of Semi Finished Integrated Cement Plant at Southern India
(2MTPA Clinker, 1MTPA Cement plant with 15MW captive Thermal Power Plant)
Overall capacity additions in the industry is expected to slow down by 50% i.e. 13MTPA/annum during FY18-22 vs 23MTPA/annum during FY12-17, expected growth at CAGR of 5.40%.
Domestic consumption expected to grow at 7.5%, and reach upto ~65% of the installed capacity over next 5 years
Major demand drivers for cement are Housing segment (67%) and Infrastructure (13%) and Government has shown thrust of development in both these segments
Positive industry outlook with expected growth at CAGR of 8-8.5% in next five year with better margins
(West Bengal, Chhattisgarh,
INSTALLED CAPACITY AND KEY MARKETS IN EACH OF THE GEOGRAPHIC REGIONS
Demand & Supply……...............
About Sri Lalitha Cements Ltd.
& its Features..............................
Technology setup & Site Specifics…….………...................
Present Status & Additional Capex requirement……….........
Infrastructure & Location Advantage...................................
Site & Mine Images.....................
(Uttar Pradesh, Madhya Pradesh)
(Rajasthan, Punjab, Haryana)
Table of Contents
Andhra Pradesh, Karnataka)
Auction of 13 blocks of Limestone since amendment to MMDRA, 2015
Installed capacity (mnt)
Production Growth (%)
Demand Growth (%)
Southern India-Demand & Supply
Policies favouring Investment in Cement Sector
The Union Budget has proposed to assign infrastructure status to affordable housing projects and facilitate higher investments and better credit facilities, in line with the government’s aim to provide housing for all by 2022 which will boost cement demand.
The increased allocation to rural low-cost housing under Pradhan Mantri Awaas Yojna-Gramin Scheme to Rs. 23,000 crore(US $ 3.45 billion) from Rs. 16,000 croe(USD 2.4 billion) in FY 17. Allocation of Rs. 230 crore as budget of 12th Five year plan toward connectivity of rural areas to highway.
Both the gramin schemes are likely to drive 2 per cent increase in cement demand.
Note: Estimated increasing capacity utilization supplemented with increase in demand is expected to turn into better margins
Pradhan Mantri Awas Yojna and Pradhan Mantri Sadak Yojna - Gramin Scheme
The National Housing Bank will refinance individual housing loans of about Rs 20,000 crore (US$ 3 billion) in 2017-18. The Finance Minister proposed to complete 1 crore houses by 2019. All these developments are expected to boost cement demand.
Post amendment to Mines and Minerals (Development and Regulation) Amendment Act, 2015, Central Government has decided to change the allotment of mines through Auction process from FIFO. Since April 2016, Various State Governments have allotted 13 mines aggregating reserve of 1,815 mnt and the biggest among the lot was at Kutchh having reserve of 325mnt won by Adani Cements. Change in policy of allotment of mines has been supplemented well with pace of auction announcement by government
SLCIL had initially envisaged to set-up an integrated unit of 1 MTPA Clinker, 1 MTPA Cement and a 15 MWCPP (132Kv Power line) at Nalgonda Cement Cluster near Raghunathapalem village.In due course, SLCIL decided to augment its clinker capacity by 1 MTPA, in addition to the old project configuration. Hence with the revised configuration, SLCIL would be in a position to manufacture 2 MTPA of clinker,of which 1 MTPA clinker would be grounded to cement production and 1 MTPA Clinker to be sold in open market. The project is at ~60% completion and suffered due to mismatch in financing arrangement during change in scope.
About Sri Lalitha Cement Industries Ltd.
FCB Horomill and Gearless Mill drive technology used in raw mill grinding and cement grinding respectively with following advantages:
High cement quality
About 30% lower production costs compared to competition
About 50% saving in input energy consumption
Easy Operation & Maintenance
Long term reliability
AEROBELT technology from Australia adopted in material conveyors leading to substantial savings in input energy consumption.
Orbit cooler from Walchandnagar Industries in clinker cooling circuit.
