Economy & Market

Cement Industries wobble in Q2

Published

7 years ago

November 30, 2017

admin

With GST rolling over at the start of quarter of July-September 2017, the cement industry was caught off guard about the new process, but more than euphoric on the One Nation One Tax regime. Pegged under the highest slab rate of 28 per cent, the cement industry was found wobbling under the new tax regime due to the temendous paper work, added with the inconsistency in the chain’s backward and forward link. Other problems include the temporal problem fixing by the government and above all multiple rates for buying raw materials and selling final goods.

The GST rates and the processess kept tinkering in order to overcome pointed anomalies and issues relating to filing of the returns. Nevertheless, the quarter being seasonally dull for the cement industry due to low construction activity during monsoon, and with falling production volumes, the performance of most of the companies was under strain from both, the demand and the supply side. Further, points such as the avaliability of sand, the ban on the usage of petcoke and furnace oil will continue to haunt the cement companies. Nitin Madkaikar reviews the performance of cement companies during the quarter July to September 2017, only to come to a conclusion that there is long way to go under the new tax regime for all related activities to be on the same page.

Financial results of 33 large and small cement companies which represent around 50 per cent of the sales for the quarter ended September 2017 showed a growth of 12 per cent in top line in a year on year (YOY) comparison but down 16per cent sequentially (September over June). The bottom line was negative in both comparisons declining sequentially by 5.6 per cent and 42 per cent respectively. These companies are categorised into large (those with quarterly net sales of over Rs.1,000 crore), medium (those with net sales of Rs.200-1,000 crore) and small (companies with net sales of less than Rs.200 crore). The financial results of quarters ending September 2016, June 2017 and September 2017 are considered for review in this analysis.

In the previous quarter, (June 2017) the cement business had suffered due to the wholesalers and retailers reducing stocks prior to the Goods and Services Tax (GST) roll out. This quarter was mired by the implementation of the new tax regime, the GST, resulting in performance below market expectation. Nevertheless, the quarter is seasonally dull for cement business due to low construction activity during the South West monsoon.

Of the 33 companies under review, 10 companies posted declined in yoy sales (including 4 large) but QoQ decline was posted by 23 companies (including 6 large companies). So top line was down across categories and not for a particular category. Similarly, yoy net profits were down in 18 companies (including 7 large companies) while QoQ saw net profits down in 24 companies (including 8 large companies). This implies, the bottom line was adversely affected across all size of companies.

The overall profitability (Net Profit/Net Sales) was at 6.1 per cent in September 2017 quarter, down from 7.3 per cent in quarter of September 2016 and 9 per cent in quarter of June 2017. Almost all companies could manage to post positive margin excepting five companies who recorded net loss during the September 2017 quarter. Only three companies Ambuja Cements, Ramco Cements and OCL India could manage to maintain their margins across three quarters under review. 16 companies saw profitability drop below their levels a year ago while 24 companies saw profitability levels below previous quarter.

The weak performance can also be drawn from the macro factors like production. In Q1 2017-18, total cement production was down 3.3 per cent year on year (at 73 million tons) which could not revive in Q2 and fell again although marginally by 0.4 per cent (68 million tons). Thus, the first half of 2017-18 saw production fall 2 per cent compared to 5 per cent increase (in similar comparison) in the same period a year ago. The GDP growth also tapered in Q1 2017-18 to 5.7 per cent but recovered slowly to 6.3 per cent in Q2. Many GDP growth predictions for the year are revisited but mostly points towards a lower economic growth for the year.

Prospects
As per the predictions of industry experts, there will be a growth in the industry at 5-6 per cent CAGR between FY’17 and FY’20 and the domestic consumption is set to out pace the supply in the next three fiscal years. In the Union Budget 2017-18, Rs 22,500 crore was allocated to achieve government’s mission of ‘Housing for All by 2022’. the housing sector alone accounts for nearly 67 per cent of the total cement consumption in India. The increased allocation to rural low-cost housing under Pradhan Mantri Awaas Yojana- Gramin scheme to Rs 23,000 crore is likely to result in a rise of 2 per cent in the cement demand.

For the year, the cement demand is expected to register a modest rise of 1 per cent in 2017-18 pushed by pick-up in affordable and rural housing and road and irrigation projects, said rating agency ICRA. As per the agency, the cement offtake was weak in first half of the year which extended into October due to factors like weak real estate activity, sand shortage and GST implementation issues. However, new project announcements from private sector will remain weak. The demand is expected to rebound in from the fourth quarter of the year as against the earlier expectation of the third quarter, the rating agency said.

Company-wise Performance Ambuja Cement
Ambuja Cement delivered strong numbers while focusing on brand building, through differentiated offerings for individual home builders, building and infrastructure segments. According to Ajay Kapur, Managing Director and CEO, the company’s strategy to focus on key markets, premium products and value based pricing has paid off, leading to strong net sales and EBITDA growth.

