Dalmia Cement builds and buys

OCL India has reportedly commissioned a cement grinding plant at Salboni, Medinipur, in West Bengal. Commercial operations began on 20 April 2014. OCL is part of the Dalmia group of companies, the fourth largest player in the Indian cement industry.

Last month, Dalmia Cement (Bharat) Limited, approved the acquisition of a 74% stake in Bokaro Jaypee Cement Limited, a JV between Jaiprakash Associates Limited (JAL) and the Steel Authority of India Limited. The total enterprise value is Rs.1150 crore. The acquisition brings an additional 2.1 million tpa of cement to the company via a plant in Bokaro, Jharkhand, which has a 30-year clinker supply agreement with JAL and a 30-year slag supply agreement with the Steel Authority of India.

With elections in India fully underway, the cement industry is holding its breath in anticipation of a big infrastructure spend by the new government. ‘Policy paralysis’ has been blamed for a slowdown in the industry over the last year or so, but as the population nears 1.3 billion, infrastructure development is sorely needed, as is housing. Weather forecasters are predicting a below-average rainfall during monsoon season this year, which is bad news for the agriculture industry and could have a negative impact on the economy, though it may be good news for construction projects, which ordinarily stall during the rains.

Edited from various sources by Katherine Guenioui

Read the article online at: https://www.worldcement.com/asia-pacific-rim/25042014/dalmia_cement_builds_and_buys_80/