Above state-of-the-art technology have been chosen for the cement plant which shall offer 30% cost savings
Plant is self reliant in Power
Arcil (Asset Reconstruction Company (India) Limited, is sponsored by India’s respectable Banks like ICICI Bank, State Bank of India, IDBI Bank and Punjab National Bank along with multiple Banks and FIs. Arcil has been established to acquire financial assets from banks and FIs with the objective of revival, restructuring focused management of assets and maximization of recovery. Arcil is registered with the Reserve Bank of India under Section 3 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) as a Securitization Company and Reconstruction Company and is a financial institution within the meaning of section 2(h)(ia) of the Recovery of Debts due to Banks and Financial Institutions Act, 1993.
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Rs. in Crore
Particulars of Capex
Heads of expenses for modification
Land & Land Development
Expenses toward factoryland, No further expenses for fencing and mining lease/royalty cost
Building & Civil Works- Plant structures
Modification of Lime Stone Stacker andReclaimer, Raw Mill Building I & II, RM Blending Silo I & II,KlinPlatform Building/Orbit Cooler Building, Coal mill, Clinker Silo I & II,Cement, coal, iron ore & literate silo, Cement Mill building, Packing Plant Including Truck Loaders & Cable Trenches
Building & Civil Works- Non Plant structures
Additional expenses for Administrative Building, Guest House, Securitybuilding, Workshops and stores, Canteen, underground water tank, roads & drainage, weight bridge, E-type quarters
Plant & Machinery- Indigenous
Fabrication , Machining ofAxuillaryequipment, 500TPH Limestone Crusher system, 6000MTPD Preheater/Precalcinator, Spring Support System forHoromills3800, 6000 TPD Rotary Kiln, 6000tpd Rotary Kiln CementPackingPlant(Packing,MaterialConveyors), Grate Cooler,Bag Filters,Aerobelts, Other Belts, Electrical & Instrumentation (HT & LT), Miscellaneous fabrication, Erection & Commissioning, Additional local Work (HoroMill)
Plant & Machinery- Imported
O-SepaSeparator, Cement Machinery ( Mill),FCB.Cement2 GrindingHoroMills
Plant & Machinery- CaptivePower Plant
Main Equipment of 15MW STG Set,60Tph Multi Fuel Fired AFBC Boiler
The project is ~60% complete with existing investment of Rs. 414crore, it requires further infusion of about Rs. 300 crore in following areas to complete the work:
Design Partners, Hyderabad
Civil Design Consultants,
Having track record of earlier civil work assignments for My Home Cements,Dalmia Cement, India Cement, Visakha Cement,Priyadarshini Cement, Sagar Cements etc
SVS Projects Private Limited
Main civil contractor for plant
WalchandnagarIndustries Ltd., ABB- Switzerland, AIA Engineers, Fives FCB&Lile-France, Enexco Technologies ,Puzzolona Machinery Ltd, GERB Vibration, Dalian, SDA Heavy Industries,Bevcon Wayors, Crompton Graves, Siemens
Suppliers of major plantand machinery and Electrical & automation.
BHEL,Thermal System Ltd., Ion Exchange, GERB Vibration andMatangiCooling Towers
Suppliers of power plant equipments
Present status & Additional Capex Requirement
Present status & Additional Capex Requirement(contd.)
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3 MTPA integrated plant is reasonable for economies of scale
Owned Limestone mine within 3 Km from plant site having reserve of 20 MT (after taking care of mining losses and other margins), sufficient for 12 years operation
Further, MOU executed with erstwhile state government (AP) in 2015 for another 236 acres of land having reserve of 65MT, reserve sufficiency of another 35-40years which needs to be renewed
Other raw materials like Laterite, Coal, Iron-ore, Gypsum, Fly Ash and Slag are available within a convenient distance and trucks and dumpers can easily transport the required quantities. Pet coke is available at distance of 900km and can be transported through sea port.
SLCIL has already 100acres of land, 60 acres of which has been utilised for setting up the plant and CPP and additional 20 acres for colony to accommodate staff members. Remaining area of 20 acres is provisioned for development of green belt .
