Economy & Market

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

Published

11 years ago

June 26, 2012

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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

Sustainable solutions by Ambuja Cement, ACC

Published

3 days ago

December 4, 2023

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Ambuja Cement and ACC the cement and building material companies of the diversified Adani Group announced solutions to an array of customer concerns while keeping environment sustainability at its core. Examples of this are the concrete mix proportioning solution; designed to optimise the proportions of aggregates, sand and water in concrete mixes considering their unique properties. This helps the company optimise the resources thereby minimising wastage. The company also developed an in-house modular curing solution, also known as zero-water curing. This technique helps concrete slab curing without excessive use of water. This has helped save about 39 million litres of water across multiple sites.

Concrete

Fornnax adds 430HP secondary shredder to it’s R-series line-up

Published

3 days ago

December 4, 2023

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Fornnax technologies showcased the R4000-HD tyre shredder at the IFAT expo 2023, where the company got a platform to interact with industry professionals from domestic as well as overseas markets and demonstrate the technological prowess of their machine. The R4000-HD is a powerful machine designed to make secondary shredding and steel separation more efficient and profitable.
The machine saves electricity and man-power and due to its design features it is built to make maintenance procedures easier and also lower the wear and tear to the equipment, thus lowering operating cost. It can process various materials from types, cables, e-waste and aluminium scrap. It is built to last 20-25years. With all its features and sturdy built, it is one of the most powerful secondary shredding machines in the industry.

Concrete

Udaipur Cement Works Limited doubles its clinker capacity

Published

3 days ago

December 4, 2023

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A subsidiary of the well known JK Lakshmi Cement Ltd., Udaipur Cement Works Ltd. (UCWL) recently announced the expansion of its clinker facility taking its current capacity from 1.5MTPA to 3 MTPA at Udaipur. The company, by the end of financial year 2023-24, plans to exceed twice the current capacity from 2.2 MTPA to 4.7 MTPA. The capacity expansion has been funded through a mix of equity and debt; the company recently successfully completed its rights issue of INR 450 crores.
They have two brands under their portfolio ‘Platinum Heavy Duty Cement’ and ‘Platinum Supremo Cement’.
Also known for their commitment to renewable energy and environment sustainability, they have the first and only of it’s kind floating solar power plant of 1MWp at it’s mines, fulfilling 50% of their electricity needs.