India Cement & Construction Materials (vol 1 / issue 2)

india CemWeek A CemWeek Publication

Cement VOLume 1

issue 2

september / october 2011

& construction Materials

POLYSIUS: INNOVATIONS Leader's Q&A: Makarand Marathe, SVP

CEMENT MARKET

India cement sector round-up

REGENERATIVE KILNS

Italy's Cimprogetti on Lime Kiln Technology

INFRASTRUCTURE CONSTRUCTION Mega Projects & More

News

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Analysis

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Market Coverage

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Interviews

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People Moves

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FEATURES

Cement & construction Materials

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CemWeek rOBERT MADEIRA CemWeek ANTHONY FITZGERALD CemWeek BMWeek BMWeek BMWeek

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INNOVATION IN A DEVELOPING MARKET

1

EDITOR’S LETTER

10

CIMPROGETTI: A CASE STUDY IN LIME

2

NUMBERS IN BRIEF

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PROFILES

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A conversation with Makarand Marathe, the Senior Vice President of Polysius India A summary of the 500-tph lime kiln firing biomass with “Syngas” option

ADDRESSING INDIA’S ENERGY NEEDS

Options are limited as companies search for fuel alternatives

cement 18 20

28 39

Taking a closer look at India’s growing need for coal and skilled labor Second quarter cement industry performance: details and analysis Madras Cement: Solid Earnings Spur Growth

INSIGHT

India’s skilled labor shortage and an economy about to decline

construction & building materials

MARKET AND COMPETITION

Ministry of Corporate Affairs (MCA) clears leading players of wrongdoing

VOLUME AND PRICING

Price fluctuations and uneven sales numbers

21

PEOPLE

22

M&A AND FINANCE

24

PROJECTS AND EXPANSIONS

27

REGIONAL UPDATE

Better wages for Chandrapur cement workers; environmental concerns presented

30 32

Pakistan, Bangladesh, Sri Lanka, Nepal and Bhutan

39

EQUIPMENT

The latest updates that get the shovel in the ground

42

ANALYST RECOMMENDATIONS

43

STOCK PERFORMANCE

Global providers look to expand into Indian market Expansion projects continue; key manufacturers ramp up capacity

Mergers, expansions and people on the move

PROJECTS

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Infrastructure upsizes to meet demand, plus current and new construction Highlights of the latest in broker recommendations on cement companies Comprehensive data on major cement companies in India

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letter from the editor

onwards and upwards he CW Group was overwhelmed by the positive response to our inaugural issue of the India Cement and Construction Materials (ICCM) magazine. We want to thank the CW Group readers for their continued support and feedback as we publish another packed edition of the ICCM magazine.

India’s appetite for energy continues to rise, but production is failing to keep up with growing demand. The cement industry, like other industries, is feeling the pinch. The feature article, Addressing India’s Energy Needs, takes a closer look at how the current coal shortage is affecting the sector and what options may prove to be viable alternatives for the future.

In addition to contributions from our regularly featured departments, which cover the latest news and events in the Indian cement and construction sector, three special feature articles are included in this edition.

Finally, the government may find itself hitting a significant roadblock in its push to improve infrastructure. While it has developed a plan and committed to spending over US $1 trillion to bring those plans to fruition, the severe shortage of skilled labor capable of implementing those large construction projects may present a significant roadblock. India’s Skilled Labor Shortage: An Obstacle to Economic Growth discusses the issue and the proactive steps some companies are taking to address the problem.

First, CemWeek catches up with the Senior Vice President of Polysius India, Makarand Marathe, for a candid conversation. Mr. Marathe shares his thoughts on a variety of issues, ranging from India’s fuel access and energy problems to the country’s latest capacity expansion efforts to where the next innovations in the cement sector will come from in the coming years.

In that spirit, we also take a closer look at the current big infrastructure and

construction programs across the country.

As none of these projects would be possible without two parts—cement on one hand of course and construction equipment on the other—the ICCM reviews the latest developments on the construction and building equipment side. Based on reader feedback, in this and future issues, you can expect a robust coverage of the construction materials and equipment sectors to speak to the broader sector as a whole.

As always, your contributions and comments are welcomed. If you are interested in contributing to the ICCM magazine with an article, or simply want to share your feedback, contact us at editor@cemweek.com.

Robert Madeira publisher and head of research

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numbers in brief Not out of the woods ement volumes in India have fluctuated over the past few months, trailing into a slow August when 13.43 million tons were dispatched (down from 14.36 million in July). While September pan-India volumes are still to be tallied, indications are however that things are looking up with robust growth in September.

ALL INDIA VOLUMES (mtpy) Production

15.0

Dispatches

13.5

12.0 JUNE 2011

JULY 2011

AUGUST 2011

ricing has shown itself more resilient, though not without volatility. Prices in the South have continued to trend high, with prices trending into the high Rs200s per 50 kilo bag. Seasonal drivers continue to exert material influence, and a pick-up in September volumes are expected to further support pricing.

INDIA CEMENT PRICES (Rs per 50kg bag) 300 South West East

250

Central North

200

Low

High JUNE

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SEPTEMBER/OCTOBER 2011

Low

High JULY

Low

High AUGUST

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feature

polysius india:

Innovation in a Developing Market In this interview, CemWeek talks to Makarand Marathe, the Senior Vice President of Polysius India. Mr. Marathe shares his thoughts on recent developments in the Indian cement market, the use of alternate fuels in India, and new Polysius innovations being utilized

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olysius has a long and innovative history working with Indian cement manufacturers. Cement companies across India, including Ambuja Cements, India Cements, Vasavadatta Cement, the Aditya Birla Group, ACC, Jaypee Group, and JK Cement are utilizing the modern and cutting-edge technologies offered by Polysius.

CemWeek: Polysius has a long history in India. Can you tell us a little about the history and your relationship to Polysius in Beckum?

Makarand Marathe: Polysius India, a division of ThyssenKrupp Industries India, is a subsidiary of Polysius, which is a 152-year-old engineering company, and an important arm of the German multinational group, ThyssenKrupp.

Polysius’ first footprint in India dates back to 1938, with the supply of four Lepol cement plants, each with a capacity of 250 tons-per-day (tpd), to Dalmia Cement. However, full Indian operations commenced from March 1980 when Polysius entered into a collaboration agreement with then Buckau Wolf India (now ThyssenKrupp Industries India) for the manufacture and supply of plant machinery and equipment for cement and minerals to the Indian sub-continent.

In the span of 31 years, Polysius India has successfully installed and commissioned 26 integrated plants and another seven integrated plants are in various stages of completion. Plant capacities range from 650 to 10,000 tpd. In addition, more than 40 split located and independent clinker grinding units have been supplied to date. Apart from India, we have supplied and installed integrated cement plants in Kenya, Sudan, the UAE, and Nepal, and grinding units in Bangladesh, Mozambique, Bahrain, and Uganda.

Gulf Cement Plant photo

Involvement of Polysius Beckum in projects handled in India is in the form of technological support, supply of critical components, agreement on equipment selection and sizing, process calculations, etc. Moreover, a substantial amount of engineering work is handled for Polysius Beckum projects in India.

CemWeek: What sets Polysius apart from other market participants?

Makarand Marathe: Apart from the complete range of equipment which Polysius can offer from its stable for cement plants, I believe it is the Research and Development at Polysius. Polysius makes huge investments each year in developing more efficient technologies and processes.

All such developments are available to Polysius India, as and when required.

Also, we have our own manufacturing setups in Pune and Hyderabad, which are not only modern workshops, but are also equipped with a highly qualified team of engineers / technicians and supported by a robust and modern IT infrastructure.

CemWeek: What are some examples of the more interesting projects you are undertaking in India that could be shared in other markets around the world?

Makarand Marathe: One well-regarded project is the installation of a high pressure grinding roll Polycom in conjunction with Sepol HR (a horizontal dynamic separator) or Sepol PC (a static-dynamic separator) for increasing energy efficiency and reducing investment costs for raw material and clinker grinding.

The success at Vasavadatta Cement in Sedam has established that such systems consume 25 to 30 percent less power compared to VRMs for a given capacity, in case of raw material grinding. A paradigm shift is observed towards this technology and is evident from the fact that Polysius has sold 21 such circuits in just eighteen months.

CemWeek: Fuel access as well as energy problems are a seemingly constant struggle for Indian cement companies. How do you

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feature

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think this challenge will evolve and what ideas does Polysius have to help the cement companies?

Makarand Marathe: Almost all plants in India are coal based. The majority have coal linkages with public sector undertakings.

The importation of coal or the shifting to alternate fuels such as petcoke meets the shortfall such linkages create.

To overcome the energy-related problems, cement manufacturers have no option but to install their own captive power plants, and waste heat recovery has become essential. The Boiler and Power Plant division of ThyssenKrupp Industries India is geared up to meet this requirement.

CemWeek: What is the state of alternative fuels in India? How is it different from other markets like, for example, Europe?

Makarand Marathe: The usage of alternate fuel is not as encouraging in India as compared to Europe. However, Indian cement manufacturers have started seriously to consider the use of alternate fuels.

Petcoke is the most preferred alternate fuel. It is used in significant proportions

by Indian Cement plants such as Aditya Cement, Vikram Cement, India Cements and Shree Cement. Other manufacturers are also following suit.

With the existence of the tire reconditioning industry in India, the availability of tires as a fuel source on a sustained basis appears to be difficult. However, plants like Vasavadatta Cement and India Cements are already contemplating using tires as an alternate fuel.

Despite efforts to recycle plastic waste in India, a certain percentage still finds its way into municipal waste. Vikram Cement has carried out experiments using treated municipal waste. Similarly, experiments have been carried out in India on the usage of other alternate fuels such as sludge from effluent treatment plants, usage of tar waste from the petroleum industry, paint sludge,

refinery sludge and agriculture waste like rice husks, etc.

CemWeek: With more focus on CO2 and other emissions, how has Polysius adapted its solutions?

Makarand Marathe: Carbon credit and low NOx and SOx are important initiatives to reduce environmental impact. Polysius has always remained in the forefront in developing “clean technology’, as well as providing environmentally friendly technological solutions. Prepol MSC. Prepol AS-CC, Polflame burner, recently developed Step-Combustor are a few of the solutions Polysius offers globally and also to Indian Cement manufacturers.

CemWeek: With concerns about over capacity in India, do you see this as a big issue in the next few years? What is Polysius doing in response?

Makarand Marathe: Over capacity may be a problem for the short term, provided the announced infrastructure spending by the government is not implemented in time.

However, I do not think there will be an over capacity problem in India on a long term basis. The reason is supply has always matched the demand.

CemWeek: Has the Indian cement market approached capacity expansions differently from other high growth markets such as China and Brazil?

Makarand Marathe: I think the approach has been more or less similar. Capacity additions have always been driven by two main factors in developing countries like India, China, and Brazil—i.e., an increase in infrastructure spending by the government and growth in the housing and real estate sector. Not only is the urban sector picking up, but also rural and semirural sectors have shown remarkable growth. The Indian cement industry has always kept pace with the increase in market demand.

The Indian cement industry has witnessed a sustained growth of nine to ten percent in

ARM Cement Kenya Plant photo INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

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feature

Recent Polysius projects in India cement manufacturer

project

status

ambuja cements, bhatapara

7,000 tpd

Completed

Ambuja Cements, Rauri

7,000 tpd

Completed

Visaka Cement, Tandur – Line II

3,000 tpd

Completed

Wonder Cement, Nimbahera

6,500 tpd

In progress

Reliance Cementation, Maihar

10,000 tpd

In progress

the last few years. In my opinion, this trend will continue assuming the GDP growth of India stays in the 7.5 to nine percent range.

CemWeek: Do you see differences within the various states of India?

Makarand Marathe: Yes. Naturally, states rich in limestone deposits like Andhra Pradesh, Karnataka, Rajasthan, Gujarat, Chhattisgarh, and Madhya Pradesh attract more investments, but we are also seeing investments being made in northeastern states like Assam.

More consumption is seen in cluster areas like Mumbai, Delhi, Bangalore, Pune, Punjab state, etc., while manufacturing

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plants are located near limestone deposits.

Hence, the need for having spilt-located clinker grinding units within the proximity of markets has become essential for cement producers.

CemWeek: Where do you foresee the next wave of innovation in the cement sector coming from?

Makarand Marathe: I think innovations will be in China and India. The simple reason is the investments made by global players in these countries in manufacturing as well as development work. Innovations will be driven by demand, and of course will be backed by European research. BMWeek

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Makarand Marathe Makarand Marathe is the Senior Vice President of Polysius India, a division of ThyssenKrupp Industries India. Mr. Marathe’s tenure with Thyssenkrupp Industries India is long and varied, having joined the company in 1980.

