India Cement & Construction Materials (vol 1 / issue 22-23) by CemWeek

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Cement & construction Materials

CW RESEARCH

India emerges as bright spot on global cement market GCVFR 1H2015-Global Cement Volume Forecast Report

FEATURE FEATURE

CW GROUP Expands With India Office & Adds Advisory Team Members

Management Risk in Construction Contracts FEATURE

FEATURE

India infrastructure projects lag behind political promises

India debuts E-Auctioning For Coal Blocks News

Analysis

Market optimism remains unfazed

Market Coverage

Interviews

People

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FEATURES 5

India emerges as bright spot on global cement market

GCVFR 1H2015-Global Cement Volume Forecast Report

11 India debuts E-Auctioning

EDITORIAL LETTER

NUMBERS IN BRIEF

INDIAN COAL: OVERVIEW

17 CW GROUP Expands With India Office

54 ANALYST RECOMMENDATIONS

Management Risk in Construction Contracts

research and analytics

Cement & construction Materials

www.cemweek.com/india

Energetic year opening for India’s cement and construction sector

For Coal Blocks

And Adds Advisory Team Members

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29 India infrastructure projects lag behind political promises Market optimism remains unfazed

cement

rOBERT MADEIRA cemweek publisher head of cw group research

Abhishek Jayakumar Editorial Coordinator Advertising Sales Consultant

RALUCA NEAGU project manager

SILVIU STEFANESCU rALUCA CERCEL Sushmita Rai contributing analysts

31 cement volumes

39 MARKET AND COMPETITION

34 coal market update

41 M&A and FINANCE

35 energy price update

43 PROJECTS AND EXPANSIONS

DESIGNERS

45 VOLUME AND PRICING

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construction & building materials 52 INFRASTRUCTURE & PROJECTS

New residential project in Gurgaon

47 PEOPLE 48 REGIONAL UPDATE 50 EQUIPMENT HIGHLIGHTS

CRISTIAN DUMITRU Santosh shettye

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letter from the editor

Energetic year opening for India’s cement and construction sector n the new issue of the India Cement & Construction Materials magazine we cover several major developments taking place in the region. The impact of the Indian coal auctions on the cement industry, India’s emergence as a booming player on the global cement market, the infrastructure prospects laid out by the country’s new ruling politicians and CW Group’s new office opening in Mumbai are among the main topics covered in the magazine.

mates a 6.7 compound annual growth in consumption for India between 2014 and 2019, a positive outlook shared by several Asian countries. India emerges to be the rising star on the region’s cement market, as both its capacity and consumption are projected to continue growing robustly in 2015 to 2019, at a CAGR higher than 5 per cent. Per capita consumption in the world’s second largest cement market will also increase by more than 30 percent until 2019.

After the “coal scam” scandal that took over the Indian industrial sector, the auctions for the allocation of coal blocks and mines by the government have begun, being expected to become the norm in the industry. “Coal gate” forced a complete overhaul and evaluation of the process by which India’s mineral wealth is extracted, processed, and sold. It is expected to revolutionize the way the government intends to allocate coal blocks and mining licenses going forward. The details of the process are laid out in the new issue of the magazine, along with the first reactions to the new bidding process.

Cement consumption in India is expected to get a boost from a variety of government initiatives such as the clean India campaign, concretization of roads and affordable housing construction projects in various cities, which are expected to positively impact demand by over 40 million tons per year.

Another major topic of this issue of ICCM is the Indian cement market, which shows strong signs of sustained growth in the next five years, according to the new 1H2015 Quantitative Update to the Global Cement Volume Forecast Report. The document recently published by CW Research esti1

JANUARY - APRIL 2015

Confidence has yet to be backed by visible infrastructure developments, as spending has so far failed to reach the promised levels. New Prime Minister Narendra Modi last summer announced he would increase spending on projects such as roads and ports by over 20 percent, to 5.75 trillion rupees, in the fiscal year through March 2015. In the nine months ending December expenditure amounted to 3.5 trillion rupees, a very similar level to the one reported in the previous fiscal year. It remains to be seen how efficient will the rather sluggish local bureaucracy be in implementing

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

governmental investments. The new issue of ICCM magazine analyses the promises made by the new ruling politicians in India and the actions they have taken so far. As Indian infrastructure and related industries show solid growth, CW Group has expanded its presence in the country by opening a new branch office in Mumbai. The new issue of ICCM has all the details about the new office, which became operational in February and will be conducting advisory projects and research reports, complementing CW Group colleagues in in Romania and other places in the world. To further enlarge the area of expertise and consultancy capacity, the advisory board of the Indian CW Group branch will be joined by two senior experts with an extensive background in the cement industry.

Robert Madeira

Publisher and Head of Research

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NUMBERS INDIAN COAL: OVERVIEW

COKING COAL (MN TONS) Official Demand

Apparent Demand

Production

Import

2009

2010

2011

2012

2013

Source: CWCentral Statistics Office, Ministry Of Statistics & Program Implementation India, CW Research

Difference in official and derived demand

2014

Although official demand statistics correlate closely to domestic production, the derived apparent demand shows a different picture. Over the past three years (2012 - 2014), the variation between what the Ministry of Coalâ&#x20AC;&#x2122;s expectation of demand for coking coal in India and that of the derived demand is been on an average 37.2 mmt.

CEMENT PRODUCTION (MN TONS) Coal Demand 45 40 35 30 25

200

20 15 10 5

2012

2013

2014

2015E

2016E

Source: CWCentral Statistics Office, Ministry Of Statistics & Program Implementation India, CW Research

400

Coal Demad (Mn Tons)

Cement Production (Mn tons)

Cement Production

With cement demand set to increase in the coming years, the demand for coal in the cement industry is set to increase. The issue on the minds of market players is two-fold; firstly, whether enough coal blocks will be allocated to the cement industry, and secondly, if production from those blocks will be suffice to offset need for most imports.

NOVEMBER JANUARY - APRIL - DECEMBER 2015 2014 INDIA CEMENT INDIA CEMENT & CONSTRUCTION & CONSTRUCTION MATERIALS MATERIALS MAGAZINE MAGAZINE

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GCVFR 1H2015 Global Cement Volume Forecast Report

India emerges as

bright spot on global cement market

JANUARY - APRIL 2015

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

he Indian cement market is showing strong signs of sustained growth in the next five years, according to the new 1H2015 Quantitative Update to the Global Cement Volume Forecast Report. The document recently published by CW Research estimates a 6.7 compound annual growth in consumption for India between 2014 and 2019, a positive outlook shared by several Asian countries.

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feature Positive Asian Prospects Despite the slowdown in some Asian economies like China, future growth prospects still look promising and construction spending is expected to grow at above the regional average in China, India, Vietnam, Indonesia and Thailand. According to the latest Quantitative Update to the Global Cement Volume Forecast Report Construction, these countries are expected to have the largest spending during 20142019. India emerges as the rising star in the region’s cement market, as both its capacity and consumption are projected to continue growing robustly in 2015 to 2019, at a CAGR higher than 5 percent. Per capita consumption in the world’s second largest cement market will also increase by more than 30 percent until 2019. The expectations are encouraged by the plans of the new government elected in May of 2014, which has embarked on an ambitious infrastructure focused development trajectory. “India has emerged as a bright spot and demand is expected to be

robust 2015 onwards ,” said Prashant Singh, Associate Director with the CW Advisory team. Cement consumption in India is expected to get a boost from a variety of government initiatives such as the clean India campaign, concretization of roads and affordable housing construction projects in various cities, which are expected to positively impact demand by over 45 million tons per year. However, the Chinese cement market is expected to slow down in the coming years. Consumption expanded by only 3 percent in 2014, and a similar rate is expected this year. The decrease is stimulated by the Chinese government cutting back manufacturing capacity as the country has long been struggling with the risk of overcapacity, also exacerbated by the economic

slowdown. However, Chinese per capita consumption is still projected to grow by over 6 percent between 2014 and 2019. CW Research expects China’s outlook to be supported by the resilience of its growth in the past years. Other notable Asian countries from the construction viewpoint are Indonesia and Thailand. Residential and infrastructure construction projects make the bulk of the spending in these countries. Due to theOlympics, Japan is expected to experience large-scale growth in construction spending until 2018. Consumption and Capacity At a global level, the CW Research report update sees cement consumption slowing through 2019, with a conservative view

India has emerged as a bright spot and demand is expected to be robust 2015 onwards

Source: CW Research

Heatmap: Global 2015 YoY Outlook Growth

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INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

on Chinese demand growth. The forecast has been revised down from the previous report update which estimated a 3.7 percent CAGR between 2013 and 2018 due to the reduced consumption in Western and Eastern Europe. Other key markets such as India, United States, Brazil, and Vietnam are expected to rebound in 2015. Worldwide annual cement production ca-

pacity in our GCVFR country universe is expected to reach 5.5 billion tons by 2018. The largest increases, in excess of 10 percent, will come from Egypt, Indonesia, Iraq, Russia, Tunisia and Vietnam. Global average utilization rate is also expected to exceed 80 percent in 2019, as Chinaâ&#x20AC;&#x2122;s productivity recovers following the shut-down of old and inefficient kilns.

2013

North America

Latin America

Western Europe

Central & E Europe

Middle East

Africa

Asia ex-China

China

2014

2015

2016

2017

2018

2019

Source: CW Research

Global Consumption Forecast by Region (2013-2019)

In 2014 we saw various regional risks become the dominant theme, which put the brakes on growth in the global cement markets Global capacity utilization rates have been increasing over the past years from 74 percent in 2010 to almost 80percent in 2015. The percentage is expected to be even higher in China this year, which means that production is very closely aligned with consumption and additional capacity additions are likely will occur in China after the forecast period. Western Europe, Eastern Europe, and the Middle East are projected to have capacity utilization rates between 50 to 60 percent

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feature in 2015. At such low utilization rates, consolidation is a possibility. The global production capacity is expected to grow incrementally between 2014 and 2019, with notable additions expected to take place in China, India, Indonesia, Nigeria, Turkey and Vietnam.

While the US is expected to be the driver of growth among advanced economies in 2015, with an over 3 percent GDP growth, the Euro zone is lagging behind with a 1.2 percent growth in 2014. “In 2014 we saw various regional risks become the dominant theme, which put the brakes on growth in the global cement markets ,” said Robert Madeira, CW Group Managing Director & Head of Research. “No doubt there are pockets of compelling cement volume growth, but the net prospects have deteriorated markedly.”, he added. Main forecast revisions The CW Research report update high-

lights several major negative revisions for 2015. Eastern Europe is one of them, with a 2 percent decrease in the growth outlook driven by Ukraine and Russia. In the case of Russia, the prospects look particularly negative, due to risks posed by the trade embargo, military conflict in Ukraine, the free-falling oil prices and declining Ruble. Other notable revisions in the outlook, ranging from -9.1 to 3.6 percent for the five-year outlook CAGR have been in Iraq, Nigeria and Chile. Large cement markets such as Brazil and Saudi Arabia are also expected to see reduced CAGR’s over the forecast period as they try to overcome macroeconomic and political issues.

Source: www.cement.org

Deteriorating economic landscape Emerging markets continued to drive the global economy in 2014, the frontrunner being China with a 7.4 GDP growth last year, higher than the average GDP growth recorded for emerging economies. Brazil, Russia and Qatar are expected to see strong building activity, mainly from an upturn in housing construction activity, infrastructure and major international sport events. Qatar continues to remain an important market due to the large construction infrastructure projects driven by the 2022 World Cup. China, India, South Africa and South Korea construction sectors continued to grow, but at a more moderate pace in 2014 compared to 2013. Bolivia, Greece and India will be important growth markets due to a wave a construction activity.

Overall, the CW Research report update estimates a moderate slowdown in consumption through 2019, with a conservative view on Chinese demand growth, which naturally drives the global view

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INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

The forecast for the next 5 years has been revised further down from the 2H2014 forecast of 3.7 percent yearly growth between 2013 and 2018, as a result of reduced consumption in Western and Eastern Europe. “Political instability and geo-political tensions may once again take their toll on the cement market, preventing it from performing to the rates we have anticipated in this forecast,” stated CW Group’s Robert Madeira.”

