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Cement Industry: Forging ahead despite odds

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Indian cement industry is growing at a brisk pace of 9-10 per cent, in spite of the fact that it is saddled with excess capacity, and buffeted by slowing economy. However, the prospects of the industry remains bright as the high level of housing deficit in India and the infrastructure sector growth will drive the industry’s growth going forward.The cement industry in India is the second largest market after China with a total capacity of over 300 m tonnes (MT) as of financial year ended 2011-12. The industry has gone through a consolidation phase due to which the top three players alone control over a third of the total capacity. However, due to large number of players, the balance capacity remains quite fragmented.During the last decade, the Indian cement industry has registered a decent growth of about 9 per cent to 10 per cent. However, the per capita consumption of cement still remains quite low when compared with the world average. When compared with China’s per capita consumption of 1,380 kg in 2010, India’s per capita consumption at 230 kg is abysmally poor. The positive thing is that low per capita consumption indicates that there is huge scope for growth in the Indian cement industry.Cement industry in India is largely divided into five main regions, viz. north, south, west, east and the central region. This is because cement being a bulk commodity its transportation over long distances is uneconomical. In the last on year, capacity additions have happened at a faster rate than the growth in demand, due to which prices of cement have remained subdued.The principal growth driver for the cement industry is residential housing. However, with the government’s thrust on the infrastructure sector, this sector is likely to emerge as the next growth driver.ConcernsThe cement industry has been facing quite a few challenges due to adverse investment environment and rising fuel prices. Investment in cement plants is always on a long-term basis due to the long gestation period. Also, with interest rates at a high, the capital costs are high too. Licensing of coal and limestone reserves, supply of power from the state grid, etc. are controlled by the government, so the cement companies have no option but to buy from the state. The shortage of coal and the volatile fuel prices have forced the producers to rely on captive power. There is tough competition amongst the players, which also takes a toll on the company’s profitability.The Reserve Bank of India’s policy measures to increase interest rates aimed at curbing inflationary pressures resulted in credit crunch thereby adversely impacting real estate, infrastructure and other construction projects. The vagaries of monsoons and logistical bottlenecks slowed down construction work and, as a result, average industry capacity utilisation at one point fell to as low as 70 per cent. The low cement demand dented average realizations, while additional capacities exacerbated the oversupply situation. On the other hand, rising input and fuel costs hurt the margins of cement players, while export markets saw sluggish growth due to the slowdown in the global economy, especially the sagging construction activity in the Gulf region.ProspectsRising inflation, high interest rates, high prices of commodities and fuels have slowed down Indian economy and since the cement industry’s prospects are linked to the prospects of the economy, the cement industry would face an uphill task ahead. The housing sector consumes almost 60-70% of the country’s cement and if the slowdown in real estate persists for an extended period, it would adversely impact the consumption of cement.Despite the overcapacity situation in the cement industry, several major capacity additions on the anvil in the next few years in anticipation of rise in cement demand. As a result, the supply overhang would persist for the next two-three years, putting pressure on realizations. The demand for cement is likely to grow at around 8-9 per cent due to the government’s thrust on infrastructure and housing.ACCCement House, 121, Maharshi Karve Road, Mumbai – 400 020Phone: +91-22-33024321 Fax: +91-22-66317440 www.acclimited.comKuldip K Kaura, CEO & MDACC is India’s foremost manufacturer of cement and concrete. ACC’s operations are spread throughout the country with 16 modern cement factories with installed capacity of about 30 mn tonnes p.a., more than 40 Ready Mix Concrete plants, 21 sales offices, and several zonal offices. It has a workforce of about 9,000 persons and a countrywide distribution network of over 9,000 dealers.The house of Tata was associated with ACC upto 2000. Between 999 and 2000, the Tata group sold all 14.45 per cent of its shareholding in ACC in three stages to subsidiary companies of Gujarat Ambuja Cements (later called Ambuja Cement), who then became the largest single shareholder in ACC. In January 2005, Holcim Group of Switzerland announced its plans to enter into a long-term strategic alliance with the Ambuja Group by acquiring a