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We are expecting a turnover of Rs 400/450 cr after completion of Phase-1

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RP Gupta, Chairman and Managing Director, Shiva Cement.

New capacity additions are becoming difficult due to regulatory hurdles in land acquisition, mining leases and environmental approval, says RP Gupta, Chairman and Managing Director, Shiva Cement. In an exclusive chat with ICR, he elaborates on the company’s expansion drive. Excerpts from the interview.

Could you throw more light on the current expansion plan, Phase I and Phase II?
We had signed MOU with the Odisha government for expanding plant capacity up to 2.6 mtpa with an investment upto Rs. 800 crore in two phases. Currently, Phase I plan is under implementation up to 1 mtpa with a capital outlay of Rs. 270 crore. Commercial production of Phase 1 is likely to commence from Jan 2015 and thereafter Phase 2 expansion shall be taken up.

What will be the total investment and how do you plan to raise the capital?
Phase 1 shall be financed through a debt of Rs 170 crore and balance by equity and cash accruals. The lead bank has already sanctioned term loan of Rs 70 crore. Consortium members are in the process of sanction of balance 100 crore which will be completed by 1st week of July. Promoters have already brought in about Rs 30 crore.

Will ACC be taking more shares in SCL and how it is going to help its shareholders?
ACC has nominated directors in SCL’s Board and the total production of cement is marketed under ACC brand. They also provide technical and managerial guidance. Equity participation by ACC shall be negotiated only after sanction of loan. Shareholders shall be certainly benefited after expansion out of increased volume and efficiency. Several surplus assets shall be put to productive use after expansion.

What is your take on the current demand-supply mismatch?
In the recent past, substantial capacity was added in the country in anticipation of growth in demand. Unfortunately, demand is sluggish due to the slowdown in infrastructure and economy as a whole. However, such cyclical effects have been witnessed in the past also. Cement industry being a core sector, the medium and long- term view should be taken, which is certainly promising. Demand growth will certainly bounce back and excess capacity shall bottom out in the next two years. New capacity additions are becoming difficult due to regulatory hurdles in land acquisition, mining leases and environmental approval. If these issues are not addressed, it can create huge shortage and price hike, which is otherwise not desirable. It is understood that the domestic players do not enjoy a level playing field vis- a- vis global players, especially when it comes to import of cement. Yes. Input costs like fuel, energy and logistics cost is high in India, as compared to several other countries. All these are directly/indirectly controlled by the government. Yet India will always remain a net exporter of cement and clinker. The Indian cement industry is quite matured and adopting the latest technology in a quick manner. But the real worry is paucity of fuel and energy. We must liberalise the primary energy sector and create competition for improving supply with affordable cost and reducing dependency on imported energy. Competition is also needed in the secondary energy distribution and cross subsidy to be removed. Otherwise, the cement price will keep on spiralling.

Brief us on the steps you have taken to optimise fuel/energy efficiency.
Saving fuel and energy is most vital not only for the profitability but also for addressing environmental concerns. After expansion, our fuel and energy consumption-per-tonne of cement shall be much lower than the industry average due to adoption of latest technology.

Where does the company see itself five years down the line, in terms of reducing its carbon footprints?
After expansion, carbon emission per tonne of cement in SCL could be lower by about 40 per cent in comparison to industry average due to saving in fuel, energy and limestone consumption. The major reduction will be on the account of lowering clinker consumption through latest technologies.

How do you assess the challenges on the logistics front?
Logistics costs in our country are too high. Inadequate capacity in railway aggravates the problem for long- distance despatches of bulky product like cement, coal and minerals. Fortunately, our plant is located in the vicinity of market and raw material source. Therefore dependency upon rail despatch is quite low which provides us with an edge over other. However, in the larger interest of the country, we must transfer goods traffic from road to railway for cost- efficiency and reducing burden of imported energy. This needs a major restructuring of railway and augmenting investment of Rs.12 lakh crore in 12th Plan as against 2.6 lakh crore in 11th Plan. Details of such restructuring and financing solution are discussed in my book æTurn Around India.’

What steps does the company take to reduce the impact on the environment?
Environmental concern is one of the aspects of CSR and not the core issue, in my personal opinion. Rather, the core aspect is protecting the interest of shareholders, employees, customers, suppliers and neighbouring villagers. Environmental concern has been over politicised in our country. India’s per capita GHG emission is about 1.43 T as against world average 4.74 T. The industry’s share of GHG emission in the country is barely 21.7 per cent as against 17.6 per cent by agriculture, 10.2 per cent by domestic and 7.5 per cent by transport. It requires a separate debate while focussing on industry alone. This is elaborated in my book æTurn Around India,’ recently launched by Narendra Modi. Any growth and development is bound to damage environment; maybe in less or more proportion. We must not compromise with growth and development till our per capita income comes near to the world average and current account deficit is brought to nil. Thereafter, we should increase spending on green technology as a part of global mission. Every developed country has adopted a similar strategy during their development phase. Hence, we should also take a rational approach on this front.

