Thread by @rlnarayanan

#Adani #cement
As I was heading institutional business with lot of constraints of budget (a good research analyst would come at a cost of ₹60-1.5 cr )which my company then was not able to afford. Although I had team of analysts I picked them from print media & industry other

than broking, I started networking with industry experts, c-level executives retired CEO’s research experts, domain experts especially for IT, Banking, Pharma, FMCG & infrastructure

One such area was cement I went very deep into it with a help of top executives & high level geologists who was an IIT & senior person with complete knowledge & expertise.
With him I figured that
Clinker is available cheap in Middle East & is in plenty with good logistics

brought by ship & setting up terminals and grinding units along the Western coast gives huge competitive advantage & immense commercial sense.

Cement is cartel across India because the manufacturing cost can’t be above ₹240 even today it was ₹145 a decade before now if the

Logistics part is taken care by using Mundra port as strategic port &has advantage for Middle East operations not only that they control #kattupaali port just in TN border now if cement is bought from Mundra to #panvel then to cochin port & further down to TN will save enormous

cost. Cement being a high-volume, low-value product, low-cost sea transport is very important as a game changer in logistics. This modal shift in transport of cement from road or rail to shipping will be another step towards promoting coastal shipping through cost-effective

and environment-friendly logistics envisaged under the Sagarmala Programme of Ministry of Shipping
This mode has been tried in last 3-4 years and has been successful.
#Adanicements will be a game changer for infrastructure industry if they can move bulk cement to the port &

handle packaging at respective ports or states as logistics adds to 35% of the overall cost and is sensitive to freight price and rise in fuel prices by using there port to the full advantage #adani can overcome the problem there cost saving by bringing the clinker & using sea

Ambuja’s shipping initiative has always been an inspiring story of growth and innovation. Way back in 1992, Ambuja was the first cement company in the country to kick-start transportation of bulk cement by coastal shipping as the best mode of sustainable transport amongst all

other modes of transport as well as the most cost-effective way. It was also the first to introduce Shore Power Supply to all her ships at the captive jetties

The vessel AMBUJA MUKUND (IMO: 9543639, MMSI 419099300) is a Cement Carrier built in 2011 (11 years old) They also

Ambuja vaibhava, most interesting fact is both these ships have been tested with bio diesel blend already, MNC’s in Mutul funds have been biggest failure in India & in few sectors they haven’t done well one such area is cement back to the desi owners & Gujrati sprit of business.

The shipping success of #Ambuja cements Ambuja has a fleet of 10 dedicated cement carriers and three captive ports – the first two jetties were commissioned in Muldwaraka (Gujarat) and Ulwa (Panvel, Maharashtra) in 1993 followed by Surat (Gujarat) in 1995. If the analyst in media

& broking industry just talk about cement they are not getting the strategy right I will explain why the Panvel port is a terrific success

Over the years, cement supplies to Panvel have only ramped up. BCT Panvel received 16.84 lakh metric tonnes of cement in 2018.

the fully automated operations have not only improved the scale but also the capabilities of the terminal. Supported by the automatic loading and unloading systems, about 270-meter long conveyor belt with the dust control mechanism carries as much as 800 tonnes cement per hour

from the unloading point to Silos under a pollution-free framework.

Amidst growing competition, the peers can replicate this Shipping idea some have done but are yet to catch up with the size and scale of Ambuja, The fully automated ship transportation with over 26 years

of excellence in sea logistics chain. Ships with advanced equipment boosted performance and fuel efficiency, and have hugely reduced the travel distance, thereby significantly saving logistics costs to the Company.

“The road/rail route to Mumbai market is about 828 km whereas the ships sail for 353 km to reach the same market. Sea route has reduced our transportation cost substantially, with fully automated ships with good planning, collaboration and careful execution from the teams

from plant to port, from exploring clinkers from Middle East will enable #ambuja #adani to maintain on-time delivery of the top-quality cement at low cost killing the competition completely and will become global leader in the space #AmbujaCement will have a market cap of over

₹2 lakh crores by 2025 from the current 70k crore which is undervalued to it’s potential & is possible with effective leadership & management.
Cement is strong sector & #ACC has powered Sensex from days of Harshad Metha

With the current government push to housing for all and infrastructure push and our per capita consumption being lower will have re rating of the stock it’s fundamental buy for 2030 under the leadership of #adani stock will power to 10x from current market cap and will be #1

All tweets for educational purpose only, I have handled > 500000 demat a/c, only virtue needed for investors after investing in a fundamentally good sector and stock is patience.
Plan to exit in 2030 keep accumulating don’t look at exit, every fall is opportunity,Happy investing.

Notes:
Shipping & port ^
Cement transport by ship is ₹0.70 per ton per kilometre as compared to ₹1.60 by rail & ₹3.00 by road  transport.
CO2 emissions per unit load a ship are 1/5th of emissions from standard size commercial truck
13% of cement produced is transported by sea

As a good strategist & psychologist I am happy that the thread has captured most of the management thinking ( before the interview)
Except few parts which a good leader will not discuss in open
Many thanks for all the followers,
Happy wealth creation.
m.economictimes.com/industry/indl-…