India Cements sells 73.75 acres to UltraTech Cement to improve liquidity

ICL sells 73.75 acres in Andhra Pradesh for ₹70 cr to improve liquidity and meet capex. N. Srinivasan, MD, hopes to improve performance, despite input cost increase and competition. Company needs ₹150 cr working capital, ₹200 cr capex. New cement mill in TN, waste heat recovery system in AP to reduce variable cost.

The India Cements Ltd. (ICL) said it had sold 73.75 acres in Andhra Pradesh for a consideration of ₹70 crore as part of a plan to improve liquidity and to meet some capital expenditure.

On Thursday, ICL entered into a pact with UltraTech Cement Ltd. to sell the land exclusive of taxes, stamp duty and registration fees, the company said in a regulatory filing.

ICL vice-chairman & MD N. Srinivasan, meanwhile, said they were hopeful of significantly improving the company’s operating performance to become a modern an efficient cement producer.

Addressing shareholders at the 77th annual general meeting through videoconferencing he said that last year, despite good demand, ICL’s performance was severely impacted due to a significant increase in input cost and other factors such as vintage plants, supply overhang, severe competition and subdued price realisation.

For FY24, ICL needed about ₹150 crore of working capital and ₹200 crore for capex. The company is expected to raise ₹100 crore in the next 15 days. “As of June, ICL has a debt of ₹2,940 crore,” he said during the Q1 press meet.

“We are focused on lifting the fortunes of our core business, cement. We know the cement industry best. The company has copious limestone deposits,” Mr. Srinivasan said.