Displaying items by tag: Shree Cement
Real estate body to boycott Shree Cement
12 July 2016India: The National Capital Region (NCR) division of the Confederation of Real Estate Developers’ Associations of India (CREDAI) has decided to boycott Shree Cement due to complaints of alleged inconsistent price increases and shortages of cement. The property body also intends to file a complaint with the Competition Commission of India, according to the Economic Times newspaper.
“Shree Cement is arbitrarily increasing prices and stopping supply in between, demanding a price revision, despite taking an advance,” said a CREDAI NCR spokesperson. “Through excuses such as plant not functioning properly and issues with transportation these companies are not meeting the delivery deadlines, thereby affecting the builders’ construction timelines.”
The NCR CREDAI previously stopped using cement from UltraTech and Lafarge, on alleged grounds of cartelisation and malpractices. However it reversed this decision when the cement producers reduced their prices. Shree Cement has not commented on the matter.
Shree Cement completes grinding plant at Aurangabad
24 June 2016India: Shree Cement has completed the expansion of its cement grinding plant at Aurangabad in Bihar. The plant increased its production capacity to 3.6Mt/yr from 2Mt/yr.
Report highlights risks to cement producers from future emissions costs and water use constraints
09 June 2016World: A new report released by the Carbon Disclosure Project (CDP) has highlighted the potential costs of future CO2 emissions and water supply constraints for 12 of the top global cement producers. CDP’s research shows that, even at a US$10/t CO2 price, US$4.5bn could be wiped off profits, with the least efficient companies most at risk.
By compiling questionnaire responses, the report ranks 12 cement producers for performance across five key areas – emissions, energy and material management, carbon cost exposure, water resilience and carbon regulation supportiveness. It found that LafargeHolcim, Shree Cement and CRH were the least CO2- and resource-intensive producers, with Italcementi, Cementir and Taiheiyo Cement the most highly intensive. Several major Chinese and other regional players failed to respond.
CDP found that many of the major cement companies have emissions targets that are set to expire in the next few years. It argues that, with the Paris Agreement driving towards net zero emissions by the middle of the century, cement companies have a ‘historic opportunity to set targets that can ‘future-proof’ their businesses.’
Tarek Soliman, Senior Analyst, Investor Research at CDP said, “This is the first piece of major research to break down how major players in the cement industry are meeting the challenge of reducing emissions in line with the science called for by the Paris Agreement. Cement will be a crucial building block as the Paris Agreement is put into effect, as it accounts for 5% of the world’s man-made emissions. The results couldn’t be clearer for companies and investors: a tipping point for cement companies is not far away.”
“As carbon-related regulatory measures inevitably tighten and the carbon price signal strengthens, investors will expect both strategic and rapid changes from cement companies, including better use of currently available options as well as investment in longer–term ones, whether this be in areas such as low-carbon product development or the deployment of carbon capture, use and storage.”
India: Shree Cement has ordered a pyro-processing line with KHD for its Raipur plant in eastern India. The order follows the commissioning and handover of a previous KHD pyro-processing system that was installed at Raipur in December 2015.
The order includes: a three pier rotary kiln (Ø = 5.2m, L = 70.0m); a Pyrojet burner; a two-string, six-stage PRZ 9576 preheater; and a Pyrostep PSC2 3-135.12T clinker cooler. Commissioning for the Raipur Line II is expected in third quarter of 2017.
Shree Cement prepares for 10Mt/yr expansion project
30 March 2016India: Shree Cement has set aside US$905m to build three new integrated cement plants with a production capacity of 10Mt/yr. The first new plant in the line will have a production capacity of 3Mt/yr and will be situated in Baloda Bazar, Chhattisgarh. The Indian cement producer successfully bid for limestone deposits in Baloda Bazar in February 2016. The new plant will be announced by July 2016, according to the Business Standard newspaper.
“We will be bidding in at least 12 more limestone auctions and hope to win three to four of these. This will help us set up plants to increase our capacity,” said the Managing Director of Shree Cement, H M Bangur.
At present Shree Cement has a cement production capacity of 23.6Mt/yr from three clinker plants and six cement grinding plants in the states of Rajasthan, Uttarakhand, Haryana and Chhattisgarh. The expansion plans will be funded by the company’s internal accruals.
India: The National Green Tribunal has issued notices to 13 cement companies on a petition alleging that they are violating its orders and environmental norms as well as the provisions of the Motor Vehicles Act, 1988, by causing air pollution. The petitioner, Neena Pradeep, has also accused the cement companies of overloading their trucks with cement and clinkers in order to save toll tax, according to the Hindu. Violations by Shree Cement and JK Cement were highlighted during the hearing. They have allegedly overloaded their trucks by 200 - 250%.
Shree Cement's highest bidder for limestone deposits in Chhattisgarh
19 February 2016India: Shree Cement has offered the highest bid in an auction for limestone deposits at Karhi Chandi, Baloda Bazar in Chhattisgarh. The site has estimated reserves of 155Mt of limestone in an 252 hectare area. Official confirmation from the state government that confirms Shree Cement as the winner of the auction is still awaited.
Local press reports that Shree Cement offered US$4/t for the deposit. The sale was the first non-coal mining lease auction by the state government. Shree Cement has plans to expand its cement plant at Raipur.
Jaiprakash to sell Jaypee Bhilai plant stake to Shree Cement
07 January 2016India: In an attempt to service its US$5.99bn debt, Jaiprakash Associates has signed an agreement with Shree Cement to divest its stake in the 2.1Mt/yr Bhilai Jaypee Cement plant for an enterprise value of US$314 – 329m. Jaiprakash Associates is finding it difficult to service its debt due to various reasons, including a slowdown in the economy and some of its projects falling on the revenue front.
India: The Competition Appellate Tribunal has set aside a US$945m penalty imposed on 11 cement firms by the Competition Commission of India (CCI) on accusations of cartel behaviour and asked the fair trade regulator to resubmit the case. The Tribunal also allowed the cement manufacturers to withdraw the 10% penalty amount already deposited with the CCI, according to the Press Trust of India.
The judgement follows appeals filed by the cement firms and their industry body, the Cement Manufacturers Association, against the two CCI orders passed in June - July 2012. The cement companies included ACC, Ambuja Cements, Binani Cements, Century Textiles Ltd, India Cements, JK Cements, Lafarge India, Madras Cements, Ultratech, JP Associates and Shree Cements.
The CCI had passed the orders after an investigation into complaints, including from Builders Association of India (BAI), against alleged price collaboration between cement firms.
The orders were later challenged at the Competition Appellate Tribunal, which ordered that 'the impugned order is set aside and the matter is remitted to the CCI for fresh adjudication of the issues relating to alleged violation" of the relevant sections of the Competition Act.'
Shree Cement's net profit jumps by 18%
17 November 2015India: Shree Cement's net profit rose by 18.3% year-on-year to US$19.5m in the quarter that ended on 30 September 2015 and its total income increased by 6.79% to US$265m.