India Cement & Construction Materials (vol 1 / issue 8)

india CemWeek A CemWeek Publication

Cement issue 8

SEPTEMBER / OCTOBER 2012

& construction Materials

Overcoming the Hurdles

Time to Cover

Stockpile Coverage Options

to Alternative

Fuel Usage Understanding cement

Q&A

Price of doing business

with the CW Group experts

Cement Trade Prices >Focus: Qatar cement prices

e d i s n i k c a p e t a g e l De News

|

Analysis

|

Market Coverage

|

Interviews

|

People Moves

india CemWeek

FEATURES 4 10

DEPARTMENTS

SHAPING THE AGENDA An interview with key members of the CW Group

OVERCOMING THE HURDLES TO ALTERNATIVE FUEL USAGE Moving past the challenges of alternative fuel usage

focus 6 14 31

1

EDITOR’S LETTER

2

NUMBERS IN BRIEF

38 18

TIME TO COVER TRANSFER CHUTE DESIGN Design conveyer systems for cement clinker

REGIONAL SPOTLIGHT: QATAR CEMENT PRICES

CEMENT BUSINESS & INVESTMENT (CBI) INDIA 2012 Welcome Program schedule Speaker biographies Floor plan Sponsor/exhibitor profiles

Highlights of the latest in broker recommendations

PROFILES Mangalam Cement: Building a successful brand image

22

MARKET AND COMPETITION

24

VOLUME AND PRICING

26

M&A and Finance

28

PROJECTS AND EXPANSIONS

25

PEOPLE

30

construction & building materials

32

ANALYST RECOMMENDATIONS

cement

SPECIAL EDITION

34

CW group’s global gray cement price index

Options for covering bulk material stockpiles

Prices remain steady on the back of strong construction activity

43

Finding common ground

EQUIPMENT UPDATES New products launched by several manufacturers including Elliott and XCMG

INFRASTRUCTURE & PROJECTS DLF to build India’s largest mall

Cement firms appeal CCI penalty

Cement prices remain under pressure

CRH secures 51 percent interest in Jaypee’s Gujarat plant

UltraTech to increase capacity by 19 percent

Holcim’s Ramit Budhraja promoted

REGIONAL UPDATE Pakistan wants government help to open export market

Cement & construction Materials

www.cemweek.com/india

CemWeek rOBERT MADEIRA CemWeek CemWeek diana heeb bivona ANTHONY FITZGERALD BMWeek Judy Foust BMWeek BMWeek cemweek publisher head of cw group reasearch

iccm manager

advertising

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

CW Group CW Group

©2012 CemWeek LLC. All rights reserved.

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

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

CW Group

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

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

The ownership of trademarks is acknowledged.

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

To subscribe please visit www.cemweek.com/india

Clic donw k here t subs load ou o cri r form ption !

E-Magazine is nice, but print copy nicer?

Subscribe to the print edition of the India Cement & Construction Materials magazine and have it mailed directly to you for an annual rate of USD150/ INR8,100 + Shipping & Handling. Contact CemWeek at sales@cemweek.com to place your order.

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

T: +1-702-430-1748 F: +1-928-832-4762 www.cemweek.com/india

848 N. Rainbow Blvd. Box #1658 Las Vegas, NV 89107, USA

letter from the editor

Finding Common Ground s the India Cement & Construction Materials (ICCM) journal staff worked on pulling together this issue and began our preparation to attend the upcoming CBI India event in Mumbai, one word kept drumming in my head. That word was “community” and how we are all part of an interwoven, vibrant community.

Community can be loosely defined as a group sharing common characteristics or interests. The global cement industry, while unquestionably vast, can definitely be considered a community, albeit a rather large one. Within that community are like-minded companies and individuals working toward their own specific goals, yet always willing to share information and experiences with others regarding innovations, advancements, and accomplishments.

We at the CW Group, and specifically ICCM, also see ourselves as part of that large cement community. The staff at ICCM, and our sister publication, the global and execu-

tive oriented CemWeek Magazine, are constantly searching for more. More information, more analysis, more insight, more knowledge, more market moving events and happenings to pass along to our community members. We are always looking for new ways to connect our readers in this ever-expanding global market.

When ICCM sent out a request for contributions to the magazine, we were not only pleasantly surprised by the sheer number of responses we received, but excited by the willingness of so many to share their knowledge and information with others. We are pleased to feature two of those rather eclectic offerings from guest contributors.

In addition to our feature article, “Overcoming the Hurdles to Alternative Fuel Usage,” Colin Benjamin and Jibananda Samal provide a detailed look at the sustainability and maintainability of conveyor systems in “Designing Transfer Chutes to Handle Cement and Clinker” Kari Kauppi rounds off our guest coverage with “Time

to Cover,” which discusses stockpile coverage options for bulk materials.

The theme of community will likely once more prevail when hundreds are expected to gather for the GMI Forum’s “Cement Business & Investment (CBI) India 2012” in Mumbai on October 10 and 11. What greater example of community exists than to see so many knowledgeable professionals coming together to share ideas and innovations? Finding common ground strengthens the Indian cement community as well as the global cement community.

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

Diana Heeb Bivona ICCM Project Manager

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

1 Week CW Group CemWeek BMWeek September/October 2012 Coal CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

numbers in brief CW Group Research:

Global Cement Trade Price Report Presenting a wide range of data regarding import and export prices for gray cement, white cement and clinker, the report serves to meet the demand of data users in research, planning and decision-making areas to support the construction sector. he trade activity of more than 50 countries is integrated into the comprehensive CW Group’s Global Cement Trade Price Report (GCTPR) on a monthly basis. Presenting a wide range of data regarding import and export prices for gray cement, white cement and clinker, the report serves to meet the demand of data users in research, planning and decision-making areas to support the construction sector.

The CW Group’s global gray cement price index (FOB) witnessed a positive affect pricing in the second quarter of 2012.

After registering a decline in the first three months of the current year, the average price for gray cement was projected at US$88 per ton in April. This suggested a growth rate of around 17.3 percent compared to the first quarter of 2012 and a 3.5 percent increase YoY. In contrast, according to the CW Group’s preliminary index calculations, May 2012

brought a 5.7 percent MOM decrease.

Looking back at the same period in 2011, a similar decline of around 3.6 percent was seen. However, the gray cement FOB average of US$83 per ton in May was in the range of last year’s levels.

average price of US$54 per ton (3.84% increase MOM). May 2012 brought an additional 1.84 percent growth MOM. However, Asia and the Pacific remained the region which trades gray cement at the lowest prices.

Gray cement FOB prices varied worldwide and underwent changes during April and May, compared to the first quarter of 2012.

The North America and Caribbean region, as well as Western Europe, reported significant increases of 13.7 percent and 4.7 percent respectively in April and May, compared to first quarter results.

Global gray cement prices (FOB average) were also impacted by the decline witnessed in eastern Europe, Scandinavia, the Baltic and Mediterranean Basin regions - in particular Spain and Italy. Questions remain regarding Greece’s cement exports to the US over the medium to long term, and the likelihood of Greece exiting the Euro zone.

After closing the fourth quarter of 2011 on a high note with an average price for gray cement of US$60.33 per ton, and after reporting a significant decrease by around 12 percent in the first three months of the current year, Asia and the Pacific region started to register higher price points.

In April 2012, gray cement traded at an

Global Gray FOB (average $/ton)

BMWeek BMWeek

CemWeek CemWeek

CW Group CW Group

Coal Week Coal Week

Global gray cement export prices (average $/ton)

All available countries (full GCTPR country set)

Italy

Last available countries (comparing the set consisting of the most recent reporters only) $100

Spain

September/October 2012

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

Apr-12

Jan-12

Oct-11

Jul-11

Apr-11

Apr-12

Jan-12

Oct-11

$50 Jul-11

$50 Apr-11

$75

Jan-11

$75

Jan-11

$100

Source: The CW Group

2

The current cement surplus situation is driving many manufacturers to seek out new export opportunities. However, cement imports appear to be heading on a downward trend. This scenario may lead to a further reduction in price in the future. BMWeek CemWeek CW Group Coal Week

Source: The CW Group

LEADER COMMENTS

SHAPING THE AGENDA Several members of the CW Group, the leading global cement advisory and research firm, and publisher of the India Cement & Construction Materials (ICCM) magazine, will feature prominently at the Cement Business & Industry (CBI) India 2012 conference. ICCM magazine sat down with a few of the group’s key members to gather their thoughts on the event and the role the CW Group will play in this groundbreaking gathering.

hen asked why CW Group members from the U.S. and Europe were heading to India, Robert Madeira, CW Group Managing Director and Head of Research, responded, “India is a very exciting long-term story and no doubt one of the giants on the global scene. The Indian cement groups, though largely domestic, are increasingly becoming global forces so as a global advisory firm, I decided that this was a great forum to throw all our weight, resources, behind and show our support for the market, as well as provide perspectives on guiding the companies outside of India.”

Madeira saw the work that GMI conferences was doing in organizing the event to be a good fit, and was excited to be a part of the event. “GMI has done a fantastic job in finally creating a new forum for industry thought leaders, and we’ve been very comfortable working with GMI throughout the planning stages in shaping a strong agenda for the industry,” Madeira said.

Madeira was particularly excited to share his views on the previously unseen executive participation at the event. “The CW Group and I are hosting an invitation-only CEO & Executive Forum at the CBI together with Mr. Jean-Michel Allard, retired Member

4

September/October 2012

India is a very exciting longterm story of the Board and deputy-CEO of Francebased Vicat. This is a fantastic forum for the CEOs, promoters and chairmen of India’s leading cement companies to hear from the CW Group and some of our hand-selected guest speakers on global and local issues that the executive agenda is focused on.”

“This is another arm, if you will, of our agenda as industry analysts to help share our views, and those of our colleagues with the who’s who in the industry, including Mr. Manoj Gaur (CEO, Jaypee), Mr. Sumit Banerjee (Vice Chairman, Reliance Cement), Mr. Puneet Dalmia (Managing Director, Dalmia Cement), Mr Shailendra Chouksey (Wholetime Director, JK Lakshmi), Mr. Martin Kriegner (CEO, Lafarge India), Alok Sanghi (Director, Sanghi Cement), Maurizio Caneppele (Managing Director, Zuari Cement) among many other captains of the India cement industry.”

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

Attending with Madeira is one of the CW Group’s key members, Claudia Stefanoiu, the Group’s Senior Analyst from the European Analytics Team. Stefanoiu will lead several discussions and present a rare sneak peek into the company’s proprietary informational databases.

“I am sharing some highlights from the Group’s latest analytical research at the main

Robert Madeira, CW Group Managing Director and Head of Research

session of the event. Additionally, I will be presenting a more detailed perspective with regard to our forecasts, cement prices, cash production cost curves and much more at the CW Group Workshop held the day before the main event. The workshop is a great forum for some of our old industry friends and new ones to dive into our research in an interactive format and stems from many of our clients asking us to share our thoughts in this sort of format,” she said.

Stefanoiu added, “The CW Workshop is a bit of a digest of our ideas and our views and conclusions from our research. We’ll cover the global market, with our perspectives on the main trends, best practices, and opportunities, broadening the discussion beyond India. We are bringing this new concept to the cement sector and it made sense to align with the CBI India 2012 conference as a platform.”

ICCM BACKS CBI CW Group affiliated CemWeek’s India Cement & Construction Materials journal (ICCM) is a major supporter of the conference. “When approached by GMI with the idea, we were very excited to be a sponsor for this event. We saw it as a natural fit between two innovative and unique platforms both working to inform and help shape the Indian cement sector,” said Diana Heeb Bivona, Senior Associate & CW Publication Manager.

Heeb Bivona added, “India is a booming market that has shown tremendous growth over the last few decades and is likely to continue to remain a growth market at least in the immediate future. As the premier cement and construction magazine for India, being involved with such an event on a grassroots level is groundbreaking and ICCM has every intention of being there to cover it.”

INFORMATION AND PEOPLE The CW Group workshop and CBI conference offers a wealth of information, including sessions presenting and conducting group work and presenting data and analytics tools. The CW Group is

Claudia Stefanoiu

me with a wonderful opportunity to dig deeper into the markets I love. As perhaps an illustration of our strong emphasis on research and insights, I also teach undergraduate and graduate level business courses at two universities along with my work at the Group. The interaction I have had with professionals from around the world, in connection with the preparation of CW Group’s publications has also enriched the International Business courses I teach – it is a great two-way street of thoughtsharing,” added Heeb Bivona.

We are fortunate to draw on the experience and knowledge of a multitude of analysts. unique not just because of its market edge, but because of the people that comprise the team. “As a group, we are fortunate to draw on the experience and knowledge of a multitude of analysts, writers, researchers and guest contributors that are not just in India but also from around the world. I think this provides the Group, and our publications, with a good balance of locally relevant news and events, as well as information that is global in focus,” says Diana Heeb Bivona.

Asked about the background and expertise of the CW Group staff heading to India, Diana Heeb Bivona laughingly said, “We are an unbelievably diverse team that brings an eclectic mix of background and experience to the table, and in my opinion, that’s what makes us so strong.”

“Since earning my MBA seven years ago, I have run my own business consulting firm, specializing in emerging markets, so now having the opportunity to work with the CW Group, and specifically the ICCM publication, has provided

Robert Madeira brings extensive functional experience in management consulting, corporate development, and investment management to the group. He holds an MBA from the Harvard Business School and a triple-major from Brown University.

Stefanoiu’s background is no less interesting. “I started my career as a quantitative and analytical sampling specialist at well-known market research company. My background in both economics and law with a keen interest in research and data-driven analysis eventually led me to work with the CW Group. Today, I lead several of our analytical core processes, including our cement volume forecasts and cement price analytics as well as market research,” she explained.

“I like that it’s exciting work and that we are doing something that really no one else in this industry is doing. We are a highly innovating company that never stands still; we’re always trying to identify emerging client needs and provide solutions that we see fill gaps.” BMWeek CemWeek CW Group Coal Week

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

BMWeek BMWeek

CemWeek CemWeek

CW Group CW Group

Coal Week Coal Week

5 Week CW Group CemWeek BMWeek September/October 2012 Coal CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

focus Time to Cover:

Bulk Material Stockpiles Kari Kauppi, Director of Temcor Rollwell Domes

6

September/October 2012

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

Traditionally most bulk materials have been stored in open stockpiles. However, today’s environmentally-conscious society considers most open air stockpiles unacceptable and, as a result, more stringent environmental regulations are being adopted by governing agencies in all parts of the world.

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

7 Week CW Group CemWeek BMWeek September/October 2012 Coal CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

FOCUS irborne dust is not only a public relations problem; it is a housekeeping and a health and safety issue at the plant level. Airborne fugitive emissions because of activities such as loading, unloading, transfer and storage, and concerns over groundwater contamination attributed to open stockpiles are real. The associated financial loss is also paramount. For example, it is estimated that between two to five percent of stored product is lost from open stockpiles due to wind erosion alone. Fortunately, there are more effective alternatives for stockpile storage.

To Cover or Not to Cover?

In the past, perhaps the cost, and certainly the practicality, of enclosing larger stockpiles kept many owners from doing so, but times have changed, and it is becoming more and more evident that it may not be a matter of choice for much longer.

What would be the benefits, financial and other, of covering? There are several

such as airborne pollution control, which reduces dust emissions to prevent contamination of the atmosphere and surrounding areas and ground water pollution control to eliminate contaminated rainwater runoff. This reduces contamination of the food chain by not polluting potable water sources and the soil. Looking at India specifically, the monsoon season plays havoc with open stockpiles; the losses of product and the impact on the environment (groundwater and/or surface water) can be substantial.

Reduced product degradation allows for more consistent raw material quality and improved product quality and stable process conditions. Better operational efficiency from uniform product moisture and more frequent ‘on target’ and less ‘off grade’ product results can lead to higher profits.

A cleaner facility provides for improved morale and workforce efficiency, as well as lower plant clean-up and grounds maintenance costs. Reduced equipment mainte-

Storage System General Overview

System

Attributes

Drawbacks

Linear

■■ S tacker/Reclaim - permits simultaneous stacking and reclaim.

■■ Storage Capacity - limited only by the practicality of operating a stacker reclaimer over a given length.

■■ Product per Storage - unlimited number of different products in one line ■■ Blending or Storage - some blending possible depending on system selected ■■ Reclaim Capacity - ~ 6,000 t/hr

■■ C ost of covering these linear yards is prohibitive

Dome Silos

■■ S tacker/Reclaim - each silo or dome silo requires a separate feed and reclaim ■■ Product per Storage - one product per enclosure (silo or dome silo) ■■ Blending or Storage - some blending possible ■■ Reclaim Capacity - 2,000 t/hr to 2,500 t/hr

■■ L imited in storage capacity (max. approx 1/3 of the circular dome covered systems) ■■ Installation and maintenance of multiple systems will be more labor intensive and costly, and will result in more complex controls.

Stacker Reclaimer – conventional circular system

■■ S tacker/Reclaimer: Circular stacker and bridge-type reclaimer enable simultaneous stacking and reclaim.

