Displaying items by tag: Penna Cement

India: Penna Cement has filed for an initial public offering (IPO) worth US$212m. It plans to offer US$34m-worth of shares for sale and to issue equity shares worth US$177m. United News of India has reported that part of the money raised will fund capital expenditure (capex) investments worth US$58m. The company’s plans consist of a second line at its Krishnapatnam grinding plant in Andhra Pradesh, an upgrade of raw materials and clinker grinding at its integrated Talaricheruvu plant in Andhra Pradesh, and new waste heat recovery (WHR) units at its Talaricherevu plant and its integrated Tandur plant in Telangana. It additionally plans to repay previous loans.

India: Cement producers in southern India have joined together to form the South Indian Cement Manufacturers’ Association (SICMA). United News of India has reported that the association aims to serve as an intermediary between producers and federal and state governments. In this, it says that it will help to realise Prime Minister Narendra Modi’s vision of ‘affordable housing for all’ and ‘infrastructure for future.’ The India Cements vice-chair and managing director Narayanaswami Srinivasan will head the new organisation, supported by Barathi Cement’s director Ravinder Reddy as vice-president and Penna Cement’s director Krishna Srivastava as secretary.

SICMA alleges that the construction industry has exaggerated the effects of rising cement prices on its costs. In so doing, the association says, it has deprived the public of the housing the government had planned. It added that, with around 30% of India’s limestone reserves situated in Andhra Pradesh, Karnataka and Telangana alone, the South has the potential to become a cement hub for development across India, as well as for export.

India: Penna Cement has received approval from the Securities and Exchange Board of India (SEBI) for a US$220m initial public offering (IPO). The company intends to use the funds to pay off debts and for general corporate purposes, according to the Hindu newspaper. The cement producer operates four integrated plants and two grinding plants in Andhra Pradesh, Telangana and Maharashtra that share a total production capacity of 10Mt/yr.

India: Penna Cement has signed a five years freight tariff deal with South Central Railway (SCR). As part of the agreement the rate will remain fixed for one year, according to the New Indian Express newspaper. The contract also offers incentives including discounts if the freight volume exceeds the previous year’s amount. Penna Cement is the eighth company to sign such an agreement with the SCR.

India: Penna Cements has started operating its terminal and bagging plant at Cochin Port in Kochi, Kerala. The first vessel to visit the unit, Penna Suraksha, delivered a consignment of 25,000t from Krishnapatnam Port, according to the Hindu newspaper. The terminal had an investment of US$8m.

The new terminal has a cement capacity of 0.3Mt/yr. It is intended to serve the local market in Kerala. It joins terminals run by Zuari Cement, Ambuja Cement and UltraTech Cement that also operate at the port.

The Penna Suraksha is reportedly the largest self-discharging vessel in Asia. As well as carrying a load of 25,000t of cement it can discharge up to 1000t/hr of cement. It uses a ship unloader supplied by Germany’s IBAU Hamburg.

India: Penna Cement has filed for a US$211m initial public offering (IPO) with the Securities and Exchange Board of India (SEBI). It plans to use the funds for expansion and to reduce its debts, according to the Economic Times newspaper. the cement producer is planning to increase its production capacity to 16.5Mt/yr by 2020 with projects in Odisha and Kolkata. At present it holds a capacity of 10Mt/yr in Andhra Pradesh, Telangana and Maharashtra.

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: Penna Cement has ordered a vertical roller mill from Loesche for its cement plant at Boyareddypalli in Andhra Pradesh. The mill will be equipped with four rollers to grind petcoke with a throughput capacity of 52t/hr, 3% R on 90μm. The delivery of the order to be managed by Loesche India and is scheduled to take place at the start of 2018. No value for the order has been disclosed. The mill upgrade will increase the plant’s cement production capacity to 4.6Mt/yr from 2Mt/yr.

India: The Enforcement Directorate (ED) has filed a prosecution complaint against Penna Cement for alleged irregularities related to the allocation of land and the granting of a mining lease. The agency has also named the deceased YSR Congress chief Y S Jaganmohan Reddy, V Vijaysai Reddy, Penna Group chairman Putta Pratap Reddy and Pioneer Holdings in the case, according to the Hans India newspaper. The complaint accuses the former Andhra Pradesh state government, run by Reddy, of allocating 231 acres in Yadiki mandal of Anantapur district to Penna Cements for setting up a cement plant and officials for allowing the allocation in violation of land acquisition rules.

The ED’s complaint also says that the government at the time refused mining leases to UltraTech Cement, granted a prospecting lease to Penna Cement and was complicit in other irregularities. In return for these actions the ED alleges that Penna Group invested US$10.6m in companies owned by Reddy, in violation of money laundering regulations. Previously, the Central Bureau of Investigation (CBI) filed charges against Penna Cement, Raghuram Cements and India Cements for favours they allegedly received from the Andhra Pradesh state government in 2008 and 2009.

India: With one more cement terminal set to commence operations in November 2015 on the port premises and two more in the pipeline, Kochi, Kerala is set to emerge as a major cement hub in south India.

Cochin Port Trust sources said that the number of cement terminals at the port would go up to three with the Zuari Cement terminal set to commence operations in November 2015. This is in addition to the UltraTech and Ambuja cement terminals in operation already. Penna Cement has begun construction works and decks have been cleared for Malabar Cements to begin work on its proposed terminal. All of the terminals, excluding one, would be capable of raising their throughput to 1Mt over the years, according to Port Trust.

These terminals will not only increase income for the financially-troubled Cochin Port Trust, but also generate substantial employment involving evacuation of the cargo out of Kochi to various parts of Kerala. For every 10,000t of cement imported, the Port Trust will earn up to US$230,714/yr in both vessel and cargo related charges.

Figures show that cement throughput at the Kochi port has grown substantially between 2010 - 2011 and 2014 - 2015. Cement throughput was 2.59Mt during 2010 - 2011. It has gone up to 7.03Mt during the 2014 - 2015 financial year. Cement throughput almost doubled from 3.11Mt during 2012 - 2013 to 6.04Mt during 2013 - 2014.