World Consumption Forecast (2009-2019) LH axis: Wold ex-China consumption (mm ton) RH axis: Per capita (kgs)

2009

2010

2011

2012

2013

2014

LH axis: China consumption (mm ton)

2015

2016

2017

2018

2019

Source: CW Research

Overall, the CW Research report update estimates a moderate slowdown in consumption through 2019, with a conservative view on Chinese demand growth, which naturally drives the global view. As a result of the anticipated expected slowdown in Chinese demand from 2014 to 2019, overall global cement demand growth is expected to grow slower than the 6.4 percent experienced from 2009 to 2014.

The Global Cement Volume Forecast Report CW Group’s GCVFR survey is a twice-yearly outlook on cement market tonnage volumes. The report contains global, regional and key market forecasts developed using the CW Group’s in-house data series encompassing production, consumption, imports, exports, and per capita consumption for all countries in the world. The 74-page study also includes capacity outlooks and cement manufacturing utilization rates for major markets. To purchase the 1H2015 Quantitative Update to the Global Cement Volume Forecast Report contact sales@cwgrp.com.

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feature

India debuts e-auctioning for coal blocks

JANUARY - APRIL 2015

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

Source: i.ytimg.com

After the scandal nicknamed the “coal scams” took over the Indian industrial sector, the auctions through which the government intends to allot coal blocks and mines have begun, being expected to become the norm in the industry.

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

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feature he Indian government and the industrial sector both recognized that "coal gate" had taken corruption and fraud to a level hitherto unseen and involved a potential loss of tens of billions of US dollars to the Indian taxpayer. Major changes would be necessary to rebuild the trust in a system that appeared broken. “Coal gate” forced a complete overhaul and evaluation of the process by which India’s mineral wealth is extracted, processed, and sold. It is expected to revolutionize the way the government intends to allocate coal blocks and mining licenses going forward.

According to the judges, the fact that the licenses had been handed out without competitive bidding may have cost the Indian state billions of dollars in potential revenues

In a complete contrast to the previous system when the ministry of mines would allocate mines based on the bidder’s stated ability to mine and use the proceeds for an approved project, the auction system through an online process will take its place. This has prompted industry players from various sectors including steel, power, as well as cement to compete for this valuable commodity. The auction process has been divided into multiple stages, the first leg of the auction having already begun on February 14, with sales expected to conclude by March end. Seventy-four coal mining licenses have to be auctioned initially, but hundreds more will be bid on later on, underscoring the long-term nature of the process.

"without application of mind". It said, "Common good and public interest suffered heavily in the unfair distribution of the national wealth - coal." According to the judges, the fact that the licenses had been handed out without competitive bidding may have cost the Indian state billions of dollars in potential revenues.

The unfolding of “coal gate” On September 24, 2014, the court had ruled that said coal blocks were allotted through an "ad-hoc and casual" approach

Understandably, the Supreme Court’s decision caused havoc across industry sectors, and cement was no exception. Finance Minister Arun Jaitley admitted

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INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

that “the issue needed to be discussed expeditiously as power, steel and cement companies were going to suffer due to non-availability of coal mines”, but that the so-called coal scam was hurting the Indian economy. As part of the decision, the licenses were to be auctioned to private sector companies but only for captive use, a stipulation, which will prevent companies to sell the coal won by auction to others. This came as something of a blow for industry players, who were actually hoping that commercial coal mining would open its doors to private companies. As the Indian economy has expanded, Coal India, the state-run company, which controls commercial coal mining, has come under criticism that it is unable to deal with the task of supplying to the country’s demand for coal, despite the fact that India is sitting on huge coal reserves.

Initial reactions to the new bidding process Coal Ministry spokesperson Rajesh Malhotra said that the “auctions will now be an ongoing process”, mentioning that twenty-four blocks will be auctioned in the first batch. Many feared that the coal block e-auction could turn out to be a fiasco, quoting factors as the absence of non-serious prior allottees, inflated existing mining infrastructure, and the overall difficult economic scenario as possible setbacks. VK Arora, president of the Indian Coal Merchants’ Association, and chairman of the mining and construction division of the Confederation of Indian Industry evaluated that the auctions will suffer from bad timing, given that the industry is not in good shape and does not dispose of cash flows. A promising start On February 14th, the first day of the auction, it came as a surprise that aggressive bids originated from both the power and non-power sector, with four

On February 14, the first day of the auction, it came as a surprise that aggressive bids originated from both the power and non-power sector, with four coal block auctions reaching resolution during the day coal block auctions reaching resolution during the day. Hindalco Industries, an aluminum manufacturer, bid against nine other bidders for the Kathautia mine in Jharkhand, the bidding price being 1,860 Rs per ton. The company now will have to make a payment of Rs 6,800 million for the coalmine benefiting the Jharkhand government.

Reliance Cement won the Sial Ghoghri mine in Madhya Pradesh, previously allotted to Prism Cement. The price per ton was of Rs 1,402, the total payment reaching Rs 7,980 million. The starting point for this particular mine was Rs 1,002 per ton. Reliance Cement is the first cement manufacturer to have won an auction at this stage.

Coal Ministry spokesperson Rajesh Malhotra said that the auctions will now be an ongoing process

Coal mine in Jharkhand

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feature

An iron and steel manufacturer, Sunflag Iron and Steel, won the auction against other 6 other bidders for the Belgaon mine in Maharashtra for the price of Rs 1,785 per ton. Lastly, GMR, an Indian infrastructure developer whose operations range from setting up airports and highways, to urban infrastructure, won the bidding war for the Talabira-I mine in Orissa, paying a total of Rs 13,750 million for the coal block. Hindalco Industries previously exploited this particular last resource. Jaiprakash Associates managed to outbid UltraTech Cement for the Mandla North underground mine during the second leg of the bidding, retaining it for Rs 2,505

per ton. Jaiprakash Associates also outbid Bharat Aluminum and Hindalco for a mine located in Madhya Pradesh. The Trans Mamodar mine, located in West Bengal, was the sixth mine to be bid for, the auction having been won by state run Durgapur Projects, which will now have to pay the state government Rs 940 for each ton of coal it mines. Coal producing states to benefit beyond expectations Indiaâ&#x20AC;&#x2122;s coal mining activities are concentrated in four states, Odisha, Jharkhand, Madhya Pradesh, and Chhattisgarh. Each of these states has large tribal populations, making land acquisition and local approv-

als a difficult process. There is an expectation that the current auctions will be able to change this situation, since they may open up a large revenue stream for the state governments on an annual basis. This capital can then be used for the development of the population displaced by the coal mining. State governments have also traditionally opposed coal mining since it is an unpopular activity with the electorate, yet the incomes that the bids will generate have ensured that state government officials shift their positions. It is worthwhile to mention that the revenues brought about by these mines will not be under the control of the central government.

The full auction process could generate revenues of about US$ 17 billion over the life of the mines, averaging 30 mines

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INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

If the e-auctions stay on track, companies will no longer have to rely on expensive imports from South Africa or Australia The central government has been quick to espouse these benefits to the various state governments. The financial resources that will be generated will be significantly higher that the Centerâ&#x20AC;&#x2122;s budgeted non-plan expenditure for the current financial year and far more than the budget allocations of Odisha, Chhattisgarh, West Bengal, Maharashtra, Madhya Pradesh, and Arunachal Pradesh.

the coal authority created a list comprised of Indiaâ&#x20AC;&#x2122;s most prominent conglomerates that will be allowed to bid. Jindal Steel and Power, Adani Group, Aditya Birla Group, Reliance Power and Vedanta Resources have been shortlisted. There is a notable absence of global natural resources groups in this process. If the e-auctions stay on track, companies

will no longer have to rely on expensive imports from South Africa or Australia, a situation that has perpetuated since August 2014. This has burdened an already weakened cement sector, as well as other industries that rely on coal. Although, there will be a large number coal blocks will be up for auction, there is anxiety and uncertainty in the industry as to how this process will all pan out.

For instance, Kameswara Rao, a mining expert at PwC, estimates that the full auction process could generate revenues of about US$ 17 billion over the life of the mines, averaging 30 mines. Prior to the start of the auctioning process,

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feature CW Group expands with India office & adds Advisory team members

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INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

CW’s new Mumbai, India office will enhance and expand the company’s existing global and local services offerings as well as provide better connectivity with the dynamic Asia region.

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feature W Group opened an office in Mumbai, India to extend its global advisory, research and media offerings and better serve clients from Africa, Middle East and the wider Asia region. The Mumbai office is an important component not only for the regional service reinforcement, but also as a part of a wider capability enhancement to serve the Group’s global clients and products. “Working closely with our teams in Europe and the US, the new India office will help push the next leg of growth for our Group and better serve the industries that we operate within, be it advisory projects, research products or media-related initiatives. We have a strong launch-team of consultants, analysts and communications professionals that join our already excellent team in the US and Europe we strongly believe in and are committed to the future of not only India, but also to the broader MENASA and Asia regions,” said Robert Madeira, Head of Research and Managing Director, CW Group. Prashant Singh, CW Group Associate Director in the Mumbai, India office added: “We look forward to continue building traction in the infrastructure space. Obviously, cement is our core competency, but we are leveraging this area that we are already wellknown for to reinforce our capabilities in associated industries, such as the petrochemicals, steel, metals and mining segments that I personally bring to the table based on my background as a consultant and industry analyst.”

We have a strong launch-team of consultants, analysts and communications professionals that join our already excellent team in the US and Europe we strongly believe in and are committed to the future of not only India, but also to the broader MENASA and Asia regions Robert Madeira, Head of Research and Managing Director, CW Group

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The new Mumbai office will support expanded industry coverage, not only including further cement and building materials sector focus, but also building out CW Group’s coverage of the steel, metals, mining, energy, renewables, infrastructure, paper and pulp, and other industrial and cyclical sectors. Mr. Sumit Banerjee, a leading expert in core sector industry management joins CW Advisory board Recognized industry leader Mr. Sumit Banerjee, formerly vice chairman of Reliance Cement and CEO of Reliance Infrastructure, and former CEO and Managing Director of ACC Limited, Holcim Group, has joined the Advisory Board of CW Advisory, a global consultancy specializing in M&A, transactions, strategy, management and operations advisory, part of the CW Group based in Greenwich, CT, USA.

“I am particularly pleased to join the CW Advisory team. I find their level of expertise and passion for relevant, professional research to be strong differentiators. It will be rewarding for me to tap into my industry experience to help produce high-quality analyses and consulting deliveries,” said the new member of the CW Advisory board. In his position with CW Advisory, Mr. Sumit Banerjee will help reinforce CW’s advisory capabilities, particularly in the building materials, energy assurance, metals and mining sectors. He joins other CW board members, Mr. Arun Bhalla, an industry professional with over 40 years of top-level expertise, and Mr. Jean Michel Allard, an independent expert in the cement industry with a forty-year management background with the international cement organization Vicat Group. “We are delighted to see Mr. Sumit Banerjee joining the board of CW Advisory. His in-depth knowledge of the industry, senior management expertise and business administration skills will be a great asset for

our team. I look forward to start working with him and to continue exceeding the expectations of our clients”, said Mr. Robert Madeira, Head of Research, and Managing Director, CW Group. Mr. Banerjee is a seasoned business leader with a strong background in manufacturing and infrastructure, and lengthy and successful top-management level engagements in core sector industries such as non-ferrous metals, steel processing and cement. Prior to his recent CEO roles, he spent over 20 years with companies such as Indal/Hindalco, Tube Investments and L&T. Mr. Banerjee is a Fellow of the Institute of Engineers, the Founding Chairperson of CII’s Cement Division, a member on the Managing Committee of Bombay Chamber of Commerce & Industry (BCCI) and a government nominee on the boards of IIM Lucknow and Construction Sector Skills Development Council. He is a Mechanical Engineering graduate from IIT, Kharagpur and did his 5 month Management Education Programme at IIM Ahmedabad.

