Mangalam Cement Limited, the flagship company of the B.K. Birla Group, has emerged as the successful bidder for the NimanaDuniya Limestone Block in Kota, Rajasthan. The action is a strategic win for the company as it improves the raw material security of the company and longterm production strategy.
Key Points:
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Mangalam Cement has been approved by Rajasthan government as the top bidder for the forward eauction held on 20 January, 2023.
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The company bought the block at a last price bid of 85.15 percent, reflecting aggressive bidding and strong determination to expand its limestone holdings.
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The NimanaDuniya block is an important limestonebearing region, crucial for cement production and set to further increase Mangalam's raw material independence.
Strategic Implications:
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The acquisition is consistent with Mangalam Cement's expansion strategy, i.e., as it raises clinker output from its Morak, Kota units.
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Through this block, the business will be in a position to reduce dependence on external limestone suppliers, ensuring costeffectiveness and smooth operations.
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The action also aligns with the firm's sustainability objectives by allowing for greater control over mining operations and environmental regulation.
Next Steps:
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Once the preferred bidder has been declared, Mangalam Cement would proceed with obtaining statutory approvals and signing the mining lease agreement.
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The firm will invest in mechanized mining and environmentally friendly operations to maximize extraction and reduce environmental degradation.
Sources: Rajasthan Government Mines Department, Rediff Money, Mangalam Cement Corporate Disclosures, MSTC Auction Portal