■■ Product per Storage: Generally for efficient use of space, only one material per enclosure ■■ Blending or Storage: Depending on selection of stacker reclaimer, most efficient blending is achieved in these storage systems.

■■ Reclaim Capacity: up to about 3,000 t/hr

8

September/October 2012

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

nance costs can be enjoyed because facilities have reduced the dust particles that can contaminate machinery such as bearings, air filters and various engine parts. Capital investment in new or replacement equipment can also be reduced because dust damage is lower. Finally, facilities can enjoy better corporate images as local opposition to operations or expansions may decline.

Cover Options Common solutions for closed bulk material storage systems can be broadly viewed in three categories: concrete dome silos with air slides or mechanical reclaims systems; linear storage buildings and A-frames with linear stacker/reclaim system; and aluminum or steel domes with a circular stacker/reclaimer. Consideration in choosing a covered stockpile configuration should always be based on the ability of the stacking and reclaim equipment and cover to fulfill the material handling and storage requirements necessary for optimum plant operation. The secondary consideration should be cost and maintenance; i.e. the life-cycle cost.

The stacker reclaimer, or material feed and discharge system, is key. It must be able to manage the correct amount of required storage for proper plant operation. Unfor-

tunately, reclaim equipment and storage capacity sometimes dictate the shape and size of the stockpile. It is important to note that only storage of materials is considered here, not blending operations, which requires specialized stacking and reclaim equipment for optimum results.

Material Matters Domes are constructed out of materials such as steel, concrete, and aluminum.

Steel domes have been used for various applications around the world. Steel buildings can be very expensive where corro-

sion protection layers must be applied to all components, such as in marine environments. The erection of these domes can be labor-intensive and potentially require the use of heavy equipment.

Concrete domes and incorporated silos have been used mainly in North America for years for the storage of fly ash, cement, fertilizers and other light products. The size and capacity of these structures is limited. Both mechanical and pneumatic systems are used, depending on the stored product characteristics.

Clear-span aluminum domes were first used over 45 years ago in industrial application, and eventually found themselves as the structure of choice for bulk material storage because of their advantages at large diameters. Advantages of aluminum domes include reduced construction, foundation, conveyor and stacker/reclaimer costs, but note that these cost savings are somewhat dependent on the application, location, etc.

Additionally, since aluminum has low emissivity and high reflectivity, these covers do not radiate heat or cold, which helps to keep the interior of the storage area cooler. In short, aluminum roofs are energy efficient in use and made of a recyclable material, allowing scrap value.

Change on the Horizon Emerging environmental regulations and the desire by major global companies to be better corporate citizens have created a new demand for stockpile covers that make sense on many different levels. Stockpiles covers not only protect raw materials for use in a plant, potentially improving final product quality and reducing operating cost, but they also make good sense for the environment. BMWeek CemWeek CW Group BMWeek BMWeek

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

CemWeek CemWeek

CW Group CW Group

Coal Week Coal Week Coal Week

9 Week CW Group CemWeek BMWeek September/October 2012 Coal CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

Feature

Overcoming the Hurdles to Alternative Fuel Usage With the mounting burden of energy costs, concerns with the long-term availability of fossil fuels, and increasing awareness of greenhouse gas emissions, cement manufacturers are growing more focused on developing and instituting cost-effective alternatives. The hurdles to change have proven challenging, but several are leading the charge in overcoming those roadblocks.

10

September/October 2012

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

istorically, coal has been the primary fuel source for the Indian cement sector, with petcoke largely filling the balance. However, domestic coal suppliers are unable to meet the growing coal demand, thus pushing cement producers to either import at higher prices or look for other solutions.

Looking from the perspective of alternative fuel and raw materials usage, the Indian cement industry still remains far behind its European / Japanese counterparts, with some European countries reaching a thermal substitution rate as high as 40 percent in their cement manufacturing facilities.

In contrast, the Confederation of Indian Industry estimates show that the current thermal substitution rate in the Indian cement industry is less than two percent.

A Variety of Options & Advantages Alternative fuel options incorporated in cement kilns are designed to either ensure the partial or complete substitution of fossil fuels in the production process. Various manufacturers within the industry have looked to a variety of alternatives in recent years. These alternatives have included forms of gaseous fuels (landfill gas, pyrolysis gas, biogas), liquid fuels (tar, chemical waste distillation residue, oils, solvents) and solid fuels (tire chips or tire derived fuel, wood waste, paper waste, plastic, Replacement of oil and coal by alternative fuels in the cement sector Country

Percent (%)

Netherlands

83

Korea

50

Switzerland

48

Germany

42

France

34

Belgium

30

Great Britain

6

Japan

10

USA

9

India

2 Source: Confederation of Indian Industry

municipal waste, industrial and hazardous waste such as paint sludge, refinery waste sludge, effluent treatment plant sludge).

There is an increasing receptiveness among Indian cement manufacturers to explore the use of alternative fuels. For example, ACC is testing co-processing plastic and municipal waste as an alternate fuel source, while UltraTech Cement is exploring the usage of several alternative fuels, such as liquid industrial organic solvent and the co-processing of hazardous waste.

Lafarge India is using rice husk as an alternative fuel in its cement kiln at the Arasmeta cement plant, and Madras Cements has started using biomass as an alternate fuel at its Alathiyur plant. Grasim Industries utilizes municipal solid waste at their Vikram plant. Binani is using common effluent treatment plant sludge as an alternate cement kiln fuel, and India Cements is firing low sulfur heavy stock sludge in cement kilns.

The advantages of alternative fuels as substitutes for fossil fuels are well documented and may explain their rising popularity.

Out of the numerous benefits, a reduction of CO2 emissions is frequently cited.

Other popularly cited advantages include the reduced cost of clinker production due to the use of inexpensive fuel, increased preservation of fossil nonrenewable fuels, the usage of hazardous substances which will be destroyed in the process, high thermal efficiencies, fulfillment of substantial dump disposal and, finally, high-yielding ecological balance.

However, using alternative fuels presents a set of challenges that ranges from the need to adjust production systems and adapt the handling processes and facilities to the logistical aspects of ensuring a steady stream of alternative fuels.

Production Hurdles The use of alternative fuels can bring with it production challenges, as systems must be adjusted to account for the change. Depending on the fuel utilized, cement operators may find themselves tackling issues such as poor heat distribution, blockages in the pre-heater cyclones, unstable pre-calciner operation, buildups in the kiln riser ducts, dusty kilns, higher SO2, NOx and CO2 emissions and overall clinker quality.

However, the long-term advantages of

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

11 Week CW Group CemWeek BMWeek September/October 2012 Coal CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

Feature alternative fuel adoption often motivate cement manufacturers to invest in the needed technological modifications.

As expected, the use of alternative fuels often requires adjustments to the existing systems and facilities of a cement plant. One company that has successfully undertaken the conversion is Grasim. Grasim underwent the necessary modifications in 2007 at its Vikram plant. The facility installed systems that included components to address the unloading, storage, dosing and feeding of municipal and agricultural waste, as well as of tire chips. A special silo with walking floor extraction and a closed belt conveyor system were installed in order to avoid hygienic and environmental problems from handling the waste products.

Ensuring a Steady Stream One of the often-raised issues regarding a conversion to alternative fuels surrounds the

12

September/October 2012

Alternate Raw Materials for Cement Manufacturing Raw Materials

Waste Material

Industrial Sources

Clay mineral / Al2O3

Coating residues Aluminium recycling sludge

Foundries Aluminium industry

Limestone / CaCO3

Industrial lime Lime sludge

Neutralization process Sewage treatment

Silicates / SiO2

Foundry sand Contaminate soil

Foundries soil remediation

Iron-oxide / Fe2O3

Roasted pyrite Mechanical sludge Red sludge

Metal surface treatment Metal industry Industrial waste water treatment

Si-Al-Ca-Fe

Fl ashes Crushed sand

Incinerator Foundries

Sulphur

Gypsum from gas desulphurization Chemical gypsum

Incineration Neutralization process

Fluorine

CaF2 filter sludge

Aluminium industry

Source: Alternative Fuels Utilization in the Cement Industry, Confederation of Indian Industry, Jan. 2012

issue of a sustainable future supply. Fortunately, two sources are promising: tires and municipal and industrial waste. It is estimated that about one billion tires become waste globally every year. With a higher

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

energy content than coal, and the possibility of locking the heavy metal residues into the clinker, tires are offering the industry an abundant alternative. The same can be said about municipal and industrial waste, anoth-

Cement Production by Variety in India

8%

25%

1% Portland Pozolona Cement Ordinary Portland Cement Portland Slag Cement Others

66%

Source: Alternative Fuels Utilization in the Cement Industry, Confederation of Indian Industry, Jan. 2012

er potential cost-effective solution of which there is not likely to be a shortage of anytime soon. Both alternatives can reduce the amount of coal used in the production process and may explain why companies such as Grasim, JK Lakshmi and Rajshree Cement Industries have taken up the cause of alternatives like tire-derived fuel (TDF).

Agreements with various municipalities to obtain waste have also been established. Grasim industries entered into an agreement with Jaipur Municipality

for the regular supply of waste, prompting Grasim to set up an infrastructure for processing, handling, feeding and burning municipal waste at its Vikram Cement plant. With more than 40 mtpa of municipal waste (and growing), the potential to substitute coal with waste material could reach 40 percent in a one million ton plant.

Moving Forward With a global and local focus on better waste management and the current pressure of rising fossil fuel prices, it is likely that India will see an even greater increase in alternative fuel usage. Obstacles have been challenging, but cement manufacturers and their partners continue to find ways to overcome these roadblocks. Given the ongoing attention given to alternative fuels and the increasing investments in related research, development and technology, the use of alternatives will soon no longer be the exception but the norm. BMWeek CemWeek BMWeek BMWeek

CemWeek CemWeek

Limestone

While the use of TDF has become a more acceptable option for the Indian cement industry, so is the utilization of municipal and industrial waste. Recognizing the importance of securing a consistent supply, many cement manufacturers have called for greater waste and industrial management legislation that would provide cement manufacturers with access to a sustainable flow of alternative fuel sources.

However, until that occurs, the instrument being used to lock-in these materials is the long-term closed contract.

Examples of such contractual arrangements include Grasim Industries at Rajashree Cement, Gulbarga and Karnataka entering into agreements with BASF India to supply ETP Sludge. Gujarat and Ambuja Cement have secured their TDI Tar from Narmada Chemature Petrochemicals, as have Lafarge India, Raipur and Chattisgarh.

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

13 Week CW Group CemWeek BMWeek September/October 2012 Coal CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

CW Gro CW Gro CW Gro

focus

DESIGNING TRANSFER CHUTES TO HANDLE Cement Clinker Colin Benjamin, Gulf Conveyor Systems and Jibananda Samal, RSB Transmissions

Belt conveyors in bulk material handling are complex systems, due to the interplay of a large number of variable factors which are highly dynamic. Fortunately, the Indian industry has started realizing this, and more emphasis is being placed on the sustainability and maintainability of the conveyors.

14

September/October 2012

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

he stringent environmental norms, along with the desire to be a safe and clean organization, have initiated a desire to improve the performance of the belt conveying system and make it cleaner, safer and more efficient. Also, the urge to improve upon the operating costs to remain profitable compels managers to look for an engineered solution to their bulk material handling requirement.

The majority of the problems with transporting ores and clinkers in today’s conveyor systems can be attributed to the design and functionality of the transfer chutes feeding these conveyors. A poorly designed transfer point invariably becomes a large source for dust and spillage, perennially requiring a maintenance team and a hefty budget to somehow keep the system operating. Besides recurring additional operating expenses, an organization also spends more on capex since the common solution to counter dust problems has been to use dust collection systems, usually based on bag houses or to install fully enclosed or pipe conveyors. The use of a dust collection system is expensive and leads to additional maintenance problems, not to mention the managing and disposal of the dust collected.

MINIMIZING DUST AT TRANSFER POINT There is another solution wherein the problem is managed by addressing one of the major points where dust is generated at the transfer point between the conveyor belts.

allowed to fall into a contained area such as a transfer, then it will displace the air mass present and this activates the air such that it will pick up fine particles, creating a dusty environment.

Fig 1: Air Turbulence Inside a Transfer Chute

In a transfer chute, this can be best summarized using the drawing to the right, (Fig. 1) given that when we enclose a transfer we usually eliminate external weather effects.

Given that dust created in a transfer is created either by induced air flow or displacement of the air mass, we could also logically see that introducing any system that relies on “sucking” the dust up such as a bag house dust collection system is exactly the wrong approach. It increases the energy of the air mass and this in turn increases the volume of dust within the transfer.

THE “HOOD & SPOON” TRANSFER CHUTE The approach we would therefore like to outline here is one that is being used very successfully in countries such as Australia and the United States. It has the advantages of being maintenance-free and it does not add significantly to the cost of an ordinary transfer chute. The key is designing a transfer where we control the material flow within it well. Classically, in the case of the cement clinker, we

would usually design around what is termed a “hood and spoon” transfer as this gives us very good flow control and wear management is not an issue.

In order to design a good “hood and spoon” transfer chute we need to ■■ Accurately assess the material trajectory into the transfer and then intercept the material flow at very shallow angles (less than 20 degrees) using a deflector (hood element) such that we turn the material vertically down the transfer chute.

■■ Set the deflector or “hood” element so

Before we look at how we can minimize dust at a transfer through the design of the transfer chute, we first need to understand the source of the dust. In order for dust to be generated, the surrounding air mass must be energized. This usually occurs through: ■■ Wind or natural air turbulence.

■■ Induced air flow. In other words, a conveyor moving at three m/s in a static air mass then there is a relative speed differential that through friction will see the air mass activated to the point that it can and will pick up microfine material.

■■ Displacement of air. If material is

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

15 Week CW Group CemWeek BMWeek September/October 2012 Coal CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

focus Fig 2

Fig 3

that the center of mass of the material flowing out of the “hood” element is over the center line of the receiving belt.

■■ We then need to collect the vertically flowing material (also at very shallow angles, less than 20 degrees) and turn it in the direction of the receiving conveyor belt. This is the feed or “spoon” element of the transfer. With the cement clinker, we would set the feed element as low as possible over the receiving belt and shape this element so that loading on the belt takes place centrally in a profile similar to that of the troughed belt. The outlet of the “spoon” element would be about 35 degrees to alignment of the receiving belt. Logically, the “spoon” element is centralized over the receiving belt.

In many ways, this could be described as the standard design process for a quality transfer chute. What follows is minimizing and controlling the dust produced.

The process can be broken into three (3) steps: 1. Transfer Chute Design We design the transfer so that we minimize the ore profile within the transfer, thus minimizing the surface area of the clinker exposed to air.

This is achieved in a number of ways:

16

September/October 2012

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

Fig 4

■■ Consolidation of the material flow within the “hood” element by creating a taper so that when the clinker exits the “hood” element, it has the width of approximately two-thirds of the width of the receiving belt.

■■ Design such that capacity of the overall conveyor system does not exceed a CEMA capacity of 80 percent (since overloading makes dust control a lot harder) ■■ Enclosing the clinker flow from the “hood” element through to the “spoon” element in a pipe section such that we minimize the air volume around the flow mass. This element is not designed to contact the ore, only reduce the mass of air that can interact with the flow.

2. Sealing Arrangements This is all about minimizing the amount of air that enters the transfer chute and making sure that there are no easy air escape routes (as any uncontrolled escaping of air will be in the form of dustladen air).

■■ Seal the inlet and outlet of the transfer in order to minimize air coming in and leaving. This is typically done by using rubber curtains profiled to the ore mass as shown above (Fig. 2): ■■ Seal the rear of the transfer by creating a profiled section that closely follows

(without touching) the belt profile at the back of the transfer.

■■ Use a lap style skirting system that will create a positive seal in and around the transfer. Also, the inner skirt should deflect the clinker centrally and away from the rubber skirts as shown above (Fig. 3).

3. Dust Reduction The key consideration here is that the way the material flows also dictates the way the air will flow. By controlling the material flow in the transfer and using good sealing, we should have a very predictable airflow within the transfer.

As we know where the air will flow, all we need to do is either give it time to slow so that the dust will settle out as it loses energy or to accelerate by de-energising the air mass. We recommend both. You can de-energize the air mass by a process commonly called “stilling,” which essentially is turning the air flow back on itself. This, in turn, causes turbulence within the air flow and effectively reduces its contained energy and therefore ability to keep the dust particles in suspension.

Steps followed: ■■ We enclose the whole transfer in a “box”.

It will have an extension piece out the front and over the receiving belt of about ten meters as shown above (Fig. 4).

Fig 5

■■ We incorporate a series of additional rubber curtains (like what we have at the inlet and outlet of the transfer) within the extension piece to intercept the air flow and turn it back into the body of the transfer, as shown above (Fig. 5).

■■ Through sizing and containment (sealing), we give the dust time to settle.

