CEE Oct-Dec 2012

--! •: ', • • • r •.,- .· Merger & Acquisition ·, ~ ~ K o(' • a CRH TO PAY RS 4,200 CR FOR STAKE IN JAYPEE CEMENT The Irish building materials group, CRH is set to pick up a controlling 51 per cent stake in the cement operations of Jaiprakash Associates in Gujarat for an enterprise value of Rs 4,200 crore, according to sources. The Irish company will also have the option of increasing its holdi ng to 65 per cent over the next three years at a pre-fixed price via a call option. As per the sources, CRH will have the option of picking up an additional 14 per cent from Jaiprakash Associates at the current price plus a 16 per cent annual ized return or at a fair price determined by an independent valuer, whichever is higher. Jaypee Cement has two plants in Gujarat in Sewagram and Wanakbori - each having a capacity of 2.4 million tonne (mt). After the transaction Jaypee Associates, the diversified power to real estate and cement group's flagship, will be able to deleverage its balance sheet, which has been struggling to bring down its consolidated debt of Rs 45,000 crore. Courtesy: Indian Cement Review, Sep. 2012, P10. DALMIA BHARAT ACQUIRIES ADHUNIK CEMENT FOR RS.560 CR for Rs. 560 crore . "As part of its growth plans, Dalmia Cement Bharat has acquired 100 per cent stake in Meghalaya-based Adhunik Cement. Adhunik Cement has a robust presence in markets of the North East with a near 10 per cent market share and a capacity of 1.5 million tonnes per annum (MTPA)," it said in a statement. The company added, "ownership of this business (Adhunik Cement) comes at a phased investment of Rs. 560 crore and follows the non– organic, acquisition based growth strategy of Dalmia Cement Bharat." In January this year, Dalmia Cement had acquired 50 per cent stake in Calcom Cement, Assam for about Rs. 238 crore. Adhunik Cement is a joint venture between Adhunik Group and MSP Group, both based out of Kolkata and sell s cement under 'Adhunik MSP brand. According to Adhunik group's website, Adhunik Cement has a 1.5 MTPA manufacturing facility in the Jaintia Hills, Meghalaya and a 25 MW captive power plant. Dalmia Cement Bharat is a leading domestic cement manufacturer and is a subsidiary of Dalmia Bharat Enterprises. Shares of Dalmia Bharat Enterprises were trading at Rs. 167 a piece on the BSE in the late afternoon trade, up 11.93 per cent from the previous close. Courtesy: Dalmia Cement Bharat on 28.9.2012 said it The Financial Express New Delhi, 29.09.2012. has acquired Meghalaya-based Adhunik Cement Technology Upgradation ADOPTION OF NEWCONCEPTS IN MATERIAL HANDLING Jai P Gupta and Rakesh Kalra of Holtec Consultancy write about concepts which could substantially reduce loading and unloading time, area for grinding units and reduce the quantity of material movement. Indian cement industry has witnessed rapid growth in past 2-3 decades. The overall production capacity of the industry, which used to be approximately 60 million tonnes in early 90's, has more than quadrupled in about 20 years. Such rapid growth has posed several challenges in front of the industry, some of which are: • Easy to access limestone deposits are no more available and industry is facing difficulties in land availability/acquisition. • Growing demands and need of fly ash based PPC production, forcing the industry to go for grinding units close to thermal power plant. • Unit sizes becoming larger to harness economies of scales. Due to above issues, the needs of high capacity material movement at fast pace has substantially increased. As the road network in India is inadequate, majority of pressure goes on rail transportation. Therefore the paper covers majority of suggestion rel ating to the material movement through rail routes. This paper covers certain concepts which could substantially reduce loading and unloading time, area for grinding units or reduce the quantity I l