 "India Cements expects better performance this year: N Srinivasan")
Speaking to the shareholders in the Annual General Meeting (AGM) of the company on Monday, N Srinivasan, vice-chairman and managing director of the company said that the capacity utilisation has increased to 65 per cent during the first quarter of this financial year and it is expected to be better during this financial year than last year.
As part of low cost production, the company is increasing the use of pet coke with the consumption going up to almost 60 per cent during the first quarter of the financial year, compared to 30 during last financial year and it is expected to further increase though pet coke price has gone up.
"The above nominal rainfall reported so far is expected to give a fillip to rural demand while the implementation of 7th Pay Commission recommendations and one rank one pension scheme are expected to improve urban consumption," he said.
He added that there are signs of recovery in some core sector industries like coal, electricity generation and cement, but credit growth, especially to industry, is yet to pick up mainly due to underutilisation of capacity in major industries and with the banks saddled with huge non-performing assets. However, the economy is awaiting broad based recovery and revival of private investment and hopes are that the domestic demand will pick up with increased public expenditure on irrigation, infrastructure, roads, urban development and housing.
The company also continues to tap export markets for cement and clinker. It has been exporting 30,000 tonnes of cement per month to Sri Lanka besides clinker.
It is also planning to introduce a range of specialised cement to improve capacity utilisation and bottomline. It is planning to introduce oil well and sleeper cement.