What is your take on the usage of AFR?
Currently, we are not working seriously on alternative fuel, since our plant is located in the coal belt. However, some trials were conducted on the use of CHAR, a waste product of sponge kilns. It needs extensive study before putting into commercial use.

Brief us on the challenges faced by the cement industry today. How has SCL been able to sustain the growth momentum?
The immediate challenge is sluggish demand but it is a temporary phenomenon. The regular challenge will be escalating cost of fuel and energy for which we have taken adequate care in our expansion plan to reduce consumption. Another challenge is logistics cost and shortage of railway rakes arising due to lack of investment in railway and cross subsidy on goods freight. Fortunately, this is converted to our advantage due to market vicinity. But these issues need a pro-active policy for public interest.

In a very intense competitive market, what makes SCL different?
The core strength of SCL owns limestone mines. Existing integrated cement plants in this region do not have surplus limestone to expand the capacity and there are no virgin limestone deposits in the eastern zone. The other advantages are vicinity of market and vicinity of slag. We have adopted latest technology in the upcoming expansion with maximum use of slag which reduces production cost to significant level. Of course, our 26 years’ experience in the cement manufacturing and alliance with ACC are the added advantages.

Is there any plan to broaden the product basket?
Not at present

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Concrete

The RAHSTA to Innovation

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As part of the 10th India Construction Festival, the RAHSTA Awards recognised outstanding contributions to the road construction industry.

On October 10, 2024, the RAHSTA Awards were held at the Jio Convention Centre in Mumbai, forming a significant part of the 10th India Construction Festival. This esteemed event serves as a pivotal platform for recognising and honouring outstanding contributions in the road construction industry, particularly those that prioritise sustainability, innovation and excellence.
RAHSTA, an acronym for ‘Roads and Highways Sustainable Technologies & Advancement’, has become synonymous with the promotion of advancements in road construction equipment and technologies. Organised by the FIRST Construction Council, the awards seek to highlight the importance of sustainable practices in infrastructure development and celebrate those organisations that lead the way in this critical area.
At the event, Pratap Padode, Founder, FIRST Construction Council, underscored the importance of skilling the workforce in the construction sector. He pointed out that construction is India’s second-largest employer, with the potential to reach 100 million jobs by 2030. However, he emphasised that a significant portion of this workforce remains unskilled, with 80 per cent of the 70 million workers lacking adequate training.
“To bridge this skill gap, we must incorporate practical orientation in engineering and management courses,” Padode urged. He highlighted the Indian Government’s initiative to onboard 1 crore interns through CSR funding over five years, encouraging construction companies to participate actively
in this programme. By doing so, he said, the industry could not only enhance skill development but also position itself for future growth and sustainability.

The RAHSTA Awards recognised seven outstanding contributions to the road construction sector, celebrating innovations that drive sustainability and efficiency:

  • Award for Highest Standards of Excellence in Road Engineering & Construction: Patel Infrastructure
  • Award for Excellence in Bridge Engineering: L&T Construction, DIAL Phase 3A Project
  • Best Road Financier Award: HDFC Bank
  • Award for Best Use of Waste Material Recycling in Road Construction: Tata Steel
  • Best Digital Technology Award in Road Building: Cube Highways and Transport Assets Advisors
  • Award for Excellence in Project Management: Haryana Rural Road Infrastructure Development Agency
  • Innovation Award in Project Execution:
  • CC Precast Solutions
    Indeed, the RAHSTA Awards 2024 were more than just a ceremony; they represented a vital call to action for the road construction sector in India. By highlighting the importance of sustainability and technological advancement, the awards inspired industry stakeholders to strive for excellence
    and innovation.
    As the event concluded, it left attendees with a renewed sense of purpose and a collective vision for a more sustainable and efficient future in infrastructure development. The RAHSTA Awards stand as a testament to the possibilities that lie ahead when industry leaders come together to embrace change and foster growth.

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Concrete

Equipment India Awards 2024!

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The titans of the construction equipment industry were honoured at the 12th BKT Equipment India Awards 2024.

