Displaying items by tag: India
India: The shareholders of Jaiprakash Associates approved the sale of the group’s cement business to UltraTech Cement. According to the deal, arranged earlier in 2016, UltraTech Cement will buy Jaiprakash Associates' cement plants in Uttar Pradesh, Madhya Pradesh, Himachal Pradesh, Uttarakhand and Andhra Pradesh, which have a total production capacity of 21.1Mt/yr, at an enterprise value of US$2.4bn. In addition, it will acquire a 4Mt/yr grinding plant being built in Uttar Pradesh.
Approval has been obtained from the Competition Commission of India, according to the Press Trust of India. The next step involves seeking approval from the concerned High Court and the final approval from capital markets regulator.
Jaypee Cement to return coal blocks to ministry
20 October 2016India: Jaypee Cement is seeking approval from the Ministry of Coal to return two captive coal blocks, which it previously won by auction in 2015. The company has told the ministry that it does not require the coal blocks as it has sold off the attached cement plants, a ministry official told the Economic Times newspaper. The official added that Jaypee Cement could be barred from bidding for other coal blocks for one year and that bank guarantees equivalent to a year’s revenue from the mines could be seized. The two blocks are Majra in Maharashtra and Mandla South in Madhya Pradesh.
Orient Cement agreed to purchase three cement plants from Jaiprakash Associates for US$292m in early October 2016.
JSW Cement launches Concreel HD brand cement
20 October 2016India: JSW Cement has launched a new product called Concreel HD in the south of India. It is marketed as an environmentally-friendly product with improved chemical resistance and superior cohesion. It is targeted at strength bearing applications such as beams, columns, slabs and foundations due to its high early and long-term strength as well as its quick setting time.
India: The East Singhbhum district administration has asked for guidelines from the government of Jharkhand regarding the purchase of the Jojobera cement plant by Nirma from Lafarge India. There are no provisions for transfers of leased land to any third party without the prior approval of the state government with relation to agreements struck by Tata Steel, the plants previous owner, said East Singhbhum deputy commissioner Amit Kumar to the Hindustan Times.
"We are seeking state government's guideline on action to be taken over the reported transfer of management and bank accounts of Jojobera Plant here by Lafarge Holcim to Nirma Limited even though they are yet to respond to our notices from July 2016," said Kumar.
Lafarge India has said that the transfer of management and accounts for the Jojobera plant was completed on 6 -7 October 2016 following approval by the Competition Commission of India for the sale. It agreed to sell five cement plants to Nirma for US$1.4bn in July 2016.
India: JK Cement’s Chief Financial Officer AK Saraogi has forecast that cement demand will rise by 8% in the 2017 – 2018 financial year due to government spending on infrastructure. JK Cement Special Executive Madhavkrishna Singhania said that demand in the current financial year is likely to be aided by ‘good’ monsoons that will boost spending particular in rural areas, according to the Press Trust of India. The forecasts follow several years of poor demand for cement in the country. Ratings agency ICRA also predicts similar increases in demand.
Sagar Cements to raise funds for upgrades
13 October 2016India: Sagar Cements is planning to raise funds to finance expansion of its cement grinding plant at Vizag in Andhra Pradesh as well as to set up a coal-fired power plant at its plant at Nalgonda in Telangana. A directors board meeting has been scheduled on 19 October 2016 to discuss proposals for the financing.
India: The Hynniewtrep Achik National Movement (HANM) has demanded that the state government of Meghalaya cancel a public hearing to discuss the construction of a plant by Dalmia Cement at Thangskai scheduled for 25 October 2016. The group is protesting about mining rights to the site, according to the Meghalaya Times.
"We strongly express our opposition and demand that the proposed public hearing for extraction of limestone from Thangskai village by the Dalmia Cement factory is immediately revoked," said HANM- East Jaintia Hills president Ency Shadap. The group has also asked that the state government give a public clarification on its decision to grant permission to the cement company to extract limestone from the district and cited certification issues with the Ministry of Forest & Environment.
ACC cement grinding plant in Jharkhand to start in November 2016
11 October 2016India: ACC has said that its new cement grinding plant at Sindri, Jharkhand will become operational in November 2016. This follows the start of commercial production of a new clinker production line at its plant at Jamul, Chhattisgarh in July 2016 and the start of that site’s grinding plant on 14 September 2016.
Builders Association of India calls for cement regulatory body
10 October 2016India: The Builders Association of India has asked the government to create a Cement Regulatory Authority to control the price of cement and prevent cartel activity in the sector. Avinash M Patil, national president of the BAI, told the Hindu newspaper that ‘most’ contracts in the construction industry have no price escalation clauses. Subsequently, unexpected jumps in the price of cement slow down project times. A delegation of the BAI is set to meet the prime minister to discuss the issue.
India: Orient Cement is to buy three cement plants from Jaiprakash Associates for US$292m. The cement producer will acquire a 74% stake in Bhilai Jaypee Cement for US$217m from Jaiprakash Associates and the Nigrie cement grinding plant from Jaiprakash Power Ventures for US$75m, according to the Press Trust of India.
Bhilai Jaypee Cement, a joint venture between Jaiprakash Associates and the Steel Authority of India Limited (SAIL), has a 2.2Mt/yr integrated Portland slag cement plant in Satna Madhya, Madhya Pradesh and a grinding plant in Bhilai, Chhattisgarh. The acquisition will also give Orient Cement access to limestone reserves and other raw materials including slag. The Nigrie cement grinding plant in Singrauli, Madhya Pradesh, has a capacity of 2Mt/yr.
"The current proposal to acquire BJCL from JAL is a significant step towards accomplishing our current mission of reaching a capacity of 15Mt/yr by 2020," said CK Birla Group chairman CK Birla, owner of Orient Cement. At present, the cement producer has 8Mt/yr from three plants in Telangana, Maharashtra and Karnataka.