I am particularly pleased to join the CW Advisory team. I find their level of expertise and passion for relevant, professional research to be strong differentiators. It will be rewarding for me to tap into my industry experience to help produce high-quality analyses and consulting deliveries,” said the new member of the CW Advisory board. Sumit Banerjee, Advisory Board Member, CW Group

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feature Senior leader in power and automation industry also joins CW Advisory board Industry expert and leader Mr. Arun Bhalla, former CEO of Jindal Thermal Power and Shree Cement Power business unit, has joined the Advisory Board of CW Advisory, a global consultancy specializing in M&A, transactions, strategy, management and operations, part of the CW Group based in Greenwich, CT, USA. “I am pleased to join CW Advisory’s board and look forward to guiding the group in extending its capabilities in South-Asia and beyond. I feel privileged to be part of this leading advisory team and help senior clients in the power generation, energy, renewables, and related segments solve some of their most complex business and investment challenges and capturing new opportunities,” said Mr. Bhalla. In his role with CW Advisory, Mr. Bhalla will reinforce and help expand the capabilities of CW Advisory, with a proven track-record and expertise in power and renewable energy. He joins other board members, Mr. Jean Michel Allard, former deputy CEO and member of the board of France-based leading heavy building materials group Vicat, and Mr. Sumit Banerjee, ex-Managing Director of ACC and vice chairman of Reliance Cement

and CEO of Reliance Infrastructure, also a new addition to the board of CW Advisory. “We are very excited to have Mr. Bhalla join our Advisory Board and see his indiction as an important step in extending our consulting and M&A capabilities in the highly dynamic power generation, utilities, renewables and related industrial segments, not only in South-Asia, but globally. We are looking forward to working closely with Mr. Bhalla in assisting our clients with the best guidance on their most challenging strategic issues,” explained Mr. Robert Madeira, Managing Director, CW Advisory. Mr. Bhalla is an experienced professional with over 40 years of activity in the power

and automation sectors, and with extensive exposure across the complete value chain. Over the past ten years, his management roles included those of Chief Executive Officer and Director for Jindal India Thermal Power, Chief Executive in Charge of Power Business Development with Shree Cement, and Executive Director of PTC India. Additionally, he has held management positions with companies including BHEL, CGEE - Alsthom/Cegelec, NELCO, Bells Controls (Foxboro), Tata Honeywell, Hyundai Electrical Transmission Co, Maharashtra Power Transmission Co and PTC Energy. He is a post-graduate in Electrical Engineering from Regional Engineering College Kurukshetra, with a Diploma in Marketing and Sales.

I am pleased to join CW Advisory’s board and look forward to guiding the group in extending its capabilities in South-Asia and beyond. I feel privileged to be part of this leading advisory team and help senior clients in the power generation, energy, renewables, and related segments solve some of their most complex business and investment challenges and capturing new opportunities Arun Bhalla, Advisory Board Member, CW Group

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CW Advisory About CW Advisory   CW Advisory is a global consultancy specializing in M&A and transaction advisory, strategic advisory, management and operations consulting. Our deep sector expertise covers industrial, cyclical, utility and infrastructure.  CW Advisory works with boards and senior management addressing the most complex issues, including those in functional areas spanning the value chain, including fuels & energy, logistics, organizational, operational due diligence, feasibility assessments, among others.  CW Advisory is part of the CW Group, a leading advisory, research and media boutique aligned along three pillars: Advisory, Research and Media, with headquarters in Greenwich (CT), USA.

Strategy development 

M&A / transaction support 

Capability enhancement 

 Long-term strategic planning

 Target screening and evaluation

 New business development

 Transaction management

 Market entry strategies

 Commercial due diligence

 Organizational efficiency and effectiveness programs

 Market scans and in-depth attractiveness reviews

 Technical / operational due diligence

 Post-merger integration value realization and program management

 Techno-commercial feasibility studies

 Financial and valuation support

 Operational competitiveness and capability strategy development

 Long-term R&D and innovation planning

 M&A introductions and negotiation support

 Logistics optimization and distribution network design

 Competitive benchmarking

 Independent board advice

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feature

Management Risk in Contracts Part 2 of 3

By Er. Ashis Kumar Chakraborty

23 JANUARY - APRIL 2015

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

Source: arabianbusiness.com INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

JANUARY - APRIL 2015

feature t is important to understand and specify the legal responsibilities and obligations between the project Owner/Principal employer and the Contractors. The contractor should bear the risk and that include: • The risks which the contractor can control by good management and planning, or • Risks which the contractor may insure and calculate the costs in his offer, such as risks of personal injury, damage to equipment, and even political risks arising from acts of government, and • Risks which the contractor may pass to others, such as manufacturers and suppliers, for example design, workmanship and maintenance risks Risks and contingencies which the contractor should measure and attempt to shift to the employers, such as risks of force majeure, war risks, risks of unforeseen conditions. One of the common contractual risks in contracts prepared by the lawyers of employers is to impose on the contractor a liability to pay penalties or liquidated damages without a ceiling or limit for delay in completing the works. Another contractual risk is to hold the contractor liable for damage or injury arising from the contractor’s default or negligence without any limitation.

One of the common contractual risks in contracts prepared by the lawyers of employers is to impose on the contractor a liability to pay penalties or liquidated damages without a ceiling or limit for delay in completing the works. Another contractual risk is to hold the contractor liable for damage or injury arising from the contractor’s default or negligence without any limitation. The success of construction lenders, owners, contractors or subcontractors may depend on how well each of them addresses project risks. This is called “risk management.” A major part of risk management is “risk allocation,” whereby a party assigns by

contract the responsibility for a certain risk to another party, who will then bear that risk. Yet another part of risk management is the manner in which a party handles its assumed risk so that the possibility (and resulting cost) of the risk is minimized.

Furthermore, an important aspect of risks management is through concluding the right insurance policies, especially in respect of risks which are common to occur or catastrophic when they occur. But, management of risks by insurance is a creative and difficult task, which requires a proper analysis of the conditions of the construction contract as well as the conditions of the insurance which are fully decorated with exclusions and exemptions. 25

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Source: stmedia.startribune.com

Fortunately, employers are often inclined to negotiate those aspects of the contract. Therefore, contractors are advised to place reservations in their offers proposing a certain limit or ceiling for the liquidated damages or penalties for delay and another ceiling for the contractor’s total liabilities.

Source: upwordstranslation.com

A significant component of successful risk management begins with how well the project participants allocate risks at the contract formation stage. Ideally, the project documents will allocate responsibility for certain risks to the party best situated to bear them, thereby minimizing the likelihood and the cost of each risk. Following are six key risk allocation and management concepts that should be considered at the project contract formation stage.

I. Allocate risk to the party best situated to control the risk. At the outset of each project, an owner and a contractor should anticipate and evaluate potential risks to project success and, where applicable, assign responsibility for those risks to the party or parties best situated to control them. For example, a contractor should assign the owner responsibility for design errors because the owner typically holds the design services contracts and is in a better position to work with the project

designed to minimize the risk of those errors. From the ownerâ&#x20AC;&#x2122;s perspective, the contractor should undertake primary responsibility for bodily injuries or property damage arising out of the contractorâ&#x20AC;&#x2122;s operations, since the contractor is in the better position to minimize those risks by maintaining a safe jobsite. II. Allocate risk through indemnity provisions. Contract indemnity provisions generally require one party to pay for losses incurred by the other party as a result of claims made by third parties. A construction contract indemnity provision typically requires the contractor to indemnify the owner against claims for bodily injury or property damage arising out of the negligent performance of work by the contractor or its subcontractors. Conversely, the owner typically is called on to indemnify the contractor against claims or losses arising from the existence of hazardous substances at the project site, at least to the extent that the contractor does not have any control over those substances. III. Use insurance to support indemnity provisions. Contract provisions requiring

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JANUARY - APRIL 2015

feature

For example, owners must require their contractors to secure commercial general liability, automobile liability and worker’s compensation/employers liability coverage’s. These obligations should flow down to subcontractors. Commercial general liability insurance generally covers bodily injury and property damage resulting from contractor or subcontractor negligence. However, owners and contractors should bear in mind that liability policies typically do not cover the contractor for defective work, which is instead subject to the contractor’s warranty. Similarly, liability policies typically do not cover project improvements or construction materials for damage due to unknown site conditions, natural disasters and similar risks. Those damages are covered by a “builder’s risk” policy, which is usually required to be obtained by the owner. Contracts with design professionals, such as architects, engineers, and contractors performing design-build functions, must also require professional liability insurance to cover errors and omissions in providing design or other professional services. Because professional liability policies typically cover claims made on all of a particular design professional’s projects during a given policy period, the aggregate limit of coverage must be sufficiently high to protect the owner with respect to the owner’s specific project. An owner can accomplish this by requiring project-specific coverage or excess limits applicable to professional liability. For larger projects, the owner may also consider obtaining owner’s protective professional liability coverage to indemnify the owner directly for losses arising from the design professional’s negligence. IV. Require additional insured status and evidence of insurance. Owners and con27

JANUARY - APRIL 2015

Source: cdn5.triplepundit.com

insurance coverage provide assurance that each party can satisfy its indemnity obligations. Drafting effective insurance coverage requirements in contracts first requires properly identifying the risk obligations assumed by each project participant, and then ensuring each party has the right insurance to cover those obligations.

tractors should always require lower tier contractors or subcontractors to add the owner and contractor as additional insured. A central reason for additional insured status is the insurer’s primary duty to defend claims made against the additional insured. Additional insured status is ob-

tained by endorsement; thus, the applicable endorsement should be broad enough to cover ongoing and completed operations on a primary and non-contributory basis. Project participants must confirm that con-

Commercial general liability insurance generally covers bodily injury and property damage resulting from contractor or subcontractor negligence. However, owners and contractors should bear in mind that liability policies typically do not cover the contractor for defective work, which is instead subject to the contractor’s warranty

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

V. Include waivers of subrogation. Where applicable, contracts should include waivers of subrogation to ensure that project risks are transferred in the manner intended by the project participants. Subrogation allows an insurer to stand in the position of its insured to recover amounts paid on behalf of the insured for damages for which another party may be liable. Project participants intentionally shift risk through a variety of contract provisions. Allowing an insurer to recover amounts paid on behalf of a contract participant to whom that risk was shifted through indemnification or other means may undermine the parties’ intentions. A waiver of subrogation precludes the insurer from seeking reimbursement for amounts paid on claims, and thus prevents an insurer from passing assigned risk back to the other project participants. In other words, a waiver of subrogation ensures that transferred project risk stays with the insurers as contemplated by the project participants.

Many standard construction contracts utilize insurance terms that are inconsistent with current insurance industry offerings, usages and customs

Source: burnham.zippykid.netdna-cdn.com

tractual insurance requirements, including proper coverage’s, policy limits, and additional insured status, have been obtained and properly documented. Project participants should never rely solely upon certificates of insurance to confirm insurance requirements. Most certificates of insurance are issued by the broker, rather than by the insurer, and are not contractually binding. Accordingly, the insurance provisions of a project contract should mandate delivery of copies of policy declarations pages and all applicable endorsements.

VI. Review documents with appropriate consultants. Construction projects typically require multiple contracts, which need to be consistent and complementary. For example, project lender and owner requirements for payment timing and conditions should flow down through all project contracts. Dispute resolution provisions should be consistent throughout the project contracts to assure that all parties to a dispute are involved in the same proceeding at the same time and are subject to the same dispute resolution rules. In addition, many standard construction contracts utilize insurance terms that are inconsistent with current insurance industry offerings, usages and customs. To minimize issues arising out of conflicting, inconsistent or antiquated terms in the various project contracts, the project participants should rely on experienced counsel and trusted insurance consultants familiar with cur-

rent industry forms and practices. In short, careful contract preparation and review are essential to proper risk management for a construction project, and the ultimate goal of project success.

Brief of author: Er. Ashis Kumar Chakraborty is a Mechanical Engineer completed Environment Management System (EI & EA) at IIT –Kanpur &Certified Trainer on TQM from Juran Institute USA. He had specialization trainings at USA, Japan, France, UK, Austria etc. and also associated with McKenzie Inc. USA as Tandem Manager. He is Advisor- Group Corporate Affairs&Chief HRM & Business Excellence for Murli Cement.

