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%

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