Economy & Market

The Indian Gypsum Scenario | What lies ahead?

Published

8 years ago

March 31, 2017

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The gypsum demand-supply deficit in India will cumulatively widen to nearly 105 million tonnes from 2017-2031, creating a lucrative market for Omani gypsum, says Ramachandran, Director, Zawawi Gypsum LLC.
The Indian cement industry’s output is expected to touch 400 million tonnes (MT) by 2021, rising to over 600 MT by 2026 and nearly 870 MT by 2031.
In 2015-2016, the industry imported over 4 MT of gypsum, and the imported gypsum demand in India is expected to go over 10 million tonnes per annum (MTPA) by 2021, around 20 MTPA by 2026 and over 33 MTPA by 2031.
The industry’s cumulative imported gypsum demand will be 37 MT during 2017-2021, over 116 MT from 2017-2026 and over 254 MT (2017-2031), driven primarily by strong growth in the cement production segments.Local gypsum availability
Historically, India’s annual supply of cement-grade natural gypsum is only around 3 MT per year due to non-viability of mining of deep seated gypsum reserves in Rajasthan. By and large, the entire production of gypsum is from Rajasthan state (99 per cent), and the state has over 90 per cent of the country’s gypsum reserves.
Gypsum prices are regulated by the Rajasthan government and over 95 per cent of its deep-seated gypsum reserves are not economically viable for mining at current prices. Furthermore, the annual production quantities have started decreasing.
As per IBM, as on 1st April, 2010, Indian gypsum resources were estimated at 1,286 MT of which 39 MT have been placed under ‘mineable reserves’ and 1,247 MT under the ‘resources’ category, which are deep seated and not feasible for mining.
Annual production of phospho-gypsum in India is around 6 MT. Phospho-gypsum supplies will be constrained by issues revolving around rock phosphate availability for DAP (Diammonium Phosphate) production. Hence, phospho-gypsum supply to the cement industry will continue to be around 6-7 MTPA. Marine gypsum supply is of a very negligible quantity. Ergo, local gypsum supply will continue to be below 10 MTPA per year.Will Thailand Cash In?
Asia’s current dominant supplier Thailand is unlikely to capitalise on its gypsum resources due to local supply constraints anticipated in the future.
Thailand’s gypsum exports are controlled by the country’s Department of Primary Industries and Mines (DPIM) through non-issuance of new mining licences, and exports are strictly under a non-marketable quota system. As the part of strategies for maximising the economic and social benefit accrued to the country from the export of gypsum resources, DPIM is setting the gypsum FOB selling price. Presently the FOB price is $18.50 per tonne.
Gypsum exports from Thailand to India could drop to zero in coming years, and most of the existing Asian customers of Thai gypsum are actively scouting for gypsum supply from Oman.
India’s natural gypsum production has started decreasingNatural gypsum supply from Iran
Historically, Iran’s local construction industry consumes around 90 per cent of its total gypsum production (over 14 MTPA) and the balance quantity of around 10 per cent is exported mainly to the UAE, Qatar, Kuwait, and a few other Asian countries.
Local gypsum demand in Iran is expected to double in coming years along with major increase in the local selling price due to massive expansion of infrastructure and housing projects. Considering the increasing local demand, Tehran’s gypsum exports are expected to remain capped at around 10 per cent of total production.
In any event, 80 per cent of Iran’s natural gypsum resources and production is in the country’s Semnan province, situated in the central north of the country, over 1,200 km from the major port on the Gulf of Aden. This, as such, renders the gypsum uneconomical for export. The remaining 20 per cent of the resources and pro-duction is in the south of the country (around the Juyon area), and is partially available for export.
Furthermore, the construction industries in the UAE and Qatar will continue to expand, with investment in infrastructure, commercial, residential and energy projects continuing to drive growth. The FIFA World Cup 2022, World Expo 2020, housing and several infrastructure projects in the UAE and Qatar have started driving cement demand, which could lead to an increase in demand of imported gypsum.
In coming years, Iranian gypsum supply will be largely limited to the UAE, Qatar, and Kuwait and very limited quantities to the Indian west coast.
Gypsum exports from Oman have been growing at a phenomenal paceGypsum exports from Oman
Oman is on track to being crowned as the world’s largest exporter of natural gypsum by 2018 on the back of surging output that underscores the immense potential of the Sultanate’s mining sector to fuel the nation’s long-term economic development.
