The India Cements Ltd. (ICL) has reiterated its commitment to stay focussed on its core business of cement even as it is hoping to increase its capacity utilisation this year.
Addressing shareholders at the annual general body meeting here on Monday, N. Srinivasan, vice-chairman and managing director, said that ICL was hoping to improve its capacity utilisation on the back of price stability and expected demand improvement in the wake of implementation of a number of government-initiated projects.
Mr. Srinivasan also expected an expansionary budget next fiscal ahead of the 2019 general elections. “I see a better future for the cement industry now than in the last few years,’’ he added.
Recalling the assurances given to investors and fund managers, he said, “We will close down loss-making subsidiaries.’’ With merger of subsidiaries — Trinetra Cement and Trishul Concrete Products — all the cement activities had come under one roof, he said.
He also informed shareholders that ICL was taking steps to diversify its product portfolio.
While the company was already producing oil well cement, it was also planning to bid for tender for supplying sleeper cement. He also indicated that ICL would continue to explore opportunities to step up exports to Sri Lanka under its own brand. All these initiative would go a long way in improving the capacity utilisation, he added.
Excess capacity
The industry, he said, was facing a situation of excess capacity. The south especially faced maximum surplus capacity, he added.
To compound the problem, growth had not been uniform across the country, he said.
The cost pressure had only added to the woes, he pointed out. Nevertheless, he found comfort in the fact that the prices had somewhat stabilised and fluctuated only in a narrow band.