MIRA
INFORM REPORT
|
Report Date : |
27.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
RELIANCE CEMENT COMPANY PRIVATE LIMITED (w.e.f.
08.08.2011) |
|
|
|
|
Formerly Known
As : |
RELIANCE CEMENTATION PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
H Block, 1st Floor, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of Incorporation
: |
24.08.2007 |
|
|
|
|
Com. Reg. No.: |
11-173458 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.683.230
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U26940MH2007PTC173458 |
|
|
|
|
TAN No.: [Tax Deduction & Collection
Account No.] |
MUMR23337G |
|
|
|
|
PAN No.: [Permanent Account No.] |
AADCR6967R |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business
: |
Manufacturers of all types and kinds of cements ordinary, white,
colored, Portland, Pozzolana Aluminum, Blast
furnace, Silica, and all other varieties of cements, lime and limestone,
clinkers. |
|
|
|
|
No. of Employees
: |
Information denied by management |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (46) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a wholly owned subsidiary of “Reliance Infrastructure
Limited.” It is an established company having satisfactory track. The company is gradually improving its financial profile and marked by
adequate networth base as a result of infusion of
funds through security premium account along with increasing gearing due to
large debt funded capacity during FY 2013. Management has seen a minimal sales turnover, whereas has reported a
loss from its first year of operations. The rating also take into consideration, the residual project
implementation related risk and high cyclicality associated with cement
industry as a result of prevailing slowdown in the construction sector. However, trade relations seems to be fair. Business is active. Payment
terms are reported as usually correct. In view of ownership by the strong parent along with the experience and
track record of the promoters, the subject can be considered for business
dealings at usual trade terms and conditions. |
NOTES:
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INDIAN ECONOMIC OVERVIEW
N E W S
The economy grew 4.7
%in 2013/14, marking a second straight year of sub-5 % growth – the worst slowdown
in more than a quarter of a century. The data was below an official estimate of
4.9 % annual growth and compared with 4.5 % in the last fiscal year. However,
the current account deficit narrowed sharply to $ 32.4 billion at 1.7 % of
gross domestic product, in 2013/14 from a record high of $ 98.8 billion or 4.7
%, the year before.A sharp fall in gold imports due
to restrictions on overseas purchases and muted import of capital goods helped
shrink the current account deficit.
Online retailer Flipkart has acquired fashion portal Myntra
as it prepares to battle with the rapidly expanding India arm of the global
e-commerce giant Amazon. The company raised $ 210 million from Russian
Investment firm DST Global which has also invested in companies like Facebook, Twitter and Alibaba
Group.
General Motors will
start exporting vehicles from its Talegaon plant near
Pune in the second half of 2014. GM was one of the
few global carmakers that was using its India plant only for the domestic
market.
Google has overtaken
Apple as the world’s top brand in terms of value, according to global market
research agency Millward Brown. Google’s brand value
shot up 40 % in a year to $ 158.84 billion. The top 10 of the 100 slots were
dominated by US companies.
Infosys lost another heavy weight when B G Srinivas, a board member put in his papers. He is the third
CEO-hopeful to quit after Chairman N R Narayana
Murthy’s return to the company – Ashok Vemuri and V Balakrishnan being
the other two.While Vemuri
went on to lead IGate, Balakrishnan
joined politics.
Naresh Goyal – promoted
Jet Airways posted biggest quarterly loss – Rs
2153.37 crore – in the three months ended March 31,
mainly because it has been offering discounts to passengers to fill planes.
William S Pinckney –
Chairman and CEO of Amway India was arrested by the Andhra Pradesh Police in
connection with a complaint against the direct selling firm. This is the second
time that he has been taken into custody. A year, ago the Kerala
Police had arrested Pinckney and two company directors on charges of financial
irregularities.
China has told its
state-owned enterprises to sever links with American consulting firms after the
United States charged five Chinese military officers wih
hacking US companies. China’s action which targets consultancies like McKinsey
& Co. and the Boston Consulting Group, sterns from fears that the first are
providing trade secrets to the US governments.
India has emerged as
a country with some of the highest unregistered businesses in the world.
Indonesia has the maximum number of shadow businesses, says a study of 68
countries by Imperial College Business School in London.