Using this process, we have successfully eliminated the need for a dust collection system and have achieved extremely low dust levels around the transfer (much lower than can be achieved by any other means). The process is maintenance-free: there are no moving parts; there are no elements that are subject to much wear; and, most, importantly, the dust that is generated is settled back into the material flow so there is no “dust collection” that has to be disposed of. BMWeek CemWeek CW Group

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

BMWeek BMWeek

CemWeek CemWeek

CW Group CW Group

Coal Week Coal Week Coal Week

17 Week CW Group CemWeek BMWeek September/October 2012 Coal CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

COMPANY PROFILE

MANGALAM CEMENT:

BUILDING A SUCCESSFUL BRAND IMAGE Mangalam Cement enjoyed a solid financial performance in FY2012 following a difficult previous year. With an eye to the future, and boasting a stronger bottom line, this cement manufacturer is looking to expand its operations.

18

September/October 2012

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

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

19 Week CW Group CemWeek BMWeek September/October 2012 Coal CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

COMPANY PROFILE angalam means “conducive to success” in Sanskrit, and the name appears to be fitting when describing Mangalam Cement (MCL). Since taking root in 1976 and commencing production in 1981, MCL, a member of the B.K. Birla Group, has become one of the leading cement and clinker businesses in the northern and central part of India today. Through pure determination and creative marketing, the company has been able to create a strong brand image.

OPERATION AND PRODUCTS MCL is headquartered in Calcutta where the operating cost is comparatively lower than the regions where it sells its products.

Three more regional support centers are located in Kota, Jaipur and Delhi. These regional offices play a major role in the company’s sales, marketing and supply chain by covering the central and northern Indian provinces including Delhi, Haryana, Rajasthan, Madhya Pradesh and Uttar Pradesh.

MCL has cement plants with the present capacity of two million tons. It operates three core lines of products that include Birla Uttam Cement (43 and 53 Grades) and Birla Uttam Cement (PPC). The company produced 1.63 million tons of cement and 1.41 million tons of clinker in FY 2011-12, up from the previous year of 1.51 million tons and 1.38 million tons, respectively.

MCL’s cement operations are backed by a full-fledged captive power plant of 35 MW capacity in Kota, Rajasthan; a valuable asset to support the company’s uninterrupted production in a place where energy crises often undermine efforts for companies to operate at their highest potential. A wind power plant located in Jaisalmer, Rajasthan with a peak capacity of 14 MW also contributes to the residual energy needs.

The company has more than a thousand dealers spread all over the geographical locations where it operates, along with 900+ dedicated and competent employees to run and oversee the operation.

20 September/October 2012

Gross FY Sales for 2008 to 2012�(Rs in Cr.) 681,84

646,31

595,87

564,71

2008

2009

2010

2011

622,14

2012

Net Profit Loss for 2008 to 2012 (Rs in Cr.) 200 180 160 140 120 100 80 60 40 20 0 2008

2009

2010

2011

2012

Total Monthly Cement Production & Dispatches (2012) 180000 160000 140000 120000 100000

Production

80000

Despatches

60000 40000 20000 0

April

May

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

June

July

August

MCL’s success can be attributed to several strengths. These strengths include a track record of cost-effectiveness in cement production backed by state-of-the-art technology, competence in procuring and managing best-in-class raw materials at a lower price, low labor cost in its plant locations, a robust infrastructure with sustainability initiatives integrated into policy framework (such as use of renewable energy sources) and managing and reducing environmental impacts effectively. Self-sufficiency in meeting energy demands, a debt-free status with no-term loan or capital bank borrowing, and good credit ratings are also considered strengths of Mangalam Cement.

FINANCIAL HEALTH MCL posted solid numbers in the first quarter of FY 2013. The company experienced top-line growth at an average of 50 percent and a rise in EBIDTA per ton by 17.6 percent to Rs 790 per ton yearon-year (YOY). Despite an extremely competitive market, the company was able to double its YOY net profits to Rs 263 million for the quarter. Moreover, the company’s net worth reached its highest mark ever in FY2012, standing at Rs 4,273 million.

Gross profits have risen on a Q-o-Q basis for the last three quarters. MCL’s gross sales and gross profit hit its highest mark in FY2010, while FY2008 and 2009 also did well. In FY2011, both revenue and profits had slumped, but appear to have bounced back in FY2012.

EXPANSION INITIATIVES IN THE PIPELINE The company has taken a Rs 5,000 million multi-dimensional capex initiative

to augment its production capacity of both cement and clicker production by 2013, and also to add a second thermal power plant with a capacity of 17.5 MW. With its planned expansion, cement capacity will reach 3.25 million tons by the end of 2013 while the clinker capacity will go up by another 0.5 million tons from its existing mark in April 2013.

Financing for the expansion will largely come from internal cash accumulation and some bank loans.

WHAT’S NEXT? Mangalam Cement, with a planned capacity increase of more than 50 percent, and in combination with its current favorable positioning in the market, is rightly poised to experience strong growth. The convergence of several favorable conditions working together, such as growth in volumes, improvements in realizations, its presence in more demanding Indian markets, as well as a low percentage of depreciation has already provided MCL with a solid foundation. When powered by organizational excellence and pragmatism in strategic decisions, the chances of making this gain even greater may just be right around the corner for Mangalam Cement. BMWeek CemWeek CW Group BMWeek BMWeek

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

CemWeek CemWeek

CW Group CW Group

Coal Week Coal Week Coal Week

21 Week CW Group CemWeek BMWeek September/October 2012 Coal CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

cement market & competition

M

arket and competition

ement firms assessed a penalty under the CCI’s cartelization investigation have lodged an appeal. India Cements wants to diversify, and it believes exporting may be the key. For JSW Cement, expansion is the focus as it increases its production capacity.

APPEAL OF FINES Ten cement firms in India have approached the Tribunal for a redress in cartel fines imposed by the government. Last June, the Competition Commission of India (CCI) imposed a penalty of Rs 6,307 crore on 11 cement companies for cartelization.

The matter is scheduled to come up for a

22

September/October 2012

hearing in mid September. Major companies on which a penalty was imposed include ACC, Ambuja Cements, UltraTech Cement and Jaiprakash Associates.

The firms involved were fined 50 percent of their average profit for fiscal years 2010 and 2011, the period for which they

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

were investigated. The CCI also imposed a token fine on the Cement Manufacturers’ Association (CMA).

ASSISTANCE SOUGHT UltraTech has suggested that the cement industry needs government help to weather a tougher domestic climate. According

“We look up to the government to support the cement industry and ensure growth through initiatives like reducing the tax burden and ensuring availability of linkage coal,” he said.

OPPORTUNITIES STILL ABOUND Ashish Guha, CEO and MD of HeidelbergCement believes there is still some wiggle room to hike prices even when taking into consideration the dynamics of expansion in the market. “There have been some deals in the market for a long time and none of these are coming from some stretched assets. None of them were particularly interesting. They had started up a few years back and then wanted to get out. So probably, we may see some more deals happening but it depends on the appetite of the people,” said Guha.

focus EXPANSION MAY SLOW India-based cement makers are likely to temper their expansion initiatives in the coming years, as weaker demand and regulatory hurdles hamper growth.

According to a working group’s report on cement industry, India would require 480 million tons of capacity by FY12. However, land acquisition, environment clearances, poor demand and, on top of it all, inadequate supply of raw materials like limestone, coal and fly ash may hamper expansion plans, say industry officials and market experts.

“Land acquisition is a big issue. No state government is providing land for setting up

units and getting clearances from different authorities do take longer periods. Greenfield expansion is tough,” says H.M. Bangur, chairman and managing director of northIndia-based Shree Cement.

CEMENT: MARKET AND COMPETITION

to Kumar Mangalam Birla, Chairman of UltraTech Cement, the outlook for the cement industry remains challenging with the slow pace of housing and infrastructure putting a brake on growth.

A majority of the cement makers are facing obstacles. “Opportunities of expansion through brown-fields have almost exhausted. Now, [the] only way to grow is green-field projects which is not easy. At a time when there is no demand, there is no point in adding capacities only to keep them under-utilized,” said Shaildendra Choksi, whole-time-director of JK Lakshmi Cement.

GROWING EXPORTS India Cements is looking to export its products to Sri Lanka and South Africa, as it seeks to diversify itself out of the saturated domestic market. However, the firm says the quantum of exports would be marginal and would not offset the Indian market slowdown.

The company is expected to start exports to one of these countries, likely Sri Lanka, within this fiscal year. The diversification is expected to take some time, as India Cements needs to address the higher cost of logistics and internal transport of consignments from the existing factories to the ports, and it has to meet the entry barriers in these countries, especially in the African countries.

NEW MARKETS JSW Cement is looking to expand its production capacity and enter new mar-

kets. R.C. Sodani, CEO and Director of JSW, reports it has set up a five-million ton modern cement plant at Nandyal at a cost of Rs 1,500 crore. The slag is being supplied by the company’s steel plant in Karnataka.

“Our cement unit is in production for the past six months and the market response has been very encouraging so far,” he said.

According to reports, the quality of slag is very high as the JSW steel plant in Karnataka uses modern technology. BMWeek CemWeek

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

BMWeek BMWeek

CemWeek CemWeek

23 Week CW Group CemWeek BMWeek September/October 2012 Coal CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

CW CW CW

cement volume and pricing

V

olume and pricing

ew capacity brought online will boost cement production in FY13. Lower capacity utilization and higher raw materials costs are expected to keep cement prices under pressure. Monsoonal rains brought an easing to cement prices in August. Even with sliding prices, cement makers are expected to keep their margins intact.

CAPACITY TO RISE Cement production in India will increase in FY13, as cement firms bring new capacity online. The total output is projected to rise to 349.6 million tons (mt) in the current financial year from 336.10 mt in the previous fiscal year.

“The projected demand and capacity to be created during 2012-13 are 265.4 mil-

lion tons and 349.6 million tons, respectively,” Minister of State for Commerce and Industry Jyotiraditya Scindia said.

The minister went on to confirm that there are no plans to introduce a cement regulatory authority on the line of other sectors to control unfair practice. “The complaints relating to market dominance, underutilization of capacity and artificial scarcity

as well as cartelization are best addressed through competition and entry of new players. The CCI looks into such complaints and takes appropriate action,” he added.

DOUBLE-DIGIT DEMAND Cement demand in India may grow ten percent this year, but ACC says lower capacity utilization and higher raw material costs will keep prices under pressure. “The demand for cement is expected to grow at ten percent over 2011. A lower utilization rate coupled with [an] increase in cost of raw materials and increasing logistics costs are likely to keep overall prices under pressure in all regions,” ACC said.

India saw a demand growth of around six percent in 2011 over 2010. For its part, ACC sales, however, grew by 11.5 percent during the year at 23.73 million tons.

However, poor demand led to the industry’s capacity utilization falling below 80 percent in 2011.

“Pressure on costs will continue to mount, mainly due to increases in the cost of domestic coal and owing to volatility in costs of imported coal,” ACC said. continued on page

24 September/October 2012

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

37

CEMENT: volume & pricing / people

P

eople

olcim’s Ramit Budhraja promoted from Chief Executive Officer of the South West Division of ACC to lead the Customer Excellence Initiative at the group level. The Andhra Pradesh Industrial Development Corporation (APIDC) appointed K. Rajendra Prasad as its Nominee Director on the Company’s Board while Antonio Carlos Custodio de Morais Varela resigns as a director of the Shree Digvijay Cement Company. iNTERNAL PROMOTION Holcim has promoted Ramit Budhraja from Chief Executive Officer of the South West Division of ACC to lead the Customer Excellence Initiative at the group level. Budhraja will remain at his current position until the appointment of a successor is completed.

Budhraja, 51, is a part of the sevenmember managing committee in ACC. Company CEO and Managing Director Kuldip Kaura is heading the committee.

Budhraja is also a member of the ACC board.

cement, despite there being a verdict from the Competition Commission of India (CCI) which established cartelization of cement.

The cement companies did not reduce prices despite the CCI order. This has to be followed immediately, besides initiating steps to form a cement regulatory authority,” Mr. K. Viswanathan, national vice-president, of BAI said.

The group wants to stage a rally to bring down the cost of cement and sand. “It is the end-users who are getting affected because of the hike. The state government must intervene to stop this. The CCI levied a fine of over RS 6,300 crore on 11 cement companies for cartelization, which indicates unfair practices are being carried on,” said BAI. BMWeek BMWeek BMWeek

focus SHAKE-UP

Meanwhile, Shree Digvijay Cement Company has disclosed that Antonio Carlos Custodio de Morais Varela, a director of the company, resigned from his directorship as of July 17.

According to one report, the cement maker also cut its outlook for the region as it reported second-quarter earnings, predicting a contraction for 2012 after previously anticipating a stable development.

As part of these changes, three managers will leave the executive committee and Urs Bleisch will be promoted to head Fontana’s “Holcim Leadership Journey”. Holcim will bundle several European divisions into one unit led

by Roland Koehler, who is now CEO of Holcim Group Support Ltd. Bernard Terver, who leads Holcim’s U.S. businesses, will join the executive committee. Executive Committee members Benoit-H. Koch, responsible for North America, the U.K., Norway and the Mediterranean, and Patrick Dolberg, responsible for Western and central Europe, will leave the company.

RALLYING AGAINST HIGHER PRICES The Builders Association of India (BAI) planned to protest actions against recent cement price hikes in the country. “There seemed to be no control over the prices of

“When the market goes so low you need to adapt your cost,” Fontana said. Holcim cut almost a third of employees in Spain in July, as it battles overcapacity in southern Europe, the report said.

Urs Boehlen, member of the executive committee and currently responsible for Eastern and Southeastern Europe, CIS, will step down and act as an adviser to Fontana until his retirement in 2013.

BOARD CHANGES Sagar Cements reported that the Andhra Pradesh Industrial Development Corporation (APIDC) has appointed K. Rajendra Prasad as its Nominee Director on the Company’s Board.

Swiss-based Holcim says it will implement changes to its management structure as part of its efforts to streamline its business and deal with flagging demand in Europe. Chief Executive Officer, Bernard Fontana, says Holcim will introduce a “leaner and more efficient” structure, including a new head of Europe.

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

25 Week CW Group CemWeek BMWeek September/October 2012 Coal CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

Cem Cem Cem

cement m&a and finance

m

&a and finance

5

1

rish-based CRH secures a 51 percent interest in Jaypee’s Gujarat plant. The second time is a charm as the government once again looks to sell off six defunct factories of the Cement Corporation of India. Quarterly profits trended higher for several major cement manufacturers.

CRH SECURES STAKE The Jaypee Group has sold 51 percent of its Gujarat-based plant to Ireland’s CRH for Rs 4,200 crore. According to media reports, the group is selling its majority stake in its Gujarat plant to retire debt. It has a total debt of about Rs 40,000 crore on its books. CRH may still be expecting double-digit price growth in the India cement market, which may explain its purchase.

potential joint ventures with local firms.

According to sources, Dewan is looking to sign export agreements with Indiabased companies and has already gotten the loans of Dewan Salman Fibre rescheduled based on those assurances.

In the interim, the group is restructuring its existing plants and expects to relaunch its products in the local market in the coming days.

IN THE RUNNING Citi Venture is reportedly in the mix for a stake in Shiram Group at a cost of Rs 400 crore. The report comes after another equity firm reportedly dropped out of the race. The US$9 billion Shriram Group initiated the process to sell its stake in Sree Jayajothi Cements in which it acquired a 70 percent stake earlier this year following a conversion of loans into equity.

According to the report, private equity biggies like Blackstone, Kohlberg Kravis Roberts & Company and Mount Kellet had shown initial interest, but CVCI appears to be the only investor in serious discussions.

TALKS UNDERWAY The Dewan Group is looking to boost its presence in India by entering into

26 September/October 2012

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

FOR SALE The government has revived a plan to sell factories of the Cement Corporation of India. The state-owned firm will now put up for sale six of its ten cement plants— one each in Madhya Pradesh, Karnataka, Haryana and Delhi, and two in Chhattisgarh. Collectively, the production capacity of the six cement plants is 2.65 million tons per year.

CEMENT: m&A and finance

FOCUS OVERSEAS BOND ISSUE Jaiprakash is looking to raise up to US$200 million by issuing convertible bonds overseas. It has received approval from India’s central bank to raise up to US$250 million via foreign currency convertible bonds. Barclays Bank and Standard Chartered Bank are the joint lead managers for the issue.

According to reports, the bonds will have a coupon of 5.75 percent, to be calculated on a semi-annual basis, with a maturity period of five years and one day. The firm plans to use the proceeds to repay a part of its outstanding overseas bonds worth US $523.6 million, which mature in September.

quarter that ended June 30, 2012 from Rs 10.61 billion in the previous year. Meanwhile, net sales of the company increased by 13.68 percent to Rs 12.01 billion for the quarter that ended June 30, 2012, as compared to Rs 10.56 billion in the same period last year.

The Board for Industrial and Financial Reconstruction (BIFR), which looks into sick public sector units, has reconstituted an asset sale committee to arrive at a valuation for the six plants, which have not been functional for close to a decade. Cement Corporation officials refused to talk about the valuation. An industry analyst estimated the six defunct plants could be worth over Rs 1,700 crore.

