Displaying items by tag: India

India: India Ratings and Research has forecast a drop of cement demand of 10 – 15% in the 2021 financial year due to coronavirus lockdowns in some states and flooding in eastern and central regions in the second quarter, according to the Economic Times newspaper. The research report attributed this to oversupply of cement in eastern regions. It also added that companies with more rural markets were likely to benefit from a quicker recovery.

India: Calderys has completed its acquisition of Hysil’s calcium silicate insulation division. The deal was signed in January 2020 but delayed to July 2020 due to coronavirus-related lockdowns. Calcium silicate boards are used for thermal insulation in industries such as cement, metallurgy, oil refinery, petro-chemical and power plants. Calderys says it now the largest manufacturing capacity of calcium silicate boards in India and South East Asia. The purchase will enable it to expand its product portfolio and offer calcium silicate insulation products along with refractories solutions.

India: Aditya Birla subsidiary UltraTech Cement has recorded a net profit of US$122m in the three months to 30 June 2020, the first quarter of the 2021 fiscal year – down by 28% year-on-year from US$169m in the corresponding period of the 2020 fiscal year. Sales were US$975m, down by 33% from US$1.45bn.

The company said, “UltraTech has emerged stronger and well-prepared in the wake of the on-going Covid-19 pandemic. The total lockdown period from late-March 2020 to 1 May 2020 has been a huge challenge for all manufacturing industries. UltraTech has managed the crisis with a sharp focus on operational efficiencies. In the available 68 operating days during the quarter, the company kept a tight control on costs and cash flow and achieved an effective capacity utilisation of 60% across its network of 54 plants around the country.”

UltraTech said that it had already noted “better-than-expected pick-up in cement consumption in rural markets,” which it attributed to “measured steps towards economic recovery” by national and state governments.

India: The India Cements recorded a profit of US$2.27m in the three months to 30 June 2020, down by 77% year-on-year from US$9.66m in the corresponding quarter of 2019. Its sales fell by 48% to US$102m from US$197m, due to the effects of the coronavirus lockdown during the quarter. It noted that direct cement sales to consumers (non-trade sales) rose to 67% from 52%, and said that it would extend its successful “cash and carry” business model developed for non-trade sales during the partial coronavirus lockdown to all cement sales. The India Cements predicts a rise in cement demand in Andhra Pradesh and Telangana of 75% to 3.5Mt in the second half of 2020 from 2.0Mt in the first half.

India: Ambuja Cement’s net profit in the first half of 2020 was US$22.1m, up by 1.5% year-on-year from US$21.7m in the first half of 2019. Revenues decreased by 15% to US$127m from US$149m. The company sold 9.95Mt of cement over the period, down by 18% from 12.2Mt.

Managing director and chief executive officer (CEO) Neeraj Akhoury said, “Volumes were impacted during the second quarter of 2020 as a result of Covid-19 lockdown. Cement demand is expected to rebound, presupposing a normal monsoon and various policy support measures to enhance rural and agricultural incomes. Continued infrastructure, development and affordable housing investment are expected to boost demand growth in the mid-term. The health of our employees and partners is accorded the highest priority.”

India: ACC has appointed Sachin Chhabra appointed as Head of Brand Marketing. Prior to this he was Head of Marketing and Digital Communications at Amway India Enterprises, the Indian subsidiary of the US company that sells health, beauty, and home care products. Chhabra was educated at the Institute of Management Technology, Ghaziabad and has also worked for Zenith and DLF.

India: ACC’s profit in the first quarter of the Indian 2021 fiscal year (1 April 2020 – 30 June 2020) was US$36.3m, down by 40% year-on-year from US$60.9m. Sales fell by 38% to US$338m from US$544m. This was due to a 33% fall in cement volumes to 4.80Mt from 7.16Mt and a fall in cement prices.

India: Emami Group has completed its divestment of Emami Cement, which is now 100% held by Nuvoco Vistas. Emami Group, which continues activities in the beauty and traditional medicine sectors, received US$731m for the sale of its sole cement industry subsidiary.

India: The Cement Manufacturers Association (CMA) has contacted the Department for the Promotion of Industry and Internal Trade to urge its reconsideration of an expected decision that the CMA says will disrupt the mining sector, upon which eight key industries including cement depend. Indo-Asian News Service has reported that the government department may be considering the deletion of a provision of the Mines and Minerals Development and Regulation (Amendment) Act that gives a captive lease to reconnaissance permit (RP) and prospecting licence (PL) holders to begin mining for minerals discovered in the licenced area. The CMA has argued that introducing any additional stage between explorations and extraction “would not go well with the spirit of ‘ease of doing business.’” It added, “The industry would like development policies to be predictable and consistent to usher in fresh investments as well as to protect the efforts and hardships that go into establishing an industrial setup.”

India: Ambuja Cement has modernised its logistics operations by digitising its supply chain to “improve visibility, deliver quality customer service and optimise cost.” The Economic Times newspaper has reported that the company has integrated all aspects of raw material, fuel and equipment supply and product deliveries on a single online platform in order to “enhance overall efficiency and productivity.” Company director Martin Kriegner said additionally that the digitisation will aid in, “fuel mix optimisation and strategic sourcing, helping to mitigate rising input costs.”

Ambuja Cement’s 3.0Mt/yr greenfield expansion to its integrated 1.5Mt/yr Marwar Munda, Rajasthan plant is scheduled for commission by 1 January 2021. The company has a master supply agreement with ACC aimed at maximising the consistency of cement supply to the Rajasthan market once the new 4.5Mt/yr plant becomes operational.