**Anjani Portland Cement Limited (APCL)** is a prominent South Indian cement manufacturer and a key subsidiary of **Chettinad Cement Corporation Private Limited (CCCPL)**. Operating primarily in the high-growth corridors of **Telangana and Andhra Pradesh**, the company maintains a dual focus on manufacturing premium cement products and captive power generation. APCL serves a diverse client base across **7 Indian states**, balancing **B2B (Commercial)** and **B2C (Private)** market segments. --- ### **Operational Infrastructure & Production Capacity** APCL operates a sophisticated manufacturing facility located in **Chintalapalem, Suryapet District, Telangana**. The company’s production capabilities are bolstered by its subsidiary, **Bhavya Cements Private Limited (BCPL)**, providing a significant regional footprint. | Asset | Location | Annual Capacity (MT) | | :--- | :--- | :--- | | **Anjani Portland Cement (Standalone)** | Telangana | **11,60,000** | | **Bhavya Cements (Subsidiary)** | Andhra Pradesh | **12,00,000** | | **Total Group Capacity** | | **2,360,000** | **Key Operational Metrics:** * **Capacity Utilization:** Dropped to **61%** in FY25 from **73%** in FY24, reflecting a strategic pullback from low-margin territories and temporary market sluggishness. * **Sales Volume:** Totaled **9,99,823 MT** in FY25 (including **2,83,291 MT** of traded cement), compared to **1,105,846 MT** in FY24. * **Compliance & Safety:** The facility holds **ISO 45001** (Occupational Health & Safety) and **ISO 14001** (Environment Management) certifications. **100%** of value chain partners are audited for safety compliance. --- ### **Product Portfolio & Market Engagement** The company specializes in high-performance, sustainable building materials that strictly adhere to **Bureau of Indian Standards (BIS)** norms. * **Portland Pozzolana Cement (PPC):** A blended variety designed for enhanced durability and long-term strength. * **Composite Cement (CC):** A sustainable product utilizing industrial waste (fly ash and slag), reducing the environmental footprint. * **Blended Cement Focus:** A core strategic pillar aimed at reducing limestone consumption and CO2 emissions. Blended cement accounted for **32.6%** of total production in FY25. **Customer Centricity & Quality Assurance:** * **Zero Recalls:** APCL reported **nil** voluntary or forced product recalls in the last two fiscal years. * **Technical Outreach:** The company conducts regular **Mason, Dealer, and Contractor meets** to educate stakeholders on optimal cement application. * **Data Integrity:** Maintains a robust **Cyber Security and Data Privacy Policy** with **zero** reported data breaches of customer information. --- ### **Strategic Restructuring & Debt Deleveraging** To counter three consecutive years of losses and a high interest burden, APCL is executing a major corporate reorganization. * **Strategic Stake Divestment:** In **December 2025**, APCL sold **6,35,11,620** shares (**48%** stake) of **Bhavya Cements (BCPL)** to its parent company, **CCCPL**. * **Financial Rationale:** The transaction, valued at **Rs. 254.05 Crores** (**Rs. 40 per share**), is specifically earmarked to settle outstanding loans and interest owed to the holding company. * **Retained Control & Amalgamation:** APCL retains a **51.01%** majority stake in BCPL. Simultaneously, the company is pursuing a **Scheme of Amalgamation** to fully merge BCPL into APCL, pending final approvals from **SEBI, NCLT, and Stock Exchanges**. * **Capital Raising:** This restructuring follows a **2023 Rights Issue** which raised **Rs. 80.55 Crores** (of a targeted **Rs. 249.06 Crores**), necessitating the current asset-based debt settlement. --- ### **Sustainability & Resource Efficiency (Circular Economy)** APCL is aggressively transitioning toward a lower-carbon operational model through alternative fuels and raw materials. * **Thermal Substitution Rate (TSR):** Increased significantly to **9.65%** in FY25 from **6.62%** in FY24. * **Alternative Fuels:** Utilizes pharmaceutical waste (spent carbon/liquids), organic solids, and rice husk, often achieved at **zero landing cost**. * **Alternative Raw Materials:** Use of iron sludge, fly ash, and granulated slag reached **13.73%** of total material consumption in FY25. * **Energy Conservation:** Captive power plant auxiliary consumption was optimized to **7.54%** through the installation of **BLDC fans, LED lighting, and VFDs**. --- ### **Financial Performance & Capital Structure** The fiscal year **2024-25** presented significant headwinds, resulting in a contraction of margins. **Consolidated Financial Summary:** | Metric (INR Crore) | FY 2024-25 | FY 2023-24 | % Change | | :--- | :--- | :--- | :--- | | **Revenue from Operations** | **373.44** | **476.87** | **(21.69%)** | | **Operating Profit / (Loss)** | **(3.07)** | **25.28** | **(112.14%)** | | **Finance Costs** | **27.66** | **27.09** | **2.10%** | **Solvency & Credit Profile:** * **Gearing Ratio:** The **Net Debt to Equity Ratio** weakened to **2.14** (March 2025) from **1.44** (March 2024), driven by lower equity and increased reliance on cash credit. * **Credit Ratings:** Reaffirmed at **CARE A+; Stable** (Long Term) and **CARE A1+** (Short Term) as of late 2024. * **Asset Valuation:** Goodwill is carried at **INR 239.22 crore**, with impairment tests utilizing a **13% discount rate** and **6% terminal growth rate**. --- ### **Risk Landscape & Mitigation** APCL operates in a capital-intensive industry sensitive to regulatory and macroeconomic shifts. * **Liquidity & Interest Risk:** With borrowings of **₹359.45 crores** at **7% interest**, the company is highly sensitive to rate hikes. A **70 basis point** change significantly impacts PAT. * **Logistics & Supply Chain:** Heavy reliance on road transport makes the company vulnerable to diesel price volatility. In **March 2025**, BCPL faced a **25-day dispatch halt** due to local transporter issues. * **Regulatory Contingencies:** The company is contesting a **₹16.95 Crore** demand for wheeling charges (currently stayed by the **High Court of Telangana**) and a **₹1.55 Crore** cross-subsidy surcharge. * **Market Competition:** APCL faces intense pressure from pan-India players. Strategy is focused on leveraging the **PM Gati Shakti** and **Pradhan Mantri Awas Yojana** (budgeted at **Rs. 79,590 crore**) to capture infrastructure-led demand. --- ### **Future Outlook** Despite recent losses, APCL is positioned to benefit from a projected industry **CAGR of 4.7% (2024-2032)**. The management, led by **Mr. N. Venkat Raju** (re-appointed as MD through **2030**), is focused on completing the BCPL merger, optimizing the fuel mix, and deleveraging the balance sheet to return to profitability as national infrastructure spending accelerates.