Exports are projected to surpass 8 MT per annum in 2018, up from 5.85 MT at the end of 2016 – a phenomenal increase that industry experts say will position the Sultanate as a global supplier of minerals in the coming years. Oman’s growing prominence as an exporter of gypsum – a basic raw material for cement and gypsum board manufacturing – comes against a backdrop of soaring demand from several Asian, African and Far Eastern nations. At the same time, major suppliers, notably Thailand, are drastically limiting exports to feed their own domestic industries.
Omani gypsum export volumes have jumped a phenomenal 20-fold over the past five years, from a mere 0.30 MT in 2010 to 5.85 MT last year. This increase has been driven primarily by galloping demand in India, Japan, Taiwan, Indonesia, Vietnam, and Bangladesh. For all the known reasons, Oman has emerged as the single most important source for high-grade natural gypsum for cement and gypsum board manufacturers across Asia and South and East Africa.
In a major development that bodes well for a strong uptick in Omani gypsum exports, top executives of the leading gypsum mining companies have unanimously endorsed new regulations issued by the Public Authority for Mining (PAM) prescribing a minimum FOB export price for gypsum.
The endorsement came at a meeting of company chief executives held earlier this year.
Also at the meeting, the attendees agreed to establish the ‘Oman Gypsum Association (OGA)’, a non-profit pan-industry grouping that advocates for, among other things, best practices in gypsum mining, community support initiatives, and minimum FOB pricing limits that consider
Asian demand and supply, and other measures aimed at supporting the growth of the domestic gypsum industry.
Alarmed by a downtrend in gypsum export prices, attributed to unhealthy undercutting by some players, PAM stepped in last month to fix a minimum export FOB price for raw gypsum at $12.50 per tonne with effect from December 2016.
Consequently, Omani gypsum exporters are barred from exporting raw gypsum below this designated price. Those found in breach of this regulation will be denied export permits, while repeat offenders are liable to have their mining licenses cancelled altogether.
Gypsum exports have the potential to drive GDP growth through enhanced non-oil exports.
During 2010-2013, Omani gypsum used to be traded at the FOB price of above $14.50 per tonne. However, despite the Sultanate’s obvious advantageous geographical position in exporting gypsum to Asian countries, Omani gypsum
was traded at far lower FOB prices during 2014 and beyond.
This peculiar situation was the result of price undercutting by Omani exporters due to lack of coordination between gypsum exporters, to the detriment of the export industry and the wider Omani economy in general.
Asian cement and gypsum board manufacturers, who are the main consumers of imported gypsum, have already started to face supply and pricing challenges – a trend that is likely to continue in the coming years. Identifying and ensuring a consistent supply of gypsum has become im-perative for cement and gypsum board producers.
After factoring in Omani gypsum supplies to the Asian market, there is still a supply deficit, which opens up opportunities for Turkey, Spain, Mexico, etc., all countries that can target the Indian market, but the landed cost of their exports will be far higher compared to Omani gypsum. The tightening demand-supply scenario will be reflected in an upward trend in Omani gypsum FOB prices, going forward. BASE LINE SCENARIO – INDIAN CEMENT PRODUCTION VS GYPSUM DEMAND & SUPPLY FROM 2017 – 2031 (QTY. IN MILLION TONS)

About the author
(The author is Director, Zawawi Gypsum LLC, a JV between ZML USG and Boral. He holds a degree in International Business Administration and has also undergone several professional training courses including Business Building, Corporate Finance and Strategy, Leadership Management and Relationship Management. Ramachandran established Zawawi Minerals LLC in 2009).Quick Bytes

Local gypsum supply will continue to be below 10 MTPA;
Asia’s current dominant supplier Thailand is unlikely to capitalise on its remaining gypsum resources due to local supply constraints anticipated in the future
Supply from Iran will be restricted to the UAE, Qatar, Kuwait, Bahrain, and the west coast of India, among other regions;
The Sultanate of Oman will become a significant supplier on the back of its rapidly growing gypsum industry.

Thus, even with an aggressive upside supply scenario from Oman, the gypsum demand-supply deficit in India will widen cumulatively to over 5 MT between 2017 to 2021, over 33 MT between 2017-2026, and nearly 105 MT between 2017-2031, crea-ting a lucrative market for Omani gypsum.

Concrete

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

Published

2 weeks 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

2 weeks 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

3 weeks 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.