SLCIL has acquired added 70 acres of flat continuing plot for necessary developments like railway siding and further expansion plants-
Site is located 19 km off state highway and 34 km from the NH9.
Miscellaneous fixed Assets (Electrical & Instrumentation)
Purchase of additional electrical and instrumentation
132 KV line with Switch Yard
Power supply line from CPP to allcorners of the unit.
Hard Costs- Sub total
Preliminary & Preoperative Expenses
Expenses toward restart or refurbishment of existing set up if any
Branding need to be initiatedatleast6 months prior to the commencement of production.
Interest During Construction (IDC)
Consideredfor interestexpenses for outstanding debt and fresh infusion.
Contingency toward settlementof bills of existing suppliers if any, government costs for non operative period, M&A fee/expenses and other accidental expenses which may incurred during the project off take
Initial working capital infusion for initial 1.5 years
Soft Costs- Sub total
Grand Total (A+B)
Infrastructure & Location Advantage
Note: Soft costs in terms of IDC, Contingencies and working capital have been considered aggressively for better cushion in assessment}
Distance from plant (InKms)
Raw Material Procurement
Type of RM
Iron ore & Literate
Vizag -Rashtiya Fertilizers/
Chennai - Coramadullum Fertilizers
Petroleum refineries for pet coke
Thermal plants atRamagondam,Vijaywada, KrishnaPatnam,Kothagudam
Fly Ash in addition to in house production from CPP
Additional 5MW power fromTelanganaTRANSCO
Finished Goods Sale
Vijayawada (Nearest Airport)
*Better connectivity with markets keep the prices of cement constant and prevented during cyclical shocks in RM prices
Standard Cost USD/Tonne for 1 MTPA
Standard Time for Completion (In years)
Land acquisition and Environment clearance
In place with all major license
Plant & Machinery
70% of major P&M procured
70% work is completed with major buildings like Magzine House, Main Crusher, Stalker, Reclaimer, Coal Mill, Blended Silo etc.
Erection and Commissioning
More than 50% P&M are erected
Other costs include Interest during construction, Soft costs like arrangement for warehousing and logistics, Branding, Contingencies & preliminary and preoperative expenses, working capital etc
Captive Power Plant
The project cost for 2MTPA clinker, 1MTPA cement with 15MW thermal power plant at Rs. 714 crore is on lower side in comparison with the industry bench mark of Rs.1200 Crores. Further, The project completion can be achieved in 8 months as compared to 7 years for greenfield project, thus the Project is viable and technically sound.
As per industry standard the project will have Ev of Rs. 1365 crore i.e. at $140/ton (Considering valuation for 1.5MTPA unit due to integrated features)
Further, post completion of the existing project, the capacity of cement can be expanded to 2 MTPA by additional investment of around Rs. 110 crore which would enhance the Ev to Rs. 1820 crore.
Key investment comparison with greenfield project.
#Average time for land acquisition and environment clearance has gone up to 5 years due to amended clauses in Land Acquisition Bill 2013, Forest licenses, Mining licenses, Sand Mining Licenses etc.
*Indicates simultaneous project built up activities of 2 year post land acquisition and environment license.
The above factors consumes 7 years for set up of greenfield project in existing scenario
Already secured mining lease for 132.34 Acres valid till 2030.
Company has entered into MOU with state government of erstwhile Andhra Pradesh for mining lease of 236 acres of government land. The minebale reserve will suffice for more than 35 years.
Company is first applicant for mining on about 2916 Acres of reserve forest land . In future mining lease shall be allotted to the company by paying compensation to the forest department of Andhra Pradesh.
Mining Block Reserve
The Contents & Information contained in this brochure are intended for general marketing purposes only and should not be relied up on by any person as being complete or accurate. Interested parties are advised to conduct their own due diligence before taking any decision on the information mentioned in the brochure
Meraj Sayed : 9820485425
Pervez Tamboli : 9819592563
Asset Reconstruction Company (India) Ltd.
The Ruby, 10th Floor, 29 Senapati Bapat Marg Dadar (West), Mumbai : 400028
Tel: +91 22 66581300/399