Coal news and updates

When the going gets tough, the tough get going. As the cement industry battles one of its worst phases, India Cements Ltd achieved a turn around and is rearing to go. The septuagenarian firm has stood the test of time growing from 2 plants in 1989 to 10 plants today. Armed with Rs.350 crore capex, the largest cement maker in south has embarked on a plan to maximize production, says N Srinivasan, vice chairman & Managing Director, India Cements in an interview with Sunitha Natti of TNIE. Excerpts:

Cement industry is in a consolidation mode. Is inorganic growth on cards?

We are seeing a spurt in M&A including Reliance deal (with Birla) and Lafarge (which plans to sell 11 mt capacity). But for now, we’d like to increase our output. Currently, capacity utilisation in south is lower than those in north due to excess supply. We hope it will stabilise this fiscal.

Would you consolidate your position forging strategic alliances with smaller players?

The market is fragmented with small firms with 1-2 mt capacity. But, first we’d like demand to pick up, before ramping up production or adding capacities. With excess supply in south, we have already started focusing on other geographies, but the core focus will remain on south.

Any plans to diversify?

Cement is a long-term business activity and though we have presence in sugar, power and financial services, we would like to continue maintain cement as the core business. If public expenditure goes as planned, we will see robust sales.

What’s required for the economy to be back on track?

Private investment has dried up and so is bank credit growth. Public expenditure has to go up to revive infra structure, and government should fast track delayed projects.

Source: newindianexpress.com