India Cements looks to fortify base but future growth remains a question

ICL's challenges come at a time when the cement industry in India is under pressure owing to a sharp rise in raw material prices leading to a lower capacity utilisation of around 64%

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A Kolkata-registered company, SMPL owns limestone reserves, a key cement input, in Madhya Pradesh and is planning to come up with a cement unit there

Shine Jacob Chennai

6 min read Last Updated : Oct 28 2022 | 11:08 PM IST

Early this month, Chennai-based India Cements (ICL) divested its 100 per cent shareholding in Springway Mining Pvt Ltd (SMPL) for Rs 476 crore in a bid to reduce its debt burden. Including a loan component of Rs 127 crore, the total consideration comes to around Rs 603 crore. A Kolkata-registered company, SMPL owns limestone reserves, a key cement input, in Madhya Pradesh and is planning to come up with a cement unit there.

Many see this sale as the end of the road for ICL’s national ambitions, since the bulk of the company’s operations are primarily in Telangana, Tamil Nadu and Andhra Pradesh, with grinding units in Maharashtra and Rajasthan. SMPL would have helped expand its north India footprint.