Concrete

Warren Buffett invests in gypsum industry

Published

4 years ago

October 14, 2021

admin

A recent report published by Roskill, which profiles producers and end users of gypsum the world over, indicates India becoming the largest gypsum importer in the world. Big investors like Warren Buffet are picking up the cue.

In the December edition of ICR, we had published an article on gypsum shortage and its impact on India (Gypsum Demand and Supply Scenario in India by Ramachandran, CEO, Zawawi Minerals, December 2013, Pg 60). A recent report published by Roskill, which profiles producers and end users of gypsum the world over, too indicates India becoming the largest gypsum importer in the world. Market leaders have picked up the cue and have started making significant investment in gypsum.

Warren Buffett is one of the world’s most successful long-term investors. His company, Berkshire Hathaway, maintains large positions in several well-known North American companies such as Heinz and Coca-Cola, and wholly owns several large businesses, such as Burlington Northern Santa Fe Railroad.

In January 2014, regulatory filings revealed that Berkshire Hathaway had acquired more shares in USG Corporation by exchanging US$243.8M of convertible notes it held in the Chicago-based company. This exchange made Berkshire Hathaway the largest single shareholder in USG.

USG Corporation, formerly known as United States Gypsum Company, is the largest producer of gypsum plasterboard in North America, and the producer of several other homebuilding products. USG’s plaster board is sold under the trademarked brand name SHEETROCKÂ® USG is also a leading producer of ceiling tile.

Berkshire Hathaway’s exchange followed the news in October 2013 that USG would be forming a new US$1.67 Bn joint venture with Boral of Australia. The two companies will hold an equal share in the venture, called USG Boral Building Products, which values Boral’ s assets at A$1.35 Bn and USG’s at US$250M.

USG will gain Boral’s Gypsum Asia and Australian assets in the agreement, while USG will contribute a ceiling factory in China and its Middle East assets, including a gypsum asset in Oman that will supply the lucrative Indian market. In February 2014 it was reported that USG and Boral continue to progress toward completion of their 50:50 strategic joint venture. While completion was originally anticipated to occur by the end of January 2014, it is now expected to occur on or before the end of February 2014, due to additional time required to obtain regulatory approvals.

Knauf has quietly increased its plasterboard production capacity by approximately 0.5 Bnm2py. It also acquired the businesses of USG in Europe and Lafarge in Australia and has announced plans to add substantial capacity in China during 2014. Etex has acquired all of Lafarge’s South American and European plasterboard operations. Lafarge, in selling almost 1Bnm2py of plasterboard production, has enabled these changes and is focusing on its core businesses.

The boom in global construction prior to the onset of the global financial crisis plus the adoption of construction methods that employ plasterboard had resulted in a 28 per cent increase in plasterboard production capacity worldwide between 2004 and 2009, from 7.8Bnm2py to 9.7Bnm2py. Capacity then increased by a further 33 per cent to 12.9Bnm2py but in early 2014 relatively few plants are under construction or planned before 2018.

Asia is expected to overtake North America and become the largest geographic market for gypsum plasterboard during 2014 with India, as the largest global gypsum importer. Roskill’s Gypsum report. The 11th edition of this Roskill report profiles over 300 producers and end users of gypsum, providing an overview of the entire supply chain.

For further information on this report, please contact Alison Saxby, asaxby@roskill.co.uk

Concrete

Nuvoco Vistas Reports Record Q2 EBITDA, Expands Capacity to 35 MTPA

Cement Major Nuvoco Posts Rs 3.71 bn EBITDA in Q2 FY26

Published

3 days ago

October 22, 2025

admin

Nuvoco Vistas Corp. Ltd., one of India’s leading building materials companies, has reported its highest-ever second-quarter consolidated EBITDA of Rs 3.71 billion for Q2 FY26, reflecting an 8% year-on-year revenue growth to Rs 24.58 billion. Cement sales volume stood at 4.3 MMT during the quarter, driven by robust demand and a rising share of premium products, which reached an all-time high of 44%.

The company continued its deleveraging journey, reducing like-to-like net debt by Rs 10.09 billion year-on-year to Rs 34.92 billion. Commenting on the performance, Jayakumar Krishnaswamy, Managing Director, said, “Despite macro headwinds, disciplined execution and focus on premiumisation helped us achieve record performance. We remain confident in our structural growth trajectory.”

Nuvoco’s capacity expansion plans remain on track, with refurbishment of the Vadraj Cement facility progressing towards operationalisation by Q3 FY27. In addition, the company’s 4 MTPA phased expansion in eastern India, expected between December 2025 and March 2027, will raise its total cement capacity to 35 MTPA by FY27.

Reinforcing its sustainability credentials, Nuvoco continues to lead the sector with one of the lowest carbon emission intensities at 453.8 kg CO? per tonne of cementitious material.

Concrete

Jindal Stainless to Invest $150 Mn in Odisha Metal Recovery Plant

New Jajpur facility to double metal recovery capacity and cut emissions

Published

1 week ago

October 17, 2025

admin

Jindal Stainless Limited has announced an investment of $150 million to build and operate a new wet milling plant in Jajpur, Odisha, aimed at doubling its capacity to recover metal from industrial waste. The project is being developed in partnership with Harsco Environmental under a 15-year agreement.

The facility will enable the recovery of valuable metals from slag and other waste materials, significantly improving resource efficiency and reducing environmental impact. The initiative aligns with Jindal Stainless’s sustainability roadmap, which focuses on circular economy practices and low-carbon operations.

In financial year 2025, the company reduced its carbon footprint by about 14 per cent through key decarbonisation initiatives, including commissioning India’s first green hydrogen plant for stainless steel production and setting up the country’s largest captive solar energy plant within a single industrial campus in Odisha.

Shares of Jindal Stainless rose 1.8 per cent to Rs 789.4 per share following the announcement, extending a 5 per cent gain over the past month.

Concrete

Vedanta gets CCI Approval for Rs 17,000 MnJaiprakash buyout

Acquisition marks Vedanta’s expansion into cement, real estate, and infra

Published

1 week ago

October 17, 2025

admin

Vedanta Limited has received approval from the Competition Commission of India (CCI) to acquire Jaiprakash Associates Limited (JAL) for approximately Rs 17,000 million under the Insolvency and Bankruptcy Code (IBC) process. The move marks Vedanta’s strategic expansion beyond its core mining and metals portfolio into cement, real estate, and infrastructure sectors.

Once the flagship of the Jaypee Group, JAL has faced severe financial distress with creditors’ claims exceeding Rs 59,000 million. Vedanta emerged as the preferred bidder in a competitive auction, outbidding the Adani Group with an overall offer of Rs 17,000 million, equivalent to Rs 12,505 million in net present value terms. The payment structure involves an upfront settlement of around Rs 3,800 million, followed by annual instalments of Rs 2,500–3,000 million over five years.

The National Asset Reconstruction Company Limited (NARCL), which acquired the group’s stressed loans from a State Bank of India-led consortium, now leads the creditor committee. Lenders are expected to take a haircut of around 71 per cent based on Vedanta’s offer. Despite approvals for other bidders, Vedanta’s proposal stood out as the most viable resolution plan, paving the way for the company’s diversification into new business verticals.