Bank of New York Mellon ups stake in India Cements Ltd

New York based bank, Bank of New York Mellon (BNY Mellon) said it had increased its stake in India Cements (ICL) to more than 10%. Bank of New York Mellon is an asset management and security trading firm with assets pegged at $21.8 trillion. The bank has increased its shareholding from the 1% it previously owned in the N Srinivasan supported firm, India Cements.

Even so, the US based bank said it had purchased the shares on behalf of two of its clients, Mellon Capital Management Corp and Boston Company Asset Management. The firm has increased its stake through acquisition undertaken between the June quarter and late July. In July, Bank New York Mellon’s shareholding in the Indian firm was placed at 10.07%, having been upped from 1.06% as at June 30th.

The Indian firm’s shares went up by 0.10% to close at about Rs 104.45 crore on the Bombay bourse trading Thursday. However, a number of brokerages have sustained a purchase on India Cements stock irrespective of the harsh margin duress in the South of the country that is a core market for the firm. India Cements is hopeful of improved performance in spite of the margin duress and the slowed growth in its core markets.

However, that is expected to change as the firm undertakes a venture into the North with the setting up of its 1.5 million tons yearly green field cement facility in Rajasthan, analysts posited. In addition, India Cements is establishing two 50 MW captive power facilities in Tamil Nadu and Andhra Pradesh, a move that the firm hopes will reduce its fuel costs. It as well expects its reliance on outside sources for feedstock to reduce as soon as the Indonesian coal mine it acquired recently begins operations.

India Cements Limited is a cement manufacturing company in India. It was established in 1946 and the first plant was set up at Sankarnagar in Tamil Nadu in 1949. It has about seven cement manufacturing plants spread over Southern India catering to major markets in South India and Maharashtra. The capacities of its plants are over 9 million tons per annum.

India Cements is the second largest cement manufacturer in South India with a capacity of 14 million tons per annum, which it plans to scale up to 16 million tons per annum by the end of this fiscal year and has an estimated market share of close to 20%.

20 Aug 2010