majority stake in Ambuja Cements India (ACI), which at the time held 13.8 per cent equity stake in ACC. Holcim, along with ACI, also made an open offer to ACC shareholders, through Holdcem Cement and ACI, to acquire a majority shareholding in ACC. Consequently, ACI’s equity stake in ACC increased to 34.69 per cent after which ACI declared itself as a promoter of ACC.Ambuja CementsElegant Business Park, MIDC Cross Road ‘B’, Off Andheri-Kurla Road., Andheri (E), Mumbai 400059Tel : 022 – 40667000 www.ambujacement.comOnne van der Weijde, Managing DirectorAmbuja Cements Ltd (ACL) is one of the leading cement manufacturing companies in India. The company, initially called Gujarat Ambuja Cements, was founded by Narottam Sekhsaria in 1983 with a partner, Suresh Neotia. The company commenced cement production in 1986. The global cement major Holcim acquired management control of ACL in 2006. Holcim today holds little over 46% equity in ACL. The Company is currently known as Ambuja Cements. ACL’s current cement capacity is about 25 million tonnes. The company has five integrated cement manufacturing plants and eight cement grinding units across the country. ACL is one of the most efficient cement manufacturers in the world. ACL is the first Indian cement manufacturers to build a captive port with three terminals along the country’s western coastline to facilitate timely, cost effective and environmentally cleaner shipments of bulk cement to its customers. The company has its own fleet of ships. ACL has also pioneered the development of the multiple bio-mass co-fired technology for generating greener power in its captive plants.Bagalkot CementStadium House, Block No.1, 6th Floor, Veer Nariman Road, Churchgate, Mumbai – 400 020.Tel : 022-22023841, 22023897 Fax : 022-22022884 www.bagalkotcement.comAjay Kanoria, Chairman & MD,Bagalkot Cement and Industries (BCIL) is a Kanoria Group Initiative that was incorporated in 2007 to acquire the cement division of Bagalkot Udyog. BCIL manufactures two classes of cement – BAGALKOT SHAKTI and BAGALKOT SUPREME with four decades of technical expertise, innovation, quality control and professionalism. It is one of the many cement manufacturing units in the North Karnataka. The cement factory started in 1955 with the wet process kiln of 300-tpd capacity. It was converted to a dry process kiln in 1982. Currently the plant manufactures 297,000 TPA of Cement.Binani CementMercantile Chambers, 2nd Floor, 12 JN Heredia Marg, Ballard Estate, Mumbai – 400 001Tel : 022-22690506-10 Fax : 022-22690001, 22690003 www.binaniindustries.comBraj Binani, ChairmanFollowing the restructuring of the Braj Binani Group, between 1996 and 2004, Binani Industries (BIL) was founded to serve as the holding company for Binani Cement, Binani Zinc, Goa Glass Fibre and BT Composites. After establishing its footprint firmly in India, China and Dubai, the Braj Binani Group is now envisioning to explore newer global horizons. Setting its sights on emerging markets like South Africa, East Africa and Mauritius, the Group is endeavouring to establish a strong network of Binani Cement presence across the globe. The Braj Binani Group’s focused continual improvement has been recognised with internationally accepted certifications for its various ventures.Birla Corporation14, Government Place (East), Kolkata 701 069Tel: 033-22483131(D), 22481111 Fax: 033-22486960, 4572 www.birlacorporation.comHarsh V. Lodha, Chairman,Birla Corporation is the flagship company of the M.P. Birla Group. Incorporated as Birla Jute Manufacturing Company in 1919, the late chairman Madhav Prasad Birla transformed it from a manufacturer of jute goods to a leading multi-product corporation with widespread activities. Under the chairmanship of Priyamvada Birla, the company crossed the Rs 1300-crore turnover mark and the name was changed to Birla Corporation in 1998. After the demise of Priyamvada Birla, the late Rajendra S. Lodha, became the chairman of the M.P. Birla Group. Harsh V Lodha is currently the chairman of the company. Birla Corporation has products ranging from cement to jute goods, PVC floor covering, as well as auto trims (jute felt-based car interiors).Cement Corporation of IndiaScope Complex, Core No. 5, 7, Lodhi Road, New Delhi – 110 003.Tel : 011-24360005/ 24360099 Fax : 011-24360464/ 24364555 www.cementcorporation.co.inR. P. Tak, Chairman & MD,Cement Corporation of India (CCI) is a company established in 1965 and wholly owned by Government of India. CCI is a multi unit organisation at present having ten units spread over eight states with a total annual installed capacity of 38.48 lakh MT. In line with the advancement in cement technology CCI had been adopting the latest one with one million tonne plants at Tandur and Nayagaon. CCI manufactures various types of cements like Portland Pozzolana Cement (PPC), Portland Slag Cement (PSC) & Ordinary Portland Cement (OPC) of varying grades viz. 33, 43,53 and 53S (special grade cement for manufacture of sleepers for Indian Railways) grades. under strict quality control with the brand name of CCI Cement. CCI has a strong work-force of 988 employees.Cement Manufacturing Company

