Displaying items by tag: India

India: Prism Cement's net profit rose by 463% to US$9.73m in the fourth quarter of its 2015 financial year, which ended on 31 March 2015, compared to US$1.73m during the prior year quarter. Sales rose by 0.55% to US$240m in the fourth quarter of the 2015 fiscal year compared to US$239m in the same quarter a year earlier.

For the full year that ended on 31 March 2015, Prism Cement's net profit was US$2.31m compared to a net loss of US$12.9m during the full 2014 financial year. Sales rose by 12.7% year-on-year to US$877m in the 2015 financial year.

India: Aditya Birla Group´s UltraTech Cement plans to merge the cement division of BK Birla-owned Century Textiles and Industries, Century Cement, in a share-swap proposal with a deal value of US$1.64bn. The transaction, if approved by the boards of both companies, would help UltraTech add 13Mt/yr to its existing capacity of 65Mt/yr, taking it to the total of 78Mt/yr.

India: The Meghalaya High Court has approved the de-merger plans between Star Ferro and Cement Ltd (SFCL), Shyam Century Ferrous Ltd and their respective shareholders. The company's board had approved a de-merger scheme in 2014 under which a new company, Shyam Century Ferrous Ltd, was formed to separate the company's ferro alloy division as part of an overall business reorganisation plan.

India: Birla Corporation has reported a 9% growth in its standalone net profit at US$4.45m for the quarter that ended on 31 March 2015. Its total standalone income rose marginally to US$125m in the quarter of the last fiscal from US$124m in the prior year period. During the fourth quarter of its 2015 financial year, cement production declined by 2.7% year-on-year to 1.87Mt. Cement dispatches also fell by 1.31% to 1.88Mt during the period.

During the 2014 - 2015 financial year, cement production was up by 3.77% year-on-year to 7.62Mt, while cement dispatches rose by 4.42% to 7.67Mt. Birla Corp's consolidated net profit during the year rose by 35% year-on-year to US$27.4m from US$20.3m in the same period of the previous year. Revenue grew by 6% year-on-year to US$502m.

"Barring the first quarter of the current financial year, cement demand and prices remained sluggish. East, North and Central markets, in particular, were the worst hit," said Birla Corp. Weak monsoon and widespread unseasonal rain during the last quarter of the year in the North and Central parts of the country reduced cement demand.

The performance of the company was 'severely impacted' due to coal shortages. According to Birla Corp, it had to procure coal from the open market, including imports, at a substantially higher cost. "The grid power rates have gone up. Also, the cost of power generation by the company increased due to the purchase of coal from the open market. Though road freight cost came down during the year on account of lower diesel prices the saving was negated by higher railway freight," it added. High limestone costs also added to the production cost.

"With the prediction of weak monsoon in the current financial year, the demand from the rural market may be impacted adversely," said Birla Corp. However, initiatives such as developing infrastructure, smart cities, 'Make in India,' concrete roads and an increase in the allocation of funds to states is likely to help improve the demand. "While signals are positive, ground-level actions will help 'rev up' the economy. It is expected that the demand - supply mismatch will reverse for the better, with a slower pace of capacity addition. Proposed implementation of Goods and Services Tax (GST) is expected to simplify the tax structure, benefiting the cement industry."

India: Dalmia Cement has commissioned its 7000t/day greenfield cement plant, 5000t/day clinker plant and a coal-based power plant at Yadwad, Belagavi, Karnataka. Out of the total 40MW of power production capacity, 27MW has been commissioned and the remaining capacity will be commissioned in the future.

India: The Competition Commission of India (CCI) has cleared Ultratech Cement's proposed US$853m deal to buy two cement plants from Jaiprakash Associates in Madhya Pradesh. The acquisition is for a 2.6Mt/yr cement plant in Bela, with a 25MW captive power plant, and a 2.3Mt/yr cement plant in Sidhi with a 155MW captive power plant, according to the Economic Times.

"Looking at the details of the matter, the combination would not have any adverse impact on the market," the CCI order said.

UltraTech's cement production capacity will rise to 65Mt/yr. The company has set a target to reach 71Mt/yr by 2016. Following the sale Jaiprakash Associates, also know as Jaypee Group, will remain the country's third largest cement producer with a production capacity of 22Mt/yr.

India: UltraTech Cement has reported a 24% drop year-on-year in consolidated net profit at US$103m for the fourth quarter of 2014 - 15, mainly due to a US$18.5m fine imposed by the Competition Commission of India for cartel accusations. This compared to a US$136m net profit for the same period in the 2013-14 year. Turnover rose by 4.47% to US$1.04bn for the fourth quarter from US$993m.

During the quarter, the company commissioned a 2Mt/yr cement plant and a 10MW waste heat recovery system in Rajasthan, and a 6MW waste heat recovery system in Karnataka.

For the financial year that ended on 31 March 2015, the Indian cement producer reported a 4.88% drop year-on-year in its net profit to US$330m. Its turnover rose by 12.5% to US$3.83m. Cement and clinker sale of grey cement rose to 44.9Mt during the year from 41.5Mt in 2013 – 14. White cement sales rose slightly to 1.22Mt from 1.14Mt. The company raised its cement production capacity to 60.2Mt/yr during the 2014 – 15 financial year after it acquired cement plants from the Jaypee Group.

"With the focus on development of the infrastructure and housing sector, the company is positioned across the country to meet the rise in demand and participate in the next phase of growth in the country," said UltraTech Cement in a statement.

India: Century Textiles & Industries is reportedly planning to sell its cement business and merge it in an all-share deal with India's largest cement maker UltraTech. Both companies are in the final stages of a plan to merge the cement businesses, according to local media.

Once approved by shareholders, the merged entity's cement production capacity would total 87M/yr. This would help UltraTech achieve 100Mt/yr ahead of its target of 2020. UltraTech would gain access to the eastern market while strengthening its presence in Maharashtra, Chhattisgarh and Madhya Pradesh.

India: Shree Cement has completed the second phase of its Ras plant in Rajasthan, which will take its cement production capacity up by 2Mt/yr. "The company has completed the phase two of Ras New Cement Unit at Bangur City, Ras, Rajasthan and enhanced its cement production capacity by 2Mt/yr with effect from 9 April 2015," said Shree Cement in a statement.

India: The Cement Manufacturers Association (CMA) is seeking a tax on cement imports to provide a level playing field to the industry.

In a memorandum to various Union Ministries on 10 April 2015, the CMA said that cement was allowed to be imported into India at zero import duty, whereas all the major raw materials required to make cement such as limestone, gypsum, pet coke and packing bags attract import duties.

"To provide a level playing field, the basic customs duty should be levied on imports of cement into India and import duties on goods required for the manufacture of cement be abolished and freely allowed without levy of duty," said the CMA. The CMA also said that there is a case for rationalisation of domestic taxes on the cement sector in order to make it competitive.

"The value-added tax (VAT) on steel is only 4% whereas it is 12.5 – 15% on cement and clinker in different states. Thus there is a need to slash the tax burden by 20 – 25% through rationalisation and lowering of the excise duty to 6 – 8% without the addition of any specific duty," said the CMA. It also demanded that cement be stipulated as 'declared goods' to put it on equal footing with goods like coal and steel and an element of royalty be included in the calculation of drawback rates.