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feature India infrastructure projects lag behind political promises Market optimism remains unfazed

New Prime Minister Narendra Modi announced last summer that he would increase spending on projects such as roads and ports by over 20 percent, to 5.75 trillion rupees, in the fiscal year through March 2015. In the nine months ending December expenditure amounted to 3.5 trillion rupees, a very similar level to the one reported in the previous fiscal year. Analysts expect capital spending to rise, but it remains to be seen how efficient will the rather sluggish local bureaucracy be in implementing governmental investments. According to International Monetary Fund data, India’s investment as percentage of gross domestic product dropped to 32 percent in 2014 from 38 percent in 2007, falling below Indonesia at 33 percent and widening the gap with China at 48 percent.

the close in Mumbai, Lanco Infratech declined 1.6 percent, while Gammon Infrastructure advanced 3.8 percent. The S&P BSE Capital Goods index, which includes infrastructure companies, closed down 1.3 percent. According to a survey by Standard & Poor’s domestic unit Crisil Ltd Capital, expenditure plans by state-run and private businesses will drop 4 percent in the year starting April 1. Private companies alone plan to cut such outlays 11 percent. The governmental bureaucracy is not encouraging them to invest. “While Modi has curbed graft, bureaucrats may be more

While waiting for state-sponsored infrastructure development to really take off, companies such as Larsen & Toubro Ltd. and Lanco Infratech Ltd. are looking for ways to cope with falling profits or even losses. Profit at Larsen & Toubro, India’s largest engineering company, fell 15 percent to 10.6 billion rupees in the three months ended December. Lanco Infratech lost 6.4 billion rupees, Gammon Infrastructure posted a profit of 59.8 million rupees, Larsen & Toubro slid 1.2 percent at

29 JANUARY - APRIL 2015

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

sluggish to drive public works as they aren’t gaining financially,” says Kishor Kumar Mohanty, managing director of Gammon Infrastructure Projects Ltd. One such example of excessive red tape is the Posco Plant, a $12 billion steel complex proposed by South Korea’s biggest steelmaker for Odisha state. The project has been awaiting approvals for about a decade and Posco is now planning to shut its engineering and construction unit in India and to cut 13 jobs at the site of the proposed factory. The government seems to be aware of the problems in its own backyard. In a sting operation in early March, police arrested

Source: masterbuilder.co.in

conomic confidence ushered in by last year’s election of a new government in India has yet to be backed by visible infrastructure developments, as spending fails to reach the promised levels.

five people and recovered stacks of stolen documents from the coal, power and oil ministries. Seven people were detained as the probe widened, including officials from Reliance Industries, Essar Oil Ltd., Cairn India Ltd., Jubilant Energy NV and Reliance Group, according to police in New Delhi. At the end of February, the government once again promised to take measures to increase spending on infrastructure and help accelerate growth in Asia’s third-largest economy. Finance Minister Arun Jaitley presented the national budget in Parliament and announced deficit-reduction plans to increase the amount of available capital. Among them is a decrease of the main corporate tax rate to 25 percent from 30 percent over the next four years. However, legislation that would facilitate an easier acquiring of land for some projects and bring more transparency to mining is pending. The administration aims to introduce a tax related to goods and serrvices to simplify commerce and spur growth. It’s also urging state-controlled companies to expand capital spending. India seeks about 8.5 trillion rupees investment in the railways over the next five years, according to budget documents

released in New Delhi. Railway Minister Suresh Prabhu said the network is trying to overcome the consequences of chronic underinvestment in the past. Mr. Prabhu, one of Narendra Modi's trusted economic aides, said he would raise funds from multi-lateral lenders, infrastructure and pension funds, as well as "monetizing" railway assets. In order to meet the five year target, investment must speed up faster, leaving economists questioning where the money would come from as the government has to rein in its fiscal deficit. While India has the world's fourth largest rail network, it has been outstripped by China, which now has more than six times as much track, following an intensive expansion and modernization of its network over the past two decades. In July last year, Prime Minister Modi opened the doors to foreign investment in railroad infrastructure, except for the operation of existing trains. A proposal to start bullet trains is being discussed with Japan, China and France on possible collaboration. To sum up the proposed action plan, Finance Minister Arun Jaitle estimated that the country would spend an additional 700 billion rupees, or $11 billion, on roads, railways, ports and other projects next fiscal year. Five large-scale power-generation

plants will be built to help meet electricity needs. The Finance Ministry estimates that India’s GDP could grow by as much as 8.5 percent in the year starting April 1. That forecast is based on revised measurements of the economy by government statisticians, while Mr. Jaitley believes that “aiming for double-digit growth seems feasible soon.” Capital markets seem to support official estimates. Barclays Plc sees India’s sovereign foreign currency ratings rising by 2017 as a result of stronger growth, fairly stable inflation and fiscal consolidation. Investors remain confident that Modi’s government is capable of delivering a turnaround by reducing red tape and spurring manufacturing. The S&P BSE Capital Goods index grew 67 percent in the past year, higher than the 37 percent climb in the S&P BSE Sensex. “The message coming through is crystal clear: as things stand, there’s only one way to kick-start the all-important investment cycle, and that’s through public investment,” Crisil President for Ratings Raman Uberoi said in a statement. “The onus is on the government to do the initial heavy lifting,” he added. Businesses expect the focus to move towards implementation, as they are eagerly waiting to capitalize on a better, faster Indian infrastructure.

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CEMENT MARKETS

CW Research

CEMENT VOLUMES Growth in volumes of consumption, as well as production, was driven by increased activity in the construction sector, as Saudi Arabia focuses its investment programs on infrastructure, roads, and highways.

Cement consumption grew in Saudi Arabia by 10 percent in February 2015 as compared to the level posted in the same month in 2014, standing at more than 5 million tons. Cement consumption growth slowed from the previous month, when it reached a near 30 percent year-on-year increase. On the other hand, production volumes of building material were 8.2 percent higher at just below 5.2 million tons. Growth in volumes of consumption, as well as production, was driven by increased activity in the construction sector, as Saudi Arabia focuses its investment programs on infrastructure, roads, and highways. Furthermore, Saudi Arabiaâ&#x20AC;&#x2122;s construction sector is set for a 10 percent expansion this year. Vietnam boosted production levels of cement in February 2015, with output of the building material reaching 4.2 million tons and posting a 16.2 percent increase compared to the same month of the previous year. Cement plants in Vietnam are seeking to boost production capacities in an attempt to fully meet demand in the country. The Government approved in February a proposal by the Ministry of Construction to increase capacity of two cement plants in Ha Nam and Nghe An Provinces. Over the past year, the country consistently boosted its exports of cement, Vietnam being on its way to becoming independent from imports. China is actively aiming to reduce pollution levels by cutting coal consumption by 13 million tons per year through 2017, thus affecting production levels of cement. However, output of the building material rose by 7.5 percent in February 2015 compared to the year ago period, reversing a 0.6 percent year-on-year decline posted in the previous month.

Cyprus

Ecuador

France

Poland

Morocco

5.0%

Spain

15.0%

Saudi Arabia

February 2015 Year-on-Year Cement Demand Growth (%)

Source: CW Research

-5.0% -15.0% -25.0%

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CW Research CEMENT MARKETS

Spain is well on its track to recovery, as demand grew by 4.8 percent in February 2015 as compared to the year ago period. The countryâ&#x20AC;&#x2122;s construction sector is expected to make a comeback in 2015 after seven years of decline as demand grows amid a modest economic recovery. Poland, despite its steep increase in production volumes, recorded cement consumption decline of 2.2 percent in February 2015. While the construction sector in Poland is expected to grow by 6.8 percent in 2015, demand for cement will likely reach again in 2017-2018 the levels seen in 2011. Investment in the energy and rail sectors and stabilization in the construction sector will be the main drivers of improvement, with EU funds to be a key part of this process. While cement output in Cyprus increased by 1 percent in February 2015 as compared to the same month in 2015, when demand dropped steeply in terms of year-on-year value. Cement consumption volumes were 27.4 percent lower in February 2015 than in February last year, as the slowdown in Cyprusâ&#x20AC;&#x2122; construction sector continues.

Poland, despite its steep increase in production volumes, recorded a cement consumption decline of 2.2 percent in February 2015.

February 2015 Year-on-Year Cement Production Growth (%)

Source: CW Research

Vietnam

Poland

China

Cyprus

Belarus

12%

Saudi Arabia

16%

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MARKET DATA SNAPSHOT

CW Research

Volume variation analysis for selected countries that are major consumers, producer, importers and exporters of cement. This is a selection of notable markets. Additional detail is available from CW Research as well as on-line at http://www.cemweek.com to the market data section.

TABLE AVAILABLE IN THE ICCM MAGAZINE PRINT EDITION.

WWW.CEMWEEK.COM/SUBSCRIBE

TABLE AVAILABLE IN THE ICCM MAGAZINE PRINT EDITION.

WWW.CEMWEEK.COM/SUBSCRIBE

TABLE AVAILABLE IN THE ICCM MAGAZINE PRINT EDITION.

WWW.CEMWEEK.COM/SUBSCRIBE

TABLE AVAILABLE IN THE ICCM MAGAZINE PRINT EDITION.

WWW.CEMWEEK.COM/SUBSCRIBE

Source: CW Group analysis estimates MoM: month vs previous month; YoY: month vs same month last year; YTD: year-to-date; YTD%: year-to-date vs previous year

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CEMENT ENERGY MARKETS

CW Research

CEMENT ENERGY MARKETS Coal Market Update Global coal trading volumes increases remained almost unchanged in January 2015, gaining only 1.5% versus December 2014. Significant volume recovery was seen in Indonesia, Russia and the US, with declines recorded in Australia, South Africa and Colombia. Indonesian coal deliveries increased 16 percent from December to 30 million tons, up 13 percent against January 2014. The Indonesian government targets a production of 425 million tons in 2015, with exports of 333 million, a decline from 2014’s production of 435 million tons and the exported 359 million tons. The government’s maximum target is yearly exceeded by coal miners, particularly when they try to offset low prices by increasing production, thereby placing more downward pressure on prices. In the US, coal deliveries recovered in January and grew 13 percent to 7.1 million tons. The Obama administration wants to change the way it collects coal royalties, a move that will cut use of the climate-changing fuel. The Interior Department wants to assess the royalty when mining companies sell the coal to an unaffiliated buyer, as these sales have been growing. Russia’s coal deliveries rose 4 percent from December to reach 15.2 million tons. The country’s exports have been rising as domestic consumption slowed down and the Russian ruble wekened, which has protected producers from falling coal prices. Russian coal imports have become extremely competitive in Europe because of falling oil and gas prices. This has further been compounded by an almost 50 percent declines of the ruble against the dollar following Western sanctions against Moscow over its involvement in the Ukraine crisis. Colombia’s coal sector is affected by declining prices in Europe. Deliveries reached 5.8 million tons in January, down 31 percent as compared to December. Coal prices reached USD 55.6/ton in January 2015, their lowest in nine years. New environmental regulations on polluting ship loading methods have forced Colombia Natural Resources to shut its coal export terminal. Additionally, a recent court ruling has banned the use of its biggest coal railway, the Fenoco railway, operated by Drummond, Prodeco and CNR accounting for half of the production.

Falling oil and gas prices. This has further been compounded by an almost 50 percent declines of the ruble against the dollar following Western sanctions against Moscow over its involvement in the Ukraine crisis

Coal Global Trading (million tons) Indonesia

Australia

Russia

South Africa

Colombia

Rest

Jan-15

Dec-14

Oct-14

Nov-14

Sep-14

Jul-14

Aug-14

Jun-14

Apr-14

May-14

Feb-14

Mar-14

Dec-13

Jan-14

Oct-13

Nov-13

Sep-13

Jul-13

Aug-13

Jun-13

Apr-13

May-13

Feb-13

Mar-13

Dec-12

Jan-13

Nov-12

Oct-12

Sep-12

Jul-12

Aug-12

Jun-12

Apr-12

May-12

Feb-12

Mar-12

Jan-12

Source: customs data

120

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CEMENT ENERGY MARKETS

CW Research

Energy Prices Update COAL: The average price closed at US$67.28 per ton in February, remaining almost unchanged as compared to January’s price of US$67.36 per ton and down 15 percent from February 2014’s price. Energy efficiency, pollution and political pressure are the major reasons for falling demand and prices for coal. Australian physical coal prices in March have fallen to pre-2008 financial crisis levels as Chinese demand suffers from slower economic growth and new environmental rules. China’s slowdown has pushed many coal and iron ore miners that rely largely on sales to China into crisis. China is the world’s biggest steel producer, for which iron ore and coking coal are key ingredients. However, the country’s steel demand is falling as stricter environmental inspections and slower economic growth are forcing steel mills to cut output.

Australian physical coal prices in March have fallen to pre-2008 financial crisis levels as Chinese demand suffers from slower economic growth and new environmental rules.

More than two dozen coal companies in the US have closed down and others have lost 80 percent of their market in the past five years because of a combination of cheap gas prices, new air quality limits, and increasingly competitive renewable energy technologies. The Dow Jones Total Coal Market index has fallen 76 percent in the past five years. Global demand for coal is expected to increase by 2.5-3 percent per year through at least until 2020. More tactically, international coal trade will become increasingly influenced by China’s actions and policies on in-country coal consumption. China’s new energy plan aims to bring coal’s share of the energy mix to less than 65% in 2014, a target that was earlier set for 2017.

