Displaying items by tag: UltraTech Cement

India: The Calcutta High Court has rejected a plea for an injunction by the owners of MP Birla Group into part of the acquisition process of Century Textiles and Industries by UltraTech Cement. The Lodha family holds a significant stake in Pilani Investment and Industries Corporation, which, in turn, owns a stake in Century Textiles and Industries, according to the Daily News and Analysis newspaper. It had argued that the demerger process as part of the sale of Century Textiles and Industries would seriously affect the remaining parts of its business. UltraTech Cement received approval from the Competition Commission of India (CCI) for the acquisition of the cement business of Century Textiles and Industries in late August 2018.

India: UltraTech Cement’s income rose by 15% year-on-year to US$2.37bn in the six months to the end of September 2018 from US$2.05bn. However, its net profit fell by 24% to US$137m from US$180m. The cement producer blamed its profit drop on mounting energy and logistics costs coupled with local currency depreciation effects. Its cement sales volumes rose by 28% to 31.9Mt from 25Mt.

India: The Supreme Court has agreed to examine a plea by cement producers about a charge of cartel-like behaviour made by real estate developers and upheld by the Competition Commission of India (CCI). However, the court has insisted that the payment schedule of the fine imposed will have to be upheld while the appeal proceeds, according to the Economic Times newspaper. The accused cement producers have been ordered to deposit 10% of the fine.

10 cement companies – including India Cements, Ramco Cements, Nuvoco Vistas Corporation, Ambuja Cement, ACC, Jaiprakash Associates, Century Textiles and Industries and UltraTech Cement – were accused by the Builders' Association of India and the CCI in 2010 of cartel-like behaviour. They were then fined US$905m or 0.5% of their net turnover. The producers first tried to appeal with the National Company Law Appellate Tribunal (NCLAT) but the tribunal dismissed their plea against the CCI finding in late July 2018.

India: UltraTech Cement has announced that it is joining EP100, a global leadership initiative that brings together a growing group of ‘energy-smart companies.’ The company said that becoming a member reaffirms UltraTech's commitment to driving sustainability across its value chain and accelerating business growth. By becoming a member of EP100, UltraTech has committed to double its energy productivity, a critical lever it to reduce the CO2 intensity of its operations. It will provide a strategic boost to UltraTech's low carbon growth target of reducing carbon intensity by 25% by 2021 against its 2005 baseline.

K K Maheshwari, Managing Director of UltraTech Cement said, “UltraTech Cement has always been at the forefront in adopting sustainable processes in its business operations. The company has some of the best performing plants on energy metrics across the world. As a responsible organisation, we realise the need for further substantial improvements in energy productivity. Our membership of EP100, we believe, will play a catalytic role in helping us accelerate towards doubling our energy productivity, which is a key strategic lever to achieve sustainable business growth.”

Helen Clarkson chief executive officer (CEO) of The Climate Group, said, ''It's hugely encouraging to see UltraTech, one of the leading cement producers globally, step up on energy efficiency. This is a win-win for emissions reduction and business growth. We need to see many more cement companies and other large energy users in hard-to-abate sectors follow UltraTech's lead.''

Founded by The Climate Group, EP100 constitutes companies that commit to using energy more productively. Energy productivity is a way of measuring energy efficiency that aligns directly with business growth and sustainable development goals.

India: UltraTech Cement has received approval from the Competition Commission of India (CCI) for the acquisition of the cement business of Century Textiles and Industries. The company has given its approval for the share swap deal between the companies.

The transaction will provide UltraTech an opportunity to further strengthen its presence in the east and central markets, extending its footprint in the Western and Southern markets of India.

India: The Competition Commission of India (CCI) has approved UltraTech Cement’s acquisition of Century Textiles & Industries. UltraTech Cement said that the CCI had approved the proposed combination under sub-section (1) of section 31 of the Competition Act, 2012. Century Textiles, the cement production subsidiary of BK Birla Group, holds three integrated plants in Madhya Pradesh, Chhattisgarh and Maharashtra respectively with a combined production capacity of 11.4Mt/yr and a 1Mt/yr grinding plant in West Bengal. The takeover has been arranged via a demerger process whereby Century Textiles’ shareholders will be given shares in UltraTech Cement.

