India Cement & Construction Materials (vol 1 / issue 9)

india CemWeek A CemWeek Publication

Cement VOLume 1

issue 9

november/december 2012

& construction Materials

Cement Growth for 3Q2012

PROMAC

an industry game changer

Shree Cement

IIP Rises

Raising the Bar

The Push for Better Housing Stock Will It Fuel Cement Demand?

Will It Fuel Cement Demand?

News

|

Analysis

|

Market Coverage

|

Interviews

|

People

india CemWeek

Cement & construction Materials

www.cemweek.com/india

FEATURES 4 8

DEPARTMENTS

PROMAC: AN INDUSTRY GAME CHANGER

1

An interview with Jayaram Reddy

16

PROFILEs

40

ANALYST RECOMMENDATIONS

PUSH FOR BETTER HOUSING STOCK Will it help fuel cement demand?

FOCUS 12

14

20 23

RAISING THE BAR What drives Shree Cement’s success in completing projects on schedule and in budget?

CEMENT BUSINESS & INVESTMENT (CBI) INDIA 2012 GMI hosts its first successful Indian cement conference

26

VOLUME AND PRICING

28

A RISE IN IIP

INFRASTRUCTURE & PROJECTS

34

EQUIPMENT UPDATES

2,500 km of national highways projects await funding New Volvo dump truck available for India’s mining industry

36

COAL UPDATES

37

BULK UPDATES

Coal prices expected to top the USD100/ ton threshold

Highlights of the latest in broker recommendations

MARKET AND COMPETITION

Small improvements in efficiency can yield large savings in energy

32

Sagar Cement: A Resilient Regional Player

24

27

construction & building materials

Inspiration Found

cement

THE GREENING OF ELECTRIC MOTORS

Aids in calming concerns over economic growth

EDITOR’S LETTER

Rural demand boosts cement production Demand expected to rise and lead to sustained growth

PEOPLE Indian cement pioneer passes away

PROJECTS AND EXPANSIONS OCL India is looking for funding for a new plant in West Bengal

30

M&A and FINANCE

38

REGIONAL UPDATE

Aditya Birla Group reportedly back in talks with Jaypee Pakistani cement manufacturers encounter more obstacles to exporting

CemWeek rOBERT MADEIRA CemWeek diana heeb bivona CemWeek Anthony Fitzgerald BMWeek judy foust BMWeek BMWeek

cemweek publisher head of cw group reasearch

iccm manager

advertising

To subscribe or advertise, please contact us at T (India): +91-40-6598-7803 T: +1-702-430-1748 F: +1-928-832-4762 E: sales@cwgrp.com

CW Group CW Group

©2012 CemWeek LLC. All rights reserved.

The contents of this publication may not be reproduced by any means, in whole or in part, without the prior written consent of the publisher.

SUBMISSIONS To submit a contribution to the India Cement & Construction Materials magazine send us an email at inquiries@cwgrp.com

CW Group

Any submissions or contributions from readers shall be subject to and governed by CemWeek's Terms and Conditions, which are available upon request.

The CemWeek Magazine is published by the CW Group (CemWeek LLC) 848 N. Rainbow Blvd., Box #1658 Las Vegas, NV 89107, USA T: +1-702-430-1748 F: +1-928-832-4762 www.cwgrp.com www.cemweek.com The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. The opinions and views contained in this publication are not necessarily those of the publishers. Readers are advised to seek specialist advice before acting on information contained in this publication which is provided for general use and may not be appropriate for the reader's particular circumstances.

The ownership of trademarks is acknowledged.

No part of this publication or any part of its contents thereof may be reproduced, stored in a retrieval system or transmitted in any form without the permission of the publishers in writing. An exemption is hereby granted for extracts used for the purpose of fair review.

Hong Kong urges Iran to register 19 dry bulk carriers elsewhere

To subscribe please visit www.cemweek.com/india

CONFERENCE

cement business & industry sÃo paulo, brazil ♦ February 27-28, 2013 The Cement Business & Industry (CBI) Brazil and Latam 2013 Conference, which will be hosted in São Paulo on February 27-28, 2013, will create a new platform connecting the cement industry, analysts, technologists and other stakeholders from Brazil, Latin America and all parts of the world.

cbi

With the arrival of Brazil and Latin America as one of the key cement markets of the world, and one of the most dynamic, it requires a dedicated and focused approach – which is what CBI Brazil & Latam 2013 is here to provide you with. Not only will we be looking at the industry’s issues from a global perspective, but it will be relevant and tied into specific regional issues facing the industry today.

The program will take a dual-track business and technical approach to issues around: ■ Brazil and Latin American cement – an unstoppable force?

■ Cement and fuel trading – still going strong or a waning force?

■ Innovation - technical, business and the human capital equation ■ Alternative fuels and the environment - new developments ■ The efficient enterprise -- designing for performance ■ The new cement plant -- tools of the trade ■ Strategy and finance -- opportunities, consolidation and what is next?

GMI

GLOBAL

For attendance, speaking opportunities or general questions about the conference please contact the CBI Client Service team at sales@gmiforum.com or via phone at +1-203-516-7424.

Register for attendance directly on http://www.gmiforum.com/welcome-to-cbi-brazil-a-latam-2013, or contact sales@gmiforum.com. You may also call us in the USA at +1-203-516-7424

MWeek MWeek

Backed by:

CemWeek CemWeek

CW Group CW Group

Coal Week Coal Week

Organized by GMI GLoBAL LLC and supported by CeMWeek www.gmiforum.com

letter from the editor

Inspiration Found n October, members of the CW Group, including myself, headed to India for the Cement Business & Investment (CBI) Conference. The well-attended event provided us with the opportunity not only to put faces to names with people we had only corresponded with either on the phone or by email, but also to meet other industry professionals for the first time.

For us here at ICCM, the opportunity to hear first-hand from the industry movers and shakers regarding what the most relevant issues were, allows us to ensure we remain focused on what is relevant to our readers. We also want to thank those attendees who patiently spent time with us answering our myriad of questions. We are looking forward to returning next year to connect once again personally with the industry we serve. Until then, we remind

our readers that we welcome your ideas, contributions and comments. We can be reached at editor@cemweek.com.

In our final issue of 2012, we cover a wide range of topics — many of the stories inspired by the attendees we met at the CBI conference. Promac Engineering Industries has emerged as one of the leading designers and manufacturers of cement plants on a turnkey basis in and out of India. ICCM caught up with the company’s Director of Operations to discuss its recent successes and plans for the future in our feature, “Promac: An Industry Game Changer.”

Cement’s success in new construction with regard to staying on schedule and in budget is examined in “Raising the Bar,” and guest contributor Sanwar M. Mishra, ExUNIDO consultant, examines the potential benefits of “The Greening of Electric Motors.”

As a New Year approaches, the staff at ICCM sends our readers kind thoughts and sincere wishes for a blessed New Year.

Other stories in this issue include a look at the country’s housing stock in the feature, “Can the Push for Better Housing Stock Help Drive Cement Demand?” Shree

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

Diana Heeb Bivona iccm manager

CW Group CemWeek BMWeek NOVEMBER / DECEMBER 2012Coal 1Week CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

MWeek MWeek

CONfERENCE:

cement business & industry

AFricA

JOHANNESBURG ♦ MARCH 27-28, 2013

The Cement Business & Industry (CBI) Africa Conference, which will be hosted in Joahannesburg, South Africa on March 27 and 28, 2013, will create a new platform connecting the cement industry, analysts, technologists and other stakeholders from Africa and all parts of the world.

Africa has been experiencing strong growth in the majority of its cement markets for the past 15 years. This has led to quite a dramatic evolution of the industry on the continent resulting in new entrants coming into the market as well as increasing interest from multinationals and great development opportunities for existing players.

The program will take a dual-track business and technical approach to issues around: ■ Opportunities and challenges in North and Sub-Saharan Africa ■ Investments, finance and expansion programs ■ Environmental performance and alternative fuels ■ Cement trading, logistics and handling ■ Cement fuels: coal, petcoke and energy improvements

cbi GMI

GLOBAL

For attendance, speaking opportunities or general questions about the conference please contact the CBI Client Service team at sales@gmiforum.com or via phone at +1-203-516-7424.

■ Manufacturing optimization, new technologies & automation

Register for attendance directly on www.gmiforum.com/cbi-africa-2013-registration, or contact sales@gmiforum.com. You may also call us in the USA at +1-203-516-7424 Backed by:

CemWeek CemWeek

CW Group CW Group

Coal Week Coal Week

Organized by GMI GlobAl llC and supported by CeMWeek www.gmiforum.com

numbers IN BRIEF

Cement production: Indian cement closes a strong third quarter

Cement volumes The 18.2 million tons of cement produced in September 2012 brought the highest YOY growth rate of the year (14.3 percent), adding up to a total cement production for January-September 2012 of 176.3 million tons. On an YTD level, Indian cement output hovered between an 8 percent and 11.2 percent growth rate, registering an 8.6 percent YTD growth rate for the first three calendar quarters of 2012.

Considering the declining tendency of growth rates registered in cement production and the elevated levels of the fourth quarter of 2011, which are not estimated to be exceeded by double digits in 2012, the seven-percent expectation for cement consumption growth in 2012 is maintained. In these conditions, the total Indian cement consumption is estimated to exceed 234 million tons by the end of the calendar year.

PAN-INDIA CEMENT VOLUME (MM TONS)

10,000,000

Jan

Feb

West

East

Central

North

275

Jan

Feb

Mar

Apr

May

2012

Mar

Apr

May

Jun

Jul

Aug

Sept

Source: CW Group analysis

350

200

2011

17,500,000

CEMENT PRICES (RS PER BAG) South

2010

2009

25,000,000

Jun

Jul

Aug

Sept

Oct

Cement prices From the perspective of cement prices, the Indian cement market faced a steep hike in the first four months of the year in all regions, with some stabilization registered in the months coming on the back of the monsoon season. Additional pressure is exerted on the market by underutilized cement capacity and costlier production and transportation costs.

The eastern region took the lead in February 2012 as the region with the highest cement prices, which reached 321 RS/ bag in the beginning of October 2012.

The prices are expected to pick up once again within the region once the post Durga pooja demand takes off, a trend that is expected to be registered in all regions.

Source: CW Group analysis

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

CW Group CemWeek BMWeek NOVEMBER / DECEMBER 2012Coal3Week CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

leaders

comment

PROMAC ENGINEERING INDUSTRIES LTD AN INDUSTRY GAME CHANGER

4

NOVEMBER / DECEMBER 2012

CW Group Coal Week CemWeek BMWeek INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

Jayaram S. Reddy has a vision for the future and that is to introduce cleaner and green technologies to produce cement and to build a world-class sustainable company focused on customer satisfaction and employee pride. As Director of Operations for Promac Engineering Industries, he is well on his way to realizing his goal. Promac has emerged as one of the leading designers and manufacturers of cement plants on a turnkey basis in and out of India. As a result of building the “first of its kind” Dual-Process cement plant in the UAE, it has solidified its reputation as an industry game changer.

ICCM: Can you share with us a little bit about Promac’s history and any areas in which you specialize?

REDDY: Promac Engineering Industries Limited was established 40 years ago in the year 1972 and is one of the leading Indian engineering companies executing Grey/ White/Dual Process cement plants up to 2.0 million tons per annum (mtpy) capacity on a turnkey and EPC basis in India, Africa, the Middle East and South America.

Promac also offers a single-point contact for balance of plant equipments for thermal power plants as well as port handling equipments and bulk material-handling solutions. We are also the first Indian company to supply a gold ore-processing plant from rock crushing to ore refining. This is one of the first such projects to come up in recent times in India.

Promac has a technical collaboration with M/s Taiheiyo Engineering Corporation (TEC), Japan, for cement plant technology and under their license, manufacture ‘ASANO’ Brand Vertical Roller Mills for raw material and coal grinding, worldrenowned RSP & DDF calciners along with O-Sepa separators for both raw material and cement applications. We offer specialized technology such as chlorine bypass, alkali bypass and TCS System for high sulphur fuels based on TEC technology.

