Displaying items by tag: UltraTech Cement

India: Kumar Mangalam Birla has been elected as the chairman of Century Textiles and Industries. The appointment follows the death of his grandfather Basant Kumar Birla early in July 2019. Kumar Mangalam Birla is the head of Aditya Birla Group, the owner of UltraTech Cement amongst other subsidiaries.

India: UltraTech Cement plans to complete its merger with Century Cement by September 2019. Chairman Kumar Mangalam Birla said the company has approval from shareholders, the Competition Commission and stock exchanges, according to the Mint newspaper. However, it still needs permission from the National Company Law Tribunal (NCLT).

The merger, which was first announced in May 2018, is a long running reorganisation of assets belonging to the Birla family. Once complete it is expected to give UltraTech Cement dominance in all regional markets with the addition of 13.4Mt/yr of production capacity in Madhya Pradesh, Chhattisgarh and Maharashtra.

India: The Jharkhand Industrial Area Development Authority (JIADA) has cancelled an allotment of land to UltraTech Cement for a project to build a 1.5Mt/yr plant. The cement producer was allotted 48 acres of land by JIADA in 2016, according to the Times of India. The industrial development body for the state government also sent notices to 20 other companies warning them that their allocations would be nullified. The action is being taken to free up land for development.

India: Emami Group has chosen Arpwood Capital and Credit Suisse to manage the sale of its cement business. It is seeking a sale value of around US$1bn according to sources quoted by the Business Standard newspaper. However, the company is still deciding the size of the stake it wants to sell. UltraTech Cement was reported to be in talks to buy a stake in Emami Cement in late June 2019.

India: Basant Kumar Birla, chairman of BK Birla Group, has died at the age of 98 in Mumbai. He is survived by his grandson Kumar Mangalam Birla, the head of Aditya Birla Group, the owner of UltraTech Cement, amongst many other family members, according to the Times of India.

Part of the influential Birla family of industrialists, Basant Kumar Birla originally started working at Kesoram Industries before turning the business into a conglomerate with concerns in cement, engineering, medium-density fibreboards, pulp and paper, rayon, shipping, tyres, tea, chemicals and other sectors. BK Birla Group reported a turnover of US$2.4bn in the 2018 – 2019 financial year. At present the group now comprises five major companies - Kesoram Industries, Century Textiles & Industries, Century Enka, Mangalam Cement and ECE Industries - and several smaller subsidiaries.

Image of Basant Kumar Birla by Biswarup Ganguly CC BY 3.0

India: UltraTech Cement is in talks to buy a stake in Emami Cement for up to U$800m. Sources quoted by the Economic Times newspaper say that UltraTech Cement is working with private equity companies, including KKR and Temasek Holdings, on the potential deal. Emami Group is reportedly still deciding whether to sell its entire cement business, a stake or selected assets.

Emami Cement operates a 2.5Mt/yr integrated plant at Risda in Chhattisgarh and a 2.5Mt/yr grinding plant at Panagarh in West Bengal. It acquired a 0.6Mt/yr grinding plant at Bhabua, Bihar in September 2018. In addition, the firm has mining assets in Guntur in Andhra Pradesh and near Jaipur in Rajasthan. Its main markets are in West Bengal, Chhattisgarh, Odisha, Jharkhand, Bihar, Maharashtra and Madhya Pradesh. It markets its products under the Double Bull brand.

India: Cement producers and the World Business Council for Sustainable Development (WBCSD) have launched the Indian Cement Sector SDG Roadmap. The planning framework uses the United Nation’s (UN) sustainable development goals (SDG) to set a series of goals in energy and climate, people and communities, the circular economy and natural resource management. It is intended to contribute to the UN’s 2030 Agenda for Sustainable Development.

This initiative has been convened by nine cement companies: ACC, Ambuja Cement, CRH, Dalmia Cement (Bharat), Heidelberg Cement, Shree Cement, Orient Cement, UltraTech Cement, Votorantim Cimentos. It is also partially funded by the Swiss Agency for Development and Cooperation (SDC).

Notable goals from the roadmap include promoting railway and waterway transport networks, improving transport safety, increasing the use of blended cements and encouraging the use of alternative fuels. The framework also plans to increase the number of women in the indsutry workforce at every level from entry to board.

India: UltraTech Cement aims to increase contribution of so-called ‘green energy’ to 25% of its total power consumption by 2021 from 10% at present. It also intends to raise its contribution of renewable energy to its total power consumption by five times in the next two years to 2021 to over 10%. By building capacity for renewable power the cement producer intends to become one of the largest users of renewable energy in the Indian cement sector.

In addition to renewable energy, the green energy contribution includes energy generated through waste heat recovery systems (WHR). During its 2019 financial year UltraTech commissioned 28MW of WHR systems to take its total generation from WHR to 8% of total power consumption. Further upgrades are expected to be completed in a phased manner by 2021, taking its WHR share to 15% of its total power requirement.

“To bring the cement sector in line with the Paris Agreement on climate change, UltraTech Cement’s annual emissions will need to fall by at least 16% by 2030. There are a number of solutions for reducing emissions associated with cement production as identified by the latest Low Carbon Technology Roadmap published by International Energy Agency (IEA) in partnership with Cement Sustainability Initiative (CSI). These solutions need to be deployed at scale to meet the decarbonisation challenge,” said K K Maheshwari, the managing director of UltraTech Cement.

UltraTech Cement has set a target to reduce its CO₂ emissions by 25% from its 2005 – 2006 level by 2021. The company is also working on CO₂ reduction strategies including energy efficiency, alternative fuels, WHR, renewable energy and reducing its clinker ratio.

India: Larsen & Toubro (L&T) has been awarded an order to build a cement plant in Kurnool, Andhra Pradesh. The end client was not named but UltraTech Cement said in mid-June 2019 that it had received approval from the environment ministry to build a 6Mt/yr integrated cement plant in the same location. The plant will have a 60MW captive power plant and a 15MW waste heat recovery-based power unit. No value for the order has been disclosed.

India: UltraTech Cement has received approval from the environment ministry for a US$360m project in Andhra Pradesh, in which it will set up a 6Mt/yr integrated cement plant at Petnikote village in Kurnool district. The plant will have a 60MW captive power plant and a 15MW waste heat recovery-based power unit.

The company has already acquired 432 hectares of land for the project, which UltraTech says will generate employment for 900 people. The company still has to get 'consent to establish and operate' from the Andhra Pradesh Pollution Control Board.