Earlier this year South Africa’s PPC commented on the drought facing Cape Town. It said that cement manufacturing was not water intensive, that its operations were ‘totally’ self-sufficient from its own surface water sources with capacity for several months and that it was working with the local government which viewed construction as an important economic sector. Point made!

Water conservation is an established part of the sustainability toolkit for cement producers. Yet recent weather patterns in the Northern Hemisphere may also test how well companies are doing. Above average temperatures have been recorded this summer, in some places accompanied by unusually dry conditions. A news story this week about Cemex Colombia being fined for using water from a river shows one aspect of the problems that can face industrial users. Another story that we’ve covered previously has been the legal action taken against producers using water from a site near to the Katas Raj Temples in Pakistan.

Wet process cement manufacturing uses more water than dry process but even modern plants use water for cooling equipment and exhaust gases, in emission control systems such as wet scrubbers. In addition, quarrying and aggregate production may require water, and concrete production also needs water. Issues also arise with quarry dewatering and discharging water into rivers and the like. Global Cement Directory 2018 data indicates that, where known, about 10% of integrated cement plants still use a wet production method.

Graph 1: Specific water consumption by selected cement producers in 2017. Source: Corporate sustainability reports.

As Graph 1 shows there is some variation between the major cement producers with regards to how much water they use. They all operate with different types of equipment and production methods in different geographical locations so the difference between the companies is to be expected. A cement plant in northern Europe that normally experiences high levels of rainfall will have a different approach to water conservation than one, say, in a water stressed area like the Middle East. Incidentally, the definition used to define a water-stressed or scarce area is one where there is less than 1000m³/yr per person. One other point to note here is that each of the companies has a higher consumption figure than the 100 – 200L/t that the Cement Manufacturers' Association of the Philippines (CeMAP) reckoned that an average dry-process cement plant used when it was promoting water conservation back in 2013.

Looking at specific recent success stories, India’s UltraTech Cement reported a specific water consumption of 54L/t of clinker at its Star Cement plant in Dubai, UAE in 2016 – 2017 following a dedicated initiative at the site. An another milestone that UltraTech Cement was keen to point out in its last sustainability report was that three of 13 integrated plants had achieved water sufficiency though the use of the company’s 360° Water Management Model with its use of rainwater harvesting and recharging groundwater. These plants are not dependent on any groundwater or fresh water sources. The other larger cement producers all have similar water management schemes with reduction targets in place.

Climate change models generally predict hotter and wetter weather but changing weather patterns and growing populations are likely to impact upon water management and consumption. Given the integral nature of water in the cement production process, many cement producers have realised the importance of it and treat it as an input material like fuel or limestone. Hence the highlighting of water conservation in company sustainability reports over the last decade. The test for the success of these initiatives will be how producers cope in drought situations where they may be seen as being in competition with domestic users. Thankfully in PPC’s case, Cape Town avoided having to ration water to the general public, as the rains returned in the spring.

India: The National Company Law Appellate Tribunal (NCLAT) has dismissed an appeal by cement producers against a US$975m fine for alleged cartel-like behaviour. The Competition Commission of India penalised 11 cement companies in August 2016, according to the Press Trust of India. The companies included UltraTech Cement, ACC, Ambuja, Ramco and JK Cement and the Cement Manufacturers’ Association (CMA). UltraTech Cement has been fined US$171m, the highest amount in the group.

India: UltraTech Cement plans to build five waste heat recovery (WHR) units with an investment of US$72.6m. The new WHR units will have a capacity of 63MW and they will take the company’s total WHR capacity to 121MW, according to the Hindu newspaper. It is anticipated that the cement producer will be able to meet half of its power requirements from its WHR plants. They are also intended to protect the company from changes in the price of coal.

India: UltraTech Cement’s consolidated net sales rose by 27% year-on-year to US$1.3bn in the quarter that ended on 30 June 2018 from US$1.01bn in the same period in 2017. However, its profit after tax dropped by 30% to US$92m from US$131m.

The cement producer also said that it agreed to buy the cement assets of Century Textiles & Industries in the reported quarter and that it commissioned a 1.75Mt/yr grinding unit at its Manawar plant in Dhar District, Madhya Pradesh.