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Economy & Market

Shree Cement Chairman chalks out growth plans

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In an interview with Business Standard, Benu Gopal Bangur, chairman of Shree Cement has said that he plans to ramp up capacity to 40 million tonnes in the next four-five years.

Speaking on the challenges that he faced when Shree Cement started operations, Bangur said that the real problem was finance at that time. The company?s first IPO could only muster subscription of 30 per cent, and the share priced had tanked to Rs 6 from Rs 10.

Bangur told the publication that Punjab National Bank had supported Shree Cement by agreeing to a loan recast, and the company also received support from the State Bank of Bikaner & Jaipur.

The Chairman felt that the business environment had improved from the years when cement used to be a controlled commodity, and producers had no selling rights. However, Bangur said in the interview that the new regulations were causing a slowdown as it takes five to seven years to purchase land for a plant, and procuring the relevant equipment.

He continues to be involved in board meetings and strategic decision-making. Despite a net worth of $5.9 billion, Bangur said that his lifestyle and mode of working remained the same, and he (along with his organisation) would continue to remain debt-free.

World Cement Association to be launched
According to worldcement.com, the World Cement Association (WCA) will be launched to represent and promote the cement industry worldwide, as well as support the commercial and legal interests of its members internationally.

WCA?s corporate members will be worldwide cement manufacturers and will have full voting rights at General Assemblies and will elect the board of directors. World Cement Association has associate memberships for cement equipment manufacturers, logistics, shipping and trading companies, suppliers and service providers to the cement industry. National and regional associations and other related industry bodies will be affiliated members, says the report.

The World Cement Association will give members access to its comprehensive cement industry statistical data service, and will host industry events, seminars and awards. It also aims to promote industry best practice at all levels, especially in emerging markets, with focus areas including sustainability, climate change, health & safety and promoting fair trade practices worldwide.

India?s largest limestone block receives record bid
Rajasthan has received a record eight times the reserved price for the largest limestone block in the country in the e-auction conducted at Udaipur. The block, situated in Jayal tehsil of Nagaur, has 168 million tonnes (MT) of high-grade limestone resources, reports the Times of India.

The news item says that three major cement companies – Emami Cements, JSW Cements and Mangalam Cements – were in the fray for bidding. The reserve price for the block was approximately Rs 35 per tonne. The block received a final bid of around Rs 300 per tonne from Emami Cements which is more than eight times the reserve price.

"This is a major success for the department as it will result in revenue of at least Rs 6,000 crore for the state over the life of the mine, as well as create hundreds of jobs in the area. Rajasthan is already the leading cement manufacturer in the country with the presence of 23 cement plants and this will further consolidate the state?s position," Secretary (Mines) Aparna Arora said in a release.

"The government is committed to making Rajasthan the top mining destination in the country and is taking several steps to boost mining in the state. We are investing in world-class exploration capabilities as well as focusing on clearing all pending applications," the Secretary said.

Domestic cement demand to touch 6% in FY17: ICRA
India?s demand for cement is expected to rise to 6 per cent in the current financial year against 4.6 per cent in 2015-16, ratings agency ICRA has said.

This is expected to support cement prices in the near term. However, the energy cost benefits are expected to reverse in second half of 2016-17, given the recent hike in the pet coke and coal prices, ICRA said in a statement.

ICRA Ratings Senior VP Sabyasachi Majumdar said demand in 2016-17 is likely to be mainly driven by the pick-up in the infrastructure segment, primarily road projects and housing segment and the likelihood of a recovery in the rural demand from second half of this fiscal, given the better monsoons.

"This is likely to support cement prices in near term. Notwithstanding the improved sentiments in these sectors, a number of structural constraints need to be sorted out for project implementation to gather pace in the other infra sub segments," he added.

