Monthly Report - DECEMber 2020 Cement Update Monthly Report December 2020 | 1 TABLE OF CONTENTS JSW owned Shiva Cement to invest Rs 1,500 crore on clinker facility in Odisha .................. 07 UltraTech to invest Rs 5,477 crore towards 12.8 mtpa capacity expansion .................. 09 ACC and Ambuja Cement to invest Rs 780 crore to set up waste heat recovery .................. 10 power plants Southern India sees boost in cement prices .................. 11 Disclaimer: The information contained in this market update is drawn from wide range of newspapers, business and trade magazines, government, company and industry association websites. While all possible care is taken to verify the correctness and authenticity of information contained in this compilation, no claim to independent authorship of articles is implied or intended. Readers are expected to make their own independent evaluation and verification of information for their use. While all information contained in this report are believed to be correct, the editors of this compilation or J.M.Baxi & Co. do not guarantee the quotes or other data Monthly Report December 2020 | 2 PORT ANALYSIS Cement Traffic at Indian Ports (Qty in Millions Tonnes) Monthly Report December 2020 | 3 CEMENT TRAFFIC AT INDIAN PORTS (QTY IN MILLION TONNES) Port Name Apr-Oct 2020 Apr-Oct 2019 Variance Y-o-Y BEDI 0.048 0 0.048 COCHIN 0.634 0.775 -0.141 DHAMRA 0 0.213 -0.213 DHARAMTAR 0.057 0.148 -0.091 GANGAVARAM 0 0.157 -0.157 GOPALPUR 0.025 0.075 -0.05 HALDIA 0.162 0.38 -0.218 JNPT 0.309 0.522 -0.212 KANDLA 0.008 0 0.008 KAKINADA 0.224 0.128 0.096 KARAIKAL 0 0.101 -0.101 KRISHNAPATNAM 0.571 0.415 0.156 MANGALORE 0.204 0.12 0.085 MUMBAI 0.024 0.006 0.018 MUNDRA 0 0.028 -0.028 PIPAVAV 1.397 1.578 -0.181 PORBANDAR 0.033 0.054 -0.021 PORT BLAIR 0.001 0.012 -0.011 TUTICORIN 0.125 0.103 0.022 Grand Total 3.822 4.812 -0.99 Monthly Report December 2020 | 4 CEMENT IMPORTS - APR - OCT 2020 (QTY IN MILLION TONNES) SRI LAN- IMPORTER BANGLADESH COASTAL IRAN OMAN U.A.E. KA AMBUJA CEMENT LTD. 0 0.117 0 0 0 0 GLOBAL COAL & MINING PVT. LTD. 0 0 0.028 0 0 0 GP GLOBAL ENERGY PVT. LTD. 0 0 0 0.044 0 0 JSW CEMENTS & CO. 0 0 0.029 0.028 0 0 JSW STEEL LTD. 0 0 0 0 0 0.057 PENNA CEMENT INDUS. LTD. 0.025 0.05 0 0 0 0 RAMCO CEMENTS LTD. 0 0.078 0.105 0 0 0 RINTAC TRADING PVT. LTD. 0 0 0.053 0 0 0 ULTRATECH CEMENT LTD. 0 0.505 0 0 0.021 0 ZUARI CEMENTS LTD. 0 0.003 0 0 0 0 CEMENT EXPORTS - APR - OCT 2020 (QTY IN MILLION TONNES) EXPORTERS BANGLADESH COASTAL MAURITIUS SRI LANKA BHARAT CEMENTS 0.046 0 0 0 BHARATHI CEMENT 0.045 0 0 0.026 MY HOME INDUS. PVT. LTD. 0.011 0 0 0 PENNA CEMENT INDUS. LTD. 0 0.2 0 0.14 RAMCO CEMENTS LTD. 0 0.078 0 0 SAURASHTRA CEMENT LTD. 0 0.033 0 0 SUNRISE MINING CO. 0 0 0.002 0 ULTRATECH CEMENT LTD. 0 0.624 0 0.752 ZUARI CEMENTS LTD. 0 0.005 0 0 Monthly Report December 2020 | 5 HIGHLIGHTS • JSW owned Shiva Cement to invest Rs 1,500 crore on clinker facility in Odisha • UltraTech to invest Rs 5,477 crore towards 12.8 mtpa capacity expansion • ACC and Ambuja Cement to invest Rs 780 crore to set up waste heat recovery power plants • Southern India sees boost in cement prices Monthly Report December 2020 | 6 JSW owned Shiva Cement to invest Rs 1,500 crore on clinker facility in Odisha through a combination of long-term debt and • JSW Cement Managing Director Parth Jindal equity, the company said. “Once commissioned, said,”The new clinker unit at Shiva Cement this clinker unit will service JSW Cement’s in Odisha will provide a strategic advantage manufacturing facilities across the East region to service the needs of our customers in the and is expected to create around 500 direct & region and further strengthen JSW Cement’s indirect job opportunities,” said Parth Jindal, JSW leadership position in the Green category in Cement’s managing director, during the media India.” interaction. Shiva Cement has already received some of the regulatory and statutory approvals and is on track to obtain other necessary Shiva Cement, a subsidiary of Parth Jindal-led clearances, Jindal said. The company expects JS Cement, will be investing Rs 1, 500 crore in to commission the clinker unit by the end of a 1.36 million tonne clinker unit project to be next scal. The project includes setting up of a 1 established in Sundergarh district of Odisha Monthly Report December 2020 | 7 million tonne per annum (1MTPA) grinding unit, per day capacity Clinkerization unit and L&T has 8 MW waste heat recovery power plant, 4 MTPA been awarded the contract for Civil, Mechanical crushing plants at its dolomite and