On October 10, 2024, Mumbai played host to the much-anticipated 12th BKT Equipment India Awards 2024, an event that recognised and celebrated the outstanding achievements within the construction equipment sector. The grand ceremony took place at Jio Convention Centre and was among the highlights of the India Construction Festival, which gathered industry leaders, manufacturers and financiers from across the nation to honour innovation and excellence in this vital sector.
The inaugural addresses set a reflective tone for the evening, emphasising the importance of collaboration and information sharing within the industry. In his opening speech, Pratap Padode, Founder, First Construction Council, remarked, “At Equipment India, we have always tried to enhance the standard of the industry. During this 17th year of our existence, we still find that companies are trying to hide behind a veil as far as the disclosure of factual data is concerned.” His emphasis on transparency resonated with the audience, highlighting the critical need for the construction equipment sector to adopt best practices for data sharing, akin to those seen in the automobile industry.
For his part, Vipin Sondhi, Chairman, RAHSTA Committee, and former MD and CEO, JCB India and Ashok Leyland, also shared optimistic insights, stating, “Today, we celebrate not just the figures but the remarkable individuals behind them – the innovators, manufacturers and teams that push the boundaries of what’s possible.” He highlighted the impressive growth of equipment sales, which saw a 26 per cent increase during FY2023-24, reflecting strong market recovery and renewed confidence.
The 12th BKT Equipment India Awards not only celebrated the achievements of key players in the construction equipment sector but also served as a reminder of the collective effort required to drive the industry forward. The event reaffirmed its commitment to supporting the industry’s ongoing evolution, ensuring that India remains a significant player in the global construction equipment market. With the industry poised to grow at a CAGR of 12 per cent, reaching $25 billion by the end of the decade, the evening left attendees inspired and motivated to continue pushing boundaries in their respective fields.
A significant highlight of the evening was the presentation of the Equipment India Person of the Year 2024 award to Jaideep Shekhar, Managing Director, Terex India. Under his astute leadership, the company has achieved remarkable growth, marked by innovation and a commitment to excellence. The jury praised his strategic vision, which has not only propelled the company’s success but also contributed positively to the broader industry landscape.
Receiving the award, Shekhar expressed heartfelt gratitude, stating, “I’m deeply grateful to the jury and Equipment India for this remarkable honour. This award reflects not only my contributions but also the dedication and hard work of my team. I have been associated with the industry for more than 25 years and this award motivates me to keep pushing boundaries and to lead the growth
with integrity.”
The award presentation was made all the more special by the presence of previous winners of the Equipment India Persons of the Year, including Vipin Sondhi, former MD and CEO, JCB India (Equipment India Person of the Year 2013); Sandeep Singh, Managing Director, Tata Hitachi Construction Machinery (Equipment India Person of the Year 2015); and Dimitrov Krishnan, Managing Director, Volvo Construction Equipment India (Equipment India Person of the Year 2013).
The event also witnessed the recognition of numerous companies across various categories, showcasing the best of the best in the construction equipment sector. Indeed, as the industry gears up for future challenges, the awards stood as a testament to resilience, creativity and the unwavering spirit of collaboration. Together, the participants are set to build a brighter tomorrow for the construction equipment industry in India, fostering innovation and sustainable practices that will serve the nation for years to come.

Winners of the 12th BKT Equipment India Awards

  • Equipment India Person of the Year 2024:Jaideep Shekhar, Managing Director, Terex IndiaGreen Factory of the Year: Tata Hitachi Construction Machinery
  • Best After-Sales Service Provider: Tata Hitachi Construction Machinery
  • Concrete Pumps: Schwing Stetter India
  • Truck Cranes: Sany Heavy Industry India
  • Asphalt Plants: Ammann India
  • Asphalt Finishers: Ammann India
  • Batching Plants: Schwing Stetter India
  • Crawler Cranes: Sany Heavy Industry India
  • Piling Rigs: Sany Heavy Industry India
  • Rigid Dump Trucks: Caterpillar India
  • Motor Graders: Caterpillar India
  • Mini Excavators: Tata Hitachi Construction Machinery
  • Crawler Excavators: Tata Hitachi Construction Machinery
  • Mobile Cranes: Action Construction Equipment
  • Crawler Dozers: BEML
  • Skid-Steer Loaders: Doosan Bobcat India
  • Wheel Loaders: LiuGong India
  • Self-Loading Concrete Mixers: AJAX Engineering
  • Tower Cranes: Action Construction Equipment
  • Compaction Equipment: Case Construction
  • Mobile Cranes: Action Construction Equipment

“I congratulate ASAPP Info Global on the outstanding success of the conference and award shows! It was a privilege to be part of such an insightful session with industry leaders.”
– Sanjay Koul, President- India and South East Asia and Managing Director, Timken India

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Concrete

22nd CONSTRUCTION WORLD Global Awards Excellence Revisited!

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At the 22nd CONSTRUCTION WORLD Global Awards, over 50 awards in 21categories were presented to industry stalwarts.

