HeidelbergCement India Ltd

HeidelbergCement India Limited, formerly known as Mysore Cements Limited (MCL) is a Subsidiary of HeidelbergCement Group, Germany. Presently, the Company is operating 3 cement plants located at Damoh (Madhya Pradesh), Jhansi (Uttar Pradesh) and Ammasandra (Karnataka) with an installed cement manufacturing capacity of 6.26 MTPA. HeidelbergCement is one of the worlds largest building materials companies. With the takeover of the Italian cement producer Italcementi, HeidelbergCement became the No. 1 in aggregates production, No. 2 in cement, and No. 3 in readymixed concrete. The core activities of Company include production and distribution of cement and aggregates, two essential raw materials for producing concrete. Mysore Cements Limited (MCL), a HeidelbergCement Group Company, was incorporated in May 13, 1958 as a Public Limited Company by a Karnatakabased industrialist in technical and financial collaboration with Kaisers of USA. HeidelbergCement, with its core products being cement, ready mixed concrete, aggregates and related activities, is one of the leading producers of building materials worldwide. The first 1 lac ton per annum dry process cement plant with an investment of Rs.220 lacs at Ammasandra Dist. Tumkur, Karnataka was commissioned in 1962. Immediately thereafter, an expansion was planned which doubled MCLs capacity to 2 lac tpa in 1966 at an investment of Rs.170 lacs Kaisers subsequently took control of the company. During the year 1974, the mining lease was acquired for limestone deposits in the area. The second hand power plant was purchased from Madhya Pradesh Electricity Board to meet 50% of the requirements of Damoh unit. MCL made steady progress and increased the capacity at Ammasandra to 6 Lac tpa with an investment of other Rs.230 lacs in 1978. Damoh in Madhya Pradesh, a 5 lac tpa greenfield cement plant was commissioned its production in the year 1983, which was set up at an investment of Rs.2950 lacs. MCL also modernised its Ammasandra unit at an investment of Rs.3600 lacs, which was successfully completed in January, 1989 and also in the same year commissioned state of art 6 stage preheater Kiln at an investment of Rs.8000 lacs. The Company received a letter of intent in the year 1990 for establishing a new cement plant in Raipur district of Madhya Pradesh with a capacity of 1.4 million tonnes per annum. The Damoh unit of the company had started to export slag cement to Bangladesh since 1992. MCL had concluded power projects in the year of 1998 to become selfsufficient in power at its three plants across the country. During the year 1999, the company made a joint venture with Nesher Israel Cement Enterprises of Israel to set up worth of Rs 600crore 1.5milliontonne cement plant at Gulbarga in Karnataka. MCL had shelved its plan to sell off its plants at Jhansi, Damoh and Narsingarh in the year of 2002. During the year 200304, in caution of loss in cement business, the company had entered into production of sponge iron in idle Kiln at Ammasandra. After a year, an induction furnace was added which went in to production in March of the year 2005. The sponge division of the company was discontinued in its entirety in the year 2006. A joint venture relationship was created with Heidelberg Cements Group in July of the same year 2006. During the year 2007, the company had launched Mycem brand cement in the market. The BOD approved the amalgamation of Indorama Cement and Heidelberg Cement India with Mysore Cements in May 2008.The name of the company was changed from Mysore Cements Limited to HeidelbergCement India Limited w.e.f. April 16, 2009, consequent to the issue of fresh Certificate of Incorporation by the Registrar of Companies, Karnataka.HeidelbergCement India changed its financial year from JanuaryDecember to AprilMarch to comply with the provisions of Section 2(41) of the Companies Act, 2013. Therefore, the accounting year for FY 2015 was for a period of 15 months from 1 January 2014 to 31 March 2015. During the fifteen months period ended 31 March 2015, the companys new plants at Damoh and Jhansi were stabilized. The company took a major decision to setup an ecoefficient Waste Heat Recovery based Power Generation Plant at its