UltraTech Joins EP100

The Climate Group is an international non-profit, founded in 2004, with offices in London, New Delhi and New York. Their stated goal is a world of under 2°C of global warming and greater prosperity for all, without delay.

And they propose to bring about these changes by:

Bringing together powerful networks of businesses and governments, which shift global markets and policies, towards this goal.
By acting as a catalyst to take innovation and solutions to scale. And use the power of communication to build ambition and pace.
By focusing on the greatest global opportunities for change.

EP100
The Climate Group’s global EP100 initiative in partnership with the Alliance to Save Energy brings together a growing group of energy-smart companies committed to using energy more productively, to lower greenhouse gas emissions and accelerate a clean economy.

The Climate Group estimates that if 100 companies double their energy productivity by 2030 – generating twice as much economic output for every unit of energy consumed – over 170 million metric tons of emissions could be avoided cumulatively, equivalent to taking 37 million cars off the road for a year.

By setting ambitious targets and integrating energy efficiency into business strategy, leading companies are driving clean tech innovation while delivering on emissions reduction goals – inspiring others to follow their lead.

Dalmia Cement, H&M and Johnson Controls are already on EP100 according to The Climate Group's official website.

The Aditya Birla's UltraTech Cement is the latest company to join the EP100 initiative. UltraTech has committed to double its energy productivity, improvement of energy performance is one of the critical levers for UltraTech to reduce the carbon intensity of its operations. This will also provide a strategic boost to UltraTech's low carbon growth target of reducing carbon intensity by 25 per cent by 2021 (2005 baseline) according to a statement issued by the company.

Ms.Helen Clarkson, CEO, The Climate Group, said, “It’s hugely encouraging to see UltraTech, one of the leading cement producers globally, step up on energy efficiency – this is a win-win for emissions reduction and business growth. We need to see many more cement companies and other large energy users in hard-to-abate sectors follow UltraTech’s lead.”

Mr.K K Maheshwari, Managing Director, UltraTech Cement Limited said, “UltraTech Cement has always been at the forefront in adopting sustainable processes in its business operations. The Company has some of the best performing plants on energy metrics across the world. As a responsible organisation, we realise the need for further substantial improvements in energy productivity. Our membership of EP100, we believe, will play a catalytic role in helping us accelerate towards doubling our energy productivity, which is a key strategic lever to achieve sustainable business growth”.

Cement Industry Awaits GST Cuts

Indian Cement Industry Expects 18% GST against Current 28

The Cement Manufacturers Association of India has long been lobbying for the reduction in the GST for cement. They had argued that a cut in the tax rate would help as it would boost infrastructure spending. This sounds good to a government looking to create more jobs and boost the economy. On a secondary level it could be a big shot in the arm for stakeholders like individual homebuyers and builders.

GST Council To Meet September 28th

The CMA is taking heart at Finance Minister Mr. Arun Jaitley's earlier statement that the GST Council may look to reduce the tax rates on cement, air-conditioners and large screen televisions as revenues improve. The GST Council is slated to meet for two days, beginning September 28 and may take up a proposal to cut the tax rate on cement to 18 per cent from 28 per cent as the move may create more jobs and boost the economy ahead of the general elections.

On the other hand, informed sources imply that a dip in the August revenue collection could weigh on the council's decision on a cut. The council may not immediately cut the tax rate on the cement sector as it would have a revenue impact of around Rs. 1,000 crore per annum according to some estimates. Furthermore, the GST Council in July had reduced the tax rate on around 30 items, including paints and white goods such as refrigerators and washing machines, to 18 per cent from 28 per cent, which had a revenue implication of about Rs. 10,000 crore per annum. Whether, the Government is willing to forego another Rs.1,000 crore per annum so close behind is anyone's guess.

In a related note,  GST collections for August declined 1.7 % to Rs. 93,960 crore from Rs. 96,483 crore in the previous month. However, insider analysts have argued that a cut in the GST rate for the construction sector will boost demand and increase revenue collection. At present, while cement is taxed under the 28 per cent slab, many other items used in construction sector are in the 18-per-cent slab.

Related trivia : Construction in India is a labour-intensive sector that contributes 8 % to the Indian gross domestic product.

On unrelated news, cement shares declined.

UltraTech Cement (down 2.67%),
ACC (down 1.34%),
Ambuja Cements (down 1.25%),
Grasim Industries (down 0.39%).
Grasim has exposure to the cement sector through its holding in UltraTech Cement.

Penna Cements Cochin

Penna Cements' Cochin Operations

The arrival of Shipping Vessel 'Penna Suraksha' carrying 25,000 MT of cement from Krishnapatanam Port kickstarts the beginning of operations of the 4th cement terminal at Cochin Port.

The cement brought from Krishnapatnam Port is being transferred from the ship to the silos located in the cement terminal at Q6 berth of Ernakulam Wharf through pneumatic suction. Catering to the cement deficit Kerala market, the company has set up a Rs.60 crore facility to handle bulk cement.

This paradigm shift in the transportation of cement from the conventional road/ rail to shipping is another step towards promoting coastal shipping envisaged under the Sagarmala programme. Cement being a high-volume, low-value product, low-cost sea transport is set to be a game changer in logistics. The National Perspective Plan lists coastal movement of cement as an important segment of India’s coastal shipping potential.

The bagging terminal of Penna Cement is the fourth such terminal in Kochi. The terminal set up in 1.14 hectares land leased by the port is expected to handle 3 lakh tonnes of cement annually.

As of now, three bulk cement terminals, one each of Ambuja Cements, UltraTech Cements and Zuari Cements are in operation. Malabar Cements, a Kerala Govt. cement company has also been allotted land for setting up a cement bagging terminal. The three currently operational terminals handle 7,83,000 tonnes of cement annually and a throughput of 1.5 MMT is expected by 2020. The current annual sales volume of Penna Cements for the whole of India is 5.80 MMT, of which 0.30 MMT is in Kerala, which is confined to the Malabar Regions. The packing terminal here will be catering to the requirements of central and south Kerala.