The India Cements Ltd. (ICL) said it had sold 73.75 acres in Vizianagaram district, Andhra Pradesh, for a consideration of ₹70 crore as part of a plan to improve liquidity and to meet a portion of its 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 had 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 told shareholders.
The company’s new cement mill at Sankar Nagar in Tamil Nadu, replacing the old cement mill, is expected to be commissioned by Q2. The waste heat recovery system in Andhra Pradesh is being taken up for completion in the current year and both projects are expected to bring in substantial relief in variable cost in the two plants, he said.