Pakistan records strong cement sales growth
Total cement dispatches in Pakistan during the first two months of the current fiscal year clocked up at 4.9 MT, a 14 per cent increase from 4.3 MT recorded in the same period of 2015-16. However, according to data released by the All Pakistan Cement Manufacturers Association (APCMA), overall export dispatches have decreased. Exports in July-August were down almost 1 per cent on a year-on-year basis to 1.022 MT. Overall domestic sales in August rose 21 per cent to 3.02 MT from 2.5 MT in August 2015. Cement sales in the north zone were 2.495 MT in August, up 22.6 per cent from a year ago. In the south zone, sales recorded an increase of 13.2 per cent at 0.532 MT from the same month of 2015.

Exports to Afghanistan dropped 12 per cent to 346,928 t in July-August on an annual basis, APCMA data shows. Exports by sea suffered even more. As opposed to 537,120 t exported during the first two months of the preceding fiscal year, exports by sea in July-August 2016 were 407,120 t, showing a 24 per cent decline on an annual basis. However, increased exports to India made up for these shortfalls to some extent. Exports to India during the first two months of the current fiscal year grew 167 per cent year-on-year to 268,230 t.

A spokesman for the APCMA said the industry has been doubling its production capacity every seven to eight years. The buoyancy in the sector on the back of healthy domestic consumption during the last 20 months has encouraged the industry players to go for further capacity expansion. He said growth in the sector during the first two months of the fiscal year was in spite of Eid holidays. Growth of domestic consumption in August was also ?impressive,? as consistent rains failed to hurt construction activities, he added. He said upcoming projects along the China-Pakistan Economic Corridor (CPEC) will further boost cement consumption.

The industry has yet to realise its export potential due to the lack of support from the government. The loss of the Afghanistan market is a matter of concern for the industry, which has been marginalised there because of subsidised Iranian exports.

Cement outlook to improve from Oct
Adversely impacted by heavy rains and sand mining issues, the cement industry?s volumes seem to have slowed down to 22 million tonnes (MT) during August, but is expected to improve from October as construction activities resume post monsoon, says a report from ICICI Securities.

The volumes have been impacted primarily due to decline in cement growth in the north and the central regions. These regions have likely seen a decline of 5-7 per cent in August compared to same year-ago period, due to heavy rains and sand mining issues.

Meanwhile, the eastern part of the country continued with its growth momentum with 6 per cent in the last month over the same period a year ago. The southern region also appeared to have grown 5-6 year-on-year on a low base from last year, the report said.

"Our channel checks suggest cement industry volumes are likely to have grown in low single-digit year-on-year to 22 MT during August (production grew 1.4 per cent year-on-year during July), impacted by heavy rains and sand mining issues, particularly in the North and the Central regions," ICICI Securities said.

However, it said volumes and prices are expected to improve from October as construction activities resume post monsoon. Further, the report said the "average pan-India prices, which saw an estimated 3 per cent month-on-month decline in July, further declined by 1-2 per cent month-on-month. While pet coke prices have risen by ~80 per cent over the past six months and the same is likely to impact margins in a seasonally weak period, we expect it to be passed on to consumers in the medium term."

Nepal imposes ban on a few cement brands
Nepal has imposed a temporary ban on sales of various brands of cement after laboratory tests showed these products did not meet their minimum standards set by the government, according to Republica Online.

The Nepal Bureau of Standards and Metrology (NBSM) has temporarily banned OPC and PPC Super Advance and Infratech cement produced by Shree Araniko Cement Pvt Ltd, and Reliance Super Shakti and Reliance Cement produced by Reliance Cement Pvt Ltd. Likewise, NBSM has imposed a ban on PPC Kalash Gold Cement produced by Shree Cement Pvt Ltd.

According to Bishwo Babu Pudasaini, Director General of NBSM, samples of these cements failed to meet the compressive strength level standards set by the government.

Nepal also banned PPC brand of Bajra Shakti, Tri Shakti Supper and JBC cement produced by Jaya Bageshwori Cements Pvt Ltd, and PPC brand of Yeti, Rock Strong and Gaurav Cement produced by Jay Mangalmaya Cements Pvt Ltd. According to NBSM officials, these samples of PPC exceeded the 28-percent insoluble residue level set by the government.

Courtesy: Business Standard, Economic Times

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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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