India Cements expands product portfolio, market reach

5 June 2017

India Cements has expanded its product portfolio and markets to insulate from regional market fluctuations.

Addressing media persons on the company’s performance in 2016-17, N Srinivasan, Vice-Chairman and Managing Director, said the company’s products are available across the West, Centre and East and not restricted just to the southern markets. Exports have also lent a hand, he said. Of the 375-million-tonne of cement production capacity available with the industry, about 150 million tonnes is concentrated in the South against a demand of about 80-90 million tonnes. The company has to expand its market reach, he said.

In addition, India Cements has also started making special cements such oil well cement and in the current year is ready with cement for railway sleepers. This will be a crucial year for India Cements as demand growth can enhance capacity utilisation to levels where the company can look at further expansion, he said.

Following the merger of Trinethra Cement and Trishul Concrete Products with India Cements, the capacity is about 16 mt a year with a capacity utilisation of 70 per cent compared with 63 per cent in the previous year.

During 2016-17, exports were up at 4.80 lt compared with 3.2 lt in the previous year.The fourth quarter ending March 31, 2017, had been tough with slow market condition due to cash crunch and dampened prices.

India Cements saw a 32 per cent drop in net profit during the fourth quarter of 2016-17 to the comparable quarter previously.

The net profit was ₹34.28 crore (₹50.49 crore) on a total income of ₹1,524.29 crore (₹1,312.60 crore).The company has also brought down its debt by ₹ 500 crore over the last two years. It has restructured about ₹1,100 crore debt which is repayable over 12 years. This will help liquidity and bring down cost of funds, he said.

SOURCE: BUSINESS LINE