India Cements On The 'Verge' Of Monetising Some Assets: N Srinivasan
According to him, the company's total debt stands at about Rs 2,900 crore.
Cement manufacturer India Cements Ltd. was in discussions with interested parties and "on the verge" of monetizing its assets in Tamil Nadu, part of the proceeds of which would go towards reducing its total debt by Rs 500 crore, a top official said on Wednesday.
The company's vice chairman and managing director, N Srinivasan, said they were looking at monetizing about 1,000 acres of land parcels out of the total 26,000 acres owned.
"Last year's sale (of cement) was not okay because we were hit by an extraordinary tsunami of increases in coal prices and pet coke, and the exchange rate of the dollar has also gone up." Srinivasan said.
The increase in the cost of production could not be recovered from the market. However, all cement players across India were able to increase the selling price to an extent elsewhere in other regions to partially offset the cost increase, he said.
Going forward, Srinivasan said, the company has plans for improving liquidity in the short term through the disposal of some non-core assets, and steps are being taken to improve the operating parameters through the refurbishment of some of the plants.
"We have some surplus lands in Tirunelveli, of which we are on the verge of selling off about 600 acres to monetise the assets," he told reporters.
According to him, the company's total debt stands at about Rs 2,900 crore.
"Once we complete this monetization plan, we will be in a better position," he said.
India Cements has also undertaken refurbishment of manufacturing facilities in Vishnupuram, Chilamkur (Andhra Pradesh), and Sankar Nagar (Tirunelveli), he said.
Responding to a question, Srinivasan said the company managed to sell 1.50 lakh tonne of cement in February in Tamil Nadu, while it doubled the figure to 3 lakh tonne in March, indicating a positive sentiment in the industry.
"The demand for cement is there in the market," he said, responding to a query.
India Cements' Chief Marketing Officer, R Parthasarathy, said that the company added 640 dealers last year, taking the total to 4,000 currently across the country.