Displaying items by tag: India
India: According to the Financial Express, Jaiprakash Associates is close to selling its 1Mt/yr capacity cement plant at Sikandarabad, Uttar Pradesh to HeidelbergCement for around US$78.6m.
If the deal materialises, it would be the fifth cement asset sale by Jaiprakash Associates in little over a year. The group is looking to sell assets, including cement and power plants, to reduce its large debt. The aggregate debt of the group at the end of the 2014 financial year, which ended on 31 March 2014, stood at around US$8.65bn. Though it has so far divested assets worth US$2.36bn, the impact of the asset sales is yet to reflect on the group's balance sheet. It aims to cut down debt further by around US$1.57bn by the end of the current 2016 fiscal year, which ends on 31 March 2016. So far, Jaiprakash Associates has divested around 13Mt/yr of its overall cement capacity and is left with around 23Mt/yr.
Unnamed sources have said that Jaiprakash Associates also plans to sell two more of its cement plants, in Baga and Bagheri in Himachal Pradesh and Balaji in Andhra Pradesh, but the matter is stuck due to valuation issues. Aditya Birla Group's UltraTech Cement and HeidelbergCement have reportedly been in talks regarding their acquisition.
Heavy industries set to miss deadline for installing online emissions monitoring systems
24 June 2015India: According to Live Mint, the majority of 3261 highly-polluting industries in India, including the cement and steel sectors, are set to miss the June 2015 deadline set by the ministry of environment, forests and climate change (MoEFCC) to install online effluent and emission monitoring systems.
Most industries have recently sought an extension to September 2015, although some from sectors like petrochemicals and refinery asked the deadline to be extended to June 2016. The environment ministry is considering the former plea. "The ministry is favourably considering extending the deadline until September 2015 for the majority of industries. But we are not sure about extending it to June 2016 for certain industries. A final call will be taken soon in this regard," said a senior environment ministry official.
On 16 - 17 June 2015, the Central Pollution Control Board (CPCB) held a meeting of industrial associations and common waste management facilities to review the status of compliance of their directions regarding the installation of online effluent and emission monitoring devices. According to the minutes of the meeting, 'By-and-large, associations have agreed to meet the deadlines by September 2015, except in the case of mini cement plants, refinery, petrochemicals and common bio-medical facilities.'
In December 2014 the CPCB identified 3261 industries in 17 categories of highly-polluting industries, including the cement, iron and steel, thermal power plants, sugar, tannery, distillery, fertilisers and pesticide sectors. The CPCB had asked the industries to install online effluent and emission monitoring systems by June 2015, failing which bank guarantees of 100% of the cost of online systems (emission or effluent) would be forfeited. The CPCB had also said that its 'consent to operate' would be withdrawn from non-complaint industries.
India: According to Focus News, cement carrier MV Coastal Pride has sunk 45km south of Daman, Gujarat on 24 June 2015. The Navy and Coast Guard rescued 14 crew members of the vessel. The Coast Guard picked up six persons before the ship sank, a helicopter saved six crew members from the water and the Coast Guard rescued two further people after the boat sank. The rescued crew were evacuated to Umargaon, Gujarat.
India: According to the Press Trust of India, at least five suspected A'chik Matgrik Elite Force (AMEF) terrorists attacked the Virgo cement plant in Damas, North Garo Hills, Meghalaya in the early morning on 18 June 2015. Two crude bombs were hurled in the incident, causing partial damage to a building. No casualties have been reported.
The men entered the plant through the second gate and asked the security personnel in the sentry post to open the main gate door. After they exploded one crude bomb inside the sentry post, causing partial damage, another crude bomb was thrown before escaping.
India: According to the Press Trust of India, Wonder Cement, part of RK Marble Group, plans to invest US$500m to increase its cement production capacity to 10Mt/yr in the next five years from the current 3.25Mt/yr.
"We have 3.25Mt/yr of cement manufacturing capacity at our Bhatkotri village plant in Rajasthan and have invested US$250m to double the current capacity to about 7Mt/yr by setting up a second production line. It is likely to be complete by the end of 2015," said Wonder Cement's executive director Jagdish Chandra Toshniwal.
Toshniwal added that Wonder Cement plans to further expand the current capacity to 10Mt/yr by setting up a third production line at a cost of US$250m in the next five years. The project will be funded through an internal accrual of US$47m, promoters' contribution of US$78m and debt of around US$376m.
Currently, the plant is running at full capacity and sells 1.8m bags/day to the northern states, with 50% of its volume sold in Rajasthan. Toshniwal said that Wonder Cement is also expanding its base in north Gujarat and western parts of Uttar Pradesh and Madhya Pradesh.
"The cement industry is evolving rapidly. We prepare for the next phase of the company's growth. We are focusing our efforts on increasing our market share by creating a clearly distinctive positioning in the market place," said Toshniwal. Some of the recent government initiatives such as development of 100 smart cities, housing for all by 2022 and post-monsoon commencement of several infrastructure projects are expected to provide a major boost to the sector, Toshniwal added.
India: Charles Correa, a renowned Indian architect, died on 17 June 2015 at the age of 84.
