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N Srinivasan, vice chairman and managing director, India Cements said that "we are examining whether we can expand the capacity at Rajasthan plant".
Present capacity of the plant is 1.3 million tonnes, we are planning to add one more line with similar capacity. The expansion would help the company to cater Gujarat and Madhya Pradesh markets.
"Gujarat market is growing well and the demand is also high,"
India Cements current manufacturing capacity is 15.5 MT with plants in Tamil Nadu, Andhra Pradesh and Rajasthan.
At present the company's capacity utilisation is around 70% in South India, which reported a flat growth, while All India demand grew by six%.
The industry is linked with the economy, so growth is based on economy, he said.
On net plant realisation, he said, in third quarter it was Rs 3360 as compared to Rs 3460, a year ago. The drop was due to slow down in demand.
India Cements net profit dropped to Rs 26.12 crore in third quarter from Rs 56.31 crore, a year ago. Total income rose to Rs 1083.88 crore from Rs 943.95 crore.
Srinivasan said the company has been facing challenge operationally especially on the cost front. Inspite of higher power in tariff in Tamil Nadu and Andhra Pradesh. Hefty power holidays and subdued cement demand we were able to post growth.
Company's Vishnupuram plant in Andhra is expected to go on full stream by July and this would help the company to address power issue.
Despite the subdued forecast on GDP growth in the current fiscal and the supply overhang which persists in South, the company could register a 10% increase in volume during the third quarter$
"Fourth quarter will be better than third quarter, since demand is expected to pick up". Next year it will be much better since Government spending will increase, since election is around and interest rate is expected to soften.