ICCM: Promac has a long history of technical collaboration with other companies such as Taiheiyo Engineering and the National Council for Cement and Building Materials. How have those collaborations supported Promac’s mission and benefited its clients?

REDDY: Promac’s collaboration with the experts in the field has brought down the cost of ownership of these super efficient and highly specialized equipments and processes apart from easy access. We have our own independent quality control department that ensures the original R&D by these technical experts reaches the clients in the form intended.

ICCM: Promac continues to emerge as a leader in the engineering sector. What do you attribute to its ongoing growth and success?

REDDY: Several factors contribute to our ongoing growth and success, such as the continuous improvement in the quality of the equipment supplied. Another factor is timely execution of projects on an EPC basis, as well as large manufacturing set up covering major product range under one roof. Promac also has a dedicated team of experienced people at every level of the organization.

When the industry was moving away from EPC and turnkey basis, Promac took up the challenge and carved out a niche for itself in both the Indian as well as the international arena. We thought about business beyond conventional ways.

When the industry had discounted capital-intensive projects in the African continent, Promac focused on the same and is now considered the undisputed leader in the African space. The recent award of a 125 MW thermal power plant BOP package along with BHEL, a project worth more than Euro 180 Million, is a foremost example that this vision was correct. From the current fiscal order book of more than

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

CW Group CemWeek BMWeek NOVEMBER / DECEMBER 2012Coal 5Week CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

leaders comment US$220 million, more than US$200 million of the revenue will be coming from the Middle East-African region. This is an example of how we have thought about business beyond conventional markets.

Promac has the desire to create something new and to make a mark on history by changing the way Indian companies are viewed in the international business arena. One way we have done this is by introducing to the world the first dual process, grey and white cement plant for JK Cement works in Fujairah-UAE. As a result of our work on this project, Promac is now seen as a game changer.

ICCM: How do you plan to sustain the growth levels of your business?

REDDY: We intend to sustain growth through enhancing the market share of

Plant Ltd, South Korea for Ship Loaders, M/s Specialised Handling & Engineering (Pty)Ltd, South Africa for Wagon Tipplers and M/s Famak S.A., Poland, for Bucket Wheel type Stacker-Cum-Reclaimers.

The group is already doing a 1000 TPD gold ore refining project, the only one of its kind in India. It is certainly one of the first in the private sector in India. The supply of some specialized equipments for an aluminum project of Vedanta Group, an FTSE100 Company, is another noteworthy achievement of this group.

Also, Unit 2 at Harohalli-Bangalore has been set up to make most effective and judicious use of available resources. Since Promac is expanding both in terms of the number of projects and also in terms of size, by offering larger capacity projects, we envisaged the need for a larger fabrication area and also extra facilities such

“Promac has the desire to create something new and to make a mark on history by changing the way Indian companies are viewed in the international business arena.”

the existing vertical, diversifying into new verticals and through the expansion of our second unit.

Promac has branched out into the noncement and non-power sector also to maximize shareholder value, by setting up a dedicated materials and minerals management office in Chennai. This materials and minerals group focuses on non-cement and non-power projects apart from infra projects specifically for port handling equipments, where we have teamed up for technical collaborations with M/s. SPECO

6

NOVEMBER / DECEMBER 2012

as a shot blasting, paint booth, etc., in addition to a dedicated machining center in Unit 1. With Unit 2 operational for the past year, the aesthetics and finishing of our products have improved considerably and are now on par with any worldclass manufacturer. In fact, the focused approach has helped us in adopting some of the best practices and we are in the process of implementing Six Sigma and Kanban to improve the quality and reduce the cost of the equipment offered by Promac.

More so, now it’s a known fact that Promac is the only manufacturing center in India

CW Group Coal Week CemWeek BMWeek INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

manufacturing 100 percent of its equipment in-house. Some of the largest players outsource 30 to 40 percent of their equipment due to lack of facilities/space.

ICCM: As mentioned, Promac was tapped

by JK Cements to build a “first of its kind” dual-processing cement plant. Can you provide some specifics with regard to that innovative project and the technology utilized?

The project site was mobilized and construction started in April 2012. The project is now in advanced stages; as of November 15, 2012, the foundation civil works are almost 60 percent completed. The core equipments have reached site and mechanical erection has started. The project is on track and we intend to have the first batch of cement by the end of the third quarter of 2013, and the customer support received in the last six months indicates the project will likely be completed ahead of schedule.

ICCM: Can you share some of the benefits of a company implementing a dualprocessing cement plant?

REDDY: Flexibility to adapt to the everdynamic market requirements and lower manpower cost are two such benefits.

Lower cost of production and dispatches can be carried out throughout the year for both white and grey cement. Most of all, the dependency on only one product diminishes and project viability and profitability increase substantially. Certainly, the respect of being a white-come-grey cement manufacturer increases customer confidence and employee satisfaction, which is evident in the shareholder value.

ICCM: Are there any specific considerations, concerns or challenges that must be taken into account?

REDDY: The dual process cement plant is heavily dependent on the type of raw materials proposed to be used. Certainly, the high-grade china clay/kaolin apart from high-grade limestone has to be thoroughly tested after taking samples from

the entire mine area. This is tested in the Taiheyo Engineering lab in Tokyo and is an essential prerequisite for the project to kick off.

ICCM: What other innovative projects does Promac have in the works?

REDDY: Promac has a special project in hand being executed, converting waste lime sludge from a paper plant into cement. Tamilnadu Newsprint and Paper Limited (TNPL), a public sector undertaking, based in the southern state of Tamil Nadu-India, is among the largest manufacturers of paper in India. They wanted a project which could use up to 30 to 40 percent of the lime sludge accumulated over a number of years. Since this lime sludge had other elements apart from just regularuse limestone, it was a difficult task. However, Promac can envisage the huge benefits this company would realize, as well as the positive effect on the environment.

Thus, we adopted a two-pronged approach of waste sludge elimination and the reduction of power consumption.

the world with such stringent conditions.

However, Promac was successful in the same. The plant has been commissioned and is under trial operation as on date.

Almost all paper manufacturers are lining up to adopt the same approach.

Another project Promac is involved in deals with a plant originally ordered for 1500 tpd, producing 2050 tpd during

post commissioning. Through continuous improvement and de-bottlenecking the plant now produces up to 2700 tpd of cement with minimum capital expenditure. Very active customer involvement, TEC technical inputs, inherent design margins and the reliability of Promac equipment have resulted in huge savings for the cement producer. BMWeek CemWeek BMWeek BMWeek

CemWeek CemWeek

CW Group CW Group CW Group

We adopted some special processes and designed a system so that maximum sludge could be used and also the sludge was to be dried in such a way so overall power requirements used in the grinding of raw meal as well as cement could come down. This was a very tough task and had not been attempted before in this part of

Jayaram S. Reddy is an industrial production engineer with an MS in Industrial Engineering and over 20 years of experience in the engineering industry. Mr. Reddy joined Promac in an entry-level position in 1994 and since 2000 has been the Director of Operations. He is involved in managing production and manufacturing activities of the company and also extensively involved in project estimations, marketing, business development and client liaison.

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

CW Group CemWeek BMWeek NOVEMBER / DECEMBER 2012Coal 7Week CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

feature

Can the Push for Better Housing Stock Help Drive Cement Demand?

The housing shortage, combined with the ongoing conversion of housing stock from kutcha to pucca units, could ultimately boost cement demand long-term.

The news, while promising, is tempered with the knowledge that significant obstacles still need to be addressed.

8

NOVEMBER / DECEMBER 2012

CW Group Coal Week CemWeek BMWeek INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

ensus data projections for 2011 put India’s population at 377 million.

By 2040, that number is expected to hit 700 million. The demographic explosion coupled with continued poverty in the rural areas motivates many to migrate to the cities in hopes of employment. It also means that the current urbanization rate of around 28 to 30 percent is likely to climb to more than 50 percent in the next few decades, according to the Working Group on Urban Strategic Planning.

With the boom in population and more rapid urbanization, the demand not just for housing but also for better housing stock remains unmet. The country’s housing shortfall is estimated to sit at around 18 million units, of which roughly 65 percent is needed in the rural areas. On an annual basis, the National Building Organization (NBO) estimates housing demand to sit at two million units. Global commercial realtor Cushman and Wakefield estimates a similar annual housing demand level, and goes a step further to peg the compounded annual growth rate (CAGR) for housing demand at 2.8 percent across India over the next five years.

DEMAND FOR BETTER HOUSING According to estimates provided in the 11th Plan, the housing stock in 2007 sat at roughly 59.953 million units. Pucca housing units accounted for around 83 percent of the group’s housing unit estimates.

Demand for pucca housing has been on the rise throughout the country, especially in the rural areas. Census data indicates that between 1981 and 2008, the percentage share of pucca housing increased from 10 to 41 percent in the rural areas and from 63.8 to 79.2 percent in urban areas.

Stronger economic growth has boosted disposable income and opened up financing to middle- to high-income consumers.

These factors, coupled with a demand for larger houses, have done much to raise the demand for pucca dwellings in both urban and rural areas.

According to calculations by the Working Group on the 11th Plan, pucca annual housing growth is projected to trend at four percent through 2017. To meet that demand, it is estimated that in the rural areas alone, over 103.82 million units of pucca stock and 72.85 million units of semi-pucca stock will be needed.

The news bodes well for the cement industry since these types of structures favor the use of cement as a primary construction material, particularly in the building of the walls, floors and roof. Data from cement industry sources suggest that between

2001 and 2011 the CAGR for cement used in roof construction trended around 5.5 percent, and in wall construction at 5.7 percent.

POTENTIAL STUMBLING BLOCKS Enthusiasm for the boost to cement demand is being tempered, however, by the realization that some significant obstacles must be addressed. As in many other countries, India’s need for low- to moderate-income housing is especially high.

Under the 12th Plan, it is estimated that of the 18 million housing units needed, more than 88 percent pertains to housing need-

Percentage of Residential Housing by Structure

STRUCTURE

RURAL

URBAN

Pucca

41.00%

79.50%

Semi pucca

36.00%

16.00%

Serviceable kutcha

14.75%

5.00%

Unserviceable kutcha

8.48%

0.00%

Census of India (2008)

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

CW Group CemWeek BMWeek NOVEMBER / DECEMBER 2012Coal9Week CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

feature

ed for the poor, and another 11 percent for low-income groups.

Developers are not, however, motivated to build such housing with land and construction costs trending higher. With land contributing more than 20 percent to construction costs, the motivation to cut into their profit margins has many developers telling the government they are not interested. Scarcity of land in the urban areas is another challenge that cannot be overlooked. While the government holds significant land reserves under the auspices of various agency mandates, land available to the private sector is not in abundance. This has led many to suggest that if the government is serious about providing housing, then it may want to consider providing free land solely for the exclusive purpose of creating low-cost housing stock.

verbial bandwagon. A push for more Public Private Partnerships (PPP) and greater incentives offered on the part of the government are two suggestions put forth, and other options are being explored. If

Other obstacles are encountered in the financial and regulatory arenas. Financing for housing is a small, but growing market for the middle class; however, it is virtually non-existent for low-income groups.

Given the lack of profitability for lenders to address these groups’ needs, the government once again would need to step in, lend its support and back lending programs targeting these borrowers.

In the regulatory arena, the process of applying for the necessary permits and clearances to build is too bureaucratic and off-putting to many developers. Furthermore, with multiple taxes encountered at various stages of the housing transaction, and at such a high rate (up to 25% of the property’s value), the motivation to address the housing demand for this population segment is low on the part of real estate developers and investors.

Therefore, if the government wants to see significant progress in reducing the housing shortage, it will likely need to become more creative in its approach to enticing needed stakeholders to jump onto the pro-

10

NOVEMBER / DECEMBER 2012

CW Group Coal Week CemWeek BMWeek INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

the obstacles are successfully removed, millions will benefit from better housing, and the boost to the economy from greater construction activity will ultimately also benefit the cement sector. BMWeek CemWeek BMWeek BMWeek

CemWeek CemWeek

CW G CW G CW G

E-Magazine is nice, but print copy nicer?

