UltraTech Cement exports to remain flat for next few years: Birla
UltraTech Cement chairman Kumar Mangalam Birla said that the company is expecting a boost in the domestic market as the infrastructure and construction industry is poised to grow in the coming years.business Updated: Sep 02, 2012 10:12 IST
With robust domestic demand, cement major UltraTech Cement said it is planning to keep its exports flat for the next few years.
"We want to focus on the domestic market. Our export growth over the next few years will remain flat," company chairman Kumar Mangalam Birla said.
Last year, the Birla group company's exports stood at around Rs 371 crore.
"The outlook for the cement industry remains challenging, but we are bullish on the sector. We expect a boost in the domestic market as the infrastructure and construction industry is poised to grow in the coming years," he said.
At present, he said, there is a demand-supply mismatch.
"With the industry's proposed capacity expansion of around 71 million tonne between FY13 and FY15, it will be no different for the next 2-3 years. I believe the short term prospects for the industry appear bearish. Regardless, over the medium to long term, the sector offers good growth potential," Birla said.
The company has also embarked on a Rs 12,000 crore expansion plan to increase its capacity to 62 million tonne by FY14.
UltraTech is currently developing clinkerisation plants at Chhattisgarh and Karnataka together with grinding units as well as bulk packaging terminals and ready mix concrete plants, besides a waste-heat recovery system.
"These expansions will increase the company's capacity by 10.2 million tonnes per annum (MTPA) to 62 MTPA," he said.
The total capex under implementation for these projects is around Rs 12,000 crore, which will be funded through a judicious mix of internal accruals and borrowings, Birla added.