US exported

Colombia exported

Australia Newcastle

Indonesian HBA

South Africa Richards Bay

150 130 110 90 70

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INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

Feb-15

Dec-14

Oct-14

Aug-14

Jun-14

Apr-14

Feb-14

Dec-13

Oct-13

Aug-13

Jun-13

Apr-13

Feb-13

Dec-12

Oct-12

Aug-12

Jun-12

Apr-12

Feb-12

Dec-11

Oct-11

Aug-11

Jun-11

Apr-11

Feb-11

Sources: EIA, Colombia Ministry of Mines and Energy, IMF, Indonesia Ministry of Energy and Mineral Resouces

Steam Coal Fob Average Prices (Us$/Ton)

CEMENT ENERGY MARKETS

CW Research

US Petcoke Export Price (US$/ton) Monthly price 100 80 60

PETCOKE: A drop in production at two California refineries has pushed up prices for low-sulfur petcoke in the US West Coast market, as the ensuing tighter supply is not able to meet the rise in demand. ExxonMobil’s Torrance refinery’s explosion and the labor-induced shutdown of Tesoro’s Golden Eagle refinery in Martinez have cut US West Coast supplies of low-sulfur petcoke by nearly 75 percent. Meanwhile, demand for low-sulfur petcoke has increased as Chinese buyers are using it to blend with higher sulfur petcoke. US Gulf Coast petcoke producers are likely to have tougher competition for sales of high-sulfur petcoke to India and Egypt as soon as a second large refinery in Saudi Arabia comes online. Cheap coal prices and increasing production from the US, Asia, Europe and the Middle East drove down prices of high-sulfur petcoke from the US Gulf Coast. The Saudi plants at Jubail and Yanbu could begin producing more than 4 million mt of 7.5-8 percent sulfur petcoke and will have a transportation advantage to India and Egypt. Saudi-to-India freight rates can be as low as USD 6/mt for delivery in summer 2015. Currently, there is an oversupply of petcoke in the Indian market and prices are under pressure. The prices will have to fall further because crude oil prices and seaborne coal market prices are falling. With the arrival of summer, petcoke production is expected to increase as refineries will produce more gasoline. Dry bulk freight rates are also expected to remain under pressure which is another factor in lower petcoke prices.

J-15

D-14

N-14

O-14

S-14

A-14

J-14

M-14

A-14

M-14

F-14

J-14

D-13

N-13

O-13

S-13

A-13

J-13

M-13

A-13

M-13

F-13

J-13

Source: customs data

The Saudi plants at Jubail and Yanbu could begin producing more than 4 million mt of 7.5-8 percent sulfur petcoke and will have a transportation advantage to India and Egypt.

An expansion of Bahrain’s Sitra crude oil refinery is expected to cost around USD 5 billion and the facility is likely to be commissioned by 2019. To learn more, please contact the CW Research team at sales@cwgrp.com or +1-702-430-1748. INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

JANUARY - APRIL 2015

CEMENT ENERGY MARKETS

CW Research

NATURAL GAS: The US Henry Hub spot price traded at USD 2.87 per MMBtu in February, decreasing 4 percent month on month despite chilling temperatures and a winter front that covered much of the country in snow. The Northeastern part of the country experienced the coldest weather in 81 years, yet natural gas prices were low as power generators stocked up on extra oil and gas from domestic and overseas sources before the weather turned cold.

The new price, significantly lower than USD 5.61/MMBtu valid till the end of March 2015, will be applicable for six months.

Prices in Europe decreased 10.3 percent month on month, reaching to $8.3 per MMBtu due to the increased risks for Russian fuel transit to Europe amid a dispute over payments with Ukraine, which could threaten supplies to the continent. Utility company Centrica idled nearly 30 percent of Britain’s biggest gas storage site, Rough, for six months due to potential technical issues that could limit stocks. Hence, Britain’s available natural gas storage capacity is expected to fall to its lowest level in almost a decade this summer, increasing the system’s reliance on supply from the continent and the risk of price increases next winter. Meanwhile in India, natural gas prices will fall 10 percent to USD 5.02 per unit from April 1, after the first price revision since the new gas formula was announced by the government in 2014. The new price, significantly lower than USD 5.61/MMBtu valid till the end of March 2015, will be applicable for six months. The government had announced a formula in October 2014 that uses average annual price at four energy hubs in US, Canada, Russia and European Union to calculate the gas price that could be offered to gas producers at most of the domestic fields.

Natural Gas Prices (US$/MMBtu) US

Europe

16 12

To learn more, please contact the CW Research team at sales@cwgrp.com or +1-702-430-1748. 37

JANUARY - APRIL 2015

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

Feb-15

Jun-14

Oct-13

Feb-13

Jun-12

Oct-11

Feb-11

Jun-10

Oct-09

Feb-09

Jun-08

Oct-07

Feb-07

Jun-06

Oct-05

Feb-05

Jun-04

Oct-03

Feb-03

Jun-02

Oct-01

Feb-01

Jun-00

Oct-99

Feb-99

Source: EIA, World Bank

MARKET DATA SNAPSHOT

CW Research

Volume variation analysis for selected countries that are major importers and exporters of coal and petcoke. This is a selection of notable markets. Additional detail is available from CW Research as well as on-line at http://www.coalweek.com/ to the market data section.

TABLE AVAILABLE IN THE ICCM MAGAZINE PRINT EDITION.

WWW.CEMWEEK.COM/SUBSCRIBE

TABLE AVAILABLE IN THE ICCM MAGAZINE PRINT EDITION. WWW.CEMWEEK.COM/SUBSCRIBE

TABLE AVAILABLE IN THE ICCM MAGAZINE PRINT EDITION.

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

TABLE AVAILABLE IN THE ICCM MAGAZINE PRINT EDITION.

WWW.CEMWEEK.COM/SUBSCRIBE

Source: CW Group analysis estimates LM: latest month Jan 2015 except where specified; MoM: month vs previous month; YoY: month vs same month last year; YTD: year-to-date; YTD%: year-to-date vs previous year

To learn more, please contact the CW Research team at sales@cwgrp.com or +1-702-430-1748. INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

JANUARY - APRIL 2015

cement market and competition

arket and competition

Indian coal auctions, a dynamic market The Tara coal block in Chhattisgarh went to Jindal Power and the Dumri block in Jharkhand to Hindalco in the latest round, while the third block on offer, Nerad-Malegaon in Maharashtra, went to Indrajit Power, which bid the highest amount at Rs. 660 per ton - a little over Rs. 660 crore. Three more blocks will be put up for auction. Under the bidding process, participants are required to submit an initial financial bid along with the technical details. Coal auction in India to add huge revenue India’s Union Power Minister Piyush Goyal expects the coal auction to add a huge revenue to the exchequer and to kickstart investment cycle in a substantial way. The Finance Minister posed the setting up of a National Investment and Infrastructure Fund (NIIF) with an initial corpus of Rs.20,000 crore which can be leveraged by infrastructure companies. Piyush Goyal says the creation of the national investment fund is a very good decision. “From the entire 204 coal blocks many of which are going to go to the states where we are not charging such a large amount but will be used to support the states’ initiatives in the spirit of cooperative federalism”, said Piyush Goyal. 39 JANUARY - APRIL 2015

Some of the blocks will go to the states; the rest will be auctioned for the various sectors to bring about a greater degree of electricity generation, larger amount of production of steel, cement, aluminium, zinc. Ready-to-produce coal mines auctioned in India A total of 14 ready-to-produce coal mines were auctioned by the Indian government in the second tranche. The names of successful firms pertaining to six coal blocks are missing from the government's list of winning bidders. Asked about the absence of winners of six coal blocks from the list, a top Coal Ministry official said, "There are no winners till a final view is taken”. The government had earlier in the list of closing bid for schedule III mines said that closing bid price for Mandla South mine was Rs 1,852 per ton and the closing bid was submitted by Jaypee Cement Corporation. Fourteen mines under Schedule III were sold during the second tranche from March 4 to March 9 to companies like Adani Power, Mandakini Exploration and Mining, Indrajit Power Private Ltd, GMR Chhattisgarh Energy, Ambuja Cements, Japyee Cement, Araanya Mines Private Ltd, and Monnet Power Company Ltd. India’s Jaypee Cement and Ambuja Cements get coal mines India’s Jaypee Cement and Ambuja Ce-

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

ments bid the highest for two mines at the ongoing auction of coal mines, when the government garnered Rs 5,164 crore from the sale. Cumulative proceeds surged surging to Rs 157,000 crore. The Gare-Palma Sector-IV/8 block in Chhattisgarh went to Ambuja Cement, while Jaypee Cement Corporation grabbed Mandla-South block in Madhya Pradesh. "Gare Palma IV/8 closes at Rs 2,291. Ambuja Cements is highest bidder. Jaypee Cement highest bidder at Rs 1,852 for Mandla South”, Coal Secretary Anil Swarup said. Fall in investments and stocks in India Indian state Gujarat has witnessed a fall in investment in the large industry sector for the consecutive two fiscals 2012-13 and 2013-14. Congress MLA Tejashree Patel sought details of sector-wise investment in Gujarat in the last five years, ending 2013-14. Chief Minister Anandiben Patel responded that Gujarat has attracted Rs 10,885 crore of cumulative investment in large industry sector during 2009-10, Rs 13,670 crore in 2010-11, Rs 15,995 crore in 2011-12, Rs 9,169 crore in 2012-13 and Rs 4,146 crore in 2013-14. These figures were of investment done in 41 different large sectors, such as electrical equipment, machine tools, food processing, glass, cement, infrastructure among others.

Stocks of Indian cement manufacturers fall Indian cement stocks declined after the government’s Railway Budget 2015-16 presented in Parliament by Railway Minister Suresh Prabhu, which sees an increase in some freight rates for FY 2016, reports Business Standard. The Railways will invest Rs 850,000 crore over the next 5 years. Coal India fell on reports railway freight rates have been hiked by 6.3 percent for coal from 1 April 2015. Cement stocks declined on reports railway freight rates have been hiked by 2.7 percent on transport of cement. ACC stock fell 1.04 percent, UltraTech Cement’s shed 1.61 percent, while Shree Cement was down 1.69 percent. furthermore, Ambuja Cements dropped 0.49 percent. Petcoke imports in India The Indian market has seen very few deals concluded for imported fuel grade petroleum coke due to the yawning gap between offers and buyers' expectations.

Petcoke prices are under pressure A leading cement company in India recently bought two Panamax cargoes of US Gulf petcoke with 6.5 percent sulfur at around $74/mt CFR east coast India for end-March and April loading. Furthermore, a west India-based cement company also bought a shipment of 80,000 mt of US petcoke with 6.5 percent sulfur at $74/mt CFR west coast for April loading. Cement companies in India are expected to buy US petcoke with 6-7 percent sulfur for between $71-$75/mt CFR. The Indian market is oversupplied and prices are under pressure. Petcoke prices fell further as crude oil prices and seaborne coal market prices are falling. More large cement making companies in India are located on the east coast and consume imported fuel-grade petcoke. On India's west coast there are other small end-users who also consume petcoke and would be keen to buy imported fuel-grade petcoke.

HeidelbergCement seeks inorganic growth in a big way in India HeidelbergCement aims to improve capacity utilization HeidelbergCement seeks inorganic growth in a big way in India, preferably in central India, according to Jamshed Naval Cooper, CEO & MD, HeidelbergCement India. The company aims to beat 5-6 percent industry volume growth. “As far as our volumes are concerned, we are clocking about million ton every quarter which is including south”, said Jamshed Naval Cooper. The company reported a net loss of Rs 9.89 crore in fourth quarter ended December 2014, while total income rose 16.6 percent to Rs 421.60 crore in the quarter over Q4 December 2013. HeidelbergCement aims to move to 100 percent capacity utilization from the current 85 percent, said Cooper.

A south India-based trading source said that about a fortnight ago, he had sold a prompt Supramax shipment of US petcoke with 6-7 percent sulfur at $79.40 per ton CFR west coast on two-port discharge basis. Offers are in the range of $79-$80 per ton CFR but buyers' expectations were in the low $70s per ton CFR. A north India-based trader said that he had offered a Panamax cargo of US Gulf petcoke with 6.5 percent sulfur at $78 per ton CFR west coast for end-April loading.

