Rank: New-farer Joined: 11/2/2014 Posts: 38
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VituVingiSana wrote:Felipe wrote:VituVingiSana wrote:Felipe wrote:Pesa Nane wrote:Quote:Take AwaysRevenue 13% down Increased competition in Tz with new market entrant Tz prices 33% down due to competition EBITDA 17% down to KES 1.6Bn Higher energy costs Finance costs KES 1.5Bn up Net Loss KES 267 Million CDC made an equity investment of USD 140 million New capital to pay down debt and support group's expansion plans  No interim div I'm optimistic about the future prospects of the cement industry in EA and in particular Tanzania Tanzania key infrastructure projects this financial year: * Shift of government seat to the designated capital of Dodoma: major infrastructure projects expected * $6.7bn standard gauge railway that will link Rwanda and Burundi * $10bn mega port at Bagamoyo * $4.0bn oil pipeline which is expected to transport Ugandan crude oil to the Tanga for export * Rehabilitation of the Central railway line and improvements in Dar es Salaam and Mtwara ports Competition has led to reduced prices but also imported cement from such countries as Pakistan are no more. Cement from local producers are dominating the market. Most hardware stores stock cement from Tanzania Portland Cement company, *Rhino Cement and Dangote Cement. * produced by Athi River Mining. Why have imports (eg Pakistan) stopped? What stops China [which is funding these projects] from supplying cement to replace the Pakistani suppliers? Imports have stopped especially from the 2nd half of last year after local cement makers slashed prices up to Tsh 10,000 per 50kg due to intense competition: * It would not make economic sense to traders in such areas as Kariakor, Mwenge, Bunju within Dar city to stock imported cement as it would not sell because prices of locally made cement have been reduced. * local masons and building contractors use local cement because their prices were now more affordable and were good in quality. Note: It's the aspect of quality and prices which have automatically reduced or taken out cheap imports from Asian countries from the local market. Wouldn't the (much) lower prices for local cement substantially reduce the profitability of the cement firms? Are any of these firms selling cement at a loss? At present, Tsh 10,500 - Tsh 12,000 is the selling price range for most cement companies in Tanzania. This price is fair, taking into account the initial price was Tsh 13,000 per bag. Production of cement at different grades, quality of own clinker and reduction of overall variable costs will allow Athi to remain competitive in this challenging market. TA = Price Action + Vol + S/R + Trend + Pattern.
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Rank: Member Joined: 2/18/2011 Posts: 448
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Felipe wrote:VituVingiSana wrote:Felipe wrote:VituVingiSana wrote:Felipe wrote:Pesa Nane wrote:Quote:Take AwaysRevenue 13% down Increased competition in Tz with new market entrant Tz prices 33% down due to competition EBITDA 17% down to KES 1.6Bn Higher energy costs Finance costs KES 1.5Bn up Net Loss KES 267 Million CDC made an equity investment of USD 140 million New capital to pay down debt and support group's expansion plans No interim div I'm optimistic about the future prospects of the cement industry in EA and in particular Tanzania Tanzania key infrastructure projects this financial year: * Shift of government seat to the designated capital of Dodoma: major infrastructure projects expected * $6.7bn standard gauge railway that will link Rwanda and Burundi * $10bn mega port at Bagamoyo * $4.0bn oil pipeline which is expected to transport Ugandan crude oil to the Tanga for export * Rehabilitation of the Central railway line and improvements in Dar es Salaam and Mtwara ports Competition has led to reduced prices but also imported cement from such countries as Pakistan are no more. Cement from local producers are dominating the market. Most hardware stores stock cement from Tanzania Portland Cement company, *Rhino Cement and Dangote Cement. * produced by Athi River Mining. Why have imports (eg Pakistan) stopped? What stops China [which is funding these projects] from supplying cement to replace the Pakistani suppliers? Imports have stopped especially from the 2nd half of last year after local cement makers slashed prices up to Tsh 10,000 per 50kg due to intense competition: * It would not make economic