Cement companies keen on JV with NTPC

The country’s largest power generation company, National Thermal Power Corporation’s (NTPC), move to foray into cement making in a joint venture has aroused interest among the domestic cement players.NTPC last week said that it has invited expressions of interest (EoI) from companies to partner the state-owned company in setting up four plants to manufacture cement using fly ash generated from its power stations.North-based Shree Cements, which has plans to set up a grinding unit in a joint venture with NTPC, has already submitted an EoI.

“The location of our grinding unit, which will have a capacity of around 1 million tonnes per annum, could be in Haryana, Uttar Pradesh or Rajasthan, close to Delhi’s Badarpur unit of NTPC,” said Bangur, who is also the president of Cement Manufacturers’ Association. “We will supply clinker and NTPC will provide fly ash,” he added.

Read more in The Business Standard article.

Lafarge buys L&T concrete unit for $349 mn

Lafarge, the world’s second-largest cement maker, has acquired Larsen and Toubro’s (L&T) Ready Mix Concrete (RMC) business for $349 million (Rs 1,480 crore). The deal will help Lafarge access L&T’s 66 plants and also make it the country’s largest RMC maker.Leading cement manufacturers Holcim, AV Birla Group and Heidelberg were also in the race to buy the business.

Lafarge has routed the acquisition through its building material firm Lafarge Aggregates & Concrete. A formal announcement is expected on Thursday. Lafarge is believed to have informed the Paris stock exchange. Lafarge India is not a listed entity.JM Financial advised Lafarge on the transaction, while Citigroup Global Markets advised L&T.

Each unit of L&T Concrete has a capacity to produce 5,000-6,000 cubic metres of concrete a month, while the total capacity is estimated to be around 3-4 million cubic metres per annum. RMC is widely used in the building and construction industry in India, where L&T has a 25% market share.

Read more in The Economic Times article.

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Lafarge leads race for L&T Concrete

Lafarge leads race for L&T Concrete

French cement major Lafarge SA, the world's second-largest cement maker, has emerged the frontrunner in the race to acquire the ready-mix concrete (RMC) business of engineering and construction major Larsen & Toubro (L&T).

The construction giant sold its cement business to the Birlas in 2003, now UltraTech Cement, but retained the RMC division. The company is the leader in the RMC segment with a market share of 25 per cent. The revenue is Rs 1,000 crore annually.

In December last year, L&T had decided to hive off its RMC business into a separate entity called L&T Concrete. The company's plans to hive off its non-core businesses.
L&T has 66 RMC plants across the country with an overall annual installed capacity of around 4 million cubic metres.Industry analysts said RMC constitutes 3 per cent of the total cement business at present, but the growth opportunities are enormous with spending on infrastructure on the rise.

Lafarge entered the Indian market in 1999, with the acquisition of Tata Steel's cement business. This acquisition was followed by the Raymond Cement facility in 2001.Swiss cement major Holcim was also in the race as both cement firms see this business as the future of the cement industry.

Read more in The Business Standard article.