Pfizer has abandoned
its attempt to buy AstraZeneca for nearly $ 118
billion after the latter refused an offer of 55 pounds a share.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long Term Facilities = BBB |
|
Rating Explanation |
Moderate degree of safety and moderate
credit risk |
|
Date |
September 2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DENIED
Management Non-Cooperative (Tel No.: 91-22-30373333)
LOCATIONS
|
Registered Office : |
H Block, 1st Floor, Dhirubhai Ambani Knowledge City, Navi
Mumbai – 400710, Maharashtra, India |
|
Tel. No.: |
91-22-30373333 / 30386290 / 30098181 |
|
Fax No.: |
91-22-30376622 / 30386178 /
30098128 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
E-Block, 3W 44, First Floor, Dhirubhai Ambani Knowledge City, Koparkhairane,
Thane Belapur Road, Navi
Mumbai – 400710, Maharashtra, India |
|
Tel. No.: |
91-22-30383333 |
|
|
|
|
Factory : |
Located At: · Maihar, Madhya Pradesh, India · Mukutban, Maharashtra, India · Butibori in Maharashtra · Raebarelly in Uttar Pradesh, India · Gondavali in Madhya Pradesh, India |
DIRECTORS
As on 09.09.2013
|
Name : |
Mr. Atul
Jain
|
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Darshan
Lal
|
|
Designation : |
Director |
MAJOR SHAREHOLDERS
As on 09.09.2013
|
Names of Shareholders |
|
No. of Shares |
|
Reliance Infrastructure Limited, |
|
68322900 |
|
Ramesh Ganpati Shenoy jointly with
Reliance Infrastructure Limited, |
|
100 |
|
Total |
|
68323000 |
Equity Share Break up (Percentage of Total Equity)
As on 09.09.2013
|
Category |
Percentage |
|
Bodies corporate |
100.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers of all types and kinds of cements ordinary, white,
colored, Portland, Pozzolana Aluminum, Blast
furnace, Silica, and all other varieties of cements, lime and limestone,
clinkers. |
GENERAL INFORMATION
|
No. of Employees : |
Information denied by management |
||||||||||||||||||
|
|
|
||||||||||||||||||
|
Bankers : |
Not Divulged |
||||||||||||||||||
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||||||||||||||||||
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Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Financial Institution : |
IDBI Trusteeship
Services Limited, |
|
|
|
|
Auditors : |
|
|
Name : |
Bhandari Dastur Gupta
and Associates Chartered Accountants |
|
Address : |
210, 2nd
Floor Ashoka Shopping Centre, G.T. Hospital
Complex, L.T. Road, Mumbai, Maharashtra, India |
|
PAN No.: |
AADFB3359C |
|
|
|
|
Holding Company
: |
·
Reliance Infrastructure Limited, India (REL) (w.e.f. 05.09.2009) CIN No.: L99999MH1929PLC001530 |
|
|
|
|
Subsidiaries : |
·
Reliance Cement and Infra Private Limited, India
(RCIPL) CIN No.: U45201MH2008PTC217836 ·
Reliance Cement Corporation Private Limited,
India (RCCPL) CIN No.: U26940MH2008PTC217838 ·
Reliance Cement Works Private Limited, India
(RCWPL) CIN No.: U26943MH2008PTC217839 ·
Reliance Concrete Private Limited CIN No: U26940MH2011PTC214982 |
|
|
|
|
Enterprise over
which person has significant influence : |
·
Reliance Communications Infrastructure Limited CIN No.: U64203MH1997PLC166329 ·
Reliance General Insurance Company Limited CIN No: U66603MH2000PLC128300 ·
Reliance Infrastructure and Consultants Limited CIN No.: U64200MH1995PLC139170 ·
Reliance Infocomm
Infrastructure Private Limited ·
Reliance General Insurance Company Limited |
CAPITAL STRUCTURE
As on 09.09.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
100000000 |
Equity Shares |
Rs.10/- each |
Rs.1000.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
68323000 |
Equity Shares |
Rs.10/- each |
Rs.683.230
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
683.230 |
683.230 |
386.240 |
|
(b) Reserves & Surplus |
4,158.517 |
4,159.126 |
1,486.216 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
4,841.747 |
4,842.356 |
1,872.456 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
13,829.936 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term liabilities |
0.000 |
71.096 |
0.000 |
|
(d) long-term provisions |
0.051 |
4.115 |
0.000 |
|
Total Non-current Liabilities (3) |
13,829.987 |
75.211 |
0.000 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
1,700.507 |
0.000 |
0.000 |
|
(b) Trade payables |
0.000 |
0.000 |
0.000 |
|
(c) Other current
liabilities |
703.513 |