281, Deepali, Pitampura, New Delhi – 110 034Tel: 011-27033821/22/27 Fax: 011-27033824 www.cmcl.co.inSajjan Bhajanka, Vice Chairman & MDCement Manufacturing Company (CMC) is the largest cement manufacturer in north east India. The company’s plant is spread across 40 acres of land in the idyllic town of Lumshnong, a strategic location at Meghalaya that ensures easy availability of high-grade limestone. Its brand "Star Cement" has established itself as the most accredited brand of the region. CMCL’s product range includes Ordinary Portland Cement (OPC 43-Grade) and (OPC 53-Grade) and Portland Pozzolana Cement (PPC) in line with evolving customer needs. Presently, CMCL is marketing clinker to different grinding units located in India, Nepal & Bhutan, along with cement of 3 types. The company’s institutional customers comprise L&T, NHPC, PWD, Indian Railways and Ministry of Defence.Chettinad Cement CorporationRani Seethai Hall Building, 603, Anna Salai, Chennai – 600 006Tel : 044-28292727, 28292040 Fax : 044-28291558 www.chettinad.comM.A.M.R. Muthiah, Managing DirectorChettinad Cement is operating its cement business spanning three generations. Since its establishment in 1962 with a wet process cement plant at Puliyur near Karur, Chettinad cement has been expanding and making itself versatile in the field of cement products. Major supplier of Southern India’s cement needs, Chettinad Cement supplies cement for many residential, commercial and engineering projects. Chettinad Cement has established its position in the southern market by innovatively aligning its products and services to the needs of cement users. Its ‘Builders Choice’ brand offers extensive range of bagged products, including Ordinary Portland cements and blended cements to suit most building and construction applications.Dalmia Cement (Bharat)11th & 12th Floors, Hansalaya Building, 15, Barakhamba Road, New Delhi – 110 001Tel : 011-23310121 Fax : 011-23313303 www.dalmiacement.comPuneet Dalmia, Managing DirectorFounded in 1935 by Jaidayal Dalmia; the cement division of DCBL was established in 1939 and enjoys 70 years of expertise and experience. The company has cement plants in southern states of Tamil Nadu (Dalmiapuram & Ariyalur) and Andhra Pradesh (Kadapa), with a capacity of 9 million tonnes per annum. The company is a pioneer in super specialty cements used for oil wells, railway sleepers and air strips. The company holds a stake of 45.4% in OCL India, a major cement player in the eastern region, and now control a cement capacity of 14.3 million tonnes and has a strong presence in southern and eastern regions of the country. With the plant located close to its source of raw materials, the company keeps its freight and transport costs low, giving it an edge over competition.Gujarat Sidhee CementNKM International House, 178, Backbay Reclamation, Mumbai – 400 020Tel : 022-66365444, 32955563 Fax : 022-66365445 www.hathi-sidheecements.comM.S. Gilotra, Managing DirectorGujarat Sidhee Cement (GSC), a part of the Mehta Group, markets cement under the brand name ‘Sidhee’. The company manufacturers Oridanary Portland Cement (OPC) 53 grade, 43 grade, Portland Pozzolana Cement (PPC) types of cement and clinker. GSCL is one of the first Indian cement company to get 53 grade license. GSC is a recognized Export House and has won the Indian cement industry’s prestigious National Productivity Awards thrice in succession .The Indian arm of the Mehta Group comprises of "Saurashtra Cement " (SC), marketing cement under the brand name "Haathi". Saurashtra Cement manufacturers Portland Pozzolana Cement (PPC), Ordinary Portland Cement (OPC 53 grade, 43 grade), SRPC types of cement and clinker. SCL is a recognized Export House and has won the Indian cement industry’s prestigious national award for ‘Energy Efficiency.’Heidelberg Cement India9th Floor, Tower-C, Infinity Towers, DLF Cyber City, Phase-II, Gurgaon – 122 002, HaryanaTel : 0124-4503700 Fax : 0124-4147692 www.mycemco.comAshish Guha, Managing DirectorHeidelberg Cement India (MCL), a Heidelberg Cement Group Company, was promoted in 1958 by a Karnataka-based industrialist in technical and financial collaboration with Kaisers of USA as a Public Limited Company. Pursuant to the Share Subscription and Share Purchase Agreement and Escrow Agreement Cementrum I B.V.(subsidiary of Heidelberg Cement AG) acquired equity shares from the S.K. Birla Group and its affiliates. In addition, further equity shares were acquired under the open offer giving Cementrum I B.V. 54.89 per cent shareholding in Heidelberg Cement India. Heidelberg Cement Group, with its core products being cement, ready mixed concrete, aggregates and related activities, is one of the leading producers of building materials worldwide, and it employs around 54,000 people in more than 40 countries.India Cements"Coromandel Towers" 93,Santhome High Road, Karpagam Avenue, Raja Annamalai Puram, Chennai – 600 028Tel : 044-28524004 Fax : 044-28520702 www.indiacements.co.inN. Srinivasan, Vice Chairman & MD,India Cements was established in 1946 and the first plant was setup at Sankarnagar in Tamilnadu in 1949 . Since then it has grown to seven plants spread over Tamil Nadu and Andhra Pradesh. The capacities as on March 2010 have reached 14.05 mtpa. The company is the largest producer of cement in South India with its plants well spread with three in Tamil Nadu and four in Andhra Pradesh which cater to all major markets in South India and Maharashtra. The company is the market leader with a market share of 28% in the South. The company has access to huge limestone resources and plans to expand capacity by debottlenecking and optimisation of existing plants as well as by acquisitions. The company has a strong distribution network with over 10,000 stockists of whom 25 per cent are dedicated. The company has well established brands- Sankar Super Power, Coromandel Super Power and Raasi Super Power.Jaiprakash AssociatesSector-128 NOIDA – 201 304 (U.P.) Tel : 0120-4609000, 2470800, 4609002 (D) Fax : 0120-460964, 460946 www.jalindia.comSunny Gaur, Managing Director (Cement)Jaypee Group is the 3rd largest cement producer in the country. The group produces special blend of Portland Pozzolana Cement under the brand name ‘Jaypee Cement’ (PPC). Its cement division currently