Displaying items by tag: Uttar Pradesh
India: UltraTech Cement has completed its US$2.5bn acquisition of six integrated cement plants and five grinding plants from Jaiprakash Associates. The transfer was made effective at a meeting of the Scheme Implementation Committee of the board of directors of UltraTech Cement. The purchase includes plants in Himachal Pradesh, Uttar Pradesh, Uttarakhand, Madhya Pradesh and Andhra Pradesh with a total production capacity of 21.2Mt/yr.
“This move is essentially for geographic market expansion, enabling UltraTech’s entry into the high growth markets of India where it needed greater reinforcement,” said Kumar Mangalam Birla, chairman of UltraTech. He added that the acquisition would add synergies in manufacturing, distribution and logistics.
Following the purchase UltraTech holds 18 integrated plants, one standalone clinker production plant, 25 grinding plants and seven bulk terminals, increasing its Ordinary Portland Cement capacity to 93Mt/yr. UltraTech said that the new production units will make it the fourth largest cement producer in the world outside of China and that it confirms its place as the largest producer in India.
India: Dalmia Bharat's income has risen by 14% year-on-year to US$577m in the first half of its financial year, which ended on 30 September 2016, from US$505m in the same period of the previous financial year. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 28% to US$135m from US$105m. Its sales volumes rose by 21% to 7.18Mt from 5.95Mt. The cement producer explained that it had focused on building up existing capacity and entering new markets in Uttar Pradesh and Madhya Pradesh during the period.
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.
Mangalam Cement starts production at Aligarh grinding plant
20 September 2016India: Mangalam Cement has started commercial production at its 0.75Mt/yr grinding plant in Aligarh, Uttar Pradesh following trials in August 2016. The cement producer has increased its overall cement production capacity to 4Mt/yr. Part of the BK Birla Group, the company produces 43 grade cement, 53 grade cement and Portland Pozzolana Cement (PPC) and markets it under the brand name of 'Birla Uttam.'
India: Kanodia Group has launched its new cement brand ‘Bigcem’ at Ghaziabad, Uttar Pradesh. The product will be targeted at markets in Uttarakhand and Western Uttar Pradesh to start with followed by expansion in Delhi and the National Capital Region, according to the Hans India newspaper. Gautam Kanodia, director of Kanodia Group, said that the product is expected to give 40% more strength than the general Bureau of Indian Standards standard.
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.
Indian cement consumption down for first time in 20 years
19 August 2011India: Cement consumption in India fell for the first time in nearly 20 years in the three months to 30 June 2011, with a political impasse in large consumer states holding up infrastructure and realty projects. Demand fell by 0.68% during the period compared with the corresponding period in 2010 but demand changes were different depending on location. In Andhra Pradesh, demand contracted by 21% and in Karnataka it was down by 8.04%, according to data from Cement Manufacturers' Association (CMA).
Elsewhere, demand was down by 2% in June 2011 in Kerala and in Tamil Nadu, it was down by 1.9%. In comparison Gujarat saw cement demand grow by 4.9%, but growth was less strong than the same period of 2010, when 15% cement demand growth was seen.
The demand for cement is not assisted by problems that are expected to hinder government's proposed USD107bn investment in state road development during the 12th Plan period. The government has cited a lack of capacity in the private sector to make large investments, political sensitivity surrounding road-tolling, land acquisition disputes (which have caused a slow-down and resentment from locals at the site of the Formula 1 circuit site in Greater Noida, Uttar Pradesh) and a shortage of trained manpower as key problem-areas that may hamper the execution of the programme, due to start in 2012.
It is estimated that because of these problems, around 80% of the cost of the proposed investment will have to be met by public funds. The plan includes the construction of over 30,000km of new dual-carriageways, 5000km of four-lane highways and another 41,500km of single-track roads that are due for restructuring. The plan stipulates that the roads will be finished with either cement-based finishes or asphalt.