276.485 |
66.934 |
|
(d) Short-term provisions |
25.572 |
13.385 |
7.597 |
|
Total Current Liabilities (4) |
2,429.592 |
289.870 |
74.531 |
|
|
|
|
|
|
TOTAL |
21,101.326 |
5,207.437 |
1,946.987 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i)
Tangible assets |
2,131.497 |
1,511.157 |
1,043.435 |
|
(ii) Intangible Assets |
8.457 |
2.581 |
0.349 |
|
(iii) Capital
work-in-progress |
17,177.645 |
2,142.117 |
743.500 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
1.100 |
1.300 |
0.400 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
177.384 |
1,438.160 |
100.646 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
19,496.083 |
5,095.315 |
1,888.330 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
934.267 |
0.000 |
0.000 |
|
(b) Inventories |
66.813 |
0.000 |
0.000 |
|
(c) Trade receivables |
5.920 |
0.000 |
0.000 |
|
(d) Cash and cash
equivalents |
47.537 |
108.160 |
54.488 |
|
(e) Short-term loans and
advances |
539.143 |
3.962 |
4.169 |
|
(f) Other current assets |
11.563 |
0.000 |
0.000 |
|
Total Current Assets |
1,605.243 |
112.122 |
58.657 |
|
|
|
|
|
|
TOTAL |
21,101.326 |
5,207.437 |
1,946.987 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
|
|
|
|
|
|
Other Income |
|
|
|
|
|
|
TOTAL |
15.762 |
0.000 |
0.015 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
(16.370) |
0.000 |
0.025 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
BEFORE TAX |
(0.608) |
0.000 |
(0.010) |
|
|
|
|
|
|
|
|
|
Less |
TAX |
0.000 |
0.000 |
0.005 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
AFTER TAX |
(0.608) |
0.000 |
(0.015) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(0.044) |
(0.044) |
(0.030) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(0.652) |
(0.044) |
(0.045) |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(0.01) |
NA |
NA |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(3.86) |
0.00 |
(100.00) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(0.02) |
0.00 |
0.00 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.00 |
0.00 |
0.00 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
3.21 |
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.66 |
0.39 |
0.79 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
Rs. In
Millions |
Rs. In
Millions |
Rs. In
Millions |
|
Share Capital |
386.240 |
683.230 |
683.230 |
|
Reserves & Surplus |
1486.216 |
4159.126 |
4158.517 |
|
Net
worth |
1872.456 |
4842.356 |
4841.747 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
0.000 |
13829.936 |
|
Short term borrowings |
0.000 |
0.000 |
1700.507 |
|
Total
borrowings |
0.000 |
0.000 |
15530.443 |
|
Debt/Equity
ratio |
0.000 |
0.000 |
3.208 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
Rs. In
Millions |
Rs. In
Millions |
Rs. In
Millions |
|
Total Income |
0.015 |
0.000 |
15.762 |
|
|
|
(100.000) |
|
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
Rs. In
Millions |
Rs. In
Millions |
Rs. In
Millions |
|
Total Income |
0.015 |
0.000 |
15.762 |
|
Profit |
(0.015) |
0.000 |
(0.608) |
|
|
(100.00%) |
0.00 |
(3.86%) |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS NOT AVAILABLE
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----------- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if
applicable) |
No |
|
21] |
Market information |
---------- |
|
22] |
Litigations that the firm
/ promoter involved in |
---------- |
|
23] |
Banking Details |
No |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
---------- |
|
26] |
Buyer visit details |
---------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director,
if available |
No |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
UNSECURED LOANS:
|
Particulars |
31.03.2013 Rs.
In Millions |
31.03.2012 Rs.
In Millions |
|
Long Term Borrowings |
|
|
|
Other external commercial borrowings |
1352.634 |
0.000 |
|
Other loans and advances |
620.000 |
0.000 |
|
Total |
1972.634 |
0.000 |
BACKGROUND OF THE
COMPANY
The Company is a private limited Company incorporated on the August 24, 2007 under the Companies Act 1956 with the object of carrying on business of manufacturers of all types and kinds of cements ordinary, white, colored, Portland, Pozzolana Aluminum, Blast furnace, Silica, and all other varieties of cements, lime and limestone, clinkers and/or by-products thereof.