He was one of the first members of the newly formed cement machinery division in technical collaboration with Polysius, Germany. Mr. Marathe holds aCemWeek BachelorCW ofGroup Engineering Coal Weekand a Masters CemWeek CW Group Coal Week in Business Administration from the CemWeek CW Group Coal Week University of Pune.

Alsalam Cement plant photo

Mombasa Cement Plant photo

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

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feature

Cimprogetti Tests New Line of Regenerative Kilns Background In February 2008, Cimprogetti announced plans to design a new line of vertical regenerative kilns that would adopt a "Clean Development Mechanism" for the reduction of the atmospheric emissions of greenhouse gases in accordance with the Kyoto Protocol.

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These new kilns are reported to have several distinct characteristics such as the high quality of lime produced (environmental implications considered).

The kilns also have the ability to reduce operating and investment costs through innovative design solutions while offering environmentally-focused improvements.

They allow for the usage of diversified

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energy sources, and the ability to utilize renewable fuels which have subsequent advantages on the energy trade balance equation.

Cimprogetti performed a study, which was based on the installation of a Twin-D kiln at the Fornaci Zulian plant in Italy. A Cimprogetti Twin-D kiln with a 500 tons

per day (tpd) capacity operating a dual fuel source (i.e., 100% solid renewable fuel with natural gas as an emergency back-up), thus replacing the standard solid fossil fuel (pulverized coal or petcoke) with a wood based fuel (saw dust), was installed in the second half of 2009.

Process The Twin-D kiln is based on regenerative heat recovery technology. The kiln utilizes two shafts, one for combustion and the other for pre-heating. The process is called “Parallel Flow Regenerative”. The process refers to the chemical reaction of decarbonation of the limestone and takes place alternately in one of the two connected shafts of the kiln. When combustion occurs in the first shaft (which operates in co-current flow with the preheated combustion air), the fresh limestone is preheated in counter current flow in the second shaft, thus recovering the heat from the waste gas before it leaves the kiln through the stack.

The upper parts of the two shafts work like regenerators. During the first step, the waste gas preheats the limestone while in the second step the combustion air injected from the top of the shaft recovers the heat accumulated by the limestone.

The regenerative preheating process has very low fuel consumption and allows a total control over heat exchange, resulting in optimal product uniformity. The lime cooling is carried out efficiently by blowing air in countercurrent flow contemporarily in the lower part of both shafts.

The Fornaci Zulian’s kiln was designed to be powered with biomass (sawdust) at 100 percent, only keeping natural gas for heating up and safety back-up. The sawdust, supplied by various suppliers, is handled and stored in different silos. A daily silo is the final step before feeding the kiln. In Table 1, the main chemical characteristics compared with petcoke and coal are outlined.

The LHV for sawdust is lower (-44.4% compared to the LHV of coal and -53.7%

table 1 - SUMMARY: PROPERTIES OF FUEL

FUEL

SAWDUST

PETCOKE

COAL (TYPICAL)

kcal/kg (dry)

3,750

8,100

6,750

Volatile matter

%

<60

8-12

16-24

Fineness (res.90µm)

%

30-40

4-6

5-8

Moisture

%

<5

<1

<1.5

Ash

%

<3

<1

<12

LHV

compared to that of petcoke) which means that a greater quantity of sawdust is required to obtain the same levels of thermal energy and consequent production.

Modifications To carry out the process with the new fuel, several changes to the operating system were necessary including: Increasing the flow to the blowers used for the transportation of pulverized fuel because of lower calorific. Installed electric motors with variable frequency drives (VSD) in order to optimize the concentrations of air / dust for all combustion lances;

SO2 is produced by oxidation of the sulphur and by decomposition of sulphates.

The CO2 level of the exhaust gas is reduced because of the large number of lances, combined with the adequate excess air control system, and with the well-proven design of the burners by Cimprogetti.

Regarding CO2 emission, it is not possible to reduce carbon dioxide caused by the chemical reaction of dissociation of Parallel Flow Regenerative Kiln Process

Improved all the process parameter to respect the stricter environmental emission limits in accordance with Italian (and European) regulations; The collection of exhaust gas from the kiln in a fabric filter equipped with 550 bags (approx. 1250 m2) in order to reduce the amount of dust to less than 10 mg/Nm3.

NOx control (in lime kilns there is no thermal NOx) achieved by controlling the combustion air in relation to the quantity of fuel and to provide stable flames in the kiln. N.36 burner lances were installed in each shaft distributed over the kiln section area in order to better control the thermal dissociation of the limestone.

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feature limestone into CO2 and CaO. We can only reduce the ratio of fuel used for every kg of CaO produced, by optimising the combustion process.

The level of carbon dioxide emitted per kilogram of calcium oxide produced is calculated by adding (1) the amount of CO2 produced by the calcinations process to (2) the amount of CO2 produced by fuel combustion, as follows: 1. Emissions of CO2 arising as a result of the calcinations of calcium carbonate: to produce 1 kg of CaO, the resultant CO2 emissions amount to 0.723 kg (0.723 kg CO2 /kg CaO) with a 2% residue of CO2; 2. Emissions of CO2 arising from fuel combustion required to achieve calcinations as shown in Table 3: (a) Coal: to produce 1 kg of CaO, the resultant CO2 emissions amount to 0.341 kg (0.341 kg CO2 /kg CaO); (b) Petcoke: to produce 1 kg of CaO, the resultant CO2 emissions amount to 0.331 kg (0.331 kg CO2 /kg CaO); 3. Total emissions of CO2 into the atmosphere: (a) Coal:1.064 kg of CO2 for every kilogram of calcium oxide created (1.064 kg CO2 /kgCaO); (b) Petcoke: 1.054 kg of CO2 for every kilogram of calcium oxide created (1.054 kg CO2 /kgCaO).

Note: By biomass, we mean the biodegradable part of the product, waste or residue created by agriculture, forestry and related industries, as well as the biodegradable part of industrial and urban waste.

If we accept that CO2 emissions arising from the use of biomass are equal to zero, the global reduction in emissions would amount to 0.341 kg CO2 /kg CaO (-32.05%).

In the specific case of the TD-11 kiln, with the production of 500 tpd, the reduction in CO2 emissions caused by the replacement of coal fossil fuels with a fuel from a renewable source would amount to 7,116

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table 2 - SUMMARY OF THE GAS PROPERTIES AT CHIMNEY (@10% OF 02 DRY)

AFTER PERFORMANCE TEST Dust

mg/Nm3@10%O2dry

10

O2

% dry

10-12

NOx

mg/Nm3@10%O2dry

< 400

SOx

mg/Nm3@10%O2dry

< 200

CO

mg/Nm3@10%O2dry

< 1000

% dry

20-22

CO2 (*)

kg/h. It follows that, in one year, the kiln would emit 56,265 fewer tons of CO2 (assuming 330 production days per year).

The burning of biomass fuel in the TD-11 kiln gives rise to a reduction of 56,265 tons per year of CO2 emissions, which grants the right to equivalent credits, provided the kilns have been previously monitored and validated according to the mechanism set out in the European Directive on Emission Trading (EU ETS) (2003/87/EC of 13 October 2003). Such credits can be traded or accumulated, whichever is more convenient. Further, the Linking Directive (EU Directive 2004/101/EC) allows that participants in the EU ETS can convert any credit obtained thanks to JI and CDM projects into EU ETS credits.

Conclusions The results achieved by Cimprogetti’s “Green TSR” (twin-shaft-regenerative)

500-tpd kiln study were based on the operation of the Fornaci Zulian kiln. The results suggested that the substitution of fossil fuel with renewable fuel may reduce GHG emissions, reduce operating costs (i.e., using cheaper fuels), and potentially provide an opportunity to obtain special credits by national and/or local governments for the use of biomass as fuel.

Additionally, the kiln allowed for the cofiring of saw dust and RDF (thermal recovery from selected waste material), the use of raw gas (SYNGAS) for lime production (large possibility of use of waste material without pre-selection), and ultimately a reduction in landfill usage.

A complete copy of the Fornaci Zulian kiln study can be found on the Cimprogetti website. BMWeek CemWeek CW Group Coal Week BMWeek BMWeek

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table 3 - summary of co2 emissions produced by the kiln

PETROLEUM COKE

FUEL

COAL

SAWDUST

Production

tpd

500

500

500

CO2 from limestone calcinations (2% Res. CO2)

Kg/h

15,062

15,062

15,062

CO2 from fuel (hour)

Kg/h

6,878

7,104

0 - see*

CO2 from fuel (daily)

t/day

165

170.5

0 - see*

CO2 from fuel (330 day/year)

t/year

54,450

56,265

0 –see*

* Using renewable energy from wood biomass (sawdust), the amount of CO2 emitted into the environment is considered, according the Kyoto Protocol, to be equal to zero because CO2 emissions during the burning of the sawdust is considered equal to the amount of CO2 absorbed by trees during their growth (due to chlorophyllous photosynthesis).

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The resource for global cement prices The CW Group's Global Cement Trade Price Report includes current pricing for cement delivered through the retail channel as well as import and export pricing for major markets around the world.

Worldwide monthly cement prices

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Global import and export cement prices: ■■ Major market trade flows ■■ FOB export prices ■■ CIF import prices

Global market cement prices.

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We know the cement industry well. Let us guide you. For more information please contact us at inquiries@cwgrp.com or on +1-702-430-17 48 848 N. Rainbow Blvd., Box #1658, Las Vegas NV, 89107, USA

INSIGHT India’s Skilled Labor Shortage:

An Obstacle to Economic Growth?

ndia is one of the fastest-growing countries in the world, and that may present a problem, as it requires a huge investment in infrastructure to support its quickly developing economy. India’s leaders see the country’s undeveloped infrastructure as creating a bottleneck to faster economic growth, and expect to spend an estimated US $1 trillion over the next few years to fix it. However, a huge obstacle to development of the country’s roads, bridges, tunnels, ports and all other major construction projects on drawing boards or in the pipeline is the lack of skilled labor available.

According to the most recent official data, there were roughly 31.5 million workers in India’s construction sector the last time the government officially tallied its workforce. The most alarming statistic was that around 83 percent were classified as unskilled. India’s construction industry, the largest employer in the country after agriculture, is hungry for workers that are more skilled. This problem is likely to

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become even more acute as it is projected that the construction sector will need to employ as many as 83 million workers by 2022.

workers is not only affecting the quality of construction output and delivery terms in India, but is also driving up the price tag of many projects.

Most major construction projects require talented and efficient engineers, carpenters, electricians, machinery operators, etc., and India is in desperate need of these types of skilled laborers. The severe lack of skilled

Formal Training Severely Lacking The country’s “unorganized/informal sector,” which plays a crucial role in the country’s development, employs more than 90 percent of India's work force. According

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to data from the Indian professional training market, only about five percent of India's 400-million-plus labor force has received any formal training whatsoever.

In contrast, the proportion in Germany is 70 percent and in Korea, 95 percent.

Advanced technology usage and targeted training are not common among most Indian workers. Human resources specialists contend that many workers in India do not see the value and the importance of formal training, and that there is an underlying belief that a better education does not create any real difference in many industries, particularly construction, when it comes to salary.

Therefore, the mindset encountered is often one of “why bother?”

India vs. China (GDP in $bn.)

YEAR

1985

1995

2005

2010

CHINA

306

INDIA

229

728

2,256

5,878

356

834

1,729

Source: The World Bank

The problem is so alarming that it has even been asserted by some that India as a nation is suffering as a result. Vinayak Chatterjee, Chairman of Feedback Ventures Company in New Delhi believes this to be the case.

He contends India has not developed the training institutes to develop the work force that can tackle the country’s current economic boom, and the outlook is not encouraging. The current training capacity, at a national level, would only allow for the training of about 50 million skilled workers in ten years. Unfortunately, the need is for

500 million, according to the consulting firm, McKinsey & Company.

Many industries have decided to take matters into their own hands. To fight the shortage that is affecting the construction sector, companies are setting up their own training facilities. Larsen & Toubro, India’s biggest engineering company, has installed such a facility close to Mumbai and is paying US $450 for each apprentice to take a three-month course in carpentry, bricklaying, or welding. The academic field is supportive as well. The first vocational university is under way in Gujarat, while the University of Kashmir is targeting training courses organized together with U.S. networking giant, Cisco Systems.

China: Rival or Mentor?

China’s involvement in the development of India’s economy is a sensitive topic, as many Indians have had to grudgingly accept China’s help in carrying out several of its larger construction projects. Many infrastructure projects like the Delhi airport were largely built by a Chinese labor force. With millions of unemployed unskilled workers, India found itself turning to an economic rival to bring in tens of thousands of skilled Chinese specialists to build and operate industrial hubs such as airports, energy facilities, and telecommunication sites. For many, it has been a bitter pill to swallow.

