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ACC, India's one of the leading cement makers with a capacity of 30 million tonne per annum (mtpa), has said that despite the current year being an election year growth of cement is below expectations.
In its 77th Annual General Meeting, company's MD & CEO Kuldip Kaura told shareholders that cement growth is not doing good and is less than expected. He added that there is normally growth in election year but "we are yet to see that trend."
Holcim-owned company, which follows calendar year as its accounting year, reported a mere growth of 2 per cent in its sales volume in 2012 at 24.11 million tonnes against 23.73 million tonnes in 2011 while its production could manage slightly better growth of 3 per cent. On the other hand, sales in its ready mixed concrete (RMX) declined 16 per cent during the year.
Prices of diesel have gone up, he said, and to meet this challenge the company is focusing on three important processes - manufacturing, logistics and marketing and servicing customers.
"We have reduced our costs on thermal fuel, alternative fuels and coal. The company is also improving the clinker factor," said Kaura.
The company is in a process of expanding its cement capacity to 35 million tonnes in a phased manner till 2015. It is investing Rs 3,300 crore for the same which will be funded through internal accruals.
Along with ACC's sister-company Ambuja Cements, the Swiss-based Holcim controls close to 57 Mt of capacity in the Indian cement market which is sitting on a 360 Mt cement manufacturing capacity.
On the BSE, shares of ACC closed on Friday at Rs 1,129.45, down 0.8 per cent.
