CEMENT: THE CHURNING HAS JUST BEGUN

Article Abstract:

Consolidation has begun in India's cement industry. The Rs800 crore India Cements has taken over Raasi Cement, Visaka Cement and the plant of the Cement Corp of India at Yerraguntla. The Rs4,000 crore Grasim has acquired Dharani Cement and Shri Digvijay Cements. Lafarge of France has bought the 1.7 million tonnes per annum cement plant of Tata Iron & Steel Co for Rs550 crore. Global firms like Holderbank, Cemex, Blue Circle, Italcementi and Heidelberger are focusing on India. Among Indian companies, Larsen & Toubro (L&T) has acquired the 1.4 million tonnes per annum Narmada Cement for Rs243 crore to become the largest cement company in India. Financial institutions like ICICI are encouraging consolidation in the cement sector to reduce their non-performing loans in the industry. Associated Cement Companies (ACC) and Larsen & Toubro are scouting for more plants for acquisition. Larsen & Toubro has restructured its business and will focus on the 3 core businesses of cement, engineering and construction and switchgear. The AV Birla group is also restructuring itself and is likely to take over the sick cement plants of the BK Birla group. (tsm) (kvr)

Market information - general, Cement, Cement Manufacturing, India Cements Ltd., Rasai Cement, Cement Corp of India, Visaka Cement

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THE WAR WHOOPS ARE GETTING LOUDER

Article Abstract:

Sterling Industries (SI) plans to make an offer price of Rs150 per share for the 20 percent stake in Indian Aluminium Company (Indal). SI needs Rs231 crore to buy the 20 percent stake in Indal, which is approximately 30 percent higher than its earlier offer. Indal's Canadian parent, Alcan Aluminium (AA), has been permitted by the Government of India to hike its stake from 34.6 percent to 54.6 percent. AA has made an offer of Rs120 per share. The key factor for Indal's stake will be the price offered by SI and AA. Indal posted a 21 percent growth in its net profit at Rs71 crore in 1997-98. Its earning per share was Rs10. The intrinsic value of the scrip is Rs120. Its stock is trading at Rs105 - a price earnings multiple of 12. The financial institutions (FIs) hold 36 percent stake and the public 9 percent. The FIs have bought Indal shares at Rs20. The FIs have to sell their stake jointly or separately. (rk)

Comment:

Plans to make an offer price of Rs150 per share for the 20% stake in Indian Aluminium Company

General Industrial Machinery, Machinery Manufacturing, Aluminum Extruded Products, Aluminum Extruded Product Manufacturing, Industrial equipment, Machinery, Aluminum extrusions, Indian Aluminium Company Ltd., Sterling Industries PLC

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ARALDITE IS GLUED IN

Article Abstract:

Ciba Specialty Chemicals, the producer of Araldite versions of quick drying adhesives is in talks with Mahindra Engineering And Chemical Products (MECP) of Pune after the success of its new version, Araldite Rapid, a popular epoxy adhesive. The talks are about Ciba taking over MECP's M-Seal brand as a step towards building strong franchise in the consumer epoxy adhesive business. Rapid was launched in March 1998 to compete with Fevilite's aggressive marketing against its parent brand, Araldite. The advantage of the new version is the reduced setting period which has been reduced from overnight duration to under an hour and its superior bond strength. (um)

Comment:

Negotiates to acquire Mahindra Engineering & Chemical Prods' M-Seal brand to build strong franchise in epoxy adhesive bsns

Facilities & equipment, Adhesive Manufacturing, Epoxy Adhesives, Ciba Specialty Chemicals Inc., Mahindra Engineering and Chemical Products

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