Ironically, China has had similar problems for the last few decades, with the government unable to coordinate its own systematic training programs, and private

companies struggling to educate their own specialists. There is however, a distinct difference between the two countries.

China is aggressively training its work force and industrializing its economy and the results speak for themselves.

For example, China has developed around 500,000 vocational training facilities while India has only 10,000 industrial institutes, many of which are outdated. Furthermore, the manufacturing sector accounts for 15 percent of India’s GDP (services account for more than half of the economy). In contrast, China’s GDP is roughly four times larger than India’s, and its manufacturing sector is 50 times bigger. China’s approach may assist India by providing it with a road map to future economic success.

India’s Future Uncertain The government has announced ambitious plans for the country. Plans that could eventually pull millions of people out of poverty and into the economic “virtuous circle” that India wants to create. By 2025, the government intends to nearly double the manufacturing output to 25 percent of GDP and create 100 million jobs.

Building more infrastructure will bring about more jobs and more wealth for everyone, but the lack of skilled workers needed may prove to be an insurmountable obstacle, affecting the future growth and development of India. Without aggressively tackling the shortage of skilled labor needed in the country, India may find that its economic future is not as assured as it would like it to be. BMWeek CemWeek CW Group BMWeek BMWeek

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DEMAND FOR SKILLED LABOR BY 2015

in millions 15.0

7.5

0.0

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FEATURE

Addressing India’s Energy Needs

No Easy Answer

ndia’s appetite for energy continues to rise, but production is failing to keep up with growing demand. The cement industry, like other industries, is feeling the pinch, and cement companies are beginning to explore alternatives in earnest.

THE TROUBLE WITH COAL India is estimated to have consumed 759,697 thousand short tons of coal in 2010. Only the United States and China outpaced India’s consumption. As India continues to grow its economy and modernize, the demand for a reliable and cost-effective energy source, specifically coal, is vital. However, the increase in demand for coal, particularly for the cement industry, is already proving to be troublesome.

The issue taking shape for India and the cement industry is that the demand for coal used mainly for electricity generation has increased sharply over the last few decades. According to the Pew Center on Global Climate Change, the percent of

coal used for electricity in India increased from just 20 percent in 1970 to around 75 percent in 2003. In 2010, the government acknowledged that the country would have to import 83 million tons of coal in 2011 and 2012 just to keep pace with current demand.

As a result, the cement industry, a highly energy intensive sector, finds itself fighting for an ever shrinking slice of the coal pie. Shrinking availability is not the only problem facing the cement industry. As demand for coal has risen, so have the costs, squeezing sometimes already shrinking profit margins. Decreasing availability of fuel is not a problem exclusive to cement companies, but it is one industry that is especially feeling its effects. Long-term

projections suggest that fossil fuels will come under even greater demand for many industries, which inevitably will drive up production costs in general.

LImited Options Cement companies have a few options for meeting energy needs. The first is to import coal from other countries. The second is to use alternative fuels as a way to power the production of cement. A third possible option is to use oil as a source of energy. Unfortunately, all of these alternatives come with drawbacks.

The first option, offsetting the reduction of domestic coal by importing, has limitations including higher competing demand from neighboring countries like

India's Energy Consumption (2000-2008)

YEAR

2000

2001

2002

2003

2004

2005

2006

2007

2008

375.39

384.91

403.74

428.18

457.03

483.26

531.25

578.77

600.65

Coal Consumption

403408.48

417498.22

424971.89

437462.18

483579.58

504908.21

539485.51

587255.27

632357.45

Coal Imports

25736.77

25167.97

28114.45

25989.19

34528.8

45420.74

52654.11

59571.11

67113.12

2.9

3

3.2

3.3

3.5

3.7

4.1

4.5

4.6

Energy Consumption

Ethanol Fuel Use (Thousands of Barrels)

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Pakistan, Bangladesh, and China, resulting in greater price fluctuations, which places pressure on production costs and ultimately company profits.

Another option is to use alternative fuels for cement production instead of the currently used coal and coke. Alternative sources of fuel can provide greater options, but there are tradeoffs, generally also in the form of higher levels of initial investment, emission concerns over the burning of hazardous waste products, and the overall level of energy generation. Still, the reduction in production costs related to the reduction in energy costs is an attractive lure for cement manufactures, and some have begun looking at alternatives to the widely used coal and coke.

A few cement manufacturers have already begun to experiment with waste fuels like Tire Derived Fuels (TDF) and fly ash.

In the past few years, Grasim Cement, Lakshmi and Rajshree Cement have tried co-firing TDF in their kilns. Additionally, several plants are exploring the use of waste derived fuels such as paint sludge,

petroleum refinery sludge and agroindustrial waste.

Waste Not, Want Not ACC Limited also started using waste products to fuel cement production. They pioneered a method for using industrial waste such as fly ash to fuel its kilns. In 2005, ACC partnered with Ford India to take on Fordâ&#x20AC;&#x2122;s industrial waste as a way to power its cement kilns. Both parties benefit from the partnership, as Ford is able to safely dispose of waste and ACC gains the obvious benefit of a replacement for coal for clinker production.

Other cement companies are turning to fly ash, a waste product from electrical plants, as a fuel for production as well. However, as beneficial as this relationship may be, waste producers have recently tried to turn the partnership into a profit producer by charging for waste. According to a recent report, power utilities have started charging up to RS 400 per ton for the fly ash.

Finally, the story for oil is similar to coal in that global demand remains high and supply tightly regulated. Just as the demand for coal has increased with modernization, the demand for oil in India has skyrocketed. The countyâ&#x20AC;&#x2122;s domestic oil production is only sufficient to cover around 22 percent of consumption, and this is projected to drop in the coming years as domestic output is expected to decline. Thus, in the next five years, India is likely to become even more dependent on oil imports, which are currently at around 2.4 million barrels per day.

The road to modernization and economic growth for India and its cement companies is by no means a straight shot. The idea of using alternative fuels is still in its infancy, and widespread usage appears years away. Yet, its attractiveness may grow as the global marketplace for coal and oil may prove too turbulent and aggressive for cement companies conscious of shareholders looking over their shoulders for profitability. As with many industries currently dependent on fossil fuels, the road ahead is likely a bumpy one. BMWeek BMWeek BMWeek

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cement market & competition

M

arket and competition

he investigation by the MCA into allegations of cartelization among leading cement manufacturers ended. Although found guilty of price manipulation by the SIFO—a charge ACC, Ambuja and UltraTech refuted—the MCA cleared all three, concluding there was no evidence of cartelization.

The news was welcomed by manufacturers, as was the projection by industry analysts that the country’s cement market in July was likely to post double-digit growth.

Regrettably, cement dealers weren’t encouraged by the announcement, as strong demand for bulk orders failed to materialize. Even sharp discounts on bulk purchase orders failed to offset the sharp increase in lending rates by banks, which hit buyers and real estate companies hard.

Investigation Closed India’s Ministry of Corporate Affairs (MCA) concluded its investigation of leading players ACC, Ambuja Cements and UltraTech with regard to allegations of cartelization. The commission began its investigation after the Serious Fraud Investigation Office (SIFO) found that the three companies were guilty of price manipulation between 2008 and 2010. The cement companies refuted the findings, arguing their actions were a function of the market and the way the cement industry functioned.

The SIFO had submitted a report to the MCA recommending action against the companies. In mid-September, the commission concluded there was no

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evidence of cartelization by the three leading firms.

The conclusion of the investigation helped to briefly boost the share prices for the three major manufacturers, as did the release of recent quarterly sales growth figures.

Holcim, which owns ACC and Ambuja Cements, outperformed its peers. ACC, with a capacity of 30 million tons, posted a 28 percent growth in its dispatches, which stood at two million tons in July, against 1.56 million tons in the corresponding period last year. JP Associates witnessed close to 19 percent sales growth, and Ambuja recorded 14 percent growth in its sales for the month. India's largest cement maker UltraTech Cement reported 7.4 percent sales growth.

New Strategy Required The government is urging J&K Cements to improve its production processes to enable it to compete with private cement brands, informing J&K that it should not rely on the government for purchases only. The company has been advised to come up with a marketing strategy that will allow it to be more competitive. The government has pledged its full support for launching the company’s new promotional strategy.

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Double-Digit Sector Growth Expected India's cement market was expected to post double-digit growth, with industry analysts projecting the sector may post 11 to 13 percent growth in July. The strong growth would come as a major boost to an industry that posted the lowest growth in over a decade at less than five percent in FY 2011. First quarter results showed a meager 0.50 percent growth year-on-year.

For cement dealers, the news is not as encouraging. Strong demand for bulk orders failed to materialize. Dealers offered special discounts on bulk purchases to increase orders, but the sharp increase in lending rates by most banks hit buyers and real estate companies hard. Unable to pass on the raise in raw material cost to end consumers, cement companies have begun cutting production. All raw materials have been hit by rising prices, with cost pressures on coal alone accounting for about 30 percent of the cost increase.

Spinning Off Cement Business Orient Paper and Industries announced it would spin off its cement business. The cement manufacturing division, which has a capacity of five million tons annually,

Analyst Confidence in Sector Wanes

Indian analyst SP Tulsian is not confident the cement sector will hit its industry goals this year.

CEMENT: MARKET AND COMPETITION

focus

In a recent interview, he was quoted as saying, “I am worried on the cement sector, which I had maintained my earlier view also firstly on the fundamental basis whatever we may be talking that post monsoon we are going to see the revival of the demand. I don’t think that one can really expect a cement growth in double digit. It is likely to be about eight to nine percent growth and secondly the capacity addition of about 40 million tonnes getting extra added in this, I don’t think that that can really – because you will be having the increase in the demand by about 22 to 24 million tons, while the capacity addition will be 40 million tons.

Already the industry is operating at less than 80 percent capacity."

contributed 53 percent of the company’s total sales in FY 2011. In addition to the spin off, the cement division is planning to set up a three million ton Greenfield project in southern Karnataka. The 17.5 billion rupees project is scheduled to commence production in mid-2014.

In the Works Ambuja recently signed a Memorandum of Understanding with the Jaipur Rajasthan State Industrial Development and Investment Corporation Limited (RIICO) for the laying of railway tracks between its cement plant at Rabriyawas in the Pali district and the Ras railway station in the Ajmer Marwar section of the North Western Railway. The project will facilitate the transport of raw as well as finished material from Ambuja’s cement plant. The cost is estimated at RS 150 crore.

Land concessions were granted to eight cement factories to be located in and around Sedam and Chincholi in the Gulbarga district. The concessions granted cover an area of over 4,000 acres. Among

the cement units to benefit from the concessions are Chettinad Cements, Shree Cements (Rajasthan), Dalmia Cements and India Cements.

Government Agency Criticized by Court The Indian Ministry of Environment and Forest was chastised by the country’s Supreme Court for irregularities in preparing an environmental study on a cement plant. The agency was criticized for asking Nirma to prepare a study on the flora and fauna for its proposed cement plant project area in Gujarat, a task that should have been done by the ministry itself.

The court accused the ministry of violating the precedent set by its landmark judgment on the Lafarge cement plant in Meghalaya. The court further directed the agency to file an affidavit giving reasons why it asked Nirma to prepare its own flora and fauna report.

Nirma also found itself in the court’s

New Cement Bag Launched

Jaypee Cement introduced its new tamperproof cement bags. The cement bags are laminated with polypropylene and are technologically superior to conventional bags. The new product will address major packaging issues in cement trade that occur due to changes in atmospheric conditions in addition to quality and quantity related concerns.

"The bag is tamperproof so it doesn't absorb moisture and hence the quality of cement will be preserved for longer," Jaypee Cement Marketing Advisor AK Jain said. "The seeping out of cement is also prevented and hence it is environment friendly.”

The bag will cost around five rupees more than the conventional bags.

crosshairs. The court asked the company to show cause as to why the environmental clearance granted for its RS 600 crore cement plant, coke oven plant and captive power plant near the village of Padhiarka in the Bhavnagar district should not be cancelled. BMWeek CemWeek CW Group Coal Week

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cement volume and pricing

V

olume and pricing

espite sluggish demand throughout much of India, several large manufacturers reported higher sales in August. Prices were on the rise in September after dropping throughout much of the monsoon season. However, capacity utilization rates trended lower into June thanks in part to the slower pace of infrastructure development.

Lower Capacity Utilization The slower pace of infrastructure development throughout India is affecting the industryâ&#x20AC;&#x2122;s capacity utilization rates.

A report by the Ministry of Statistics and Program Implementation indicated that manufacturers reduced their capacity utilization to roughly 75 percent between April and June this year.

Capacity utilization for the month of June was even lower, sliding to 73 percent.

