Connect with us

Economy & Market

Cement companies set to gain in coming months | Deutsche Bank

Published

on

Shares

A recovery in demand on the back of a good monsoon this year and low capacity additions are likely to reflect in the earnings of cement companies, leading to a re-rating of shares of these firms, according to a Deutsche Bank sector note. Shares of most cement producers such as India Cements, Ambuja Cements, ACC and UltraTech Cement were trading with gains in the range of 1 to 4 per cent.
In its sectoral analysis, Deutsche Bank said that the progressive distribution of rainfall in the country augurs well for the sector in the second half of the current fiscal after a weak demand in August in the range of 2 to 4 per cent. An update by the official weather forecaster of India puts the rainfall at 95 per cent of the average for the period June 1 to September 11, 2016.
However, most players agree that rainfall across most parts of the country has been normal and this has raised hopes of a pick-up in housing demand across rural parts, Tier-2 and Tier-3 cities in the second half of this year," Chockalingam Narayanan, research analyst at Deutsche Bank, said in his note.
The second boost is expected from the pick-up in roads. "Road construction activity has remained strong, barring the normal slackness seen in the monsoon season. In this scenario, we maintain our demand growth estimate for FY17at 7 per cent – implying an ask rate of 9 per cent demand growth in 2H (October 2016 to March 2017)," he added.
The price dynamics for cement firms in India, the second-largest producer of cement in the world, is also likely to benefit from negligible capacity addition and consequently, supply.
An exception to a fairly stable capacity scenario is in eastern India, with companies such as the Emami Group, ACC, Shree Cements and UltraTech ramping up capacity.
The cement sector went through a tough time till recently on account of weak domestic demand and cheap imports from Pakistan and China

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Economy & Market

Hindalco Buys US Speciality Alumina Firm for $125 Million

Published

on

By

Shares

This strategic acquisition marks a significant investment in speciality alumina, a key step by Aditya Birla Group’s metals flagship towards becoming future-ready by scaling its high-value, technology-led materials portfolio.

Hindalco Industries, the world’s largest aluminium company by revenue and the metals flagship of the $28 billion Aditya Birla Group, has announced the acquisition of a 100 per cent equity stake in US-based AluChem Companies—a prominent manufacturer of speciality alumina—for an enterprise value of $125 million. The transaction will be executed through Aditya Holdings, a wholly owned subsidiary.

This acquisition represents a pivotal investment in speciality alumina and advances Hindalco’s strategy to expand its high-value, technology-led materials portfolio.

Hindalco’s speciality alumina business, a key pillar of its value-added strategy, has delivered consistent double-digit growth in recent years. It has emerged as a high-growth, high-margin vertical within the company’s portfolio. As speciality alumina finds expanding applications across electric mobility, semiconductors, and precision ceramics, the deal positions Hindalco further up the innovation curve, enabling next-generation alumina solutions and value-accretive growth.

Kumar Mangalam Birla, Chairman of Aditya Birla Group, called the acquisition an important step in their global strategy to build a leadership position in value-added, high-tech materials.

“Our strategic foray into the speciality alumina space will not only accelerate the development of future-ready, sustainable solutions but also open new pathways to pursue high-impact growth opportunities. By integrating advanced technologies into our value chain, we are reinforcing our commitment to self-reliance, import substitution, and building scale in innovation-led businesses.”

Ronald P Zapletal, Founder, AluChem Companies, said the partnership with Hindalco would provide AluChem the ability and capital to scale up faster and build scale in North America.

“AluChem will benefit from their world-class sustainability and safety standards and practices, access to integrated operations and a consistent, reliable raw material supply chain. Their ability to leverage R&D capabilities and a talented workforce adds tremendous value to our innovation pipeline, helping drive market expansion beyond North America.”

An Eye on the Future

The global speciality alumina market is projected to grow significantly, with rising demand for tailored solutions in sectors such as ceramics, electronics, aerospace, and medical applications. Hindalco currently operates 500,000 tonnes of speciality alumina capacity and aims to scale this up to 1 million tonnes by FY2030.

Commenting on the development, Satish Pai, Managing Director, Hindalco Industries, said the deal reinforced their commitment to innovation and global expansion.

“As alumina gains increasing relevance in critical and clean-tech sectors, AluChem’s advanced chemistry capabilities will significantly enhance our ability to serve these fast-evolving markets. Importantly, it deepens our high-value-added portfolio with differentiated products that drive profitability and strengthen our global competitiveness.”

AluChem adds a strong North American presence to Hindalco’s portfolio, with an annual capacity of 60,000 tonnes across three advanced manufacturing facilities in Ohio and Arkansas. The company is a long-standing supplier of ultra-low soda calcined and tabular alumina, materials prized for their thermal and mechanical stability and widely used in precision engineering and high-performance refractories.

Saurabh Khedekar, CEO of the Alumina Business at Hindalco Industries, said the acquisition unlocked immediate synergies, including market access and portfolio diversification.

“Hindalco plans to work with AluChem’s high performance technology solutions and scale up production of ultra-low soda alumina products to drive a larger global market share.”

The transaction is expected to close in the upcoming quarter, subject to customary closing conditions and regulatory approvals.

 

Continue Reading

Concrete

Shree Cement reports 2025 financial year results

Published

on

By

Shares

Shree Cement posted revenue of US$2.38 billion for FY2025, marking a 5.5 per cent decline year-on-year. Operating costs rose 2.9 per cent to US$2.17 billion, resulting in an EBITDA of US$528 million—down 12 per cent from the previous year. Net profit fell 50 per cent to US$141 million. The company reported cement sales of 9.84Mt in Q4 FY2025, a 3.3 per cent increase from 9.53Mt in Q4 FY2024, with premium products making up 16 per cent of total sales.

Image source:https://newsmantra.in/

Continue Reading

Concrete

Rekha Onteddu to become director at Sagar Cements

Published

on

By

Shares

Sagar Cements has announced the appointment of Rekha Onteddu as a non-executive independent director, effective 30 June 2025. According to People in Business News, Rekha Onteddu is currently serving in a similar capacity at Andhra Cements, the parent company of Sagar Cements.

Image source:https://sagarcements.in/

Continue Reading

Trending News