sense to traders in such areas as Kariakor, Mwenge, Bunju within Dar city to stock imported cement as it would not sell because prices of locally made cement have been reduced. * local masons and building contractors use local cement because their prices were now more affordable and were good in quality. Note: It's the aspect of quality and prices which have automatically reduced or taken out cheap imports from Asian countries from the local market. Wouldn't the (much) lower prices for local cement substantially reduce the profitability of the cement firms? Are any of these firms selling cement at a loss? At present, Tsh 10,500 - Tsh 12,000 is the selling price range for most cement companies in Tanzania. This price is fair, taking into account the initial price was Tsh 13,000 per bag. Production of cement at different grades, quality of own clinker and reduction of overall variable costs will allow Athi to remain competitive in this challenging market. Dangote cement has started production and supply in Tanzania with good prices. Expect fierce competition to kick out 'weaker players! Future is still shaky; 13% drop might just be the start http://allafrica.com/stories/201606270173.html
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Rank: New-farer Joined: 11/2/2014 Posts: 38
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mibbz wrote:Felipe wrote:VituVingiSana wrote:Felipe wrote:VituVingiSana wrote:Felipe wrote:Pesa Nane wrote:Quote:Take AwaysRevenue 13% down Increased competition in Tz with new market entrant Tz prices 33% down due to competition EBITDA 17% down to KES 1.6Bn Higher energy costs Finance costs KES 1.5Bn up Net Loss KES 267 Million CDC made an equity investment of USD 140 million New capital to pay down debt and support group's expansion plans No interim div I'm optimistic about the future prospects of the cement industry in EA and in particular Tanzania Tanzania key infrastructure projects this financial year: * Shift of government seat to the designated capital of Dodoma: major infrastructure projects expected * $6.7bn standard gauge railway that will link Rwanda and Burundi * $10bn mega port at Bagamoyo * $4.0bn oil pipeline which is expected to transport Ugandan crude oil to the Tanga for export * Rehabilitation of the Central railway line and improvements in Dar es Salaam and Mtwara ports Competition has led to reduced prices but also imported cement from such countries as Pakistan are no more. Cement from local producers are dominating the market. Most hardware stores stock cement from Tanzania Portland Cement company, *Rhino Cement and Dangote Cement. * produced by Athi River Mining. Why have imports (eg Pakistan) stopped? What stops China [which is funding these projects] from supplying cement to replace the Pakistani suppliers? Imports have stopped especially from the 2nd half of last year after local cement makers slashed prices up to Tsh 10,000 per 50kg due to intense competition: * It would not make economic sense to traders in such areas as Kariakor, Mwenge, Bunju within Dar city to stock imported cement as it would not sell because prices of locally made cement have been reduced. * local masons and building contractors use local cement because their prices were now more affordable and were good in quality. Note: It's the aspect of quality and prices which have automatically reduced or taken out cheap imports from Asian countries from the local market. Wouldn't the (much) lower prices for local cement substantially reduce the profitability of the cement firms? Are any of these firms selling cement at a loss? At present, Tsh 10,500 - Tsh 12,000 is the selling price range for most cement companies in Tanzania. This price is fair, taking into account the initial price was Tsh 13,000 per bag. Production of cement at different grades, quality of own clinker and reduction of overall variable costs will allow Athi to remain competitive in this challenging market. Dangote cement has started production and supply in Tanzania with good prices. Expect fierce competition to kick out 'weaker players! Future is still shaky; 13% drop might just be the start http://allafrica.com/stories/201606270173.html
Indeed, TPCC, TCC, Athi and seven other cement makers cannot undercut Dangote given its international approach to the cement business. But they can capture more market shares through add on services.. As for now, top three brands are Twiga, Dangote and Rhino/Tembo. TA = Price Action + Vol + S/R + Trend + Pattern.
