 "cement, ACC, Ambuja cement")
Shares of Prism Johnson slipped 6 per cent to Rs 124.75 on the BSE in Monday’s intra-day trade after the board approved transfer of certain freehold land parcels aggregating 1,420 acre in villages of Nandyal, Andhra Pradesh (AP) over to Ramco Cements.
The company will also transfer a mining lease granted by the government over to Ramco Cements for an area of 663.46 hectares.
Prism Johnson has purchased the limestone-bearing land parcels to set up a greenfield cement manufacturing plant. However, it has decided to transfer these land parcels and the mining lease to Ramco Cements as their current interests do not align with their current investment plan.
Prism Johnson has purchased the limestone-bearing land parcels to set up a greenfield cement manufacturing plant. However, it has decided to transfer these land parcels and the mining lease to Ramco Cements as their current interests do not align with their current investment plan.
Upon completion of conditions as per the definitive agreements to be executed with Ramco Cements, the mining lease and land parcels would stand transferred from the company to Ramco Cements. The said transaction is expected to be completed by July 31, 2023, subject to customary approvals, if any, Prism Johnson said in exchange filing.
Prism Johnson is a prominent building materials company in India that operates through three divisions, namely Cement (Prism Cement), H. & R. Johnson (India) (HRJ), and RMC (India) (Prism RMC).
"In 2022-23, the increase in input costs, particularly in fuel, pet-coke and coal prices had an adverse effect on profitability margins. To counter this negative impact, Prism Cement prioritised cost optimisation efforts over the past year. The impact of the same should be visible from next year onwards," the company said.
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The wind power is expected to be commissioned by September 2024. This will also help Prism Cement to reduce its overall power cost and increase the utilisation of renewable energy for the cement plant in Satna.
Taking into account the potential medium-term market growth, HRJ is set to raise its tile manufacturing capacity by 5.5 mn. This will be done through Greenfield expansion in Panagarh, West Bengal, which is expected to be completed in the first half of 2023-24. This will help HRJ in increasing its presence in the Eastern region and help gain market share, the company said.
"Prism RMC is poised to benefit from the anticipated demand recovery in the Real Estate and Infrastructure sectors in the medium-term. Prism RMC’s business has gained momentum, as it has secured some more infrastructure projects that are scheduled for execution over the next two to three years, leading to revenue growth," the management added.