According to the Cement Corporation, the process of fixing the reserve price and

finding buyers will be done in about two months. Earlier in 2008, the government had asked for bids, but the quoted prices were too low, and none of the bids were accepted. This time around, bidding will be done electronically.

PROFIT REPORTS India Cement’s reported profits fell 39.16 percent in the first quarter to Rs 620.7 crore, even as sales and income rose. The company said its total income increased by 13.55 percent to Rs 12.05 billion for the

Madras Cement also reported its first quarter profits rose by more than a quarter on higher income. Net income rose 25.1 percent and net profit jumped to Rs 123.01 crore for the first quarter that ended June 30, 2012. Total income also grew by 29.5 percent to Rs 995.27 crore from Rs 764.18 crore in the same period of last year.

JK Cement indicated profits rose 38 percent in the current fiscal. Revenues grew by 21 percent YOY to Rs 736 crore, on the back of a 15 percent growth in dispatch volumes and a five percent increase in realization per ton. On a sequential basis, dispatch volumes were lower by 11 percent in comparison to March 2012 quarter. The company was able to achieve higher volumes due to a weak monsoon season that led to an increase in construction activity. BMWeek CemWeek CW Group Coal Week

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

BMWeek BMWeek

CemWeek CemWeek

CW Group CW Group

Coal Week Coal Week

27 Week CW Group CemWeek BMWeek September/October 2012 Coal CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

cement projects and expansions 5

p

1 rojects and expansions

ompetition not an issue for UltraTech as it plans to increase its capacity by 19 percent by the next fiscal year. HeidelbergCement also looks to expand its presence in India, and the Cochi port welcomes a few more cement manufacturers.

MASSIVE EXPANSION UltraTech says it wants to expand production further, even amid stiffer competition. It is planning a 19 percent increase in capacity by the next fiscal year, according to the company’s chairman. “I believe the short-term prospects for the industry appear bearish. Regardless, over the medium to long term, the sector offers good growth potential,” Kumar Mangalam Birla said. Capacity at UltraTech will be raised to 62 million tons by the next fiscal year that starts in April 2013 from 52 million tons.

million ton cement plant at Nawalgarh in Rajastan with an investment of Rs 2500 crore, a 3.5 million ton plant at Satna in Madhya Pradesh with Rs 2,200 crore investment, and a 4.25 million ton plant at Malkhed in Gulbarga district in Karnataka.

EXPANSION STRATEGY HeidelbergCement India also wants to expand and plans to invest Rs 1,600 crore

UltraTech Cement may invest as much as Rs 50,000 crore to finance the construction of a cement complex in Karur. The complex would include a massive 5.50 million tons per year integrated cement complex. Samruddhi Cement, now part of UltraTech Cement is planning a 5.50 million ton cement plant, a 4.5 million ton per annum clinker facility, a 3x25 MW captive power plant for the complex and a 15 MW waste heat recovery project in Karur in the Dindigul district.

In addition to its planned increase, UltraTech is currently building a 3.0

28 September/October 2012

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

on capacity expansion and raw material logistics infrastructure. According to its CEO and MD, Ashish Guha, the planned expansion is part of its overall strategy for the Indian market.

“We are about to increase our capacity from 3.07 million tons per annum to six mtpa with the commissioning of brownfield clinkerization and grinding units at

He also gave details on how much the expansion would cost. “The Damoh and Jhansi expansion project cost is around Rs 1,400 crore. We are also installing a 22-km long overland belt conveyor (OLBC), the longest such conveyor in India, at a cost of Rs 200 crore to reduce the cost of transportation of limestone from the quarries to the grinding units.”

NEW UNITS FOR BURNPUR & CEMENT CORP Burnpur Cement will build a new 800 ton per day plant in Patratu. The firm says it will invest Rs 200 crore for the plant.

The company has already entered into a deal with the government of Jharkhand for the project. The government of Jharkhand has allotted limestone mines at Benti Bagda near the Patratu Plant to the company, which has already started mining activities there. The first phase of construction on the new unit will be completed by the end of this financial year, and Burnpur hopes to begin production in April 2013.

The Cement Corporation of India is looking to build a cement grinding plant in Baikunthapur in the district of Cachar, Assam. The unit will have an installed capacity of 82,500 tons per annum. Investment cost is estimated at Rs 39.68 crore. The unit proposes to grind fly ash along with clinker to be transported from CCI’s Bokajan Cement unit in Assam for producing Portland Pozzolana cement.

Kerneos India plans to build a cement plant in Visakhapatnam and is now waiting for green clearance to proceed. The calcium aluminate plant will cost Rs 100

crore, according to Managing Director, Segi P. Idicula.

Land acquisition has been completed for the project. It will be set up in 20 acres bought from the AP Industrial Infrastructure Corporation (APIIC), with a capacity of 30,000 tons per annum. The company plans to eventually double that capacity.

Calcium aluminate cement produced at the Visakhapatnam unit is expected to help in the reduction of freight and production cost for clients in the eastern belt.

GRINDING UNIT FUNCTIONAL Reliance Cement started production at its new grinding unit in Maharastra. The company intends to buy clinker from other cement companies, blend it with fly ash produced by Reliance Power and sell it in the market under its own brand name.

Reliance plans to tap the Vidarbha market in Maharashtra.

JV CLOSE TO PRODUCTION A joint venture cement plant of Sagar Cements and Vicat Group of France will commence production in October. “The clinkerization is expected to be completed

by September end,’’ Srikanth Reddy, Exec-

utive Director, Sagar Cements said. Located in Chatrasal in Gulbarga district of Karnataka, the plant would be fully operational with cement production beginning in October.

CEMENT: projects and expansions

Damoh in Madhya Pradesh as also the grinding unit at Jhansi in Uttar Pradesh. In terms of markets, we have good presence in the growth markets of MP and UP and we intend to expand our presence in the profitable markets of Bihar, the National Capital Region and northern Uttar Pradesh,” said Guha.

The Rs 2,500-crore joint venture project is comprised of two phases. The first phase, which is almost ready now, had a Rs 1,650-crore investment with a cement production capacity of 2.5 million tons. The total capacity, including second phase, will be at 5.5 million tons by 2014.

CEMENT HUB India’s Cochi port is on its way to becoming a major cement hub, with firms lining up to build facilities. Three years ago, Ambuja Cements started operations there, and now three other major companies are following suit. According to a senior port official, UltraTech Cement will commence operations this December, while Zuari Cement acquired land and is expected to start operations in three years. Aside from these companies, Malabar Cements too has expressed interest in building a facility and is searching for three hectares of land to handle one million tons of cement a year. BMWeek CemWeek CW Group Coal Week BMWeek BMWeek

CemWeek CemWeek

CW Group CW Group

Coal Week Coal Week

focus ON BACK BURNER Shree Cement has now put its Karnataka plant on the back burner after it encountered land acquisition problems. The proposed plant was meant to have a capacity of six million tons. In its stead, the company now plans to expand at its existing facility in Rajasthan, making it the largest single location in the world at 19 million tons.

“We had a very good quarter. It is time to move ahead. We had plans for moving out of North India with our two plants – in Karnataka and Raipur (Chhattishgarh). But because of land issues in Karnataka and procedural delays in Raipur, we have rather decided to expand capacity in Rajasthan at

the existing unit over the next two to three years, where we have bought additional land,” Shree Cement managing director HM Bangur stated.

The company was not yet been able to put up its Karnataka unit, even though it has already acquired 90 percent of the required 400 acres. “There are some 20-30 acres of land in between, which we are not being able to get, stalling the project. With a land policy of no government intervention, I do not know when we will be able go ahead with that. But capacity expansion cannot wait. Our capacity utilization may come down for some time, but for long- term growth, production should go up,” he noted.

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

29 Week CW Group CemWeek BMWeek September/October 2012 Coal CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

REGIONAL NEWS akistani cement manufacturers ask the government to do more to open export markets.

Bishal Cement reaches full production in Nepal. The Sri-Lankan port of Hambantota is slated for a large-scale upgrade that includes the installation of new cement units, and Bhutan’s Dungsam project is delayed….again.

PAKISTAN Pakistan’s capacity utilization rates fell 68.29 percent in the first two months of this fiscal year 2012-13.

This was the lowest level seen in a decade as the demand for cement drastically decreased locally and for export purposes. The first month of the new fiscal year ended on a sour note for the cement sector with the industry posting a 1.64 percent decline in overall dispatches compared with dispatches in July of last year. The electricity crisis and rains badly affected the domestic market in Punjab and Khyber-Pakhtunkhwa.

Pakistan’s cement exports increased during the first month of the current financial year, rising 18.23 percent year-on-year. The industry exported roughly 545,125 metric tons of cement worth US$46.197 million during the month of July 2012. In comparison, the industry exported 740,592 metric

tons worth US$39.074 million in July 2011.

Cement makers are asking the government to look for other export markets for their goods; adding non-tariff barriers are curtailing exports to fast growing India. Manufacturers are also concerned that they may be losing ground when it comes to the growing Afghani market, as exports there have plummeted by ten percent annually owing to the availability of cheaper Iranian cement there. The industry asserts the energy crisis and constant hike in petroleum products have made its product uncompetitive.

NEPAL Bishal Cement began full-scale production in early August after three weeks of testing. The Rs 500 million factory

based in Manahiya VDC-4 of Rupandehi has introduced Bishal OPC and Bishal PPC brand cements to the market. The factory has a capacity of producing 300 tons of OPC and 400 tons of PPC brand cement daily.

“We are planning to utilize 70 percent and 30 percent of the total capacity to produce Pozzolanic Portland Cement (PPC) and Ordinary Portland Cement (OPC),” said Jayendra Chudal, executive director of the company.

The company spent 15 percent of its total investment on minimizing the pollution level in the factory during pre-production, production and post-production.

Bishal has been sourcing raw materials such as gypsum from India, Pakistan and Bhutan, but is using locally produced clinker.

In related news, cement producers in the country have lowered the price of cement

by Rs 25-30 per sack (50 kg) due to lower demand. Producers have reduced the price of cement as mid-July to mid-October is

30 September/October 2012

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

Regional Highlight:

considered off-season for construction in the country. Nepali cement is now available in the market in the range of Rs 711 to Rs 725 per sack.

There are currently 36 cement manufacturers in the country, and six of them produce clinker on their own. The annual demand for cement in Nepal is around three million tons, but local manufacturers meet only 25 percent of the demand, and the rest is imported from India.

SRI LANKA The port of Hambantota is slated for a large-scale upgrade that involves the installation of additional facilities, including cement units. Under the Hambantota port project, investment and business ventures are available for a cement grinding plant, a cement storage and bagging plant, a fertilizer storage processing bagging plant and LP gas distribution.

The facility is the nearest point to the main shipping route that connects the East and West. The region is also considered a better geographical location with fair weather conditions and is closer to deep contours for such construction.

BHUTAN Bhutan rescheduled the opening of its biggest cement plant for the third time this year. The Dungsam project in Nganglam, Pemagatshel, was to start clinker production in July, and cement production in October. However, according to reports, the project is facing a major challenge with regard to earthwork.

Qatar Cement Prices Cement prices were on the rise in many GCC countries as witnessed in Saudi Arabia. Yet, despite an ongoing vigorous run on construction activity surrounding preparation for the 2022 FIFA World Cup Games, cement prices remained stable.

Ever-increasing construction activity and a cement shortage in Qatar spurred a significant increase in cement prices up until mid2008 when the government was forced to intervene. At that time, the government froze the price of cement for a period of three years.

The government also reassured construction contractors that it would absorb any project surcharges related to the price increase of basic materials. The government had hope such a move would allow contractors to move forward with planned projects without fear of significant cost over-runs.

The government’s actions did much to calm the market and stabilize cement prices. By the first half of 2010, cement prices had fallen 6.6 percent year-on-year to US$68 per ton against the average US$72.8 seen in the first half of 2009. Today, prices continue to trend in this US$68 per ton range.

OUTLOOK Regionally, cement prices in the Gulf Cooperation Council (GCC) were up slightly on the back of rising demand, averaging US$66.7 per ton in the first quarter of 2012, as compared to US$66 in the first quarter of 2011. Saudi Arabia, the largest cement producer in the GCC, witnessed an increase in cement prices by 11.3 percent in the first quarter of 2012 to reach US$69.5 per ton, the highest average realization price since 2003.

In contrast, Kuwait saw the largest decline, with cement prices averaging US$75.8 per ton in the first quarter of 2012, compared to US$79.4 during the same period a year ago.

Cement prices were expected to remain firm

The original estimate, based on civil foundation drawing, was 119,650 cubic metres (m3), but actual excavation has turned out to be 661,100 m3, as of July $90 31. Aside from the delays, the cost of building Dungsam had also gone up $50 by around Nu 2 billion, making it a Nu 9B project. It has borrowed Rs 2 billion from Indian banks at 13.5 percent inter$0 est, and Nu 2 billion from a consortium of local financial institutions. BMWeek CemWeek BMWeek BMWeek

CemWeek CemWeek

1H08

CW Group CW Group CW Group

2H08 ‘08 Coal Week Coal Week Coal Week

1H09

2H09 ‘09

in Qatar thanks in part to an increase in construction activities. Winning the bid to host the 2022 FIFA World Cup has generated a construction boom, particularly in the area of public infrastructure spending, in Qatar that is attracting interest from around the world. The event might yet be a decade away, but Qatar has already announced it expects to complete its first stadium by 2015.

Roughly US$4 billion has been set aside for the country’s stadium building program which calls for the construction of nine new eco-friendly stadiums, and the expansion of three existing facilities. Another US$3 billion is allocated for the construction of the Doha Metro, which will provide event attendees with easy transportation to the various stadium locations.

Qatar National Cement Company (QNCC) has reigned supreme as the principal cement producer in Qatar for the last four decades.

The company has been taking aggressive steps to increase production capacity to meeting growing domestic demand. It has upgraded existing facilities and built new ones such as Cement Plant 4, completed in 2010, which has a capacity of 5,000 tons of clinker and around 5,500 tons of cement per day.

Total production for QNCC stands at around 12,000 tons of clinker per day and around 15,500 tons of cement per day. The company may yet further expand its cement production capacity, having declared its intention to focus all its efforts on enabling Qatar to become completely self-sufficient in cement production. BMWeek CemWeek BMWeek BMWeek

1H10

2H10 ‘10

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

1H11

2H11 ‘11

CemWeek CemWeek

1H12 ‘12

31 Week CW Group CemWeek BMWeek September/October 2012 Coal CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

C C C

CONSTRUCTION materials

I

nfrastructure & projects

LF will build India’s largest mall at four million square feet. The government announces plans to award 4,000 km of road projects. Hinduja Group plans its foray into the real estate sector, and L&T Construction bags orders worth Rs 2,008 crore.

VGN LAUNCHES “STAFFORD” PROJECT VGN developers recently launched a contemporarily designed residential complex spread across 20 acres at Thirumullaivoyal.

The estimated cost of the project is around Rs 650 crores. The superior project is comprised of 1,176 units constructed in 24 blocks and will feature a 42,000 sq. ft. clubhouse and a retail block. The project has elevated the standards of living by featur-

ing some state-of-the-art living facilities.

The GN Stafford will be ready for occupancy by mid-2015.

DLF TO BUILD LARGEST MALL DLF is planning to build a four- millionsquare-foot mall in Gurgaon. The mall will be bigger than the 1.5 million square feet Great India Place mall in Noida – the current largest mall in India. DLF is planning to invest roughly Rs 2000 crore in the construction of the mall. The mall is expected to have a combination of

32 September/October 2012

enclosed and outdoor spaces and to be completed by 2016.

GOVERNMENT TO AWARD 4,000 KM ROAD PROJECTS In an effort to enhance India’s infra paced growth advancement, the government plans to award road projects of a total length of 4,000 km under the construction, engineering and procurement models.

The projects are going to be implemented under the Ministry of Road Transport and Highways as a part of the 12th Five Year Plan. The initiative is likely to minimize the issues of time and cost over-runs of the extant item rate contracts and will have faster roll-out time with lesser costs and greater efficiency and flexibility so that more contractors participate in the project.

KARNATAKA FURTHERS EXPANSION The Karnataka government has decided to implement various projects under the second phase of the Chief Minister’s Small and Medium Town Development Programme. The cost of this project is estimated to be around Rs 1,738 crore, which will be invested in various cities and towns across the state. About 80 percent of the funds are going to be spent on road works, and the remaining will be spent on drain-

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

age works. Tenders would be floated for works costing Rs 1,390 crore immediately, whereas the remaining would be released in phases.

NEW INTERNATIONAL RESIDENTIAL PROPERTY Tata Realty and Infrastructure Limited (TRIL), a 100 percent subsidiary of Tata Sons, launched its long-awaited international residence Tritvam in Kochi, Kerala.

The internationally styled residential property envisions 468 lavish three and four BHK and duplex apartments. With a total development area of 1.18 million sq. ft., it represents an investment of more than Rs 550 crore. Trivtam will have several excellent amenities such as a fitness center, clubhouse, yoga court, swimming pools, cafes, tennis court and jogging track. The project is considered TRIL’s entry into the emerging real estate market and is expected to be completed by December 2014.