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Rank: Member Joined: 10/26/2015 Posts: 151
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Felipe wrote:mibbz wrote:Felipe wrote:VituVingiSana wrote:Felipe wrote:VituVingiSana wrote:Felipe wrote:Pesa Nane wrote:Quote:Take AwaysRevenue 13% down Increased competition in Tz with new market entrant Tz prices 33% down due to competition EBITDA 17% down to KES 1.6Bn Higher energy costs Finance costs KES 1.5Bn up Net Loss KES 267 Million CDC made an equity investment of USD 140 million New capital to pay down debt and support group's expansion plans No interim div I'm optimistic about the future prospects of the cement industry in EA and in particular Tanzania Tanzania key infrastructure projects this financial year: * Shift of government seat to the designated capital of Dodoma: major infrastructure projects expected * $6.7bn standard gauge railway that will link Rwanda and Burundi * $10bn mega port at Bagamoyo * $4.0bn oil pipeline which is expected to transport Ugandan crude oil to the Tanga for export * Rehabilitation of the Central railway line and improvements in Dar es Salaam and Mtwara ports Competition has led to reduced prices but also imported cement from such countries as Pakistan are no more. Cement from local producers are dominating the market. Most hardware stores stock cement from Tanzania Portland Cement company, *Rhino Cement and Dangote Cement. * produced by Athi River Mining. Why have imports (eg Pakistan) stopped? What stops China [which is funding these projects] from supplying cement to replace the Pakistani suppliers? Imports have stopped especially from the 2nd half of last year after local cement makers slashed prices up to Tsh 10,000 per 50kg due to intense competition: * It would not make economic sense to traders in such areas as Kariakor, Mwenge, Bunju within Dar city to stock imported cement as it would not sell because prices of locally made cement have been reduced. * local masons and building contractors use local cement because their prices were now more affordable and were good in quality. Note: It's the aspect of quality and prices which have automatically reduced or taken out cheap imports from Asian countries from the local market. Wouldn't the (much) lower prices for local cement substantially reduce the profitability of the cement firms? Are any of these firms selling cement at a loss? At present, Tsh 10,500 - Tsh 12,000 is the selling price range for most cement companies in Tanzania. This price is fair, taking into account the initial price was Tsh 13,000 per bag. Production of cement at different grades, quality of own clinker and reduction of overall variable costs will allow Athi to remain competitive in this challenging market. Dangote cement has started production and supply in Tanzania with good prices. Expect fierce competition to kick out 'weaker players! Future is still shaky; 13% drop might just be the start http://allafrica.com/stories/201606270173.html
Indeed, TPCC, TCC, Athi and seven other cement makers cannot undercut Dangote given its international approach to the cement business. But they can capture more market shares through add on services.. As for now, top three brands are Twiga, Dangote and Rhino/Tembo. http://www.businessdaily...em-1-13n8ksmz/index.html
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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ARM and BAMBURI need to take classes from eabl asap how to deal with foreign competition. 20% undercut is not joke on bottom line profitability The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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Aguytrying wrote:ARM and BAMBURI need to take classes from eabl asap how to deal with foreign competition. 20% undercut is not joke on bottom line profitability They are going to be hit properly... possunt quia posse videntur
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Rank: Elder Joined: 12/7/2012 Posts: 11,935
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maka wrote:Aguytrying wrote:ARM and BAMBURI need to take classes from eabl asap how to deal with foreign competition. 20% undercut is not joke on bottom line profitability They are going to be hit properly... Walevi galore chased away those RSA guys  In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Veteran Joined: 4/4/2007 Posts: 1,162
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Angelica _ann wrote:maka wrote:Aguytrying wrote:ARM and BAMBURI need to take classes from eabl asap how to deal with foreign competition. 20% undercut is not joke on bottom line profitability They are going to be hit properly... Walevi galore chased away those RSA guys (One of) The result of chasing those RSA guys is that now we drink substances that make us clinically blind. The EABL products are not affordable to the ordinary man.
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Rank: Veteran Joined: 8/10/2014 Posts: 992 Location: Kenya
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What is making Dangote Cement 40% CHEAPER? Is it high quality cement?
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Rank: Chief Joined: 1/3/2007 Posts: 18,349 Location: Nairobi
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majimaji wrote:Angelica _ann wrote:maka wrote:Aguytrying wrote:ARM and BAMBURI need to take classes from eabl asap how to deal with foreign competition. 20% undercut is not joke on bottom line profitability They are going to be hit properly... Walevi galore chased away those RSA guys (One of) The result of chasing those RSA guys is that now we drink substances that make us clinically blind. The EABL products are not affordable to the ordinary man. Taxes. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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