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India Cements addresses UltraTech merger speculation

In Q1 of the current FY, India Cements reported an improved EBITDA of Rs 1.63 billion.

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Rupa Gurunath, Whole-Time Director of India Cements, addressed shareholders during the company’s 78th Annual General Meeting (AGM), responding to speculation about a possible merger with UltraTech Cement.

On July 28, 2024, India Cements’ promoters signed a Share Purchase Agreement with UltraTech Cement Ltd, agreeing to sell their equity shares at Rs 390 per share, pending necessary regulatory approvals. UltraTech, part of the Aditya Birla Group, has also initiated an “Open Offer” and is currently awaiting regulatory clearance to finalise the acquisition.

When questioned about the merger, Gurunath stated that she could not disclose specific details but assured shareholders that UltraTech would prioritise employee welfare. “The employees will be taken care of by UltraTech,” she reiterated.

Discussing the company’s recent performance, she highlighted that cost-reduction measures recommended by BCG have successfully lowered variable costs at several plants. “We have already implemented some recommendations, and these initiatives will continue. We are confident that UltraTech will further these efforts,” Gurunath added.

In Q1 of the current fiscal year, India Cements reported an improved EBITDA of Rs 1.63 billion, a significant turnaround from the negative EBITDA of Rs 1.4 billion in the same period last year, despite a 4% drop in clinker and cement sales. However, realisations saw a marginal decline, and the company’s strained working capital and ongoing losses impacted its ability to fully leverage these cost savings.

Despite reduced variable costs and stable realisations, lower sales volumes limited the company’s ability to capitalise on these improvements. Gurunath also clarified that India Cements has not delayed or defaulted on any loan repayments, managing its finances through recovery of advances and sales of non-core assets.

A recent CareEdge report suggested that consolidation in the cement industry, such as the potential UltraTech-India Cements merger, could strengthen pricing power, create cost-reduction synergies, and improve operational efficiency, ultimately enhancing market reach and brand positioning in the long term.

(BusinessLine)

Concrete

Star Cement launches ‘Star Smart Building Solutions’

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Star Cement has launched ‘Star Smart Building Solutions,’ a new initiative aimed at promoting sustainable construction practices, as per a recent news report. This venture introduces a range of eco-friendly products, including tile adhesives, tile cleaners and grouts, designed to enhance durability and reduce environmental impact. The company plans to expand this portfolio with additional value-added products in the near future. By focusing on sustainable materials and innovative building solutions, Star Cement aims to contribute to environmentally responsible construction and meet the evolving needs of modern infrastructure development.

Image source:https://www.starcement.co.in/

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Concrete

Nuvoco Vistas reports record quarterly EBITDA

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Nuvoco Vistas reported its highest-ever quarterly consolidated EBITDA of Rs.556 crore in Q4 FY25, with annual EBITDA at Rs.1,391 crore. Cement sales reached 19.4 MMT in FY25, with Q4 contributing 5.7 MMT. Revenue rose 4 per cent YoY to Rs.3,042 crore in Q4. Net debt reduced by Rs.390 crore to Rs.3,640 crore. The company received NCLT approval for acquiring Vadraj Cement, targeting 31 MMTPA capacity by FY27. Key marketing initiatives, expanding RMX and MBM businesses, and a focus on sustainability (457 kg CO2/tonne) drove performance. Nuvoco remains focused on premiumisation, operational efficiency, and market expansion.

Image source:nuvoco.com

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Concrete

UltraTech Cement increases capacity by 1.4Mt/yr

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UltraTech Cement has expanded its production capacity by 1.4 million tonnes per annum (Mt/yr) through a combination of debottlenecking efforts and operational efficiency upgrades across several of its plants. The enhancements include an addition of 0.6Mt/yr in grinding capacity at the Nagpur facility in Maharashtra and a combined 0.8Mt/yr at the Panipat and Jhajjar units in Haryana. With these upgrades, the company’s total domestic grey cement capacity has risen to 184.8Mt/yr, while its global capacity now stands at 190.2Mt/yr.

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