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Plant and terminal contracts in India

World Cement,

Automation order for ABB

Century Cement, India, has contracted ABB to design, engineer and supply integrated automation and modern electrification systems for its Manikgarh Cement plant. The order, worth US$18 million, comes as part of a two-line expansion and modernisation project that will add 2.8 million tpa to the plant’s capacity. Manikgarh Cement, which is located in Maharastra in central India, will also be adding a 60 MW thermal power plant onsite.

ABB will deliver integrated power and automation systems using a plant-wide 800xA automation system to control, connect, and optimise the performance of all processes and systems. The scope of supply includes medium-voltage switchgear, distribution transformers and other electrical equipment and power systems, intelligent low-voltage motor control centres, variable speed drives, instrumentation, and collaborative production management systems. ABB will also provide design, engineering, project commissioning, and other site services. The project is due to be completed within 18 months.

New cement terminal for Cochin Port

Italcementi-owned Zuari Cements is to set up a new cement terminal at Cochin Port in Kerala, southwest India. The port is located in a good position for access to Singapore and the Far East as well as East Africa. Ambuja Cements is already operating a 300 000 tpa terminal at Cochin and Ultratech is setting up a 200 000 tpa terminal. Zuari’s proposed terminal will have a capacity of 360 000 tpa and will be located near Q5 berth at the Ernakulam wharf. No information is as yet available about the loading, unloading and bagging equipment to be used at the terminal, which will ship bagged cement to markets in Kerala and on to Karnataka and Tamil Nadu.

India Cements eyes export markets

India Cements reported a 39% drop in net profit in the quarter ended 30 June 2012, at Rs.62 crore from last year’s Rs.102.03 crore. Net sales, however, rose 13.5% to Rs.1201.37 crore.

“They have taken a hit because of the Rs.25 crore forex loss and Rs.20 crore in IPL expenses in the quarter. Without these two one-time expenses, they would’ve beaten the estimates,” Novonil Gua, analyst at Brics Securities Ltd, told Live Mint.

India Cements has three plants in Tamil Nadu and four in Andhra Pradesh and has been operating at capacity utilisation of around 67%. The company has a 50 MW power plant in Tamil Nadu and is expected to commission a second 50 MW power plant in Andhra Pradesh next year. Its US$20 million coalmine in Indonesia is expected to be ready for production in a couple of months. Meanwhile, the company is exploring potential for exports to Sri Lanka and South Africa. Exports to Sri Lanka are expected to begin this fiscal. However, at the quarterly results press conference, N Srinivasan, vice chairman and managing director told reporters: “The amount of exports will be marginal. We are not considering it as enough to offset the slowdown in demand in India and the overcapacity of the facilities”.

Edited from various sources by Katherine Markham.

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