Displaying items by tag: Shree Cement

India: Shree Cement is setting up a 2.8Mt/yr cement plant at Sikandrabad in Bulandshahr, Uttar Pradesh. The plant will also include a 18MW captive power plant.

India: Petron Engineering Construction has received work order from Shree Cement in Bewar, Rajasthan. The order includes civil construction work, reinforcement and steel work of a ball mill structure for a contract value of US$1.79m.

India: Shree Cement's profit in the quarter that ended on 30 June 2015 fell by 62.5% year-on-year to US$16.3m, but its overall earnings beat expectations due to strong growth in its power business.

Its revenue grew by 4% to US$270m and its operating profit fell by 18.7% year-on-year to US$55.9m. Its results were affected by 8.2% higher power and fuel costs, 26% higher freight and forwarding expenses and a 55% depreciation cost. The cement business grew by 1.7% to US$238m, while its earnings before interest and taxes (EBIT) was a US$7.46m loss. Overall performance was supported by its power business, which contributes 23% to total revenue.

India: Six foreign and domestic cement companies, along with one private equity firm, have expressed interest in buying the assets that Lafarge is divesting in India before it closes its merger with Holcim. The bids were in excess of US$627m.

The deadline for submitting non-binding bids for the assets expired on 16 May 2015. Ahead of that deadline, local media reported that bids came from Shree Cement, Chettinad Cement, HeidelbergCement India, The Ramco Cements, CRH and Blackstone Group.

As a precondition to clearing Indian leg of the LafargeHolcim, the Competition Commission of India (CCI) directed Lafarge to sell two of its assets in Chhattisgarh and Jharkhand. These are a cement plant at Sonadih, Chhattisgarh and a grinding plant at Jojobera, Jharkhand, with a total capacity of approximately 5Mt/yr. In its directions, the CCI said that Lafarge should sell its assets 'to relatively smaller players, having an installed capacity of less than 5% of their total capacity in the relevant geographic market.'

With the non-binding bids in, Lafarge is likely to shortlist bidders by the middle of June 2015. The deal is likely to be concluded in July 2015.

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: Shree Cement has commissioned a 2.6Mt/yr capacity grinding plant at Baloda Bazar near Raipur, Chhattisgarh.

India: The government is expecting aggressive bids for all of the 46 coal blocks whose reallocation will start on 14 February 2015, especially for blocks assigned to end-use power generation. However, for the blocks apportioned to the unregulated sector, including the cement, steel and captive power industries, the cement sector is likely to step carefully. Cement companies lost allocations to 12 coal blocks following a Supreme Court order that held all captive coal allocations as illegal.

Imported coal prices fell sharply in 2014, easing the economics of cement production. If prices of imported coal turn volatile however, cement companies face further problems. "We cannot depend solely on imported coal prices staying low and neither can the government assure good quality coal on the open market. We expect to see aggressive bidding for the blocks," said H M Bangur, managing director of Shree Cement.

As per the bid regulations by the ministry of coal, there will be a forward bidding model for the steel and cement sectors. Forward bidding implies aggressive bidding for the coal blocks since the price of these commodities is market-driven. The government has to reallocate 46 operational coal blocks through auction by 31 March 2015.

India: The Bihar state cabinet has approved a US$54m cement grinding plant planned by Shree Cement planned in the Aurangabad district of the state.

"The company had proposed to set up a cement plant with a production capacity of 2Mt/yr. It will also have a 12MW biomass-based captive power plant," said B Pradhan, Principal Secretary of the Cabinet Secretariat.

The state government agency Bihar Industrial Area Development Authority (BIADA) has provided 27 hectares of land on lease for the project. The project will provide employment to 300 skilled and unskilled persons.

India: Jaiprakash Associates Limited is selling its 2.1Mt/yr capacity split grinding plant at Bhilai, Chattisgarh to Shree Cements Limited for an enterprise value of US$293.
The deal is expected to be completed in October 2014.

Bhilai Jaypee Cement Limited is a joint venture between Jaiprakash Associates, which holds 74% stake in the unit and the Steel Authority of India Ltd (SAIL), which holds 26%. The cement plant, which has revenues of US$130m/yr, has US$97.5m of debt. After adjusting for this, the equity value of the deal is US$179 – 195m.

India: Shree Cement is considering importing coal from Indonesia in 2015. The Indian cement producer is in talks with Indonesian mines, according to a report by India Coal Market Watch. The report said that Shree Cement had purchased around 1.5Mt of US steam coal in 2013 – 14. Part of this allocation was re-sold by the company to brick kiln-makers in Punjab, Haryana and Rajasthan. Shree Cement is believed to have secured its steam coal and pet coke requirements until December 2014.