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Braj Binani Group set to achieve new heights

First Indian Cement Company to have a production facility in China

November 28, 2007, Mumbai : The Braj Binani Group is a well-diversified industrial house with a 138-years history behind it. Today, the group is actively working in the core sectors of Cement, Glass Fibre and Downstream Composite Products. Binani Cement Limited (BCL) is the first Indian Company to acquire a production set up in China. Binani Cement is growing stronger and stronger and it’s reflected in the financial results as well. Thus the Braj Binani Group is charting a path to achieve greater heights in the future.

Binani Cement Limited has become the first Indian Cement Manufacturing Company to enter the ever expanding markets of China with its dedicated Cement production facility in Shandong province in North China. Binani Cement Limited has bought 49% stake with management control in an ongoing Cement Manufacturing Plant in China having reserves of 148 mn tones of limestone in the nearby mines for US$ 11 million.

Mr. Vinod Juneja, Deputy Managing Director, Binani said, “Binani Cement has invested in a running virgin cement plant in China. This plant has a present clinker capacity of 0.5 Million Tonne Per Annum (MTPA) and cement of 0.3 MTPA which will be scaled to 2.2 MTPA in the next 2 years. The limestone reserves in the leased mines would be sufficient to cater to the needs for over 50 years at extended capacities.” He further added, “Cement produced in the plant will be sold not only in the booming domestic markets in China but will also be exported to the Middle East and East Africa.”

Binani Cement Limited (BCL) has posted a Profit before Tax of Rs. 111.36 cr on a turnover of Rs. 490 crore for the half year ended September 30, 2007. The Profit after Tax for the half year ended September 30, 2007 is Rs. 98.54 cr. In the corresponding previous year the Profit before Tax was Rs. 77.5 crore on a turnover of Rs.378.9 crore. The Profit after tax for the half year ended September 30, 2006 was Rs. 52.69 crore.

BCL’s cement plant is situated in Binanigram, Pindwara, Sirohi, Rajasthan. In order to reduce freight cost the second grinding mill is being setup in Neem Ka Thana closer to Haryana and the adjoining NCR region. BCL’s second clinker unit commenced commercial operations from October 02, 2007. Trial runs are underway on the cement grinding unit at Binanigram. The capacity will increase to 6 mio TPA in the 4th quarter of 2007-08.

BCL’s main markets are Rajasthan, Gujarat, New Delhi and the NCR region. With the capacity expansion, it plans to extend its market areas to interior Uttar Pradesh and Maharashtra. BCL also has a railway siding connecting to a broad guage line which connects New Delhi, Ahmedabad and Mumbai. BCL’s operating parameters are comparable with the best in the industry. BCL has further plans to expand its capacity to 10-12 mio TPA in the next 2-3 years.

Binani Cement Limited shares were listed in BSE and NSE in May 2007 at an issue price of Rs.75/- per share. The Company declared dividend @ Rs.2/- per share in July 2007 thereby bringing down the cost of acquisition to Rs.73/- per share. The present share price is about Rs.118/- and had already reached a high of Rs.137.95. The total equity share capital of the Company is Rs.203/- Cr (20.3 cr shares of face value Rs.10/- each) of which only 10% (2.03 Cr share) is with public. 15% is held by M/s. J P Morgan and 10% by M/s. Credit Suisse and balance 65% is held by Binani Industries Limited. Going by the fundamental strength of the Company and given that the production facilities are almost on stream, the shares have attracted good buying interest.

The strength of the Braj Binani Group lies in its robust organisational structure – the very backbone of the company. Consistent emphasis on professional management has helped the group achieve marked progress across its diverse operations. Taking on challenging projects, completing them in record time and running them efficiently is the hallmark of the group. The uniqueness of the group lies in its dedication towards philanthropy.

The Ghanshyam Binani Children’s Bravery Awards

The Ghanshyam Binani Children’s Bravery Awards had invited the nominations for the 7th awards 2006-07. Soon, the Foundation will organize a function to give away these prestigious awards. The Ghanshyam Binani Children’s Bravery Awards was instituted in 2000 to remark the Birth Anniversary of Late Ghanshyam Binani. Ghanshaym Binani Foundation aims high to confer the Bravery Awards to young bravos of the nation, with a view to inculcate a spirit of courage and humanity amongst the young citizens. The foundation recognizes the young as the future and also has the deep feeling within, that it is only in our hands to shape our future. The Award consists of a Silver Medal, Citation and a Cash Reward of Rs.51, 000/- each for one male and one female winner. The medal is a thematically designed with a neckband of three bold colors- orange, blue and green, representing fire, water and earth. The pyramid and crystal which are considered epitome of energy, they absorb and emit energy. This medal acknowledges that force within.

About Binani Group’s Social Initiatives

Braj Binani group has instituted an award through the National Metallurgical Institute for outstanding achievement in this field. Ghanshayam Binani Foundation (the Binani charitable body) periodically conducts free eye camps, offers donations and provides scholarships to the underprivileged. The group keenly promotes the well being of its employees by building housing complexes, schools, hospitals, community centres and picturesque garden.

For Media Queries Only:

Yogesh Kolte / Tina Vasaigara
Madison Public Relation