Displaying items by tag: India
Mangalam Cement director Shri K K Mudgil dies
25 February 2015India: Mangalam Cement has reported that Shri K K Mudgil, a non-executive independent director of the Company died on 20 February 2015 in New Delhi.
LafargeHolcim asked to divest assets in eastern India by CCI
23 February 2015India: The Competition Commission of India (CCI) has requested that LafargeHolcim divest some of its units, including limestone reserves, to prevent a monopoly in eastern India.
When Lafarge and Holcim initially announced their intention to merge operations in April 2014, they proposed a series of asset divestments in countries where they had a significant market share, but India was not among them.
After prima facie investigations by the CCI revealed that the combination would likely have an appreciable adverse effect on competition, especially in eastern India, the CCI launched, what it calls, Phase II investigations. It put the merger proposal in public scrutiny under Section 29(3) of the Competition Act, 2002 and invited comments from stakeholders including competitors. The CCI has now stated that the merger proposal is fine, but certain assets must be divested in eastern India.
According to local media, the assets can be sold to a company that is not a competitor. LafargeHolcim has 30 days to respond to the CCI's suggestions.
UltraTech wins coal block in Madhya Pradesh
23 February 2015India: On day six of India's coal block auction, 20 February 2015, UltraTech Cement won the Bicharpur coal block in Maharashtra for a price of US$48.2/t. The block contains coal deposits of 29.1Mt. UltraTech's parent company, Aditya Birla Group, has already won three blocks so far in the on-going coal block allocation auctions.
UltraTech and Hindalco Industries win coal mines in India’s auction
20 February 2015India: Day six of India's coal block auctions, on 19 February 2015, saw UltraTech Cement win the Bicharpur mine in Madhya Pradesh, which has 29.1Mt of coal reserves, for a bid of US$48.3/t. UltraTech beat ACC, Hindalco Industries, Jaypee Cement and OCL India, among others.
Aditya Birla Group's Hindalco Industries won the Gare Palma IV-5 block for US$56.3/t. The mine has estimated extractable reserves of 42.4Mt. It beat a number of rivals, including Ambuja Cement. Jindal Power Ltd won the Gare Palma IV-2 and 3 coal mines in Chhattisgarh, which have extractable coal reserves of 156Mt, for an estimated US$270m.
MCL to restart Cherthala grinding plant
19 February 2015India: Malabar Cements Limited (MCL) will resume operations at its Cherthala grinding plant in Alappuzha, Kerala on 26 February 2015. Managing director K Padmakumar said that a ship carrying 27,010t of clinker intended for the plant had reached the Cochin port from Fujairah, UAE.
Padmakumar said that the Cherthala plant would have 600t/day of capacity and required 1.2Mt/yr of clinker. The plant stopped functioning in 2009 due to a shortage of clinker, though its profit was around US$644,000/yr. MCL's Walayar cement plant in Kerala was not able to share its clinker production with the Cherthala plant.
Clinker is now sourced through e-tenders. The company that won the e-tender has assured the management of uninterrupted supply of clinker throughout the year. The price is lower than the clinker it previously sourced from the Cement Corporation of India. "As per the arrangement, MCL can save US$16.1/t," said K Abdul Samad, chief mechanical engineer of MCL. With the Cherthala plant back on stream, the production capacity of MCL would grow to 200,000t/yr.
Aditya Birla’s Hindalco Industries wins another coal mine in auction
19 February 2015India: Aditya Birla's Hindalco Industries has won the Gare Palma IV/5 mine in Chhattisgarh, outbidding a number of companies, including Ambuja Cements, on day five of India's coal mine auction. The winning bid was US$56.4/t and the mine has extractable reserves of 42.4Mt. This is Hindalco Industries' second winning bid in the auction.
Potential merger of Ambuja Cement, ACC and Lafarge India
19 February 2015India: Ambuja Cement, ACC and Lafarge India may merge as part of the proposed global merger of Lafarge and Holcim, according to local media. The plan is still at an early stage and LafargeHolcim have mandated investment bank Lazard to advise on the restructuring of their Indian operations. The most likely option is the merger of ACC, Ambuja and Lafarge India into one listed entity to create the largest cement company in India. The combined cement production capacity of the three subsidiaries would be some 70Mt/yr.
As part of the new restructuring proposal, LafargeHolcim may reassess Holcim's restructuring of ACC and Ambuja, which was announced in 2014 and is currently incomplete. As part of the plan, shareholders of Ambuja had approved ACC's stake acquisition from Holcim.