The Company is a subsidiary of Reliance Infrastructure Limited, a Company incorporated in India. To achieve this objective Company is setting up Integrated Cement unit at Maihar in Madhya Pradesh, Mukutban in Maharashtra, and Grinding Unit at Butibori in Maharashtra, Kundangunj in Uttar Pradesh and Blending unit at Gondavali in Madhya Pradesh. The Company has not yet started the Commercial operations.
BUSINESS OPERATIONS
During the year, the Company is setting up, 5 million tons
per annum (MTPA) capacity cement plant at Maihar in
Madhya Pradesh and another 5 MTPA cement plant at Mukatban
in Maharashtra. Over the next five years, the Company
aims to build up cement capacity of 20 MTPA.
INDEX OF CHARGE:
|
Sr. No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10485395 |
25/02/2014 |
1,301,870,400.00 |
IDBI Trusteeship Services Limited |
Asian Bldg., Ground Floor, 17, R. Kamani Marg, Ballard Estate, Mumbai, Maharashtra - 400001, India |
C00500413 |
|
2 |
10485396 |
25/02/2014 |
1,750,000,000.00 |
IDBI Trusteeship Services Limited |
Asian Bldg., Ground Floor, 17, R. Kamani Marg, Ballard Estate, Mumbai, Maharashtra - 400001, India |
C00501643 |
|
3 |
10485397 |
25/02/2014 |
929,629,600.00 |
IDBI Trusteeship Services Limited |
Asian Bldg., Ground Floor, 17, R. Kamani Marg, Ballard Estate, Mumbai, Maharashtra - 400001, India |
C00509554 |
|
4 |
10475010 |
26/12/2013 |
3,000,000,000.00 |
IDBI Trusteeship Services Limited |
Asian Bldg., Ground Floor, 17, R. Kamani Marg, Ballard Estate, Mumbai, Maharashtra - 400001, India |
B94612553 |
|
5 |
10363024 |
25/02/2014 * |
16,118,500,000.00 |
IDBI Trusteeship Services Limited |
Asian Bldg., Ground Floor, 17, R. Kamani Marg, Ballard Estate, Mumbai, Maharashtra - 400001, India |
C00511139 |
*Date of modification Charges
FIXED ASSETS:
·
Land
·
Building
·
Plant and Machinery
·
Computer
·
Vehicles
·
Furniture and Fixture
NEWS:
RELIANCE CEMENT COMPANY TARGETS RS.20000.000 MILLIONS TURNOVER IN FY15
KOLKATA: Reliance Cement Company, a part of the Anil Ambani-controlled Reliance Infrastructure, is looking at a turnover of around Rs.20000.000 Millions in the current fiscal on the back of capacity expansion and entry into West Bengal. The company has made a foray into West Bengal, a market that has 14-million-tonnes per annum (mtpa) demand and potential to grow by 8 per cent in the coming years.
"We are targeting cement sales of 3.5 million tonnes
and a revenue of rs18000.000 millions - Rs.20000.000
Millions this fiscal," Reliance Cement Director & CMO Atul Desai told PTI here. "We hope to cover entire
West Bengal market by this year which is expanding by eight per cent per annum.
We expect to sell 0.6 to 0.7 million tonnes cement in
the state this year," Desai, who was here to launch Reliance Cement in the
state, said.
Reliance Cement Head (East) Deepak Ranjan said the
company is sourcing cement produced with a local partner in a Durgapur plant with a current capacity of 0.4 million tonnes.
"West Bengal is one of the largest cement consuming states in eastern
India with total consumption of around 14 million tonnes
per annum," he said hoping to garner a healthy market share in the region.
Reliance Cement is also planning to set up a 2.1 million tonnes
cement grinding unit in Raghunathpur in Purulia. Desai said the company has 100 acres of land and
was in the process of getting regulatory clearances for the project. Reliance
Cement is marketing its products in states like Maharashtra,
Madhya Pradesh, Uttar Pradesh and Jharkhand.
The total capacity is 5.8 million tonnes including
clinker capacity. Desai said the company has lined up cement plants in various
locations to ramp up capacity and is also in various stages of getting
limestone mining leases. "The group aims to expand cement capacity to 50
million tonnes over the next couple of years,"
he said. Reliance Cement said it would offer innovative customer initiative and
on-site expert service in West Bengal.
RELIANCE CEMENT COMPANY FORAYS INTO WEST BENGAL, TO GROW BY 8 PER CENT
IN THE COMING YEARS
NEW DELHI: Reliance Cement Company (RCC) has made a foray into West Bengal, a market that has 14-million-tonnes per annum (mtpa) demand and potential to grow by 8 per cent in the coming years.