Prices Fluctuate The Centre for Monitoring Indian Economy (CMIE) forecasted that cement prices would rise at the end of the monsoon season as construction activities resumed.

Sluggish demand since May had pulled prices down. Prices in the Mumbai, Delhi and Kolkata markets were down from their peak levels in March and April 2011.

Prices in the Mumbai market were down to RS 276 per 50 kg bag in July 2011, from RS 283 per 50 kg bag in April. In the Delhi market, cement prices declined to RS 256 per 50 kg bag from the peak level of RS 261 per 50 kg bag in April.

Similarly, prices in the Kolkata market dropped to RS 247 per 50 kg bag during

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CEMENT: people

the month from the peak level of RS 298 per 50 kg in March. Prices in the southern region bucked the downward trend and remained stable, with prices in the Chennai and Hyderabad market remaining steady.

By September, prices were once again climbing. Cement prices in North, East and Central India jumped by RS 10 to 25/bag. In the Eastern UP, prices rose by RS 25/bag, and by 10 to 15/bag in Delhi, Punjab and Rajasthan. However, dealers expressed concern that the current price increase would be difficult for the market to absorb given the current demand scenario.

Mixed Bag for Sales Ultratech reported higher sales in August as dispatches increased 3.4 percent to 30.6 lakh ton over the same month last year.

The company also registered a growth of 2.3 percent in cement production at 30.2 lakh tons compared to the corresponding period last year. Sales during the April through August period stood at 158.6 lakh tons, compared to 157.6 lakh tons during the same period last year. Over the next three years, Ultratech plans to spend a projected RS 11,000 on organic and inorganic projects in order to increase its output to nine million tons.

HeidelbergCement reported that sales fell below target this year, while higher costs continued to threaten the companyâ&#x20AC;&#x2122;s bottom line. The company had not passed rising costs on to its clients and expected prices to remain stable moving forward.

Holcim reported that both of its units had higher sales and production in August, as demand picked up. ACC reported around a 20 percent increase in sales at 18.8 lakh tons in August this year compared to 15.7 lakh tons in the corresponding month last year. Ambuja Cements sales rose to 15.08 lakh tons in August this year, up nearly three percent over 14.69 lakh tons sales recorded in the same month last year. Meanwhile, Jaiprakash Associates reported a 21-percent increase in its cement shipments in August, shipping 1.32 million tons. BMWeek CemWeek CW Group BMWeek BMWeek

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P

eople

ontracted cement workers in Chandrapur received a wage increase. The labor commissioner approved a daily wage hike of RS 49. Meanwhile, frustration for residents near an Ultratech Ready Mix Cement and Concrete plant grew, as allegations the factory is polluting the environment, and contributing to health-related concerns remained unanswered.

Better Wages Won Around 5,000 contract cement workers in five main factories in Chandrapur will be receiving higher salaries. The central regional labor commissioner at Nagpur approved an order giving the workers a hike of RS 49 in daily wages.

At first glance the RS 49 increase appeared small but was substantial, as the average increase was 27 percent. Prior to the hike, workers earned a daily wage of around RS 180. The increase will now raise their daily wage to RS 220.

Community Health Concerns In another part of the country, residents of the BDA Reliable Tranquil Layout and the neighboring Reliable Residency near Sarjapur are accusing the Ultratech Ready Mix Cement and Concrete plant on Haralur Main Road of causing air, water and sound pollution. The plant, residents allege, is producing and emitting minute cement particles, which are settling on homes, plants and trees.

According to a report commissioned by the residents, the particles were adversely affecting their health, particularly aggravating respiratory problems. A water test of bore wells near the plant also indicated the water was nonpotable.

Residents claim to have lodged repeated complaints with the plant managers over the past six years, but that nothing has been done to date to address the problems. BMWeek BMWeek BMWeek

focus Parekh Joins Advisory Board

Housing Development Finance Corporation (HDFC) Chairman Deepak Parekh joined the International Advisory Board of Lafarge. Parekh, who recently stepped down as Non-Executive Chairman of Lafarge India, was replaced by Uday Khanna, formerly the Managing Director and CEO of Lafarge India, while Chief Operating Officer - East Zone, Danilo Buscaglia and Chief Projects Officer Ujjwal Batria became the joint Managing Directors for Lafarge India.

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cement m&a and finance

m

&a and finance

5

1

lobal manufacturers are looking to expand their presence in India, as companies such as Holcim, Lafarge, and Cimpor explore various M&A opportunities. Indian-based Birla Group turns its eye to South America, and Jaiprakash sends signals it is possibly looking for a partner. Meanwhile, JK Lakshmi Cement halts its plans to expand abroad and instead focuses on the local market.

Wanted: Opportunities for Expansion Several global cement manufacturers including Cimpor, Lafarge, and Holcim have indicated a desire to expand their market share in India. Lafarge is exploring various merger and acquisition opportunities, and has initiated talks with Star Cement for a majority stake in its operation. It has also reached out to Madras Cement about the purchase of a grinding unit in West Bengal. Holcim has approached Madras Cement about the same unit, which Madras would reportedly like to sell for RS 350 crore. At the time of publication, no decision had been reached

by Madras regarding the sale of the unit.

JK Cement purchased the production facilities of Nihon Nirman through auction for RS 42 crore. Assets included two grey cement plants in Nimbahera and Mangrol in the northern regions of India where Nihon Nirman maintained a strong presence. JK intends to continue selling the output from those factories within the region.

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Plans Abandoned Meanwhile, North Indian-based JK Lakshmi Cement halted plans to expand abroad. Citing unfavorable economic conditions, the company decided to abandon efforts to purchase a plant in Egypt. Instead, the company will devote its energies to building a Greenfield facility in India. The company is targeting to hike its total production capacity to ten million tons by 2013/2014.

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Asset Purchased Ambuja Cements acquired a 60 percent stake in fly ash maker Dirk India for an estimated RS 16.51 crore. Dirk India, which also operates Dirk Pozzocrete, will both become subsidiaries of Ambuja Cements. This is the second building materials acquisition for Ambuja this year, which purchased an 85 percent stake in Nepalâ&#x20AC;&#x2122;s Dang Cement Industries for RS 19.13 crore earlier in June. BMWeek CemWeek BMWeek BMWeek

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CEMENT: m&A and finance

Finance Supply Glut Forecasted Crisil Research is of the opinion that a supply glut will pull down cement makers' profits in the coming months, resulting in a steep reduction in profit margins by 2012. The group is forecasting that the profitability of the cement sector will decline to its lowest in a decade by next financial year. A report by Crisil goes on to say that the supply glut will slacken cement manufacturers operating rates, restricting their ability to pass on a sharp rise in power and fuel costs to consumers.

Thus, while cement capacities will rise by 60 mpta over the next two years, demand will increase by much less, roughly 30 mpta.

Sale Postponed Discouraged by the slowdown and depleting valuations in the stock market, Century Plywood’s Star Cement has postponed the planned sale of 10 to 15 percent of its shares in the market. The company, which had engaged Morgan Stanley as advisers, were counseled

against moving forward with the sale. The deal, inclusive of debt, had been valued at between US $250 and $275 million.

Stronger Numbers Madras Cement posted higher profits in the first quarter of the current fiscal year on higher sales. Its net profit hit RS 98.30 crore in the first quarter ending June 30, 2011 against RS 72.60 crore in the same period last year. Net sales increased to RS 764.18 crore, and other operating income came to RS 4 crore.

Holcim units ACC and Ambuja Cement reported higher sales growth in July, helped by expanded capacities and a lower base. ACC posted over 28 percent yearon-year growth in cement dispatches at two million tons. Most analysts attributed the sharp rise in ACC's production and sales numbers to a lower base and the effect of expanded capacity. Ambuja Cements registered a 14 percent year-onyear jump in sales of cement.

Partner Sought Share prices fell in early September after Jaiprakash Associates announced it did not intend to sell up to 26 percent of its cement-making unit. Prior to its September 7th declaration, the stock had outperformed the market over the previous month. Shares rose again after reports surfaced that the company was looking for a strategic partner for its cement business, and that preliminary discussions were underway with South American conglomerates Cemex and Votorantim Group. BMWeek CemWeek CW Group BMWeek BMWeek

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focus Adhunik Cement’s Rating Affirmed Fitch maintained its long-term rating of ‘Fitch BB-(ind)’ and its ‘Stable’ outlook for Adhunik Cement. Fitch expects an increase in ACL's capacity utilization during the second half of FY 2012, in time to benefit from the post-monsoon demand. Fitch speculates that once the plant stabilizes and capacity utilization increases, ACL will become one of the largest local cement producers in Northeast India's fragmented market.

Industry Shares Expected to Rise Cement firms in India are expected to increase their share value after showing resiliency from the softening of the market.

CK Narayan, with Growth Avenues Asset Advisors, acknowledged that he had not seen a robust trend in the Indian cement industry, but that many like ACC, Ambuja, and Ultratech had withstood the downward pressure of the market fairly well.

Birla Group Looks to South America The Birla Group is reportedly trying to buy assets from Cemex and Votorantim.

According to recent accounts, the firm is in talks with Mexican-based Cemex and the Brazilian industrial giant Votorantim Group to buy some of their South America assets.

Such an acquisition could end up costing the Birla Group’s flagship UltraTech in excess of US $1 billion.

Cemex has plants in several Latin American countries including Argentina, Colombia, Costa Rica, Mexico, Nicaragua, Panama, and Puerto Rico. Votorantim Cimentos, the cement division of the Brazilian conglomerate, has more than 30 cement plants in Brazil where it is the market leader.

Votorantim also owns a 21 percent stake in Portuguese cement manufacturer Cimpor.

Officials from all three companies involved have declined to comment.

Jaypee Seeks Partnership It was reported that Jaiprakash was looking into the possibility of engaging a partner for its cement unit. According to three independent sources, the company was open to diluting up to 26 percent of its shares, and had engaged investment bankers to advise it on any strategic stake sale. Preliminary talks were said to have begun with Cemex and the Votorantim Group, both of which were looking to expand their presence in India.

While Jaiprakash Associates executive chairman Manoj Gaur denied the company was looking for a partner, representatives of Cemex and Votorantim remained noncommittal.

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cement projects and expansions 5

p

1 rojects and expansions

ompanies like Jammu and Kashmir Cements and My Home Industries continued to ramp up capacity, pledging to double current production levels. Madras Cement signaled its intent to invest more in its existing operations, pledging RS 150 crore for various expansion and power projects related to its three cements plants in Tamil Nadu. Hyderabad-based Anjani Portland announced plans to build Bijapurâ&#x20AC;&#x2122;s first cement facility, and Jaiprakash received the green light to expand its operations in Madhya Pradesh.

Ramping Up Capacity As demand surged, Jammu and Kashmir Cements has committed to doubling its daily production capacity to 1,200 tpd. The company is also planning to set up a 300 tpd clinker grinding-come-packing unit at the Industrial Growth Centre (IGC) at Samba in Jammu. The project is estimated to cost around RS 27 crore.

My Home Industries also intends to double its annual production capacity to ten million tons. The company is gearing up for the expected growth in both the infrastructure and real estate sectors over the next five to ten years, which is estimated to boost the demand for cement to between nine and ten percent annually.

Currently, My Home has four manufacturing facilities with three at Mellacheruvu in the Nalgonda district and one at Yalamanchili near Visakhapatnam.

The companyâ&#x20AC;&#x2122;s installed capacity stands at 4.9 million tons but reported production of around 5.7 million tons in the last fiscal year.

24 SEPTEMBER/OCTOBER 2011

india cement & construction materials AD OPTIONS

COMPANY/LOCATION

COMMENTS

Jammu and Kashmir Cement/ Jammu

Jammu and Kashmir Cement is planning to install a 300-tpd clinker grinding/ packaging unit at the Industrial Growth Centre (IGC) at Samba in Jammu. Company plans to increase daily production capacity from 600 tpd to 1,200 tpd. The project cost is estimated to be RS 27 crore.

Tamil Nadu Cement/ Rajapalayam, Virudhunagar District, Tamil Nadu

The company is planning to modernize its Alangulam plant in Rajapalayam at a cost of RS 165 crore. The government had previously approved RS 115 crore to modernize the Alangulam plant in March 2010.

Chettinad Cement/ Solapur District, Maharashtra

The company announced plans to build a grinding unit in Ahuj Village in Solapur.

The grinding unit will have a capacity of 2 mtpa.

Tamil Nadu Newsprint and Papers Ltd. (TNPL)/ Karur District, Tamil Nadu

The state-owned company announced it would build a RS 69 crore cement plant at its manufacturing unit in Karur. TNPL plans to use lime sludge and fly ash waste from its paper manufacturing process to produce cement. Finished by December 2011, the plant will have a 600-tpd capacity.

