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Lake Cement Limited, Tanzania
Summary
Experience:
15 - 25 Years
Location:
Tanzania
Compensation:
U.S Dollars 85,000 - 1,00,000 & above
Above salary figure includes fully furnished residence,
car with driver, laptop, mobile, air-passage to India on leave, medical facilities,bonus etc.Above salary figure includes fully furnished residence,
Education:
UG - Any Graduate - Any SpecializationPG - CA,ICWA
Industry Type:
Construction/ Engineering/Cement/Metals
Role:
Head/VP/GM-CFO/Financial Controller
Functional Area:
Accounts, Finance, Tax, CS, Audit
Posted Date:
18 Apr
Desired Candidate Profile
CA or ICWA with 15-25 years of experience in manufacturing organisations of repute with min. size of Rs 300 cr. annual sales turnover.
The person should be exposed to full spectrum of accounts, finance, clearing, logistics, secretarial work, commercial management of contracts, insurance etc with experience of Fiancial Management during Project and Operational Stages.
Exposure to ERP systems, raising finance from banks and some administration work will be preferred.
Those drawing current CTC of less than Rs. 15 lacs p.a. would not be eligible for this senior job.
Job Description
The job involves taking charge of all accounts, finance, secretarial and administrative responsibilities for a $70m Cement Project coming up at Dar es Salaam in Tanzania on a Greenfield basis. Specific responsibililties will include -
1. Accounts and MIS
2. Installing proper ERP system
3. Project Accounts of Greenfield Site
4. Operating accounts once Plant starts working after 18 mos.
5. Commercial vetting of Project Contracts, Clearing, Inward Logistics , Govt. Liaison and Insurances of all types
6. Project Cost and Stores Management
7. Secretarial Work, Getting Accounts Audited
8. Liaison with Lender Banks, Supplier of Turn-key Plants
The above job description is by no means static and will change from time to time. The job position can lead to Board Membership Level within two years and will report to the Board of Directors from the beginning. Possibilities also exist to be Group CFO for Tanzania including all other businesses, in due course.
Keywords: CFO
Company Profile
LAKE CEMENT LIMITED – NOTEBanco Products (I) Ltd proposes to invest $ 12.3 m in Lake Cement Ltd , a Tanzanian company, which is to set
up a green field project for manufacture of cement at location Kimbiji , near Dar es Salaam, Tanzania.
Project cost is estimated at $ 70 m . and equity is to be $ 24 m. Apart from Banco, there will be investors of
local leading business groups. The capacity planned is 500,000 MT annually. Project includes limestone
mining, clinker and cement production. The land of 70 hectares of limestone deposits is already acquired
and all major necessary government clearances have been obtained including environmental clearances and
mining license.
Lake Cement Ltd has appointed Development Consultants Ltd , a leading Indian consultant in cement
industry , for technical consultancy .Other major manufacturers in cement industry in Tanzania are Holcim,
Heidelberg and Lafarge. Commercial production is to from beginning 2013. Market share for Lake Cement
Ltd will be about 11 % at full production level.
Management will be by a team of Indian cement industry professionals.
At full production, sales value will be $ 62.5 m and profits at approx. $ 20m. IRR on equity over 15 years is
estimated at 48 % . Return on equity on 4th year of operation is estimated at 76 %.
PROJECT & PROMOTERS
1.
Lake Cement Limited (LCL) is a Company incorporated in Tanzania. LCL is setting up a Cement
Project to manufacture & sell 500,000MT p.a. of Portland cement. The Project will include Limestone-
mining, Clinker & Cement Production and Packing -all carried out at a single site located at the village
Kimbiji, District Temeke in Dar es Salaam Region, and 45 kms. South of the Port and City of Dar es
Salaam along the coast of Indian Ocean.
2.
Gross Investment in the Project is estimated at US$ 70m. At this stage, the funding has been
planned as $24m by equity and $46m by commercial loans. The loans will be raised from
local/international banks and multilateral financial institutions, for which the application work will
start from June 2010.
3.
BPIL would be major shareholder of LCL with around 51% equity and balance would be from local
business groups of Tanzania.
4.
BPIL is a leading manufacturer of automotive cooling systems and gaskets, with plants in India
and manufacturing subsidiaries in Europe. It enjoys top-most quality certifications and supplies to
most major Indian Auto Manufacturers. It also exports 33% of its output. BPIL’s shares are listed
on Bombay and National Stock Exchanges of India. BPIL EBDITA for the year ended on
31.03.2010 stand at USD23m and Net Worth at US$ 49m( Standalone basis). Consolidated Net Worth (
BPIL+NRF) stands at US$69m. for more details please visit Web; www.bancoindia.com
TANZANIAN & NEIGHBOURING CEMENT MARKET
5.
The Cement Market of Tanzania and its neighbors – except Kenya and Uganda – is estimated in
2009 at 2.68m MT. With a compound growth rate of 8% in Tanzania and 6.5% with its
neighbors, this Demand for Cement will climb up to 4.45m MT by 2016. The neighboring
markets of Rwanda, Burundi and West DRC are land-locked and have no cement production at
all. These markets will have easier geographical and commercial access from Tanzania under
the recently introduced East-African Community’s Free Trade Regime.
6.
Cement Supplies from three existing Tanzanian Producers in 2009 stand at 1.9m MT. The total
plant capacity of these three, including their known and announced plans of expansion for the
next 3-4 years, stand at 2.53m MT. This leaves a gap of 1.92m MT between Demand and
Supply by 2016. Based on this gap, LCL plans to put up a capacity of 0.5m MT of Cement in
Tanzania by 2013. Present players are owned by Heidelberg, Holcim & Lafarge.