TATA HOUSING TAKES UP COLOMBO PROJECT Tata Housing has teamed up with the Urban Development Authority (UDA) of the Sri Lankan government to invest in a 6.7 million sq. ft. project in Colombo. The cost of the project is expected to be around

HBC RESIDENTIAL PROJECT The Home Buyers Combine (HBC), a group buying company, has launched a housing project with Raj Heramb Properties near Hinjewadi in Pune. The residential project comprises a total of 250 apartments of two and three BHK. The completion of the project is scheduled for December 2014.

HINDUJA GROUP TO ENTER INTO REALTY SECTOR The Hinduja Group has announced its foray into the real estate sector in India involving an investment of up to 1,500 crore. The Group has already acquired a land bank of 3,500 acres in major cities such as Mumbai, Chennai, Bangalore and Hyderabad for development of residential and commercial townships, SEZs with healthcare, hospitality and other facilities. The projects will involve a total investment of around 1,000 to 1,500 crore in the next five years.

ROAD SEGMENTS IN THE WORKS Reliance Infrastructure is planning to build 11 road segments with a total length of 968 km across different states. Work has

already begun on two projects, namely the Namakkal-Karur, 43 km and DindugulSalem, 53 km in Tamil Nadu and SalemUlundurpet, 136 km, Tamil Nadu and Gurgao-Faridabad, 66 km. The total cost of building the 11 road segments is expected to be around Rs 11,700 crore. The company is targeting to yield around Rs 20,000 crore from the project.

RING ROAD PROJECT The Union Government sanctioned the inclusion of a ring-road/bypass in Jodhpur under phase – VII National Highways Development Project (NHDP). The government has included the proposal for construction of the bypass around Jodhpur connecting Nagour side of NH-65 with NH-112 and NH-115 on BOT (toll) basis.

The construction of the bypass would be executed in subsequent stages.

L&T CONSTRUCTION SECURES CONTRACTS L&T Construction bagged orders worth Rs 2,008 crore across various business segments. The firm’s infrastructure arm has won an order worth Rs 275 crore from Kolkata Metropolitan Development Authority. Its power, transmission and distribution segment secured new orders worth Rs 607 crore in domestic and international markets. The firm’s buildings and

factories segment obtained orders worth Rs 674 crore, which includes an order from the Airports Authority of India for the construction of a new integrated terminal building and allied works at Chandigarh airport.

INTEGRATED INDUSTRIAL TOWNSHIP The Uttar Pradesh State Industrial Development Corporation has been identified as the nodal agency to develop an integrated industrial township at Chola in Dadri-Noida-Ghaziabad area. The project will be developed in coordination with Delhi Mumbai Industrial Corridor Development Corporation Limited (DMICDCL). The project includes a proposed extension of a 9.41 km Metro rail line to the new bus station and from Ghaziabad to Dilshad Garden. The board of UPSIDC also approved to make freehold of all the housing land of UPSIDC. The project has an enormous scope of industrial development in Uttar Pradesh.

Construction materials: infrastructure & projects

Rs 1,000 crore. The company will get 5.5 million sq. ft. of both residential and commercial area. The project is expected to be completed in the next seven years.

GUJARAT REALTY PROJECT TO GET PE FUNDING The construction of a residential township in Gujarat is expected to get foreign private equity investments. At least US$100 million or approximately Rs 550 crore of overseas investment is likely to be made in different infrastructure and residential projects in Gujarat. The project developed by an Ahmedabad-based real estate firm will get an investment of around Rs 200 crore through offshore funds. The project will see an investment of Rs 25 crore in the next one month.

KARAIKAL PORT PROJECT Karaikal minor port project Phase 2A-extension is expected to cost Rs 600 crore. The project is already in the advanced stage of implementation and involves increasing the capacity from 21 MMTPA to 28 MMTPA and making it capable to handle cargo other than coal in the existing berths. One thing to note is that Phase 2A of the Karaikal minor port is not yet operational despite the company spending Rs 1469 crore alone in Phase 2A. BMWeek CemWeek BMWeek BMWeek

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

CemWeek CemWeek

33 Week CW Group CemWeek BMWeek September/October 2012 Coal CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

CW CW CW

construction materials

E

quipment updates

erex unveils the much-awaited successor to its reputable CC2800-1 crawler crane. XCMG launches XGH100, the first special dynamic compactor for soft foundation use. US-based Elliott Equipment showcases its new 36127R boom truck.

FIRST OFF-HIGHWAY DUMP TRUCK China’s Sinomach successfully launched its first off-highway dump truck – the GZL50. The launch marked an important step for the company in expanding its mining equipment. The new truck targets improved safety, ease of use and low operation costs. The GZL50 contains a 420 hp engine, Allison’s latest electric automatic transmission and large ratio axles for mining vehicles. It also features comfortable gear shifting and easy operation.

XCMG’s NEW LOADER XCMG has added a new loader to its largetonnage loader range. The new loader LW1000K is the company’s latest model.

With the rated load capacity of 10 tons, the LW1000K wheel loader also provides improved safety and high-energy efficiency, in addition to being highly reliable.

The high-quality performance of the new loader provides a reliable machine for construction in ports, mines, etc.

NEW CRAWLER CRANE UNVEILED Terex is all set to unveil the much-awaited successor to its popular 600-ton CC2800-1 crawler crane in October 2012. The new model is expected to have a 600-ton base and is likely to have better capacities, more flexibility in terms of booms, be easier to move and erect

34 September/October 2012

jibs and counterweight configurations, with improved cab, a track-drive system and other enhancements.

NEW 8x4 CONCRETE MIXER TRUCK XCMG Nanjing Xugong Automobile Company launched the T-series of 8x4 National IV concrete mixer truck. The new truck adopts the independently developed cab.

Its allowable total weight is 45 tons and it can easily adapt to various climate and work conditions. The electric system of the truck uses the latest technologies like CAN bus technology and self-diagnosis systems. These features greatly improve the intelligence of the whole vehicle.

MULTIFUNCTIONAL PILLING MACHINERY Anhui Lida Industry launched several multifunctional pilling machines. The new machinery is developed based on a hydrostatic pile driver integrating the performance of a long screw pile driver, rotary drilling rig and independent concrete placing boom. The machinery has gained four utility patents and two invention patents.

FIRST DYNAMIC COMPACTOR Leading Chinese construction machinery development company XCMG recently launched the first special dynamic compactor – XGH100 for soft foundation use

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

in the industry. The XGH100 is developed mostly for soft foundation operations like mud flat, land reclamation, sludge, swamp, etc. The new compactor is lightweight with a widened track and has good adaptability to various ground conditions. The compactor is convenient to transport and the user only needs to dismantle the top section and the 3m boom.

NEW CRAWLER EXTRACTOR Doosan Infracore Construction Equipment (DICE) has introduced the new Stage IIIB compliant DX380LC-3 large crawler excavator. The new DX380LC-3 contains several features which rank among the best

in the market. These include improved visibility, controllability, comfort and ease of operation. It also features a new joggle/ shuttle control and is designed to exceed customer requirements for quality, productivity, comfort, reliability and durability at highly reduced costs. The excavator is designed to handle a broad range of applications such as road building, heavy earthmoving, demolition, civil engineering, quarrying and other large-scale material handling.

EXTENDABLE ARM OPTION FOR M-SERIES EXCAVATORS Bobcat has launched an extendable arm option for the M-Series E42, E45 and E55 compact excavators. The E42 and E45 excavators feature a 24-inch range of motion with maximum digging depths of 12 feet six inches and 12 feet ten inches, respectively. The E55 excavator with extendablearm option has a 30-inch range of motion and a maximum digging depth of 14 feet seven inches; 22 inches more dig depth than the E55 excavator with standard arm configuration.

Company recently unveiled a new boom truck – the 36127R. The new boom truck is a rear-mounted variation of its popular 36127F 36-ton boom truck model. The new boom truck features aluminum tread plate bed wings, full-length subframe, internal anti-two block and Elliott’s Dynasmooth controls, all of which make it a leader in performance and value in its class. The new 36127R also includes 12,800-pound baredrum pull two-speed planetary winch with a 9,060-pound single line pull and 425 feet of rotation-resistant wire rope.

CEMENT: construction materials

LARGEST- DIAMETER TUNNEL BORING MACHINE The Washington State Department of Transportation has released photos of the world’s largest-diameter tunnel boring machine. The machine – five stories tall -- is being built in Japan by Hitachi Zosen, a company known for manufacturing massive tunneling equipment and will be used to dig the new State Route 99 Tunnel that will replace the Alaskan Way Viaduct. The machine will be launched in 2013.

NEW CA ROLLERS Dynapac launched its new roller models as it tries to introduce new models in its CA brand of single drum vibratory rollers. The company has already launched fifth-generation large rollers and has now moved on to the midsize range. The mid-sized CA rollers feature several improvements rolled in the bigger machines including Active Bouncing Control. The Active Bouncing Control prevents damage to the machine and over-compaction and provides optimized amplitude of 1.82mm, allowing rockfill to be compacted in 1.25 – 1.5-metre layers. The rollers also have static linear loads ranging from 25-45 kg/cm. BMWeek CemWeek CW Group Coal Week BMWeek BMWeek

CemWeek CemWeek

CW Group CW Group

Coal Week Coal Week

ELLIOTT’S NEW BOOM TRUCK Leading US manufacturer of customized truck-mounted aerial work platforms and boom truck cranes, Elliott Equipment

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

35 Week CW Group CemWeek BMWeek September/October 2012 Coal CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

analyst recommendations SHREE CEMENT (SRCM) The latest financial report for SRCM reflects much positive growth. In the first quarter of FY13, revenue and EBITDA skyrocketed 43 percent and 86 percent respectively on the basis of year-on-year comparison. The company’s stock experienced a 52-week period high, reaching Rs 3,575 on the 28 of August. Karvy Stock Broking gave a “BUY” recommendation, and a target price of Rs 3,940, upgrading it from the current market price (CMP) of RS 3,509. A stable cement price mix, growing demand in the northern regions, and a price reduction in pet coke were cited as reasons for the recommendation. In contrast, Kotak Securities, on the basis of operational concerns, called for a “REDUCE” on SRCM with a price target of Rs 3,102 against a CMP of Rs 3,372.

INDIA CEMENT LIMITED (ICL) Motilal Oswal Securities has recommended a “BUY” rating on ICL’s stock, with a target price of Rs 143. Nirmal Bang Securities also confirmed a “BUY” rating for ICL stock, with a target price of Rs 101.

Motilal pointed to the company’s operating performance and EBITDA of Rs 2.8 billion as better than estimated, driven by improved realizations and higher profits through its Indian Premiere League (IPL) franchise Chennai Super Kings. Forex loss and higher taxes were identified as the shortcomings for this period.

ICL, as the largest producer of cement in South India, reported a decline of 39 percent in its net profit, Rs 400 million below the profit earned in the same period last year. However, the company’s top-line revenue growth to Rs 12.1 billion at a YOY growth rate of 13 percent was still slightly better than many people expected.

ULTRATECH CEMENT Motilal Oswal Securities has maintained a “BUY” recommendation on UltraTech with a price target of Rs 1,900, against a CMP of Rs 1,567. UltraTech pulled out a 14 percent standalone net profit on a YOY basis amounting to Rs 7.78 billion. The company’s performance has been better than estimated in 1QFY13, as it achieved

ratings changes DATE

BROKER

COMPANY

RATING

TARGET PRICE

CURRENT MARKET PRICE

28-Aug-12

Karvy Stock Broker

Shree Cement

Buy

3940

3509

25-Aug-12

Networth Capital

Shree Cement

Buy

3759

3400 3372

24-Aug-12

Kotak Securities

Shree Cement

Reduce

3102

14-Aug-12

Nirmal Bang Securities

India Cement Ltd

Buy

101

85

14-Aug-12

Motilal Oswal Securities

India Cement Ltd

Buy

143

85

2-Aug-12

Angel Broking

Ambuja Cement

Neutral

?

184

27-Jul-12

Motilal Oswal Securities

ACC Limited

Neutral

1447

1291

23-Jul-12

Motilal Oswal Securities

UltraTech Cement

Buy

1900

1567

36 September/October 2012

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

an EBITDA per ton of Rs 1,235 versus the forecasted Rs 1,098. The better results are largely attributed to higher realization and favorable cost that has been in line with expectations.

Ambuja Cement (ACEM) Ambuja Cement in 2QFY2012 posted a strong 34.9 percent YOY growth in its bottom-line and 17.9 percent in the standalone top-line, with a ten percent improvement in realization. Sales volume ascended 7.4 percent. Angel Broking recommended a “NEUTRAL” rating on ACEM in its August report, believing the stock is already traded at a rich valuation. However, the prospects for both the bottom-and top-line compound annual growth rates (CAGRs) to move upwards are high.

Healthy demand in the key market segments in the northern region, and the ability of the company to increase production capacity when it matters most, are seen as the major drivers. An increase in operating cost per ton (OPEX) by eight percent, raw material cost by 20 percent and logistics and freight forwarding cost by ten percent were some of the concerns ACEM will need to address to move forward effectively.

continued from page

ACC LIMITED

24

ACC reported a consolidated net profit of Rs 4.15 billion, with 26 percent YOY growth. Motilal Oswal Securities called the standalone performance of the company in 2QFY12, “a lot better than expected.” The EBITDA of Rs 6.6 billion outperformed previous forecasts. However, Motilal maintained a “NEUTRAL” rating on the company’s stock with a target price of Rs 1,447. The company’s share hit the highest mark in February this year at Rs 1,422, but is currently trading at Rs 1,291, nine percent lower than the highest price recorded so far this year.

PRICES EASE India cement prices started to ease in the first part of August, as demand slackened upon the arrival of rains. This is a reversal from recent trends, where prices have been firming up despite the Competition Commission of India’s (CCI) hefty penalty and the onset of monsoon season.

OCL India

The northern markets also saw a fall of Rs ten to 15 for a bag. In mid-July, prices surged to as high as Rs 315. However, western and southern markets continue to see prices higher than Rs 300.

In the two weeks prior, all India average cement prices declined by two percent from Rs 310 to Rs 304 for a 50 kg bag. In Bihar, prices dipped from Rs 350 to Rs 310, while in Uttar Pradesh the prevailing prices stood at Rs 280 against Rs 320 in July.

Another major cement company, OCL, reported a 22 percent YOY decline and a 21 percent Q-O-Q decline in Q4FY12 revenue, earning net revenue of Rs 3.41 billion and suffering a 39 percent fall in cement volume. In spite of these events, SUSTAINABLE MARGINS Care Equity research has maintained a India cement makers are likely to keep fundamental grade of four out of five on their margins intact even as prices start OCL. The rating is to be a solid rating for sliding down. Cement prices have a company that has suffered losses in sev- begun receding, but the drop in priceral key indicators. BMWeek CemWeek CW Group Coal Week BMWeek BMWeek

CemWeek CemWeek

CW Group CW Group

es had been delayed likely because of a weaker start to the monsoon season in June, which allowed construction activities to continue.

One recent dealer report suggested a recent six to eight percent drop throughout most of the country, with the exception of the southern region. Together with price, demand has also slackened. The eastern region seems the worst hit, registering a ten percent drop in price, with Delhi and other northern areas seeing a similar pullback.

According to the report, analysts say realization is likely to be stable. In the June quarter, this was offset to some extent by high costs arising out of the full effect of higher freight rates and power tariffs coming into play. Cost-push pressures, therefore, seem fully absorbed.

A ten-percent drop in imported coal prices since April 2012, with a stable currency, would bring some relief in the coming quarters. BMWeek CemWeek CW Group BMWeek BMWeek

Coal Week Coal Week

CemWeek CemWeek

CW Group CW Group

focus HEATED WORDS

A session looking in India’s Himachal turned heated as the political parties locked horns over rising cement prices in the region.

According to one news report, industries minister Kishan Kapoor and Congress MLA G S Bali lost their patience and exchanged sharp words, which were later expunged by the speaker on the request of chief minister, Prem Kumar Dhumal.

Congress MLA Rajesh Dharmani accused the minister of being more concerned about the welfare of the cement companies than of people. “For projects, the cement rate is Rs 170 per bag, but for common people, this is Rs 330. In Punjab, it is available at much cheaper rates,” Dharmani said.

In response, Kapoor stated the issue of cartelization came under the Cement Corporation of India and action is being taken against companies based on complaints received from public. Kapoor, blaming the Union government, went on to assert that politics had been in play over cement issues for the last five years.

“The BJP government in the state was the only one in the history of country which has reduced the cement price by Rs 25 per bag after holding three meetings with the companies. But later, the increase in central excise duty and diesel by Union government led to [a] rise in prices again,” he said.