"West Bengal is one of the largest cement consuming states in Eastern India with total consumption of around 14 million tons per annum," Reliance Cement Company CEO Arvind Pathak said in a statement. "With ever-increasing industrial activities, real estate, construction and infrastructure, in addition to the onset of various industrial zones being developed in West Bengal, the market is expected to grow at the rate of 8 per cent over the next few years," he added.
Anil Ambani-led Reliance Group firm RCC has 5.8 mtpa cement-making capacity now. It has a 2 mtpa plant in Uttar Pradesh, 3 mtpa unit in Madhya Pradesh and 0.5 mtpa in Maharashtra. It sells the building material in key cities of Maharashtra, Madhya Pradesh, Uttar Pradesh and Jharkhand. The company now plans to expand its presence in northern markets of India and Nepal.
RELIANCE CEMENT FORAYS INTO JHARKHAND
NEW DELHI: Reliance Cement Company, a division of Reliance Infrastructure, today said it would start sales in Jharkhand, the fourth state in the country where its products would be available.
"Reliance Cement Company Private Limited announced its entry into the Jharkhand market, thereby expanding its footprint in the domestic market," the company said in a statement.
"Jharkhand is one of the most important cement markets in eastern India. Demand in the state is expected to grow exponentially due to upcoming power and steel plants and other mineral-based industries," Arvind Pathak, Chief Executive Officer of Reliance Cement, said in the statement.
Reliance Cement already sells its products in cities of Maharashtra, Madhya Pradesh and Uttar Pradesh.
The company will also provide training to masons and contractors across Jharkhand, according to the statement.
Reliance Cement currently has a production capacity of 5.5 million tonnes per annum of the building material, with plants operational in Uttar Pradesh, Madhya Pradesh and Maharashtra.
It is building a 5 million tonne per annum cement plant in Maharashtra.
RELIANCE CEMENT TO COMMISSION MADHYA PRADESH PLANT IN OCTOBER 2013
India: Reliance Cement has said that it will commission its US$485m cement plant in Madhya Pradesh in October 2013. The company is due to complete the project in 22 months, five months ahead of its original schedule. The 5Mt/yr cement plant includes a 10MW waste heat recovery system. The plant is intended to target markets in central, eastern and northern India.
The Madhya Pradesh plant follows the company's 0.5Mt/yr cement plant in Butibori, Maharashtra that was launched in 2012.
US$100M RELIANCE CEMENT PLANT APPROVED FOR BENGAL
India: The state government of Bengal has approved a US$100m cement plant project by Reliance Cement that has been waiting for clearance since 2011, according to the Times of India. 100 acres of land near Durmut village in Raghunathpur, Western Bengal have been allocated to the project.
The project, Reliance's third cement plant, will have a production capacity of 3.5Mt/yr, comprising 1.75Mt/yr of Portland Pozzolana Cement and 1.75Mt/yr of Portland Slag Cement. Currently Reliance Cement operates two cement plants in Madhya Pradesh and Maharashtra.
RELIANCE CEMENT ASPIRES TO SHARE SPACE WITH HOLCIM, ULTRATECH
Reliance Group-owned Reliance Cement sprang a mild surprise when it announced it was using a contract manufacturer with capacity of about 0.5 million tonnes (mt) in Durgapur to herald its entry into the West Bengal cement market. The surprise is a conglomerate spanning telecommunications, power, infrastructure, etc, and aspiring to become a 50-mt cement producer using a mini plant, with an option to buy it. A company official, however, says at an appropriate time, the capacity of the Durgapur unit, fed with limestone from Reliance Cement quarries in Madhya Pradesh, will be raised to one mt.
Following the global merger of Holcim of Switzerland and
French Lafarge,
we are likely to see Holcim
subsidiaries ACC
and Ambuja, and Lafarge
India combining about 80 mt of capacity under a
single roof. Kumar Mangalam Birla
has about 57 mt of capacity available with UltraTech
and an additional 12.8 mt with Century, which he is
inheriting from his grandfather, Basant Kumar Birla. The meteoric capacity rise of two of the country's
cement leaders is largely through takeovers. Now, UltraTech is in the last lap of acquiring the
Gujarat unit of Jaypee Cement at an enterprise value of
Rs.38000.000 Millions.
