Bharathi Cement, a subsidiary of the French cement company Vicat, has commissioned the 2.5-million tonne per annum (mtpa) second line of its manufacturing facility in Kadapa district. With this, the company total production capacity is now 5 mtpa.
Company’s director (marketing) M Ravindar Reddy told reporters here on Thursday that the total investment so far was Rs 1,623 crore, including in land. The capacity utilisation at its first line was 58 per cent while dispatches stood at 455,000 tonnes in 2009-10 and 984,000 tonnes this year up to November. Its turnover was Rs 140 crore last year and Rs 346 crore as of November.
It expects to breakeven this year, and if the current price trend continues, it would become cash positive in two-three years, he said.
According to Reddy, the Andhra Pradesh cement market is 20-24 million tonnes, and Bharathi has a three per cent share. The state accounted for 36 per cent of its sales. Apart from AP, the company supplies to Karnataka, Tamil Nadu, Kerala, Maharashtra, Goa, Puducherry, and Andaman & Nicabar Islands.
It would look into the ready-mix concrete, given that it was a core interest of Vicat, he said. The company board currently has 11 director positions, but has five active directors of whom only one is appointed by Vicat.
He said cement prices are expected to go up 5 - 6 per cent this financial year, as raw material costs, railway freight rates and diesel prices rise.