Subscribe to the print edition of the India Cement & Construction Materials magazine and have it mailed directly to you for an annual rate of USD150/ INR7,800 + Shipping & Handling. Contact CemWeek at sales@cemweek.com to place your order.

We know the cement industry well. Let us guide you. For more information please contact us at inquiries@cwgrp.com, or on +1-702-430-1748

T: +1-702-430-1748 F: +1-928-832-4762

FOCUS

Raising the Bar Shree has consistently set the bar higher when it comes to achieving the unthinkable. Applauded for its strong operational performance, the company continues to excel in breaking records for new plant construction and kiln stabilization. What underpins its success? The answer may surprise those looking for the standard matrixes of success.

12

NOVEMBER / DECEMBER 2012

CW Group Coal Week CemWeek BMWeek INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

eadquartered in West Bengal, Shree Cement has earned a reputation for its consistent and strong operational performance. It is the largest cement manufacturer in north India and among the top five cement-manufacturing groups in the country. Operating plants in Beawar, Ras, Khushkhera, Jobner (Jaipur), Suratgarh in Rajasthan and Laksar (Roorkee) in Uttarakhand, the company maintains a current cement production capacity of 13.5 million tons per annum.

mere 330 days, sets the bar even higher for others in the industry.

Furthermore, Shree was the first to achieve some of the fastest stabilization rates in cement kilns after commissioning. Over time, the company has proven successful in consistently achieving reduced kiln stabilization rates. For example, its Kiln 3 was commissioned in 456 days, but by the time Kiln 8 was commissioned, Shree was able to reduce the number of days needed to stabilize the kiln to 330 days.

factor appears to emanate from the company’s culture, and specifically the trust it clearly places in its people. As the company’s Managing Director H.M. Bangur once wrote, “…in a dynamic organization, targets have to change daily to adjust to emerging situations and opportunities. The targets we have achieved yesterday is history; what is important today is ‘what next?’, or future targets. Older organizations are remembered for their sense of history or past achievements; younger organizations are remembered for future expectations.”

Not one to rest on its laurels, Shree has already undertaken steps to set up two additional clinker-manufacturing units at Ras in Rajasthan, each with a capacity of two million tons per annum. Furthermore, a new grinding unit in the state of Bihar and an integrated unit in the state of Chattisgarh are planned with the pre-project activities for those projects in the final stages of completion.

KEYS TO SUCCESS What specifically contributes to the success of Shree’s swift and efficient erection of new capacity? Several obvious factors

The management at Shree does not just give lip service to the idea of trusting and empowering its employees, it practices it in every aspect of its business, including pro-

STANDING OUT Take, for example, the company’s commissioning of a one million ton per annum brownfield clinker plant (U-VII) in world record time. The plant was commissioned in just 367 days against an industry average of 630 days. While definitely impressive, Shree’s ability to best its own 367-day record, by commissioning another one million ton per annum clinker unit in a

500

days

The company’s push to expand capacity is similar to that of other cement companies in India, but what sets Shree apart is its operational excellence and efficiency, especially when it comes to finishing projects on schedule and on budget — a major accomplishment in a country where project deadlines are a moving target and cost over-runs the norm. There is no question that high-caliber project management and execution capabilities have definitely helped the company to compress project timelines and push its plants for rapid capacity expansions, which has contributed to one of the highest operating profit margins in the industry.

KILN COMMISSIONING

250

0

Kiln 3

Kiln 4

Kiln 5

Kiln 6

Kiln 7

Kiln 8

SCL Corporation Presentation (June 2012)

can be highlighted, including the company’s attention to detailed planning, a commitment to deadlines and teamwork between its vendors and contractors, but much more must come into play, particularly when considering Shree has one of the lowest project costs in the industry.

Utilization of a highly skilled and experienced project team, and ability to lower interest and other pre-operative costs, can most certainly be added to the list of factors. However, the most interesting

ject construction. The company’s project teams set their own benchmarks and evaluate their limits. They have, in essence, ingrained within themselves a desire to improve on their own personal bests, often a best that exceeds the industry standard.

Such a level of trust tends to cascade into other relationships, as has been the case with regard to Shree’s new construction projects, proving once more that trust can set unthinkable — but not unachievable — benchmarks. BMWeek CemWeek CW Group Coal Week

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

BMWeek BMWeek

CemWeek CemWeek

CW Group CW Group

Coal Week Coal Week

CW Group CemWeek BMWeek NOVEMBER / DECEMBER 2012Coal13Week CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

EVENT

GMI

hosts successful CBI Conference Delegates from around the world gathered at the Leela Hotel in Mumbai to attend GMI Global’s 2012 Cement Business and Industry Conference (CBI) held on October 10 and 11. Over two days, leaders and executives, associates and technicians, consultants and analysts came together to share knowledge and insights with regard to a wide range of topics relevant specifically to the Indian cement market and the global cement industry in general.

14

NOVEMBER / DECEMBER 2012

CW Group Coal Week CemWeek BMWeek INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

he interactive CBI conference shined the spotlight on the growing Indian sector and its role in the larger global market. Touching on the theme of the conference, “The shift from West to East,” Robert Madeira, Managing Director and Head of Research of the CW Group, highlighted what their group believes to be a perhaps a more fitting moniker of “The shift from North to South” — India, Nigeria and Brazil becoming global powerhouses.

Conference presenters included an exceptional mix of seasoned veterans, key industry players and technology specialists, each sharing their unique insights into an everchanging industry. Parallel afternoon sessions allowed conference-goers to select from either a business or technologically specific platform of presentations. Speaker highlights included: Rajesh Sarada, Assistant Vice President of Reliance Cement, discussed opportunities for sector growth, pointing out that the per-capita consumption of cement is expected to rise to 700 kilograms in the next 10 years.

Michael Foillet, Chief Industry Specialist for International Finance Corporation (IFC), addressed the topic of investment management and finance. Folliet indicated that 90 percent of cement demand was in emerging markets and that the priorities of the IFC were not only to reinforce relationships with global players, but also to partner with emerging players.

Juergen Staeudtner, Innovation Partner, CW Group (Germany), stressed the need for innovation and what it really means to

PLATINUM SPONSOR

india CemWeek

successful companies. He posed and proceeded to answer the question, “Why innovation?”

Patrick Peenaert, former Head of Global Fuel Sourcing and Consultant to Lafarge, addressed the session topic “Economics of Fuel,” while Semih Nihmet, Senior Analyst at Ion Resources, discussed the factors impacting the supply and demand of fuel sources.

Parallel technology session highlights included Mike Sumner, Technical Director of Cement Additives at W.R. Grace, who presented on the role of cement additives.

Dr. Daniel Strohmeyer, Director Process Technology of Loesche, and Ashish Bhaiya, Manager Business Development, EvonikFibres, delivered presentations on the development of fuel management and alternative fuels. Monica Vale, International Business Development at Cachapuz (SLV Cement), delivered her presentation on squeezing plant efficiency, and Mark Bryant with Business Development at Browz expounded on the utility of technology to mitigate supply-chain risk.

One unique feature of the conference was two CEO panel discussions, where top leaders and executives of the industry discussed a variety of topics. In the first panel, the conference theme of “The Shift from West to East” was discussed in detail

by Aime Mananda, Managing Director of Burundi Cements; Maurizio Caneppelle, Managing Director of Zuari Cements; Krishna Shrivastava, Whole Time Director of Zuari Cements, and Jean-Michel Allard, retired Deputy CEO and member of the board for Vicat.

CEOs again were brought together at the end of the two-day conference. Topics covered included a discussion of the global cement industry’s passage through the recent financial crisis, new strategic drivers for the sector, health and safety, human capital and CO2 emission issues. Martin Gierse, President and Executive Director of KHD; Suman Mukherjee, CEO and Managing Director of Shree Cement; Sumit Banerjee, Head of Cement for Reliance Cement; Oliver Mahon, Country Head for CRH India, and Jean-Michel Allard, retired Deputy CEO and member of the board of Vicat, participated. BMWeek CemWeek BMWeek BMWeek

GOLD SPONSOR

CemWeek CemWeek

SILVER SPONSORS

CEMENT & CONSTRUCTION MATERIALS

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

CW Group CemWeek BMWeek NOVEMBER / DECEMBER 2012Coal15Week CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

CW Gr CW Gr CW Gr

company

profile

Sagar Cement A Resilient Regional Player

Several cement companies dominate India, but a few, such as Sagar Cement, have proven successful in carving out their own regional niche market. Progressive business and manufacturing practices have helped the company to weather 25 years in the industry and to build a strong brand name.

16

NOVEMBER / DECEMBER 2012

CW Group Coal Week CemWeek BMWeek INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

he Sagar Cement Company (Sagar) is based in Hyderabad in the state of Andhra Pradesh.

Sagar’s production facilities are located in the Nalgonda cluster of central Andhra Pradesh, specifically in Mattampally and Pedaveedu. The company’s current clinker capacity sits at 2.10 mil-

lion tons per annum (mtpa) and its cement production at 2.35 mtpa. Sagar sells its products mainly in the Andhra Pradesh region, but has been looking for growth opportunities in neighboring states, particularly those where greater infrastructure spending is expected.

COMPANY PERFORMANCE (MTPY) 2,000,000

2010 - 2011

2,000,000

2010 - 2011

2011 - 2012

1,000,000

0

2011 - 2012

1,000,000

Clinker

0

Cement

Clinker

PRODUCTION

Cement SALES

Overcoming Hurdles Several obstacles have proven challenging for Sagar. Luckily, the company has been able to address several of those. For example, distribution costs have been a significant expense, but the company is moving forward with plans to build a railway near the plant. Once completed, it should go a long way in reducing current freight costs for the company.

Another obstacle is accessing a significant quantity of domestic coal. Maintaining an adequate supply of good quality coal remained a challenge for the company throughout much of last year. Throughout the year, it was forced to import coal at a much higher price. Fortunately, as of the second quarter of 2012, the company reported that it was able to procure more domestic coal reserves, thereby reducing costs considerably.

TOTAL REVENUE (RS)

8,000

5,000

2,000 2007-08

In 2008, Sagar entered into a joint venture (JV) agreement with French-based Vicat to set up a 5.5 mtpa capacity, fully integrated cement plant in Chincholi Taluk in the Gulbarga district of Karnataka. The Greenfield project, which includes a 60 MW captive power plant, is to be completed in two phases, each adding 2.75 mtpa in capacity. The first phase is expected to finish by the end of the current year. Sagar and the Vicat Group invested RS 860 million and RS 4140 million respectively, representing 47 and 53 percent of the equity capital in the project. The JV is expected to prove beneficial for both Sagar and Vicat, allowing the two to join resources — including a combined capacity of 7 million tons — to serve complementary markets.

2008-09

2009-10

2010-11

2011-12

Financial Peaks and Valleys Despite rising costs and a slowing economy, Sagar registered reasonable growth, both in terms of volume as well as price in FY 2011-2012. Its sales grew by 11 percent over the previous year and the average net sales realization per ton of cement was also higher at RS 2,945 +/-, an increase of 32 percent over the previous year, result-

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

CW Group CemWeek BMWeek NOVEMBER / DECEMBER 2012Coal17Week CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

Mattampally

ing in a net operating revenue of RS 6061 million. Sagar’s total income rose by 40 percent while profit before and after tax climbed 185 and 153 percent respectively over the previous year.

The company’s engine of growth may have sputtered when it came to its financial reporting for the quarter ending September 2012. Net profits had declined 18.4 percent to RS 4.82 crore in comparison to RS 5.91 crore during the previous

18

NOVEMBER / DECEMBER 2012

quarter ended September 2011. Sales also declined 7.1 percent to RS 135.85 crore in the quarter ended September 2012 against RS 146.25 crore. Sagar, however, is anticipating a recovery from the second half of fiscal year 2013, led in part by a recent round of cement price hikes.

What is Next?

In the southern region, substantial additions to capacity have kept utilization levels low for industry players such as Sagar.

