Economy & Market

Surging Ahead

Published

10 years ago

December 31, 2014

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India is witnessing an unprecedented growth in infrastructure and JSW Cement is consciously contributing to creating a self-reliant India by manufacturing the building blocks of the Indian development story with its world-class cement.
JSW Cement, the Rs 1,400-crore new entrant in the JSW Group, has adopted the route of utilising industrial by-products such as slag to make its eco-friendly cement to ensure a sustainable future for the country. As a group, the $11 billion conglomerate JSW is primarily known for steel as its core business. Slag, one of the by-products of steel industry, is a core ingredient for the manufacturing of Portland slag cement. JSW makes use of the slag to make its own Portland slag cement under the brand JSW Cement. The company has three manufacturing facilities: Vijayanagar in Karnataka, Nandyal in Andhra Pradesh, and Dolvi in Maharashtra. All plants put together have a cumulative capacity to produce 1,600 metric tonne of cement.

The corporate management
The corporate management team comprises a set of experienced professionals who are very focused in terms of making JSW Cement one of the leading cement brands in India. Pankaj Kulkarni, Director, Anil Kumar Pillai, Director and CEO, Hitendra Jariwala, VP – Sales and Marketing, Rahul Akkara, AVP – Brand, and Narendra Singh, CFO are the people who have the requisite experience and the pedigree to take JSW Cement to the next level.

Environment-friendly
By converting industrial by-products into a useful product, JSW has reduced the carbon footprint of the Group. JSW?s vision is to make cement from every tonne of slag that it generates. Not only does this ensure optimal utilisation of resources, but also saves the ecological risk of industrial by-product dumping.

Started in 2009, JSW Cement is a relatively late entrant into the industry. However, with a capacity to produce over 5.9 million tonnes per annum (mtpa), it is fast becoming a force to reckon with. Today, JSW has carved out a niche for its products by adhering to steadfast business values and sustainability norms. The company manufactures one of the most eco-friendly cements in India, and engineers its products for superior strength and durability.

Technology adoption
JSW Cement has pioneered the adoption of several contemporary technologies. Its flagship plant in Nandyal uses world-class technology (including the advanced combi finish mode roller press circuit and automated loading system) to manufacture cement. The company has won prestigious award for its energy-saving processes.

Product range
Portland slag cement (PSC) is the major product by JSW Cement, other ranges being ordinary Portland cement (OPC) and ground granulated blast furnace slag (GGBFS) cement. Slag-based cement offers a number of key advantages including increased strength, less corrosion, heat and water-resistance and longevity. ?In the last five years, we have been able to create a lot of dent in terms of products. One has to really understand that the product that we are selling in the market is really different from our competition,? says Rahul Akkara, AVP – Brand, JSW Cement.

Market reach
JSW Cement is sold in Andhra Pradesh, Karnataka, Tamil Nadu, Kerala, Maharashtra and Goa. A late entrant, compared to other existing players, JSW Cement is planning to gradually up its market share as Akkara says, ?We are looking for a 10 per cent growth year-on-year compared to what we have done in the previous financial year. But more importantly, as a new entrant in the industry, we are looking at spreading our distribution network and increasing production capacity to match the distribution and expansion area we cater to. Today, we are actively present in the seven markets of Andhra Pradesh, Karnataka, Telengana, Kerala, Maharashtra, Goa and Odisha.? According to him, there is a tremendous scope for PSC cement in these states as a vast area in these states fall under coastal line with presence of salinity. PSC cement has the property to resist corrosion from salinity. So PSC is ideal for these states. More than that, PSC cement has many other advantages to ensure the longevity of the structure. So, the strength of PSC cement of seven days or 28 days is far more than a PPC or OPC. ?We need to educate the consumer and this is where we are going to engage ourselves. As the awareness on PSC cement increases, the distribution will increase and that is how we are looking at achieving our target,? Akkara explains.

Expansion plans
JSW Cement plans to add two million tonnes of capacity at Vijayanagar, which already houses two plants. It is also envisioning setting up a greenfield cement plant with a capacity of 4.3 million-tonne at Gulbarga in Karnataka.

The company is also spreading its brand visibility across the country through various marketing initiatives. On the plans, Pankaj Kulkarni, Director, JSW Cement, elaborates, ?We are definitely looking at scaling up our operations based on product and brand acceptance by the consumer, influencers and trade.? He further adds, ?We are now embarking on a brand module and working towards making JSW Cement a preferred choice of the consumer in India. We have partnered with Ogilvy & Mather, one of the world?s best advertising agencies and launched our TV commercial, which would help us to garner a larger share of voice and increase recall for JSW Cement in the market.?

