CEE Jul-Sep-2012

SANGHI CEMENT TO INVEST RS 120 CR FOR CAPACITY Sanghi Industries, one of the major cement manufacturing companies in India has planned to increase its Sanghipuram facility in Gujarat by one million tonne, taking the total capacity to 3.6 million tonnes. The company will invest around Rs 120 crore for the proposed expansion . In this process company will be debottlenecking some of the equipment for addition of one million tonne. The company proposes to commission the project in 18 month's bout. Besides manufacturing OPC (Ordinary Portland Cement) and CPC (Calcium Phosphate Cement) grades of cement, the company is projecting for a special grade of cement in the near future. Courtesy: Indian Cement Review, June 2012, P18. Merger & Acquisition IRISH GROUP CRH SET TO BUY 51% IN JAYPEE CEMENT'S GUJARAT PLANTS CRH, the $13.7-billion Irish building materials group, is close to picking up a 51 per cent stake in Jaipraksh Associates' cement operations in Gujarat at an enterprise value of about Rs. 4,200 crore, said two persons familiar with the development. The enterprise value of Jaypee Cement Corp's plants in Sewagram and Wanakbori - having a capacity of 2.4 million tonnes each - includes debt of about Rs.1 ,800 crore. The deal will help Jaipraksh Associates its pare debt by about Rs. 1,800 crore and infuse about Rs. 1,200 crore in cash into the company. The company has consolidated debt of about Rs. 45,000 crore. Under the propose transaction , the Irish firm has the option to increase its holding to 75 per cent at a pre-determined price. "CRR will have the right to buy additional 24 per cent in next 2 years, which can be acquired for Jaipraksh Associates at current price plus 16 per cent annualized return, or at an independent valuer-determined market price, whichever is higher," said one of the person quoted above. "The parties have come to an understanding and the documentation process is under way, " he added . Spokespersons of Jaiprakash Associates and CRH declined to comment, saying they do not comment on market speculation. ET had reported on July 19 that the Irish group was in discussions to buy Jaiprakash Associates' cement plants in Gujarat and Andhra Pradesh. While the Gujarat transaction is nearing closure, CRR and Jaipraksh Associates' are still in talks over the Andhra Pradesh cement unit, said one of the two persons familiar with the discussions. Some other buyers ha ve also evinced interests in the AP unit, which has an annual capacity of five million tonnes, he said . He, however, refused to divulge the names of the new suitors. The valuation of the Gujarat plants translates into about $160 per tonne, while that of the Andhra is expected to be slightly lower. Jaiprakash Associates, a diversified conglomerate with interests in cement, power; infrastructure, real estate, construction and hospitality, had spun off its cement separate company last year. Jaipraksh Associates has a total cement-making capacity of around 23 million tonnes, making it the third-largest player in India after Holcim and AV Birla Group's Ultra Tech. Following the divestment of the Gujarat unit, its total capacity will fall to 18 million tonnes, although the Delhi-based company will continue to hold 49 per cent in the unit. CRH entered India in 2008 by acquiring a 50 per cent stake in Hyderabad-based cement producer My Home Industries, which has an installed capacity of 4.2 million tonnes. Courtesy: The Economic Times, New Delhi, 06. 08. 2012. Technology Upgradation ~•: Maintenance CUTilNG CLINKER COOLER DOWNTlME AND MAINTENANCE COSTS The problem faced during the operations and shutdown of clinkers can be taken care of with an automatic lubrication system that would provide automatic, hands-free lubrication 24/7. Clinker coolers endure extremely high operating temperatures and dust levels. Because of these conditions, as well as the central role that clinker coolers play in cement production, they are generally shut down frequently for manual re– lubrication and inspection. While these planned shutdowns are labour-intensive and drive maintenance costs, the alternative - unplanned shutdowns due to lubrication-related bearing failures - can be far more costly in terms of repairs and lost production. SKF can help. 17