CW Group Coal Week CemWeek BMWeek INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

The company remains hopeful that the housing market will rebound and infrastructure spending throughout the region will improve, offering a much-needed boost in demand. Until then, the company intends to focus on improving its brand image, undertaking customer-focused initiatives, and further strengthening its distribution networks. The company also is not ruling out organic as well as inorganic avenues for expanding its existing manufacturing facilities. BMWeek CemWeek CW Group BMWeek BMWeek

CemWeek CemWeek

CW Group CW Group

Coa Coa Coa

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

focus

The Greening of Electric Motors

by Sanwar M. Mishra, Ex-UNIDO Consultant

Global environmental concerns focus on the state of cumulative pollution, comprised of land, air, and water pollution, which seriously affect the human population and other living things. Humans are a most intelligent species, who can find a solution, as we are the ones producing the most pollutants on earth.

arth has been warming at a rate of 0.2°C per decade for the past 30 years. A major contributor to this trend has been greenhouse gasses. Greenhouse gases trap heat in the Earth’s atmosphere and warm the surface.

These gases are comprised of water vapor, CO2, methane, nitrous oxide, ozone, etc.

CO2 is a major greenhouse gas contributor.

The production of CO2 by various sectors of the economy on a global scale is illustrated in the diagram to the right.

In 2004, the global average for CO2 in the atmosphere was 377.1 ppm (i.e. 377.1 parts per million). By 2005, it had climbed to 379.1 ppm.

GLOBAL CO2 PRODUCTION

In the manufacturing of cement, the production of CO2 is found primarily in three areas: fuel (45%), calcinations (40%) and

20 NOVEMBER / DECEMBER 2012

CW Group Coal Week CemWeek BMWeek INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

Others Manufacturing Cement Road Transport Energy Non-Road Transport (Rail) Heat & Power

electric motors and transport (15%). For this article, there are some points to consider in the selection and operation of electric motors with respect to environmental requirements.

Power saved is power produced and the environment preserved. Efforts to reduce power consumption and improve electric motor efficiency prove beneficial in ultimately reducing CO2 production and its release into the atmosphere.

All heating operations, whether carried out to produce power by burning fuel or caused by the overheating of electric motors due to higher load and lower efficiency, result in CO2 production and the polluting of the atmosphere. It is an antigreen environment action. Fortunately, there are potential solutions.

Environment-Friendly Motors Electric motors, in a way, are the largest consumers of electricity. Power to the motor is made up of two components. One is the effective and useful net power that is available for the process, and the other component of power accounts for the losses (iron and copper) as a result of conversion from electrical input to mechanical output.

It is observed that single-phase fractional horsepower and 3-phase induction motors are widely used in the industry. They are designed to run at a constant speed.

Motors constitute a substantial part of the connected load to the power supply system. The 3-phase AC induction motor is designed to perform optimally in the range of 60 to 100 percent efficiency, which is linked to the rated capacity and the nature

of the connected load. The load can be a resistance, capacitance and inductance or a combination of the same. For example, a motor running at less than 50 percent of its rated capacity will unduly downplay the power factor, which in turn will increase the load on the supply system. Motor efficiency accounts for 15 to 20 percent of the total savings on electrical energy, whereas the remaining 80 percent relates to the process load conditions.

Unlike 3-phase, single-phase induction motors generally run at 20 to 30 percent efficiency. They are employed for household use, e.g. motors for ceiling, table and exhaust fans. More efficient motors for pumps and blowers run at 60 to 70 percent efficiency. The number of such motors is very large. A small improvement in efficiency can yield large savings in energy.

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

CW Group CemWeek BMWeek NOVEMBER / DECEMBER 2012Coal21Week CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

focus ingredients such as CaO, SiO2, Fe2O3 and Al2O3. Metallurgical slag, which is available as disposable waste, has a composition is similar to these requirements.

Effecting Savings Likewise, pozzolanic materials, e.g. fly ash, calcined clay etc., can be used to effect the savings. The addition is limited to about 25 to 30 percent. It is a useful material for cement and the brick industry. Further, the use of alternate fuels can add to the savings on fuel. It promotes conservation of mines, emission reduction of greenhouse gases and protection of environment by curtailing the emission of SO2, NOx and particulate matter in the atmosphere.

Use of metallurgical slag and pozzolanic materials should be promoted. Additionally, the cost savings on power, fuel, labor and materials are claimed.

These motors are constant speed drive; they cannot be energy efficient unless adjustable speed drive (ASD) is used, as it is not so easy to vary the supply voltage and the frequency. However, the use of ASD-motors introduces harmonics in the power system and thus pollutes the power quality. Besides the AC-variable frequency drive (VFD), DC Brush Less Drive (BLDC) motors are fast replacing the constant speed induction motors in the singlephase category.

A Variable Frequency Drive (VFD) motor will reduce the motor speed to suit the process load requirement, eliminating the use of any damper or throttle valve. In this way, the VFD does not resist the flow; it achieves the desired condition by simply reducing the speed, thus it saves power and enhances the energy efficiency of the system. Power saving approximates to 25 to 40 percent, which is a substantial saving.

The relationship between speed and power is that power is proportional to the cube of the speed (P cube of N). For example, at full flow of air/fluid, the motor speed is 100

22

NOVEMBER / DECEMBER 2012

percent and it consumes 100 percent power. At 90 percent flow, the motor speed is reduced to 90 percent, but the energy consumed is 73 percent only. This means that a small reduction in speed makes a large reduction in power consumption.

In addition to electric motors, cement production causes environmental pollution in many ways. The process of cement production involves burning of fuel, which produces CO2. Besides this, the heating of limestone releases CO2, which is in addition to the fuel burning process.

Approximately one ton of cement requires 1.6 tons of raw materials. Hence processing of 1.6 tons of materials, from mining onwards to crushing, raw milling, homogenizing, clinkerization and final grinding into cement, consumes resources of power, fuel, labor, raw and auxiliary materials, etc. If part of the materials can bypass the processing stages, at least those resources are conserved, thereby effecting a cost saving. It requires searching for those materials, which have similar chemical composition as cement and contain the

CW Group Coal Week CemWeek BMWeek INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

Waste heat recovery is claimed when the outgoing kiln exhaust gases are made to pass through the water tube boilers for producing low-pressure steam and used to run the low-pressure steam turbine coupled with the alternator for producing power. This process is being employed by some of the Indian cement plants. It is already in use by Chinese cement producers. Under the Kyoto protocol, it is eligible for earning carbon credits.

By using improved solar technology, solar PV farms are employed to produce renewable energy from the sun. Inverter technology for converting the power in the AC/DC mode is available from industry giants such as ABB. During the year 2011, a record investment was made in establishing solar PV farms in Canada, Australia, South Africa and Italy. The average price of Chinese tier-2 crystalline PV modules has come down. Further, wind turbines offer an alternative renewable energy source, adding substance to the saying, “where there is wind there is power business.� BMWeek BMWeek BMWeek

Note: The author acknowledges the contributions of Shri Shashi Kant Mishra on environmental metrics.

Ce Ce Ce

focus

Rise in IIP Calms Economic Growth Concerns Infrastructure output growth climbed 5.1 percent in September. Is it enough to boost industrial production long-term?

On the surface, the recent rise in infrastructure output growth may have gone a long way in easing the immediate concerns regarding India’s economic growth, but others remained concerned about long-term growth sustainability.

In September, infrastructure growth rose 5.1 percent on year, up 2.3 percent from August. The increase was thanks in part to a double-digit increase in cement, coal and petroleum refining. In comparison, crude oil and natural gas experienced contractions. The country’s eight core industries and their monthly levels of growth, which have a combined weight of 37.9 percent on the Index of Industrial Production (IIP), are listed below.

OUTLOOK A study released by the Associated Chamber of Commerce and Industry of India (ASSOCHAM) in October projects that the country’s industrial production will remain weak with output trending at less than two percent for FY2013. While business confidence over the last few months has been buoyed, thanks to more substantial policy initiatives on the part of the government, ASSOCHAM points out that a lag between business confidence and actual growth picking up is to be expected.

Manufacturing, the mainstay of the overall IIP and one of the critical sectors, along with capital goods, durables and non-durables, continues to struggle.

High raw material costs, the extended slowdown and recession still grasping many parts of the world, higher interest rates and lower consumer confidence are expected to maintain pressure on these key sectors for the near future. BMWeek BMWeek BMWeek

sector performance

Sector

Weight in IIP

Sept. 2011

Sept. 2012

Apr. – Sept.

2011/2012

Apr. – Sept.

2012/2013

Electricity generation

10.32%

8.8%

3.7%

9.3%

4.7%

Steel

6.68%

7.5%

2.0%

9.5%

2.6%

Petroleum Refinery

5.94%

4.3%

11.4%

4.6%

5.4%

Crude Oil

5.22%

0.1%

-1.7%

5.1%

-0.8% 8.3%

Coal

4.38%

-18.2%

21.4%

-4.8%

Cement

2.41%

2.2%

13.4%

3.8%

7.4%

Natural gas

1.71%

-6.4%

-14.8%

-8.5%

-12.5%

Fertilizer

1.25%

-2.1%

5.7%

0.6%

-5.6%

Source: Central Statistics Office

Ce Ce Ce

cement market & competition

M

arket and competition

Demand from the country’s rural areas helps to boost cement production in the first half of the year.

Sanghi Industries continues to revamp its strategy to focus more on domestic sales. Eleven major cement manufacturers accused of cartelization formally filed an appeal with Competition Appellate Tribunal (COMPAT). Holcim propose raising ACC and Ambuja’s royalties, but meet resistance to the idea.

RURAL BOOST Demand from the country’s rural areas has hiked cement production. Cement production has seen a 7.4 percent growth during the first six months of the current financial year. Within the eight core industries, that have a combined weight of 37.9 percent in the Index of Industrial Production (IIP), cement has recorded the second fastest production growth.

According to one report, during the first six months of 2012-13, coal at 8.3 percent emerged as the fastest growing sector, followed by cement. Cement production, after remaining slightly soft in August affected by monsoon, recorded a 13.4 percent YoY growth during the month of September 2012.

pany has a three million tons per annum capacity plant at Kutch in Gujarat, and has recently put in a 63 MW captive power plant and a sea terminal (RS 50 crore) in Navlakhi port in Rajkot district to help it meet its goal.

“Energy and logistics are the biggest costs for cement business and we have strengthened them to improve efficiencies and cut costs,” said Alok Sanghi, Director. “The sea route will be used to cost effectively increase the geographical reach of the cement and grow our markets. At present, the company is serving Gujarat, Rajasthan,

TOWARD DOMESTIC SALES Sanghi Industries has turned its attention to domestic sales instead of its traditional export driven strategy. The company plans to capitalize on building its domestic sales in order to slash debt, which stands at around RS 750 crore at present. The com-

24 NOVEMBER / DECEMBER 2012

CW Group Coal Week CemWeek BMWeek INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

Madhya Pradesh and Maharastra. The focus is to expand in the Central, Western and coastal states,” he said.

Sanghi Industries has reworked its market strategy to focus 90 percent on domestic and 10 percent on exports over the last couple of years.

FORMAL APPEAL Eleven cement makers in India fined for allegedly engaging cartel like behavior, have formally appealed the competition commission’s ruling. They approached the Competition Appellate Tribunal (COM-

According to one report, the 3-member COMPAT bench, headed by its Chairman Justice V S Sirpurkar, however asked the CCI not to take any coercive action against Shree Cement, against whom penalty of RS 397.51 crore was imposed by the regulator on July 30.

CCI had not imposed penalty on the other 10 cement makers that day as it had done so already in a separate order passed on June 21. It had imposed a Rs 6,307 crore penalty on them, along with the Cement Manufacturers Association (CMA), on charges of price cartelisation.

ROYALTY PROPOSED Holcim proposed a two percent royalty on the revenues of its two India based subsidiaries ACC and Ambuja, but has hit a roadblock as independent directors of Ambuja question the technology transfer involved.

The proposal did not pass at Ambuja Cement board meeting, as independent directors led by veteran corporate lawyer M L Bhakta and economist Omkar Goswami asked for more details on the exact nature of the technology being transferred

by Holcim to its subsidiary. Both Goswami and Bhakta declined to comment on the issue.

SOLAR POWER INVESTMENT Aditya Birla Group plans to invest US $1 billion over the next five years to develop solar power projects in India. This is according to Dev Bhattacharya, head of strategy. The group, which runs businesses from cement to telecommunications, has so far invested 2 billion rupees (US$39 million) to develop 20 megawatts of solar capacity and targets having 100 megawatts in 18 months.

