Displaying items by tag: Dalmia Bharat
Locals stage armed protest against Dalmia Cement (Bharat)’s Katamateru cement plant plans
10 January 2022India: Locals in Odisha’s Malkangiri district gathered in the town of Katamataru on 9 January 2022 to protest plans for the establishment of a new Dalmia Cement (Bharat) cement plant in the area. The New Indian Express newspaper has reported that protestors allege that the state government did not conduct the proper tendering procedures for the proposed plant. More than 2000 people, wielding traditional tribal weaponry, gathered at an assembly. They resolved not to vote at upcoming village council elections if the government continues not to listen to their objections.
Dalmia Cement Bharat managing director and chief Mahendra Singhi named Person of the Year
21 December 2021India: First Construction Council and the Indian Cement Review have named Dalmia Cement Bharat managing director and chief executive officer (CEO) Mahendra Singhi as Person of the Year at the Cement Expo on Cementing India’s Future for the 2022 financial year. Singhi won the title for his exemplary contribution towards transformational changes in the Indian and global cement sectors, significantly facilitating the transition to a more circular economy. Singhi is the previous president of the Indian Cement Manufacturers Association (CMA) and the previous chair of the National Council for Cement and Building Materials (NCCBM). He has achieved recognition as a Conference of the Parties (COP) 26 Business Leader and a World Bank Group Carbon Pricing Champion.
Singhi said “I am honoured to receive this award on behalf of people with whom I worked in the last 43 years in various companies who have shaped my clean and sustainable journey and I dedicate this award to them. I feel fortunate that I have been able to have visionary mentors and committed colleagues who could support my cemented journey.” He added “I am hopeful about the future as we transition towards newer business models that will drive us to remain profitable, ensure value creation and, at the same time, achieve environmental sustainability.”
Dalmia Cement details Bokaro grinding plant expansion plans
06 December 2021India: Dalmia Cement plans to invest US$75.2m in a 2.6Mt/yr expansion to its Bokaro grinding plant in Jharkhand. The company says that the work will increase the plant’s capacity by 70% to 6.3Mt/yr from 3.7Mt/yr. US$33.2m will go towards the installation of new solar power plant. The company will also set up a waste management facility at the site, using US$1.06m of the investment.
Managing director Puneet Dalmia said “As we are further investing in the Eastern India market to participate in its economic growth story, we are also taking our corporate responsibility seriously by placing the utmost importance on environmental protection and social impact. We are confident that the employment generated through our investments and the skill enhancement in our social initiatives will help create a progressive ecosystem where we help people become independent and self-sufficient. We are excited and look forward to partnering with the state to achieve our business, social and sustainability goals.”
Dalmia Cement obtains Indian Green Building Council’s GreenPro label for blended cement portfolio
06 December 2021India: The Indian Green Building Council (IGBC) has certified the sustainability claims of Dalmia Cement’s portfolio of blended cements. The portfolio consists of composite cement, Portland pozzolan cement and Portland slag cement. The council employed a full-cycle assessment of the cements’ impacts.
Head of sales, marketing and logstics Sanjay Wali said “We see GreenPro’s accreditation as a milestone in our journey to becoming carbon-negative by 2040. This also reaffirms our blended cement products’ green supremacy, which is accelerating the global transition from a grey to green reality.”
Dalmia Cement hears locals' concerns over Bokaro cement plant plans
01 December 2021India: Dalmia Cement has presented its plans for its planned Bokaro, Jharkhand, grinding plant expansion and heard locals' concerns at a community meeting. The company said that the plant would increase local employment and agreed to compensate communities impacted by its operations. The plans consist of the installation of 2Mt/yr-worth of new grinding capacity on 0.1ha of land.
Dalmia Cement commits to 100% low carbon cement production 2031
09 November 2021India: Dalmia Cement plans for 100% of its cement to be low carbon by 2031. The company has a US$405m carbon capture and utilisation (CCU) investment plan to help it to realise its goal. It will also undertake carbon offsetting measures.
Business Line News has reported that the company plans to spend US$1.35bn to increase its installed cement capacity by 52% to 50Mt/yr from 33Mt/yr before the 2024 financial year.
