India Cements To Concentrate On Speciality Cements
While other cement companies are waiting for the Government to step in with infrastructure investment as a stimulus to to revive growth, Chennai-based cement major India Cements is planning at achieving better capacity utilisation by tapping the northern, eastern and western markets during the current financial year.
At the company’s 71st AGM, Mr. N.Srinivasan, vice-chairman & managing director stated that India Cements was taking steps to diversify product portfolio to improve capacity utilisation. The company is already producing oil well cement and has plans to bid for tenders for supplying sleeper cement. It would also continue the export of cement to Sri Lanka under the company’s brand name which is well established there. He also stated the the company would focus on reducing debt, introduce speciality cements and boost exports, in line with the company’s plans to turn the focus back on core businesses and exit non-core businesses.
He further stated that the cement industry was facing a situation of excess capacity, with south India in particular facing maximum surplus capacity. While there was sporadic growth in non-southern states, he added, not all regions have seen growth at a reasonable level. However, now that prices had stabilised, there was a distinct possibility of improvement in cement demand all over India. This, along with various schemes and projects taken up for implementation by the Centre and states, and an long expected expansionary Union Budget, could improve capacity utilisation.
Mr. N.Srinivasan also pointed out that due to the increasing cost of inputs, cement companies were facing. Mergers and Acquisitions by bigger players were also likely to gain pace, though on a smaller than expected scale and with focus on gaining strategic and operational competitive advantages. He added that Financially stressed companies were selling assets. And in some cases, regulations imposed by the Competition Commission of India had forced cement companies to sell their assets.
At the company’s 71st AGM, Mr. N.Srinivasan, vice-chairman & managing director stated that India Cements was taking steps to diversify product portfolio to improve capacity utilisation. The company is already producing oil well cement and has plans to bid for tenders for supplying sleeper cement. It would also continue the export of cement to Sri Lanka under the company’s brand name which is well established there. He also stated the the company would focus on reducing debt, introduce speciality cements and boost exports, in line with the company’s plans to turn the focus back on core businesses and exit non-core businesses.
He further stated that the cement industry was facing a situation of excess capacity, with south India in particular facing maximum surplus capacity. While there was sporadic growth in non-southern states, he added, not all regions have seen growth at a reasonable level. However, now that prices had stabilised, there was a distinct possibility of improvement in cement demand all over India. This, along with various schemes and projects taken up for implementation by the Centre and states, and an long expected expansionary Union Budget, could improve capacity utilisation.
Mr. N.Srinivasan also pointed out that due to the increasing cost of inputs, cement companies were facing. Mergers and Acquisitions by bigger players were also likely to gain pace, though on a smaller than expected scale and with focus on gaining strategic and operational competitive advantages. He added that Financially stressed companies were selling assets. And in some cases, regulations imposed by the Competition Commission of India had forced cement companies to sell their assets.
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