Displaying items by tag: Gujarat

India: Nuvoco Vistas has completed its acquisition of Vadraj Cement, upon the payment of US$20.9m to lenders led by Punjab National Bank and Union Bank of India. Gujarat-based Vadraj Cement operates a 6Mt/yr grinding unit in Surat. The acquisition increases Nuvoco Vistas' installed cement capacity by 24%, to 31Mt/yr.

Nuvoco Vistas undertook the acquisition through its wholly-owned subsidiary Vanya Corporation.

India: GoldCrest Cement will build a greenfield integrated plant with a 3.5Mt/yr clinker capacity and 4.5Mt/yr cement capacity. GoldCrest Cement appointed Humboldt Wedag India as engineering, procurement and construction contractor in March 2025 and targets completion by March 2027. It has signed a 40-year supply agreement with Gujarat Mineral Development Corporation for 150Mt of limestone from its upcoming Lakhpat Punrajpur mine in Gujarat.

India: Nuvoco Vistas will build a 2Mt/yr grinding unit in Kutch as part of its plan to refurbish and put into operation the recently acquired assets of Vadraj Cement. The project adds US$35m to the US$141m originally allocated to restart Vadraj’s cement assets in Kutch and Surat, bringing the total planned investment to US$177m, phased over 2025 to 2027. Nuvoco aims to commission the grinding unit and start up the existing Vadraj assets by December 2027. These include a 3.5Mt/yr clinker unit in Kutch, a 6Mt/yr grinding unit in Surat and limestone reserves.

Nuvoco’s total production capacity will increase to around 31Mt/yr. The company currently sells 1Mt/yr of cement in Gujarat from its facilities in Rajasthan, but post-commissioning, the Kutch and Surat sites will serve Gujarat and northern Maharashtra and release Rajasthan capacity for northern markets.

India: JK Cement has won a bid for 250Mt of limestone reserves in Lakhpat Punrajpur, Kutch, Gujarat, through a Request for Proposal from Gujarat Mineral Development Corporation. The reserves are expected to supply the company with raw materials for the next 40 years.

JK Cement Group president Amit Kothari said "This strategic partnership not only strengthens our resource base, but also highlights our focus on ensuring a steady supply of premium raw materials for high-quality cement production.”

Consolidation in the Indian cement sector continued through December 2024. UltraTech Cement completed its acquisition of a larger stake in The India Cements late in the month. Then, this week, Nuvoco Vistas said that it was preparing to buy Vadraj Cement. Along similar lines, JK Lakshmi Cement also confirmed that it was moving ahead with the merger of its cement-related subsidiaries.

The UltraTech Cement deal was approved by its board of directors in July 2024 but it took until 24 December 2024 before it formally completed the purchase of an additional 33% stake in The India Cements. The deal was valued at around US$460m in mid-2024 by local press. UltraTech Cement now owns just under a 55% stake in the company and is its majority shareholder. Back in July 2024 UltraTech Cement said that The India Cements had a total production capacity of around 14.5Mt/yr of ordinary Portland cement (OPC). Just under 13Mt/yr of this is based in the south of the country, mostly in Tamil Nadu, and 1.5Mt/yr is in Rajasthan.

The Nuvoco Vistas announcement follows a bidding process to acquire Vadraj Cement through a corporate insolvency process. Key parts of the deal include taking control of Vadraj Cement’s 6Mt/yr grinding plant in Surat and its 3.5Mt/yr integrated plant in Kutch. Both plants are in Gujarat. The agreement also includes limestone mining rights in the state and a captive jetty near the Kutch plant. However, the expression of interest for the insolvency proceedings, published in March 2024, revealed that the company’s operations have been suspended for five years. The grinding plant and the jetty were described as ‘partially constructed.’ Nuvoco Vistas has not disclosed how much it had bid to pay for the company, although it was keener in its press release to state that the transaction would see it become the fifth largest cement producer in India. It says that its cement production capacity will rise to 31Mt/yr; 19Mt/yr of this in the east, 6Mt/yr in the north and 6Mt/yr in the west. Synergies are also hoped for when the new assets are combined with Nuvoco Vistas’ current plants at Nimbol and Chittorgarh in Rajasthan.

Compared to the previous two news stories, the JK Lakshmi Cement merger plan is on a smaller scale but it follows the same trend. The cement producer presented its corporate restructuring plan to its shareholders in July 2024. It wants to merge JK Lakshmi Cement, its main cement company, with Udaipur Cement, Hidrive and Hansdeep. JK Lakshmi Cement runs two integrated cement plants at Sirohi, Rajasthan, and Durg, Chattisgarh respectively. It also operates what it calls ‘split location grinding’ plants at Kalol and Surat in Gujarat, at Jhamri in Haryana and at Cuttack in Odisha. Udaipur Cement operates one integrated plant in Rajasthan, Hidrive owns land next to the group’s Surat unit and Hansdeep is a preferred bidder for limestone resources in Nagaur, Rajasthan. The group’s clinker and cement production capacities are 10Mt/yr and 16.4Mt/yr. Its rationale is to gain synergies from production, distribution and logistics, to simplify the corporate structure, to improve efficiency and to raise shareholder value. That last one might be particularly useful for a cement producer looking to expand or sell in the future.