operates modern, computerized process control cement plants with an aggregate capacity of 28 MTPA. The company is in the midst of capacity expansion of its cement business in Northern, Southern, Central, Eastern and Western parts of the country and is slated to be 35.90 MTPA by FY13 (expected) with captive thermal power plants totaling 672 MW.JK CementsKamla Tower, Kanpur, Uttar Pradesh.Tel : 0512-2371478-81 Fax : 0512-2399854, 2394250 www.jkcement.comYadupati Singhania, MD & CEOThe company’s cement operations commenced commercial production in May 1975 at its first plant at Nimbahera in the state of Rajasthan. Today, JK Cement is one of the largest cement manufacturers in north India. The company is also the second largest white cement manufacturer in India by production capacity. While the grey cement is primarily sold in the northern India market, the white cement enjoys demand in the export market including countries like South Africa, Nigeria, Singapore, Bahrain, Bangladesh, Sri Lanka, Kenya, Tanzania, UAE and Nepal.JK Lakshmi CementNehru House, 4th Floor, 4, Bahadurshah Zafar Marg, New Delhi – 110 002.Tel : 011-23311112 Fax : 011-23722251, 23712680 www.jklakshmi.comVinita Singhania, Managing Director,One of the established names in the cement industry, JK Lakshmi Cement has state-of-the-art plant at Jaykaypuram, district Sirohi, Rajasthan. With the capacity expansion and further commissioning of split location grinding units at Motibhoyan, Kalol (Gujarat) & Bajitpur, Jhajjar (Haryana) the combined capacity of the company today stands at 5.30 mn. MTPA. The company uses the latest technology from Blue Circle Industries and modern equipments from Fuller International of USA.Kalyanpur CementsMaurya Centre, 1, Fraser Road, Patna – 800 001Tel : 0612-2225819 Fax : 0612-2239884 www.kalyanpur.comAnant Prakash Sinha, Managing Director,Kalyanpur Cements is a leading cement manufacturer in eastern India. It runs the only integrated cement manufacturing facility in Bihar and markets its cement in Bihar, Jharkhand and Uttar Pradesh. Kalyanpur was established in 1938 and markets its cement under the popular KC Super, KC Special and Castcrete brands.KCPRamakrishna Buildings, 2, Dr. P.V. Cherian Crescent, Egmore, Chennai 600 008Tel : 044-66772609/10 Fax : 044-66772680 www.kcp.co.inV.L. Indira Dutt, Jt. Managing DirectorKCP, one of the country’s oldest cement producers, has a strong presence in the south India market. KCP strategically chose the greenfield plant located at Ramakrishnapuram, Muktyala Village, Jaggayyapet Mandal in Krishna district of Andhra Pradesh because it is close to large limestone reserves and provides easy access to the key markets of Andhra Pradesh, Tamil Nadu, Karnataka and Orissa. The company’s energy-efficient plant has an annual capacity of 1.52 million tonnes. Its cement plant at Macherla in Andhra Pradesh is India’s first dry process kiln and was installed in 1958 by HUMBOLDT, Germany even while it was still a prototype in Europe.Kesoram IndustriesP.O. Basantnagar – 505 187, Dist. Karimnagar (A.P.).Tel : 033-22435453, 22429454, 22135121; 08728-228123(D) Fax : 08728-228160, 228444 www.kesocorp.comK.C. Jain, Wholetime Director,Kesoram Industries has two units manufacturing under two brand names, viz Vasavadatta Cement and Kesoram Cement. While Vasavadatt unit is located at Sedam in Gulbarga district of Karnataka, Kesoram unit is located at Basantnagar in Karimnagar district of Andhra Pradesh. The installed capacity of Sedam unit is 57.5 lakh metric tonnes, the installed capacity of Basantnagar unit is 15 metric tonnes. The performance of cement division has been quite good during FY 11-12, with the company’s income from cement division rising from Rs 1852 crore in 2010-11 to Rs 2060 crore in 2011-12. The operating profit from the cement division jumped from Rs 274 crore in FY2010-11 to Rs 439 crore in FY2011-12NCL Industries7th Floor, Raghava Ratna Towers, Chirag Ali Lane, Abids, Hyderabad 500001Phone: 040-23201146, 23203637 www.nclind.comK Ravi, Managing DirectorNCL Industries, the flagship company of the NCL group of industries, has been serving the construction industry of Andhra Pradesh for the past 25 years with its cement under the brand name ‘Nagarjuna Cement’, which is an established premium brand in the coastal districts of Andhra Pradesh. The company expanded the capacity of the cement plant by stages from 200 TPD to 900 TPD. The company which is now operating two units and has expanded its capacity of 2,000 MT per day to 6,000 MT per day and is poised to have a capacity of two million tonnes per annum.Penna Cement IndustriesPlot No. 705, No. 8-2-268/A/1/5/1, Road No. 3 Banjara Hills, Hyderabad 500 034Phone: 040-44565100 Fax No. 040-23328073, 23355941, 23353947 www.pennacement.comP. Prathap Reddy, Managing DirectorPenna Cement Industries (PCI) was formed in year 1991 by Prathap Reddy. First plant was commissioned in 1994 at Talaricheruvu village in Tadipatri Mandal of Ananthapur district of Andhra Pradesh with initial capacity of 0.2 MTPA. Penna Cement has operational plants and with plans for setting up grinding units and packing units at various locations with total installed capacity of 7 MTPA. Penna Cement manufactures a wide range of cement including Ordinary Portland Cement (OPC 53grade and 43 grade), Portland Pozzolana Cement (PPC), Portland Slag Cement (PSC).Prism CementRahejas, Main Avenue, Vallabhai Patel Road, Santacruz (W), Mumbai 400 054.Tel: 91 22 6675 4142/3/4. Fax: 91 22 2600 1304. www.prismcement.comManoj Chhabra, Managing DirectorPrism Cement commenced its production in August 1997 and manufactures Portland Pozzollana Cement with the brand name ‘Champion’ and Ordinary Portland Cement (OPC). It has the highest quality standards due to efficient plant operations with automated controls. It caters mainly to markets of UP, MP and Bihar, with an average lead of 340-370 km of its plant at Satna, MP. It has integrated building materials company with a wide range from cement, ready-mixed concrete, tiles, and bath products to kitchens. The company has three Divisions, viz. Prism Cement, H & R Johnson (India), and RMC Readymix (India). Prism Cement Limited also has a 74% stake in Raheja QBE General Insurance Company Limited, a JV with QBE Group of Australia.UltraTech Cement

