Displaying items by tag: UltraTech Cement

India: The state government of Uttar Pradesh has identified land on which Jaiprakash Associates will have to plant a plantation as a penalty for conducting mining in a forest. The decision follows a National Green Tribunal order in 2016, according to the Times of India newspaper. UltraTech Cement purchased the Dalla plant from Jaiprakash Associates in 2017 but it has been unable to use the site fully due to legal issues. It will be able to use the site fully once the conditions of the government proposal have been completed. Other conditions of the government deal will force Jaiprakash Associates to pay four times the actual cost of land for its acquisition and to maintain the plantation for 10 years.

India: UltraTech Cement’s consolidated net sales rose by 34% year-on-year to US$1.39bn in the fourth quarter of its 2017 financial year from US$1.04bn in the same period in the previous year. Its profit before interest, depreciation and taxation increased by 20% to US$283m from US$236m.

The group benefitted from its acquisition of assets from Jaiprakash Associates in mid-2017. Its cement production capacity grew by 28% to 85Mt/yr from 66.3Mt/yr. However, its capacity utilisation rate fell slightly to 80% from 82%. Its local sales rose by 32% to 17.6Mt from 13.4Mt and exports increased by 15% to 0.82Mt from 0.72Mt. The cement producer also warned that a rise in petcoke and coal prices following a government ban had caused its input costs to inflate during the reporting quarter.

India: UltraTech Cement has commissioned a new 2.5Mt/yr plant at Manawar, Dhar District in Madhya Pradesh. The cement producer said that it set a record by commissioning the plant in less than a year and that it cost less than US$225m.

The plant’s kiln is designed for different types of energy sources, including alternative fuels. The unit also includes a 1.75Mt/yr grinding unit at the site with an auto-loading facility. Another additional 1.75Mt/yr grinding unit and a 13MW waste heat recovery unit are also being built. Both of these projects are expected to be completed before September 2018.

The new plant is planned to take advantage of the state’s main industrial belt, the Dewas-Ratlam-Pithampurlndore. Following the commissioning of the plant, UltraTech Cement has 19 integrated cement plants in the country with a total cement production capacity of 96.5Mt/yr.

India: UltraTech Cement has raised its direct offer to buy Binani Cement to US$1.21bn. Previously it made a direct offer of US$1.11bn to Binani Cement in the form of a so-called ‘comfort letter’ that Binani Industries used to stop the insolvency process. UltraTech Cement made this latest offer to the resolution professional handling the insolvency process of Binani Cement, according to the Economic Times newspaper. The move follows a decision by the Supreme Court on 13 April 2018 to block UltraTech Cement’s first offer. However, the court will consider a plea by a group of operational creditors that is backing the higher offer in late-April 2018.

India: The Binani Operational Creditors Forum (BOCF) is seeking a forensic audit of the insolvency resolution process of Binani Cement due to an alleged lack of transparency. The forum has filed a petition in the Supreme Court, according to the Press Trust of India. Binani Cement owes about US$1.07bn to its creditors.

The Supreme Court previously blocked an out-of-court offer by UltraTech Cement for Binani Cement. A consortium led by Dalmia Bharat won an auction for Binani Cement with a bid of US$974m in early March 2018. However, UltraTech Cement then made a direct bid to Binani Cement a few weeks later. According to the BOCF, the operational creditors are expected to only receive US$23.2m from a total exposure of US$107m if the bid from Dalmia Bharat is allowed to complete.

India: The Supreme Court has blocked an out-of-court offer by UltraTech Cement for Binani Cement. Banks had offered conditional support to UltraTech’s bid, seeking indemnity from Binani Industries, the owner of Binani Cement, against any potential legal action, according to the Economic Times newspaper. A consortium led by Dalmia Bharat won an auction for Binani Cement with a bid of US$974m in early March 2018. However, UltraTech Cement then made a direct bid to Binani Cement a few weeks later.

Binani Industries had deposited US$115m with HDFC Bank to show its commitment to the deal with UltraTech, along with a bank guarantee for nearly US$1bn. However, Dalmia Bharat had sent letters to all the banks involved saying that any settlement initiated by them would be a breach of trust as they had entered into a contract with Dalmia.

India: The Supreme Court has been informed that the government is considering a ban on the use of petcoke by various industries. Additional Solicitor General A N S Nadkarni, representing the Ministry of Environment, Forest and Climate Change, told the court that a decision on the matter could be made within one month, according to the New Indian Express newspaper.

At present it is unclear whether the cement industry would be affected. However, if it was included in the ban, this potentially could be a problem for Shree Cement, which uses 100% petcoke in its fuels mix, according to India Infoline News Service. Additionally, UltraTech Cement, JK Cement, JK Lakshmi Cement and Mangalam Cement have petcoke usages in the range of 75 - 85% and would also be negatively affected.

India: Dalmia Bharat has sought intervention by the Central Vigilance Commission (CVC) in the insolvency proceedings of Binani Cement. It argues that the lenders’ reported move to allow owner Binani Industries to seek an out of court settlement violates CVC guidelines and circumvents the dedicated insolvency process, according to the Economic Times newspaper.

A consortium led by Dalmia Bharat won an auction for Binani Cement with a bid of US$974m in early March 2018. However, UltraTech Cement then made a direct bid to Binani Cement a few weeks later. In a letter to the CVC Dalmia Bharat alleged that UltraTech Cement’s direct offer was a revised bid in an auction that forbade them.

India: Binani Industries says it has filed an application to stop the insolvency process for its subsidiary Binani Cement. It received an offer from UltraTech Cement to buy its majority stake in the cement producer in late March 2018, according to the Press Trust of India. However, the deal was subject to the ending of insolvency proceedings against Binani Cement whose Credit of Creditors (COC) led by Bank of Baroda had previously approved a bid from Dalmia Bharat.

Meanwhile, Rajputana Properties, a subsidiary of Dalmia Bharat, has asked the National Company Law Appellate Tribunal (NCLAT) to stay the settlement process considered by Binani Cement’s CoC. However the NCLAT refused the request. Previously the NCLAT asked the companies trying to buy Binani Cement to ‘amicably’ settle the dispute.

India: The creditors of Binani Cement have asked it to seek approval from the Supreme Court on an offer made by UltraTech Cement to buy the company outside of the on-going insolvency process. The lenders decided not to vote on UltraTech Cement’s offer, according to the Times of India newspaper. Instead, they asked for Binani Cement’s parent company, Binani Industries, to pay US$115m to show its commitment to the latest deal.

A consortium led by Dalmia Bharat won an auction for Binani Cement with a bid of US$974m in early March 2018. However, UltraTech Cement then made a direct bid to Binani Cement a few weeks later. Branches of the National Company Law Tribunal have since suggested that the companies settle the dispute ‘amicably.’ However, Binani’s creditors fear that Dalmia Bharat is likely to start legal proceedings without full court approval supporting UltraTech Cement’s direct offer.