More consolidation - Lafarge eyeing Madras Cements? - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  
  • Home
  • Outlook Arena
  • Jun 1, 2000 - More consolidation - Lafarge eyeing Madras Cements?

More consolidation - Lafarge eyeing Madras Cements?

Jun 1, 2000

Lafarge, according to reports carried in the Economic Times, has struck again. The company is said to have made a Rs 15 bn bid for the 3.5 million tonne capacity of Madras Cements Limited. This is latest in a rash of deals that have engulfed the sector in last one year. Madras Cements Limited is one of India's most efficient producers of cement. The company is predominantly south based and has its capacity spread across four plants.

As there has been no official announcement as yet, there is little information on this reported bid. It is therefore difficult to give a view on the fallout of such a deal on Madras Cements Limited.

In recent months a large number of multinational cement companies have made their presence felt in the domestic marketplace by entering into talks for acquisition of cement capacities. The leader in this race has been Lafarge (France), which has so far acquired cement capacities of Tata Steel and Raymond. Among the new entrants is Blue Circle (UK) which is reported to be in talks with the Birlas (excluding Grasim) for acquiring their cement capacities.

International majors are aggressively trying to set up a base in India. Companies like Lafarge, which have already set up a base for them, are looking at stepping up volumes through the acquisition route. The bid for Madras Cements though unexpected, will not surprise many.

Cement prices in India are ruling at an average of US$ 85 per tonne. Capacity utilization rates in the sector are as high as 90%. As compared to Southeast Asia, where utilization rates are between 45 60% and prices 50% higher, the India offers a great opportunity for cement companies.

Equitymaster requests your view! Post a comment on "More consolidation - Lafarge eyeing Madras Cements?". Click here!

  

More Views on News

GUJARAT SIDHEE CEM 2020-21 Annual Report Analysis (Annual Result Update)

Nov 22, 2021 | Updated on Nov 22, 2021

Here's an analysis of the annual report of GUJARAT SIDHEE CEM for 2020-21. It includes a full income statement, balance sheet and cash flow analysis of GUJARAT SIDHEE CEM. Also includes updates on the valuation of GUJARAT SIDHEE CEM.

SHIVA CEMENT 2020-21 Annual Report Analysis (Annual Result Update)

Nov 18, 2021 | Updated on Nov 18, 2021

Here's an analysis of the annual report of SHIVA CEMENT for 2020-21. It includes a full income statement, balance sheet and cash flow analysis of SHIVA CEMENT. Also includes updates on the valuation of SHIVA CEMENT.

HEIDELBERG CEMENT Announces Quarterly Results (2QFY22); Net Profit Down 4.6% (Quarterly Result Update)

Oct 20, 2021 | Updated on Oct 20, 2021

For the quarter ended September 2021, HEIDELBERG CEMENT has posted a net profit of Rs 596 m (down 4.6% YoY). Sales on the other hand came in at Rs 6 bn (up 12.2% YoY). Read on for a complete analysis of HEIDELBERG CEMENT's quarterly results.

Key Points to Know Before Applying to Nuvoco Vistas' Public Issue (Views On News)

Aug 7, 2021

Nuvoco Vistas is one of the leading ready-mix concrete manufacturers in India. The issue will open for subscription on 9th August.

ULTRATECH CEMENT Announces Quarterly Results (2QFY22); Net Profit Up 45.8% (Quarterly Result Update)

Oct 20, 2021 | Updated on Oct 20, 2021

For the quarter ended September 2021, ULTRATECH CEMENT has posted a net profit of Rs 13 bn (up 45.8% YoY). Sales on the other hand came in at Rs 120 bn (up 16.1% YoY). Read on for a complete analysis of ULTRATECH CEMENT's quarterly results.

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

India's Top 5 Monopoly Stocks to Watch Out for (Views On News)

Nov 30, 2021

These 5 companies dominate their sectors with a huge piece of the pie.

5 Indian Companies Embracing Blockchain Technology (Views On News)

Nov 23, 2021

Blockchain adoption in India was slow in the past. Now, the technology is being well received.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

COMPARE COMPANY

MARKET STATS