Economy & Market

'CCI's fine may lead to consolidation in cement sector'

Published

13 years ago

June 26, 2012

admin

Fitch Ratings said that the levy of Rs 6,300-crore penalty on 11 cement companies by the Competition Commission of India (CCI) will lead to further consolidation in the industry. The domestic cement industry is unique with 57 per cent of the capacity being consolidated with the top eight players.The rest of the industry is highly fragmented with small-to-medium sized companies. They mostly have uneconomical scale of operations.Smaller firms with uneconomic cost structures would become uncompetitive and face very significant deterioration in their credit profiles, said Fitch. As such the fragmentation level in the industry is expected to reduce. Larger and vertically integrated companies are likely to gain market share.While the impacted companies are considering approaching the Competition Appellate Tribunal against the order, in the event the fine is imposed, the amount of penalty to be paid as a percentage of their year-end (FY12) EBITDA is significant and ranges between five per cent and 64 per cent.The impact on credit profiles of most of these entities is likely to be minimal given their relatively low financial leverage, except for Century Textiles and Industries and Jai Prakash Associates, Fitch Ratings said.

Concrete

UltraTech Cement boosts capacity with new clinker line

Published

13 hours ago

April 21, 2025

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UltraTech Cement has commissioned a 3.35 million tonnes per annum (Mt/yr) brownfield clinker line and one of two 2.7Mt/yr cement grinding mills at its Maihar facility in Madhya Pradesh. The second mill is expected to be operational in Q1 of FY2026. The company has also expanded its Dhule (1.2Mt/yr) and Durgapur (0.6Mt/yr) grinding units and inaugurated its first bulk terminal in Lucknow with a 1.8Mt/yr handling capacity.

Concrete

Ambuja Cements gets a new CEO

Published

13 hours ago

April 21, 2025

Roshna

Ambuja Cements has named Vinod Bahety as its CEO for a three-year term, following Ajay Kapur’s elevation to Managing Director. Bahety, formerly the company’s CFO, brings over 25 years of experience in finance and manufacturing, including a previous role as Group Head of M&A at Adani Group. Other key appointments include Rakesh Tiwary as CFO, Madhavi Isanaka as Chief Digital Officer, Vaibhav Dixit as Manufacturing Head, and Ashwin Raikundaliya as Chief Sustainability Officer.

Image source:www.exchange4media.com

Concrete

Dalmia Bharat reaches 49.5 MTPA with Rohtas expansion

Published

13 hours ago

April 21, 2025

admin

Dalmia Bharat has successfully achieved its FY25 production capacity target of 49.5 million tonnes per annum (MTPA). This milestone was reached following the commencement of commercial production at its Rohtas Cement Works (RCW) in Bihar, where an additional 0.5 MTPA capacity has been added from March 30, 2025.
The expansion, which involved an investment of `96 crore, boosts the Rohtas plant’s total capacity to 1.6 MTPA. This development underscores the company’s continued focus on strengthening its presence in eastern India and aligns with its long-term goal of scaling total capacity to between 110 and 130 MTPA by the year 2031.
Puneet Dalmia, Managing Director and CEO, Dalmia Bharat, shared, “The Eastern region holds immense promise, and this expansion is a reflection of our commitment to contribute meaningfully to its infrastructure growth. Reaching the 49.5 MTPA mark is a key step in our journey towards sustainable and strategic expansion.”