Displaying items by tag: India
Shree Cement to consider importing Indonesian coal
15 October 2014India: Shree Cement is considering importing coal from Indonesia in 2015. The Indian cement producer is in talks with Indonesian mines, according to a report by India Coal Market Watch. The report said that Shree Cement had purchased around 1.5Mt of US steam coal in 2013 – 14. Part of this allocation was re-sold by the company to brick kiln-makers in Punjab, Haryana and Rajasthan. Shree Cement is believed to have secured its steam coal and pet coke requirements until December 2014.
India: The board of directors of Gujarat Sidhee Cement Ltd has appointed R Mohnot as CFO and company secretary effective from 1 October 2014.
JSW eyes up Kerala for new business
08 October 2014India: JSW cement, the largest producer of slag cement in India, is reported to be eyeing up the coastal state of Kerala as a location into which to expand. The company is aiming at 9 - 10% growth from states in southern India in 2014, according to Pankaj Kulkarni, Director of JSW Cement Ltd.
It says that the focus will be on selling its Portland slag cement (PSC), which is highly-resistant to corrosion both from the soil and sea. This perfectly matches conditions in Kerala, which has a long coastline and severe monsoon.
The company is also looking at expanding its clinker production capacity in the near future by setting up a plant in Chittapur in Karnataka. Growth in cities like Chennai, Hyderabad, Bangalore and Kochi will lead the way in the Southern market, according to Anil Kumar Pillai, CEO of JSW Cement Ltd. He added that JSW Cement, part of JSW Group, has made significant investments into cement manufacturing and will continue to add capacity to serve the burgeoning cement market.
Century Textiles' Manikgarh cement plant II commences production
08 October 2014India: Century Textiles and Industries Manikgarh cement plant II has commenced production as of 26 September 2014. The plant has 2.8Mt/yr of cement production capacity.
JK Cement completes expansion
03 October 2014India: JK Cement has commenced production and dispatch of cement from an expansion project at its cement plant in Mangrol, Chittorgarh, Rajasthan. The plant, which started production in 2001 at a rate of 0.75Mt/yr, had a capacity of 1Mt/yr prior to the upgrade. The company has plans to eventually increase the plant's capacity to 3Mt/yr in the future.
One of the largest cement makers in northern India, JK Cement is also a major producer of white cement. It exports to South Africa, Nigeria, Singapore, Bahrain, Bangladesh, Sri Lanka, Tanzania, UAE and Nepal.
Zuari plans new Gulbarga plant
02 October 2014India: Zuari Cement has announced that it will set up a 3.2Mt/yr cement plant in Gulbarga through its subsidiary Gulbarga Cement Ltd (GCL). The company also plans to set up 50MW captive power plant. The site for the new plant is 28km from Gulbarga city on the Gulbarga–Bangalore highway.
According to Nabil Francis, Managing Director of Zuari Cement, on completion of the project, the company will have a total capacity of 10Mt/yr and will become one of the largest cement manufacturers in South India. "The capacity expansion will strengthen our presence and strengthen our market expansion plans in the southern, western and the north east markets," he said.
The foundation stone for the plant was laid on 30 September 2014 by Francis along with Ramesh Suryanarayana, Director of Business Development, in the presence of Surendra Pattar, Site Manager, and other senior Zuari Cement executives.
Francis said the Gulbarga unit is designed to double its capacity in the future as part of the plans to cater for growing demand in northern Karnataka and neighbouring Maharashtra.
All the coal board’s men…
01 October 2014Energy costs for cement producers in India are set for volatility following the Supreme Court's decision this week to cancel the vast majority of allocated coal blocks. After ruling that the allocation process by the Indian government was illegal and arbitrary the court stopped 214 out of 218 coal blocks. The affected operators working on the blocks have six months until 31 March 2015 to wind down production. At this point the government intends to auction off the blocks.
The background to this decision lies in the so-called coal allocation scam or 'Coalgate.' Over 80% of coal in India is produced by the state owned company Coal India. Since 1993 though the Indian government has been allocating coal blocks or leases to mine coal for captive use by industries such as cement, steel and power generation.
However, the allocation process was accused of lacking transparency compared to an open bidding process. The Comptroller and Auditor General of India estimated the loss to the government was an incredible US$30bn. The allocation process received further scrutiny as Indian coal imports rose leading to accusations of inefficiency on the Coal India side and corruption on the coal block side. Meanwhile, major power cuts such as those in the summer of 2012 focused both domestic and industrial users' minds on the state of the country's coal industry.
Following the power cuts in 2012, an inter-ministerial panel recommended the de-allocation of two coal blocks held by five companies, including Gujarat Ambuja Cement, Grasim Industries and Lafarge India.
India's coal imports started to increase rapidly around 2009 with an annual growth rate of around 5% and a demand growth of 25% from 2009 – 2014. The majority of its imported coal comes from Indonesia, Australia and South Africa. In 2012 its coal imports were over 150Mt.
With Indian cement producers facing production overcapacity and falling profit margins in recent years, any disruption to input costs such as power is bad news. The growing import rates point to an increasing supply-demand mismatch. A more open process for the allocation of India's vast coal reserves should be good news for industrial users in the medium to long term. However, in the meantime they may face a jolt.
Wonder Cement plans expansion
01 October 2014India: Wonder Cement Limited is planning to expand the capacity of its cement plant at Tehsil Nimbahera in Chittorgarh district of Rajasthan. The company has placed an order with Gebr. Pfeiffer for raw meals and coal mills.
Sagar to acquire BMM Cements
01 October 2014India: Sagar Cements is planning to acquire BMM Cements, which has a 1Mt/yr cement factory and a 25MW captive power plant in Andhra Pradesh. Sagar intends to use the US$70.5m it has raised by selling a 47% stake in France's Vicat for the acquisition.
India: Teja Cement is planning a 3Mt/yr limestone mining project in Kadapa, Andhra Pradesh. The limestone will be used for its integrated cement plant, which will be built in the same location. Environmental clearance has been received. The mining project is expected to commence after completion of the civil works of the cement and clinker projects.