INDIA CEMENT & CONSTRUCTION MATERIALS MAGAZINE

37 Week CW Group CemWeek BMWeek September/October 2012 Coal CemWeek CW Group Coal Week BMWeek CemWeek BMWeek CW Group Coal Week

Coal We Coal We Coal We

SILO CLEANING Safer, faster and more efficient than other traditional silo cleaning methods Highly qualified crews, using our unique, non-human entry silo-clean system Fully certified rope access teams equipped to work at height Iso 9001, 14001 and atex certified silo cleaning operations

 (+34) 917.231.502  (+34) 917.952.529

worldwide service cwgrp.com

Calle La Resina 37 Nave 11 28021 Madrid, Spain

| CemWeek 2010 Middle East & Africa Cement Sector Survey

1 www.blancon.net

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

India shutters four cement units on environmental violations

1

Switzerland’s Jura Cement to install WHR system

2

Two India cement makers make board changes

2

Azerbaijan to step up monitoring of rail shipments

3

India gov’t to sell six cement plants

3

Lafarge Canada outlines expansion plans

4

Zuari Cement recognized as Indian “Power Brand”

4

Egypt releases predictive cement prices for August

5

HeidelbergCement set for further expansion in India

5

Votorantim Cimentos eyeing fresh acquisitions

6

Report: India cement price cut looms

6

Report: CRH set to acquire Jaypee cement plants

7

Reliance starts production at new grinding unit

7

Italcementi denies being in talks with Jaiprakash

8

Three India cement makers pledge to low carbon initiative

8

Poland’s ECO installs new cogeneration system

9

India cement makers halt sales disclosures to CMA

9

Gresik looking to acquire two firms later this year

10

Report: India cement expansion may slow down

10

New cement plant lined up for Brazil’s Goias state

11

India to show leniency to cartel whistleblowers

11

Qatar National Cement to issue tender for new capacity

12

India’s Malabar Cement seeks big coal trade

12

Cement plant to rise in Turkey’s Adana

13

Lower coal prices to improve cement margins in India

13

Sonmez Cement to install new cement unit in Turkey

14

Cement prices down in India’s Assam

14

Holcim may face hefty fine in Brazil for alleged price fixing

15

Kerneos India to build plant in Visakhapatnam

15

Cementir turns a profit in H1

16

Ultratech plans mammoth cement complex in Karur

16

New cement plant in Russia’s Ryazan region

17

India Cements looking to expand export base

17

Holcim announces management shakeup

18

JP Morgan downgrades India’s Ultratech

18

Cemex secures debt swap agreement with creditors

19

UltraTech acquires Rajahstan based lime company

19

Armed group takes control of cement plant in Yemen

20

India’s JSW to venture into new markets, expand ops

20

Indonesia: Major cement merger in the works

RESEARCH

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

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

Global Cement market Data ServiCe

Global Cement retail PriCe rePort

Global Cement traDe PriCe rePort

Global Cement volume ForeCaSt rePort

Statistical update on key cement markets worldwide

Comprehensive report on local retail cement prices worldwide

Detailed data and chart report on cement prices

Current and outlook for cement volumes

$495 per user / year

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

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

$1,750 + S&H per user / year

Rolling monthly updates (Monthly updates)

Quarterly updates (4 updates per year)

Quarterly updates (4 updates included)

Semi-annual updates (2 updates included)

48 countries covered*

25 key markets

70+countries covered*†

Individual countries & global

■ ■ ■ ■

Cement consumption Cement production Cement trade and/or Select cement prices Online (CemWeek.com)

■ ■ ■ ■

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

■ ■ ■ ■ ■

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

■ ■ ■ ■

3-year volume outlook Historical volumes Capacity utilization Annual volumes

Hardcopy

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

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

E Bl 2.

A l 1 r i vA 1, 20m.comtaom A u 3 or La E At BERac@gmI Bif razil & R B o iRd ctoon formmt.com C B o ati ru RlY Ughr registrw.gmifo A w u E Rosendnyloine at w h e t leas ter o

Week

P

ADVERTISING

cbi

is

reg

conFerence:

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

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

The program will take a dual-track business and technical approach to issues around:

■ Brazil and Latin American cement – an unstoppable force?

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

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

GMI

GLOBAL

For attendance, speaking opportunities or general questions about the conference please contact Andre Cholewinski, Director of Business and Client Services at ac@gmiforum.com or via phone at +1-203-516-7424.

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

CemWeek

CW Group

Coal Week

Organized by gMi gloBAl llc and supported by cEMWEEk www.gmiforum.com

cbi

CBI India 2012 Conference Delegate Pack

Conference Delegate Pack

cement business & 2012 industry The cement industry in India is undergoing a period of exuberance on account of overall growth of the Indian economy. Driven by the increase of activities in construction and national infrastructure investment, the industry is moving ahead in spite of the worldwide economic recession.

As communities and individuals assess the opportunities available in today’s market, CBI INDIA 2012 will facilitate the information exchange and network building that will be necessary for wise decision-making.

october10-11, 2012 mumbai, india

The Leela Hotel Mumbai

GMI

GLOBAL

CBI INDIA 2012 is an annual event dedicated to senior level executives and decisionmakers in the Indian cement industry. Around 250 stakeholders are assembling in Mumbai, India on October 10-11 to attend CBI, which stands for Cement Business & Industry India.

The event welcomes international, regional and local cement producers and suppliers, attracting government officials and construction companies from India and neighboring countries.

CBI India 2012 www.gmiforum.com | US Tel +1-203-516-7424 | India + 91 124 4636710 | sales@gmiforum.com

43

cement business & industry india 2012

cbi

Welcome to cement business & industry india 2012 he conference, held at the Leela Hotel in Mumbai on October 10 - 11, 2012, features a rarely seen roster of international and domestic thought-leaders as speakers.

Cement Business & Industry (CBI) India 2012 brings together three exciting trademark components, starting with the market and business insight-oriented CW Group workshop on October 9, 2012. The workshop, hosted by CW Group consultants, explores a range of topical cement industry issues in a dynamic and interactive workshop format.

For the main event, we welcome you to join in and share in the latest thinking and research presented by a hand-picked roster of speakers that hail from India, United States, the United Kingdom, Turkey, Egypt, Oman, France, Singapore, and many other locations.

Besides the high-impact general sessions, CBI India 2012 covers topics in a dual-track format, allowing the CBI India 2012 attendees to choose between technical and business sessions that are running concurrently. Session topics are detailed in the CBI India 2012 program included in this packet, but include innovation, regional and Indian competition, operational efficiency, the cement plant of tomorrow, traditional and alternative fuels, and finance and strategy, just to name a few. On the technical side, the sessions will showcase industry-leading speakers such as Mike Sumner of WR Grace, Daniel Strohmeyer of Loesche, Adolf Fick of Magnesita, Ashish Bhaiya of Evonik Fibers, Mark Bryant of Browz, Ryk Jensen of SWR Engineering, Keith Meyers of SKF and additional speakers from FLSmidth, Cachapuz, Somi Conveyor Beltings and AMCL Machinery, On October 11, CBI India 2012 brings together the Indian cement industry leadership in a special CEO and Executive Forum. We are pleased to welcome (in alphabetical order) Mr. Sumit Banerjee (Vice Chairman, Reliance Cement), Maurizio Caneppele (Managing Director, Zuari Cement), Mr. Shailendra Chouksey (Wholetime Director, JK Lakshmi), Mr. Puneet Dalmia (Managing Director, Dalmia Cement), Mr. Manoj Gaur (CEO, Jaypee), Mr. Martin Kriegner (CEO, Lafarge India), Mr. Alok Sanghi (Director, Sanghi Cement), among many other captains of the India cement industry to this CW Group industry review and general session panel discussion. Mr. Robert Madeira, CW Group Managing Director and Head of Research and Mr. Jean-Michel Allard, retired deputy CEO and board member at France-based Vicat Group, in which Sagar and Bharathi Cement form an integral part, will host the unique CEO Executive Forum.

Andre M. Cholewinski Director of Business & Client Services GMI Global LLC +1-203-516-7424 ac@gmiforum.com Washington, D.C., USA 44

CBI India 2012 www.gmiforum.com | US Tel +1-203-516-7424 | India + 91 124 4636710 | sales@gmiforum.com

cbi

cement business &

industry india 2012 CW Group CemWeek CemWeek CW Group CemWeek CW Group

BMWeek BMWeek CEMENT BUSINESS WORKSHOP BMWeek CW GROUP ANALYTICS:

C C C

Tuesday, October 9, 2012

1/2-day workshop

Registration to attend the pre-conference workshop is separate and additional fee applies

New swaths of cement companies, traders and shippers in Asia are increasingly developing a dual focus of “home and abroad.” New and growing cement markets around the Indian Ocean present compelling opportunities, but companies face challenges in making commercial inroads as many are eyeing the same opportunities. Trade, pricing and macro and micro forces are realigning and putting new focus on more than ever digging deep to understand the local, regional and global trends and shifts.

Join the leading CW Group industry experts at the CW Group Analytics: Cement Workshop, where we will discuss the major issues facing the cement sector as it looks at the rim of the Indian Ocean and beyond.

11:00 13:00

Registration Desk Open – Leela Ballroom Foyer Chairman’s Welcome ♦♦ Welcome Remarks - Andre Cholewinski (GMI Global) ♦♦ Introduction – Robert Madeira (CW Group)

Session 1: Planning and strategy based on analytics and research ♦♦ A review of the changes in global cement – pre and post crisis view ♦♦ The definition of an attractive cement market – group work (interactive session) compared to CW Advisors' global research findings

14:10 – 15:00

Session 2: Reinventing the franchise & uncovering hidden profits ♦♦ Introduction: what does “practical innovation” really mean? ♦♦ Interactive session: what sort of innovator is your organization? ♦♦ Leaving the fluff-factor behind – bottom-up innovation as a business transformation tool ♦♦ Discussion of responses from innovation form questionnaires

15:00 – 15:30

NETWORKING BREAK

15:30 – 16:30

Session 3: Planning and strategy based on facts ♦♦ Update on global and regional production and demand growth outlook from the latest CW Group “Global Cement Volume Forecast Report” ♦♦ Cost-based analysis of competitive advantages: which countries can compete cost-effectively within the region for exports?

16:30 – 17:30

Session 4: Navigating international opportunity – assessment based on solid data ♦♦ Cement trade outlook and examination of major global cement trade flows; watching Africa: an eroding export opportunity, but what else? ♦♦ Developing international benchmarks for cement trade – cement import and export prices, evolution and drivers

Subject to change

The workshop will be conducted by these members of the CW Group team: Mr. Robert Madeira, Managing Director & Head of Research, CW Group Mr. Juergen Steaudtner, Innovation Partner, CW Group Mrs. Diana Heeb Bivona, Senior Analyst, CW Advisors Mrs. Claudia Stefanoiou, Senior Analyst, CW Group 19:00

Small group dinners (optional and not covered by the workshop)

ABOUT THE CW GROUP The CW Group is a leading global provider of advice, business intelligence and decision support for the global cement, coal and adjacent sectors. The Group is coordinated out of New York with associates worldwide divided into three areas: Advisory (management consulting services and M&A advisory) Analytics (business intelligence, data analysis and customized market research)

CW industry platforms, e.g., CemWeek (daily industry updates on market moving news and standardized market data updates as well as journals) CBI India 2012 www.gmiforum.com | US Tel +1-203-516-7424 | India + 91 124 4636710 | sales@gmiforum.com

45

CBI India 2012 Conference Delegate Pack

13:30 – 14:10

cement business & industry india 2012

cbi

cement business & industry india 2012 Day 1 Wednesday, October 10, 2012 8:00 8:45 – 8:50

Registration – Leela Ballroom Foyer Welcome, sponsorship recognition ♦♦ Andre Cholewinski – Director of Business & Client Services GMI Global LLC

8:50 – 9:10

CBI India 2012 Opening Remarks ♦♦ Robert Madeira, Managing Director & Head of Research, CW Group

9:10 – 9:30

Keynote Speech ♦♦ Mr. M.A.M.R Muthiah, MD, Chettinad Cement Corporation and President of the CMA India

9:30 – 10:30

Session 1: CEO Panel - Shift from West to East: the big picture Room: The Leela Ballroom 2 & 3 ♦♦ The big picture – shifting economic strength and macro challenges ♦♦ Global context of the cement industry – what lies beyond the horizon? ♦♦ A new operating environment at home and abroad – challenges and opportunities Moderator: ♦♦ Mr. Robert Madeira, Managing Director & Head of Research, CW Group

Confirmed Speakers: Mr. Jamal Bin Shamis Al-Hoot, CEO, Oman Cement Mr. Martin Kriegner, CEO, Lafarge India Mr. Bjarne Moltke Hansen, EVP FLSmidth Mr. Jean-Michel Allard, retired deputy CEO and member of the board, Vicat Group

♦♦ ♦♦ ♦♦ ♦♦

10:30-11:00

Morning break – in the Exhibit Hall

11:00-12:00

Session 2: Indian Boom and Implications for the cement sector Room: The Leela Ballroom 2 & 3 ♦♦ India booming – mega projects and investments in building a nation ♦♦ South Asia cement markets – more attractive than rest of Asia? ♦♦ Cement plant construction projects in India and the region Confirmed Speakers: ♦♦ Mr. Sandeep Mehta, Vice President, Lodha Group ♦♦ Mr. Sumit Bannerjee, Head of Cement, Reliance Cement

12:00-13:30

Lunch

13:30-14:30

Session 3: India and beyond Room: The Leela Ballroom 2 & 3 ♦♦ India as a rising exporter on the global scene ♦♦ What it takes to build export capacity ♦♦ Experiences from booming markets in Asia Confirmed Speakers: ♦♦ Mr. Braj Binani, Chairman, Binani Cements ♦♦ Mr. Robert Madeira, MD & Head of Research, CW Group ♦♦ Mr. J. Pradeep, Senior Research Consultant, Beroe Consulting

14:30-15:00

Afternoon break 1

Subject to change

46

CBI India 2012 www.gmiforum.com | US Tel +1-203-516-7424 | India + 91 124 4636710 | sales@gmiforum.com

cbi

cement business & industry india 2012

cement business & industry india 2012 Day 1 (continued) Wednesday, October 10, 2012 15:00-16:30

Session 4A: Investment management and finance Room: Leela Ballroom 2&3 ♦♦ Project finance, guarantees and other considerations for building cement plants ♦♦ Role of private equity in the cement sector ♦♦ Consolidation on the horizon for India’s cement sector?

Session 4B: Building cement production capacity Room: Leela Ballroom 1 ♦♦ Developments in grinding technology ♦♦ Technological solution for performance Confirmed Speakers: ♦♦ FLSmidth – Speaker to be announced ♦♦ Magnesita Refractories – Speaker to be announced

Confirmed Speakers: ♦♦ Mr. Michel Foillet, Chief Industry Specialist, International Finance Corporation (IFC) ♦♦ Mr. Amit Dalmia, Executive Director, Blackstone India ♦♦ Mr. Rakesh Arora, Head of Research, Macquarie Afternoon break 2

17:00-18:00

Session 5A: The race for export capacity, transportation and strategy Room: Leela Ballroom 2&3 ♦♦ Who is doing what to whom? ♦♦ Considering terminal strategies to reach new markets ♦♦ Building a professional cement trading capability ♦♦ Middle East cement market dynamics and implications for India and Asia cement exporters

Session 5B: Moving product: material handling at the plant and terminals Room: Leela Ballroom 1 ♦♦ Developments in grinding technology ♦♦ Effective project management for the cement plant construction ♦♦ Moving raw materials in cement plants Confirmed Speakers: ♦♦ Mr. Mike Sumner, Technical Director, Cement Addi-

Confirmed Speakers: ♦♦ Mrs. Claudia Stefanoiu, Senior Analyst, CW Group ♦♦ Mr. Ayman Ismail, Head of Trading, Asec ♦♦ Mr. Mangleshwar Verma, Sr. Manager, Oman Cement 18:00-19:00

tives, WR Grace ♦♦ Somi Conveyor Beltings – Speaker to be announced

Reception: Networking and Wine Tasting / Gala Dinner Subject to change

CBI India 2012 www.gmiforum.com | US Tel +1-203-516-7424 | India + 91 124 4636710 | sales@gmiforum.com

47

CBI India 2012 Conference Delegate Pack

16:30-17:00

cbi

cement business & industry india 2012

cement business & industry india 2012 Day 2 Thursday, October 11, 2012 8:00-08:45

Registration

8:45-09:00

Recap from Day 1 and Welcome for Day 2 ♦♦ Mr. Robert Madeira, Managing Director & Head of Research, CW Group

9:00 – 10:30

Session 6: Innovation and fuels Room: Leela Ballroom 2&3 ♦♦ Breakneck pace of innovation in the cement sector? ♦♦ India on the traditional vs. alternative fuel selection curve ♦♦ Coal vs petcoke – choices for Indian cement manufacturers ♦♦ Technological break-throughs in the cement sector – what can we learn from around the world?

Confirmed Speakers: Mr. Krishna Srivastava, Head of Innovation, Zuari Cement Mr. Deepak Ahuja, Manager Alternative Fuels and Raw Materials, ACC Ltd. Mr. Mike Stewart, Director of Petcoke Group, Jacobs Consultancy Mr. Ed Verhamme, Consultant, Coach & Sparring-partner, Alternative Resource Partners

♦♦ ♦♦ ♦♦ ♦♦

10:30-11:00

Morning Break

11:00-12:00

Session 7A:

Economics of fuel

Room: Leela Ballroom 2&3 ♦♦ Competitive fuel economics: what is the future for cement companies? ♦♦ As coal demand soars in India, from which countries will cement companies source the fuel? ♦♦ Petcoke as an alternative fuel?