"B" Wing, 2nd floor, Ahura Centre, Mahakali Caves Road, Andheri (East), Mumbai 400 093.Tel: 91-22-66917800; Fax: 91-22-66928109 Website: www.ultratechcement.comO. P. Puranmalka, Whole-Time Director,UltraTech Cement is the ultimate 360? building materials destination, providing an array of products ranging from grey cement to white cement, from building products to building solutions and an assortment of ready mix concretes catering to varied needs and applications. UltraTech’s products include Ordinary Portland cement, Portland Pozzolana cement and Portland blast-furnace slag cement. UltraTech is India’s largest exporter of cement clinker spanning export markets in countries across the Indian Ocean, Africa, Europe and the Middle East. The company exports over 2.5 million tonnes per annum, which is about 30 per cent of the country’s total exports. UltraTech and its subsidiaries have a presence in 5 countries through 11 integrated plants, 1 white cement plant, 1 clinkerisation plant, 15 grinding units, 2 rail and 3 coastal terminals and 101 RMC plants.

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Concrete

Lohia Corp Expands Global Footprint With Acquisitionof J.j. Jenkins Inc and Strategic Joint Venture With Omgm

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Lohia Corp Limited (LCL) is pleased to announce two significant milestones that mark our
expansion in the global market.

We have successfully acquired J.J. Jenkins Inc. a respected name in machine manufacturing for
high-tech industries, through our US subsidiary, Leesona Corp, a 130-year-old pioneer in winding
machines. This acquisition aligns perfectly with our strategic vision to expand our specialty yarns
and tapes portfolio in medical and defence applications.

In addition, we have formed a strategic Joint Venture with Italy’s O.M.G.M. sas, leading to the
creation of OMGM Extrusiontechnik Srl. With LCL holding the majority stake. This JV represents
a significant diversification of our product portfolio, introducing solutions in Extrusion and
Winding systems for a variety of technical applications.

These advancements are not just about growth; they’re about bringing cutting-edge solutions to
our customers and contributing to industries that make a difference. Stay tuned for more updates
as we continue to push the boundaries of technology and engineering excellence.

Mr. R K Lohia, Chairman & Managing Director of Lohia Corp Limited, expressed his enthusiasm
about the new ventures “Both these new partnerships are a pivotal move that will broaden our
product offerings and provide our customers with even more choices and will enhance our
presence in the North America and European market, at the same time strengthen our presence
in all other global markets.”

About Lohia Corp Limited
Lohia Corp Limited (LCL) stands as a testament to the power of innovation and commitment to
excellence. As the flagship company of the Lohia Group, LCL has established itself as a global
leader in providing comprehensive solutions for the raffia industry.

With an impressive installation base of over 2,250 extrusion lines and 95,000 Circular Looms
across more than 100 countries, LCL’s influence in the plastic woven fabric and bag sector is
unparalleled. The company’s dedication to quality and efficiency has resulted in an astounding
plastic processing capacity of 7.7 million metric tons per annum of PP & PE.