Source: heidelbergcement.com

A west India-based end-user source also said that there were offers in the range of $75-$77 per ton CFR but buyers were looking at $72-$74 per ton CFR. Many cement companies are showing buying interest. Meanwhile, sources said that a Supramax shipment of petcoke with more than 8 percent sulfur from Jubail in Saudi Arabia was bought by an Indian cement company for March loading and for delivery to east coast India. INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

JANUARY - APRIL 2015

cement M&A AND FINANCE

&a and finance

MERGERS AND ACQUISITIONS UltraTech and Dalmia move forward with acquisitions UltraTech Cement’s Board of Directors has given a positive vote for the acquisition of Jaiprakash cement units located at Bela and Sidhi in Madhya Pradesh. The transaction is estimated at RS 54 billion, and will lead to UltraTech benefiting from a capacity boost of 5 million tons per year. UltraTech is reportedly interested in buying a grinding unit from Binani Cement, a company headquartered in Mumbai, which is planning on selling its Rajasthan unit. The grinding plant has an annual capacity of 1.2 million tons.

eastern part, bringing the total production capacity of Dalmia Bharat to 24 million tons per year. Lafarge Holcim merger to cause market changes in India The merger of the two companies will reportedly lead to a significant restructuring of the Indian cement market, the two companies looking to merge ACC, Ambuja and Lafarge India into one single listed entity. The three companies, currently subsidiaries of Holcim and Lafarge, will have a combined capacity of 70 million tons of cement if the plan of the European countries plays out. Before forwarding this proposal to the Competition Commission of India, Lafarge and Holcim have tried to divest certain

Dalmia Cement Bharat has acquired Bokaro Jaypee Cement in a deal worth Rs 1,150 crore, hoping that the move will consolidate its market position in the eastern part of India. The acquired company had been a 74:26 joint venture between Jaypee Cement and Sail capacity being of 2.1 million tons per year. The acquisition process started in March 2014, when Dalmia Bahrat bought the majority stake from Jaypee, while the remaining shares had been acquired from SAIL in November last year. According to Mahendra Singhi, CEO of Dalmia Bharat, the purchase will consolidate the company’s presence in India’s 41

JANUARY - APRIL 2015

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

assets that would reduce the impact their merger would have had on the market. FINANCIAL Cement companies based in South India to see boost in revenue Cement companies based in South India are expected to record higher revenue growth than those in other regions in the next three fiscals, driven by incremental demand emanating from a new state, lower capacity utilization, very little capacity addition and lower price of imports. Andhra Pradesh and Telangana are expected to generate additional demand of 23 million tons between FY14 and FY17, which would be higher than the peak de-

Adani Cement Plant

As against this, the demand in north will be 21 million tons, 18 million tons in the west and 15 million tons in the east and central regions. Capacity utilization in southern companies is expected to improve to 77 percent by FY17, while the number for other regions would be in the range of 85-90 percent. Major cement producers see boost in profits UltraTech Cement, ACC and JK Lakshami outperformed during the quarter ending December 2014. UltraTech cement hit a record high during the quarter, the shares of the country’s largest cement maker having surpassed the market average, the board expecting to report results reflecting a 6.6 percent quarter-on-quarter top-line growth. The company’s volumes of cement reached 1.7 million tons during the quarter. ACC posted an 18 percent increase in net profit for the same quarter, company representatives highlighting that the gain was largely driven by a tax reversal.

Net sales grew by 3 percent, yet the manufacturer’s profit from operations and the operating margin declined, the two indicators being impacted by high raw material and freight costs. JK Lakshami reported a 31 percent increase in net profit for the last quarter of 2014, attributing the increase to higher sales and net realization. The company’s revenues rose to Rs 618 crore from Rs 560 crore a year earlier, buoyed by a six percent rise in volumes. Heidelberg Cement India and Shree Cement reported soft cement realizations Heidelberg Cement India reported a net loss of Rs 9.89 crore in the quarter end-

ed December 2014, up from a net loss of Rs 6.63 crore during the previous quarter ended December 2013. For the full year, Heidelberg Cement India’s net profit rose to Rs. 51. 37 a figure which puts Heidelberg back on the list of profitable cement companies in India. In 2013, the company reported net losses of Rs 40.73. Shree Cement’s revenue for the quarter stood at Rs 1,542 crore, with EBITDA levels reaching Rs 303 crore. Regarding sales, the company sold 3.81 million tons of cement, with 10 percent more than during the similar period of 2013. On the other hand, realization came lower at Rs 3,540 per ton of cement, with three percent down sequentially, though 3.2 percent up on a year-on-year basis. Source: heidelbergcement.com

mand of 20 million tons in unified Andhra. Irrigation projects proposed in the two states is expected to boost demand.

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

JANUARY - APRIL 2015

cement projects and expansions

rojects and expansions

NEW PROJECTS Green light for plat expansions in India The Government of Himachal Pradesh, India approved the expansion of the Jaypee Himachal Cement Plant at Baga in Solan. The decision was taken at a cabinet meeting presided over by chief minister Viribhadra Singh at Dharamshala. “The expansion has been approved for enhancement of clinkerization capacity”, stated a cabinet spokesman. The Himachal Pradesh cabinet has also cancelled 7 small hydro projects for failing to get work started on schedule. The projects cancelled are Ghagas (1MW), Anni-IV (2.50 MW), Najan (1 MW), Suhi (1.50 MW), Chachul (3 MW), Joiner Top-I (5 MW) and Sainj Bhagaru (0.80 MW) project. Mangalam Cement completed its expansion India’s Mangalam Cement completed its expansion of the grinding unit at Morak (Rajasthan) at a capex of INR 500 crore. The 1.25 million tons per year expansion takes the grinding capacity of Mangalam Cement to 3.25 million tons per year, representing a 63 percent year-on-year increase, while clinker capacity rose to 2.3 million tons per year from 1.8 million tons, up by 28 percent. While the company does not have any immediate capex plan, it has surplus land at 43 JANUARY - APRIL 2015

Aligarh which can be used for expansion. The recent capacity expansion is expected to help strong volume growth in FY15. Volumes are expected to rise by 12.4 percent and 5.3 percent in FY16 and FY17. India’s JK Lakshmi Cement begins production at new plant India’s JK Lakshmi Cement has started production at its Rs 1,700 crore Durg unit in Chhattisgarh. The production unit has a design production capacity of 2.7 million tons per year. Following commissioning, installed cement making capacity of the company now stands at 9.3 million tons per year. JK Lakshmi's greenfield Durg unit will produce various grades of building material such as ordinary portland cement, portland pozzolana cement, and slag cement. Greenfield expansion plans in India UltraTech Cement is now planning its next phase of greenfield expansions in order to meet the expected revival in demand, following two years of aggressive acquisitions. As part of its expansion plan, UltraTech will set up two greenfield units in Bihar and West Bengal, as well as a bulk terminal in Maharashtra and increase capacity at its existing plant in Rajasthan. At the moment, UltraTech Cement has a capacity of 62 million tons. However, it intends to raise it to 71 million tons by 2016 once the projects under implementation are completed.

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

JSW Cement is setting up greenfield projects in Chennai, Kochi and Dolvi The company, which intends to boost production to 15 million tons in ten years’ time, is adopting a step-by-step approach in reaching this goal. As such, JSW Cement is setting up greenfield projects in Chennai, Kochi and Dolvi in phases. At Dolvi, the company will expand its grinding unit to a capacity of 1.2 million tons per year, while the other two locations will benefit from new units which will each have a capacity of 0.45 million tons per year. According to Chief Executive Officer of JSW Cement, Anil Jumar Pillai, the company is currently scouting for land in the South for some small grinding units. The units will each need an investment of about Rs 150-175 crore, and they will be commissioned within 15-18 months. Seshagiri Rao, joint manager director of JSW, commented that the company’s presence in the cement sector is a small one when compared with companies which have a capacity of 60-70 million tons per year, thus justifying the company’s intentions to drive up its cement capacity. Major revamp plans for Malabar Cements Malabar Cements plans to improve its cement business as the government sanctioned the setting up of a Rs 16 crore bulk

handling unit at Willingdon Island in Kochi. The facility will be commissioned on the land owned by Cochin Port Trust and then leased to Malabar Cements. The company will then use it as a bulk material storage even for other PSUs in the state. The news came at the right moment for Malabar Cements, which plans to import 132,000 tons of bulk cargo for cement manufacturing per year, such as limestone, sand, coal and clinker. The total cost of the project, as expected by NCCBM, is of 160 crore, and the first shipments were planned for February 2015. New cement plants in the Kutch region The Kutch region in India is expected to attract investments worth Rs 40,000 crore during the next 2-3 years in projects in the areas of cement, power and minerals, both of large and small size. Mahendra Patel, IAS, Collector in Kutch, states that cement companies like Reliance ADA, Binani and

DLF are already setting u cement plants in the region. Reliance ADA, for instance, has invested Rs 5,000 crore in a 5.6 million tons per year plant. Binani Cement plans to set up a cement plant with a production capacity of 4.5 million tons per year, while DLF has expressed its intentions to develop a 3.4 million tons per year cement plant in the region. Sanghi Industries to invest in renewable energy and port development Sanghi Industries Limited will invest Rs.250 crore over the next couple of years, with a focus on sustainable development, innovation and energy conservation projects. The company will invest Rs.150 crore in a new 15 MW waste heat recovery (WHR) system and a further Rs.100 crore to develop its facilities at Navlakhi Port in Gujarat. The WHR project is already underway, the contract having been signed for its instal-

lation at Sanghi Industries’ cement plant in Kutch, Gujarat. Some 15 MW of power will be generated from the waste gases released to the air. Sanghi will recover more than 70% of waste heat generated from its cement manufacturing process. COMPLETED EXPANSIONS Mangalam Cement completes expansion The company has completed the expansion of its Morak (Rajasthan) grinding unit at a capex of INR 500 crore. The capacity expansion added 1.25 million tons per year to the grinding’s unit, representing a 63 percent year-on-year increase. The grinding unit’s current capacity is of 3.25 million tons, while clinker capacity rose by 18 percent, reaching 2.3 million tons per year. As a consequence to these expansions, the company expects a solid growth in volumes during the current financial year, with volumes being expected to further increase in FY16 by 12.4 percent, and by 5.3 percent during FY17. Cement plant in India to halt operations Plant’s management had previously announced plans to modernize the factory

Sanghi Cement Plant

Source: sanghicement.com

The management of the government cement factory Arasu Cement at Alangulam in Virudhunagar district, Tamil Nadu in India plans to close the production unit. The plant’s management issued a circular asking its workers to obtain transfer to Ariyalur, where another government cement factory functions. The state government had announced a package of INR 165 crore to modernize the factory. But instead of commencing the work, the authority is moving to close the unit. According to government officials, the halt of operations at the plant was based on a report that there would be no limestone there in the near future.

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

JANUARY - APRIL 2015

cement volume & pricing

olume and pricing

Demand for cement shows signs of recovery in India Cement demand in India is showing signs of slow recovery after the monsoon season. In FY15, cement demand is also supported by a low base as cement production grew by merely 3 percent in FY14. During AprMay 2014, cement production rose 7.9 percent as against 3.7 percent in the corresponding period last year. The demand growth remains favorable given the new government’s focus on revival of infrastructure and investment spending. The wholesale cement prices in North and West came under pressure in 2Q FY15 due to monsoons. Post monsoons, the recovery in prices has been slow. Cement prices rose Rs. 5-20 per bag in October 2014, but prices again came under pressure in the months of November and December due to slow recovery in demand. Post monsoons, prices increased to Rs. 288 per bag in October but again declined to Rs. 260 per bag in November 2014 and Rs. 253 per bag in December 2014. High prices affecting the sector Cement prices began increasing in 2014, and they are expected to further escalate into 2015. The price of a bag of cement could reach as high as Rs 400 by the end of February. At the moment, a bag of premium cement, which used to cost Rs 260, now has a price of Rs 300- 320. Non-premium quality cements hover around similar prices. 45 JANUARY - APRIL 2015

Mining costs hike, among causes of cement p rices increases After India’s passage of Mines and Minerals Development and Regulation (MMDR) bill, mining costs are expected to increase, which would lead to higher coal prices that could impact industries that require coal as fuel for manufacturing. The Indian cement industry could therefore see prices hikes in the future. According to Jamshed Naval Cooper, CEO & MD, Heidelberg Cement India, any hike coal prices would be passed on to the consumers, which could be to the tune of Rs 3-4 per bag of cement. Heidelberg Cement India has, however, moved its dependence to petcoke from coal as sixty percent of its requirements are met through petcoke. Jamshed Naval Cooper said there has been some improvement in month of March compared to February and January, which saw de-growth on a year-onyear basis. He also expects price hike to the tune of Rs 6 per bag in April 2015. Prices increase in the South of India, attributable to manufacturers Cement manufacturers in India have been selling cement at Rs. 400 a bag over a fortnight, even though demand has not come to meet a special growth. The construction activity did pick, with the only ones responsible for the rise of

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

focus Builders in Tamil Nadu protest cement prices

Though the government of Tamil Nadu launched the Amma Cement scheme at the end of 2014, builders across the Indian state are protesting the too high price of cement. Members of various associations have held hunger strikes and marched the streets in awareness of the high cement prices, trying to persuade the government to take more action in bringing cement prices down. Associations such as the Builders’ Association in India and the Civil Engineer’s Association claim that the governmental scheme in selling cement comes with too many conditions and that it would do little to benefit large scale projects. More so, the builders’ associations have called for a regulatory body that would have more control over cement prices. The Amma Cement scheme, though highly anticipated, did not interrupt the upward movement of prices in the South of India. R. Balamurugan, president of Chennai Civil Engineers Association, has stated that the amount of cement subsidized through the scheme will not meet even half of the requirements across Tamil Nadu.

