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Kesoram Industries, which is in the middle of restructuring its cement and tyre business, is hoping that the cement demand would pick up in the coming months as the overall mood of the country remains bullish. The company, however, remained mum on the progress of the reorganisation exercise.
Responding to a shareholder's query during the 95th annual general meeting, the company management said, the cement demand was likely to rise and prices had already started going up since the last one month. During the last fiscal, demand was flat for most of the cement majors. As a consequence, Kesoram had to undertake a price cut of about Rs 300/tonne on a year-on-year basis.
Sales from the cement business was down by about Rs 174 crore in FY14 as against FY13, according to the annual report of the company.
The company further aims to concentrate on profitability than focusing on volumes, the management said, in reply to a shareholder's query during the AGM.
Speaking to reporters after the meeting, Kesoram vice chairman Manjushree Khaitan refused to give details of company's restructuring plan. The company has constituted a three member committee to reoraganise the company's businesses. The speculation in the market is that the tyre business would be hived off but the company has not declined to comment on any speculations. "There is nothing new that has been decided regarding the restructuring," Khaitan said.
The committee has three members out of which two are independent directors.