Jaiprakash Associates/ Madhya Pradesh

The manufacturer plans to build another plant within its existing facility in Madhya Pradesh. Existing capacity is 3.5 mtpa and the new plant will add another 1.5 mtpa. Jaiprakash is investing RS 450 crore in the project, which has received environmental clearance.

Anjali Portland/ Bijapur, Karnataka

The Hyderabad-based company is planning to build a 1-mtpa Greenfield plant in Bijapur. Work on the RS 300 crore project is expected to commence in the second half of 2011 with production starting in 2014.

State-owned Tamil Nadu Newsprint and Papers Ltd. (TNPL) announced plans to build a RS 69 crore 600-tpd cement plant at its manufacturing unit in the Karur district. The project is slated for completion

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in December 2011. Meanwhile, Chettinad Cement will construct a grinding unit in Maharashtra. The company reported the plant would have a 2 mtpa capacity.

CEMENT: projects and expansions

focus Madras Cements' Expansion Plans

Project Green Lighted Jaiprakash plans to ramp up capacity at Madhya Pradesh with a RS 450 crore project. The Jaypee Group proposes to boost its existing capacity to 3.5 mtpa by putting up one additional 1.5 mtpa unit within the same facility. Jaiprakash Associates plans to put up the new plant on ten hectares and invest RS 60 crore to put pollution control measures in place.

New Equipment Orders Tecpro Systems secured RS 79.3 crore worth of orders for coal handling and cement conveying systems from Ultratech.

Tecpro will supply and erect a 225 tph Coal Handling System and Cement Plant Conveying System at the Rawan Cement Works II in Chhattisgarh, and it will supply and erect a 175 tph similar system at the Rajashree Cement Works IV in Karnataka.

The Expert Appraisal Committee (EAC) recommended the proposal for environmental clearance provided the company developed a green belt in and around the plant and also earmarked at least five percent of the total cost of the project towards social and community projects.

Cachapuz Bilanciai Group/String Automation received a new order to implement a SLV Cement Bag Counting module for Jaiprakash Associates. The bag-counting module will be installed to improve and control the bags loading processes in 12 truck-loading lines for the Rewa Cement plant at Madhya Prades.

Madras Cements plans to invest around RS 150 crore in various expansion and power projects. The proposed expansion would be spread across the company's three cements plants in Tamil Nadu. The company is the flagship company of Ramco Group, and its Ramco Supergrade brand is the most popular cement brand in southern India. Madras operates five advanced production facilities throughout the southern region, and its current cement capacity of 10.49 mpta, makes it the fifth largest cement producer in the country.

First Cement Unit in Bijapur

Hyderabad-based Anjani Portland is planning to put up a 1-mpta Greenfield unit in Karnataka for RS 300 crore, making it the first cement unit in Bijapur. The company recently obtained a limestonemining license, and expected to begin building the facility in the second half of 2011. Once completed in 2014, the companyâ&#x20AC;&#x2122;s capacity would increase to over 2 mpta from its current 1.15 mpta.

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cement projects and expansions Loesche Secures Key Equipment Contracts Reliance Cementation plans to build a 5.08 million tons per year (mpty) cement-manufacturing unit, Satna I, as well as a clinker unit with a 3.6 mtpy in Madhya Pradesh. The cement units are the first to be ordered since the company was established in 2007. The companyâ&#x20AC;&#x2122;s long-range plan includes building the integrated unit at Maihar, a blending unit at Gondavli, a grinding unit at Kundangang in Madya Pradesh, and a captive power generation unit with a capacity of 75 MW. Total costs are estimated at Rs 25,000 million. The grinding unit at Butibori, Maharashtra will be the first unit to come online in the spring of 2012 and will have an initial capacity of 600,000 tons.

German engineering leader Loesche secured the order to supply four mills for the grinding plants. Holtec Consulting was retained as the technical consultant.

Loesche is also set to supply three mills for Jaiprakash Associates' brownfield integrated unit in Shahabad, Karnataka.

Jaiprakash, which has 12 plants in the western, central, and northern parts of India, is intent on expanding its operations into all parts of the country.

Projecting significant growth in its cement business, the company expects to increase its total installed capacity to 37.5 mtpy by FY 2012.

FLSmidth to Acquire Phillips Kiln Services FLSmidth signed a share purchase agreement to acquire 100 percent shareholding in Phillips Kiln Services Ltd., a US-based supplier of kiln services for the cement and minerals industries.

Phillips Kiln Services is a well-established international services provider that specializes in the maintenance, reconditioning and repair of kilns and related equipment. Capable of working

26 SEPTEMBER/OCTOBER 2011

Loesche grinding mill

on all makes and models of rotary kilns, dryers, and associated equipment, the company offers a mix of services and competencies to the cement and minerals industries.

service activities in both the cement and minerals industries and will contribute to further expand FLSmidth's successful Customer Services business," stated Group CEO Jørgen Huno Rasmussen.

Phillips Kiln Services offers a unique network of local specialists, who can service FLSmidth's global customers locally.

"We continuously seek to strengthen the services we provide to our customers. The acquisition of Phillips Kiln Services complements and supports our

Founded in 1969, the company is located in South Sioux City, Nebraska, USA and has around 190 employees including joint venture staff who all work on a global scale. BMWeek CemWeek CW Group Coal Week

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Pakistan, Bangladesh, Sri Lanka, Nepal & Bhutan: Pakistan’s cement producer Lucky Cement is celebrating. The country’s largest cement manufacturer was named Pakistan’s 2010 Brand of the Year for cement and received the Annual Environment Excellence Award. Additionally, the company was able to register a profit growth of 27 percent to RS 3.97 billion in FY 2011 despite a 12 percent drop in sales volume. The lower sales volume was offset by better selling prices in the local market and more efficient coal inventory management. invest in the grinding capacity of its cement

plants. Moreover, Holcim, which sells 1.32 million tons of cement in the country each year, is looking to construct a new cement production plant in Sri Lanka, which will help to meet growing market demand.

Local cement producers in Nepal have asked the government to cut duties on the raw materials used for cement. Without the move, they argued that local cement producers would have to increase prices, making them less competitive with Indian imports. Meanwhile, cement producers in Vietnam are looking for new export markets. Vietnamese cement producers are particularly interested in Bangladesh, Singapore and Myanmar.

In contrast, Pakistan’s Attock Cement reported a 33 percent drop in profits for FY 2011. Rising energy costs and diminishing brand premium were the major factors contributing to the decline. Nevertheless, net sales jumped by 11 percent on a yearly basis because of an eight percent improvement in the average selling price coupled with a three percent increase in total sales.

IMPORTS DELAYED IN SRI LANKA Sri Lanka, facing a potential cement shortage, decided to import from neighboring Pakistan, Indonesia and Malaysia. Unfortunately, the importation was not without incident. By early August, over five million kilos of imported cement were stuck in local Sri Lankan ports because of a lack of certificates. Importers

argued they filed the required certificates with the Sri Lanka Standards Institute (SLSI) six months prior; however, the SLSI declined to issue the certificates for much of the cement from Pakistan because it did not meet quality standards.

The Sri Lankan government intervened and released the cement from Pakistan without the necessary certificate. Later, independent foreign labs confirmed the quality standards of the imports and the ban placed on Pakistan’s imports by the Cooperatives and Internal Trade Minister because of the SLSI’s claims was lifted.

Despite the dust up, Sri Lanka’s cement industry continued to draw investment.

Swiss-based Holcim announced it would spend RS 3.6 billion to expand its presence in the country. The company plans to

LAFARGE GAINS IN BANGLADESH In Bangladesh, regulators approved Lafarge Surma’s rights offer to issue more than 58 million right shares at an offer price of TK 100, without taking any premium. The government also greenlighted Lafarge’s cross border project to transport limestone from its India unit to its Bangladesh plant. The limestone will be transported from Meghalaya to the Chhatak plant in Bangladesh via a 17-kilometer conveyor belt.

Dungsam Cement reported its construction of a cement unit in Bhutan is progressing well. The plant will have an installed capacity of 1.26 million tons per year. The capital outlay for the project is expected to be RS 717 crore and is projected to come online by January 2012. BMWeek CemWeek

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profile update

Madras Cement Solid Earnings Spur Expansion

adras Cements (MCL) is India’s fifth largest cement producer and is headquartered in Chennai in the southern state of Tamil Nadu. Established in 1961, MCL is the flagship company of the Ramco Group and has an installed production capacity of 10.49 million tons per annum (mtpa). It produces Portland and Portland Pozzolana cement at five advanced manufacturing units located throughout the southern part of India. Ramco Supergrade is the most popular cement brand in southern India.

percent YoY to 1.74 million metric tons (mmt) during 1Q 2011. Slower execution of infrastructure projects in southern India and the onset of the monsoon season contributed to the fall in sales. Thus, despite better price realization, the cement division registered only 11.1 percent growth over 1Q 2010. Forecasts project that the south Indian cement market will remain weak and demand will only pick up slowly going forward.

MCL also produces dry mortar products and ready-mix concrete, and operates one of the largest wind farms in the country.

During the fiscal year ending March 2011, the company produced 7.31 million tons of cement, 59,589 cubic meters of ready mix concrete, and 27,156 tons of dry mortar.

Sri Lanka is one of the main export markets for its cement products.

The company’s earnings for 1Q 2011 jumped by 35 percent year-on-year (YoY) to INR 983 million, beating analyst

Despite soaring input costs—raw material prices jumped 60 percent per ton—freight

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expectations. Overall sales during the quarter grew 9.6 percent to INR 7.64 billion while revenue from its windmill division was INR 321 million. The jump in profit was driven by better cement price realization—average price realization per ton surged by 26.1 percent—and a lower effective tax rate.

Regional Demand Remained Sluggish Demand in the key southern markets remained sluggish and volume fell by 11.9

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Integrated plants

LOCATION

Produced (lac tons)

R R Nagar, Tamil Nadu

1.5 MTPA

Jayanthipuram, Andra Pradesh

3.65 MTPA

Alathiyur, Tamil Nadu

3.05 MTPA

Ariyalur, Tamil Nadu

2.0 MTPA

Mathod, Karnataka

0.29 MTPA

costs were 8.5 percent per ton higher, while power and fuel costs climbed 6.3 percent per ton. Overall, the cost of production was 16.8 percent higher than 1Q 2010 on a per ton basis. The companyâ&#x20AC;&#x2122;s operating profit margin was 437 basis points (0.437%) higher in 1Q 2011. EBITDA per ton soared by an impressive 56.21 percent to INR 1,220 from INR 781 in 1Q 2010.

The wind power division witnessed lower sales during the period with revenue dropping 16.4 percent to INR 321 million.

Though the EBIT stood at a healthy 47 percent, EBIT over the same period last year was higher at 56.9 percent.

Expansion Plans Move Forward The company is due to add another two mtpa in September 2011, once its new plant in Ariyalur starts production. The plant, built at a cost of INR 6.3 billion, will push up total production capacity to 12.5 mtpa from the present 10.5 mtpa. MCL is also setting up a roll press facility to augment its cement grinding capacity from the current 210 tph to 260 tph at an estimated cost of INR 600 million at the Ariyalur plant.

Additionally, it is expanding the grinding

capacity at its Salem plant to 230 tph from 90 tph at a cost of INR 600 million.

The company is expanding its captive power plants to lower input costs and to overcome the issue of erratic power supply in Tamil Nadu. MCL has already commissioned a 40 MW plant at its Ariyalur plant and will add another 20 MW

by December 2011, for a total cost of INR 2 billion. Another 25 MW plant is being built at its RR Nagar plant at a cost of INR 1.1 billion. At the Salem unit, the company commissioned a smaller five MW heavy fuel oil-based generator in June 2011 at a

cost of INR 230 million. Expansion costs are to be funded by internal accruals and external borrowings.

Though the cement demand-supply scenario is not favorable in the southern part of India, prices have still increased because of the supply discipline maintained by manufacturers. Demand is expected to rise albeit more slowly due to the sluggish execution of infrastructure projects in the south and political instability in the neighboring state of Andhra Pradesh, a key market for Madras Cements. BMWeek BMWeek BMWeek

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Corporate Updates BEML Produced DME Without Orders According to a CAG report, Bharat Earth Movers (BEML) produced small end construction equipment and dealer model equipment without orders or considering market realities. The report states that the “Quality of DME supplied by BEML and after sales service was poor resulting in return of equipment by the customers. This created a negative image for its products.”

Records show that 22 inventories valuing RS 5.86 crore had been lying in stock for over two years. The company apparently sent equipment to dealers without having received valid orders and without considering the market, therefore locking up funds with overstocked inventory.

ACE Considering Acquisitions Action Construction Equipment announced that the Board of Directors discussed during its meeting on July 30 the possible acquisition of a company in China.