Correa designed structures in Toronto, Canada, Lisbon, Portugal and Boston, USA, but most of his projects were in India. His designs included low-cost apartments, office buildings, museums, churches, legislatures, new townships and scientific institutes.
"Correa's architectural marvels are widely cherished, reflecting his brilliance, innovative zeal and wonderful aesthetic sense," said prime minister Narendra Modi.
ACC resumes limestone mining operations at Bargarh
18 June 2015India: ACC resumed limestone mining operations at Bargarh, Odisha, after about nine months, on 17 June 2015.
ACC stopped mining at Bargarh in October 2014 following a government notice to suspend operations at the plant. The company stopped clinker production at its Chaibasa, Jharkhand, and Bargarh plants, but continued to operate the grinding units associated with these. "The impact of the closure was not material since cement grinding continued with the transfer of clinker from sister works and clinker purchases," said ACC.
State governments were issued orders to stop mining, following a Supreme Court judgement in the matter of Goa Foundation versus Union of India and Others and in Common Cause versus Union of India on the deemed renewal of mining leases and a subsequent amendment to The Mineral Concession Rules 1960.
ACC resumed limestone mining operations following terms of the Mines and Minerals (Development and Regulation) Ordinance 2015.
This week brought the news that, following testing by the Food Safety and Standards Authority of India (FSSAI), some 27,402t or US$49.8m of Nestlé's Maggi noodles had to be recalled from the market due to allegedly high levels of lead. But what do you do with 27,402t of noodles deemed unsafe for human consumption?
The solution was incineration. Five cement plants will take 40 days, which started on 9 June 2015, to consume all of the noodles as an alternative fuel. "This was the most environment-friendly solution to destroy the recalled noodles," said Luca Fichera, executive vice president of Nestlé's supply chain in India.
India's fuel supply is notoriously unreliable. Coal is the dominant fuel used for cement and power production in India, however, supplies have been inconstant in terms of both quality and quantity for some time now. To shore up the coal supply, the government cancelled, reallocated and auctioned 214 of the 218 coal blocks in India, starting in September 2014. According to local media, Coal India, which still operates most of the blocks, is now expected to increase its coal production capacity by as much as 60Mt in 2015, following 7% production growth in the 2014 - 2015 financial year. However, there is still a major coal shortage in the country and recent reports by India's coal ministry suggest that the new coal linkages will increase coal costs. The new coal linkage process will see sales go via an auction system instead of a static price. Coal costs for cement producers are expected to rise by as much as 25% as a result.
Given India's long-standing fuel supply problems, its cement producers may wish to learn from the use of Nestlé's Maggi noodles as alternative fuels in cement plants. Instead of viewing the coal shortage as a challenge, it might instead be considered an opportunity to increase alternative fuel use, reducing costs and moving to more environmentally-friendly cement production. In addition to the standard industrial, municipal and household waste, among others, India might look to use some of the large quantities of waste biomass that must surely be produced from its agricultural sector. Like the game, 'Hungry, hungry hippos,' India's cement plants could consume a wide variety of nearby wastes in place of coal.
India: According to the Irish Examiner, CRH is being linked with a second potential Asian deal in as many weeks, this one with a price tag of around US$1bn. A Mergermarket report has it that CRH is one of 16 likely bidders for assets in eastern India being sold by Lafarge. The disposal makes up part of the conditions related to Lafarge's merger with Holcim.
Local press stated that CRH is an 'obvious bidder' given that it already has a presence in southern India and is in the process of buying US$7.32bn of assets as part of the LafargeHolcim deal. However, Mergermarket claims CRH is vying with HeidelbergCement, among others, for the new assets and has until the end of June 2015 to complete due diligence and until 15 July 2015 to submit a binding bid.
US$49.8m of Nestlé’s ‘Maggi’ noodles recalled and recycled as alternative fuel for cement plants
16 June 2015India: Some US$49.8m, which equates to 27,420t, of Nestlé's Maggi noodles has been recalled in India and is now being used as an alternative fuel at five Indian cement plants. Nestlé said that the recall process is one of the largest in the history of India's food industry.
"The recall of Maggi noodles from the market is an immensely complex mammoth activity, the largest in the history of Nestlé," said Luca Fichera, executive vice president of the supply chain in India. "The trust of our consumers is extremely important for us and despite the enormity, we are focused on completing this efficiently and as fast as feasible."
The recall started on 5 June 2015. Of the total to be consumed by cement plants, some US$32.7m was recalled from the market, while US$17.1m was removed from Nestlé's factories and distribution centres.
The Indian cement plants have been consuming the noodles as alternative fuels since 9 June 2015. "This was the most environment-friendly solution to destroy the recalled noodles: To convert them into fuel," said Fichera. It will take 40 days to destroy the 27,420t of noodles at the five cement plants.
The food safety regulator ordered Nestlé to withdraw the noodles after some samples were allegedly found to contain higher-than-permissible levels of lead. This was rejected by Nestlé, which said that its own independent tests suggested otherwise. Nestlé has since moved to the Bombay High Court, challenging the order. The court has issued notice to the Food Safety and Standards Authority of India (FSSAI), the regulator and other respondents and posted the matter for hearing on 30 June 2015. Nestlé has halted the production of Maggi noodles in its factories since 5 June 2015 and has withdrawn the product from the market.