In related news, Aditya Birla Group reportedly acquired a minority stake in a photovoltaic plant in Gujarat state controlled by Electrotherm India Ltd. (ELT).

focus SOME COAL BLOCKS TO BE DEALLOCATED The Indian government has reportedly decided to de-allocate three coal blocks because of the lack of progress in their development.

CEMENT: MARKET AND COMPETITION

PAT) challenging its July 30 findings. It issued notices to the Competition Commission of India who listed the matter for its next hearing on November 22.

The Inter-Ministerial Group on coal blocks advised the government to deduct or forfeit bank guarantees to the tune of Rs 25.7 crore in a case involving 11 firms for sitting on coal blocks allocated to them for captive use.

The coal ministry has asked for a forfeiture of bank guarantees of RS 11.8 crore with regard to the Gondhkari coal block jointly allotted to Maharashtra Seamless, Dhariwal Infrastructure and Kesoram Industries.

The companies whose guarantee has been ordered for deduction includes Grasim Industries, Gujarat Ambuja Cements, and Lafarge India, among others.

CEMENT DEALERS ON INDEFINITE STRIKE Cement dealers in India’s Kerala are going on indefinite strike to protest the government’s decision to put cement on the notified goods list.

The agitation, spearheaded by Kerala Cement Dealers Association, is likely to severely affect infrastructural development activities in the State.

The board at its quarterly-results meeting took up the proposal but a decision was postponed until an independent consultant can give a report of their findings.

Holcim, which owns close to a 50 percent stake in both ACC and Ambuja Cement, has proposed to raise the royalty for technology transfer from 0.5 percent of revenues to two percent. If implemented, the payout from Ambuja Cement and ACC would be RS 500 crore a year.

EXPRESSING INTEREST Indian cement makers have expressed interest in putting up cement units in Madhya Pradesh.

The state has already signed MoUs worth RS. 4,800 crore with J.K. Cement for cement plant in the Panna district. The firm is keen on establishing a cement plant in Satna district.

According to one report, because of the government’s move, cement dealers have had to shoulder additional burden for procuring it. In addition, certain officials continued to demand amounts that were double the tax amount to be paid by cement dealers.

Although the association conveyed its concerns to the Chief Minister, Finance Minister and the Commercial Tax Commissioner no measures haven been taken as of yet.

Cement dealers ceased purchasing cement on November 10.

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

CW Group Week CemWeek BMWeek NOVEMBER / DECEMBER 2012Coal25 CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

cement volume and pricing

V

olume and pricing

With the end of the monsoon season, demand is expected to rise and lead to sustained growth.

Cement prices are trending upward throughout the country as well, increases for a 50 kg bag ranging anywhere from Rs 7 to 23 per bag.

in FY13E at 76% due to higher effective capacity additions, we expect utilisation rates to improve gradually to 78% by FY14E as incremental demand is likely to surpass effective capacity additions during the year,” said ICICIdirect.

According to the report, All-India cement prices saw a marginal improvement in October 2012 in select regions (north, central and south) on account of the end of monsoon season. The northern region saw a rise of RS 20-23/bag, one of the highest among all regions, which took average October 2012 prices to RS 295/bag.

Demand to Steadily Rise India’s cement demand is expected to continue a steady rise, as demand from housing projects increase, reports My Iris.

“We expect cement demand to grow at 6.7% YoY in FY13E and 8.9% in FY14E, driven by demand from rural and semiurban housing. Though the capacity utilisation rate is expected to remain lower

26 NOVEMBER / DECEMBER 2012

In the south and central regions, prices recovered marginally by RS 7-9/bag, which took average prices in the south and central region to RS 302/bag and RS 272/bag, respectively, for October 2012.

Meanwhile, in the eastern region, prices remained flat as that of last month while the west region saw a decline of RS 10-12/ bag MoM to RS 285/bag due to subdued demand. With this mixed pricing trend, all-India average cement prices stood at RS 291/bag, a marginal recovery of RS 6/bag MoM.

CW Group Coal Week CemWeek BMWeek INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

HIGHER SALES FOR ACC ACC reports its sales rose 3.55 percent in October to 2.04 million tons, on the back of higher demand. The company’s production remained almost flat at 2.05 million tons compared to 2.04 million tons. In September, ACC’s Cement reported production hit 1.82 million tons, an increase of 9 percent from the 1.67 million tons noted last September. Sales for the period hit 1.80 million tons, compared with 1.73 million tons, an increase of four percent.

“The demand for cement is expected to grow at 10 percent over 2011. A lower utilisation rate coupled with increase in cost of raw materials and increasing logistics costs are likely to keep overall prices under pressure in all regions,” the company said.

According to ACC, the pressure on costs will continue to mount mainly due to increases in the cost of domestic coal and owing to volatility in the costs of imported coal. It adds that availability of fuel at reasonable rates was one of the main concerns of the company as it uses large quantities of coal annually to meet its kiln and captive power generation requirements.

CEMENT: PEOPLE volume and pricing

P

eople

An Indian cement pioneer passes away. Pakistan’s APCMA re-elects chairman to his second consecutive term.

alike, and earned the respect of everyone in and outside his organization.

According to media reports, as co-promoter of the India Cements, he went to Denmark in the late 1940s and returned with a thorough knowledge of cement and PVC. A technology-savvy industrialist, it was said that he could run a plant on his own.

With a well-diversified knowledge base, he dealt with a range of industries — cement, plastics, sugar, drugs and pharmaceuticals, shipping, ceramic insulators, rubber and calcium carbide. He was involved in the promotion of diverse enterprises such as Chemplast Sanmar, Sanmar Shipping, WS Industries and Tamil Nadu Dadha Pharmaceuticals.

Cement Pioneer Passes Away In late September, K.S. Narayanan, Chairman Emeritus of the Sanmar Group, passed away at age 93.

He is survived by his sons, N. Sankar and N. Kumar. Narayanan, as one of his longtime associates remarked, “walked with kings and commoners.” He treated all

Narayanan was the founder president of the Indo-American Chamber of Commerce-Southern Region and former president of the Hindustan Chamber of Commerce. He also served as the Sheriff of Madras (1974) and as the Honorary Consul of Denmark for South India. chairman re-elected The All Pakistan Cement Manufactur-

ers Association (APCMA) has re-elected Aizaz Mansoor Sheikh unanimously as Chairman of APCMA in its Annual General Meeting held in Lahore. Sayeed Tariq Saigol of Maple Leaf Cement Factory Limited and Muhammad Ali Tabba of Lucky Cement Limited were also unanimously re-elected as Vice Chairmen of the Association.

According to the report, Aizaz Mansoor Sheikh of Kohat Cement Company has served as Chairman of APCMA for a period of eight years since 1992. The current term 2012-13 is his second consecutive term as Chairman of APCMA. Muhammad Raza Mansha of D.G. Khan Cement, Amer Faruque of Cherat Cement, Maj. Gen. (Rtd.) Rehmat Khan of Lafarge Cement Pakistan, Lt. Gen. (Rtd.) Muhammad Sabir of Fauji Cement, Brig.

(Rtd.) Asmat Ullah Khan Niazi of Askari Cement, Syed Asif Shah of Bestway Cement, Babar Bashir Nawaz of Attock Cement Pakistan, Mazhar Iqbal of Pioneer Cement, Muhammad Tousif Paracha of Gharibwal Cement were elected as Members of the Executive Committee.

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

CW Group CemWeek BMWeek NOVEMBER / DECEMBER 2012Coal27Week CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

cement projects and expansions 5

p

1 rojects and expansions

JSW wants to double its production capacity by 2013. Two more mills are to be commissioned. JK Lakshmi is restarting its idled plant in Udaipur and OCL India is looking for funding for a new plant in West Bengal.

DOUBLING OUTPUT JSW Cement will double its production capacity by March 2013 by commissioning two more mills. “The commissioning of the plants will help us increase production to four lakh tonnes per month from 2 lakh tonnes per month. This will enable us to double our revenues by the next financial year to RS 2,200 crore,” said Director and Chief Executive Officer R.C. Sodhani.

Sodhani added that the production capacity would go up to 4.8 million tons per annum at the Nandyal plant in Andhra Pradesh and with the Bellary unit, the company would have a total capacity of 5.3 million tonnes per annum.

lion ton to our existing capacity, thus enabling us to cater to the growing demand for cement,” JK Lakshmi Whole-time Director Shailendra Chouksey said.

According to one report, JK Lakshmi decided to revive the operations as part of its overall plan to nearly double its capacity in the mid-term. The revival of the plant is expected to be completed by September or October 2014. Chouksey confirmed that RS 100 crore will have to be brought in by

The company is also in the process of setting up a slag cement plant in Bellary with an investment of RS 350 crore. The company expects this facility to commission within 18 months.

PLANT REVIVED JK Lakshmi plans to spend RS 350 crore to restart its idled plant in Udaipur to hike its installed capacity. “We will be spending nearly RS 350 crore for reviving the operations. This will help us add nearly 1.4 mil-

28 NOVEMBER / DECEMBER 2012

CW Group Coal Week CemWeek BMWeek INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

JK Lakshmi and the rest will be debt but that “all had been lined up.”

RAISING FUNDS OCL India is looking to raise as much as US$40 million from the IFC to fund its new 1.35 mm ton cement plant in West Bengal. The project will be located at village Kulapachuria, Salboni sub-division.

Its efforts to raise the money are part of the company’s bigger US$102 million investment plan.

According to media reports, the IFC is evaluating an A-Loan of US$40 million to partly-finance the project. The balancefunding requirement will be met through rupee debt and internal accruals, said the corporation.

The project is expected to take 27 months to construct and will be operational by January 2014. The plant will use clinker from OCL’s existing cement plant at Rajgangpur, Orissa. The facility will manufacture slag cement (PSC) to suit the market needs with an option to manufacture Portland pozzolana cement (PPC) or ordinary Portland cement (OPC) at a later stage depending upon market demand.

CEMENT: projects and expansions

Lucky Cement Eyeing India plant Pakistan based Lucky Cement is considering whether it should set up a cement plant in neighboring India, where demand continues to surge. Lucky Cement, which also has manufacturing units in Iraq and Congo, has been exporting the building material to India.

This is the first such overture since New Delhi allowed foreign direct investment (FDI) from its western neighbor three months ago in an attempt to strengthen business and economic ties.

“Currently, Lucky Cement is contemplating having a direct presence in India once it has achieved key understanding of the Indian market and the opportunities it may offer,” a company spokesperson was quoted as saying.

focus OPPOSITION TO SAMBA PROJECT India’s NCP has hit a wall with regard to a decision by the Jammu and Kashmir government to set up a cement plant in the Samba district, and its desire to secure agricultural land for the project.

“We oppose the decision of state government to acquire agricultural land to set up a cement plant in Samba,” Nationalist Congress Party (NCP) state chief Randhir Singh said.

According to one report, the water bodies, soil, crops, livestock and the health of the people have been affected by the presence of chemical insecticide and pesticides manufacturing units at Samba and Kathua District, the NCP leader said.

Singh said the foothills of the Shivalik range, which is known for flora, fauna and rich biodiversity, were also affected due to a lack of conservation measures being undertaken.

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

CW Group Week CemWeek BMWeek NOVEMBER / DECEMBER 2012Coal29 CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

cement m&a and finance

m

&a and finance

5

1

Talks are on once more between the Aditya Birla Group and Jaypee after Irish-based CRH and Birla failed to find a meeting of the minds. JK Cements reported higher revenues thanks in part to higher grey cement sales and a rise in cement prices. UltraTech saw its profits nearly double in the second quarter while India Cements saw profits dropped thanks to an increase in power and freight rates.

TALKS REVIVED The Aditya Birla Group is reportedly now back in talks with Jaypee for the acquisition of cement plants in Gujarat and Andhra Pradesh. This news comes after Irish building materials company CRH called off talks with the diversified New Delhi-based group.

western India. These regions have seen improvement in demand from the real estate sector and infrastructural projects which have benefited JK Cements.