clinkerisation unit at Narsingarh, District Damoh (M.P.). The proposed plant envisages production of approximately 12 MW of power for captive consumption from the waste heat generated from all three clinkerisation lines at Narsingarh. It will substitute grid power thus reducing power cost per ton of clinker.The company successfully increased its market share in Central India and penetrated new areas bringing new channel partners to its fold. Cement under a new brand name Mycem power was also launched in Southern India.The company sold its Raigad unit as a going concern to JSW Steel Limited on a slump sale basis with effect from the close of business hours on 3 January 2014. The entire sale consideration for the same aggregating to Rs 1,660 million has been received during the fifteen months period ended 31 March 2015. The aforesaid sale transaction has resulted into net gain of Rs 603.1 million. Despite all odds faced by the cement industry and intense competition during the year ended 31 March 2016, HeidelbergCement India successfully increased its market share in Central India which led to a 5.11% increase in its sales volume over the previous year (on an annualized basis). The bond with the channel partners and customers was further strengthened through the innovative concept of CADS (Channel Authorization Digital Signage) an electronic digital display at the dealers shops.During the year the credit rating in respect of the companys NonConvertible Debentures has been upgraded to Ind AA (with stable outlook) from IND AA by India Ratings and Research Pvt. Ltd., a credit rating agency.During the year ended 31 March 2017, HeidelbergCement Indias 12,000 Tonnes Flyash Silo Project was commissioned at Imlai plant which will secure flyash inventory for sustained production. The companys Waste Heat Recovery Power Generation Project (WHRPG) which was commissioned in Q4F Y 2016 at Narsingarh (MP), attained generation stability during FY 2017.While the power tariff was increased in MP and Karnataka last year tariff was further increased in MP from April 2017. Better consumption parameters, improved fuelmix and savings from WHRPG helped the company to overcome the impact of higher fuel and power costs during the year.The clinker manufacturing plants of the company viz., Narsingarh and Ammasandra Plants were enrolled by the Bureau of Energy Efficiency(BEE) under Perform, Achieve and Trade Scheme(PAT) which aims at enhancing energy efficiency of the industrial units. Both the plants were able to achieve the targets set by BEE for reducing specific energy consumption under PAT Cycle 1(target year 201415 against energy consumption in baseline year 200910).Brand visibility enabled the company to increase sales volume by 4% despite the challenging demand supply situation owing to shortage of sand in Uttar Pradesh.During FY 2018, the company has received third tranche of interestfree loan of Rs 693.9 million from the Government of Uttar Pradesh.During FY 2019, the Company generated 72,726 Mega Watt of power from the Waste Heat Recovery Power Plant at Narsingarh, which caters to about 37% of its total power requirement. It commissioned Selective NonCatalytic Reduction (SNCR) System, which enabled the Company reduce Nitrogen Oxide emissions by 40% which occurs during clinkerisation process. During the quarter ending March 31, 2020, the Company completed debottlenecking of its cement grinding capacities in lmlai (Madhya Pradesh) and Jhansi (Uttar Pradesh), which got enhanced by 0.5 Million Tonnes Per Annum (MTPA) and 0.55 MTPA respectively. During final quarter of FY 2020, Companys aggregate cement grinding capacity enhanced to 6.26 MTPA. During FY 2020, Company generated 66,524 Mega Watt of power from Waste Heat Recovery Power Plant at Narsingarh, which was about 34% of its total power requirement.During FY 2021, Company generated 60,693 Mega Watt (MW) of power from Waste Heat Recovery Power Plant at Narsingarh.During FY 2022, Company generated 73,655 Mega Watt of power from the Waste Heat Recovery Power Plant at Narsingarh. During FY23 the Company generated 59064 Mega Watt (MW) of power from Waste Heat Recovery Power Plant at Narsingarh. It commissioned 5.5 MW Solar Power Plant in Damoh, Madhya Pradesh.