Concrete

My Home?s cement capacity to touch 10 MT

Published

8 years ago

August 31, 2016

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Rs 240-cr Tuticorin plant to go on stream in January
My Home Industries, one of the largest conglomerates based in Telangana with interests in cement and real estate, is set to increase its cement production capacity to 10 million tonnes (MT).

Its 1.5-MT plant in Tuticorin, Tamil Nadu, is expected to be commissioned in January 2017.

My Home, with its "Maha Cement" brand, became a major player in the sector with the acquisition of the 3.2-MT cement plant of Sree Jayajyothi in Kurnool, Andhra Pradesh, from Shriram EPC in 2013 for around Rs 1,400 crore.

The plant was facing a Rs 680-crore loss and heading to BIFR. My Home infused around Rs 700 crore in equity. The 100 per cent subsidiary has since been turned around, and it logged a Rs 124-crore profit last fiscal.

My Home is now looking to break into the big league. "We want to go in for acquisitions in north, central and western India to further increase the capacities," said J Rameswar Rao, founder Chairman of the Rs 5,000-crore, zero-debt, cash surplus group. The port-based Tuticorin plant will see an investment of Rs 240 crore. Once it starts production, the company?s access to both the southern and eastern markets will considerably increase.

Privately-held My Home currently has two integrated cement plants ?at Mellacheruvu in Nalgonda district of Telangana and Yanakandla village in Kurnool district. In addition, it operates a grinding unit at Mulakalapalli village in Visakhapatnam district of Andhra Pradesh.

Ready mix concrete
The combined capacity of the three plants is around 8.8 MT per annum. The company also operates two ready mix concrete units.

My Home has a 50:50 joint venture with Ireland-based global construction materials major CRH, under which the cement business is being rapidly expanded in the country. In 2008, CRH had picked up a stake in the Hyderabad-based cement company for Rs 1,837 crore to enter the Indian construction market.

Volatile times
?As far as the cement sector is concerned, we (My Home and CRH) grew together and will grow together,? said Rao.On the market trends, he said the cement sector has seen volatile times, with significant additional capacity coming in.?Growth is likely in Telangana and Andhra Pradesh once all government initiatives like housing and irrigation projects fully take off,? he said, adding that the private sector demand could go up 5-7 per cent, going forward. ?The rollout of GST might give some relief to the cement sector,? he said. At present the tax regime is choking the sector since VAT is 5 per cent on steel but 14 per cent on cement.

Source: Business Line

Concrete

GMDC Inks Long-Term Limestone Supply Deal With JK Cement

The agreement has been signed for supply of 250 million tonne.

Published

17 hours ago

February 3, 2025

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State-owned GMDC said it has entered into a long-term pact with JK Cement Ltd for the supply of limestone from its upcoming mine in Gujarat.

The agreement has been signed for supply of 250 million tonnes of limestone over a period of 40 years from its upcoming Lakhpat Punrajpur Mine in Lakhpat Taluka of Kutch district in Gujarat.

This agreement will help JK Cement Ltd in setting up an integrated mega-capacity cement plant, fostering industrial growth in the region.Kutch’s coastal proximity, improved access to domestic and international markets, and cost-efficient logistics position it as an ideal hub for cement production.

The state-owned company has five operational lignite mines in Kutch, South Gujarat, and Bhavnagar region.

Concrete

GMDC, J K Cement Ltd. Tie-up for Limestone from Lakhpat Punrajpur Mine

This agreement underscores GMDC Ltd.’s commitment to fostering industrial growt

Published

1 day ago

February 3, 2025

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Gujarat Mineral Development Corporation Ltd. (GMDC) has signed a Long-Term Supply Agreement (LSA) with JK Cement Ltd. for the supply of 250 million tonnes of limestone over a period of 40 years from its upcoming Lakhpat Punrajpur Mine in Lakhpat Taluka of Kutch District in Gujarat. The signing event was chaired by the Chairman of GMDC Ltd. Dr. Hasmukh Adhia, IAS (Retd.) on January 29, 2025 and the agreement was officially formalised by Roopwant Singh, IAS, Managing Director of GMDC Ltd., and Anuj Khandelwal, Business Head – Grey Cement of JK Cement Ltd., representing their respective organisations.

This agreement marks a strategic partnership towards monetising the large limestone asset of GMDC Ltd. and benefiting both the partners. It will support J K Cement Ltd. in setting up a greenfield integrated mega-capacity cement plant, fostering industrial growth in the region. The collaboration will stimulate investment, enhance industrial development, and generate thousands of direct and indirect employment opportunities in Kutch, contributing significantly to the socio-economic progress of Gujarat. Kutch’s coastal proximity, improved access to domestic and international markets, and cost-efficient logistics position it as an ideal hub for cement production. Furthermore, this initiative will contribute substantially to the State Exchequer through revenue generation in the form of Royalty, National Mineral Exploration Trust (NMET) contributions, District Mineral Foundation (DMF) funds, and Goods & Services Tax (GST) on both limestone and cement production.

This agreement underscores GMDC Ltd.’s commitment to fostering industrial growth while ensuring the sustainable utilization of mineral resources, thereby strengthening Gujarat’s position as a leading industrial and economic State.

Concrete

JK Cement Acquires Majority Stake in Saifco Cement to Expand in J&K

Saifco has an annual turnover of around Rs 860 million.

Published

3 days ago

February 1, 2025

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JK Cement has made a significant move in its growth strategy by acquiring a 60% equity stake in Saifco Cement, a cement manufacturer based in Srinagar, Jammu and Kashmir. The acquisition, valued at approximately Rs 1.74 billion, was approved during a board meeting on January 25, 2025.

Located in Khunmoh, Srinagar, Saifco’s integrated manufacturing unit, which includes both clinker and grinding capacities, aligns with JK Cement’s expansion plans. Saifco has an annual turnover of around Rs 860 million, and this acquisition not only strengthens JK Cement’s presence in the region but also offers a strategic advantage in the competitive Indian cement industry.

Saifco’s facility, spread across 54 acres, has a clinker capacity of 0.26 million tonnes per annum and a grinding capacity of 0.42 million tonnes per annum. The site also holds captive limestone reserves across 144.25 hectares, with a mineable reserve of 129 million tonnes.

This deal, which is expected to close after receiving regulatory approvals, allows JK Cement to tap into Saifco’s established infrastructure, sidestepping the time-consuming process of greenfield expansion. The acquisition will also position JK Cement to benefit from Saifco’s established market presence and supply chain.

The move signals JK Cement’s ambition to expand further in the Jammu and Kashmir market and beyond, positioning Saifco as a key regional player under JK Cement’s umbrella. The acquisition could also lead to potential job creation and greater economic opportunities for local suppliers. As part of the integration, JK Cement is expected to bring operational synergies, improving production efficiency and cost management.

This deal is seen as a model for regional consolidation in India’s growing cement industry, with JK Cement’s established brand and distribution network poised to enhance Saifco’s operations and product offerings in the region.

(Greater Kashmir)