Further mergers and acquisitions are expected to happen in 2025 but at a slower rate than in 2024. Part of the dynamic so far has been that the highest demand is in the east and the highest capacity is in the south. Many of the deals announced in 2024 focused on markets in the south of the country. By contrast, analysts quoted in the Economic Times at the start of 2025 anticipate that new transactions might start to move to other regions. Obvious potential targets include Jaiprakash Associates and Heidelberg Materials. The first company became insolvent in 2024 and is likely to be sold off. Rumours of a potential purchase of the second company by Adani Group in the autumn hit the local press in October 2024. Doubtless there are other less visible possibilities too if the price is right. Read Global Cement Weekly in 2025 to find out what happens.

India: UltraTech Cement has increased its cement production capacity by 2.4Mt/yr through debottlenecking at integrated and grinding plants in Gujarat, Rajasthan and West Bengal. Following the improvement exercise its total domestic capacity is 141Mt/yr and worldwide it is 146Mt/yr. The improvements were made at the Pali integrated plant in Rajasthan and grinding plants at Magdall in Gujarat, Sonar Bangla in West Bengal and Neem ka Thana in Rajasthan.

India: UltraTech Cement says that it has received demand orders from two local revenue authorities for issues relating to its past tax payments. The Financial Express Online newspaper has reported that the producer must pay a total of US$86,600, including interest and fines. Office of the Deputy Commissioner of State Tax, Bhavnagar, Gujarat, demanded US$56,400 due to an allegedly ineligible input tax credit. Meanwhile, the Office of the Assistant Commissioner of Central Goods and Service Tax Division II, Punjab, demanded US$30,200 due to input service distributor credit not reflected in its statement for the 2018 financial year.

UltraTech Cement plans to challenge the orders, to wit the company said that it has a ‘good case on merit’ to present before appellate authorities.

India: Wonder Cement says that it has completed the construction of its new Tulsigam grinding plant in Gujarat. The Economic Times newspaper has reported that the new grinding plant will integrate with Wonder Cement’s existing facilities, including the Nimbahera cement plant in Rajasthan, and grinding plants in Haryana, Madhya Pradesh, Maharashtra and Uttar Pradesh.

The Tulsigam grinding plant will raise Wonder Cement’s capacity to 18Mt/yr, following the expansion of the Nimbahera cement plant to 11Mt/yr and the inauguration of the new Aligarh grinding plant in 2023.

Wonder Cement director Vivek Patni said "Each strategic move, including our new Tulsigam grinding unit, is aligned with our commitment to cater to India’s evolving infrastructural demands. We're poised for continued growth and are deeply committed to quality, innovation and societal impact."

India: Adani Group subsidiary Ambuja Cements plans to invest US$722m in renewable energy projects to help decarbonise its cement production. The producer has a renewable power capacity target of 1000MW, through solar and wind projects, by the end of the 2026 financial year. The proposals include a 600MW solar power project and 150MW wind power project in Gujarat, and a 250MW solar power project in Rajasthan. The company also plans to increase its waste heat recovery (WHR) capacity to 397MW by late 2028 from 103MW at present.

Ajay Kapur, the chief executive officer of Adani Group’s cement business, said "This strategic investment reaffirms our steadfast commitment to sustainable practices. We are not just aiming for a substantial increase in green power capacity but setting the stage for a transformative shift in the cement industry. They align not only with our growth trajectory but also with the national objective of decarbonisation and greener future and this helps us become competitive and sustainable."

Adani Group announced in mid-December 2023 that it was committed to investing US$100bn in the decade to the end of 2033 towards transitioning its operations to net zero CO₂ emissions by 2050.

India: Sanghi Industries has appointed Sukuru Ramarao as its chief executive officer (CEO). He succeeds Ravi Sanghi, who was the chair and managing director, following the acquisition of a majority stake in the company by Adani Group subsidiary Ambuja Cements. Sanjay Kumar Khajanchi has been appointed as the chief financial officer, Manish Mistry as company secretary and Ajay Kapur as chair of the company’s board of directors.

Sukuru Ramarao holds over 35 years of professional experience in the building materials sector. He started working for Ambuja Cements in the late 1990s, eventually becoming the company’s chief manufacturing officer in the 2021. He then became the CEO of Adani Group’s cement business in 2023. He holds an undergraduate degree in chemical engineering from the Sri Venkateswara University in Tirupati, Andhra Pradesh.

Sanjay Kumar Khajanchi has worked for Ambuja Cements for over 20 years, reaching the position of Head - Finance & Controlling in 2021. He holds a bachelors degree in commerce from St Xavier's College in Kolkata, qualifications from the International Institute for Management Development in Lausanne, Switzerland, as well as various professional financial accreditations.

Manish Mistry has worked with a wide variety of companies for over 15 years including Bell Ceramics, Alembic Group, Cadila Group and GACL before joining Adani Group in 2022. He is a member of the Institute of Company Secretaries of India and holds a degree in commerce and law from the Maharaja Sayajirao University of Baroda in Vadodara, Gujarat.

Ajay Kapur has been the CEO of Adani Group’s cement business since mid-2022. He has worked for over 25 years in the cement sector, originally starting at Ambuja Cements in 1993. He subsequently became the company’s managing director and CEO from 2014 to 2019. He then was the head of the aluminium and power division at Vedanta Group. Kapur holds an undergraduate degree in economics from St Xavier's College, a master of business administration (MBA) degree from the K J Somaiya Institute of Management and has completed the Advanced Management Programme at The Wharton School of the University of Pennsylvania.