Economy & Market

Penalty on cement players credit neutral – India ratings

Published

9 years ago

September 1, 2016

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The Competition Commission of India’s penalty of over Rs 6,700 crore on 11 cement companies amounts to 20-75 per cent of the players’ 2015-16 operating profits, however, the move is credit neutral due to their low leverage levels, said India Ratings and Research.
"Most of the companies (eight out of 11) maintain a low leverage and thus will be in a position to absorb the burden, in the event the penalty has to be paid. The penalty, however, will put pressure on the credit metrics for companies with relatively high levels of leverage," the ratings agency said in a statement.
Fair trade regulator CCI in its order dated August 31, 2016 imposed a penalty of Rs 6,700 crore on 11 cement companies for alleged cartelisation.
"Maintaining high prices in the face of declining capacity utilisation has over the past few years allowed cement companies to contain decline in profits," it said.
India Ratings said it maintains a stable outlook for cement manufacturers for 2016-17 and expects the cement industry to grow in the range of 4 per cent-6 per cent during 2016-17.
"A favourable monsoon after two consecutive bad years, can give a leg-up to rural demand, and government initiatives (such as ‘Housing for All’ and the thrust on infrastructure activities) are expected to improve overall cement demand with a lag and show signs after FY17," the rating agency said

Concrete

Nuvoco Vistas expands with second RMX plant in Nagpur

Published

12 hours ago

March 17, 2025

Roshna

Nuvoco Vistas Corp has expanded its footprint in Maharashtra with the inauguration of its second Ready-Mix Concrete (RMX) plant in Nagpur. Strategically positioned on Kamptee Road, Nagpur-II enhances the company’s reach in key markets, reinforcing its commitment to delivering high-quality concrete solutions for industrial, commercial, and residential projects.
Located just 27 km from Nuvoco’s existing Nagpur-I Mihan plant, the new facility benefits from excellent connectivity via the Srinagar-Kanyakumari Highway, ensuring seamless access to Nagpur city, Koradi and Bhandara Road. Its proximity to key industrial areas like Panchgaon and Hingna further strengthens raw material supply, boosting operational efficiency.
With a production capacity of 90 Cum/hour, Nagpur-II features a Twin Shaft Mixer capable of producing a diverse range of concrete grades, including Nuvoco’s signature brands like XCON, CONCRETO, ECODURE, ARTISTE, and INSTAMIX.
Commenting on the launch, Prashant Jha, Chief of Ready-Mix Concrete at Nuvoco, said that Nagpur-II has strengthened their presence in Maharashtra, allowing them to meet growing construction demands with improved efficiency, faster deliveries, and enhanced support for large-scale infrastructure and commercial projects.

Concrete

UltraTech expands Karur plant

Published

12 hours ago

March 17, 2025

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UltraTech Cement has commissioned 0.6Mt/yr of new cement grinding capacity at its Karur grinding plant in Tamil Nadu. The expansion follows the commissioning of a 2.7Mt/yr greenfield grinding unit at the site in April 2024. The plant’s total capacity is now 3.3Mt/yr. The additional capacity will reportedly help UltraTech to meet the rising demand for composite cement in South India and improve its blended cement ratio. The producer’s domestic grey cement capacity now stands at 167Mt/yr and its global capacity at 172Mt/yr.

Concrete

Ambuja Cements supports local entrepreneurship

Published

12 hours ago

March 17, 2025

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Ambuja Cements is fostering economic empowerment in Bhatapara through the ‘Lakhpati Didi’ initiative, which supports rural women in achieving financial independence. Aligning with the Ministry of Rural Development’s goal to help self-help group (SHG) members earn Rs.1 lakh annually, Ambuja Cements’ CSR team has empowered 188 women entrepreneurs through training and enterprise support.
Women like Kuleshwari Verma, a fancy store owner earning Rs.3.75 lakh annually, and Kusum Patel, a vegetable cultivator earning Rs.1.1 lakh per year, have transformed their livelihoods through this program. Over 11,500 women across Ambuja Cements’ CSR locations have benefited from skill development initiatives, enabling them to start businesses in tailoring, agriculture, and retail.