?The growth from 0.6 mmt to 6 mmt is a testimonial to our success.?- Pankaj Kulkarni, Director, JSW Cement

How is the current demand for your products and what are your marketing plans to boost your sales?
From a mere 0.6 mmt to 6 mmt in less than five years, JSW Cement has been on a roll, as we have been one of the fastest growing cement brands in the recent times. This has happened due to various reasons. We offer our customers superior quality cement; we have partnered with some of the best dealers and retailers across markets to sell our products. We bring to the table high level of business transparency in all our dealings. We are now embarking on a brand module and working towards making JSW Cement a preferred choice of the consumer in India.

What is your mantra for keeping your clients/customers coming back to you?
JSW cement offers its consumers superior quality PSC cement. The PSC cement today has many advantages over the regular OPC and PPC cement. We have been doing a lot of interactions and engagements with consumers and influencers on a sustained level. This engagement module works towards educating people on why they should buy PSC over other cement categories. The growth from a 0.6 mmt to 6 mmt is a testimonial to our success and acceptance of the product and the brand.

Do you have future expansion plans?
We definitely are looking at scaling up our operations based on product and brand acceptance by the consumer, influencers and trade.

Are you planning to launch any new product in near future?
We would currently like to focus on building the PSC category. Today JSW cement is the only company in India, which is focused on making PSC cement. We would like to build this space and gain market leadership in the PSC segment. We would also like to build the brand alongside and focus on creating the pull for our brand and PSC cement.

?We focus on PSC and want to take this forward.?
– Rahul Akkara, AVP – Brand, JSW Cement

How has been the growth of JSW Cement?
We have been able to create a lot of dent in terms of products. We are focusing on PSC cement and we want to take this forward in terms of market leadership. Compared to PPC, PSC is a far more superior product for the simple reason that PPC is essentially made of fly ash and PSC by slag. Slag being one of the core by-products of steel industry, has obviously much more longevity and strength as compared to fly ash and other compositions which are used in PPC and OPC.

What is the market share of PSC in India?
World over, 95 per cent of the cement used is PSC. However, in India, PSC is in its nascent stage with 7-10 per cent. One of the main advantages of PSC cement is that it is recommended and used in coastal line to resist the high salinity and corrosion due to salinity. PSC by its anti-corrosive and anti-sulphate properties prevents concrete from corrosion and rusting. We are here to make the product, which is not only ready for today?s challenges but also is geared to face the challenges of tomorrow. Today, because of the imbalance of ecosystems in terms of pollution and environmental changes, it is recommended by many people to use PSC over PPC and OPC. However, in India, JSW is taking the initiative to converting people from getting into PPC and OPC to rather use PSC owing to its various advantages over others.

What are the efforts that you are taking to educate such influencers?
We are looking ahead for a two-side approach. On one side, we are going to be tackling the end-consumers because they are also need to be informed about the product. Today, the decision making process of a consumer is not highly involved. The consumer is rather dependent on the contractor and the mason in terms of decision-making. We are looking at launching an ad film targeting the consumer segment, which talks about the advantages of PSC cement over a PPC and OPC. At the influencer segment, we are creating an event calendar where we will have different sets of meets with different influencers throughout the year. These are the various steps we will be taking and initiating in terms of giving awareness for JSW Cement.

How do you see the overall growth of cement demand in the sector?
There is a tremendous infrastructure boom happening across the country as well as world over; especially in countries like India, the infrastructure boom is going to be at a rapid pace. Today, with projects like Smart Cities, highways, expressways, airports, etc., there is a clear indication of an infrastructure boom in the next 10 years. In that sense, there is a huge potential for cement in India.

What is the percentage growth of PSC cement in India?
We are expecting a 10 per cent growth on our existing business. Also, we are going to invest in awareness programmes for PSC cement. We are the only key players who really focus on PSC cement for the simple reason that we would like to innovate and differentiate what the competition is doing. More importantly, for us our vision is to build with a category, create a great amount of awareness in PSC cement, primarily because it is a better product than PPC and OPC.

Concrete

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

Published

1 month ago

October 22, 2024

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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.

Concrete

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

Published

1 month ago

October 22, 2024

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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

Economy & Market

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

Published

1 month ago

October 18, 2024

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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.