Displaying items by tag: India

India: The board of directors of Gujarat Sidhee Cement Ltd has appointed R Mohnot as CFO and company secretary effective from 1 October 2014.

Energy 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.

India: 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.

India: 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.

India: Harish Badami has taken over as CEO and managing director of ACC effective from 13 August 2014. The former CEO and managing director, Kuldip Kaura, left his position on the same date. The board of ACC, in which Holcim has a majority stake, had approved Badami's appointment in June 2014.

Immediately before joining ACC on 1 August 2014, Badami had served as managing director of Celanese India. He has held similar positions of president and managing director of Dow Chemical India, as well as managing director of Rohm and Haas India, before its acquisition in 2009 by Dow Chemical.

India: Orient Cement has appointed Sushil Gupta as chief financial officer following a meeting of its board of directors. Other appointments included Rahul Deshmukh as chief operating officer and S K Pandey as plant head of Devapur.

India: The director of JK Cement, Shri Jagendra Swarup, passed away on 30 July 2014. His replacement is expected to be announced shortly.

India: JK Cement has appointed Sushila Devi Singhania as an additional director with effect from 26 July 2014.

India: Reliance Infrastructure Ltd (R-Infra), part of Reliance Group, has named M S Mehta as chief executive officer (CEO) with effect from 7 July 2014. He will take over as CEO from Lalit Jalan, who held the portfolio for more than seven years.

Mehta was the Group CEO of Vedanta Resources Plc until recently, having held the position for five years. Prior to that, Mehta was the CEO of Hindustan Zinc Ltd. Mehta is a mechanical engineer and an MBA from the Indian Institute of Management, Ahmedabad.

R-Infra is an infrastructure company developing projects, through various special purpose vehicles, in sectors such as roads, metro rail and cement. R-Infra also promoted Jalan as director (corporate strategy and affairs), saying that Jalan will steer future growth initiatives.

India: UltraTech Cement has announced that M Damodaran, the company's Independent Director, has resigned from the board with effect from 20 June 2014. Damodaran has cited increasing work load and time commitments as well as the need to reduce his board level engagements as the reasons for stepping down.