As UltraTech is a successful cement producer, India Cements whole time director Rupa Gurunath said the former will ensure the future of the Chennai-based cement player.
Chairing the 78th annual general meeting (AGM) of India Cements through video conferencing on Monday, Rupa Gurunath, the daughter of India Cements vice-chairman & MD N Srinivasan said, there are plans to reduce the variable cost of the company. “We have already engaged consultants to suggest ways and means to achieve this. We have done part of it, which will continue. We feel that UltraTech will definitely take the initiatives forward,” she said.
According to the shareholders, who joined the meeting, she said, there are no prospects of cement exports as prices are not viable in the present scenario. “The company has been continuously working for a reduction of fuel costs and we are sure that UltraTech will continue the efforts. We intend to get an ESG rating,” she added.
Consultants including Boston Consulting Group have been engaged to suggest measures for improving the operating efficiency. Noting that such efforts have provided some relief in the form of a reduction in the variable cost for some of its plants, Rupa Gurunath said, “Your company has not delayed or defaulted on any of the scheduled loan repayments and has been able to manage the situation by recovering some of the advances as well as through sale of some of the non-core assets.”
India Cements divested its grinding unit at Parli to UltraTech for a consideration of Rs 315 crore during the first quarter of the current FY. During the AGM, shareholders raised queries about the future plans of the company. “We are not able to comment whether UltraTech will merge India Cements with itself (Ultratech). The employees will be taken care of by UltraTech,” said Gurunath. The future of the company is in the hands of UltraTech, Gurunath added.
In his address, Srinivasan said the expected recovery in cement prices presents a healthy demand outlook and the industry, especially in the south, has built adequate capacity to meet the demand.