By contrast, Reliance Cement's arrangement looks
less than modest. The company had to make a start to turn a contender for a
share of the 14-mt cement market in West Bengal, now largely a privy of ACC,
Lafarge and Ambuja. Though overwhelming portions of
the 352-mt Indian cement sector are with 'large' units, the cement space is
still dotted with 'mini' plants that are finding it increasingly difficult to
sell their products, perceived to be short on quality and packaging, due to the
competition with branded cement.
STRIVING FOR A SHARE OF THE PIE
Following the merger of Holcim and Lafarge, we are likely to see ACC, Ambuja and LaFarge India combine about 80 mt of capacity under a single roof Reliance Cement is seeking to turn a contender for a share of the 14-mt cement market in West Bengal, now largely a privy of ACC, Lafarge and Ambuja
Reliance Cement is to build a 2.1-mt grinding unit at Purulia in West Bengal, for which it has acquired 100 acres
In the 3 years to 2013, India's cement consumption grew at an average annual rate of four per cent, in step with the economic slowdown
ACC was already a trusted brand. But the credit for giving a new twist to
branding should go to Narotam Sekhsaria,
former promoter of Ambuja Cements. Brand-building is
an expensive and time-consuming proposition, beyond the contemplation of 'mini'
plants. No wonder capacity use of the 'mini' sector is much below 50 per cent,
and continuing to fall. The survival of these companies
will depend on making cement for the biggies, on a contract basis. Such an
arrangement is likely to help reduce distribution costs, which have emerged as
a major cost element for the sector. The fact that Reliance Cement is stepping
into the Durgapur unit marks the unfolding of a
national strategy of similar drills across the country. The company is to build
a 2.1-mt grinding unit at Purulia in West Bengal, for
which it has acquired 100 acres. But the Purulia
plant is commissioned, say, in two years, Reliance wants its brand to be
established in the state.
Justifying its entry into West Bengal, a company official says he "expects
the cement market here to grow at an annual rate of eight per cent through the
next few years." Generally, housing accounts for 67 per cent of cement
use, followed by 13 per cent for infrastructure, 11 per cent for commercial
construction and nine per cent for industrial construction. Unfortunately,
except for some briskness in residential construction, the three-year-old Mamata Banerjee government is yet
to find traction in industry and infrastructure development. More, in the three
years to 2013, India's cement consumption grew at an average annual rate of
four per cent, in step with the economic slowdown. This stands in contrast to
the golden period of 2008-09, when cement use grew at a compounded annual rate
of eight per cent. Industry officials are hoping the Modi
government will break policy logjam and flag many stalled infrastructure
projects. This will translate into higher capacity use, demand rise and better
prices for cement. Currently, the sector is using less than 75 per cent of its
capacity. Hopefully, rural demand for cement will remain intact even if the
monsoon is below-average.
Whatever the current problems, long-term prospects for the cement sector are
considered encouraging. Indian per capita cement consumption is only 200 kg,
compared with the global average of 500 kg. Huge infrastructure and housing
deficit remains to be addressed, for which large new cement capacity has to be
created. A Planning Commission working group on cement has fixed a production
target of 407 mt for 2016-17, the terminal year of
the 12th Plan. The way the country muddled through the second term of the
United Progressive Alliance (UPA) government, however, made all such
projections go haywire. At the same time, encouraged by the good work during
the first term of the UPA government, the cement sector made investments to
build 90 mt of new capacity.
Economic progress decides the demand for cement. But this varies from state to
state, depending on the levels of infrastructure development and new
industries. Reliance Cement has set foot in West Bengal as part of its grand
strategy to become a 50 mt producer, rubbing
shoulders with the likes of Holcim and UltraTech. Raising capacity from about six mt to 50 mt is a challenging
proposition. Acquiring limestone deposits and being allocated coal blocks are
highly time-consuming. Therefore, should Reliance not go for some big-ticket
acquisitions to reach the targeted capacity? Burdened with high debt, a number
of cement mills in the capacity range of one mt to
five mt remain takeover targets
RELIANCE CEMENT TAKES CONTROL OF WEST BENGAL PLANT
The facility, located at Durgapur, can produce up to half-a-million tonnes of cement a year
Kolkata: Reliance Cement Company Private Limited has
taken indirect control of a small limestone grinding unit in West Bengal for an
undisclosed price. The facility, located at Durgapur,
180km from Kolkata, can produce up to half-a-million tonnes (mt) of cement a year.
