Prospects for OCL India’s cement look sound

Prospects for OCL India’s cement look sound
Published: 10 April 2006

OCL India appears well placed to benefit from the favourable industry dynamics in the cement sector. It has a presence in the eastern market where price have been firming up and are expected to stay that way over the next couple of years. Capacity additions in this region are likely to be limited and unlikely to cast a shadow on prices.

OCL India plans to gradually scale up its capacities and this will ensure that capacity is not a constraint to its prospects for growth.

There is a possibility of a rights offer to bankroll a planned expansion of its cement facilities by about 25 per cent to 2.2Mta and this should take care of volume growth over the next couple of years.

As one of the few cement plays focused in the eastern markets, there is also the likelihood of OCL figuring on the radar of the consolidation process underway in the industry.