According to ACE, the targeted company manufactures similar product with better technology at a lower cost and would

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help ACE to enter a new product line in the same segment. The two companies are in advanced stages of discussion, but no formal agreements have been made.

Titan Shares Averaging US $22 Stock in Titan International has a 52week range of US $11.23 to US $31.42 with market capitalization at US $943.46 million and 42.12 million outstanding shares. Titan International, through its subsidiaries, is engaged in the manufacturing of wheels and tires. Titan produces a range of specialty products to meet the specifications of original equipment manufacturers (OEMs) and aftermarket customers in the agricultural, earthmoving/construction and consumer markets.

Titan’s earthmoving/construction market includes wheels and tires supplied to the mining industry, while the consumer market includes products for all-terrain vehicles (ATVs) and recreational/utility trailers.

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The company’s customers include AGCO, Caterpillar, CNH Global, Deere & Company and Kubota. In July 2011, Titan incorporated a wholly owned subsidiary Titan Mining Services. During the year ended December 31, 2010, Titan’s agricultural market sales represented 76 percent of net sales, the earthmoving/ construction market represented 22 percent and the consumer market represented two percent of net sales.

McNally Bharat Chooses Deepak Khaitan The Board of Directors of McNally Bharat Engineering has appointed Mr. Deepak Khaitan as Executive Chariman of the company effectively immediately. The decision was announced following a meeting of the Board held on August 12, 2011.

Universal Opens Retail Centers Universal Construction Machinery and Equipment is launching a construction equipment retail business. The first “Universal Exclusive Store” is located in

CEMENT: construction materials

Patna, Bihar and others are anticipated in the coming months in Kurukshetra, Surat, Nagpur, Jaipur and Hyderabad for a total of 35 store openings in the next five years.

The stores will be run as franchises and are targeting metro areas.

“Apart from sales, service and spares we are currently also conducting workshops and on-site training camps. We have also launched equipment and buy-back schemes in Bihar,” said Ranjit More, Managing Director at Universal. “We expect to garner a business of RS 15 to 18 crore this year from Bihar.”

SBG, Mhi join for India projects Oman’s Suhail Bahwan Group has entered into a US $20 million joint venture with Japan’s Mitsubishi Heavy Industries to compete for industrial and infrastructure projects in India. The companies will offer business development, design, engineering, procurement, construction management, after-sales services and other functions with a focus on chemical and environmental plants and the transportation sector.

Atlas Copco to Build New Factory Atlas Copco has decided to build a new compressor manufacturing facility near Pune, to meet an anticipated strong growth in demand over the coming years. The investment of about US $25 million will also serve to broaden the product offering to customers in India.

Atlas Copco has acquired a plot of land at Chakan, Pune, where building of the new factory has started. Construction will be completed in the second half of 2012.

The new facility will produce stationary industrial compressors and portable compressors, while Atlas Copco’s existing plant in Dapodi, Pune will focus on the production of oil-free compressors.

“The outlook for India’s economic development remains good and we now have an excellent opportunity to

According to a company statement, "Along with India's vigorous economic growth, infrastructure-related investment has been increasing robustly. In view of the rising trend in infrastructure investment and soaring demand from various related industries, MHI and SBG decided to establish MEIP." Jay Sambrani to Head Sandvik Asia Jay Sambrani will take over as the head of Sandvik Asia, the Indian subsidiary of the US $13 billion high-tech enterprise Sandvik Group. Sambrani comes to the position from his role as President of Sandvik Materials Technology. significantly increase production capacity in the country, with a modern facility and efficient logistics,” says Stephan Kuhn, Business Area President, Atlas Copco Compressor Technique.

Atlas Copco, which employs about 2300 people in India, currently manufactures compressed air equipment at one plant in Pune-Dapodi, while construction and mining equipment are manufactured in Nasik and Hyderabad. The group also has engineering centers located in Pune and in Bangalore, supporting the development of products in India and globally.

Atlas Copco foresees strong growth in compressors in all industries where it is present, including oil and gas, power generation, heavy industries (such as cement and steel), infrastructure, chemical and pharmaceutical industry, along

Sandvik Group is restructuring its global operations with the goal of strengthening market leadership. As such, Sambrani will also be part of a newly-formed extended group executive management, joined by the company’s operations in China.

This marks the first time that an Indian executive has had a role in Sandvik Group’s executive management. “We have a great opportunity to grow in India and leverage the competence and strength we have built over 50 years,” said Sambrani.

with the broad general manufacturing industrial sector.

Atlas Copco’s Compressor Technique business area provides industrial compressors, gas and process compressors and expanders, air and gas treatment equipment and air management systems.

It has a global service network and offers specialty rental services. Compressor Technique innovates for sustainable productivity in the manufacturing, oil and gas, and process industries. Principal product development and manufacturing units are located in Belgium, Germany, the United States, China and India.

In India, Atlas Copco started operations in 1960, and currently has 22 offices across India, the registered office being at Pune. In 2010, Atlas Copco had roughly 1,800 employees in India and revenues of RS 1700 crore.

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CONSTRUCTION materials construction materials

equipment updates 100,000th Machine for JCB JCB India has rolled out its 100,00th machine. The company has garnered 50 percent market share in the construction vehicle industry for its manufacturing of backhoe loaders.

“JCB India is helping India to meet its ambitious infrastructure development plan. Moreover, the backhoe loader will continue to be our flagship product in India,” said Mr. Vipin Sondhi, MD and CEO of JCB India. “However, there is a focus on the complete range of earthmoving and construction equipment that includes excavators, wheel loaders and compaction equipment. JCB’s over RS 750 crore investments in its Pune plants and Ballabhgarh position us very well to take advantage of the ever-growing demand for construction equipment in India.”

from 600 to 700 cranes per year. Universal is targeting ten percent of market share in the first year.

According to Ranjit More of Universal, “Useter will be setting up an exclusive plant near Beijing for its imported components.

Universal will be selling these cranes throughout India through its extensive sales and service network. Spares and services will be locally provided through regional offices. Universal also plans to give operational training along with the cranes.”

McNally Bharat Wins Order for RS 74.6 Crore McNally Bharat Engineering has received an order from Bhavnagar Energy for the complete design and engineering, manufacture, supply and delivery at site, construction, erection, trial operation, performance testing and commissioning on a total turnkey basis for a limestone milling and conveying system with a 2 x 250 MW lignite-based thermal power project at Village Padva in the Bhavnagar District. The project is set at a price of RS 74.60 crore. McNally Bharat announced the project during trading on September 15.

NEW CRANES FOR UNIVERSAL, USETER Pune-based Universal Construction Machinery and Equipment is launching a new tower crane product to be manufactured by China’s Useter Cranes.

The cranes have been designed specific to Indian site conditions and meet European safety measures and design codes. The market size for tower cranes in India ranges

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Tatas Threatens Quitting Telcon Tatas has threatened to halt all development of a 400-acre Telcon project at Rupanarayanpur in Kharagpur following a variety of upsets at the site. Recently, Citu and Aituc stopped construction work at the factory due to discontent with eligibility criteria for a training program for job seekers.

According to the Managing Director of Telcon, Ranveer Sinha, “We’ve shown maximum flexibility. There’s already been enough nuisance. If things continue like

McNally Bharat Wins Hindalco Order McNally Bharat Engineering has received an order from Hindalco Industries for the construction of a civil foundation and the structural steel work of a pipe rack for its 6 x 150 MW captive power plant at Bargawan, Singrauli, Madhya Pradish.

The order is priced at RS 27.99 crore.

Liebherr: Facelift for Flat-Top Crane Liebherr has given its hugely successful 200 EC-B 10 Litronic Flat-Top crane a facelift.

Its successor, the 202 EC-B 10 Litronic, has been optimized in particular with regard to markedly reduced assembly weights while still retaining all the performance capabilities of the original crane.

Lifting capacity at a maximum radius of 65.0 meters is 2,200 kg, with a maximum load capacity of ten tons. The modular concept and the compatibility of the tower systems between one another allow for the upgraded Flat-Top crane to develop the whole of its versatile performance.

In addition, the Liebherr 256 HC tower system allows a freestanding hook height of 63.1 meters to be achieved.

One new feature of the 202 EC-B is, for example, the single-piece counter-jib which is 1.9 tons lighter and can be preassembled on the ground in just a few operational steps. For transport, there is the possibility of using the two-piece counter-jib assembled in the piggy-back system. Easier assembly is also provided by the guying systems being brought into the assembly position with pin-point precision, or the lifting eyes for hoisting with a mobile crane.

New Cab for Atlas Copco Pit Vipers Atlas Copco Drilling Solutions has presented a new cab for the Pit Viper 270 series, configured as a Pit Viper 271 or Pit Viper 275, to go along with the latest Rig Control System (RCS) automation technology that comes as an optional feature on the blasthole drill rig.

CEMENT: construction materials

this, we’ll just pack up. Forget about the investments we made in Kharagpur.”

Atlas Copco Breaker Provides Aggregate on Hyderabad Ring Road An Atlas Copco MB 1700 hydraulic breaker is breaking rock as aggregates for the Hyderabad Outer Ring Road project by Ramky Infrastructure Ltd. Indian contractor Ramky Infrastructure is relying on an Atlas Copco MB 1700 hydraulic breaker to break granite at a quarry site adjacent to the new Hyderabad Outer Ring Road—the rock being used as aggregate for the 22 km stretch of the highway that Ramky is building.

The Outer Ring Road (ORR) project is a 158 km eight-lane highway encircling the city of Hyderabad, in Andhra Pradesh, for the Hyderabad Metropolitan Development Authority. It has been designed to relieve congestion in and around the city and to act as a hub for accessing the national highway network.

Ramky Infrastructure is part of the Ramky Group, which also formed Ramky Elsamex Hyderabad Ring Road Ltd in 2007 to build and operate parts of the ORR on a BuildOperate-Transfer basis.

With 17 years of experience as a civil engineering contractor, Ramky Infrastructure has a policy of reducing the cost of building materials through backward integration. The company has its own in-house capabilities to produce materials such as mixed concrete, aggregates and asphalt, which also allows it to control the quality of the materials it uses and ensure timely delivery.

For the construction of the 22 km stretch of the ORR Ramky is currently building between Shamshabad and Gachibowli, the contractor has deployed two 200-ton/hour stone crushers at the site.

Alongside part of the length of the highway are considerable deposits of granite, and the contractor is quarrying this to use as aggregate for the highway.

Mr. Haribabu, head of transportation for Ramky on this section of the ORR, says

that controlled blasting is being used to excavate the rock, with small amounts of explosives being used to avoid possible cracking of buildings in nearby residential areas.

"The explosives are breaking the rock into fragments between 1.5 and 1.8 m in size, the boulders then being trucked into the breaking area where the MB 1700 is working in a static position, mounted on an L&T Komatsu PC 200 20-ton hydraulic excavator," he said.

The MB 1700 is at the top end of Atlas Copco’s medium category breaker class, a 1700 kg hydraulic breaker that works at 160 to 180 bar and provides an impact frequency of up to 640 bpm, and operates on a flexible combined gas/oil principle.

The breaker is designed to work on excavators in the 19 to 32 ton range.

On Ramky's section of the ORR, the MB 1700 is being used to break the rock, which is classified as hard granite with substantial quartz content, into pieces of between 500 and 600 mm. These are then loaded into dump trucks and conveyed to the site, where they are fed directly into the crushers.

Ramky moved onto the site late in 2009 and is scheduled to complete the section of highway in November 2012.

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Altas Copco Pit Viper

The cab is larger than the previous model and offers a number of ergonomic and safety features to increase productivity.

Greater visibility is offered with larger windows, an excavator style chair that sits on an elevated platform and a more robust set of windshield wipers.

Ease of maintenance is a key component of the cab with integrated lights in the cabâ&#x20AC;&#x2122;s profile that prevent the need of climbing onto the cab to service. The air conditioning unit is located under the cab and the A/C compressor, evaporator

34 SEPTEMBER/OCTOBER 2011

and condenser are all hydraulically driven. The A/C has been designed to maximize airflow on the driller to provide a comfortable working environment in the summer and winter months.

The cab is better insulated to ensure that the cab stays much cooler than the previous model, and fitted floor mats, integrated into the cabin, assist with keeping the cab clean by keeping out unwanted dust particles.

With the improved pressurization, door sealing and insulation of the new cab for the PV-270 series, the outside sound of drilling

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is greatly attenuated by decreasing the decibel level to less than 70 dBA inside the cab. There are also a number of integrated radio slots installed in the cab to house the needed components required for a mine site, such as work orders and drill plans.

