Cement Update

AP sanctions construction of three cement plants

November 2014
The Andhra Pradesh State Investment Promotion Board (SIPB) has sanctioned projects worth Rs 9,200 crore and this includes construction of three cement plants. The total capacity of these three cement plants is expected to be about 12 mn tonne per annum. The state government has also approved two greenfield cement plants in Guntur and Kurnool districts, which are owned by UltraTech cement of the Aditya Birla Group and Ramco Group, respectively.

Cement aquisition plans in the south on hold Several domestic and global acquirers have shelved their cement acquisition plans in the south as the target companies are now claiming higher valuations. This situation has occured mainly in Andhra Pradesh and Telangana. The region´s cement manufactures are optimistic about a turnaround in demand as Andhra Pradesh starts building a new capital for the state and the new state of Telangana is investing in infrastructure projects. They are also bullish about a demand push from an expected improvement in the overall economy. The suitors and their bankers, however, say it will still take at least two to three years for the sector to revive.