limestone & Refractory erection work of the new clinker mines. The company plans a 10 Km long unit at Shiva Cement. For JSW Cement, the new overland belt conveyor to transport limestone clinker unit being established by Shiva Cement is from the mines to the manufacturing plant and part of its strategic roadmap to achieve 25 MTPA own railway siding with 12 Km long railway capacity by 2025, with a special focus on scaling track upto Sagra station to ensure seamless up its presence in the Eastern region of India. transportation of nished goods to the market. “All business initiatives and investments are The Rs 1500 crore project will be serviced via driven to achieve the targeted nancial, production debt to the extent of Rs 1.150 crore and JSW will and sales growth position and list the company invest 150 crore through redeemable preference publicly in the next few years,” Jindal said. The shares and the remaining through a rights current expansion will also aid in a raw material issue. JSW Cement has manufacturing units integration with JSW Steel’s planned acquisition at Vijayanagar in Karnataka, Nandyal in Andhra of the 3.5 million tonne (MT) Bhushan Power and Pradesh, Salboni in West Bengal, Jajpur in Odisha Steel Ltd (BPSL) is also located in Odisha. “JSW and Dolvi in Maharashtra. “This was always the Steel is set to acquire BPSL, given that they are plan, Clinker was coming all the way from Andhra present in the same location, there will be further Pradesh and the cost was very high along with raw material integration and security for this some supply chain disruption taking place at current unit,” Parth Jindal said. Shiva Cement’s any time. This is a very strategic investment for plan to establish a new clinker unit further us,” Jindal said. Shiva Cement’s clinker project reairms the group’s commitment to investments contracts have been awarded to Thyssenkrupp in the State. The new clinker unit at Shiva Cement Industries India and Larsen & Toubro. in Odisha will provide a strategic advantage, Thyssenkrupp has been contracted to design Jindal said. and supply a new state of the art 4,000 tonnes Source: Economic Times Monthly Report December 2020 | 8 UltraTech to invest Rs 5,477 crore towards 12.8 mtpa capacity expansion which has picked up pace and is expected to get • Given its pan-India presence which will commissioned by FY22, in a phased manner. The be further strengthened by the capacity commercial production from the new capacities expansion, UltraTech will be well-positioned is expected to go on stream in a phased manner, to support the rising demand for cement in by Q4FY23.“This capacity addition will not impact the country, Birla added. the ongoing deleveraging program which is on track to make UltraTech debt free by the time the expansion program is completed,” the company Aditya Birla Group’s cement flagship company, statement said. Upon completion of the latest UltraTech has announced Rs. 5,477 crore of round of expansion, the Company’s capacity will investment on a mix of greenfield and brownfield grow to 136.25 mtpa, reinforcing its position as capacity expansion of 12.8 million tonne per the third largest cement company in the world, annum. This comes as the rst major investment outside of China. Several cement companies had of this size by a cement maker in recent shelved their expansion plans due to a sluggish years. “This significant investment in a core demand growth in FY20, followed by an economic infrastructure sector will accelerate the wheels slowdown during the rst half of FY 21 due to the of economic activity and aid the kickstart of viral pandemic-led lockdown. However, analysts the private investment cycle,” said Aditya Birla and industry sources point that the healthy Group’s chairman Kumar Mangalam Birla in a operating margins reported by companies in Q2 of media statement. Given its pan-India presence FY21 have allayed fears of cashflow impairment which will be further strengthened by the capacity and companies have resumed greenfield and expansion, UltraTech will be well positioned to expansion projects that were kept on hold. “The support the rising demand for cement in the cement industry has been witnessing healthy country, Birla added. This expansion includes volumes post relaxation of lockdown, on the back the existing approval for the cement plant at Pali of the Government’s thrust on infrastructure, in Rajasthan, in addition to the company’s 6.7 underlying demand from the rural economy and mtpa capacity expansion currently underway in individual home builders,” Birla said.