Image Source: Indian Cement Review
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
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