7.
The lowest ex-factory price of cement during 2008-2010 in Tanzania has been seen at $135148
/ MT nett of VAT. LCL Project assumes a conservative Price Realization of $125 / MT in its
Feasibility Study and Financial Projections.
8.
LCL plans to have physical distribution of Cement with road transportation network under its
own control with operation of sales depots at eight different locations in Tanzania. This will be
carried out either directly by LCL or through a Distributor under its own control.
MANUFACTURING , PROJECT SCH & MANAGEMENT
9.
LCL has hired services of Development Consultants International Limited ( DCIL ) to carry out
detailed Geological and Mining Assessment for Limestone available at LCL’s mine site and also
prepare Techno-economic Feasibility Report for the Cement Project. DCIL will also act as Prime
Consultant to the Project for preparing detailed tender specifications for the Plant, the
evaluation of tenders, approval of all the civil, electrical and mechanical drawings and
instrumentation layouts submitted by the turn-key plant supplier . DCIL will also supervise and
audit the entire erection and commissioning process incl. the start-up of the Plant and ensure
production of correct quality and quantity of Cement. DCIL have acted as Project Consultants to
over 120 cement projects worldwide, including all the three existing cement plants in Tanzania.
They can be visited at www.dcpl.net.in
10.
LCL has already acquired 70 Hectares of land, including 10 Hectares for the Plant. The entire
Mining Land has been surveyed through extensive drilling to establish quality and quantity of
Limestone – the main raw material for production of Cement. This survey concludes that 31 MT
of excellent quality limestone is available at LCL-site, enough to last for 40 years for Cement
Production at full capacity. By going below the av. depth of 35m-down to 45-50m level,
additional 13m MT of good quality limestone would be available to last for 16 more years.
Other raw materials like Clay and Sand are available either at site or within a radius of 2
kms. Gypsum would be available from existing mines 200kms away.
11.
Coal will be imported from South Africa by Sea and used as fuel for the Kiln. The kiln will be
designed for conversion later on to Natural Gas, if the same is available with surety. Power
has been requested from TANESCO and work on a 33KV line has been started by them to
supply power to the Plant. However, stand-by power , through own diesel or Gas Generators
will be made available in stages for the entire plant, in tune with increase in the Cement
Production over the first four years. The Cement Plant will be designed for optimal power
consumption with good Japanese and European Technologies and supplied by Indian Cos. Of
repute on turn-key basis.
12. All manufacturing and Mining Licenses, Approval for Investment Incentives, Title Deed for Land
and the Environmental Clearance have been obtained.
13.
Key senior managers and technical staff will initially be made up of expatriates from India,
Middle East and South Africa , for all the critical areas of the Project incl. Finance and
Marketing. Local staff will be gradually trained and inducted to replace the expatriates, wherever
possible. This professional team will be guided by the Board of Directors that consists currently
of three senior persons -each having 25-30 years of industrial experience in East Africa and
Asia. The Board will be further expanded in the next 6-8 months.
14.
The Project will be implemented over a span of 30 months starting from today. Clinker-Grinding
and Cement-Packing Sections of the Plant will be completed in advance, within the first 16
months. This will enable LCL to seed the market with its brand of cement, made by grinding
imported clinker, one year ahead of the full plant getting commissioned. This strategy will
facilitate LCL to achieve a capacity utilization of 55% in the very first year of its full plant
operation.
15.
Total Project Cost would be US$70M of which equity portion would be US$24M and Debt US$ 46M .
Project schedule to srat commercial production from 01.01.2013
FINANCIAL INDICATORS
16.
IRR on equity over 15years = 48%. IRR at10% lower sale price and 10% higher investment works out at
44%. Return on equity in 4th year of operation works out at 76%
17.
Major Financial indicators :
Debt : Equity 1.90 : 1
IRR on own Fund 48%
Pay back period 3 years
DSCR
2.05
Project break even at 28% capacity utilisation
18.
Projected demand is assumed as below for next Five year in Tanzania and near by country where
Tanzania can supply ( Estimated)
Year MT
2009 26.8 Lacs MT
2010 33.3 Lacs MT
2011 35.8 Lacs MT
2012 38.5 Lacs MT
2013 41.4 Lacs MT
2014 44.5 Lacs MT
2015 47.2 Lacs MT
19.
Capacity utilization and market share have been planned as below
Capacity utilization and Market Share
Capacity Market Share
Utilisation
First Year 51% 7%
Second Year 72% 9%
Third Year 88% 10%
Fourth Year 100% 11%
20. Cash Flow Generation ( Cash profit generation have been assumed as below )
Cash Profit US $ M
First Year 9.7m
Second Year 18 m
Third Year 24m
Fourth Year 30m
This note contains forward-looking statements, which may be identified by their use of words like ‘plans’,
‘expects’, ‘will’, ‘anticipates’, ‘believes’, ‘intends’, ‘projects’, ‘estimates’ or other words of similar meaning.
All statements that address expectations or projections about the future, including, but not limited to
statements about the Company’s strategy for growth, product development, market position, expenditures,
and financial results, are forward-looking statements. Forward-looking statements are based on certain
assumptions and expectations of future events. The Company cannot guarantee that these assumptions and
expectations are accurate or will be realised. The Company’s actual results, performance or achievements
could thus differ materially from those projected in any such forward-looking statements. The Company
assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis
of any subsequent developments, information or events.
Contact Details
Company Name:
Lake Cement Limited, Tanzania
Website:
Executive Name:
Mr. P K Buch
Address:
Box 2562
Vadodara,Gujarat,India 390005
Vadodara,Gujarat,India 390005
Email Address:
Telephone:
91-265-9725487878
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