Displaying items by tag: UltraTech Cement
UltraTech purchase of Jaiprakash Associates cement plants likely to complete by June 2017
01 March 2016India: UltraTech Cement's US$2.5bn proposed acquisition of Jaiprakash Associates' cement plants is expected to be completed by June 2017, according to UltraTech Cement.
"We have to ink definitive agreements and get permission from the High Courts. This will take time. The firm expects the agreement to be finalised in the next 12 - 15 months. Expect it to consummate by June 2017," said UltraTech Cement Chief Financial Officer Atul Daga.
Daga added that UltraTech is also looking at alternative routes in case proposed amendments to the Mines and Minerals (Development and Regulation) (MMDR) Act do not happen. In February 2016 the government took views from public, states and industry on amending the MMDR Act to include provisions allowing transfer of captive mines granted through procedures other than auction.
The transfer of captive mining leases, granted other than through auction, would allow banks and financial institutions to liquidate assets where a company or its captive mining lease is mortgaged. The move will allow mergers and acquisitions in the Indian domestic market, especially in the cement sector, in which several deals are currently on hold.
UltraTech Cement signed a Memorandum of Understanding to buy Jaiprakash Associates’ cement plants in late February 2016. Altogether, the cement plants have a total cement production capacity of 22.4Mt/yr.
India: UltraTech Cement has signed a Memorandum of Understanding to buy Jaiprakash Associates’ cement plants, which have a total cement production capacity of 22.4Mt/yr. The deal includes both integrated cement plants and cement grinding plants. The plants are situated in Madhya Pradesh, Uttar Pradesh, Himachal Pradesh, Uttarakhand, Andhra Pradesh and Karnataka.
The acquisition also includes a 4Mt/yr cement grinding plant being built in Uttar Pradesh. UltraTech will pay an additional US$68.7m for this plant once it is completed. The deal will increase UltraTech’s total cement production capacity to 90.7Mt/yr from 68.3Mt/yr. The transaction is subject to regulatory approval.
Ultratech Cement net profit rises by 37% to US$83m in Q3
21 January 2016India: Ultratech Cement has reported a 37% rise in its net profit to US$83m for the quarter that ended on December 2015. It attributed the growth to lower operating costs and higher sales. The subsidiary of Aditya Birla Group reported a net profit of US$59m in the same period of the 2014 – 2015 financial year.
The company's total income rose by 4% year-on-year to US$910m from US$875m. Grey cement sales rose by 7% to 11.26Mt/yr from 10.51Mt.
"Though cement prices remained subdued, the performance during the quarter was encouraging, driven by operational efficiencies, judicious fuel mix and lower energy costs. This has resulted in lower operating costs," Ultratech said in a statement. However, this benefit was partially offset by rise in costs due to District Mineral Foundation levy in terms of the provisions of the Mines and Minerals (Development) Amendment Act, 2015 and amendment to the Payment of Bonus Act.
UltraTech may buy stake in Kenya’s ARM Cement
12 January 2016Kenya/India: UltraTech Cement Ltd may buy a controlling stake in Kenya's ARM Cement Ltd. ARM announced on 23 December 2015 that it was in talks with an unidentified institutional investor about a US$125m investment.
UltraTech Cement appoints K K Maheshwari as Managing Director
04 January 2016India: UltraTech Cement has appointed K K Maheshwari as Managing Director and Additional Director for a period of four years with effect from 1 April 2016. Maheshwari is a chartered accountant with over 38 years of experience.
The post was previously held by O P Puranmalka, who will cease to be the company's Managing Director on 31 March 2016, but will continue as a Non-executive Director from 1 April 2016.
India: The Competition Appellate Tribunal has set aside a US$945m penalty imposed on 11 cement firms by the Competition Commission of India (CCI) on accusations of cartel behaviour and asked the fair trade regulator to resubmit the case. The Tribunal also allowed the cement manufacturers to withdraw the 10% penalty amount already deposited with the CCI, according to the Press Trust of India.
The judgement follows appeals filed by the cement firms and their industry body, the Cement Manufacturers Association, against the two CCI orders passed in June - July 2012. The cement companies included ACC, Ambuja Cements, Binani Cements, Century Textiles Ltd, India Cements, JK Cements, Lafarge India, Madras Cements, Ultratech, JP Associates and Shree Cements.
