Shree Cement sees 15 per cent sales growth in FY09
India’s Shree Cement expects a 15 per cent growth in sales volumes in 2008/09 on sustained demand, its top official said on Thursday.
The firm sold around 6.3Mt of cement in 2007/08, managing director HM Bangur told Reuters.
It will also spend INR3.5bn in FY09 to further expand capacity at its unit in the northern state of Rajasthan to 9Mta, he said.
The plant currently has a capacity to produce 8Mta.
The investment will be funded through internal accruals, he said.
"We expect the growth to be driven by volumes on sustained demand," Bangur said.
On Wednesday, the firm posted 72 per cent profit growth for the quarter ended March 31 at INR410.7m on revenues of INR6.6bn.
"High input costs are a concern," Bangur said.
The company needs coal and limestone to run its grinding units to make cement.
"We are trying to arrest high input costs through high volume."
It is looking at setting up a plant in central India and examining limestone reserves in the area, he said. Published under Cement News
