India Cements eyes South Africa, Lanka markets for exports

India Cements Ltd is exploring at possibilities of exports to Sri Lanka and South African countries. However, the company says the quantum of exports would be marginal and would not offset the Indian market slowdown.

“We are looking at exports from India, to countries like Sri Lanka and South Africa. Of course, there are challenges to face in it, but exports is feasible now,” said N Srinivasan, vice chairman and managing director, India Cements Ltd. He was speaking to reporters about the company's performance in the first quarter ended June 2012.

The company is expected to start exports to one of the countries, probably with Sri Lanka, within this fiscal year. However, he refused to divulge  more details of the plans.

He said that there are issues like higher cost of logistics, internal transport of consignments from the existing factories to the ports, which need to be addressed.

Moreover, before starting exports, the company also has to meet the entry barriers in these countries, especially in the African countries,

“The amount of exports will be marginal. We are not considering it as enough to offset the slowdown in demand in India and the overcapacity of the facilities,” Srinivasan said.