The CCI had passed the orders after an investigation into complaints, including from Builders Association of India (BAI), against alleged price collaboration between cement firms.
The orders were later challenged at the Competition Appellate Tribunal, which ordered that 'the impugned order is set aside and the matter is remitted to the CCI for fresh adjudication of the issues relating to alleged violation" of the relevant sections of the Competition Act.'
India: UltraTech Cement is reportedly in advanced discussions with Reliance Infrastructure on the sale of its cement units.
Reliance Infrastructure put up its cement units for sale in October 2015 to reduce its US$3.86bn debt. The company earned a revenue of US$56.7m from its 5.5Mt/yr of operational capacity in July - September 2015. Reliance Infrastructure's cement units are expected to fetch an enterprise valuation of US$749 - 824m.
Kochi set to emerge as cement hub with new terminals
28 October 2015India: With one more cement terminal set to commence operations in November 2015 on the port premises and two more in the pipeline, Kochi, Kerala is set to emerge as a major cement hub in south India.
Cochin Port Trust sources said that the number of cement terminals at the port would go up to three with the Zuari Cement terminal set to commence operations in November 2015. This is in addition to the UltraTech and Ambuja cement terminals in operation already. Penna Cement has begun construction works and decks have been cleared for Malabar Cements to begin work on its proposed terminal. All of the terminals, excluding one, would be capable of raising their throughput to 1Mt over the years, according to Port Trust.
These terminals will not only increase income for the financially-troubled Cochin Port Trust, but also generate substantial employment involving evacuation of the cargo out of Kochi to various parts of Kerala. For every 10,000t of cement imported, the Port Trust will earn up to US$230,714/yr in both vessel and cargo related charges.
Figures show that cement throughput at the Kochi port has grown substantially between 2010 - 2011 and 2014 - 2015. Cement throughput was 2.59Mt during 2010 - 2011. It has gone up to 7.03Mt during the 2014 - 2015 financial year. Cement throughput almost doubled from 3.11Mt during 2012 - 2013 to 6.04Mt during 2013 - 2014.
UltraTech Cement’s second quarter net profit up by 3%
20 October 2015India: Aditya Birla Group's UltraTech Cement has reported 3% year-on-year growth in its consolidated net profit at US$65.8m for the quarter that ended on 30 September 2015, helped by increased sales and better operating margins.
UltraTech Cement's total income rose by 4% to US$927m in the quarter. Its domestic cement sales volume increased by 5% year-on-year. While operating costs were lower due to lower energy costs, the benefit was partially offset due to the District Mineral Foundation levy in terms of provisions of the Mines and Minerals (Development) Amendment Act, 2015.
UltraTech said that its capital expenditure programme is on track. During the quarter, it commissioned a 1.6Mt/yr grinding plant in Jhajjar, Haryana and a 1.6Mt/yr grinding plant in Dankuni, West Bengal. "As a result, the cement capacity is enhanced to 64.7Mt/yr in India. The company also commissioned a 2Mt/yr bulk terminal on outskirts of Pune. With the further commissioning of a 5MW waste heat recovery system in Rawan, Chhattisgarh, power generation from waste heat recovery is augmented to 53MW," said the company in a statement.
UltraTech Cement expects cement demand to pick up in the October 2015 – March 2016 period. "With the governments' focus on infrastructure development, housing sector, smart cities and roads, among others, UltraTech Cement is well positioned across the country to meet the expected rise in demand and participate in the next phase of growth in the country," said UltraTech Cement.
India: Overseas investments or the outward foreign direct investment by Indian companies more than halved to US$1.24bn in September 2015, according to media reports. This compared to US$3.12bn in September 2014. In August 2015, the outward foreign direct investment by Indian companies stood at US$2.19bn.
Out of the total US$1.24bn invested abroad, some US$137m was invested in equity, US$366m through loans and US$738m in the form of issue of guarantee. Major investors overseas during the month included Ultratech Cement in the Middle East (US$234m), Tata Power in Singapore (US$90m) and Tata Communications in Singapore (US$67.9m).