Displaying items by tag: India
Cement manufacturing cost to increase by US$0.11 – 0.16/bag
27 February 2015India: The manufacturing cost for cement is likely to go up by US$0.11 – 0.16/bag due to the proposed freight hike on various inputs and the cement itself. "The cost of production will go up in the range between US$0.11 – 0.16/bag," said a cement company spokesperson. He added that cement producers would most likely pass on the costs to their customers.
The Railway Budget proposals plan to increase freight rates of coal and slag, used in the manufacturing of cement, by US$0.74/t and by US$0.34/t respectively. A hike in cement freight rates of US$0.34/t has also been proposed, however, a reduced freight on limestone, by US$0.04/t, is also in the proposal.
"The freight rate hike is likely to increase our cost of production in the range between US$0.03 – 0.06/t. However, price is determined by demand and supply," said Mahendra Singhi, whole-time director of Dalmia Bharat Cement. Jaypee Cement's whole-time director Shiva Dixit said that although the freight rate hike would have an impact on input prices, they would wait for the main Budget to see the cost implication.
Dalmia Cement increases its stake in OCL India to 74.6% for US$165m
26 February 2015India: Dalmia Cement has raised its stake holding in OCL India from 48% to 74.6% through an inter-se share transfer within the promoter group. It acquired a 4.13% stake from Mridu Hari Dalmia and a 22.45% stake from Mridu Hari Dalmia Parivar Trust at a share price of US$10.9 though open market transactions. The deal is worth US$165m. Since the deal involves inter-se transfer, it will not trigger an open offer for OCL India, despite breaching the creeping acquisition limit of a listed firm.
As part of consolidation and growth of the cement sector, Dalmia Bharat Group has been strategically acquiring assets and creating new assets in southern, eastern and northeastern India. OCL India has plants in Odisha and West Bengal. With Dalmia Cement increasing its stake in OCL India, Dalmia group will have 48% of its capacity in south India and the remaining 52% in east and northeast India.
"The move will help to create better operational synergies. It is a step forward in the commitment towards aligning all stakeholders' interests and overall value creations," said Dalmia Bharat. Dalmia Group expects to have a total capacity of 24Mt/yr in the 2015 – 2016 financial year through both greenfield and brownfield projects.
Persio Morassutti appointed as director of Shree Digvijay Cement
25 February 2015India: Shree Digvijay Cement Company has reported that Persio Morassutti has been appointed as a director. He will replaces Osvaldo Ayres Filho following his resignation.
Mangalam Cement director Shri K K Mudgil dies
25 February 2015India: Mangalam Cement has reported that Shri K K Mudgil, a non-executive independent director of the Company died on 20 February 2015 in New Delhi.
LafargeHolcim asked to divest assets in eastern India by CCI
23 February 2015India: The Competition Commission of India (CCI) has requested that LafargeHolcim divest some of its units, including limestone reserves, to prevent a monopoly in eastern India.
When Lafarge and Holcim initially announced their intention to merge operations in April 2014, they proposed a series of asset divestments in countries where they had a significant market share, but India was not among them.
After prima facie investigations by the CCI revealed that the combination would likely have an appreciable adverse effect on competition, especially in eastern India, the CCI launched, what it calls, Phase II investigations. It put the merger proposal in public scrutiny under Section 29(3) of the Competition Act, 2002 and invited comments from stakeholders including competitors. The CCI has now stated that the merger proposal is fine, but certain assets must be divested in eastern India.
According to local media, the assets can be sold to a company that is not a competitor. LafargeHolcim has 30 days to respond to the CCI's suggestions.
UltraTech wins coal block in Madhya Pradesh
23 February 2015India: On day six of India's coal block auction, 20 February 2015, UltraTech Cement won the Bicharpur coal block in Maharashtra for a price of US$48.2/t. The block contains coal deposits of 29.1Mt. UltraTech's parent company, Aditya Birla Group, has already won three blocks so far in the on-going coal block allocation auctions.
UltraTech and Hindalco Industries win coal mines in India’s auction
20 February 2015India: Day six of India's coal block auctions, on 19 February 2015, saw UltraTech Cement win the Bicharpur mine in Madhya Pradesh, which has 29.1Mt of coal reserves, for a bid of US$48.3/t. UltraTech beat ACC, Hindalco Industries, Jaypee Cement and OCL India, among others.
Aditya Birla Group's Hindalco Industries won the Gare Palma IV-5 block for US$56.3/t. The mine has estimated extractable reserves of 42.4Mt. It beat a number of rivals, including Ambuja Cement. Jindal Power Ltd won the Gare Palma IV-2 and 3 coal mines in Chhattisgarh, which have extractable coal reserves of 156Mt, for an estimated US$270m.
MCL to restart Cherthala grinding plant
19 February 2015India: Malabar Cements Limited (MCL) will resume operations at its Cherthala grinding plant in Alappuzha, Kerala on 26 February 2015. Managing director K Padmakumar said that a ship carrying 27,010t of clinker intended for the plant had reached the Cochin port from Fujairah, UAE.
Padmakumar said that the Cherthala plant would have 600t/day of capacity and required 1.2Mt/yr of clinker. The plant stopped functioning in 2009 due to a shortage of clinker, though its profit was around US$644,000/yr. MCL's Walayar cement plant in Kerala was not able to share its clinker production with the Cherthala plant.
Clinker is now sourced through e-tenders. The company that won the e-tender has assured the management of uninterrupted supply of clinker throughout the year. The price is lower than the clinker it previously sourced from the Cement Corporation of India. "As per the arrangement, MCL can save US$16.1/t," said K Abdul Samad, chief mechanical engineer of MCL. With the Cherthala plant back on stream, the production capacity of MCL would grow to 200,000t/yr.
Aditya Birla’s Hindalco Industries wins another coal mine in auction
19 February 2015India: Aditya Birla's Hindalco Industries has won the Gare Palma IV/5 mine in Chhattisgarh, outbidding a number of companies, including Ambuja Cements, on day five of India's coal mine auction. The winning bid was US$56.4/t and the mine has extractable reserves of 42.4Mt. This is Hindalco Industries' second winning bid in the auction.
Potential merger of Ambuja Cement, ACC and Lafarge India
19 February 2015India: Ambuja Cement, ACC and Lafarge India may merge as part of the proposed global merger of Lafarge and Holcim, according to local media. The plan is still at an early stage and LafargeHolcim have mandated investment bank Lazard to advise on the restructuring of their Indian operations. The most likely option is the merger of ACC, Ambuja and Lafarge India into one listed entity to create the largest cement company in India. The combined cement production capacity of the three subsidiaries would be some 70Mt/yr.
As part of the new restructuring proposal, LafargeHolcim may reassess Holcim's restructuring of ACC and Ambuja, which was announced in 2014 and is currently incomplete. As part of the plan, shareholders of Ambuja had approved ACC's stake acquisition from Holcim.