Displaying items by tag: India
Tamil Nadu government announces 'Amma Cement Scheme'
26 September 2014India: The Tamil Nadu government has announced the 'Amma Cement Scheme,' under which it will procure cement from private manufacturers with the intention of re-selling at a set price in the event of a possible future price increase.
J Jayalalithaa, Tamil Nadu's chief minister, said that she had recently discussed the situation regarding production of cement from the state and supply from outside with officials. Tamil Nadu consumes 1.7 – 1.8Mt/month of cement. Some 400,000 – 450,000t is supplied by Andhra Pradesh, where prices have recently risen substantially. As such, Tamil Nadu has reduced its purchases from Andhra Pradesh to 150,000 – 300,000t/month. However, Tamil Nadu's cement producers have risen their own prices as demand grows.
The Amma Cement Scheme was created in response. The Tamil Nadu government will purchase 200,000t/month of cement from private manufacturers and re-sell it through local distributors. Beneficiaries are eligible for a maximum of 750 bags and the cement could be bought by submitting a government-approved building plan or aroad plan. Those who want to buy cement for repair and renovation are eligible for 10 - 100 bags. Tamil Nadu Cement Corporation will be the nodal agency and the scheme will be implemented by Tamil Nadu Civil Supplies Corporation and Rural Development Department.
JSW Cement to make only Portland slag cement
26 September 2014India: JSW Cement Ltd plans to switch completely to the production of Portland slag cement (PSC), according to its CEO, Anil Kumar Pillai. According to Pillai, slag cement is ideally suited to both infrastructure projects and housing construction.
"We have 6Mt/yr of cement production capacity and will be producing only this variety of cement," said Pillai. The price of PSC is almost the same as the price of ordinary Portland cement. JSW Cement expects a massive increase in demand for slag cement in view of the formation of the new Central Indian government and new governments in some States, with increased focus on infrastructural projects.
"The Andhra Pradesh government has issued an order mandating the use of only Portland slag cement in all government constructions,'' said Pillai. He added that Portland slag cement is very popular outside India, accounting for more than 90% of total cement production in some countries. However, in India, out of total 360Mt/yr cement produced, it accounts for just 7%.
India: On 24 September 2014 India's Supreme Court cancelled all but four of the 218 coal blocks that have been allocated since 1993.
"We are relieved that the uncertainty is over, but now where do the cement and power plants attached to these mines get coal from?" asked Sushil Maroo, a director of Essar Energy and CEO of Essar Power. "What happens to the expenses already incurred? The government needs to give clarity on the modus operandi." The company stands to lose three coal blocks.
"This move will have an extremely negative impact on cement, steel and power companies as an issue that is almost 21 years old is now being addressed," said Issac George, CFO at GVK Power & Infrastructure. "A lot of investments have gone into these blocks, which will now be impacted. Most companies will have no option but to bid in the new round of auctions as one cannot depend on imported coal."
Coal-based projects represent about 59% of India's total installed power generation capacity. Apart from the cancellation, operational mines will have to pay a penalty of US$4.79 for every tonne of coal extracted since they started.
Coal India is set to take over the mines. In 2013 - 2014 Coal India produced 462Mt of coal, missing a target of 482Mt. The coal ministry anticipates that local supplies will fall by as much as 185Mt short of the country's projected demand of 950Mt in 2016 - 2017. The gap could widen if the cancelled mines fail to produce the projected volumes of coal.
The India Cements to demerge Chennai Super Kings into a separate company
25 September 2014India: The India Cements Ltd (ICL) has decided to hive off Chennai Super Kings (CSK), a cricket team owned by it and run as a division of the company, into a wholly-owned subsidiary. Chennai Super Kings is a BCCI (Board of Control for Cricket in India) and IPL (Indian Premier League) Franchise Twenty20 Cricket Tournament Team.
"We propose to de-merge CSK division into a wholly-owned subsidiary of our company,'' said ICL. The de-merger proposal will be taken up for the consideration of the board at its ensuing meeting. CSK has given ICL a new brand image and a pan-India corporate identity.
The iconic stature of M S Dhoni, the skipper of CSK, has helped the company in its forays into news markets such as Rajasthan and Gujarat. Thanks to CSK, ICL has become a household name in India.
Sagar Cements announces acquisition of BMM Cements
25 September 2014India: The board of directors of Sagar Cements Ltd (SCL) has approved the company's move to acquire a 100% stake in BMM Cements Ltd, which owns a 1Mt/yr capacity cement plant and other assets in Andhra Pradesh. The proposed acquisition will take SCL group's total cement capacity to 3.75Mt/yr from the existing capacity of 2.75Mt/yr.