During July-September 2017 quarter Ambuja Cement recorded higher sales and growth in value-added pricing, but it also faced cost pressures relating to rising fuel costs, packaging and raw material prices. Thus, there has been a move to increase the use of petcoke and alternative fuels further, as against 67 per cent it achieved in June 2017. Ambuja Cement’s net sales rose 14 per cent YOY to Rs 2,320 crore even as sales volume grew slower at 11.6 per cent to 5.02 million ton. Net profits, however, moderated 2 per cent to Rs 272 crore for the quarter. EBITDA per ton rose 3 per cent to Rs 706.

UltraTech cement
UltraTech Cement reported a 28 per cent decline in net profit (in standalone) to Rs 431 crore for the quarter ended September 2017. It had clocked net profit of Rs 601 crore in the July-September 2016. The company’s net sales were up 6.1 per cent at Rs 6,571 crore during Q2 2017-18 as against Rs 6,196 crore in same quarter the year-ago.

This quarter continued to witness increasing cost trends, attributable to increase in fuel price while total expenses were up 11per cent at Rs 6,095 crore as against Rs 5,491 crore. Depreciation increased 59 per cent to Rs 499 crore while interest cost doubled to Rs 376 crore due to cost involving new cement plant acquisition. Meanwhile, EBITDA increased 24 per cent to Rs 1,350 crore, translating into EBITDA/ton of Rs 1,028 and margin of 21per cent.

The company stated that the acquisition of cement plants of Jaiprakash Associates and Jaypee Cement Corp had helped it augment capacity to 93 million ton per annum. The acquisition has also enhanced its footprint in the high growth markets of central India, eastern UP and coastal Andhra Pradesh, where the company has been focusing to increase its presence.

ACC
Ace cement maker ACC reported over two-fold increase in net profit to Rs 178 crore for the quarter ended September 2017, largely driven by increased productivity and cost optimisation. Net sales was up 24 per cent Rs 3,116 crore for the quarter under review against Rs 2,519 crore in the corresponding period a year ago.

According to the company, the strong result is the reflection of increased focus on premium products, improved customer service levels and relentlessly driving productivity and cost optimisation.

The company expect demand for cement to remain favourable in the coming quarter spurred by the government’s increased spending on infrastructure.

Prism Cement
The company reported net sales for Q2 at Rs 2,238 crore but posted net loss of Rs 24 crore in quarter versus net profit of Rs 17 crore in the corresponding quarter of 2016-17.

The company’s volumes were impacted due to near complete sand mining ban in UP and Bihar, which together constitutes approximately 70 per cent of the sales. Further, a slowdown in the execution and new launches of real estate projects due to RERA registration of existing projects impacted volumes of tiles and ready mixed concrete segment.

Shree Cement
Financial results of Shree Cements were a mixed set of earnings in quarter ended September 2017, as it was slightly better than the low expectations.

According to H M Bangur, Managing Director, the worst seems to be over for the cement industry – the impact of demonetisation, GST now behind. The company expect better results in Q3 because of low base effect.

Availability of sand was a problem for the cement makers but believes to be over soon. Historically, demand for cement in Q3 is maximum, Bangur pointed out.

Shree Cement expects demand to grow 15per cent in next three years with sales volumes up 12per cent in 2017-18 for the company and able to achieve sales of 20 million tons against 18 million tons last year. However, pressure on margins will increase in transportation costs and freight costs. The freight costs have increased 17per cent YoY, at Rs 200 a ton during the quarter.

The Supreme Court’s ban on use of petcoke and furnace oil in Delhi-NCR region will not impact the company since it follows all emission standards of using Petcoke.

India Cements
India Cements reported net profits of Rs 24 crore for the quarter ending September 2017 against Rs 62 crore during the same quarter previous year. Net sales during the quarter came down to Rs 1,268 crore as against Rs 1,314 crore last year. The financial numbers are not comparable with last year since sales include excise duty besides its subsidiary Trinetra Cements was merged with it.

According to N Srinivasan, Vice-Chairman and Managing Director, the ‘sluggishness’ in performance cannot be attributed alone to demonetisation introduced last year or GST or general economic slowdown, but a combination of all three factors. However, absence of freely availability of sand was also a reason. In Tamil Nadu cement volume could not rise despite the demand. He also stated that this was the first time the company witnessed a de-growth.

OCL India
Although performance of OCL in the Q2 improved, it fell short of expectations as the numbers were weaker than expected. While net sales declined 3 per cent , net profit fell 8 per cent.

JK Cement
The company reported over two-fold increase in its net profit to Rs 93.14 crore for the quarter ended September 2017 and net sales up 3 per cent at Rs 1,108 crore in the quarter. The company, part of the US$4 billion JK Group, operates integrated cement facilities at Sirohi (Rajasthan), Durg (Chhattisgarh), Kalol and Surat (Gujarat) and Jharli (Haryana).

Birla Corp
Birla Corporation, a large cement company, saw net profit plunge 84 per cent to Rs 4 crore on higher expenses. Net sales declined 10 per cent to Rs 797 crore in the September quarter compared to Rs 887 crore in the year-ago period. Total expenses increased 17.6 per cent in Q2 while finance cost almost doubled to Rs 105 crore during the quarter under review.

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

admin

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

admin

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

admin

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.