LCL’s products, ranging from packaging systems for solid bulk materials to roof underlays and
tarpaulins, are not just industrial applications; they are the building blocks of industries
worldwide.

The company’s commitment to sustainability and innovation is the driving force that makes it the
world’s largest producer of machines for the raffia sector. As we look to the future, LCL’s legacy
of excellence is more than just a benchmark; it is a continuous journey towards pushing the
boundaries of possibility.

About J. J. Jenkins, Inc
J. J. Jenkins Inc. is a very respected name based out of North Carolina, USA. They remain at the
forefront of the synthetic fiber and monofilament industries. Their unwavering commitment to
innovation, quality, and customer satisfaction has not only set industry standards but also
fostered enduring partnerships with Fortune 500 companies including some in the medical and
defence industries.

Their holistic approach, combining state-of-the-art technology with unparalleled after-sales
support, exemplifies their dedication to client success. With a vast inventory ensuring rapid
response times, J. J. Jenkins, Inc. is synonymous with reliability and efficiency.

About OMGM sas
Since 1965, OMGM sas is a distinguished Italian leader and has been at the forefront of the plastic
processing industry, pioneering in Monofilament Extrusion, straps, ropes and various other niche
applications. Their commitment to excellence is evident in their advanced technologies and
versatile extrusion lines, handling a variety of materials for diverse industries.

As we look ahead, it’s clear that OMGM Extrusiontechnik Srl will continue to lead and transform
the industry with their precision, innovation, and bespoke solutions. They are more than a
company; they are a trusted partner in progress.

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Concrete

Adani acquires Orient Cement at INR 8,100 crore equity value

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Acquisition adds 16.6 MTPA capacity (8.5 MTPA operational, 8.1 MTPA Ready to Execute).

Accelerates Ambuja’s journey to achieve 100+ MTPA operational capacity in FY 25

Provides 6 MTPA potential additional capacity in North India, leveraging OCL’s high quality limestone reserves in Rajasthan

EDITOR’S SYNOPSIS

  • Ambuja enters into a binding agreement to acquire 46.8% stake in Orient Cement Ltd (OCL). The acquisition helps to move towards target capacity of 140 MTPA by 2028.
  • OCL has an existing 5.6 MTPA clinker and 8.5 MTPA cement operational capacity, 95 MW CPP, 10 MW WHRS, 33 MW Renewable Energy spread across the states of Telangana, Karnataka and Maharashtra. It improves Adani Group’s market share pan-India by 2% in the cement industry.
  • OCL has secured a concession from Madhya Pradesh Power Generating Company Ltd (“MPPGCL”) to set up 2.0 MTPA Cement GU within the premises of Satpura Thermal Power Station in Sarni, MP.
  • OCL also has a large high quality limestone mining lease in Chittorgarh, Rajasthan, providing the potential to set up additional 6 MTPA capacity in North India.
  • The acquisition of OCL complements Ambuja’s existing cement footprint, reducing overall lead distances and logistics costs for the cement business and improving market share in our core markets.
  • Acquisition will be funded through internal accruals, Ambuja remains debt free.

Ahmedabad, 22 October 2024: Ambuja Cements, the cement and building material company of Adani Cement and part of the diversified Adani Group, today announced the signing of a binding agreement for the acquisition of Orient Cement Ltd (OCL) at an equity value of Rs. 8,100 crore. Ambuja will acquire 46.8% shares of OCL from its current promoters and certain public shareholders. The acquisition will be fully funded through internal accruals.

“This timed acquisition marks another significant step forward in Ambuja Cements’ accelerated growth journey, increasing cement capacity by ~30 MTPA within two years of Ambuja’s acquisition,” said Mr Karan Adani, Director of Ambuja Cements. “By acquiring OCL, Ambuja is poised to reach 100 MTPA cement capacity in FY 25. The acquisition will help to expand Adani Cement’s presence in core markets and improve its pan-India market share by 2%. OCL’s assets are highly efficient, equipped with railway sidings and well supported by captive power plants, renewable energy, WHRS and AFR facilities. OCL’s strategic locations, high-quality limestone reserves and requisite statutory approvals present an opportunity to increase cement capacity in the near term to 16.6 MTPA.”

Mr CK Birla, Chairman of Orient Cement and the CK Birla Group, said, “The CK Birla Group is continuously reallocating capital to sharpen its focus on consumer centric, technology driven and service-based businesses. I take pride in Orient Cement’s impressive track record of building premium brands and maintaining a leading market share in the geographies it operates in. We are confident that the Adani Group, with its strong focus on cement and infrastructure, is the ideal new owner to drive continued growth at Orient Cement for our people and stakeholders”.

Ms Amita Birla, Co-Chairman, CK Birla Group, added, “Orient Cement has a strong market presence, with sustainability initiatives, particularly in renewable energy, being a significant part of its DNA. I am convinced that Ambuja Cements is the right home for all our colleagues at Orient Cement, as well as our customers.”