Confirmed Speakers: ♦♦ Mr. Fabian Munz, Head of Fuel Trading Asia-Pacific

& Africa, HC Trading / HeidelbergCement Group ♦♦ Mr. Patrick Peenaert, VP World Solid Fuels Sourcing, Lafarge ♦♦ Mr. Semih Nihmet, Senior Analyst, Elgin Emtia / Ion Resources 12:00-13:30 13:30-14:30

Room: Leela Ballroom 1 ♦♦ Drive Concepts of Loesche Mills – experience, lessons learned and outlook ♦♦ Saving energy and reducing emissions with advanced filter media Confirmed Speakers: ♦♦ Dr. Daniel Strohmeyer, Director Process Technol-

ogy, Loesche GmbH ♦♦ Mr. Ashish Bhaiya, Manager Business Development, Evonik Fibres GmbH

Lunch Session 8A: Petcoke - the business of it

Room: Leela Ballroom 2&3 ♦♦ Benchmarks for global petcoke trade and prices ♦♦ Global pricing dynamics increasingly driven by China ♦♦ Use of petcoke in the India cement sector – what is enabling growth?

Confirmed Speakers: ♦♦ Mr. HM Bangur, MD, Shree Cement ♦♦ Mr. Dinesh Sharma, Head Petcoke & Sulphur, HPCL-Mittal Energy Ltd. ♦♦ Mr. Abdul Hadhi, Coal and Petcoke Editor, Argus Media Subject to change

48

Session 7B: Developments in fuel management and alternative fuels

CBI India 2012 www.gmiforum.com | US Tel +1-203-516-7424 | India + 91 124 4636710 | sales@gmiforum.com

Session 8B: Technical developments enabling tomorrow’s operations

Room: Leela Ballroom 1 ♦♦ Converting cement plants to use fuels other than coal ♦♦ Developments in microwave technology instrumentation for cement plant process monitoring Confirmed Speakers: ♦♦ Mr. Mark Bryant, Business Development, Browz ♦♦ Mr. Ryk Jensen, Director, SWR Engineering

Germany ♦♦ AMCL Machinery – Speaker to be announced

cbi

cement business & industry india 2012

cement business & industry india 2012 Day 2 (continued) Tuesday, October 9, 2012 14:30-15:30

Session 9A: Innovation and end-users Room: Leela Ballroom 2&3 ♦♦ Green cements – beyond the laboratory ♦♦ Using extenders in cement production – economic impact and other benefits ♦♦ Role of cement additives to lower cement production costs

Session 9B: Squeezing existing plant efficiency Room: Leela Ballroom 1 ♦♦ Life cycle management of cement machinery ♦♦ Automation, efficiency and control ♦♦ Dispatching and logistics solutions Confirmed Speakers: ♦♦ Mr. Keith E. Meyers – Global Segment Manager –

Confirmed Speakers:

Mining, Mineral Processing & Cement, SKF

♦♦ Dr. Sumon Chakravarty, AVP & Head-Technical and

R&D, UltraTech Cement Ltd. ♦♦ Mr. Rajesh Kumar, Regional Climate Change Spe-

♦♦ Carborundrum – speaker to be announced ♦♦ Mr. Nuno Matos, International Business Developer,

Cachapuz

cialist, South Asia, IFC ♦♦ Mr. Mike Sumner, Technical Director, Cement Additives, WR Grace 16:00-16:45

Session 10: CEO panel – An executive view Room: Leela Ballroom 2&3 ♦♦ Review of global cement industry through the recent financial crisis ♦♦ New strategic drivers for the sector Moderators: ♦♦ Mr. Jean-Michel Allard, retired deputy CEO and member of the board, Vicat ♦♦ Mr. Robert Madeira, Managing Director & Head of Research, CW Group

16:45-17:00

♦♦ Closing remarks / Main conference concludes Subject to change

CBI India 2012 www.gmiforum.com | US Tel +1-203-516-7424 | India + 91 124 4636710 | sales@gmiforum.com

49

CBI India 2012 Conference Delegate Pack

Confirmed Speakers: Mr. Braj Binani, Chairman, Binani Cements Mr. Puneet Dalmia, Managing Director, Dalmia Cement Mr. Manoj Gaur, Managing Director, JayPee Group Mr. Sumit Banerjee, Head of cement, Reliance Cement Mr. Martin Gierse, President & Executive Director, KHD India Mr. N. Srinivasan, MD, India Cements

♦♦ ♦♦ ♦♦ ♦♦ ♦♦ ♦♦

cbi

cement business & industry india 2012

Speaker biographies

(In alphabetical order)

Alok Agarwal is currently working with Binani Industries, India as the Senior Executive Director responsible for Marketing, Corporate Strategy and M&A function. He has worked with cement majors like Lafarge as an Executive Committee Member in India and with Holcim as Director in Indonesia. Mr. Agarwal has over 34 years of experience in a variety of industries serving in multi-functional roles. He is a qualified Chartered Accountant and a Management Graduate (MBA) from the University of Delhi and has attended advanced management programs at Harvard, LBS, Wharton and NUS. Deepak Ahuja is the Manager of Alternative Fuels and Raw Material at ACC and the Chief Manager - Process Engineer at ACC. Mr. Ahuja provides support to ACC’s cement plant in order to mitigate the effect of waste utilization in cement manufacturing. He prepared the business plan based on the waste market and cement plant capability and minimized the gap between the supply chain team and the cement plant. He has conducted more than 25 successful co-processing trials on cement kilns to demonstrate that there is no impact on process, production, emission and quality if the waste stream is fed in regulated dosage.

Mr. Ashish Bhaiya is a Chemical Engg B.Tech from the Nagpur University and also did his master’s in international business (MPIB). He has more than 10 years of experience in marketing of various polymers. He has experience in various area such as manufacturing, project handling and sales and business development .

At Evonik Fibres GmbH, he is responsible for techno-commercial support in India related to P84® (polyimide) fibres produced in Austria and Procon® (polyphenylene sulphide) fibres from Toyobo / Japan which are exclusively distributed

by Evonik Fibres. Both fibre materials are

50

used in needle felts for filter bags, e.g in the cement industry. His activities include sales & support with needle felters, bag house OEMs and cement companies. He coordinates Evonik Fibres’ after-sales services like bag condition monitoring and failure analysis and ensures that the company is up to date with new technological developments in the dedusting industry.

Mark Bryant is Director of International Business Development at BROWZ, a global compliance and risk mitigation software solution and service provider. Mr. Bryant manages international business development from the London office. Previously, he handled development in the United States before being promoted to his current role. Prior to joining BROWZ, Mr. Bryant worked in commercial real estate redevelopment, finance and investments.

He earned his master’s degree in business administration from Pepperdine University in Los Angeles.

Dr. Sumon Chakravarty started his professional career as Executive Trainee in Process and Quality Control Department of Century Cement Limited, the flagship company of the B.K. Birla group of companies in 1993. Further, he headed the Research & Development wing of Birla White, the White Cement Division of UltraTech Cement Limited from 2003 to 2007. He has been heading the Technical and Research & Development of Building Products Department, UltraTech Cement Limited, an Aditya Birla Group Company, based at Mumbai, India since 2007. Dr. Chakravarty holds a master’s degree and a doctorate in chemistry from the Ravishankar Shukla University, Raipur, M.P. India. He has published in numerous industry publications and presented numerous papers in domestic and international conferences.

CBI India 2012 www.gmiforum.com | US Tel +1-203-516-7424 | India + 91 124 4636710 | sales@gmiforum.com

Pradeep J. Chennai Pradeep J. Chennai is a Mumbaibased Senior Research Analyst specializing in Industrial Manufacturing & Durables, for Beroe Inc., a procurement intelligence and advisory firm with presence across the globe in strategic locations such as USA, China, Argentina & Singapore. Beroe assists many Fortune 500 clients in a broad array of sectors, and acts as a source of state-of-the-art strategic intelligence with a streamlined focus on procurement.

Michel Folliet is the Chief Industry Specialist at the International Finance Corporation, the private sector arm of the World Bank, Washington, USA. Mr. Folliet was born in France, where he graduated in mechanical engineering from l’École Centrale de Lyon. He also holds an MBA from George Washington University in the United States. He joined IFC in 2006 after 25 years of experience in the cement industry, having worked for Ciments Français and Lafarge in France, the USA, Venezuela, Bangladesh, Malaysia and Cameroon. After starting his career in process engineering, automation, and plant operations, he held the positions of Technical and Industrial Director, Project Director, VP of International Development and Country General Manager.

Abdul Hadhi is Argus Media’s Coal and Petcoke Editor for the Asia-Pacific. Mr. Hadhi tracks the regional thermal, coking coal and petroleum coke markets. He monitors market developments and keeps close contact with industry participants.

cbi Mr. Hadhi has spent more than 20 years covering the energy, financial and property markets for major international newswires and newspapers. Before joining Argus, he managed petrochemicals news coverage.

Jamal Shamis Al Hooti, a graduate from USA, was elected as a Director of Omnivest in 1996. He is the Chief Executive Officer of Oman Cement Company SAOG, the leading cement manufacturing company in Oman, and has held the position of Assistant Director General of Industry, Ministry of Commerce & Industry.

Ayman Ismail is the Head of Trading at ASEC Cement, the international trading arm for ASEC Cement Group. Mr. Ismail holds a mechanical power engineering degree from Alexandria University (1994) and a diploma in management and international business. After extensive experience in the engineering and project management field, he shifted to the cement and trading business in 2002. Previously, he has worked with Orascom Cement as

head of contracts and supply for the Middle East and Africa and BU manager, and with Lafarge as Head of Contracts and Operation.

Robert Madeira Robert Madeira holds an MBA from the Harvard Business School and a triple-major from Brown University. Mr. Madeira is the founder, Managing Partner and Head of Research for the global CW Group, the leading global cement sector advisory and analytics firm of which CW Advisors is a cornerstone along with CW Research and the ubiquitous CemWeek cement industry portal. He has extensive functional experience in management consulting, corporate development/ M&A and investment management. Mr. Madeira works with heavy building material companies worldwide—notably in the cement manufacturing space, equipment vendors, sector investors and principals— as an advisor, providing critical insights and decision support.

Keith Meyers was part of the SKF team that developed the SKF's approach to Life Cycle Management solution of offers into a comprehensive package. He served as Global Manager of the Mining, Mineral Processing and Cement segment. By applying his package, SKF was able, as part of customers' teams, to make incremental improvements to the customers' Overall Equipment Effectiveness (OEE)

and energy usage. Mr. Meyers has been with SKF for 25 years.

Rajesh Kumar Miglani is currently the Regional Climate Change Specialist, South Asia in International Finance Corporation in the New Delhi office. He is one of the leading contributors in IFC in climate business space and was involved in designing and executing the IFC South Asia’s climate change strategy. At the transaction level, he has worked closely with IFC's investment teams on various innovative transactions in clean energy.

His main expertise is in resource efficiency, cleantech and carbon finance. Prior to joining IFC, Miglani spent seven years in Ernst & Young in the area of carbon transaction and Environmental Management.

He was one of the leading members of E&Y’s carbon finance team and facilitated a wide no. of CER transactions with reputed carbon buyers worldwide. He has overall 16 years of experience in climate change space, including five years at IFC. In terms of academics, he holds an ME in environmental engineering and an Executive MBA. M. A. M. R. Muthiah has been the Managing Director of Chettinad Cement Corp. since September 28, 2007. Mr. Muthiah served as Managing Director of Chettinad Marimura Semi Conductor Material P. Ltd. He has been an Executive Director of Chettinad Cement Corp. since May 18, 1998. He served as a Director of Chennai Container Terminal (P) Lt. Mr. Muthiah holds a B.E in computer science and engineering. He is currently serving as the acting president of the Cement Manufacturers’ Association of India and is an industrialist.

Patrick Peneert graduated as a civil engineer in 1976. He then spent three years as a civil servant at the French Ministry of Industry. Following that, Mr. Peneert set up and managed a consultan-

CBI India 2012 www.gmiforum.com | US Tel +1-203-516-7424 | India + 91 124 4636710 | sales@gmiforum.com

51

CBI India 2012 Conference Delegate Pack

Bjarne Moltke Hansen, BSc (engineering) has been Group Executive Vice President of Customer Services of FLSmidth & Co. A/S (formerly, FLS Industries A/S) since August 2002 with overall responsibility for FLS Building Materials since 2001. Mr. Hansen served as Chief Executive Officer of Aalborg Portland Holding A/S and Division Manager in Unicon A/S. He has been employed by the FLS Group since 1984. He serves as Chairman of the Board of Cembrit Holding A/S (formerly Dansk Eternit Holding A/S) and Densit ApS. He served as Chairman of the Board at Aalborg Portland A/S. He serves as a Member of the Board of Directors of Aalborg Industries Inert Gas Systems B.V., Dreisler Invest A/S, Dreisler Storkøb A/S and Aalborg Industries A/S. He served as Director of Aalborg Portland A/S. Mr. Hansen holds a B.Sc. in engineering.

cement business & industry india 2012

cbi

cement business & industry india 2012

cy agency on energy savings. In the mid 1980s, he spent six years with Charbonnages de France Energie to redevelop coal consumption in France before joining SSM COAL in 1989 as a senior trader and area manager for steam coal, coking coal, petcoke and anthracite. Since May 2009, Mr. Peneert has been the Vice President of Purchasing at Lafarge (Paris headquarters), in charge of sourcing Lafarge’s solid fuel need.

Juergen H. Staeudtner Juergen H. Staeudtner has more than 19 years experience in industry and consulting firms in different sectors. He started work in 1993 for Andersen Consulting (Accenture) before joining o.tel.o communications in 1997, where he took over first managing roles. In 1999 Juergen H. Staeudtner founded Cridon. The independent professional work was paused twice, in 2002 for Booz Allen Hamilton and after this up to 2005 for acoreus AG serving as director of business development and managing director of envito GmbH Born in Wuerzburg, Germany, Juergen holds three master’s.

He studied mechanical engineering at TU Munich and ETSIA Madrid, business administration at FU Hagen and painting, photography and conceptual art at

52

FADBK Essen. The latter studies were conducted while working.

Claudia Stefanoiu is a Senior Analyst at the CW Group within the European Analytics Team. She manages various CW Group Analytics initiatives, including much of the Group’s quantitative market analytics, market intelligence and information processes. She is also a core team member of the Group's consulting and advisory client engagements and a frequent speaker at the CW Group's workshops. Mrs. Stefanoiu, a Romanian national, has degrees in Economics and Law and is a Six Sigma Green Belt.

She previously worked at one the Ipsos Group, a major international market research group, where she was a team and project manager.

year. Today Dr. Daniel Strohmeyer fills the position of Director of Process Technology at Loesche GmbH. Mike Sumner has been with Grace Construction Products since 1992 and is Technical Director for Cement Additives. Prior to joining Grace, he was with Blue Circle Industries PLC (now Lafarge) for 14 years in their Technical Centre, UK, where he held a number of positions in R&D and Technical Service concerning grinding research, mill optimization and materials evaluation. He graduated from the University of Birmingham, UK, in 1978 with a B.Sc in minerals engineering.

Mike Stewart is the manager of the team responsible for coordinating all aspects of Jacobs Consultancy's petroleum coke work. This includes Jacobs Consultancy's on-going publication, the Pace Petroleum Coke Quarterly (PCQ), single client fuel-grade and calcined petroleum coke studies. Stewart has 30 years domestic and international experience in the refining and petrochemical industries, including plant operations, strategic and operational planning, market analysis and project management.

Ed Verhamme, consultant, coach and sparring partner at Alternative Resource Partners, has more than 30 years experience in the industrial services, waste management and cement manufacturing industry. He has held a wide variety of roles, such as Sr. Consultant, Lead Auditor and corporate staff and functional positions with P&L responsibilities. Over the 15 years spent at Holcim, Verhamme was instrumental in developing the resource recovery business of Holcim globally.

Most recently, Verhamme was Sr. Consultant for the AFR Business Development Group at the head office in Switzerland and General Manager of the waste management affiliate of Holcim US.

Dr. Daniel Strohmeyer studied geology at the University of Goettingen, Germany. He has a Ph.D. in the same subject. From 2000 to 2003, he did scientific research in the field of technical mineralogy and in 2004, Dr. Srohmeyer started his career as a Technical Sales Manager at Refratechnik Cement.

Moving on to LOESCHE GmbH in 2007 he acted as a Senior Sales Manager and Product Manager for cement and slag mills. In 2011 he joined IKN GmbH as Sales Director where he stayed for one

Mangleshwar Verma was born in March 1952 in Ranchi, India. He worked with many cement companies in India, the Middle East and North America.