Dalmia Bharat increases cement sales, earnings and profit in first half of 2022 financial year
28 October 2021India: Dalmia Bharat’s consolidated cement sales in the first half of the 2022 financial year were 5.1Mt, up by 6.2% year-on-year from 4.8Mt in the first half of the 2021 financial year. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) grew by 1.6% to US$178m from US$176m. The company recorded a net profit of US$67.1m during the period, up by 19% from US$56.3m. During the second quarter of the year, which ended on 30 September 2021, Dalmia Bharat commissioned a second line at its Cuttack, Odisha, cement plant and began trial production at its newly acquired Murli cement plant in Maharashtra.
The Orissa Diary newspaper has reported that managing director Puneet Dalmia said "We are pleased with our performance during the quarter. In spite of unprecedented costs related headwinds across all regions, our razor sharp focus on operational efficiencies and execution has helped us contain our costs and deliver an industry-leading performance. We have made considerable progress on our immediate priorities, including expanding our capacity, driving organisational transformation, reinforcing our brand and redefining our corporate governance framework. Looking ahead, we remain focused on further strengthening our momentum to drive sustainable and profitable growth and generate top-tier returns for our stakeholders.” He continued “As India's economy continues to rebound from the lows of last year, we expect the demand and pricing environment for the sector to improve for the rest of the 2022 financial year."
Dalmia Cement commences operations at expanded Kapilas cement plant
27 September 2021India: Dalmia Cement has begun cement production at the new 2.3Mt/yr Line 2 of it Kapilas cement plant near Cuttack in Odisha. The plant now commands a production capacity of 4.0Mt/yr.
India: Dalmia Cement has signed three memoranda of understanding with the state government of Jharkhand. The memoranda provide that the Dalmia Bharat subsidiary will invest US$104m in expanding its cement operations in the state. The producer’s plans consist of a US$68.5m upgrade and capacity expansion to its Bokaro cement grinding plant. The project will increase the existing production line’s capacity to 3.7Mt/yr and add a new grinding line, bringing the total plant’s capacity to 6.3Mt/yr. In addition the cement producer will spend US$34m towards building a solar power plant and the remainder will be spent on setting up a waste management facility.
India’s ever-expanding cement capacity
11 August 2021Dalmia Bharat managing director Puneet Dalmia characterised India’s cement industry as one of ‘many regions and many players’ in an interview on 10 August 2021. It is equally an industry of many plants – which are seemingly larger and more numerous by the week.
On 9 August 2021, Orient Cement announced an investment of US$215m to increase its Devapur, Telangana, cement plant’s capacity by 53% to 11.5Mt/yr from 7.5Mt/yr. Another Southeast Indian producer, Ramco Cements, plans to invest a total of US$135m in upgrades in the 2022 financial year; it completed US$53.9m (40%) of the planned investments in the first quarter alone. NCL Industries is planning a US$13.5m expansion of its 2.7Mt/yr Mattapalli, Telangana, cement plant by 33% to 3.6Mt/yr and the establishment of a new 0.66Mt/yr grinding plant at nearby Anakapalle for US$26.9m by 2022. Thus, a single state has at least 5.56Mt/yr-worth of new capacity in the pipeline with US$337m-worth of pending investments. If the central government grants the Telangana government’s 6 August 2021 request to reopen Cement Corporation of India’s Adilabad cement plant in the state, this will be joined by a further 4.0Mt/yr of ‘old’ capacity.
Nationally, investments in on-going cement plant projects total US$1.81bn. What is remarkable here is the continued drive to expand despite existing overcapacity. Puneet Dalmia estimates that Indian capacity utilisation will be 70% in 2021. Despite this, his company plans to increase its installed capacity by 17% to 36.0Mt/yr in the (current) 2022 financial year and by 57% to 48.5Mt/yr with the realisation of all on-going projects by the 2024 financial year, from 30.8Mt in August 2021. By 2030, the group aims to more than triple its installed capacity to over 110Mt/yr. Dalmia says that, if it is to achieve this, it will be not as another South and East Indian regional company, but a ‘pan-India, pure play cement producer.’