The 22nd CONSTRUCTION WORLD Global Awards, was held on October 9 and 10, 2024, at the Jio World Convention Centre, Mumbai, and hosted by infrastructure think-tank FIRST Construction Council in partnership with CONSTRUCTION WORLD (CW) and Equipment India (EI) magazines. Incidentally, the spectacular RAHSTA Expo was India’s first indoor trade fair for construction equipment technology.

Benchmarked to global standards
At the inaugural session, Sanjay Bhatia, Upa-Lokayukta, Government of Maharashtra, along with Vipin Sondhi, Chairman, RAHSTA Expo Committee, and Pratap Padode, Founder, FIRST Construction Council, inaugurated the RAHSTA Expo. Expressing delight at the huge display of construction technology, Bhatia said, “The expo has put the construction industry on an international standard. India is experiencing nation-building at a robust pace and I am truly impressed with the work now being done by our youth with their startups, many of whom are showcasing their innovation here.”

Special bytes
At the 22nd CONSTRUCTION WORLD Global Awards, over 50 awards in 21 categories were presented to over 50 companies.
“I am thrilled to accept this award on behalf of Century Ply,” said Anup Mangaserri, Chief Executive Officer – Laminates, Century Plyboards India.
“It’s an honour to be recognised and I extend my heartfelt thanks.”
“Tata Consulting Engineers has made significant strides in nation-building projects in India and
high-impact engineering efforts abroad,” said BR Parthasarathy, Senior Vice President and Head – Infrastructure Cluster, Tata Consulting Engineers (TCE), sharing his pride in receiving the ENR Award. “This recognition underscores our global capabilities and we are honoured to be part of this journey.”
For his part, Sarat Chandak, CEO, H&R Johnson, said, “We are truly delighted to receive this award as the most admired brand in the construction world. This recognition reflects the dedication and hard work of the brand over its six-year journey in India. Thank you for acknowledging our efforts.”
And Sandeep Desai, Executive Director, and Ananta Rayaprolu, Director, Afcons Infrastructure, noted, “This is a proud moment for the entire Afcons team to have this particular trophy and prestigious award. Afcons has always been at the forefront of extreme engineering, and we are really happy for this acknowledgment, which motivates us to continue pushing the boundaries of innovation.”
Joining the chorus of gratitude, Manish Kumar, Executive Vice President, ITD Cementation, stated, “It is an incredible honour to receive this award and to be here for this event, which is very well organised. Being recognised among the best of our peers in the industry is truly a privilege. I accept this on behalf of my team and company and we are deeply grateful for this recognition.”
Many winners addressed the efforts that led to their recognition. “We are extremely proud and thankful that our founder has received the CW Person of the Year (Private Sector) award,” said Hardik Agrawal, Director, Dineshchandra Agrawal (DRAIPL). “This recognition reflects the relentless efforts of the entire Dinesh Chandra Group. We are deeply motivated by this honour and we thank the CONSTRUCTION WORLD Global Awards for this acknowledgment.” And Lalit Chhabra, Managing Director, PINI India, added, “It is a tremendous honour to receive this award. We are delighted that our global efforts have been recognised. This is a testament to what we have done in the past and our hard work. We look forward to improving our ranking in the years to come.”
Sharing his excitement, Ryoya Watanabe,
Senior Manager – BD & Marketing Division, Nippon Koei India, said, “We are headquartered in Tokyo and I am excited and honoured to accept this prestigious award. Thank you very much for this recognition.”
Meanwhile, Saji Samuel, Executive Vice President (Long Products), JSW Steel, brought the conversation around to India’s bright future. “I feel elated with this award because this is going to propel India into a five trillion-dollar economy as quickly as possible,” he remarked. “I wish CONSTRUCTION WORLD all the very best and hope many new companies will participate in this event going forward. I feel very proud to hold this trophy in my hand on behalf of my company.”
This collection of leaders from different sectors was a showcase of the diversity and excellence celebrated by these prestigious awards, marking significant milestones in their respective industries.
As Rajiv Poddar, Managing Director, BKT, observed, “India Construction Festival 2024 has once again proven to be an invaluable platform for the construction equipment industry. The convergence of innovative ideas and collaborative efforts showcased here reflects our collective commitment to growth and excellence. Congratulations to ASAPP Info Global for orchestrating such a successful event and to all the award winners – your achievements are a testament to the bright future of our industry.”

An event to remember Another highlight of the event was the launch of Pratap Padode’s book, Tarmac to Towers – India’s Infrastructure Story.
Indeed, in keeping with tradition, the annual CWGA Awards ceremony was a memorable celebration of architectural achievements and a platform for dialogue on critical issues affecting the construction industry.

 

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