BMM has an enterprise value of US$88.4m, 155Mt of limestone reserves and a 25MW captive power plant. The deal size is currently unknown, although SCL will take over BMM's debt.
"The proposed acquisition of BMM Cements comes at an opportune time wherein the demand environment and pricing in our region of operations looks encouraging," said Srikanth Reddy, executive director of SCL. "The two companies are wholly complementary geographically, with considerable potential for synergies."
Star Ferro and Cement appoints new CEO and CFO
24 September 2014India: Star Ferro and Cement has announced that the board of directors has appointed Sanjay Kumar Gupta as company CEO and Dilip Kumar Agarwal as company CFO, both with effect from 20 September 2014.
New LC3 cement mixture developed
24 September 2014India: Swiss, Indian and Cuban researchers have come together to develop limestone calcined clay cement (LC3), which can help reduce the carbon dioxide emissions of cement by almost 30%.
"The LC3 project is an example of scientific and technical collaboration between Switzerland and India. The innovative cement production process on which these institutions are working is of great economic and environmental significance," said Switzerland Ambassador to India Linus von Castelmur.
The LC3 is a synergetic hydration of clinker, calcined clay and crushed limestone to achieve the performance required from commercial cements, with clinker factors as low as 0.40. It also costs less than traditional types of cement.
"The testing and application phase is over, now it has to pass through standardisation committee before it is accepted by the industries. The research that has been done will not be patent protected but available to everyone," said Castelmur.
JSW Cement plans 4.3Mt/yr capacity cement plant in Karnataka
24 September 2014India: JSW Cement is considering the construction of a 4.3Mt/yr cement plant in Gulbarga, Karnataka. The company is optimistic about demand revival in the south of India, as economic activity picks up in Andhra Pradesh and Telangana, according to SS Sandhu, associate vice president of JSW Cement.
At present, JSW Cement has 6.4Mt/yr of cement production capacity in Karnataka, Andhra Pradesh and Maharashtra. Sandhu said that the company already has land in Gulbarga and the region is rich in limestone. Another advantage is that supplies could be made from Gulbarga to cement markets in Maharashtra and Gujarat. Since the group company, JSW Steel, produces slag, JSW Cement could manufacture slag cement.
When asked about the economic slow-down, Sandhu conceded that there has been a contraction in construction activity in the south of the country, but that stability has now returned. A lot of projects are expected to come up in the near future in Andhra Pradesh and Telangana, including ones at the new Andhra Pradesh capital that is planned at Vijayawada. The company expects that a pick-up in demand will drive its capacity utilisation to 75% by the end of the current fiscal year from 55 – 60% at present.
Chettinad Cement prepares for US$616m expansion plans
18 September 2014India: Chettinad Cement Corporation is moving forward with plans for projects in Andhra Pradesh, Maharashtra and Karnataka costing a total of US$616m.
The Indian cement producer is building a greenfield 3.5Mt/yr integrated cement plant in the Guntur district of Andhra Pradesh at a cost of US$181m. It is expanding its cement plant at Gulbarga in Karnataka to 5.75Mt/yr from 2.5Mt/yr and adding a 130MW captive thermal power plant at a cost of US$330m. It is also building two 2Mt/yr grinding plants and two 50MW thermal power plants at Solapur, Maharashtra at a cost of US$108m.
Chettinad Cement has received all the necessary clearances for its greenfield project in Andhra Pradesh and an expansion project in Karnataka, according to local media. The projects in Andhra Pradesh and Karnataka are expected to be operational within three years of the start of construction. The company has acquired 1000 acres for its proposed cement plant in Andhra Pradesh and 120 acres for its grinding plant in Maharashtra.
"In the last 20 years, the installed capacity of the cement units has increased from 1Mt/yr to 13.5Mt/yr. With the commissioning of new and expanded units, it is possible to scale up to 20Mt/yr,'' said Chettinad Cement Group Managing Director MAMR Muthiah.
Muthiah added that the company had a debt-equity ratio of 1:1. The upcoming projects will be financed through a combination of debt and internal accruals. Chettinad Cement is also considering expansion opportunities in Gujarat, Madhya Pradesh and Rajasthan. At present, Chettinad Cement is currently operating at 50% of its production capacity due to 'sluggish' market conditions.
HeidelbergCement India’s director Bernd Scheifele resigns
17 September 2014India: HeidelbergCement has announced that Bernd Scheifele has tendered his resignation from the position of director of HeidelbergCement India with effect from 10 September 2014. Scheifele remains chairman of HeidlerbergCement's managing board.