OCL has 5.6 MTPA clinker capacity and 8.5 MTPA cement capacity along with statutory clearance to increase the clinker capacity by another 6.0 MTPA and cement capacity by another 8.1 MTPA. In addition, OCL also has a limestone mining lease in Chittorgarh for setting up an Integrated Unit (IU) with clinker of 4 MTPA and a split Grinding Unit (GU) of 6 MTPA in North India. OCL has also secured a concession from MPPGCL, Madhya Pradesh for setting up a Grinding Unit within the premises of Satpura Thermal Power Plant. Both these complement the Adani Group’s existing cement footprint. (Refer Annexure – 1 for OCL’s location wise cement capacity and other assets and Annexure – 2 for Adani Cement’s footprint post-acquisition of OCL.)

OCL has recently commissioned a WHRS in Chittapur IU and is in the final stage of commissioning 16 MW solar in Chittapur and 3.7 MW solar in Jalgaon. OCL’s efficient plants, highly motivated teams, strong balance sheet and well-distributed dealer network will be excellent additions to the Adani Group’s existing cement business. OCL’s existing dealers will move to Adani Cement’s market network, creating formidable synergies.

Ambuja plans to optimize OCL’s overall capacity utilization to enhance its cost and competitiveness and improve its operating performance while leveraging the synergies inherent in the existing cement business.

About Ambuja Cements Ltd (ACL)

Ambuja Cements Ltd is one of India’s leading cement companies and a member of the diversified Adani Group – the largest and fastest growing portfolio of diversified sustainable businesses. Ambuja, with its subsidiaries ACC Ltd, Penna Cement Industries Ltd and Sanghi Industries Ltd, has taken the Adani Group’s cement capacity to 88.9 MTPA, with 20 integrated cement manufacturing plants, 20 cement grinding units and 12 bulk terminals across the country. Ambuja has been recognized among ‘India’s Most Trusted Cement Brand’ by TRA Research in its Brand Trust Report, 2024 and among ‘Iconic Brands of India’ by The Economic Times. Ambuja has provided hassle-free, home-building solutions with its unique sustainable development projects and environment-friendly practices since it started operations. The company has many firsts to its credit – a captive port with six terminals that facilitates timely, cost-effective and cleaner shipments of bulk cement to its customers. Its innovative products like Ambuja Cement, Ambuja Plus, Ambuja Compocem and Ambuja Kawach are now listed in the GRIHA product catalogue. These products not only fulfil important customer needs but also help in significantly reducing their carbon footprints. Being a frontrunner in sustainable business practices, Ambuja Cements ranks among ‘India’s Top 50 companies contributing to inclusive growth’ by SKOCH and ‘India’s Top 50 Most Sustainable Companies’ Cross-Industry by BW Businessworld.

For further information on this release, please contact: roy.paul@adani.com

Annexure -1 | Existing Cement Assets of Orient Cement Limited

Plant Clinker

(MTPA)

Cement

(MTPA)

CPP/WHRS/Solar Railway Siding
Devapur IU, Telangana 3.5 3.5 CPP – 50 MW Yes
Chittapur IU, Karnataka 2.1 3.0 CPP – 45 MW

WHRS – 10 MW

Solar – 16 MW*

Yes
Jalgaon GU, Maharashtra 2.0 Solar – 13.5 MW+

3.7 MW*

Yes
Operational Capacity 5.6 8.5  

* capacity is in commissioning stage

Annexure – 2 | Footprint of Adani Group – Cement business post OCL Acquisition

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Economy & Market

Fornnax Announces a Major Launch With Sr Max Series: Sr-max2500 Primary Shredder a Revolutionary and Game-changer

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Fornnax, a renowned shredding and recycling equipment provider with years of experience in designing and developing SR-Series dual shaft shredders, has unveiled its advanced level SR-MAX2500 shredder specially designed for the Municipal Solid Waste category.

 

The launch was held IFAT India 2024, a most prestigious event in the waste management industry, on October 16th, 2024, at the Bombay Exhibition Centre in Mumbai.

Fornnax’s successful track record of developing many proven machines for different types of tires, ferrous and non-ferrous metals, which are the most difficult applications has made them a pioneer in the shredding and recycling equipment manufacturing global market over the decade now. The design of the SR-Series machine, a legacy that has prevailed for over a decade, continues to be used in the design of SR-MAX series machines. The advanced SR-MAX2500 shredder features high capacity, modern engineering, and innovative technology.

The remarkable event was inaugurated by Mr Ulhas Parlikar, Ex-Director of Geocycle India; Mr Sanjay Shripatrao Katkar IAS (Municipal Commissioner and Administrator) MBMC; Mr Sharad Nanegaonkar Executive Engineer (Water Supply and Sewerage Department) MBMC; Mr Deepak Khambit (City Engineer) MBMC; Mr Jignesh Kundaria CEO & Director of Fornnax Technology Pvt. Ltd.;

Mr Manoj Kumar Sure, JK Cement Head AFR; Mr Manoj Kumar Modha, Director of Millennium Multi Trade Pvt. Ltd.

