regulator SEBI, companies require approval from the majority of the minority shareholders for mergers and acquisitions.

Holcim claims that this transaction will further improve its holding structure in India, strengthen the platform for future growth and generate synergy benefits of US$144m/yr. "These benefits, which will be realised in a phased manner over two years, will be shared by both companies equally through supply chain," said Bernard Fontana, CEO of Holcim.

Austria: Ghassan Broummana has been appointed managing director of A TEC Group from 1 October 2013. As managing director Broummana will be responsible for sales and marketing within the A TEC and A TEC GRECO group.

Broummana started his career in 1987 designing and starting-up cement plants. In 1996 he joined Holcim Group Support in Switzerland where he developed and implemented various corporate initiatives. In 2004, he moved to Holcim's subsidiary in Thailand, Siam City Cement, to start up a new business unit preparing alternative fuels and raw materials from industrial and household waste.

In 2009 Broummana joined the managing committee and executive committee respectively of Holcim's subsidiaries in India, ACC and Ambuja Cements. Here he restructured Techport, the unified technical support service centre that provides expertise to both ACC and Ambuja Cements with the aim of improving the efficiency and effectiveness of over 25 integrated cement plants and grinding stations and managing all the major capital expenditure projects for both companies.

Broummana holds a Diploma in Electrical Engineering and a Diploma in Wirtschafts-Ingenieur (MBA) from the University of Dortmund. He has also completed a 'Program for Executive Development' at IMD-Lausanne and 'Advanced Management Program' at Harvard Business School, US.

India: ACC will set up a 1.5Mt/yr cement grinding plant in Kharagpur in West Midnapore district, its Chief Executive (East) Vivek Chawla has announced. Building of the US$88.4m project is planned to start by January 2014.

"The company will invest US$88.4m for setting up the 1.5Mt/yr factory at Kharagpur," said Chawla.

India: Multinational buildings material producer Holcim has released plans to simplify its structure in India by merging Holcim India with its subsidiary Ambuja Cements. Both Holcim's Indian subsidiaries, Ambuja and ACC, have seen net profits fall in the second quarter of 2013.

Holcim intends to increase its shares in Ambuja to 61.39% and Ambuja will acquire Holcim's 50.01% stake in ACC. Both Ambuja and ACC will continue to operate as separately with their own brands. However, the restructuring will allow for closer back-end cooperation between the companies as well as simplifying the group structure.

"This transaction further improves Holcim's holding structure in India, strengthens the platform for future growth and is expected to generate synergy benefits of US$150m/yr. These benefits, which will be realised in a phased manner over two years, will be shared by both companies equally through supply chain, shared services and fixed costs optimisation. The transaction is expected to be neutral on Holcim's EPS in the first full year following the completion of the transaction and accretive thereafter," said Holcim CEO Bernard Fontana.

In a two stage deal, Ambuja will first acquire, through a purchase, a 24% stake in Holcim India for a cash consideration of around US$600m, followed by a stock merger between Holcim India and Ambuja. As part of the merger, Holcim will receive 584 million new equity shares in Ambuja resulting in an increase of its ownership in Ambuja from the current 50.55% to 61.39%.

The transaction is subject to Ambuja's shareholder and regulatory approvals in India.