Displaying items by tag: India

India: The state government of Himachal Pradesh has announced the forthcoming reopening of Adani Group's Darlaghat and Gagal cement plants. Reuters has reported that truck drivers' unions agreed to a reduced freight rate offered by Adani Group. The producer shut the plants on 15 December 2022, claiming that it faced prohibitively high operating costs, including high freight charges.

Truck drivers will now receive rates of US$0.12/t/km for despatches in small delivery trucks and US$0.11/t/km for dispatches in articulated trucks. Drivers operating at the Darlaghat cement plant previously earned fees of US$0.13/t/km, while those operating at the Gagal cement plant had earned fees of US$0.14/t/km. Adani Group had reportedly sort to lower rates to US$0.07/t/km. Unions have criticised the newly negotiated rates, pointing out the UltraTech Cement recently raised the wages of drivers at its Baga cement plant in the state to US$0.13/t/km.

India: Sagar Cements says that it will pay US$111m to acquire Andhra Cements outright. The Hindu BusinessLine News has reported that the deal will more than double the producer's capacity to 8.25Mt/yr. By 2025, Sagar Cements expects to increase the newly acquired subsidiary's clinker capacity by 1.2Mt/yr, and its grinding capacity by 600,000t/yr. The group plans to invest US$56.8m in capital expenditure before 2025 in order to realise its plans.

India: Dalmia Cement (Bharat) has successfully launched its new fleet of 35 liquefied natural gas (LNG)-fuelled trucks from its Murli cement plant in Maharashtra. The trucks are of two types, covering ranges of 50 - 600km, and will transport bagged cement and bulk raw materials. They have 28% lower CO₂ emissions than conventional diesel-powered trucks, and are thus able to eliminate 840t/yr of CO₂ emissions, while also reducing emissions of nitrous oxides (NO_x) by 59% and particulates by 91%, and eliminating emissions of sulphur oxides (SO_x).

Dalmia Cement (Bharat) says that its next move will be to launch a second fleet of 25 trucks from its Ariyalapur cement plant in Tamil Nadu. By April 2024, it plans to convert 10% of its 3000 truck-strong fleet to LNG fuel.

A spokesperson for the company said “Dalmia Cement has been following the business philosophy of Clean & Green is Profitable and Sustainable. Our overall CO₂ emissions have come down from 670kg/t to 467kg/t – one of the lowest globally – and we are focusing on realising our carbon negative goal by 2040. We are delighted to partner with GreenLine Logistics for further reduction of our Scope 3 greenhouse gas emissions.”

India: The Competition Commission of India (CCI) has approved a US$684m deal related to Dalmia Cement’s acquisition of cement, clinker and power plants of Jaiprakash Associates Limited (JAL).

Dalmia Cement says that the acquisition - which includes 9.4Mt/yr of cement capacity, 6.7Mt/yr of clinker capacity and 280MW of power generation capacity - will allow it to expand its footprint into the central region and transform into a pan-Indian company. More than half of JAL’s cement capacity is in central India. Dalmia Cement anticipates reaching a cement production capacity of 75Mt/yr by the 2027 fiscal year and, due to other expansion plans, 110 - 130Mt/yr by the 2031 fiscal year.

This latest transaction, once approved by the relevant regulators, will see the complete exit of JAL from the cement business.

India: Grasim Industries, a subsidiary of Aditya Birla Group, has posted a 44% year-on-year rise in its consolidated net profit to US$303m for the third quarter of the 2023 Indian fiscal year, a period that ended on 31 December 2022.

During the quarter under review, the company’s consolidated revenue rose by 17% to US$3.45bn. Grasim Industries said that the growth in revenue was driven by strong performances by its subsidiaries UltraTech Cement and Aditya Birla Capital. UltraTech Cement’s sales for the quarter rise by 12% year-on-year to 26Mt. This led to an increase in capacity utilisation rate from 75% to 83%.

France: Vicat’s full year results for 2022 show a 16.6% year-on-year rise in consolidated sales, from Euro3.12bn to Euro3.12bn. Its earnings before interest, tax, depreciation and amortisation (EBIDTA) came to Euro570m, a 7.9% fall compared to Euro619m in 2021. Its net income for 2022 was Euro156m, a fall of 23.6% year-on-year from Euro204m in 2021.

Commenting on these figures, Guy Sidos, the Group’s chair and chief executive officer, said “In 2022, the Vicat Group demonstrated resilience amid tough conditions. Faced with an unfavourable basis of comparison as a result of the sharp post-Covid rebound in business trends during 2021, a very strong increase in energy costs and non-recurring industrial costs in the US, France and India, we responded rapidly, raising our selling prices significantly across almost all the markets in which we operate to offset the impact of inflation. We have made progress with our policy of lowering our greenhouse gas emissions by harnessing existing solutions and investing in technologies that will enable us to reach our new 2030 targets.”

India: Adani Group is in talks with lenders to repay a US$500m bridging loan facility it used to buy controlling stakes in ACC and Ambuja Cements in 2022. Adani is looking to repay the loan with cash during February 2023, according to the Economic Times. The loan was underwritten by Barclays, Deutsche Bank and Standard Chartered. The financial consortium lending to Adani also includes DBS, MUFG, Sumitomo Mitsui Banking Corp, First Abu Dhabi Bank, Intesa and Mizuho.

The Economic Times’ report comes a day after the group said its companies face no material refinancing risk or near-term liquidity issues, in its latest attempt to calm investors spooked by Hindenburg Research’s critical report on its business practices.

India: Antony Waste Handling Cell Limited (AWHCL) has won a US$124m contract for construction and demolition waste management services in Mumbai. Press Trust of India News has reported that the contract covers nine municipal subdivisions of the city and will last until 2044. AWHCL said that the contract will enable it to develop the circularity of cement and concrete within the local economy. It expects to commission 600t/day-worth of waste processing capacity by March 2023. The waste management company expects a recovery rate of 25% recyclable materials.

AWHCL chairman and managing director Jose Jacob said "This sub-segment of solid waste management provides tremendous growth opportunities given the number of infrastructure development projects underway, and the government's push to accelerate the economic growth with infrastructure being one of the important growth pillars."

Bangladesh: The European Union (EU) and Spanish ambassadors and Swiss chargé d'affaires to Bangladesh have formally requested that Bangladeshi authorities lift all restrictions on LafargeHolcim Bangladesh's sale of crushed limestone in the country. The Financial Express newspaper has reported that Bangladeshi court previously ruled in favour of LafargeHolcim Bangladesh's right to sell its crushed limestone 'on the open market' on 5 January 2022. Limestone Importers and Suppliers Group had challenged the legal status of such sales, given that the raw limestone used in LafargeHolcim Bangladesh's produces its crushed limestone production is imported from India.

The Bangladesh government granted LafargeHolcim Bangladesh, a subsidiary of Switzerland-based Holcim, a temporary licence to resume its crushed limestone operations on 27 March 2022. This resulted in protests by local limestone producers.

India: Shree Cement recorded a 20% year-on-year rise in its consolidated sales to US$1.55bn in the first nine months of the 2023 financial year, from US$1.29bn in the first nine months of the 2022 financial year. The group's total expenditure rose by 36% to US$1.29bn from US$952m. Thus, Shree Cement recorded a 56% drop in net profit, to US$90.1m from US$203m.