Source: www.famevibrotech

prices being the cement manufacturers. N. Nandakumar, president of CREDAI Tamil Nadu, mentioned that there is a 70 percent difference between the cement cost in the North and South of India, with cement being sold at Rs.260 in the former. Falling demand also at play Apart from the sharp rises in prices the region is experiencing, the cement manufacturers are also being troubled by falling demand. Moreover, cement producers are facing the issue of increase in raw material prices and energy costs. N Srinivasan, vice chairman and managing director of India Cements, has stated that even the current price at which cement is being retailed does little to compensate the cost pressure. Growth in volumes India’s Mangalam Cement to see growth in volumes Mangalam Cement, a BK Birla group company, has an installed capacity of 3.25 million tons per year in Morak, Rajasthan. According to Arihant capital markets, the

company has a price potential of Rs 429 based on Evton of US$75. The manufacturer sells cement under the brand name Birla Uttam in the northern and central regions of India. As far as the proportion of sales go, 51 percent of the company’s output reaches the northern part of India, while the rest is distributed in the central region, the major selling markets in both the regions being Rajasthan, Delhi, Haryana, Uttar Pradesh and Madhya Pradesh. Rajasthan accounts for 31 percent of the company’s cement volumes, but sales are expected to reach 50 percent in the region due to sales tax benefit scheme announced by the state government. According to the scheme, Mangalam Cement will receive sales tax subsidy for 7 years starting from FY15.

Dalmia Cement’s Executive Director (North East) Abhra Banrjee, stated that the company has been able to capture 20 percent of the market share during the last two years, an accomplishment which has not been achieved by any other brand in such a short span of time. India producing high volumes of fly ash The country’s annual production of fly ash through thermal plants has reached about 256 million tons, out of which the country uses around 55 percent of the byproduct. Half of the residual fly ash is used by cement companies, while the rest is employed in filling for mines and for agricultural purposes.

Dalmia Cement sets target for current financial year In its two year of operations in the NorthEast of India at its three production units, the company’s cement sales amounted to 2.1 million tons. As such, the company has set the target of selling 1 million tons of cement during 2015.

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

JANUARY - APRIL 2015

cement people

eople

New director at Anjani Portland Cement Anjani Portland Cement’s board of Director have taken on record the resignation of Mrs. Geetha Muthiah as Managing Director of the Company. During the same meeting, held on January 19, the Board approved the appointment of Mr. ASubramanian as Additional Director of the company and as Managing Director. Anjani Portland Cement shares last traded at Rs 73.65 as compared to the previous close of Rs 75. More so, the stock hit an intraday high of Rs 77 and intraday low of Rs 65. Indian Architect Samira Rathod Wins Special Mention in the Third arcVision Prize Angela Deuber is the winner of the third arcVision Prize - Women and Architecture, an international architecture award for female designers instituted by the Italcementi Group. The arcVision Prize was announced at i.lab, Italcementi’s Research and Innovation Centre in Italy on March 6th 2015. The third edition boasted a final nominee list of 21 designers from 16 countries from Spain, India, Mexico, Italy, France, Switzerland, Netherlands, USA, Japan, Egypt, South Africa, Thailand, Morocco, Australia, Greece, Jordan.

tecture and socio-economic fields. The jury recognized the directions of the winner’s architecture and at the same time successfully synthesized the important aspects of structural construction, judicious use of materials, involvement and concern for the social role of women architects. The Indian Architect Samira Rathod won a special mention from the jury along with Kate Otten (South Africa) and Patama Roonrakwit (Thailand). The prize is a two-week research project and workshop (during Milan Design Week, April 2015) at i.lab, the Italcementi Group Research & Innovation Center in Bergamo designed by Richard Meier, which also acts as a center for the divulgation of innovative technologies and methodologies. The winner also receives a cash prize (50,000 Euros), part of which may be devolved to social projects, at her discretion.

Architect Angela Deuber was chosen by the jury, composed as in the past editions by outstanding professionals from archi47

JANUARY - APRIL 2015

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

focus Semen Indonesia appoints CEO Semen Indonesia appointed Suparni as its CEO after securing 69.6 percent of votes from 76.1 percent of the firm’s total shareholders. Suparni replaces Dwi Soetjipto, who has taken over at the helm of state-owned oil and gas giant PT Pertamina. Suparni was previously Semen Indonesia’s production director. This year, Suparni will guide the company through slowing revenue growth and stalled overseas expansion. Suparni was previously production and research director at Semen Indonesia before becoming interim chief, and plans to continue expanding the company’s business overseas while keeping growth in the domestic market first priority. Semen Indonesia also added Rizkan Chandra, previously the chief technology officer at state-owned telecommunications firm Telekomunikasi Indonesia, to its board of directors. Semen Indonesia also adds member to its board of directors Semen Indonesia is expected to post an increase in revenue between 7 and 9 percent this year. The cement producer posted earnings of Rp 19.4 trillion ($1.5 billion) in the January-September period last year, up 11 percent from the same period in 2013.

regional news

CHINA China’s Shaanxi QinLing Cement has received approval for its major asset sale and issue of shares to buy assets. According to relevant regulations, the company’s shares resumed trading on February 17, 2015. Shaanxi Qinling Cement is a China-based company principally engaged in the manufacture and distribution of cement.

equity structure between Hongshi Holdings Limited of China and Nepl's Shiva Cement.

NEPAL China’s Hongshi and Nepal's Shiva Cement to invest in cement production in Nepal A Nepalese and a Chinese company have signed a joint venture investment agreement for cement production in Nepal. The $300 million investment is one of Nepal's biggest in the cement sector, and has a 7:3

"This project with advanced technology will adopt a new dry process with the use of 95 percent domestic raw materials”, said Xu Youyuan, Executive Vice President of the Chinese company. Nepal's booming cement industry in 2012 has attracted Hongshi to the Nepalese market. There are over 40 cement plants in Nepal and domestic products only account for 85 percent of the total consumption in this country. New plants begin production in Nepal Two new plants in Nepal have begun production of cement and clinker, namely Arghakhanci Cement and SCI, part of the Saurabh Group.

Source: theudayagroup.com

egional news

The Arghakhanchi Cement plant has started producing OPC cement during the third week of January 2015, though the company has been producing and supplying clinker to other cement factories in Nepal for the past four years. The first cement manufacturing unit of the company also has a plant of three generators that would ensure uninterrupted power supply. The new plant, which is located in Mainahiya, VDC of Rupandehi operates with raw material coming from mines in Arghakhanchi and Palpa, having a production capacity of 1,000 tons of cement and

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regional news 1,200 tons of clinker per day. The company will sell its products under its own name, and the cement will come in 50 kilograms bags. The second company that has kick-started the commercial operation is Sarbottam Cement Industries (SCI), being established under the Saurabh Group at Nawalparasi, a region populated by mines. The latter group handles a major share in import-export business of cement, steel, tea and woolen products. The investment required for setting up SCI was of Rs 6.5 billion. SCI’s plans output is of 400,000 tons of clinker, and like the Arghakhanci Cement plant, it is equipped with its own power plant, grinding machine and clinker unit. Production halts for Ghorahi Cement Industry Having been affected by the protests of tipper operators in Dang, Nepal, the production and supply of Ghorahi Cement Industry, a cement manufacturer under Sagarmatha Cement, has been affected.

The Federations of Nepalese Chambers of Commerce and industry has appealed to the government to intervene and create a situation that would enable the cement manufacturer to carry on with its usual operations. PAKISTAN Pakistan’s cement sector posted growth in 2014 The country’s cement sector has proven to be successful during 2014, being mostly driven by increased demand and aided by low coal and oil international prices. As such, cement companies outperformed the Karachi Stock Exchange-100 index by a rather wide margin. Another factor that added to the profitability of the sector has been the overall economic growth in Pakistan and in the traditional foreign consumers of Pakistani cement. Better economic conditions led to increased consumption and to an increase of 10 to 12 percent in cement prices. According to AKD Securities analyst Jawad Shamim, the cement sector posted growth on all fronts during 2014.

Source: ballmillliners.com

The tipper entrepreneurs that traditionally supplied raw materials to the company have been demanding an increase in the transport charge of raw materials from Rs 500 to Rs 650 per ton, capital that Chorahi Cement does not dispose of since it cannot afford the gas fees. As such, the company

has halted production all together, having no means of supply the volumes of cement and clinker that are in its stock.

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Boosted exports and domestic sales Between July and November 2014, Pakistan exported with 1.9 percent more cement than during the similar period of 2013. During the period analyzed, the country’s cement manufacturers exported cement worth US$229.85 million, up from the US$225.56 million posted in the same period of 2013. During the month of November 2014 alone, the country exported cement worth US$45.82 million, up by 28.06 percent from the US$35.78 million worth of cement exported in November 2013, and by 25.7 percent more than the quantity exported in October 2014. On the domestic level, the cement market grew by 9.39 percent during the same period. North based cement mills, for instance, dispatched 8.872 million tons to domestic markets, by 11.3 percent more than it had in the same period in 2013. Reluctance in cutting prices Though the cement industry in Pakistan will be the biggest beneficiary of the reduction in electricity tariff, manufacturers across the country are said to be reluctant in reducing cost benefit to the consumers. The sector is thought to gain Rs 2.32 per kilowatts per hour from the cut in power tariffs. With electricity charges accounting for 18-28 percent of the total manufacturing costs for cement companies, one would expect the cut in tariffs to be great news, yet analysts claim that the magnitude of this positivity remains minimal. Another reason why the price of cement will not drop is the change in the region’s maximum retail price and corresponding sale tax. Under the third schedule, sales tax was applicable on maximum retail price prevailing in the country, and not according to the zine. Starting with 2015, the sales tax will be calculated on a region-wise basis, meaning that there will be different maximum retail price standards for the North and the South zones.

orders & equipment highlights

rders & equipment

Atlas Copco displays new Tier 4 Final QAS 45 portable generator Atlas Copco Portable Energy introduced the new QAS 45 portable generator at the New Orleans Rental Show. The unit features an Isuzu 4LE2X engine and a diesel

oxidation catalyst to achieve Tier 4 Final emission levels without the need for diesel exhaust fluid or a diesel particulate filter system. The generator is meant to be used for applications such as construction, oil and gas, rental and large events.

The QAS 45 is designed for predictable power and optimal operation, benefiting from a reliable alternator, a large fuel tank and a simple control panel The unit is equipped with a dependable Leroy Somer AREP alternator for superior motor starting capabilities. It also features a 72.5-gallon fuel tank for run times as long as 30-hours under typical loads. Sanghi Industries to invest in renewable energy and port development Sanghi Industries, one of the most important cement manufacturers in western India, has announced its plans to invest Rs 250 crore over the next couple of years in renewable energy and port development. As such, the company will invest Rs 150 crore in a new 15 MW waste heat recovery system and Rs 100 crore to develop its facilities at Navlakhi Port in Gujarat.