Dalmia’s confidence is founded on the belief that overcapacity will abate. His assurance is more than just that of an investor: when, in July 2021, the Department for Promotion of Industry and Internal Trade established an advisory body, the Cement Industry Development Council (CIDC), to help tackle the oversupply issue, it appointed him as chair. Puneet Dalmia predicts that capacity utilisation will rise to 85% ‘within a few years’. Consolidation is key: over the same hazily defined time period, the top five producers’ 57% share of the cement market will rise to 65%, he believes. Rising fuel costs and restrictive limestone mining licencing will deter would-be cement plant start-ups; anticipated carbon costs should clear away a lot of old wood.
Demand is the other half of the coin in India’s attempt to pitch market forces against overcapacity. In the first quarter of the 2022 financial year, cement demand fell by an estimated 20% amid the Covid-19-led collapse of rural housing’s bagged cement uptake. This type of sales roughly accounts for a third of Indian cement consumption. Other construction segments have proved more resilient. Prime Minister Narendra Modi’s government, never infrastructure-shy, chose to resume national projects after India’s Covid-19 lockdown ended on 10 May 2020, keeping them running through subsequent waves of the pandemic. The National Highways Authority of India (NHAI) continued with 480 projects covering 25,000km of road. In Andhra Pradesh, the state government is building 122,000 new homes. Cement producers have been able to corner pent-up demand to shift their stock at a generous margin.
The Confederation of Real Estate Developers' Associations of India (CREDAI) claimed on 9 August 2021 that the price of cement is hampering the realisation of affordable housing targets, and lobbied the government to reduce the goods and services tax on cement to 18% from 28%. In parts of the country, state governments have taken the matter into their own hands. The Kerala government set out to take over 25% of the Keralan cement industry on 5 July 2021. Its plan: increasing cement production, a policy which it is already implementing via state-owned Malabar Cements and Travancore Cements.
Puneet Dalmia claimed on 10 August 2021 that India’s per-capita cement demand is 200kg/yr, corresponding to a total national demand of 276Mt/yr and 60% below the purported global average of 500kg/yr. Given India’s development trajectory, growth is nearly inevitable. Puneet Dalmia is unequivocal in his medium-term prediction: Indian cement revenues will rise at a rate of 9–10% per annum, outstripping forecast gross domestic product (GDP) growth by 2%.
Indian cement’s tale of rebound and growth is borne out in the latest financial reports. UltraTech Cement’s first-quarter sales in the 2021 financial year were US$1.59bn, up by 54% year-on-year from US$1.03bn in the first quarter of the 2020 financial year. Its cement sales rose by 47% in the period to 21.5Mt from 14.6Mt. In its 2021 first-half report, Ambuja Cements recorded year-on-year sales growth of 41%, to US$930m from US$659m, and cement sales growth of 36% to 13.5Mt from 9.95Mt. This is echoed both in the other Indian producers’ reports and internationally: France-based Vicat named India alongside its home country as an area of particular sales growth in the first half of 2021, especially in the second quarter.
The UN Intergovernmental Panel on Climate Change’s demonstration of the impacts of human activity on the climate in a report published on 9 August 2021 might lead an observer to ask “What’s the good?” in all this growth. In the face of the immense benefits cement offers to the lives of Indians, a more pertinent question would be “How best can growth happen?” Ambuja Cement’s aforementioned plan to grind clinker with fly ash is a step in the right direction. Another is Vedanta Aluminium’s proposed fly ash and bauxite residue supply deal, for which it is seeking a cement industry partner. The new Cement Industry Development Council’s remit extends to the coordination of the sector’s efforts towards maximising efficiency and eliminating waste. ACC and Ambuja Cements are participating in parent company Holcim’s Plants of Tomorrow programme, which aims to increase the efficiency of cement production through better plant optimisation, higher plant availability and a safer working environment. Dalmia Bharat has a goal of net zero CO2 cement production by 2040, and a plan for getting there.
Pan-Indian producers are on the rise. Big companies desperate to modernise and implement their models of sustainable growth are blazing a trail. The size gains will be a national marvel - if the promises of sustainability are realised. What will be lost is the Indian cement industry’s festival of local and regional producers. Though still an industry of many regions and many players, its regions are increasingly close together, its players increasingly few.