Displaying items by tag: UltraTech Cement
India: UltraTech Cement Ltd is in talks to buy cement assets from Jaiprakash Associates Ltd. The two companies are in discussions about projects, including Jaiprakash's Rewa cement plant in central India, which has a 7Mt/yr cement production capacity.
Selling additional assets would help Jaiprakash to reduce its debt, which jumped more than four-fold in the five years through March 2014 to US$10.3bn. In 2013 UltraTech agreed to buy a Jaiprakash cement unit based in Gujarat State.
Jaiprakash is also looking for buyers for cement assets in Himachal Pradesh State, where it owns two plants with a combined production capacity of 3.5Mt/yr. Jaiprakash sold its 74% stake in Bokaro Jaypee Cement Ltd, a joint venture with the Steel Authority of India Ltd, to Dalmia Bharat Ltd for US$194m in March 2014.
After its recent divestments, Jaiprakash has a cement production capacity of 26.4Mt/yr, according to a company presentation in May 2014. The company plans to sell assets valued at about US$1.35bn by March 2015.
UltraTech’s annual profit down
24 April 2014India: UltraTech Cement, part of the Aditya Birla Group, has announced that its net profit declined year-on-year by 19% to US$351m in 2013-2014. This marks the company's first fall in profit for five years and was attributed to rising input costs and sluggish sales.
UltraTech's net sales rose to US$3.29bn for 2013-2014 from US$3.28bn in 2012-2013. For 2013-2014, the company's cement shipments grew to 41.47Mt from 40.65Mt in 2012-2013. For the quarter that ended in March 2014, UltraTech reported an 8% increase in net sales to US$954m, up from US$882m in the same period of 2013.
India: Jaiprakash Associates plans to sell US$1.66bn worth of assets by 2015 to cut its debt, after divesting assets totalling US$2.46bn in the six months that ended on 31 March 2014.
Jaiprakash Associates plans to sell a thermal power plant, a cement plant, some of its real estate assets and a part of its stake in the Yamuna Expressway. It plans to exit its cement joint venture with Steel Authority of India Ltd in Bhilai, Chhattisgarh and is in talks with Aditya Birla Group's Ultratech Cement Ltd. Jaiprakash Associates holds a 74% stake in the 2.2Mt/yr capacity cement plant.
A Jaiprakash Associates executive said that the current financial year will see more asset sales, which will ease pressure from banks to repay borrowings. Since September 2013, Jaiprakash Associates has sold assets valued at US$2.46bn, meeting its debt-reduction target for the fiscal year that ended on 31 March 31 2014.
UltraTech in talks to buy Jaypee’s cement assets in Himachal
21 February 2014India: UltraTech Cement Ltd is in talks to buy Jaypee's cement assets in Solan, Himachal Pradesh, for US$644m, according to anonymous sources. This comes shortly after UltraTech's purchase of Jaypee's Gujarat cement plant.
For Jaypee, subsidiary of Jaiprakash Associates Ltd, the deal will be another effort towards trimming its US$8.54bn debt (as of 31 March 2013). The company sold 1.21km2 of land in Greater Noida to realty firm Gaursons India Ltd for US$241m in May 2013. Jaypee is also close to finalising the sale of two of its three operating hydroelectric projects to a consortium led by Abu Dhabi National Energy Co PJSC for at least US$1.5bn.
UltraTech's cement manufacturing capacity increased to 59Mt/yr from 54Mt/yr after it bought Jaypee's Gujarat plant. The company aims to increase its capacity to 70Mt/yr by 2015, according to Kailash Birla, senior executive president and chief financial officer of UltraTech. The Solan assets, if acquired, will add another 4Mt/yr of capacity. The grinding and blending unit and the cement plant in consideration have capacities of 2Mt/yr each.
CCI approves US$605m UltraTech-Jaypee deal
03 February 2014India: UltraTech has received the green signal from the Competition Commission of India for its US$605m agreement with Jaypee Cement Corporation to purchase its Gujarat-based businesses.
UltraTech plans to acquire Jaypee's facilities, which include an integrated cement manufacturing plant at Sewagram, a captive power plant and mining leases and limestone reserves.
CCI has announced that the agreement will not affect competition in the market as companies like Lafarge and ABG Cement are initiating plants in Rajasthan and Gujarat respectively. CCI also stated that the entry of new companies counterbalances the competition market, which is affected by the merger of two similar companies, especially if the newly entered party is of ample size.
SPCB Notice to UltraTech Cement
03 February 2014India: The State Pollution Control Board (SPCB) of Odisha has issued a show cause notice to UltraTech Cement plants at Arda village, Kirmira, for violating pollution norms and asked the company to respond within 15 days as to why action should not be taken against it.
Residents of the areas surrounding the Ultratech plant have complained that white dust released by the plant is causing health hazard. Regional Officer of SPCB, Mukesh Mahalinga, said that the show cause notice was issued after an SPCB team inspected the plant and its surrounding areas on 5 – 10 December 2013. He said that if the company management fails to submit a satisfactory explanation for the non-functioning of an dust metre in the plant, action will be taken against it.
Karnataka cement plant wage disputes develop
20 December 2013India: The Deputy Labour Commissioner of the Union government has convened a tripartite meeting with representatives from Vasavadatta Cements and UltraTech Cement, the Shramajeevigala Vedike and the Labour Department to find a solution to the on-going wage disputes at Karnataka cement plants.
Mr. Hiremath, trade union leader and president of the Shramajeevigala Vedike, claimed that the cement companies were spreading falsehoods about the implementation of wage board salaries to contract labourers. They continued to pay a negligible US$2.89/day against the cement wage board's recommendation to pay more than US$8.03/day. The companies also provided false information to the Labour Commissioner that the cement wage board's recommendations were being implemented and hid the fact that contract labourers were not receiving any other benefits.
Mr. Hiremath said that if the Labour Department failed to ensure that the cement plants implemented the wage board's recommendations, the employees would not have any alternative but to launch an indefinite protest in New Delhi.
Ultratech Cement to build two cement plants in Uttarakhand
12 December 2013India: Ultratech Cement plans to spend US$810m to build two cement plants in the state of Uttarakhand. The Industrial Development Department has issued a letter of intent to the Indian cement producer asking it to set up its new plants at Tuni, Dehradun district and at Someshwar, Almora district. The plant at Tuni will have a cement production capacity of 3.5Mt/yr and the plant at Someshwar will have a capacity of 2Mt/yr.
UltraTech appoints Arun Adhikari as an Additional Director
04 December 2013India: UltraTech Cement has appointed Arun Adhikari as an Additional Independent Director on the Board with effect from 3 December 2013.
Karnataka cement plants accused of not paying minimum wages
26 November 2013India: Chandrasekhar Hiremath, president of the Shramajeevigala Karmika Sangha and a trade nion leader, has alleged that two cement plants in Karnataka are not paying the minimum wage to contract and full-time workers. According to comments reported upon by The Hindu, Hiremath said that the Regional Labour Commissioner in Bellary, Karnataka had failed so far to ensure that workers were being paid properly at the UltraTech Cement plant at Malkhed and Vasavadatta Cements at Sedam.
A national wage settlement signed between the employees' unions and cement producers entitles all contract labourers and full-time workers to receive the wages fixed by the Cement Wage Board. Hiremath further alleged that Vasavadatta Cements had submitted a misleading report to the Regional Labour Commissioner. Daily wages of contract labourers and full-time workers at the plant were US$7 as opposed to the US$9.50 minimum set by the board.