Reliance Cement, which is part of Anil Ambani’s
Reliance group, proposes to raise the annual production capacity of the
yet-to-be acquired unit—Ma Chandi Durga
Cement Private Limited —to 1 mt. For now, it is to be
used as a contract manufacturing facility, run by its founders—the Kolkata-based Kedia family. The Kedias couldn’t immediately be contacted for comment. The
Reliance group has an irrevocable right to gain control of Ma Chandi Durga Cement whenever it
wishes to exercise it, according to Atul Desai, a
director and chief marketing officer at Reliance Cement. He, however, refused
to specify when his company could take direct control of the limestone grinding
unit. Reliance Cement will supply limestone to the Durgapur
factory from its mines in Madhya Pradesh. The deal with the Kedias,
concluded in February and announced at a press conference in Kolkata on Wednesday, is the first acquisition of sorts by
Reliance Cement.
“It’s a one-year old plant built with inputs from Holtec,
so it meets our quality standards,” Desai said, referring to one of the leading
consultants to the cement industry—Holtec Consulting
Private Limited Reliance Cement will use the Durgapur
factory to set foot in West Bengal, where, subject to clearances, it proposes
to build a 2.1 mt plant in Purulia
district. It has already got possession of a 100-acre plot for the proposed
unit. The enterprise value of the Durgapur unit is
estimated at Rs.60-70 crore, according to an industry
expert. To set up a half-a-million tonne unit will
cost around Rs.100 crore, this person said, asking
not to be named. There are bottlenecks and the Durgapur
unit may not be running at its peak capacity as of now, he added. There are
many small units across the country willing to get into contract manufacturing
arrangements because their owners do not have the resources to create their own
brands, but very few meet Reliance Cement’s standards, Desai said. As a
strategy, the company wants to cut distribution cost, so wants control of small
grinding units across India.
MEDIA RELEASE
RELIANCE CEMENT ANNOUNCES FORAY INTO UTTAR PRADESH
SETS UP STRONG CHANNEL NETWORK TO SERVICE UTTAR PRADESH MARKET
RELIANCE CEMENT PLANS TO LAUNCH ON-SITE EXPERT
SERVICE TO ASSIST CONSUMERS IN HOME-BUILDING
RELIANCE CEMENT’S 5 MTPA PLANT IN MADHYA PRADESH COMMISSIONED
5 MTPA PLANT IN MAHARASHTRA UNDER EXECUTION
Lucknow, March 8, 2014: Reliance Cement Company Private Limited (RCC) today announced its entry in to the Uttar Pradesh market, thereby expanding its footprint in the domestic market in line with its vision to be a part of the Indian infrastructure development story.
Commenting on the developments, Arvind Pathak, CEO Reliance Cement, said, “Uttar Pradesh is one of the largest cement consuming states in the country with total consumption of around 26 million tons per annum. With the ever increasing industrial activities, real-estate, construction and infrastructure, in addition to the onset of various Special Economic Zones (SEZs) being developed in Uttar Pradesh the market is expected to grow at the rate of 6% over the next few years. Reliance Cement is well positioned and equipped to fulfil the gap in demand and supply.”
Reliance Cement already sells in the key cities of Maharashtra and Madhya Pradesh where it has established itself to become the most favoured brand.
Reliance Cement delivers NEXTGEN experience to its customers in terms of customer service. Company is also planning to launch its innovative customer initiative “On-site Expert Service” in Uttar Pradesh soon. The initiative will provide an array of services, ranging from expert engineer’s advice to on-site concrete testing services, to assist people in building their home.
Reliance Cement is superior in quality and has new age technology and unique features which allow consumers to build long lasting structures in the quickest possible construction time. The state-of-the-art ultramodern packaging also ensures zero loss to end consumers. The product is also recommended as an alternative to Ordinary Portland Cement (OPC) 43 and (OPC) 53 grades.
Reliance Cement is manufactured in hi-tech plants equipped with robotic quality control labs that ensure consistent quality not just across different bags of cement but right down to consistency in the quality of each and every grain of Reliance cement.
Some of the unique features of Reliance Cement are:
UPSD TECHNOLOGY: STRONGER BUILDINGS: Reliance Cement introduces Uniform Particle Size Distribution (UPSD) technology that produces cement with a high fineness and rapid setting property.
FASTER CONSTRUCTION:
BUILDS HOMES FASTER: During construction, cement setting-time is usually
the main cause of delay. Reliance Cement sets faster than other cements and
gives more strength at the same time.
