Cement Maker Birla Corp Acquisition Update

Birla Corp.'s Cement Maket Changing Cement Units Acquisition

If cement industry experts and cement insider reports are to be believed, the biggest acquisition that the MP Birla Group's cement division, Birla Corp. is to undertake may not materialize at all. The 96 year-old Kolkota based cement company, is all set to acquire 2 cement units of Lafarge India in one of the cement industry's biggest and market changing deals.The ongoing ownership dispute between the Birla family and the Lodhas, who now manage Birla Corporation, according to news reports, could create obstacles for the deal between Lafarge and the company.

The MP Birla group has a 63% share in the company, but Birla Corp. is currently managed by Harsh Lodha, son of the late RS Lodha, a chartered accountant, who was a close confidant of the MP Birla family.

The total installed cement capacity of Birla Corp. is 8.79 MPTA and with the acquisition of  the Jojobera and Sonadih cement businesses from Lafarge India with a cement capacity of 5 MPTA approx., the company will have a total installed capacity of approx 14 MPTA. This will catapult Birla Corp. into the top 10 cement companies in the country and will be a game-changer for the eastern cement markets. Birla Corp will then be a dominant cement player in those geographical areas.

India Cements Q1 Net at Rs.40 Crore

India Cements Business Performance

India Cements Limited, Chennai, reported a better-than-expected net profit of Rs. 40.10 crore for the quarter ended 30 June, 2015 helped by higher cement prices mainly in the southern markets where the company's major cement sales is done.

The Chennai-based company had registered a net loss at Rs 2.96 crore in corresponding quarter of the previous financial year.

For the financial year ending March 31, 2015 net profits of the company were at Rs 29.45 crore.

The cement maker's total standalone income stood at Rs 1,075.45 crore in the first quarter as against Rs 1,234.82 crore in the same quarter of 2014-15.

For the 12 month period ending March 31, 2015 total income from operations stood at Rs 4,453.85 crore.

The total expenses of the company, were Rs 931.48 crore as against Rs 1,134.66 crore in the reported quarter.

Capacity utilisation had dropped to 58 % from 67 % in the corresponding quarter. Net plant realisation per tonne of cement had increased by almost Rs 600 to stand at Rs 3930 compared to Rs 3312 earlier.

The total sale of cement for the quarter for India was 20.81 lakh tonne as against 23.91 lakh tonne a year ago, a slump of 13 per cent.

The Chennai based India Cements has 7 integrated plants in Tamilnadu & Andhra Pradesh, one in Rajasthan (through its subsidiary Trinethra Cement Limited) & 2 Grinding units, one each in Tamilnadu & Maharashtra with a total installed capacity of 15.5 MTPA and a annual turnover of Rs.52.31 Bn.

India Cements Q1 Results

India Cements Performance

India Cements Profits

The Making Of A Giant Global Cement Producer

Lafarge-Holcim

The mega-merger of Lafarge and Holcim throws up some astounding facts, a few are given below.
Mega-Merger of 2 cement giants Lafarge and Holcim.
Combined cement experience of 180 years.
Combined cement production of 386 million tonnes per annum.
Good presence in emerging cement markets of Asia and Africa with high cement demand.
Presence in 90 countries worldwide of which 73 countries are emerging cement markets.
13 cement product research and development labs.
1300 construction materials research experts.

Read more here on this well written article on the Larfarge-Holcim Cement Business Merger.