There are also three buddy seats that flip up to provide extra storage, and they can be replaced with other options, such as a refrigerator, locker and/or microwave. One of the buddy seats can also be upgraded to a trainee seat that comes with a backrest and seatbelt assembly.

project updates

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Road Projects in Five States Approved The public-private approval committee (PPAC) under Indiaâ&#x20AC;&#x2122;s Ministry of Finance approved road projects in five states, valued at RS 9,774 crore. These projects were planned under the various phases of the National Highway Development Program (NHDP) managed by the National Highways Authority of India (NHAI), an autonomous agency of the government.

This is one of the biggest construction projects in India. The largest component of the project will be the development of the six-lane Kishangarh-Udaipur-Ahmadabad highway that involves a total investment of RS 5,387 crore.

Aurang Section, Highway-6 on National in Chhattisgarh The government sanctioned ChhattisgarhOrissa Border- Aurang section on National Highway-6 in Chhattisgarh is a twohighway project worth RS 2,330 crore. The project involves the four laning of 150 km of the Chhattisgarh-Orissa Border-Aurang section of highway. The main objective of this project is to improve the infrastructure of the central state of Chhattisgarh, especially in the industrial areas.

SCR Brownfield and Greenfield projects The South Central Railway (SCR) plans to set up Brownfield and Greenfield projects under the Private Freight Terminals (PFT) policy announced by the Indian Railways.

The SCR has received proposals from the Hyderabad-based Continental Multimodel Logistics Park, a joint venture between the fertilizer manufacturing cooperative society Kribhcho and the NDR Group of Companies to setup a Brownfield PFT at Timmapur, a village in the southwestern region. The SCR is also in the process of building a Greenfield PFT at Nagulpally village, on the outskirts of the Hyderabad

Courtesy Metso

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CONSTRUCTION materials city in Andhra Pradesh. The cost for these projects is estimated to be around RS 8 crore.

Seven New Ports by 2017 The Ministry of Shipping of India, with a view to boosting the export market, plans to construct seven new ports by 2017. The price tag is estimated to be around RS 35,000 crore. The ports when completed would support India’s plan to more than triple its exports.

The project is part of the Prime Minister’s effort to spend as much as US $1 trillion to update the country’s infrastructure by 2017. About two-thirds of the funds for the project are being raised from the private sector. Companies such as APM Terminals, which is the container-terminal arm of AP Moeller-Maersk and Dubaibased DP World (DPW), are among the companies to invest in the construction of the ports. The DPW has interests in building ports at Cochin, Chennai, the Visakha Container Terminal, Mudra, and the existing Jawaharlal Nehru Port in Maharashtra.

Tamil Nadu Road Sector Project One of the latest road improvement projects is the Tamil Nadu Road Sector Project (TNRSP) contemplated by the Highways Department of Tamil Nadu in the southern state of Tamil Nadu.

The cost of this project, estimated at RS 5,000 crore, will require financial assistance from the World Bank and other agencies to complete. Major work to be conducted includes the strengthening and improvement of 1,936 km roads (RS 1,515 crore), the construction of 361 river bridges (RS 798 crore), the widening of 1,154 km of roads (RS 954 crore), and the setting up of eight grade separators (RS 475.45 crore).

NEW INVESTMENT REGIONS IN 6 STATES Seven investment regions worth RS 18,500 crore are part of the Delhi-Mumbai Industrial Corridor (DMIC) project, which seeks to create a solid economic base to attract foreign investments and attain sustainable development. The

36 SEPTEMBER/OCTOBER 2011

project involves setting up industrial townships resplendent with a world-class infrastructure in six Indian states – Delhi, Gujarat, Haryana, Maharashtra, Rajasthan, and Uttar Pradesh.

Infra-Logistics Park Agre Developers and Infrastructure Leasing & Financial Services (ILFS) have entered into a joint venture to develop an infralogistics park. Phase-I of this project is set to commence by implementing ten million

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square feet of internationally benchmarked infrastructure at an estimated cost of around RS 1,200 crore.

NEW HOUSES FOR RESIDENTIAL SEGMENT The global realty consultant DTZ is set to construct two lakh houses in the National Capital Region (NCR) in the next two to three years. The project hopes to address the under-supplied residential segment.

Five thousand housing units will be added every month once the project gets

Multi-crore Tunnel Begins in J&K Tunneling work on the 9 km long Chenani Nashri tunnel in the northern state of Jammu and Kashmir has begun. The tunnel awarded by the National Highway Authority of India (NHAI) is being constructed by the Leighton Welspun Contractors at an investment of roughly RS 3,720 crore. The project involves the creation of a main tunnel measuring 13.3 meters in diameter with a parallel five meter escape tunnel. The landmark tunnel project, which is expected to be completed in the next five years, will reduce the travelling time between Chenani and Nashri by almost an hour.

CEMENT: construction materials

UNDER CONSTRUCTION

COMPLETED The Badarpur Expressway The project envisioned by the NHAI was recently completed by Indian-based HCC on a Build Operate and Transfer (BOT) basis. It was part of the government approved widening of 6,644 km of National Highway from four to six lanes at a cost of RS 34,339 crore. The project involved constructing a six-lane highway from 16.1 km to 20.5 km spanning across six northern states. The main motive behind the construction of the elevated six-lane highway was to reduce congestion and improve the traffic flow on the National Highway. The project has reduced the commuting time from Delhi to Haryana to 10 minutes from 45 minutes.

underway. The cost of each housing unit lies in the range of RS 50 to 75 lakhs.

New Thermal Power Plants Three statesâ&#x20AC;&#x201D;Tamil Nadu, Uttar Pradesh and Rajasthanâ&#x20AC;&#x201D;will receive three new thermal power plants worth RS 40,200 crore. The thermal power plants would have a combined power generation capacity of 7,500 MW. Neyveli Lignite Corporation (NLC), the company constructing the plants, has received clearance from its

board to construct a thermal power plant worth RS 20,000 in the Nagapattinam area of Tamil Nadu. The company has signed an agreement with the state government to set up a RS 10,000 crore thermal power plant in the Ghatampur sub-division of the Kanpur district in the northern state of Uttar Pradesh. The project is going to be funded by the state government of Uttar Pradesh and NLC on a 51:49 percent ratio.

The company is also going to replace a 600 MW TPS -1 with a 2 x 500 MW thermal power plant at Neyveli, the mining and power generation township in the state of Tamil Nadu. The government of India has cleared the project and has floated tenders.

The project is scheduled to commence by 2015. Finally, the northwestern state of Rajasthan is going to get a 250 MW power plant at Bithnok at an estimated cost of RS 2,298.8 crore. BMWeek CemWeek CW Group Coal Week BMWeek BMWeek

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National Highway Development Programme: gets ok for expansion 38 SEPTEMBER/OCTOBER 2011

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insight The decline in growth in 2012 is attributed to the rise in production costs. Major construction companies have encountered a steep rise of up to 30 percent in the prices of raw materials (cement, bricks, steel rods, etc.) since 2009, according to a recent survey by the Associated Chambers of Commerce and Industry of India (Assocham). Inflationary pressures, which have lead to increases in the prices of food and housing, are also placing pressure on workers’ salaries.

India’s Economy to Decline

Construction Sector Faces Challenges

For the moment, India appears to be moving ahead full throttle, but that pace is expected to slow somewhat by 2012. The growth of the Indian economy is forecasted to decline to around eight percent next year, down from the 8.5 percent projected for 2011. Lower domestic demand and higher inflationary pressure are the two main reasons for the expected slowdown.

Investment activity is also diminishing.

According to data from the World Bank, investment growth slowed to 0.4 percent in the first quarter of 2011, down from 7.8 percent in the previous quarter (year-on year).

Construction struggles to support growth To maintain its strong growth, India is focusing on developing its infrastructure.

Demand is high for projects in energy, transportation, water and urban development and the number of construction projects are growing. Despite a lack of skilled workers, the construction sector has steadily grown. In 2003, the growth rate in the sector was 6.1 percent. It trended upward hitting 6.9 percent in 2007, and in 2010 sat at 8.1 percent. Forecasts suggest, however, that construction growth will slip slightly under eight percent in 2012.

Future Growth Projections Forecasts indicate that if India can maintain its strong growth rates, its GDP value will come close to that of the United States by 2030. It is projected to surpass Germany around 2020, and five years later Japan. The construction sector’s ability to overcome its current limitations and maintain a strong level of sustainable growth will likely determine India’s ability to achieve this projected trajectory of growth. BMWeek CemWeek CW Group Coal Week BMWeek BMWeek

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CONSTRUCTION SHARE IN THE ECONOMY 10.0

% in GDP

ndia is one of the developing nations that has been fueling the global economic engine. However, it is battling to maintain its own strong economic growth, as the country struggles with a myriad of issues including higher food prices, spikes in oil and energy prices, and a construction sector grappling to find a sufficient supply of skilled laborers to carry out infrastructure development. All are major obstacles with no quick fix in sight.

Another obstacle to future growth is insufficient planning and a lack of discipline in the execution of projects, which is leading to delivery delays and significant cost overruns. For example, in the United Kingdom, roughly 25 percent of project contracts require time extensions to complete, while in India, 70 percent of contracts are exceeding the deadline for completion. Furthermore, around 40 percent of construction contracts in India are affected by cost overruns of between 25 and 50 percent.

7.5

5.0

2003

2007

2010

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

2012

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construction materials projects underway throughout the country as India continues to move toward center stage globally.

Building to Scale

Infrastructure Projects Upsize to Keep Pace with Domestic Demand he United States still claims the title of global superpower in political circles, but in economic arenas, the focus is on India and China. The Indian Cement Manufacturers Association predicts overall economic expansion at a rate of eight to ten percent for the next several years. Even with the 2011 economic belt-tightening going on globally, some US $500 billion is anticipated to be spent on large-scale infrastructure projects in India in the next five years, according to Green World Investor.

Much of the current cement demand growth is being driven by marquee projects sponsored or co-sponsored by national and regional government bodies. These projects are massive works of engineering art, supported by tens and hundreds of millions of rupees of cement.

40 SEPTEMBER/OCTOBER 2011

They address key social and economic issues, such as housing, resource delivery, efficient transportation, and capacity for competing in the global marketplace for manufacturing and services. The biggest projects are in the central and northern states, but there are significant development

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Roadwork Initiatives Expanding and improving the country's ground transportation systems is a nation-wide priority. With the potential to improve quality of life and business profitability across multiple sectors, road construction projects are a visible, tangible sign of India's forward movement.

Regionally, projects span from simple repair works to a complete re-engineering of traffic flow patterns, with best practices for traffic control and congestion relief spreading rapidly. This rapid adoption of new methodologies is driven by the continuing double-digit traffic expansion rates, currently ranging between 12 and 15 percent annually for passenger traffic, and 15 to 18 percent annually for commercial traffic, according to India's Ministry of Finance.

New large-scale road projects being announced are focused on widening, reconstructing, or upgrading existing thoroughfares. One company heavily involved in this is Niraj Cement Structurals. The firm announced two major road improvement and new construction contracts in June 2011. They included a contract for the widening and reconstruction of the MihonaL ahar-Daboh-Bhander-Chirgaon road and a contract in Punjab for a 200' road construction initiative, creating new roadways between the RUB and NH64 under the sponsorship of the Greater Mohali Area Development Authority.

Both projects align with the National Highway Development Plan, fitting into its Phase III and Phase IV timelines.

Industrial Works Along with essential transportation infrastructure upgrades, India's government also faces the need to improve capacity in its industrial sector. From the electrical grid to import/export capacity, the country's demands are continually outpacing available systems. As a result, billions of rupees are being allocated to

industrial projects to expand and enhance capacity throughout the country.

One highly visible example of this in the electrical sector is the Rajasthan Atomic Power Project. India has plans to expand its nuclear reactor sites dramatically over the course of the next five decades, with the Rajasthan project a leader in the north.

The latest project development was the July groundbreaking for Units 7 and 8, which was celebrated with a cement pouring ceremony. Work on the two reactors will continue until June and December 2016, respectively, when the INR 123.2 billion project will come online with a 1,400 MW capacity.

Additionally, on September 1, the government approved the Special Economic Zone proposal of the Jawaharla Nehru Port Trust (JNPT). Already the country's largest container port, the JNPT proposal approval means that 400 hectares of land will be developed to provide a multiproduct Special Economic Zone with its own housing structures, commercial complexes, and logistic units. While no end date has been set, work will begin in March 2012, with more than 889 million INR anticipated as investment capital. The expansion, based on successful models from other international ports, could reshape port engineering throughout the country.

Commercial Projects In the commercial space, many of the new projects are tied in with the government's goal of reducing housing costs and providing more affordable housing throughout India.

Despite regional disputes over environmental issues and the ratio of living spaces to parking spaces, the “supertalls” have definitely caught on in the market. From a governmental perspective, where these structures can be supported, they allow for convenient re-housing of existing area residents while adding badly needed residential space in heavily populated zones and providing quality employment over the multi-year construction period.