He is presently working as Acting General Manager Manufacturing in Oman Cement Company, Muscat. Verma did his Bachelor of Engineering (BE) - Chemical from Ravishankar University, Raipur India and has a post-graduate diploma in Management from AIMA and Doctorate in business administration from University of Bradford (UK).

CBI India 2012 www.gmiforum.com | US Tel +1-203-516-7424 | India + 91 124 4636710 | sales@gmiforum.com

cbi

cement business & industry india 2012

FLOORPLAN

CBI India 2012 Conference Delegate Pack

CBI India 2012 www.gmiforum.com | US Tel +1-203-516-7424 | India + 91 124 4636710 | sales@gmiforum.com

53

on or results

cement business & industry india 2012

cbi

o

Sponsor/Exhibitor Profiles FLSmidth FLSmidth is a leading supplier of equipment and services to the global cement and minerals industries. FLSmidth supplies everything from single machinery to complete cement plants and minerals processing facilities including services before, during and after the construction. FLSmidth invests heavily in developing new solutions to meet the important future energy and emissions challenges our customers.

FLSmidth is headquartered in Copenhagen, Denmark and has major project and technology centres in Denmark, USA and India.

Over the past 130 years, FLSmidth has developed a business culture based on three basic values: competence, responsibility and cooperation, reflecting the way in which FLSmidth interacts with its stakeholders.

FLSmidth product brands include FLSmidth MAAG Gear, FLSmidth Pfister, FLSmidth Ventomatic, Kovako Shipunloaders among many others.

FLSmidth has adopted a corporate social responsibility policy to formalize and highlight the principles of socially responsible behavior, which the Group adheres to in its day-to-day activities. The policy for Corporate Social Responsibility focuses on three main aspects of the Group’s activities: 1. Business ethics 2. Human resources 3. Environment FLSmidth in India FLSmidth Private Limited, in Chennai, is one of the major project and technology centres of FLSmidth Group for both cement and minerals businesses.

The FLSmidth office complex is situated in the IT highway, South of Chennai and is located 32 km from the city centre. This with 26,000 sq m of spacious and modern office space includes a sophisticated Research & Development Centre for the FLSmidth Group. FLSmidth has also set up a foundry, 115 kms from Chennai, for manufacture of its proprietary parts. It has offices in the principal cities of India like New Delhi, Mumbai and Hyderabad.

Also, EEL India Limited and Transweigh (India) Ltd are part of FLSmidth group. EEL India Limited’s product range includes rotary packers for bag packing and bag loading systems, silo feeding and extraction systems, bulk loading systems as well as rotary and stationary big bag filling systems for the cement and related industries. Transweigh (India) Limited is a leading supplier of dynamic weighing systems in India, and manufactures a wide range of Industrial Weighing equipment and Batching systems.

FLSmidth in India employs around 4000 people in total, majority of them in Chennai.

Loesche GmbH Since 1906, Loesche GmbH has been constructing vertical roller grinding mills. Patented in 1928, our roller grinding mill technology has been continually advanced and in the meantime is synonymous with Loesche GmbH.

54

CBI India 2012 www.gmiforum.com | US Tel +1-203-516-7424 | India + 91 124 4636710 | sales@gmiforum.com

cbi

cement business & industry india 2012

The key competence of the company is the design and development of individual concepts for grinding and drying plants for the cement, steel and iron, power, ores and minerals industry. The service portfolio ranges from first concept to commissioning augmented by maintenance, repair, training as well as modernization of grinding plants and spare parts activities.

In April 2012, Loesche GmbH, Germany entered into a close cooperation agreement with pyroprocess specialist A TEC Holding GmbH, Austria. LOESCHE and A TEC will be partners for the realization of plant improvement projects, environmental projects and will be in the position to offer complete process solutions.

Having taken over the specialised department “Combustion Technology” of UCON AG Containersysteme KG, Gelsenkirchen, in April 2012, Loesche offered thermal process technological solutions, thus covering another field of activities with related products e.g. industrial burners and hot gas generators.

Loesche is a privately owned company with its headquarters located in Dusseldorf, Germany and is represented worldwide with more than 850 employees, subsidiaries in the USA, Brazil, Spain, Great Britain, South Africa, India, United Arab Emirates, Russia and P.R. China as well as agents in more than 20 countries.

For more information please refer to: www.loesche.com.

CBI India 2012 Conference Delegate Pack

Magnesita Magnesita Refratários S.A. (“the Company” or “Magnesita”) is a vertically integrated refractory producer supplying the steel, cement and various other industries. In addition, the Company exports some of its raw materials, DBM (Dead Burned Magnesia), and refractories to a wide range of countries. The Company is the leading operator in refractory products in South America, and serves customers in North America, Europe and Asia.

Magnesita operates industrial facilities in Brazil, Argentina, United States, France, Belgium, Germany, Taiwan and China, representing an aggregate production capacity in excess of 1,430 ktpy.

Through its extensive product offering and solution-based sales approach; the Company has been able to expand its market share to 75% in the refractory steel segment and to 90% in the refractory cement segment in Brazil.

The Company benefits from one of the largest and highest quality reserves of dolomite, magnesite and talc in the world. Magnesita also has other mineral deposits, including chromite and several clays throughout Brazil. The Company is able to use 80% (in tons) of its own raw materials in the production of refractories, making it one of the lowest-cost producers in the industry.

Magnesita operates three Research and Development Centers (CPqD), in Brazil, United States and Germany, which supports the needs of the Company and its branches. The Center’s objective is to develop its own technology and become capable of assimilating external technology - the so called “know-how” and technical assistance. Magnesita’s CPqD is equipped with apparatus and devices designed for research and development (R&D) in refractory products and raw materials. An important aspect of the Company’s R&D policy is its continued improvements to the technical team, carried out parallel to frequent contact with product users, international suppliers and universities.

CBI India 2012 www.gmiforum.com | US Tel +1-203-516-7424 | India + 91 124 4636710 | sales@gmiforum.com

55

cement business & industry india 2012

cbi

Sponsor/Exhibitor Profiles SKF India Limited SKF India is engaged in manufacturing bearings and related components, which are used in a range of applications across industries. The Company services various industries from agriculture machinery, automobile, cement, defense, general engineering, infrastructure power, machine tools, off-road vehicles, railways and steel. The Company manufactures its products out of plants based in Bengaluru, Pune and Haridwar. It provides solutions across five platforms namely Bearings and Units, Seals, Mechatronics, Services and Lubrication Systems, to a spectrum of industries.

As of December 31, 2010, the Company had a distribution network with over 300 distributors and 14,000 plus retailers across India. As of December 31, 2010, the Company manufactured around 60 sizes of deep groove ball bearings, 70 sizes of taper roller bearings, and textile machinery components. Its associate company, SKF Technologies (India) Pvt. Ltd., offers customers complete sealing solutions.

W.R. Grace & Co. Grace is a premier specialty chemical and materials company with employees located in more than 40 countries. Our products are used by millions of people each day. Among many other things, we ensure the integrity of some of the world’s major buildings and bridges, enhance the performance of petroleum products and help preserve the integrity of food packaging.

Grace consists of two operating segments, Grace Davison and Grace Construction Products. Grace Davison manufactures catalysts and chemical additives, silica-based and silica-alumina-based engineered materials, specialty sealants and coatings, and chromatography products. Grace Construction Products produces construction materials and systems (including concrete admixtures and fibers, additives, waterproofing and fireproofing materials).

W.R. Grace & Co. was founded in 1854 and is headquartered in Columbia, Maryland.

Cachapuz Cachapuz Bilanciai Group is a reference in the implementation of innovative and highly technological solutions in the logistics, dispatching and weighing areas in cement and other business sectors.

For more information about our company, please take a look at our brochure in the following link: http://www.slvcement.com/EN/news.asp?startAt=2&categoryID=620&newsID=1993 One of Cachapuz’s main solutions is SLV Cement, an innovative software and automation truck management system for cement plants that provides the complete automation of the main functional processes. The solution integrates seamlessly with the client’s ERP and is modular and scalable, adaptable to small and large cement companies worldwide.

Somi Conveyor Beltings SOMI Conveyor Beltings Ltd is a BSE Listed Public Ltd Company, with two manufacturing plants at Jodhpur in India, that is well-connected by air, rail and road. The plants are well-equipped with state-of-the-art, 100% PLC based fully automatic and computerized machineries.

Somi is capable of producing New Generation (Somiflex) Conveyor Belts up to 2000mm width with installed capacity of 9,00,000 meters per annum. The company is specialized and introduced the world-class quality conveyor belts with innovative ideas: New Generation Rubber Conveyor Belts known as “Somiflex.”

56

CBI India 2012 www.gmiforum.com | US Tel +1-203-516-7424 | India + 91 124 4636710 | sales@gmiforum.com

cbi

cement business & industry india 2012

The Company is led under the excellent leadership of our mentor, Mr. O.P.Bhansali. His rich industry experience, along with the ethical business policies, have been a great help to achieving a reputable position for ourselves in the domestic market as well as the international market. Due to his zeal to excel in this business domain, our team is inspired to work with more perfection. Therefore, our team interacts with our esteemed clients in order to understand their specific needs.

Golder Associates At Golder Associates, we strive to be the most respected global company providing consulting, design, and construction services in our specialist areas of earth, environment and the related area of energy. With Golder, clients gain the advantage of working with highly skilled engineers, scientists, project managers and other technical specialists who are committed to helping them succeed. By building strong relationships and meeting the needs of clients, our people have created one of the most trusted professional services firms in the world.

Golder has almost 50 years of experience in the cement and construction material industries and offers a full range of services including: environmental and social impact assessment, alternative fuel assessment and permitting, energy management, worker health and safety services, geotechnical and mine engineering, cultural resource management, information management and strategic planning services. We can customize a full-service package to cement and construction material clients throughout the life of a project.

CBI India 2012 Conference Delegate Pack

The success of Golder’s approach can be seen through our steady growth. We now operate from offices located throughout Africa, Asia, Australasia, Europe, North America, and South America.

Our knowledge of local cultures, languages and regulatory requirements, combined with our global resources, makes it possible for us to help our clients achieve their business objectives around the world and at home.

Mondi Oman LLC The roots of the global business that is now Mondi were first planted in 1967 in South Africa, when our former owners Anglo American plc built the Merebank mill. Following more than two decades’ growth and consolidation in South Africa, we came to Europe in the early 1990s to start a long period of expansion through acquisition.

Mondi is an independent dual-listed business in mid-2007 when successfully demerged from Anglo American with listings on the London and Johannesburg Stock Exchanges. Since January 2008, in place of the former Mondi Packaging and Mondi Business Paper business units, they now operate as two divisions: Europe & International and South Africa.

Mondi Oman LLC is located in Muscat, Sultanate of Oman, and supplies customers in the entire GCC, as well as customers in African and Asian countries. Industrial paper bags for packaging various powdered material like cement, tile adhesive, mortar, gypsum, calcium carbonate, various chemicals in powder form (like PVC, Carbon Black, Titanium Dioxide, etc), and food products (like tea leaves and flour) are manufactured as per the requirements of the customer with specifications ranging from two to four plies, up to four color printing, with or without moisture barrier ply, and with various types of valves, as well as open-mouth bags.

CBI India 2012 www.gmiforum.com | US Tel +1-203-516-7424 | India + 91 124 4636710 | sales@gmiforum.com

57

cement business & industry india 2012

cbi

Sponsor/Exhibitor Profiles

Crescent India CRESCENT CHEMICALS, the flagship company of THE CRESCENT GROUP was established in 1964 in Mumbai as a trader in industrial chemicals, solvents and polymer products. With the expansion of business in trading and related activities, keeping in view of the objective of concentrating on market development of agency products, enlarging the range of trading items and strengthening the import, export and indenting facility an associate company was incorporated in Feb., 1991 in the name of CRESCENT ORGANICS PVT. LTD. Products marketed by CRESCENT reach almost all the segments of the Indian industry with the marketing network in all major cities viz., Mumbai, Delhi, Baroda, Ahmedabad, Daman, Silvassa and Hyderabad. Both the companies have direct access to all major end-users. CRESCENT handles half a million tons of bulk and packed products annually and also has adequate storage facilities for handling bulk imports as well as ample warehousing facilities to store packed products. Having a strong relationship with Indian chemical and petrochemical industries, we have diversified our business activities in the field of exports also.

Recently CRESCENT has also invested in a company based in Hamriyah Free Zone Sharjah, UAE responsible for developing Tank Terminal for petroleum and chemical products. This is in line with Crescent's long-term plan to diversify in business of allied in nature and complements its existing business.

AMCL Machinery AMCL, an ISO 9001:2000 certified company, is in the business of design, manufacturing, supply and installation of Vertical Roller Pre-Grinding Mills and Tri - Lobe Blowers. Amcl also manufactures a complete range of rubber and tire machinery like Banbury mixers, mixing mills, tire building machines, tire curing press, calenders, extruders, tube splicers, etc. To cater to needs of various clients, RMC Unit AMCL manufactures bulk handling systems and transit mixers. All machines manufactured in AMCL are in technical collaborations with various reputable Japanese manufacturers.

AMCL's state-of-the-art manufacturing facility at Butibori includes imported machining centers as well as high- precision other machineries, housed in a covered factory area of 5000 sq.mtrs.

The main business lines of AMCL Machinery Limited are as follows: ■■ Cement projects ■■ Vertical roller mills ■■ Rubber and tire machinery ■■ Three-lobe blowers Starlinger Starlinger, long recognised as the world's leading supplier of the complete range of machinery for woven plastic sacks, continues to develop and refine successful concepts in flexible bulk packaging.

More than 850 satisfied customers in over 130 countries testify to the reliability and high performance of Starlinger machinery and turn-key plants. In recent years, Starlinger's leadership has been demonstrated again and again.

58

CBI India 2012 www.gmiforum.com | US Tel +1-203-516-7424 | India + 91 124 4636710 | sales@gmiforum.com

cbi

cement business & industry india 2012

AD*STAR®, the world-wide patented block bottom valve sack concept, is suited to all types of automated filling and handling procedure and virtually eliminates the problem of sack breakage during handling and transportation.

Promac Engineering Industries Ltd. Promac Engineering Industries Ltd, established in 1972, ISO 9001-2008 certified company are a leading designer, manufacturer and builder of Cement, Process, Power and Bulk Material Handling Plants.

The company is credited with supplying of number of Cement Plants and Coal Handling Plants to their clients in India and abroad and are executing cement plant projects up to 6000TPD. • •

Promac have two huge in-house manufacturing and fabrication facilities to manufacture heavy engineering equipment spread over an area of approximately 1 million square feet.

Promac are exclusive Licencees of M/s Taiheiyo Engineering Corporation (TEC) Japan for Rotary Kiln Cement Plants for production of high quality Grey and White Cement Plants.

In a recent development, PROMAC-TEC are executing the first of its kind, a dual process, gray and white cement plant 4500 TPD Capacity, from single kiln for their clients in UAE. J K Sons Engineers Pvt. Ltd. J K Sons Engineers Pvt. Ltd is a leading manufacturer of PP/HDPE cement Bags having four years of experience with a huge satisfied like prism , Birla.

CBI India 2012 Conference Delegate Pack

J K Sons has commissioned this unit at Bilaspur, Chhattishgarh on 02.10.2008 with Lohia Tapeline in association with Starlinger Austria and Lohia Starlinger, Kanpur. The plant is equipped with latest technology, equipment and Experts in the field to serve you with the best quality product at most competitive prices.

The capacity of the plant is 400 MT per month, which is around 60 lac Bags per month. J K Sons is also commissioning AD star bag manufacturing unit. The production will start by 1st october 2012. After commissioning of this unit, it will have the capacity to manufacture 120 lac bags per month.

J K Sons is registered with DGS&D Delhi for supply of food grain PP bags of 50Kg. J K Sons has a long experience in manufacturing of PP/HDPE Woven Bags. M/s Mittal Polypack Pvt. Ltd., the sister concern, was established in the year 1985 and has been supplying PP Woven bags to reputed cement companies since then.

Another sister concern is M/s Mittal Technopack Pvt. Ltd., situated at Kolkata, which is a 100% Export Oriented Unit, Engaged in manufacturing of jumbo Bags, also 50 Kgs for packing cement and fertilizers. J K Sons is going to launch a latest cement bag manufacturing technology AD STAR for which we have imported a setup of latest machineries from the leader of machine manufactures STARLINGER Austria.

CBI India 2012 www.gmiforum.com | US Tel +1-203-516-7424 | India + 91 124 4636710 | sales@gmiforum.com

59

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

Worldwide monthly cement prices

■■ Major market retail prices ■■ Regional retail price indices ■■ Covers grey and white products

Regional monthly cement price indices: ■■ ■■ ■■ ■■

Mediterranean basin North America & Caribbean East & Southeast Asia And other regions

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

Global market cement prices.

Import & export trade prices.

All in a single must-have resource.

Annual subscriptions include four quarterly 50+ page reports:

■■ Single user: USD2,300 ■■ Multi-user (max 3-users): USD3,800 ■■ Corporate use: Upon request

Contact us at sales@cwgrp.com to discuss this unique offering further.

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