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With more global players like Cement Francais S.A, Italicement and Heidelberg hoping to cash in on the opportunities in the sector, small and medium-sized players are viewing these developments as an opportunity to exit this theatre of war with a big booty. On May, 2006, Cement Francais S.A, France, acquired 50% stake of its JV partner (K. K. Birla) in Zuari Cement for Rs.6 billion; and the most recent case is Mysore Cement, an S. K. Birla group company, in which Heidelberg acquired a controlling stake of 51% for $93 million. These are the true colours of globalization and cement is no exception to it. Where there are the small fish genuflecting against the foreign players fortified with a massive war chest, there are only a few good companies like Grasim, who are holding their own. With a capex of Rs.27 billion, Grasim is making valiant attempts to regain its lost tiara. Comments Rajan Kumar, cement analyst, Networth Stock, “The expansion is in response to recent aggressive moves by Lafarge and Holcim. Capacity expansion is in order to consolidate Birla Group’s position in cement industry. Along with the planned 8 MMT expansion of Grasim in north India, the 4 MMT Ultratech expansion would take AV Birla’s capacity to 45 MMT by the year 2009.”
Indeed, the thumb rule of surviving in this ferocious sector, where over 68 MMT of new capacities are on the anvil in next three years, is to either go for a kill... or be killed!
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2006, Arindam Chaudhuri's Initiative
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With more global players like Cement Francais S.A, Italicement and Heidelberg hoping to cash in on the opportunities in the sector, small and medium-sized players are viewing these developments as an opportunity to exit this theatre of war with a big booty. On May, 2006, Cement Francais S.A, France, acquired 50% stake of its JV partner (K. K. Birla) in Zuari Cement for Rs.6 billion; and the most recent case is Mysore Cement, an S. K. Birla group company, in which Heidelberg acquired a controlling stake of 51% for $93 million. These are the true colours of globalization and cement is no exception to it. Where there are the small fish genuflecting against the foreign players fortified with a massive war chest, there are only a few good companies like Grasim, who are holding their own. With a capex of Rs.27 billion, Grasim is making valiant attempts to regain its lost tiara. Comments Rajan Kumar, cement analyst, Networth Stock, “The expansion is in response to recent aggressive moves by Lafarge and Holcim. Capacity expansion is in order to consolidate Birla Group’s position in cement industry. Along with the planned 8 MMT expansion of Grasim in north India, the 4 MMT Ultratech expansion would take AV Birla’s capacity to 45 MMT by the year 2009.”
Indeed, the thumb rule of surviving in this ferocious sector, where over 68 MMT of new capacities are on the anvil in next three years, is to either go for a kill... or be killed!
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2006, Arindam Chaudhuri's Initiative
For More IIPM Article, Visit Below....
IIPM Students Life > Campus Placement
IIPM Academics : Global Outreach Program
IIPM Students Life > Campus Resources
IIPM Rankings
IIPM Alliances
IIPM Academics : Curriculum
ABOUT IIPM
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