Supertall projects receiving clearance in the last few months blend new construction with replacements of old structures. Mumbai is one of the current centers for supertall construction, and several exciting projects are emerging from the planning stages. Two major projects earning approval in August are the Tulsiwadi Urban Renewal Scheme, a 118-floor supertall, which will be Phase IV of the project, while the legendary Dalal Estates finalized plans for redevelopment of a 72-story project called Nathani Heights (upped from original proposals for just 64 floors). Both projects couple residential construction with improvement to surrounding infrastructure systems for the city. The more complex will be the Tulsiwadi project, as one component of the plan’s design calls for a realignment of the water and sewer lines currently serving an estimated one-fourth of Mumbai's residents.

Looking Ahead Considering these few marquee projects, it should be obvious that these major works are only the tip of the iceberg when it comes to development plans for India over the next several decades. The pace of domestic growth demands corresponding infrastructure expansions, as does the continuing global power shift from West to East for manufacturing centers. Even as the global economy seems to limp along,

the momentum in India suggests a more accelerated approach to continued growth.

The government is well aware of the country's voracious appetite for development, and local agencies are even more attuned than national bodies to the potential projects in their regions. This creates a market drive that is as a whole, moving strongly toward growth and expansion, with highly individualized sectors of development that may be thriving or holding steady in turn. Making the most of the coming years will therefore require being well attuned to the pulse of each region to make the most optimal matches between capacity and demand.

India may occasionally slow down, possibly to catch its breath, but there is no denying that the overall pace is still brisk in comparison to much of the world.

While the rest of the developed world obsesses over cutting back and scaling down, in India the struggle is to build to a scale that will keep up with the country’s growth. Each marquee project mentioned here serves to narrow the gap, but they do not fill the void entirely between what is needed and what is in place. Backed by this drive to grow infrastructure and development to match the potential of the nation, savvy producers and suppliers will find an endless stream of opportunities. BMWeek

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Cem Cem Cem

analyst recommendation Ambuja Cement Ambuja Cement has a Hold recommendation from ICICI with a target price at RS 139 against a current market price (CMP) of RS 133. The company managed an increase in cement realizations, which motivated the recommendation.

While sales volumes went down, an increase in cement prices gave way to higher realizations, leading to a quarterover-quarter (QOQ) improvement of two percent in EBITDA/ton.

Expecting a recovery of cement demand, Emkay has issued a Reduce rating for Ambuja Cement, keeping the price target as RS 140 against RS 146 CMP. The company’s balance sheet looks strong with high return ratios, and Ambuja is expected to do well as rural housing projects pick up.

India Cement Riding on the 38 percent hike in year-overyear (YOY) realizations, India Cement got the green signal from ICICI despite a 13 percent decline in sales. ICICI has given a Buy recommendation, setting the target price at RS 84 against a CMP of RS 68.

Though FY 2011 volumes were low due to poor demand in the south, India Cement is expected to see a reversal in its numbers for FY 2012 with the commissioning of the company’s new Rajasthan plant coupled with an improvement in the market.

Furthermore, margins for the company look good, especially with the pricing discipline in the south, the implementation of cost efficiency measures such as the acquisition of a coal mine in Indonesia, and the commissioning of captive power plants that will be functional in the fourth quarter of FY 2012. As such, IIFL has placed a Buy recommendation with a price target of RS 102 against a CMP of RS 65. jk cement ICICI has advised a Hold for JK Cement with a target price of RS 123 against a CMP of RS 113 owing to higher sales figures reflecting YOY growth despite a QOQ dip.

42 SEPTEMBER/OCTOBER 2011

Furthermore, higher sales prices boosted grey cement revenues by eight percent YOY while white cement realizations went up six percent.

Madras Cement Higher than expected cement realizations resulted in the continuation of an Accumulate rating by Emkay for Madras Cement. The company’s first quarter figures exceeded expectations by reaching RS 7.6 billion, noticeably higher than the projected RS 7.2 billion. Cement revenues were also up 11 percent to RS 7.32 billion.

The quarterly figures further indicated that the company was able to reign in freight costs and managed to cushion itself from the 30 percent increase in domestic coal prices given its reliance on domestic coal is minimal. The company’s target price has been set as RS 100 against a CMP of RS 84.

Sharekhan has recommended a Hold for Madras Cement, as the company has posted impressive returns that have surpassed expectations. Furthermore, the company is also in the midst of a capacity expansion project at its Ariyalur plant, which will increase production by two million tons per annum. The low demand in the south continues to be a problem, but pricing discipline in the region is expected to hold the company in good stead. The operational efficiency of the company will also work in favor of investors. The price target has been set as RS 71 against CMP of RS 67.

Shree Cement Emkay has endorsed Shree Cement with an Accumulate recommendation. Shree Cement is currently in the process of installing a 300-megawatt captive power plant in Rajasthan and has already begun trial runs on its first unit. Furthermore, the company managed to sign sales agreements for 100 million units of power for the second half of FY 2012 that will drive revenues higher by over a billion rupees. With petcoke prices set to stabilize and power costs set to reduce with the commissioning of the CPP project, Emkay maintained its earlier Accumulate recommendation with a target price of RS 2050 against a CMP of RS 1641.

ICICI maintained its earlier Buy rating for Shree Cement betting on an increase in YOY sales and revenue figures, despite a slowdown in demand reflected in the most recent quarter. The price target is set as RS 2068 against a CMP of RS 1765.

UltraTech Cement Despite a lower sales volume in the southern and central region, UltraTech Cement is expected to do well in the eastern, western and northern regions.

Better sales are expected especially in the northern region, which is set to see higher utilizations and where the company maintains a strong presence. Based on this, IIFL has recommended a Buy with a price target set at RS 1192 against a CMP of RS 1070.

ratings changes Update date

Cement company

Analyst firm

Recommendation

TARGET PRICE

CURRENT MARKET PRICE

14-Sep-11

Ambuja Cement

Emkay

Reduce

140

146

30-Aug-11

Shree Cement

Emkay

Accumulate

2050

1641 1070

25-Aug-11

UltraTech Cement

IIFL

Buy

1192

25-Aug-11

India Cement

IIFL

Buy

102

65

22-Aug-11

India Cement

ICICI

Buy

84

68

11-Aug-11

Madras Cement

ShareKhan

Hold

71

67

9-Aug-11

Madras Cement

Emkay

Accumulate

100

84 1765

3-Aug-11

Shree Cement

ICICI

Buy

2068

2-Aug-11

JK Cement

ICICI

Hold

123

113

29-Jul-11

Ambuja Cement

ICICI

Hold

139

133

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stock performance

Stock performance of leading cement companies As a regular service to our readers, we will provide here a listing of the latest in stock performance, keeping you up to date with the latest in stock trends. Additional company stock performance information is available on our website: www.cemweek.com/india.

Performance in the past 90 days Company

Start Date

Start Price

End Date

End Price

Difference

% Change

BHEEMA CEM

6-Jul-11

24.9

3-Oct-11

17.25

-7.65

-30.72

PANYAM CEMEN

6-Jul-11

64.5

3-Oct-11

49.35

-15.15

-23.49

RAIN COMMODI

6-Jul-11

33

3-Oct-11

25.95

-7.05

-21.36

OCL INDIA L

6-Jul-11

102.35

3-Oct-11

90.3

-12.05

-11.77

HEIDEL CEM

6-Jul-11

38.8

3-Oct-11

34.45

-4.35

-11.21

PRISM CEMENT

6-Jul-11

45.65

3-Oct-11

42

-3.65

-8

JK LAKSHMI

6-Jul-11

43.5

3-Oct-11

40.65

-2.85

-6.55

MANGALAM CEM

6-Jul-11

108.1

3-Oct-11

102.05

-6.05

-5.6

KAKATIYA CEM

6-Jul-11

70.85

3-Oct-11

66.9

-3.95

-5.58

KALYANPUR CE

10-May-11

25.6

28-Sep-11

24.35

-1.25

-4.88

INDIA CEMENT

6-Jul-11

73.05

3-Oct-11

70.1

-2.95

-4.04

BIRLA CORPOR

6-Jul-11

334.1

3-Oct-11

324.6

-9.5

-2.84

DECAN CEMENT

6-Jul-11

148.4

3-Oct-11

144.4

-4

-2.7

CHETTINAD CEM

6-Jul-11

456.55

3-Oct-11

449.05

-7.5

-1.64

SAGAR CEM.

6-Jul-11

136.4

3-Oct-11

135

-1.4

-1.03

KCP LTD

6-Jul-11

25

3-Oct-11

25.15

0.15

0.6

N C L IND

6-Jul-11

36

3-Oct-11

36.7

0.7

1.94

JK CEMENT

6-Jul-11

107.15

3-Oct-11

112

4.85

4.53

SHREE CEMENT

6-Jul-11

1711.45

3-Oct-11

1853.2

141.75

8.28

KEERTHI

28-Jun-11

35.15

30-Sep-11

39

3.85

10.95

ACC LTD

6-Jul-11

964.05

3-Oct-11

1100.25

136.2

14.13

ULTRATECH CM

6-Jul-11

957

3-Oct-11

1102.75

145.75

15.23

AMBUJA CEME

6-Jul-11

126.85

3-Oct-11

148.85

22

17.34

MADRAS CEM

6-Jul-11

83.35

3-Oct-11

100

16.65

19.98

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

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We know the cement industry well. Let us guide you. For more information please contact us at inquiries@cwgrp.com or on +1-702-430-17 48 848 N. Rainbow Blvd., Box #1658, Las Vegas NV, 89107, USA

Most popular on CemWeek.com The below headlines are the most requested stories on CemWeek during the past two months. The India column shows the 20 most popular stories from CemWeek featuring India-related coverage, and the Global column shows the global events that gathered the most attention worldwide during the period. Visit CemWeek.com to access the full stories.

India

global

1

India cement prices increase

1

Dangote to construct plants in Africa with KHD, AVIC

2

Cement prices rise in India

2

Barclays takes grim look at Cemex

3

Ultratech looking for fresh acquisitions

3

Mexico probes alleged price fixing in cement industry

4

India: ACC commissions new units

4

Sinoma completes clinker unit for Saudi's Yanbu

5

India investigating fraud allegations against cement firms

5

Holcim appoints new CEO

6

Indian cement firms face probe

6

Cement prices in Russia climb in August

7

Sources: Holcim puts India ACC, Ambuja merger on backburner

7

Ethiopia to boost cement imports

8

Report: India's Birla Group bidding for Cemex, Voto assets

8

Cement prices dip in US, Mexico

9

India cement prices to rise post monsoon

9

Kenya: Mombasa Cement plant still paralyzed

10

Cement demand in India growing below target

10

CRH closing in on deal for Russian cement firm

11

Report: India to initiate action against cement cartel

11

Dangote Cement to put up new plant in Edo State

12

Analyst worried about India cement sector

12

Egypt's cement industry faces difficulties

13

New cement bag launched in India

13

Holcim to invest $906 mm in Brazil

14

India cement shares rise after cartel probe ends

14

New cement plant for Singapore's Jurong Port

15

India's Kishan to spend Rs 300 crore on new cement unit

15

Thailand's Siam Cement looking at overseas expansion

16

India clears Ultratech proposal to hike capacity

16

China United Cement acquires Daewoo Cement

17

Cement prices rise in India

17

Report: Boral seeking to sell off units in Indonesia, Thailand

18

Jaypee may strike partnership for cement unit

18

Gloria Group makes strategic investment in Soboce

19

India cement dealers report sluggish performance

19

KHD CFO resigns, CEO shoulders role

20

India: Land concessions for 8 cement units cleared

20

Heidelberg seeks cooperation with China United Cement

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

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> Progress driver No.11 Horomill® A major breakthrough

*

* From zero water consumption to a maximum of Flexibility &

Stability combined with the sum of Lowest Energy Consumption and Maximum Reliability & Lifetime, the Horomill® provides the best Cement Quality for the Lowest Production Cost A major breakthrough for a sustainable cement industry, the Horomill® combines many advantages to get the highest grinding plant performances: • Lowest energy consumption and zero water consumption • Best product quality • Automatic operation for highest flexibility and stability • Reliability and extensive lifetime

With over 50 industrial references for raw and cement grinding applications and more than 1.400.000 operating hours, Horomill® has been installed worldwide in the plants of major cement manufacturers such as Buzzi-Unicem, Cemex, Holcim, Lafarge, Vicat, etc.

For example, in fulfilling the contract for the complete Holcim Apasco 3,500 tpd Hermosillo cement plant in Mexico, Fives FCB supplied a cement grinding plant with 3 Horomill®.

www.fivesgroup.com

Driving progress