PROFITS REPORTS India Cements reports its net profit dropped by 29.5 percent to RS 49.08 crore in the July to September quarter as power and freight rates increased. Total income for the quarter rose to RS 1,125.85 crore, up from RS 1,091.92 crore in the same period of last year.

According to one report, top officials from the Aditya Birla Group’s cement business and executives from investment bank Barclays are in discussions to thrash out a deal on the pricing. Barclays is advising Jaypee on the transaction. Earlier, talks between the two fell through in July this year due to differences over valuation. Jaypee was keen on a price of US$190 per ton while Birla was not willing to pay more than US $115 to $120 per ton.

HIGHER REVENUES JK Cements reported top line growth of 39.5 percent year-on-year, which stood at RS 710 crore. Sales of grey cement rose 40.9 percent, accounting for two thirds of total revenue. Meanwhile, EBIDTA increased by 114.9 percent y-o-y to RS 130 crore primarily due to improvement

30 NOVEMBER / DECEMBER 2012

in profits and from favorable geographical location. The company noted the price per bag of cement has risen by nearly 20 percent in the last year.

JK Cements gained from its presence in the high growth markets of northern and

CW Group Coal Week CemWeek BMWeek INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

“Despite challenging operating environment for the cement companies in South, coupled with higher power tariff in Andhra Pradesh and Tamil Nadu and hefty power holiday of 12 days per month in Andhra Pradesh we were able to deliver a reasonable top line and bottom line numbers,” reported India Cements Vice-Chairman and Managing Director N Srinivasan.

Ambuja Cements projects profits will rise 94 percent to RS 333 crore in the quarter ended September 2012 from RS 171.5 crore in the previous year period, mostly on the

CEMENT: m&a and finance

back of firmer demand. Net sales are seen going up by 20 percent to RS 2,170 crore from RS 1,805.1 crore and earnings before interest, tax, depreciation and amortisation (EBITDA) up by 82 percent to RS 530 crore from RS 290.8 crore.

quarter against RS 354.13 crore of the July to September quarter of the FY12. Meanwhile, its total expenditure increased to RS 411 crore, while its tax out go and finance costs were RS 22.64 crore and RS 22.31 crore, respectively.

Net sales are likely to fall by 15 percent and EBITDA down by 27 percent. Profit after tax is expected to decline 29 percent.

Sequentially results appear lackluster due to seasonal weakness. Sales volumes are expected to come in at 4.78 million tons, a growth of 1.5 percent year-on-year and degrowth of 14 percent quarter-on-quarter.

UltraTech Cement reports its profits in the second quarter rose to almost double, but it has also warned higher material costs could hit margins moving forward.

Demand for cement in India is expected to rise about eight percent during the fiscal year that ends in March, driven by a government push to expedite infrastructure projects to revive growth.

JK Lakshmi Cement reported profits in Q2, showing earnings that surged eight fold for the period. The firm confirmed this is largely on the back of an increase in sales and recovery of some “written off ” dues.

The company had reported a net profit of RS 6.49 crore during the same quarter of the previous fiscal.

Net sales of the company were up 38.41 percent to RS 490.16 crore during the

However, margins of cement makeRS have come under pressure in recent months due to an increase in the cost of fuel and transport. UltraTech’s variable costs rose eight percent in the quarter from a year previously. UltraTech reported a 97 percent rise in standalone profit to RS 5.5 billion for the July-September quarter, but this was short of market expectations. BMWeek CemWeek BMWeek BMWeek

CemWeek CemWeek

focus Stronger Profits Birla reported strong profit on better performance of its cement business, even as a ban on mining at its Chanderia plant continues.

The division posted strong EBITDA/ton of RS 735, despite procuring clinker from outside. The company declared an interim dividend of RS 2.5/share.

Its revenue rose 24 to 40 percent and 23 percent YoY growth in cement and power respectively. Cement volumes at 1.58 million tons, grew 12 percent YoY (down 3% qoq). Realizations rose 25 percent YoY(down 2% qoq) to RS 3,930 a ton due to strong prices in central and cast regions.

Meanwhile, EBITDA was up 447 percent, PAT 207 percent YoY. EBITDA and PAT rose 447 percent and 207 percent YoY, respectively, driven by strong growth in cement CW Group Coal Weekprofits. EBITDA/ton came in CW Group Week at RSCoal 735.

CW Group

Coal Week

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

CW Group CemWeek BMWeek NOVEMBER / DECEMBER 2012Coal31Week CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

CONSTRUCTION materials

I

nfrastructure & projects

IL&FS is awarded a Metro Link extension project by the Haryana Urban Development Authority and L&T Construction secures a contract from the Delhi Metro Rail Corporation (DMRC). The World Bank agrees to provide RS 1,760 crore for improving secondary road network in Assam. Meanwhile, 2,500 km of national highways projects worth RS 25,000 crore await funding.

NEW PROJECTS Metro Link extension project bagged The Haryana Urban Development Authority awarded IL&FS a 6.5-km rail Metro Link Extension. The extension would be constructed from Sikanderpur station to Sector 56, Gurgaon, on a design, build, finance, operate and transfer (DBFOT) basis. The consortium of IL&FS Transportation Networks and subsidiary IL&FS Rail will complete the project. The estimated cost of the project is RS 2,100 crore. It is likely to be commissioned within a period of three years and is expected to be completed by 2015 with a concession for a period of 98 years.

Two new orders for Tantia Tantia Constructions, a major player in the construction industry, has bagged new orders worth RS 165 crore. The company bagged the first order from PWD B&R branch, Chandigarh. The project involves development, operation and maintenance of Batala-Mehta-Beas Road (MDR-66). The order worth RS 120 crore has been awarded to the company on a design, build, finance, operate and transfer (DBFOT) basis in Punjab. The second

32 NOVEMBER / DECEMBER 2012

order the company received, worth RS 45 crore, was from the Eastern Railway, Kolkata. The project involves construction of minor bridges, platform walls/flooring, cutting, filling, blanketing and other ancillary work.

Avalon to invest in housing project Avalon Group plans to invest RS 200 crore in a group housing project at Bhiwadi over 12 acres. Once built, it will have 800 housing units at an inclusive price of RS 2,300 per square foot. The company plans to fund the project through internal accruals and debt and is planning executing two similar projects at Vrindavan in Uttar Pradesh and Dharuhera in Haryana.

L&T JV secures order from DMRC L&T Construction’s infrastructure arm bagged an order worth RS 1252 crore from the Delhi Metro Rail Corporation (DMRC). The project involves designing and constructing a tunnel between Shankar Vihar and Hauz Khas, and designing and constructing underground stations at Vasant Vihar, RK Puram, Munirka, IIT and Haus Khas. The project will be executed through a joint venture with Shanghai Urban Construction Group. L&T’s share in the project stands at RS 852 crore.

CW Group Coal Week CemWeek BMWeek INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

New orders for L&T Construction Larsen and Toubro’s construction arm, L&T Construction, has received new orders that are worth RS 1, 063 crore from varied industries. The L&T arm Building and Factories IC secured orders worth RS 644 crore for construction of a permanent campus facility for IIT at Hyderabad.

The project involves construction of faculty and staff housing, student halls, dining halls including ancillary, engineering blocks and other related works. The Water & Effluent Treatment Business Unit of L&T Construction has also bagged new orders worth RS 371 crore, which includes construction of a lift irrigation system at Hanamapur, Karnataka. The Infrastructure IC secured orders worth RS 158 crore for railway construction works consisting of doubling of railway lines between Villupuram and Dindigul section in Madurai division of Southern Railway.

LoI for IL&FS IL&FS Engineering and Construction bagged a Letter of Intent (LoI) from Mahindra Lifespace Developers for civil works worth RS 120 crore. The project involves development of residential project Ashvita, which will include five towers and clubhouses and other civil works at Kukatpal-

Construction materials: infrastructure & projects

ly, Hyderabad. The company also bagged a LoI from Emaar-MGF to construct the Palm Terraces Select Housing Complex in Gurgaon. The project also involves finishing and low-side services works of residential, basements, compounding wall, civil structure and other miscellaneous works.

WB to fund road project in Assam The World Bank signed an agreement with the government in Assam to provide US$320 million or RS 1,760 crore for improving secondary road network in Assam. The project will be executed through the assistance of the Public Works Road Department and is aimed at enhancing the road connectivity in Assam. The project will be implemented over a period of six years.

Ezzy to invest in real estate market Ezzy Group, an infrastructure and property management company, announced its entry in the Indian real estate market.

The company is going to invest RS 5,000 crore in the next couple of years. The company has already set aside RS 500 crore for both residential and commercial projects

in India and has vowed to offer something unique to the Indian realty market. update on PROJECTS highway projects await funding National highways projects worth RS 25,000 crore are waiting funding and seeking extension of financial disclosure deadline. All these projects constitute 23 packages and involve 2,500 km of construction.

The extensions are sought due to numerous reasons such as land, environment and other related clearances. This has also slowed down the award pace of the NHAI as it awarded just over 600 km of highway projects in first two quarters of the fiscal year as against the ambitious target of 9,500 km set by the prime minister. shipyard to begin operations The Katupalli shipyard in the north of Chennai, which belongs to L&T Ship Building, is all set to begin its commercial operations in the current quarter. The 3,375 crore project is being funded in a debt-to-equity ratio of 75:25. However, the

cost of the project increased by 614 crore due to widening of scope.

J&K drainage project online Jammu and Kashmir Chief Minister Omar Abdullah recently inaugurated a 23.50 km Rawalpora-Tengpora Storm Water Drainage Scheme. The drainage scheme implemented by the Jammu and Kashmir Economic Reconstruction Agency (ERA) and constructed at a cost of RS 69.50 crore has network spread over an area of 3.50 square kms and has a discharge capacity of 68 cusecs during storm conditions.

Financial closure for Ramky Ramky infrastructure achieved financial closure for RS 1,103 crore Hospet-Chitradurga tollway road projects in Karnataka. Ramky closed finances through debt syndication of RS 830 crore. The company signed an agreement between HospetChitradurga Tollways and a consortium of banks. Ramky Infra was awarded the project by National Highways Authority of India (NHAI) to undertake four laning of Hospet-Chitradurga section of NH-13 in Karnataka. BMWeek CemWeek CW Group Coal Week

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

BMWeek BMWeek

CemWeek CemWeek

CW Group CW Group

Coal Week Coal Week

CW Group Week CemWeek BMWeek NOVEMBER / DECEMBER 2012Coal33 CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

construction materials

E

quipment updates

New Volvo dump truck available for India’s mining industry. First hybrid excavator is unveiled by Caterpillar in the U.S. and Chinese-based Comansa Jie exhibits its 21 CJ 400 Flat-Top tower crane and 110k winch at the bauma China construction show in November.

New dump truck for mining in India Volvo introduced the FM 480 10x4 Dump Truck to carry out mining applications in India. The truck is built specifically for deep opencast mining in India. The new truck from Volvo is built on the powerful and reliable Volvo FM 13-litre platform.

This new launch from the company is considered to be the next big game changer in the mining arena. The FM 480 10x4 Dump Truck is a 5-axle truck and features the most technologically advanced powerful driveline, best-in-class 2400 Nm torque, delivering 480 HP, power-to-weight ratio of 7.38 and robust body for tough mining applications.

Largest all-terrain crane chassis XCMG successfully rolled off the production line the world’s largest all-terrain crane chassis — QAY1600. The QAY1600 marks China’s entry in the development of the extra-large tonnage all-terrain crane chassis. The new 9-axle all-terrain crane chassis is independently developed by XCMG and features a high-performance hydro-pneumatic suspension system. It also features all-wheel, multi-mode electric-hydraulic steering for on the stop and crab steering. It also has a multi-axle drive technology which eases travelling with a load.

34 NOVEMBER / DECEMBER 2012

New Tail Swing Excavators Yanmar Construction Equipment introduced the latest line of their popular ViO30/35 mini excavators. The launch came as a result of significant increases in fuel efficiency and usability. The new series, positioned in Japan’s high-volume 3-3.5 ton class true zero tail swing excavator, is known for its operator comfort, ease of use and fuel efficiency.

