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Press Released : Binani Cement Limited announces results for HYFY09/Q2FY09

Mumbai October 24, 2008 : Binani Cement Limited (BCL), the flagship company of Braj Binani group has posted net sales of Rs.632.33 Crores for HYFY09 in comparison with Rs.409.36 Crores in HYFY08. Net Sales for Q2FY09 is Rs.306.34 Crores against Rs.213.74 Crores in Q2FY08. Due to increase in volume of production and sales, the company has achieved higher EBIDTA of Rs.162.57 Crores for the HYFY09 in comparison with Rs.151.19 Crores in HYFY08. PAT for the HYFY09 is Rs.80.11 Crores against Rs.98.54 Crores in HYFY08. PAT for the Q2FY09 is Rs.26.81 Crores against Rs.47.87 Crores for Q2FY08.

The company has initiated activities for the development of 10 Million Tonne reserves lignite mine at Nimbri Chandawatan, Rajasthan and proposes to instal additional 25MW power plant to facilitate further reduction in cost of captive power generation for the operations. The company has also firmed up and executed a long term contract for the supply of coal from Indonesia for its coal requirement for the year 2009 for captive power plants.

During the current period, the company has also stabilised its 1.50 Million MT split grinding unit at Neem Ka Thana, Rajasthan (NKT). With the full connected load of power in NKT to be in place from December ’08 and with the stabilisation of the second phase of the 2 x 22.3 MW power plant, the company expects to achieve production of 4.50 Million MT in FY 2008-09 and 5.50 Million MT in FY 2009-10. The Board has also approved the proposal for de-bottlenecking of the existing plant operations at Binanigram, Rajasthan to increase the overall cement production capacity from 6.0 Million MT to 6.20 Million MT.

The Board has also reviewed the progress of the forthcoming Greenfield project in Gujarat having 2.5 Million Tonne Clinker/Cement production capacity, with a total capital outlay of Rs.825 Crores with captive power plant, for which financial closure has been done. Keeping in view the delay in receiving the approvals for the land and mines till date from the Government of Gujarat, the project which was scheduled to go into production during 2nd half of 2010 had to be rescheduled for completion by mid 2011. On a review of the economic parameters of the project, the capital, outlay has now been pegged at Rs.700 Crores with power requirements proposed to be met from the captive generation capacities including the proposed pithead power plant at Nimbri Chandawatan, Rajasthan.

BCL acquired 49% interest in a 1.2 Million MT cement and slag grinding unit in UAE (BCF, LLC) during the last financial year with effective management control. This company has already undertaken expansion of capacity to 2.0 Million MT to go into production in March’09. BCL Board at its meeting held on 23rd October ’08, has considered enhancing its benefical interest in this company in phases to go upto 100%. This would increase the revenue and corresponding profits of the group substantially

About Binani Cement Limited

Binani Cement Limited (BCL), established in 1997, listed at the BSE and NSE, has two operating subsidiaries viz. Shandong Binani Rongan Cement Company Limited (SBRCCL) acquired in August 2007 and Binani Cement Factory, LLC (BCF) acquired in March, 2008.

Facilities, Markets and name of the Operating Company: – BCL has two manufacturing units in India, at Neem Ka Thana and Sirohi In Rajasthan, with a total production capacity of 6 MTPA for Cement and 0.5 MTPA clinker capacity. Internationally, Binani has acquired plants overseas, one in China and another one in Dubai.

Facility in Rajasthan India, BCL

The plant was set up as a 1.65 MTPA integrated cement facility with 25 MW captive power plant in 1997 with the technological support from F.L. Smith, Denmark and Larsen & Toubro Ltd., and was completed within a record time of 19 months. The Company was the first cement company to be certified as ISO9001, ISO14001 and OHSAS18001 compliant, highlighting the quality, efficiency and environment-friendliness of its operations in a short span of 5 years from commercial production.

In 2005-06, the Company started with a brown field facility with railway siding and a split grinding unit at Neem Ka Thana to increase the capacity of the cement facility to 6 mtpa and power facility to 69.6 MW. The Clinker unit and one grinding unit commenced commercial operations in October 2007 and December 2007 respectively. The split grinding unit and one 22.3 MW power plant commenced operations in March 2008. The Company has two limestone mines, namely Amli and Thandiberi, on a long term lease basis at a distance of 2 and 7 Km from the plant. These mines have proven reserves of up to 195 MnT (as on April 1, 2005). The reserves of the Company will last for nearly 30 years.

Binani has a wide distribution network comprising over 2,360 dealers and 68 market organizers and caters to Rajasthan, Gujarat, Northern Capital Region and Maharashtra. The Company pioneered the cash and carry system in its markets. The Company is active in the OPC as well as the PPC markets.

BCL declared dividend of 20% for the year 2006-07 and 25% for the year 2007-08.

Facility in China – SBRCCL a Subsidiary of BCL

BCL acquired 100% stake in Krishna Holdings Pte, Singapore which holds 70% in SBRCCL in August 2007. The Plant is located near village Fu Jia Zhuang, Dongguan town, Ju County, Rhizhao city of Shandong province, China. Two ports viz. Rizhao and Lanshen are about 125 kms from the plant. The Clinker plant was set up in November 2005 and since take over of the management in August 2007 has been operating at close to 100% capacity utilization.

Facility in Jebel Ali, Dubai – Binani Cement Factory, LLC (BCF, LLC)

BCL acquired 49% stake with management control in BCF, LLC through Mukundan Holdings Limited, BVI, a WOS of BCL in March 2008.

BCF, LLC is a dividend paying, debt free company in operations for the last 10 years. Its 1.2 mtpa grinding unit is located at Jebel Ali and produces both slag and OPC cement. The sales to customers are with Bank Guarantee. This ensures zero bad debts. Its customers are reputed companies like Cemex in the UAE.

It imports clinker from SBRCCL, China and India. It has a firm supply agreement with Rizhao Steel Company at a fixed price for slag. Gypsum is procured locally and has tied with Dubai Electricity and Water Association for its power requirement.

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Manish Shandilya/ Loveena D’silva
Madison Public Relation