Jignesh Kundaria, CEO and Director of Fornnax, shared insights into their newly launched innovation, “With the SR-MAX2500, we’re poised to transform the waste management landscape in India and beyond. Our goal is to line up municipal waste recycling industries with a robust, efficient, and sustainable solution. Our commitment to sustainability and enhancing recycling process is a step forward towards achieving PM’s vision of a Net Zero emissions future by 2050.”

Revolutionizing Waste Reduction: The SR-MAX2500 Advantage We’re excited to introduce the Fornnax SR-MAX2500, a revolutionary primary shredder designed for efficient volume reduction of diverse materials. This high-capacity machine boasts advanced modern engineering and technology, featuring hydraulic motors driving each shaft for optimal power and torque. Its unique cutter design, replaceable cutting table, and shaft design make it an ideal solution for various applications.

Waste Management Reimagined! SR-MAX2500 Primary Applications Our primary focus for the SR-MAX2500 is serving large-scale municipal waste recyclers, cement plants, waste-to-energy plants, mechanical biological treatment facilities, materials recovery centres, construction and demolition recyclers, aluminium recyclers, and other applications requiring highcapacity machines and robust technology.

The SR-MAX2500’s Impressive ROI Streak The SR-MAX2500 offers several commercial benefits, including increased efficiency, reduced operational costs, and enhanced productivity as it is specially designed for the Indian market. Its robust design and advanced technology ensure minimal downtime, maximizing profitability for our customers. Additionally, our commitment to quality and reliability helps build long-term relationships with clients, fostering loyalty and repeat business.

Innovation Meets Efficiency: Why Choose the SR-MAX2500? Fornnax has carved out a distinctive niche in the highly competitive market and its relevance stems from a unique, tailored approach that addresses specific needs. Thus, the SR-MAX2500 shredder differentiates itself through its versatility, catering to a diverse array of waste management and user needs, specifically designed for Indian waste, which is highly contaminated compared to global waste. Additionally, our unwavering focus on innovation, quality, and customer-centricity sets us apart from competitors and establishes our position in the market.

Turning Trash into Treasure with MSW Waste As you see due to the rapid urbanization and over population, India is among the world’s top 10 countries generating municipal solid waste (MSW) and generates around 62 million tons of waste in a year. Therefore, it is extremely critical to prioritize recycling and conversion of MSW into RDF fuel. Cement industry, which uses a significant amount of coal. Cement industries substituting coal with RDF or alternate fuel to reduce the greenhouse gas emissions, conserve natural resources like coal and more and ultimately minimise the waste disposal issues.

Fornnax’s Exceptional Contribution to India’s Sustainability Goals India has made significant strides in waste management and recycling, and with continued investment, innovation, and policy support, there’s no doubt it can achieve its goals. Fornnax is committed to contributing to India’s sustainability and waste management journey through their advanced recycling solutions, supporting the country’s transition to a more circular and environmentally conscious economy.

Fornnax’s Unwavering Commitment to R&D and Innovative Solutions Fornnax stays updated with global advancements in recycling technology and sustainability practices through several key strategies, such as we invest heavily in research and development to ensure our equipment are at the forefront of technological innovation. Our team closely monitors industry trends, emerging technologies, and regulatory changes to identify potential opportunities for improvement. We also actively seek feedbacks from our valued clients to understand their evolving needs and challenges. This input helps us identify areas where we can boost our meet market demands.

Expanding Horizons: Fornnax’s Growth Plans for the Year Ahead The SR-MAX2500 launch is a strategic step towards expanding our market presence and strengthening our position as a leading shredder manufacturer around the globe.

Also, we are optimistic about the coming year, driven by the growing demand for sustainable waste management solutions and the increasing awareness of environmental issues. We are actively investing in equipment enhancement, engineering, and strengthening our partnerships to meet the evolving needs of our customers. Fornnax’s focus areas for the next year include expanding the manufacturing capacity to meet the rising demand and we already started working on it by acquiring 23-acre land parcel in Ahmedabad, Gujarat. The new site is expected to become operational by March 2025. Its focus will be on producing high-capacity machinery applicable in tyre, cable recycling, ewaste, metal processing and more.

About Fornnax FORNNAX is one of the world’s leading shredding and recycling equipment manufacturers, offering Primary shredders, Secondary shredders and Granulators for tyres, municipal solid waste, cables, e-waste, aluminium and many other industrial applications. Quick after-sales services that increase our customer’s uptime and productivity.

We are committed to shaping the landscape for sustainable recycling solutions in the future. Because we’re not just selling equipment, we’re building business. That’s what we believe. That’s who we are. Fornnax Equipment is built with the idea that the simple, most significant and heaviest is better. Our equipment is an evolution of advanced products designed for the challenges of the recycling world.

The global sales partner network makes us successful worldwide. Our corporate culture is based on our history of providing value to our customers’ success worldwide. This motivates our employees to work together, develop innovative products, and produce high-quality equipment.

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