First hybrid excavator Caterpillar unveiled its very first hybrid excavator — the Cat 336EH — at its headquarters in Peoria, Illinois. The new excavator is the first in the upcoming line of hybrid excavators. The company is all set to launch the new excavator in April at the Bauma International Trade Fair in Munich, Germany. The 336EH features new hydraulic hybrid technology, which allows the excavator to get to 25 percent greater fuel efficiency. With 98 percent of its components currently standard, the new excavator from Caterpillar is the largest hybrid excavator in the world.

CW Group Coal Week CemWeek BMWeek INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

New hybrid excavators Lishide launched new hybrid excavators — the 76t and 23t hybrid excavator. The two new products from Lishide have greatly improved the market competitiveness of China by breaking the technical barrier of foreign products. The 76t excavator adopts the famous engine and hydraulic system, high-strength wear-resistant material, low noise, fuel economy and high system stability, while the 23t hybrid excavator adopts hydraulic energy storage technology and has an energy saving capacity up to 15%-20%.

New wheel loader Komatsu Europe launched the new WA380-7 wheel loader. The WA380-7 features improved efficiency, enhanced serviceability, lower fuel consumption, improved operator comfort and other fea-

tures to maximize productivity and reduce operating costs. The 17,910 kg loader contains a net horsepower of 91 hp and is powered by a Komatsu SAA6D107E-2 engine.

It also features the latest KOMTRAX technology that sends machine operating information to a secure website using wireless technology. This feature reduces the risk of machine theft and allows for remote diagnosis.

D61-23 Crawler Dozer Introduced Komatsu Europe International introduced a new line of D61-23 crawler bulldozers.

Powered by S3B engine technology, the new crawler dozers use the popular design of D51-22. The new crawlers are refined with up to 20% reduction in fuel consumption and provide more owner-and-operator focused features. The crawlers also feature new longer track-on-ground standard (EX) and low ground pressure (PX) that offer customers flotation and weight distribution options. The crawlers are bundled to increase productivity and to push efficiency to new levels.

New crawler crane Terex Cranes introduced a new crane called the 3800 Superlift. The new lattice boom crawler crane has a lifting capacity of 650 tons. The company introduced the crawler crane as the successor to the CC 2800-1 Superlift. The new crane is delivered with an integrated wind kit in a universal main boom system and is capable of erecting wind turbines of 117m without using the superlift boom configuration.

New compact excavators To celebrate the 25th anniversary of the Bobcat range of compact excavators, the

company launched enhanced standard versions of the company’s popular ton excavator — E16 model and E16 ‘Facelift’ models. The new machines feature exceptional operator comfort and more powerful performances than the previous machines.

Both the excavators are powered by a 3-cylinder 9.9 KW Kubota D722 engine and have the ‘cylinder-over-boom’ design.

Due to their compact size, the excavators can be transported easily on a trailer towed by a small truck.

Comansa Jie Shows Off Flat-Top Comansa Jie, the Chinese subsidiary of Linden Comansa is all set to exhibit a 21 CJ 400 Flat-Top tower crane and 110k winch at the bauma China construction show to take place in November in Shanghai. The 21 CJ 400 has a maximum load capacity of 18 tons, maximum jib length of 80 meters and can load 3 tons. Its 1450 meters of wire winch drum capacity is useful for high-rise construction and other industrial applications. Fuwa is also expected to launch the first models in a new crawler crane range from 55 to 285 tons capacity, which the company plans to market worldwide.

Tallest concrete pump Chinese concrete machinery manufacturer Zoomlion unveiled the tallest concrete pump in the world. The new pump has a reach of 101 meters with a 7-section boom; the last 4 sections are made up of carbon fire. The pump was developed by Zoomlion and its Italian construction equipment subsidiary Cifa. The new pump is mounted on a normal truck chassis and not on a special vehicle. This means that the pump complies with the maximum dimensions and footprints for road transport. BMWeek BMWeek BMWeek

construction materials: EQUIPMENT UPDATES

Siemens Kicks Off Integrated Drive Systems Siemens Drive Technologies kicked off its Integrated Drive Systems to highlight the energy efficiency benefits of its comprehensive and custom engineered product and service offerings, including gearboxes, couplings, motors and drives through a single source. The program offers end users, EPCs and OEMs the ability to reduce operational costs and improve engineering effectiveness.

Siemens plans to focus its integrated drive systems program on vertical markets for oil and gas and mining and cement industries.

Additionally, Siemens will support integrated drive systems in other markets, such as metals, power generation, water/wastewater, pulp and paper and general manufacturing.

Doug Keith, President of Siemens Drive Technologies Division, highlighted several benefits of integrated drive systems. “Our integrated drive systems help to simplify the vendor process to maximize existing design specifications, yet ensure that projects are engineered without a waste of dollars, time and resources. Additionally, we are able to increase the speed and implementation of project development and commissioning, enhance design efficiencies and ensure the best, and most appropriate, components throughout the system,” said Keith.

Siemens will support its Integrated Drive Systems initiative with a global team of trained and certified industry experts who handle consultation and proposals, delivery, installation, maintenance and service. The company will incorporate PM@Siemens within the offering, an extensive global training and certification program with methodology based on the essential success factors for project management. Additionally, the company can fully support customized configurations for integrated drive systems, and with its localized manufacturing and service footprint, can quickly service the needs of its customers.

CemWeek CemWeek CemWeek

CW Group CW Group CW Group

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

Coal Week Coal Week Coal Week

CW Group Week CemWeek BMWeek NOVEMBER / DECEMBER 2012Coal35 CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

market impact

c

oal updates

Coal prices are expected to top the US$100/ton threshold in the first quarter of 2013. Several companies have been forced to shutter mines and lay off workers. Mozambique aims to export 10 million tons of coal to India a year, and China’s coal industry plans a makeover.

For the first time in months, coal industry executives are talking about demand comeback and price reinvigoration. Coal is expected to pass once again over the US$100/ton threshold in the first quarter of 2013. Meanwhile, still-depressed coal prices coupled with higher production costs continue to hurt the industry.

More companies have announced mine shutters and labor layoffs in recent weeks.

Centennial Coal is closing two coal mines (Mannering and Airly) in January 2013, while also deferring the expansion of its Newstan project in Australia. Peabody

Energy is shutting down its Willow Lake Mine due to failure to meet safety standards, while Solid Energy is putting the lid on the Spring Creek mine. Also, Coal & Allied is about to reduce the workforce at the Bangalla mine in the Hunter Valley, blaming the cuts on high labor rates that render market conditions difficult when compared to those in other majors, e.g. the United States.

Disparate positive signs, meanwhile, come to support the increasing optimism that exists within the market, with Southern Coal being one of the first companies to

recall its workers. Moreover, the company announced that it also will hire another 650 employees after it secured a multiyear contract to supply coal to American Electric Power.

India continues to be in the forefront of industry concerns as high production costs and elevated coal import prices are viewed as forcing coal prices to increase by between 8 and 21 percent within a fiveyear time frame (8 percent in 2012-2013, 21 percent in 2013-2014, 16 percent in 2014-2015 and 7 percent in 2015-2016).

CIL forecasts that only in 2016-2017 will the company be able to meet in full the power sector’s fuel needs, after having been forced to import a total of 120 million tons until reaching self-sufficiency.

Building on increased needs coming from India, Mozambique announced that it is aiming to export about 10 million tons of coal per year to the hungry Indian industries. Mozambique also is expanding its terminal capacity at Grindrod to 20 million tons, the initiative being an increasingly important route for South African companies that have been struggling due to congestion at the level of railways ship-

36 NOVEMBER / DECEMBER 2012

CW Group Coal Week CemWeek BMWeek INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

market impact

B c

ulk material handling

BDI will be complemented by a new Shanghai Shipping Exchange Index. Statistics for 2012 show Chinese shipping industry at lower volumes. Hong Kong is urging Iran to register 19 of its dry bulk carriers elsewhere. In India, the Kolkata Port Trust announced that it is moving ahead with the capacity augmentation and the RFP for Haldia Dock II, where it plans to add 23.4 million tons in capacity.

The Baltic Dry Index needed a bit more than one month to reverse its latest declining trend, which started on October 23.

Decreasing from the top value of 1,109 to a depressed 916, noted in the first week of November, the index regained strength and once again reached comparable values (1,104) by the end of November.

Going forward, BDI will be complemented by a new Shanghai Shipping Exchange Index that was officially launched on November 28. China Dry Bulk Import Index and China Oil Import Index aim to provide insight into shipping prices specific to the world’s largest consumer of commodities, while viewed from the perspective of carriers, freight brokers and cargo owners. The launch of the indices marks a major milestone for Shanghai, which is focusing on becoming an international shipping hub equipped with the best global shipping resources by the end of 2020.

However, 2012 statistics still keep the Chinese shipping industry at lower volumes.

During the first three quarters of the year, the completed ship capacity by builders declined by 18.5 percent to 41.6 mil-

lion deadweight tons, while new orders dropped by almost 50 percent to 15.4 million deadweight tons. Also, new canceled orders plugged the industry. Due to delivery delays, Ultrabulk canceled an order for bulk ships that was supposed to be fulfilled by Zhoushan Jinhaiwan Shipyard.

Ultrabulk signed a new agreement with a Japanese company to secure an ECOdesigned Supramax bulker of 61,000 tdw.

Delivery is set for 2015.

Japan’s Kawasaki Kisen is another company that placed its dry-bulk fleet expansion on hold. The expansion to 300 vessels from about 250 has been postponed at least until March 2018, considering that BDI tumbled around 40 percent in the past year. Still on the negative side, Hong Kong announced that it deregistered five Iranian cargo ships with another 14 other cargo ships likely to follow. Hong Kong’s marine department urged the Iranian company to register its 19 dry bulk carriers elsewhere, given that

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

CW Group CemWeek BMWeek NOVEMBER / DECEMBER 2012Coal37Week CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

regional news

Pakistani cement manufacturers encounter more obstacles exporting to India as an overall decline in sales for October is seen. The Sri Lankan government wants to see a greater increase in cement production to meet growing demand. TEE International (TEE) and Ayeyarwaddy Cement (AYWD) sign a joint-venture deal to set up a cement plant in Myanmar while Siam Cement Group (SCG) puts the brakes on their construction plans in the country.

Pakistan More bad news for Pakistani cement makers exporting to India. Already struggling with the complicated and high cost process of quality certification need for exporting to India, manufacturers must now secure a guarantee for shipments.

A letter issued by the Bureau of Indian Standards (BIS) to all foreign cement manufacturers including those from Pakistan, said cement exporters would have to submit a US$10,000 Performance Bank guarantee in order to be qualified for exporting cement to the country.

38 NOVEMBER / DECEMBER 2012

For manufacturers, this represents yet another non-tariff barrier imposed by the BIS to restrict cement exports. This is despite the fact that Pakistan is to be accorded most favored nation (MFN) status by India effective January 1, 2013.

In October, overall sales dipped 5.87 percent in Pakistan mainly due to the 20.59 percent decline in the export of cement.

The All Pakistan Cement Manufacturers Association reported that the cement industry sold 2.767 million tons of cement in October 2012 that was 5.87 percent less than 2.939 million tons sold in the corresponding month of 2011.

CW Group Coal Week CemWeek BMWeek INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

Exports to India declined by 37.51 percent to 0.158 million tons. In contrast, exports to other destinations through sea increased by 2.34 percent to 1.161 million tons.

Sri Lanka The Sri Lankan government wants to see an increase in cement production given that demand for the building material is on the rise. The government says the pace of overall infrastructure development in the country is on the rise. In 2011, the production of cement in the country was 2,446,198 million tons (MT) valued at RS 18,920 million. Cement production in 2012 was 1,737,365 MT valued at RS 1,999,832 million.

continued from page 41

continued from page 40

the Korean Register of Shipping refused to provide the ships with safety auditing.

ping leading to terminals.

Local cement production meets only 48 percent of the country’s needs. According to the report, in 2011 Sri Lanka imported 2,576,495 MT of cement at a cost of RS 36,828 million. In 2011, the consumption of cement in the country was 5.02 million MT, which is an increase of 4.82 percent over the previous year.