The Atlas Copco QAS 45 is equipped with an Isuzu 4LE engine and a diesel oxidation catalyst

The waste heat recovery project is underway, a contract having been signed for its installation at Sanghi Industriesâ&#x20AC;&#x2122; cement plant in Kutch, Gujarat. With this system, Sanghi will recover more than 70 percent waste heat generated from its cement manufacturing process, as well as saving valuable fossil fuels. Moreover, to conserve coastal soil, the company will plant mangrove on over 200 hectares on the Gujarat coast. The purpose of this initiative is to protect the ecology and coastal environment, as well as improve socio-economic development.

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orders & equipment in FLSmidth, stated that “The beauty of this collaboration is that we can fully leverage each other's strengths and market presence and efficiently target a global market opportunity. EnviroTex(TM) catalytic filter bags allow customers to upgrade their environmental equipment to fulfill tightened legislation at low cost and with minimum influence on existing production equipment.” The new product will be manufactured at FLSmidth’s bag production facilities in Georgia, USA, whereas the filter bags will be assembled at Topsoe’s catalyst production site in Houston, Texas.

The Atlas Copco QAS 45 is equipped with an Isuzu 4LE engine and a diesel oxidation catalyst

HaldorTopse and FLSmidth to market catalytic filter bag technology HaldorTopsoe, a world leader in catalysis, along with FLSmidth, leading supplier of equipment and services to the global cement and minerals industries, have signed an agreement to commercialize a newly developed catalytic filter bag technology. The product, which will be called EnviroTex catalytic filter bags and will be capable to remove dust, volatile organic compounds and nitrogen oxides in one integrated and cost-effective process. The

Cope gearbox from Renx to Loesche Mill

JANUARY - APRIL 2015

cement sector is a targeted one for the product. The feature that separates this product from similar ones on the market is that the EnviroTex consists of three layers of filter fabric, each layer containing a tailored catalyst optimized for the removal of specific kinds of compounds from the off-gas that passes through it. Talking about the collaboration between the two companies, Thomas Schulz, CEO

The 4+4 concept module for the new Loesche mill

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

Equipment manufacturer is building the largest type LM mill LOESCHE is building the largest mill type LM 7.4+4 Cope Drive, successfully adapting its module concept to a greater mill output. The development of the 4+4 grinding model offers more flexibility, allowing both throughout capacity to be achieved or 60 percent capacity, The development of the new mill came as a consequence of the increasing demands on the market, cement producers across the work being eager to increase their performance and requiring equipment that would enable them to do so. There are some notable improvements to this model. First of all, LOESCHE is making use of the COPE gearbox developed in cooperation with Renk. The gear offers a redundancy of up to 8 motors at the motor end, achieving a capacity totaling 8.8 MW.

Infrastructure & projects

nfrastructure & projects

Delays in infrastructure projects resulted in cost overruns More than 220 central sector infrastructure projects have suffered from delays in implementation, a fact which led to cost overruns to the tune of Rs 2.11 lakh crore. Nonetheless, the Indian central government has assured the public opinion that efforts are on to ensure their timely completion. Issues such as law and order problems and delays in land acquisitions have caused the postponements, said Union Minister of Statistics and Program Implementation V K Singh. Out of the 738project monitored by the Ministry, 224 have shown cost overruns, while 76 showed both time and cost overruns with respect to their original implementation schemes.

and to provide infrastructure to transport goods to and from ports in a quick, efficient and cost effective manner. The Sargamala Project will aid in achieving several broad-objectives of the government by optimizing the use of existing and future transport assets and developing new lines and linkages for transport assets and setting up logistic hubs. Delhi-Jaipur Expressway to be completed by June According to Highways Minister Nitin Gadkari, the much delayed Delhi-Jaipur

Expressway will be completed by June 2015. In his statement, the Minister mentioned that the Central Government is ready to build four bypasses by December for important towns, provided that the Rajasthan government offers land. "Finances for this crucial highway project, which has already been delayed, have been arranged. Eighty-five per cent of the work has been done and the project would be completed by June this year," he said. Gadkari insisted that the completion of the project is a high priority for his Ministry, given that the highway holds importance for busi-

Finance Minister Arun Jaitley has given assurance of increasing public spending on infrastructure. According to the minister, the government is currently trying to resolve the legal issues hampering the development of the infrastructure sector.

Source: walchand.com

New port infrastructure agreed with by the Modi Cabinet The Indian central government gave its â&#x20AC;&#x2DC;in-principalâ&#x20AC;&#x2122; approval for the concept and institutional framework of Sagarmala Project, which is aimed at port-led development in coastal states. The objective of the project is to promote port-led direct and indirect development INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

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infrastructure & projects INFRASTRUCTURE AND CONSTRUCTION PROJECTS/EXPANSIONS

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ness, tourism and cargo alike, being the lifeline of the Jaipur Lok Sabha constituency.

crore (or US$6.2 billion) for road building plans via the NHAI.

In so far, the Delhi-Jaipur highway project has been delayed because of reasons including land acquisition and contractual issues.

As such, the road ministry has decided on the increase of NHAIâ&#x20AC;&#x2122;s market borrowing limit of INR 9,000 to INR 30,000 crore, a decision which comes as a great help for the Authority in completing the infrastructure plans across the country.

NHAI attempts to move funds for road infrastructure projects The National Highways Authority of India (NHAI) has been having a hard time in raising funds for infrastructure projects because private players and banks have repeatedly pulled out of projects, as well as because of the economic slowdown experienced over the last few year. Nonetheless, with the development of the road sector being a key sector for the Modi government, the Finance Minister, Arun Jaitley, has announced during his budget speech in July the allocation of Rs 37,850

53 JANUARY - APRIL 2015

During the last quarter of 2014, NIHAI has managed to award projects worth INR 20,000 crore. Uttar Pradesh government goes ahead with dam construction The state government of Uttar Pradesh has decided to go ahead with construction work at the Kanhar Dam in Maoist-hit Sonebhadra district despite the National Green Tribunalâ&#x20AC;&#x2122;s (NGT) disagreement on its environmental suitability.

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

On December 24, 2014 the NGT stated that the environmental clearance granted to the project was not valid anymore, hence further constructions at the dam should be stopped. A petition was filed in this sense, and the case has been listed for hearing on February 13. The petitioners claimed that the ministry of environment issued a circular in 2008 stating that projects where no construction had started but have environmental approval, will have to seek one again under the Environmental Impact Assessment. Nonetheless, work at the Kanhar irrigation project on the downstream of the river Pagan, a project originally approved in 1976, had started a few months ago. The Uttar Pradesh government plans the dam to have a height of 59 meters and able to store about 600 cusec water.

analyst recommendations UltraTech Cement Analysts at s2analystics.com recommend “BUY” for UltraTech Cement stocks, citing the dividend yield of 0.38 of the company. On March 26, UltraTech was quoting at Rs 3,244.60, up Rs 107.10, or 3.42 percent, touching a 52-week high of Rs 3,252.80. The stock’s price-to-earnings ratio was 39.78, while the latest book value of the company is Rs 623.08 per share, meaning that the price-to-book value of the company was 5.21. The company’s stocks have been performing above expected margins due the UltraTech’s active steps towards securing its position as the leading Indian cement producer in the country. Shree Cement Motilal Oslaw’s latest report on Shree Cements highlights a growth in revenue of 28.7 percent year-on-year, led by strong volume growth due to newly tapped grinding capacity at Bihar. Positive operating leverage and lower freight costs have sustained a drop in EBITDA, leading to a bettered performance of the company. Motilal Oslaw recommends “BUY” with a target price of INR 9,778. India Cement Kotak Securities upgraded its recommendation for India Cements from “SELL” to

“ACCUMULATE” due to sharp uptick witnessed in cement prices in the southern region of India. More so, decline in freight rates, albeit lower dispatches, have tipped the balance in favor of the current recommendation. Nonetheless, the Indian cement manufacturer is still crippled by lowered dispatches, weak demand and high EBIDTA margins. The target price for India Cement stocks is Rs 115 (from previous Rs 101). Ambuja Cements Arihant capital markets’ report on Ambuja Cements highlight a “HOLD” recommendation for the company’s stocks following Ambuja’s 4QCY14 results. These results came below expectations due to the lower realizations when compared to the previous quarter, with volumes growing by only 2 percent over the previous year. Nonetheless, the equity company expects to see a revival in the investment cycle over the long term, despite of the issues persisting on the short term, such as weak demand and excess capital. ACC ACC stocks were some of the few to show positive close on March 27, analysts recommending a “BUY” target of Rs 1,590 and a stop loss of Rs 1,568. During the day, ACC stocks were quoting at Rs 1,565,40, down Rs 17.40, or 1.1 percent, having touched an intraday high of Rs 1,596 and an intraday low of Rs 1,560.

RATINGS CHAnGES

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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 20 most popular stories from CemWeek featuring India-related coverage, and the Global column shows the global events that gathered the most attention worldwide during the period. Visit CemWeek.com to access the full stories.

INDIA

GLOBAL

1 Possibility of a Italcementi-Heidelberg merger

1 India’s Binani Cement to sell grinding unit

2 CRH expects regulatory decisions on Holcim and Lafarge purchase

2 Holcim-Lafarge merger plays out in India

3 Lafarge and Holcim investigate possible revision of merger agreement

3 India’s anti-trust regulator asks Holcim-Lafarge to divest units

4 Lafarge Cement Zambia undergoes expansion at plant in Ndola, Zambia

4 Cement prices in India exhibit downward trend

5 Holcim and Lafarge reach agreement to salvage merger

5 Stocks of cement companies in India rose

6 Holcim and Lafarge get Mexico’s Cofece approval

6 Indian cement companies could benefit if Holcim-Lafarge merger crumbles

7 Holcim and Lafarge merger investigated for insider trading by Switzerland’s MPC

7 India’s coal, power and cement register double digit growth

8 South Africa’s PPC continues expansion into Africa

8 India’s Reliance Infrastructure to monetize Reliance Cement

9 European Union to rule on CRH acquisition of Holcim and Lafarge assets

9 HeidelbergCement India posted increase in sales

10 Bankers line up debt financing for bid on Lafarge Holcim assets

10 Cement makers in India reverse price increases

11 Italy’s Buzzi Unicem posts 2014 financial results

11 India’s UltraTech Cement wins Bicharpur coal block

12 Russia’s Ulyanovskcement posts steady growth

12 Stocks of Indian cement manufacturers fall

13 CRH shares plummet amid Holcim and Lafarge merger concerns

13 India’s Jaypee Group in talks with Heidelberg and JSW Cement for JV

14 Lafarge halts operation in Slovenia

14 India’s seaborne dry bulk trade likely to see a sea-change soon

15 Lafarge identifies candidates for LafargeHolcim CEO

15 Indian cement producer commissions clinkerisation line

16 Cemex and Trinidad Cement strike deal

16 India’s Dalmia Cement signs agreement for resource efficiency assessments

17 Apodi Cement seeks to install new cement plant in Sergipe, Brazil

17 India’s Jaypee Cement and Ambuja Cements get coal mines

18 Holcim said to sell stake in Thailand’s Siam City Cement

18 India’s Dalmia Cement boosts stake in OCL India

19 Uzbekistan will have a new cement plant

19 Cement market to grow in India

20 Construction for new cement plant to begin this year in Kyrgyzstan

20 Export-Import Bank of India extends credit to the Republic of Congo

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CW GROUP MEETING AGENDA The CW Group will be hosting and participating in a number of webinars and conferences. We invite you to join us on-line or in person at the events to discuss our views of the industry.

Conferences where the CW Group will be presenting

AshTrade Europe 2015 Fly Ash Industry Conference

April 22 - 23, 2015

Frankfurt, Le Meridien Park Hotel Frankfurt, Germany

Cement Business & Industry (CBI) Africa 2015

June 25-26, 2015 â&#x2039;&#x2026;

Johannesburg, Crowne Plaza The Rosebank, South Africa

Cement Business & Industry India 2015

September 3-4, 2015

Mumbai, India

Solid Fuels Summit (SFS) India 2015

September 4, 2015

Mumbai, India

AshTrade India 2015 Fly Ash Industry Conference

September 4, 2015

Mumbai, India

webinars hosted by cw research

Energy Outlook Petcoke, Coal May 7, 2015 at 2:00 PM GMT

cw summits

2015

CW Summit Americas 2015 September, 2015 Miami, US

For questions or inquiries please contact Liviu Dinu, Market Services & Marketing Consultant at the CW Group at ld@cwgrp.com For more information please visit http://research.cwgrp.com/meetings

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