Indian cement companies emit less CO2 than US and EU producers
19 February 2015India: Most cement plants in India consume less energy and emit less CO2 than their European and American counterparts as they use the latest technology, according to the Cement Sustainability Initiative (CSI).
An initiative of the World Business Council for Sustainable Development (WBCSD), CSI is a 23-member organisation including nine Indian cement companies. CSI members produce 66% of the world's cement and 60% in India. "The member companies from India are more efficient. They emit less CO2 than the companies in Europe and the US. Their energy consumption is also less," said CSI's managing director Philippe Fonta.
The distinction between Indian firms from those in the US and Europe is technology. Indian companies use the latest technology since many of the cement plants are relatively new. Besides India's UltraTech Cement and Dalmia Bharat, seven global companies with operations in India like Holcim's ACC and Ambuja Cement, Lafarge, HeidelbergCement, Zuari Cement are among members of CSI. Fonta said that Indian companies could improve if they lay more emphasis on alternative fuels and energy and make use of municipal waste. The 360Mt/yr Indian cement industry meets just 0.6% of its energy needs with alternative fuels, but this is expected to go up to 5% cent by 2020.
Valentines 2015 - Love is in the air for India’s cement producers
18 February 2015Valentines Day 2015 (14 February 2015) saw the kick-off of India's first round of coal mine auctions - who said that the commercialisation of Valentines Day is a bad thing? For those not following the story, here's a brief summary of the key events that have led to the auctions:
Coal, the main fuel used for cement and power production in India, has been in short supply in recent years due to the shortcomings of state-owned Coal India Ltd (CIL), which produces around 80% of India's coal and owns 90% of its coal mines. In 2013-2014, CIL produced 462Mt of coal, missing a target of 482Mt. Demand is expected to reach 950Mt/yr by 2016 - 2017. Numerous cement plants have had to temporarily cease production due to inadequate coal supplies. This is in spite of India's estimated 302Bnt of coal reserves, more than enough to supply both the power and cement industries. Coalgate indeed!
On 24 September 2014, India's Supreme Court cancelled 214 of the 218 coal blocks that had been allocated since 1993. The blocks were for captive use by the cement, steel and power industries, but the allocation process had been accused of lacking transparency. Of the cancelled blocks, 12 belonged to cement companies. The re-allocation of the cancelled blocks commenced in December 2014, when 36 of the 98 viable coal blocks were allocated. A transparent auction process for 21 of the cancelled blocks for end-usage in power, cement and iron production started on 14 February 2015. In March 2015, a further 23 blocks will be auctioned. CIL was requested to steer clear of the bidding by the Indian government.
Reliance Cement and Jaiprakash Associates, as well as Aditya Birla Group's Hindalco Industries, have all won coal mines during the first three days of bidding. Prices ranged from US$22.5/t to US$45.9/t. UltraTech Cement and JSW Cement both placed bids, but have so far been beaten by rivals. There are still many opportunities for cement producers to win coal mines, although whether the locations are suitable is another matter.
With captive coal mines in hand for India's luckiest cement producers, fuel shortages should become a problem of the past. As India's coal-fired power companies are also bidding fiercely in the auctions, power supplies throughout the country should become more reliable. However, one only needs to look at Afghanistan's Ghori I cement plant to see that having a captive coal mine is not always the answer to fuel shortages; due to internal disputes and poor mining equipment, its coal mine production is poor and the plant operates only intermittently. Hopefully, any cement companies new to coal mining will invest in equipment wisely and ensure an efficient supply chain. As with any large purchase, or indeed Valentines Day, India's coal mine auctions are very much a case of caveat emptor...
Jaiprakash Power Ventures wins coal block on day four
18 February 2015India: On the fourth day of India's coal block auctions, on 17 February 2015, Bharat Aluminium Co bid US$48.5/t to beat rivals Hindalco Industries and UltraTech Cement, among others, to win the Chotia mine in Chhattisgarh. The block has Grade C coal reserves with 1Mt/yr of production capacity. The price of imported coal of a similar grade is around US$72.2/t.
Jaiprakash Power Ventures won the Amelia North coal block in Madhya Pradesh for US$11.4/t, while agreeing to forego the mining cost. The mine has extractable reserves of 2.8Mt/yr and was previously owned by Madhya Pradesh State Mining Corp. OCL Iron & Steel won the Ardhagram mine in West Bengal at a price of US$36.9/t. The mine has extractable reserves of 400,000t/yr.