One of the most discussed topics within the Indian shipping sector, the controversial exit of Haldia Bulk Terminal from Haldia Dock, appears to have had no effect upon the expansion plan proposed by the Kolkata Port. The Kolkata Port Trust announced that it is moving ahead with the capacity augmentation and the RFP for Haldia Dock II, where it plans to add 23.4 million tons in capacity. In other news, Adani Ports and the Special Economic Zone expressed interest in acquiring a stake in the Visakhapatnam Port in Andhra Pradesh in order to bolster its presence on the country’s eastern coast.

Holcim Sri Lanka is jumping in to do its part. The company announced it will invest US $20 million to develop its grinding capacity at the Ruhuna plant in Galle in order to meet the future demand in emerging markets. Vice President of Marketing and Sales Viraj Gunasekera indicated the grinding capacity will be increased by 600,000 tons once the work is completed in 2013. At present, the production stands at 400,000 tons per annum.

According to Gunasekera, hotel chains have started construction in the North and East and rapid growth in the demand for cement over the next 2 to 3 years is projected. The GDP growth of the country is expected to remain at 6 to 7 percent and demand for cement will trend a little higher.

Holcim will also set up another packing plant in Trincomalee with an investment of US $4 to 5 million next year.

Myanmar TEE International (TEE) has inked a memorandum of understanding (MoU) with Ayeyarwaddy Cement (AYWD) to develop and operate a cement plant in Myanmar.

At the level of ports, staffing issues led to crippling strikes at the Port of Los Angeles.

Seven of eight terminals were affected by the strike, along with three of the six terminals from the neighboring Port of Long Beach. The strike is considered to be the largest work stoppage in a decade.

Another major port building project has been undertaken by APM Terminals, which is developing a deepwater full-service port in Lagos State, Nigeria. Also, Transnet set its sights on a captive coal terminal that it plans to build at Richards Bay with the objective to assist emerging or junior miners in the coal industry to ship their products. BMWeek CemWeek CW Group BMWeek BMWeek

CemWeek CemWeek

CW Group CW Group

AYWD is a subsidiary of the A1 Group of Companies, one of the leading conglomerates in Myanmar.

TEE and AYWD plan to set up a joint venture company to invest in a 3,000ton integrated cement plant, and TEE intends to take a controlling stake in the proposed tie-up.

In other news, the Siam Cement Group (SCG) has delayed its plan to build a

Returning to India’s major, CIL also is considering a change in its reporting norms to reflect sales instead of production. The company has been focusing so far on increasing production levels, which has led to a growing stockpile given the more reduced focus set on the actual sales. Thus, CIL proposed to the government to keep sales as the sole performance parameter of the company. If the proposal is approved, the 2013-2014 target might be set at 487 million tons of coal to be dispatched.

China is embarking on a major refurbishing of the coal industry from the perspective of its prices. A plan to liberalize fully the country’s thermal coal-pricing mechanism was submitted by the National Development and Reform Commission (NDRC) to the State Council. The new policy would encourage coal market players to ink three- to five-year contracts, as opposed to the annual thermal coal contracts closed currently. The envisioned liberalization also would lead to an increased opportunity for external coal producing companies, which could sell their products more easily on the Chinese market that no longer would be kept artificially on minimal levels. On another note, China just approved the largest integrated coalfield — East Junggar — that owns a predicted coal reserve of 390 billion tons and a proven Coal Week reserve of 213.6 billion tons.

BMWeek coal Coal Week Coal Week

BMWeek BMWeek

CemWeek CemWeek CemWeek

cement plant in Myanmar pending the country’s new foreign investment law. The law was signed by President Thein Sein in November but will not be implemented for another three months.

“We have no rush and can wait longer until Myanmar is ready because we want to be a long-term investor in Myanmar and other Asean countries,” president and chief executive Kan Trakulhoon said. BMWeek CemWeek

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

BMWeek BMWeek

CemWeek CemWeek

CW Group Week CemWeek BMWeek NOVEMBER / DECEMBER 2012Coal39 CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

CW Gro CW Gro CW Gro

analyst recommendations ACC Limited (ACC) ACC’s latest financial report reflects that the company is expected to perform in line with the expected returns of the market.

ACC’s Q3CY12 EBITDA increased 97 percent to RS 435 crore but the company saw a decline in its sales volume due to muted demand in the south and southeast regions and a lean construction period because of delayed monsoon. The company’s net sales increased 9 percent YoY reaching RS 2444.5 crore in Q3CY11. Emkay Global Financial Services, based on earnings upgrade gave an “ACCUMULATE” recommendation, and a target price of RS 1,510, upgrading it from the current market price (CMP) of RS 1,416. ICICI Direct, on the expectations of an increase in sales volume, called for a ‘HOLD” on ACC with a price target of RS 1,520/share.

than forecasted in 2QFY13 as the company achieved an EBITDA per ton of RS 1,069 versus the estimated RS 1,000 per ton. The positive results are mainly because of the higher than estimated realizations cost, which negated the impact of an increase in input costs.

INDIA CEMENTS TD (ICL) Kotak Securities has retained a “REDUCE” rating for ICL with a target price of RS 92.

The company reported lower than estimated operating margins due to an increase in variable costs. Religare Finvest Limited has also downgraded its rating to “HOLD” on ICL based on a limited upside, concerns related to margins and South India demand outlook. Kotak Securities expects the stock to be re-rated once demand improvement commences in the southern region, where ICL is the largest producer.

SHREE CEMENT (SRCM) Motilal Oswal Securities has maintained a “BUY” recommendation on SRCM’s stock with a target price of RS 4,694. Kotak Securities also called for a “BUY” rating for SRCM stock, with a target price of RS 4,557.

Motilal gave the “BUY” rating mostly considering the better than estimated operating performance and EBITDA, driven by higher-than-estimated volumes and realizations in cement and merchant power business.

ICICI Direct also recommended a “HOLD” rating for SRCM with a target price of RS 4300/share as it consideRS the company to be better placed in terms of demand and utilization rates.

ULTRATECH CEMENT (ULTRACEMCO) Motilal Oswal Securities has maintained a “BUY” recommendation on UltraTech with a price target of RS 2,050 as against a CMP of RS 2,010. UltraTech registered 20 percent increase in its net sales on a YoY basis amounting to RS 4699.6 crore. The company’s performance has been better

40 NOVEMBER / DECEMBER 2012

AMBUJA CEMENTS (GUJAMB) Motilal Oswal Securities has recommended a “BUY” rating on GUJAMB’s stock, with a target price of RS 208 against a CMP of RS 204. Motilal Oswal maintained a “BUY” rating based on better than estimated operating performance in 3QC12 and reported an EBITDA of RS 565 crore versus the estimated RS 550 crore.

The company registered a healthy revenue growth of 20.1 percent YoY as a delayed monsoon period led to lower seasonal price dips. However, sales volumes declined 0.6 percent due to sluggish demand from construction activities. Emkay Global Financial Services and ICICI Direct recommend “HOLD” rating as Ambuja Cement’s numbeRS were in line with their estimates.

ratings changes Date

Broker

Company

Rating

Target Price (Rs)

Current Market Price (Rs)

6-Nov-12

Emkay Global Financial Services

India Cement

Hold

92

98

6-Nov-12

Kotak Securities

India Cement

Reduce

92

97

5-Nov-12

Religare

India Cement

Hold

110

97.5

19-Oct-12

Emkay Global Financial Services

ACC

Accumulate

1,510

1,416

19-Oct-12

ICICI Securities

ACC

Hold

1,416

1,416

18-Oct-12

Motilal Oswal

ACC

Neutral

1,436

1,420

19-Oct-12

Emkay Global Financial Services

Ambuja Cements

Hold

210

207

18-Oct-12

Motilal Oswal

Ambuja Cements

Buy

208

204

19-Oct-12

ICICI Securities

Ambuja Cements

Hold

203

203

16-Oct-12

Emkay Global Financial Services

Shree Cement

Accumulate

4,420

4,058

17-Oct-12

ICICI Securities

Shree Cement

Hold

4,058

4,058

17-Oct-12

Kotak Securities

Shree Cement

Buy

4,557

4,058

16-Oct-12

Motilal Oswal

Shree Cement

Buy

4,694

4,049

22-Oct-12

Emkay Financial Services

UltraTech Cement

Hold

1,950

2,011

22-Oct-12

ICICI Securities

UltraTech Cement

Hold

1,964

1,964

20-Oct-12

Motilal Oswal

UltraTech Cement

Buy

2,050

2,010

CW Group Coal Week CemWeek BMWeek INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

Most popular on CemWeek.com The most-read stories on CemWeek over the past two months reflect the industry's mixed outlook. The India column shows the 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 Votorantim CEO Schalka to step down in late November

1

CRH terminates talks for Jaypee stake

2 Eagle Materials acquires Lafarge unit in Sugar Creek

2

Report: Mittal eyes foothold in cement industry

3 Holcim signals it may sell off assets in Europe

3

Aditya Birla now in talks to buy out Jaypee units

4 UK: Sacci using cutting edge tech to produce cement

4

JK Lakshmi set to revive Udaipur plant

5 Russia: Omsk cement hub operational by November

5

India: Cement firms express interest in Madhya Pradesh

6 Fitch Ratings assigns ratings for Cemex senior notes

6

India cement makers start hiking prices

7 Italcementi upgrading Rezzato unit

7

India’s Lanco to set up cement plant

8 China cement production hits record in September

8

India: Fire hits cement plant in Madukarai

9 Egypt poised to issue 7 new cement licenses

9

India’s JSW to double cement output

10 Egypt cement prices increased in September

10

Indepedent directors question Holcim’s Ambuja royalty push

11 TEE to build cement plant in Myanmar

11

Mittal buys Lafarge-Tarmac UK venture

12 Cement exports lead Egyptian shipments

12

Report: Binani Cement shelves project in Mauritius

13 Egypt insists new cement plants should have own power

13

Ambuja Cements may see profits surging in Q3

14 Angola: Cimenfort to launch product in December

14

Pakistan to monitor cement shipments to India

15 Coboce increases cement production

15

India: Cement firms hiking prices as demand rises

RESEARCH

The CW Group publishes a series of unique data-rich reports on a periodic basis for the global cement sector. These must-have reports for cement traders, analysts, investors, equipment vendors are indispensable in understanding changing market conditions, monitor the latest cement prices, stay up to date on new cement capacity projects among many other key outlook and competitive dimensions. The reports are available on an annual subscription basis.

Contact us at sales@cwgrp.com to learn more.

Global Cement Market Data Service

Global Cement Retail Price Report

Global Cement Trade Price Report

Global Cement Volume Forecast Report

Cement Plant & Capacity Monitor

Statistical update on key cement markets worldwide

Comprehensive report on local retail cement prices worldwide

Detailed data and chart report on cement prices

Current and outlook for cement volumes

Tracking new cement plants and expansions

$475 per user / year

$1,200 + S&H per user / year

$2,300 + S&H per user / year

$1,200 + S&H per user / year

$1,300 + S&H per user per year

Rolling monthly updates (Monthly updates)

Quarterly updates (4 updates per year)

Quarterly updates (4 updates included)

Semi-annual updates (2 updates included)

Updated every 2 months (6 updates included)

48 countries covered*

25 key markets

70+countries covered*†

Individual countries & global

Global scope, ex-China

■■ ■■ ■■ ■■

Cement consumption Cement production Cement trade and/or Select cement prices

Online (CemWeek.com)

■■ Actual retail prices per bag ■■ Range of prices and avareges ■■ Gray and/or white cement ■■ Weekly price data points Hard copy

■■ ■■ ■■ ■■ ■■

Gray, white and / or clinker Monthly import prices Monthly export prices Regional price indices Monthly trade volumes Hardcopy

■■ ■■ ■■ ■■

3-year volume outlook Historical volumes Capacity utilization Annual volumes Hardcopy

■■ ■■ ■■ ■■

New cement plants Plant expansions Overview of project Location details Hardcopy

* Subject to change; † Actual country data reported on different lags; S&H: Shipping and Handling for reports distributed in physical hardcopy;Discounted group and corporate rates available upon request

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