Displaying items by tag: Ambuja
Oil prices hitting packaging prices for Indian cement producers
02 October 2018India: High crude oil prices are forcing packaging costs to rise for cement producers. Data sourced from Capitaline shows that Ambuja Cements’ packaging material cost rose by 19% year-on-year in the 2018 financial year, according to the Mint business newspaper. Similarly, Shree Cement’s packaging costs rose by 9%. Both companies use high-density polyethylene bags, which are affected by the cost of oil. Crude oil prices have risen by around 24% to far in 2018 to above US$80/barrel.
India: Ambuja Cement sales have benefited from more infrastructure projects, improved sand availability and increased government spending. Its sales volumes of cement grew by 6% year-on-year to 26.9Mt in the first half of 2018 from 25.4Mt in the same period in 2017. Its net sales increased by 10% to US$1.89bn from US$1.72bn and its operating earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 7% to US$328m from US$306m.
"Ambuja is well positioned to benefit from the upsurge in rural demand and the encouraging external environment. Our consistent customer-connect initiatives, pursuit of operational excellence and continued focus on the retail segment is helping us reduce the impact of rising cost pressures," said Ajay Kapur, managing director and chief executive officer (CEO) of Ambuja Cement.
National Company Law Appellate Tribunal dismisses appeal by Indian cement producers against fine
25 July 2018India: 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.
UltraTech wins legal case against fake cement brand
05 June 2018India: UltraTech Cement has won a copyright case against a company selling cement brands similar to its own. The cement producer argued at the Bombay High Court that Everest Industries was selling products that were using marks deceptively similar to its own registered mark ‘UltraTech,’ according to the Mint business newspaper. UltraTech said that Everest was using the mark ‘Ultratruf-The Builders Choice’ with similar fonts and colours to its own mark. The court also observed that Everest was deceptively using another brand name, ‘Ambruja’, similar to that of Ambuja Cements.
The court ordered Everest Industries not to use the mark in any manner in mid-May 2018. It also asked it to pay costs and damages.
ACC and Ambuja enter Master Supply Agreement
13 March 2018India: With a merger of LafargeHolcim subsidiaries ACC and Ambuja Cement on hold, the two companies have proposed entering into a Master Supply Agreement (MSA) with each other with the aims of increasing synergies, reducing operational costs and increasing the companies’ joint sustainability.
This agreement is for supply of cement, clinker, raw materials (including fuel, fly ash, slag, gypsum etc), spare parts and for providing toll grinding services at certain plants. This will be executed through purchase orders, subject to a pricing formula. This will enable each company to optimise the cost of servicing markets by using each other’s plant’s capabilities, maximise the utilisation of assets to generate additional sales for each company and make best use of their joint spare inventory.
ACC and Ambuja Cements put merger plans on hold
27 February 2018India: ACC and Ambuja Cements, the two Indian subsidiaries of LafargeHolcim, have put their merger plans on hold. ACC said that its board was of the opinion that there were ‘certain constraints’ blocking its merger plans, according to the Press Trust of India. However, it added that a merger was its ‘ultimate’ objective. Ambuja Cements made a similar statement. Both companies joined Holcim in 2005, before becoming part of LafargeHolcim in 2015.
LafargeHolcim to spend US$214m on new cement plant in Rajasthan
21 February 2018India: LafargeHolcim plans to spend US$214m towards building a new cement plant in the state of Rajasthan. The 3.1Mt/yr plant will be operated by its local subsidiary, Ambuja Cement, and it will target markets in the north of the country, including Delhi. Commissioning for the plant is scheduled for the second half of 2020.
"India is the second biggest global cement market and is forecasted to continue to see high growth rates. We are excited to invest in this highly attractive market to further strengthen our footprint and to reinforce our leading building materials position in India," said Jan Jenisch, Group chief executive officer (CEO) of LafargeHolcim.
Ambuja Cements benefits in 2017 as impact of demonetisation and general sales tax ebb
20 February 2018India: Ambuja Cements has benefited in 2017 as the impact of demonetisation and general sales tax eased. The subsidiary of LafargeHolcim reported that its sales rose by 12% year-on-year to US$1.58bn in 2017 from US$1.41bn in 2016. Its operating earnings before interest, taxation, depreciation and amortisation (EBTIDA) rose by 14.9% to US$300m from US$261m. Its cement sales volumes rose by 8.7% to 23Mt from 21Mt.
“During the year, we focused on providing specific solutions to address customer needs, value offerings, particularly for the retail segment products, and made strong investments in building brand equity. Our strategy to focus on premium products, core markets and managing costs has delivered higher sales and EBITDA growth,” said Ajya Kapur, managing director and chief executive officer (CEO) of Ambuja Cements.
Worker killed at Ambuja Cement’s Maratha plant
30 January 2018India: A contract worker has been killed in an accident at Ambuja Cement’s Maratha plant in Maharashtra. An apparent electrical problem in a wagon loading machine caused the incident that crushed the 32 year old worker, according to the IndustriAll union. The union says that mechanical problems had been reported previously in the plant’s packing unit. LafargeHolcim, the owner of Ambuja Cement, reported 86 fatalities at its sites in 2016.
Ambuja Cement ranks seventh in Dow Jones Sustainability Index
10 January 2018India: Ambuja Cement has been ranked seventh in the Construction Material category of the Dow Jones Sustainability Index (DJSJ) 2017. The subsidiary of LafargeHolcim was invited to participate in the DJSI Emerging Markets Index and beat its score from 2016. Each year about 2500 global companies, listed on the stock exchange, belonging to about 59 economic sectors, are invited to participate in the DJSI.