ROBOTIC QUALITY CONTROL: Reliance Cement is manufactured with state of the art hitech plants equipped with robotic quality control labs which ensure consistent quality not just across different bags/batches of cement but right down to consistency in the quality of each and every grain of Reliance cement.
PERFECT PACKAGING: Factory sealed Laminated poly propylene bags (LPP)
1. Tamper Proof - Assured 50 Kg quantity and No possibility of adulteration
2. Weather and moisture resistant - More shelf life & Fresh Cement
3. Dust free and clean Environment - Clean storage & Less dusting from bags
4. Empty used bags may be re-used as curing sheets
UNMATCHED BONDING STRENGTH: Reliance Cement is made using the revolutionary UPSD technology that ensures a uniform distribution of particle sizes of cement. This feature of Reliance Cement gives it unmatched bonding strength with the other construction materials i.e sand, aggregates and steel.
ENVIORNMENTAL FRIENDLY TECHNOLOGY: 90% transportation of raw material and product by rail and conveyor belt, thereby minimum vehicular pollution and traffic congestion on road network. Carbon Intensity of 540 kg CO2/ ton of cementitious product. Optimum Consumption of Electrical Energy. Optimum Consumption of Thermal Energy (<700 kcal/kg of clinker)
QR CODING ON EACH BAG: First time in Indian Cement Industry, every bag of reliance cement will have the QR code printed on it. Customer, using his smart phone, can scan this QR code for more information on the product features and more importantly Quality Assurance by Reliance Cement’s CEO.
Reliance Cement is country’s leading integrated cement producer with a total capacity of 5.5 million tonnes per annum. Its 2 MTPA plant in Uttar Pradesh, 3 MTPA plant in Madhya Pradesh and 0.5 MTPA plant in Butibori Maharashtra is now operational. All the manufacturing facilities of the company are state-of-the-art in terms of technology and scale, and also leverage best practices in logistics, distribution and last mile selling.
After Uttar Pradesh, Company now has plans to expand its presence in the central, eastern and other northern markets of India.
Reliance Infrastructure Limited
Reliance Infrastructure Limited (RInfra) is the largest infrastructure company developing projects, through various Special Purpose Vehicles (SPVs), in several high growth areas in the Infrastructure sector i.e. Roads, Metro Rail, Cement and Airports.
The Company is also the leading utility company having presence across the value chain of power businesses i.e. Generation, Transmission, Distribution and Trading of power.
The SPVs are inter alia developing a metro rail project in Mumbai; eleven road projects with total length of 1,000 kms; operating and developing two cement plants of capacity of five million tonnes each per year in Maharashtra and Madhya Pradesh.
RInfra along with its wholly owned subsidiary generates over 940 MW of power through its five power stations; distributes power to 62.0 lakh consumers in Mumbai and Delhi and is developing five transmission projects including the first Independent Private Transmission projects.
RInfra also provides Engineering, Procurement & Construction (EPC) services for developing power and road projects.
Reliance Cement
Reliance Cement Company Private Limited is operating and developing two cement plants of capacity of five million tonnes each per year at Maihar (District- Satna) in Madhya Pradesh and Mukatban (District-Yavatmal) Maharashtra
The Company is currently producing 5.5 MTPA cement from Maihar in Madhya Pradesh, Kundangunj in Uttar Pradesh and Butibori in Maharashtra. The product is available in select cities of Maharshtra, Madhya Pradesh and Uttar Pradesh.
The 5 MTPA Maihar Project in Madhya Pradesh was commissioned five months ahead of schedule, setting up a new benchmark in terms of capex efficiency of nearly 25% lower than comparable recent transaction values.
In line with its vision to set up cement plants across India, the Company has applied for various mining leases/prospecting licenses in the states of Madhya Pradesh, Karnataka, Uttarakhand, Uttar Pradesh, Maharashtra, Chattisgarh and Rajasthan.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a
proceedings for violating money-laundering, anti-corruption or bribery or
international economic or anti-terrorism sanction laws or whose assets were
seized, blocked, frozen or ordered forfeited for violation of money laundering
or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.16 |
|
|
1 |
Rs.102.23 |
|
Euro |
1 |
Rs.80.04 |
INFORMATION DETAILS
|
Information
Gathered by : |
HNA |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
VNT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
46 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NB |
NEW BUSINESS |
||
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.